2018 Archives - The Kalinski Team

Boulder Economic Summit 2018: Skilled Workers Essential to Boulder’s Future, Housing a Key Issue

Boulder County excels at attracting talented and skilled workers. But change is in the air, says futurist Josh Davies, CEO at The Center for Work Ethic Development and keynote speaker at the recent Boulder Economic Summit 2018: The Workforce of the Future.

Statistics presented by futurist Davies suggest that if the last decade rocked with rapid change on the job-front, hang on to your Smartphone – the future promises to be a rocket-ride.

And, the future starts now.

Today, Boulder County employers are going head-to-head with the rest of the world. Local businesses compete globally for highly skilled workers integral to business success, yet these workers are too few in number to fill the demand. If corrective steps aren’t taken, the worker shortage will continue and potentially worsen, predict speakers at the Summit. Success is critical, since Boulder County’s thriving economy, vitality and quality of life depends on local businesses continuing to engage world-class, highly skilled people.

Hosted by the Boulder Economic Council (BEC) and the Boulder Chamber at CU-Boulder, the Boulder Economic Summit brought experts and hundreds of community leaders together to evaluate Boulder’s competitiveness in the global demand for talent. In breakout sessions and roundtable discussions, the group explored how education and workforce development must evolve to keep up with the impacts of automation, immigration, globalization and other forces affecting future jobs.

There Will Be Robots. Lots of Robots.

People, get ready. Futurist Davies says the robots are coming and in more ways than ever expected.

The growth will be explosive: 1.7 new industrial robots will be in use by 2020, with robots performing tasks in homes and offices – not just in manufacturing, says Davies.

In his talk, 2030: The Workplace Revolution, Davies highlighted how technology will change our jobs in the coming decade and the pressing need for skill development and preparation.

With advances in technology and creative disruption in industries, employment has shifted, explains Davies, adding that 85 percent of jobs in 2030 haven’t been created yet. By then, computers will function at the speed of the human brain. He warns that increased automation and artificial intelligence will significantly alter employment needs and businesses should be prepared.

Low-skilled and entry-level and other jobs that perform repetitive tasks will no longer be available to human workers – computers and robots will fill that need. While companies do not like to replace people with robots, if robots cost 15-20 percent less, humans will lose out.

Davies predicts retail jobs will be replaced by robots at a very high rate, even though it is the leading profession in most states. Sixteen million retail workers will need to be retrained for new jobs.

His strategies for the future are to recognize that whether tasks are cognitive or non-cognitive, repetitive tasks can be automated. To succeed, workers need to develop non-cognitive skills: problem-solving, critical thinking and empathy.

Acquiring New Skills Critical to Success

Andi Rugg, executive director of Skillful Colorado, says one-third of the American workforce will need new skills to find work by 2030.

In her talk, Understanding the Skills Gap, Rugg emphasizes that training and retraining are the path to success, not only for the coming decade, but for today. There are 6.3 million unfilled jobs in the U.S. today because there’s currently not enough talent to bridge the gap between employer requirements and the workforce.

Rugg stresses that hiring needs to become skills-based, since we are in a skills-based economy. Her statistics are hard hitting:

Jobs requiring college degrees exceed the number of workers who have them.
Seventy percent of job ads for administrative assistants ask for a college degree, but only 20 percent of administrative assistants have a college degree.
Only 3 in 10 adults in the U.S. have a bachelor’s degree – demand for bachelor’s degree is outstripping supply of workers who have them.
Only 35 percent of Boulder County’s skilled workers have a degree and Colorado ranks No. 48in the nation for the number of people of color with a degree.
Employers need to be more agile in hiring and realize that skills can bridge the gap.
Employers need to focus on skills to address inequities in the labor market.
Employers should also offer upskilling and lifelong learning for employees.
Skills-matching improves employee retention and engagement as well as reduces the time to hire and ultimately reduces turnover costs for the employer.

Housing and Transportation Keys to the Solution

In a roundtable discussion led by RE/MAX of Boulder Broker/Owner Jay Kalinski, the team tackled one of Boulder County’s looming challenges in attracting workers to Boulder County – affordable housing and transportation options that enable commuting. The group developed possible solutions to ease transportation and affordable housing issues.

