Rent control ordinance passed in Colorado; Cities scramble to implement, Affordable housing declines, Who pays?
It is no secret that rent in Denver and throughout the state has increased. A…
Wow, what a wild ride Colorado real estate has been on the last year. The statistics are astounding! Denver county average sales price is up almost 30% year over year while days on the market has plummeted 40%. In the mountains, in places like Summit County prices are up 43% year over year. What happens to Colorado real estate when the pandemic trade reverses? With these off the chart numbers, where does Colorado real estate go from here?
Wow, what a wild ride it has been in real estate. Who could have predicted the huge rush into real estate in the last year. The huge jump in prices are not limited to Denver or the ski resorts. Even areas like Montrose have gotten into the game with prices up 26% over the last year. In essence the entire state from the rural markets to the ski resorts and downturn Denver have excelled during the pandemic
It is not possible to continue the eye-popping appreciation throughout Colorado for one simple reason. Incomes are not keeping up with appreciation. At some point people do not have enough income to afford the high costs of housing. Furthermore, as the pandemic resides old habits will be hard to break. What does this mean for Colorado? In a nutshell the market will begin to change as the pandemic trade reverses. I think it is important to look at three groups of markets in Colorado, The Denver front range, Resort Communities, and then the more rural areas/ exurbs. Each will react differently in the coming twelve months.
In a survey of more than 350 CEOs and human resources and finance leaders, 70% said they plan to have employees back in the office by the fall of this year, according to a report by staffing firm LaSalle Network. “I think every office will have re-entry done by Labor Day,” said LaSalle Network’s founder and CEO, Tom Gimbel. The pandemic is coming to an end and the wild ride in appreciation will wane over the next year with some rural/exurban markets at risk of a correction. What are your predictions for Colorado real estate and the reversal of the work from home trend?
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Written by Glen Weinberg, COO/ VP Fairview Commercial Lending. Glen has been published as an expert in hard money lending, real estate valuation, financing, and various other real estate topics in Bloomberg, Businessweek ,the Colorado Real Estate Journal, National Association of Realtors Magazine, The Real Deal real estate news, the CO Biz Magazine, The Denver Post, The Scotsman mortgage broker guide, Mortgage Professional America and various other national publications.
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