Thursday, March 16, 2006
Denver in an Oil BOOM????
Denver Market AN OIL BOOM?
From what I can see, all the indicators are there for an Oil & Gas Industry boom in the Denver area. The last time this started, in 1978, the price of oil was going through the roof at about $15.00 per barrel. Economic conditions called for a minimum of $10 - $12 per barrel. Today, standard thought is that economics require $30 plus per barrel and we are at about $42 sustained (if you did not know I have some past experience as a landman in O&G and was buying a house here in 1978). So companies are hiring and drilling. Downtown Denver is starting to become a hub once again for the oil & gas industry as those in charge can again justify having offices here.
Our real estate prices will start to reflect this soon. We saw a slight increase in homes sold in February over last year. And there were fewer coming on the market. Both very good signs for the ealy bird.
Take a look at the trends in the above charts. And note something else unique to this time of year: the number of out of town license plates. What are they doing here in March? Our high time for driving vacations is the summer, not spring. Hmmm? Tangible? Hard to say. One other thing to watch: the number of help wanted signs you see.
We are right at the edge. Get in early!
Highlands Ranch, Littleton, Centennial, Englewood and metro Denver, Colorado real estate information is available at www.DenverRelocation.com including searches for properties and homes.