Photo caption for photo above: Jay Kalinski, RE/MAX of Boulder Broker/Owner (left} leads a roundtable discussion to develop transportation and affordable housing solutions.

Learn more about the discussion in Jay Kalinski’s article in BizWest, “Where will Boulder’s workforce of the future live?” at: https://bizwest.com/2018/06/01/where-will-boulders-workforce-of-the-future-live/?member=guest

Community Collaboration

In breakout sessions and the closing plenary, discussions revolved around ways the community can address workforce and economic development by bringing together private sector businesses and industry with educational institutions and organizations, government, and nonprofits in collaboration.

Through this joint effort, our community can prepare students with the workforce skills needed in the future that cannot be automated; develop business-relevant class content; roll out real-life technical projects in classrooms; re-train workers; and offer apprenticeships, internships, and work-based learning alongside education or as standalone, all of which can help workers gain skills.

Learn more by reading the Boulder Economic Council and Boulder Chamber’s recently published “Boulder Innovation Venture Report” at: https://bouldereconomiccouncil.org/whats_new_with_the_bec/boulder-innovation-venture-report/

Posted by Tom Kalinski Founder RE/MAX of Boulder on Wednesday, June 20th, 2018 at 11:25am.

Posted on June 21, 2018 at 5:38 pm
Jay Kalinski | Category: RE/MAX of Boulder | Tagged #BEC, #Boulderarea, #BoulderChamber, #bouldercounty, #BoulderEconomicCouncil, #BoulderEconomicSummit, #business, #collegedegrees, #communitycollaboration, #communityleaders, #commuting, #CUBoulder, #demand, #economics, #EconomicSummit, #economy, #education, #employment, #futurejobs, #globaldemand, #globalization, #highskilledworkers, #Housing, #immigration, #LocalBusinesses, #remaxofboulder, #retailworkers, #Robots, #SkilledWorkers, #Statistics, #transportation, #workers, #workershortage, #workforce, #WorkplaceRevolution, 2018, boulder, colorado, community

Denver International Named Top Airport in America

Denver International Airport ranked No. 1 in the U.S, reports international air transport researchers at Skytrax in the 2018 annual airport awards.

In a separate Skytrax ranking of regional airports by continent, Denver is the No. 1 airport in North America and No. 5 regional airport in the world.

More than 13 million international air travelers around the world surveyed for the awards voted Singapore Changi the top airport in the world for the third year in a row. Denver – ranking 29^th in the world – claimed the top ranking spot for U.S. airports. Denver is followed by No. 34 Cincinnati, No. 48 Houston International, and Nos. 50 and 51 Atlanta and San Francisco, respectively.

Travelers were surveyed from August 2017 to February 2018, covering 550 airports worldwide and evaluating traveler experiences including check-in, arrivals, transfers, shopping, security, and immigration through to departure at the gate.

But that’s not all. In a separate airport satisfaction survey conducted by J.D. Power Ratings in 2017, DIA pulled a score of 763 out of 1,000, ranking fourth. Orlando International Airport ranks highest in satisfaction among mega airports, with a score of 778. Detroit Metropolitan Wayne County Airport (767) ranks second, and McCarran International Airport and Phoenix Sky Harbor International Airport (765) tied for third.

The survey found overall passenger satisfaction with North American airports has reached an all-time high.

“Capacity has become a huge challenge for North American airports, with many reporting 100% of available parking spots being filled and large airports, such as Orlando International, setting passenger volume records each month for more than three years straight,” said Michael Taylor, Travel Practice Lead at J.D. Power. “Despite these difficulties, airports are responding with new technology and old-fashioned personal skills to win over harried travelers. These range from smartphone apps that tell travelers where to find a parking spot to therapy dogs—and in one case, a therapy pig—mingling with travelers to relieve stress and improve the overall airport experience.”

Nearly every U.S. airport – faced with high passenger capacity and ongoing construction projects to address increased demand – is using technology to help address these issues. Sacramento International Airport developed a smartphone app that tells travelers where to find a parking spot, and airports nationwide have invested heavily in improving phone-charging stations and internet access in their terminals.

