Delinquent Indicator

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A leading indicator of the health of any real estate market is Mortgage Delinquencies.

Specifically, the percentage of mortgages which are at least 30 days delinquent can foretell the amount of distressed properties that may hit the market in the future.

The most recent research shows that only 4.11% of all loans are delinquent.

This number has dropped for seven quarters in a row and is now at its lowest level since the fourth quarter of 2019 (which was the lowest ever in 20 years).

It is worth noting that the delinquency rate in the years leading up to the housing bubble hovered between 5.5% to 6.0%.

Based on this data, the likelihood of a foreclosure surge or a glut of distressed properties hitting the market is minimal.

The post Delinquent Indicator appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

Delinquent Indicator

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A leading indicator of the health of any real estate market is Mortgage Delinquencies.

Specifically, the percentage of mortgages which are at least 30 days delinquent can foretell the amount of distressed properties that may hit the market in the future.

The most recent research shows that only 4.11% of all loans are delinquent.

This number has dropped for seven quarters in a row and is now at its lowest level since the fourth quarter of 2019 (which was the lowest ever in 20 years).

It is worth noting that the delinquency rate in the years leading up to the housing bubble hovered between 5.5% to 6.0%.

Based on this data, the likelihood of a foreclosure surge or a glut of distressed properties hitting the market is minimal.

The post Delinquent Indicator appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

Q1 2022 Colorado Real Estate Market Update

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The following analysis of select counties of the Colorado real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere Real Estate agent.

 

Regional Economic Overview

The most recent jobs data showed that by February of this year Colorado had recouped all of the more than 375,000 jobs that were shed due to the pandemic and had added an additional 6,000 positions. The recovery in employment was faster than I had expected, which has led me to revise my 2022 forecast: I now predict that the Colorado job market will increase by 4% this year and will add more than 112,000 new jobs. The state unemployment rate in February was 4%, which is well below the pandemic peak of 11.8% but still above the 2.6% average in 2019. Regionally, unemployment rates ranged from a low of 3.1% in Boulder to a high of 4% in the Colorado Springs and Greeley metropolitan areas.

Colorado Home Sales

❱ In the first quarter of the year, 8,178 homes sold, representing a drop of 6.3% compared to the same period a year ago and 30% lower than in the fourth quarter of 2021.

❱ Sales increased in 4 of the 12 counties covered by this report but fell in the balance of the market areas.

❱ Similar to last quarter, low inventory levels continue to constrict sales. Listing activity was 17.3% lower than the same period in 2021 and 29.5% lower than in the fourth quarter of 2021.

❱ Pending sales, which are an indicator of future closings, also declined, though the drop of 4.3% is not that significant. That said, unless we see a surge in inventory levels in the spring, second quarter sales may also be light.

A bar graph showing the annual change in home sales for various counties in Colorado between Q1 2021 and Q1 2022.

Colorado Home Prices

❱ With limited inventory and rising mortgage rates, buyers were motivated, as demonstrated by the 14.9% increase in average prices compared to a year ago. Home prices in first quarter averaged $637,963, which is 4.5% higher than last quarter.

❱ Boulder County continues to see average sale prices holding above $1 million. Although we have seen some softening in list prices, I expect this market to remain above the $1 million mark as we move through the year.

❱ Year over year, prices rose by double-digits across all markets covered by this report, with a huge jump in the small Gilpin market.

❱ With little in the way of choice for buyers—as well as a “fear of missing out” given rising mortgage rates—it’s no surprise there was such solid price appreciation. That said, there is normally a lag between rising rates and any impact on home prices. The second quarter should indicate if the jump in rates has had a softening effect on price growth.

A map showing the year-over-year real estate market percentage changes in various counties in Colorado for Q1 2022.

A bar graph showing the annual change in home sale prices for various counties in Colorado from Q1 2021 to Q1 2022.

Mortgage Rates

Average rates for a 30-year conforming mortgage were 3.11% at the end of 2021, but since then have jumped over 1.5%—the largest increase since 1987. The surge in rates is because the market is anticipating a seven- to eight-point increase from the Federal Reserve later this year.

Because the mortgage market has priced this into the rates they are offering today, my forecast suggests that we are getting close to a ceiling in rates, and it is my belief that they will rise modestly in the second quarter before stabilizing for the balance of the year.

