Denver's overall outlook is sunnier than for most western cities because neither inventory nor prices spiraled out of control during the boom. Dinged by a telecom bust earlier in the decade that cost the city 5 percent of its jobs, the local economy wasn't primed for irrational exuberance. Now with six months' worth of homes in inventory-the level most experts judge to be roughly in balance-the city offers considerable upside.
This is necessary news to us. We have known our market experienced only mild appreciation while areas like California, Arizona, Nevada and Florida were skyrocketing. Now they are paying the price. Unfortunately, the national news tends to focus on the WORST CASES rather than looking at the whole picture.
The magazine quotes David Berson of PMI,
David Berson, chief economist with mortgage insurance firm The PMI Group, says that if hard-hit states like California, Arizona, Nevada and Florida are taken out of the statistical mix, the picture is much more promising. According to PMI's "risk index," which estimates the odds of prices falling in a given market, at least 65 percent of the nation's 386 metro areas have less than a 10 percent chance of seeing lower prices two years from now. What's more, the government's sweeping bailout of the financial sector could boost the housing market by making borrowing easier for buyers.
Is the glass half empty or half full?
I guess that depends on where you live. I contend if the media would stop pounding on problems, exaggerating them to the point the negative is only what we see, we might find a way out of this situation. Consumer confidence is low. Each day Colorado Realtors combat the tide of negativity with the facts. It's hard to fight when you are just one person up against greater odds.
But the facts must get out!
I love when magazines like Smart Money focus on the good markets. Recognition of the truth and the potential of the future real estate market in Denver is very satisfying.
Other Cities Posed for Growth
In addition to Denver other cities cited by Smart Money are:
- Des Moines
- Salt Lake City
If you would like to read the entire article, you may find it here. Home Prices: Now for the Good News