South Metro Denver Economic Snapshot - October '10

Economic Snapshot

Over the course of the past eighteen months, the Federal Government implemented the Homeowner Tax Credit Program.  The Federal Reserve lowered the Federal Funds Rate for member banks to borrow funds to nearly zero percent.  Home mortgage interest rates have fallen to the lowest level in more than fifty years.  Now, members of the banking industry are taking a sabbatical by not foreclosing on homes.  All of these factors were/are designed to stabilize and stimulate the housing industry.  Despite all these efforts, the housing market continues to quietly drift along. 

There have been spurts of activity.  The South Metro Denver real estate market was UP in sales activity at the end of June/2010 as compared to the end of June/2009 for attached units (+16%) and UP for single family homes (+8%).  But those numbers have dropped since the Homeowner Tax Credit Program ended in late April/2010.  Through September/2010, single family home sales are down about 5% Y.T.D. compared to Y.T.D. 2009; and down around 4% for attached units.  Thus, the South Metro Denver real estate market hasn’t sustained itself.

One of the best indicators of real estate market activity is the time it takes for the market to absorb itself.  A healthy real estate market is thought to be around six months of available inventory.  That time frame provides buyers with an adequate selection of homes and sellers with a reasonable amount of time to sell.  The current “absorption rate” for the South Metro Denver real estate market stands at approximately 200 days.  The absorption rate in September/2009 was at 161 days.  As we enter the fall and winter, the absorption rate should remain around the same level as both inventory levels and sales dwindle. 

The question now becomes, “What’s next?”  What magic elixir can the Federal Government and banking community pull from their proverbial hat?  The answer isn’t putting more lipstick on the pig, because you still have a pig.  The answer always comes back to one four-letter word; the word that drives the economy and fosters the housing industry.  That word is “jobs”.  Jobs are the Holy Grail; the path to redemption; the pot of gold at the end of the rainbow.  Without them, you have a stagnant economy, which naturally leads to a declining housing market.

Click here for a brief overview of the absorption rates for single family homes and attached units for the South Metro Denver area through September/2010.  Thanks to MetroList, the Denver metro MLS, for all their magic numbers.

Click here for a downloadable PDF.

Jefferson County Economic Snapshot - October '10

Economic Snapshot

Over the course of the past eighteen months, the Federal Government implemented the Homeowner Tax Credit Program.  The Federal Reserve lowered the Federal Funds Rate for member banks to borrow funds to nearly zero percent.  Home mortgage interest rates have fallen to the lowest level in more than fifty years.  Now, members of the banking industry are taking a sabbatical by not foreclosing on homes.  All of these factors were/are designed to stabilize and stimulate the housing industry.  Despite all these efforts, the housing market continues to quietly drift along. 

There have been spurts of activity.  The Jefferson County real estate market was UP in sales activity at the end of June/2010 as compared to the end of June/2009 for attached units (+26%) and UP for single family homes (+17%).  But those numbers have dropped since the Homeowner Tax Credit Program ended in late April/2010.  Through September/2010, single family home sales are UP 4% Y.T.D. compared to Y.T.D. 2009; and are UP 3% for attached units.  Thus, the Jefferson County real estate market hasn’t sustained itself.

One of the best indicators of real estate market activity is the time it takes for the market to absorb itself.  A healthy real estate market is thought to be around six months of available inventory.  That time frame provides buyers with an adequate selection of homes and sellers with a reasonable amount of time to sell.  The current “absorption rate” for the Jefferson County real estate market stands at approximately 181 days.  The absorption rate in September/2009 was at 162 days.  As we enter the fall and winter, the absorption rate should remain around the same level as both inventory levels and sales dwindle. 

The question now becomes, “What’s next?”  What magic elixir can the Federal Government and banking community pull from their proverbial hat?  The answer isn’t putting more lipstick on the pig, because you still have a pig.  The answer always comes back to one four-letter word; the word that drives the economy and fosters the housing industry.  That word is “jobs”.  Jobs are the Holy Grail; the path to redemption; the pot of gold at the end of the rainbow.  Without them, you have a stagnant economy, which naturally leads to a declining housing market.

Click here for a brief overview of the absorption rates for single family homes and attached units for the Jefferson County area through September/2010.  Thanks to MetroList, the Denver metro MLS, for all their magic numbers.

Click here for a downloadable PDF.

