Realty Times Feature Article by Blanche Evans

Denver, the "Gateway to the Rocky Mountains," is also the capitol of Colorado and the state's center of business and government. Tourism is still one of the biggest components of Colorado's economy, and Denver offers easy access to some of the premier snow and golf vacation resorts in the country. Diversifying the economy with technology caused a housing boom in the late 1990s. With the tech bust, housing has slowed, but it could well be taking a short breather.

"In 2000 and early 2001, selling a home in Denver was about as easy as putting a 'For Sale' sign in your front yard and waiting for buyers to come in droves," says Realtor Laurie Erb. "The economy was hot, high tech jobs were plentiful and, as a result, homeowners got top dollar and plenty of offers. Not any more. Like the jobs that fuel home buying, the days of easy sales are gone."

That could result in a mixed market for spring homebuyers. "There is a strong demand for homes in all price ranges if the home is priced correctly," advises Erb. "However, homes in marginal locations or in less than perfect condition must be priced lower in order to sell."

Agrees Realtor Sue Hartwell, "The market can be divided into three categories, which have different trends in each. The very high end has experienced a slowdown since April 2001; but since the beginning of 2002, it is back in action again! The mid-range market has slowed with the exception of people relocating into the state. However, if a property is priced correctly, it still sells quickly. The lower range market has continued to remain strong, due in part to interest rates remaining at record lows."

"In the Denver metro area," says Realtor Ann Roadarmel, "sellers are feeling a downward pressure to lower prices. Homes for sale are still above prices a year ago; but when compared with prices a couple of months ago, they have decreased.

"Denver is still lagging in recovering from the recession," she adds. "Denver lost 35,000 high tech jobs over the past year and is slowly recovering from those layoffs. Commercial real estate is also seeing an increase in vacancies, especially in the uptown area of Denver. However, in the lower downtown area vacancy rates are at 5%. According to the Denver Business Journal of May 5th, this could be as a result of easy access to and from I-25 to the lower downtown area."

Is there a chance at a quick comeback in prices? If any city can come back, it's Denver. The city has too much going for it, say Realtors.

Consider this list compiled by Team Cox:

• Denver is the largest metro city in a 600 mile radius -- an area almost the size of middle Europe.
• Denver has the nation's largest city park system, with more than 200 parks within city limits and 20,000 acres of parks in the nearby mountains -- an area larger than all of Manhattan Island.
• Denver International Airport is the nation's largest -- 53 square miles, an area so large it could hold the Dallas-Fort Worth Airport and Chicago O'Hare Airport combined.
• Denver is a "sports capital," with all four Major League sports (NHL Colorado Avalanche, NBA Denver Nuggets, NFL Denver Broncos, Major League Baseball's Colorado Rockies), as well as two professional soccer teams.
• Denver has 300 days of sunshine a year, more than San Diego or Miami.

Say the Coxes, "The Denver-metro real estate market now appears to be weighted in the buyer's favor. There has been little or no appreciation in homes during the past six-month period. For a buyer entering the housing market, this is good news when coupled with the historically low interest rates. If a move-up buyer finds he or she has not received anticipated appreciation on his or her current home, it will be a significantly offset by the lack of appreciation on a new acquisition. With a 35% increase in supply, most buyers are unhurried and want to see everything on the market."

Blanche Evans is the publisher of Agent News and the associate editor of Realty Times, the Internet's largest independent real estate news service. She is the author of two best-selling real estate books: The Hottest e-Careers In Real Estate, Real Estate Education Company, an Internet marketing primer for real estate professionals, and homesurfing.net: The Insider's Guide To Buying And Selling Your Home Using The Internet, Dearborn, a consumer homebuying and selling guide. In 2000, she was recognized by the editors of REALTOR(r) Magazines as one of the 25 Most Influential People In Real Estate.

Published: May 14, 2002

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