Real Estate Is a Driving Force in the Economy

Real Estate Is a Driving Force in the Economy

Real Estate Is a Driving Force in the Economy | MyKCM

As the economy recovers from this year’s health crisis, the housing market is playing a leading role in the turnaround. It’s safe to say that what we call “home” is taking on a new meaning, causing many of us to consider buying or selling sooner rather than later. Housing, therefore, has thrived in an otherwise down year.

Today’s high buyer demand combined with low housing inventory means we’re seeing home prices appreciate at an above-average pace. This demand is being driven by those who want to take advantage of historically low mortgage rates. According to Freddie Mac:

“The record low mortgage rate environment is providing tangible support to the economy at a critical time, as housing continues to propel growth.”

These factors are driving a positive impact on the economy as a whole. According to the National Association of Realtors (NAR), the real estate industry provided $3.7 billion dollars of economic impact to the country last year. To break it down, in 2019, the average newly constructed home contributed just over $88,000 per build to local economies. Across the country, real estate clearly makes a significant impact (See map below):Real Estate Is a Driving Force in the Economy | MyKCMIn addition, last week, the Bureau of Economic Analysis announced the U.S. Gross Domestic Product increased at an annual rate of 33.1% in the 3rd quarter of this year, after decreasing by 31.4% in the second quarter. There’s no doubt the growing economy is being fueled in part by the soaring housing market. Experts forecast this housing growth to carry into 2021, continuing to make a big impact on the economy next year as well.

Bottom Line

The American Dream of homeownership has continued to thrive in the midst of this year’s economic downturn, and “home” has taken on a new meaning for many of us during this time.  Best of all, the housing market is making a significant impact as the economy recovers.


Posted on November 30, 2020 at 8:00 am
Paul Hunter | Posted in Uncategorized |

Why the 2021 Forecast Doesn’t Call for a Foreclosure Crisis

Why the 2021 Forecast Doesn’t Call for a Foreclosure Crisis

Why the 2021 Forecast Doesn’t Call for a Foreclosure Crisis | MyKCM

As the current forbearance mortgage relief options come to an end, many are wondering if we’ll face a foreclosure crisis next year. This is understandable, especially for those who remember the housing crisis that began in 2008. The reality is, plans have been put in place through forbearance to ensure history doesn’t repeat itself.

This year, homeowners are able to request 180 days of mortgage relief through forbearance. Upon expiration of that timeframe, they’re also entitled to request 180 additional days, bringing the total to 360 days of deferred payment eligibility. As forbearance expires, homeowners should stay in touch with their lender, because creating a plan for the deferred payments is a critical next step to avoiding foreclosure. There are multiple options for homeowners to pursue at this point, and with the right planning and communication with the lender, foreclosure doesn’t have to be one of them.

Many homeowners are concerned that they’ll have to pay the deferred payments back in a lump sum payment at the end of forbearance. Thankfully, that’s not the case. Fannie Mae explains:

You don’t have to repay the forbearance amount all at once upon completion of your forbearance plan…Here’s the important thing to remember: If you receive a forbearance plan, you will have options when it comes to repaying the missed amount. You don’t have to pay the forbearance amount at once unless you are able to do so.”

When looking at the percentage of people in forbearance, we can also see that this number has been decreasing steadily throughout the year. Fewer people than initially expected are still in forbearance, so the number of homeowners who will need to work out alternative payment options is declining (See graph below):Why the 2021 Forecast Doesn’t Call for a Foreclosure Crisis | MyKCMThis means there are fewer and fewer homeowners at risk of foreclosure, and many who initially applied for forbearance didn’t end up needing it. Mike Fratantoni, Senior Vice President and Chief Economist at the Mortgage Bankers Association (MBA), explains:

Nearly two-thirds of borrowers who exited forbearance remained current on their payments, repaid their forborne payments, or moved into a payment deferral plan. All of these borrowers have been able to resume – or continue – their pre-pandemic monthly payments.”

