Almost there

We’ve been waiting for June to catch up.  It finally happened (almost).

 

Back in April, real estate activity was significantly limited and the showing of property was restricted which caused the number of closed properties in May and early June to be much lower than last year.

 

Bottom line, fewer properties going under contract in April caused fewer closings 30 to 45 days later.

 

Closed properties in May were down compared to 2019 by 44% in Northern Colorado and 43% in Metro Denver.

 

Then activity jumped significantly in May.  The number of properties going under contract was way up compared to last year.

 

We’ve been wondering when we would see this sales activity reflected in the number of closed properties.

 

Well, it finally happened (almost).

 

The number of closings so far in June compared to the same time period through June of 2019 is only down 1.8% in Northern Colorado and 1.6% in Metro Denver.

 

In both markets, there are only a handful of closings separating activity in June 2020 versus June 2019.

 

By the end of the month, when all the transactions are tallied up, we expect that June of this year will out pace June of last year in terms of number of transactions.

 

This is significant not only because of COVID-19, but also because of the reduced inventory compared to last year.  Quite simply, there are fewer homes to buy.

 

All of this speaks to the health and resiliency of the Front Range market.

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

POSTED ON JUNE 26, 2020 AT 9:10 AM
FORT COLLINS | CATEGORY: BLOG, FUN FACTS, WINDERMERE REAL ESTATE | TAGGED , , , , , , , , , , , , ,

Posted on June 26, 2020 at 4:50 pm
Maria Dellota | Posted in Colorado, Economics, Fort Collins Real Estate, Fun Facts, Northern Colorado Real Estate |

Affordability

Here’s some interesting research on affordability…

Each quarter the National Association of Home Builders measures affordability in hundreds of markets across the Country.

Their method is to count the number of homes in a market that could be purchased with that particular market’s median income.

For example, San Francisco is the least-affordable market where only 8.4% of the homes could be purchased with their median income.

The most-affordable is Monroe, Michigan where 95.3% of the homes could be purchased with their median income.

Guess where all of the 10 least-affordable markets are.  California!

Guess where almost all of the 10 most-affordable markets are.  The rust belt (cities in Michigan, Ohio, upstate New York, etc.)

The U.S. average is 63.6%.

Metro Denver comes in at 55.3% and Northern Colorado at 54.5%.

So, roughly half of the homes in our market could be purchased with our local median income.

 


Posted on January 31, 2020 at 4:44 pm
Maria Dellota | Posted in Colorado, Economics, Fun Facts, Housing Trends, Windermere Real Estate |

Rate Forecast

Our Chief Economist, Matthew Gardner, predicts that rates for a 30-year fixed mortgage will stay between 3.8% and 3.9% for 2020.

He doesn’t see rates going above 4.0% until at least the first quarter of 2021.

This is obviously great news for buyers as their payments will stay much lower as compared to having a rate at the long-term average of 7.5%.

If you would like to see the slides from Matthew Gardner’s Forecast presentation, we would be happy to get those in your hands.  Just let us know if we can help!


Posted on January 24, 2020 at 4:15 pm
Maria Dellota | Posted in Economics, Fort Collins Real Estate, Fun Facts, Northern Colorado Real Estate, Windermere Real Estate | Tagged , , , , ,

Colorado Real Estate Market Update

ECONOMIC OVERVIEW

Colorado added 45,800 non-agricultural jobs over the past 12 months, a growth rate of 1.8%. Within the metropolitan market areas included in this report, annual employment growth was seen in all areas other than Grand Junction (where employment was stable) with substantial growth seen in Fort Collins (4.6%) and Greeley (3.5%).

In August, the unemployment rate in the state was 2.2%, down from 3.1% a year ago. The lowest reported unemployment rates were again seen in Fort Collins at just 1.8%. The highest rate was in Grand Junction, at a very respectable 3.0%. It is still reasonable to assume that all the markets contained within this report will see above-average wage growth given the very tight labor market.

HOME SALES ACTIVITY

  • There were 17,140 home sales during the third quarter of 2017, which was a drop of 3.3% from the same period in 2016.
  • Sales rose the fastest in Boulder County, which saw sales grow 4% more than the third quarter of 2016. There were marginal increases in Weld and Larimer Counties. Sales fell in all the other counties contained within this report.
  • Home sales slowed due to very low levels of available inventory. Listing activity continues to trend at well below historic averages, with the total number of homes for sale in the third quarter 5.5% below the level seen a year ago.
  • The takeaway here is that sales growth has stalled due to the lack of homes for sale.

HOME PRICES

  • With substantial competition for the few available homes, prices continue to rise. Average prices were up 7.5% year-over-year to a regional average of $428,602.
  • Slower appreciation in home values was again seen in Boulder County, but the trend is still positive.
  • Appreciation was strongest in Weld County, which saw prices rise 12%.
  • Due to an ongoing imbalance between supply and demand, home prices will continue to appreciate at above-average rates for the foreseeable future.

 

DAYS ON MARKET

  • The average number of days it took to sell a home dropped by one day when compared to the third quarter of 2016.
  • Homes in all counties contained in this report took less than a month to sell. Adams County continues to stand out as it took an average of just two weeks to sell a home there.
  • During the third quarter, it took an average of 20 days to sell a home. This is up by 3 days compared to the second quarter of this year.
  • Demand remains strong, and well-positioned, well-priced homes continue to sell very quickly.

CONCLUSIONS

This speedometer reflects the state of the region’s housing market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

In the third quarter of 2017, I have chosen to leave the needle where it was in the second quarter. Homes are still scarce; however, there is a small slowdown in price growth and a decline in both closed and pending sales. This may suggest the market is either getting weary of all the competition or that would-be buyers are possibly putting off buying until they see more choices in the number of homes for sale.

 

Matthew Gardner is the Chief Economist for Windermere Real Estate, specializing in residential market analysis, commercial/industrial market analysis, financial analysis, and land use and regional economics. He is the former Principal of Gardner Economics, and has more than 30 years of professional experience both in the U.S. and U.K.

 

 

 

If you are in the market to buy or sell, we can connect you with an experienced agent here.


Posted on November 14, 2017 at 8:28 pm
Maria Dellota | Posted in Economics, Northern Colorado Real Estate | Tagged , ,