A recent article in US News reported that although many areas of Denver have experienced a reduction of home values during the past two years, homeowners in select neighborhood have actually seen APPRECIATION of home values. This color coded map shows in blue (0 to 5%) and green (5% +) where owners have been experiencing an increase in their property values over the past two years. If you are thinking of purchasing a home in Denver you might want to first consider looking in the areas that have bucked the national and local trend. After all, the reasons these pockets of areas are and have shown appreciation while other areas have not, will continue to exist in the future. You too can benefit by owning a home, or investment property, in one of these appreciating areas.
2 comments:
Bill, this is an interesting post. But the liquidity crunch in the market is a factor that explains the current situation - its something any RE investor/buyer has to keep in mind - whether its Denver or other places. Despite Bush denying any Recession, I think cash is a better choice at least for next 2 quarters for first time home owners. RE investors can take positions, if they have surplus cash, that is.
- Ryan
Hi Ryan,
Thanks for your post.
Cash is always good to have around, but knowing when & where to invest it can be more valuable than having it in the first place.
The Denver market appears to have bottomed out. Many neighborhoods are experiencing appreciating prices. I think, even for first time home owners, that right now is the very best time to buy.
The best areas of metro Denver are not going down in value. But, many buyers are still nervous about buying. That is a perfect time to be buying. The market is full of available homes, interest rates are low, sellers are motivated, not much competition when a buyer makes an offer, prices have not started moving up (at least in most areas of town)... Lots of factors indicating NOW is a wonderful time to buy are present.
So, even a 1st time buyer can be very selective. Pick the best home in the best areas with good schools and in an area that is just starting to show appreciation because of the desirability of the neighborhood. Beat the other buyers to the punch. Buy at the bottom of the market.
The real point here for you to consider is where is the bottom of the market? Even if the area of town you want to buy a home in is not yet showing appreciation, it is very likely that the bottom of that market is very close. You would be better to buy now when interest rates low (your buying power is maximized) and selection is still high. (Available listings for each month in 2008 compared to last year have steadily been declining.)
Let me know when you are ready to take a look at some homes in the best neighborhoods.
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