Friday Fun Facts!

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The Antidote

The stock market is in turmoil this week (I’m guessing that you’ve noticed). Investors feel like they’re strapped into a roller coaster at Coney Island- up and down and all around they go, thrashed around by the whims of the market.

These are words currently on financial news websites: Whiplash, Volatile, Wild Ride, Plunge!

But, here’s the deal. While the Dow Jones plummeted 4.2% yesterday (in one day!?), real estate in Northern Colorado did not.

Real Estate is the antidote for stock market heartburn.

Consider the numbers:

  • Over the last 40 years, Northern Colorado real estate prices have averaged a 5.36% increase per year.
  • The last 10 years have seen a 4.99% increase per year.
  • It took the worst economy of our lifetime in 2008 to cause prices to go down only 2.2%. (massive banks were going out of business on Wall Street and real estate prices here went down 2.2%!)
  • Our NoCo population is growing by about 13,000 per year and those people need a place to live.

If you’re looking for a predictable, tangible, calming, help-you-sleep-at-night, easy-to-understand place to put your money, real estate just might be for you!

As it turns out, I can help you with that 🙂

Now, here’s how the current events on Wall Street have a very relevant impact on real estate- interest rates.

If you attended our Market Forecast you saw how the 30-year mortgage rate has a direct correlation to the 10-year treasury note.

Rates on the 10-year note are up over a half of a percent in just a few weeks. We have seen mortgage rates go up recently and they will continue to go up.

We believe this may slow the rate of home price appreciation (this doesn’t mean ‘go down’, it means the pace of appreciation will slow).

As mentioned above, the long-term appreciation has been near 5% per year. Lately it’s been near 8%. Rising rates could cause the prices to go back to their more normal appreciation rate.

So, even if your stock market portfolio is taking a wild ride, sleep well knowing your real estate continues to perform.

Just released – a video recap of our annual Market Forecast. It will help clarify everything happening in Northern Colorado real estate.

Watch Here.

Posted on February 9, 2018 at 2:42 pm
Paul Hunter | Category: About the area, Buyer Tips, Fort Collins Real Estate, Investment, Loveland Real Estate, Real Estate, Seller Tips, Wellington Real Estate, Windsor Real Estate | Tagged , , , , , ,

Friday Fun Facts – Mortgage Rates

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So What?

The Federal Reserve raised their benchmark interest rate 0.25% this week.

So what does this mean for real estate?

Some perspective is in order…

First, mortgage rates are not directly tied to the Fed Funds rate. They are, however, closely tied to the 10-year Treasury.

While the Fed was raising their rates this week, mortgage rates actually dipped lower (although slightly).

Mortgage rates today on a 30-year loan are essentially 4.25%.

The long term average for mortage rates, going all the way back to 1970 is 7.5%

For every 1% rise in rates, there is a corresponding 10% impact to the monthly payment.

Mortgage rates have increased about 0.75% since the election.

Most economists expect rates to increase another 0.5% by year-end.

I am watching mortgage rates closely and will continue to keep my clients updated as to where the experts think they are heading.

Posted on March 17, 2017 at 2:59 pm
Paul Hunter | Category: About the area, Buyer Tips, Investment, Real Estate, Seller Tips | Tagged , , , , , , , ,

Fort Collins Rental Market Bringing In Big Investors

With the rental growth, population growth, real estate sales growth, and the growth in the student population at Colorado State University, Fort Collins has been an attractive place for local and national investors alike. I believe strongly in the long term health in the northern Colorado market (so I’ve bought rentals myself!), and I have worked with many investors that feel the same way.

But it seems that Fort Collins has started drawing in some big institutional investors as well, with a sale that would be more at home in the Denver market. An Ohio based company recently purchased the Aspen Heights student housing community in north Fort Collins for $65.5 million dollars! This community rents by the bedroom and focuses on a student tenant population. It features 712 bedrooms, a pool, yoga studio and game room.

As we see larger projects go in the city and around Fort Collins, big transitions like this will probably be more of the norm.

If you do have interest in what is going on in the real estate market, or would like to chat about your own home, I would love to sit down and talk! Contact me here and we can set something up, I’m always happy to help!

Posted on February 21, 2017 at 3:56 am
Paul Hunter | Category: About the area, Real Estate | Tagged , , , , , ,