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Central Denver, Colorado 3Q 2008 Condo Price Performance

By
Real Estate Agent with Your Castle Real Estate

 

 




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.

Show All Comments Sort:
Mark Beyerle
Your Castle Real Estate - Denver, CO

It sounds like you've been around a while. Good information.  How long have you been in the business?  What do you find is the most challenging these days versus a few years ago?

Nov 02, 2008 02:52 PM
Ben Dorland
Porchlight Real Estate Group - Denver, CO

Awesome Information!  It definitely pays to educate everyone in the investing process.  With all of the free classes that Your Castle provides as well as the knowledgeable agents it would be hard to go wrong with using an agent like yourself.

Nov 10, 2008 10:33 PM
Gene Elzenberger
Your Castle Real Estate - Denver, CO

Great information, keep up the good work.  The idea of updating this map every quarter is fantastic.  We have all this great information we need to get it out there.

Nov 11, 2008 10:37 AM
Lori Erickson
Your Castle Real Estate - Greenwood Village, CO

The information provided is very useful and helps us all as investors, Realtors, mortgage consultants, homeowners, and landlords.  This will provide us with a great base knowledge to go out and make informed decisions.

Nov 11, 2008 10:42 AM
Brian Evins
Your Castle Real Estate - Littleton, CO

My guess is that the properties that are coming on the market that are priced low are under contract within a couple days.  The properties that are sitting on the market are uninhabitable and need a ton of work

Nov 11, 2008 10:48 AM
Demetri Fefes
Your Castle Real Estate - Denver, CO

With all of the neighborhoods that have homes over 800k it seems that they are still doing relatively well.  I would like to ask all of the Active Rain community what they think of that?  My guess is that the number of sales is what is going down.    

Nov 11, 2008 10:53 AM
Riley Floyd
Your Castle Real Estate - Lakewood, CO

Can't wait to see what is happening in the 4Q 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.

Nov 11, 2008 10:59 AM