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Will Mortgage Rates Top 4% Next Year?
The Mortgage Bankers Association released their Economic Forecast for the next 3 years. They see inflation doubling in 2021 from this year with an annualized inflation rate of 2.7% in 2021. However, they only see mortgage rates rising by 0.30% to an average rate of 3.3% for next year. I totally disagree. If inflation averages…
How to Create a Pension for the 21st Century
The stock market has experienced 3 plunges of over 30% in this century already. If you or your clients are fed up with the volatility in the stock market then this class is for you. I am more convinced than ever that real estate is where we need to be investing our hard-earned Dollars. Plus,…
Why New Home Construction is Slowing
I read a story from Bloomberg News on how and why some home builders are actually SLOWING DOWN the construction of new homes. Why? Builders are struggling with supply shortages, surging lumber costs that have increased by nearly 150% in the past year, and intense competition for labor and land. Gene Myers, CEO of Thrive…
This Will Cause More People to Move to Colorado
The U.S. News and World Report released its annual Best Places to Live rankings last week and 4 of the 5 top cities are in Colorado as follows–#1-Boulder, #2-Denver, #4-CO Springs, and #5-Ft. Collins. They analyzed the 150 most populous metro areas and ranked them on multiple factors such as the market, housing affordability, quality…
A Sign that Our Economy is Stronger than Thought
Retail sales in September rose 1.9% and sales are up a large 5.4% versus a year ago. Excluding auto sales, sales still rose 1.5% last month and these sales are up 4% year over year. Second, Retail sales from February to April dropped 21.7%; but sales in September were 4.2% higher than they were in…
1031 Exchanges Are in Grave Danger
Democrat Presidential candidate Biden wants to eliminate 1031 Exchanges for investors who have taxable income above $400k; but if this “taxable” income includes their capital gains and depreciation recapture tax on these exchanges we will see 1031 Exchanges plummet I am afraid. And this will further reduce the supply of homes for sale, causing home…
Will Downtown Denver RE Drop in Value?
I read recently that 81,000 young adults aged 25 to 39 left cities of greater than 500k residents and moved to the suburbs between 2017 and 2018 according to the U.S. Census Bureau. Second, according to NAR’s 2020 Home Buyer and Seller Generational Trends Report, 53% of home buyers in their thirties bought a home…
Over 90% of People Will Work from Home
A recent survey by Cisco of 1,569 business executives and others responsible for employee work environments in the post-COVID era concluded that working from home is the “new normal” with over 90% of respondents saying they won’t return to the office full time even after the pandemic is over. WOW!!! What does this mean for…
Here is the September 7-county MLS Sales Report courtesy of REColorado and SMDRA.
• 6,187 properties exchanged hands last month, this was a 25.3% increase from last September and a whopping increase of 44% from October 2018. • Closings for both detached and attached homes were both up roughly 25% last month year over year. • Homeowners listed 6,439 new properties for sale last month, an increase of…
How the Fed Could Create Inflation
As I have been writing for weeks the Fed wants inflation to average 2% over an unspecified long period of time. And for the last 10 year inflation as measured by the PCE, the Fed’s favorite measure of inflation, has averaged just 1.5%. Thus, will the Fed allow inflation to hit 2.50% for 10 years?…
3 Key Sources of Housing Demand
This year 3 KEY sources of demand have been driving housing to record new heights. The biggest source is demographics as more and more Millennials turn 30 and start buying homes. Currently, the homeownership rate for people under 35 is only about 40% compared to 64% for adults aged 35-44. This will cause housing demand…
“Tragic Effects” of Covid
Fed Chairman Powell spoke at the National Association of Business Economics on Tuesday with a very dire message that a resurgence of Covid could have “tragic effects” on the health of Americans and the economy. He also strongly recommended that people wear facemasks and practice social distancing. Chairman Powell also urged Congress to pass additional…
