Windermere Principal Economist Jeff Tucker analyzes the National Association of REALTORS’ September U.S. home sales report, what the findings say about the current housing market, and why mortgage rates have been rising in recent weeks.
The post Friday Fun Facts – Have We Reached a Balanced Market? appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.
Have you ever wondered how much all of the residential real estate in the U.S. is worth?
It’s $44.5 trillion.
That’s 44 with 12 zeroes after it.
This data comes from the Federal Reserve’s Quarterly “Z.1” report.
The total valuation increased by $2.4 Trillion over the last quarter and is essentially flat compared to one year ago.
In total, liabilities on residential properties (mortgages, equity loans, etc.) is $12.9 trillion.
So, collectively, residential property owners in the U.S. have a 71% equity share and owe 29% of the value.
The post $44 Trillion appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.
Have you ever wondered how much all of the residential real estate in the U.S. is worth?
It’s $44.5 trillion.
That’s 44 with 12 zeroes after it.
This data comes from the Federal Reserve’s Quarterly “Z.1” report.
The total valuation increased by $2.4 Trillion over the last quarter and is essentially flat compared to one year ago.
In total, liabilities on residential properties (mortgages, equity loans, etc.) is $12.9 trillion.
So, collectively, residential property owners in the U.S. have a 71% equity share and owe 29% of the value.
The post $44 Trillion appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.
There is a new type of change to be prepared for.
One interesting way to track the market is to measure the year-over-year difference in inventory.
Quite simply, this looks at how many homes are available today versus the same time one year ago.
For the past several months in a row, the difference as measured by percentage change, has been significant.
That is because inventory levels between May of 2020 and May of 2022 were rock-bottom low.
For example, inventory in March of this year was up over 120% compared to March 2022.
When measured against historical numbers, inventory in the first half of this year is incredibly low. But, when measured against the first half of 2022, inventory is significantly higher.
Well, that is about to change because inventory increased in June and July of 2022.
So, now when we look at inventory levels versus a year ago, the percentage change will be more modest.
For example, Northern Colorado inventory today is up only 8% compared to one year ago.
The post A New Change appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.
During a time of varying opinions and heavy speculation about the Front Range real estate market, let’s see what the actual numbers are telling us:
Inventory is up significantly year over year:
However, supply is still low as measured by months of inventory:
Transaction count is down as the pace of sales is slowing:
Yet, average prices are still up versus last year:
The post What the Numbers Say appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.
During a time of varying opinions and heavy speculation about the Front Range real estate market, let’s see what the actual numbers are telling us:
Inventory is up significantly year over year:
However, supply is still low as measured by months of inventory:
Transaction count is down as the pace of sales is slowing:
Yet, average prices are still up versus last year:
The post What the Numbers Say appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.
Given the recent increase in mortgage interest rates, we think a little perspective is in order.
Bottom line, while the increase in rates is challenging for active buyers, rates are still incredibly low historically speaking.
The post Rate Perspective appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.
The new CoreLogic Homeowner Equity Insights report shows that homeowners in the U.S. have seen their equity increase by a total of $3.2 trillion over the last 12 months.
Their data shows that 63% of all homes have a mortgage.
On average, U.S. homeowners gained $55,000 while the average increase in Colorado was higher at $75,000.
The other piece of good news from the report is that properties with negative equity reached the lowest amount in several years.
Only 2.1% of all properties across the U.S. have a value lower than the mortgaged amount. Negative equity peaked at 26% of all mortgaged properties back in 2009.
The post 3.2 Trillion appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.
Townhome construction has surged in the last 12 months. This is welcome news for first-time buyers who benefit from the lower prices that multi-family product tends to provide.
According to the National Association of Home Builders, townhome construction has jumped up 28% compared to the previous year.
Townhomes now represent 13% of all new residential construction starts.
The post Townhome Surge appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.
This week, for the first time in 32 months, mortgage rates hit 4%.
While this increase may feel painful for buyers currently looking at property, it is important to put today’s rates in perspective.
We believe we will look back a few years from now and see that a 4% rate was like buying money at a discount.
Interest rates hovered between 4.5% and 3.75% for the 8-year span of June, 2011 to June 2018
Between January, 2000 and December, 2010 rates were as high as 8.25% and as low as 5.0%.
When looking at the history of interest rates and researching economists’ forecasts, we believe it is reasonable for rates to hit 5% within the next 24 months.
When interest rates increase 1%, a buyer’s monthly payment increases 10%.
So, if rates do go to 5%, it is like an additional 10% price increase for a buyer.
Given all of this information, we believe the biggest risk to a buyer in today’s market is to wait.
Mortgage rates are likely on their way up and there is an opportunity to buy money at a discount today.
The post Money at a Discount appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.
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