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Buyer Demand Increases 16%!

Here are the stats and facts from the 7 county MLS report courtesy of SMDRA— Buyers closed on 5,138 homes and condos last month, which is down 1.4% from a year ago. 6,182 homeowners newly listed their homes for sale last month. This was a small 1.8% increase from last August. Buyers placed 5,365 homes…

Alan Greenspan Believes Negative Rates Are Coming To the U.S.

Alan Greenspan in an interview with CNBC last week had several insightful things to say— “You’re seeing it pretty much throughout the world. It’s only a matter of time before it’s more in the U.S.” What’s the “it” he is referring to? Negative interest rates. On whether-or-not we have a recession will be up to…

2 More Experts Say Dropping Mortgage Rates Will Cause Home Prices to Rise Faster

CoreLogic announced last week a new prediction for how much home prices will rise over the next 12 months. As of July home prices nationally had risen 3.6% over the previous 12 months. They are now predicting that home prices will increase by 5.4% nationally from July 2019 to July 2020. Why? Lower mortgage rates…

Want to be Happier? Buy a Home

Bank of America recently released a survey of 2,500 Americans and how they FEEL about homeownership. The numbers are staggering in favor of homeownership! Homeowners were asked “Does owning a home make you happier than renting?” An astounding 93% said YES! More than 80% of them said they wouldn’t go back to renting. 88% of…

“The Disaster of Negative Interest Rate Policy”

I read a great article written by Dr. Thorsten Polleit, Chief Economist of Degussa and macro-economic advisor to the P&R Real Value Fund in Europe. Here are some “high”lights from his article— It appears the ECB, European Central Bank will lower rates further into the negatives this month. Negative interest rates are highly attractive to…

Are Baby Boomers the Cause for Our Lack of Housing Inventory?

According to First American, “Existing home sales make up approximately 90% of all home sales, which means existing homeowners must sell their homes in order for homes to be available for sale.” Next, in July they noted America’s tenure length in their homes increased by 11% from a year earlier. This is equal to a…

My Solution for More Affordable Housing

Nationally home builders started 876k single family homes in 2018, down from 1.72 million in 2005, the peak year for construction of new homes. New housing starts are down 49% from 2005! Why? According to the National Home Builders Association home builders have 404k job open as of April. The slow pace of new construction…

New Housing Permits Down Nearly 20%

The Leeds School of Business at CU-Boulder released their mid-year economic update last week. Here are the highlights for our state and these numbers are through May— New single-family housing permits are down a whopping 18.4% year over year. Multifamily housing permits are down an amazing 30.3% year over year. CO employment growth is down…

5 Reasons Why Housing Will Remain Strong

I read a great article at the Colorado Real Estate Journal last week written by David Potarf, Executive Vice President of CBRE Capital Markets. He cited several reasons why he believes our real estate market still has many good years left in our boom— Housing formation is running about 26k units a year and we…

Will the Fed Continue to Cut Rates?

The Fed’s Meeting Minutes from July were released last week and they revealed the 3 reasons the Fed lowered short-term rates. First, because growth is slowing down due to the trade war. Second, inflation is running below their target rate which it has been for 11 years. Maybe they need to lower their target rate…

How do Recessions Impact Housing?

Some of you have told me that your buyers are concerned with how a recession might impact the housing market. ATTOM Data Solutions, a leading real estate data provider reviewed the impact of the last 5 recessions on the nation’s housing market. Three times home prices continued to increase and only twice did home prices…

Is This a Sign of a Coming Recession?

Two weeks ago the Treasury market officially Inverted when the 10 year yield dropped below the 2 year yield. This has happened 9 times in the last 70 years and each time a recession occurred in the near future, anywhere from 6 to 22 months later. Thus, even more people are predicting a recession soon.…