We have been saying it for years, and so have the experts! Real Estate in Fort Collins is a stable investment that does not suffer from a bubble environment (think Vegas and Miami). The combination of a stable employment base (high tech, Colorado State University, service industry and the HUGE beer industry), increasing population growth, and limited new home building opportunities all lead us to a great place to invest in real estate. Whether it is for your own home or rental properties, we have seen a steady increase in rents and in values over the last 10 years. Check out the link to the Realtor.com article below that talks about how Fort Collins is the #1 stable market in the country!
If you have any questions about real estate or investing in our Northern Colorado market, please give me a call or shoot me an email. I look forward to hearing from you!
As I start to talk with my brokers here at Windermere about goal setting, business planning, and calendaring for 2017, the conversation revolves around INTENTIONS. Goals are great (and we need to have them!), but it is very powerful to talk about what your vision is and what your intentions are for the next year.
I bring this up, because what are you going to DO (not try to do) in 2017? Do you have an intention of purchasing an investment property as a step towards being financially free? Or are you going to take advange of your newfound equity in your home and get something to fit your growing family? Or maybe you are FINALLY tired of paying the huge rental premiums to rent a home in Fort Collins.
If you set those intentions for the upcoming year and any of those involve a change in real estate and you have questions, remember I'm here even if it is just to bounch ideas off of. I'll tell you my intentions for this upcoming year (the more people that know the more accountable you are!) are to purchase two more investment properties.
I'd love to know what your intentions are for next year, and remember if you start working on them on January 1st you're late to the game!
￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼Well we are officially into the 2014 business year! Looking forward to the next few months, it is important to look back at the trends of 2013. One of the strong indicators of the low inventory is the market absorption rate. This is the calculation of available homes divided by the sold homes in one month, or how long it would take to sell the existing inventory. It is basically a snapshot, or balance sheet of our real estate market.
A balanced market should be an absorption rate of 6 months. We haven’t seen those kinds of numbers since the beginning of 2011. Through 2012 we saw absorption rates between 3.5 and 4.5 months showing the beginning of the tighter market, and where we saw it start to shift to favor sellers. When we got to 2013, those numbers fell even more to hover around 2.5 months, which ignited the multiple offer situations on most properties and competition on what little inventory there was.
For the beginning of 2014 we are still looking at an absorption rate of about 2.6 months, which is a product of the end of year weighted towards sellers, as well as the holidays and cold months. I will updated you again in the second quarter of this year, but I think that with the slow but inevitable increase in interest rates, and mores sellers wanting to try and take advantage of the sellers market, we will see more inventory come online for buyers to choose from.
Either way, there are strengths to being a buyer or a seller right now, so let me know if you have any questions or would like to discuss buying or selling a home!
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