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        <title>Denver Real Estate Blog</title>
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        <description>Denver real estate topics including local metro Denver community news and events.</description>
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            <guid>http://www.bruceswedal.com/blog/the-state-of-the-denver-real-estate-market-october-2009.html</guid>
            <link>http://www.bruceswedal.com/blog/the-state-of-the-denver-real-estate-market-october-2009.html</link>
            <author>bruce@bruceswedal.com (Bruce Swedal)</author>
            <title>The State of the Denver Real Estate Market – October 2009</title>
            <description> <![CDATA[ 
Maybe you have not realized it just yet, but changes are upon us in the local metro Denver real estate market.&nbsp; October, 2009 has set some records in home sales, which on a broader scale indicates a shift in the market to one of recovery and strength.&nbsp; 

During October there were 4,910 home that were placed under contract while the previous record for an October was in 2005 with 4,839 homes.&nbsp; The majority of these sales have been under the $400,000 mark and driven by first time home-buyers.

What caused the crazy market?&nbsp; Well pent up demand from the previous year to start and the $8,000 tax credit to first time home-buyers also helped to push it along.&nbsp; The fact that the tax credit program has been extended and expanded to also include some existing home-owners just indicates that this trend is going to continue into 2010 and open up the higher end markets with existing home-owners taking advantage to move up.

It is said that real estate has a leveraged effect on improving the economy due to every dollar spent on real estate generates another four dollars in the service industries.&nbsp; Think about it because when a family buys a home they also need furniture, garage door openers, landscapers and the list goes on.



&nbsp;Year 

Under Contract&nbsp;

&nbsp;Number of Closings

&nbsp;1990

&nbsp;2069

&nbsp;2294

&nbsp;1991

&nbsp;2520

&nbsp;2364

&nbsp;1992

&nbsp;3215

&nbsp;3054

&nbsp;1993

&nbsp;3093

&nbsp;3348

&nbsp;1994

&nbsp;2439

&nbsp;3279

&nbsp;1995

&nbsp;2300

&nbsp;3186

&nbsp;1996

&nbsp;2842

&nbsp;3197

&nbsp;1997

&nbsp;2961

&nbsp;3578

&nbsp;1998

&nbsp;3528

&nbsp;3795

&nbsp;1999

&nbsp;2830

&nbsp;3824

&nbsp;2000

&nbsp;2821

&nbsp;4499

&nbsp;2001

&nbsp;2076

&nbsp;3882

&nbsp;2002

&nbsp;2306

&nbsp;3931

&nbsp;2003

&nbsp;2285

&nbsp;4292

&nbsp;2004

&nbsp;2731

&nbsp;4443

&nbsp;2005

&nbsp;4839

&nbsp;4174

&nbsp;2006

&nbsp;4715

&nbsp;4133

&nbsp;2007

&nbsp;4645

&nbsp;3848

&nbsp;2008

&nbsp;4504

&nbsp;4282

&nbsp;2009

&nbsp;4910

&nbsp;3958



Another factor to keep in mind during our discussion is that the population base in metro Denver from 1990 through 2007 has increased by 49% while the number of housing units failed to keep pace by only increasing 40%.

These factors have caused a depletion of the inventory in the metro Denver area.&nbsp; The existing home inventory represents the lowest number of homes on the market since October, 2001.&nbsp; That low inventory level and a high buyer demand has also created the highest sales rate since October, 2001 with 5.99% of the inventory of homes being placed on the market each week.&nbsp; That represents a 185% increase over the sales rate in October, 2003.


&nbsp;Year 

Sales Rate %&nbsp;

&nbsp;2001

2.48%

&nbsp;2002

2.24%

&nbsp;2003

2.10%

&nbsp;2004

2.42%

&nbsp;2005

4.26%

&nbsp;2006


3.66%


&nbsp;2007

3.71%&nbsp;

&nbsp;2008

4.50%

&nbsp;2009

5.99%&nbsp;


The number of unsold Denver homes on the market in October, 2009 was 18,945 which represented the lowest level of inventory since at least 2001.



&nbsp;Year 

&nbsp;Unsold Homes #

&nbsp;2001

&nbsp;19,319

&nbsp;2002

&nbsp;23,769

&nbsp;2003

&nbsp;25,181

&nbsp;2004

&nbsp;26,030

&nbsp;2005

&nbsp;26,828

&nbsp;2006

&nbsp;29,722

&nbsp;2007

&nbsp;28,928

&nbsp;2008

&nbsp;23,120

&nbsp;2009

&nbsp;18,945



The meaning behind the numbers is clear and can be seen from clients looking to purchase homes.&nbsp; In many Denver metro areas homes are receiving multiple offers after only days on the market creating competition during the purchase. 
 ]]> </description>
            <pubDate>Mon, 09 Nov 2009 00:06:06 -0700</pubDate>
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