Denver (Including Westwood) 1Q 2008 condo real estate trends

Real Estate Agent with Your Castle Real Estate

Recap of First Quarter 2008 Condo Price Performance

The average condo price in Metro Denver decreased -2% in the full year 2005 to the full year 2006, from $190,000 to $187,000. Comparing 2006 to 2007, the average condo price across the metro dropped -3%, to $180K. Looking at the first quarter 2008 vs. the first quarter of 2007, prices dropped 4%, from $175K to $169K.

The average price of a foreclosure or short sale condo dropped from 2006 from 2007 by -6% to $108,000. The average price of a non-distress sale increased +2% to $211,000. Sales volume in January and February of 2007 was 1,316. In the same period in 2008, it was 1,223, or -7%.

Some areas did better than others. The attached chart shows different neighborhoods in our area. Each region has the neighborhood's name and the percentage of sales in the last twelve months that were either short sales or bank-owned properties. The second line has the price change the twelve months from 4/1/2007 to 3/31/2008 vs. the twelve months prior. Next, you'll see the average condo price in the last twelve months and the number of homes that were sold.

The good news: The average days on market for condos, in January to March 2008, was 108 days. This was a 6 day drop from the first quarter of 2007.

There had to be at least twenty sales in the last year for an area to be included. The numbers are more reliable in areas where there were more sales. Less expensive areas generally didn't do as well. There's a pretty strong relationship; where home prices are less expensive, there is more of a foreclosure problem, and that tends to drag down the prices.

Source: Your Castle Real Estate analysis, MLS data

(c) Copyright 2008, Your Castle Real Estate


Comments (6)

Joe Heffley
Your Castle Real Estate - Highlands Ranch, CO

Excellent information.  The data only confirms what we are seeing on the ground.   With information like this my investors and owner occupants can be more educated on making an informed decision.

Oct 18, 2008 02:18 PM
Brandon Gill
Your Castle Real Estate - Aurora, CO

Wow!  With all of the negative press on the real estate market it is really great to see how each local market is actually doing independently of one another.  It makes sense when you see the map on where many areas are declining.  My question is, will the declining markets shift in the next few quarters?

Oct 19, 2008 03:55 PM
Jim Goffred
Your Castle Real Estate - Parker, 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 22, 2008 04:42 PM
Todd Houghton
Your Castle Real Estate - Aurora, 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 04:49 PM
Brandon Gill
Your Castle Real Estate - Aurora, CO

Can't wait to see what is happening in the 3Q of this year.  It seems that much of the map will stay the same.  It would be interesting to hear if any of these areas have it rock bottom.

Oct 25, 2008 02:40 PM
Josh Hunter
Your Castle Real Estate - Denver, 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 03:21 PM