Here Comes the Sun

April and May, however, were record home sales months for Myers. He described it as “a head scratcher” and when asked what could have sparked the turnaround, he said suddenly beautiful weather is “as good an explanation I can think of.” Home sales tend to lag in colder, darker months in Colorado.

Mortgage interest rates fell at the same time to about 4 percent, the lowest they’ve been since September 2017. Back in November, just before the dip, the 30-year fixed rate mortgage interest jumped to 4.87. While historically low, every increase in interest rates eats away at buying power, a problem felt most acutely in high-priced markets like Denver.

Since November, rates have fallen 16 percent and helped to juice sales in Colorado and across the nation.

“The purchasing power to buy a home has been bolstered by falling mortgage rates, and buyers are responding,” said Lawrence Yun, chief economist for the National Association of Realtors.

Still, the effects of snowy, wet, and cold weather along the Front Range will reverberate well into the summer.

Myers said the weather really affected the companies that prepare the sites before home builders start work, known as lot developers. Lot development has also remained slow as a result of the Great Recession and builders frequently complain that there aren’t enough sites in the best of conditions.

What Labor Shortage?

The other chief complaint in the Denver market is a lack of skilled labor. Over the years, that’s forced wages higher, which translates into higher home prices.

The construction labor force hasn’t substantially grown in Colorado in the last nine months. This is the first time employment growth in the sector has leveled off in seven years.