A bar graph showing the average rates for a 30-year conforming mortgage, plus Matthew Gardner's mortgage rate forecasts for Q2 2022 through Q1 2023.

Colorado Days on Market

❱ The average number of days it took to sell a home in the markets contained in this report fell four days compared to the first quarter of 2021.

❱ The length of time it took to sell a home dropped in every county other than Gilpin compared to the same quarter a year ago.

❱ It took an average of only 21 days to sell a home in the region, matching the previous quarter.

❱ Compared to the final quarter of 2021, average market time fell in Clear Creek, Adams, Denver, Jefferson, and Arapahoe counties, but rose in the balance of the markets contained in this report.

A bar graph showing the average days on market for homes in various counties in Colorado during Q1 2022.

Conclusions

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

With Colorado on solid economic footing, I expect housing demand to remain strong even in the face of rising financing costs. Inventory levels remain very low, and new home construction has not expanded enough to meet demand, which continues to put upward price pressure on resale homes. The market appears to have shrugged off the jump in mortgage rates in the first quarter, but the full effects won’t be felt until later this spring. We’ll have to wait and see what impact, if any, there will be, but data on listing prices shows that home sellers remain bullish.

A speedometer graph indicating a seller's market in Colorado during Q1 2022.

Given all these factors, I am leaving the needle in the same position as last quarter. The market clearly still favors sellers, but we need a few more months of information to determine how rising mortgage rates may impact home sales and/ or prices.

About Matthew Gardner

Matthew Gardner - Chief Economist for Windermere Real Estate

As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.

In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.

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Expert Opinion

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This week, take a listen to Matthew Gardner, Windermere’s Chief Economist as he discusses the current state of the housing market.​​​​​​​

 

He takes a deep dive into interest rates, price appreciation and where the market is headed.

 

You can watch his video HERE

 

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10 Steps to Get Your Home Clean and Ready for Spring

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Warmer months are ahead, so now is the time to plan for spring cleaning and maintenance. A clean home offers a fresh start for the year, and a checklist of tasks guides your efforts towards efficiency. For many homeowners, spring cleaning can be a personal challenge. It can also be one accomplished with the help of the rest of the family or other residents. In some occasions, however, professional assistance may be advised, or even necessary. Regardless, regular home maintenance not only increases your home’s value, but it can also make your home more comfortable and enjoyable. 

Indoors

Check Your Attic

Once summer arrives, it can be too hot in many regions to comfortably perform an inspection. Use late winter and early spring to ensure the following: there’s ample insulation (10 to 14 inches), there are no signs of mice or rats (droppings, strong odor, nests), there are no bugs (flying, crawling, or otherwise), and there are no signs of roof leaks (water stains, etc.).

Schedule HVAC Maintenance

Annual tune-ups on your heating/cooling equipment will reduce your energy bill and help ensure you can maintain a comfortable indoor temperature.

Fix the Window Screens

It won’t be long before you’ll want to throw open the windows for fresh air, or relief on a warm afternoon. Take time now to ensure your window screens are ready for the challenge. Many traditional neighborhood hardware stores still offer re-screening services. Contractors also specialize in this service and are available for house calls.

Clean the Ceiling Fans

During the warm weather and the cold, ceiling fans can help moderate the temperature and better distribute the air. But your fans will be far more efficient if you give them a good cleaning a couple times each year. For fans mounted up to 10 feet in the air, you can use a ladder to access the tops of the fan blades. For those mounted on vaulted ceilings, use a long-handled duster. 

Apply Weather Stripping

Many homeowners think of weather stripping as a cold-weather commodity, but it’s just as important during summer. To keep the cool air in and the hot air out, use any of the many filler materials available to seal gaps around windows, doors, exhaust fans, and any other point where you can see light peeking through. 

Outdoors

Look for Damaged Roof Shingles

Use binoculars (with your feet safely planted on the ground) to scan for roof shingles that are curling, broken, or missing. If anything seems compromised, have a roofing company perform an inspection and provide a bid. If you or any members of your family are enterprising drone users, a camera-affixed drone can also be a useful aid in this reconnaissance effort. 

