Northern Colorado Economic Snapshot - April '12

With the arrival of spring there appears to be a ray of sunshine for the Northern Colorado real estate market. Attractive mortgage interest rates and a lack of available inventory have fueled buyer interest. Multiple offers and some homes selling for more than the list value have once again surfaced.

For the Northern Colorado real estate market, through March/2012 single family homes sales are UP approximately 14% year-to-date versus 2011; attached unit sales are UP approximately 25% year-to-date versus 2011; the overall market being UP approximately 15% year-to-date versus 2011.
Below are some sold numbers for single-family homes and attached units for various geographic areas throughout Northern Colorado. Information is courtesy of IRES (the Northern Colorado MLS).

Despite the ray of sunlight on the horizon, the real estate market isn’t out of the woods quite yet. Here are some factors from the April/2012 issue of RISMedia’s Real Estate Newsletter that may have an impact on real estate.

• The Election: This is an election year and election years have a tendency to create havoc in the financial markets.
• The Job Market: The overall employment picture is improving, but the pace and direction it takes is critical to the housing market.
• The Weather: Did the calm winter rob sales from the spring and summer and frontload stats for 2012?
• The Banks: Credit standards have strangled many would-be homebuyers. If and how much the criteria loosens this year will have a direct impact on housing.
• The Investors: Many feel investors will play a big role this year. Their impact on decreasing excess inventory could provide an unanticipated boost to home values.
• The Renters: A big benefactor of the housing decline, the rental market has been booming. However, recent stats show that rising rents combined with low home prices has now made owning a home more affordable than renting one.