Above Water

by Heather Patel

A dynamic that gives us even more confidence about the housing market is the amount of equity that homeowners have in their property.

Equity is of course the difference between the value of the property and the amount that is owed against it.

In Larimer County, 53% of homeowners have at least 50% equity in their homes. In Weld County, the number is 38%.

It is interesting to note that Nationally, only 1.8% of homeowners are ‘underwater,’ meaning that the value is lower than what is owed against the property.

In 2009, 26% of homeowners were underwater.

Buyers & Sellers • Colorado Housing • Economics 101 • Housing Trends • Market News • Market Trends • Windermere Real Estate • February 2, 2024

Forecast Takeaways

by Heather Patel

Here are some of the big takeaways from our annual Market Forecast with Economist Matthew Gardner:

Interest rates will continue to trend down during the year and reach 6.08% by the end of 2024.
Home prices will have another year of modest gains increasing 2.0% to 2.5% in Northern Colorado
53% of homeowners in Larimer County and 38% of homeowners in Weld County are “Equity Rich” meaning that they have at least 50% equity in their homes.
Inventory levels will increase in 2024 but will remain below normal which protects prices from any sort of major decline

To receive a copy of the full slide deck from the Forecast, feel free to reach out to us!

Loveland Real Estate • Virtual Tours • February 1, 2024

Spacious and Well-Maintained Loveland Townhome

by Heather Patel

Nestled in the scenic landscape of Loveland, this meticulously cared for 2-bedroom, 3-bathroom Townhome lives spaciously among its three levels. Upon entry, be greeted by a bright open layout, leading into your recently updated kitchen. The kitchen showcases Blue Pearl granite countertops, stainless steel appliances, and two pantries. Retreat to the master suite, complete with not one but two closets and a large en-suite bathroom with a soaking tub and a separate shower. The upper level is finished off with an additional bedroom, full bathroom and loft space that would make a great home office, playroom, or library – whatever caters to your unique lifestyle. An attached and OVERSIZED 2-car garage ensures your cars are protected and storage or hobby needs are well met. Ceiling fans have thoughtfully been installed in each room to provide efficient cooling and comfort. The main level received a fresh coat of paint in December 2022, while the upper level was treated to a new paint job in September 2023, ensuring a pristine and welcoming environment. The exterior of the home was freshly painted in the summer of 2023, enhancing curb appeal, and protecting your investment. Don’t miss this opportunity to reside in a community that is both serene and vibrant. The nearby park, walking trails, and frequent community events ensure there’s always something to look forward to. 3230 Springfield Dr. is more than just a house; it’s a place to craft lasting memories. Call (970) 214-9479 to schedule your personalized tour today or click here for more information.

Buyers • Home Pricing • Market News • Market Trends • Sellers • Windermere Real Estate • November 21, 2023

Highly Active

by Heather Patel

In addition to tracking the average price for sold properties, it is also interesting to track the average price for active properties.

Asking prices are up across all markets when compared to the same time last year.

Here are the average list prices for residential properties along the Front Range:

Larimer County = $893,000 (8% higher than last year)
Weld County = $702,000 (6% higher than last year)
Metro Denver = $847,000 (5% higher than last year)

These asking prices are higher than average sales prices by approximately 30%. This is because there are many high-end properties on the market which take longer to sell and which pull up the average.

Fun Facts • Mortgage • Sellers • Windermere Real Estate • November 17, 2023

Net Worth Surge

by Heather Patel

Net worth surged for American families during the pandemic era, largely because of increased home values based on the Federal Reserve’s Survey of Consumer Finances.

Net worth is a measure of household assets after accounting for liabilities. After accounting for inflation, median net worth jumped to $192,900, a 37% increase from 2019-22, the Fed found.

That percentage growth was the largest since the Fed started its modern survey in 1989. It was also more than double the next-largest increase on record. Between 2004 and 2007 real median net worth rose 18%.

Colorado Housing • Fun Facts • Market Trends • November 14, 2023

Holding Steady

by Heather Patel

Despite a significant increase in the supply of apartments, rental rates are holding steady.

New research from Realtor.com shows that lease rates in the largest U.S. cities are down just 0.7% even though completions of apartment buildings are up 15% since 2022.

Denver’s average apartment lease rate decreased only 1.0% year over year and now stands at $1957 per month.

Buyers & Sellers • Fun Facts • Mortgage • Windermere Real Estate • November 10, 2023

A Rate-Induced Pop

by Heather Patel

The recent drop in mortgage rates triggered a measurable uptick in sales activity.

So far through the first 10 days of November, pending activity in Northern Colorado is up versus the same 10 days last year.

This is despite interest rates being higher than they were last year.

Mortgage rates just had their biggest one-week drop in over a year and buyers clearly responded.

Pending sales through November so far are up versus last year:

48% in Larimer County

20% in Weld County

Buyers & Sellers • Colorado Housing • Fort Collins Real Estate • Market News • Windermere Real Estate • November 3, 2023

MOI is Still LOW

by Heather Patel

Despite decreased buyer activity driven by normal seasonal patterns plus higher interest rates, the key stat of Months of Inventory continues to stay relatively low.

Months of Inventory (MOI) is the simple measurement of how long it would take to sell the current inventory of homes for sale at the current pace of sales.

Along the Front Range, this stat ranges from roughly 2 ½ months to just over 3. A market is considered ‘balanced’ when there is 4 to 6 months of inventory for sale.

Here are the specific numbers for Front Range markets:

Larimer County = 3.1 Months

Weld County = 2.7 Months

Metro Denver = 2.4 Months

Buyers & Sellers • Housing Trends • Market Trends • Sellers • Windermere Real Estate • October 13, 2023

The Price is Right

by Heather Patel

This is an interesting and important time of year for current home sellers.

Thanksgiving is approximately 45 days away which is an important deadline for home buyers.

Many buyers who are considering a move this time of year would like to close on a home before Thanksgiving.

Current home sellers have a one to two week window to have their property under contract so a buyer can close by the Thanksgiving deadline.

Activity always slows in the winter and typically doesn’t show a noticeable increase until March.

So, proper pricing is paramount today so that sellers can take advantage of the seasonal window which is closing soon.

Buyers & Sellers • Fort Collins Real Estate • Housing Trends • Market News • October 10, 2023

Increasing Reductions

by Heather Patel

More and more sellers are having to reduce their listing price.

Nationally, 37% of all home sellers have recently had a listing price reduction. This is according to a recent report from Altos Research.

This is up from 30% in May and is now at the second-highest level since 2018. The highest it has been in the last five years is November 2022 when it stood at 41%.

A “normal” range is between 25% and 30%. Today’s number is a result of softening demand based on higher interest rates.

Proper pricing is always important for a seller and is especially so now as we enter a typically slower time of the year with added challenges related to interest rates.