For those who are still in forbearance and unable to make their payments, foreclosure isn’t the only option left. In their Homeowner Equity Insights ReportCoreLogic indicates:

“In the second quarter of 2020, the average homeowner gained approximately $9,800 in equity during the past year.”

Many homeowners have enough equity in their homes today to be able to sell their houses instead of foreclosing. Selling and protecting the overall financial investment may be a very solid option for many homeowners. As Ivy Zelman, Founder of Zelman & Associates, mentioned in a recent podcast:

“The likelihood of us having a foreclosure crisis again is about zero percent.”

Bottom Line

If you’re currently in forbearance or think you should be because you’re concerned about being able to make your mortgage payments, reach out to your lender to discuss your options and next steps. Having a trusted and knowledgeable professional on your side to guide you is essential in this process and might be the driving factor that helps you stay in your home.


Posted on November 25, 2020 at 8:00 am
Paul Hunter | Posted in Buyer Tips, Seller Tips |

Making a Home for the Brave Possible [INFOGRAPHIC]

Making a Home for the Brave Possible [INFOGRAPHIC]

Making a Home for the Brave Possible [INFOGRAPHIC] | MyKCM

Some Highlights

  • VA Home Loans provide unique opportunities for Veterans, active-duty personnel, and their families in recognition of their service to our Nation.
  • For eligible individuals, options associated with VA Loans can help make the dream of homeownership a reality.
  • If you or someone you know may benefit from a VA Loan, let’s connect to answer your questions today.

Posted on November 23, 2020 at 8:00 am
Paul Hunter | Posted in Buyer Tips |

Remodeling Impact

Americans spend $400 billion per year remodeling their homes.
So, which remodeling investment gives the best return when it comes to resale value?
It should come as no surprise, especially leading up to Thanksgiving, that the best money to spend upgrading your home is in the kitchen.
It’s the place where most homeowners spend most of their waking hours.
According the research from the National Association of Realtors, it’s where remodelers will see the biggest return on investment.
Here is the ranking of various projects in terms of the value it adds to the home:

1. Complete kitchen remodel
2. Kitchen upgrade
3. HVAC replacement
4. Owner’s suite renovation
5. Bathroom renovation
6. Finishing a basement
7. Adding a bathroom

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.


Posted on November 20, 2020 at 3:12 pm
Paul Hunter | Posted in Buyer Tips, Friday Fun Facts, Real Estate, Seller Tips | Tagged , , , , ,

Is It Safe to Sell My House Right Now?

Is it Safe to Sell My House Right Now?

Is it Safe to Sell My House Right Now? | MyKCM

In today’s real estate market, the buzz is all about how it’s a great time to sell your house. Buyer demand is high, and there simply aren’t enough homes available to buy to meet that growing need. This means now is the time to make a move so you can close the deal on your ideal terms.

Even in today’s strong sellers’ market, there are homeowners who are choosing not to sell due to ongoing concerns around the health crisis, financial uncertainty, and life in general. According to Zillow, here are the top three reasons homeowners who are thinking of selling sometime in the next three years are not putting their houses on the market right now:

  • 34% – Life is too uncertain right now
  • 31% – Financial uncertainty
  • 25% – COVID-19 health concerns

If you identify with any of these, you’re not alone. Whether it’s the future of your employment situation or simply being uncomfortable having guests in your home for showings, life feels a lot different than it did at this time last year. The good news is, real estate professionals have spent the majority of 2020 figuring out how to sell homes safely, and it’s paying off for those who are choosing to move this year.

Real estate agents are doing two things very well to make selling your house possible:

1. Agents Are Implementing Technology in the Process

While abiding by state and local regulations as a top priority, real estate agents are making sales happen safely and effectively by leveraging key pieces of technology. Agents know exactly what today’s buyers and sellers need and how to put the necessary digital steps in place. For example, agents have capitalized on the technology buyers find most helpful when deciding on a new home:

  • Virtual tours
  • Accurate and detailed listing information
  • Detailed neighborhood information
  • High-quality listing photos
  • Agent-led video chats

They’re listening to their audience and leveraging the tools that help buyers get an initial look at a home without having to step inside. This helps reduce the number of people entering your home, so only those who are very seriously interested need to take the next step: in-person showings.

