The Denver Housing Market – Positive Signs of Recovery

According to leading economists, Denver’s housing market (and the nation in general) should begin to reap the benefits of positive signs on jobs and economic growth in the coming months. This is great news for everyone who has weathered what has been a challenging economic climate for the past two years.

First, employment has increased. The Labor Department reports that there were 200,000 more jobs nationwide in February 2010 (2.7 million) than in the same survey the previous month.

Second, the expected growth in gross domestic product (GDP), the main barometer of the health of the US economy, is a very solid 3% during the first quarter of 2010. Leading experts say these signs are indicative of a labor market, as well as an economy that is in full recovery.

How does that impact the real estate market?

The expansion of employment, as we are seeing, that is created from a national economy that gains momentum. Critical precursors to stimulate high demand and sales. The more abundant jobs and the higher purchasing power of consumers create a greater demand for homes. Which are already somewhat scarce. As we head into a traditionally stronger time of year for housing (spring and summer). Analysts are predicting a strong market in the coming months. And, because federal tax incentives ($ 8,000 for first-time buyers and $ 6,500 for repeat buyers) will expire at the end of April. Sales volume during the spring should steadily improve to increase for the summer season.

When it comes to home prices, evidence continues to mount that in most parts of the country, home values ​​have bottomed out or turned positive. Here in Denver, we are one of six cities listed in a Standard & Poor’s report last month that showed price increases year-over-year; We seemed to have bottomed out in February 2009, but we have been gaining steadily since September of last year.

Nationwide, last week’s Zillow Home Values ​​report found essentially flat values ​​on a national average basis. They were down just three-tenths percent, but were up in some major markets. For example, Boston home values ​​have risen nearly 2% year-over-year, according to Zillow, and Los Angeles, San Diego, Philadelphia and Denver have posted gains after long periods of negative numbers.

Two other statistical signs that conditions are improving:

• The difference between list prices and home sales prices across the country is now less than it has been in a year. According to real estate research site Trulia.com.
• Realty Trac found that foreclosures, which clearly continue to be a drag on the market, fell 2% last month. Which is the second consecutive month of decline.

Ready to shelve and buy a home in our local Denver market?  go here for a Denver based we buy houses company. If so, call your real estate experts on the Bandy team! We’ll show you some great deals in the Denver metro area and across the entire front range.

Like the real estate market, the rental property market in the city has seen adjustments over the last year. The demand for rental housing has increased as many people have foreclosed on their homes. People who have lost their property look for houses to rent. The significant increase in employment over the last year. Around 2.2% in the metropolitan area, has also boosted demand to some extent. This has resulted in an increase in the prices of rental properties in Denver.

Despite this, the increase is not very significant because the supply for rentals has also experienced an increase. Due to the large number of foreclosures, real estate investors have been rushing to do great bargains. Buying foreclosed properties and offering them on the rental market. Statistics show that approximately 35% of all foreclosed properties are rented shortly after foreclosure. This has brought prices down a bit automatically. Overall, the cost of renting a home has risen a bit. But is expected to remain stable due to the reduction in number of foreclosures in area in recent months.

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