Cherry Creek, Colorado Housing Market Is Still The Pits by Blanche Evans
Realtors in Cherry Creek, Colorado, say housing is still in a buyer's market, but that could mean opportunity as prices escalate. "Cherry Creek offers nice family communities and easy commutes to downtown and Denver International Airport," says Realtor Barbara Schutte-Kunkel. "There are many homes on the market right now especially in certain price ranges. Homes are not selling as quickly. Buyers have more choices and do not feel rushed to buy." "Colorado has cracked America's Top 10 in job growth just a year after ranking near the bottom -- a performance called 'a remarkable turnaround' by federal bank regulators," says Realtor William R. Roberts II. "The FDIC (Federal Deposit Insurance Corp.) tracks state and regional economies as it monitors the health of banks whose deposits it insures. Colorado's year-over-year gain in employment in 2004's fourth quarter was 2.1 percent, while jobs nationally grew by 1.6 percent. Colorado ranked 10th, while one year ago, it ranked 45th in job growth. The state's gain represented about 44,000 more jobs than in 2003. That's a big change from before, when Colorado under performed the nation in job creation -- sometimes severely -- for 10 consecutive quarters from late 2001 to early 2004. In nine of those quarters, Colorado posted job losses, not gains. This belated rebound is in line with many economists' views that Colorado's recovery would trail that of the national economy by six to twelve months. Accelerating job growth means the state might set an all-time record for total employment by the end of this year according to Alan Bush, a Dallas-based regional manager for the FDIC." Roberts continues, "Mortgage rates dropped to 5.91 percent for 30-year note. The average U.S. rate on a 30-year, fixed-rate mortgage fell for the second straight week, dropping to 5.91 percent from 5.93 percent, Freddie Mac reported on April 14th. The 15-year fixed rate fell to 5.46 percent from 5.48 percent. The one-year adjustable rate rose to 4.3 percent from 4.23 percent. Builders pulled 3,181 permits for homes, condos and apartments in the Denver area in the first two months of the year, about 35 percent more than the 2,348 issued through February of 2004. This is the biggest percentage gain for the two-month period in about a decade as reported in a study released by the Home Builders Association of Metro Denver. Roger Reinhardt, executive vice president of the Denver home builders group, said the increase in building permits is great news for the economy. The HBA, working with the Genesis Group, tracks permits in Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, Elbert and Jefferson counties. He said the increase in construction activity is consistent with the report from the Federal Deposit Insurance Corp. that shows Colorado is now one of the 10 fastest growing job markets in the nation. He further added that the market remains fairly robust because mortgage rates are still relatively low, consumer confidence is returning and there is job growth." Explains Realtor Bud Herzog, "The capital of the Rocky Mountain West, Denver was founded in 1859 by gold prospectors at the confluence of the South Platte and Cherry Creek. William Byers founded the Rocky Mountain News, John Denver just liked the name "Denver." We have over 300 days of sunshine, 12 months of golfing, weather permitting, great sports teams like The Avalanche and The Nuggets." About the market Herzog says, "Don't let anyone out there fool you, it is a Buyer's Market. I even heard a builder on the radio today offering $40,000 in incentives at zero down. What does that tell you? Summer's here now ... prices are holding steady, rates are at a 30-year-low, and everything looks better in the summer. Now is a great time to buy a home. Rates are low, but for how long is anybody's guess. If you're thinking of upgrading, now's the time to have a garage sale, clear out the clutter, ad some pizazz to your palace, and get it ready for sale. Make sure you look at the competition to see what they're doing." |
