Parker, CO Real Estate Update!
Denver Metro Market update for December 31, 2007.
While I firmly believe the Denver Metro market is at the bottom of current cycle I do think that pocket neighborhoods and areas (Aurora, CO) will continue to feel the pinch for another year or two.
Parker, Castle Rock, Elizabeth and most of the remaining Douglas County areas have fared well during the market downturn. We do have to deal with the psychological aspects from the nightly local media reporting on the East and West coast markets as though they were representative of the current local markets. Buyers are acting as though they are timid and should not be buying right now. What’s the old rule? "Buy low sell high?"
If you are considering buying now is the time to make the move. We may not see these price levels again.
• Metro Denver home sales increased 3% between September and October while
unsold inventory declined by 5%. YTD, sales are down 1.1%.
• Median home prices in Denver decreased to $254,100 in Q3. YTD, median
Denver prices are down 0.5%. Average prices are more affected by reduced
availability of jumbo ($417K+) loans - average single family home prices in Metro
Denver fell by 5% in October, from $305,500 to $289,800. Nationally, median
home prices are down 5.1% from a year ago.
Local analysts feel that Denver’s housing market is at or near the bottom.
The vacancy rate in Denver’s rental market declined to its lowest level since
2001. The Q3 rate of 5.3% is down from 6.2% in Q2 and well below the 6.7%
level of the prior year. Average Metro Denver rents fell a few bucks to $858.
Some still speculate that luxury units may have been priced above what the
market will actually bear.
• Metro Denver’s office market vacancy rates remain unchanged at 12.7% while
average lease rates have risen to $19.95 per square foot. 1.06 million sqf of office
space (39 buildings) has been completed YTD and 74 buildings (another 2.94
million sqf) are still under construction.
• The industrial vacancy rate is down to 6% and average lease rates are up to
$5.03 per square foot. 20 buildings (1.34 million sqf) of industrial space has been
completed this year and another 23 buildings (1.17 million sqf) are currently under
construction.
• Retail and shopping center real estate markets flattened in Q3 and the direct
vacancy rate fell slightly to 6.8% with lease rates steady at $16.69. More than 1
million sqf of new retail and shopping center space has been added this year, and
over another 5 million sqf of new retail space is on the way.
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