Denver Metro Area Real Estate: Berkeley Market Report

Market Data Report

Overall:

What a great year for the Berkeley Neighborhood! This price range remains the fastest-moving in the Denver Metro area and this neighborhood has unparalleled appreciation at 5.3%. Furthermore, sales have remained steady compared with 2005 numbers, still selling with less than average days on market.

The Denver Metro real estate foreclosure problem, rooted in risky loans and lending to risky borrowers, has created a problem in this neighborhood. A large number of foreclosures has been a drag on values in Berkeley, especially in the last half of the year. However, it is not nearly the problem that it is in other Denver neighborhoods.

Because values are so strong in Berkeley, foreclosures are lowering the level of appreciation rather than causing a huge dip in prices. Stay tuned and expect the foreclosure problem to worsen as Adjustable Rate Mortgages continue to mature, increasing interest rates and raising mortgage costs beyond affordable levels to homeowners.

Last, an increase in interest rates is expected this year which may depress housing prices. I expect this could slow the rate of appreciation in this neighborhood, but buyers and sellers here will not see the "dips" found in other Denver neighborhoods. Berkeley neighborhood will remain an outstanding investment.

Find below a complete look at the latest data, which tells you how the market is looking at your neighborhood, not your home.

The Data
Number of Homes Sold in 2006: 171
Year-to-Date 2006 Appreciation Rate: 5.3%
Days on Market 2006: 71
Days on Market range 2006 solds: 0 days - 556 days
Average Sale Price 2006: $237,127
Sale Price range 2006: $82,000 - 520,000
Price per Square Foot 2006: $145.24

Interpretation and Advice
We see that your neighborhood is appreciating at a level that is unusual in the Denver real estate market today. This means opportunities for investors and renters and for first-time homebuyers to either refinance in order to eliminate mortgage insurance or to capture their gain and put it down on a larger or an investment property. Do this before interest rates rise and create a downward effect on housing prices in your neighborhood.

I can also tell you that this is the fastest-moving price point in the Denver Metro area today and that if you are considering buying or selling in this neighborhood, this is your time. I can find the best value for your purchase in this neighborhood or I can let you know how to prepare your home for market so it sells quickly for top dollar. Some things to remember if you are considering selling and purchasing a home in the coming year is to:

1. Make no major purchases. No trips to the furniture store, no new cars, etc. Check with a loan person NOW about your credit record and ask about what you can do now to pump up your score. You want to get the best rate possible when you buy your new home.

I prefer working with a knowledgeable, trustworthy lender with years in the business like Ron Brown at Nationwide Lending Group. Call him at (303) 989-8500.

2. If your home has a lot of fancy wallpaper, colorful paint and "decorator" touches, start working on making your home more neutral, one room at a time, so it does not become a big job when you put the house on the market. Creamy neutral tones sell homes.

3. Do bigger projects like sanding and painting the exterior, refinishing the deck, making maintenance-oriented repairs so this does not become a big job when you are ready to put the house on the market.

4. Pay attention to your yard. Get rid of weeds and overgrown bushes, bald patches in the lawn, plant nice flowers.

5. Get in the habit of getting rid of clutter. Get rid of things that just take up space (making your home look smaller), un-stuff overstuffed closets, get rid of storage, find a place for everything you use and get rid of the items you do not use. Visit model homes if you are not sure of what will look like clutter to a potential buyer when s/he visits your home. (TAKE your BROKER with you to the model home!!)

6. BE CAREFUL about "fixing" up in any significant ways before talking with a professional about whether or not it will add value to your home. Doing the things set forth above are the most important steps to take and will help you greatly when it comes to sale price.

Call me at (720) 275-3926 if you want a professional inspection and market analysis of your home, at no cost to you. I am keeping a close eye on homes in your neighborhood and it would be my pleasure to make your sale a complete success.

Your Personal Real Estate Information Source,

Marie de Espinosa

Integrity, Insight, Results!