by Brian Burke
on Monday, June 10th, 2013 at 9:19am.
Ever since the real estate bubble burst in 2008, Americans have been waiting for the housing market to recover. Though its taken a significant amount of time, not to mention some serious financial struggles for homeowners and prospective buyers in the interim, it appears that the market is finally looking up. This is nowhere more evident than in Denver, where real estate prices have been increasing steadily and the value of homes has been approaching a record high.
According to a recent Case-Shiller index (Standard & Poors method of rating real estate value), real estate prices in the Denver area have gone up approximately 10% over the past year. In fact, on a month-over-month basis, Denvers home prices increased by a whopping 9.3% in January 2013 alone. In a normal economy, prospective buyers might not be thrilled to hear about increases in property costs. The housing markets downtrends in recent years, however, actually make these increases great news for anyone looking to buy or sell, as they indicate an overall improvement in the value and equity of a home.
The Top Ranked Real Estate Markets
Denver is not the only city in America experiencing these trends. Phoenix, San Francisco, and Las Vegas are just a few of those cities that have seen increases in property price and value. Indeed, the increasing home prices in these and other cities have knocked Denver out of its listing as one of the top five real estate markets. Ranked #3 on this list in 2012, the area is now ranked #10though this is not bad news. Instead, it simply indicates that Denver is part of a positive upswing that exists on a national level.
Improving Job Market
Most economists attribute the recent housing boom in Denver to corresponding trends in job growth. Specifically, Denvers job market has seen a 3.1% increase in recent months and shows no signs of slowing down. As a result, more people have been able to purchase homes, thus increasing the demand for property in the area and sending prices upward. Even those whose homes were foreclosed on 4 or 5 years ago are recovering and returning to the real estate market.
As of February, there were less than 7,000 unsold Denver homes on the real estate market, down from over 10,000 homes on the market at the same time last year. The decline in the number of unsold homes bodes well for the Denver housing market going forward as it marks a new record in the rate of real estate appreciation. In fact, real estate experts note that Denver hasnt seen real estate appreciate this quickly since 2001.
The lack of major fluctuations in Denver real estate prices is also a positive sign, since it indicates that the market has not only stabilized, but might be in the midst of a 10-year improvement cycle. In fact, the value of all homes in the great Denver area, regardless of home size or location, are escalating suggesting that now is the time to buy.
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Brian Burke | Broker | ePRO | Expert | 303.955.4220 Office | 303.710.2609 Direct | Brian@kennarealestate.com