Posted by Michael Hughes
With the population growing, the number of home owning households in our country typically rises by about 1 million a year. In the 1980’s we faced another obstacle as interest rates rose to a little over 18%. Can you say “assumable” and “cash?” From 2005 to 2010 the number of homeowners did not grow. In the meantime during that period the population grew by 13 million people. We are currently at a sustainable level of 66% home ownership and most likely never see 69% home ownership fueled by subprime and poor lending practices ala Fannie Mae and Freddie Mac.
Given the population growth and the forecast for population growth over the next several years and that manufacturing has been recovering nicely, companies are flush with cash, consumer confidence has rebounded, jobs are being created and the stock market has done an about face bullishly recovering. Rising rental costs will tip more renters in to home ownership.
Put all these factors together and this is what we will see; existing home sales are projected to rise 8 percent to almost 5.3 million units nationwide.
Boulder real estate is already experiencing increased buying power in the area especially in Boulder proper and it looks like it is going to be yet another record year for sales of existing homes in the Boulder real estate and the Boulder luxury real estate market.
If you have questions regarding this article or have any questions about Boulder or would like information about Boulder Luxury Real Estate check out my website. You may also call or TEXT me 303-359-6627 or e-mail Michael Hughes at Fuller Sotheby’s International Realty in Boulder, CO.
