Can you feel it? Fall is upon us. Skiers and Riders are on the Arapahoe Basin slopes already! Crazy, where did summer go? So, let’s catch up…
What’s Hot in Denver?
The Denver Metro Area is once again bragging about major employers making their move to Denver. Arrow Electronics and Hitachi said YES to Denver. The Civic Center Park was announced as a National Historic District. The infrastructure of FastTracks continues to grow. The Transportation Center in lower downtown readies itself.
And, how could we forget 71 Million Americans watching the first Presidential Debate at my Alma Matter, the University of Denver. It was recently named one of the top 100 business schools in the world! (There are 13,000 worldwide) Additionally, Arrow Electronics is even already partnering with DU’s School of Engineering!
State, Local and Community budgets have been well supervised during this recessionary period. Our state is ready to rock-n-roll… Sounds too good to be true doesn’t it? But, it’s all true!
My View of What’s trending?
The First Time Buyer and The Value Driven move up/high end buyers are making their move. First time buyers can buy for less than rent. With good credit and a down payment, the choice is an easy one. For the Value Driven High End Buyer, a new price paradigm at the high end is making the decision here an easy one too. Buying below replacement cost and below previous price levels is always attractive for savvy real estate buyer. An area of new activity that was rare in the past, but becoming common place now, the corporate transferee is now a tenant. Uncertain job prospects, the need to be mobile and a market of uncertain real estate values combine to make the “Corporate Gypsy” even easier to move than years past. At the recent Worldwide ERC Fall Sysmoposium, one employer stated that 2 out of 3 of their transferees are renters. The associated costs moving a tenant as compared to a homeowner are considerably less. No loss on sale, etc. Is this a new Mobility Paradigm? Are you mobility ready?
What’s my prediction?
VERY Low interest rates will continue to attract buyers into the market. Credit and Income are the only things holding an avalanche of activity back. This is also attractive to current owners refinancing and consolidating debt. This creates more disposable income long term for homeowners. The threat of higher transportation costs is making consumers aware of transit oriented communities/developments (TOC/TOD). This will have the effect of even higher residential densities within a 7 Minute walk to transit centers.
What have I learned from all this?
The market trend… Currently 30% of Americans own their homes free and clear from any indebtedness. The dream of home ownership is not going away. My office is substantially ahead of last year in number of transactions, average price and total dollar volume. Given right set of circumstances, the preferred residential choice is still ownership for 3 out of 4 households. It’s a great country!
Last but not least…
I can’t thank you enough for my success so far during 2012. The referrals, the support and the kind words have not “fallen on deaf ears”. Thank you, thank you and thank you! I couldn’t do it without you!
My greatest reward in business this year, however, really has to be the personal gratification received from assisting my Son and Daughter into their first homes. Less than 1 mile from each other, they are not neighbors, but an easy walk across a golf course will keep them close for years to come.
With my last one graduating from DU in the spring, I look forward to observing what the future has in store for this earth roaming young adult.
How much fun is this? Dee and I couldn’t be more proud of all three of them! We are, truly blessed!