California-based CoreLogic recently reported that according to their research, Denver’s still-hot housing market could cool down over the next year, and metro homes could drop as much as 10 percent in value by next spring.
“Declines in HPI [Home Price Index] forecast are in large part driven by the expected unemployment rate over the next year,” CoreLogic deputy chief economist Selma Hepp explains. “A large share of Denver jobs are in industries that have suffered as a result of COVID-19, such as mining, logging, construction, trade, transportation and utilities — but also falling oil prices.”
No one can predict the future, especially during these volatile times. However, when looking at the logic of professional prognosticators, perhaps a look at the whole picture may be of help.
According to the Colorado Office of Economic Development, the following are the major industries in Colorado:
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Advanced Manufacturing
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Aerospace
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Bioscience
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Creative Industries
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Defense & Homeland Security
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Electronics
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Energy & Natural Resources
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Financial Services
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Food & Agriculture
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Health & Wellness
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Infrastructure Engineering
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Technology & Information
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Tourism
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Outdoor Recreation
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Transportation & Logistics
Colorado’s four fastest growing industries are Tech, Agriculture, Cannabis, and Energy.
We need to watch closely if employment in our leading and growing industries can withstand the ravages of COVID-19. We even have to consider that in this marketplace tug-of-war, will employment emerge as the over-riding factor?
