The first header under Wells Fargo's Colorado Economic Outlook: January 2010 reads "Colorado Recovery May Lag, but Future Looks Bright"

Boiling the mutli page report down to some basics...

We (Colorado) fell into a recession later than the rest of the nation.  We had a housing slump later (and much less severe) than the rest of the nation.  And since we entered our recession a little later we may lag a little on the recovery but as a whole the duration of our recession will be less than the rest of the nation and our bounce back is looking strong.

Why does folks consistently look to Colorado as the bounce back king of the nation.  There are several reasons why that the report discusses.  First and foremost, as we have said time and time again... folks love to live in Colorado.  Sunny skies, beautiful weather, thriving and well planned downtown, transportation, restaurants, events, the arts, major league sports teams in the downtown, and of course a wonderful mountain playground all combine for one great place to live. This translates into folks starting companies, growing employment bases, seeking out housing, and purchasing goods and services.  Keep following this and we have a base  for "strong population growth, better than average housing fundamentals, and an economic recovery fueled by high tech and alternative energy" which can provide support for the housing market and Colorado's bright future.

It all boils down to Colorado and Denver as a wonderful location to live.  Location Location Location.  Some other great and happy excerpts...

  • "Colorado's labor market remained healthy, with employment growth holding steady at about 2 percent per annum"
  • "Home prices are down just 7.7 percent from the peak, compared to a whopping 29.1 percent drop for the nation"
  • "...lower home prices and mortgate rates have led to a marked improvement in housing affordability.  The housing affordability index jumped to 168 in Q1 2009 from 113 in Q2 2006, before slipping to 156 in Q3 as home prices have rebounded".
  • "Home prices have firmed recently, however, and are up almost 8 percent from their February 2009 trough, thanks primarily to the home buyer tax credit."
  • Slowing job losses, a rebound in the stock market and some general economic improvement have also helped to shore up buyer confidence"
  • "Inventories of homes for sale are down about 17 percent from a year ago, according to local Realtor reports, suggesting the market is returning to a more healthy balance"

In their summary this report states...

"Colorado's recession will be shorter than the nation's.  The relative strength of the housing market, improved credit quality for both households and banks, strong population growth, expansive and expanding transportation networks and a solid base of high paying and growing industries will combine to pull Colorado out of the recession and set the stage for dynamic growth in the years ahead"

Great news!!  The article isn't all sunshine and roses.  The first few pages discuss what has happened thus far.  The industries hardest hit in Colorado and the various effects that have been felt.  But what was most pleasing for our reading was the recent trend of recovery and the vision for Colorado's growth.  It's still a great time to be a buyer for so many reasons and the vision of dynamic growth is inspiring.  This economic forecast is promising for existing homeowners while we search for our clients for the best buying opportunities to take advantage of what exists today and while the home buyer credit is still in place. Different new developments and each listing on the market today is different, and some are more aggressive today in creating incredible buyer incentives.  Please contact New Era Realty for all your Downtown Denver Condo and Loft questions.  We are here to help and our expertise and specialty is in the Downtown Denver Real Estate Market.

To read the full Wells Fargo Special Commentary please visit http://wellsfargo.com/research