The Cost of Waiting – Northern CO Real Estate

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.”


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 September 7, 2018 at 1:56 pm
Meagan Griesel | Posted in Blog, Colorado Real Estate, Fun Facts, Northern Colorado Real Estate | Tagged , , ,

Super Cute & Clean Ranch Style Home in Loveland!

This ranch style home at 2318 Firstview Dr is on a quiet street with large trees and has no HOA. Inside has 2 separate living areas, office, and an open kitchen. The large backyard features a covered patio, raised flower beds, and privacy – a little outdoor oasis, perfect to drink your morning coffee or to have friends over to BBQ. Large insulated and heated 2-car garage. Brand new roof. Home has been pre-inspected.  Call for your private showing at 970-691-0056 for more information or click the link below for more details.

http://meagan-griesel.com/listing/83384342


Posted on September 4, 2018 at 9:26 pm
Meagan Griesel | Posted in Loveland Real Estate, Virtual Tours | Tagged , , , , , , , , , , , , , , , , , , , , ,

Home Affordability in Perspective

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


Posted on August 31, 2018 at 2:19 pm
Meagan Griesel | Posted in Blog, Colorado Real Estate, Fun Facts |

Bright and Spacious Home in Longmont!

This spacious 4 bedroom home at 454 Elliott St in Longmont offers mature landscaping and a large back yard. The upper level features 2 bedrooms, new laminate flooring, and an open floor plan-great for entertaining or family time. The lower level has a large entertainment room and an additional 2 bedrooms. The fenced in back yard is complete with a concrete patio, storage shed, and raised garden beds! Call for your private showing at 970-691-0056 for more information or click the link below for more details.

http://meagan-griesel.com/listing/83145930


Posted on August 27, 2018 at 4:58 pm
Meagan Griesel | Posted in Longmont Real Estate, Virtual Tours | Tagged , , , , , , , , , ,

Real Estate Market Friday Fun Facts

Did You Know?

Did you know the average price appreciation over the long term, according to the Federal Housing Finance Authority (who’s been studying this for 40+ years) is…

·         5.63% per year for Metro Denver

·         5.35% per year for Larimer County

·         4.5% per year for Weld County

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 my clients and friends.

Posted on August 17, 2018 at 9:47 am

Posted on August 17, 2018 at 5:24 pm
Meagan Griesel | Posted in Blog, Colorado Real Estate, Fort Collins Real Estate, Fun Facts, Loveland Real Estate, Northern Colorado Real Estate |

Colorado Real Estate Market Update

2018 Second Quarter

 

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 10, 2018 at 4:32 pm
Meagan Griesel | Posted in Blog, Colorado Real Estate, Fort Collins Real Estate, Loveland Real Estate, Northern Colorado Real Estate | Tagged ,

Fantastic Move in Ready Home in Loveland!

This bright and open floor plan at 362 E 40th St just feels good from the moment you walk in. Well maintained, convenient location, and ready to move into! Big ticket items are all newer – roof, AC, furnace, and kitchen appliances. Features include vaulted ceilings, gas fireplace, wood floors, spacious master w/large walk-in closet, fenced back yard w/raised garden beds and sprinkler system, and a nice pergola covering a large back patio. Basement is ready for future expansion. Call for your private showing at 970-691-0056 for more information or click the link below for more details.

http://meagan-griesel.com/listing/82121623


Posted on July 26, 2018 at 3:42 pm
Meagan Griesel | Posted in Loveland Real Estate, Virtual Tours | Tagged , , , , , , , , , , , , , , , , ,

Adorable Ranch Style Home in Loveland!

936 Ptarmigan Circle at the end of the cul-de-sac in Northeast Loveland this home features a newer furnace, AC, water heater, and roof. Kitchen and bathrooms remodeled a couple of years ago. Fully finished basement features an entertainment room and a large bedroom suite. The backyard comes with a covered porch, horseshoe pit, large & beautiful chicken coop, mature landscaping, and NO HOA! Call for your private showing at 970-691-0056 for more information or click the link below for more details.

http://meagan-griesel.com/listing/81556166


Posted on July 16, 2018 at 10:27 pm
Meagan Griesel | Posted in Loveland Real Estate, Virtual Tours | Tagged , , , , , , , , , , , , , , ,

Charming Updated Paired Home in Evans!

