Good Loan News

 

Here are two recently-announced pieces of really good news for home buyers.

 

  • The Colorado Housing and Finance Authority recently raised the income limit for their down payment assistance program to $115,600.  Now more people can get help with a down payment.
  • Fannie Mae and Freddie Mac raised their conforming loan limits so that more people can use a conforming loan and not be forced to use a ‘jumbo’ loan.

Contact us if you would like to hear how these pieces of news could help you.


 

It’s Time to Register for the Market Forecast

Join us for an interactive and insightful look at Colorado real estate.  Our Chief Economist Matthew Gardner will give you all kinds of fun facts and takeaways about where are market has been and where it is going.

 

January 17th at 5:30 pm.  Marriott Fort Collins.

Seating is limited.

Click the blue button below to register.

REGISTER HERE

Posted on December 7, 2018 at 4:34 pm
Julie Maxwell | Category: Buyers, Fun Facts | Tagged , , ,

A History Lesson

One of the most common questions we hear from clients is “Where do you think interest rates are going?”

Virtually all of the experts we follow put rates above 5% going into next year and some see rates approaching 5.5% by the middle of 2019. What’s certain is that there are economic forces at work that are pushing rates higher.

So, how about a little history lesson? How do today’s 30- year mortgage rates compare to this same date in history going all the way back to 1990?

• Today = 4.85%
• 2017 = 3.94%
• 2015 = 3.82%
• 2010 = 4.27%
• 2005 = 5.98%
• 2000 = 7.84%
• 1995 = 7.75%
• 1990 = 10.22%

While today’s rates feel high only because they are higher than 2017, they are quite a bit lower than at many times in history.

Posted on October 19, 2018 at 3:32 pm
Julie Maxwell | Category: Buyers, Fun Facts | Tagged , , , ,

What’s Starting?

Here are some interesting stats from our friends at Metro Study who study new home activity along the Front Range.

• New home starts are up 14% compared to last year – this is really good news and is helping to relieve the shortage of housing inventory

• Every product type saw an increase in starts compared to last year (single family, town-home and condominium)

• Condominiums saw the largest increase in starts by a long shot, up 112% over last year- this is excellent news for first time buyers and those looking for product in lower price ranges.

Posted on October 5, 2018 at 10:39 pm
Julie Maxwell | Category: Buyers, Fun Facts | Tagged , , ,

The Cost of Waiting

 The Cost of Waiting

It’s true, certain parts of our market are cooling off. We are seeing fewer multiple offers, fewer bidding wars, and fewer inspection concessions.

However, homes that are priced right and in great condition are selling, and in many cases, selling quickly.

As buyers feel the market cool a bit, it may cause them to want to wait. They sometimes feel like it’s a better choice to ‘wait and see what happens.’

The reality is, there is a real cost to waiting given two specific facts.

1. Interest rates will continue to rise
2. Prices will continue to rise

Interest rates are a little more than 0.5% higher than a year ago and experts predict them to be another 0.5% higher by this time next year.

Prices have been appreciating at roughly 10% per year for the last four years. Based on the numbers, we see that appreciation could be 5% per year for the next two years.

So, let’s look at a house priced at $450,000 today. If prices go up “only” 5% for the next 12 months, that home will cost $22,500 more in a year.

And, if rates go up another half percent, the monthly payment will be $206 higher. That’s an 11% increase!

In an environment of rising prices and rising rates, there is a real cost to “wait and see.”

Posted on September 7, 2018 at 6:53 pm
Julie Maxwell | Category: Buyers, Fun Facts, Real Estate | Tagged , , , , , ,

Everyone’s Talking

Everyone’s Talking

It seems like everyone’s talking about affordability and making an assumption that homes are less affordable than they have ever been.  Not so fast…

Let’s look at home prices relative to the median income needed to purchase the home.

It’s true that home prices have appreciated year-over-year for the last 76 months in a row, largely driven by high demand and low supply.

According to a recent study by Zillow, the percentage of median income necessary to buy a home in today’s market (17.1%) is well below the mark reached in 1985 – 2000 (21%), as well as the mark reached in 2006 (25.4)!

Bottom line, interest rates would have to increase to 6% before buying a home would be less affordable than historical norms.

Source:  Keeping Current Matters


If you want to be totally clear on all the stats, facts and trends in Colorado real estate so that you know what the future value of your home looks like, watch this video.

This is a complimentary service for our clients and friends.

