BlogFun Facts May 10, 2019

Inventory vs. Sales

A stat we find interesting is the relationship between the inventory for sale versus what is actually selling.

Specifically what we look at are price ranges.

We are curious to know if the inventory that is for sale lines up with what the buyers want.

Here’s what we notice…

In Larimer County, 23% of all the single family homes for sale are priced under $400,000. No surprise, this is a popular price range among buyers and it represents 45% of all sales.

So, the ratio is 23% of the inventory versus 45% of the sales.

In Weld County, the difference is more pronounced.

Homes under $400,000 represent 44% of the inventory and 69% of the sales.

Because the percentage of sales is higher than the percentage of inventory, properties under $400,000 will sell much quicker and are more likely to have multiple offers.

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To see the latest on the market, be sure to check out a copy of the new Gardner Report, our Chief Economist’s quarterly look at Front Range real estate.

BlogFun Facts April 19, 2019

Chugging Along

 

The real estate market keeps chugging along.

Here’s news from the Mortgage Banker’s Association…

Last week, applications to purchase a home hit their highest level since April 2010. This is clearly a sign that the spring selling season is starting off in full swing.

You may remember that the reason why April 2010 was so active is because of the Home Buyer Tax Credit that was in effect. In order to get a special income tax incentive, buyers had to go under contract in April 2010 and close by June 30, 2010.

Today, purchase applications are at their highest level in 9 years and are up 14% over last year. Interest rates are roughly 0.5% lower than 6 months ago and roughly 3.0% below their long-term average.

Let the Spring Selling Season begin!

BlogFor BuyersFun Facts March 22, 2019

Party Like It’s 2018!

 

Just a few months ago most people thought mortgage rates were heading to 5% and now they are back to where they were a year ago.

 

You probably saw this week’s news from the Federal Reserve declaring that they would not raise their Federal Funds rate for the rest of 2019

 

(just three months after saying they would raise rates at least twice this year).

 

While this is big news, even bigger news for mortgage rates is that the 10-year Treasury yield just hit its lowest point since January 2018. One thing we’ve learned from our Chief Economist Matthew Gardner is that mortgage rates follow the 10-year treasury (not necessarily the Fed Funds rate).

 

Last Spring it looked like mortgage rates had bottomed out and they steadily climbed through the Summer and Fall of 2018. It looked certain that they would hit 5% around January.

 

Instead they started dropping. Now with the 10-year Treasury at a 15-month low, they just dropped a little more and they are back to where they were a year ago.

 

Great news for buyers! Party like it’s 2018!

BlogFor BuyersFun FactsHousing TrendsMarket News February 8, 2019

How’s 2019?

A lot of our clients are asking how 2019 is starting off.

Here’s one thing we notice…

There are more homes to choose from, which is great news for buyers.

In January alone 4,821 homes came on the market in Metro Denver.

That is a 14% increase compared to one year ago.

At our annual Market Forecast, we predicted a more balanced market in 2019, so far it looks like we are trending that way.

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Below is the recap of our Denver Annual Market Forecast!

BlogFirst Time Home BuyerFor BuyersFun Facts December 7, 2018

Good Loan News

 

Here are two recently-announced pieces of really good news for home buyers.

• The Colorado Housing and Finance Authority recently raised the income limit for their down payment assistance program to $115,600.

Now more people can get help with a down payment.

• Fannie Mae and Freddie Mac raised their conforming loan limits so that more people can use a conforming loan and not be forced to use a ‘jumbo’ loan.

Contact us if you would like to hear how these pieces of news could help you.

For BuyersFun FactsHousing TrendsReal Estate Market Update November 2, 2018

Good News for Buyers

Here’s some good news for buyers who have been waiting for more selection…

No need to wait any more because the numbers show that more new listings are hitting the market compared to the recent past.

In Metro Denver, the number of homes for sale is up 14.42% compared to last year. 

That equates to 800 more homes to choose from.

Start spreading the news!

BlogBuyers & SellersColorado Real EstateHomes for Sale October 31, 2018

Planning for the Life Expectancy of Your Home

 

Nothing in life lasts forever – and the same can be said for your home. From the roof to the furnace, every component of your home has a lifespan, so it’s a good idea to know approximately how many years of service you can expect from them. This information can help when buying or selling your home, budgeting for improvements, and deciding between repairing or replacing when problems arise.

According to a National Association of Home Builders (NAHB) study, the average life expectancy of some home components has decreased over the past few decades.  (This might explain why you’re on your third washing machine while Grandma still has the same indestructible model you remember from childhood.) But the good news is the lifespan of many other items has actually increased in recent years.

