Denver and Saddle Rock Real Estate Trends For 2009

By Bruce Durrell

As we enter the 2009 summer selling season it is important to remember that “all real estate is local” and understand both the general and local market trends. The key trends in the broader Denver market are fervent activity below $300k, improving activity between $300k and $500k and a sparsity of sales above $500k. First home buyers seem to be moving into the market with some enthusiasm and certain areas of Denver are seeing more activity than others. For the local market trends, specifically the Saddle Rock real estate market which is not the most (or least) active in the Denver area, the following trends do carry through.

Important Saddle Rock Trends for Sellers in 2009 are:

  • Price stability in the lower price ranges for Saddle Rock real estate
  • Price drops in the neighborhood may have been much less than you think over the last year or two
  • An influx of buyers under $300k reducing the leverage of buyers in general
  • Greater availability of loans below the jumbo benchmark
  • Limited availability of loans above the jumbo benchmark
  • More risks and delays due to appraisal rules
  • An expectation the summer selling season should be a good one

Important Saddle Rock Trends for Buyers in 2009 are:

  • A likely reduction in the number of bargains below $300k in Saddle Rock real estate
  • Excellent financing options for buyers with good income and credit
  • Limited financing choices for buyers with weaker credit or proof of income
  • Competition for true bargains to be fierce and the likelihood that well priced Saddle Rock homes will sell quickly

Saddle Rock real estate will be influenced by all of these trends to some degree. However, in comparison to the broader market, there has been less drop-off in prices and this should reduce the potential for appraisal issues and suggests prices are likely to trend upwards in the second half of 2009. Buyers will continue to have maximum leverage if they’re in a position to purchase over $500k. There’s no need for buyers to rush in but assuming they have little competition on well-priced homes may result in disappointment. The ability to act quickly will be a key competitive advantage for buyers, reinforcing the importance of pre-qualifying and having all of their “financial ducks in a row” before searching too hard.

Bargains below $500k are likely to become less common during the remainder of 2009 and will require responsiveness and quick decision making. As the Denver market strengthens in the second half of 2009, Saddle Rock real estate will strengthen with it. Sellers will have the opportunity for relatively fast results and surprisingly good prices. Buyers may see bargains but regardless will be able to buy knowing the downside risk is lessening each month, and it’s resilience should instill ongoing confidence in their purchase.

Bruce Durrell
Realtor and Real Estate Investor
Saddle Rock Real Estate

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