A little light shining at end of Castle Rock’s Housing Tunnel

By shaye • June 17th, 2010

After seeing our real estate driven economy sag and bring with it dark days, closed stores and unhappy homeowners, perhaps the Denver market and Castle Rock in particular is coming out of the tunnel into the sunlight.

On May 26, 2009, the S&P Case-Schiller home price index in twenty select markets was released. The Denver market saw the nation’s smallest quarterly decline and, for the past month, actually saw home sales rise. Denver shone as one of only three markets with an increase.

Each Saturday the Denver Post prints the Colorado Weekly Homebuyers List sorted by county. Of Castle Rock’s three zip codes (80104, 80108, and 80109), sales last week totaled 37 homes. If you look up this week’s 37 sales on the Douglas County Assessor and Public Trustee web sites, a number of interesting and illuminating facts emerge:

* – of the 37 Castle Rock homes sold, five actually sold for an increase over the amount previously paid- a bright sign.

* – 11 of the homes sold were newly constructed homes- another ray of sunshine.

* – On the dark side, Foreclosures hurt. Although only 7 of the 37 homes sold were foreclosure related properties, the amount of money lost was far and away the leading cause for losses in Castle Rock’s real estate market. Two of the foreclosed homes were sold at a 33% loss from their previous purchase prices of $795,000 and $485,000 respectfully. That erased over $430,000 from our economy on these two sales alone. The remaining foreclosure sales were from 9% to 29% off their previous sale prices.

* The most expensive home sold was for $1,425,000, at a loss of $125,000 or 8.1%.

* The least expensive home sold in Castle Rock was for $118,000, a loss of $45,900 or 29%.

This week’s sales were burdened by a 19% foreclosure rate. Although not a radiant percentage, it is a far cry from earlier weekly figures with 50% or more foreclosures in the mix.

Makes you want to buy a flashlight or two to wipe away the darkness.

The dark and dank problem that has not seen the light of day is the problem with getting a new mortgage. There just isn’t enough money out there to lend. There has to be a better, brighter, more illuminating answer. Problems like this don’t have to have three or four sides. We can make a icosahedron of bright, illuminating answers if we just think outside the box. We don’t have to wait for the geniuses in Washington and Wall Street to bring the light. We can shine right here in Colorado.

Mike Robinson is Sr. Partner at Robinson & Henry, P.C. a Castle Rock Law Firm.

Attorney Mike Robinson is Senior Partner at the Castle Rock Law Firm of Robinson & Henry P.C. He has lived in Douglas County, Colorado for over 20 years. He has served on the Board of Directors of the Castle Rock Chamber of Commerce and Cantril House Assisted Living Center, as Post Commander of the Castle Rock Veterans of Foreign Wars Post #10578, President of the Douglas-Elbert Bar Association, Board of Governors – Colorado Bar Association, the Colorado Trial Lawyers Association, and Phi Delta Phi Legal Fraternity, Who’s Who in American Law.

 

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