Colorado real estate seemed for a time to be almost immune to the ravages of the nationwide recession and economic downturn. It seemed that amidst the waves of bad economic news and foreclosures in the majority of the country, Colorado was something of a beacon of stability and hope for recovery. It seems that now that myth has been dispelled – Colorado has recently faced wave after wave of dismal economic news and seen a variety of adverse effects in numerous sectors. Not only has the real estate bubble burst, but it has shown no strong signs of recovery either in the residential or commercial sections. To the contrary, indicators of relative health continue to go south, damage is becoming more widespread, and more families are facing economic hardship.
An August 17, 2009 article in the Denver Post found that mortgage delinquency nationwide rose to an alarming all-time high during the second quarter of the year. “the delinquency rate on US mortgages loans hit an all-time high in the second quarter, but the pace of growth for the rate slowed, a possible sign the mortgage crisis may be beginning to turn the corner.” An August 13, 2009 article, also in the Denver Post, found that any glimmers of hope for the national market do not seem to apply to Denver homes for sale. The article, written by Aldo Svaldi, found that “Sales of existing homes in Colorado fell in the second quarter, bucking a trend of rising sales nationally, according to a report Wednesday from the National Association of Realtors. Sale statewide were down 6.4% between April and June compared with January to March, the fourth largest decline among states.”
Some of the attempts to reinflate the real estate market have been unsuccessful, or are running out of time. For example, a Channel 9 News article found that the “clock is ticking down on first-time homebuyer tax credit(s)”, a reference to the expiring federal 8000 dollar. Another article in Channel 9 News stated that “According to a local commercial real estate expert, the market could be set for a rebound, but not for at least another year or two.”