Denver Real Estate
Residential Market
The cooling housing market has homebuilders throughout the nation girding for fewer sales, larger inventories and stiffer competition for people in the market for new homes.
Rising mortgage rates and overbuilding are largely to blame, yet the pace of construction continues as builders rebalance their holdings, move from single-family to attached-home projects, and search for lucrative niches to fill. There remains a large number of homes for sale for buyer’s to choose from. Home values are expected to remain stable in some areas, increase in others while other metro communities have seen a 3-5% drop in value in 2007. Days on Market currently approach 120+ days.
Denver’s Real Estate Market is Changing
From June to July, Denver homes rose in value by 0.8 percent, bested only by the 1 percent increase experienced by Detroit during that period. “It looks like Denver may be one of the first markets in the turnaround mode. Maybe,” said Maureen Maitland, an analyst and vice president at Standard & Poor’s. Maitland. It appears that Denver’s down cycle is over. “You need to buy when the market is down to get the best deal.”, says Jeffery McClintock, President of Real Estate Technology Group, Inc
“However,”Maitland added, “Denver has had five positive months of price movement in a row.” Maitland also noted that Denver - real estate stumbled earlier than most cities in the country and in recent years didn’t go through the double-digit price appreciation experienced by other formerly hot markets on the coasts and places such as Phoenix and Las Vegas.
Nevertheless, the new-home market in the Denver area is still suffering through its worst period in more than a decade, according to a report by the Genesis Group.Genesis said that there were 5,842 sales of new homes in the first half of the year, a 33 percent drop from the 8,758 sold in the first half of 2006. And 2006 was the worst year for new home sales in a decade. There are a few pockets of robust price appreciation in Denver.
Some Denver neighborhoods has seen appreciation like in the case of the Highland neighborhood at 13.5 percent and Cherry Creek North at 22 percent. Thats huge and the biggest concern is the fact, that values have risen too fast in some areas and aren’t sustainable. Denver’s housing downturn started around 2001, and the area dodged “the 2006 housing bubble bursting in other parts of the country.
Rising adjustable-rate mortgages will mean more foreclosures through 2008, which will dampen appreciation at the low end of the market, but are not affecting more-expensive homes. 2008 will be another year for buyers to buy, But a lot of people are going to wait until all of the doom and gloom is over, and they are going to end up paying more, says McClintock.
Affordable Housing in Colorado gets Harder and Harder to Find
Because the vacancy rate continues to decline in the second quarter to 4.7 percent as more houesholds are forced into the rental market.
The vacancy rate in affordable housing across Colorado fell to 4.7 percent in the second quarter, signaling a tightening up of the market, according to a survey released Monday by Colorado officials.The rate for the second quarter ending in June compared with 6 percent in the first quarter, 5.2 percent in the fourth quarter of 2006 and 4.7 percent for the third quarter of 2006 which was the first time the Affordable Housing Vacancy and Rent Survey was conducted.
Denver’s Economic Base
Metro Denver offers one of the most thriving business economies in the country, as well as top-ranked educational institutions, vibrant cultural and recreation opportunities, and championship sports teams. Counties: Adams County, Arapahoe County, Boulder County, City and County of Broomfield, City and County of Denver, Douglas County, and Jefferson County The seven counties and 60 communities of Metro Denver are served by one of the best transportation systems in the nation.
Metro Denver’s diverse and expanding business base attracts the most viable growth industries, such as aerospace, bioscience, energy, financial services, and information technology/software. With access to one of the nation’s most highly educated workforces, these “knowledge-based” industries thrive in Metro Denver.
Denver Commercial Real Estate Market - Hot
Denver’s commercial real estate market is ranked No. 8 of the top 15 cities tracked in the Emerging Trends report released this past week. Denver was the only noncoastal city in the top teir, according to the report by the Urban Land Institute and Price Waterhouse-Coopers.
Denver has retooled its downtown area to create an “urban burb” , a hip and exciting urban core in the midst of a sprawling surburban area, connected to downtown via light rail transit”, as noted in the report. The report said that while the lack of barrier to entry and abundant land have encouraged over the building and hurt the housing market, the commercial real estate market has been hot for several years.
Metro Denver’s central location on the 105th meridian, at the exact midpoint between Tokyo and Frankfurt, makes it a great location for conducting international business. This unique location provides access by air and satellite communications to Europe, the Far East, and Latin and South America.
Metro Denver is also strategically located between Canada and Mexico to capitalize on the North American Free Trade Agreement (NAFTA) opportunities. Colorado exports of manufactured goods, minerals and agriculture products reached nearly $8 billion in 2006, an increase of 17.3 percent over 2005.
Semiconductors, the state’s top export category, grew 69.9 percent from $763 million in 2005, to $1.3 billion. Other top export commodities included telecommunications equipment, fresh or chilled beef, and medical and scientific equipment.
A World Trade Center was established in Denver in 1989. In addition to its educational services, the World Trade Center Denver offers a state-of-the-art computer system that links Colorado-based companies with businesses worldwide, helping to connect buyers and sellers.
Metro Denver Foreign Trade Zones allow manufacturers using imported parts and materials in their products to expedite customs and reduce or eliminate some fees and tariffs. Denver’s General Purpose zone has two locations: near the Stapleton redevelopment area and at WorldPort by Denver International Airport.
Denver’s City Council has begun the process to expand its current 13-acre Foreign Trade Zone through the addition of a 500-acre industrial park near Windsor in Northern Colorado. In addition, manufacturers can establish Foreign Trade Subzones at their place of business.
Metro Denver is home to 32 foreign consulates. Six of these consular missions are staffed by career diplomats from the countries of Guatemala, Japan, Mexico, Peru, Canada and the United Kingdom. The consulates provide information and service regarding international trade promotion, tourism, and cultural exchange.
Real Estate Services
If you would like additional information about the Denver Real Estate area in Denver Colorado as well as anywhere in Denver Metro Area contact us at 1-800-791-3990 ext 232.
Jeffery McClintock, manages a team of real estate agents specialized in the Denver market and prides himself on providing clients with professional guidance in all phases of residential new construction, including market research, product development, consulting, marketing and advertising. His personal mission is to bring to you a level of knowledge, experience, commitment, high standards and results to answer your real estate needs. He believes, the most effective way to provide superior service is to build a strong working relationship with you. His system includes regular consultations and feedback, which is the best tool for identifying and clarifying your real estate objectives and help define strategic solutions. McClintock has been instrumental in redeveloping residential ares in the metro area since 1995.
