The Denver real estate market continues with mixed results depending on area and price range. August “under-contract” residential and condo sales declined from the previous August by 6.5% according to statistics released by Metrolist, the local MLS reporting agency.
However, resale homes available to sale on the market also declined in the same period by 2.64% suggesting less supply. And, sold prices actually increased by 1.88% in the same year over year period. Prices of sold homes increased even more in southeast Denver by 2.95%.
Some neighborhoods on the south side of Denver and in the south suburbs actually had no foreclosures. Neighborhoods north and east tended to sell for less, take longer to sell and have more foreclosures.
My firm, The Kentwood Company, sells mostly in the southeast neighborhood. Sales in the company are up 6% year over year through August, 2007
The foreclosure market appears to be expanding with no signs of relief. The combination of overextended sub-prime mortgage holders and an ominous economic slowdown indicate that this is a trend that is likely to continue for at least the next year. With all the negative news in the wind, should you venture into foreclosures now or wait for the bottom of the market to hit?
Many people think of foreclosure investors as being “bottom feeders” or parasites – taking advantage of the misfortunes of others. Others view them as being a necessary evil – or safety net that will help to adjust the market price and stabilize the real estate market. Whatever you think, someone must buy these properties. Just as “vultures” have their place in the natural ecosystem; so too foreclosure investors have a place in bringing some sanity and stability back into a real estate market that had become a feeding frenzy of over extended buyers driving ever higher prices in already over heated markets.
Banks and mortgage lenders are not really in the Real Estate investing business. In fact they are really in the lending business and they want to collect interest on loans and the fees they get for servicing and so forth. But, they must deal with the large number of defaulting loans. Unfortunately for banks, many are not permitted to keep these non-performing assets on their books. This creates opportunities for investors to buy the banks’ problem properties. But, buyer beware; do your homework and make sure that you understand you will be buying “As Is” unless you manage to get the bank to fix the property before you take it over. You may find properties for sale on the banks’ own Web sites: Bank of America, Countrywide and U. S. Bank each have some.