2. Agents Are Facilitating Safe and Effective In-Person Showings

After leveraging technology, if you have serious buyers who still want to see your house in person, agents are following the guidelines set by the National Association of Realtors (NAR) and utilizing safe ways to proceed. Here are a few of them, understanding again that the agent’s top priority is always to follow­ state and local restrictions first:

  • Limiting in-person activity
  • R­­­equiring guests to wash their hands or use an alcohol-based sanitizer
  • Removing shoes or covering them with booties
  • Following CDC guidance on social distancing and wearing face coverings

Getting comfortable with your agent – a true trusted advisor – taking these steps under the modern-era safety standards might be your best plan. This is especially important if you’re in a position where you need to sell your house sooner rather than later.

As Jeff Tucker, Senior Economist for Zillow notes:

“Homeowners who feel life is uncertain right now may think they can still get a strong price if they delay selling until they have more clarity. The catch is that waiting to sell may raise the cost of a trade-up. This fall’s record low mortgage rates, which make a trade-up more affordable on a monthly basis, are not guaranteed to last.”

Bottom Line

In this new era in our lives, things are shifting quickly, and virtual strategies for sellers may be your ideal option. Opening your doors up to new approaches could be game-changing when it comes to selling your house while the market is leaning in your favor. Let’s connect so you have a trusted real estate professional to help you safely and effectively navigate all that’s new when it comes to making your next move.


Posted on November 18, 2020 at 8:00 am
Paul Hunter | Posted in Seller Tips | Tagged

Homeownership Is a Key to Building Wealth

Homeownership Is a Key to Building Wealth

Homeownership Is a Key to Building Wealth | MyKCM

For years, real estate has been considered the best investment you can make. A major reason for this is due to the net worth a household gains through homeownership. In fact, according to the 2019 Survey of Consumer Finance Data from the Federal Reserve, for the average homeowner:

“…a primary home accounts for 90% of the total wealth of a family in the U.S.”

How do homeowners gain wealth?

Most large purchases, like cars and appliances, depreciate in value as they age, so it’s understandable to question how owning a home can increase wealth over time. In a simple equation, the National Association of Realtors (NAR) explains how the combination of paying your mortgage and home price appreciation grow overall wealth:

Principal Payments + Price Appreciation Gains = Housing Wealth Gain

As home values increase and you make payments toward your home loan, you’ll gain wealth through equity. The same article from NAR also addresses how wealth gains tend to play out over time:

“Housing wealth accumulation takes time and is built up by paying off the mortgage debt and by price appreciation. And while home prices can fall, home prices tend to recover and go up over the longer term. As of September 2020, the median sales price of existing home sales was $311,800, a 35% gain since July 2006 when prices peaked at $230,000.”

Taking a look at how equity has grown for the typical homeowner, it’s clear to see how real estate is a sound long-term investment. NAR notes:

“Nationally, a person who purchased a typical home 30 years ago would have typically gained about $283,000 as of the second quarter of 2020.” (See graph below):

Homeownership Is a Key to Building Wealth | MyKCM

Bottom Line

Whether you’re a current homeowner planning to put your equity toward a new home or have hopes of buying your first home soon, homeownership will always be a great opportunity to build your net worth and overall wealth. Owning a home is truly an investment in your financial future.


Posted on November 16, 2020 at 8:00 am
Paul Hunter | Posted in Buyer Tips | Tagged , , ,

A Little Perspective

A Little Perspective

Here’s a little perspective on the inventory of homes for sale in today’s market…

First we’ll look at Metro Denver:

• The average number of residential listings for sale at this time of year is 15,577
• The highest-ever for this time of year is 29,722 which occurred in 2006
• The number of listings right now is 4,821
• So, inventory in Metro Denver is roughly one-third of the average and 25,000 fewer than the highest-ever.
• DMAR is the source of the stats listed above

Now, Northern Colorado:
• Larimer County has 802 active listings today
• Based on 10 years of data, this is the lowest it has ever been
• The high in Larimer County occurred in 2010 with 2608 listings so today’s inventory is one-third of what it was 10 years ago.
• Inventory today in Weld County is 727 which isn’t the lowest-ever.
• The lowest during the last 10 years was 2017.
• The highest was 2010 with 1791 properties so today there are roughly 1,000 fewer properties to choose from.