Metro Denver Economic Snapshot - October '10

Economic Snapshot

Over the course of the past eighteen months, the Federal Government implemented the Homeowner Tax Credit Program.  The Federal Reserve lowered the Federal Funds Rate for member banks to borrow funds to nearly zero percent.  Home mortgage interest rates have fallen to the lowest level in more than fifty years.  Now, members of the banking industry are taking a sabbatical by not foreclosing on homes.  All of these factors were/are designed to stabilize and stimulate the housing industry.  Despite all these efforts, the housing market continues to quietly drift along. 

There have been spurts of activity.  The Metro Denver real estate market was UP in sales activity at the end of June/2010 as compared to the end of June/2009 for attached units (+16%) and UP for single family homes (+8%).  But those numbers have dropped since the Homeowner Tax Credit Program ended in late April/2010.  Through September/2010, single family home sales are down about 5% Y.T.D. compared to Y.T.D. 2009; and down around 4% for attached units.  Thus, the Metro Denver real estate market hasn’t sustained itself.

One of the best indicators of real estate market activity is the time it takes for the market to absorb itself.  A healthy real estate market is thought to be around six months of available inventory.  That time frame provides buyers with an adequate selection of homes and sellers with a reasonable amount of time to sell.  The current “absorption rate” for the Metro Denver real estate market stands at approximately 198 days.  The absorption rate in September/2009 was at 154 days.  As we enter the fall and winter, the absorption rate should be around the same level as inventory levels and sales dwindle. 

The question now becomes, “What’s next?”  What magic elixir can the Federal Government and banking community pull from their proverbial hat?  The answer isn’t putting more lipstick on the pig, because you still have a pig.  The answer always comes back to one four-letter word; the word that drives the economy and fosters the housing industry.  That word is “jobs”.  Jobs are the Holy Grail; the path to redemption; the pot of gold at the end of the rainbow.  Without them, you have a stagnant economy, which naturally leads to a declining housing market.

Click here for a brief overview of the absorption rates for single family homes and attached units for the Metro Denver area through September/2010.  Thanks to MetroList, the Denver metro MLS, for all their magic numbers.

Click here for a downloadable PDF.

Aurora Economic Snapshot - October '10

Economic Snapshot

Over the course of the past eighteen months, the Federal Government implemented the Homeowner Tax Credit Program.  The Federal Reserve lowered the Federal Funds Rate for member banks to borrow funds to nearly zero percent.  Home mortgage interest rates have fallen to the lowest level in more than fifty years.  Now, members of the banking industry are taking a sabbatical by not foreclosing on homes.  All of these factors were/are designed to stabilize and stimulate the housing industry.  Despite all these efforts, the housing market continues to quietly drift along. 

There have been spurts of activity.  The Aurora real estate market was UP in sales activity at the end of June/2010 as compared to the end of June/2009 for attached units (+19%) and slightly off for single family homes (-5%).  But those numbers have dropped since the Homeowner Tax Credit Program ended in late April/2010.  Through September/2010, single family home sales are down 15% Y.T.D. compared to Y.T.D. 2009; and are UP 4% for attached units.  Thus, the Aurora real estate market hasn’t sustained itself.

One of the best indicators of real estate market activity is the time it takes for the market to absorb itself.  A healthy real estate market is thought to be around six months of available inventory.  That time frame provides buyers with an adequate selection of homes and sellers with a reasonable amount of time to sell.  The current “absorption rate” for the Aurora real estate market stands at approximately150 days.  The absorption rate in September/2009 was at 88 days.  As we enter the fall and winter, the absorption rate should remain around the same level as both inventory levels and sales dwindle. 

The question now becomes, “What’s next?”  What magic elixir can the Federal Government and banking community pull from their proverbial hat?  The answer isn’t putting more lipstick on the pig, because you still have a pig.  The answer always comes back to one four-letter word; the word that drives the economy and fosters the housing industry.  That word is “jobs”.  Jobs are the Holy Grail; the path to redemption; the pot of gold at the end of the rainbow.  Without them, you have a stagnant economy, which naturally leads to a declining housing market.

Click here for a brief overview of the absorption rates for single family homes and attached units for the Aurora area through September/2010.  Thanks to MetroList, the Denver metro MLS, for all their magic numbers.

Click here for a downloadable PDF.

