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 | Category: Colorado Real Estate, Northern Colorado Real Estate | Tagged , ,

Colorado Real Estate Market Update

This analysis of the Metro Denver and Northern Colorado real estate markets 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 us.

ECONOMIC OVERVIEW

Colorado added 45,300 non-agricultural jobs over the past 12 months, a growth rate of 1.7%. Although that is a respectable number, employment growth has been trending lower in 2017 as the state reaches full employment. Within the metropolitan market areas included in this report, there was annual employment growth in all areas other than Grand Junction, where employment was modestly lower. There was solid growth in Greeley and Fort Collins, where annual job growth was measured at 4% and 2.7%, respectively.

In November, the unemployment rate in the state was a remarkably low 2.9%, down from 3% a year ago. The lowest reported unemployment rates were seen in Fort Collins and Boulder, where only 2.5% of the labor force was actively looking for work. The highest unemployment rate (3.7%) was in Grand Junction.

The state economy has been performing very well, which is why the wage growth over the past year has averaged a very solid 3.3%. I expect the labor market to remain tight and this will lead to wages rising at above-average rates through 2018.

HOME SALES ACTIVITY

  • In the fourth quarter of 2017, there were 14,534 home sales—a drop of 2.0% compared to a year ago.
  • Sales again rose the fastest in Boulder County, which saw sales grow 17.9% versus the third quarter of 2016. There were also reasonable increases in Weld and Larimer Counties. Sales fell in all other counties contained within this report because there is such a shortage of available homes for sale.
  • As I discussed in my third quarter report, sales slowed due to the lack of homes for sale. The average number of homes for sale in the markets in this report is down by 8.2% from the fourth quarter of 2016.
  • The takeaway is that sales growth has moderated due to the lack of homes for sale.

HOME PRICES

  • With continued competition for the limited number of available homes, prices continued their upward trend. Average prices were up 9.8% year-over-year to a regional average of $431,403, which was slightly higher than the third quarter of 2017.
  • There was slower appreciation in home values in Boulder County, but the trend is still positive.
  • Appreciation was strongest in Weld County, which saw prices rise 14.3%. There were also solid gains in almost all other counties considered in this report.
  • The ongoing imbalance between supply and demand persists, which means we can expect home prices to continue appreciating at above-average rates for the foreseeable future.

 

DAYS ON MARKET

  • The average number of days it took to sell a home rose by two days when compared to the fourth quarter of 2016.
  • Homes in all but three 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 21 days for homes to sell.
  • It took an average of 29 days to sell a home last quarter. This is up nine days over the third quarter of 2017.
  • Housing demand remains strong in Colorado and this will continue with well-positioned, well-priced homes continuing to sell very quickly.

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.

For the fourth quarter of 2017, I have chosen to leave the needle where it was in the previous quarter. Listings remain scarce, but this did not deter buyers who are still active in the market. As much as I want to see more balance between supply and demand, I believe the market will remain supply-constrained as we move toward the spring, which will continue 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 February 1, 2018 at 9:20 pm
Meagan Griesel | Category: Colorado Real Estate, Fort Collins Real Estate, Loveland Real Estate, Northern Colorado Real Estate, Windsor Real Estate | Tagged , , , , , , , , , ,

Short vs. Long

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There are short-term questions about real estate and there are long term questions about real estate.

Clients often have short-term questions like…

How much will prices go up next year? Should I sell my house this Fall or next Spring? Will interest rates go up next week?

We encourage our clients to evaluate those questions in the context of the long-term. There are decades of data on the Northern Colorado market which reveal certain patterns.

When we show our clients these patterns they feel confident and secure in the investment they have made into their home and their rental properties.

For example, the long-term appreciation rates based on up to 41 years of research are as follows:

  • Larimer County = 5.36%
  • Weld County = 4.25%
  • Metro Denver = 5.56%

So over the course of a year prices may go up a lot or go up a little, but in the long term they will stay true to these long term averages.

To see an update as to what is happening in the Northern Colorado market, contact us to receive our quarterly “Scoop” report.

We have justimage completed a comprehensive report for anyone thinking about selling their home. The Insider’s Guide to Selling Your Home (without any stress or surprises) is now available for you.

It is hot off the press and you can grab a copy by clicking HERE.

Claim your copy immediately so you can see everything you need to know to sell your home in today’s market.

 

Posted on October 27, 2017 at 4:02 pm
Meagan Griesel | Category: Blog, Colorado Real Estate, Fun Facts, Northern Colorado Real Estate | Tagged , , , , , , ,

Beautiful Horse Property With 34.5 Acres

Featuring 3 Bedrooms, 2 Bathrooms And A 1,560 Square Foot Barn!

Amazing horse property! Many outbuildings, horse facilities, views and a cute updated home. Horse features include: 10 stalls, 8 loafing sheds, 15 auto waterers (in pastures and runs), outdoor arena, vet office, foaling stall, 1560 square foot hay barn, turn-out traps and a pasture. Outbuildings – 36×45 greenhouse with lights and hydroponics system, 1500 square foot pole barn/garage with 454 square foot loft/ bunk house. Home has been updated over the years and features an office, patio off of the master and a sunroom.

