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!

Posted on February 12, 2019 at 12:48 am
Kyle Basnar | Category: For Buyers, Fort Collins Real Estate, Northern Colorado Real estate, Northern Colorado Realtor | Tagged , , , , , ,

Our Forecast

This past Wednesday and Thursday evenings we had the pleasure of hosting our annual Market Forecast events in Denver and Fort Collins.

Thank you to the 700 people who attended. We appreciate your support!

In case you missed the events, here are some highlights including our forecast for price appreciation in 2019:
• In 2018 Prices went up:
o 8% in Fort Collins
o 8% in Loveland
o 8.5% in Greeley
o 8% in Metro Denver

Inventory is (finally) showing signs of increasing:
o Up 25% in Northern Colorado
o Up 45% in Metro Denver

• There are distinct differences in months of inventory across different price ranges = opportunity for the move up buyer.

• There are several reasons why we don’t see a housing bubble forming:
o New home starts along the Front Range are roughly 60% of pre-bubble highs 14 years ago.
o Americans have more equity in their homes than ever, $6 Trillion!
o The average FICO score of home buyers is significantly higher than the long-term average.
o The home ownership rate is back to the long-term average.

• Our 2019 Price Appreciation Forecast:
o 6% in Fort Collins
o 6% in Loveland
o 7% in Greeley
o 6% in Metro Denver

If you would like a copy of the presentation, go ahead and reach out to us. We would be happy to put it in your hands!

Posted on January 21, 2019 at 5:52 pm
Kyle Basnar | Category: First Time Home Buyer, Fort Collins Real Estate, Market News, Northern Colorado Real estate | Tagged , , , , , , , , ,

What Our Expert Thinks

 

• Existing Home Sales up 1.9% to 5.4 million units
• Home Prices up 4.4%
• New Home Sales up 6.9% to 695,000 (the highest since 2007)

 

If you want to see all of Matthew’s predictions including where interest rates are headed, get signed up for our annual Forecast. Click the link below!

https://www.eventbrite.com/o/windermere-real-estate-12011801121

Posted on January 8, 2019 at 11:30 pm
Kyle Basnar | Category: Blog, First Time Home Buyer, Fort Collins Real Estate, Northern Colorado Real estate, Northern Colorado Realtor | Tagged , , , , , ,

Still Up

All the talk of the market cooling off might make someone think that prices must be going down.

The truth is prices are still going up.

Here are the latest year-over-year appreciation numbers from the Federal Housing Finance Authority (they track 243 markets all across the Country):

Colorado Springs 11.44%

Greeley 10.53%

Denver 9.97%

Boulder 9.89%

Fort Collins/Loveland 8.64%

Posted on December 27, 2018 at 7:06 pm
Kyle Basnar | Category: For Buyers, Fort Collins Real Estate, Northern Colorado Real estate, Real Estate Market Update | Tagged , , , , , , , , , , ,

Waiting and Waiting

Anytime the market cools off we sometimes hear prospective buyers say “I think I’ll wait for the market to correct, then I’ll buy after prices come way down.”

The reality is this… History shows that this wouldn’t be a good strategy.

Our go-to source on price appreciation is the Federal Housing Finance Authority who produces a quarterly home price index.  They have been tracking Larimer County for 41 years.

Their numbers show:

  • Yearly prices have decreased only 6 times in history
  • The average amount of that decrease is only 1.7%

So, someone who is waiting for prices to drop:

  • Might be waiting a long time
  • Might be disappointed that prices didn’t drop by all that much
Posted on December 17, 2018 at 10:46 pm
Kyle Basnar | Category: First Time Home Buyer, For Buyers, Fort Collins Real Estate, Northern Colorado Real estate, Real Estate Market Update | Tagged , , , , , , , , , , ,

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.

Posted on December 11, 2018 at 8:03 pm
Kyle Basnar | Category: Fort Collins Real Estate, Fun Facts, Northern Colorado Real estate, Northern Colorado Realtor | Tagged , , , , , , , ,

83 Miles Per Hour

 

Pretend you have been driving on the Interstate at 100 miles per hour.

Also, pretend you have been doing that for a long time.

Now pretend you slow down to 83 miles per hour.

How would that feel?

It would probably feel slow, right?

83 miles per hour is a 17% decrease from 100. It may feel slow, but it’s still pretty fast.

How does this relate to real estate?

Well, the market has been moving fast for a long time.

It’s been going 100 miles per hour for at least two years (some would argue even longer).

We’ve recently seen a 17% change in terms of number of transactions that are occurring.

There were 17% fewer sales in October 2018 versus October 2017 in Metro Denver.

It feels slow because we’ve been driving so fast for so long. But, our market is still moving.

For example, prices are still up. So, remember, that it’s all relative.

Posted on November 15, 2018 at 10:16 pm
Kyle Basnar | Category: Blog, Fort Collins Real Estate, Northern Colorado Real estate, Northern Colorado Realtor | Tagged , , , , , , , , , , , ,

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 25, 2018 at 8:56 pm
Kyle Basnar | Category: Blog, Fort Collins Real Estate, Northern Colorado Real estate, Northern Colorado Realtor | Tagged , , , , , , , , ,

Mid-Century Modern Ranch in Fort Collins!

Completely remodeled & updated mid-century ranch at 1624 Smith Place! Sellers have added $40K of additional updates since last purchased. Updates include: Solid hickory floors throughout, stainless appliances, large kitchen island, open floor plan, new carpet & tile, upgraded electrical, new water heater, radon mitigation & ring doorbell. Gorgeous custom low maintenance landscaping! Next to Spring Creek Trail, a bike ride to Old Town & the newly updated Midtown shops at Foothills. Location! Location! Location! Call for your private showing at 970-481-5689 for more information or click the link below for more details.

http://windermerenoco.com/listing/87785649

Posted on October 22, 2018 at 10:02 pm
Kyle Basnar | Category: Fort Collins Real Estate, Virtual Tour | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

The Cost of Waiting

It’s true, certain parts of our market are cooling off. We are seeing fewer multiple offers, fewer bidding wars, and fewer inspection concessions.
However, homes that are priced right and in great condition are selling, and in many cases, selling quickly.

As buyers feel the market cool a bit, it may cause them to want to wait. They sometimes feel like it’s a better choice to ‘wait and see what happens.’

The reality is, there is a real cost to waiting given two specific facts.

1. Interest rates will continue to rise
2. Prices will continue to rise

Interest rates are a little more than 0.5% higher than a year ago and experts predict them to be another 0.5% higher by this time next year.

Prices have been appreciating at roughly 10% per year for the last four years. Based on the numbers, we see that appreciation could be 5% per year for the next two years.

So, let’s look at a house priced at $450,000 today. If prices go up “only” 5% for the next 12 months, that home will cost $22,500 more in a year.

And, if rates go up another half percent, the monthly payment will be $206 higher. That’s an 11% increase!

In an environment of rising prices and rising rates, there is a real cost to “wait and see.”

Posted on September 10, 2018 at 11:30 pm
Kyle Basnar | Category: Fort Collins Real Estate, Northern Colorado Real estate, Northern Colorado Realtor | Tagged , , , , , ,