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The numbers show that a market bottom has arrived

By
Real Estate Agent with Paradise Realty

Case-Shiller Home Price Index 09 11

As you can see from this chart, both the nationwide numbers (CSXR) and the Denver numbers have stabilized at "reasonable" numbers.  Included are 5% compounded lines (green & purple) to show that we are below the 5% price growth curve, which I believe is a decent inflation curve to compare to.

I interpret these curves to show that, nationwide, prices went crazy form 2002 to 2007.  We should have all been digging storm shelters!  It also shows that the Denver marketplace missed a lot of the frenzy and should be well placed to recover (which Denver brokers are seeing).  Historically, the Summit County, Colorado resort market lags Denver by about 12 months, so we should see significant improvement in 2012.

We are starting to see savvy buyers, those who recognize the opportunity to buy is at hand.  Sure, we are getting the bottom feeders who want to waste time putting in offers 25% less than the current market prices, but we are also getting those who recognize that current market prices are low by historic measures and appreciate the fact that there is a reasonable inventory to chose from.  Our inventory of mountain resort homes is normal for this time of year.

Posted by

   --Dave Bittner--

RE/MAX Properties of the Summit

    Cell:  970-390-1604

Bill Gassett
RE/MAX Executive Realty - Hopkinton, MA
Metrowest Massachusetts Real Estate

I hope that is the case where you are! I estimate it will be at least another year here.

Dec 04, 2011 04:28 AM