Denver Real Estate & Metro Denver Homes Blog

According to DataQuick, the number of homes sold in the greater Denver area in September rose 19% from a year earlier, with 3,715 houses and condos sold in the eight-county metropolitan area.  Still, September home sales in the area fell 11.7% from August, reflecting seasonal trends attributable to the start of the school year.

The median sales price for home in the MSA fell slightly in September from August and a year earlier. From Jan. 1 through Sept. 30, the Denver area recorded 31,076 new and resale purchases of homes and condos.  The counties studied in the report include Adams, Arapahoe, Broomfield, Clear Creek, Denver, Douglas, Jefferson and Park counties.

The median price paid for condos in the Denver area hit $210,000 in September, down 2.3% from August and down 3.2% from a year earlier.  Absentee buyers — investors and second-home owners — made up 25.1% of all September home sales. That is up from 22.5% in August, but down from 28.4% last year. Absentee buyers paid a median price of $144,000 for Denver homes in September.  Homebuyers who paid cash made up 26.5% of all September sales, compared to 22.8% in August and 27.9% a year ago.

Government-insured loans from the Federal Housing Administration represented 34.1% of all new Denver area home purchases for the same month.

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Foreclosures continued to fall in Colorado during the third quarter, leaving the state on track to see the fewest new foreclosures in any year since 2006, according to a report today from the Colorado Division of Housing.  “We’re now likely to end this year with far fewer foreclosure filings than occurred last year, but there still may be a sizable inventory in pending foreclosures that have yet to be processed,” said Ryan McMaken, a division spokesman who prepared the report.

For the third quarter, Colorado public trustees reported 8,026 new foreclosure notices and 4,627 sales at auction. Those are the first and last steps in the foreclosure process.  New filings or notices were down 24.6 percent from the third quarter of 2010, and foreclosure sales were down 29.8 percent.  For the first nine months of the year, foreclosure notices were down 27 percent compared with the same period in 2010. Foreclosure sales were down 18 percent.

Foreclosures started falling a year ago after large mortgage providers came under fire for lapses in their processing and pulled back.  The expectation was that they would clear up those problems and start claiming the collateral on delinquent loans. But in Colorado, at least, foreclosures have continued to fall.

All 12 of the state’s most populous metropolitan counties reported declines in filings and sales during the quarter, with Adams, Denver and Mesa counties seeing declines of about one-third in new notices.  But the problem has shifted into more rural and resort areas. Among the counties with the sharpest increases in foreclosure filings were Summit, Chaffee and San Miguel counties, each up by about a fifth.  The counties with the highest foreclosure rates during the third quarter were San Juan County, with one foreclosure for every 135 households, and Archuleta County, with one foreclosure for every 136 households.  Summit, Grand, Gunnison, Park and Moffat counties also had some of the highest foreclosure rates.  McMaken cautioned that counties with small populations can see wild swings in their rate with just a few foreclosures.  For example, San Juan County had only two foreclosures, and that was enough to push it to the top of the charts in rates.

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According to an article in the March 15, 2011 Denver Post, Denver and Colorado Springs are among the nation’s metro areas that are recovering the fastest from the economic recession, according to a report released Monday.  Denver was among six metro areas to beat the national rate of job creation during the fourth quarter, growing 0.8 percent, according to the Mountain Monitor, a report by the Brookings Institution.  No Mountain West metro area has fully recouped jobs lost to the recession, but Ogden, Utah; Denver; Colorado Springs; and Albuquerque are closer to doing so than the top 100 metro areas as a group, according to the report.

Sluggish housing markets continued to slow the region’s recovery. In Denver, the healthiest major market in the Intermountain West, prices dipped in the fourth quarter after turning around briefly in the third quarter, the report said.  The Brookings report stands in contrast to new data that said last week Colorado’s economic downturn was more severe and any recovery much weaker than first thought.

Colorado’s unemployment rate hit 9.1 percent in January, moving ahead of the U.S. rate for the first time since the 2008 recession, the Colorado Department of Labor and Employment reported.  The U.S. unemployment rate has fallen from 9.7 percent in January 2010 to 8.9 percent last month, while Colorado’s revised unemployment rate rose from 8.9 percent to 9.1 percent through January, the labor department data showed.  Additionally, revisions of older data showed that the employment situation in the Colorado was worse than originally thought.

