Louisville, Colorado surrounding areas 3Q 2008 Condo Price Performance

By
Real Estate Agent with Peak Real Estate Advisors





The big message has not changed since last quarter - it's still a great time to be a buyer in the condo market. Prices are at a three year low in many areas, and interest rates on mortgages are still historically low.

The average condo price in Metro Denver declined 4% between 2006 and 2007: from $187K to $180K. Homes dropped 3% in that time period. Looking just at the first nine months of 2008 vs. the same time period in 2007, the price dropped 6%: from $181K to $172K. Homes dropped 11% in that time period. From their peak prices in 2006, condos have dropped around 9.5% while homes have dropped 12%. These numbers will be slightly different than Metrolist, as they are just Denver Metro and don't include outlying areas like Fort Collins, Colorado Springs, or Boulder.

Some areas did better than others. The attached chart shows different neighborhoods in our region. 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 October 2007 to September 2008 vs. the twelve months immediately preceding. Next, you'll see the average condo price in the last twelve months and the average days on market (DOM) in the last twelve months. 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.

Last quarter, we reported that days on market (DOM) had been declining for condos, which should be a leading indicator that we are due for price increases soon. That still seems to be the case.

Comments (7)

Lon Welsh
Your Castle Real Estate LLC - 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 20, 2008 09:26 AM
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 20, 2008 04:27 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 20, 2008 04:40 PM
Brandon Gill
Your Castle Real Estate - Aurora, CO

Any idea how the job market will impact this data?  Is Colorado expected to create more jobs in the short term. It would be interesting to see how the real estate market is effected by the job market.

Oct 22, 2008 03:38 PM
Karen Hinkel
Your Castle Real Estate - 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 04:40 PM
Melanye Phipps
Innovative Real Estate Group - Arvada, 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 02:28 PM
Todd Houghton
Your Castle Real Estate - Aurora, 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 03:16 PM