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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…

How the Apartment Market is Being Impacted

I read a great story in The Denver Post about the commercial real estate market and I will focus on the apartment market. First, according to Shane Ozment, vice chairman with Newmark Knight Frank Multifamily, “We aren’t see a lot of rent growth anywhere in the metro.” Second, the eviction moratoriums are impacting more severely…

A False Story on Housing Affordability

ATTOM Data Solutions released a scary, but very misleading story last week on housing affordability as they cited that existing median home prices are up 11.4% nationally and wages are not keeping pace with the home price increases. Dear Clueless Ones at ATTOM-THEY NEVER DO!!! And wages don’t need to increase as fast as home…

U.S. Debt has Grown by $4 Trillion This Year

I read that our country’s debt has increased by $4.163 TRILLION in the last year to $26.786 trillion. WOW! We will probably hit $30 trillion next year. Why is this important to us? First, the massive payments on this debt cause budget cuts in other places or should. Second, this much debt crowds out the…

I Don’t Think Mortgage Rates Are GoingAny Lower

Last Wednesday the Fed adjourned from their meeting and they said that they don’t see a change in the Fed Funds Rate until after 2023 and they will maintain an accommodative policy until their inflation target of 2% is reached. Many newspapers and news outlets reported then that mortgage rates will not increase because mortgage…