Not only has Federal Reserve Chairman Bernake said the recession is "very likely over" in the U.S. but local Denver economist Richard Wobbekind recently predicted that Colorado will rebound quickly.  At a gathering of clients of a local financial planning firm, University of Colorado economist Wobbekind offered a few predictors that showed why Colorado is likely to emerge ahead of other states:

•·  Business and technology spending, which recover more quickly than consumer spending is expected to increase in the state

•·  Higher commodity and energy prices will help the state, especially in rural areas

•·  Retail sales, after a 10% fall, are expected to increase 4.4% next year

•·   Job growth, negative this year, is expected to be slightly (.4%)  positive next year

The best news of all from Wobbekind is that he expects that the recovery will stick, so Colorado does not slip backwards into a second phase of recession.

What does this mean to the average citizen of Denver, who perhaps is hoping to to buy a home in the metro Denver area? Wobbekind does not include anything about the real estate market but Colorado did not experience the roller coaster ride in the real estate market as other states did.  Recent sales figures for Denver homes show a median price of $225,000 for single family homes and $145,000 for condominiums.

This means that someone with a stable job and good credit can feel confident buying an affordable house.  Ironically, the only problem is that inventory of lower priced homes has been depleted by first time buyers taking advantage of the $8,000 first time homebuyers credit.  The next round of growth in housing sales is expected to be among homes with slightly higher prices.

Critics of Wobbekind's forecast are quick to mention that recent government spending may have artificially propped up the economy and made recovery seem closer than it is.  Proponents of this "what-goes-up-must-come-down" theory claim that the next descent could be worse than the first.  This type of thinking, though, discounts the role of consumer confidence in propping up the economy.

Homebuyers who buy appropriate homes for their needs and their budgets can make a move in confidence.  The new home may be smaller, more energy efficient, or be closer to work and provide savings to offset some of the increase in payment.  These days, no one should go into real estate in anticipation that they will make a killing; the fact remains that over the long term, real estate usually provides a decent return in addition to comfortable shelter for the family plus a myriad of intangible returns.

Considering buying an affordable Denver home?  The pros at Bandy Homes will show you appropriate properties you'll love to own in Denver, Parker, Castle Rock, Aurora, and the whole Denver metro area.

Marianne Bandy

Outstanding Denver Schools