The Cost of Waiting

It’s true, certain parts of our market are cooling off. We are seeing fewer multiple offers, fewer bidding wars, and fewer inspection concessions.
However, homes that are priced right and in great condition are selling, and in many cases, selling quickly.

As buyers feel the market cool a bit, it may cause them to want to wait. They sometimes feel like it’s a better choice to ‘wait and see what happens.’

The reality is, there is a real cost to waiting given two specific facts.

1. Interest rates will continue to rise
2. Prices will continue to rise

Interest rates are a little more than 0.5% higher than a year ago and experts predict them to be another 0.5% higher by this time next year.

Prices have been appreciating at roughly 10% per year for the last four years. Based on the numbers, we see that appreciation could be 5% per year for the next two years.

So, let’s look at a house priced at $450,000 today. If prices go up “only” 5% for the next 12 months, that home will cost $22,500 more in a year.

And, if rates go up another half percent, the monthly payment will be $206 higher. That’s an 11% increase!

In an environment of rising prices and rising rates, there is a real cost to “wait and see.”

Posted on September 23, 2019 at 8:00 am
Jon Holsten | Category: Buying, Fort Collins Real Estate, Housing Trends, Northern Colorado Real Estate, Windermere Real Estate | Tagged , , , , , , ,

Rate Bounce

Rates hit near-historic lows this week and are now at 3.49% for a 30-year mortgage.

There have only been two other times in history when rates have been this low- April 2013 and October 2016.

It’s interesting to see what happened soon after bottoming out these last two times.

In April of 2013 rates hit 3.41%. By August 2013 they had jumped to 4.40%.

Rates bottomed again in October 2016 at 3.42%. Just two months later in December 2016 they were 4.32%.

Each time the increase was nearly 1% within just a few months.

So, if history proves itself as a guide, we can’t expect these rates to last for long.

Posted on September 13, 2019 at 5:05 pm
Jon Holsten | Category: Buying, Housing Trends, Selling, Windermere Real Estate | Tagged , , , , , , , , , , ,

How Much?

So how much real estate is sold in Northern Colorado?

As it turns out, a lot!

Last month alone there were 1,099 single family homes that sold in Larimer and Weld Counties

The average price was $429,144 which means the total sales volume for one month was $471,629,129 (almost a half a billion)!

Over the last 12 months, just over $4.5 billion worth of single-family homes have sold.

That’s a lot of real estate!

Posted on August 23, 2019 at 3:48 pm
Jon Holsten | Category: Buying, Fort Collins Real Estate, Housing Trends, Loveland Real Estate, Northern Colorado Real Estate, Selling, Timnath Real Estate, Windermere Real Estate | Tagged , , , , , , , , , ,

Home-Ownership Rate

An interesting stat which can give some insight to the national market is the Home-ownership Rate.

It simply looks at the percentage of Americans who own their home instead of rent.

The most recent report from the Census Bureau shows the rate at 64.2%.

Most importantly, this number is showing stability after many years of change.

After many years of hovering around 64%, the Home-ownership Rate started increasing in 1996 and reached as high as 69.5% in 2005.

2008 started several years of declining back to the pre-1996 levels of 64%.

So today it’s back to what seems to be “normal” based the long-term average.

Posted on August 8, 2019 at 8:00 am
Jon Holsten | Category: Buying, Housing Trends, Northern Colorado Real Estate, Windermere Real Estate | Tagged , , , , , , , , , ,

Home-ownership Rate

An interesting stat which can give some insight to the national market is the Home-ownership Rate.

It simply looks at the percentage of Americans who own their home instead of rent.

The most recent report from the Census Bureau shows the rate at 64.2%.

Most importantly, this number is showing stability after many years of change.

After many years of hovering around 64%, the Home-ownership Rate started increasing in 1996 and reached as high as 69.5% in 2005.

2008 started several years of declining back to the pre-1996 levels of 64%.

So today it’s back to what seems to be “normal” based the long-term average.

Posted on July 26, 2019 at 7:41 pm
Jon Holsten | Category: Buying | Tagged , , , , , , , , , , ,