In remarks to the Jefferson County Association of Realtors this week, Lawrence Yun, chief economist and senior vice president of real estate for the National Association of Realtors said Denver may have escaped the worst of the housing slump.
Factors that led to that conclusion included Denver’s lower-than-national-average unemployment rate and stronger job creations statistics, historic trends showing less price run-up during the past five years than in West Coast or southwest metropolitan areas, and mortgage rates at a 45-year low.
He noted that only buyer pessimism is holding the market back. With interest rates at a 45-year low, he views the Denver area as “past its bottom” and “now in the early stages of recovery.”
Yun’s 2008 forecast predicted that home prices in the Denver metro area will average a 5 percent to 7 percent increase.