For more information, please visit: http://meagan-griesel.com/listing/69423121 or call Meagan Griesel at (970) 460-3033.

Posted on October 26, 2017 at 5:01 pm
Meagan Griesel | Category: Fort Collins Real Estate | Tagged , , , , , , , , , , ,

Inventory Is Up

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Inventory Is Up

For the past few years the hot topic in Northern Colorado real estate is inventory, or more specifically, lack of inventory.

Based on our current research, it looks like this trend is reversing.

Let’s look at the increase in inventory in our major markets versus a year ago…

  • Fort Collins up 28%
  • Loveland up 4%
  • Windsor up 37%
  • Greeley up 5%

This increase in is very good news for prospective buyers as now there are more homes to choose from.

To see an update as to what is happening in the Northern Colorado market, contact us to receive our quarterly “Scoop” report.

imageWe have just completed a comprehensive report for anyone thinking about selling their home. The Insider’s Guide to Selling Your Home (without any stress or surprises) is now available for you.

It is hot off the press and you can grab a copy by clicking HERE.

Claim your copy immediately so you can see everything you need to know to sell your home in today’s market.
Posted on October 20, 2017 at 5:53 pm
Meagan Griesel | Category: Blog, Colorado Real Estate, Fort Collins Real Estate, Fun Facts, Loveland Real Estate, Northern Colorado Real Estate | Tagged , , , , , , ,

Homecoming

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It’s homecoming weekend at CSU which means that alums from all over the Country will be back to visit Northern Colorado.

So how does their real estate market stack up versus the place where they went to college?

Odds are, it’s not as good!

It turns out that there are only 9 metropolitan areas out of about 270 that have higher appreciation than Larimer County.

Interestingly, 3 of the 9 are in Washington and 2 of the 9 are in Oregon. So if they are visiting from the Pacific Northwest they probably have an even stronger market than here.

But pretty much everywhere else is below our market.

This is all according to the Federal Housing Finance Authority who tracks the nation’s real estate markets. They show that Larimer County has appreciated 12.08% in the last year which ranks 9th in the nation.

First place belongs to Mount Vernon, Washington at 15.14%. Last place is Atlantic City, N.J. which had a decrease of 0.77%.

So best of luck to CSU in their homecoming game and cheers to a healthy real estate market!

Today is our annual Homecoming weekend Tailgate Party. You are invited to attend. Click HERE for more info. You can bring family and friends to our office at 400 E. Horsetooth in Fort Collins. We’ll have taco trucks, beer, wine, margaritas, bouncy houses, pony rides and a live band! See you there!

We have jusimaget completed a comprehensive report for anyone thinking about selling their home. The Insider’s Guide to Selling Your Home (without any stress or surprises) is now available for you.

It is hot off the press and you can grab a copy by clicking HERE .

Claim your copy immediately so you can see everything you need to know to sell your home in today’s market.
Posted on October 13, 2017 at 7:37 pm
Meagan Griesel | Category: Colorado Real Estate, Fort Collins Real Estate, Fun Facts, Northern Colorado Real Estate | Tagged , , , ,

Storybook Home With High Quality Finishes

Featuring 3 Bedrooms, 3 Bathrooms And An Indoor/Outdoor Fireplace!

Better-than-new! Wood floors have been added, granite countertops, built-in desk added, full unfinished WALK-OUT basement for future expansion. Three season covered deck features indoor/outdoor fireplace. Energystar 3.0 construction. Easy/quick commute to I-25. All kitchen appliances stay. Windermere Certified Listing!

For more information, please visit: http://meagan-griesel.com/listing/66443689 or call Meagan Griesel at (970) 460-3033.

Posted on September 11, 2017 at 4:45 pm
Meagan Griesel | Category: Fort Collins Real Estate | Tagged , , , , , , , , , , ,

Signs of Slowing?

An article in last week’s Denver Post about the Metro Denver market cooling off has prompted questions from our clients.

Is the same thing happening in Northern Colorado?Road, Sign, Asphalt, Road Sign, Roadsign

Are the Larimer and Weld County markets showing signs of slowing?

Here’s the deal…

The Denver Post article points to the difference in number of transactions between June and July of this year. It’s no surprise to us that July had fewer closings.

What’s true in Metro Denver is also true in Northern Colorado – June tends to have more closings than any other month during the year so of course July will be slower.

What we do notice when we look at the numbers is that the difference between June and July is significant.

In all major markets in Northern Colorado, the difference between June and July is the greatest it has ever been in the last four years.

For example, in Fort Collins, July had 18% fewer closings than June, whereas last year the difference was 9%. In Greeley the difference this year was 16% while last year was only 5%.

A month over month difference does not necessarily indicate a long-term trend. However, there is a difference compared to last year which should be welcome news to buyers who have been waiting for a slow down.

We have just completed a comprehensive report for anyone thinking about selling their home.

