John Rebchook is a former Rocky Mountain News reporter with more than 30 years of experience in writing and communications... The parts of the Denver-area market that were hit the hardest by foreclosures, short sales and plummeting home prices, are now well on their way to recovery.
That is the word from Lon Welsh, principal of Your Castle Real Estate and a statistician.
“His thesis is that the market segments which were the first to experience declines in home prices and fell the furthest are recovering to price appreciation,” according to Larry Hotz, a broker with the Kentwood Co.
“As a statistician, he believes that is bellweather for the bottom of home prices,” Hotz added.
Here is part of Welsh’s analysis, which appeared on All Denver Real Estate, a blog by Hotz.
“The inevitable conclusion is the the price declines have reversed in the worst hit Denver markets,” Welsh wrote. “These are real estate markets that saw saturation foreclosures and short sales. Prices plummeted. But, now we can that the the prices have reversed. This bodes well for the Denver real estate market as a whole in 2010. While extrapolations to exact numbers would be fruitless, the trend is clearly up!”
To read the entire blog, which includes graphs, visit All Denver Real Estate at this link.
Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865
This is the time to encourage your buyers to act. Building costs are not going down. Land prices will be rising sharply when the builders start again (word is Village and McStain will begin building in March, but only on sold contracts, and they'll have to buy their land, again). Investors have been buying developed land and finished sites like crazy for 2 years now. Residential building activity is down 87+ to 100%, so when inventory is absorbed the cost to get into the game of home ownership will be a lot higher…and I haven't even begun to talk about the parasite (government imposed) costs. Remember Colorado and all the municipalities have BIG shortfalls they have to make up. Historically the building business is a favorite target. ATTN: REALTORS!! Look for a transaction fee (not a tax; that would have to be voted on) proposed this legislative session. Hope I'm wrong, but we've got democrarts on the loose under the dome looking for $$$$. I've seen this all before; several times.