Friday Update December 31, 2021
I'm like reluctant to say that we made it through another year because there are still a few hours left. Don't want to jinx it, 2021 is not the year to fuck around with.
Today we have 243 single family existing homes on the market. Yesterday our neighbors to the north saw at least double that many homes burn in just a few hours. The amount of devastation in the Superior area is heartbreaking and we here at SRG are happy to do anything in our power to help, just let us know what can be done. It's really a rude awakening in the macro picture to think about the fact that the number of families that lost homes last night exceed the amount of homes available in all of El Paso County.
On the year we're looking at about 18,000 total sales. In 2020 we have just under 19,000 total sales so this year we saw a few less. 2019 we had just over 16,000 total sales. In the month of December alone in our region we closed out over 1250 units with less than 250 on the market today. That is not good for buyers and anyone telling you that this is a great time to buy is making money off the sale, is a liar, or both.
We started the year with interest rates on 10 year T notes just over 1%. We finish the year with rates on these government bonds at right around 1.5%. With real inflation rates around 10% who would want to hold government debt paying less than 2%? Oh yea, just the Fed. They print the money, finance the deficit, rinse and repeat.
Real fun house numbers again. Last week subfloor was about $33 a sheet. Today it's $45. What it's going to be next week is anyone's guess. Imagine right now that you lost everything including your home to a fire last night. You call your insurance company. They tell you that you're covered for roughly two thirds of what it will cost to actually rebuild your home. What do you do?
You guys make sure that your homeowners policy has an adequate amount of coverage for replacement cost because that number has gone up dramatically in the last 2 years. I'm going to do the same. It's one of my new year's resolutions to have adequate insurance on my stuff.
You guys I've got so much work I'm trying to finish this year that I'm going to leave this short. I hope that you have your goals envisioned for 2022. I hope that the next year brings you peace, joy and prosperity. I hope that we as a people here in the US and around the world are able to see more of our similarities than our differences. I hope that 2022 is the sigh of relief that we all hoped 2021 would be. I hope for these things, but I prepare for the opposite. Happy New Years to you all.
See you in 2022.
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