Denver’s Economic Growth Strong by Some Measures
November 27th, 2011 categories: Market Trends
The Denver Post published a story this morning based upon research comparing Denver to 9 other U.S. cities.
According to their study, Denver continues to outpace most other regional cities for Economic Power, Earning Power, Brain Power and Innovation Attractiveness.
It’s been our hope, here in Denver, that the Innovation Attractiveness will help fuel employment, but apparently we’re lagging in jobs creation. We rank 6th out of the 10 for job creation and 5th for housing affordability.
I spent two days last week with a lovely family who are being moved to Denver from Houston with the oil and gas industry. They were a little glassy eyed with sticker shock in terms of housing affordability. However, one plus in Denver’s column is our relatively low property taxes.
A close friend also works in oil and gas, and she predicts that the Niobrara oil field could hasten job creation in the metro area. And Denver’s housing affordability rankings have actually improved during the recession. The housing decline and foreclosure crisis hit Denver earlier than most of the U.S., meaning we’ve come down to settle along the bottom.
One very interesting statistic in the Post’s article is the productivity of Denver’s workforce. Our GDP per-capita is $56,706 and ranks second behind only Seattle with a per-capita GDP of $60,859. This should attract businesses looking to relocate or expand. The average U.S. per-capita GDP is $11,149, meaning we have a highly productive workforce in metro Denver.
Jobs and employment are key, and they appear to be lagging based on the Post’s study. With such strong fundamentals in place, jobs should surely follow.
Gretchen Faber, LifeStyle Denver author, is a local Denver real estate broker. Contact Gretchen for information on Denver area real estate. She can’t find you a job, but she can definitely find you a house!
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Denver Colorado Real Estate Statistics | March 2011
April 20th, 2011 categories: Market Trends
Real Estate is like a box of chocolates. Sometimes you get nuts.
- The nuts have been our foreclosures, our short sales, our underwriting issues and our tough appraisals.
Real Estate is like a roller coaster. Sometimes you go up, and then you fall fast. It takes longer to go up than come down.
- Interestingly, last year’s tax credit made our first half of the year incredibly busy. Then third quarter we fell off a cliff. It was so quiet! We all went to the pool.
- Prices have fallen across the nation since 2008. In some areas, they fell fast. Now, they’ll take longer to creep back up. Appreciation won’t be crazy fast like it was. It will be slower, more rational. This is the new normal.
Real Estate is like babies and teenagers.
- If you own your home, you need to baby it. Feed it with updates to keep it current. Clothe it in great curb appeal, lovely landscaping, an occasional fresh coat of paint and new carpet.
- Some days owning a house is like having teenagers. Temperamental (notice the word “mental” is in there?) Keep your mechanicals, appliances and roof in good working condition so you don’t have to use your mattress money to bail them out of jail.
Whatever your real estate is like, Denver real estate is always interesting. And the homes for sale are the bargain of a decade right now, with prices on the rise again.
In March 2010, the tax credit was just about to end. Buyers were in a tizzy to get their new homes under contract by the deadline. This was driving the market and the main price-point was the lower end, or starter homes.
This year, you can see in the chart that prices are moving back up. We don’t have much appreciation yet, if at all. We have a more normalized market, with the higher end finally coming back. In 2008-2010, jumbo loans were nearly impossible to get. Luxury homes were purchased with cash, so fewer luxury homes were selling. This resulted in significant price reductions by Sellers who wanted to compete and sell. Now that jumbo lending is back, rates are low and prices are low – the high-end is off of life support.
So Real Estate is like life. Ups and downs, ins and outs and always interesting. If you’re interested in searching for a Denver home or listing your fine property, call on Gretchen Faber and The Kentwood Company for assistance. Our company was ranked the #1 residential real estate company in the United States for per-agent sales volume in 2009, with 2010 results posted soon. We’re a dedicated team of professionals, looking forward to helping you find your next dream home.
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Denver Real Estate Prices Rise 1.5% Since May
July 1st, 2009 categories: Real Estate News
Denver real estate is in recovery. We’re the baby sapling, taking root and growing strong.
The thing is, we never totally crashed and burned like other cities did. Prices went down for sure and according to yesterday’s S & P – Case Shiller Report, we’ve seen depreciation of 4.9% since this time last year. Compare that with Phoenix, down 35.3% year over year.
Since last month, Case Shiller reports that Denver’s prices have appreciated 1.5%. That’s an awesome bounce. Some analysts think this may be a seasonal adjustment, and may not signal a recovery.
I disagree.
Our available inventory hasn’t risen significantly this year. We didn’t experience the typical big bounce in available listings in the Spring. For that reason, we’ve been able to stabilize the market. The ratio of properties available for sale and days on the market is stable. We still have a stratified market, and we need to see high end properties shake out some inventory.
High end sales are increasing slightly too.
I looked up Park Hill and Hilltop sales since April yesterday, several million-plus sales have been recorded. Jumbo rates have become more competitive in recent weeks and there are cash buyers out there looking for a deal on their dream home.
Appreciation follows a reduction in time on the market.
As the days on the market have fallen, as we’ve begun to have multiple offers, as rates have remained competitive we’ve had appreciation re-enter the Denver market. We won’t get back to double digit appreciation very soon. But buyers beware – if you don’t get off that fence soon, you may be looking back over your shoulder in regret.
Margaret Jackson, the Denver Post’s Real Estate Correspondent wrote more about the S & P – Case Shiller Report in this morning’s paper. Read to the end!
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Case Shiller Report Paints a Rosier Picture for Denver Real Estate
May 27th, 2009 categories: Market Trends, Real Estate News
Yesterday, the S & P Case Shiller report on real estate was released.
Denver was cited as one of 3 major metropolitan areas with a slight uptick in home values, in this case .1%. While this may seem like a tiny bump, combine it with the Today Show appearance of Barbara Corcoran who placed Denver as the number 1 recovering city and the fact that houses in low to medium price ranges are getting multiple offers and you’ll begin to see a pattern.
Denver is in the national and local news because our economy tends to be counter cyclical. We hit the skids earlier than most cities and we’re rebounding first. We like to be on the cutting edge. Or maybe we were the canary in the coal mine. In 2007 we led the nation in foreclosure sales, now we’re getting multiple offers and the days on market is shrinking in certain price points. You can see in this chart from Keeping Current Matters, that as months’ supply goes down, appreciation begins to go up.
I was interviewed by Bazi Kanani of 9 News yesterday. She wanted to know what the market fundamentals were that boosted Denver’s real estate market, and what a practicing real estate agent is actually experience at ground zero.
If your home is priced between $150,000 and $500,000, you’re competitively priced compared with the competition and your house is in top showing condition then you should get an offer within 2-3 months at the longest. If you don’t, then the price needs to come down.
Luxury homes and higher priced properties are taking longer to sell, and if you want to sell your luxury home you must be exceedingly well priced and prepared to negotiate. You may also need to factor in regular and aggressive price reductions to get a sale.
Who knows what lies ahead? As Roseanne Roseanna Danna said, “if it’s not one thing, it’s another.” Here’s to a recovering Denver market with out “another.”
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