State of the housing market
The Genesis Group says the Denver housing market is getting worse despite a respectable economy, according to its Mid-Year 2007 Metropolitan Denver Housing Overview:
New homes: Sales are down by a third, one of five contracts are canceled, and visits to new subdivisions are the weakest since 1994.
Permits: Down 29 percent in fthe first half of 2007.
Foreclosures: Up 40 percent in the first half and expected to keep rising; about seven of 10 loans going into foreclosure are valued below $200,000.
Existing homes: Sales are down 2.9 percent in the first half, and prices are flat; volumes are falling most in the $125,000-$200,000 range.
Lot supply: It would take the market 40 months of new- home sales to absorb the current supply of detached-home lots available; that is up from 27 months last year.
Apartments: Vacancy rates are down to 6.2 percent, as former homeowners return to renting.
