Still, many Realtors contend that doesn’t really capture  what is  happening in the market.

They argue that interest in homes that most people buy – those below $300,000 – is quite robust. And if it were not for the huge drop in values among the most expensive houses, the Denver-area market would be extremely strong.

“I am always afraid when someone reads an article showing an overall gain, or a peak, or a loss in the Denver metro area, they think that is what they are going to find in every neighborhood,” said Corey Wadley, a broker-owner of Denver-based Nostalgic Homes.

He said that reports looking at an overall market do not take into consideration that different market exist at different price points.

“First-time home buyers read it is a buyer’s market, and think the can throw a wet noodle at the wall and it will stick,” Wadley said. “But it is not a buyer’s market in the areas around downtown Denver under the $250,000 price point. People in the trenches can tell you that we are looking at multiple offers at these price points below $300,000 or $250,000. The overall numbers for a metro area do not really tell you much in relationship to homes people are looking to buy right now.”

He said in northwest Denver example, where Nostalgic Homes is headquartered and does two thirds of its business, home prices appreciated last year for those priced $300,000 or below. Developers of luxury spec homes – those without buyers – in northwest Denver had to drop their prices, because of extremely high carrying costs, making the market look weaker than it really was for the majority of buyers, he said.

If you removed the luxury housing market from the statistics, which has seen huge slashes in prices, the rest of the market would look pretty solid, said Jeff Bernard, principal of Bernard Real Estate Analytics and a broker with RE/MAX Alliance.

“I really believe so,” Bernard said. “The luxury housing market is experiencing a pretty amazing crash. I would think that is the only thing that would really be hurting the overall Denver residential real estate market…I don’t want to sound trite, but it really is almost a street-by-street market. There are certain aggregates than you need to look at when we start drilling down into the market. I think the $300,000 and below is a very healthy market. It is a ticking time bomb in the $750,000 to $1 million and beyond market. I would say that is really a black hole out there, although it is a small percentage of the market.”

Economist Patty Silverstein, principal of Development Research Partners, said she has not paid as much attention to the sales in price point like many Realtors have, but she believes that they are probably correct that the luxury housing market is a drag on the overall market.

“The higher-end housing market seems to have more swing to it,” she said

Bernard said the $8,000 tax credit for first-time home buyers helped the overall Denver housing market last year.

“I know that from first-hand experience,” Bernard said. “I helped my daughter buy her first home last year. She was looking in the $210,000 range and we saw the prices increases, as people bid up the prices on those homes.”

He said at the low-end, first-time buyers not only are competing against owner- occupants like themselves, but also against investors who plan to fix them and flip them, or rent them.

Bernard and Wadley said that the extension of the $8,000 tax credit to the end of April, as well as a $6,500 tax credit for some current homeowners, should drive traffic in the first few months of this year. Wadley said he is surprised by how many people who unaware of the tax credits, especially the one for existing homeowners. He said he is encouraging people to start looking now, rather than waiting until February, and risk not getting their home under contract in time to take advantage of the tax credits.

Early signs are promising, Wadley said.

“If we judge it by open house traffic, the interest out there is huge so far this year,” Wadley said.

Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865.

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The highest bid over $100,000 get this home.

Auctioneer Janelle Karas describes the house going under the gavel on Friday as an “Investor’s dream come true.”

Maybe it is.

At 11:07 a.m. on Friday, A.J.Karas will auction a home at 8677 Garrison Court in Arvada. Bidders should plan to arrive by 10 a.m.

The minimum bid is $100,000.

After the minimum bid is met, the highest bid takes it. After it hits the threshold of $100,000, it becomes what is known as an “absolute auction.”

I looked up the home in the Jefferson County Assessor’s office, and for tax purposes the market value of the home is listed at $212,700. A nearby home that like this one, was built in 1973, is valued at $222,500 by Zillow.com.

Karas calls the home a “great fix and flip opportunity for an investor or an excellent choice for a first-time home buyer.”

The two-story home with 1,597 square feet with three bedroom and 2.5  baths,  has a covered front porch, the yard has mature trees and landscaping, and the kitchen has a cherry breakfast nook. The master bedroom has a walk-in closet and a private bath. The two-car garage is over-sized and it has an unfinished basements.

Karas will pay brokers a 2.5 percent commission.

Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865.

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