- “The U.S. economy is firmly poised for a recovery from its deep recession but growth may be moderate and the job market will not revive immediately, senior White House aide Lawrence Summers predicted on Wednesday.”
- “On the economy, Summers said the $787 billion stimulus package and inventory rebuilding by businesses were among the “dominant drivers” lifting the economy.”
- “It will be some time before unemployment starts to decline. Once it declines it will take a long time to return to normal levels, given how elevated it is…The jobless rate is now at a 26-year high of 9.8 percent.”
- “Most private economists think the recession, which began in December 2007, ended in the third quarter. But there is much disagreement about the path to recovery.”
- “Some see above-average growth continuing through next year, arguing that deep recessions are typically followed by powerful recoveries, helped along by pent-up demand as consumers and companies resume spending.”
Obviously this is welcome news for the economy which ultimately benefits the local housing market. What I can tell you is that I am encouraged by the progress we are making in the real estate market. We’re beginning to see more days of progress than days of back stepping. We’re watching sales activity and consumer sentiment and we are expecting over the coming months a moderate to a more sustainable pace and we will probably see a modest rise in housing prices in the coming year. Will it be the double digit appreciation we saw in the earlier part of the decade? Probably not. But this new normal (as we’re calling it) is much more sustainable and a much healthier path to build upon. It makes me excited about the future and gives us all hope for a relatively modest and productive 2010.
Now, let’s take a look at this week in real estate:
- Boulder/Longmont—The Boulder office reported Boulder county showed a small shift in the right direction over the past week. New listings were down by about 7% with sales up 9%, so we have inventory headed down again. Although most of this was in the lower price ranges, there was a small flurry of sales over $800,000 including one at $2,750,000! Our Agents report multiple offers on bank owned properties. Showings on our listings remain steady with a 1% increase over the past week.
- Evergreen/Conifer—Evergreen reported we had a total of four new listings for the week. Three listings went under contract during the past week, two of these were out of state buyers. Two buyers went under contract, both on short sale properties. There were a total of 64 showings during the week. Conifer reported we had only one new listing during the week. Four of our current listings were put under contract, two were REO properties and one was a short sale. None of our buyers were put under contract. The number of showings decreased to 22 for the week.
- Denver Central – No information reported.
- Devonshire— No information reported.
- Douglas County—Our Southwest Metro office reports showings increased a little this past week. We did have several successful open houses and three great floor calls. Our Agents are very busy working with buyers and the market continues to be picking up for sellers and buyers both. Inventory continues to be low especially in the $150,000 range. Most are first time buyers trying to take advantage of the tax credit and sellers are starting to realize that this is a good time to list their home. We're working hard to get our sellers to list their homes now and not wait until the beginning of the year.
- El Paso County—Colorado Springs reports although the showing activity has decreased by 15% over the last week, the number of properties under contract has tripled mainly because of the looming deadline for the first time buyer tax credit program. Therefore our listing inventory has decreased slightly as well. With the changing weather we expect the sales activity to slow down drastically, especially if the tax credit program is not going to be extended. The number of multiple offers on Power Priced listings has gone down drastically, which is an indication that most of the "great deals" are off the market.
- Larimer County— Showings are down significantly last week as well as under contract homes in Fort Collins/Loveland. This is most likely a seasonal decline and is to be expected. On the plus side, we had an increase of new inventory coming on to the market and several homes were subject to multiple offers. Multiple offer situations are a great sign for sellers, as this situation typically gets an above listing price contract. To create a multiple offer situation you need to have three primary things going for your listed property - price, condition and location. These three items make for a perfect storm that will entice buyers to compete for your home. Finally, don't forget, only 40 days until the 1st time home buyer tax credit runs out!
- North Metro— Even though it is October and the weather has been quite cold, we've not seen a slow down in activity. The Agents continue to list properties with an increase in average sales price of $267,000. The buyers wanting to take advantage of the tax credit are out looking, but properties under $250,000 are going quickly with multiple offers. It is a great time for seller's to get their homes on the market. With inventory low, their will be less competition for buyers.
- Parker –The seasonal changes are showing their signs in number of showings and transactions. The activity has slowed down some more over the last week however. Web traffic is very steady and the number of leads on our listings from the internet is increasing. Our affiliates (Title & Mortgage) are preparing for a peak of business during November because of the tax credit deadline on the 30th. Agents are preparing for our next Client Appreciation Event coming up on December 6th. Free Holiday Photo.
- Southeast Metro— The heat is on! First time home buyers who are looking to take advantage of the $8000 tax credit are storming the market! We're seeing an increase in the already fierce competition for all properties priced below $225,000. Last week we had one listing that had 105 showings in six days! That has to be some kind of record! And by the way, that same property received 45 offers! It's still a great time to buy, whether or not a buyer qualifies for the tax credit. Open houses are still enjoying lots of traffic in several price ranges.
- West Lakewood— No comments provided.
This week I’ll conclude with a few articles of interest:
- What Housing Bust?; CNN Money
- Housing Tax Credit Working, So Keep Momentum Going, NAR Urges Congress; Realtor.org
- Shape Of The Housing Recovery; CNBC
- Real Estate Outlook: Mixed Signals; Realty Times
Until next week,
Make it a great one,
Chris Mygatt
Coldwell Banker Residential Brokerage Colorado
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