Good considerations in today's Colorado Seller's Market...from thebalance.com
A home buyer does not want to be caught off guard in a seller's market. It's one of the reasons that the most important thing a home buyer can do is trust his or her real estate agent to advise on market conditions. If it is a seller's market, it could be very difficult, if not almost impossible, to buy the first home a buyer wants to buy.
Because home buyers generally have very little interest in the real estate market when they are not buying a home, they don't always know how the market moves from one season to another, much less from month to month.
It is often uncomfortable for a buyer to be told the market is a seller's market when the buyer may believe otherwise -- especially a buyer who is trying to buy in a down real estate market. Markets can change almost overnight. When the market changes to a seller's market, a buyer's home buying strategy needs to change with it. In a seller's market, a home buyer is unlikely to be successful using
the same techniques practiced in a buyer's market.
Preparing the Home Buying Offer in a Seller's Market
Time is of the essence. Multiple offers happen with more regularity in a sellers' market than a buyer's market. That's because by its very nature a seller's market is defined in part by low inventory and lots of home buyers. A beautiful home that is priced well can attract more than one offer. Remember, you mightnot be the only buyer.
•Price. Price is not always the most important factor. But do not offer less than list price. Realize you may need to offer more than the amount the seller is asking.
•Earnest Money Deposit. A larger earnest money deposit might look very attractive to a seller. Ask your agent for advice on the deposit; then consider doubling or tripling that amount. You're going to pay it anyway at closing.
Don't Request Favors. This is not the time to ask the seller to give you the refrigerator or washer and dryer, or part with fixtures, or paint the front door.
•Delay Buyer Possession. If it is customary for the seller to move at closing, give the seller a few extra days to move. Another buyer probably won't think of this maneuver, and the seller will look more kindly upon an offer that lets them move at leisure.
•Submit Preapproval and Proof of Funds Documentation. If your preapproval letter is from an out-of-area broker or lender, get a local preapproval instead. Match your preapproval letter to your sales price and date it the same day as your offer.
Ask Your Agent to Call the Listing Agent for Tips
Listing agents are often very busy. If your agent can save the listing agent some time by preparing the offer correctly, the listing agent might be inclined to recommend your offer over an offer from another agent who did not complete the offer the way the seller expects.
Think of it this way. Say a listing agent has two offers. One is exactly the offer the seller would like to sign. The other offer is not, and the other offer would need a counteroffer from the seller to compensate. Should the listing agent prepare a counter offer or should the buyer's agent revise the offer?
In this situation, it is better for the buyer's agent to revise the offer. It is faster. During the time it would take the listing agent to prepare a counter, send the counter offer for a signature, and then deliver the counteroffer to the buyer's agent, another full price could arrive. If you want to be the first offer, the best offer and the only offer the seller will accept, your offer needs to match the seller's expectations.
If you wait for the seller to sign a counteroffer, your offer could fall by the wayside. Your buyer's agent can find out what the seller wants by calling the listing agent or by reading the verbiage and instructions in MLS. Ask to see the agent's MLS information sheet. The agent's MLS printout is probably different than the information a home buyer receives.
Jump on that Seller's Market Showing
Don't be that buyer who wants to wait until the weekend to view a home in a seller's market. By the weekend, that home could be sold. Try to be one of the first showings. Sellers usually don't enjoy having buyers come through their homes at all hours of the day, so most would like to see their home sold quickly. If you write a good offer, a fast offer and a clean offer, your chances of acceptance are far better than those of a buyer who is unprepared. It may astonish you to know how many buyers are often unprepared.
Friday, June 29, 2018
Selling Your Home in a Hot Market
interesting considerations for selling your home in a seller's market...from nolo.com
When inventory is low and eager buyers are driving prices up, how can a seller best strategize for a successful home sale--and avoid pitfalls?
