Real Estate Brokers Expect Rise in Housing Starts
Real estate brokers in Denver, Colorado, are looking forward to one of the biggest residential development projects that will happen in the area in the coming years. According to brokers and housing analysts, the project will help speed up a housing market rebound after several years of declining housing sales and residential starts in the region.
With Denver foreclosure auctions taking a considerable share of the market, housing starts have gone down in the state in the past five years. Analysts are expecting an increase in housing starts this year, but they also stated that it will take a long time for the new home market to return to pre-crisis condition. The last time that the Denver metro area saw a healthy number of housing starts was in 2006.
During that year, the number of Colorado foreclosure home auction properties was not as high as it is today. Over 20,000 housing starts were recorded in the metro area in 2006. That number has declined to only 2,700 in 2009, but rebounded last year to reach 3,800. The figure is still way below 2006 levels and analysts expect that even with the projected 10% increase this year, it will take years before housing starts get back to normal.
That is why real estate brokers and housing analysts welcomed the news that a housing developer has recently secured funding for a residential project that will be started in Erie. Community Development Group has successfully secured financing for a development project called Bridgewater, which will entail the construction of over 2,700 residential units.
The project will be comprised mostly of single family dwellings that are expected to compete with properties offered at foreclosure home auction. The development will also include townhouses and apartments and is projected to add around 10,000 to the population of Erie, which stands at 19,000 at current estimates.
The development effort is expected to inject a much needed adrenaline to the housing industry of the metro area and provide jobs to constructors, real estate brokers and other sectors associated with the home building industry. Analysts stated that it also showed that developers are seeing a brighter future for Colorado's housing market.
