Homes By Parks – Blog

The average patient in a 325 bed hospital has a blood pressure of 130/105, a temperature of 99.3 degrees, 175 lbs. , height 5- 07 “, and generally in recovery. What does that tell you about any particular patient? Absolutely nothing of course. Among the 28 ice cream choices at Baskin Robbins, what is the average flavor and how does it really taste? Silly question, but that’s the context of most real estate articles, national in perspective, leaving you quite uninformed of what’s relevant to your market, sub-market, niche neighborhood, and yes your block and floor plan….in the last 90 days. That’s not an arbitrary number by the way, since loan underwriters are ordering new appraisals if comparable sales are any greater than 90 days old.

In Denver, recovery is underway, on the average, albeit with significant Fed Life Support of low mortgage interest rates and Buyer Subsidies.  Throughout 2009, inventories decreased, although primarily in the sub $250,000 price points while those above $300,000 were slow, and above $500,000 slower yet.    In 2009, forty percent of  First Time Buyers used the$8,000 tax credit.   However, there are enough homes For Sale at and over $1,000,000 to satisfy Buyer demand for several years to come. Weak demand drives prices into the bargain category with substantial price reductions.  The upper end market dynamics are just beginning to surface where 12% of owners with a mortgage on their $1,000,000  or larger home  are at least 30 days late on the payment.

Foreclosures curves are flattening,  though still significant in select Denver market segments. However, many lenders are postpoing the foreclosure process, the Sale Dates, given their trend preference to accept a Short Sale instead of taking additional properties into their asset portfolios. Loan Modifications can also postpone the lender sale, although in about 65% of the cases, owners end up missing payments, back in default and foreclosure within 6 months. This is the so called shadow inventory of postponed properties, soon to be back on the desks of lenders, ultimately delaying the recovery.

Dark clouds? More accurately, clouds with a little sunshine, but the storm is not cleared by any means. Since 2009 was a step in the right direction, a positive over the picture in hand the last quarter o f 2008. Progress toward a balanced market will be neighborhood, and geo market specific, a good reason to contact those with a localized specific pulse on the latest. As always, premium location properties near open space, green belts, golf courses, or public transit will fare best in the dynamic changes underway for 2010.