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Denver Market has bottomed!

Denver housing market bottom

A few months ago I wrote what I have been telling people for the last six to eight months, that I think most of the Denver metro area housing market reached a low point in pricing a early this year.  During the last few days there has been a lot of developments that have made that guestimate look a lot better.
    Reasons why Denver housing has bottomed
  • Wells Fargo no longer considers Denver a 'Declining market'.
  • Mortage rates have come down to about 5.5% for 30 yr fixed...
  • Because the Fed has taken over Freddie and Fannie.
  • The bigger banks are opening up 'compiler' departments to make bulk sales.
  • We're seeing some big shake out's on Wall Street.

Wells Fargo's decision means that people no longer will have to put an extra 5% down payment on a home to purchase, this should help those with good credit but not a lot of money for a down payment.  Lower mortgage rates are always good for housing.  The Fed takeover of Fannie Mae and Freddie Mac is what precipitated the lower rates by reducing the risk spread. 

The 'compilers' and the big banks is a topic that goes beyond a simple blog entry.

And finally the failure of Lehman, sale of Merrill Lynch, and AIG's troubles, and most importantly the Fed's decision NOT to bail them out (publicly at least) is necessary to let the private market work out the toxic CDS's and other mortgage derivatives in a quick manner.

We are in the 6th or 7th inning now of a nine inning game overall.  How fast the next few chapters are written I don't know, but the Denver housing market HAS bottomed!
Posted Tuesday Sep 16