Recession? Housing Bubble? More Price Increases? What's the deal?

Common Real Estate Questions I'm hearing these days...

Kim, are these home prices sustainable?

Do we dare use the R word (recession)?

Certainly, this is a housing bubble, right?

Well, Colorado is continuing to see price increases across the state. In the seven-county metro area. Single-family homes hit a record median sale price of $615,000. That is a 27% increase from March 2021, according to the most recent report from the Colorado Association of Realtors.

The truth of the matter is... no one really, truly knows what is to come. The US economy grew at a phenomenal, historic 7% rate in the last quarter of 2021. GDP grew about 5.7% in 2021, more than double what we used to term 'strong' growth. We should EXPECT this to slow down. This phenomenal growth has fueled a huge imbalance in supply and demand in almost all things, resulting in price gains. No-one knows when a recession might happen although there is one certainty: a slowdown and recession is coming, but it's impossible to time these things accurately. All growth periods are followed by a slowdown. It could be in 2022, or 2023, or later.

If you walk away with any certainty… know that all recessions are not a GREAT recession. Minor recessions can turn around much faster. Recently Forbes showed the average period of economic growth lasted 3.2 years while the average recession lasted 1.5 years – an average of 4.7 years for the full cycle.The stock market prices in expectations as investors look forward, about 6 months on average, to anticipate what’s coming and decide what prices they’re willing to pay. The Tech Bubble fueled recession of 2001 lasted 8 months. The Great Recession of 2008-9 lasted 18 months. The Covid recession lasted just 2 months, the shortest in U.S. history.

It's important for us not to get bogged down by these matters and continuously speculate what’s to come. We have to remember recessions are simply an indicator of lower spending and growth, not the stopping of markets. Markets and life continue and so should you. If anything, enjoy all that equity you’ve gained over the last two years, and consider putting it to work. Takes money to make money, and right now is the right time to use it wisely.

The Emotion Sponge

Spongebob -animator Stephen Hillenburg for Nickelodeon

Even the nicest, kindest people can become unhinged, and this is to be expected with something as valuable both personally and financially as a home. Most clients do not do this size or level of transaction regularly. Yesterday again I was reminded how important it is that we be the calm force of reason in the storm, focused on diffusing and diluting flare-ups and offering tangible, practical solutions to the multiple, nuanced complications that arise.

While we have to absorb so many of the issues and calmly respond by offering intelligent, practical solutions and action-steps interspersed with some calm-inducing words of wisdom, authority, empathy and kindness, we need to be reminded that all that absorbing we do needs to be wrung out regularly...not unlike a sponge. Hence the silly image above.

Maison’s time-saving technology provides a business infrastructure to minimize stress and improve efficiency. It also allows us, as agents more time to deal with these emotional aspects ....and have the time to re-charge batteries that are often drained to zero! We love what we do and the amazing clients we have the privilege of doing it for. 32+ years of combined experience and still going strong…

March 2022 Newsletter

Hygge (hue-guh) is Danish for cozy

As much as I love good architecture I also enjoy unexpected interiors. A surprising wallpaper, a collection of coo coo clocks, or someone who can literally transform their personal space into something completely non-formulaic & all their own; it makes me smile. Aside from now being obsessed with Carson Kressley and Thom Filicia’s new show, Get a Room, I just love to find places for new inspiration. I’m not a HGTV gal, I literally can not digest the Property Brothers nor the ‘floppers” who seem to create their own tabloid drama. Don’t get me wrong I’m still hip on Chip & JoJo - they are too cool for school. But... Oops. I digress… As I was enjoying my magazine time with a little toe TLC I came across a recently published book called - Hygge & West Home: Design for a Cozy Life by Christian Coop and Aimee Lagos. Not only was I charmed by the cover of this lovely book which is completely designed around the concept of ‘cozy’ (yes, please) - but the web site at Hygee&West.com was equally as magnificent, and dare I use the word again… unexpected. Removable wall paper tiles (perfect if your renting), fabric and wallpaper patterns that you wouldn’t otherwise see in Denver, and tons of great fabric. Not cheap stuff, but cool and I’m intrigued. In fact, I’ve already ordered samples of multiple wallpaper styles to transform my office bathroom - long over do. Goodbye grass cloth. Be sure to check it out.

Oh the things we will see...

The 1990’s were known for being the “hey day” for Nautical inspired decor. Only, this one was seen last week as I was showing homes to some fun clients looking to live in Park Hill. Port holes, submarine door, sand porcelain tile, and the under water mural wall paper. Ironically, my Buyers are huge scuba divers but even this was over the top for them.

And a girl just can not get enough “she-sheds” these days… this is probably one of the more modern & chic backyard sheds I’ve seen during client showings. The possibilities are endless… an art studio, yoga space, man space, or an in-law suite. Loving the windows and landscape lighting in and around the shed. These are all over Oregon! What are we waiting for Denver?