Here’s a look at the average life spans of some common home components (courtesy of NAHB).

Appliances. Of all home components, appliances have the widest variation in life spans. These are averages for all brands and models and may represent the point which replacing is more cost-effective than repairing. Among major appliances, gas ranges have the longest life expectancy, at about 15 years. Electric ranges, standard-size refrigerators, and clothes dryers last about 13 years, while garbage disposals grind away for about 10 years. Dishwashers, microwave ovens, and mini-refrigerators can all be expected to last about nine years. For furnaces, expect a lifespan of about 15 years for electric, 18 for gas, and 20 for oil-burning models. Central air-conditioning systems generally beat the heat for 10 to 15 years.

Kitchen & Bath. Countertops of wood, tile, and natural stone will last a lifetime, while cultured marble will last about 20 years. The lifespan of laminate countertops depends greatly on the use and can be 20 years or longer. Kitchen faucets generally last about 15 years.  An enamel-coated steel sink will last five to 10 years; stainless will last at least 30 years; and slate, granite, soapstone, and copper should endure 100 years or longer. Toilets, on average, can serve at least 50 years (parts such as the flush assembly and seat will likely need replacing), and bathroom faucets tend to last about 20 years.

Flooring. Natural flooring materials provide longevity as well as beauty: Wood, marble, slate, and granite should all last 100 years or longer, and tile, 74 to 100 years. Laminate products will survive 15 to 25 years, linoleum about 25 years, and vinyl should endure for about 50 years. Carpet will last eight to 10 years on average, depending on use and maintenance.

Siding, Roofing, Windows. Brick siding normally lasts 100 years or longer, aluminum siding about 80 years, and stucco about 25 years. The lifespan of wood siding varies dramatically – anywhere from 10 to 100 years – depending on the climate and level of maintenance. For roofs, slate or tile will last about 50 years, wood shingles can endure 25 to 30 years, the metal will last about 25 years, and asphalts got you covered for about 20 years. Unclad wood windows will last 30 years or longer, aluminum will last 15 to 20 years, and vinyl windows should keep their seals for 15 to 20 years.

Of course, none of these averages matter if you have a roof that was improperly installed or a dishwasher that was a lemon right off the assembly line. In these cases, early replacement may be the best choice. Conversely, many household components will last longer than you need them to, as we often replace fully functional items for cosmetic reasons, out of a desire for more modern features, or as a part of a quest to be more energy efficient.

Are extended warranties warranted?

Extended warranties, also known as service contracts or service agreements, are sold for all types of household items, from appliances to electronics. They cover service calls and repairs for a specified time beyond the manufacturer’s standard warranty. Essentially, warranty providers (manufacturers, retailers, and outside companies) are betting that a product will be problem-free in the first years of operation, while the consumer who purchases a warranty is betting against reliability.

Warranty providers make a lot of money on extended warranties, and Consumers Union, which publishes Consumer Reports, advises against purchasing them.  You will have to consider whether the cost is worth it to you; for some, it brings a much-needed peace of mind when making such a large purchase. Also, consider if it the cost outweighs the value of the item; in some cases, it may be less expensive to just replace a broken appliance than pay for insurance or a warranty.

BlogBuyers & SellersHousing Trends June 19, 2018

How to Get Started in Real Estate Investing

Investing in real estate is one of the world’s most venerable pathways to building wealth. When properly managed, income from renting or real estate investment trusts can provide you with the financial security to plan out the rest of your life. The conclusion is easy to envision, but knowing where to begin can be overwhelming, particularly for anyone who has never previously owned a home.

At Windermere our goal is always to improve and support our communities, so we’ve put together a few key things to keep in mind as you enter the world of real estate investment.

Know the right type of investment for you

Investing in real estate needn’t commit you to being a landlord. A Real Estate Investment Trust (REIT) is a low-maintenance way to get involved in real estate with next to none of the day-to-day monitoring required of direct property management. REITs are trusts that typically own multiple properties, and investors may purchase shares within the REIT. Typically, as the value of the property rises, so too do the values of your shares. If you’d like to dip a toe into real estate investing before diving in fully, a REIT is a great place to start.

Start with your own home

Owning the roof over your head is a basic step towards investing success. Even better, when you plan to live in the home you’re buying (rather than renting it out), you will likely benefit from lower mortgage rates and a cheaper down payment. The reasoning is straightforward – lenders see a loan to people purchasing the home they live in as an investment in people highly committed to the property.

