Home Construction Not Keeping Up with Job Growth

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Sep 202016
 

We argued in an August post that the collapse of new construction during the recession. and its failure to recover to pre-recession levels, has been a major contributor to the supply/demand imbalance that is pushing prices up in the Boulder/Denver markets. This morning, an article in the Denver Post argues that new construction over the past […]

Picking the Best Investment as a Residential Buyer

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Aug 302016
 

In a recent post, we presented some data on a gap that opened up between 2002 and 2010 between condo/townhome prices and prices for small single family homes…and then noted that this gap had narrowed substantially in most local communities over the past few years.  For many buyers, this raises this question:  Had you recognized […]

Speed of Sale Data Reflect Nightmare Market for Buyers

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Aug 302016
 
Speed of Sale Data Reflect Nightmare Market for Buyers

We have lots of detailed data on the web site tracking how quickly properties go under contract once they’re listed on the MLS.  These data, which  show what percentage of listed properties go under contract within 5 days of listing and within 14 days of listing, give us a very good measure of the intensity […]

Peak Pressure on the Market: What Time of Year?

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Aug 292016
 
Peak Pressure on the Market: What Time of Year?

Since 2013, we’ve had more buyers than sellers in our market, resulting in multiple offers on many listed properties and rapidly rising prices.  While there has been some variation from year to year, our experience is that buyers are facing the most intense competition for properties between mid-January and June, and that the market has […]

Affordable Condos Drop out of Mix in New Construction

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Aug 262016
 
Affordable Condos Drop out of Mix in New Construction

For the past 4 years, the Colorado legislature has considered legislation that would reduce make it more difficult for condo owners or HOAs to sue builders for construction defects.  This is a response to legislation that facilitated such lawsuits, and claims that builders have effectively quit building condos because that legislation increased liability as well […]

Drop in New Construction: Major Factor in Tight Market

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Aug 262016
 
Drop in New Construction: Major Factor in Tight Market

Anyone who’s tried to buy a home in the Denver/Boulder region since March of 2013 knows that there are more buyers in this market than there are homes to buy.  There are a number of factors contributing to this, but the collapse in the building of new homes during the recession certainly contributed.  The chart […]

When Do Price Increases Occur?

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Aug 242016
 
When Do Price Increases Occur?

When deciding when to buy a home, its not uncommon for buyers to start up a year earlier than they’d otherwise like to when they’re in a market where prices are rising quickly.  Why wait a year to buy when 10% price increases could make a $400,000 house cost $440,000 by next year…or make me […]

Investment Properties

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Aug 242016
 

U.S. homeownership rates hit their lowest percentage on record in July at 62.9%. The major contributing factor in the low mark is millennials waiting longer to purchase their first home when compared to previous generations. Increased student debt, delays in marriage, waiting to have children and rising prices are all weighing on the younger demographic. […]

Hints of Some Improvement in Housing Inventory

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Aug 242016
 
Hints of Some Improvement in Housing Inventory

Low inventories of homes for sale are combining with high rents and increasing populations to drive up housing prices in Boulder County and the Denver Metro area.  During the recession, the number of new listings and the number of houses on the market (inventory levels) dropped dramatically.  At the time, we assumed that inventories would […]

Historic Low Interest Rates Facilitate Price Increases

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Aug 222016
 
Historic Low Interest Rates Facilitate Price Increases

Interest rates are probably supporting the current price increases in our housing market, since they remain at or near historic lows, with 30 year rates at about 3.75% and 15 year rates at around 3%.    These rates have held in this range for almost 5 years now, bumping up about 1/4 point in 2014. […]