The J.D. Powers study, now in its 12^th year, measures overall traveler satisfaction by examining six factors: terminal facilities; airport accessibility; security check; baggage claim; check-in/baggage check; food, beverage and retail. It is based on responses from 34,695 North American travelers who traveled through at least one domestic airport with both departure and arrival experiences during the past three months.

For more on the Skytrax Awards see: http://www.worldairportawards.com/Awards/world_airport_rating.html and http://www.worldairportawards.com/Awards/worlds_best_regional_airports.html

For the full J.D. Power ratings see: http://www.jdpower.com/press-releases/jd-power-2017-north-america-airport-satisfaction-study

Posted by Tom Kalinski Founder RE/MAX of Boulder on Monday, May 14th, 2018 at 2:49pm.

Posted on May 22, 2018 at 5:47 pm
Jay Kalinski | Category: RE/MAX of Boulder | Tagged #airport, #arrival, #Denver, #departure, #DIA, #international, #internationaltravelers, #number1, #passenger, #satisfaction, #Skytrax, #technology, #topairport, #travel, #travelsmart, #U.S., 2018

Boulder County Home Sales Spring Ahead

March home sales signaled a robust and active home buying season ahead for Boulder County.

“The Boulder-area market rocketed forward in March with strong sales that improved significantly,” says Ken Hotard, senior vice president of public affairs for the Boulder Area Realtor® Association.

Following modest positive movement in February, housing surged forward in March, according to March sales statistics. Boulder Valley buyers showed up strong, undeterred by a market pattern of low inventory and rising prices. This pattern has characterized the countywide housing market for several years running.

Single-family home sales in the Boulder-area jumped 43.3 percent in March compared to February 2018 – 344 units sold vs. 240. Condominium and townhome sales also rose, marking 28.4 percent growth month-over-month with 122 units sold vs. 95.

Year-to-date, single-family home sales increased 8.7 percent through March 2018, with 829 Boulder-area homes sold vs. 763. Sales of condominiums and townhomes increased 1.6 percent year-to-date with 312 units sold compared to 307 for the same period in 2017.

Inventory also improved, though modestly. The number of single-family homes for sale grew by 10 percent – 651 units compared to 592 – while townhome and condo inventory grew 5.3 percent – 140 units vs. 133 – month-over-month.

“The inventory level is about a two-month supply of single-family homes and a one-month supply of condominiums and townhomes. A healthy market is thought of as a five- to six-month inventory supply,” says Hotard.

Nationally 40 percent of housing sales occur during March, April, May and June.

Hotard says the consistent buying activity we see in our housing market speaks volumes for the desirability of the area and health of the market.

“It’s a strong, positive market for sellers. We need a significant amount of new product in the market to meet the demand, particularly the demand for housing suited for young people and a broad demographic of ages and incomes.”

Posted by Tom Kalinski Founder RE/MAX of Boulder on Tuesday, April 24th, 2018 at 11:31am.

Posted on April 26, 2018 at 6:52 pm
Jay Kalinski | Category: RE/MAX of Boulder | Tagged #Boulderarea, #BoulderAreaRealtorAssosciation, #bouldercounty, #bouldervalley, #buyers, #buyingactivity, #condos, #home, #homebuying, #homebuyingseason, #homesales, #housingmarket, #housingsurge, #lowinventory, #risingprices, #sales, #sellers, #sellersmarket, #singlefamilyhomes, #spring, #springahead, #townhomes, 2018, boulder, market

Boulder One of Most Fitness-Friendly Cities for 2018

With Boulder’s walking, biking and hiking trails, it’s no surprise the city made the SmartAsset top 10 list of places for physical fitness.

But here’s what is surprising: as fitness and healthy-eating oriented as Boulder’s culture is, the city ranked only No. 10 on SmartAsset’s fourth annual study of the most fitness-friendly places in America.

According to the study, nine other cities are more fitness-friendly than this biking-hiking-running-skiing-walking-climbing loving town.

SmartAsset describes fitness-friendly cities as those that tend to be walkable, offer few fast food eateries and plenty of healthier eating restaurants, and present plenty of places to workout in. Having ample workout facilities overcomes crowded or far away gyms that can deter people from exercising regularly.

