At the end of the third-quarter, statistics strongly indicate that the worst is over for the Denver-area housing market. A case can be made that the market hit bottom in 2009 and now is poised to match or slightly exceed where it was in 2010.
At the end of the third quarter in 2009, buyers had bought $6.58 billion in single-family homes in the Denver metro area. The last time the dollar volume was less than that in the first nine months of the year was in 1999, when the population and housing markets were much smaller. In addition, if you adjust the 1999’s sales of $6.57 billion for inflation, it was the equivalent of about $7.2 billion in 2009 dollars.
This year, the sales volume for single-family homes at the end of the third quarter was $6.75 billion—within 1.3 percent of where it stood at the end of 2010. Meanwhile, the number of single-family homes that closed in the first nine months of this year compared to the same period in 2010 was so close that it could be described as a rounding error.
There were 23,956 home sales through the third quarter, 23 more than the 23,933 in the first nine months of 2010—a 0.0967 percent increase. This metric is especially good news for the market because the home activity held its own on its own.
Sales activity in the first part of 2010 was given a boost by the $8,000 federal tax credit available to first-time home buyers who placed homes under contract at the end of April 2010 and closed on them by the end of September of that year. Without the tax credits, sales would have been much lower last year and this year’s showing would look all the better in comparison.
It’s always difficult to peg the bottom of any market—whether it is the housing market or the stock market. But if you are a consumer who has been waiting for the bottom to pass before signing on the dotted line—wait no longer.
October Market Mover Links:
William Dean Singleton, the publisher of the Denver Post, is trying to sell his home in Cherry Hills Village for $2.7 million. The price has been slashed from the original listing of $6.5 million in 2007, illustrating how tough the upper-end market is.To read the entire article, please visit: http://insiderealestatenews.com/2011/09/singletons-home-a-bargain-at-2-7-million/
Even as he tries to sell his Cherry Hills mansion, William Dean Singleton, publisher of the Denver Post, has bought a penthouse condominium unit in a downtown Denver high-rise. The move was applauded as good news by city leaders. To read the entire article, please visit: http://insiderealestatenews.com/2011/09/singleton-moving-downtown/
Denver’s housing market ranked the 4th best of the 20 cities tracked in the most recent Case-Shiller index, on a year-over-year basis. It was the third consecutive month that Denver was in the Top 5 cities in the closely watched report. To read the entire article, please visit this link: http://insiderealestatenews.com/2011/09/denver-no-4-on-case-shiller/
The nation’s housing market hit bottom this year, experts say at a nation conference. And Wells Fargo says that the U.S. economy is unlikely to experience a double-dip recession. To read the entire article, please visit this link: http://www.housingwire.com/2011/09/30/housing-market-has-hit-bottom-former-realtytrac-exec
Luxury home sales in the Denver area fell in August from both July and from August 2010. Is this a trend, or simply a blip? To read the entire article, please visit: http://insiderealestatenews.com/2011/09/high-end-homes-slump-in-august/
New Town Builders, long a leader in constructing environmentally friendly “green” houses, is stepping up to the sustainability plate once again. It is pledging to use beetle-kill lumber from Colorado in framing its homes, the first production home building company promising to do so. The move will not only help the environment, but will create and sustain jobs. To read the entire article, please visit: http://insiderealestatenews.com/2011/09/new-town-using-beetle-kill-in-homes/
Most of the mainstream media missed it, but the latest national housing statistics reported by the National Association of Realtors, were actually better than what the NAR released. At least that is the perspective of one reporter’s analysis of the data. To read the entire article, please visit: http://www.marketwatch.com/story/home-sales-actually-better-than-the-nar-says-2011-09-29?mod=MWCommentaryandBlogs&mod=marketwatch
Commercial real estate in the Denver area is showing signs of life. A report by the Newmark Knight Frank Frederick Ross Co. shows a rebounding market. To read the entire report, please visit this link: http://www.bizjournals.com/denver/news/2011/09/29/denver-commercial-real-estate-rebounding.html
Little-known fine-print in laws may make it more difficult for distressed homeowners to keep a bank from foreclosing on their homes. To read the entire story, please visit this link: http://www.denverpost.com/business/ci_18967604
Vestas, the giant wind-turbine manufacturer with operations in Windsor, Brighton and Pueblo, is ranked as the No. 1 sustainability company in the word. To read the entire article, please visit this link: http://www.metrodenver.org/news-center/metro-denver-news/vestas-tops-dow-jones-sustainability-index.html
“Operation Twist,” the latest craze to keep mortgage rates incredibly low, probably will achieve that goal, local experts say. But they are concerned that it will do little to boost the economy and create jobs, which is what is really needed to jump-start home sales. To read the entire article, please visit this link: http://insiderealestatenews.com/2011/09/twisting-away-at-mortgages/