Is Colorado heading into a real estate bubble?
Is Colorado heading into a real estate bubble? That’s the question I’ve been asking myself for several weeks now. When properties sell in just weeks for more then the asking price, I begin to wonder. When there are multiple offers above list price on any property below $250k, I start to wonder.
There are some reasons for it. Three quickly come to mind. Interest rates are still very low. That is the fuel that runs the whole economy. If interest rates go up, then everything else will slow down; especially the real estate market and the stock market. I’ve heard rumors of interest rates going up at the end of the summer, but the Fed has been “threatening” to raise rates for some time now. But the economy is in such a fragile place, that they can’t bring themselves to do anything.
Secondly, builders stopped building during the real estate crash of 2008. This has caused a shortage of housing in the market. In the last couple of years, they have started building and now, many of those developments are coming available. But builders are still behind on building new homes, especially lower priced homes.
Lastly, there has been a population boom in Colorado due to a strong economy. We have oil and gas, gold and silver, agriculture and ranching, plus high tech companies and government contractors. So Colorado’s economy is diverse and healthy. Plus we have the influx from legalized weed.
There are many good reasons for the real estate market to be as excited as it is. But also many reasons to be nervous. As more and more builders finish up the major projects that are going on around the area, the housing supply will catch up to the demand. And if interest rates were to go up, even a little, that would take the steam out of the market.
So, what does this mean to you? If you have been thinking of selling, now is a good time to do it. If you have been thinking about buying, yes, housing prices are up, but interest rates are way down, so you can lock in a low monthly mortgage payment and not worry about the short-term real estate market values. If you have a property, now would be a good time to re-finance to lock in those great rates. If you are thinking of buying a long term rental property, your best opportunities may have past, but keep your eyes open. Yes, there are still good deals to be found. There are also many fix and flip opportunities still out there.
Do You Need A Property Manager?
I would recommend hiring a property manager if you can relate to any of the following statements:
- You live further than a couple of miles away from your rental property.
- You’ve tried managing properties yourself and you’ve had it!
- You’re tired of having to collect rents and deal with tenant calls and complaints.
- You don’t have the time to deal with tasks related to your rental property.
- You don’t want to make yourself constantly available in case of emergency.
- You stay frustrated because you can’t find/keep good reliable maintenance help.
- You’ve grown and own more properties than you can handle all by yourself.
- Your ready for a break or a vacation.
If you can relate to any one of the above statements, you may want to get help from a professional property manager. I can help.
Can We Partner On a Property?
I am looking for more properties to buy, for both myself and for others. If you know of a vacant property in your neighborhood, a bank-owned or pre-foreclosure, a For Sale By Owner or know of someone looking to sell a home; please let me know. We can partner on the purchase. I get more leads and you get cash; it’s win-win.
If you or a friend are interested in investing; either time or money, I can help. You can even use an IRA to invest.
Wondering How Much Your Home Is Worth?
If you’re wondering what’s happening to prices in your area, or you’re thinking about selling your house, I can help. Give my office a call for a no-fuss, professional evaluation. I won’t try to push you into listing with me or waste your time. I’ll just give you the honest facts about your home and its value. And maybe I’ll also give you the “inside scoop” on what’s happening in the housing market near where you live! Just give my office a call or reply to this email to arrange an appointment.
As always, I hope that you have learned something new today. If so, please share this newsletter with a friend. If there is anything that I can do to help you or a friend, please let me know.
Richard Davis, managing broker
RD Realty, LLC