The Denver market is full of contradictions.
We have 21% more homes available than the same time last year. Last month the average price went UP? Yes, that's correct, it went up. Our prices continue to rise. So does our days on market.We are approaching a record number of foreclosures.
The foreclosures are the result of homeowners extending themselves beyond reason. Builders offering incentives that far out reach the value of the home doesn't help either. Buyers are offered HUGH incentives and somehow think they are FREE. (DUH) Also in the foreclosure mix is a new generation of REO managers who are just now learning how to deal with the situation. After they get an education (read get real) the REO's will also sell.
Today's headlines in the Rocky Mtn. News indicated Commercial real estate is HOT!
Well that's true about commercial, a few years ago we had plenty of availability, now it's soaked up and companies are waiting for space.
Colorado had the highest concentration of IT workers when the crash occurred in 2001. Many jobs went away. That is changing now. Our employment figures are improving. Our job base comes from a variety of industries.
As for the glut of homes on the market? I show at least 30 homes a week, sometimes more depending on how many relos I have. The reality most homes have something wrong with them. Price, condition, location etc. It is seldom that my buyers can come up with 3 homes they really like. This is sad. Homeowners need to get the word, "it's a buyer's market". Clean up your home, make it sparkle. This isn't yesterday's real estate market.
My real estate career started in the 1980's. I've weathered high interest rates, high foreclosures, war in the middle east, dot.boom crash, war in the middle east and now. We will weather this storm. The population of the U.S. continues to increase. Foreign nationals are coming here as fast as they can get in, legal or illegal. Everyone needs a home, we are not going to go out of business anytime soon.
We live in the best country on the face of the earth. Freedom and the free market will prosper.