3202 Barbera St with main floor living at its best in this well-cared for home. Luxurious and large main floor master bedroom and laundry, finishes include new lighting, stylish farm-house kitchen theme, granite counter-tops in kitchen and bathrooms. All appliances stay, new water heater, new flooring upstairs. Both upstairs bedrooms are generous in size and have walk-in closets. Low maintenance home and a great location for commuters. Call for your private showing at 970-691-0056 for more information or click the link below for more details.

http://meagan-griesel.com/listing/80293164


Posted on June 13, 2018 at 3:28 pm
Meagan Griesel | Posted in Northern Colorado Real Estate, Uncategorized, Virtual Tours | Tagged , , , , , , , , ,

Colorado Real Estate Market Update

The following analysis of the Metro Denver & Northern Colorado real estate market 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 me.

 

ECONOMIC OVERVIEW

It’s good news for the state of Colorado, which saw annual employment grow in all of the metropolitan markets included in this report. The state added 63,400 non-agricultural jobs over the past 12 months, an impressive growth rate of 2.4%. Colorado has been adding an average of 5,300 new jobs per month for the past year, and I anticipate that this growth rate will continue through the balance of 2018.

In February, the unemployment rate in Colorado was 3.0%—a level that has held steady for the past six months. Unemployment has dropped in all the markets contained in this report, with the lowest reported rates in Fort Collins and Denver, where 3.1% of the labor force was actively looking for work. The highest unemployment rate was in Grand Junction, which came in at 4.6%.

 

HOME SALES ACTIVITY

  • In the first quarter of 2018, there were 11,173 home sales—a drop of 5.6% when compared to the first quarter of 2017.
  • With an increase of 5.3%, home sales rose the fastest in Boulder County, as compared to first quarter of last year. There was also a modest sales increase of 1.2% in Larimer County. Sales fell in all the other counties contained within this report.
  • Home sales continue to slow due to low inventory levels, which were down 5.7% compared to a year ago.
  • The takeaway here is that sales growth continues to stagnate due to the lack of homes for sale.

 

 

HOME PRICES

  • Strong economic growth, combined with limited inventory, continued to push prices higher. The average home price in the markets covered by this report was up by 11.7% year-over-year to $448,687.
  • Arapahoe County saw slower appreciation in home values, but the trend is still positiveand above its long-term average.
  • Appreciation was strongest in Boulder County, which saw prices rise 14.8%. Almost all other counties in this report experienced solid gains.
  • The ongoing imbalance between supply and demand persists and home prices continue to appreciate at above-average rates.

 

 

DAYS ON MARKET

  • The average number of days it took to sell a home dropped by three days when compared to the first quarter of 2017.
  • Homes in all but two counties contained in this report took less than a month to sell. Adams County continues to stand out where it took an average of just 17 days to sell a home.
  • During the first quarter, it took an average of 27 days to sell a home. That rate is down 2 days from the fourth quarter of 2017.
  • Housing demand remains strong and would-be buyers should expect to see stiff competition for well-positioned, well-priced homes.

 

 

CONCLUSIONS

This speedometer reflects the state of the region’s housing market using housing inventory, price gains, home sales, interest rates, and larger economic factors. In the first quarter of 2018, I have left the needle where it was in the fourth quarter of last year. Even as interest rates trend higher, it appears as if demand will continue to outweigh supply. As we head into the spring months, I had hoped to see an increase in the number of homes for sale, but so far that has not happened. As a result, 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 May 21, 2018 at 2:58 pm
Meagan Griesel | Posted in Colorado Real Estate, Northern Colorado Real Estate | Tagged , ,