Denver’s housing market in enviable position

Filed under: Daily News,Real Estate |

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.

2 Responses to Denver’s housing market in enviable position

  1. Mr. Yun works for the National Association of Realtors (NAR), an organization that has continuously been overly optimistic about real estate (RE) in a falling market. Does one have to wonder why? It is a self fulfilling motivation which keeps the NAR misleading the public with skewed projections about the condition of the national and/or local real estate markets. What do you think the NAR is going to say? The RE market is horrible and don’t buy homes. Of course not! The NAR will not recognize what the White House has recently acknowledged. The National economy is in horrible shape and the banking system is in such a quandary that only foreign money can provide the necessary funds to keep it liquid. Go for it Mr. Yun. Keep telling people a fairy tale in hopes of keeping your job. The RE maket in this country is undoubtedly in a corrective downward move and that does not exclude ANY market, including Denver.

    Mr. Yun states that “only buyer pessimism is holding the market back”. Well Mr. Yun, it is the buyer’s emotional state that drives prices. What does Mr. Yun think drove prices up? Of course it was the buyer and now Mr. Yun wants to discount the buyers infulenace upon prices and RE values.

    One more thing Mr. Yun, I have studied interest rate markets going back 100 years and your claim that interest rates are the lowest in 45 years is just flat WRONG. You can ask any homeowner who refinanced in the late 90′s and you will find that mortgage rates were lower then than they are now.

    Mr. Yun, stop misleading the public uesing your positin and title. Tell the truth and don’t worry about keeping your job. You can find another one like many of the people that read your deceptions will have to.

    Concerned citizen.
    Warren M.

    warren m
    January 19, 2008 at 7:00 pm

  2. I’m actually leaving the state because I feel property prices are still too high and I don’t want to sit around and play the waiting game. Sick of seeing rentals for $1200 plus because people are trying to cover their mortgage because they are upside down on their house and can’t sell. I’m sick of seeing all of these dumpy houses from the 70′s TRYING to be sold at $200K+. Im going to take my money and pay $145K and move to northern florida AND get a pool AND a nice yard.

    Anonymous
    February 21, 2008 at 4:07 pm