Here’s an interesting stat based on the most recent U.S. Census.
(although you won’t be surprised to hear this)
Since 1990, Colorado’s rate of population growth is double the Nation’s rate of population growth.
Here are the numbers since 1990:
30.3% growth in the U.S.
62.3% growth in Colorado
So, the Nation grows at roughly 1% per year and Colorado grows at roughly 2% per year.
It appears Colorado is twice as popular as compared to the Nation as a whole.
(but you aren’t surprised to hear this)
For anyone worried that mortgage forbearance would eventually cause a flood of distressed properties to hit the market, there is good news this week.
The number of mortgages in forbearance continues to drop and hit its lowest point since April of 2020.
Loans in forbearance dropped 12% compared to one month ago.
It appears the growing economy is helping homeowners to exit forbearance and keep the market free of distressed properties.
1361 Waterwood Dr is a 2 Story Brick Home with Great Potential! This 4 bedroom 3 bathroom home is located in the much desired Westwood Village neighborhood in Windsor. The main floor master opens up to a deck overlooking the abundant fish filled pond where you can relax and enjoy the summers or cozy up to the fireplace on the main level while it snows in the winter. The 3 car garage is perfect to store all your toys and still have room. The home has a new Class IV roof and new carpet. Sellers started on a few of the projects that need to be done. Come see the possibilities this home has to offer and how you can put the final touches on the it to make it truly your own! Call (970) 401-0123 or contact Lindsey Crisanti at (970) 420-4498 to schedule your private tour or click HERE for more information.
1310 Mill Creek Rd is a rare opportunity to live in Mill Creek Estates. This beautiful 2 Story home with 5 bedrooms boasts picturesque mountain views from the front and plains views from the back. Relax in front of the custom-built stone stacked fireplace in the winter or on the newly rebuilt deck in summer. The gourmet kitchen with granite counter tops, hickory cabinets and stainless-steel appliances has so much natural light coming in the windows, it is perfect for entertaining. The 5-acre property allows horses and backs to 100-acre open space with trails to enjoy. The land has plenty of space to build your barn or outbuilding to suit. Finally imagine yourself gazing at the stars around the firepit in the backyard while enjoying this little slice of heaven. Don’t miss this home! Call (970) 401-0123 to schedule your private showing or click the link below for more information.
Here’s the latest from one of our favorite data sources – the Federal Housing Finance Authority (FHFA).
They track home prices across the Country and produce a quarterly Home Price Index report.
It is not uncommon to find Colorado near the top of the list for year over year price growth.
The latest report has us ranked 13th with only a 13% year over year increase (said with sarcasm).
Idaho is first with a whopping 24% increase. Utah is second at 19%.
Here is our interpretation of these numbers…
Colorado has a history of strong, steady price growth instead of booms and busts.
Our market does not take the big, wild swings in prices that other markets sometimes do.
The fact that Colorado is not at the very top of the list right now is actually good news to us.
We know that our clients appreciate a market that is more steady instead of one that can feel like a rollercoaster.
The economic research blog called “Calculated Risk” just completed a fascinating study on home prices.
Specifically, they looked at the correlation between home price growth and inventory.
They used price data from the Case-Shiller Home Price Index and inventory data from the National Association of Realtors.
No surprise, they found that the lower the inventory the higher the home price growth. Also no surprise, as inventory goes up, price growth slows down.
This all correlates with simple economic rules of supply and demand.
The interesting part of their research is this: at a certain level of inventory, prices have the potential to go down.
That level, according to their research, is six months of inventory.
That means, prices don’t have a chance of decreasing in a market until there is at least 6 months of inventory available for sale.
To put that in perspective, today there is two weeks of inventory on the market along the Front Range.
So, there would need to be 12 times the amount of homes for sale on the market for prices to even have a chance to go down.
New home construction is behind by 5.5 million homes over the last 14 years.
Since 2007, new home starts have lagged significantly behind the long-term average.
The Census Bureau started tracking National new home starts in 1958.
Between 1958 and 2007, an average of 1,102,938 new homes were started each year.
Between 2007 and 2020 the average fell to 708,186 which represents a shortfall of 394,752 per year.
That adds up to a total shortfall of 5,526,525.
The under-supply of new homes is of course a significant reason why the market is under-supplied overall.
credit Inman News as the source of this story
925 Columbia Rd 611 is a beautiful ground level, one bedroom, one bathroom condo in Mission Hills, Fort Collins! This home is perfect for someone looking for a move in ready home to call their own! The home has updated flooring, paint and kitchen. Picture sitting on the walkout patio, enjoying the the large open space while sipping your coffee. Or in the winter, snuggle up next to the cozy wood burning fireplace. The unit also has a small storage closet off of the patio. This amazing location within a few miles to Old Town and CSU. Don’t forget about the Tennis Courts as a bonus feature to the complex! Call for your private showing at (970) 401-0123 for more information or click the link below for more details.
Deciding whether to DIY a remodeling project or leave it to a professional is a matter of weighing the risks and rewards, time, and budget. Before you start applying a new coat of paint or go about knocking down a wall, create a plan for your remodel to help you decide which projects you can handle, and which ones belong in the hands of a pro.
