Home Ownership and Millennials
Home Prices throughout the Nation continue to rise, now only 2% below their July 2006 pre-recession peak. The July 2016 Statistics for the Montrose Co Real Market are par with 2015, on the number of homes sold and median selling price. Boulder Colorado, out of all places, is 45% above its previous peak value record. Is this due to the Green Rush or the booming tech start-ups and hot Job market, or both?
Along with the rise in home values and decreased real estate inventory, come the lowest home-ownership levels since the Post-Depression Era. Economists believe the high debt-to-income ratio of Millennials, and their personal personal finances, are attributing to this unprecedented trend. New household formations have been rising, but many of the new family formations are renting rather than purchasing. Unfortunately, this is an erosion of the wealth effect for the current working class generation of Millennials, who are unable to qualify for loans do to student debt and poor credit (Lopsided Housing Rebound Leaves Millions of People Out in the Cold).
Recovery Snap Shot
Out of the entire Nation, Las Vegas and Phoenix are still suffering from the slowest recovery since the Great Recession. On the flip side, Silicon Valley, Dallas, and Denver have all seen gains above pre-recession values, with Denver Metro experiencing a 31% gain from pre-crash home values. Montrose is starting to level out a bit, based on July’s numbers, but is still beating last year’s numbers relative to number units sold and home value gains.
What Does This Mean for Montrose?
I wonder if retirees are getting sick of hipsters. Since the largest populations of those moving to the Denver/Boulder Metro Area are Millennials (lured by arguably the 3rd hottest hot job market in the Nation), I wonder if those in the older generations are just fed-up. Traffic, crowds, and the increased cost of living and housing may be pushing that demographic toward Montrose Colorado. The Atha Team is seeing the majority of out-of-town homebuyers hailing from the Front Range. What does that mean for Montrose? Start looking for an increase in white-velcro shoes rather than tattoos and beards.
Thinking about Buying or Selling? Call or Text: 970-417-9375
Copyright 2016 Keller Williams Colorado West Realty, LLC. If you have a brokerage relationship with another agency, this is not intended as a solicitation. Equal opportunity housing provider. Each office is independently owned and operated. For sale by owner data not included in research findings. Sales data reflects sales from homes not limited to the Atha Team LLC. This information was gathered from Keller Williams, The National Association of Realtor, CoreLogic data analysis firm, Montrose Association of Realtors, and the Mortgage Brokers Association. This data is considered accurate, but is not guaranteed. Copyright Atha Team LLC 2016. All Rights Reserved.