Once you’ve owned your own house for a few years, you can look to purchase a new home to move into. By purchasing the new home with the intent to move in, you’ll be eligible to receive more favorable financing once again. After you’ve secured your new home, your first home is primed to be transformed into a rental property, and you can continue to see a return on your investment. If you’re seeking further support with buying a first, second, or third home, our website and our agents are full of information.

Cast a wide net

The best investment opportunity isn’t always going to be right underneath your nose. While there are logistical benefits to focusing locally with your investment, you may miss more profitable opportunities in another burgeoning market. Real estate is a long game, and patience tends to be rewarded. There’s no cause to rush a decision of this magnitude, so investigating other states and regions to find the property that best fits your situation is a process worth considering.

Northern Colorado Real Estate July 28, 2017

A Shocking Truth

Here’s a stat that may shock you.

Even in this hot market, all up and down the Front Range, one out of five homes for sale have been sitting on the market for more than 100 days.

When other homes are under contract within days or even hours, 20% sit on the market waiting for a buyer.

Why are these houses not selling? What’s wrong with them?

Perhaps the answer is obvious: the roof is in disrepair, the paint is peeling, weeds have overtaken the yard, a railroad track runs behind the home, the neighbor’s property looks like a junkyard – the list goes on as to the possibilities.

The important lesson for sellers is this- it is the dynamic of price relative to condition which generates offers.

If a buyer visits a home and they are (unpleasantly) surprised by the condition, they will not write an offer. Buyers conjure up a certain expectation of the home based on the marketing and the photography they see online. When the home does not live up to that expectation, the buyer will pass and move on to other options.

Sellers only have a small number of items within their control. Oftentimes the conditions which a buyer may not like cannot be changed by a seller (road noise for instance.)

The one condition a seller can control is price. The price of a home must be aligned with its condition, or the seller risks being one of the unlucky 20% of homes languishing on the market.

We have just completed a comprehensive report about this topic.

The Insider’s Guide to Selling Your Home (without any stress or surprises) is now available for you.

It is hot off the press and you can request a copy by emailing colorado@windermere.com or by calling (970) 460-3033.

Contact us to get your copy immediately so you can see everything you need to know to sell your home in today’s market.

EconomyMarket NewsReal Estate Market Update February 21, 2017

Northern Colorado Market Forecast Overview

Did you miss our Northern Colorado real estate market forecast or do you just want a quick refresher?

Windermere Colorado’s President, Eric Thompson, gives you a recap of what we discussed and what we predict will happen with the housing market in the upcoming years.

A few key points from Matthew Gardner, co-presenter at the forecast and Windermere Real Estate’s very own Chief Economist:

OVERVIEW

Annual employment growth in Colorado was measured at a respectable 2.2% in November and will likely finish the year having created around 55,000 new jobs. Within the metropolitan market areas included in this report, we are seeing employment growth at or above the state level and I anticipate that this will continue to be the case in 2017.

Unemployment rates continue to drop, and with rates now below three percent, all of Colorado’s metro areas are at full employment. Because of this robust level of growth—in concert with very low unemployment levels—I anticipate that we will see some fairly substantial income growth as companies look to recruit new talent and keep existing employees happy.

HOME SALE ACTIVITY

  • There were 14,614 home sales during the fourth quarter of 2016—up by a marginal 0.7% from the same period in 2015.
  • Jefferson County saw sales grow at the fastest rate over the past 12 months, with a 5.9% increase. Sales activity fell in three counties, but this was a function of short supply rather than slowing demand.
  • Listing activity continues to remain well below historic averages, with the total number of homes for sale in the fourth quarter 12.8% below that seen a year ago.
  • The key takeaway from this data is that 2017 is shaping up to be one which will still substantially favor home sellers. I do anticipate that we will see some improvement in listing activity, but it is almost a certainty that demand will exceed supply for another year.

HOME PRICES

  • Demand continued to exceed supply in the final three months of 2016 and this caused home prices to continue to rise. In the fourth quarter, average prices rose by 9% when compared to the fourth quarter of 2015. The average sales price across the region is now $393,969.
  • In many parts of the region, prices are well above historic highs and continue to trend upward. With double-digit price increases over the past year, the market remains very hot.
  • Annual price growth was strongest in Larimer and Jefferson Counties, where prices rose by 11.8% and 10.9% respectively.
  • While we will likely see some modest softening in home price growth in 2017, we can still expect a very strong market.