BlogColorado HousingEconomics 101EconomyFun FactsHousing TrendsMarket NewsWindsor Real Estate January 29, 2021

Job Bounce

Bounce

“How could the real estate market be so strong in the middle of a pandemic?”

That is a fair question and one we hear frequently from our clients.

There are several reasons for this but two stand out.

  • Interest rates
  • Jobs

Employment has bounced back much quicker than most people expected.  When COVID first showed up, the expectation was that many industries would be hit hard for a prolonged period of time.

The reality is that only a few industries were severely impacted by COVID and the rest were able to get back to a near-normal level of business relatively fast.

Additionally, what we find along the Front Range is that our ‘job bounce’ is even better than the national average.

 

Here are the numbers…

The COVID-peak unemployment rate for the Front Range looked like this:

  • Larimer County = 11.1%
  • Weld County = 10.1%
  • Metro Denver = 12.3%

Today it looks like this:

  • Larimer County = 5.2%
  • Weld County = 5.2%
  • Metro Denver = 6.4%

 

Nationally, unemployment peaked at 14.8% and now stands at 6.7%.

So, a main reason why demand is high now is because jobs have bounced back, and the bounce is even higher than the average across the country.

Appreciation RateBlogColorado Real EstateEconomics 101EconomyFun FactsHome AppreciationMarket NewsNorthern Colorado Real Estate April 5, 2019

Get Real

We’ve seen some headlines recently that suggest home prices along the Front Range have peaked and are starting to decline.

When we dig in and do the research, this is what we find…

Home prices are still going up, just not as fast as they have been.

We’ve known that the double-digit appreciation that we’ve seen for the last several years could not be sustained and we expected the pace of appreciation to slow down.

So far in 2019, this is the case.  Prices still going up, just not as fast.

It’s like running up stairs.  Eventually you will get tired and you will need to start walking (but you’re still going up).

Headlines that suggest that prices have peaked and are falling create unrealistic expectations for buyers and give sellers a skewed perspective on the market.

Here are the numbers…

Average Price:

  • Up 1.53% in Metro Denver
  • Up 6.1% in Larimer County
  • Up 5.1% in Weld County

Months of Inventory:

  • 5 Months in Metro Denver
  • 5 Months in Larimer County
  • 4 Months in Weld County
  • (Remember that 4-6 months of inventory represents a balanced market)

There has been an increase in Days on Market which means that homes are taking longer to sell.  But the increase is measured in days, not months.

Here are those numbers…

Days on Market:

  • Up 4 Days in Metro Denver
  • Up 11 Days in Larimer County
  • Up 3 Days in Weld County

So, be mindful of headlines that can be sensationalized and might suggest that the market is falling.

Bottom line, the market is going up, just not as fast as it was.