The Denver Post reports that home price increases in the Denver Area have declined to a 2.7% rate in the second quarter. “…the market struggles with a near record 31,664 unsold homes in August. Appreciation of home values has begun to slow throughout the Denver Metro Area.” In the Economic and Market Watch Report by the National Association of Realtors, “prices still rose 4.3% from a year ago” in the Northern Colorado markets.

The Denver Area condominium market continues to be impacted by the heated real estate market of the last several years when interest rates were low and condo owners decided to put their condos on the market and buy new construction. In our opinion, now is time for renters to make a move. Renters can purchase a nice 2 bedroom, 2 bath condo for the same amount they are now paying for rent on an apartment. For the same reason, investors should be taking a look at condos as long as they are certain of the direction that HOA fees are headed for in that particular development.

The Denver area is still experiencing different levels of activity depending on location. Properties located closer in to the downtown area continue to maintain stronger pricing while home resales in the suburbs are weak in areas where sellers are competing with an oversupply of new homes by the builders.