Colorado Real Estate Trends ©
Today’s look at a real estate market trend answers the question:
Does it cost more to buy a home using FHA financing than conventional financing in the Harvey Park subdivision of southwest Denver?
How to read the graph:
The data sample consists of over 500 sales in the Harvey Park subdivision of southwest Denver between November 2004 and January 2009. Harvey Park was developed in the 1950's and most improvements are two or three bedroom brick or frame/brick ranch style homes. The median sales price in 2008 was about $165,000. Only sales shown with individuals as the seller type were included in the sample. The sales with the sellers reported as banks, government, estates, and relocation companies were excluded. The dark blue trend line illustrates the sales trends of those homes financed with FHA loans. The pink trend line represents the sales trend for homes with new conventional financing.
What this means:
Clearly, the trend lines show it costs more to purchase a home in the neighborhood using FHA financing. The average difference in price over time is a little greater than four percent.
Centennial Appraisal Group, Inc. provides residential real estate appraisal, trend analysis, and consulting services in the Denver and suburban mountain foothills areas.
If in-depth real estate market analysis is important to your decision to engage an appraiser, as a homeowner, investor, lender, or for forensic review, call 303-816-1721. Appraisal services include date of death valuations for estates, pre-listing, divorce, FHA and conventional mortgage lending.
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Disclaimers and Acknowledgements
The research done to gather the data involves examining thousands of listings. With this much data inaccuracies will occur. Care is taken in gathering and processing the data and information within this report is deemed reliable. IT IS NOT GUARANTEED. The real estate market is cyclical and will have its ups and downs. Past performance cannot determine future performance.
This information is offered with the understanding that the author is not engaged in rendering legal, tax or other professional services. If legal, tax or other expert assistance is required, the services of a competent professional are recommended. This is a personal blog reflecting the opinions of its author. Statements on this site do not represent the views or policies of anyone other than me.
Investing in real estate is not a get-rich-quick scheme nor is there any guarantee you will make a profit. Every effort has been made to make this report as complete and accurate as possible. However, there may be mistakes. Therefore, this report should be used only as a general guide and not as the ultimate source for making money in real estate.
Blue vertical bars represent the average number of days on the market for the sales each month. The average days on the market is represented by a red trend line on the right axis.
The list price and sales price trends are shown with the dark blue and pink lines on the left axis.
The list price and sales price trend remain closely correlated. The days on the market trend is increasing, but remains well under 180 days. There are 180 sales in this sample. A small sales count in a month with an extended marketing time can skew the results. However, lengthening marketing times is a consistent trend seen in many markets across the Denver metro area.
The commercial:
What is the average price difference on a price per sq. ft. basis (net of seller concessions) between individual sellers and bank and government sellers in the Harvey Park neighborhood of southwest Denver, Colorado?
The sample size consists of 789 sales over the past thirty-seven months. The graph shows there is a significant discount associated with the distressed sales. Over time, the average discount is about 23% (rounded).
If in-depth real estate market analysis is important in your decision to engage an appraiser, as a homeowner, investor, lender, or forensic review, please call 303-816-1721.
Centennial Appraisal Group, Inc. provides residential real estate appraisal, trend analysis, and consulting services in the Denver and suburban mountain foothills areas
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