A year-end report on home values in the metro area shows that foreclosures and short sales are still affecting the metro Denver housing market, especially in neighborhoods where homes are priced at less than $200,000.
The data, compiled by Lon Welsh, managing broker of Your Castle Real Estate, is available in an interactive map at . The average price of a single-family home in the metro area dropped 2 percent from 2006 to $311,000, according to the data.
“The foreclosure properties that are dragging down prices had adjustable-rate resets about nine months ago,” Welsh said. “If you take a look at the volume of ARMs (adjustable-rate mortgages) scheduled to reset, it peaks in March and April. We’ll probably see the peak of foreclosures from October through December.”
For investors, the slump is a once-in-a-generation opportunity, Welsh said. “Now we have low interest rates, you can get properties to cash flow because they’re easy to rent, and there’s tons of upside on the appreciation.”
Though Welsh says the market has not yet hit bottom, others predict the local market will start to recover this year. Lawrence Yun, economist for the National Association of Realtors, said last week that the housing forecast for Denver looks good. Job growth and an educated workforce will provide solid demand for homes, he said.
