Looking back at the Metropolitan Denver market over the past 2 years and performing a brief comparison, things were just not as bad as the media heads would have us believe. So here are a few quick numbers:

2007 - Total Sold Residential units -- 49,789

2008 - Total Sold Residential units -- 47,328

That is a reduction of 5% in total residential sales, which by the definitions of the Metro Denver MLS (Metrolist) includes both detached and attached dwellings. So is a 5% loss in total sales all that bad? Not really, but read on.

2007 – Average Sold Price -- $281,823

2008 - Average Sold Price -- $248,328

OK-so that latter number is a bit of an ouch, at least on the surface. An average per unit sold dollar loss  of $33,500 or an approximately 12% loss of sold value. Sounds bad, right? Well, it is not good, but let’s glance below the surface a bit.

First, let’s remember what a market is. It is those things of any given commodity being offered for sale right now. And right now, in Denver, and for most of 2007, there were more low price things (residences) being offered for sale, and subsequently sold, than high priced residences. Many of those sales were bank owned or short sales. The result of those distress sales is a reduction in the average price. There are very few elective offerings and leasing has become very popular in the higher price ranges, with high end builders leasing their custom properties to pay the debt service while biding time until the financial markets begin to function. As a result, the total inventory available in the market continues to decline.

I am certain that some statistician in Washington will work out just how many distressed sales there were in Denver last year, or the effect on the Metropolitan Denver area’s total value of residential property, but consider that for many of those sales where a loss was sustained; it was a bank that sustained the loss. Yes, I know that every distressed property sale represents a small tragedy, and I know the banks are really covering their losses with our tax dollars, but the discussion here relates to the difference between current market value and sustainable future value. Properties in the lowest price ranges are selling rapidly in the Denver market, with competing offers in some cases, and prices are beginning to creep up in the >$200K market.

So, what is my point? Simple, if you do not have sell your home, and I mean really have to, then don’t. While there is no doubt that the local and national economy has much to do to recover the loss of monetary value, there will be many home buyers ready to buy when it does, and that will be the time to sell.

Larry D. McGee Broker The Berkshire Group, Realtors 3801 E. Florida Avenue Suite 400 Denver, Colorado, 80210 US	Work: 303-513-1436 Fax: 303-953-5390 larry@tbgdenver.com http://brokerisms.theberkshiregroup.com
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