Denver Price Stability Great News for Homeowners and Investors

In the recent housing economy, only real estate dreamers anticipate that housing values in Denver will be what they once were anytime soon but a recent report has issued the 2009 version of the dream: Housing prices are likely to remain stable over the next two years. A recent report issued by PMI Mortgage Insurance Co. indicates that area prices have a less than 2% chance of declining within that time. There is other hopeful news in the report too.

The firm also quoted U.S. Market Risk figures that ranked Denver as the 10^th least risky of the 50 largest metropolitan areas in the country; analysts from PMI maintain that there is little spread between the top 10 markets. Denver home values are down 3% from a year ago, but the average drop for the top metropolitan areas is 11%. Other analysts who produce the S&P/Case-Shiller report, put Denver prices down 5.2%, but claim that the average drop for other cities is 18%.

Based on income, housing prices, and mortgage rates, PMI rated Denver homes as 15% more affordable than in 1995 when the company started to measure affordability. Denver ranks far ahead of markets in California or Florida or other popular destinations like Phoenix or Las Vegas.

This stability in Denver real estate is expected to lead to better days for the Denver real estate market. Sellers can now rest somewhat easily that property values will not face drastic declines, while potential buyers can buy with the assurance that they wouldn't have gotten a better deal if they waited six months to buy.

In the wake of the PMI report, real estate investors have been eying the Denver market with renewed interest. Genesis Group analyst Mike Rinner compared the real estate climate to the late 1980s. At that time, confidence in the real estate market was weakened by years of overbuilding, job loss in the energy industry when prices fell, and the passage of unfavorable real estate tax laws. When smart investors sensed that things could virtually get no worse, they started investing again. He expects a similar phenomena to occur now.

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Marianne Bandy

Information for Denver Colorado Home Buyers