The Winner Is…
With the Olympics stoking the spirit of competition, we took at look at how Colorado stacks up against the other states when it comes to real estate prices.
Our impartial judge for the competition is the Federal Housing Finance Authority who tracks close to 300 real estate markets all over the country.
For this competition we are looking at home price appreciation over the last five years. Simply, how much have prices gone up for each state?
And the winner is… (not Colorado)
The winner is Nevada with a 68% increase in the last five years.
Here's the top 5:
1. Nevada 68%
2. Arizona 57%
3. California 54%
4. Florida 53%
5. Colorado 48%
Here's the deal about this list- other than Colorado, these are all the states that were hit hardest by the real estate downturn in 2008 & 2009. These states are still clawing their way out of the hole that was created. While Colorado continues to show a more steady pattern without the wild swings seen in other places.
Just for fun, contact us at firstname.lastname@example.org with your guess for the worst-performing state in the last 5 years. We will enter your name in a drawing for a $100 Gift Certificate to Jax Restaurant. You don't need to be right to win, you just need to guess!
In our upcoming September issue of the Windermere Report, we look at state-by-state performance over the last 25 years. We will give you a hint- Colorado did better than 5th place!
Door Opens for Buyers
After a very active (to say the least) spring and summer, the door has now opened for buyers in our market.
Buyers who were frustrated during the first half of the year with low inventory and bidding wars now realize a better environment. It's time to step off the sidelines and take a fresh look at what the market has to offer.
The first piece of good news is that rates have dropped to near all-time lows. Rates today are 0.6% lower than they were on January 1st. What this means on a $400,000 home with a conventional loan is a monthly savings of $110!
The second piece of good news is that inventory levels are coming up. There are more homes on the market to pick from and lower demand because of seasonal slowing. Months of inventory in Larimer County markets have bounced up 20% to 33%.
Now is a great time for buyers to step through the door that is opening in the market!
Contact me to get the latest insights on our market. Our quarterly market report called "The Scoop" will help you see where the opportunities are in Northern Colorado. Contact me and I will send you a copy right away!
August marks the end of the busy real estate selling season and the beginning of the traditional seasonal slowdown in our market.
The four months of April, May, June and July tend to produce 45% of the year's total sales. This is based on looking back at 5 years of data.
If 2016 holds true to form, the next five months from now until the end of the year will be progressively slower.
No surprise that December tends to be the slowest month with a third of the number of sales compared to a typical July.
Here's what we will be watching closely over the next few months – is this year's seasonal slowdown "normal", or, because the market has been so hot this year, is it breaking traditional trends.
We will be sure to keep you informed!
Contact me to find out what the low rates have done to the value of your home. I will put together an Equity Snapshot which will show you, in detail, what your home is worth in today's market. It's valuable information to have whether you are thinking of selling or not.
Money is On Sale
Imagine you paying the bank, instead of them paying you, to keep your money. (more on that in a minute).
Mortgage rates recently hit near all time lows. Today, rates are near 3.5%. The long-term average, going back 40 years, is near 7.5% So, essentially money today is on sale for half off!
This can be confusing because the U.S. economy is growing. Shouldn't rates go up as the economy gets better? Yes, but…
The global economy is weak right now. So weak in fact that 500 million people world-wide live in an environment of negative interest rates.
What that means is, instead of the bank paying the customer interest, the customer pays the bank to keep their money. The policy is designed to encourage people to take their money out of the bank and infuse it into the economy.
It's not clear yet if the policy is working in these countries, but here's the deal for us. Home buyers are benefiting in a big way. And, the low rates, along with a robust local economy, are fueling big home price gains which is obviously good for sellers.
The global economy is sure to turn around at some point and rates are sure to go up at some point. In the meantime, enjoy the money sale.
Contact me to find out what the low rates have done to the value of your home. I'll put together an Equity Snapshot which will show you, in detail, what your home is worth in today's market. It's valuable information to have whether you are thinking of selling or not.