Denver Real Estate Blog

Denver’s Real Estate Market is Changing

From June to July, Denver homes rose in value by 0.8 percent, bested only by the 1 percent increase experienced by Detroit during that period.
“It looks like Denver may be one of the first markets in the turnaround mode. Maybe,” said Maureen Maitland, an analyst and vice president at Standard & Poor’s. Maitland said she would like to see more data before she’s comfortable in saying that Denver’s down cycle is over. “You need to buy when the market is down to get the best deal.”, says Jeffery McClintock, President of Real Estate Technology Group, Inc

“However,”Maitland added, “Denver has had five positive months of price movement in a row.” Maitland also noted that Denver – real estate stumbled earlier than most cities in the country and in recent years didn’t go through the double-digit price appreciation experienced by other formerly hot markets on the coasts and places such as Phoenix and Las Vegas.

Nevertheless, the new-home market in the Denver area is still suffering through its worst period in more than a decade, according to a report by the Genesis Group.Genesis said that there were 5,842 sales of new homes in the first half of the year, a 33 percent drop from the 8,758 sold in the first half of 2006. And 2006 was the worst year for new home sales in a decade. There are pockets of robust price appreciation in Denver.

Some Denver neighborhoods has seen appreciation like in the case of the Highland neighborhood at 13.5 percent and Cherry Creek North at 22 percent. Thats huge and the biggest concern is the fact, that values have risen too fast in some areas and aren’t sustainable. Denver’s housing downturn started around 2001, and the area dodged “the 2006 housing bubble bursting in other parts of the country.

Rising adjustable-rate mortgages will mean more foreclosures through 2008, which will dampen appreciation at the low end of the market, but are not affecting more-expensive homes. 2008 will be another year for buyers to buy, But a lot of people are going to wait until all of the doom and gloom is over, and they are going to end up paying more, says McClintock.

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Jeffery McClintock, is a real estate broker in Denver and prides himself on providing clients with professional guidance in all phases of residential new construction, including market research, product development, consulting, marketing and advertising. His personal mission is to bring to you a level of knowledge, experience, commitment, high standards and results to answer your real estate needs. He believes, the most effective way to provide superior service is to build a strong working relationship with you. His system includes regular consultations and feedback, which is the best tool for identifying and clarifying your real estate objectives and help define strategic solutions.