Altos Research Group says that list prices in Denver are rising, one of only three markets that Altos tracks that are showing appreciation.Denver list prices rose by 0.7% in October, edging out Houston (0.6%) and Dallas (0.3%) for the top spot in the Altos Survey.
At the other end of the spectrum, Las Vegas home prices fell by almost 4% in October alone, Detroit homes lost 2.1% of their value and Phoenix home prices fell by 2.0%.
If you have read this blog or spoken with me over the past few months, you know where this increase is coming from. The bottom of our market, which was so hard hit by foreclosures in 2005 and 2006, has turned the corner.
With prices in the range of $225k and under having fallen by as much as 25% over the past four years, it's now cheaper for many to own than to rent. Investors are scooping up cash-flowing rental properties and banks are seeing multiple offers on many of their foreclosure listings.
In response, there has been a definite adjustment upward in REO pricing. There are also a lot fewer foreclosures on the market today than six months ago.
For example, in Arvada, there are currently eight single-family detached REO properties priced below $150,000 on the market. Eight.
This summer, I was showing as many as six to ten new listings a week in this price range. The foreclosure pipeline has just slowed to a drip.
If you're thinking about buying a foreclosure property, don't be discouraged. The deals are still out there... but they are harder to find.
You need to be working with someone who is in this market every day, so that when a well-priced home in good condition comes on the market, you see it immediately.
Many agents will tell you all the deals are gone. That's not true. They are simply going to the agents who get their first, who know what they're looking at, and who have prepared their clients to take action when the right deal comes along.
I'll put it this way - if you're not working with someone who understands what's happening, you're not going to get the result you're looking for.
Keep the faith - the deals are out there. And we're getting them.