Boulder scores in the top 15 for the percent of residents who walk or bike to work and the number of fitness professionals per 10,000 residents. In fact, Boulder has a top 25 score in the number of fitness businesses. However, the cost of getting fitness help from a professional lowered Boulder’s overall score. The city ranks 337 out of 340 for the affordability of professional fitness help.

In No.1-ranked Missoula, Montana, residents walk or bike to work at a rate of around one in 11. The city’s transportation design makes walking or biking not only possible, but enjoyable.

With two Iowa cities in the top 10 – No. 3 Iowa City and No. 9 Ames – it’s clear that Iowans are doing a lot right when it comes to fitness. Around 11 percent of Iowa City residents walk or bike to work – the fifth-highest rate in the study, according to SmartAsset.

The top 10 cities are:

Missoula, Montana
La Crosse-Onalaska, Wisconsin-Minnesota
Iowa City, Iowa
Ocean City, New Jersey
Bend-Redmond, Oregon
Napa, California
State College, Pennsylvania
Harrisonburg, Virginia
Ames, Iowa
Boulder, Colorado

Data for 340 metros was analyzed by SmartAsset to determine America’s most fitness-friendly cities. Metrics include the percent of those who walk or bike to work, number of fitness jobs, cost of hiring a personal fitness instructor, number of fitness establishments and prevalence of fast food restaurants. The final factor – fast food eateries – is calculated as a negative.

Get all the details on each city at https://smartasset.com/mortgage/fitness-friendly-places-2018

Posted by Tom Kalinski Founder RE/MAX of Boulder on Friday, April 20th, 2018 at 10:40am.

Posted on April 20, 2018 at 5:43 pm
Jay Kalinski | Category: RE/MAX of Boulder | Tagged #AmericanDream, #biking, #Boulderarea, #bouldercounty, #climbing, #culture, #exercise, #Fitness, #fitnessfriendly, #fitnessprofessionals, #health, #heathlyeating, #hiking, #physicalfitness, #skiing, #SmartAsset, #top10, #trails, #walkable, #walking, #workout, 2018, boulder, colorado

First Signs of Spring Home Sales Show Promise

‘Home for Sale’ signs are popping up like spring tulips in Boulder County, showing early indications the selling season is likely to emerge strong this year.

Those early positive signs are supported by February’s Boulder Area Realtor® Association sales stats that mark improvement in inventory and sales for single-family and attached dwellings.

“February showed good recovery in sales and inventory from last month’s slow start to the year,” says Ken Hotard, vice president of public affairs for the Boulder Area Realtor® Association. “It sets buyers and sellers up well going into the top home-selling months of March, April, May and June.”

Inventory increased for single-family and attached Boulder County dwellings in February compared to January. Single-family home inventory increased 7.6 percent – 592 units versus 550 – while townhome and condominium inventory improved 2.3 percent – 138 units versus 130 – month-over-month.

Month-over-month sales of single-family homes in the Boulder-area improved 9 percent compared to January – 240 units versus 220. Condominium and townhome sales rose 7.9 percent month-over-month – 95 units versus 88.

Year-to-date, single-family home sales in the Boulder-area increased 12.3 percent through February 2018, with 467 homes sold versus 416. The number of condominiums and townhomes sold also rose, marking a 26.2 percent year-to-date jump with 183 units sold versus 145 units for the same period in 2017.

Hotard says Boulder County’s real estate market hasn’t changed from last year, noting that “given the market we have, there is no denying demand is strong and there continue to be active buyers.”

The one shifting fundamental is increasing interest rates.

“Interest rates are over 4.5 percent now and projected to go higher. The question is just how high they will go,” explains Hotard.

He says it’s too soon to tell if rising interest rates will put a damper on home sales or the area’s ever-rising real estate prices.

All told, not much has changed in Hotard’s view. “We still live in a beautiful place that offers an exceptional quality of life, Colorado job growth continues to be strong, and the areas surrounding Boulder County are experiencing rising real estate prices.”

So bring on the 2018 home selling season, it’s budding with promise.

