2009 Turning Out To Be Another Tough Year

As we all know, Colorado’s economy went through a tough year in 2008. So far, 2009 is turning out to be another tough year. According to Metrolist, the Denver area’s Multiple Listing Service, closed residential sales were down 12% in March from March 2008 and 14% year to date. The average sold price is down 8% from a year ago.

But there’s light at the end of the tunnel! There are more than a few positive indicators to look to. The inventory of homes for sale is about 20% lower than it was 12 months ago, and new listings coming on the market are off by 16%. Absorption rate—an indicator of how quickly the supply of homes on the market is turning—is currently at 5.9 months, down 10% from this time last year. Both of these metrics indicate that the glut of homes on the market is clearing out. Buyers are snatching up homes, and for those of you contemplating putting your home on the market, you will have less competition to contend with.

Consider all of these positive market indicators:

• Low interest rates

• Pent up demand amongst Denver buyers

• Lower inventory of homes available in the Denver area

• Falling absorption rate

• Opportunity to get good deals (perceived or real)

• Buyer incentives like the $8,000 first-time home buyer tax credit

So, what does the future hold? Well, as usual, when making guesses about the future it’s important to realize a prediction is just that, a guess. But hopefully an educated one. I could be way off base, but when taking all of these indicators into account it would appear that we’re going to be one of the first markets to come out of the national real estate doldrums. But remember, I could be totally wrong here! Stay tuned.

If you have any questions about the current market or would like to discuss your situation, please call. That’s what I’m here for.

Warm regards,

Seth Jenson

Broker | Owner

Jenson Real Estate Services

303-268-2024 (direct)

303-564-5049 (mobile)

Metro Brokers, Inc.

P.S. Please call or email me if you know anyone that might want to buy, sell, or finance a property ANYWHERE. I'll take excellent care of them, or I'll find a top agent or broker or to help them. Thanks in advance for your referrals.