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Lon Welsh: Worst over for hard-hit Denver pockets

“The parts of the Denver-area market that were hit the hardest by foreclosures, short sales and plummeting home prices, are now well on their way to recovery.

That is the word from Lon Welsh, principal of Your Castle Real Estate and a statistician.

“His thesis is that the market segments which were the first to experience declines in home prices and fell the furthest are recovering to price appreciation,” according to Larry Hotz, a broker with the Kentwood Co.

“As a statistician, he believes that is bellweather for the bottom of home prices,” Hotz added.

Here is part of Welsh’s analysis, which appeared on All Denver Real Estate, a blog by Hotz.

“The inevitable conclusion is the the price declines have reversed in the worst hit Denver markets,” Welsh wrote. “These are real estate markets that saw saturation foreclosures and short sales. Prices plummeted. But, now we can see that the the prices have reversed. This bodes well for the Denver real estate market as a whole in 2010. While extrapolations to exact numbers would be fruitless, the trend is clearly up!””