The Housing Snowball Effect is not likely to melt soon and the Weather Channel has nothing to do with it. What’s happening up in the ski resorts, likewise. The ‘snowball effect’ being discussed in print and on TV won’t soften anytime soon (even if the groundhog was right about winter being over)..
This is an economic snowball -- one that’s gathering momentum following what CNN’s Money website describes as “the best year for U.S. real estate market in five years.” Businesses that stand to benefit from growth in the Castle RockCentennialCherry Hills VillageGreenwood Village housing market are watching closely.
The Wall Street Journal’s snowball report took form in last Monday’s Marketplace section, where the top headline read “Housing Recovery Opens Spigot…Makers of Products from Carpets to Air Conditioners Feel Effects of Rebound.”
It was even more heartening as a counter to last week’s government indications that the greater economy seemed to slow. The housing sector’s performance was so strong it acted as a tonic to its many associated industries: among them, many Castle RockCentennialCherry Hills VillageGreenwood Village retailers.
The snowball effect was noted widely. The company that makes Carrier air conditioners said that orders rose 20%; Honeywell International reported the “first sign of life we have had in a while.”
Locally, fingers were crossed that Denver Metro Areabusinesses will be swept up in the snowball. National suppliers expected that to happen. “Housing is what we see leading the economy out of the doldrums,” according to the CFO of United Technologies Corp. The WSJ reported evidence that Americans are spending more to build and refurbish their properties.
With sales of existing housing registering the largest annual jump since 2004, it should come as no surprise if Credit Suisse’s Daniel Oppenheim proves correct in predicting a 7%-8% rise in home improvement spending. He expects it to keep going for at least the next two years. That’s a pretty solid forecast, and in line with what most observers are saying.
The Denver Business Journal reported this week that the Denver Metro Area hit a 23 year low in inventory and the number of homes under contract month over month is up by 43%.
All in all, the boost from the housing recovery is one snowball no one seems to think is likely to melt soon -- regardless of what Punxsutawney Phil has to say about it.
Jason Peck is part of Carr, Peck & Associates at Keller Williams. He has been recognized locally and nationally as in expert in real estate. Locally, he is one of the top selling agents in the Denver Metro Area out of 5,000 agents and has been recognized by the Wall Street Journal and Real Trends as one of the top selling agents in the country. He is co-author of the National Best Selling Book, “The New Rise in Real Estate”. For more information feel free to call him at 720-588-3110.
Author:Jason Peck Phone: 720-446-6301 Dated: February 9th 2013 Views: 1,925 About Jason: ...
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