With the change in construction defects laws in Colorado in 2017, we are seeing condos and townhomes coming back in force! This is great news for first time homebuyers that start with an attached home before they move on to bigger, better, and more expensive things. Here are some interesting stats that show what is going on with the townhome market…
- Townhome and duplex growth is up 36 PERCENT for the year
- This market segment represents 26 PERCENT of the total market
- This is the HIGHEST percentage the townhome and condo market has ever been
- Detached single family homes represent only 70 PERCENT of the new home starts, the lowest since 2009
This info and more is found in my monthly Windermere Report Newsletter. If you would like to sign up to receive this info from me just shoot me an email. Have a great week!
Yet again, Fort Collins and Northern Colorado are being recognized as being great places to invest in Real Estate. The map below has some very interesting information about the whole country, but zoom in on Northern Colorado and check out all of the good news, it’s good to be us!
As we hit the middle of the year, it is good to look not only back at where the market has been, but forward to where the market is going. There are several interesting factors at the moment that make this a slightly different market than it was 5 months ago, but the big things to keep an eye on for both Buyers and Sellers are:
- Interest Rates
- Housing Starts (new construction)
- Days on Market
Interest Rates remain low for the time being, and this is an opportunity for both Buyers and Sellers. Low interest rates make payments more affordable for Buyers, but also make it so that Buyers qualify for more home for their buck making it easier for Sellers to realize higher sales prices. As we start to see interest rates increase towards the end of this year and heading in to next year, this opportunity will slow down for EVERYONE in the market.
Housing Starts are actually down in Colorado right now (even thought it seems new construction is everywhere!), which means we most likely will continue to see a shortage of new homes, driving more Buyers to the resale market keeping that inventory tight. As construction defects legislation allows builders to build condos and townhomes though, hopefully we will see more of those start to come down the pipeline. We’ll keep an eye on that for you.
As you can see below (information from the Fort Collins Board of REALTORS), for the Fort Collins area Days on Market has decreased by 8.7% for single family homes, indicating Buyers are still out there wanting homes!
You can also see that we are seeing increasing inventory though, but 13.3% which means there is a little bit more for Buyers to look at, good news to those who have been making offers and losing out.
So opportunities exist for both Buyers and Sellers in this market, and there are pockets that have more strength for one party or another. If you are interested in learning more about the market you may be interested in buying in or have a home to sell and want to see what that looks like for your particular area, please give me a call or shoot me an email. Thank You!
Good news for Loveland and Northern Colorado as a whole. Stonebridge Cos is planning on developing another hotel at Centerra in Loveland. It will be a 101 room Courtyard by Marriott right off Sky Pond Drive at the 34 and I-25 interchange. As we draw more and more large conferences and become a tourist destination, this is delivering on a big need in our area. Another interesting stat about the Centerra area is that it is home to companies that employ over 7,000 people, so as those companies grow and draw in more business, hotels will be in even higher demand. All good news for Northern Colorado! If you have any questions about this development or anything else going on in Northern Colorado, feel free to drop me a line!
Here is a short video we put together to help sellers understand where pricing comes from…
Happy Monday morning everyone! In this competitive market sometimes buyers are writing a few offers (or a lot!) before getting one accepted. We sat down and came up with a list of some of the most effective strategies that we use to get your offer accepted by a seller, and had our president record this video. If you have any questions about this info or want to talk more about how we are finding buyers great homes even in a market like this, please give me a call!
I am very lucky to have been voted as the Northeast District Chairman for the Colorado Association of REALTORS a year ago, and I was able to fulfill my first duties of that position last week in Vail. We spent 3 days in the beautiful town of Vail, discussing the issues that are affecting our clients throughout the Northeast District (Logan County, Fort Collins, Boulder, Longmont, Greeley, Estes Park, Loveland/Berthoud, and Northern Colorado Commercial).
There were some interesting take aways, one of which is that in the Denver area, 68% of all housing on the market is above $400,000. Also, they are going to make the criteria for being a managing broker of an office (my position here at Windermere Fort Collins) more stringent. Which I think is a GREAT idea for brokers and you all as clients.
The biggest win that we had so far this year is in regards to construction defects, Colorado House Bill 1279 has passed a preliminary vote which is great news for people who are looking to purchase in the lower end of the market (condos and townhomes). Builders may finally have the ability to build these types of properties which are SO NEEDED with prices increasing so significantly in the last couple of years. So that was great news.
It is a pleasure to serve our State Association, and hopefully this brings back some value to my clients here in Northern Colorado. Have a great week and if you need anything please feel free to give me a call or shoot me an email!
Good morning everyone! The last couple of weeks we have talked about why it continues to be a Sellers market in Northern Colorado (see info below). If you are a Buyer though, remember there ARE opportunities out there!
But the question remains, “I’ve heard how great the market is, but how much money do I REALLY have in my home?” You’re in luck! I would love to show you exactly how much equity you have in your home with a complimentary real estate review. We will talk about the comparable sales in your neighborhood, why and how they affect your value, and how the market changes in general affect your specific home.
Call me, email me, or text me so we can setup a time to review the value of your home. You’ve got nothing to lose but potentially MANY THOUSANDS to gain!
I’m sure you are all very aware of the Northern Colorado Real Estate market by now, especially if you read my blog! But we are seeing an interesting phenomenon this spring so far. The days on market have been dropping yet again (down 17.9% for single family and 30.4% for condo/townhomes), EVEN with new listings UP almost 5 percent (4.7% for single family). What this means is demand is still FAR outpacing supply, even with the increased supply that has hit the market in comparison to last year. The absorption rate that I calculate each quarter for Fort Collins single family homes is still low, at 1.35 months of inventory.
The good news for sellers is that with the spring market in full “swing”, there are still buyers for those properties. And believe it or not, there is good news for buyers as well! Interest rates are still low, and the cash flow numbers on investment properties are at a 10 year high due to high rents and those low interest rates. So if you are looking to buy your first investment property OR your first home, the opportunity is there to make a great purchase.
Call me if you have any questions about this information, or if you would like regular market updates you can sign up for my Neighborhood News newsletter. Thank you and have a great Monday!