NoCo Home Sales Expected to Rise in Number and Price
Realtors believe the number of homes sold in Northern Colorado will increase by approximately 9 percent in 2015 if a short supply of inventory doesn’t hold the market back.
Supply and Demand
While the demand and low-interest rates are in place, a short supply of home listings has the markets slightly out of balance. The lack of supply has continued in 2015. Part of the problem is the lack of construction of new condominiums, which is where many first-time buyers enter the market. Usually, 30 percent of new construction is made up by building condominiums. Currently, condos are making up only 3 percent of new construction.
Some believe reforming the construction-defects law could open the doors for developers to begin more condominium projects. The main concern for builders is Colorado law lets the majority of a homeowners’ association board, instead of a majority of the owners, decide whether to sue for construction defects. Builders say the law is difficult for building condominiums because so many homeowners live under one roof, complicating the legal action. Experts predict many of the luxury apartment units being built now will be sold as condominiums in seven years after the six-year statute of limitations runs out on the construction-defects law.
Due to the shortage, the average price of a condominium in the region increased in 2014 by about $51,000, a 27.4 percent increase, or three times the average price increase of $25,000 for a single-family home, an 8.3 percent increase.
Title Insurance in Northern Colorado
Choose the right title insurance company with the highest performance standards. Call The Group Guaranteed Title at (970) 613-4364 and speak to the most experienced title officers and escrow officers in Northern Colorado. Our goal is to make the home selling, buying or refinance closing experience comfortable, fast, easy, and predictable.Share this post...