While the rest of the country is experiencing soaring inventories of unsold homes, Northern Colorado actually has 15.57% fewer homes for sale now than 2 years ago – 4,734 in March ’08 versus 5,607 in March ’06.  A decline in the inventory of unsold homes is an early indicator of a housing recovery – and rising prices.  Other early signs of a housing recovery in Northern Colorado we are seeing incude:

• Residential vacancy rates are dropping;
• Residential rental rates are rising as rental housing gets tighter;
• Rising employment – more than 5,000 more people are employed in Northern Colorado today than 1 year ago;
• New major employment announcements
• And multiple contracts on ‘cream puff’ properties – if it’s sharp and priced right in certain price ranges, it’s gone. 

The oldest law of economics is supply and demand, and right now our region is experiencing a drop in supply and a rise in demand.  Rising residential prices cannot be far behind. 

An economist for a large fund manager recently said, “It is hard to imagine any time in history when such rampant pessimism about the economy has existed with so little evidence of serious trouble.”  Sure, gas prices are through the roof and we have our share of foreclosure properties…..but employers in Northern Colorado are moving forward with plans for a very bright future.

At The Group, Inc.’s 2008 Real Estate Forecast, we conducted a “town hall” electronic survey with approximately 100 decision-makers of the region’s employers.  They were asked questions about their company’s hiring plans and revenue projections for the coming year.  Among the organizations who were invited to participate were Kodak Colorado, Poudre Valley Health System, Colorado State University, Kroll Factual Data, local governments, JBS Swift and Co. and Group Publishing.  Participants represented more than 40,000 of the region’s employees. 

56% said they plan to increase employment in 2008.  43% said they plan for litle or no change.  None of them planned to decrease their workforce.

65% expect revenues to increase in 2008, 7% expect a decrease, and 26% expect little or no change.  1% were unsure.

 The greatest ‘limiter’ to organization’s growth was economic conditions with 60% saying that would have the biggest effect on their growth.  20% cited taxes and government regulations.  12% are challenged by the availability of qualified workers and 8% said the cost of living and transportation and housing would hinder them.