It’s all about jobs. Job growth in the Grand Valley has been trending in a negative direction since the 4th quarter of 2008. We see an anemic commercial and residential real estate market because job growth has left the area. Obviously, it’s business or government that creates projects that hire companies that need buildings to operate from so that employees may work in these buildings and then go home to their own homes at the end of the day.
Usually these projects are needed because a growing population demands more goods and services. Therefore, a growing economy creates a trickle-down effect that soon requires more population benefits and real growth is then achieved. As the economy strengthens, so does the demand for commercial and residential real estate. The old saying that a rising tide raises all ships is true in sailing and in real estate economics.
Our economy is cyclical and many of us in western Colorado have lived through at least two booms and busts. The question we Realtors are asked quite often is, “When are we going to hit the bottom of this market?”
One answer could be, “When the job market is so soft that people are taking jobs in other locations where jobs are prevalent.”
Another answer may be, “When housing prices stabilize and quit falling.”
And still another answer may be, “When our government realizes that jobs are more important than excess regulation and leaders begin to offer incentives to companies and individuals who bring jobs to our area and our state.”
We Coloradans are a unique breed. We’re here because we love clean air, beautiful mountains, good jobs and we enjoy being around similarly-minded people. We also enjoy outdoor sports, be it mountain biking, snow skiing, hiking, golf or just sight-seeing. We love where we live and we choose to stay here…as long as we’re able. It’s our work or avocation, and our ability to prosper in that avocation which helps our economy to also grow and prosper.
We have a choice. We may look at the down economy as a situation that is insurmountable, or we, as individuals, as a community and as a state, may look for the opportunity that always comes with a down economy. It is amazing that more millionaires were created during the Great Depression than at any other time in our country’s history. These were people who were forced to start a business or to go to work in a new industry, enter farming, or to invest in real estate. Two things they had in common were a survival instinct and a desire to improve their lot. And so they did.
Is it time to jump on the real estate bandwagon and invest for our future? Only time will prove that out. But real estate investment, either for our personal use or for investment, when done properly, should create a lasting benefit for investors and their heirs. This may be a good time to raise our heads out of the doldrums and to search for ways to invest in our real estate future.
Call any of our CBC brokers for help with your real estate decisions.