Wash the Exterior

An easy way to extend the life of your exterior paint – and make your house look better than ever – is to give the siding a good washing. Use mostly water (to avoid harming any plants) and a stiff pole brush.

Search Out Rotten Wood

While you’re washing the exterior, keep an eye out for areas where there may be rot. Use a screwdriver to gently but firmly press on any siding or trim where you see black mold, missing paint, or exposed gray wood. If the area you’re probing feels mushy or bone-dry, contact a contractor to assess and stabilize the situation.

Clean the Gutters

All it takes is a handful of leaves to clog a gutter downspout and cause overflow and flooding. Hire a professional to give the gutters a thorough cleaning and you’ll avoid the very real dangers of working from a ladder. If you live in an area with lots of trees, consider getting quotes for some of the leaf-less gutter systems.

Prepare Your Lawn to Grow

The winter sets impediments for your lawn, and it takes preparation to help it shine. Rake away any dead grass and aerate the whole lawn to allow nutrients to access the roots. Reseed bare spots and apply a spring fertilizer to ensure your lawn has the fuel it needs to grow strong and beautiful.

The post 10 Steps to Get Your Home Clean and Ready for Spring appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

Half A Month

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There is half of a month of inventory on the market.  In other words, at the current pace of sales, it would take just two weeks to sell all of the homes currently listed for sale along the Front Range.

By definition, a market is balanced when there is 4 to 6 months of inventory.  Anything less than that is a seller’s market.

The current inventory levels give us confidence about the future of price growth along the Front Range.

While we expect the pace of price appreciation to slow, the low supply of properties insulates us against any sort of price decline.

The post Half A Month appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

Interest-ing

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The recent increase in mortgage rates has started some home buyers to look at programs that have fixed rates for 7 years or 10 years instead of 30 years.

If a buyer believes it is likely they will move or even refinance within this timeframe, these types of programs can be a good option.

The obvious benefit is a lower monthly payment compared to a 30-year program. 

Another benefit, which most people underestimate, is the savings in interest.

Today, for example, a buyer would have these options:

  • 5.25% 30-year fixed
  • 4.375% 10-year fixed
  • 4.125% 7-year fixed

Over the first five years of the loan, the buyer would pay the following amounts in interest for each loan program for a $400,000 loan:

  • $101,126 for 30-year
  • $83,764 for 10-year
  • $78,831 for 7-year

So the savings in interest over the first five years compared to the 30-year program is:

  • $17,362 for 10-year
  • $22,295 for 7-year

The post Interest-ing appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

New Listings April 2022

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6469 Wild Plum Drive, Loveland is a beautiful meticulously maintained home in attractive Bonnell West! Large 3/4 acre lot that backs to green space. Enjoy foothills living yet still have easy access to all that downtown Loveland has to offer. Wood floors, upgraded kitchen, new appliances, and a finished basement are just some of the wonderful aspects of this home. Brand new roof, newer hot tub, pergola, and living room flooring. Enjoy the view from the amazing backyard, where wildlife is plentiful. HOA includes pool and tennis courts. Take a look at this home before it’s gone! Call (970) 673-7285 to schedule your private tour or click here for more information. 

Paul Hunter | MLS# 962300

212 Harvest Point Drive, Erie is a charming 5-level home that has gorgeous mountain views and opens to Long’s Peak Park behind. In the highly sought after Meadow Sweet Farm neighborhood, this home has easy access to I-25 but still has great parks, schools, and trails. This home has been recently updated with fresh paint throughout. Two separate living areas, a formal dining room, a large kitchen, plus the spacious backyard makes this the perfect home anyone that needs extra room. Bamboo flooring on the main level and lower level living room, as well as the archway give this home plenty of unique character. The basement is currently partially finished into a large bedroom with a full bathroom, making it a great area for multi-generational living. Use your imagination and even finish the “storage area” into a 6th bedroom for the home. The mature landscaping in the front and the enclosed porch will welcome you home! Showings start Thursday 4/7/22. Call (970) 534-5440 to schedule your private tour or click here for more information. 

