Temperatures may be cooling off but the Front Range real estate market is not.
Typically the market starts to slow down a bit in the Fall after a hot Spring and Summer.
Not this year.
The indicator we use to measure future closed sales is current pending sales.
Simply, we look at the number of properties under contract and scheduled to close versus the same time last year.
Current pending sales are way up along the Front Range when measured against 2019:
Metro Denver up 34.1%
Larimer County up 48.6%
Weld County up 50.2%
Based on these numbers, closed sales numbers over the next 60 days will be very strong.
Come see 4336 Carlyle Ln in Wellington, CO! This recently built home is on a great lot with privacy behind. Walk into the grand living room and well-appointed kitchen to experience the very open floorplan. There is an office on the main level if you work from home. Modern colors throughout, large master bedroom with a gorgeous master bathroom retreat. It even has a new roof! Call for your private showing at (970) 673-7285 for more information or click the link below for more details.
Have you been waiting for a multifamily opportunity? Well here is one close to CSU, a zero vacancy history, and numbers that make this a unique investment in west Fort Collins. 1113 – 1115 Cypress Dr, is a duplex that features a newer roof, updates in both units, and a location that can’t be beat. Gross rents of $2895 (plus chargebacks for utilities) deliver a cap rate of just above 6% based on real maintenance and upkeep costs. Remodeled bathroom in one unit, as well as some new flooring, this property has been well maintained and is ready for your investment portfolio! Call for your private showing at (970) 673-7285 for more information or click the link below for more details.
The number of loans in forbearance just fell to their lowest level since mid-April.
This is good news for the real estate market.
Less and less people are seeking payment relief on their mortgages.
The number of loans currently in forbearance stands at 7.16%.
This news coincides with the U.S. Unemployment Rate falling to it’s lowest level in 5 months as more people are getting their jobs back.
The economy has added back roughly half of the 22.2 million jobs that were lost in March and April of this year.
Sales of new homes have jumped to their highest levels in 14 years.
The annualized rate of single-family new construction homes is now at 901,000 according to the new Census Bureau report.
This means that across the U.S., at the current pace of sales, there will be almost 1,000,000 new homes built and sold over the next 12 months.
This pace is 36% higher than one year ago and the highest it has been since the end of 2006.
Given the low inventory levels of previously-owned homes that most of the Country is experiencing, this uptick in new home activity is welcome news.
The Federal Housing Finance Authority just released their most recent quarterly report which tracks home price appreciation in the top 100 metropolitan areas in the U.S. plus appreciation in individual states.
Some significant findings from the report:
House prices have risen for 36 consecutive quarters, or since September 2011.
House prices rose in all 50 states and the District of Columbia between the second quarters of 2019 and 2020.
The top five areas for annual appreciation were:
1) Idaho 10.8%
2) Arizona 9.1%
3) Washington 8.6%
4) Utah 8.1%
5) New Mexico 7.7%.
Idaho has been the leading state for the last 7 quarters.
Colorado showed annual appreciation of 4.4%.
The areas showing the lowest annual appreciation were:
1) West Virginia 1.1%
2) North Dakota 1.1%
3) District of Columbia 1.4%
4) Illinois 2.5%
5) Alaska 2.6%.
House prices rose in 99 of the top 100 largest metropolitan areas in the U.S. over the last four quarters.
Annual price increases were greatest in Honolulu, HI, where prices increased by 11.7%.
Prices were weakest in San Francisco, where they decreased by 0.3%.
At Windermere Real Estate we are taking Safer at Home and Social Distancing very seriously. Our people are following our Safe Showings protocol, staying connected to their clients, and providing help wherever needed.
Start it Up
As further evidence that the housing market is more than alive and well, new home starts have recently jumped across the U.S.
Building of residential properties is up 23.4% compared to last year and up 22.6% from last month.
Pre-pandemic demand for new homes was very high. Now, record-low interest rates are fueling the market to new highs.
Central Fort Collins for a great price! Well maintained home in Warren Farm, this is NOT one that backs to Horsetooth. Currently leased for $1750 per month through July of 2021, so it’s a great plug and play investment property. Call for your private showing at (970) 673-7285 for more information or click the link below for more details.
Periodically we track a stat which we find to be quite interesting.
It answers this question – how many properties are selling for at least list price (asking price or higher)?
This stat tells us how active the market is and helps our buyers to realize that, in some cases, they will be in a competitive situation.
When we look at single-family home sales so far this month, this is what we find:
57% of properties in Larimer County sell for at least list price
62% of properties in Weld County sell for at least list price
So, in well over half of the transactions, buyers need to offer list price or higher to acquire the property.
The data gets even more interesting when this information is broken out by price range.
To no one’s surprise, the percentage increases for properties priced under $400,000:
81% in Larimer County
70% in Weld County
We find that for properties over $400,000 the percentages still tell a story of a very active market:
47% in Larimer County
56% in Weld County
Bottom line, in most locations and price ranges we see a strong sellers’ market where buyers need to be prepared to make a strong offer and to also compete.
Incredibly unique rural property 528 E County Road 2 in Larimer County side of Berthoud. Water rights included in the sale, and the wells irrigate the landscaping. This home has multigenerational living with a master suite on one side and a separate living area on the other side with handicapped access and a kitchen (with no stove). Extra living area is handicap accessible. Detached garage, shop, and additional building that could be used for storage or an office space. 4 acres of currently farmed grass hay, mature and beautiful landscaping with trees, grass, and a large patio. Stainless appliances and 2 ovens for those that like to cook. Tankless water heater and new roof as well. Come see this home today! Call for your private showing at (970) 673-7285 for more information or click the link below for more details.