Rising interest rates and gas prices are the biggest factors contributing to Denver’s dismal housing market.
Sales of new homes in metro Denver through the third quarter are down 19.6 percent compared to the same period last year, according to a report released today by the Genesis Group. Existing home sales declined 9.5 percent.
“It started in the fourth quarter of last year when interest rates started to go up and we had sticker shock at the gas pump,” said Mike Rinner, senior analyst with Englewood-based Genesis. “It continued into the first and second quarter.
“Then we had a war break out in the Middle East between Israel and Lebanon and everyone started worry more about oil prices and interest rates continue to go up,” Rinner said. “Third quarter, just kind of a hangover effect.”
Things are worse in Northern Colorado, with declines in new home sales ranging from 3.4 percent in southern Weld County to 41 percent in Windsor/Severance, according to the report.
“Windsor/Severance doesn’t have as big a commercial and employment base to serve people,” Rinner said. “Fuel prices and driving distances and lack of proximity to shopping are forcing people to think twice about moving out to a big lot, semi-suburban location.”
Staff writer Margaret Jackson can be reached at 303-954-1473 or at mjackson@denverpost.com
