Denver Economy Gaining Tractionlivxmin
Positive economic news has been hard to come by over the last 3 years. Foreclosures and unemployment have dominated the headlines and softened the real estate market to levels unprecedented in our lifetime. Accepting the reality of today’s market values and letting go of the fantasy of yesterday’s market values has been a big, often impossible
adjustment for home sellers.
The 2011 Metro Denver real estate market is now showing signs of improvement. And key economic indicators are supporting a positive trend.
- The May Economic Summary from The Metro Denver Economic Development Corporation reports that the long-awaited turnaround in the region’s labor market is underway.
- Metro Denver’s net job gain of 9,000 between February and March was consistent with season trends.
- A survey of area employers shows 42% plan to fill job vacancies this year, while just 3% plan layoffs. Hiring should help continue the decline in new claims for unemployment insurance, which fell below last year’s level for the 17th consecutive month.
- Labor market experts say while Metro Denver’s unemployment rate is 9%, it was 9 ½% this time last year, and will likely remain above-average for a time as more people begin or resume looking for work, but local unemployment rates are stabilizing, if not declining.
- Additionally, the University of Colorado Boulder’s Leeds Business Confidence Index rose to 56.8 for the second quarter from 48.6 in the first quarter. The
second quarter reading was the highest reported since mid-2006. The overall index shows local businesses are clearly optimistic about growth over the next three months.
- Foreclosure activity is on a rapid decline as Colorado foreclosure filings January through April are down 33%.
- Fewer bank-owned properties in the market and improving job growth are the key factors in the Metro Denver economic and housing market rebound.