Nostalgia maybe annoying to the younger generation, but to many who forever enjoying indulging in it, there is peace. Yes, it is comforting to know the world isn't going to come to an end because of this event or that. Some would like to believe nothing will ever be the same again and they are probably right. The future never really looks exactly like the past simply because it is the future. It will be different not bad just different.
Back in the 1980's Colorado experienced a down turn in the real estate market. I had the good fortune to be able to work with a variety of asset managers liquidating foreclosed homes. At one very low point in my business I was holding about 60 listings with very few selling. The lack of activity was getting me down and I couldn't see how the glut of homes would ever go away.
I expressed my feelings to a wise old (?) asset manager and he told me not to worry. He said things are going to continue to be slow until the INVESTORS discover the bargains and come soak them up.
He was right.
So now I can say after living through a down market or two this too will pass. Just this month Denver is getting good press now just locally but recognition from the wise old money-bag investors who watch the market. They are coming. No actually in fact they are here.
- In September 2007, 33.5% of the total detached home sales were priced under $200k. In September 2008, 44.5% of the total detached homes sales were priced under $200k. that is an 11% increase in the lower price range, which is reflected in the lower average price.
- The inventory of unsold homes dropped 21.14% in September 2008 vs. September 2007. The inventory of combined (res and condo) homes available was 23,923, reflecting a 24 week absorption rate.
- New home construction is off 55% from last September, which was down 25% from September 2006. There is very little available new home inventory, with most new home sales to be new orders rather than spec starts.
- The average and median home prices are off because of a lack of available financing in the upper price ranges, and something approaching a frenzy among investors in the lower price ranges (under $150k)
- Money is flowing from equities to cash to real estate.
- The Case-Schiler report noted that metro Denver is the second best market in the country
Colorado is on the road to recovery. Headlines in the news are hinting of a brighter future to come and it won't be long before this too will be a faint memory. 8-)