The shortage of homes for sale has been a major concern for buyers and real estate agents over the last few years. Windermere Chief Economist, Matthew Gardner, explains the impact these shortages are having on the housing market.
Because our Northern Colorado market has been so active over the last four years, clients often ask us if we think there is a housing bubble forming.
There are several key statistics which we track closely in order to answer that question.
Here is one fact that we find to be insightful…
One of the root causes of the last housing bubble was the glut of inventory, and specifically new home inventory. Quite simply, the market was being oversupplied with new homes. The rules of economics say when there is oversupply, prices must come down.
Today, there are far fewer new home starts compared to 2004 and 2005 when the last bubble was forming – despite there being a larger population.
According to our friends at Metrostudy who track the new home market, Northern Colorado has had 4,452 new home starts in the last 12 months.
That number is only 60% of what it was at the height of construction in early 2005.
It is also interesting to note that over the last 12 months there have been 4,473 new home closings which shows that demand is keeping up with supply.
So when you drive around Northern Colorado and notice all the new homes being built, know that construction activity is far less than what is was during the bubble and that demand is keeping up with supply.
In case you missed our annual real estate Forecast event, you can reach out to us to see the presentation slides or receive a video recap of the information. Just email us at firstname.lastname@example.org
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- Colorado Real Estate Market Update July 27, 2020The following analysis of the Metro Denver & Northern Colorado real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere […]
- Matthew Gardner Weekly COVID-19 Housing & Economic Update: 7/6/2020 July 6, 2020On this week’s episode of “Mondays with Matthew”, Matthew Gardner discusses what is needed to motivate more Millennials to buy and the important role they play in the long-term health of the US housing market. The post Matthew Gardner Weekly COVID-19 Housing & Economic Update: 7/6/2020 appeared first on Windermere Colorado REALTORS.
- Matthew Gardner Weekly COVID-19 Housing & Economic Update: 6/29/2020 June 29, 2020On this week’s episode of “Mondays with Matthew,” Matthew Gardner discusses housing affordability and how he believes that despite the impact of COVID-19, affordability issues will remain and may actually get worse as we move forward. The post Matthew Gardner Weekly COVID-19 Housing & Economic Update: 6/29/2020 appeared first on Windermere Colorado REALTORS.