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Friday Fun Facts – Are We In A Bubble?
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Days On Market Still Dropping – Despite More Inventory
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!
The Health Of The NoCo Market
I think by this point if you have been reading my blog, you are pretty well aware that we currently have a very fast moving and healthy real estate market here in Northern Colorado. While it’s all good and well to know this in your gut, let’s take a look at some stats that really prove that point.
If you look back over the last 30 years, the Fort Collins/Loveland appreciation levels have been negative only 6 of those years, 3 of which were during the worst recession of our lifetimes (unless you lived through the Great Depression!). Here are some other interesting statistics that show the health of our market:
- Fort Collins/Loveland area is # 11 on the top 259 markets for home price appreciation in the country
- Greeley is #12, Denver is #14, and Boulder is #15 of the top 259 markets
- Colorado is # 2 (only behind Oregon) for 1 year home price appreciation IN THE COUNTRY! Florida, Washington, and Nevada round out that top 5 list
If you would like to know how all of this good news affects your home’s value or your ability to buy a new home, I would love to talk to you, so give me a call or shoot me an email!
Friday Fun Facts! Does EVERYTHING Really Sell In This Market?
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Friday Fun Facts
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New Northern Colorado Development Project Coming
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!
What’s Happening In The 2017 Real Estate Market?
I want to thank everyone who came out to the Windermere Forecast last week, it was great to see so many people there interested in the real estate market and where we are headed in the future. I wanted to make sure that even if you did not make it, you are familiar with some of the big takeaways from the presentation.
The big story of course is the ongoing low inventory in Northern Colorado. We are at a quarter of where we were back just 6 years ago in 2011, just check out the graph below. This will continue to drive a fast moving market through 2017, although potentially not at the same pace we saw in 2016. That cooling off will be a product of increasing interest rates as the year progresses. While it is certainly great to be a seller in this market, there are still great ways for buyers to get more home than they could have afforded in the past because of where interest rates are currently.
What that low inventory has driven is an above average appreciation rate for the Fort Collins/Loveland areas (as well as the rest of Northern Colorado). As you can see below, we are above the long term 5% appreciation average, so again that will probably slow down just a little bit in to 2017, although we will still be appreciating!
One of the other big questions I get is from my investors, and that is “why should I buy an investment property with these increased prices?”. The answer lies in two things. The first is low interest rates, and the second is with massively increased rents. Even when a 3 bedroom 2 bath home near the CSU campus was $100,000 less than it was today, we are STILL cash flowing about 60% more than we were back when prices were lower. As you can see below, we have seen an increase in rents, along with a decrease in vacancy (especially if you look at a longer 10 year term).
If you have any questions about this info, or want to talk more about buying, selling, or investing in real estate, I’d love to take you to coffee to discuss it!
Friday Fun Facts
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