Latest from Blog

All
  • All
  • Housing affordability crisis
  • Local Denver economic news
  • Local Denver real estate news and stats
  • National Economic News
  • National real estate news and stats
  • New construction data and info
  • Uncategorized

What I Learned from Elliot Eisenberg

Elliot spoke last Thursday at SMDRA’s Annual Realtor Appreciation Breakfast and Eliott is one of my favorite national economists. Here is what I learned from him- Manufacturing is currently only 12% of our GDP versus 35% of our GDP over 30 years ago. This is why our economy overall is not in recession even though…

Where Homes Sell for a Premium

Zillow released an intriguing report last week that Aldo Svaldi wrote about in The Denver Post on the percentage of homes that sell for a premium across the country and in metro Denver. Here is what they found- Nationally, in 2019 only 19.9% of homes sold above list price, a 3-year low. The average premium…

Colorado Homes Are 15% More Affordable Now

According to Patti Silverstein, my favorite local economist Colorado ranked #2 in 2019 for wage growth of 4.9%. This puts Colorado median household income at about $75,000 at the end of 2019. Thus, a 4.9% income increase is roughly $300 a month. You couple this fact that mortgage rates are down by 1% from a…

The Power of Money Compounding

I talked to a young couple last week who told me that they wanted to pay down the balance on their mortgage by $100k and then refinance their loan to obtain a lower payment. First, most likely their current loan servicer will allow them to make a principal reduction payment and then re-amortize their loan…

New Home Sales Report

The Denver Business Journal released some key stats from MetroStudy’s 3rd quarter new housing report that I will cover- Builders started 3,437 new homes in the 3rd quarter, up 4% from the 3rd quarter of 2018. From October 1, 2018 through September 30, 2019 builders started 11,538 new homes which is a 11% decline from the previous year.…

Home Inventories Plummet Across Colorado

I read this story in the Denver Post last week about the HUGE declines in homes for sale in many counties across our state according to CAR. Each percentage drop is inventory levels on 12/31/19 versus 12/31/18- Adams County down a whopping 46.9% as there were only 546 properties for sale at the end of…

Why Real Estate Investing Is Better for Us

The S&P 500 has gained 10.6% (total return including dividends) on average annually over the last 50 years (since 1970). For the last 10 years, the S&P 500 is up 13.6% on average annually (total returns including dividends). However, if you missed the 10 best percentage gain DAYS in the last 10 years, your average…

Colorado is 2nd Best State for Retirees

Wallet Hub recently ranked Colorado as the 2nd best state to retire in. Why? They looked at 3 major determining factors: affordability, quality of life, and healthcare and these 3 major factors had a total of 47 separate contributing factors. One factor that really helped our affordability score is our effective tax rate is the ninth-lowest…

How Big New Homes Have Impacted Our RE Market

I read a story from the National Association of Home Builders using Census data found that in 1999 37% of newly built single-family homes in our country had square footage of less than 1800. By 2015, just 21% of new single-family homes were this small. In 2018, 23% of new single-family homes were this small.…

Nearly 7 Million New Jobs in Last 3 Years

The December Jobs Report was released last Friday and the numbers were very close to predictions. Here are the facts- Our economy created 145k jobs last month. The last 2 months’ numbers were revised downward by a combined 14k. The household survey revealed job creation of 267k and the labor force grew by 209k people.…

Why You Should Keep Buying Real Estate

The state demography office is projecting that our state will grow by another 2.4 million people by 2050 in 30 years! And the state is expecting that about 1 million more people will call metro Denver home over the next 30 years. This means developers need to build at least 400k to 500k new housing…

Are Denver Homes Really Unaffordable?

The Denver Business Journal ran a story in December titled “An average worker can’t afford a median-priced home in the Denver metro.” The DBJ quoted a survey done by ATTOM Data Solutions in its 4th quarter U.S. Home Affordability Report. The major FLAW in this report was they assumed that a household only had 1 employed…