Posted by Tom Kalinski Founder RE/MAX of Boulder on Tuesday, March 27th, 2018 at 1:21pm.

Posted on April 3, 2018 at 7:34 pm
Jay Kalinski | Category: RE/MAX of Boulder | Tagged #attacheddwellings, #Boulderarea, #BoulderAreaRealtorAssosciation, #bouldercounty, #buying, #condos, #homesales, #homesellingseason, #interestrates, #jobgrowth, #realestatemarket, #realestateprices, #realestateseason, #sales, #selling, #single-familyhomes, #spring, #townhomes, 2018, boulder, colorado, inventory

Boulder Real Estate Market Holds Steady, Despite Pressure

Early in 2018 the real estate outlook for Boulder County looks strong, even while sailing into the same headwinds that prevailed last year: low inventory and rising prices.

But this year promises additional gusts in the form of rising interest rates.

“None of the fundamentals in the market have changed, except a small rise in interest rates and the anticipation of additional increases,” says Ken Hotard, senior vice president of public affairs for the Boulder Area Realtor® Association.

“January data shows year over year single-family home sales are about the same as last year, and condos and townhomes are up significantly.”

Single-family home sales for Boulder County are down a single unit or .05 percent with 220 units sold in January 2018 compared with 221 in January 2017. Month-over-month, January sales dropped 39 percent for the first month of 2018 compared to December’s 363 units sold.

In condominium/townhomes, 88 units sold in January 2018, a 44.3 percent improvement compared with 61 units sold a year ago, but a 26.7 percent drop compared with the 120 units sold in December.

“December finished strong and the totals for 2017 pushed over and above 2016 slightly, which makes having a strong January challenging,” says Hotard.

Inventory continued its persistent decline. Single-family homes for sale in the Boulder-area declined 1.3 percent in January 2018 compared to December 2017 – 550 units vs. 557.

Meanwhile, condominium and townhome inventory improved 8.3 percent in January compared to December – 130 units versus 120.

Hotard notes that rising mortgage rates is a new factor for real estate markets that have seen a long run of low interest rates. He says the question is whether rising rates, while still historically low, will have a dampening effect on pricing or sales.

“Affordability is already an issue in Boulder, Louisville and Niwot. If interest rates go up people may have greater difficulty affording higher priced homes,” he adds. For 2017, Boulder’s median sales price came in over $800,000, Niwot’s roughly $750,000 and Louisville’s nearing $575,000.

With minimal data to consider this early in the year, Hotard is reluctant to predict this year’s market.

“For now, the data is over a small number of sales, so it’s difficult to identify trends. But this market has been strong for years and it is likely to continue to be strong.”

Posted by Tom Kalinski Founder RE/MAX of Boulder on Monday, March 5th, 2018 at 9:37am.

Posted on March 9, 2018 at 7:59 pm
Jay Kalinski | Category: RE/MAX of Boulder | Tagged #Boulderarea, #BoulderAreaRealtorAssosciation, #bouldercounty, #frontrange, #homesales, #interestrates, #louisville, #lowinventory, #marketupdate, #niwot, #realestate, #realestatemarket, #sellersmarket, 2018, boulder

Colorado Among Top 10 Predicted to Have Strong Housing Market

Posted by Tom Kalinski Founder RE/MAX of Boulder on Tuesday, February 20th, 2018 at 4:22pm.

Ranked the No. 7 strongest housing market in the U.S., real estate sales in Colorado will remain robust in 2018, according to analysis by credit.com.

The predicted increase is around 3.1 percent. Colorado Springs is emerging as the top city for growth and median home prices are predicted to rise 5.7 percent through 2018.

Colorado’s home prices saw the sharpest increase in the U.S. over the past two years, reports credit.com. That’s quite a mark, given that 2016 existing home sales nationwide were the strongest they’ve been in a decade, following the worst housing crisis in U.S. history. In 2018, the nation’s housing market’s strength is expected to continue with U.S. home prices expected to rise 4.6 percent.

Here are 10 states that are predicted to be among the top performers in 2018:

Nevada

Median home values in Las Vegas are expected to rise approximately 5.8 percent over the next 12 months. The median home price is approximately $285,045.