Sellers may think that a “hot” market means fast, easy money for their home. After all, a hot market means low inventory combined with lots of buyers looking for the perfect place. In many instances, a hot market does indeed mean a faster sale at or above asking price. However, there are some pitfalls that a seller in a hot market needs to be aware of before watching the money roll in.
Get Your Home Ready
One of the “lucky” aspects of a hot market is that outdated or quirky homes sell more quickly than they otherwise would. As buyers become more and more desperate for a home, they become more willing to overlook cosmetic flaws, and may even be more willing to accept pricey fixes such as an old roof or leaky windows.
A seller in a hot market has a better chance of selling a home “as-is” without having to make major updates. Whether you, as a seller, make any significant fixes to the property before listing is best decided through a discussion with your agent to evaluate comparable properties in your neighborhood.
Staging, on the other hand, is recommended even in a hot market. If you want to attract multiple offers on your property right after listing it, staging is probably the number one way to make that happen. In a hot market, buyers need to move quickly and are driven by first impressions and emotions. There is no better way to make someone fall in love with your house than to stage it. Giving it a “wow” factor will distinguish it from the rest of the pack and give it an even better advantage over any other homes that might go on the market at the same time. If you can’t afford to stage, at the bare minimum the property should be de-cluttered and thoroughly cleaned.
Get Your Paperwork In Order
Because properties in a hot market tend to sell quickly and have shorter contract deadlines, you need to be prepared to present all relevant documentation to potential buyers right away. Consider getting an inspection done before listing your property so you can present an accurate picture to buyers from the get-go. Have your disclosure documents all prepared and ready to go before the house goes on the market. If you as the seller appear completely prepared to sell, a buyer will feel more confident making a quick-closing offer.
Also, depending on your market, you or your agent may want to line up a title company before putting the home on the market. Although many contracts allow a buyer to designate the title company, having a reputable, efficient title company already “on hold” for the buyer can be helpful and allow the process to move more quickly. A buyer might still want to change the title company, but more often than not they will proceed with the seller’s chosen title company simply for ease.
Marketing Your House--Don’t Overlook the Professionals
Many sellers in a hot market will consider selling for sale by owner (FSBO). The impression in a hot market is that buyers are ready to jump at the first home that comes up for sale, and no marketing is needed. Therefore, why pay anyone a commission if the house will essentially sell itself? Although it may be true that there are plenty of buyers, sellers shouldn’t forego the expertise of a professional just yet.
If there is low inventory, buyers are more likely to use an agent to locate homes for sale either before they come on the market or immediately upon listing. Most of the time, agents are looking on the MLS or talking with other agents in order to find new listings for their buyers. Some ambitious agents might search want ads or Craigslist, but they are typically the exception rather than the rule. For the most exposure for your sale, you still want to hire an agent to advertise your home to take advantage of the multiple buyers that are out looking.
Be Prepared to Review and Make a Decision on Purchase Offers
Time the placement of your home on the market wisely: Be sure that you will be present or able to review all offers within a short amount of time after the property is listed. It may be advisable to advertise a time and date by which all offers should be submitted. This will allow you to know when you need to be available to review and consider all the offers reviewed (it can be a time-consuming process, so don’t be caught off-guard!).
Plan on responding to the offers within 24 hours. As a common courtesy, if you know you won’t be accepting certain offers, please let those buyers know as soon as possible so they can move on in their search. If you plan to counteroffer, do so in a timely manner. It is not uncommon for the negotiation process to take 24 to 48 hours.
Also, beware the “perfect” offer. Pressured buyers may make promises in their offers that they may not be able to keep just so that they can “capture” your house and put it under contract. If it sounds too good to be true, be aware that as the contract progresses the buyer may encounter unanticipated difficulties in keeping the contractual agreements. The best way to avoid this is to have open dialogue between the agents for the parties. A good seller’s agent should be able to get a feel for the ability and solidity of the buyer through talking with the buyer’s agent. You can also require that the buyer be preapproved and vetted by a lender. Some sellers in a hot market require that buyers be preapproved by the lender of their choice, even if the buyers ultimately work with another lender.
