Huh?  How can that be?

We are so used to the terms "Seller's Market" and "Buyer's Market" that we forget there is a point in time where there is equilibrium.  I like the Denver Metro housing market right now because I think we are on the very cusp of what I'll call a long-term equilibrium.  Let me explain -

Currently, compared nationally, the Denver home real estate market is very reasonably priced.  Homes are neither cheap, nor are they over-valued.  Many factors go into this, but the thing to remember is that the Denver area did not participate in the sky-rocketing home appreciation market of the past five years that most of the rest of the country experienced.  And, likewise, Denver is not participating in the hangover to the degree that the majority of the country is now experiencing, either.  The fundamentals in Denver are very sound and some of you have already read previous statistics I have used regarding employment, appreciation, job-growth, income levels, etc., so I'll not bore you with it again.

For those who are considering selling - now is a great time to sell - with one caveat: get real about pricing!  We are not in a seller's market and if you overprice, not only will your house sit and sit and sit, but you will eventually be forced to lower the price and then you will set yourself up for a negotiating nightmare.  So - set a realistic price and sell sooner.  Also, with the instability of the mortgage market right now, if you turn your nose up at a reasonable offer (thinking you can get more) from a well-qualified buyer, you may pay a hefty price by not accepting it.  98% of something is far better than 100% of nothing.  By the way, one admonition - if you are in the Denver metro market and seeking to sell, please contact me for a referral for a competent real estate professional to represent you.  You will not be best-served in most cases by trying to sell it yourself, nor using the services of a discount broker.  We are in a time where you either play with the big dogs, or stay on the porch.  I know that's blunt, and maybe a bit crass, but as a knowledgeable professional, I'm less concerned about hurting sensitivities at the expense of not telling you what you need to know for your best interests.  Long and short - work with a professional!

Now - if you are a buyer (or a seller who will then buy), you also need to be realistic.  This is not a buyer's market.  You cannot expect to go in and low-ball, or expect a lot of seller concessions.  The home sellers who are professionally counseled already are priced right.  If you play games, especially with the mortgage market the way it is, you may wait yourself right out of contention.  This is not a time for gamesmanship.  It is a time for people to act with purpose and intelligence!

Continuing with the market equilibrium - I foresee the Denver area housing market as averaging 3-5% annual growth for the next 5-7 years.  This will probably start off a bit slow (and has actually already begun) and will pick up some steam within a couple of years.  You might be thinking, "How can appreciation mean equilibrium?"  The answer is that 3-5% growth is very responsible in much the same way as inflation under 2% (but inflation nonetheless) is a good thing.  Over seven years, 3% annual appreciation means an increased home investment value of 23%.  And, if you put down 10% on a home (which can still be done), you will triple your cash investment.  Not a bad deal!

Whether you are buying, selling, or moving into the Denver market, I encourage you to contact me as one who can provide a guiding hand during these turbulent times.  You need knowledgeable, expert advice and I am in a position to provide for your real estate needs.

Greg Polashock is a Real Estate Home Mortgage Loan Consultant and Certified Mortgage Planning Specialist with Cherry Creek Mortgage and resides in Castle Rock, in Douglas County Colorado.  He can be reached via email at Greg@GregIsFinancingSolutions.com, by phone at 303-887-0672 or on the web at http://www.gregisfinancingsolutions.com/.