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.
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.
Pretend that customer walks into our office and tells us they are looking for a single family home in Fort Collins. We would tell them that there are 314 to choose from. But if they told us their price range is up to $300,000, their choices would be limited to just 10 homes.
Single family homes priced under $300,000 only represent 3.18% of the total inventory in Fort Collins. This is a big reason why buyers are opening up their search to communities that surround Fort Collins.
Here’s a snapshot of the major Northern Colorado markets:
- Loveland: 176 Homes For Sale/15 Priced Under $300,000
- Windsor: 151 Homes For Sale/6 Priced Under $300,000
- Greeley: 98 Homes For Sale/33 Priced Under $300,000
- Fort Collins: 314 Homes For Sale/10 Priced Under $300,000
Last week Windermere’s Chief Economist Matthew Gardner joined us for our annual Market Forecast events in Colorado. We were pleased to host over 500 customers at two events in Denver and Fort Collins.
Here are some of the big takeaways that we shared:
- Interest rates will increase to 4.6% by the end of the year
- First-time buyers are back and will make up 47% of all buyers in 2017
- Inventory will remain at record lows and will continue to drive up prices
- Appreciation is expected to be between 9% and 7% across our Front Range markets
- Home builders will get creative in order to hit lower price points – we will see more “tiny homes” and more homes without basements
For Immediate Release
Denver, COLO. (December 8, 2016) – Windermere Real Estate has just opened a new office in one of the fastest growing communities in Metro Denver. The new Aurora location, which is located in the Southlands shopping center, joins Windermere locations in Fort Collins, Centennial, and Denver. Windermere opened its first office in Colorado just two years ago and has plans to continue growing across the state over the next few years.
“We are very excited about our recent expansion into Southeast Aurora; the city is growing by leaps and bounds and we are happy to be part of this exciting growth,” said Vincent Grandi, co-owner and managing broker of the Windermere Aurora office. “One industry that has lacked a presence in the area is real estate, forcing many home buyers and sellers to search outside the area for a real estate agent. We are proud to now provide a local neighborhood office with experienced and knowledgeable agents who live and work in Aurora and have extensive knowledge of all that the city has to offer,” said Grandi who co-owns the Windermere Metro Denver and Aurora locations along with (insert all the owner’s names).
Grandi added that one of the best advantages of living and working in the city of Aurora is the vast diversity of its residents, “Aurora is a melting pot of many immigrants that have chosen to come from all over the globe to live and work. We’re proud to be part of this community and look forward to providing the best real estate experience to the residents of Aurora,” he said.
The office features a hip, fresh atmosphere, effective spaces for agent training and client meetings, and a rooftop deck.
“This location fits our strategy to serve home buyers and sellers all across the Front Range,” said Eric Thompson President of Windermere Real Estate in Colorado. “We are thrilled with the team at Windermere Metro Denver and their ability to offer an exceptional experience to both their agents and their customers. I’m excited to watch Windermere grow in Aurora.”
About Windermere Colorado:
Since its inception in 1972, Windermere Real Estate has grown to be a network of 300 offices with more than 6,000 agents by focusing on three basic principles: hire the best people, give them the best tools and create thriving communities. Windermere’s growth has allowed them to expand into the Colorado market led by Eric Thompson, President of Windermere Colorado. For more information, visit www.windermerecolorado.com.
About Windermere Real Estate
Windermere Real Estate is ranked the largest regional real estate company in the Western U.S. with over 300 offices and 6,000 agents serving communities in Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, Oregon, Utah, Washington, and Mexico. Last year, Windermere closed over 86,000 home sales for more than $31.7 billion in dollar volume. The Windermere family has a proud heritage of serving our neighbors via the Windermere Foundation, which funds services for low-income and homeless families. Since 1989, the Windermere Foundation has contributed more than 32 million dollars towards improving lives in the communities where we live and work. For more information, visit www.windermere.com.