The Insider’s Guide to Selling Your Home (without any stress or surprises) is now available for you.

It is hot off the press and you can request a copy by emailing meagangriesel@gmail.com

Contact me to get your copy immediately so you can see everything you need to know to sell your home in today’s market.

Posted on August 15, 2017 at 6:41 pm
Meagan Griesel | Category: Fort Collins Real Estate, Longmont Real Estate, Loveland Real Estate, Northern Colorado Real Estate, Windsor Real Estate | Tagged , , , , , , , , ,

RECONSIDER THESE CHOICES WHEN DESIGNING YOUR KITCHEN

The kitchen is one area of the home that sees the most wear and tear. All the water, heat, and food spills add up quickly so it’s important to focus on quality and lasting appeal when you’re choosing materials for a kitchen remodel. Here are a few things you should avoid:

Cheap Laminate Countertops: The bottom rung of laminate is extremely susceptible to wear and tear. It can melt if you forget to place a hot pad under a pan that’s fresh out of the oven and the edges can chip off from repeated exposure to moisture and heat.

Flat Paint: A flat or matte finish is great in rooms with lower traffic, but it’s a bad idea in the kitchen where the walls are regularly exposed to splatters and spills. You need paint that can withstand an occasional heavy scrubbing, so opt for gloss or semi-gloss finishes.

Trendy Backsplash: If you watch any home remodeling show, you’ll certainly see kitchens with expensive, elaborate backsplash designs and materials. Those trends can be pricey to pursue and can look dated in a hurry. Subway tile is a cheaper, classic option that you’ll never regret, plus you’ll have more room in your budget to purchase quality materials to be used elsewhere.

Cheap Flooring: Just like the countertops, your kitchen floor needs to be strong enough to take some abuse. Cheap flooring easily scuffs and peels (especially from moisture). Quality flooring is worth the investment.

Kitchen, Real Estate, Interior Design

Posted on August 10, 2017 at 6:19 pm
Meagan Griesel | Category: Blog | Tagged , , , ,

THE GARDNER REPORT – 2ND QUARTER 2017
The Gardner Report | Metro Denver and Northern Colorado Q2 2017

The following analysis of the Metro Denver and 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

Colorado added 62,000 new jobs over the past 12 months, an increase of 2.4% over this time last year. All of the metropolitan markets included in this report saw annual employment growth, with substantial growth in Boulder (4.7%) and Fort Collins (+4.1%), and more modest growth in Grand Junction (0.3%).

In May, the unemployment rate in the state was 2.3%, matching the prior month and down 3.4% from a year ago. The lowest unemployment rate was in Fort Collins at just 2.0%. The highest rate was in Grand Junction, though it was still a relatively low 3.3%. It is reasonable to expect these markets will see above-average wage growth given the tight labor market.

HOME SALES ACTIVITY

  • There were 17,581 home sales during the first quarter of 2017, a solid annual increase of 3.9% over the first quarter of 2016.
  • Jefferson County saw sales grow at the fastest rate over the past 12 months, with a 9.4% increase. There was also an impressive increase in Douglas County (+6.3%).  More modest sales growth was seen in Denver and Weld Counties.
  • Even with the rise in sales, listing activity is still running at well below historic averages, with the total number of homes for sale in the second quarter 7.6% below a year ago.
  • Sales growth continues to trend higher, but inventory levels remain well below where they need to be to satisfy demand.
Annual Change in Home Sales

HOME PRICES

  • Due to solid demand, home prices continue to rise with average prices up by 8.5% year-over-year to an average across the region of $438,980.
  • Boulder County saw slower appreciation in home values, but the trend is still positive.
  • Appreciation was strongest in Denver and Weld Counties, where prices rose by 12.4% and 10.6% respectively.
  • Economic growth is driving job growth, which is driving housing demand. Given the relative shortage of homes for sale, expect to see home prices continue to appreciate at above-average rates at least through the rest of the year.
Metro Denver and Northern Colorado Heat Map
Annual Change in Home Sale Prices

DAYS ON MARKET

  • The average number of days it took to sell a home dropped by three days when compared to the second quarter of 2016.
  • Homes in all counties contained in this report took less than a month to sell. Adams County stood out as it took an average of only 11 days to sell a home.
  • During the second quarter, it took an average of just 17 days to sell a home. This is down by a substantial 13 days compared to the first quarter of this year.
  • The takeaway here is that demand remains robust as evidenced by the remarkably short amount of time that it is taking to sell a home.
Average Days on Market

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.

After the second quarter of 2017, I have moved the needle even farther in favor of sellers. Mortgage rates remain very competitive and, with the specter of lending standards easing a little, demand will remain robust, which will be reflected in rising home values.

ABOUT MATTHEW GARDNER

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 July 31, 2017 at 8:10 pm
Meagan Griesel | Category: Blog, Colorado Real Estate, Fort Collins Real Estate, Loveland Real Estate, Northern Colorado Real Estate | Tagged , , , , , , , ,

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