More Homes Needed

The market is in short supply.

 

More homes are needed to fulfill the need to buyer demand.

 

Compared to exactly one year ago, the supply of homes is down:

  • 32.6% in Metro Denver
  • 25.1% in Northern Colorado

An interesting and useful measurement we track is months of inventory.  This stat tells how long it would take to sell all of the homes currently for sale at the current pace of sales.

Of course, months of supply can vary greatly by price range and location.  However, this stat does a good job of explaining the overall state of the market.

Specifically, months of supply tells us if the market is in balance.

A ‘balanced’ market is when there is 4 to 6 months of supply.  A buyers market occurs when the stat is higher than this range.  A sellers market occurs when it is lower.

The months of supply looks like this in our market:

  • 1.0 months in Metro Denver
  • 1.3 months in Northern Colorado

So, the market overall is significantly under-supplied and more homes are needed to meet demand.

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.

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

Economist’s Perspective

Our Chief Economist made a video for all of our clients where he shares his perspective on COVID-19’s impact on housing.  You can watch it by clicking the image below:

The post Economist’s Perspective appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

Economist’s Perspective

Our Chief Economist made a video for all of our clients where he shares his perspective on COVID-19’s impact on housing.  You can watch it by clicking the image below:

The post Economist’s Perspective appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

All Time High

 

Home Builder’s confidence in Baby Boomer buyers is at an all time high.

The National Association of Home Builders (NAHB) surveys their members each quarter to discover what they expect of future sales.

 

The builders base a large part of their answer on how many people are visiting their sales centers and model homes versus the same time last year.

 

The results in their most recent survey show that builders have never been more confident about buyers who are 55 and older.

 

The confidence index for this age group is actually double of what it was in 2012.  The NAHB sites low interest rates and strong job growth as the reasons for the high confidence.

 

 

The post All Time High appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

Case-Shiller

The Case-Shiller Home Price Index is a well-known report in the real estate industry and a valuable way to gauge what is happening in various markets across the Nation.

The report tracks home price appreciation in the 20 largest markets in the country.

Their most recent report shows that, Nation-wide, home prices are up 2.1% year-over-year. 

Last year prices were rising at 6.3%.  So, prices are still going up but not as fast as they were.

The city with the highest appreciation over the last 12 months is Phoenix with 5.8% growth followed closely by Las Vegas at 5.5%.

Denver came in at 3.4% which makes it tied for 8th place out of the 20 cities.

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

What We Notice

Here are some observations we have about the market right now:

  • Inventory is up, price reductions are up, the length of time to sell a home is up
  • Seller concessions are more prevalent
  • Sellers are more willing to accept contingent offers (especially in higher price ranges)
  • If a home doesn’t sell within a week, it often becomes stigmatized by the market and potential buyers assume there must be something wrong with it
  • Homes that likely would have sold within hours a year ago, are now sitting on the market
  • Condition is super-important as buyers become even more picky
  • Pricing a property correctly on day one is paramount
  • Sellers who over-price their property are finding themselves chasing the market

 

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

Sign Surprise

Given how active our market is today and has been over the last few years, many people assume that virtually every home with a “For Sale” sign in the front yard is already under contract.

 

They are surprised to learn that, in most cases, the “For Sale” sign does indeed represent a home that is actively for sale.

 

For example, today in Fort Collins there are 655 single-family homes on the market. 290 of these are under contract and will be closing soon. 365 of these are still active. So, 56% of the signs in Fort Collins are in front of homes that are still available.

 


Here are the specific numbers for each of our Northern Colorado markets:
• Fort Collins = 56%
• Loveland = 57%
• Windsor = 58%
• Greeley = 41%

 

 

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

Over List

A statistic we keep our eye on is the percentage of homes which sell for at least list price.

In a robust, healthy, market with lower inventory, we will frequently see homes selling for their asking price or even higher.

 

Here are the number of sales that occur for list price or higher in each of our major markets:

• Fort Collins = 60%
• Loveland = 60%
• Greeley = 71%
• Windsor = 56%

 


There are a couple of things we notice about these numbers. First, well over half of all sales are for at least list price. This means that a buyer needs to be prepared to make a full price offer (or higher) in most cases. This also means that if a seller is priced right and marketed effectively, they should achieve their asking price.

We also notice that these percentages are lower than one year ago. In 2018 these numbers were 5% to 10% higher in each market. This is good news for buyers of course because the bidding wars are not as intense as last year.

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

Where Are The Sales?

 

 

A high-level look at the Northern Colorado region shows that the number of residential sales is down 5.4% in Larimer County and up 4.7% in Weld County. This is simply comparing the number of closings from June 2018 to June 2019 versus June 2017 to June 2018.

 

The high-level look doesn’t tell the whole story. It get’s more interesting when we look at individual Northern Colorado cities and towns:

• Fort Collins = -8.8%
• Loveland = -5.7%
• Greeley = +11.7%
• Windsor = +16%
• Wellington = -16.9%
• Timnath = +44.1%
• Severance = +20.4%
• Johnstown = -18.7%
• Berthoud = +18.1%
• Evans = -14.7%

 

So, what can we learn from this? The areas with increased sales are where there is an abundance of new construction (Timnath and Severance for example).

The areas with decreased sales don’t have an abundance of new construction (Fort Collins for example).

The exceptions to this would be Wellington and Johnstown. It appears that there is price sensitivity to the new construction product now being built in these areas. Given rising costs, builders are challenged to deliver a product under $350,000 in these places.

For instance, in Wellington, between June 2017 and June 2018 there were 137 sales of new homes priced under $350,000. Today there are only 6 new homes on the market at that price point.

The post Where Are The Sales? appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

Down Again

Mortgage rates dropped again for the fourth week in a row.

The average 30-year rate is now 4.06% which is the lowest it has been all year.

Rates today are actually the lowest they have been since early 2018.

The main factor driving rates down is the trade war with China.

Investors are shifting money from stocks into bonds which causes the yield on the 10-year Treasury to drop.

Mortgage rates are closely aligned with the 10-year Treasury.

At the beginning of the year, most experts believed that 2019 would have a trend of increasing mortgage rates eventually reaching 5.5%.

Instead, the opposite has happened which is good news for real estate.

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