James Real Estate RE Mkt Cond Dnvr 2000 4th Qtr Page 2
JAMES REAL ESTATE SERVICES, INC.
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Residential Real Estate
Like other forms of real estate, residential properties have been strongly affected by economic
fluctuations. In the 1980s, Denver residential markets were particularly hard hit by job losses and out-
migration leading to value declines in many neighborhoods. This trend has been reversed with job and
income growth, in-migration, and historically low interest rates. Evidence of continuing improvement
includes the following:
· Greater number of building permits
· Low apartment vacancy
· Reduced foreclosures
· Increased average purchase prices
· Decreasing market exposure times
· Increased availability of financing for residential builder inventory
· Limited supply against solid demand
The demographics driving residential market conditions are relatively stable and so market supply
and demand will probably remain in reasonable balance over the long term.
Single Family Residential
The single-family residential construction industry suffered greatly during Denver's past real
estate recession. While local economists have predicted a slowdown in residential building for some
time, the market is still growing. The graph on the following page shows Denver area residential
building permit history.
