I got asked the “crystal ball” question again this week.
What do you think the real estate market will do?
- Is this a real estate bubble?
- Are prices going to drop?
- Will I have to move to Wyoming?
- Are investors buying everything?
- Will the market slow down when interest rates rise?
- Will interest rates rise?
Magical Thinking vs. Reality
Buyers are waiting to buy (why?) and sellers are waiting to sell because they can’t find anything to buy. Buyers think their perfect home will come on the market and they will be the only bidders. Sellers think they don’t have to keep up with household maintenance items since Buyers will bid on anything.
I don’t need a crystal bowl to see the future. I read. Agilent is opening a new manufacturing facility in Frederick. Ikea is making plans for a store in Broomfield. Woodward Governor opened a multi-million dollar plant in Fort Collins which will hold 1700 employees, many of them from outside the area. Comcast will take advantage of the student population and open up a call center in 2017 that will employee 600 people. Otterbox has some big plans but that’s all I know. A new big box store may be opening at the corner of 57th and 287 in north Loveland. Two new hotels just opened in Loveland and they didn’t blink when the oil & gas slow-down happened.
Due to the huge influx of millennials, Colorado has the second largest population of residents with a Bachelor’s degree, beat out only by Massachusetts. An educated workforce attracts new and expanding businesses. After Denver and Jefferson counties, Weld and Larimer have the highest net migration in 2015. And do I need to list the expanse of medical facilities that populate northern Colorado?
Sometimes the Crystal Ball is Right
Real estate agents are told again and again not to predict what will happen to the market. Disasters can affect real estate markets as can massive changes in regulations, etc. But if none of that happens, I encourage you to reconsider your decisions about your future real estate needs. If you think that this is the place to be or to invest in, then get moving. According to my “crystal ball,” it’s not going to get much easier.