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 , , , , , , , ,

2017 Windermere Forecast

Give me a call or shoot me an email if you can make it, would love to have you there!

 

Email Signature Invite-Fort Collins

Posted on January 9, 2017 at 6:14 pm
Paul Hunter | Category: About the area, Buyer Tips, Investment, Real Estate, Seller Tips, Things to Do | Tagged , , , , , , , , ,

What Are Your Intentions?

Intentions

As I start to talk with my brokers here at Windermere about goal setting, business planning, and calendaring for 2017, the conversation revolves around INTENTIONS. Goals are great (and we need to have them!), but it is very powerful to talk about what your vision is and what your intentions are for the next year. 

I bring this up, because what are you going to DO (not try to do) in 2017? Do you have an intention of purchasing an investment property as a step towards being financially free? Or are you going to take advange of your newfound equity in your home and get something to fit your growing family? Or maybe you are FINALLY tired of paying the huge rental premiums to rent a home in Fort Collins. 

If you set those intentions for the upcoming year and any of those involve a change in real estate and you have questions, remember I'm here even if it is just to bounch ideas off of. I'll tell you my intentions for this upcoming year (the more people that know the more accountable you are!) are to purchase two more investment properties. 

I'd love to know what your intentions are for next year, and remember if you start working on them on January 1st you're late to the game!

Posted on September 6, 2016 at 2:51 pm
Paul Hunter | Category: Buyer Tips, Investment | Tagged , , , , ,

Investment Properties, Rents, and Prices

For-Rent-Money-House-copia

I often get the question, why should I buy an investment property while prices are so high? I will get to the answer to that question, but that question makes an incorrect assumption. It assumes that prices are high right now, and we should all wait to buy an investment property until prices go "back down". Now of course I don't have a crystal ball, but with the lack of inventory, the population growth in Larimer County, and the lack of buildable lots, there is a very low chance of prices falling below where they are today in the next 5 or so years. We will probably see a slow down in the rate of price increases, but that still means price increases.

So back to the answer to the original question, and it lies with two pieces of the puzzle. Rents and Interest Rates. I started selling investment properties in Fort Collins 11 years ago, when the average price was closer to $200,000. A 3 bedroom 2 bath near the CSU campus was selling for $180,000. That same home today would be selling for at least $280,000, but our cash flow numbers are higher today than they were back then! Rents have increased at a faster rate than prices, so even though your monthly mortgage payment is higher, your rents are by percentage even higher than they were "back in the day". Also, with interest rates almost HALF of what they were 10 years ago, you are paying much less interest in that mortgage payment, also making the increase in mortgage payment slower than rents. 

I have clients that have purchased many investment properties in the last two years during this time of price increases, but their numbers are fantastic on both cash flow and appreciation! If you have any questions or would like to learn more, give me a call or go to my investment property webinar. I'd love to help you!

Posted on August 15, 2016 at 1:14 pm
Paul Hunter | Category: Buyer Tips, Investment, Real Estate | Tagged , , , , , , ,

October KEVCO Newsletter

Click below to check out our latest newsletter! See reasons fall might be the time to buy, renting vs buying, and awesome camel facts!

KEVCO Newsletter-October

Posted on October 1, 2012 at 5:00 pm
Paul Hunter | Category: About the area, Buyer Tips, Investment, Seller Tips, Things to Do | Tagged , , ,

June KEVCO Newsletter

If you are interested in what is going on here in the Fort Collins real estate market click the link below!

Newsletter June 2012

Posted on June 2, 2012 at 7:33 pm
Paul Hunter | Category: About the area, Buyer Tips, Investment, Seller Tips | Tagged , , , , ,

May 2012 KEVCO Newsletter

Newsletter May 2012

Click above to read about what is going on in the Fort Collins Real estate market today!

Posted on May 1, 2012 at 10:27 pm
Paul Hunter | Category: About the area, Buyer Tips, Investment, Seller Tips | Tagged , , , , , ,

Fort Collins/Loveland Vacancy Rates “Critically Low”

As vacancy rates fall and rent numbers rise, Fort Collins is becoming an even BETTER place to invest your money! It also mentions in this Coloradoan article that around campus the vacancy rates are below 1%! This again shows that the student rental market is where it’s at for investment properties in Fort Collins. Here at KEVCO for the properties we manage (over 300) we have been at 0% for the last 3 years for the August-July lease timeframes.

As more rental properties come on the market, they will be selling quickly and potentially at a premium. So, if you have an investment property that you’ve been thinking about selling, now is most certainly the time. Give me a call or shoot me an email with questions, I hope you have a great week!

Posted on November 21, 2011 at 4:46 pm
Paul Hunter | Category: About the area, Buyer Tips, Investment, Seller Tips | Tagged , , , ,