Real Estate News: Investing in Colorado Properties
Happy New Year! We’re only in the first month of 2016 and the real estate market is continuing to look promising.
As I have mentioned in the past, Colorado has become quite the epicenter for new residents especially for millennials. It’s no denying that our neighborhoods take care of the residents, we host great events, we’re an active state and new builds have been sprouting through the city accommodating residential growth.
Another important fact we haven’t touched on is our low percentage of unemployment rate. In fact, because of the thriving job market in our state, many new residents flock to our state to build a career and/or build a family. Let’s dive into the statistics.
Colorado’s unemployment rate dipped in November 2015 to 3.6 percent – the lowest rate since June 2007. It’s also well below the national unemployment rate of 5 percent. A year earlier, Colorado’s unemployment rate was 4.3 percent. During the Great Recession, the jobless rate peaked at 8.9 percent in September and October 2010 and above 8 percent from September 2009 through February 2012. So we’re doing pretty good in the job front.
With the growing number of residents, our housing supply continues to be low and more importantly price appreciation is predicted to increase 6 to 8 percent in 2016 – great news for sellers!
On the other hand, several real estate professionals have observed that one of our biggest concerns facing our state is the need for affordable housing with a shortage of homes below $300,000. It’s not a major deterrent for potential buyers including younger buyers but it’s something to pay attention to.
Those who are deterred by the increase in housing prices have turned their attention to condos. However, some condos are below $300,000, prices have jumped +15% in 2015 and will continue to increase well into 2016.
Walter Isenberg, head of Denver-based Sage Hospitality, a hotel developer and investors, said construction defect regulations must be reformed, so builders can afford to bring much-needed entry-level condos to the market.
Housing prices may have increased but mortgage rates are still an on time low so if you’re looking to buy (and sell!), contact me for a thorough market analysis!