Real Estate Cycles in Ouray

2018 is a strong year for Colorado Real Estate ...

A seasoned real estate investor once told me he observes a 15 year cycle to real estate values in SW Colorado. He said the exact length wasn’t always certain, but it was pretty close. Each cycle period resulted in higher prices. As an example, prices in the year 2000 were significantly greater than 1970, roughly two cycles earlier. Housing data shows the average U.S. home price in 1970 was $17,000, and in 2000 it was $119,000.

South towards Mt. Abram

Shifts in supply and demand, the cost of money, population trends, the economy, Colorado popularity – there ends up being a lot of various reasons for pricing levels and cycles in Ouray area real estate. With Colorado in general, and SW Colorado in particular, much of the real estate is very desirable based on views, and access to the great outdoors and natural recreation areas. These attractive areas, such as Ouray, have demand from across the U.S. As a result, fewer parcels become available for development and use over time.

So many trails, so little time ..

2018 is in the seven to ten year upward swing period of the real estate cycle in Ouray. For new construction projects - labor costs have shifted up as construction crews are busy, and experienced and capable firms are booked well in advance. The U.S. and Colorado economy is stronger. Material prices that never really dropped during the “Great Recession” have seen stout inflation the last few years, as with all the component costs of new housing. Higher altitude building can also require thoughtful engineering and result in higher costs.

Colorado is a desirable place to live, and Western Slope prices continue to be influenced by neighboring front-range development. The average Denver home is selling for over $500,000. Colorado Springs and Ft. Collins are similar in price and growth to metro Denver. Meanwhile, the close by Western Slope cities of Grand Junction and Montrose are experiencing housing shortages and further growth. Over 10,000 U.S. baby boomers are retiring every day, many with dreams of a second home on Colorado's Western Slope.

Small pockets of internationally influenced real estate exist in nearby resorts such as Telluride, Aspen, and Crested Butte. Their trends spill over and influence surrounding and close by areas ... the neighboring cities of Ouray, Glenwood Springs, and Gunnison feel the economic boost of their resort neighbor’s traffic. They become destinations themselves with unique opportunities, while still offering close access to the resort amenities. Ouray stands out itself as a resort offering unmatched off-road trails for jeeps, atvs, hiking, and biking. With it's new hot springs pools and other amenities, Ouray continues to be a favorite retreat.

Through promotion, Ouray is popularly known as “Switzerland of America.” With a rich economic history dating back into the 1880’s, it is today a Colorado mountain town with strength as a vacation and resort community in its own right. As prices in neighboring cities and Ouray shift higher, today is an opportune time to invest in Ouray’s 9 Acres - a top development opportunity in SW Colorado. The property offers advantages in the location, parcel size, zoning, and utilities, to mention a few. Now is the time to take advantage of the opportunity with 2018 dollars and put your ideas to work. Make sure to schedule a visit to the property this summer – call us at 970-318-1425 and we will plan on meeting you there and assisting your evaluation. Enjoy the property and Ouray story below: