RE/MAX of Boulder Radio turned the tables on host, Duane Duggan, in an interview that shed some light on Boulder County’s housing shortage.
Despite anxieties surrounding the shortage, Duggan assures potential buyers that the housing shortage doesn’t mean they need to wait.
“It’s a good time to buy in real estate,” he advises, “In the long run, real estate in Boulder County is a great investment.”
So, to what does this seasoned real estate agent accredit Boulder County’s housing shortage?
-Statistics show people are living longer and staying in their homes longer: People are spending an average of nine years in a home instead of five and elderly home owners are staying in their homes later into life than previously observed.
-Unemployment is 3% better than in 2010, allowing more buyers to be approved for a mortgage. Interest rates are also in the 3-4% range, meaning more people can afford to buy a home.
-Echo Boomers: children of the Baby Boomers are coming of home-buying age
-Natural disaster: Colorado as a whole is experiencing a housing shortage. Between the Front Range floods and Black Forest fire, hundreds of Colorado homes were destroyed last year.
-Dormant Sellers: 65% of home buyers surveyed think now is a good time to buy, whereas just 38% of sellers think it a good time to sell. Some sellers are afraid they won’t have anywhere to go when they do sell their home because the market is so sparse.
-Not enough homes being built during the recession and builders are having a hard time making up for lost time: In 2009, the number of new homes hit a national low with just 300,000-400,000 built that year, compared to the 1.3-1.4 million units being built in 2006.
“During the recession, there wasn’t enough building going on to keep up with population growth,” says Duggan.
He credits the lack of financing builders were receiving in the heat of the recession to the crippled housing market, stating that although financing is easier to come by than it was a few years ago, builders are having a hard time ‘gearing up’ since many trades people left Colorado for places they could find work.
-Nowhere to build in Boulder: “There isn’t much within the city limits,” says Duggan, naming the Trailhead development in West Boulder as one of the few buildable areas left. He advises buyers to look to the Eastern Plains for new construction.
Listen to the full interview below and find out what’s happening around Boulder on RE/Max of Boulder’s community site, www.bouldersource.com.