University of Denver

If there’s a way to see the good in everything, it’s especially easy to find goodness on both the buy and sell side in Denver.  Today, we’ll discuss why while focusing on the DU (University of Denver), Platt Park, and Wellshire Heights neighborhoods.

First Things First:

The University, Platt Park, and Wellshire Heights communities are south of Denver, minutes from downtown, just off I-25.  For a few years, there was some discomfort experienced by residents and commuters passing through this portion of town due to the T-REX light rail project, but just about everyone agrees that the inconvenience was going toward the greater good of a state-of-the-art public transportation system, the likes of which Denver has sorely been in need of since, well, ever. T-REX construction was completed in 2006, and is considered a success for joining business and commuting epicenters Downtown Denver and the Denver Tech Center and Centennial.

On the plus side for buyers:

• These neighborhoods boast reasonable prices, with an average home price of $250,000, which is also the state-wide average.
• Trends indicate price reductions–prices are down 5-10%
• There are more sellers than buyers

Good for sellers:

• Homes remain on the market for a reasonable length of time–about 90-120 days. Compared with other parts of the country, it’s a livable length of time.
• Most sellers receive multiple offers
• Nearby communities, such as Wash Park and Bonnie Brae are experiencing an upswing in activity and prices

Check in later this year, when we’ll revisit this area, to witness forthcoming trends following the summer season wrap-up. Until then, look for more good news.

The Denver Business Journal recently reported that many sources of statewide and local housing information provide data that sometimes conflicts. Those data sources include local public entities, such as the Colorado Division of Housing; private compilers, such as Metrolist Inc.; and national companies, such as foreclosure specialist RealtyTrac Inc. of Irvine, Calif.

With over 80% of Buyers starting their search online, consumers thirst for data, correct data. It’s not always easy to determine whether data is accurate, or if it only appears to be accurate. However, there are some things to look out for when you are looking through housing statistics.

• Consistency — Data for regularly published reports should be from the same sources and use the same guidelines, so it can be accurately compared over time.
• Representation — The more representative the data, the more revealing about a market it is. Colorado’s housing division, for example, regularly includes all sizes of apartment complexes in its quarterly apartment vacancy and rent surveys, rather than just the largest properties other reports use.
• Definition of terminology/clarification — Reports about home-sale prices, for example, should specify whether those prices are average or median.

The Colorado state housing division started compiling its own quarterly foreclosure reports in 2006, because it disputes RealtyTrac’s Colorado foreclosure data. RealtyTrac double- or triple-counts its local information because of how foreclosures are reported in this state, according to Colorado officials.

• Geography — Geographic areas such as metro Denver need to be specified. Some real estate researchers use the seven-county metro area (Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas and Jefferson counties), as defined by state and local agencies. Others employ the 10 counties of the census bureau’s Denver-Aurora Metropolitan Statistical Area (the seven metro-area counties excluding Boulder County, but including Clear Creek, Elbert, Gilpin and Park counties).

More than likely, any time you see an aggregate of data, you need to verify some of the above-mentioned indicators to determine how solid the information is. More than likely, aggregate data providers are not attempting to lead people astray, rather, there are a number of moving parts and parameters that need to be taken into account to interpret the data appropriately.