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 , , , , , ,

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 , , , ,

Caught Up

We’ve been waiting for June to catch up. It finally happened (almost).

Back in April, real estate activity was significantly limited and the showing of property was restricted which caused the number of closed properties in May and early June to be much lower than last year.

Bottom line, fewer properties going under contract in April caused fewer closings 30 to 45 days later.

Closed properties in May were down compared to 2019 by 44% in Northern Colorado and 43% in Metro Denver.

Then activity jumped significantly in May. The number of properties going under contract was way up compared to last year.

We’ve been wondering when we would see this sales activity reflected in the number of closed properties.

Well, it finally happened (almost).

The number of closings so far in June compared to the same time period through June of 2019 is only down 1.8% in Northern Colorado and 1.6% in Metro Denver.

In both markets, there are only a handful of closings separating activity in June 2020 versus June 2019.

By the end of the month, when all the transactions are tallied up, we expect that June of this year will out pace June of last year in terms of number of transactions.

This is significant not only because of COVID-19, but also because of the reduced inventory compared to last year. Quite simply, there are fewer homes to buy.
All of this speaks to the health and resiliency of the Front Range market.

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 26, 2020 at 1:35 pm
Paul Hunter | Category: About the area, Homes for Sale, Real Estate | 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 , , , , ,

Pent Up Demand

We notice a very interesting dynamic in the market right now.

There was clearly a pent-up real estate demand created during the recent time when in-person showings were not allowed. The numbers back it up.

First, a little background. During a portion of “Shelter in Place,” all in-person viewing of properties ceased. Instead, buyers spent time online viewing virtual tours and 3-D photography.

Even though clients could view homes virtually, purchase activity did slow down.

Today, showings are allowed again as long as clear protocols are followed. We’ve implemented a Safe Showings program to keep our clients protected.

Now, to the numbers.

Through the first two weeks of May 2020, the number of closed properties is down compared to the same time period in 2019.

In most cases these closed properties are a result of purchase agreements that were written in April- a time when in-person showings were restricted.

So, a decrease in closings was expected.

However, the number of new written contracts so far this month is up considerably compared to the same time frame last year.

Specifically,

• Metro Denver closed properties down 47%
• Metro Denver new contracts up 6%

• Northern Colorado closed properties down 41%
• Northern Colorado new contracts up 19%

So, buyer activity is up compared to last year, even in our current environment.
This speaks to the resiliency of our market and the effect of low interest rates.

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 15, 2020 at 10:10 am
Paul Hunter | Category: Buyer Tips, Friday Fun Facts, Homes for Sale, Real Estate, Seller Tips | Tagged , , , , ,

Inventory Drop

Inventory Drop

An impact we expected from COVID-19 to the housing market is reduced inventory.  That prediction is certainly proving to be true.

In March, the number of withdrawn properties from the MLS went up 68% in Larimer County and 38% in Weld when compared to March 2019.

Reduced inventory is one reason why we don’t expect a significant drop in home prices in 2020.  We don’t see a glut of housing supply dragging prices down.

So how are properties being sold now?  Virtually!  We are helping people view homes using virtual 3D Tours and live online walk-throughs.

Our business right now is certainly not business as usual and our industry has proven to be resourceful so we can still help people with urgent real estate needs.

 

At Windermere Real Estate we are taking Shelter in Place and Social Distancing very seriously.  Our people are working at home, staying connected to their clients, and providing help wherever needed.

 

Posted on April 10, 2020 at 2:41 pm
Paul Hunter | Category: Buyer Tips, Friday Fun Facts, Homes for Sale, Real Estate, Seller Tips | Tagged , , , , ,

Health Crisis not Housing Crisis

Here is the latest video from our Chief Economist Matthew Gardner.

It’s full of great nuggets about what is happening in the economy and the real estate market today.  Just Click the image below to play the video.

Posted on April 3, 2020 at 3:08 pm
Paul Hunter | Category: Buyer Tips, Friday Fun Facts, Homes for Sale, Seller Tips, Uncategorized | Tagged , , ,

Economist’s Perspective

Our Chief Economist made a video for all of our clients where he shares his perspective on COVID-19’s impact on

housing.  You can watch it by clicking the image below:

 

 

Posted on March 20, 2020 at 2:47 pm
Paul Hunter | Category: Buyer Tips, Friday Fun Facts, Real Estate, Seller Tips, Uncategorized | Tagged , , , ,

Headwind Vs. Tailwind

Headwind vs. Tailwind

So far the tailwind of historically-low mortgage rates are prevailing over Wall Street and COVID-19 concerns.

Buyers are still active. Properties are still closing. Moving trucks are still showing up at people’s homes.

Open house traffic has declined, but we notice plenty of buyers looking for property. (one of our open houses last weekend had over 40 visitors)

For many, the interest rates are just too good to pass up.

We even see instances of multiple-offer situations for properties priced right in high-demand locations.

Rates today, compared to 4%, equate to not only a monthly savings for those refinancing but also equates to tens of thousands in additional purchase power.

For the average price of a home on the Front Range, the savings is $171 per month and the increased purchase power is $35,811.

Here’s what we expect to happen over the coming months. Listing inventory and transaction volume will both decline. We will no doubt see lower activity compared to a year ago.

But thoughts of the market “coming to a screeching halt” can’t be validated because of the historical performance of our market and because of the inherent fundamentals in place.

We will continue to track the numbers and communicate the facts so that you remain well-informed.

Posted on March 13, 2020 at 1:09 pm
Paul Hunter | Category: Buyer Tips, Friday Fun Facts, Homes for Sale, Investment, Real Estate, Seller Tips | Tagged , , , ,

A History Lesson

With the stock market on a wild ride and the Dow Jones dropping nearly 1,000 points yesterday, it makes some people wonder if the local real estate market might also crash or at least “correct.”

A little history lesson is in order.

Over the last 40 years, the real estate market along the Front Range has averaged 5.5% appreciation per year.

The highest appreciation in one year was 15.9% in 1994.

The lowest ever was -4.0% in 1982.

The last time Wall Street was in turmoil and the stock market was plummeting was 2008.  This was, for many reasons, the worst economy of our lifetime.

That year real estate along the Front Range dropped 2.2%.

Meanwhile that year the Dow Jones fell 33.8%.

Bottom line, our market has no history of crashing or even experiencing a major correction.

Why is that?

The answer is fundamentals.

Our local economy has inherent fundamentals that insulate it from big downturns.

We have an incredibly diverse economy which is not reliant upon a single industry.  We have all the way from health care, to technology, agriculture, oil and gas, major universities, and financial services (just to name a few).

We are a global destination with a major international airport.

Oh, and the quality of life here isn’t too shabby.

Prices of real estate, just like prices of anything, come down to basic economic principles of supply and demand.

Because of our diverse economy and desirable quality of life, there has been strong, consistent demand for housing along the Front Range.

While there may be little bumps along the way, over the long term our market has proven that it performs.

 

Posted on March 6, 2020 at 1:49 pm
Paul Hunter | Category: Buyer Tips, Friday Fun Facts, Homes for Sale, Investment, Real Estate, Seller Tips | Tagged , , ,