The Boulder County Business Report has just issued its analysis of the Boulder County Leading Economic Indicators compiling the last quarter of 2001 and all four quarters of 2002. The statistics confirm the depressed state of the local economy, with some indicators even more bleak than expected. Boulder County unemployment has settled downward to 5.0% at the end of December 2002, as compared with a high of 5.6% at the end of March 2002. At the end of 2002, Boulder County retail sales were 11% less than for 2001, much of which was due to the establishment of Broomfield County. The Boulder County stock index ended the year at a level 23% lower than the previous year. Even more telling, the total Boulder County residential building permits in 2002 declined 39% as compared to the previous year. Single Family Residential Building Permits decreased by 29% while non-residential building permits fell a whopping 47% compared to 2001. Overall the indications are that the economy will remain in its depressed state until at least the second half of the year. (Boulder County Business Report, April 4-17, 2003).
As you can guess, the real estate market continues to be a buyer's market, with Denver home prices in March recording their first year-to-year drop since 1990. The suburban home market is especially vulnerable to price declines, as opposed to homes in the urban center of an area. (Denver Post, Mar. 2, 2003)
Denver ranks third in the nation in high-tech pay, second only to Silicon Valley and New York in salaries. This is small compensation for the loss of more than 13,000 high tech jobs in the Denver area that have been eliminated since January 2002. (Denver Post, Mar.) In addition, the average wages for Boulder County workers has decreased, partly due to the reduction/elimination of stock options and incentives. (Boulder County Business Report, April 4-17, 2003)
Colorado retail sales dropped from last year and continue to trail the national average in 2002. The trend would indicate that Colorado consumers are buying only necessities and sale items.
