The Denver Real Estate market appears to be slowing down now that the government has discontinued the $8,000 first time home buyer program. Interesting enough though, the stimulus package was designed and used primarily by lower priced home buyers, but the slow down we are now experiencing in Denver appears to be across all price ranges of home buyers.
Last week I was visiting with the president of a major title insurance company here in Denver and he mentioned their new title insurance orders were down by 40% since the stimulus package ended on April 30th. Today's Denver Post newspaper had an article reporting the Mortgage Bankers Association reported loan applications for new home purchases has fallen for the fourth straight week to levels not seen since April of 1997. Lastly, foreclosures are expected to further push home prices down throughout the second half of this year.
Although employment figures are improving nationally, the lower unemployment numbers appear to be a result of more people who have been looking for employment have found jobs, but not as a result of new jobs being created.
It would appear that now is an excellent time for sellers to revisit their pricing strategy and review with their broker how well their home is "staged" as compared to other homes on the market. There are just fewer buyers in the market and they can and are being very smart when they make a purchase decision.
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It would appear that now is an excellent time for sellers to revisit their pricing strategy and review with their broker how well their home is "staged"
You left out the part where sellers should re-think their decision to sell. It is a good time to refinance and possibly keep the property for another few years
Hi Randy,
Yes, many sellers in today's market place across the country and throughout the metro Denver area have elected to take their homes off the market. Many are just staying put while others who needed to move on have rented their homes out. Unfortunately for the higher priced home owners, the rent they are collecting is far less than their mortgage payment. But, they have decided that it was better for them to take a significant monthly loss than it was to reduce their price to what the market would pay for their home.
The real good news is for buyers out there who are still able to find motivated sellers who have not only fixed up their properties but who have also substantially reduced their prices to attract serious buyers in the market.
The issue for sellers continues to be that it is imparitabe to correctly price their property for today's market and to insure their home shows better than the competition. When sellers do these two items, most are successful at attracting a buyer.
The issue for buyers is that with interest rates at a five year low and many homes that are now correctly priced to reflect today's market values, there has never been a better time to buy a home.
Happy house hunting...
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