Be Prepared to Move Quickly
Hot markets see more buyers purchasing with cash or minimal financing than other markets. If you’re lucky, your buyer may not need to be approved for a loan, which would greatly reduce the amount of time your property is under contract. If you decide to accept an all-cash offer, you will likely close in a short amount of time.
Be prepared, at least mentally, for this possibility prior to placing your property on the market. It may even be wise to have a rental lined up if you do not find another property to buy right away.
Be Prepared for Problems with Appraisal
Hot markets often arise quickly. Appraisers may be comparing your property to properties sold at least a year ago. If no properties in your neighborhood have sold recently, an appraiser may have to look back many years to find comparable sales; sales which will likely be for a lot less than your current offer.
That can hurt you as a seller: If a property doesn’t appraise for the offer price, the buyer will have a lot of difficulty getting a loan for the current offer price. You may be forced to lower your sales price or seek out buyers who are paying cash and do not need the approval of an appraiser to complete the deal. Most of the time, if a property doesn’t appraise and the seller won’t lower the price, the deal is dead, as the buyer has no other options besides a traditional lender to cover the purchase price.
Take Advantage of the Hot Market
If you have unusual circumstances surrounding your sale--for example, you want to find another home to move into before moving out or a tenant whose lease won’t end for a few months--use the hot market to your advantage. Buyers are more wiling to accommodate sellers’ needs when inventory is low. Once offers come in on your property, you have greater bargaining power to use to accommodate special moving needs. Don’t be afraid of negotiating. Your buyer is just as aware as you are of the limited options on the market.
Don’t Get Your Hopes Up Too High!
Just because the market is hot does not guarantee multiple offers for over asking price.
Sure, you’ve heard about the house down the street that sold in two days for $50,000 over asking. But you do not know all the circumstances surrounding that sale. Perhaps it was just a fluke with the perfect buyers coming in for that house. Perhaps there was something highly unique to that property that made it sell so fast and for so much money.
House prices can differ drastically within neighborhoods. Many criteria that aren’t readily apparent from researching the MLS or past sales might make a property sell for more: a great layout, lots of light, decorator colors, or mature fruit trees are all examples of things that might tip buyers into a frenzy that creates high prices and multiple offers.
Your home might not offer these. Take solace in the fact that you are selling in an up market and are more likely to sell for closer to your asking price than you would in a down market. And, if you happen to be one of the lucky ones who garners more from the sale than you ever imagined, feel free to pop the champagne at closing!
When inventory is low and eager buyers are driving prices up, how can a seller best strategize for a successful home sale--and avoid pitfalls?
Sellers may think that a “hot” market means fast, easy money for their home. After all, a hot market means low inventory combined with lots of buyers looking for the perfect place. In many instances, a hot market does indeed mean a faster sale at or above asking price. However, there are some pitfalls that a seller in a hot market needs to be aware of before watching the money roll in.
Get Your Home Ready
One of the “lucky” aspects of a hot market is that outdated or quirky homes sell more quickly than they otherwise would. As buyers become more and more desperate for a home, they become more willing to overlook cosmetic flaws, and may even be more willing to accept pricey fixes such as an old roof or leaky windows.
A seller in a hot market has a better chance of selling a home “as-is” without having to make major updates. Whether you, as a seller, make any significant fixes to the property before listing is best decided through a discussion with your agent to evaluate comparable properties in your neighborhood.
Staging, on the other hand, is recommended even in a hot market. If you want to attract multiple offers on your property right after listing it, staging is probably the number one way to make that happen. In a hot market, buyers need to move quickly and are driven by first impressions and emotions. There is no better way to make someone fall in love with your house than to stage it. Giving it a “wow” factor will distinguish it from the rest of the pack and give it an even better advantage over any other homes that might go on the market at the same time. If you can’t afford to stage, at the bare minimum the property should be de-cluttered and thoroughly cleaned.