Knowing your plans for your remodel will help to determine your timeline and budget, which will inform your DIY-vs-Pro decision-making. Set specific goals for each project so you’ll know when you’re getting off track but remain flexible in your planning to leave room for any unexpected hurdles that will inevitably pop up in the remodeling process. Your budget will also help you decide who should execute certain projects. For example, if you’re budgeting more for a kitchen remodel than any other project, that is a likely candidate for professional help.
If you’re having trouble deciding the best route to take with your remodeling projects, ask yourself the following questions:
Pros: Taking a DIY approach to remodeling projects pays dividends in many ways. Without having to pay labor costs, you stand to save significant money by tackling a project on your own. Going DIY also allows you to set your own schedule for the project. And of course, the sense of ownership and pride you will feel knowing you completed the project on your own is a priceless feeling for a homeowner.
Cons: DIY projects can be consequential. Mistakes at any point in the renovation process can lead to greater costs and sometimes, hiring a professional to fix the mistake. Unfortunately, this can result in the loss of significant time and money.
Pros: Professionals are inherently more experienced, bringing their specialization to the table on every home renovation project, so you can expect them to perform high-quality work that will increase the value of your home.
Cons: Getting professional quality work means paying for it. When budgeting, expect higher costs for any project you’re thinking of outsourcing to a pro. Bear in mind that, especially for large-scale renovation projects, your home will become a construction site. Accordingly, you may need a back-up plan, such as a temporary kitchen set-up or a short-term rental home .
The following list breaks down which projects are typical DIY candidates and which ones homeowners commonly opt for professional help to complete. However, the decision is ultimately up to you. If you have your heart on tackling a project on your own, gather your tools and make it happen!
If you’re planning on going through a remodel while you live at home, read this first. For more information on how certain renovations may impact the value of your home, talk to your Windermere agent.
The following analysis of the Metro Denver & Northern Colorado real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere Real Estate agent.
Following the decline in employment last winter, Colorado has started to add jobs back into its economy. The latest data shows that the state has now recovered more than 219,000 of the 376,000+ jobs that were lost due to COVID-19. This is certainly positive, but there is a long way to go to get back to pre-pandemic employment levels. Denver and Fort Collins continue to have the greatest improvement in employment, but all markets show job levels well below pre-pandemic levels. With total employment levels rising, the unemployment rate stands at 6.6%, down from the pandemic peak of 12.1%. Regionally, unemployment levels range from a low of 5.6% in Fort Collins and Boulder to a high of 6.7% in Greeley. COVID-19 infection rates have started to increase again, and this has the potential to negatively impact the job market. I am hopeful that the state will not be forced to pull back reopening, but this is certainly not assured.
❱ 2021 started off on a bit of a sour note, with total sales down 1.2% compared to the same period in 2020. Sales were 29.2% lower than in the final quarter of 2020 as 8,645 homes sold.
❱ Sales were higher in four of the counties contained in this report, were essentially flat in one, and dropped in seven. It was pleasing to see significant sales growth in the large counties of Denver and Adams.
❱ Another positive was that pending sales, which are an indicator of future closings, were 4.8% higher than in the fourth quarter of 2020 and 5% higher than a year ago.
❱ The disappointing number of home sales overall can primarily be attributed to the woeful lack of inventory. Listings in the quarter were down more than 61% year over year and were 40.6% lower than in the fourth quarter of 2020.
❱ Prices continue to appreciate at a very rapid pace, with the average sale price up 16.5% year over year, to an average of $556,100. Home prices were also 4.4% higher than in the fourth quarter of 2020.
❱ Buyers appear to be out in force, and this demand—in concert with very low levels of inventory—continues to heat the market.
❱ Prices rose over last year across all markets covered by this report, with the exception of the very small Gilpin County. All other counties saw sizeable gains and the trend of double-digit price growth continued unabated.
❱ Affordability levels are becoming a greater concern as prices rise at a far faster pace than wages. Even though mortgage rates have started to rise, they haven’t yet reached the level needed to take some of the heat out of the market.
❱ The average time it took to sell a home in the markets contained in this report dropped 20 days compared to the first quarter of 2020.
❱ The amount of time it took to sell a home dropped in every county contained in this report compared to the fourth quarter of 2020.
❱ It took an average of 25 days to sell a home in the region, down one day from the fourth quarter of 2020.
❱ The Colorado housing market remains very tight, as demonstrated by the fact that it took less than a month for homes to sell in all but two counties.
CONCLUSIONS
This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.
The relatively low level of home sales is not a surprise given how few choices there are for buyers. Sellers are certainly benefitting from strong demand, as demonstrated by the significant price growth. I maintain my belief that there will be an increase in inventory as we move through the year, but it is highly unlikely that we will see a balanced market in 2021.
Given these factors, I am moving the needle a little more in favor of sellers, as demand is likely to continue to exceed supply.
ABOUT MATTHEW GARDNER
As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.
In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.
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