Denver Still Snowed Under Buyer's Market
by Blanche Evans
Denver's buyer's market is still drifting, but Realtors hope that spring will be active, as early signs of multiple offers on homes indicates. "Denver's an exciting place to live," says Realtor Judith Clausen. "Winter, summer, spring or fall -- there's always something to do in the Denver area. Cultural amenities include the Denver Center for the Performing Arts, which houses the Colorado Ballet, the Denver Symphony, and the Denver Center Theater. Art galleries, the Denver Museum of Science and Nature, over 90 golf courses, sophisticated shopping centers, the Denver Zoo -- the list goes on and on. Denver is a large urban area close to some of the most beautiful country in the U.S., ski areas are just hours away. Fly fishing, hiking, mountain climbing and much more offer spring, summer and fall recreation in the nearby Rocky Mountains. Quality of life in the Denver area is its biggest draw." About the market, Clausen says, "The market this spring is showing that it's more volatile than it had been. Good homes in good locations are selling quickly, while homes that buyers think are overpriced, are staying on the market for awhile. Many Denver area agents believe that this is a pivotal year for the local real estate market, and that it is beginning to move from a buyer's market toward a seller's market, perhaps as soon as the end of the year. My experience is validating that view. Unexpectedly, interest rates have fallen in the last couple of weeks, but it won't be long before they start to rise again. This could be one of the last great buying moments left in the Denver real estate market." She continues, "It's still a buyer's market in Denver, and according to the experts it won't be a seller's market anytime soon." Gary Bauer, an independent real estate consultant who publishes monthly analyses of the market here, says that "we would have to see a complete change in our current economy" before the balance changed. Without adding more jobs than Colorado economists foresee, and with the Consumer Price Index reaching a new high in February, sellers will have to wait to see a faster selling time and higher prices. The housing inventory in March was six percent higher than in February, and with the spring season now upon us, we can expect inventory to increase even more. The median single-family home price in the metro area in March was $236,500, compared to February's $231,200, a modest increase of 2.3 percent, lower than the long-term appreciation rate of 6.57 percent over the last 30 years in Colorado. The average price of a single family home in March was $292,046. Condo and townhome median prices rose from $155,000 to $158,000, an even more modest rise of 1.9 percent." Clausen advises, "The Office of Federal Housing Enterprise Oversight (OFHEO) House Price Index shows no decline in value after a period of rapid increase in prices such as the Denver market saw in the 90's. Thus, housing values will likely maintain the modest increases experienced over the last few years, but not increase significantly in the near term. That's good news for buyers, especially given the recent rate hike by the Fed, which was followed by an immediate corresponding rise in mortgage rates." According to Rocky Mountain News real estate reporter, John Rebchook, "rising mortgages rates will likely force 'sellers to keep a lid on prices.'" Says Realtor Laurie Erb, "It is an interesting spring in the Denver real estate market. Some homes offered for sale are experiencing multiple offers and record-breaking prices. Other sellers see buyers rejecting their price and walking away, as they deem the homes overpriced for condtion, size and/or location. All in all, the market is not as bad as sellers think, nor as good as buyers expect. It depends on the specific property. It is an opportunistic market." "There is still a large inventory of homes in the Denver area," say Realtors Tony and Cynthia Anderson. "With many listings in the Denver Metro area, buyers have many choices and can negotiate on price. Sellers are paying closing costs, downpayment, and/or escrows." |
