Retail stores across the U.S. reported increased sales during May, according to the International Council of Shopping Centers (ICSC). Revenue at stores that have been open for at least a year rose 3.2 percent in May compared with the same month a year ago.

Many point to consumer confidence in a steadily improving U.S. economy, and improving job picture, a stronger housing market, and stock market rallies as the leading factors behind the spike in sales.

Michael Niemira, chief economist at the ICSC, explains, "some underlying improvement in the U.S. economy along with an improving 'wealth effect from rising stock and home prices is helping to lift the sales pace." Niemira reportedly expects the gradual increase in retail sales to continue, predicting revenue to rise 3 to 3.5 percent in June.

Some of the best retail performers were: Costco Wholesale Corp which reported that revenue for stores open at least a year rose 5 percent. SteinMart saw a spike of 8.2 percent, much higher than the projected 2 percent rise it had anticipated. L Brands Inc., operator of Victorias Secret and Bath and Body Works saw a 3 percent rise in sales. In the teen sector, Buckle Inc., saw a 4.1 percent rise as teens began to purchase spring and summer clothing apparel.

The new data comes just as the Labor Department reported that the number of Americans seeking unemployment benefits fell 11,000 last week to a seasonally adjusted 356,000--a level consistent with steady job growth.

Photo source: Breibart.com

Posted in Headlines, Denver Colorado Real Estate, Real Estate Market Conditions

The real estate market across the U.S. is improving. Banks are lending again. Homeowners are seeing the values of their homes increase as buyers engage in a bidding war for a limited (although expanding) inventory. Many are claiming that we are witnessing the early stages of another housing bubble brought on by the following conditions:

• The home building industry is largely dormant, although were starting to see construction of new developments in the wake of the financial crisis. This has effectively limited the current supply of new homes.
  
• Speculative buyers--who purchased foreclosed homes at extremely low prices during the market crash--are increasingly hesitant to sell as housing prices continue to increase nationally.
  
• Extremely low interest rates have made homeownership an attractive idea to many Americans.
  
• Mortgage defaults have gone down as luxury home sales have gone up.
  
• A general change in attitudes towards the housing market from "wait and see" to "get in now."
  

For sellers, these factors have created an environment where they can sell their homes for prices that were inconceivable just 12-18 months ago.

Meanwhile, buyers are seeing housing prices moving ahead (and far beyond in some situations) of incomes. Many are choosing to wait until supply and demand evens out in the housing market before entering it. According to an article published in Forbes magazine, by that time, "the Federal Reserve may finally return interest rates to near pre-crisis levels, while inventories are more likely to align with demand." Consequently, home prices should become more affordable for buyers trying to enter the market.

Investors, meanwhile, are taking advantage of the bullish conditions of the housing market. According to the Forbes article, the following investments are particularly enticing to investors:

• MGM Resorts International: Luxury gaming destinations have helped to fuel economic rebounding in places like Las Vegas, where stalled projects like City Center have finally managed to turn a profit.
  
• Weyerhaeuser: Investors are starting to invest in the companies that supply materials new home construction, including Weyerhaeuser.
  
• Sherwin-Williams Company: This is another example of a company that supplies materials for new home construction that has the potential to turn substantial profits for investors looking to take advantage of the bullish market conditions.
  
• HCP Inc: As the population continues to age, the demand for assisted-living facilities continues to grow, leading to continued expansion of the industry. According to the Forbes article, "HCP offers a robust upside opportunity on this combined real-estate and demographic trend opportunity, with a solid dividend for investors."
  
• Prologis: The Forbes article explains, "Industrial real estate is also a strong bet for the current real estate surge, providing upside both in terms of real estate assets and in terms of increased corporate spending from an improving economy."
  

The past five years have shown that real estate cycles are unpredictable even to the most trained and skillful economists. Its safe to say, though, that the housing market will likely start to improve for home buyers trying to enter the market as construction of new homes fuels supply and as the aforementioned speculative buyers begin to place their closely help properties onto the market. It is, however, very difficult to predict when these things will happen.

Meanwhile, investors have a tremendous opportunity to focus on investment opportunities that can potentially drive the real-estate market.

Photo source: nytexaminer.com

Posted in Headlines, Denver Colorado Real Estate, Real Estate Investing, Real Estate Market Conditions

Denvers housing market continues to trend towards recovery, with inventory of houses on the market increasing by 18 percent from April to May. Independent real estate analyst Gary Bauer explains that this situation is one that will help both home buyers and home owners.

Bauer explains, "the more inventory we have available helps the market.....Prospective home sellers who have been sitting on the fence now are coming off the fence and putting their homes on the market. The homebuyers who are out there every day facing multiple offers and prices increases, they have more to look at."

Further, Bauer described the Denver metro home market as "strong, fast and the buyer demand is just continuing--so it is amazing." Bauer further commented, "the homes are flying off the shelf almost as fast as they are coming on the market." During the month of March, there were 6,945 homes for sale on the market. In May, there were 8,214.

Bauer expects that home prices will rise five percent over the summer months. "School is out and the prime home selling/buying season is in full swing," Bauer commented.

Since January, 29,879 homes have been on the market in Denver. 29,547 homes were under contract, and 20, 632 homes closed for a closed volume of $6.1 billion.

When asked about a bubble, Bauer commented, "If nothing else changes, I do not see a bubble. I do not see it."

Photo source: 48hourfilm.com

Posted in Headlines, Denver Colorado Real Estate, Blogging, Real Estate Industry

The U.S. Bureau of Economic Analysis released new data today on 2012 real GDP. According to the report, real gross domestic project (GDP) increased in 49 states and in the District of Columbia in 2012. The report also shows that durable-goods manufacturing, finance and insurance, and wholesale trade were the leading contributors to the real U.S. economic growth. A comparison of 2012 and 2011 data shows that the U.S. real GDP by state grew 2.5 percent in 2012 after a 1.6 percent increase in 2011.

The report includes a map comparing GDP growth among the states. According to it, Colorado falls in the middle quintile for real GDP growth among the states, with a year over year growth rate of 2.1 percent.

A graph included in the report shows per capita real GDP, comparing U.S. data with Colorado data. In 2012, Colorado per capita real GDP was $46,242 and the U.S. level was $42, 784.

In year-over-year growth for per capita real GDP, we find that the US has been slightly outpacing Colorado since 2010. Some of this disparity can be attributed to Colorados population growth amidst stable incomes and productivity.

Photo source: U.S. Bureau of Economic Analysis

Posted in Headlines, Denver Colorado Real Estate

The Denver area is listed as one of the top 10 Metro area housing markets across the country where homes are selling the fastest.  Homes in the area have seen bidding wars between potential buyers.

According to REALTOR® Magazine, for sale listings in the U.S. sold in a median of 111 days in December 2012.  Denver's median days on the market is 54.

The other fastest selling markets are in California ranging from a median of 27 days on the market to 68 days. Phoenix, Arizona also made the list with homes selling in a median of 61 days. 

Experts attribute the hot housing market to a decline in inventory, which is at 50% below the levels at the height of the housing crisis. List prices increased significantly in the first half of 2012, but by December, the median list price was roughly the same as it was one year ago.

Read the full story at REALTOR.com

photo credit: Bunches and Bits {Karina}

Posted in Headlines, Denver Colorado Real Estate, Real Estate Investing