The apparent discrepancy between the reports is likely because Brookings follows metropolitan areas, rather than using statewide figures, said Jonathan Rothwell, senior research analyst at Brookings. Another possibility is that the Brookings report used December figures, Rothwell said.  Other economic indicators Brookings measured included gross metropolitan product and housing prices.  Denver’s GMP is up 4.5 percent from its peak in the fourth quarter of 2008, ranking it 13th among the 100 metro areas surveyed.

Housing prices in Denver plunged 13.1 percent from their peak in the first quarter of 2005, ranking the metro area 34th among those surveyed. But they’re up 0.8 percent from their low during the second quarter of 2010, ranking the metro area 14th among the cities surveyed.  Colorado Springs’ GMP was up 3.1 percent from its peak in the fourth quarter of 2007, ranking it 29th.

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The Denver Post reports today that commercial real estate markets in Colorado and elsewhere are healing faster than residential markets, which appear to be bouncing along the bottom, according to Federal Reserve economist Mark Snead at the Real Estate and Economic Summit in Denver on Thursday evening.  “There is no clear bottom yet in housing prices at the national level,” said Snead, who heads the Denver branch of the Federal Reserve Bank.

Home prices stabilized in many parts of the state and actually rose in Pueblo, Greeley, Denver and Boulder, noted Chris Mygatt, president of Coldwell Banker Residential Brokerage, which hosted the event.  One worrisome trend is a sharp rise in the inventory of unsold homes in the metro Denver area, Mygatt said.  Mygatt noted the homebuying market remains split between the high and low ends. There are about three buyers for every home listed under $210,000. But there are three homes for every buyer in the $500,000-plus range.

Key to any real estate market recovery will be the availability of financing. Mortgage delinquencies have declined for three quarters running, a necessary precursor to a housing recovery, Snead said.  On the downside, mortgage rates are likely to rise this year and next, said Allen Hurst, executive sales manager for PHH Mortgage’s Rocky Mountain region.  A 30-year fixed-rate mortgage, now at about 4.8 percent, could reach 5.5 percent by year’s end and 6 percent or higher in 2012, he said.  “If you see rates drop back to 4 percent, it is probably because we are in another recession,” he said.

Snead said a rebound in housing markets isn’t a precursor for job growth. California, Arizona and Florida have enjoyed some of the strongest job gains despite horrible housing conditions.  MDC chief operating officer David Mandarich noted that his company is selling smaller homes than at the peak — 2,000 square feet on average compared with 3,000 square feet.  Mandarich said the homebuilding industry, after suffering the worst year for new construction since the 1930s, appears ready to turn the corner.  “In Colorado,” he said, “we are clearly at the bottom.”

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According to an article in the Denver Business Journal, re-sales of luxury homes in metro Denver were down in December compared to the last month of 2009, but total 2010 sales were up nearly 12 percent over the previous year, according to Metrolist Inc.  December re-sales, including standard houses and condominiums for $1 million or more, dropped 18.9 percent to 43 from 53 for the final month of 2009.

Last month’s high-end home sales occurred in six metro-area counties, led by Boulder County with 12 sales. Other sales, by county, included Denver, with 10; Arapahoe and Douglas, 8 each; Jefferson, 3; Broomfield, 1.  Average sold price for houses alone decreased 8.2 percent last month to $1.45 million from $1.58 million, year over year.

The single, Denver County luxury condo sold in December went for $2.1 million.  The average sold price for the three high-end condos sold in December 2009 was $1.8 million.

For all of 2010, $1 million-plus home sales, including houses and condos, rose 11.6 percent to 528 (from 473).  Total high-end sales volume for the year jumped as well, 9.5 percent to $810.9 million (from $740.6 million).

Other significant luxury home-sale data from the new report includes:

• Total December sales volume, for houses and condos — dropped 25.3 percent to $63.1 million from $84.5 year over year.
• Highest December sold price for a house — $3.1 million.
• 2010 house sales — up 13.2 percent to 498 from 440 in 2009’s last month.
• Full-year total house sales volume — up 11 percent to $765.87 million from $689.66 million.
• 2010 condo sales — down 9 percent to 30 from 33 year over year.
• Full-year total condo sales volume — down 11.5 percent to $45.07 million from $50.98 million.

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Home prices in Denver have outperformed the rest of the nation in recent years, according to a new report on prices nationwide from real estate data provider Clear Capital and published in the Denver Business Journal.

“While current quarterly and yearly price changes indicate Denver is performing similarly to the nation, overall trending from the home pricing run-up to today shows that Denver is clearly outperforming national prices,” says Truckee, Calif.-based Clear Capital in its latest monthly Home Data Index Market Report, issued Thursday.

