It’s true. Home prices in Parker, CO are normal and actually still a little under what they should be if we never experienced an almost 5 year market deflation. Ok, seriously bubble is not a word I really want to use because everything has the ability to collapse but the reality is that we are not overpriced or over valued. Yet… Yes homes are still cheap to buy compared to what they could or should be.
“Parker, CO real estate is still undervalued. The PROOF is in the numbers below.”
If the real estate market collapse never happened and we continued on a normal pricing and appreciation path from the end of 2005 to 2014 home values would be higher now than they currently are. What’s the normal appreciation? I used 2.5%. Why? The government and every article I’ve ever read about real estate says 2% to 4% is normal appreciation so I used the low side but not the bottom.
This is a very good example because this person bought their home right at the top of the market (November 2005) before the market crashed here in Parker, CO and the rest of the country.
November 2005 purchase price $364,500.
January 2014 sale price $435,000 (9 years later)
Actual appreciation = 1.9% a year for a total appreciation of 19.3% over the 9 years.
If the market never crashed and this person experienced a 2.5% appreciation rate for the full 9 years they owned the house they should have sold for $466,600. BOOM! This house is still $30,000 below what it could be if we never had the market meltdown. Proof that home prices are not overvalued.
Let’s face it. From the end of 2006 through 2010 the market was flat and in many years there was tremendous downward pressure or deflation on Parker home values. I’ve been tracking Parker real estate values since 2004 and posting them on this website so I have a pretty clear picture of where we were, what we went through and where we are now. I believe we still have plenty of room for improvement in the low and middle markets and especially in the high-end market.
If you are considering selling and moving into your “forever home” call me. There are still some sweet deals in the $600,000 to $1.2 million price range. I will be happy to share my knowledge of these deals with you personally but not with other Realtors reading my blog posts.
When you’re out looking at homes this weekend (hopefully with me) know your values and know that you are in fact still getting a normal deal.
The home sale mentioned above was from my very own personal transaction. As a Realtor in our market that sees many homes each month I believe my home and the price was a good representation of the the middle market here in Parker. The home was not over improved or anything special other than it was located on a cul-de-sac in the Stonegate neighborhood 10637 Stone Creek Ct. Parker CO 80134.
Steven Beam is a Parker CO Realtor with 15 years experience right here in Douglas County and South Metro Denver. 303-941-4663
Note: I’ve been in business here for 15 years but I still love working with home buyers. Email me and I will help you find a good deal too.
Home prices are not overvalued!