Something has changed. There is a tangible difference in the economic vibe permeating various industries, from small business to large world-wide conglomerates. Business owners seem to be making an emphatic statement: real confidence is back and the pent-up anxiety that’s driven decision-making for the past decade may be easing. The past three months have seen the Dow rapidly blow past the 20,000 mark and the housing industry seems to be strengthening after six years of a sputtering, sluggish recovery from the Great Recession. However, some may not have even noticed given all of the political fighting that’s dominated the headlines — don’t look now, but business is booming.
Those effects are visible in the Cordillera Ranch market as well. It’s been 10 years since sales activity has hit the levels exhibited in the past few months. An easy indicator: in less than twelve months, available homes on the market have dropped by over 60% to less than 25 homes currently available (with five of those in active option). It’s been over 10 years since available home inventory was this low — all driven by a surge in sales activity over the past year. In the past six months, combined home and lot sales in Cordillera Ranch have jumped 71% versus the same period from the prior year and the recent surge of contracted but unclosed sales aren’t even included yet in that figure.
New home starts in the community are no exception with over 30 homes currently under construction and 48 more in design review signaling an impending wave in new construction on the horizon. The demand is consistently spread throughout the community with sales in and around the golf course area as well as on some of the premier hilltop properties, ranch estates and The Springs. The boom in activity has also tightened the supply of available rent homes in the community to zero — something that’s in great demand for the many families under construction on a new home.
While some of the factors for the recent surge may be debated by economists (and politicians), there is no doubt that a release of pent-up demand following the election, combined with long-overdue pro-business policy shifts from the new administration and an energy sector that’s been gaining steam as oil prices have doubled in the past 12 months have all driven the positive activity. With some analysts forecasting a $70/barrel oil by the end of the year and the Dow surpassing 23,000, it appears this could just be the beginning of a very strong rebound year — a rebound that was supposed to have occurred years ago. Now let’s just hope that the politicians can get out of the way and let it happen.
Here’s to a healthy and prosperous 2017!