A History Lesson

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.

Posted on October 19, 2018 at 9:19 am
Fort Collins | Category: Blog, Economy, Mortgage, Real Estate Market Update | Tagged , , , , , , ,

Are We Heading Towards A Bubble?

The US housing market has been going gangbusters in recent years. Record-setting sales, record-setting home prices, and a market that has largely favored sellers, while forcing fierce competition among buyers. All of this has led some to worry that we are heading towards another housing bubble. So, are we? On Tuesday, September 25, at 11 AM PST, Windermere Real Estate is hosting a Facebook Live event where our Chief Economist, Matthew Gardner, will discuss this and the latest Case-Shiller housing report. Whether you’re a buyer, seller, homeowner, or just a real estate junky, tune in to see what Matthew has to say; he’ll also be taking questions from the audience. This is the first in a series of Facebook Live events with Matthew, which will take place on the last Tuesday of each month.

You can learn more and offer suggestions for future discussions by following the link to the event here

Posted on October 18, 2018 at 5:00 am
Fort Collins | Category: Blog, Economy | Tagged , , ,

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 , , , ,

Prices Continue to Pop in 2017

 

PRESS RELEASE

FOR IMMEDIATE RELEASE

 

Prices Continue to Pop in 2017

Real Estate Prices in Larimer and Weld Counties Are Up Double-Digits

 Fort Collins, Colo. (Feb. 15, 2017) – Continuing a trend that started four years ago, average residential real estate prices in January 2017 increased by double-digits compared to one year ago.  Larimer County’s prices are 10.5% higher than last January and Weld County’s are up even more at 12.8%.

The average price of a property in Larimer County so far this year is $378,253 and in Weld County it is $310,948.  Both Counties have seen their residential average prices go up by almost $100,000 in just three years.

“For three years now we have had the perfect storm to cause prices to increase at a rate that is double the long-term average.  Northern Colorado is in the top-10 nationally for fastest growing communities, we have an incredibly healthy economy with high employment, interest rates that are roughly half of the long term average, and very few homes to pick from,” said Eric Thompson president of Windermere Real Estate in Colorado.

“The inventory of listings is especially low in the lower price points.  For example, if someone wanted to buy a single-family home in Fort Collins under $300,000 they would have five listings to choose from today.  Greeley has 33 homes at that price point,” Thompson said.  “These dynamics create a unique opportunity for move up buyers to capture the appreciation in their home and leverage the low interest rates to buy the home of their dreams.”

Even though the number of homes available for sale across Larimer and Weld Counties may be down, Windermere Real Estate in Northern Colorado saw their January closed transactions increased 48% compared to last year.  Their new written contracts are up even more at 110% compared to 2016.

About Windermere Colorado:

Since its inception in 1972, Windermere Real Estate has grown to be a network of 300 offices with more than 7,000 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. serving communities in Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, Oregon, Utah, Washington and Mexico. 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 28 million dollars towards improving lives in the communities where we live and work. For more information, visit www.windermere.com.

Posted on February 15, 2017 at 12:54 pm
Fort Collins | Category: Press Release | Tagged , , , , , , , ,

Love Loveland

It’s almost Valentine’s Day and Loveland Colorado is the place to be.

Loveland has certainly been a hot place to own real estate over the last 5 years. The median price was $192,500 in 2012 and today it is $315,000. That’s a $122,500 increase. We love it!

It also looks like it will be the place to be in the future. One of the many exciting developments on the horizon in Loveland is The Foundry.

The Foundry will revitalize Loveland’s historic downtown. Three empty city blocks will soon transform into a movie theater, apartments, offices, retailers and parking to support the increased traffic coming to the new epicenter of entertainment in downtown Loveland. Exciting stuff!

Loveland and Northern Colorado is one of the Front Range markets featured in our latest real estate report. It is written by our Chief Economist Matthew Gardner and you can get it by clicking here: The Gardner Report

Posted on February 13, 2017 at 8:37 am
Fort Collins | Category: Blog | Tagged , , , ,

The Mountain Market

With fall right around the corner many of us will be trekking up to Estes Park to see the Aspen leaves turning.

As you drive through Estes you may wonder “how’s the mountain market?”

Here are some fun facts about real estate in Estes Park.

  • The average price today is $394,046 – not that different than Fort Collins.
  • Average prices have gone up $60,000 in the last three years.
  • Their market has about 300 sales per year- roughly a tenth of the amount in Fort Collins.
  • If you were looking for a home in Estes between $300,000 and $500,000, you would have 15 to choose from.

Now you know about the Mountain Market!

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Posted on August 12, 2016 at 3:54 pm
Fort Collins | Category: Blog, Fun Facts | Tagged , , , , , , , , , , , , , , , ,

Door Opens for Buyers

After a very active (to say the least) spring and summer, the door has now opened for buyers in our market.

Sell Your Home With EaseBuyers who were frustrated during the first half of the year with low inventory and bidding wars now realize a better environment. It’s time to step off the sidelines and take a fresh look at what the market has to offer.

The first piece of good news is that rates have dropped to near all-time lows. Rates today are 0.6% lower than they were on January 1st. What this means on a $400,000 home with a conventional loan is a monthly savings of $110!

The second piece of good news is that inventory levels are coming up. There are more homes on the market to pick from and lower demand because of seasonal slowing. Months of inventory in Larimer County markets have bounced up 20% to 33%.

 

 

 

Posted on August 5, 2016 at 8:45 am
Fort Collins | Category: Blog, Fun Facts, Mortgage | Tagged , , , , , , , , , , , , , , , ,

Seasonal Slowdown

August marks the end of the busy real estate selling season and the beginning of the traditional seasonal slowdown in our market.car-768711_640

The four months of April, May, June and July tend to produce 45% of the year's total sales. This is based on looking back at 5 years of data.

If 2016 holds true to form, the next five months from now until the end of the year will be progressively slower.

No surprise that December tends to be the slowest month with a third of the number of sales compared to a typical July.

Here's what we will be watching closely over the next few months – is this year's seasonal slowdown "normal", or, because the market has been so hot this year, is it breaking traditional trends.

We will be sure to keep you informed!

 

 

 

Posted on July 29, 2016 at 3:04 pm
Fort Collins | Category: Blog, Fun Facts | 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 , , , , , , , , , ,

Mis-Match

Our market is under-supplied. Plain and simple. There is a 1 to 2-month supply of homes across Northern Colorado. A balanced market would have 6 months.

So, home builders to the rescue right? Not so fast. Home builders, for various reasons, have a very hard time matching the market.

75% of sales in Northern Colorado are below $400,000. Only 16% of new home inventory in Northern Colorado is below $400,000. That is a mismatch.

Builders are faced with high land costs, high materials cost, high labor costs, high permitting costs and high water costs. It’s pretty much impossible, in most parts of our market, to deliver a new home under $400,000.

So, condominiums to the rescue right? Not so fast. Because of onerous construction defect laws, developers do not want to build multi-family, for sale product. It’s too risky. They’d rather build apartments.

Our market is under-supplied. Plain and simple.

This is really good news if you are a seller who wants to move up. This is especially good news if you are a seller of a condominium.

Contact us to find out what our under-supplied market has done to the value of your home. We’ll put together an Equity Snapshot which will show you, in detail, what your home is worth in today’s market. It’s valuable information to have whether you are thinking of selling or not. Just call 970-460-3033 or e-mail us at fortcollins@windermere.com.

 

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Posted on July 15, 2016 at 8:21 am
Fort Collins | Category: Blog, Fun Facts | Tagged , , , , , , , , , , , , , , , ,