Ben Barnhart & Kyle Craft| MLS# 962302

 

3506 Patterson Court is a great 2 bed + Study/ 2 bath home located on a quiet cul-de-sac in mid-town Fort Collins. Perfect for a first time homebuyer or investor. Kitchen features stainless steel appliances and solid surface countertops. Enjoy the beautiful Colorado weather on the large deck in the backyard. When it cools down, sit by the warm gas fireplace in the living room. Full unfinished basement waiting for your finishing touch. Don’t miss out on this amazing opportunity. Call (970) 682-3050 to schedule your private tour or click here for more information. 

Greg Rittner | MLS# 962398

 

266 Saskatoon Drive is a fabulous 3 bedroom ranch-style home on a quiet street in Windsor’s popular Greenspire neighborhood! Boasting a sprawling open floor plan with tons of natural light, this three year old home features an awesome kitchen with granite countertops, stainless appliances, large pantry and plenty of storage. The primary suite includes a luxury 5-pc bath and large walk-in closet. Relax or entertain on the large deck overlooking the expansive back yard with raised garden beds. Full unfinished basement for future expansion. Three-car garage! Close to the community park, restaurants and everything this wonderful community has to offer! Call (970) 237-2752 to schedule your private tour or click here for more information. 

Jon Holsten | MLS# 962391

 

WATER VALLEY BEAUTY! 1967 Seadrift Drive is a large custom home in desirable Water Valley. Enjoy resort-style living every day in your gorgeous home on a large corner lot with mountain views from your wrap around porch. The open floor plan with gourmet kitchen make this home an entertainer’s dream. Enjoy the enclosed entertaining space and large back deck surrounded by mature landscaping after a busy day at the lake or on the golf course. Store all the toys away in your 800 sf over-sized garage. Main floor has a primary retreat with 2 walk-in closets, 5 pc. bath, study, 2 additional bedrooms, a full bath, and laundry room. Downstairs you will find a workout room , flex room that could be a 2nd home office, 3 additional bedrooms, a wet bar and large family room with a pellet burning stove that makes a perfect place to relax and enjoy time together. This home is custom throughout and just waiting for you to call HOME! Call (970) 396-7689 to schedule your private tour or click here for more information. 

Kim Friesen | MLS# 962471

 

4005 Meadows Avenue, Evans is a fantastic 4-bedroom ranch-style home in the popular Meadows community! Boasting a wide-open floor plan with many updates including new flooring and paint throughout, this beauty also features a great room with a vaulted ceiling and fireplace. On the main level, you’ll find the convenient laundry space and two bedrooms, including the primary suite. In the freshly and beautifully finished basement, you’ll find a large rec room, two additional bedrooms, bath and storage. Relax or entertain under the covered patio, which overlooks the huge back yard and no neighbors behind you. Nearby dog run. Newer roof and a two-car garage. RV and trailer parking. NO HOA!! Call (970) 237-2752 to schedule your private tour or click here for more information. 

Jon Holsten | MLS# 963006

 

1502 Tang Court is a beautiful 5 bed, 4 bath home on a cul-de-sac in desirable Registry Ridge. Bright & open floor plan has been fully updated on the main level & basement. Main floor office plus large rec room with a wet bar in the finished basement. The backyard provides patio space to entertain or just relax. There’s a pad for future hot tub – wiring ready to go! The home backs to a large greenbelt & neighborhood is equipped with paved walking and biking paths, a pool, and 2 playgrounds. Location allows for quick and easy access to Fort Collins and Loveland, I-25, major bike trails, and Boyd Lake. Pre inspected & ready to go! Call (970) 232-4844 to schedule your private tour or click here for more information.

Phil Cooper | MLS# 963356

 

Welcome to 1540 Adriel Court. Located in the gem that is Adriel Hills, this fully renovated home is a quiet retreat. Updated in 2016, you can enjoy an open main living area, fireplace and patio. Upstairs, the primary bedroom features a barn door, expanded primary en-suite bathroom with dual sinks and walk in closet. The secondary bedrooms share a full bath. There is extra storage in the locked shared building basement. Enjoy the perks of Adriel Hills living including tennis, indoor/outdoor pool, clubhouse and golf course. Easy access to I-25 and Old Town Fort Collins. Call (970) 215-1013 to schedule your private tour or click here for more information. 

