The bargain hunters are in Colorado, trying to find that elusive deal on a home, but few are having any luck. That's because some of the states markets have carried a sort of odd history in terms of housing. When the rest of the country was crashing, Denver homes were selling. And when things were hot in Denver, the market was quiet else where. The trend shows all the signs of returning as Colorado housing markets move out of the national downturn.
That isn't to say the economy hasn't changed in Colorado. The lean years are back in high-end Aspen, where empty storefronts line the streets of downtown, a scene that's likely to remain over the snow skiing season. Business vacancies are nearing 15%.
Denver is no bellwether of the nation's financial crisis, nor is it for the housing bust. In terms of sales, Denver has seen the first time home buyers tax credit aid its market. Foreclosures had a devastating impact on the market, but defaults are easing and may have a lesser affect on the market than in more economically damaged areas of the country.
Homes priced under $250,000 are attracting growing numbers of buyers, and that could buoy the Denver market through the year. Some homes have even attracted multiple offers, especially lower priced foreclosures. Despite the probable rise in home sales in Denver in 2010, mortgage lending will still be tighter through most of the year, pressuring the market. Average housing prices are forecast to decline 4.8% for the year.
| City |
Forecast |
| Denver |
− 4.8% |
| Aurora |
− 5.3% |
| Boulder |
− 2.5% |
| Grand Junction |
− 2.3% |
| Colorado Springs |
− 3.3% |
In suburban Aurora foreclosures, particularly of new homes have sent prices tumbling. A lower inventory should act to aid the market's recovery before a new wave of foreclosures hits in the early part of the year, sending values south. Sales activity should help the market recovery over time but not before taking a hit that is forecast to average 5.3% in 2010.
Boulder is one of America's near safe havens for mortgage lending in the financial crisis primarily because national mortgage lenders never targeted the area for subprime and creative mortgages that triggered the mess. Like most places, prices have suffered but not to the extreme, and are forecast to remain fairly stable through 2010 inflating just 2.5%. The extension and expansion of the federal tax credit will aid the market.
The natural gas fields of Grand Junction kept the market active for the longest time, but then the credit crunch hit and there went the market. Now with growing unemployment in energy and drilling rigs being idled the market has softened, and is forecast to see off and on spikes in home sales through the year. Grand Junction is projected to see home values decline a marginal 2.3% in 2010.
Despite a menacing increase in foreclosures, Colorado Springs is holding its own in the housing slump as home sales sputter along to keep real estate agents in business. The market saw its boom thaw. Colorado Springs should see an upswing in sales even through the normally slow winter months as buyers take advantage of federal tax incentives. Housing prices are forecast to deflate just 3.3% for the year.
