Price Plummet

/in , , , , /by

For anyone waiting for home prices to drop before making a buying decision, there is good news.

The recent plummet in mortgage rates means that home prices, effectively, just took a big dip.

Rates have gone down by 1% in the last 45 days which means that a prospective home buyer’s payment is 10% less today than what it would have been at the end of October.

For example, the Principal and Interest payment for a $500,000 loan is $341 less today than what it was 45 days ago.

So, from a buyer’s perspective, prices have gone down by 10% in a very short time.

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

Price Plummet

/in , , , , /by

For anyone waiting for home prices to drop before making a buying decision, there is good news.

The recent plummet in mortgage rates means that home prices, effectively, just took a big dip.

Rates have gone down by 1% in the last 45 days which means that a prospective home buyer’s payment is 10% less today than what it would have been at the end of October.

For example, the Principal and Interest payment for a $500,000 loan is $341 less today than what it was 45 days ago.

So, from a buyer’s perspective, prices have gone down by 10% in a very short time.

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

Inventory in Perspective

/in , , , , , , /by

A significant dynamic in the Front Range market is the relatively low inventory. This is the main reason why prices are stable despite higher rates.

Here is some perspective on the inventory of homes for sale to help give some context.

Today’s inventory is:

  • Half of the long-term average going back 30 years
  • ¼ of the all-time high in 2006
  • 3 times the all-time low of 2021

The post Inventory in Perspective appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

Ups and Downs

/in , , , , , /by

Here is a look at how the market performed in August versus August 2022

 

Prices:

Larimer County Up 4%

Weld County Up 8%

Metro Denver Up 6%

 

Transactions:

Larimer County Down 18%

Weld County Down 31%

Metro Denver Down 15%

 

Inventory:

Larimer County Up 18%

Weld County No Change

Metro Denver Down 4%

The post Ups and Downs appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

What Gives?

/in , , , , , , , /by

“I thought the market was cooling off, so why are prices still going up?”

This is a frequent question we hear from our clients.

They are understandably confused by the fact that average prices have continued to rise at a rapid pace even though sales activity is slower than what it was 6 months ago.

Bottom line, they want to know why prices are up along the Front Range anywhere from 12% to 17% compared to last year.

Firstly, we don’t expect this pace of price appreciation to continue.  What we foresee is price growth going back to the long term average of 5% to 6% per year.

The reason why we still see double-digit growth comes down to two words.  Supply and Demand.

Supply, while higher than a year ago, is still relatively low.

Also, demand, while lower than a year ago, is still relatively high.

The market is still healthy, just not as frantic as it was.

Properties are still selling, but bidding wars and multiple offers have mostly gone away.

Sellers remain in a strong position, but they face more competition than before.

The post What Gives? appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

The “R” Word

/in , , , , , , , /by

Our clients wonder what a recession would mean for the real estate market.

Many assume it would translate into a downturn in prices.

Some even worry that it would cause values to come crashing down.

We looked back in history, at past recessions, to gain an understanding of what recessions mean for the Front Range market.

We used the extensive data from the Federal Housing Finance Authority to look at home price appreciation during the five recessions dating back to 1981.

What we found was quite interesting.

During the five recessions of 1981, 1990, 2001, 2008 and 2020, home prices along the Front Range went up in all but the 2008 recession.

What was unique about 2008 was that housing led the recession.  Whereas the other recessions were triggered by some combination of inflation, oil prices, and stock market issues (plus the pandemic in 2020).

So, if the past is an indicator of the future, a recession is not guaranteed to result in lower real estate prices.

The Front Range real estate market has always demonstrated long-term health and a great resiliency to outside economic events.

See the chart below for the detailed research…

The post The “R” Word appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

The “R” Word

/in , , , , , , , /by

Our clients wonder what a recession would mean for the real estate market.

Many assume it would translate into a downturn in prices.

Some even worry that it would cause values to come crashing down.

We looked back in history, at past recessions, to gain an understanding of what recessions mean for the Front Range market.

We used the extensive data from the Federal Housing Finance Authority to look at home price appreciation during the five recessions dating back to 1981.

What we found was quite interesting.

During the five recessions of 1981, 1990, 2001, 2008 and 2020, home prices along the Front Range went up in all but the 2008 recession.

What was unique about 2008 was that housing led the recession.  Whereas the other recessions were triggered by some combination of inflation, oil prices, and stock market issues (plus the pandemic in 2020).

So, if the past is an indicator of the future, a recession is not guaranteed to result in lower real estate prices.

The Front Range real estate market has always demonstrated long-term health and a great resiliency to outside economic events.

See the chart below for the detailed research…

The post The “R” Word appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

Standing Low

/in , , , , , , , , , , , , /by

The standing inventory of residential properties currently for sale is staggeringly low.

The number of active properties for sale is almost 90% below the average for this time of year.

In Metro Denver, there are 1,144 residential properties for sale today.

In Larimer County, there are 136 and in Weld County there are 174. 

Current inventory along the Front Range is essentially half of what it was one year ago.

The low standing inventory bolsters our belief that nothing resembling a decline in housing prices is on the horizon.  The low supply will continue to put upward pressure on prices.

It is time to register for our annual Market Forecast with Chief Economist Matthew Gardner.  This year the event will be hosted online on Thursday February 3rd from 11:00 to 12:00.

You can register at www.ColoradoForecast.com

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

Price Matters

/in , , , , , , /by

Almost twice as many sellers now have to drop their list price before a sale compared to July.

In October, 19% of all sales were forced to drop the list price before receiving an offer.  In July it was 10%.

These properties that start out priced too high end up taking four times as long to sell compared to those that are priced right on day one.

The bottom line is this- price matters even in a strong market.

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