Posted on November 13, 2020 at 2:23 pm
Paul Hunter | Posted in About the area, Buyer Tips, Friday Fun Facts, Homes for Sale, Real Estate | Tagged , , , , , , ,

Updated Townhome!

How about this for an awesome opportunity! 2130 Stetson Creek Drive Unit C, has a remodeled kitchen with modern touches, vaulted ceilings and open flow to the floorplan with wood floors on the main level. Basement has been finished for extra living space, and an attached two-car garage makes this southeast Fort Collins townhome perfect for you. ALL NEW HVAC systems, well maintained, and ready for you to move in! Call for your private showing at (970) 673-7285  for more information or click the link below for more details.

http://windermerenoco.com/listing/119726764


Posted on November 11, 2020 at 10:35 pm
Paul Hunter | Posted in Blog, Fort Collins Real Estate, Virtual Tours | Tagged , , , , , , , ,

VA Home Loans: Helping Heroes Find a Home

VA Home Loans: Helping Heroes Find a Home

VA Home Loans: Important Housing Benefits for Veterans | MyKCM

Today, on Veterans Day, we honor those who have served our country and thank them for their continued dedication to our nation. In the United States, there are many valuable benefits available to Veterans, including VA home loans. For over 75 years, VA home loans have provided millions of Veterans and their families the opportunity to purchase their own homes.

As we consider the full impact of VA home loans, it’s important to both understand these great options for Veterans and to share them with those we know who may be able to benefit most. For a variety of different reasons, many Veterans don’t use their VA home loan options, so being knowledgeable about what’s available and how they work may be a game-changer for many.

Facts about 2019 VA Home Loans (most current data):

  • 624,546 home loans were guaranteed by the Veterans Administration.
  • 306,879 VA home loans were made without a down payment.
  • 2,055 grants totaling $118 million were provided to help seriously disabled Veterans purchase, modify, or construct a home to meet their needs.

VA Home Loans Often Offer:

  • No down payment options as long as the sales price isn’t higher than the home’s appraised value.
  • Better terms and interest rates than loans from other lenders.
  • Fewer closing costs, which may be paid by the seller.

Bottom Line

The best thing you can do today to celebrate Veterans Day is to share this information with those who can potentially benefit from these loan options. Let’s connect today to discuss your questions about VA home loan benefits. Thank you for your service.


Posted on November 11, 2020 at 4:34 pm
Paul Hunter | Posted in Buyer Tips | Tagged , , ,

The Votes are In

Real estate buyers made their voices heard last month and made a clear choice for… higher-end properties!

One of the interesting dynamics of our current market is the significantly- increased activity in higher price ranges.

The combination of high equity and low interest rates is clearly causing people to move up. They are able to purchase the home that has the features they have always wanted whether it be size, finishes, or location.

The considerable equity growth that has occurred for homeowners over the last 7 years is allowing them to have sizable down payments on their ‘move up’ property plus today’s rates keep their monthly payments lower than expected.

Here are the numbers we researched which demonstrate this trend.

Compared to October of 2019, sales of properties priced over $750,000 last month were up:

• 176% in Larimer County
• 375% in Weld County
• 96% in Metro Denver

Properties in the $550,000 to $750,000 range also saw a large jump:
• 57% in Larimer County
• 63% in Weld County
• 83% in Metro Denver

This is a unique time in history for people to move up and own a home they have always dreamed about.


Posted on November 6, 2020 at 3:07 pm
Paul Hunter | Posted in About the area, Buyer Tips, Friday Fun Facts, Real Estate, Seller Tips | Tagged , , , ,