Here’s something true about today’s market. Properties are selling fast.
Compared to one year ago, the number of days it takes for a property to sell is significantly lower.
The industry term is “Days on Market” or DOM.
DOM is way down.
Here is the comparison of May 2020 versus May 2019:
• Metro Denver down 22%
• Larimer County down 19%
• Weld County down 16%
Initially, this may seem counter-intuitive. How could homes be selling faster in today’s environment?
Here’s the deal. The buyers and sellers who are active in today’s market are serious.
There really aren’t ‘tire-kicker’ buyers out looking at properties just for the fun of it.
There really aren’t sellers testing the market to ‘see what they can get.’
For the most part, buyers and sellers are on a specific mission and this mindset is showing up in the numbers.
For sellers especially, this is no time to test the market and be overly aggressive on price.
Properties that are priced right and in good condition are selling and often selling fast.
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.
We are watching close to see where the real estate market is headed. Anecdotally we can tell you that the vast majority of transactions that are under contract are still closing. We have seen very few transactions cancel because of employment issues or the wild swings of the stock market.
An interesting leading indicator was announced this week that sheds some light as to where the market is headed. Each week the Mortgage Bankers Association releases their index which tracks new mortgage applications.
They track both purchase applications and refinance applications. To no one’s surprise, the index was down this week but not as much as you may have guessed.
New purchase applications were down 11% compared to the same week this last year. Refinance activity fell more sharply, down 34%.
This is a statistic we will watch closely as time goes on.
Each week our Chief Economist produces a video with the latest on the national economy and the housing market. Reach out to us if you would like to see that video.
The interest in the Fort Collins apartment market is heating up even more! With the latest sale of The Mill House in Old Town Fort Collins to an investor out of New Jersey for $13.6 million, that equates out to $251,852 per unit according to the Colorado Real Estate Journal. This used to be a much less attractive side of Old Town, but we are seeing more and more development and re-development in the area. The increasing rents, especially in the realm of urban living has made it even more attractive for these investors.
The good news, is single family and smaller multiunit investments (like duplexes, triplexes, and fourplexes) are all seeing rental increases as well. The cash flow and yield numbers are working great on those as well even with the increase in pricing we have seen.
If you have any questions about this information, please feel free to give me a call to talk investment properties!
Happy Monday! I wanted to bring you some good news if you have not already heard, that according to the Colorado Real Estate Journal, an large retail/mixed use development will be coming to the I-25 and Crossroads Boulevard areaIt will be called the Brands at the Ranch and will be on the east side of I-25. It will be a three phase development, and will cost $572 million over 5 years. They plan on having a 12 screen I-MAX theater, restaurants, and 600 luxury apartment units. While this will be especially great for Loveland, the rest of Northern Colorado will benefit from the increased activity. They also plan to add another hotel to that area. Exciting times in Northern Colorado!
Check out the link below to see more info from the developer, and as always if you have any questions or need anything, feel free to click here and give me a call or shoot me an email!
I’m happy to announce that I am taking my involvement in the REALTOR organization to the state level! I was elected as the Northeast District Chairman for the Colorado Association of REALTORS, and my term has just begun. In this volunteer position, I will be the avenue of communication between the local boards in my District, and the State Association of REALTORS.
I really look forward to advancing the professionalism of REALTORS and the REALTOR brand, and I am certain that this position will give me even more insight for me to bring back to you all, the most important part of my business, my real estate clients!
If you or anyone you know are in need of buying or selling a home, please feel free to give me a call today and I’ll take you to lunch to talk about it!
Are you interested in taking advantage of the 16.1% appreciation year over year in Fort Collins or the 8.6% number in Loveland? Give me a call and I would love to give you an idea of what your market value is today, and what your equity is in your home. That way if you do decide to sell or refinance this spring, you’ll be in a position to know what you can expect! I can share the Windermere Certified Listing program with you that has successfully helped my sellers beat the market when it comes to days on market sold price. Have a great week!
I got back last night from this trip representing the Fort Collins Board of REALTORS as the 2015 Chair. It was fantastic to get to see the Association Staff and REALTORS that I met in Washington D.C. in May again, and build those relationships on behalf of my board and my clients. If you need a referral for anywhere in the country, please let me know as I have become friends with top producing agents in almost every state.
How does my trip to Chicago help you? In a few of different ways. First, you can be assured if you are buying outside of the Northern Colorado area, I will be able to connect you with a top agent in that community, maximizing your chances of an awesome experience buying a home! Second, I brought home new ways to market your listing, to get homes sold more quickly. You can be assured that the marketing of your home will be extensive and effective, which is important in this ever changing real estate market in Fort Collins. Finally, I learned ways to increase my productivity on the “behind the scenes” part of my business, which will make me more available to show you homes as a buyer and meet with you to get your home listed as a seller.
Call me and I would to go over some of the ways I learned that I can help you or someone you know who may be getting in to the real estate market. Have a great week!
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