Economics 101 • Fun Facts • May 1, 2020

Another Meltdown?

by Rondi duPont

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.

Colorado Housing • Fun Facts • April 17, 2020

Special Event

by Rondi duPont

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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.

Blog • Fun Facts • December 19, 2019

All Time High

by Rondi duPont

Home Builder’s confidence in Baby Boomer buyers is at an all time high.

The National Association of Home Builders (NAHB) surveys their members each quarter to discover what they expect of future sales.

The builders base a large part of their answer on how many people are visiting their sales centers and model homes versus the same time last year.

The results in their most recent survey show that builders have never been more confident about buyers who are 55 and older.

The confidence index for this age group is actually double of what it was in 2012. The NAHB sites low interest rates and strong job growth as the reasons for the high confidence.

Blog • Fun Facts • December 6, 2019

County by County

by Rondi duPont

Metrostudy, who in our opinion is the leader in new home research, recently did a study on the average price of a new home in each of the Front Range Counties.

Here are some interesting takeaways…

If you want to find the least expensive new home on the Front Range, the places to look are Weld County and El Paso County.

· Weld County Average New Home Price = $411,269

· El Paso County Average New Home Price = $427,361

The most expensive place for a new home is in Boulder County (no surprise) at $698,208.

Jefferson County has the largest difference between the average price of a new home and the average price of a resale home: $664,600 vs. $510,003.

Here’s the County by County breakdown of the average price of a new single-family home:

· Boulder = $698,208

· Jefferson = $664,600

· Douglas = $624,315

· Broomfield = $612,779

· Denver = $581,480

· Arapahoe = $545,943

· Larimer = $507,105

· Adams = $480,464

· El Paso = $427,361

· Weld = $411,269

Blog • Fun Facts • November 1, 2019

Time for New

by Rondi duPont

Here is a fact…

If you have ever thought about owning a new home, the last two months of the year are usually the best time to make that happen.

Here’s why…

Many builders have year-end goals and sales quotas to hit. If they have a “standing inventory” of homes that are completed but not sold, they are typically motivated to sell these homes by the end of the year.

This dynamic can be especially true for publicly-traded builders who are even more motivated to hit year-end sales numbers.

Up and down the Front Range there are beautiful new homes in fantastic neighborhoods. The builders of these homes may be happy to make concessions and provide incentives as long as you close by year-end.

We just recently helped a buyer with a very compelling incentive package from a builder which included a lower price, additional landscaping and window coverings.

If you would like more details about these kinds of opportunities, reach out and I can help.

Blog • Fun Facts • October 25, 2019

Most Active

by Rondi duPont

What is the most active price range in Northern Colorado? Take a guess…

$300,000 to $400,000
$400,000 to $500,000
$500,000 to $750,000
$750,000 and above

By far, the most active price range is $300,000 to $400,000 with 60% more closed transactions than the $400,000 to $500,000 range and 400% more than homes priced $750,000 and above.

However, this lower price range does not have the most inventory. The price range with the greatest selection of homes is $500,000 to $750,000.

Blog • Fun Facts • October 14, 2019

Net Worth

by Rondi duPont

It’s no surprise that for just about every homeowner, their real estate represents the largest portion of their net worth.

Check out these numbers from the Federal Reserve’s Survey of Consumer Finances:

Median Net Worth in the U.S. = $97,300
Median Net Worth of a Renter = $5,200
Median Net Worth of a Homeowner = $231,400

Blog • Fun Facts • September 25, 2019

What We Notice

by Rondi duPont

Here are some observations we have about the market right now:

Inventory is up, price reductions are up, the length of time to sell a home is up
Seller concessions are more prevalent
Sellers are more willing to accept contingent offers (especially in higher price ranges)
If a home doesn’t sell within a week, it often becomes stigmatized by the market and potential buyers assume there must be something wrong with it
Homes that likely would have sold within hours a year ago, are now sitting on the market
Condition is super-important as buyers become even more picky
Pricing a property correctly on day one is paramount
Sellers who over-price their property are finding themselves chasing the market

Posted on August 2, 2019 at 11:09 am
Fort Collins | Posted in Blog, Fun Facts | Tagged blog, Friday Fun Facts, homes, inventory, market, potential buyers, Price Range, up, Windermere Real Estate

Blog • Fun Facts • September 23, 2019

A Closing Window

by Rondi duPont

For home sellers who would like to move to a new home this year, there is a window of time that is closing as we head into the Fall months.

Most people know that the Spring and Summer are the most active months for real estate and that activity trails off into the Fall and Winter.

Here are the specific numbers behind this…

The number of homes sold along the Front Range in November tends to be between 15% and 29% lower than September.

That means the best window of time for current sellers to obtain a contract from a buyer and close by the end of the year will occur over the next 45 days.

For sellers who have homes on the market today, it is time to ensure that:

The home is priced right versus the competition
All of the marketing elements are in place
It is easy for a buyer to make an offer on the home

Blog • Economics 101 • September 16, 2019

Case-Shiller

by Rondi duPont

The Case-Shiller Home Price Index is a well-known report in the real estate industry and a valuable way to gauge what is happening in various markets across the Nation.

The report tracks home price appreciation in the 20 largest markets in the country.

Their most recent report shows that, Nation-wide, home prices are up 2.1% year-over-year.

Last year prices were rising at 6.3%. So, prices are still going up but not as fast as they were.

The city with the highest appreciation over the last 12 months is Phoenix with 5.8% growth followed closely by Las Vegas at 5.5%.

Denver came in at 3.4% which makes it tied for 8th place out of the 20 cities.

Posted on August 30, 2019 at 10:24 am
Fort Collins | Posted in Blog, Fun Facts | Tagged Case-Shiller Index, Colorado, Denver, Friday Fun Facts, Home Price Index, Las Vegas, market, Phoenix, Price Appreciation Percentage, real estate, Windermere Real Estate