Denver & Others Anticipating Home Prices Will Increase in 2010 - Denver, CO By Kevin Lundy of Focused Realty
Mixed news released by Inman News this morning points to four U.S. Metropolitan areas that will be suffering from real estate price decreases in the year ahead, due to the expiration of the tax credit and inventories which continue to be distressed. According to Analysts at CoreLogic, when including the disressed properties, they're predicting a national average of 0.5%. The picture gets much better when you remove the distressed properties, but that reality exists, and so the market wil, according to CoreLogic, continue to lag until that inventory is gone. The metropolitan areas anticipating the largest price drops are:
Detroit is predicted to have the largest price depreciation in the next 12 months (-6.1 percent), followed by Seattle (-4.1 percent), Nassau-Suffolk, N.Y. (-3.4 percent) and Baltimore (-3.3 percent).
However, there are bright spots in the U.S. Housing Economy to be seen in the year ahead. CoreLogic expects to see the greatest price appreciation in the following metro areas during the year: San Jose (6.8 percent), Buffalo-Niagara Falls (4.9 percent), Denver (4.7 percent) and San Diego (4.4 percent). They further anticipate those price increases to occur during the Spring monhts.
For Denver residents, along with our neighbors in San Jose, Buffalo-Niagara Falls and San Diego this comes as welcome news. For our neighbors in areas with anticipated price drops we just encourage you to hang in there, eventually distressed inventories will be depleted and good times loom ahead. Either way, this mixed national news emphasizes the diversification of the U.S. real estate market and proves just how different various markets can be. A micro-market perspective is needed to determine whether your market is anticipating growth or contraction. A full time Realtor should prove to be your best friend, when it comes to determining how your local market is performing.
Despite the welcome news, we at Focused Realty encourage our friends to pursue the market with cautious optimism, just as we always have. While its true that prices may increase, we discourage purchasing for equity gains. Rather, we encourage our investors to take a long-term approach towards their real estate investments. There are many benefits, apart from appreciation, to be gained from real estate ownership - tax benefits and pride in ownership just to name two. With prices increasing in Denver, it may be a great time to list. For more information about buying or listing your Denver Home, contact us at FocusedRealty.com or call us toll-free at 1(800) 558-7038.
Comments(2)