Homeowners in the Denver area are holding off on their plans to sell their homes because of rapidly falling prices in the housing market, which is being continuously flooded with foreclosure homes. This has caused a sharp decline in the supply of non-foreclosure homes for sale in Denver to a record three-year low.
In October of last year, the number of non-foreclosure homes for sale in Denver was 28,928. In October of this year, the number fell down by 20.1 percent to 23,120, which is just above the record low figure registered in January 2005.
According to Coldwell Banker Colorado’s president Chris Mygatt, who studied Metrolist housing figures for three months, the supply of unsold non-foreclosure homes decreased by about 20 percent on the third month. Real estate professional Gary Bauer also issued his report showing that October 2008 is the eighth successive month that the supply of unsold non-foreclosure homes fell from the same 30-day period in 2007.
Mike Cox of Denver’s RE/MAX Professionals also published his report showing that the total number of non-foreclosure homes for sale in October this year has declined by 27.7 percent in comparison to the peak figure of 31,989 houses in July 2006.
In October of last year, the approximate price of an average house sold was $289,754. In the same month this year, that price dropped by 13.6 percent to $250,172. The median price also dropped by 12 percent from $234,200 to $206,000.
Hottest Home Realty’s owner Realtor Ed Jalowsky has advised his clients not to sell if they can afford to wait until home prices stabilize. The homes can be rented out as they wait. He has also advised some clients to buy foreclosed homes from mortgage banks which are dumping foreclosed homes at bargain prices.
Mygatt said that home prices in areas such as Montbello and Green Valley Ranch are declining by as much as 40 percent because banks have been pricing their foreclosed properties at bargain prices.
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