Denver Market Update - Price Declines Don't Affect All Homes the Same Way

Price declines don't affect all homes the same way. When we compare the average sales price of a Denver home from January to May 2009 and compare that to the same period in 2008, we find that the average Denver home price dropped about 8%. (It has since improved to a 6% year-to-date decline). Are all homes impacted in the same way? No, it depends a lot on the size and location of the home.

The smaller 10% of the homes that sold (those under 910 square feet) experienced only a 2% drop. The larger 10% (those over 2875 square feet) experienced a 17% drop. The home size segments in the middle generally matched the overall average price drop.

What does this mean for you?

• If you have a smaller home, it appears that prices are about at the bottom. In many neighborhoods, prices have already began to rise. If you want to trade up to a larger home, now is a great time to do so!

• If you have a mid-size home, and want to trade up to a larger home, this is also a great time to do so. You may not get as much for your current home as you'd like, but you'll find that the larger homes have never been more affordable.

• If you have a larger home, and need to sell, perhaps your best move will be to price it right and move now in case prices drop slightly further.

• If you've been thinking about buying an investment property, now is the time to make that purchase. Don't wait any longer. Prices on good rental properties are firming up and won't be any more affordable than they are now and you risk interest rates going up in the coming months.

We are always happy to discuss the Denver real estate market, your options and answer any question that you may have!