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While I think many Realtors in Denver probably already knew this, it seems buyers are coming out of the woodwork.

Denver Metrolist is reporting good news for buyers and sellers alike. While days on market have gone up significantly from last year, 14% over last year to 117 days, so did ’solds’. Sold listings for January were up almost 25% since this time last year. (statistics from Denver Metrolist for the month of January 2007) Good news for buyers? Well, prices were down a touch as well compared to last year at this time.

I like to think that activity in January is a harbinger of what the first half of the year will be like. It’s been a busy couple of weeks for me. I’d imagine that many agents around Denver are breathing a sigh of relief if the same thing is happening to them. It’s almost as if the market was artificially supressed by poor media coverage. I haven’t heard anything horribly bad in weeks.

I’m not saying that all is warm and fuzzy. January’s DSNews (Default Servicing magazine) reports that Colorado’s foreclosure rate is 2.7 times the national average. Look out Douglas and Weld, you have a new contender for top foreclosure county. Adams County now tops the list with 1 foreclosure for every 132 households. But the truth is, this is actually an improvement from where it’s been.

My Real Estate Market predictions:

It doesn’t take a rocket scientist to realize that the job market and commercial office markets are healthier than they’ve been in years. Real estate will always be based on what’s going on locally. In particular, the job market has more to do with how the real estate market will do next year than interest rates will ever have. More jobs will mean fewer defaults on loans. And higher incomes mean higher home values. If buyers can afford to buy a limited supply of quality homes in desirable areas, prices will go up, and vice versa. So if there are jobs in Denver, I’d imagine home prices will remain stable or even show modest growth. Look for areas like Sunnyside, Berkeley, Bonnie Brae, DU, Cherry Creek, Cherry Hills Village, Greenwood Village, Englewood and Washington Park to see continued growth (1-3% this year), while areas like Highlands Ranch, Green Valley Ranch (Denver), Park Hill (Denver), Northglenn, Thornton and Southwest Denver will show some declines as high inventory and foreclosures put pressure on sellers to drop prices (2-5%).

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