14 Times
For the 14th time this year, 30-year mortgage rates set a record and hit an all-time low.
Based on data just released by Freddie Mac, rates are now at 2.71%. Their weekly survey of the 30-year mortgage rate dates back to 1971.
Just one year ago rates were at 3.68%.
So, what does this mean for buyers?
Based on a $400,000 loan, current rates result in a monthly payment that would be $212 less than one year ago.
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.
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.
Brand New Market Report
The latest quarterly report from our Chief Economist Matthew Gardner is now available. Here is a quote from the report with his take on the Front Range economy:
What a difference a quarter makes! Following the massive job losses Colorado experienced starting in February—the state shed over 342,000 positions between February and April—the turnaround has been palpable.
Through August, Colorado has recovered 178,000 of the jobs lost due to COVID-19, adding 107,500 jobs over the past three months, an increase of 4.2%.
All regions saw a significant number of jobs returning. The most prominent was in the Denver metropolitan service area (MSA), where 78,800 jobs returned in the quarter.
Although employment in all markets is recovering, there is still a way to go to get back to pre-pandemic employment levels.
The recovery in jobs has naturally led the unemployment rate to drop: the state is now at a respectable 6.7%, down from a peak of 12.2%.
Regionally, all areas continue to see their unemployment rates contract. I would note that the Fort Collins and Boulder MSA unemployment rates are now below 6%.
Cases of COVID-19 continue to rise, which is troubling, but rising rates have only slowed—not stopped—the economic recovery. Moreover, it has had no noticeable impact on the state’s housing market.
To receive a complimentary copy of the latest Gardner Report, simply reach out to us and we will send it to you right away.
Multi-Unit Property!!!
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.
http://windermerenoco.com/listing/114194371
Dream Investment Property in Fort Collins!
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.
Housing Math
It’s interesting to look at what population growth means for housing.
On average, along the Front Range, 2.5 people live in each housing unit.
What that means is 4 housing units are needed for every 10 people who live here.
So, for every 1000 new people moving to our area, 400 new housing units are required.
The population of Metro Denver is just under 3,000,000 and the population of Northern Colorado is just over 650,000.
Assuming the Front Range grows in population at 2% per year, that means 60,000 new people in Metro Denver and 13,000 new people in Northern Colorado each year.
To house those people, 24,000 new housing units need to be built per year in Metro Denver and 5,200 in Northern Colorado.
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.
Prices Still Up
It seems that COVID-19 did not cause prices to decrease and certainly didn’t cause them to crash.
Average prices are up compared to last year:
2.8% in Larimer County
5.4% in Weld County
3.3% in Metro Denver
Low supply, sustained demand, and incredibly low interest rates are all fueling the price growth.
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.
On Sale
On Sale
Money is on sale (again).
30-year mortgage rates now sit at 3.3%.
This is less than half of the long-term, 40-year average.
This is also almost a full percentage point lower than they were one year ago (which was still very low).
Let’s put this in real numbers.
A $300,000 loan at today’s rates has a $1,313 monthly principal and interest payment.
One year ago, that same loan would be $1,432 per month.
That’s a 8.3% difference in monthly payment.
The fact that money is on sale is one of many reasons that the housing market remains very strong right now.
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.