The Federal Reserve raised their benchmark interest rate 0.25% this week.
Some perspective is in order…
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.
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!
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
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!
After a very active (to say the least) spring and summer, the door has now opened for buyers in our market.
Buyers 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%.
August marks the end of the busy real estate selling season and the beginning of the traditional seasonal slowdown in our market.
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!
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
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.
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 firstname.lastname@example.org.
When it comes to real estate, many say that Fort Collins is the “next Boulder.”
The Fort Collins average price is less than half of Boulder’s ($355,000 versus $890,000)
Fort Collins has 4 times as many transactions (1,108 versus 251)
Fort Collins has 4 times as many homes for sale (715 versus 175)
Homes in Boulder sell 25% faster (62 days versus 82 days)
*These numbers come from IRES and are through May 2016.
When was the last time you rode a see-saw?? (some people call it a teeter-totter.) Our market right now reminds me of when my little sister and I would try to ride one. There she was stuck up in the air and there I was stuck on the ground (I was a big kid!)
Here’s the deal- a market is “balanced” when there is 6 months of inventory for sale. Meaning it would take 6 months to sell out everything on the market assuming nothing new came on the market.
But wait! There’s more to the story! Taking a closer look at specific price ranges reveals that under $250,000 there is a two-week supply! And over $700,000 there is a 6.5 month supply.
If you want to see how to do this, give us a call!