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Blog Entry 1 of 10 Driving Denver's REALestate Market
I'm the President of Colorado HomeFinder,and an experienced RE/MAX REALTOR. I am a certified e-PRO, a member of the RE/MAX Hall of Fame, and a member of the RE/MAX Chairman's Club. Thousands of home buyers and sellers use our site every day, checking out our Google maps of over 45,000 properties for sale along the Front Range. Because of this large number of visitors, our website basically acts like a thermometer, constantly taking the temperature of the Colorado real estate market. I decided it might be fun to share some of the market insight, trends,and data generated by www.COhomefinder.com with the YourHub community. Real estate is a fascinating subject and seems to be on everyone's minds these days. No doubt,there is quite a bit of contradictory information, speculation, and downright misinformation out there about the real estate markets, so I may as well join the fray!

Blog Url: http://denver.yourhub.com/~ColoradoHomes

FUD (Fear, Uncertainty, & Doubt) Rule the Market
Contributed by: Lane Hornung   on 7/5/2006

Is the Real Estate Bubble Bursting?

Well, if you've picked up a paper lately, tuned into the tv or radio, or simply walked down the street, you've probably heard that the bubble is bursting, or at least slowly leaking.

That may in fact be the case on a national level, but for the record, Colorado never experienced the so-called real estate bubble in the first place, so it's hard to burst a bubble that never existed.

So what is really happening?

What I see in the market is a lot of "freaked out" buyers....they've been listening to all these news reports about the bubble bursting, and they don't want it to pop in their face just as they buy a home.

Certainly the foreclosure data a few weeks back bestowing Colorado with the dubious honor of having the highest per capita foreclosure rate was not all that encouraging forprospective buyers. However, foreclosures are a classic lagging indicator....most of these foreclosures were created months, if not years, ago when folks bought a home (often a new home), had a financial set back like loosing a job, and then held on as long as they possible could until finally throwing in the towel and going into foreclosure.

So what is a LEADING indicator for the real estate market in Colorado?

Job growth and unemployment numbers. When folks get jobs, or pay raises, or promotions, they buy houses.....plain and simple! Job growth is the number one determinant of the demand side of the real estate market equation (yes, even more important than interest rates, which are still quite reasonable).

So how does Colorado's job growth picture look?

In a word- GREAT!

State-wide, we're down to 4.5% unemployment from 5.2% last year, and below the 4.6 National average.
More details at:
http://www.rockymountainnews.com/drmn/other_business/article/0,2777,DRMN_23916_4781946,00.html

Conclusions

The "smart money" in any market looks to where the market is going, not where the market has been. In the case of Colorado real estate, I would keep my eye on the job growth numbers and wouldn't worry too much about where the crowd is headed.

Check out the market for yourself at Colorado HomeFinder, the state's most popular real estate website.


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CONTRIBUTOR INFORMATION

Lane Hornung

Denver , CO

Lane Hornung has posted 10 blog entries and 0 comments since joining on 6/17/2006. Lane Hornung 's average blog rating is 0.
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