Kentwood Real Estate – Market News – January 2011
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Compliments of Tom Cryer, SCRP
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Market News
Metro Denver Housing Market Poised for Rebound in 2011
What goes around comes around. Projections for metro Denver?s housing market in 2011 are reminiscent of the market in 1989. Twenty-two years ago, the Denver housing market was still reeling from the collapse of the energy markets and overbuilding as a result of oil prices hitting $65 a barrel. When oil prices collapsed to around $12, the housing market collapsed as well.
The Denver area was hammered by record foreclosures, people fleeing Colorado for better job opportunities, and bargain-basement real estate prices. Some predicted the housing market would never recover, but these ?housing bears? were wrong on a grand scale.
Those who lived through previous real estate cycles, and metro Denver has experienced several, urged consumers to take advantage of the low prices, but many held out for even greater slides. Anyone who listened to veteran Realtors and other industry observes signed on the dotted line, and they could not have been happier. In just two years, the market was not only back on its feet, it was enjoying the start of a bull housing market that peaked about 15 years later.
Today, prospective homebuyers have a virtual cornucopia of homes from which to choose. Interest rates continue to remain at levels that would be envied by nearly everyone during the past several decades. The overall economy is showing signs of strength with retail sales picking up in 2010. The stock market also performed reasonably well last year, boasting its second consecutive annual gain. The worst of the unemployment debacle seems to be over, and modest gains are predicted for 2011.
During the first few months of 2011, the housing market may not exceed the sale levels of early 2010, due primarily to the end of national housing tax credits that fueled sales most of last year. However, as the year progresses and more jobs are created, home sales should follow suit.
Overall, the 2011 Denver-area housing market is positioned for growth, albeit on a marginal scale. Most consumers who ignored the pessimists in 1989 and bought a home were extremely pleased in 2001. Those who buy this year will very likely be happy in 2013.
Qualified buyers who decide to wait before jumping off the fence this year, may very well be kicking themselves in a couple of years. So now?s the time to bite the bullet and buy a home or make a real estate investment.
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| Residential Market Data |
| December 2010 |
This Month |
Prior Month |
Year Ago |
| Active |
13,941 |
15,232 |
12,263 |
| Under Contract |
2,132 |
2,482 |
2,371 |
| Sold |
2,422 |
2,142 |
2,328 |
| Average Sold Price |
$282,080 |
$281,466 |
$281,756 |
| Months Supply |
5.76 |
7.11 |
5.27 |
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| Condominium Market Data |
| December 2010 |
This Month |
Prior Month |
Year Ago |
| Active |
4,316 |
4,649 |
4,193 |
| Under Contract |
560 |
619 |
657 |
| Sold |
602 |
524 |
631 |
| Average Sold Price |
$166,841 |
$165,113 |
$160,399 |
| Months Supply |
7.17 |
8.87 |
6.65 |
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| *Based on information from Metrolist, Inc. for the Denver housing market for the period 12/1/11 to 12/31/11. This representation is based in whole or in part on content supplied by Metrolist, Inc. |
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Market Movers
- On a seasonally adjusted basis, the Denver metro area was ranked No. 1 of the 20 metropolitan statistical areas in October from September in the most recent S&P/Case-Shiller report.
Read more >>
- Foreclosure activity in Colorado falls to a 20-month low.
Read more >>
- Real estate analyst Steve Harney predicts that 2011 will be a better year for home sales than 2010.
Read more >>
- The stock market rises for the second consecutive year.
Read more >>
- Publicly traded Colorado companies out-perform the nation by a wide margin.
Read more >>
- Nationally, pending home sales rise in November.
Read more >>
- Colorado ?clean-tech? jobs rose by 8.9 percent, at a time when the national growth in the industry was only 0.8 percent.
- Colorado is home to the fourth largest concentration of new energy and new energy research employment in the nation.
Read more >>
- The Denver area is within 0.1 percent of replacing jobs lost in 2009.
Read more >>
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Tom Cryer, SCRP, Realtor, Broker Associate
Kentwood Company 5690 DTC Blvd. #600W
Greenwood Village, CO 80111
800.723.7653 (Toll Free) 303.638.3202 (Cell)
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If your home is currently listed, please disregard this notice as it is not our intention to solicit other brokers listings. All information deemed reliable but not guaranteed and should be independently verified. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) nor Kentwood Real Estate shall be responsible for any wrong information.
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MyTownCryer 