Monday, April 03, 2006

Economic Evidence Piles UP!

Last week the Colorado daily papers jumped on the employment rate news and the fact that Colorado has one of the lowest un-employment rates in the country. Boy , does that remind me of the heady days of the oil boom, and the dot com boom. Lets couple that news with the drop in personal bankruptcies reported later in the week! How is it possible that foreclosures hit a record in Denver in the first quarter????

Well, 2 theories from me anyway. The first is this: GOOD NEWS DOES NOT SELL PAPERS or ADVERTISING. Is anyone out there surprised? I know I am regularly seeing the dredge the main stream press and journalists feed me, because if I do not fear what they have to say, I won't read and absorb their columns, then they won't sell as many papers or adverts on the TV.
2nd is this: At the end of 2005 nationally there was a run at personal bankruptcy as the laws had changed, credit card agreements were modified and there was a blood letting of everyone getting in before they lost their opportunity! This carried over to not making house payments and of course that means folks would be getting foreclosed upon.

The Denver Colorado Real Estate market, and especially areas like Highlands Ranch, Littleton, Lone Tree Centennial and Greenwood Village Colorado, while not immune to this rash of foreclosures seemed to have weathered the storm fairly well, and we are now poised for a dramatic up swing in values. Weathering this kind of storm is in large part due to owners who simply would not accept less than what they thought their home was worth, and taking it off the market. Sellers generally respond more slowly to downward market pressures than say a buyer would, and resist price reductions unless absolutely required.

Other recent news that should buoy the Denver housing market is the rental vacancy rates are down, rental rates are stable if not up, the office market seems to have bounced off the bottom with a lower vacancy rate than last year, and fewer subleases available, and finally the job picture. I had a client move here in December and her spouse was an IT professional with no job in Denver. Yesterday I learned he found an IT job! 3 years ago there were not any of those to be found! Evidently there are some out there now. Add that to the minerals and oil & gas industry boom going on on the west slope with the prices of natural gas and crude oil going up, and Colorado's economic future looks bright!

Highlands Ranch, Littleton, Centennial, Englewood, Centennial, Lone Tree, Parker, Castle Rock, Greenwood Village, CHerry Hills Village, Denver Tech Center, DTC, Denver, Colorado real estate property listings is available at including Denver MLS searches, for properties land Townhomes Condominiums and horse properties, gated communities, golf course homes and single family home listings.

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