Blog • Fun Facts • Market News • December 14, 2018

Waiting and Waiting

by Windermere Windsor

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:

Yearly prices have decreased only 6 times in history
The average amount of that decrease is only 1.7%

So, someone who is waiting for prices to drop:

Might be waiting a long time
Might be disappointed that prices didn’t drop by all that much

Blog • First Time Home Buyer • For Buyers • Fun Facts • December 7, 2018

Good Loan News

by Windermere Windsor

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.

Blog • Economy • Fun Facts • November 16, 2018

HQ3?

by Windermere Windsor

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.

Blog • Fun Facts • Housing Trends • Market News • November 9, 2018

83 Miles Per Hour

by Windermere Windsor

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.

Blog • For Buyers & Sellers • Fun Facts • Market News • October 26, 2018

FUNdamentals

by Windermere Windsor

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.

Blog • Fun Facts • September 28, 2018

What’s Starting?

by Windermere Windsor

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.

Fun Facts • Northern Colorado Real Estate • September 7, 2018

The Cost of Waiting

by Windermere Windsor

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.”

Fun Facts • Northern Colorado Real Estate • Windermere Real Estate • August 17, 2018

Did You Know?

by Windermere Windsor

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 our clients and friends.