KUSA - Recovery-mode is taking hold in Colorado's mountain towns. The damage from the aftermath of the floods is still being totaled, but we do know the housing market in these areas is going through some big changes.
RECENT COLORADO FLOODING STORIES
Kelly Moye, a realtor, has had several conversations with professionals in some of the most affected areas of Boulder and the surrounding area to begin assessing the short and long-term housing issues created by the disaster. Moye spoke to 9NEWS Monday morning.
- Inventory was already low in all affected areas but came down an additional 1/3 since last week as we expect many homes have experienced water damage.
- FEMA has been involved from the beginning and most likely, flood plain maps will be significantly changed, causing homeowners to need to purchase flood insurance. How this will affect the value of those homes is yet to be seen. Time will tell. Historically, it hasn't affected the real estate values specifically in Boulder.
- The rental market is booming as displaced homeowners have to find other places to live temporarily. Investors have jumped into the market quickly this week.
- Anecdotal evidence indicates that in Boulder, those buyers on the fence between condos and houses seem to be leaning towards condos now.
- Most believe properties in the floodplain will take a hit (especially those most affected), however, since most own insurance in the floodplain, there is also an opportunity to remodel and rebuild if homeowners can make it through this initial, critical time. The homes that were hard hit and out of the floodplain (so no insurance) are expected to fare the worst. Especially those in investor-owned areas and among those without the equity to rebuild. These include many homes in Martin Acres (a fairly affordable neighborhood in Boulder), among other places.
- Reinspection by appraisers has been required for all Boulder and Weld counties, causing delays in closings and sometimes, loss of interest rate locks for buyers.
Long story short, this natural disaster is not unlike others (wildfires, etc). Many believe the property values in the affected area will be negatively affected for at least a year.
The lending on properties (even unaffected properties just in the county) has become more difficult. As with other tragedies, it will force homeowners to rebuild and remodel, which could, in the future, improve neighborhoods and home values in those areas.
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