Housing Market - National verses Local
Reports on the condition of the real estate market at the national level are painting a very distorted picture. A housing market is far more local than national. So much so, that two subdivisions several miles apart can experience differing market trends.
It is very refreshing to hear that the Denver market is doing far better than the national levels. From May to June of this year, home values in the Denver area rose by 1.3% and June to July’s the increase was 0.8%. We did see a 0.7% decrease in values when comparing July 2006 to July of 2007, but the national average for this same time period was 3.9%. Historically, we are counter-cyclical to the rest of the nation. Home prices in Denver peaked in 2001, while most of the nation continued in an upward direction, Denver’s growth rate slowed. Due to the fact our market has been flat for so many years, it should recover faster than other areas that, until recently, saw a huge run-up in prices. It appears from the report produced by S&P and Yale University economist, Robert Shiller; the Denver housing market is in an upward swing. We have enjoyed four consecutive months of beating the national percentages, but also have been encouraged to see if this trend continues before announcing we are totally out of the woods.
Not long ago, Denver was considered the most expensive housing market in the nation without a beach. Now, due to the flat market over the previous six years, the price of a home in Denver is being referred to as a bargain. It would be easier for companies to relocate here than in many other areas of the country. This alone could strenghten the economy of Denver and further spur an upward swing for our housing market.
Colorado is on pace to see more than 37,000 foreclosures filed this year, a 30% increase from the record set last year. We are rated in the top 10 worst areas in the country for foreclosure rates. This will cause “intense pain” for the lower end of the housing market, but the higher-end homes and many pocket areas are very strong showing no decrease in values due to the “sub-prime” crisis that is devastating many areas of the country.
No, I don’t believe all is “peaches and cream” in the Denver housing market, but it is NOT in a major crisis, nor has it fallen into the “black hole” of doom and gloom that is being presented by the national media.
Academy National Mortgage
Denise Wing C.E.O.
Certified Mortgage Lender
303-987-0622
It is very refreshing to hear that the Denver market is doing far better than the national levels. From May to June of this year, home values in the Denver area rose by 1.3% and June to July’s the increase was 0.8%. We did see a 0.7% decrease in values when comparing July 2006 to July of 2007, but the national average for this same time period was 3.9%. Historically, we are counter-cyclical to the rest of the nation. Home prices in Denver peaked in 2001, while most of the nation continued in an upward direction, Denver’s growth rate slowed. Due to the fact our market has been flat for so many years, it should recover faster than other areas that, until recently, saw a huge run-up in prices. It appears from the report produced by S&P and Yale University economist, Robert Shiller; the Denver housing market is in an upward swing. We have enjoyed four consecutive months of beating the national percentages, but also have been encouraged to see if this trend continues before announcing we are totally out of the woods.
Not long ago, Denver was considered the most expensive housing market in the nation without a beach. Now, due to the flat market over the previous six years, the price of a home in Denver is being referred to as a bargain. It would be easier for companies to relocate here than in many other areas of the country. This alone could strenghten the economy of Denver and further spur an upward swing for our housing market.
Colorado is on pace to see more than 37,000 foreclosures filed this year, a 30% increase from the record set last year. We are rated in the top 10 worst areas in the country for foreclosure rates. This will cause “intense pain” for the lower end of the housing market, but the higher-end homes and many pocket areas are very strong showing no decrease in values due to the “sub-prime” crisis that is devastating many areas of the country.
No, I don’t believe all is “peaches and cream” in the Denver housing market, but it is NOT in a major crisis, nor has it fallen into the “black hole” of doom and gloom that is being presented by the national media.
Academy National Mortgage
Denise Wing C.E.O.
Certified Mortgage Lender
303-987-0622
posted by Academy National Mortgage at 7:35 AM
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