Offered by: Jan Hepp-Struck, Hepp Realty
Some might say we are in the midst of navigating some unchartered waters on the current real estate horizon. While some patterns are certainly recognizable, even as recent as those which played out this time last year, there isn’t any denying that the current housing landscape in our area was dealt a couple of pretty big wild cards over the past two years with the huge loss of homes in Boulder County on top of the pandemic and resulting supply and labor shortages, inflation, rising interest rates, and ever-increasing demand for housing. According to Realtor.com and economic experts, it’s a mixed bag, but not without some positive indications as we look forward.
Yes, the construction backlog continued to grow during the first quarter of 2022, but so were there increases in housing projects under construction, up 2.3% nationwide from the previous month, and 24% over this time last year (Realtor.com). Granted, some of that was housing projects with five or more units, but that isn’t surprising considering the crushing need for more affordable housing options.
The current landscape leaves home builders at a juncture of tough choice based on varied factors—huge demand versus supply chain and labor shortages, mortgage rates that are the highest they’ve been in over a decade, and which seem poised to continue to rise. It’s not surprising there is hesitation by builders about overcommitting themselves considering the lingering memories of the Great Depression and so much geopolitical instability impacting the global financial markets. That said though, the continued drive and demand for more housing starts and market ready inventory is a powerful force, hopefully powerful enough to eventually find at least a little balance and calmer waters. One thing is for sure, it’s still a good time to sell, and with the right strategy, maximize the opportunity.
For proven expertise in establishing your home value and/or searching for a new or existing home, please call Jan at (303) 520-4340.