Recently the Wall Street Journal released an article discussing the “5 Things to Watch in Housing in 2014” (article link here) . The article talks about national statistics and how they might influence some of your investment strategies going forward. Most important to think about are issues of how credit and bank regulations are going to change investment timelines/sale potential, and the affordability index related to the “price tipping point”.
Colorado’s housing market concerns are of course very different than some of the macro concerns listed in this article. The Denver market has continued to flourish due to people moving here in droves from California to avoid tax hikes, and corporations taking up more office space and adding jobs due to government incentives while luring employees to the Colorado lifestyle. The unemployment numbers in Denver are below other major markets across the country and median income figures continues to rise. Additionally, apartment rents continue to increase at record rates, making owning a home and paying a mortgage equal to monthly rent more enticing for current renters. These and several other national factors will continue to influence the Denver Metro and surrounding residential markets in 2014.
In 2014 Colorado flippers must continue to be persistent on strategic acquisition of value, understanding renovation costs and holding times, and not overestimate market value appreciation when looking at a properties ARV.
Interested in discussing further or having us take a look at a potential investment opportunity? Give us a ring. We love to talk real estate.