December 2009 the Denver Homes For Sale or sales were down just over 8% from the past Home Sales in 2008. These Statistics will included Highlands Ranch homes for sale, Littleton homes for sale, Lakewood homes for sale, Parker homes for sale, Castle Rock homes for sale or basically all CO Homes For Sale listed in the Denver MLS. Now the good news is the average sales price went up to $255,000. Now let me explain the dynamics of these statistics. Why were Denver Home Sales Down? Answer; Simply put, it was the lack of inventory in Denver. There’s a record number of foreclosure filings, but the current administration and the banks were not letting the homes hit the market. The banks are renegotiating a large percentage of the mortgages helping to make the payments more affordable for the current owners and the our current administration is trying to keep the owners happy by not foreclosing. Maybe trying to get that next vote in 3 years. Now the next dynamic is economics 101, supply and demand. The supply was down, therefore the demand was up. In 2009 when a foreclosure hit the market, homes priced under $250k had multi offers. Investors were coming out of the wood work bidding on these properties and most would sell over list price. This was killing the chance for the first time home buyer trying to capitalize of the $8000 tax credit. Therefore the program was extend. Now remember, Denver was the first into this recession and we will be the first out. Now here’s the where we need the banks to make the right moves for the future of Denver Home prices to maintain there stability. There are billions of dollars just waiting on the side lines for these homes to hit the market. Now we need the bank to start releasing these home, but not too fast. If they release too many at once if will drive prices down. Now here’s the balancing act, the more they release the more it will help our job market and economy. Hardware store sales will go up and contractors will find more work and hire more. This is certainly a balancing act we will all be watching.
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