Douglas County Economic Snapshot - October '10

Economic Snapshot

Over the course of the past eighteen months, the Federal Government implemented the Homeowner Tax Credit Program.  The Federal Reserve lowered the Federal Funds Rate for member banks to borrow funds to nearly zero percent.  Home mortgage interest rates have fallen to the lowest level in more than fifty years.  Now, members of the banking industry are taking a sabbatical by not foreclosing on homes.  All of these factors were/are designed to stabilize and stimulate the housing industry.  Despite all these efforts, the housing market continues to quietly drift along. 

There have been spurts of activity.  The Douglas County real estate market was UP in sales activity at the end of June/2010 as compared to the end of June/2009 for attached units (+2%) and UP for single family homes (+19%).  But those numbers have dropped since the Homeowner Tax Credit Program ended in late April/2010.  Through September/2010, single family home sales are UP just under 1% Y.T.D. compared to Y.T.D. 2009; and are down 8% for attached units.  Thus, the Douglas County real estate market hasn’t sustained itself.

One of the best indicators of real estate market activity is the time it takes for the market to absorb itself.  A healthy real estate market is thought to be around six months of available inventory.  That time frame provides buyers with an adequate selection of homes and sellers with a reasonable amount of time to sell.  The current “absorption rate” for the Douglas County real estate market stands at approximately 238 days.  The absorption rate in September/2009 was at 231 days.  As we enter the fall and winter, the absorption rate should remain around the same level as both inventory levels and sales dwindle. 

The question now becomes, “What’s next?”  What magic elixir can the Federal Government and banking community pull from their proverbial hat?  The answer isn’t putting more lipstick on the pig, because you still have a pig.  The answer always comes back to one four-letter word; the word that drives the economy and fosters the housing industry.  That word is “jobs”.  Jobs are the Holy Grail; the path to redemption; the pot of gold at the end of the rainbow.  Without them, you have a stagnant economy, which naturally leads to a declining housing market.

Click here for a brief overview of the absorption rates for single family homes and attached units for the Douglas County area through September/2010.  Thanks to MetroList, the Denver metro MLS, for all their magic numbers.

Click here for a downloadable PDF.

Evergreen Economic Snapshot - October '10

Economic Snapshot

Over the course of the past eighteen months, the Federal Government implemented the Homeowner Tax Credit Program.  The Federal Reserve lowered the Federal Funds Rate for member banks to borrow funds to nearly zero percent.  Home mortgage interest rates have fallen to the lowest level in more than fifty years.  Now, members of the banking industry are taking a sabbatical by not foreclosing on homes.  All of these factors were/are designed to stabilize and stimulate the housing industry.  Despite all these efforts, the housing market continues to quietly drift along. 

There have been spurts of activity.  The Evergreen real estate market was UP in sales activity at the end of June/2010 as compared to the end of June/2009 for single family homes (+20%).  But that number has dropped since the Homeowner Tax Credit Program ended in late April/2010.  Through September/2010, single family home sales are UP about 9% Y.T.D. compared to Y.T.D. 2009 (448 vs. 411).  Thus, the Evergreen real estate market hasn’t sustained itself.  The average sales value of a single family home in the Evergreen real estate market is down about 5% through September/2010 as compared to September/2009 ($392,306 vs. $413,220).

One of the best indicators of real estate market activity is the time it takes for the market to absorb itself.  A healthy real estate market is thought to be around six months of available inventory.  That time frame provides buyers with an adequate selection of homes and sellers with a reasonable amount of time to sell.  The current “absorption rate” for the Evergreen real estate market stands at approximately 451 days.  The absorption rate in September/2009 was at 439 days.  As we enter the fall and winter, the absorption rate should remain around the same level as both inventory levels and sales dwindle. 

The question now becomes, “What’s next?”  What magic elixir can the Federal Government and banking community pull from their proverbial hat?  The answer isn’t putting more lipstick on the pig, because you still have a pig.  The answer always comes back to one four-letter word; the word that drives the economy and fosters the housing industry.  That word is “jobs”.  Jobs are the Holy Grail; the path to redemption; the pot of gold at the end of the rainbow.  Without them, you have a stagnant economy, which naturally leads to a declining housing market.

Click here for a brief overview of the absorption rates for single family homes for the Evergreen area through September/2010.  Thanks to MetroList, the Denver metro MLS, for all their magic numbers.

Click here for a downloadable PDF.

