Decline of Unsold Homes Is An Early Sign of Housing Recovery

While the rest of the country is experiencing soaring inventories of unsold homes, Northern Colorado actually has 15.57% fewer homes for sale now than 2 years ago - 4,734 in March ‘08 versus 5,607 in March ‘06.  A decline in the inventory of unsold homes is an early indicator of a housing recovery - and rising prices.  Other early signs of a housing recovery in Northern Colorado we are seeing incude:

• Residential vacancy rates are dropping;
• Residential rental rates are rising as rental housing gets tighter;
• Rising employment - more than 5,000 more people are employed in Northern Colorado today than 1 year ago;
• New major employment announcements
• And multiple contracts on ‘cream puff’ properties - if it’s sharp and priced right in certain price ranges, it’s gone. 

The oldest law of economics is supply and demand, and right now our region is experiencing a drop in supply and a rise in demand.  Rising residential prices cannot be far behind.