Denver’s Residential Real Estate Market has began to gradually recover. Certain price ranges have not hit bottom but most Denver Homes under the $300k price have stabilized.
Denver Luxury Homes- We will most likely see prices in the Denver Luxury Home Market continue to adjust down and in order to stabilize this market we should get accustom to wrap loans.
Denver New Home Construction- Colorado Home Builders are slowly coming around, most would prefer to only building presold homes . But, I would imagine do to Richmond Homes success in the under $300k price range in the Denver Area, other builder will take notice a slowly follow suit. “The builders will see sequential improvements in their quarterly results.”
Denver Homes For Sale- “Although we forecast that as many as 7 million foreclosures are likely to occur over the next several years, we believe the pace at which these homes will come to the market will be consistent with current levels. As such, the concerns around the negative impacts of rising inventory levels are overdone.”
Unemployment’s effect on the Denver Real Estate Market- An improvement in unemployment is the single most important factor which will drive Denver Home Sales up. “An improving jobs picture will drive greater price stability and better demand. That said, given the level of excess inventory, the pace of price appreciation will be below trend for some time.”
Home Mortgages- We believe lending standards will loosen up in 2010, like the FHA 90 day flip rule. Until we have liquidity the Luxury Homes will certainly continue to stagnate.
Denver Home Development- The developement of high quality lots is happening as we speak. There is opportunities for investors and developers how have staying power.
Investors- The longer term outlook for housing will increasingly dominate investors focus toward the end of 2010. Housing in some states will prove more secure and profitable then the stock market.
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