Builders & Realtors Agree: Real Estate Is Back

Builders & Realtors Agree: Real Estate Is Back

When shelter-in-place orders brought the economy to a screeching halt earlier this year, many believed the residential housing market would follow suit. Countless analysts predicted buyer demand would disappear and home values would depreciate for the first time in almost a decade. That, however, didn’t happen. It appears the opposite is taking place.

After the bottom fell out of the real estate market immediately following the shutdown, it has come roaring back – and seems to still be gaining steam. Here’s a look at two recent reports – one from the National Association of Home Builders (NAHB) and one from the National Association of Realtors (NAR) – showing this growing strength.

Builder Confidence Hits All-Time High

Last week, it was reported that applications for new home purchases with home builders were 39% higher than in July of 2019. That has builder confidence soaring.

Each month, NAHB releases its Housing Market Index, a survey of NAHB members who rate market conditions for the sale of new homes at the present time and over the next six months, as well as prospective buyer traffic for new homes.

This month, they reported that builder confidence in the market for newly-built single-family homes increased to the highest reading in the 35-year history of the series. NAHB Chairman, Chuck Fowke, explained:

“The demand for new single-family homes continues to be strong, as low interest rates and a focus on the importance of housing has stoked buyer traffic to all-time highs…Housing has clearly been a bright spot during the pandemic and the sharp rebound in builder confidence over the summer has led NAHB to upgrade its forecast for single-family starts, which are now projected to show only a slight decline for 2020.”

The number of newly constructed homes being built will be almost at the same level as last year, even though the economic shutdown crushed home building earlier in the year.

Existing Homes Are Also Selling Like Hotcakes

Last Friday, NAR released its Existing Home Sales Report. The report revealed that month-over-month sales increased by 24.7%, setting another record for the category. The Wall Street Journal reported that the increase crushed expert forecasts:

“Economists surveyed by The Wall Street Journal expected a 14.2% monthly increase in sales of previously-owned homes, which make up most of the housing market.”

Home sales increased by 8.7% year-over-year.

Lawrence Yun, Chief Economist for NAR, explained how the resale market is just as hot as the new construction market:

“The housing market is well past the recovery phase and is now booming with higher home sales compared to the pre-pandemic days. With the sizable shift in remote work, current homeowners are looking for larger homes and this will lead to a secondary level of demand even into 2021.”

In addition, the Housing Market Recovery Index, which is released monthly by realtor.com, also showed the market is recovering nicely. The latest index reading was 104.8, which means the housing market is doing better than it was in January and February of this year. As a reference, the highest point in the index was a 106.5 in early March, just prior to the health crisis setting in.

Bottom Line

Both the newly constructed and existing home sale markets are posting numbers greater than a year ago. Real estate is back. If you’re thinking of buying or selling, now may be the time to contact an agent for expert counsel.

https://www.keepingcurrentmatters.com/2020/08/25/builders-realtors-agree-real-estate-is-back/


Posted on September 12, 2020 at 6:00 am
Tammy Fisher | Posted in builder confidence, Housing Market, Larimer County Real Estate, Real Estate Market | Tagged , , ,

A Snapshot of the Larimer County Market


Posted on August 26, 2020 at 3:00 am
Tammy Fisher | Posted in Housing Market, Larimer County Real Estate, Loveland Real Estate, Loveland Real Estate Agent | Tagged , ,

Two Reasons We Won’t See a Rush of Foreclosures This Fall

Two Reasons We Won’t See a Rush of Foreclosures This Fall

The health crisis we face as a country has led businesses all over the nation to reduce or discontinue their services altogether. This pause in the economy has greatly impacted the workforce and as a result, many people have been laid off or furloughed. Naturally, that would lead many to believe we might see a rush of foreclosures like we saw in 2008. The market today, however, is very different from 2008.

The concern of more foreclosures based on those that are out of work is one that we need to understand fully. There are two reasons we won’t see a rush of foreclosures this fall: forbearance extension options and strong homeowner equity.

1. Forbearance Extension

Forbearance, according to the Consumer Financial Protection Bureau (CFPB), is when your mortgage servicer or lender allows you to temporarily pay your mortgage at a lower payment or pause paying your mortgage.” Thisis an option for those who need immediate relief. In today’s economy, the CFPB has given homeowners a way to extend their forbearance, which will greatly assist those families who need it at this critical time.

Under the CARES Act, the CFPB notes:

“If you experience financial hardship due to the coronavirus pandemic, you have a right to request and obtain a forbearance for up to 180 days. You also have the right to request and obtain an extension for up to another 180 days (for a total of up to 360 days).”

