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.