All the talk of the market cooling off might make someone think that prices must be going down.
The truth is prices are still going up.
Here are the latest year-over-year appreciation numbers from the Federal Housing Finance Authority (they track 243 markets all across the Country):
Colorado Springs 11.44%
Greeley 10.53%
Denver 9.97%
Boulder 9.89%
Fort Collins/Loveland 8.64%
Anytime the market cools off we sometimes hear prospective buyers say “I think I’ll wait for the market to correct, then I’ll buy after prices come way down.”
The reality is this… History shows that this wouldn’t be a good strategy.
Our go-to source on price appreciation is the Federal Housing Finance Authority who produces a quarterly home price index. They have been tracking Larimer County for 41 years.
Their numbers show:
So, someone who is waiting for prices to drop:
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.
The Front Range may have lost out on Amazon’s HQ2, but that doesn’t mean their company won’t affect our economy.
Denver was in the running for Amazon’s massive new second headquarters that supposedly would bring 50,000 new high-paying jobs and $5 Billion of investment.
In the end Amazon chose to split the headquarters among two East-Coast cities and many in Colorado breathed a sigh of relief.
But they are will continue to be an economic force in our state.
Over the past two years, Amazon has greatly expanded its footprint in Metro Denver, opening up a sorting center in Aurora, fulfillment centers in Aurora and Thornton, a Prime Now center in Denver and a new delivery center in Centennial.
They will soon have 3,000 workers here and that number is expected to grow significantly.
Pretend you have been driving on the Interstate at 100 miles per hour.
Also, pretend you have been doing that for a long time.
Now pretend you slow down to 83 miles per hour.
How would that feel?
It would probably feel slow, right?
83 miles per hour is a 17% decrease from 100. It may feel slow, but it’s still pretty fast.
How does this relate to real estate?
Well, the market has been moving fast for a long time.
It’s been going 100 miles per hour for at least two years (some would argue even longer).
We’ve recently seen a 17% change in terms of number of transactions that are occurring.
There were 17% fewer sales in October 2018 versus October 2017 in Metro Denver.
It feels slow because we’ve been driving so fast for so long. But, our market is still moving.
For example, prices are still up. So, remember, that it’s all relative.
Here’s some good news for buyers who have been waiting for more selection…
No need to wait any more because the numbers show that more new listings are hitting the market compared to the recent past.
In Metro Denver, the number of homes for sale is up 14.42% compared to last year.
That equates to 800 more homes to choose from.
Start spreading the news!
Come see this well maintained condo at 1602 Edora Road! This condo is close to schools, shopping, and I-25. It offers new carpet, new windows, a newly refinished bathroom, and fresh paint throughout the entire home, even the garage! Has a fenced back yard. This condo sits on a crawl space shared with the two other units. Call the listing agent for a tour! Contact Stephanie Woodard for more information or click below to view the photos and details, including price.
In times of change (like now), it’s valuable to look at the fundamentals of our market.
Let’s have some fun with fundamentals…
1. Our economy is healthy – since 1990, the unemployment rate in Colorado has never been higher than the U.S. unemployment rate. Ever. Unemployment in Colorado sits at 2.7% today while the rate across the U.S. is 4.0%.
2. People keep moving here – since 2005 our population has grown by just over a million people which is roughly 77,000 per year (about the size of Mile High Stadium).
3. Our real estate outperforms other places – according the Federal Housing Finance Authority, Colorado is the #1 state for home price appreciation since 1990.
Country living right between Windsor & Fort Collins at 36667 Pauline Place. This beautiful property has 3 bedrooms, 2 full bathrooms, and an over sized laundry/mud room perfect for craft or sewing work table. Also featured is a huge 5 piece master including a jetted tub. Check out the mountain views from the deck! The fenced back yard leads to acreage with mature pear, apple, and plum trees. The grapevines yield sweet table grapes. The unfinished walkout basement has 9 ft. ceilings and plumbing rough-ins. Property is zoned for up to 2 horses. Contact Julie Maxwell for more information or click below to view the photos and details, including price.
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.
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