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Denver Home Prices Could Rise 5% in Next Year

My Observations and Thoughts— The number of new listings is basically flat over the last 2 years. Whereas, earlier this year the number of new listings was still increasing year over year. This is no longer happening. Under contracts increased a whopping 23% last month after rising 16% in August!!! Buyer demand is GROWING! This…

This Metric Tells Me Higher Home Prices Are Coming Soon

Here is some year to date data. Even with an increase in supply demand is rising as measured by under contracts. New listings have totaled 54,530 this year, an increase of 4.7% over a year ago and the highest number of new listings in the last 5 years. Under contracts have totaled 44,981 this year,…

Denver Home Prices Are Rising Faster Now

Here is the latest 7 county data for September courtesy of SMDRA. We as the SMDRA Stats Committee purposed don’t count Boulder, Park, and Clear Creek counties in our report unlike DMAR. Second, we purposedly pull the data on the 4th business day of the month. Why? Real estate agents are required to post all…

Is Rent Control Coming to Colorado?

Last week California’s legislature passed Measure AB 1482 that imposes rent control across their vast state. Rent will not be allowed to increase by more than 5% annually plus inflation. But, this legislation did include exemptions for single family homes and condos. However, the bill did nothing to increase the supply of affordable housing. Whoops!…

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…