At this point in time, it may seem like a seller's market in Northern Colorado, and strictly speaking, you’re not wrong. But there are several things to consider about the state of the economy and how that will change in the years and months to come. Many economic ideals and practices are focused on forcing equilibrium into place, which at first glance may seem impossible, but it is quite the opposite. According to recent calculations, it takes the average economy in any country ten years to adjust to changes. Which means that our current economy is just now adjusting to changes made in policy and law from ten years ago. This renders many political ideologies and principles completely null and void because, essentially there is no equilibrium that is naturally established, it has to be forced. When applying this to the current housing market, it’s important to understand the government’s hand in forcing policies and changes as well as how the capitalist market is currently affecting things.
The State Of The Housing Market Union
In this snippet of time, from 2016 to now, you can see a marked growth in housing prices. In fact, there’s an approximate 100% growth since the year 2008 in housing prices in Fort Collins alone. This occurred for several reasons, the housing crash which threw off the market’s sustainability, then the legalization of marijuana which caused a mass migration to the state—specifically in Northern Colorado, which was promoted by the recent mild winters of 2016 and 2017. However, 2018 is looking to be a harsher winter, with much lower temperatures in comparison to the 80-degree jump last February. Considering that the majority of the transplants were originally from California, this will hit them hardest. In tandem with the rising prices of homes and the recent cut to the regular deduction that homeowners can make on their mortgage on their taxes, all arrows point to a mass exodus. California has recently legalized marijuana and is known for its much milder winters and higher average wage and minimum wage. Along with the lesser incentive for home ownership going into effect as of this year, we might see an increase in houses on the market, but will that see an adjustment in pricing?
The answer is no. At least, not for the first little bit of time. All of these people bought these houses for around $350,000, all of them are going to assume that they will gain money on that investment, however, when there is a rush in supply, the demand cannot match it. Which is why the cost of housing is of such a concern to the chief economist of the National Association of Realtors in Washington, Lawrence Yun. According to him, the affordability of homes is causing concern, especially in Northern Colorado, where we appear to be in a simulated housing bubble.
Presumably, we will see many houses go onto the market at once, and buyers will be unable to afford them. The market will slow exponentially and the simulated seller's market that Northern Colorado has comfortably sat in will suddenly disappear. Leaving the question, what should you do? Sell off useless properties, and settle in for the storm. Rather than wait for the market to be flooded and then attempt to sell a house that’s potentially already causing problems, sell now and quickly before the waves manage to crash against the wall.
Avoid the Crisis
Contact Colorado All Cash and avoid a sitting in a market that is becoming increasingly unstable. We buy houses for all cash in Loveland, Greeley, and Fort Collins, which have the potential to become problem areas in a very short amount of time. We’re prepared to assist with houses that need extensive repair, are surrounded by emotional turmoil like a divorce or death, or just need to be sold quickly. After years of experience as brokers, the Colorado All Cash Team is prepared to handle your sale with finesse and compassion.