On Sale

30-year mortgage rates now sit at 3.3%.

This is less than half of the long-term, 40-year average.

This is also almost a full percentage point lower than they were one year ago (which was still very low).

Let’s put this in real numbers.

A $300,000 loan at today’s rates has a $1,313 monthly principal and interest payment.

One year ago, that same loan would be $1,432 per month.

That’s a 8.3% difference in monthly payment.

The fact that money is on sale is one of many reasons that the housing market remains very strong right now.

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 May 29, 2020 at 7:58 pm
Rondi duPont | Posted in Fun Facts, Mortgage | Tagged , , ,

Faster

Here’s something true about today’s market.  Properties are selling fast.

Compared to one year ago, the number of days it takes for a property to sell is significantly lower.

The industry term is “Days on Market” or DOM.

DOM is way down.

Here is the comparison of May 2020 versus May 2019:

  • Metro Denver down 22%
  • Larimer County down 19%
  • Weld County down 16%

Initially, this may seem counter-intuitive.  How could homes be selling faster in today’s environment?

Here’s the deal.  The buyers and sellers who are active in today’s market are serious.

There really aren’t ‘tire-kicker’ buyers out looking at properties just for the fun of it.

There really aren’t sellers testing the market to ‘see what they can get.’

For the most part, buyers and sellers are on a specific mission and this mindset is showing up in the numbers.

For sellers especially, this is no time to test the market and be overly aggressive on price.

Properties that are priced right and in good condition are selling and often selling fast.

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 May 22, 2020 at 7:36 pm
Rondi duPont | Posted in Fun Facts | Tagged , , , ,

Pent Up Demand

There was clearly a pent-up real estate demand created during the recent time when in-person showings were not allowed.  The numbers back it up.

First, a little background.  During a portion of “Shelter in Place,” all in-person viewing of properties ceased.  Instead, buyers spent time online viewing virtual tours and 3-D photography.

Even though clients could view homes virtually, purchase activity did slow down.

Today, showings are allowed again as long as clear protocols are followed.  We’ve implemented a Safe Showings program to keep our clients protected.

Now, to the numbers.

Through the first two weeks of May 2020, the number of closed properties is down compared to the same time period in 2019.

In most cases these closed properties are a result of purchase agreements that were written in April- a time when in-person showings were restricted.

So, a decrease in closings was expected.

However, the number of new written contracts so far this month is up considerably compared to the same time frame last year.

Specifically,

  • Metro Denver closed properties down 47%
  • Metro Denver new contracts up 6%
  • Northern Colorado closed properties down 41%
  • Northern Colorado new contracts up 19%

So, buyer activity is up compared to last year, even in our current environment.

This speaks to the resiliency of our market and the effect of low interest rates.

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 May 15, 2020 at 5:42 pm
Rondi duPont | Posted in Fun Facts, Market News | Tagged , , , , , , , ,

Another Meltdown?

This week our Chief Economist took a deep dive into the numbers to examine the current health crisis versus the housing crisis of 2008.

The reason why?  People wonder if we are going to have another housing meltdown nationally and going to see foreclosures and short sales dramatically increase.

It turns out that the numbers show that today’s housing environment is quite different than 2007, right before the housing bubble burst.

Specifically, homeowners are in a vastly different situation with their mortgage compared to the pre-Great Recession’s housing meltdown.

In addition to much higher credit scores and much higher amounts of equity compared to 2007, the most significant difference today is in the amount of ARM mortgages.

Back in years leading up to the housing bubble, Adjustable Rate Mortgages were very prevalent.  In 2007 there were just under 13 million active adjustable rate loans, today there are just over 3 million.

The number of those ARMs that would reset within three years was 5 million in 2007 compared to only 320,000 today.

It’s those Adjustable Rate loans resetting to a higher monthly payment that caused such a big part of the housing crisis back in 2008 to 2010.

Back then not only was people’s employment impacted, but many were facing increased monthly mortgage payments.

That’s why there were so many foreclosures and short sales in 2008 to 2010.

That is not the case today and one of many reasons why we don’t foresee a housing meltdown.


Posted on May 1, 2020 at 9:14 pm
Rondi duPont | Posted in Economics 101, Fun Facts | Tagged , , ,

Why No Crash

This week we hosted our clients and friends for a special online event with our Chief Economist Matthew Gardner.

Matthew talked about a variety of topics that are on people’s mind right now including home values.

Matthew sees no evidence that home values will crash and actually sees signs that they may rise this year nationally.

Here’s why he says this:

  • Mortgage rates will remain under 3.5% for the rest of the year so there won’t be any interest-rate pressure on prices
  • Inventory, which was already at record-lows, will drop even further keeping the supply levels far below normal
  • New home construction will continue to be under-supplied and will be nothing like the over-supplied glut of inventory that we saw in 2008
  • The vast majority of employees being laid off and furloughed are renters
  • Homeowners have a tremendous amount of equity in their homes right now compared to 2008 which will prevent an influx of short sales and foreclosures

If you would like to receive a recording of the webinar we would be happy to send it to you.  Feel free to reach out and ask for the link.

At Windermere Real Estate we are taking Shelter in Place and Social Distancing very seriously.  Our people are working at home, staying connected to their clients, and providing help wherever needed.

 


Posted on April 24, 2020 at 5:50 pm
Rondi duPont | Posted in Economics 101, Fun Facts, Market News | Tagged , , , , , , ,

Special Event

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On Wednesday April 22nd you are invited to a special online event with Windermere’s Chief Economist Matthew Gardner.

