Monday, October 28, 2013
Housing News Digest, October 28
Colorado sees more home loans paid off in Q3 than same time last year Nearly 14 percent more home loans were paid off in Colorado during the third quarter in 2013 than the same quarter in 2012, but the figures also hint at a leveling off due to rising mortgage rates, according to data released Wednesday by the Colorado Division of Housing. Colorado's public trustees released more than 89,000 deeds of trust during 2013's third quarter, marking one of the highest totals recorded in recent years.
Mortgage payoffs slow in third quarter The slowdown in mortgage payoffs can partially be attributed to rising interest rates, according to the Division of Housing. "Since 2011, mortgage rates fell in almost every quarter up through the end of 2012, and in response, we saw significant increases in the amount of release activity over time," the division said in a release. "Predictably, as mortgage rates began to rise in late 2012, we began to see declines in release activity as 2013 progressed," the statement said.
Apartment rents in metro Denver continue to climb Apartment rents in metro Denver continued their rapid climb in the third quarter of 2013, with an average monthly rent of $1,048 — an increase of 6.3 percent, or $62, from 2012's third-quarter average of $986. Ryan McMaken, an economist for the Colorado Division of Housing, said that on an inflation-adjusted basis, the average rent in metro Denver peaked in 2001. The average rent in the third quarter of 2013, adjusted for inflation, is 2.2 percent below that peak, said McMaken.
Metro Denver apartment rents still climbing, despite new construction While metro Denver apartment vacancies ticked up slightly from the second to third quarter, the area continued to have substantial rent growth and all the new apartments delivered didn’t affect the vacancy rate, according to a report released Thursday by the Apartment Association of Metro Denver and the Colorado Division of Housing. The area’s overall vacancy rate hit 4.4 percent. While up slightly year over year and quarter over quarter, it still hovered around 13-year lows and remained below 5 percent — a tight market, by all definitions.
Rents and vacancies rise “We could see as many as 10,000 new units delivered in 2014 across 25 different submarkets in the metro area,” said Mark Williams, Executive Vice President of the Apartment Association of Metro Denver. “With over 17,000 units under construction and an additional 20,000 being considered, current levels of rent growth won’t continue if most of those units are delivered,” he added.
Posted by Ryan McMaken at 4:11 PM