More Powerful

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As the saying goes, Superman is more powerful than a steaming locomotive (and able to leap tall buildings in a single bound)!

In real estate, supply and demand is more powerful than interest rates (and able to push price appreciation year after year)!

The fact that prices keep rising in Northern Colorado, even though interest rates are over 7%, is because of one factor- supply and demand.

Supply and demand is most easily measured by months of inventory which considers how long it would take to sell the current inventory at the current pace of sales.

Larimer County has just over two months of supply. Weld County has just under two months.

Fundamentally, while months of inventory stays below four months, prices are pretty much guaranteed to keep going up.

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New Rankings

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The latest Home Price Index report has just been released by the Federal Housing Finance Authority.

They track home price appreciation for the largest metropolitan areas in the U.S. plus state by state appreciation.

Here is the ranking of the top three states for price growth over the last twelve months:

1.  Florida = 29%

2.  Arizona = 26%

3.  North Carolina = 25%

The bottom three states are:

50.  North Dakota = 10%

49.  Louisiana = 11%

48.  Minnesotta = 11%

Colorado came in at #19 with 18% price growth over the last 12 months.

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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.

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Latest Ranking

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CoreLogic produces one of the most respected and widely-used home price index reports in the United States.

They track home price appreciation in the largest markets across the Country.

Here are the highlights from their most recent report:

  • Home prices are up 9.2% Nationally
  • This is the highest increase since February, 2014
  • Denver ranks fourth among the largest 10 cities
  • Denver’s appreciation was 8.8% over the last year
  • Phoenix was first at 13.7%

 

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

Latest Ranking

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

CoreLogic produces one of the most respected and widely-used home price index reports in the United States.

They track home price appreciation in the largest markets across the Country.

Here are the highlights from their most recent report:

  • Home prices are up 9.2% Nationally
  • This is the highest increase since February, 2014
  • Denver ranks fourth among the largest 10 cities
  • Denver’s appreciation was 8.8% over the last year
  • Phoenix was first at 13.7%

 

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

Our Forecast

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This past Wednesday and Thursday evenings we had the pleasure of hosting our annual Market Forecast events in Denver and Fort Collins.

Thank you to the 700 people who attended. We appreciate your support!

In case you missed the events, here are some highlights including our forecast for price appreciation in 2019:
• In 2018 Prices went up:
o 8% in Fort Collins
o 8% in Loveland
o 8.5% in Greeley
o 8% in Metro Denver

• Inventory is (finally) showing signs of increasing:
o Up 25% in Northern Colorado
o Up 45% in Metro Denver

• There are distinct differences in months of inventory across different price ranges = opportunity for the move up buyer.

• There are several reasons why we don’t see a housing bubble forming:
o New home starts along the Front Range are roughly 60% of pre-bubble highs 14 years ago.
o Americans have more equity in their homes than ever, $6 Trillion!
o The average FICO score of home buyers is significantly higher than the long-term average.
o The home ownership rate is back to the long-term average.

• Our 2019 Price Appreciation Forecast:
o 6% in Fort Collins
o 6% in Loveland
o 7% in Greeley
o 6% in Metro Denver

If you would like a copy of the presentation, go ahead and reach out to us. We would be happy to put it in your hands!

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