See all the latest facts, stats and trends of the Colorado market from the comfort of your own laptop.

Watch the Windermere Workshop video for a mid-year market update.

WATCH HERE


Posted on August 31, 2018 at 5:59 pm
Julie Maxwell | Category: Buyers, Fun Facts, Real Estate | Tagged , , , , , ,

The Gardner Report – Q2 2018

 

The following analysis of the Metro Denver & Northern Colorado real estate market (which now includes Clear Creek, Gilpin, and Park Counties) is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere agent.

 

ECONOMIC OVERVIEW

Colorado continues to see very strong job growth, adding 72,800 non-agricultural jobs over the past 12 months—an impressive increase of 2.7%. Through the first five months of 2018, the state added an average of 7,300 new jobs per month. I expect this growth to continue through the remainder of the year, resulting in about 80,000 new jobs in 2018.

In May, the state unemployment rate was 2.8%. This is slightly above the 2.6% we saw a year ago but still represents a remarkably low level. Unemployment remains either stable or is dropping in all the markets contained in this report, with the lowest reported rates in Fort Collins and Boulder, where just 2.2% of the labor force was actively looking for work. The highest unemployment rate was in Grand Junction, which came in at 3.1%.

 

HOME SALES ACTIVITY

  • In the second quarter of 2018, 17,769 homes sold—a drop of 2.4% compared to the second quarter of 2017.
  • Sales rose in 5 of the 11 counties contained in this report, with Gilpin County sales rising by an impressive 10.7% compared to second quarter of last year. There were also noticeable increases in Clear Creek and Weld Counties. Sales fell the most in Park County but, as this is a relatively small area, I see no great cause for concern at this time.
  • Slowing sales activity is to be expected given the low levels of available homes for sale in many of the counties contained in this report. That said, we did see some significant increases in listing activity in Denver and Larimer Counties. This should translate into increasing sales through the summer months.
  • The takeaway here is that sales growth is being hobbled by a general lack of homes for sale, and due to a drop in housing demand.

 

 

HOME PRICES

  • With strong economic growth and a persistent lack of inventory, prices continue to trend higher. The average home price in the region rose
    9.8% year-over-year to $479,943.
  • The smallest price gains in the region were in Park County, though the increase there was still a respectable 7%.
  • Appreciation was strongest in Clear Creek and Gilpin Counties, where prices rose by 28.9% and 26%, respectively. All other counties in this report saw gains above the long-term average.
  • Although there was some growth in listings, the ongoing imbalance between supply and demand persists, driving home prices higher.

 

 

DAYS ON MARKET

  • The average number of days it took to sell a home remained at the same level as a year ago.
  • The length of time it took to sell a home dropped in most markets contained in this report. Gilpin County saw a very significant jump in days on market, but this can be attributed to the fact that it is a very small area which makes it prone to severe swings.
  • In the second quarter of 2018, it took an average of 24 days to sell a home. Of note is Adams County, where it took an average of only 10 days to sell a home.
  • Housing demand remains very strong and all the markets in this report continue to be in dire need of additional inventory to satisfy demand.

 

 

CONCLUSIONS

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

For the second quarter of 2018, I have moved the needle very slightly towards buyers as a few counties actually saw inventories rise. However, while I expect to see listings increase in the coming months, for now, the housing market continues to heavily favor sellers.

 

 

 

Matthew Gardner is the Chief Economist for Windermere Real Estate, specializing in residential market analysis, commercial/industrial market analysis, financial analysis, and land use and regional economics. He is the former Principal of Gardner Economics, and has more than 30 years of professional experience both in the U.S. and U.K.

Posted on August 7, 2018 at 6:28 pm
Julie Maxwell | Category: Buyers, Gardner Report, Real Estate, Sellers | Tagged , , , , , , , , , , , , , , ,

At Least List

At Least List

Here’s a stat you’ve heard from us before…

It’s called “At Least List”

It measures how active the market is by tracking the number of single family homes that sell for at least list price.

SalePrice.jpg

Because of the demand in our market, many homes sell for list price or higher.

So here’s the latest based on closings so far in the month of July…

The percentage of single family homes selling for at least list price:

  • Fort Collins = 58%
  • Loveland = 67%
  • Windsor = 55%
  • Greeley = 75%

Based on these numbers, homes that are priced right, and positioned right in the market will attain the price the seller wants (or higher).

Posted on July 30, 2018 at 5:11 pm
Julie Maxwell | Category: Buyers, Fun Facts, Real Estate, Sellers | Tagged , , , , , ,

Is There a Bubble?

