Present and projected job growth is driving a very positive outlook for another year of significant job sector increases along the Front Range. The second best year in a decade according to University of Colorado Economist Richard Woobekind could be coming our way in 2014. The great thing about this is that it is wide spread through all industries in the state. According to Woobekind, we are in the top 5 states for job growth in the nation. He feels our unemployment rate will drop from 6.9 to 6.4 % if hiring trends continue during 2014.
Further, he projects that the population of Colorado will continue to increase at the rate of about 1.7 % next year. Most of this growth would be occurring along the Front Range. He feels Colorado is poised for long-term economic growth.
NOCO Real Estate Is “Back in the Saddle” Too
Because of the projected population growth mentioned above, the demand for homes will continue to increase. We are beginning to see an ever increasing shortage of building lots, especially in Fort Collins. This probably will mean several things. Overall home prices will rise and new built homes will get smaller as builders try to keep pricing affordable. They face the constant increase in the cost of building materials. The growth we will be seeing next year will affect utility rates as more demand will begins to put pressure on municipal water resources, electrical generation, and infrastructure. We have already seen this happening as was indicated in the recent flyer that came with the Fort Collins Utility bill - rates for water, waste water, and electricity are going up. Lots cost about $72,000 to develop right now and increasing costs associated with municipal permits driven by the above with only move this higher.
So, with interest rates predict to rise again (in 2013 they have risen from about 3.6 % to currently 4.75%), demand for housing increasing, residential home prices continuing to rise, and lots becoming less available, Fort Collins homes will be harder more expensive to buy. Only 7.5 percent of homes sold for under $200,000 in 2013 and prices in general went up about 4% for the year.
It is Time to Buy Your Home Now
With all this going on, the time to buy a home is now, during the traditionally quiet time for real estate sales before things ramp up next spring. You will have fewer other buyers to compete with and if a house is on the market now the seller may have an interest in selling right now as opposed to waiting for spring. Check out my blog on the winter real estate market and then give me a call so we can get you into a home – a home you should see appreciate significantly as we move into 2014.
Oh, and yes, if you are looking for a moderately priced horse property, we have a great one for you. These special places are in extremely short supply too.