This year is an El Niño year, and for many Americans that means a winter of above average temperatures and below average snowfall. For a few states, however, El Niño brings about a whole different season. While Colorado is no stranger to snow, El Niño may really pile it on. Speculation into what this year's El Niño season will bring to Southwest Colorado has real estate agents and resorts owners alike concerned.
As the Durango Herald reports, the significant snowfall that will accompany El Niño to Colorado, could impact the real estate market in both negative and positive ways. If Colorado is in for a record setting snowy winter, as the meteorologists suggest, the local ski resorts stand to do very well. For ski enthusiasts, this may prompt them to purchase a vacation home or condo. As a result, the market may not take such a hit. However, it is unlikely that a few vacation home sales will carry the market to spring.
Land sales and commercial sites may prove more difficult to move if they are covered in deep snow. Potential buyers want to see what they are being sold. With heavy snow on the ground, real estate agents may find it hard to sell buyers and business owners on their imagination alone. Although snow is not usually enough to halt commercial development, according to the Federal Reserve district, it does lead to construction delays which may result in financial implications.
Some of the areas experienced real estate agents have been around for several El Niño winters and do not believe there is a correlation between harsh weather and a poor market. They do, however, see that many sellers wait to put their home up for sale until the cold winter months have passed. This may lead to low inventory but not a weak market.
It is still unclear how this El Niño winter will impact the market and commercial development. For those looking to relocate to Colorado, staying informed of how the weather may affect the development and construction of your commercial project is important. If issues arise, you may benefit by having a trusted commercial real estate lawyer by your side.
Source: The Durango Herald, "Will El Niño cause a lull in real estate transactions?" Jessica Pace, Oct. 30, 2015