Get Your Paperwork In Order
Because properties in a hot market tend to sell quickly and have shorter contract deadlines, you need to be prepared to present all relevant documentation to potential buyers right away. Consider getting an inspection done before listing your property so you can present an accurate picture to buyers from the get-go. Have your disclosure documents all prepared and ready to go before the house goes on the market. If you as the seller appear completely prepared to sell, a buyer will feel more confident making a quick-closing offer.
Also, depending on your market, you or your agent may want to line up a title company before putting the home on the market. Although many contracts allow a buyer to designate the title company, having a reputable, efficient title company already “on hold” for the buyer can be helpful and allow the process to move more quickly. A buyer might still want to change the title company, but more often than not they will proceed with the seller’s chosen title company simply for ease.
Marketing Your House--Don’t Overlook the Professionals
Many sellers in a hot market will consider selling for sale by owner (FSBO). The impression in a hot market is that buyers are ready to jump at the first home that comes up for sale, and no marketing is needed. Therefore, why pay anyone a commission if the house will essentially sell itself? Although it may be true that there are plenty of buyers, sellers shouldn’t forego the expertise of a professional just yet.
If there is low inventory, buyers are more likely to use an agent to locate homes for sale either before they come on the market or immediately upon listing. Most of the time, agents are looking on the MLS or talking with other agents in order to find new listings for their buyers. Some ambitious agents might search want ads or Craigslist, but they are typically the exception rather than the rule. For the most exposure for your sale, you still want to hire an agent to advertise your home to take advantage of the multiple buyers that are out looking.
Be Prepared to Review and Make a Decision on Purchase Offers
Time the placement of your home on the market wisely: Be sure that you will be present or able to review all offers within a short amount of time after the property is listed. It may be advisable to advertise a time and date by which all offers should be submitted. This will allow you to know when you need to be available to review and consider all the offers reviewed (it can be a time-consuming process, so don’t be caught off-guard!).
Plan on responding to the offers within 24 hours. As a common courtesy, if you know you won’t be accepting certain offers, please let those buyers know as soon as possible so they can move on in their search. If you plan to counteroffer, do so in a timely manner. It is not uncommon for the negotiation process to take 24 to 48 hours.
Also, beware the “perfect” offer. Pressured buyers may make promises in their offers that they may not be able to keep just so that they can “capture” your house and put it under contract. If it sounds too good to be true, be aware that as the contract progresses the buyer may encounter unanticipated difficulties in keeping the contractual agreements. The best way to avoid this is to have open dialogue between the agents for the parties. A good seller’s agent should be able to get a feel for the ability and solidity of the buyer through talking with the buyer’s agent. You can also require that the buyer be preapproved and vetted by a lender. Some sellers in a hot market require that buyers be preapproved by the lender of their choice, even if the buyers ultimately work with another lender.
Be Prepared to Move Quickly
Hot markets see more buyers purchasing with cash or minimal financing than other markets. If you’re lucky, your buyer may not need to be approved for a loan, which would greatly reduce the amount of time your property is under contract. If you decide to accept an all-cash offer, you will likely close in a short amount of time.
Be prepared, at least mentally, for this possibility prior to placing your property on the market. It may even be wise to have a rental lined up if you do not find another property to buy right away.
Be Prepared for Problems with Appraisal
Hot markets often arise quickly. Appraisers may be comparing your property to properties sold at least a year ago. If no properties in your neighborhood have sold recently, an appraiser may have to look back many years to find comparable sales; sales which will likely be for a lot less than your current offer.
That can hurt you as a seller: If a property doesn’t appraise for the offer price, the buyer will have a lot of difficulty getting a loan for the current offer price. You may be forced to lower your sales price or seek out buyers who are paying cash and do not need the approval of an appraiser to complete the deal. Most of the time, if a property doesn’t appraise and the seller won’t lower the price, the deal is dead, as the buyer has no other options besides a traditional lender to cover the purchase price.
