Denver, in Colorado, offers the luxury and facilities of a large city. The comfort of living in Denver also adds to itself, a quaint charm, which is generally unheard of in big cities. However, this is a vital ingredient which makes living in Denver a beautiful experience. Amongst many other things, Denver is also known for some of the most elegant and classic homes in the region. Recently, Denver has been enmeshed in the real estate quagmire, which saw real estate graph sharply rise and fall due to alarming market fluctuations. Denver has been facing rapid boom and bust in the real estate market.
For the past 3 years, Denver is going through the real estate doldrums and home owners are finding it difficult to live through it. Though positioned better than Las Vegas; Riverside, California; Miami; and Washington where the real estate scenario of are still facing a steep escalation -by more than 20 percent a year, Denver's homeowners are not too far behind. According to an analysis by Economy.com, a research firm, the price for median houses at Denver was rising at an annual rate of almost 17 percent even 5 years ago. However, by early 2005, this had shot down to 3 percent, sending waves of relief to buyers. However, Denver homeowners are still gaining in the real estate business as the market is facing an upward trend and stock prices are high.
Though sellers are making profit still as the market is slowing witnessing a recession from the earlier period, an alarming observation has been the fact that, houses on offer for sale are remaining for a longer period in the market giving the buyer an opportunity to negotiate harder. This is sometimes creating desperate situations for sellers and a position where prospective buyers are hopeful of rapid appreciation thereby increasing their bank balance. Denver real estate scenario is at the verge of facing a receding market trend and economists warn that property prices cannot continue to rise as sharply as they did in the last few years. Home owners are already facing the heat of this forecast and have to maintain a low profile with their properties. According to New York Times, Denver's circumstances are peculiar to a particular zone, driven largely by job losses in the telecom sector. This shows exactly how a moderate slowdown has a cascading effect on the rest of the country as well and homeowners are suffering throughout. The Denver real estate dealers are rightly reminded that steadily increasing price day after day cannot be the usual norm. Some experts remain optimistic about the real estate market of Denver and say that the market would be rising again though not sky rocketing or hiked through artificial inflation.
On a more negative note, analysts believe that the whole of the real estate market is about to suffer because of the fluctuations in prices in the Denver region.
Analysts are of opinion that there will be dramatic price decreases in the real estate market as initially prices were artificially inflated by trading and speculation.
It has been studied that Denver's real estate boom, though escalated, but never was able to touch Las Vegas's, where home prices increased by a whopping 33 percent in the beginning of 2005. This hike in house price started in the late "90"s and continued till late 2001, when homeowners in Denver enjoyed huge appreciation of their properties. This happened as a result of a sudden boom in the telecom sector, which generated more jobs in the region consequently giving rise more home buyers.
Denver soon began showing the signs of a mature to declining market trends in the real estate sector, where the city lost almost 6 percent of its job base, starting late year 2000, and this recession continued till the end of year 2003. (Source: Economy.com) As a result, home prices escalation stopped abruptly and began declining soon after. Houses remained stuck in the market, forcing sellers to reduce prices of their properties.
The misfortune of house owners keeps going as they are stuck with their properties in the market. According to a recent report, "the number of unsold homes on the Denver-area market hit a record 29,045 in April 2006" increasing the inventory by 19.2% in the last year. (Source: Rocky Mountain News.com). The unfortunate recession this year is leading to an alarming phenomenon, whereby houses on sale are forcefully staying in the inventory for increasing number of days.
On the other side, the sale of commercial real estate was affected too due to the sudden boom last year and the consequent recession in 2006. According to the "Metro Denver", the sudden boom in the real estate market saw a record $3.1 billion spending on commercial real estate in 2005, a phenomenal a 55% increase over 2004 sales.
With this background in mind, we move on to see some really good real estate sites on the internet which would give insightful information to those who are seeking a house change in Denver.
http://realestate.post-newsclassified.com/, is a portal on real estates, which give you all the relevant information on buying, selling or renting real estates in Denver. The site lets you find a realtor near your home. The site offers the latest real estate news in Denver and its outskirts and also gives an overview of the real estate market place. This site also lets you choose your desirable property at the right price. There are a number of real estate sites which offer comprehensive report on the property availability in this region. For that the internet is the best repository.
Denver is seen to be coming out of this market fluctuation soon and the situation will stabilize, where inventories would be cleared, houses would be sold at rational prices - not too high or too low.