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 šŸ™‚

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 , , , , , ,

Windermere Market Forecast

I want to thank everyone that was able to make it to our Market Forecast last week, we all really appreciate it! If you would like to get the powerpoint presentation or would like a rundown from the event, please give me a call or shoot me an email. Or if you would like to know more about the market activity in your neighborhood or the value of your home specifically, let me buy you lunch and we can talk more about it!

 

Posted on January 21, 2018 at 6:23 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 , , , , , , , , ,

What’s Happening In The 2017 NoCo Real Estate Market?

Have you asked yourself this question, or has someone you know asked this question? Then let us answer! Check out the video below that outlines our 2017 Windermere Real Estate Market Forecast!

Posted on March 4, 2017 at 7:20 pm
Paul Hunter | Category: About the area, Buyer Tips, Investment, Real Estate, Seller Tips | Tagged , , , , , , , , ,

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 IĀ get isĀ 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!Ā 

Posted on January 23, 2017 at 3:53 pm
Paul Hunter | Category: About the area, Buyer Tips, Investment, Real Estate, Seller Tips | Tagged , , , , , , , , ,

New Seller Website!

Fort Collins Home Price

Good morning everyone! I wanted to let you know that I have a new website for homeowners (or buyer’s) to check out and find your home’s value. If you know of anyone that is interested in finding out what they could sell their home for, have them check out www.fortcollinshomeprice.com

I hope you are all having a great day!

www.fortcollinshomeprice.com

Posted on September 18, 2014 at 4:05 pm
Paul Hunter | Category: Uncategorized | Tagged ,

Crazy 2014 Real Estate Market Update

Getting-Your-Charlotte-Home-SOLD

2014 continues to be a record year, in many different ways. As a buyer or a seller, we are seeing trends in the market that we have not seen in the last decade at least. There are opportunities on both sides of the transaction, but you need to be very focused on how to take advantage of those opportunities.

What I think everyone and their mother knows by now is that inventory is low. As in, crazy low. But an interesting statistic is that pending or under contract sales are down 27.5 percent year to date, and new listingsĀ (while still lower than last year) areĀ down only 5.5 percent. What that tells me is that the good properties that are priced well have been picked over, and we are starting to see more listings come on the market that may be over priced as sellers are trying to catch the wave of appreciation. Don’t get me wrong, appreciation has CERTAINLY occurred with the average sales price up 8.4 percent year to date at $311,979 for Fort Collins. But, I think there are more and more sellers (and correspondingly their brokers) who are taking a “let’s see if we can get it” type mentality. While I am happy to help you as a seller get the premium for your home, I think pricing accordingly to your appreciation and not just a gut feeling is important.

On the buying side, with interest rates still low, taking advantage of the properties that are priced appropriately still makes sense in the long term. Year to date the average percentage of sold price to list price is right at 99%, so understanding that beating sellers up on price if they are even remotely close to where they should be on price is in most cases not feasible. As long as you as a buyer are willing to move quickly on good homes and have all of your financing in order, then I still think it is possible for you to find the right home.

If you have any questions, or know of anyone looking to buy or sell a home, feel free to contact me anytime!

Posted on June 10, 2014 at 3:53 pm
Paul Hunter | Category: About the area, Buyer Tips, Investment, Seller Tips | Tagged , , , ,