YES, the slowdown in our market has slowed down, and properties are beginning to move again.

The real estate market is affected by supply and demand just like any other market. The supply is the inventory of other homes on the market. When the supply is too high, prices come down. We have been in a buyer’s market for some time, i.e. there are more homes on the market than there are ready buyers. However the number of unsold homes in the Denver area dropped by 20% in August from a year earlier, the largest percentage drop in five years. While we are still over-stocked, that is evidence that we are trending toward a better market for sellers.

Interest rates recently dropped again. When interest rates are lower, there are more buyers in the market; i.e. more demand. Rapidly falling mortgage rates are bringing consumers seeking a mortgage out in droves, according to the report released yesterday (September 15. 2008) by the Mortgage Bankers Association. The association’s Weekly Mortgage Applications Survey, which measures week-over-week volume of people applying for a mortgage to either purchase a home or refinance an existing mortgage, showed loan application activity increased 9.5%.

Wells Fargo Home Mortgage, Colorado’s largest mortgage lender, upgraded the status of the Denver metro area’s market from declining to stable. This allows buyers to get loans easier.

The National Association of Realtors, chief economist, Lawrence Yun said, “Based on local market fundamentals, I expect robust home price growth in places like Denver and Houston over the next two years.”

Let’s hope he is right!!

Vicki S. Porter

http://www.PorterHouseRealty.com

Searching for the Right House

Surely, you have heard the common real estate theory that there are three things to consider when buying a house: "Location, location, location!" Once you have decided where you want to buy, you can consider what features you want in your home. Make a "wish list," and be realistic about what you must have (your non-negotiable features) as well as what you would like to have in your home. Think of objective criteria such as the style (ranch or two stories, etc.), the type (home or condominium, etc.), the number of bedrooms and baths, the square footage, whether there is a basement, a yard, a fireplace or garage.

Once you have identified the location and characteristics you want, it is time to hit the streets with your search criteria. If you have done your preparation to get to this point, the actual physical search for your home is often brief. The first thing your broker will do is put the given specifics into the computer. Within a few minutes using the local Multiple Listings Service, an agent can create a listing of the properties that match the desired profile. Then you need to determine which properties you actually want to view. You will want to make notes on the properties you view so that you can decide which best suits you.

Do not be surprised if the perfect house is the first one you visit. On the other hand, do not be disappointed if after looking at a dozen houses, you still have not found the right one for you. You have to just keep looking until you find the house that you want to call home!

If you are searching for a home in the Denver Metro area, you are welcome to search on your own on my website. Go to www.PorterHouseRealty.com and click on the home search page (you can search without being bombarded by advertisements).  You can also save your favorites, make and save notes on the listings, request daily emails to alert you of new listings that match your search and request showings on the properties that you would live to view.