Real Estate Market in Northern Colorado
Ardin Wright assumed the role of Ron Clark last week, and only the very astute observer could tell the difference.
GUESTS
Doug Couse with Bank of Choice who has voiced an interest in joining the club, Shannon Spangler (should be a member shortly), and Brad Pietsch.
ANNOUNCEMENTS
Ardin reminded everyone that next week, there will be no regular club meeting. As it is a month with five Thursdays, we will be having a "Spouse's Night" at President Ron Clark's House.
PROGRAM
Dan Leuschen and Steve Kawulok provided the program about the status of Real Estate Market in Northern Colorado. Dan passed out some interesting literature and statistics.
Kawulok said that new residential sales are down between 8 and 10 percent; whereas, new construction is down about 20% from last year. Condos and attached units are off 50%. There is currently between 8 and 12 months of new construction in inventory. Ideally, this number should be about six months which is the average time to construct a house.
One of the problems is affordability. The rise in interest rates has changed the market. For each one percent change in the interest rate, it reflects a 1-% change in what you can borrow... The interest rates in 2004-05 were at historic lows which allowed many first time home buyers to qualify and pushed the cycle. It took many renters out of apartments and put them in new homes.
Steve also told us that one third of the new construction contracts nationwide are failing, but he thinks today's market challenges are just a hiccup in the overall health of the real estate market. Part of this is based on projected growth in the area which predicts an increase of 225,000 people in the area in the next 20 years. Windsor, he says, is at the apex of this growth. He pointed out that after the Money Magazine article about Ft. Collins being the most livable city, the phones rank, and the internet hits spiked.
Kawulok had some recommendations for his clients:
Ryan Airlines Co. built the Spirit of St. Louis. Incidentally, the plane was called the Ryan NYP (New York to Paris).
NEXT QUESTION
Who owns Antarctica?
GUESTS
Doug Couse with Bank of Choice who has voiced an interest in joining the club, Shannon Spangler (should be a member shortly), and Brad Pietsch.
ANNOUNCEMENTS
Ardin reminded everyone that next week, there will be no regular club meeting. As it is a month with five Thursdays, we will be having a "Spouse's Night" at President Ron Clark's House.
PROGRAM
Dan Leuschen and Steve Kawulok provided the program about the status of Real Estate Market in Northern Colorado. Dan passed out some interesting literature and statistics.
Kawulok said that new residential sales are down between 8 and 10 percent; whereas, new construction is down about 20% from last year. Condos and attached units are off 50%. There is currently between 8 and 12 months of new construction in inventory. Ideally, this number should be about six months which is the average time to construct a house.
One of the problems is affordability. The rise in interest rates has changed the market. For each one percent change in the interest rate, it reflects a 1-% change in what you can borrow... The interest rates in 2004-05 were at historic lows which allowed many first time home buyers to qualify and pushed the cycle. It took many renters out of apartments and put them in new homes.
Steve also told us that one third of the new construction contracts nationwide are failing, but he thinks today's market challenges are just a hiccup in the overall health of the real estate market. Part of this is based on projected growth in the area which predicts an increase of 225,000 people in the area in the next 20 years. Windsor, he says, is at the apex of this growth. He pointed out that after the Money Magazine article about Ft. Collins being the most livable city, the phones rank, and the internet hits spiked.
Kawulok had some recommendations for his clients:
- Sell of excess inventory
- Don't open up too many lots at one time
- Differentiate your project
- Resale homes compete with new homes, so prepare and update the used home accordingly
Ryan Airlines Co. built the Spirit of St. Louis. Incidentally, the plane was called the Ryan NYP (New York to Paris).
NEXT QUESTION
Who owns Antarctica?
posted by Windsor Rotary Club (link to this post)
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