2. Strong Homeowner Equity

Equity is also working in favor of today’s homeowners. This savings is another reason why we won’t see substantial foreclosures in the near future. Today’s homeowners who are in forbearance actually have more equity in their homes than what the market experienced in 2008.

The Mortgage Monitor report from Black Knight indicates that of all active forbearances which are past due on their mortgage payment, 77% have at least 20% equity in their homes (See graph below):Two Reasons We Won’t See a Rush of Foreclosures This Fall | Keeping Current MattersBlack Knight notes:

“The high level of equity provides options for homeowners, policymakers, mortgage investors and servicers in helping to avoid downstream foreclosure activity and default-related losses.”

Bottom Line

Many think we may see a rush of foreclosures this fall, but the facts just don’t add up in this case. Today’s real estate market is very different from 2008 when we saw many homeowners walk away when they owed more than their homes were worth. This time, equity is stronger and plans are in place to help those affected weather the storm.

https://www.keepingcurrentmatters.com/2020/07/22/two-reasons-we-wont-see-a-rush-of-foreclosures-this-fall/


Posted on August 10, 2020 at 6:00 am
Tammy Fisher | Posted in Home Ownership, Larimer County Real Estate, Mortgage Rates | Tagged , ,

Rebound

The Case-Shiller Home Price Index tracks appreciation in the 20 largest real estate markets across the U.S.

 

Their most recent quarterly report was just released this week.

 

Metro Denver prices are up over last year by 3.89% which is just slightly higher than the average of the 20 markets.

 

It is interesting to see how the 20 locations have performed since the pre-Great Recession housing peak.

 

Turns out that Denver has done the best out of all the markets.

 

Since 2008, Denver home prices have appreciated 64.9%.  Second-best is Dallas at 55.5% and Seattle is third at 41.2%.

 

Believe it or not, there are markets where average home prices have still not returned to their 2008 levels.

 

Las Vegas is 14.5% below 2008 and Chicago is 12.8% below.

 

These numbers are another indicator of the long-term health and performance of the Front Range market.

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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.


Posted on August 7, 2020 at 4:04 pm
Tammy Fisher | Posted in Home Prices, Housing Market, Larimer County Real Estate, Loveland Real Estate, Real Estate Market | Tagged , , ,

Spring in Summer

This year the Spring market is occurring in the Summer.

 

Typically the busiest months for real estate along the Front Range are April, May and June.

 

This year, because showing activity was restricted in the Spring months, we are seeing robust activity this Summer.

 

Here’s an indicator.  Sales through July 2020 versus July 2019 are up:

  • 12.6% in Metro Denver
  • 17% in Northern Colorado

To see double-digit increases in sales despite was is occurring in the National economy, is nothing short of remarkable.


Posted on July 31, 2020 at 6:49 pm
Tammy Fisher | Posted in Dog Rescue, Housing Market, Larimer County Real Estate, Loveland Real Estate, Real Estate Market | Tagged , , , , ,

Larimer County Snapshot July 1-12


Posted on July 14, 2020 at 5:13 pm
Tammy Fisher | Posted in Housing Market, Larimer County Real Estate, Real Estate Market | Tagged , , ,

Market Snapshot June 1 – June 28th


Posted on June 30, 2020 at 6:47 pm
Tammy Fisher | Posted in Housing Market, Larimer County Real Estate, Loveland Real Estate | Tagged , , , ,

Prices Still Up

Prices Still Up

It seems that COVID-19 did not cause prices to decrease and certainly didn’t cause them to crash.

Average prices are up compared to last year:

·         2.8% in Larimer County

·         5.4% in Weld County

·         3.3% in Metro Denver

Low supply, sustained demand, and incredibly low interest rates are all fueling the price growth.


Posted on June 22, 2020 at 6:00 am
Tammy Fisher | Posted in Larimer County Real Estate, Loveland Real Estate, Loveland Real Estate Agent, Northern Colorado Real Estate | Tagged , ,

Snapshot of Weld County Market June 1st – June 7th


Posted on June 11, 2020 at 7:00 am
Tammy Fisher | Posted in Larimer County Real Estate, Northern Colorado Real Estate, Real Estate Agent, Real Estate Market | Tagged , , ,

Larimer County Snapshot June 1st – June 7th


Posted on June 10, 2020 at 7:00 am
Tammy Fisher | Posted in Housing Market, Larimer County Real Estate, Northern Colorado Real Estate, Real Estate Agent, Real Estate Market | Tagged , , , ,