Denver, Colorado, the "Mile High City," saw a slowdown in the market earlier this year and a rise in foreclosure rates. But is all that about to change?

Experts report that despite these slowdowns and setbacks, the average selling price continues to rise. Homes sell in less than 4 months and for an average price of $335,111 -- up nearly $20,000 from the average in May of this year.

Are these rapid rises responsible for lowered affordability and, therefore, higher foreclosure risks? "Foreclosures in the seven county metro area jumped by nearly a third in the first half of 2006." (Realty Trac)

There is a large inventory of homes on the market, however, giving buyers an advantage at the negotiating tables. Experts report to Realty Times that "the high-end of the Denver housing market continues to avoid the slowdown from rising interest rates and high foreclosure rates, which is hitting the lower and middle markets."

Also fueling the Denver market rebound -- "for the first time since the early 1990s, unemployment in Colorado is lower than the national average," reports one expert to Realty Times.

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