Zillow: Q2 Denver Area Home Sales Mixed Bag

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  Zillow released a report last week that metro Denver home values dipped 6.9% in the second quarter of 2011 compared to a year ago.  National home values fell 6.2 percent compared to the second quarter of 2010.  The silver lining is that home values crept up half a point from last quarter in metro Denver.  
  
  
  The housing market continues to struggle throughout the Denver area.  According to the Zillow report, 24 percent of homes sold in the second quarter were foreclosure resales.  Another sting to the real estate market is the number of homes with negative equity in Denver is at 39.8 percent.  To make matter worse, 30.8 percent of home sold for a loss in the Denver metro area in June.
  
  
  If you are a buyer in today’s real estate market, you are sitting in the driver’s seat.  Home values have plummeted 15.5% since the peak in June 2006.  According to the Zillow Home Value Index, the last time home values were at this level in metro Denver was February 2001.  

According to the Zillow Home Value Index, Stapleton home values have dropped 8.3% year over year.  Although home values dropped year over year, home values did inch up by 0.6% in Stapleton.  In contrast to the Lowry market, which saw an increase in home values by 2.8% compared to last quarter, and a decline in value by -3.7% year over year.

80238 Zillow Home Value Index

Data compiled on August 1, 2011 from Zillow.  Stapleton home value chart from 6/30-8/01/2011.

80238 Home Values - Interactive chart

The Federal Reserve made a significant statement last week by committing to keeping interest rates low through 2013.  Combined with the downgrade of Fannie Mae and Freddie Mac, the housing market is reeling to see which way mortgage rates are going to go.  According to the Zillow Mortgage Marketplace, rates plunged to 3.92 percent.  If you are in the market to buy a home or condo, this is great news for you.

Data gathered from Zillow Mortgage Marketplace, 8/10/2011