Maria Dellota | MLS# 963511

 

Welcome to the Eiber neighborhood in Lakewood where you can enjoy sprawling ranch style homes, walk to peaceful Holbrook Park and enjoy this quaint community. 656 Cody Street is an incredible 5 bedroom, 3 bath ranch is just minutes to restaurants, shopping and coffee shops. This home has been well maintained with a newer roof, windows, furnace and sewer line to the street. The main level has a large living room, formal dining room and comfortable eat-in kitchen. The master bedroom has an attached ¾ bath – which is rare in a mid-century modern! There are also 2 additional bedrooms and full bath. The basement has 2 more bedrooms, another full bath, an office or craft room, a giant cedar lined storage room and a spacious rec room with bar. The basement has a separate entrance to the outside and would work well for someone wanting private access to the lower level! The back yard with its covered patio and mature trees offers an enjoyable place to garden and relax. There is room for an RV on the extended pad built for the extra weight. This property is truly perfect for anyone seeking a home that gives them quick access to the mountains and a short commute to the city. Call (970) 646-3035 to schedule your private tour or click here for more information. 

Aaron Pearson | MLS# 3509376

 

Great location, great neighbors, this home is ‘move in’ ready with designer finishes thru out: gourmet kitchen w/gas cooking, double ovens, hickory cabinets, granite island, hickory floors, high ceilings, fireplace, main floor laundry, primary bed suite w/5pc luxury bath, high pressure rainhead faucet, bidet and huge walk-in closet. 1517 Wetland Street, Loveland has so many upgrades! New 4-season patio room, A/C, furnace, tankless hw heater, exterior paint, roof, sprinkler system, security/cameras and beautiful landscaping w/pond, fountain and fully fenced. Large unfinished basement is framed, toilet installed and theatre room prewired if desired. Sump pump and radon mitigation system. The garage is oversized, heated with a sink, workbenches and shelving. This home is pre-inspected. Call (970) 218-3383 to schedule your private tour or click here for more information. 

Tammy Fisher | MLS# 963329

 

524 Vermilion Peak Drive is a lovingly-cared-for ranch home minutes from outdoor recreation and the fun of downtown. Featuring eye-catching finishes, abundant natural light, and mountain views, this home is sure to impress! Enjoy granite countertops, stainless steel appliances, double ovens, and soft-close cabinets in your gourmet kitchen PLUS hardwood throughout the main floor. The easily accessible main-level primary suite is made complete by the 5-pc luxury bath and walk-in closet. Fully landscaped backyard boasts a covered patio, ideal for relaxing and entertaining all summer long. Use the unfinished basement for additional storage or explore the possibility of future expansion! Don’t miss this one – schedule your showing today! Call (970) 420-4498 to schedule your private tour or click here for more information.

Lindsey Cristanti | MLS# 963258

 

Terrific lot at 122 Tutelo Drive in private Crystal Lakes community with large concrete pad and storage shed. Shed has loft area and electricity! Enjoy all Crystal Lakes has to offer – fishing ponds, trash service, potable water, laundromat, bathrooms with showers and more. Year-round accessibility with HOA hired road plowing. Bring your toys – close to Roosevelt National Forest and abundant recreation trails! Call (970) 541-4802 to schedule your private tour or click here for more information. 

Natalie Parsons | MLS# 961266

 

2015 N Estrella Avenue is a beautiful updated ranch-style brick home with a perfect location. Lake Loveland, Cattail Golf Course, North Lake Park, Benson Sculpture Garden, Estrella Park, Mehaffey Park, and Rist Benson Reservoir are all within 1.5 miles. No monthly HOA, metro tax, and RV/BOAT PARKING as well! This home features wood floors, a large family room addition with a wood-burning stove, Newer Kitchen remodel including backsplash, countertops, sink, and SS appliances. The downstairs bathroom has just recently been remodeled with a large walk-in custom tile shower. Large WORKSHOP in the basement for all your hobbies. The backyard is fully fenced with a shed, garden area, covered porch, and mature landscaping. All ready for summer barbecues! Come see this great home yourself and visit one of our OPEN HOUSES this weekend; Friday 4-6 PM, Saturday 10-2, and Sunday 11-3 or call (970) 310-6999 to schedule your private tour! 