Broomfield/Westminster Economic Snapshot - October '10

Economic Snapshot

Over the course of the past eighteen months, the Federal Government implemented the Homeowner Tax Credit Program.  The Federal Reserve lowered the Federal Funds Rate for member banks to borrow funds to nearly zero percent.  Home mortgage interest rates have fallen to the lowest level in more than fifty years.  Now, members of the banking industry are taking a sabbatical by not foreclosing on homes.  All of these factors were/are designed to stabilize and stimulate the housing industry.  Despite all these efforts, the housing market continues to quietly drift along. 

There have been spurts of activity.  The Broomfield/Westminster real estate market was UP in sales activity at the end of June/2010 as compared to the end of June/2009 for single family homes (+4%), but down for attached units (-7%).  But those numbers have adjusted since the Homeowner Tax Credit Program ended in late April/2010.  Through September/2010, single family home sales are down 12% Y.T.D. compared to Y.T.D. 2009; and are comparable for attached units.  Thus, the Broomfield/Westminster real estate market hasn’t sustained itself in relation to single family home sales.

One of the best indicators of real estate market activity is the time it takes for the market to absorb itself.  A healthy real estate market is thought to be around six months of available inventory.  That time frame provides buyers with an adequate selection of homes and sellers with a reasonable amount of time to sell.  The “absorption rate” for the Broomfield/Westminster real estate market has been relatively stable for most of 2010.  Through September/2010, the absorption rate stands at 166 days for single family homes and 204 days for attached units.  This compares to 114 days for single family homes and 165 days for attached units through September/2009.  As we enter the fall and winter, the absorption rate should remain around the same level as both inventory levels and sales dwindle. 

The question now becomes, “What’s next?”  What magic elixir can the Federal Government and banking community pull out of their proverbial hat?  The answer isn’t putting more lipstick on the pig, because you still have a pig.  The answer always comes back to one four-letter word; the word that drives the economy and fosters the housing industry.  That word is “jobs”.  Jobs are the Holy Grail; the path to redemption; the pot of gold at the end of the rainbow.  Without them, you have a stagnant economy, which naturally leads to a declining housing market.

Click here for a brief overview of the absorption rates for single family homes and attached units in the Broomfield/Westminster areas through September/2010.  Thanks to MetroList, the metro Denver MLS, for all their magic numbers.

Click here for a downloadable PDF.

Boulder Valley Economic Snapshot - October '10

Economic Snapshot

Over the course of the past eighteen months, the Federal Government implemented the Homeowner Tax Credit Program.  The Federal Reserve lowered the Federal Funds Rate for member banks to borrow funds to nearly zero percent.  Home mortgage interest rates have fallen to the lowest level in more than fifty years.  Now, members of the banking industry are taking a sabbatical by not foreclosing on homes.  All of these factors were/are designed to stabilize and stimulate the housing industry.  Despite all these efforts, the housing market continues to quietly drift along. 

There have been spurts of activity.  The Boulder Valley real estate market was UP in sales activity at the end of June/2010 as compared to the end of June/2009 for both single family homes (+36%) and attached units (+34.5%).  But those numbers have dropped since the Homeowner Tax Credit Program ended in late April/2010.  Through September/2010, single family home sales are UP 13.5% Y.T.D. compared to Y.T.D. 2009; and are comparable for attached units.  Thus, the Boulder Valley real estate market hasn’t sustained itself.

One of the best indicators of real estate market activity is the time it takes for the market to absorb itself.  A healthy real estate market is thought to be around six months of available inventory.  That time frame provides buyers with an adequate selection of homes and sellers with a reasonable amount of time to sell.  The “absorption rate” for the Boulder Valley real estate market has vacillated between nine and ten months for most of 2010.  Through September/2010, the absorption rate stands at 270 days; nearly nine months.  As we enter the fall and winter, the absorption rate should remain around the same level as both inventory levels and sales dwindle. 

The question now becomes, “What’s next?”  What magic elixir can the Federal Government and banking community pull out of their proverbial hat?  The answer isn’t putting more lipstick on the pig, because you still have a pig.  The answer always comes back to one four-letter word; the word that drives the economy and fosters the housing industry.  That word is “jobs”.  Jobs are the Holy Grail; the path to redemption; the pot of gold at the end of the rainbow.  Without them, you have a stagnant economy, which naturally leads to a declining housing market.

Click here for a brief overview of the absorption rates for single family homes in a number of the Boulder Valley areas through September/2010.  Thanks to IRES, the Northern Colorado MLS, for all their magic numbers.

Click here for a downloadable PDF.