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After hearing about the fire and seeing the horrific images of destruction in California, I often wonder if something equally terrible could happen to us? As I still have friends living throughout Los Angeles, I know first hand the economic impact this has on them. Click through for a review of the tax situation for those fire victims to learn more about what they might be going through.
MY THOUGHTS: Denver is right on average of national value decline at 9.7%. We have a higher share of homes that lost value year over year than average at 90.6% vs 53% because of the affordability of our homes and the rate and type of homes that are being built in the most recent years. Larger single family homes that have not been updated have been the hardest hit because this still the bulk of the homes in the metro areas. Buyers aren’t willing to do updates to these homes and so the prices of the homes keep dropping. Since there was no inventory during the pandemic these home prices are the homes that are adjusting the price the most. Most people are staying in their homes an average of 8.4 years.��Good news is that only 6.3% of homes have lost value from its previous sale price! That means that since the last sale price, a median of 8.4 years ago, those homes have lost value. And only .6% since 2019 values.
All this is to say that I don’t believe a bubble is likely to happen, it is a correction of the market. As the interest rates drop it is likely that house values in the Denver metro area will increase again. Thus making this the most opportune time to purchase. The values of the pandemic market were unsustainable as the Denver area was a more supply constrained area than most metro areas and now the values are correcting themselves.
Real Estate is always a supply and demand issue tied closely to the economy. But reality is basing your sale or purchase on economic changes very rarely yields you the life style or stability that most of you crave. Ask me how I know this?
(Read the full article here: https://zillow.mediaroom.com/2025-11-17-53-of-U-S-homes-lost-value-in-the-past-year,-the-most-since-2012)
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