Alexis Foster & Jared Foster | MLS# 964130

 

17905 Country Road 90 is a beautifully updated home that has mature landscaping, including wind break on 8.9 acres. Being close to Highway 85 makes it convenient to Greeley, Ft. Collins and Cheyenne. This home features an open floor plan with a stunning gourmet kitchen, including a large center island, lovely granite countertops, upgraded hickory cabinets, stainless steel appliances and copper farmers sink making entertaining delightful! Covered deck overlooks the professionally landscaped backyard. Open house Saturday, April 29th 11:00 to 4:00 and Sunday, May 1st, 12:00 to 4:00. Check out the virtual tour below or call (970) 590-9860 to schedule your private tour! 

Angie Clauser | MLS# 963962

The post New Listings April 2022 appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

Renting vs Buying: Which is better for you?

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Deciding whether to rent or buy can be a difficult decision, but with the right analysis, you can determine which is best for you. Knowing whether it’s the right time to rent or buy depends on your buying power, what you’re looking for in a home, your local market conditions, your plans for you and your household, and the responsibilities you’re prepared to take on at your residence.

Renting vs. Buying: Which is Better for You?

Renting gives you greater flexibility to relocate, fewer home maintenance responsibilities, and can often be more the more affordable option, depending on where you live. The extra costs associated with owning a home—interest payments, taxes, repairs—may be too much for some renters to handle. Becoming a homeowner has its respective advantages. You’ll have stable monthly payments and greater freedom to customize your living space. Advocates of buying will contend that purchasing a home is an investment in equity, which can increase in value every year you live in the home, whereas if you rent a property, you’re essentially paying for someone else’s mortgage. 

Ultimately, the right decision depends on your situation. If you don’t plan to be living in the same place for at least five years, renting might be more logical, as it allows you more flexibility when it comes time to move again. If you’re looking to settle down for the better part of a decade or longer and can afford to buy a home, becoming a homeowner may be the better option. Here are a few additional considerations to guide your renting-versus-buying decision making process.

What are the local real estate market conditions?

Investigate the local sales and rental markets. Industry groups put out reports every quarter stating the average national sales price for a home and the average monthly payment for a rental. These reports are typically based on an average of all the cities in the U.S. But what really matters is what the numbers show when you dig into them on a local level. When looking at these reports, you’ll see there are some cities that fall below that average, while others rise above it. When comparing housing costs, be sure to base your evaluation on what’s happening in your city and neighborhood, not the nationwide averages.

For a quarterly breakdown of local market conditions, explore our Market Updates page. With data analyzed by our Chief Economist Matthew Gardner, each report breaks down the latest figures in home sales, home prices, and days on market for regions throughout Windermere’s footprint. Gardner also provides his estimation of where each market sits on the buyer’s-market-to-seller’s-market spectrum.

What can you afford?

Making the jump from renter to homeowner is often a question of affordability. Your mortgage rate will depend on your financial strength, your credit score, and other factors, so make sure to talk to a loan officer before you start looking for a home. Getting pre-approved for a mortgage will identify what you’re able to afford and helps strengthen your offer when the time comes.

To get an idea of what you can afford, use our free Home Monthly Payment Calculator by clicking the button below. With current rates based on national averages and customizable mortgage terms, you can experiment with different values to get an estimate of your monthly payment for any listing price. By using the Home Monthly Payment Calculator, you can make a well-informed estimation of whether it’s the right time to buy.

 

Will you need to make repairs to your new home?

Buying a fixer-upper may seem like a great way to get a deal on a house, but if the money you spend on the repairs is too great, your profit could be diminished when it comes time to sell. The same is true for remodeling and improvement projects. There are various renovation financing loans available to you that can help with the costs of home repairs, though extra consultations, inspections, and appraisals are often required in the process of securing these loans. Ultimately, if you can only afford a home that demands major improvements, and you don’t have the skills to do much of the work yourself, you may be better off renting.

Can you rent part of the house you’re buying?

If you buy a house with rental-capable space (extra bedroom, mother-in-law unit, etc.), you could use the rental income to pay off your mortgage faster and contribute more to your savings. But, of course, you need to be willing to share your home with a tenant and take on the responsibilities of being a landlord or working with a professional property manager to help you with those duties. Renting out a space in your home will also require you to purchase landlord insurance on top of your existing homeowners insurance policy.

