Interest Rates Rise… So What?

The Federal Reserve raised their benchmark interest rate 0.25% this week.

So what does this mean for real estate?

Some perspective is in order…

First, mortgage rates are not directly tied to the Fed Funds rate. They are, however, closely tied to the 10-year Treasury.

While the Fed was raising their rates this week, mortgage rates actually dipped lower (although slightly).

Mortgage rates today on a 30-year loan are essentially 4.25%.

The long term average for mortage rates, going all the way back to 1970 is 7.5%

For every 1% rise in rates, there is a corresponding 10% impact to the monthly payment.

Mortgage rates have increased about 0.75% since the election.

Most economists expect rates to increase another 0.5% by year-end.

Click HERE to read a great article that goes a little more into depth about what this means for homeowners.

We are watching mortgage rates closely and will continue to keep our customers updated as to where the experts think they are heading. Contact us directly if you have any questions. (970) 460-3033.

Posted on March 17, 2017 at 8:50 am
Fort Collins | Category: Fun Facts | Tagged , , , ,

Limited Choices

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

What’s important to know is today’s market dynamics create an ideal scenario for the move up buyer to use the equity in their home, leverage the low interest rates, and buy the home of their dreams.

Posted on February 3, 2017 at 8:31 am
Fort Collins | Category: Blog, Fun Facts | Tagged , , , , , , , , , , , , , , , , , , , , , ,

Our Crystal Ball

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

Click HERE to see Matthew Gardner’s infographic on the 2017 Forecast.

Posted on January 27, 2017 at 12:10 pm
Fort Collins | Category: Blog, Economy | Tagged , , , , , , , , , , , , , , , , , , , , , ,

Did You Know?

Windermere Real Estate Northern Colorado Here are some fun “Did You Know?” stats as we wrap up 2016 (arguably one of the most fascinating years in the history of Northern Colorado Real Estate)

  • 2,281 homes were sold in Fort Collins this year
  • That’s 133 fewer than last year
  • Windsor had 197 more home sales than last year
  • The only major market with considerably more sales than 2015
  • Today, as we finish 2016, there are only 10 single family homes on the market in Fort Collins priced under $300,000.

 

Posted on December 30, 2016 at 3:42 pm
Fort Collins | Category: Blog, Colorado Real Estate, Fort Collins Real Estate, Fun Facts, Mortgage | Tagged , , , , , , , , , , , , , , , , , ,

‘Tis the season to give!

GIVEGIVEPlease consider giving a gift that counts this season.

Donate to help those in need in Colorado. Just click the link below… ALL donations will go to one of three organizations in Colorado that benefit low-income and homeless children and families.

Merry Christmas! #TackleHomelessness

To donate, just click here to go to our secure donation site: https://store.windermere.com/content/colorado-tacklehomelessness-donation

 

 

Posted on December 22, 2016 at 2:38 pm
Fort Collins | Category: Blog, Colorado Real Estate, Foundation | Tagged , , , , , , , , , , , , , , , ,

Multi-Wow

apartment-406901_1920Check out what’s happening in the multi-family market in Fort Collins.

The number of condos and townhomes for sale is way down compared to last year. 35% fewer new listings hit the market in November 2016 versus November 2015.

Of course that means prices are up, 15% to be exact. The average price for multi-family in Fort Collins is now at $282,000.

Who would have thought that one day the average price for a condominium or townhome in Fort Collins would be $300,000? Well, that’s close to being a reality.

Posted on December 12, 2016 at 4:59 pm
Fort Collins | Category: Blog, Colorado Real Estate, Fun Facts | Tagged , , , , , , , , , , , , , , , , , ,

100K

The City Manager for Fort Collins, Darin Atteberry, recently visited our weekly sales meeting. He had several interesting and valuable facts to share, including this…

lego-1044891_640Based on the City’s research, Fort Collins will grow by 100,000 people over the next 25 to 32 years. That will bring the population to approximately 255,000 people. It means Fort Collins will essentially add the equivalent of Boulder’s population over the next two and a half decades.

100,000 people will require 40,000 housing units. That equates to 1,600 new homes/apartments/condominiums/etc. per year for the next 25 years.

Wow!

If you are curious where all of these people with live and how Fort Collins will accommodate them, join us at our Third Annual Market Forecast event on January 19th! Windermere’s Chief Economist, Matthew Gardner, is flying here all the way from Seattle to present to us along with Eric Thompson, president of Windermere Colorado. Just visit www.WindermereForecast.com to reserve your seat.

Posted on December 2, 2016 at 4:30 pm
Fort Collins | Category: Blog, Fun Facts | Tagged , , , , , , , , , , , , , , , , ,

The Trump Tantrum

interest-rates-gameSince the election interest rates have jumped from 3.77% to 3.95% according to the Mortgage Bankers Association.

“This week’s increase in mortgage rates, being dubbed the ‘Trump Tantrum,’ is the biggest one week increase since the ‘Taper Tantrum‘ in June 2013,” said Bankrate’s chief financial analyst Greg McBride.

Economists say the anticipation of Trump’s pledged spending plans and tax cuts have investors anticipating some inflation and a dose of adrenaline to the economy which have caused a great deal of volatility in the market.

A little perspective is in order- rates today are still lower than the 3.97% recorded last year at this time. And, rates today are still essentially half of their long-term average.

Using a $400,000 home as an example with a 20% down payment, this interest rate increase translates to an additional $34 per month.

Many economists believe that we are now seeing the beginning of a long-term rise in interest rates.

source: Inman News

Posted on November 18, 2016 at 4:51 pm
Fort Collins | Category: Blog, Fun Facts, Mortgage | Tagged , , , , , , , , , , , , , , , , ,

Beware of Low Down Payments

First-time buyers can borrow with little down, but that may not be wise

Financial planners warn: "Borrowers should not overlook the true measure of home affordability: monthly cash flow."

Is your down payment going to affect your cash flow in the end? Check out this article to see what they suggest.

http://www.cnbc.com/2016/09/02/homebuyers-beware-of-banks-offering-too-much-cash.html

 

 

 

Posted on September 7, 2016 at 9:01 am
Fort Collins | Category: Blog, Mortgage | Tagged , , , , , , , , , , , , , , , , ,

People are refinancing like crazy!

Are you on the fence about buying a new home? Rates are at an all-time low and just dropped to 3.41%! Time is running out though, history shows that rates will have to increase to keep the economy going strong.

Check out the link to read more. http://finance.yahoo.com/news/people-refinancing-mortgages-crazy-000000183.html

 

Time Is Money

Posted on July 15, 2016 at 9:40 am
Fort Collins | Category: Blog | Tagged , , , , , , , , , ,