Spring in Summer

This year the Spring market is occurring in the Summer.

Typically the busiest months for real estate along the Front Range are April, May and June.

This year, because showing activity was restricted in the Spring months, we are seeing robust activity this Summer.

Here’s an indicator.  Sales through July 2020 versus July 2019 are up:

12.6% in Metro Denver

13.7% in Northern Colorado

To see double-digit increases in sales despite was is occurring in the National economy, is nothing short of remarkable.

Posted on July 31, 2020 at 8:30 am
Paul Hunter | Category: About the area, Buyer Tips, Friday Fun Facts, Homes for Sale, Real Estate, Seller Tips | Tagged , , , , , ,

Buyer Contemplation

New research from the National Association of Home Builders:

The number of Americans contemplating purchasing a home in the second quarter of 2020 is nearly the same as 2019’s second quarter, according to NAHB’s Housing Trends Report.

At this time last year, 12% of Americans considered buying a home. Today the number stands at 11%.

The same goes for first-time prospective buyers, where 58% considered buying a home in the second quarter of 2019 and 59% are considering it in 2020’s second quarter.

In the second quarter of 2020, Millennials are the generation most likely to want to buy a home (19%), even slightly higher than a year earlier (17%).

Boomers, on the other hand, are the least likely, with the share planning a home purchase falling from 7% to 5%.

Across regions, the share of respondents who are prospective home buyers is unchanged in the Northeast (10%) and South (12%), essentially flat in the West (13%), and just slightly lower in the Midwest (down from 11% to 9%).

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.

Posted on July 24, 2020 at 10:10 am
Paul Hunter | Category: Buyer Tips, Friday Fun Facts, Homes for Sale, Real Estate, Seller Tips | Tagged , , , , ,

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.

Posted on July 17, 2020 at 9:30 am
Paul Hunter | Category: About the area, Blog, Friday Fun Facts, Investment, Real Estate | Tagged , , , ,

Not Taxing

Pop quiz…

Which state has the lowest effective property tax rates?

It’s not Colorado. But, if you guessed Colorado you’re close!

Hawaii has the lowest effective rate at .27%.

Colorado is ranked 3rd at .53%.

New Jersey is the highest at 2.47%

So, Colorado’s property tax rate is one fifth of New Jersey.

It’s also one third of Michigan and Ohio, and one half of Oregon and Washington.

The out of state clients we work with are usually pleasantly surprised that our local property tax rates are so much lower compared to where they are moving from.

It’s another benefit of owning real estate here.

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.

Posted on July 3, 2020 at 2:39 pm
Paul Hunter | Category: About the area, Buyer Tips | Tagged , , , , , ,

Rate Meaning

Mortgage interest rates have hit another record low this week.

Mortgage applications for purchases just hit an 11-year high.

Rates are at a level that many people could never have imagined.

Here’s something that is surprising to many people…

Rates are 1.5% lower than they were just two years ago.

Here’s what that means for buyers…

Pretend someone is looking at a $500,000 home and they will have a 20% down payment.

The difference in monthly payment is $320 between two years ago and today.

Obviously that is a significant amount of money.

Imagine what a person could do with $320 per month.

The fact that rates are at record lows is one of many reasons that the market is so strong right now and prices continue to appreciate at healthy levels.

Posted on June 19, 2020 at 12:24 pm
Paul Hunter | Category: About the area, Buyer Tips, Friday Fun Facts, Homes for Sale, Real Estate | Tagged , , , , , ,

Tight Inventory

The numbers that we find to be most interesting right now are all related to inventory.

Long story short, inventory is tight.

It was already tight pre-coronavirus and now it’s even tighter.

Here are the numbers.

Active properties for sale versus one year ago are down:
11% in Larimer County
20% in Weld County
26% in Metro Denver

This low inventory is one of several reasons that prices are generally still up across the Front Range.
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.

Posted on June 12, 2020 at 12:55 pm
Paul Hunter | Category: Buyer Tips, Friday Fun Facts, Homes for Sale, Real Estate, Seller Tips | Tagged , , , , , ,

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.

Posted on June 5, 2020 at 2:34 pm
Paul Hunter | Category: Buyer Tips, Friday Fun Facts, Homes for Sale, Investment, Seller Tips | Tagged , , , , ,

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.

Posted on May 29, 2020 at 1:16 pm
Paul Hunter | Category: Buyer Tips, Friday Fun Facts, Homes for Sale, Real Estate, Seller Tips | Tagged , , , , ,

Faster

 

Here’s something true about today’s market. Properties are selling fast.

Compared to one year ago, the number of days it takes for a property to sell is significantly lower.

The industry term is “Days on Market” or DOM.

DOM is way down.

Here is the comparison of May 2020 versus May 2019:

• Metro Denver down 22%
• Larimer County down 19%
• Weld County down 16%

Initially, this may seem counter-intuitive. How could homes be selling faster in today’s environment?

Here’s the deal. The buyers and sellers who are active in today’s market are serious.

There really aren’t ‘tire-kicker’ buyers out looking at properties just for the fun of it.

There really aren’t sellers testing the market to ‘see what they can get.’

For the most part, buyers and sellers are on a specific mission and this mindset is showing up in the numbers.

For sellers especially, this is no time to test the market and be overly aggressive on price.

Properties that are priced right and in good condition are selling and often selling fast.

 

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.

Posted on May 22, 2020 at 12:50 pm
Paul Hunter | Category: Buyer Tips, Friday Fun Facts, Homes for Sale, Real Estate, Seller Tips | Tagged , , , , , , ,

What the Numbers Say

April represents the first time we can look at the impact of COVID-19 on a full month of real estate activity.

To no one’s surprise, activity in April in terms of closings and new contracts did slow significantly.

Much of this slowing was caused by in person showings not being allowed for most of the month. (showings are now allowed again by following Safe Showings protocols)

Here’s what the numbers say…

Closed transactions were down compared to April 2019
• 26% in Northern Colorado (Larimer & Weld)
• 27% in Metro Denver

New written purchase agreements were down compared to April 2020
• 48% in Northern Colorado
• 44% in Metro Denver

So, while activity did slow, there was nothing resembling a “screeching halt” that took place.
While the way property is shown has certainly changed, the market is still very active and we expect activity to increase even more with showings now being allowed again.

Posted on May 8, 2020 at 12:31 pm
Paul Hunter | Category: Buyer Tips, Friday Fun Facts, Homes for Sale, Real Estate, Seller Tips | Tagged , , , , ,