Friday Update December 10, 2021
Right to the nitty gritty yea? We have 350 total single family homes on the market in El Paso County. Of those 253 are in the city limits of Colorado Springs. Of those 100 are at or below the median price of $450,000. Of those 44 are 3+ bedrooms, 2+ bathrooms, 2+ car garage and eligible for VA. So of the 350 homes on the market at least 44 of them are going to get muliple upon multiple offers this weekend and sell for tens of thousands above list price.
We have seen 328 closings so far already in December. Average price on those is above $517,000. Inventory at roughly 11-12 days in what is supposed to be the slow season. It is not slow at all.
Rates are still within the same range we've been in for several months now. Rates did rebound off the low of last week and the 10 year today is around 1.48%. Still well below the levels of a few weeks ago and within a non concerning range. We will see what happens with the next couple of Fed meetings.
Sounds like maybe the new cousin is kind of a bitch and not scary enough so the news is shifting gears to a Russian invasion of the Ukraine. I'm sure I'll make some friends for saying this but do you know how fucking stupid that sounds? Russia has already succcessfully fractured off the Russian speaking portions of the Ukraine by actively supporting separatist forces in the Eastern portion of the country. Also Russia succesfully annexed Crimea without firing a shot because guess why, the majority of the population there is Russian speaking and saw a better future for themselves with Russia than with the Ukraine. Russia is the largest country in the world by a longshot with ports accessing the Atlantic, Arctic and Pacific oceans. Russia needs more land like America needs more fat people.
How is any of that related to what's going on in real estate here locally? Well by reporting on an invasion that won't happen the media can ignore other things. Like the doubling of the tarriff on Canadian lumber which sent futures pricing up to now over $1050/1000 board feet. We can ignore that once again our politicians chopped up the pork and agreed to raise the debt ceiling instead of making any real effort to balance the budget. The fact that inflation is now running at the highest level since 1982, and will go higher before the Fed intentionally smashes all markets, that is a blip on the news radar. Our national debt has crossed 29 trillion dollars. The Federal Budget deficit is about 2.8 trillion this year. The current administration is trying to plug the holes in the deficit by taking away tax advantages from rich people which will ultimately result in less real estate sales, less development, and less inventory. As in even less affordable housing as incentives are stripped. US M2 money supply is about to hit 21.5 Trillion dollars with the Central Bank holding close to 9 trillion in "assets" backed by nothing more than the faith in the US dollar.
But hey, look at what Russia is doing. Don't worry about our own problems. Sure everything around you is getting more expensive. Sure affordable housing is a pipe dream in most metro markets. Sure we're on an exponential curve of debt getting up on the hockey stick. But just focus on Russia or Covid. And you better listen good so you're nice and scared while its your own central bank that robs you.
Have a great weekend!