Many people I talk to are understandably concerned with where prices are headed. I hear things like ‘what goes up must come down’. They think back to the housing bubble that peaked in 2006/07 that is believed to have been the cause of the ‘great recession’ and come to the conclusion that we are headed in the same direction. As I have pointed out before, the fundamentals that drove the previous market increases/collapse are VERY different from whats behind current market increases. Bears and Bulls alike predicted the market retraction which bottomed around 2010 (depending on your market). Going forward, even the most bearish of predictions suggest a market that will continue to appreciate.
Every quarter, Pulsenomics surveys a nationwide panel of over 100 economists, real estate experts, and investment & market strategists about where they believe prices are headed over the next 5 years. What they found is while there is a big difference between the optimists (bulls) and the pessimists (bears) both see the market continuing to appreciate. The average of those surveyed equated to a national appreciation of 17.3% by 2021. The bears predict 6.3% appreciation while the bulls predict 26.7%.
What does this matter for our area? Colorado and Berthoud specifically are a different market you say? Well, you are correct. Colorado tends to perform better than the national average. Colorado has a very diverse economy with a desirable climate and natural surroundings. So even a conservative estimate of where Colorado is headed should show strong appreciation.
Regarding Berthoud, we have a growing tax base, growing recreation opportunities and a unique and desirable environment. I think any legitimate prediction of values would suggest similar growth to that of Colorado (strong) and more specifically northern colorado which is stronger yet.
If you would like to discuss the real estate market further feel free to jump in on the conversation here or better yet lets talk in person. After all one of the hallmarks of small communities is that we value our people and face to face personal interaction. Feel free to give me a ring and we can meet up at one of our excellent breweries or coffee houses.