Real Estate Forcast 2008
Tonight I attended the Group Inc’s real estate forecast presentation for 2008. For those of you not in Northern Colorado, The Group is the largest real estate firm in Northern Colorado. The main thing I got out of it, which is what I have been thinking, and have been hearing from many people, is that our local market has “bottomed out” for lack of a better term. Things are going to start improving. It won’t be booming by any means, but it will be more balanced. The latter half of the year looks to be better than the first half, and that will carry over into 2009. For the next year, they are predicting that sales will be slightly over 2007, which was down a little from 2006, which in turn really dropped from 2005. That points to a bottom of the market. It is funny though how things are in perspective. For Fort Collins, they are predicting about 3,700 home sales. For everyone concerned that is a down market for around here. Interestingly, that is only 300 sales less than the peak back in 2004, and is similar to the sales pace in 1998. I remember 1998 being a pretty good year. It is amazing how it is all relative.
They also stated that in some neighborhoods, price points, etc. there is actually a shortage of homes available, which can happen in any market, good or bad.
Now for what I wish they would have done. I wish they would have spent some time talking about the various market segments, where is the activity? I wish they would have spent some time talking about what buyers are looking for, where they are coming from…what product is selling. Is the only thing selling homes Granite Kitchen counter tops, or are buyers looking for something else.
Now, for my predictions. Overall, I feel the market will continue to improve, though at a sustainable pace, not a torrid pace. I think the markets will be there for infill product, niche product, and amenity based communities. I think people are going to demand more from good design and architecture. They will want their homes to be unique and individual, a reflection of who they are…even from production builders. The street scape will become more important, with a variety of architectural styles, colors and materials. The look alike homes of the past decade will become a thing of the past. I predict buyers will become more interested in mixed use and mixed income neighborhoods…intermixing products within blocks, and not so segregated as they have been in the past. Buyers are going to continue to look for homes and neighborhoods that are designed within the context of the green movement, and that are energy efficient.
Well, that is all for now. I would be interested to hear what your thoughts are!