Take Advantage of the Hot Market
If you have unusual circumstances surrounding your sale--for example, you want to find another home to move into before moving out or a tenant whose lease won’t end for a few months--use the hot market to your advantage. Buyers are more wiling to accommodate sellers’ needs when inventory is low. Once offers come in on your property, you have greater bargaining power to use to accommodate special moving needs. Don’t be afraid of negotiating. Your buyer is just as aware as you are of the limited options on the market.
Don’t Get Your Hopes Up Too High!
Just because the market is hot does not guarantee multiple offers for over asking price.
Sure, you’ve heard about the house down the street that sold in two days for $50,000 over asking. But you do not know all the circumstances surrounding that sale. Perhaps it was just a fluke with the perfect buyers coming in for that house. Perhaps there was something highly unique to that property that made it sell so fast and for so much money.
House prices can differ drastically within neighborhoods. Many criteria that aren’t readily apparent from researching the MLS or past sales might make a property sell for more: a great layout, lots of light, decorator colors, or mature fruit trees are all examples of things that might tip buyers into a frenzy that creates high prices and multiple offers.
Your home might not offer these. Take solace in the fact that you are selling in an up market and are more likely to sell for closer to your asking price than you would in a down market. And, if you happen to be one of the lucky ones who garners more from the sale than you ever imagined, feel free to pop the champagne at closing!
Milan Hejduk's Mansion With Ice Rink and Custom Zamboni in Colorado Is Listed for $5.2M
looking to get out of the heat, buy a house with a hockey rink....
from realtor.com
Next time you're drooling over a luxury home listing, ask yourself this: Does it come with a custom Zamboni?
If not, skip it, because it is not as awesome as this house. Owned by former Colorado Avalanche forward Milan Hejduk, this six-bedroom, five-bathroom mansion in Parker, CO, has all the bells and whistles you'd expect from a pro athlete's house, plus some you wouldn't.
Other amenities in the 16,873-square-foot palace include a wine room, seven fireplaces, a hot tub off the master bedroom, a home gym with a wet bar, 2.25 acres of land, an updated kitchen, parking for five vehicles, and a covered patio.
The ice rink is in a separate structure on the property and includes an awesome wood-paneled clubhouse with a fireplace, small kitchen, second-story living room, and sleeping loft. We see this guesthouse earning the Airbnb gold medal.
Not a big fan of lacing up ice skates? The ice rink could be dismantled and the space turned into a tennis court, garage, studio, or whatever tickles your fancy. But this would mean giving up the opportunity to operate a Zamboni owned by the three-time NHL All-Star.
The private lot has incredible views of the surrounding mountains, and there's a golf course located in the development for those times when you're tired of being checked into the boards.
The ice rink also offers a wealth of opportunities. Want to work on your slap shot? Ice dance rehearsal? Or Elvis Stojko cosplay meetup? At $5.2 million, it's hard to find a better deal on a place to skate that also sleeps 12. When you factor in what you're saving on ice rink fees, you're practically saving money.
Hejduk, a native of the Czech Republic, played 14 seasons with the Colorado Avalanche and scored 375 goals over the course of his career. He was also a member of the gold medal–winning Czech hockey team at the 1998 Winter Olympics.
from realtor.com
Next time you're drooling over a luxury home listing, ask yourself this: Does it come with a custom Zamboni?
If not, skip it, because it is not as awesome as this house. Owned by former Colorado Avalanche forward Milan Hejduk, this six-bedroom, five-bathroom mansion in Parker, CO, has all the bells and whistles you'd expect from a pro athlete's house, plus some you wouldn't.
Other amenities in the 16,873-square-foot palace include a wine room, seven fireplaces, a hot tub off the master bedroom, a home gym with a wet bar, 2.25 acres of land, an updated kitchen, parking for five vehicles, and a covered patio.
The ice rink is in a separate structure on the property and includes an awesome wood-paneled clubhouse with a fireplace, small kitchen, second-story living room, and sleeping loft. We see this guesthouse earning the Airbnb gold medal.
