Here's an analysis of what has happened with home prices in different suburbs around Denver Metro between Jan-May of 2007 and Jan-May 2008: The average home in Castle Rock didn't actually drop 17% in value. Instead, sales volume of the large, expensive homes (those over 4,000 square feet) plummeted 71%, while consumer instead bought many more mid-size homes in the 2,400 - 3,000 sq ft range. Here, sale volume increased 26%. The mix of selling fewer expensive luxury homes and selling many more affordable mid-market homes drove most of the sales price decline in Castle Rock. The average price of a mid-size home in the 1,800 - 2,400 square foot range declined only 1.7%. This is why it looks like home prices are declining in Denver - there are many factors at work.
Show All Comments
Sort:
Peak Real Estate Advisors - Denver, CO
It is amazing to see how much some of these markets have dropped and look like they are continuing to drop. I hope the bottom is near for some of these communities. On the flip side, what a great market to buy an investment in.
Oct 24, 2008 04:11 PM
Your Castle Real Estate - Arvada, CO
Have you heard that the days on market have been decreasing the last two months? I think that maybe we are past the bottom and climbing on up. It will still take some time but I'm seeing the first signs of things turning around.
Oct 25, 2008 02:07 PM
Your Castle Real Estate - Highlands Ranch, CO
Your information reflects a true depiction of what is going on in the Denver market. I like the way you have put this information. It is insightful but matter of fact. Do you send this information to your clients or just use it in your brokerage?
Oct 26, 2008 03:09 PM
Comments(3)