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.
Remodeling Impact
Americans spend $400 billion per year remodeling their homes.
So, which remodeling investment gives the best return when it comes to resale value?
It should come as no surprise, especially leading up to Thanksgiving, that the best money to spend upgrading your home is in the kitchen.
It’s the place where most homeowners spend most of their waking hours.
According the research from the National Association of Realtors, it’s where remodelers will see the biggest return on investment.
Here is the ranking of various projects in terms of the value it adds to the home:
1. Complete kitchen remodel
2. Kitchen upgrade
3. HVAC replacement
4. Owner’s suite renovation
5. Bathroom renovation
6. Finishing a basement
7. Adding a bathroom
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.
The Votes are In
Real estate buyers made their voices heard last month and made a clear choice for… higher-end properties!
One of the interesting dynamics of our current market is the significantly- increased activity in higher price ranges.
The combination of high equity and low interest rates is clearly causing people to move up. They are able to purchase the home that has the features they have always wanted whether it be size, finishes, or location.
The considerable equity growth that has occurred for homeowners over the last 7 years is allowing them to have sizable down payments on their ‘move up’ property plus today’s rates keep their monthly payments lower than expected.
Here are the numbers we researched which demonstrate this trend.
Compared to October of 2019, sales of properties priced over $750,000 last month were up:
• 176% in Larimer County
• 375% in Weld County
• 96% in Metro Denver
Properties in the $550,000 to $750,000 range also saw a large jump:
• 57% in Larimer County
• 63% in Weld County
• 83% in Metro Denver
This is a unique time in history for people to move up and own a home they have always dreamed about.
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.
Million Plussing
The luxury market is very active right now. Buyers in the high-end are taking advantage of low interest rates and the equity they have built in their prior homes.
Closings of million-plus single family homes are up significantly along the Front Range.
When compared to this same time last year, sales of properties in this price range are up:
87% in Metro Denver
150% in Larimer County
67% in Weld County
Windermere Real Estate in Colorado recently hosted a private online event for our clients with our very own Chief Economist Matthew Gardner. We would be happy to send you the recording if you would like.
6 Million
The National real estate market just hit a massive milestone.
Based on the numbers through August, we are now on pace to sell 6 million homes. This is the highest pace we have seen in 14 years.
The 6 million threshold is a big deal in the real estate brokerage world.
Each month, as they have for a long time, the National Association of Realtors tracks the sales and then calculates the annualized rate of residential closings.
For many, many years this number has bounced around 5.5 million. The fact that it just jumped to 6 million speaks to many factors especially the effect of today’s interest rates.
Pendings are Popping
Temperatures may be cooling off but the Front Range real estate market is not.
Typically the market starts to slow down a bit in the Fall after a hot Spring and Summer.
Not this year.
The indicator we use to measure future closed sales is current pending sales.
Simply, we look at the number of properties under contract and scheduled to close versus the same time last year.
Current pending sales are way up along the Front Range when measured against 2019:
Metro Denver up 34.1%
Larimer County up 48.6%
Weld County up 50.2%
Based on these numbers, closed sales numbers over the next 60 days will be very strong.