Making Your Decision to Rent or Buy

At the end of the day, the decision is up to you. Based on the conditions laid out above, it simply may not be the right time for you to buy. Fortunately, when it comes to being a homeowner, it’s not now or never. A real estate agent will be your ultimate resource in gauging whether it’s the right time to buy and guiding you through the process toward homeownership.

The post Renting vs Buying: Which is better for you? appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

Renting vs Buying: Which is better for you?

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Deciding whether to rent or buy can be a difficult decision, but with the right analysis, you can determine which is best for you. Knowing whether it’s the right time to rent or buy depends on your buying power, what you’re looking for in a home, your local market conditions, your plans for you and your household, and the responsibilities you’re prepared to take on at your residence.

Renting vs. Buying: Which is Better for You?

Renting gives you greater flexibility to relocate, fewer home maintenance responsibilities, and can often be more the more affordable option, depending on where you live. The extra costs associated with owning a home—interest payments, taxes, repairs—may be too much for some renters to handle. Becoming a homeowner has its respective advantages. You’ll have stable monthly payments and greater freedom to customize your living space. Advocates of buying will contend that purchasing a home is an investment in equity, which can increase in value every year you live in the home, whereas if you rent a property, you’re essentially paying for someone else’s mortgage. 

Ultimately, the right decision depends on your situation. If you don’t plan to be living in the same place for at least five years, renting might be more logical, as it allows you more flexibility when it comes time to move again. If you’re looking to settle down for the better part of a decade or longer and can afford to buy a home, becoming a homeowner may be the better option. Here are a few additional considerations to guide your renting-versus-buying decision making process.

What are the local real estate market conditions?

Investigate the local sales and rental markets. Industry groups put out reports every quarter stating the average national sales price for a home and the average monthly payment for a rental. These reports are typically based on an average of all the cities in the U.S. But what really matters is what the numbers show when you dig into them on a local level. When looking at these reports, you’ll see there are some cities that fall below that average, while others rise above it. When comparing housing costs, be sure to base your evaluation on what’s happening in your city and neighborhood, not the nationwide averages.

For a quarterly breakdown of local market conditions, explore our Market Updates page. With data analyzed by our Chief Economist Matthew Gardner, each report breaks down the latest figures in home sales, home prices, and days on market for regions throughout Windermere’s footprint. Gardner also provides his estimation of where each market sits on the buyer’s-market-to-seller’s-market spectrum.

What can you afford?

Making the jump from renter to homeowner is often a question of affordability. Your mortgage rate will depend on your financial strength, your credit score, and other factors, so make sure to talk to a loan officer before you start looking for a home. Getting pre-approved for a mortgage will identify what you’re able to afford and helps strengthen your offer when the time comes.

To get an idea of what you can afford, use our free Home Monthly Payment Calculator by clicking the button below. With current rates based on national averages and customizable mortgage terms, you can experiment with different values to get an estimate of your monthly payment for any listing price. By using the Home Monthly Payment Calculator, you can make a well-informed estimation of whether it’s the right time to buy.

 

Will you need to make repairs to your new home?

Buying a fixer-upper may seem like a great way to get a deal on a house, but if the money you spend on the repairs is too great, your profit could be diminished when it comes time to sell. The same is true for remodeling and improvement projects. There are various renovation financing loans available to you that can help with the costs of home repairs, though extra consultations, inspections, and appraisals are often required in the process of securing these loans. Ultimately, if you can only afford a home that demands major improvements, and you don’t have the skills to do much of the work yourself, you may be better off renting.

Can you rent part of the house you’re buying?

If you buy a house with rental-capable space (extra bedroom, mother-in-law unit, etc.), you could use the rental income to pay off your mortgage faster and contribute more to your savings. But, of course, you need to be willing to share your home with a tenant and take on the responsibilities of being a landlord or working with a professional property manager to help you with those duties. Renting out a space in your home will also require you to purchase landlord insurance on top of your existing homeowners insurance policy.

Making Your Decision to Rent or Buy

At the end of the day, the decision is up to you. Based on the conditions laid out above, it simply may not be the right time for you to buy. Fortunately, when it comes to being a homeowner, it’s not now or never. A real estate agent will be your ultimate resource in gauging whether it’s the right time to buy and guiding you through the process toward homeownership.

The post Renting vs Buying: Which is better for you? appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.