…If Colorado’s construction-defects law is a factor in the condo slowdown, hard data isn’t readily available to prove the point, said Boulder-based economist Pat Pacey, who conducted a study commissioned by Build Our Homes Right, a Denver-based nonprofit formed to advocate for homebuyers in construction-defect cases.
“Clearly, the increased down payment, origination fees, mortgage insurance premiums, reduced real earnings are all more significant financial deterrents to home ownership than any barrier from construction-defect laws,” Pacey said….Click here to read more >>
…The decline has less to do with the construction defects law and more to do with the economic recession, a drop in demand and millennials who aren’t jumping into the housing market as early as their older counterparts did, said Boulder consulting firm Pacey Economics in a housing market analysis released earlier this month.
Millennials are “five years behind,” said Patricia Pacey, founder of Pacey Economics. “The lack of demand resulted in low condominium sales prices, making apartment construction more profitable in the Denver urban centers,” stated the report, paid for by a coalition of homeowners called Build Our Homes Right.
The good news, Pacey said, is that condo construction is rebounding in and around Denver. She recommended “letting the market work” rather than changing the law….Click here to read more >>