Each month, Citywide Banks presents insights from Denver CEOs about local economic trends impacting businesses. Stay relevant with the BizPulse series each month. Share your thoughts on BizPulse topics at Facebook.com/citywidebanks.
(JUNE 2013) It seems that everybody is selling their home. That’s an exaggeration, but the real estate market is definitely showing signs of big improvement. According to a ZipRealty report, nearly 40% of Denver area homes that went on sale in April were sold within seven days. That tied Washington D.C. as the nation’s fastest selling home market in April. That is good news for everyone’s home value and great news for Colorado’s economy. Real estate activity impacts consumer confidence, retail spending, job growth, tax revenue, and more. While it can make it stressful to find an available home for sale, a fast selling market is good for business… all businesses. What do you think? Share your own comments on the Citywide Banks Facebook page at www.Facebook.com/citywidebanks.
WORD ON THE STREET – Insights from David Sinkey of Boulder Creek Builders
For a local perspective, this month we asked David Sinkey, President of Boulder Creek Builders, a Louisville-based residential home builder with communities at Stapleton, Erie Commons, Steel Ranch, Pinnacle, and other popular hotspots. Boulder Creek Builders is an award-winning homebuilder that creates innovative communities across the Front Range that embrace green building practices, energy efficiency, and a true sense of place. More information on the company and its communities are available at www.LiveBoulderCreek.com.
Q: What is your prediction for the Denver/Boulder economy over the next 12 months?
SINKEY: We believe the local economy will continue slow and steady growth with certain segments seeing sprits of growth. Homebuilding will be one of the quicker growing segments due to the very low inventory of new and resale homes. We also expect to see continued local job growth as companies slowly begin to fill out positions.
Q: What are the biggest economic factors (e.g. unemployment, interest rates) that impact whether or not you go forward with developing a new community?
SINKEY: For us, the most important factor in determining the feasibility of a new community is the sub-markets ability to absorb
increasing prices. Everything in homebuilding is about to get significantly more expensive. Labor is very tight, material costs are
rising and the discounted finished developed lots builders have been buying for the past five years are all but gone. Add to that several high cost changes to the International Building Code and expensive development financing and you have a recipe for very tight margins.
Q: What’s the next big thing that will ultimately be common place in new home construction?
SINKEY: Due to changes in the International Building Code you will soon see most new homes complete with residential fire
suppression systems. You will also see expanded use of green building and energy efficient features and design.
Q: Where do you see the biggest opportunity for new home construction in the Front Range?
SINKEY: We remain very focused on the north-metro Denver market. We recently purchased or contracted on several new opportunities from Loveland to Superior including sites in Erie, Louisville, Lafayette, Longmont and Boulder. We remain very excited about the top quality master planned communities like Stapleton.
Q: What are two things you do every workday to stay focused and organized?
SINKEY: First, we have very clear values at Boulder Creek that help keep me on the right track. “At Boulder Creek we respect lives well lived.” That goes for our homebuyers and employees. With that kind of mantra decisions come easily. Second, given our
rapid growth I focus on delegating to the skilled and experienced folks on our team.
Q: What do you value most in your banking relationship with Citywide Banks?
SINKEY: Citywide Banks has been instrumental in our growth over the past 18 months. Coming out of the real estate downturn we needed a bank willing to do a deep-dive to understand our people, our business and our homebuyer. It would have been easy to have lumped us in with dozens other builders seeking financing. Instead our bankers at Citywide were able to see the opportunity in our unique product offering and moved quickly to provide the needed financing.
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