Monday, April 14, 2008

Denver Real Estate is about to POP!

A week ago I did something I have not done in quite a while...15 mini CMAs or market analysis of areas around homes I helped folks buy in 2004. I was quite surprised at the results. And in a nutshell here is what I found:

There were more homes UNDER CONTRACT or pending sales than there were active listings waiting to sell.

There were more homes UNDER CONTRACT or pending sales than there were RECENTLY SOLD homes in the last 6 months.

There will be 2 challenges for us as a result:
1. There is less supply to find your dream home and prices will soon start to rise in the south suburbs of Denver.
2. There will probably be a difficulty in supporting the sales prices through appraisals as there is not enough data to support higher prices.

While far from comprehensive, these 15 slices of data from vastly different areas of the south suburbs of Denver indicate a trend not otherwise reported. This could be seasonal, or it could be the first indications of a housing market recovery.

Another factor in this report is a result of my recent lack of posts...I have been out showing homes for the last 7 days to 3 different buyers, and I am starting with my 4th today. What I am seeing is allot of property (supply) not properly prepared for sale (kind of like taking a dirty car in to trade) especially in lower prices, and allot of bank owned properties (you can see them at that are priced at "market value" + fix up other words, very few "DEALS". Yet there are buyers in the market (demand). The "I don't care if it sells" attitude is very apparent, so the smart seller gets the home to sparkle before the first showing. So supply is down yet seasonal demand is up.

I have a 5th buyer who wants a "nice clean house" in Highlands Ranch for her and her son yet the prices above 230k are keeping her from finding something with more than 1200 square feet. Should you know someone who is looking to make a move, make sure to let me know.

Over 22 years of helping nice folks with their real estate needs, whether in Highlands Ranch, Lone Tree, Littleton, Castle Rock, Centennial, Englewood, Parker, Elizabeth, Larkspur, Franktown, Kiowa, or anywhere in metro Denver Colorado, we offer real estate advice, properties for sale, multiple listing service, property listings, mls, all available at Drop me a note to

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