How’s the Colorado Real Estate Market?

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, townhome 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.

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 28, 2018 at 2:43 pm
Meagan Griesel | Category: Blog, Colorado Real Estate, Fun Facts | Tagged real estate market

Northern Colorado Real Estate Appreciation

How We Rank

Here’s how the largest Colorado cities rank on the most recent Federal Housing Finance Authority’s quarterly report. They study the appreciation rate in 245 metropolitan areas all over the country.

City Rank Appreciation

Boulder 65th 8.76%

Colorado Springs 15th 11.54%

Denver 30th 10.16%

Fort Collins 85th 7.51%

Grand Junction 58th 9.01%

Greeley 45th 9.51%

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 21, 2018 at 2:06 pm
Meagan Griesel | Category: Blog, Colorado Real Estate, Fort Collins Real Estate, Fun Facts | Tagged colorado real estate appreciation, Colorado Real Estate Market

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 | Category: Blog, Colorado Real Estate, Fun Facts, Northern Colorado Real Estate | Tagged buying homes, interest rates, NOCO real estate, selling homes

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 | Category: Blog, Colorado Real Estate, Fun Facts

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 | Category: 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 | Category: Blog, Colorado Real Estate, Fort Collins Real Estate, Loveland Real Estate, Northern Colorado Real Estate | Tagged Colorado Real Estate Market, northern colorado real estate

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.

Posted on May 21, 2018 at 2:58 pm
Meagan Griesel | Category: Colorado Real Estate, Northern Colorado Real Estate | Tagged Colorado Real Estate Market, The Gardner Report, Windermere Real Estate

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.

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 affordability, buyers, colorado real estate, colorado real estate stats, forecast, fort collins, loveland real estate, market forecast, northern colorado real estate, real estate prices, windsor

Short vs. Long

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 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 27, 2017 at 4:02 pm
Meagan Griesel | Category: Blog, Colorado Real Estate, Fun Facts, Northern Colorado Real Estate | Tagged colorado real estate, fort collins, interest rates, larimer, loveland real estate, northern colorado real estate, weld, windsor

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.

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 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 availability, colorado real estate, colorado real estate stats, fort collins, greeley, inventory, loveland real estate, northern colorado real estate

Inventory Is Up

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