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Friday Fun Facts!
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The First Gardner Report!
Happy Monday everyone! We now have a GREAT resource at our disposal at Windermere. Our Chief Economist Matthew Gardner will be releasing the Garner Report each quarter that gives pertinent information about the Northern Colorado and Denver markets. See below to check it out, and if you would like to have a hard copy mailed to you, please let me know!
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4th Quarter Edition Of The Scoop!
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 I get is 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!
Inventory! Inventory! Inventory!
The three most important parts of real estate may be location, location, location; but I would argue right now they are inventory, inventory, inventory! In Fort Collins we were still at only 215 homes active and on the market this month. In a town of over 150,000 people that definitely is NOT enough. We have 1.27 months of inventory available, which is WELL below the 6 months that the National Association of REALTORS describes as a balanced market.
There is good news for both buyers and sellers though. On the seller side, even with a slowdown in the higher end of the market, we have seen really great results in our Windermere Certified Listing process as well as our high end Premier Program. Many sellers are deciding to capitalize on their increase equity in their homes and sell in a seller’s market (below $400,000) and buy in a buyer’s market (over $500,000).
The good news for buyers is that even with the small bump in interest rates we have seen in the last couple months, the rates are still so low that buyers can afford more than they have before! Call me if you want to talk about the ways we can definitely still find you a home in this low inventory market.
If you have any questions about buying or selling a home in Northern Colorado, please give me a call and I’d be happy to take you to coffee to show you more stats and help you with your decision. Also, if you would like detailed information about what is going to be happening in the 2017 real estate market, come to our Windermere Market Forecast next Thursday the 19th at 5:30pm at the Fort Collins Marriott. We will have our chief economist fly out from Seattle to give us a rundown on the National, State, and Local markets. I hope you can make it!
2017 Windermere Forecast
Colorado Association of REALTORS Position!
I’m happy to announce that I am taking my involvement in the REALTOR organization to the state level! I was elected as the Northeast District Chairman for the Colorado Association of REALTORS, and my term has just begun. In this volunteer position, I will be the avenue of communication between the local boards in my District, and the State Association of REALTORS.
I really look forward to advancing the professionalism of REALTORS and the REALTOR brand, and I am certain that this position will give me even more insight for me to bring back to you all, the most important part of my business, my real estate clients!
If you or anyone you know are in need of buying or selling a home, please feel free to give me a call today and I’ll take you to lunch to talk about it!
What To Expect In Housing Affordability
Check out Windermere’s Economist Matthew Gardner and listen to his take on where we are going with Housing Affordability.
Thank YOU!
I want to thank all of my clients for making the tailgate party last week such a success! We had over 150 people, and we got to enjoy Tacos, drinks, and the Coyote Gold trailer even showed up to serve margaritas. It was a lot of fun to see everyone!
Great food with friends!
Eric Thompson in a mini trike race!
On a similar note, I got to attend our new Cherry Creek Windermere offices’ Grand Opening Party, and it was so cool to see how we are growing even more in the Denver area and will be able to serve even more of our clients in that area. If you or anyone you know needs real estate help in Denver, give me a call and I can put you in touch with amazing agents in that region.
Thank you again and have a great week!
