15-Year Mortgages

Interest rates have leveled off at around 7% over the last couple of months. Interestingly, the 15-year mortgage is a more reasonable 6.375% right now.

If you are looking for a lower rate and are willing to pay a higher monthly payment, this may be a good option.

The other benefit of a 15-year mortgage is that more of your payment is going toward the principal of your loan. So, on a $400,000 loan, you would reduce your principal loan amount by $16,500 in the first year of your loan.

This compares to a reduction of only $4,000 on a 30-year mortgage during that same period. If you can swing the higher payment, this may be the way to go.

The post 15-Year Mortgages appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

15-Year Mortgages

Interest rates have leveled off at around 7% over the last couple of months. Interestingly, the 15-year mortgage is a more reasonable 6.375% right now.

If you are looking for a lower rate and are willing to pay a higher monthly payment, this may be a good option.

The other benefit of a 15-year mortgage is that more of your payment is going toward the principal of your loan. So, on a $400,000 loan, you would reduce your principal loan amount by $16,500 in the first year of your loan.

This compares to a reduction of only $4,000 on a 30-year mortgage during that same period. If you can swing the higher payment, this may be the way to go.

The post 15-Year Mortgages appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

Staying Steady

Because mortgage rates have not decreased yet this year, many are wondering what that means for Northern Colorado home sales.

Transaction count is staying relatively steady compared to 2023.

Total sales year to date are down slightly (6%) versus last year.

At this point in 2023, there were a total of 1434 closings in Northern Colorado.  This year there have been 1350 – 84 fewer.

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

Staying Steady

Because mortgage rates have not decreased yet this year, many are wondering what that means for Northern Colorado home sales.

Transaction count is staying relatively steady compared to 2023.

Total sales year to date are down slightly (6%) versus last year.

At this point in 2023, there were a total of 1434 closings in Northern Colorado.  This year there have been 1350 – 84 fewer.

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

Seller Beware

As interest rates have gone up, buyers’ tolerance has gone down.

Generally speaking, the mindset of buyers now is dramatically different from two to three years ago.

Buyers used to be more open-minded and flexible and now that has changed.

Higher rates have caused them to be far less tolerant of:

  • Aggressive pricing
  • Wear and tear
  • Properties in need of updates
  • Properties not staged
  • Defects and bad odors
  • Unsightly neighboring properties

Essentially, buyers are saying “If I am going to pay a higher interest rate, the property needs to be fairly priced and in very good condition.”

Sellers who are not aware of this dynamic, are the ones who have properties sitting on the market for excessive time.

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

Seller Beware

As interest rates have gone up, buyers’ tolerance has gone down.

Generally speaking, the mindset of buyers now is dramatically different from two to three years ago.

Buyers used to be more open-minded and flexible and now that has changed.

Higher rates have caused them to be far less tolerant of:

  • Aggressive pricing
  • Wear and tear
  • Properties in need of updates
  • Properties not staged
  • Defects and bad odors
  • Unsightly neighboring properties

Essentially, buyers are saying “If I am going to pay a higher interest rate, the property needs to be fairly priced and in very good condition.”

Sellers who are not aware of this dynamic, are the ones who have properties sitting on the market for excessive time.

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

Out of the Gates

How is the year starting? All of us in the real estate industry are especially curious to see how 2024 is starting off after the first slow real estate year in a long time.

Rates have settled down and are trending down.

Prices have shown resilience and continue to go up.

But, how about transactions? Are they picking up after a year that saw an 18% decline in the number of closed residential properties?

It turns out the year is starting off strong but not unusually strong.

Pending transactions are up in Larimer County 7% year over year and up 3% in Weld County.

So, we are already seeing signs that 2024 will be a year of growth compared to last year.

The post Out of the Gates appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

No Drop

The numbers are in and it turns out that not even 8% rates could make prices drop in 2023.

When mortgage rates jumped this last year, many people believed that home values would fall as a result.

The fact that prices stayed flat in 2023 even though interest rates doubled between March 2022 and October 2023, shows that values along the Front Range are incredibly resilient.

Here are the 2023 average prices along the Front Range and their change compared to 2022:

Larimer County:  $621,538 / 1%

Weld County:  $527,600 / 1%

Metro Denver:  $679,710 / 0%

The post No Drop appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

No Drop

The numbers are in and it turns out that not even 8% rates could make prices drop in 2023.

When mortgage rates jumped this last year, many people believed that home values would fall as a result.

The fact that prices stayed flat in 2023 even though interest rates doubled between March 2022 and October 2023, shows that values along the Front Range are incredibly resilient.

Here are the 2023 average prices along the Front Range and their change compared to 2022:

Larimer County:  $621,538 / 1%

Weld County:  $527,600 / 1%

Metro Denver:  $679,710 / 0%

The post No Drop appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

Price Plummet

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.

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