Jefferson County Economic Snapshot - September '11

As summer dwindles away and fall emerges, the local real estate market has a tendency to slow as home buyer and seller thoughts shift from making a move to school functions, football, etc. But now may be the perfect time to buy a home for a variety of reasons.

Home mortgage interest rates are at historical lows. At this writing, a traditional thirty-year fixed rate mortgage is vacillating around 4% with no origination fee or discount points. Want to go lower? The 5/1 Adjustable Rate Mortgage (where the first five years are fixed) is at 2.875% with no origination fee or discount points; 2.375% with a 1% origination fee.

Home values have stabilized in most price ranges and geographic areas. As noted below, the average year-to-date single family home sold value is down slightly compared to 2010. Total single family home sales through August/2011 for the market areas noted below is 1,803. This compares to 1,783 single family home sales through August/2010; an increase of 1.12%. The market has trended-up over the course of the past ninety days when compared to the same time frame in 2010; expect single family home sales in 2011 to continue to outpace single family home sales in 2010 for the Jefferson County real estate market.

Despite the inventory level of available properties continuing to decline, which is characteristic of this time of year; stabilizing home values; and exceptionally low mortgage interest rates; sellers are still motivated to sell. Many sellers are willing to provide buyers with financing assistance; helping to cover closing costs. Price negotiation in the upper price ranges is more evident as there are fewer buyers in the market for those homes.

There are opportunities to be had in the current real estate market. If you are a buyer considering a move-up or move-down, this may be the perfect occasion to get proactive in the market. If you are a seller, pricing your home competitively is still a priority.

Below is a brief overview of average single family home and attached unit values for the Jefferson County area for the past two years. (Information is from MetroList, the Denver Metro MLS.) Click to enlarge.