Denver home prices “avoided the extreme run-up experienced nationwide” since January 2002, and “subsequently fell by much smaller margins [down 29.9 percent] and have recovered more rapidly than the rest of the nation,” the report says.  It says average home prices in the Denver area are now 18.5 percent below their all-time peak of August 2005, half the national price decline of 37 percent over that same period.

“There is not a rush for property located in Colorado, which stabilizes our values,” said one real real estate broker quoted in the report. “Denver is stable, calm, inviting and desirable. The availability of jobs, affordability of housing, and location are keys to Denver’s success.” 

Prices in the Denver metro area for the quarter ending Nov. 30 declined 5.2 percent from the previous quarter and were down 2.8 percent from a year earlier, Clear Capital said. Nationwide, prices were down 5.8 percent from the previous quarter and down 2.7 percent from the previous year.

Clear Capital’s report is one of several available assessments of changes in Denver-area home prices that use different methodologies, cover different time frames and report different results.

Wednesday, another broker released Metrolist multiple-listings data on sales of existing homes showing that average sales prices in November were up 8.3 percent from a year earlier, but that prices year to date were down 8.5 percent.  The latest S&P / Case-Shiller Home Prices Index, released Nov. 30 and covering September, said metro-Denver prices were down 1 percent from August and down 1.6 percent from September 2009.

Clear Capital provides data and products for real estate asset valuation and risk assessment for financial services companies, including appraisals, broker-price opinions, property condition inspections, value reconciliations and home data indices.

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The Denver Business Journal reports that vacancies and rental rates continued to drop in the third quarter for rental homes in the Denver area, as consumers continued to rent homes rather than buy them, according to a Colorado Division of Housing report released Tuesday.

The periods 2.9 percent rental-housing vacancy rate was the lowest for a third quarter since the Metro Denver Area Residential Rent and Vacancy Survey was started in 2001.  “It is clear that the demand for rental houses continues to tighten, as families seek an alternative to purchasing a home; families, especially those with pets and children, are looking to live in single-family homes and similar properties,” Ryan McMaken, housing division economist and spokesman, said in a statement.  Housing types used in the survey included houses, condos, townhouses and duplexes. 

In the third quarter, the metro areas occupancy rate for rental homes dropped to 2.9 percent from 4.6 percent for the same period of 2009, and from 3.8 percent in this year’s second period. Boulder and Broomfield counties reported the tightest vacancy rate at 1.4 percent.  The report covers the seven-county Denver area. The housing division combines Boulder and Broomfield county data.

Average monthly rent decreased to $1,041 in the third quarter, from roughly $1,060 year over year, but increased from $1,028 in the second quarter of 2010. Boulder and Broomfield counties had the highest average rent, at nearly $1,636 a month.  Median metro-area rent was $995 for the period. Median is considered by some real estate experts a more accurate measure than average because it’s not skewed by rate extremes.

Additional data from the third-quarter report includes:

• Vacancy rates by county: Adams, 3.4 percent; Arapahoe, 3.1 percent; Boulder/Broomfield, 1.4 percent; Denver, 3.2 percent; Douglas, 5.2 percent; and Jefferson, 1.8 percent.
• Average days on market: It took 36 days on average to lease a home in the period, down from 41 days in 2009s third quarter, and from 47.2 days in this year’s second period.
• Average rents by county: Adams, $1,121.34; Arapahoe, $1,015.71; Boulder/Broomfield, $1.635.90; Denver, $969.47; Douglas, $1,404.44; and Jefferson, $981.09.
• Average rental rate by square foot: 83 cents, down from 85 cents for the prior-year quarter, but up from 82 cents in this year’s second quarter.
• Median rent by county: Adams, $1,145; Arapahoe, $950; Boulder/Broomfield, $1,320; Denver, $900; Douglas, $1,375; and Jefferson, $895.

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It pays to have a college diploma and preferably more than one.  According to a December 2, 2010 article in the Denver Business Journal, the U.S. Census Bureau says a worker with an advanced degree will earn 31 percent more than a colleague with a bachelor’s degree, and 128 percent more than somebody who never went beyond high school.

That’s good news for the workforce in Boulder, the U.S. metropolitan area with the strongest brainpower, according to a new Portfolio.com analysis of the nations 200 largest markets.  The study’s objective was to identify markets that have the highest levels of collective brainpower, as indicated by their residents’ educational attainment.

