Denver Real Estate Market Posed to See Another Boom
Last year,Denver home prices declined 2 percent nationally, the first nationwide price drop since the Great Depression. There’s too much focus on the national figures. National figures can dampen consumer confidence.The boom in Denver’s housing market occurred from 1999 to 2001, when the technology industry was thriving. But nationally, the housing boom started in 2001, and the decline didn’t begin until 2005. The only thing that is holding back the Denver-area housing market is “irrational pessimism” from prospective buyers. The bleak national market conditions do not represent what is happening in the Denver area.
According to Lawrence Yun, chief economist and senior vice president of real estate for the National Association of Realtors, if there is a recession this year, Denver should weather it better than the country as a whole. Denver will be able to escape most of the job losses of a recession because of the highly educated work force and because you’ve already wrung out the excesses of the dot-com boom,” with a huge loss of tech jobs starting in 2001, he said. Despite all the gloom from all the attention on the collapse of the subprime market. Those are mistakes made in the past. It’s not related to home buying today or in the future.
Nationally, sub-prime mortgages represent just 9 percent of outstanding loans but account for 53 percent of foreclosures. Although the issue of foreclosures remains in Denver. With about a 1.8 percent foreclosure rate, Denver is keeping pace with the national average. Unemployment in Colorado remains below the National average as it has historically.
As long as you’re staying in a home for the long haul, appreciation up and down doesn’t have a dramatic effect if you’re not using it as a cash vehicle. Denver will be among the next markets to see a boom.
“I think Denver is about to see another boom and the market will again take off”, reports Jeffery McClintock President & CEO of Real Estate Technology Group, Inc. while speaking to real estate agents at a local gathering in Highlands Ranch. This doesn’t mean builders should start filing for permits and creating new infrastructure McClintock can also be quoted as saying. It means a reduction of the existing homes on the market will soon start to occur.
Denver had over 100,000 people move into the metro area in 2007. The residential rental market is tight while people have been sitting on the fence to see what property values will do, said McClintock.
If your in it for the long haul as most people are buying in Denver is actually a very good idea. The wealth building power of real estate investing is a time-proven fact.
Investing is about having sound criteria, the patience to find the right opportunity, and a willingness to take action. There is a ton of opportunity in Denver right now. You can easily minimize risk while maximizing return. Some believe successful investors are able to time the market. The truth is that in successful investing, the timing finds you. Timing is one of the most misunderstood concepts in investing. Many inexperienced people think investors are poised on the sidelines waiting for opportunities.
Yun, expects overall housing appreciation in the Denver area this year to be 4 percent to 5 percent, while the nation as a whole will be flat. Don’t stay to long at the fair. Analysis paralysis can be costly.
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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.
Jeffery has been a licensed Realtor since 1995. During this time he has successfully closed over 135 million dollars of residential real estate, and 40 million dollars in un-improved land amounting to 660 individual real estate transactions. His professional experience includes the Denver Colorado front range and the Second Home market in Breckenridge, Colorado located in Summit County.
Posted by: Jeffery McClintock
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