Economists say there are three reasons why we aren’t in a housing bubble today.

The first reason they mention is the amount of new home construction compared to the 2006 housing bubble.

Today, along the Front Range, new home starts are down 38% compared to 2006. This is despite a much higher population than 12 years ago.

A major factor that caused the bubble was the glut of new construction inventory which doesn’t exist today.

Metrostudy, a leading new home research firm, says that Front Range builders need to have built 30,000 more new homes over the last 5 years to keep up with demand.

To see the whole story about our market along with other stats and trends, watch the recording of Tuesday’s Windermere Workshop right here.

If you want to be totally clear on all the stats, facts and trends in Colorado real estate so that you know what the future value of your home looks like, watch this video.

This is a complimentary service for our clients and friends.

image

See all the latest facts, stats and trends of the Colorado market from the comfort of your own laptop.

Watch the Windermere Workshop video for a mid-year market update.

Posted on July 20, 2018 at 7:01 pm
Julie Maxwell | Category: Buyers, Fun Facts, Real Estate, Sellers | Tagged , , , ,

Average Home Prices in Northern Colorado

Money, Home, Coin, Investment, Business

Yesterday the Coloradoan ran a very good article about the increase of average home prices in Larimer County, which they stated has now reached $405,000.

We thought this article may make you curious to know what the average prices are in each specific city in Northern Colorado:

  • Fort Collins = $453,051
  • Loveland = $402,132
  • Windsor = $463,769
  • Greeley = $310,785
  • Timnath = $604,481
  • Wellington = $338,999
  • Boulder = $1,105,634

source = IRES

If you want to be totally clear on all the stats, facts and trends in Colorado real estate so that you know what the future value of your home looks like, get signed up for our next webinar presentation.

This is a complimentary service for our clients and friends.

 

image

See all the latest facts, stats and trends of the Colorado market from the comfort of your own laptop.

Join our next online Windermere Workshop for a mid-year market update.

The online presentation is July 18th at 2:00pm. If you can’t join live you will automatically get the recording.

Posted on July 14, 2018 at 2:04 am
Julie Maxwell | Category: Buyers, Fun Facts, Real Estate | Tagged , , , , , , , , , , ,

The Risks and Rewards of Purchasing a Bank-Owned Home

The process of purchasing a home directly from a lender can be long and arduous, but could very well be worth it in the end. If you have your sights on a particular home or are looking to find a deal on your first, working directly with the lender may be your only option. Purchasing a bank-owned home is not for the faint of heart, here are some tips for negotiating the REO process:

1. Be prepared: The condition of bank-owned properties are often poor and hard to show. Past owners may have departed on bad terms, leaving the home in poor condition with foul smells, missing appliances, wires taken from breakers, gas fireplaces gone, even bathrooms without toilets and sinks.

2. Understand the costs: Maintenance or repairs may be necessary, since these homes have been vacant for an unknown period of time–sometimes months or years. Keep in mind, when they were occupied the owners could have been under a financial hardship, preventing them from doing regular seasonal care or repairs when needed. Remember as well that the bank is trying to sell the house immediately, so you will receive a financial break in the price rather than a willingness to negotiate on the maintenance and repair issues.

3. Accept the unknown: In traditional real estate transactions, homeowners fill out Form 17 regarding important information about the history of the house. A bank owned home is either exempt or marked with “I don’t know” throughout the document. Not having the accuracy of this 5-page disclosure form could leave you with a lot of unanswered questions on the history of the home.

4. Know what is non-negotiable: The pricing on the house may not get much lower. Some of these properties can be “a dream come true” if you get them at an amazing price, or they could be your worst nightmare. Do your due diligence researching any property, and conduct all necessary inspections to safeguard yourself. Some major repairs may be negotiable, but will likely not reduce the home price.

5. Make a clean offer: The higher the price you can offer, the better. Include your earnest money, keep contingencies to a minimum, and suggest a reasonable closing date. The simpler your offer is, the higher chance you have of the bank accepting your offer or countering in a reasonable time period.

6. Be patient: Consult with a professional who handles bank owned home purchases to help you negotiate the pathway to homeownership. The process of purchasing a bank-owned, foreclosed or short-sale home is typically longer than a typical real estate sale.

Posted on July 6, 2018 at 4:16 pm
Julie Maxwell | Category: Buyers, Real Estate | Tagged , ,