In this crazy real estate market we’re in, I know how easy it is to get scared when you read something in the paper or see it on TV. When you do, first ask yourself, ‘is this a local story or are they reporting on a national trend?’ There’s a big difference because here in Denver things are actually getting better. Our inventory is down and many neighborhoods are showing price appreciation. The main point I wanted to make is that don’t necessarily take the figures you see at face value. I recently attended a meeting on sales trends where the speaker was making the same point. For example, he stated how the Castle Rock average sales prices were down 16% in 2008, when compared to last year. When you get into the figures, they tell a different story. By breaking the figures down you get a whole different take on the market. Let me explain; for homes that were larger than 4,000 square feet, the average sales prices were down 73.1%, for homes in the 2,400 to 3,000 square foot size, sales were actually up 28.6%, and homes that were in the 1,800 to 2,400 square foot range, sales were up 1.5%. When viewed in this manner, one can see that the average to slightly average sized homes were actually doing quite nicely. There were a lot of large homes built in Castle Rock over the last 15 years or so, and those homes aren’t moving very fast. In fact, it’s the same all over the Denver metro area. Presently, it’s estimated there is an average of two and a half year supply of homes valued at one million dollars or higher. When you factor in the drop of this segment of the market it tends to drag down the averages and make it appear an area of town isn’t doing that well. Combine that with the increase in sales of the lower price ranges and it’s easy to see how numbers can show a declining trend. If you have more questions about this, contact your real estate professional.