Colorado Governor's 3rd Quarter Economic and Revenue Forecast

Colorado's Governor has just released his Third Quarter Economic and Revenue Forecast.

Here are highlights from the Economic Forecast:

"Although certain parts of the State remain distressed by foreclosures, the current state of the residential real estate market is substantially stronger in Colorado than the rest of the country. According to the Standard & Poors / Case-Shiller index, Denver's real estate market is one of the strongest of any major metropolitan area of the country. In addition, real estate continues to be strong on the Western Slope in response to the continuing influx of oil and gas workers.

Colorado's economic indices continue to demonstrate that the State is comparatively experiencing lower unemployment, greater job growth, and slower inflation than the nation is overall."

For the complete 3Q Economic and Revenue Forecast...

From the OFFICE OF GOV. BILL RITTER, JR.

Website

Congress Agrees on $700 Billion Bailout Deal

Members of the U.S. Congress announced early Monday morning, September 28th, that they reached an agreement to the $700 billion bailout of the financial markets. The House of Representatives is voting on the bill on Monday morning and the Senate is expected to vote on Wednesday. President Bush has expressed support for the bill.

After two weeks of turmoil in the worldwide financial markets, coupled with a strong resistance from main street Americans, Congress and the President have agreed to a structured bailout. Now it is time for the media pundits to wade through the details of the plan and explain how the taxpayer will be affected.

Of interest to most of our readers will be the positive and negative impacts to interest rates, mortgages and foreclosures. Many buyers and sellers of residential real estate have been frozen for the last week and reluctant to make a decision until more clarity is brought to the situation. Our commercial clients are continuing with their real estate plans, but watching the economic situation carefully.

Some of our clients who have been heavily invested in the stock market told us they were rapidly selling their stock out of the market for the last two weeks to invest in real estate. After seeing their holdings erode as the stock market declined they are ready to invest in the bargain real estate prices that exist in the Colorado market. See our website.

Congress Announces Breakthrough on Bailout

Leaders in the Senate and House announced a breakthrough in the negotiations for the White House $700 billion bailout at 12:30 a.m. EST on Sunday, September 27th. The announcement makes it clear the legislators have agreed in principal and will commit the agreement to paper overnight and expect to sign it during the day on Sunday. Asian markets open on Sunday afternoon and Congress is rushing to meet that deadline. The problem began with bad real estate loans and the record number of foreclosures and declines in home prices. Then the financial markets were rocked by a number of collapses and mergers. The announcement did not give details of the tentative plan. The devil remains in the details.