BlogFun Facts January 22, 2021

Bubble Talk

A hot topic of conversation these days is the prospect of another real estate bubble.  People wonder if prices can continue at their current pace and some fear a repeat of 2008.

 

Because we get asked about this topic so often from our clients, we thought it would make sense to ask our in-house expert, Matthew Gardner.

 

Matthew is our Chief Economist and was our Keynote Speaker at the Windermere Annual Market Forecast.

 

During the Forecast presentation, he discussed the bubble concerns and laid out his reasons why he sees no potential of prices bursting along the Front Range.

 

Quite the opposite actually, he sees that prices will continue to go up, but just not as fast as they have been.

 

His reasons for no bubble bursting are as follows:

  • Record-low inventory – prices cannot crash without a glut of supply on the market
  • Highly-qualified buyers – lending guidelines are more stringent today than they have been in our lifetime
  • Growing jobs – job growth in Colorado is projected to far outpace the national average this coming year

So, we project a healthy real estate market in 2021.

To see a replay of the Forecast presentation, simply reach out to us, we would be happy to send you the recording.

 

BlogFun Facts September 27, 2020

6 Million

Based on the numbers through August, we are now on pace to sell 6 million homes.  This is the highest pace we have seen in 14 years.

The 6 million threshold is a big deal in the real estate brokerage world.

Each month, as they have for a long time, the National Association of Realtors tracks the sales and then calculates the annualized rate of residential closings.

For many, many years this number has bounced around 5.5 million.  The fact that it just jumped to 6 million speaks to many factors especially the effect of today’s interest rates.

running

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.

 

BlogFun Facts August 28, 2020

Price Report

Some significant findings from the report:

House prices have risen for 36 consecutive quarters, or since September 2011.

House prices rose in all 50 states and the District of Columbia between the second quarters of 2019 and 2020.

The top five areas for annual appreciation were:

1) Idaho 10.8%

2) Arizona 9.1%

3) Washington 8.6%

4) Utah 8.1%

5) New Mexico 7.7%.

Idaho has been the leading state for the last 7 quarters.

Colorado showed annual appreciation of 4.4%.

The areas showing the lowest annual appreciation were:

1) West Virginia 1.1%

2) North Dakota 1.1%

3) District of Columbia 1.4%

4) Illinois 2.5%

5) Alaska 2.6%.

House prices rose in 99 of the top 100 largest metropolitan areas in the U.S. over the last four quarters.

Annual price increases were greatest in Honolulu, HI, where prices increased by 11.7%.

Prices were weakest in San Francisco, where they decreased by 0.3%.

Plane

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.

 

BlogFun Facts July 10, 2020

More Homes Needed

More homes are needed to fulfill the need to buyer demand.

Compared to exactly one year ago, the supply of homes is down:

  • 32.6% in Metro Denver
  • 25.1% in Northern Colorado

An interesting and useful measurement we track is months of inventory.  This stat tells how long it would take to sell all of the homes currently for sale at the current pace of sales.

Of course, months of supply can vary greatly by price range and location.  However, this stat does a good job of explaining the overall state of the market.

Specifically, months of supply tells us if the market is in balance.

A ‘balanced’ market is when there is 4 to 6 months of supply.  A buyers market occurs when the stat is higher than this range.  A sellers market occurs when it is lower.

The months of supply looks like this in our market:

  • 1.0 months in Metro Denver
  • 1.3 months in Northern Colorado

So, the market overall is significantly under-supplied and more homes are needed to meet demand.

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.

 

BlogFun Facts December 19, 2019

All Time High

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.

 

BlogFun Facts September 25, 2019

What We Notice

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 BlogFun Facts | Tagged 
BlogEconomics 101 September 16, 2019

Case-Shiller

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 BlogFun Facts | Tagged 
BlogFun Facts August 5, 2019

What We Notice

  • 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

 

BlogFun Facts July 13, 2019

Sign Surprise

Given how active our market is today and has been over the last few years, many people assume that virtually every home with a “For Sale” sign in the front yard is already under contract.

 

They are surprised to learn that, in most cases, the “For Sale” sign does indeed represent a home that is actively for sale.

 

For example, today in Fort Collins there are 655 single-family homes on the market. 290 of these are under contract and will be closing soon. 365 of these are still active. So, 56% of the signs in Fort Collins are in front of homes that are still available.

 


Here are the specific numbers for each of our Northern Colorado markets:
• Fort Collins = 56%
• Loveland = 57%
• Windsor = 58%
• Greeley = 41%

 

BlogFun Facts July 12, 2019

Over List

A statistic we keep our eye on is the percentage of homes which sell for at least list price.

In a robust, healthy, market with lower inventory, we will frequently see homes selling for their asking price or even higher.

 

Here are the number of sales that occur for list price or higher in each of our major markets:

• Fort Collins = 60%
• Loveland = 60%
• Greeley = 71%
• Windsor = 56%

 


There are a couple of things we notice about these numbers. First, well over half of all sales are for at least list price. This means that a buyer needs to be prepared to make a full price offer (or higher) in most cases. This also means that if a seller is priced right and marketed effectively, they should achieve their asking price.

We also notice that these percentages are lower than one year ago. In 2018 these numbers were 5% to 10% higher in each market. This is good news for buyers of course because the bidding wars are not as intense as last year.