Not a big fan of lacing up ice skates? The ice rink could be dismantled and the space turned into a tennis court, garage, studio, or whatever tickles your fancy. But this would mean giving up the opportunity to operate a Zamboni owned by the three-time NHL All-Star.
The private lot has incredible views of the surrounding mountains, and there's a golf course located in the development for those times when you're tired of being checked into the boards.
The ice rink also offers a wealth of opportunities. Want to work on your slap shot? Ice dance rehearsal? Or Elvis Stojko cosplay meetup? At $5.2 million, it's hard to find a better deal on a place to skate that also sleeps 12. When you factor in what you're saving on ice rink fees, you're practically saving money.
Hejduk, a native of the Czech Republic, played 14 seasons with the Colorado Avalanche and scored 375 goals over the course of his career. He was also a member of the gold medal–winning Czech hockey team at the 1998 Winter Olympics.
Activist withdraws initiative to limit housing growth in Denver area
big news on something that could of drastically affected Colorado growth...from Denver Business Journal...
Activist withdraws initiative to limit housing growth in Denver area
Colorado voters will not have the chance to decide in November whether or not to limit residential growth along the Front Range, as the author of a proposed ordinance to do just said he will not try to collect signatures to get his proposal on the statewide ballot.
Golden activist Daniel Hayes told the Denver Business Journal in an email Wednesday that the signature-gathering firm he was set to hire told him that a legal battle over the language of Initiative 66 concluded too late, leaving too little time to gather the signatures necessary to get it in front of voters this fall. He said that he was disappointed but will remain engaged in battles over issues like school bonding measures, which he feels are nothing more than growth subsidies to build schools for new homes.
“I think a recession is just around the corner, and this overbuilt mess we have will collapse like yesterday’s carnival,” Hayes said in the email. “66 would raise wages and improve quality of life for CO citizens.”
Hayes’ statements came in response to an inquiry about a poll run by Coloradans for Responsible Reform, a business-led group that had re-formed this year specifically to fight the growth-limitation measure. The poll, done by Hill Research Consultants of Alabama, showed only 36 percent of voters supported the limitation, with another 50 percent opposed and 14 percent undecided.
Initiative 66 would have limited the seven counties in the Denver metro area, as well as El Paso, Larimer and Weld counties, to growing their permitted number of housing units by no more than 1 percent each year
and would have banned local citizens from petitioning to remove the cap until 2021 at the earliest.
It also would have allowed other cities and counties to ask voters to approve similar regulations and established statutory requirements on the number of voters needed to launch such local elections.
CFRR — which was led by groups such as the Colorado Association of Home Builders and Housing Colorado — argued that the proposal would cap growth artificially in low-unemployment counties currently booming from an influx of new jobs, and would have driven up already skyrocketing housing prices by limiting new supply on the market. Stand-alone homes and apartments each would have counted as one unit against the 1 percent growth cap.
The organization funded the poll just as it was gearing up to hire staff and ramp up its fundraising in advance of the November election. However, Ted Leighty, CEO of the home builders association and CFRR chairman,
said Wednesday after being told of Hayes’ statements that the organization no longer plans to scale up, though it will keep watching to ensure he actually withdraws the initiative. “Our polls show that Colorado voters did not see Initiative 66 as an idea that had any kind of legitimacy,” Leighty said. “I think the poll shows that [not running the initiative] is his best move.”
Anti-growth or slow-growth sentiment has been growing in the area in recent years, fueled by increasing congestion on Denver-area roads and the fast-rising cost of housing reflecting the influx of well-paid new residents. The average cost of a Denver-area home in May reached $540,624 — a record for the region and an 11 percent increase from one year ago, according to the Denver Metro Association of Realtors.
In November, voters in several suburbs, particularly Lakewood and Greenwood Village, elected majorities to their city councils that favored some limitations on the growth of their cities. Lakewood officials previously had suggested the idea of a residential-growth cap and a temporary moratorium on new housing.
