by Lon Welsh, Aurora Broker
The average home price in Denver declined 3% between 2006 and 2007, from $312K to $303K. The first eleven months of 2008 versus the same period in 2007 declined an additional 13% to $269K. However, there is a lot of variation from one city to the next. The average price of a sold home in Golden is up 6% while Fort Lupton is down 18%.
So did the price of every house in metro Denver drop 12.6%? No! The average distress sales (foreclosure or short sale) dropped 6.7%. The average regular home sale declined 4%. The source of most of the decline is the mix of what has sold. Volume of distress sales is up 41% while regular home sales have declined 24% in unit volume. Since more inexpensive (e.g., foreclosure) homes are selling, this is the main driver of the price reduction.
The percentage of sales that were distress sales increased in every Denver suburb throughout the metro area in the last year. Overall, 44% of home sales were foreclosure or short sales so far in 2008. The ratio does vary quite a bit from one city to the next. Greenwood Village had only 11% while Commerce City had 75%.
Percentage of Home Sales that were Short Sales or Foreclosures
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Home Sales Volume
Home sales volume is off 4% in 2008. November was a particularly rough month for the Denver market.
Home Sales Price
The average home sales price is off 13% in 2008. November was no exception.
Percent of Distress Home Sales
By Month, By Year. Distress = Short Sale or Foreclosure.