Wednesday, June 07, 2006

Rental Vacancies down! The glass is more than half full!

Last week the Rocky Mountain News reported, under a small interior article and headline that single family rental vacancies were down to 4.9%, the lowest in quite a while. The article states that foreclosures and rising interest rates have caused the rentals to be absorbed more quickly and therefore increase the demand for housing. The article can be viewed at

In another article the headline points to the fact that foreclosures are up again and in the 2nd paragraph notes that they are only a fraction of the rate in 1988 nearly 20 years ago, and a sizable difference in the metro area population. This article can be seen at

How serious is the foreclosure issue and how much effect does it have on our market?

The truth of the matter is that those folks who qualify for a loan based upon 2 incomes, and then lose one of those, even for a short period during a layoff, may never be able to recover. That and the liberal lending with 100% financing, and a "soft market" since their purchase (we did go through a mild recession here since July 2001) they may elect to just walk away. Finances are certainly one of the most stressful portions of any relationship, and more than one marriage has failed as a result of not careful planning.

So, I take these 2 articles for very positive indicators, in spite of the headlines, that the Denver Real Estate market is, not booming, but certainly poised for tremendous growth between 5-8% this year 2006. Steady and slow sometimes is better than volatile and fast. What goes up fast requires the desire to absorb risk. Denver has not been a really risky market due to the mid-western nature of our populace.

Highlands Ranch, Littleton, Centennial, Englewood and metro Denver, Colorado real estate information is available at including searches for properties and homes.

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