Denver Colorado Real Estate, An Investment Opportunity
Denver, the mile high city as it is called is seeing brighter days with "sales of existing homes" rising as much as 24 percent this past Nov. in comparison to 2003.  The economy has been characterized by continued growth in commercial and residential developments, as well as smaller increases in the work force and real income.  For sale signs reached record highs this past spring but there was little incentive for home prices and sales to show more than "modest gains."  Sales of previously sold homes "dipped," remaining on the market longer while high end homes started to sell again.  The year closed on a positive note and if interest rates don't rise and mild weather continues there could be more sales activity to spur on the market in the new year.  The same thing could happen later in the spring.  There are a lot of could haves in the Denver market depending on whether interest rates increase and the market of home buyers increase.          Analysts feel consumer confidence initiated the increase in home sales at the end of  2004, picking up from a slight slump in 2003.  Inventories increased and homes remained on the market longer, an average of 93 days this year compared to 87 in the previous.   The price of a single family home in February was  $225,000 compared to $225,500 in January.  13.4 percent fewer homes were listed under contract  with buyers in April 2004 than 2003.  Homes under contract for the first quarter of 2004 also declined 12.6 percent in comparison to 2003.  Some home owners are waiting for their  current properties to sell before putting their old ones on the market others are selling, buying newer, larger properties before their old ones sell.  It's an overall situation that has led to a slight increase  in prices, selling time, and the inventory of Denver's residential market.       Inventory build up is a determiner in the market just like any place else.  There was no considerable change in sales activity for Denver's metro market until the latter part of the year.  There was a "pretty good supply" of homes that had been built up over the rest of the year before November's sales statistics showed a double digit gain to the previous November. 23,212 homes were listed for sale in the metro area last Feb, an increase of  only 1 percent from a year before.  Sales showed some sign of picking up in the first quarter but significant increases weren't tallied until the fall and fourth quarters.  Analysts feel buyers' confidence was bolstered by election returns, low and still falling interest rates and plenty of choices from a large inventory.         In the end a "suffering economy" wasn't enough to deter buyers from pursuing the American dream of owning a home.  By year's end a 30 year fixed mortgage of 5.69 percent in Nov. had decreased from 5.74 in Oct.  for metro Denver home buyers.  Denver, like Phoenix, appears to be benefiting from a housing market on the rise.  Though there is no funnel of continued population growth and lack of growth in the job sector "mortgage rates have been a godsend," says Executive Vice President at Coldwell Bank Chris Mygatt.  Mortgage rates are now what is controlling "the pace of sales," especially in the Denver area where there is lack of any other factors like a sudden population increase to deplete inventories and send median prices rising.  For the moment the majority of Denver will be content on watching it's steadily rising skyline as well as its inventory of homes. Median prices will keep place with inflation and maybe out perform it.  Those who want to stake more of a claim in the market will be satisfied they are making a strong investment in their future despite its ambivalent performance.  With 2005 already upon us and interest rates showing no signs of accelerating any time soon it would be safe to say that Denver's growth will continue as long as there are avid buyers to take advantage of the favorable conditions and the variety the market has to offer.