Why Some People are Negative about Metro Denver-Aurora Real Estate

Why are some people negative about the Metro Denver Real Estate Market in the near future and long term?

 1) Many people are confused because the Denver Post and other media are often unclear (especially in the headline of an article) about whether the news they       are reporting is about:

• the Denver Metro Area Market

• the entire United States Market,

• Specific Regional  Markets in the United States (i.e. California, Texas, etc.

     Because of this confusion, many people are unaware that the Denver- Aurora Metro Real Estate Market is one of top markets in the country.¹

2) Bad News Sells. Often the media distort the information to make things look bad so you will pay attention.  The problem is that much of the news, especially in finance and real estate is self-fulfilling prophecy. When people read in the news that the state or nation are in financial trouble and that people are not buying homes, they tend not to buy.  When the news is good, they tend to buy.

3) A lot of people like to look at the negative side of everything. Some are just depressed.  Others receive great joy in scaring other people with bad news.  

4) Misleading information was consistently published and broadcast about  Denver Foreclosures in 2005 and 2006. Headlines and newscasts spread the rumor that Colorado had the highest number of foreclosures in the United States. 

• Colorado was HAS NEVER EVER Been even close to #1 in foreclosures in the nation.

• Because Colorado is the last remaining Public Trustee State in the nation, all of our foreclosures are reported twice, thus making our foreclosures appear very high to Realty-Trac who gathers this information for newspapers, magazines, tv, and radio stations    

• In an article on Thursday January 25, 2007 in the Business Section of the Denver Post, the Post reported that Realty Trac and the Post had reported there were 37,412 foreclosures in the six-county Denver Metro area in 2006.  When the Post actually contacted the Public Trustees in those 6 counties, there were actually only 19,000 foreclosures, half as many as were reported. 

• The correct information was never published in front page headlines, nor was it picked up by the wire services and other newspapers across the nation 

• It is unclear whether Realty-Trac and the Denver Post ever changed their way of over-reporting our foreclosures.

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¹ According to MLS statistics the Metro Denver area sold over 4,000 houses, townhomes, and condominiums in May of 2010 worth over $1 Billion.

In June of 2010 about the same number of homes were sold, again for over $1 Billion. The major difference was that the average detached single family home sold for $26,090 more in June than in May.  For both months, once again, the South Aurora area had the most sales, followed by Denver Southeast.

The Denver Post April 25, 2008. Page 5B.  The Post reports that the Wall Street Journal stated that Denver was the third best housing market in the country because of a consistent reduction in the number of homes on the market and a reduction in  the number of months it would take to sell all the homes now on the market.  The Post also reports that Forbes magazine rates Denver as the 7th best market in the nation for home sellers.

Fortune Small Business Magazine has concluded that the Denver area is one of the top 7 places in the United States to live and launch a business. (As reported on CNNMoney.com.   http://robots.cnnfn.com/galleries/2008/fsb/0803/gallery.best_places_to_launch.fsb/7.html     

Forbes magazine has listed Colorado as the #1 state for economic growth in 2008.

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Last modified: 07/25/11