Metrostudy, who in our opinion is the leader in new home research, recently did a study on the average price of a new home in each of the Front Range Counties.
Here are some interesting takeaways…
If you want to find the least expensive new home on the Front Range, the places to look are Weld County and El Paso County.
- Weld County Average New Home Price = $411,269
- El Paso County Average New Home Price = $427,361
The most expensive place for a new home is in Boulder County (no surprise) at $698,208.
Jefferson County has the largest difference between the average price of a new home and the average price of a resale home: $664,600 vs. $510,003.
Here’s the County by County breakdown of the average price of a new single-family home:
Boulder = $698,208
Jefferson = $664,600
Douglas = $624,315
Broomfield = $612,779
Denver = $581,480
Arapahoe = $545,943
Larimer = $507,105
Adams = $480,464
El Paso = $427,361
Weld = $411,269
If you want to see even more insights about the Colorado market so that you can make really good decisions about your real estate, you are welcome to watch this complimentary webinar, just click HERE.
This is a tale of two Counties.
When it comes to new home activity, there is a big difference between Larimer and Weld Counties.
Larimer County new home starts are down 10% and new home closings are down 15% compared to last year.
Weld County new home starts are up 18% and new home closings are up 8% compared to last year.
This is all according to the new home research experts and Metrostudy.
So why the difference? It comes down to price and availability.
There is more land available for new home development in Weld County.
Plus, the land tends to be less-expensive than Larimer which means that builders can deliver a lower-priced product and reach a larger pool of buyers.
The average price of a new home in Larimer County is $507,105 while the average new home price in Weld is $411,269.
Home Builder’s confidence in Baby Boomer buyers is at an all time high.
The National Association of Home Builders (NAHB) surveys their members each quarter to discover what they expect of future sales.
The builders base a large part of their answer on how many people are visiting their sales centers and model homes versus the same time last year.
The results in their most recent survey show that builders have never been more confident about buyers who are 55 and older.
The confidence index for this age group is actually double of what it was in 2012. The NAHB sites low interest rates and strong job growth as the reasons for the high confidence.
Here is a fact…
If you have ever thought about owning a new home, the last two months of the year are usually the best time to make that happen.
Many builders have year-end goals and sales quotas to hit. If they have a “standing inventory” of homes that are completed but not sold, they are typically motivated to sell these homes by the end of the year.
This dynamic can be especially true for publicly-traded builders who are even more motivated to hit year-end sales numbers.
Up and down the Front Range there are beautiful new homes in fantastic neighborhoods. The builders of these homes may be happy to make concessions and provide incentives as long as you close by year-end.
We just recently helped a buyer with a very compelling incentive package from a builder which included a lower price, additional landscaping and window coverings.
If you would like more details about these kinds of opportunities, reach out and we can help.
What is the most active price range in Northern Colorado? Take a guess…
- $300,000 to $400,000
- $400,000 to $500,000
- $500,000 to $750,000
- $750,000 and above
By far, the most active price range is $300,000 to $400,000 with 60% more closed transactions than the $400,000 to $500,000 range and 400% more than homes priced $750,000 and above.
However, this lower price range does not have the most inventory. The price range with the greatest selection of homes is $500,000 to $750,000.
The real estate research firm Core Logic just produced their latest Homeowner Equity Insights report.
Some interesting tidbits:
- 63% of all properties nationally have a mortgage
- Homeowners with mortgages collective realized a $428 billion rise in equity over last year, an increase of 4.8%
- Only 3.8% of all mortgaged properties have negative equity (where the loan is greater than the value of the home)
- 10 years ago 26% of all mortgaged properties had negative equity
It’s no surprise that for just about every homeowner, their real estate represents the largest portion of their net worth.
Check out these numbers from the Federal Reserve’s Survey of Consumer Finances:
Median Net Worth in the U.S. = $97,300
Median Net Worth of a Renter = $5,200
Median Net Worth of a Homeowner = $231,400
Seventy-five major metro markets have seen home prices bounce back to above their pre-recession peaks.
Metro Denver has seen the biggest bounce with home values 91% above its previous high in 2007 , according to the Home Price Recovery Index from HSH.com.
“Aside from routinely strong home price appreciation, it’s important to know that the Denver metro’s housing ‘bust’ in 2008 was relatively short and shallow,” said Keith Gumbinger, the report’s author.
The peak-to-trough for home values was only three years long and the total decline in value was just under 8 percent in Metro Denver, he said.
By contrast, a half-dozen large metros have seen home prices more than double from their lows and still not reach the old highs. On that list are Las Vegas, Sacramento, Calif., and Cape Coral, Fla.
We have our pulse on the high-end luxury market.
The activity in price ranges over $1,000,000 is an effective indicator of the health of the overall market.
If buyers for luxury properties are active, it tells us that “smart money” is confident about real estate in Metro Denver.
So far this year, 1671 luxury properties have sold. This is 75 more than had sold at this same time last year and 440 more than 2017.
It seems “smart money” is confident.
Rates hit near-historic lows this week and are now at 3.49% for a 30-year mortgage.
There have only been two other times in history when rates have been this low- April 2013 and October 2016.
It’s interesting to see what happened soon after bottoming out these last two times.
In April of 2013 rates hit 3.41%. By August 2013 they had jumped to 4.40%.
Rates bottomed again in October 2016 at 3.42%. Just two months later in December 2016 they were 4.32%.
Each time the increase was nearly 1% within just a few months.
So, if history proves itself as a guide, we can’t expect these rates to last for long.