He will be giving his insights into the U.S. economy and what that means for real estate along the Front Range of Colorado.

You will hear the answers to the biggest questions we are hearing from clients now like “do you think housing prices will crash?”

This event is exclusively for clients and friends of Windermere Real Estate. To receive the registration link simply comment on this blog or reach out to me.

Many of you have heard Matthew speak at our Market Forecast events we hold each year in January. He is famous for making complex economic dynamics very simple to understand.

You will get useful and valuable information which will give you clarity about where the market is headed and when we can expect the economy to improve.

For example Matthew predicts unemployment to hit 15% by the end of June, but then to improve to 8% by year-end and 6% by this time next year.

Again, if you would like the link just comment on this blog or reach out to me.

At Windermere Real Estate we are taking Shelter in Place and Social Distancing very seriously.  Our people are working at home, staying connected to their clients, and providing help wherever needed.

 


Posted on April 17, 2020 at 3:04 pm
Rondi duPont | Posted in Colorado Housing, Fun Facts | Tagged , , , , ,

Inventory Drop

An impact we expected from COVID-19 to the housing market is reduced inventory.  That prediction is certainly proving to be true.

In March, the number of withdrawn properties from the MLS went up 68% in Larimer County and 38% in Weld when compared to March 2019.

Reduced inventory is one reason why we don’t expect a significant drop in home prices in 2020.  We don’t see a glut of housing supply dragging prices down.

So how are properties being sold now?  Virtually!  We are helping people view homes using virtual 3D Tours and live online walk-throughs.

Our business right now is certainly not business as usual and our industry has proven to be resourceful so we can still help people with urgent real estate needs.

At Windermere Real Estate we are taking Shelter in Place and Social Distancing very seriously. Our people are working from home, staying connected to their clients, and providing help wherever needed.

 


Posted on April 10, 2020 at 8:05 pm
Rondi duPont | Posted in Fun Facts, Market News | Tagged , , , , , ,

Spectacular Two-Story Home in Loveland!

Fantastic 6 bed, 4 bath home at 3165 Tradewind Court in Loveland in Waterfront at Boyd Lake awaits. The 2 story home sits on over 1/3 of an acre, backing to open space with spectacular mountain views. As you enter the home, the grand entrance welcomes you with a formal sitting room and custom painted dining room. Move into the kitchen with a large island, stainless steel appliances and breakfast nook opening up to the family room with gas fireplace and study. When entertaining or wanting more elbow room, head to the finished basement boasting a beautiful wet bar and separate theatre room. Don’t forget this is the perfect community to enjoy the outdoors with private access to Boyd Lake, sandy beaches, parks and volleyball! Call for your private showing at (970) 401-0123 for more information or click the link below for more details.

http://windermerenoco.com/listing/107880092


Posted on March 31, 2020 at 10:06 pm
Rondi duPont | Posted in loveland real estate, Virtual Tours | Tagged , , , , , , , , , , , , , , , , , , ,

Spectacular Ranch Home is Stanton Bridge in Fort Collins!

Your new home awaits at 848 Terra View Circle in Fort Collins on over 3/4 acre lot. This beautiful home has been updated on the inside and outside. Freshly painted exterior and new roof gives this home amazing curb appeal. Enter the home to refinished wood floors, new carpet and fresh interior paint. The chef in the family will love to entertain in this kitchen with gorgeous granite countertops and backsplash, gas cooktop, double ovens and an island! The finished walkout basement boasts a full wet bar with refrigerator, electric cooktop, and dishwasher. Relax in front of two separate fireplaces in the home or tinker on your toys in the heated garage! Are you looking for a move in ready home with some elbow room? This is it! Check out the 3D Tour to walk through the home in detail! Call for your private showing at (970) 401-0123 for more information or click the link below for more details.

http://windermerenoco.com/listing/107279795


Posted on March 24, 2020 at 10:32 pm
Rondi duPont | Posted in Fort Collins Real Estate, Virtual Tours | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , ,

A History Lesson

With the stock market on a wild ride and the Dow Jones dropping nearly 1,000 points yesterday, it makes some people wonder if the local real estate market might also crash or at least “correct.”

A little history lesson is in order.

Over the last 40 years, the real estate market along the Front Range has averaged 5.5% appreciation per year.

The highest appreciation in one year was 15.9% in 1994.

The lowest ever was -4.0% in 1982.

The last time Wall Street was in turmoil and the stock market was plummeting was 2008.  This was, for many reasons, the worst economy of our lifetime.

That year real estate along the Front Range dropped 2.2%.

Meanwhile that year the Dow Jones fell 33.8%.

Bottom line, our market has no history of crashing or even experiencing a major correction.

Why is that?

The answer is fundamentals.

Our local economy has inherent fundamentals that insulate it from big downturns.

We have an incredibly diverse economy which is not reliant upon a single industry.  We have all the way from health care, to technology, agriculture, oil and gas, major universities, and financial services (just to name a few).

We are a global destination with a major international airport.

Oh, and the quality of life here isn’t too shabby.

Prices of real estate, just like prices of anything, come down to basic economic principles of supply and demand.

Because of our diverse economy and desirable quality of life, there has been strong, consistent demand for housing along the Front Range.

While there may be little bumps along the way, over the long term our market has proven that it performs.

 


Posted on March 6, 2020 at 8:24 pm
Rondi duPont | Posted in Fun Facts | Tagged ,