Texas

Lower taxes and a lower cost of living continue to lure profitable companies to relocate, expand or launch businesses inTexas. As a result, housing has boomed in Dallas and many other areas. In 2018, home sales are expected to gown 6 percent. The median home price in North Texas is $339,950.

Florida

Florida cities Deltona and Lakeland lead Florida’s strong housing market. With the appeal of ocean-side living, warm weather, and the ability to live an active lifestyle, Florida’s most popular areas are expected to see a more than 5% boost. The median home price in Deltona is $275,050.

California

Stockton – one of California’s fastest-growing cities – is predicted to grow its housing market by 4.6 percent. With a median home price of $385,050, Stockton is far more affordable than the state’s most desirable areas. For example, the median price of a home in San Francisco has increased $100,000 in the past year.

Utah

The Provo/Orem region was recently ranked as the best-performing city by the Miliken Institute, due to a robust high-tech sector and broad-based job and wage growth. Salt Lake City’s median home price averages $360,000, and housing sales are predicted to grow 3.2 percent in 2018.

North Carolina

People are moving into North Carolina from other states, driving a strong housing market with home sales predicted to grow 6 percent in 2018. The median home price averages $325,000.

Colorado

With the several year surge in housing prices, affordability is a growing issue in the Mile High City. Even so, the market is predicted to remain strong, leveling out a bit in 2018 to around 3.1 percent. Colorado Springs tops the cities for growth and the median home price there is slated to rise 5.7 percent this year.

Tennessee, Oklahoma and Georgia round out the list of the top 10 strongest housing markets in the U.S. for 2018, says Credit.Com. Nashville, Oklahoma City and Atlanta all bring the secret sauce that bolster home values. Median prices are $385,000; $99,000; and $218,350, respectively.

Read the full article at https://www.realtor.com/news/trends/10-states-predicted-strong-housing-markets-2018

Posted on March 6, 2018 at 7:29 pm
Jay Kalinski | Category: RE/MAX of Boulder | Tagged #buying, #coloradosprings, #home, #homesales, #housingmarket, #MileHighCity, #realestate, #remaxofboulder, #selling, #topcitites, 2018, boulder, colorado

Boulder Valley 2018 real estate predictions

Published in BizWest on December 6, 2017.

The Boulder Valley real estate market has undergone a shift in 2017. While we began the year in a fairly strong seller’s market, it soon became apparent that the indicators we track were pointing to a shift toward a more balanced market.

Making predictions is always a risky business, but here are my top three predictions for 2018 and what they will likely mean for people in the market.

1. Appreciation will continue (but at a slower pace).

While the Boulder area continues to top the country in total appreciation since 1991 (a whopping 371 percent), we have fallen out of the top 10 — to number 19 — nationally in terms of one-year appreciation (10.84 percent according to FHFA). Nevertheless, many structural factors point to increased upward pressure on home values (including low unemployment, strong net migration, and lack of lots to build upon).

For single family homes, Boulder County experienced 5 percent appreciation through the first three quarters of 2017. While this is solid, it pales when compared to the over 15 percent appreciation during the same period of 2016.

In 2018, I predict we will see about 5 percent overall appreciation in Boulder County, with individual cities varying substantially. I predict that the highest appreciation rates will be in Longmont and Erie, and the slowest appreciation will be in the City of Boulder.

For attached homes (townhouses and condos), Boulder County experienced a meager 1.7 percent improvement through the third quarter of 2017. This number is somewhat misleading, as most areas were up by a higher percentage while the City of Boulder was actually down 3.7 percent.

For 2018, I predict that attached homes will appreciate by about 5 percent, with appreciation being higher in every locale except the City of Boulder. In Boulder, it is possible that we will see a continued decline in prices, especially if investment property owners who have not brought their units up to Smartregs compliance decide to sell rather than spend the money to them into compliance.

What this means: For buyers, now is a great time to buy, especially if you are in the market for a condo in the City of Boulder. Waiting will cost you, but not as much as in previous years. For homeowners, if you are considering selling, you have ridden a strong wave of appreciation over the last several years, and you will not likely see the same rate of appreciation by continuing to hold.

