It's been depressing to read the national news, and to see how the real estate market around the country has finally begun to rebound healthily in most areas, while we sat in the state with 3 of the nation's 6 worst markets. The latest report, however, shows a tiny (0.4%) gain in year over year prices in our area. That still puts us significantly below 2006 levels, but we are headed in the right direction at last!
I think I've written about most of the reasons for our lagging performance, and the states around us, with the exception of the Boston area, also pull down the national figures. Eventually, though, demand will absorb the houses that exist on the market, and encourage owners to sell. It still takes longer here--Denver measures its absorption rate in hours, while we are at 102 days--but it's coming.
And not a moment too soon for those of us in the real estate business!
I would be remiss if I did not once again remind buyers that the greatest appreciation tends to occur within a fairly short time after prices begin to rise. Supply tightens, and people get nervous, so they start to bid seriously, and prices go up, and the cycle repeats until something happens to halt the spiral upward. Those who watch historical trends know to act quickly, and the rest of you have now been warned: Buy now for best results.