Jefferson County Economic Snapshot - April '12

With the arrival of spring, there appears to be a ray of sunshine for the Jefferson County real estate market. Attractive mortgage interest rates and a lack of available inventory have fueled buyer interest. Multiple offers and some homes selling for more than the list value have once again surfaced.

For the Jefferson County real estate market, through March/2012 single family homes sales are UP approximately 21% year-to-date versus 2011; attached unit sales are UP approximately 18% year-to-date versus 2011; and the overall market is UP approximately 20% year-to-date versus 2011. Active listings in Jefferson County are down noticeably, with 39% fewer single family homes on the market now (648) as compared to April/2011 (1056). When the local real estate market peaked in 2005 there were 1243 homes available in April.
Below are sold numbers for single-family homes and attached units for the Jefferson County real estate market. Information is courtesy of MetroList (the Denver Metro MLS).

Despite the ray of sunlight on the horizon, the real estate market isn’t out of the woods quite yet. Here are some elements from RISMedia that may impact real estate in 2012.

• The Election: This is an election year and election years have a tendency to create havoc in the financial markets.
• The Job Market: The overall employment picture is improving, but the pace and direction it takes is critical to the housing market.
• The Weather: Did the calm winter rob sales from the spring and summer and frontload stats for 2012?
• The Banks: Credit standards have strangled many would-be homebuyers. If and how much the criteria loosens this year will have a direct impact on housing.
• The Investors: Many feel investors will play a big role this year. Their impact on decreasing excess inventory could provide an unanticipated boost to home values.
• The Renters: A big benefactor of the housing decline, the rental market has been booming. However, recent stats show that rising rents combined with low home prices has now made owning a home more affordable than renting one.