2. Inventory will increase in 2018.

Since 2011, the inventory of available homes on the market has generally gone down when compared to the preceding year. That trend finally broke in 2017, with available inventory of both single family and attached homes rising above 2016 numbers. Without getting too deeply into the weeds, a number of indicators that we use to track the market point to a continuation of this trend in 2018. Some of the more telling indicators are (1) a falling sales price to list price ratio, (2) an increase in months of inventory, and (3) more expired listings (homes that did not sell on the market).

In the City of Boulder, on the single family side, I predict that inventory will see the biggest increase in the $1 million+ market as a gap has started to open between sellers’ opinions of their homes’ values and what buyers are willing to pay for them. On the attached side, we will likely see an increase as well, partly due to an influx of non-Smartreg-compliant units as well as condos at the Peloton being converted from apartments.

What this means: For buyers, you will finally have more homes to choose from in your search. For sellers, you will have to be much more careful when pricing your home to avoid being rejected by the market.

3. Interest rates will rise modestly.

For the past several years, numerous experts have predicted mortgage interest rate increases. And for as many years, the rate increases have been non-existent or far more modest than predicted, even after the Fed increased its Fed Funds Rate. Speaking of which, the Fed is expected to raise rates again this month as the economy shows continued signs of recovery. However, the number and size of interest rate increases in 2018 is far from certain because of a change in leadership of the Fed.

Lawrence Yun, the chief economist for the National Association of Realtors, predicts that rates will increase to 4.5 percent by the end of 2018, which is about 0.5 percent higher than current rates. This figure could be affected by tax reform, the country’s economic performance, and other political factors. Nevertheless, for planning purposes, an increase to 4.5 percent in 2018 is likely to be in the ballpark.

What this means: While appreciation rates and inventory are starting to move into buyers’ favor, there will be a cost to waiting to enter the market in terms of affordability. That is, the longer you wait, the more you will likely pay for a home and the more interest you will likely pay for it.

Conclusion: Sellers have been the primary beneficiaries of the real estate market since the recovery of the Great Recession, but 2018 will finally see buyers in a stronger position.

_________________________

Posted on February 5, 2018 at 8:46 pm
Jay Kalinski | Category: BizWest, RE/MAX of Boulder | Tagged #bouldercounty, #buying, #City of Boulder, #economics, #erie, #gunbarrel, #home, #homeownership, #interestrates, #longmont, #louisville, #niwot, #predictions, #realestate, #selling, #shiftingmarket, #superior, 2018, appreciation, bizwest, boulder, market

Boulder County’s Future Bright, but Challenges Ahead

Good times in Boulder County and in Colorado will continue said local economic experts at the recent Boulder Economic Forecast. But they caution that 2018 may not reach the heights of 2017, and the difficulties could impact us well beyond next year.

Organized by the Boulder Chamber and the Boulder Economic Council, the 11^th annual Boulder Economic Forecast was held on January 17 at the new Embassy Suites Hotel, and RE/MAX of Boulder was among the event’s sponsors.

“By almost every economic indicator we measure, 2017 was an historic year,” says Executive Director of the Boulder Economic Council Clif Harald in his opening remarks.

Statistics show a superlative year. Colorado ranked third in the country for the pace of GDP growth, while unemployment dropped to 2.5 percent, the second-lowest rate nationally. The state’s labor force soared with the fastest growth rate in the U.S., according to speaker Rich Wobbekind, Executive Director, Business Research Division, Leeds School of Business, CU-Boulder.

But, Harald noted that 2017 presented challenges, too. And, these challenges could escalate in the coming years.

He pointed to constraints for Boulder’s economy, including a shortage of labor and resources and high housing costs that cause long commutes for many Boulder County workers.

In his keynote address, Wobbekind called the labor shortage the area’s “biggest short-term challenge.”

While job growth in Boulder County continued in 2017, the pace slowed from the peak of 2014-15.

“Almost every industry sector reported lack of available labor or properly trained labor. This doesn’t go away,” Wobbekind says.

And chief among the factors impacting Boulder County: age.

Colorado State Demographer Elizabeth Garner says residents 65-and-older will represent 20 percent of residents by 2030. The 65+ group will be 77 percent larger than it was in 2015.

