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.
Here’s something to be grateful for…
Colorado’s healthy real estate market!
The research continues to show that there is no better place to own real estate over the long term than right here in our own backyard.
The Federal Housing Finance Authority tracks real estate prices in close to 300 markets across the Country. We frequently use their Home Price Index as a trusted source to study the market.
According to their data, Colorado ranks as the #1 state for home price appreciation over the long term, better than any other place.
We are thankful for that!
We are also thankful to you, our clients. We had the great fortune to help hundreds of people this year all up and down the Front Range with their real estate. We wish you the Happiest of Thanksgivings!
There is an abundance of great news when it comes to employment in Colorado.
The unemployment rate is incredibly low at 2.7% which is almost a full percentage point lower than the U.S. average.
According to the Bureau of Labor Statistics, Metro Denver added 28,300 jobs over the last year which ranks 15th out of all metropolitan areas nation-wide, many of which have much larger populations than Denver.
While this is positive news, what is even more remarkable is what is happening in the other, smaller cities along the Front Range.
Anytime job growth exceeds 2.0% per year, it is a sign of a very healthy economy. Here is what the other Cities have seen in terms of job growth over the last 12 months.
- Fort Collins 2.6%
- Greeley 2.5%
- Colorado Springs 1.9%
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
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.
For home sellers who would like to move to a new home this year, there is a window of time that is closing as we head into the Fall months.
Most people know that the Spring and Summer are the most active months for real estate and that activity trails off into the Fall and Winter.
Here are the specific numbers behind this…
The number of homes sold along the Front Range in November tends to be between 15% and 29% lower than September.
That means the best window of time for current sellers to obtain a contract from a buyer and close by the end of the year will occur over the next 45 days.
For sellers who have homes on the market today, it is time to ensure that:
- The home is priced right versus the competition
- All of the marketing elements are in place
- It is easy for a buyer to make an offer on the home