Boulder is blessed with an economic mix that places a premium on education. It’s not only the home of the University of Colorado, but also a burgeoning hub for high-technology, electronics and aerospace companies.  The result is a broadly educated workforce. Five of every six adults in the Boulder area (82.5 percent) have attended college, the strongest concentration in the study group. And 26 percent of Boulders residents hold masters, doctoral or professional degrees, also the highest figure in the country.

Portfolio.com which, like the Denver Business Journal, is owned by American City Business Journals used U.S. Census Bureau data to analyze the levels of educational attainment in 200 metros, ranging in size from New York City to Burlington, Vt.  The study assigned point values to five rungs of an educational ladder, ranging from high-school dropouts to holders of advanced degrees. The score for a given market depended on the percentage of adult residents (25 or older) on each rung. The higher the score, the stronger a market’s collective brainpower.

Ann Arbor, Mich., and Washington, D.C., are the runners-up in the brainpower standings.  Ann Arbor, the site of the University of Michigan, is second to Boulder in the concentration of adults who attended college (77.4 percent) and the share who hold advanced degrees (25.5 percent).  The federal government, lobbying organizations and major law firms attract thousands of educated workers to Washington, where 47.3 percent of adults hold at least a bachelors degree. The only two markets to outrank it in that category are Boulder (57.9 percent) and Ann Arbor (49.5 percent). 

Rounding out the top five in the national brainpower rankings are the college centers of Durham, N.C., and Fort Collins. The Durham market includes Duke University and the University of North Carolina at Chapel Hill, while Fort Collins is home to Colorado State University.  Only California and Colorado had two metro areas in the top 10. Among other Colorado communities, Colorado Springs ranked No. 15 on the index, while Denver was No. 21 and Greeley came in at No. 136.

Portfolio.com followed Census Bureau guidelines in designing an educational ladder. The following are the five rungs, with average annual earnings for all workers, both full time and part time, at each level (as of 2007) in parentheses:

• Advanced degree ($61,287), including professional, doctoral or masters degree.
• Bachelors degree ($46,805).
• Associate degree or attended college without any degree ($32,874).
• High-school graduate ($26,894).
• High-school dropout ($19,405).

Scores for each rung were determined by comparing the 2007 median income for all workers ($33,452) with the corresponding figure for that level of educational attainment.

Each adult with an advanced degree, for example, was valued at 1.83 points, and each dropout was worth 0.58. Totals for all adults within a market were averaged and then converted to a final score. Above-average performances received positive scores, while below-average results were given negative scores.  Boulder sits atop the brainpower standings with a final score of 3.941, followed by Ann Arbor at 3.228 and Washington at 2.573.  At the opposite end of the rankings are several Texas and California markets where college graduates are outnumbered by high-school dropouts.  Last place belongs to Merced, Calif., with a score of minus-2.558. Thirty-four percent of Merced’s adult residents left high school without receiving diplomas. Only 11.3 percent hold at least a bachelors degree.  Also in the bottom five are McAllen-Edinburg and Brownsville, Texas, and Visalia and Bakersfield, Calif.

 The Portfolio.com study encompassed the 200 metropolitan areas with populations greater than 207,000. If the rankings are confined to markets with at least 1 million residents, the five areas with the strongest brainpower are Washington (third in the overall standings), San Jose (seventh), Boston (eighth), San Francisco-Oakland (10th) and Raleigh (12th).  The million-plus market with the lowest brainpower score is Riverside-San Bernardino, Calif. The major metros with the next-worst rankings are Las Vegas, Memphis, San Antonio and Tampa-St. Petersburg.

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The town of Morrison, Colorado is just 30 minutes from downtown Denver located entirely within Jefferson County.  Despite its proximity to the Denver metro area, Morrison’s location on the west side of the Hogback rock formation provides separation from their metropolitan neighbors and makes it really feel like a remote mountain town.  That’s why Morrison has been called ”The Nearest Faraway Place”. 

Most people know Morrison for its location at the base of Red Rocks Park and Amphitheatre or nearby Bandimere Speedway.  What many people don’t know, however, is that Morrison is home to several world-class restaurants and shops located along historic Bear Creek Avenue.  Morrison is also a fantastic starting point for exploring the numerous trails that run through the Jefferson County Open Space Parks surrounding the town.  Fans of natural history will find plenty to satisfy their curiosity in Morrison; with interesting geographic features and fantastic dinosaur finds displayed at the Morrison Natural History Museum and Dinosaur Ridge, there is no shortage of ways to explore our pre-historic past.

Morrison is a great place to visit and an even better place to live!  There are a wide range of real estate opportunities in Morrison ~ call us today!  We would love to help you find your perfect Morrison, Colorado home!

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