3rd Highest Appreciation Rate in the Country

Zillow.com reported yesterday that Denver home prices have risen 5.2% this year through November which is good for third best in the country.

You might be thinking to yourself how? This is what I think is happening. Before 2006 very very few homes sold in Denver for under $100,000 in the previous 5 years. It was almost unheard of. Then, by 2007 and 2008 thousands of homes sold in Denver for under $100,000 and this dragged down our average and median prices of homes.

This year far fewer homes are selling for under $100,000, especially since March. Looking back it appears that February or March was the bottom of our real estate market in Denver. Demand for these homes far exceeds the supply of homes available and this causing prices to rise.

Now there are still hundreds of homes listed for sale for under $100,000; but a large majority of them are selling for over $100,000 as nearly every home priced this low will receive multiple offers. The home might be listed for sale at $90,000; but, don't be surprised if the winning offer or bid is $110,00 or even $120,000 or higher.

Both first time home buyers and investors are swarming to these properties. For example, I have a first time home buyer under contract on a HUD owned home appraised and listed for sale at $80,000 in NE Denver. In 2006 this home sold for $180,000 and she is buying it for $83,000. Since this house did not qualify for a traditional FHA loan due to it's inferior condition she was able to buy it for not too much more than the list price. I am helping her with a FHA Streamline Renovation loan to remodel the home into far better condition.

The FHA Streamline Renovation loan allows you to finance up to approximately $31,000 in improvements to the home. But, these loans are a lot of work for me and for you. Next, your out of pocket costs for these loans will dramatically increase January 1st 2010 as HUD believes it is better for you to pay more money at closing and to have a lower monthly payment than to have less money out of pocket at closing and a larger monthly payment. Unfortunately, you will no longer have that choice.