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Should You Wait or Buy Now?
The housing market is remarkably tight across the U.S., and you may be wondering if you should wait for home prices to slow before making your move. Windermere’s Chief Economist, Matthew Gardner, shares why waiting could end up costing you more money in the long run.
Should You Wait out the Housing Market?
The housing market is remarkably tight across the U.S., and you may be wondering if you should wait for home prices to slow before making your move. Windermere's Chief Economist, Matthew Gardner, shares why waiting could end up costing you more money in the long run.
Posted by Windermere Real Estate on Friday, August 18, 2017
Gardner Report – Market Analysis
Signs of Slowing?
An article in last week’s Denver Post about the Metro Denver market cooling off has prompted questions from our clients.
Is the same thing happening in Northern Colorado?
Are the Larimer and Weld County markets showing signs of slowing?
Here’s the deal…
The Denver Post article points to the difference in number of transactions between June and July of this year. It’s no surprise to us that July had fewer closings.
What’s true in Metro Denver is also true in Northern Colorado – June tends to have more closings than any other month during the year so of course July will be slower.
What we do notice when we look at the numbers is that the difference between June and July is significant.
In all major markets in Northern Colorado, the difference between June and July is the greatest it has ever been in the last four years.
For example, in Fort Collins, July had 18% fewer closings than June. Whereas last year the difference was 9%. In Greeley the difference this year was 16% while last year was only 5%.
A month over month difference does not necessarily indicate a long-term trend. However, there is a difference compared to last year which should be welcome news to buyers who have been waiting for a slow down.
We have just completed a comprehensive report for anyone thinking about selling their home.
The Insider’s Guide to Selling Your Home (without any stress or surprises) is now available for you.
It is hot off the press and you can request a copy by emailing rdupont@windermere.com
Contact me to get your copy immediately so you can see everything you need to know to sell your home in today’s market.
The Wellington Explosion
What if we told you there is a real estate market that has seen a 300% increase in sales volume in only 5 years?
What if we told you that market was right in our back yard?
The market is Wellington and what is happening there is extraordinary.
Because price increases in Fort Collins have eliminated virtually all options for the sub $300,000 buyer, Wellington has become a very popular place to buy a home.
In June of 2012, the average price there was $185,000. Today it is $300,500!
In 2012 there were 222 residential sales in Wellington. This year is on pace to ecliplse 500.
Yes, Wellington has exploded and we don’t see it slowing down any time soon!
Fun facts about Wellington:
A History Lesson
The national homeownership rate is a very interesting statistic to track. It is simply the percentage of households in the country which are owned by the occupant (versus rented).
Now What?
The Federal Reserve raised their benchmark interest rate 0.25% this week.
So what does this mean for real estate?
Some perspective is in order…
First, mortgage rates are not directly tied to the Fed Funds rate. They are, however, closely tied to the 10-year Treasury.
While the Fed was raising their rates this week, mortgage rates actually dipped lower (although slightly).
Mortgage rates today on a 30-year loan are essentially 4.25%.
The long term average for mortage rates, going all the way back to 1970 is 7.5%
For every 1% rise in rates, there is a corresponding 10% impact to the monthly payment.
Mortgage rates have increased about 0.75% since the election.
Most economists expect rates to increase another 0.5% by year-end.
I am watching mortgage rates closely and will continue to keep my customers updated as to where the experts think they are heading.
The Results Are In!
You’ve probably heard that prices are up in Northern Colorado
Another source just confirmed this.
The Federal Housing Finance Authority recently released their quarterly report on 260 metropolitan markets across the country.
Get this, Colorado has 4 cities ranked in the top 15 for yearly price growth.
Northern Colorado is well-represented on this list.
- 11th Fort Collins/Loveland
- 12th Greeley
- 15th Boulder
By the way, Denver is 14th. And in case you are wondering, Palm Bay Florida is ranked 1st.
All of the Northern Colorado cities have had just over 10% appreciation in the last year meaning that prices are growing at about double the long-term average.
To receive a copy of the full FHFA report, simply email me at rdupont@windermere.com and I will get one in your hands right away.
Our Crystal Ball
Last week Windermere’s Chief Economist Matthew Gardner joined us for our annual Market Forecast events in Colorado. We were pleased to
host over 500 customers at two events in Denver and Fort Collins.
Here are some of the big takeaways that we shared:
