Northern Colorado Economic Snapshot - July '11

Since late 2005, there has been an on-going discussion and debate in the economic and governmental arenas about the state of the national real estate market. Most of it hasn’t been pleasant. When something positive does surface i.e. home sales are improving, home values have stabilized, etc. it can be viewed from the perspective that the real estate market is beginning to shift. The days of doom and gloom are behind us. Sunny days are the new norm.

Real estate markets have traditionally followed that scenario. They bottom-out at some point and then begin the arduous task of righting themselves and slowly (very slowly) gaining momentum. Buyers are once again actively engaged in the process. Sellers are once more receiving reasonable value for their homes. Realtors, mortgage lenders, appraisers, home inspectors and insurance companies feel the impact of the change. New home construction gears-up. The sound of hammers, saws and “boom boxes” once again fill the air.

The real estate market we have been experiencing for the past five or six years is slightly different. At times it offers the promise of a renewed enthusiasm. At others not so much. If you follow the stock market, it’s a roller coaster. One day it’s up based on some newly published economic index. The next day it’s down based on some foreign country threatening to default on their loans. The housing market can feel much the same.

According to MetroList (MLS), real estate contracts for the Denver Metro area written in June/2011 are up 22.5% compared to June/2010. That’s a positive. Available homes for sale in June/2011 are down 15.7% compared to June/2010. That’s a positive. More sales; less inventory; scarcity creates demand.

The hope is the Denver Metro/Boulder Valley/Northern Colorado real estate market will sustain itself through the balance of the summer and into the fall. That home buyers and investors will see this as an opportune time to buy. Sellers will view this as a favorable time to move-up, move-down or move-on.

Click here for a brief overview of the housing market in the Northern Colorado (Ft. Collins, Greeley, Loveland & Windsor) area for single family homes from IRES. Through June/2011 there have been 2,213 single family home sales as compared to 2,502 through June/2010 for Northern Colorado. That equates to an approximate 12% decline in the number of sales.