As we head into the New Year I am optimistic that 2009 is going to be better than the past two years. I am seeing many positive indicators that lead me to believe 2009 will be the start of the upswing in the Denver real estate market.
Here are some indicators that are providing hope for 2009:
- Interest Rates are low – In the past several weeks rates hit 45-year lows. They still continue to be in the 5% – 5.5% range for a 30-year fixed loan. Looking back to just the beginning of 2008 interest rates were still in the 6.0% – 6.5% range for a 30-year fixed loan.
- Mortgage Brokers must be licensed – This is a great initiative that was long overdue. For more than a half of a century real estate professionals were required by law to practice real estate and sell homes (why weren’t mortgage brokers required as well?). It should have happened sooner; however, I am glad that it is required now.
- Inventory is going down – Many sellers are realizing that if they don’t have to sell, they should wait it out. Getting the inventory down is key for prices to start to increase.
- Days on Market is down – Over the past year the DOM (days on market) which is another indicator on how long homes are sitting on the market is continually going down. At one point the average was 115 days. As of November 31, 2009 the MLS is reporting the average DOM as 100 days.
- Multiple Offers – I have shown many homes lately (especially in the lower market $50k-$250K) where there were multiple offers as well as many offers over the asking price. This is also a great sign, because it means there is more demand than supply. When there is more demand than supply we will have a seller’s market.
- It’s an Opportunistic Market – There are many opportunities for first-time home buyers, investors, families moving up, etc in this market. For anyone who is thinking about buying, it is an EXCELLENT time to purchase a home. If you must sell before you buy, it might not hurt to take a 5% loss if you are going to buy a home at 10% – 15% below market value.
If you would like to learn more on the Denver Real Estate Market go to: www.liveinmetrodenver.wordpress.com/the-denver-real-estate-market