“We are aging fast,” says Garner, noting that the age wave will overtake the entire state.

Garner explains that demographics – and the age wave beginning to sweep the state – are an economic issue. As people retire, aging results in a labor shortage. When people choose to age in place, housing stock for people moving in or moving up is negatively impacted. Aging also impacts healthcare and public financing issues.

At the same time, those migrating here are typically ages 20-27 and never married. Total household income is below $50,000 for 80 percent; 65 percent earn less than $24,000. People move to Colorado for the jobs. But, Garner cautions, the biggest increase in jobs are those that are low- to medium- wage, while the cost of living is relatively high.

The highest income and spending group – 45- to 65- year-olds – is the smallest demographic in the state and in Boulder County. It also has the slowest growth rate and the numbers are declining.

In addition, diversity will increase as the Hispanic population is projected to grow from the current 20 percent to 30 percent by 2040.

Among the challenges and issues facing Boulder County and the state, Garner listed:

– Aging with its far reaching impact across the economy, housing, labor supply and healthcare. As the workforce ages and retires, Colorado could experience a natural decline;

-Disparate growth across the state with Colorado’s economy flourishing along the Front Range and 1-25 corridor, but far fewer gains in the rest of the state and rural areas;

-Attracting the best and brightest to Colorado;

-Population growing at slower rate, with a total population growth from 2015-2050 reaching 2.5 million along Front Range and 1.5 million in Denver;

Garner says Colorado’s population has increased by 578,000 since 2010, making it the eighth highest state in the U.S. for total growth.

Boulder County’s growth rate is the second lowest statewide. The population in-migration peaked in the 1990s. Garner notes that students move to Boulder for college, leave after graduation, then return, and then leave again. One key reason: As a young adult it’s hard to live, buy, and rent in Boulder.

Now, fewer young families live in Boulder, and the tide has shifted toward a higher number of deaths than births.

But the dynamics of Boulder County’s economy are strong, outperforming state and national economies in job growth and educational attainment.

Boulder County, though, has well-supported economic vitality, fueled by high concentrations of companies and employment in aerospace, biotechnology, cleantech, and information, according to Wobbekind.

The area’s high quality of life and business, and cultural and outdoor attractions appeal to a highly educated workforce and visionary entrepreneurs.

Incomes are above average. The median household income for Boulder County residents was $74,615 in 2016 compared to $65,685 for Colorado residents, according to data from the U.S. Census Bureau.

But Garner cautions that Colorado’s housing affordability is a big concern. The disparity between median home value and median income is the second-highest in the U.S., which fuels the labor shortage and decreases the ability for young families to live here.

For more information, see Boulder Economic Forecast presentations at:

http://bouldereconomiccouncil.org/bec_publications/2018-economic-forecast-presentations/

See Leeds School of Business, CU-Boulder’s Economic report at: https://www.colorado.edu/business/sites/default/files/attached-files/2018_colorado_business_economic_outlook.pdf

Posted on February 2, 2018 at 10:51 am
Jay Kalinski | Category: RE/MAX of Boulder | Tagged #aerospace, #biotechnology, #Boulder Chamber, #Boulder Economic Council, #Boulder Economic Forecast, #Boulder's Economy, #bouldercounty, #cleantech, #CU-Boulder, #economics, #housingaffordability, #information, #Leeds School of Business, #local, #realestate, #strongjobgrowth, 2018, colorado, re/max

Boulder Valley 2018 real estate predictions

Making predictions is always a risky business, but here are my top three predictions for 2018 and what they will likely mean for people in the market.

1. Appreciation will continue (but at a slower pace).

2. Inventory will increase in 2018.

3. Interest rates will rise modestly.

Conclusion: Sellers have been the primary beneficiaries of the real estate market since the recovery of the Great Recession, but 2018 will finally see buyers in a stronger position.

Jay’s monthly article via Boulder Valley 2018 real estate predictions – BizWest

Posted on January 13, 2018 at 2:26 pm
Jay Kalinski | Category: BizWest | Tagged 2018, appreciation, bizwest, boulder, boulder valley, interest rates, inventory, jay, jay kalinski, market, mortgage, real estate

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