About the areaBlogBuyer TipsFriday Fun FactsReal Estate August 21, 2020

Start it UP!

Start it Up

As further evidence that the housing market is more than alive and well, new home starts have recently jumped across the U.S.

Building of residential properties is up 23.4% compared to last year and up 22.6% from last month.

Pre-pandemic demand for new homes was very high. Now, record-low interest rates are fueling the market to new highs.

Buyer TipsFriday Fun FactsHomes for SaleReal EstateSeller Tips August 14, 2020

At Least List

Periodically we track a stat which we find to be quite interesting.

It answers this question – how many properties are selling for at least list price (asking price or higher)?

This stat tells us how active the market is and helps our buyers to realize that, in some cases, they will be in a competitive situation.

When we look at single-family home sales so far this month, this is what we find:

57% of properties in Larimer County sell for at least list price

62% of properties in Weld County sell for at least list price

So, in well over half of the transactions, buyers need to offer list price or higher to acquire the property.

The data gets even more interesting when this information is broken out by price range.

To no one’s surprise, the percentage increases for properties priced under $400,000:

81% in Larimer County

70% in Weld County

We find that for properties over $400,000 the percentages still tell a story of a very active market:

47% in Larimer County

56% in Weld County

Bottom line, in most locations and price ranges we see a strong sellers’ market where buyers need to be prepared to make a strong offer and to also compete.

 

About the areaBuyer TipsFriday Fun FactsHomes for SaleReal EstateSeller Tips August 7, 2020

Rebound

The Case-Shiller Home Price Index tracks appreciation in the 20 largest real estate markets across the U.S.

Their most recent quarterly report was just released this week.

Metro Denver prices are up over last year by 3.89% which is just slightly higher than the average of the 20 markets.

It is interesting to see how the 20 locations have performed since the pre-Great Recession housing peak.

Turns out that Denver has done the best out of all the markets.

Since 2008, Denver home prices have appreciated 64.9%. Second-best is Dallas at 55.5% and Seattle is third at 41.2%.

Believe it or not, there are markets where average home prices have still not returned to their 2008 levels.

Las Vegas is 14.5% below 2008 and Chicago is 12.8% below.

These numbers are another indicator of the long-term health and performance of the Front Range market.

Buyer TipsFriday Fun FactsHomes for SaleReal EstateSeller Tips July 24, 2020

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.

About the areaBlogFriday Fun FactsInvestmentReal Estate July 17, 2020

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.

About the areaBuyer Tips July 3, 2020

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.

Buyer TipsFriday Fun FactsHomes for SaleReal EstateSeller Tips June 12, 2020

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.

Buyer TipsFriday Fun FactsHomes for SaleReal EstateSeller Tips May 29, 2020

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.

Buyer TipsFriday Fun FactsHomes for SaleReal EstateSeller Tips May 22, 2020

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.

Buyer TipsFriday Fun FactsHomes for SaleReal EstateSeller Tips May 15, 2020

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