Leighty said that with Initiative 66 appearing to be off the table, officials should redouble their efforts to improve infrastructure, particularly when it comes to transportation.
Two proposed funding measures for transportation could be on the November ballot — an initiative from the Denver Metro Chamber of Commerce to raise sales tax by 0.62 cents in order to raise enough to sell $6 billion in bonds for roads and transit, and an Independence Institute measure that would require the Legislature to set aside $350 million each year from the general fund to repay $3.5 billion in bonds, largely for state highways.
Activist withdraws initiative to limit housing growth in Denver area
Colorado voters will not have the chance to decide in November whether or not to limit residential growth along the Front Range, as the author of a proposed ordinance to do just said he will not try to collect signatures to get his proposal on the statewide ballot.
Golden activist Daniel Hayes told the Denver Business Journal in an email Wednesday that the signature-gathering firm he was set to hire told him that a legal battle over the language of Initiative 66 concluded too late, leaving too little time to gather the signatures necessary to get it in front of voters this fall. He said that he was disappointed but will remain engaged in battles over issues like school bonding measures, which he feels are nothing more than growth subsidies to build schools for new homes.
“I think a recession is just around the corner, and this overbuilt mess we have will collapse like yesterday’s carnival,” Hayes said in the email. “66 would raise wages and improve quality of life for CO citizens.”
Hayes’ statements came in response to an inquiry about a poll run by Coloradans for Responsible Reform, a business-led group that had re-formed this year specifically to fight the growth-limitation measure. The poll, done by Hill Research Consultants of Alabama, showed only 36 percent of voters supported the limitation, with another 50 percent opposed and 14 percent undecided.
Initiative 66 would have limited the seven counties in the Denver metro area, as well as El Paso, Larimer and Weld counties, to growing their permitted number of housing units by no more than 1 percent each year
and would have banned local citizens from petitioning to remove the cap until 2021 at the earliest.
It also would have allowed other cities and counties to ask voters to approve similar regulations and established statutory requirements on the number of voters needed to launch such local elections.
CFRR — which was led by groups such as the Colorado Association of Home Builders and Housing Colorado — argued that the proposal would cap growth artificially in low-unemployment counties currently booming from an influx of new jobs, and would have driven up already skyrocketing housing prices by limiting new supply on the market. Stand-alone homes and apartments each would have counted as one unit against the 1 percent growth cap.
The organization funded the poll just as it was gearing up to hire staff and ramp up its fundraising in advance of the November election. However, Ted Leighty, CEO of the home builders association and CFRR chairman,
said Wednesday after being told of Hayes’ statements that the organization no longer plans to scale up, though it will keep watching to ensure he actually withdraws the initiative. “Our polls show that Colorado voters did not see Initiative 66 as an idea that had any kind of legitimacy,” Leighty said. “I think the poll shows that [not running the initiative] is his best move.”
Anti-growth or slow-growth sentiment has been growing in the area in recent years, fueled by increasing congestion on Denver-area roads and the fast-rising cost of housing reflecting the influx of well-paid new residents. The average cost of a Denver-area home in May reached $540,624 — a record for the region and an 11 percent increase from one year ago, according to the Denver Metro Association of Realtors.
In November, voters in several suburbs, particularly Lakewood and Greenwood Village, elected majorities to their city councils that favored some limitations on the growth of their cities. Lakewood officials previously had suggested the idea of a residential-growth cap and a temporary moratorium on new housing.
Leighty said that with Initiative 66 appearing to be off the table, officials should redouble their efforts to improve infrastructure, particularly when it comes to transportation.
Two proposed funding measures for transportation could be on the November ballot — an initiative from the Denver Metro Chamber of Commerce to raise sales tax by 0.62 cents in order to raise enough to sell $6 billion in bonds for roads and transit, and an Independence Institute measure that would require the Legislature to set aside $350 million each year from the general fund to repay $3.5 billion in bonds, largely for state highways.
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