Denver Real Estate glut
Denver Real Estate | Judging the Market in the Mile-High City
Many interested people are keeping close watch on the real estate market in Denver. It is an up and down affair. Some experts predict the bottom to hit soon. Others say it already has hit. And still more think the market is beginning to rebound. What does this mean for investors? How does the conflicting news affect home sellers and buyers? The answer is as complex as the market itself. The best indicator is to see with clear understanding where it you stand financially. Capital, credit, job security and the promise of a strong loan, these are the principles that will determine for an individual when to buy or sell a home. Denver’s got good news and bad news when it comes to the real estate market. First, the good news: Though the Mile-High City has seen its share of sublease space flow onto the market thus far this year, it has been far less hard-hit than other metro areas across the country. Additionally, a lack of overbuilding means that Denver is not suffering the same problem as cities such as Phoenix and Las Vegas: a glut of new construction that proves a tough sell in troubled times. However, Denver has taken its share of lumps. In March, total sales of existing homes posted a 13.6 percent decline from a year earlier, according to Metrolist Inc., the metro area’s Multiple Listing Service. The average sales price has also dropped from a year earlier, with the average sales price clocking in at $232,395 for March. That’s a drop of 8.51 percent, according to Metrolist. So what to make of this mixed market? “Denver’s not doing too badly, believe it or not,â€? says mortgage broker and Realtor Matt Sparks. “Granted, we’ve got tons of foreclosures, and certain market segments and areas are hurting, but average values are steady.â€? Since Denver missed the real-estate bubble experienced by much of the country, Sparks says, the city didn’t have far to fall. “The bright spots are the downtown Denver neighborhoods,â€? he says. “A lot of the central slum and blight has been transformed into vibrant, safe, and trendy neighborhoods in recent years. The major Denver schools have been updated and improved big time. And we’re in the middle of increasing our Light Rail system from nearly non-existent to over 90 total stops all throughout the metro area. Good things are happening, and we’ll likely see a nice upswing in values and new construction once the finance sector and the overall economy turn around a bit.â€? Sparks likens Denver’s challenges to those faced by most other cities in the country: record numbers of home foreclosures, financing difficulties, a surplus of inventories, banks foreclosing on developers, and empty subdivisions in far-flung suburbs. So there you have it. Good news in a bad market. Do with it what you can. Just check your finances and work with a real estate group. It’s the best way to buy or sell a home in Denver.
About the Author
Michael Russell writes about a variety of subjects. This article discusses Denver real estate. For more information, visit the Real Estate Book.
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