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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.
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%.
Seasonal Slowdown
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!
800 E Swallow, Fort Collins, CO 80525
Amazing Opportunity in Midtown! 4 Bedroom, 2 Bath, 1,900 Square Foot 4-Level Home, with a huge yard measuring over 11,000 Square Feet! Nicely updated interior with Wood Floors, Fresh Paint, Updated Lighting and New Stainless Steel Appliances coming soon! The wonderful back yard is fenced and offers endless possibilities. Just minutes to the new Foothills Mall, the Fort Collins MAX, Trails, Parks, Shopping and Entertainment. Seller is Licensed REALTOR.
Check here for details on this home: https://www.coloproperty.com/listing/details/1098894
Money is On Sale
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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
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.
Versus Boulder
When it comes to real estate, many say that Fort Collins is the “next Boulder.”
Let’s look at the 2016 numbers* and do a little side-by-side of Fort Collins versus 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.
6612 Avondale Road 6D, Fort Collins, CO.
Click here to see more information about this great listing. https://www.coloproperty.com/listing/details/1096790
Townhome in beautiful south Fort Collins! This home has it all, with a living room fireplace, backyard area, and all appliances included. Not on a thru street, so it is a quiet location, with easy access to College Ave, Horsetooth Reservoir, and Loveland. One car garage for your toys, and tons of storage in the full basement. This is a true townhome, so financing should be MUCH EASIER than on your average condo.
100.1% – What’s A “Normal” Market?
In a “normal” market* homes tend to sell for about 96% of the listing price.Meaning, that the buyer and seller will negotiate and end up settling on a price 4% below the list price. This statistic is an interesting way to measure if a market is a “buyers” market or “sellers” market. So far this year in the Loveland market, the average sale to list price ratio is 100.1%! Because of low inventory levels, prices are commonly bid up to over list price pushing this ratio far above the “normal” level. *One thing I’ve learned in my career, is there is no such thing as a “normal” market. However, there are long-term averages that any market tends to follow. |
Luxury Market Bingo
Let’s have some fun with 5 Fascinating Facts about the Luxury Market in Northern Colorado (homes priced over $700,000):
- Luxury homes represent 19% of all available inventory
- Luxury homes represent 3% of all closed sales
- The luxury market has 11 months of inventory
- The average sales to list price for a luxury home is 97%
- The average days on market for a luxury home is 132 days
Hot off the press is our brand new Luxury Market Report. It’s 12 pages of fun facts, charts, graphs and insights into the $700,000-plus market in Northern Colorado. This is a must-have resource.
Simply text LUXURYREPORT to 41411 or email
eric.thompson@windermere.com and we will get one in your hands right away.
Are you receiving our Friday Fun Facts? Do you want to? These little nuggets of information are designed to inform, education and entertain you. I promise to give you some solid takeaways, based on real life with information that will keep you up-to-date.
You can expect an entertaining short video or article once a week.. If you really like it, share it with your friends! To get signed up, simply email eric.thompson@windermere.com.
