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 | Category: Dog Rescue, Housing Market, Larimer County Real Estate, Loveland Real Estate, Real Estate Market | Tagged , , , , ,

Lovely Stats

In honor of Valentine’s Day, here are some Northern Colorado stats we think you will love:

  • Prices are up 3.5% compared to last year
  • Inventory is up 10% which means there is more selection for buyers
  • We just had the most active January in terms of closings in over 10 years
  • Well over 13,000 residential properties representing $5.4 Billion of volume has sold in the last 12 months

If you would like to see a video recap of our annual Market Forecast you can watch that HERE.

Posted on February 14, 2020 at 5:06 pm
Tammy Fisher | Category: Loveland, Loveland Real Estate, Loveland Real Estate Agent, Northern Colorado Real Estate | Tagged , , , , , ,

3 Reasons This is NOT the 2008 Real Estate Market

3 Reasons This is NOT the 2008 Real Estate Market

No one knows for sure when the next recession will occur. What is known, however, is that the upcoming economic slowdown will not be caused by a housing market crash, as was the case in 2008. There are those who disagree and are comparing today’s real estate market to the market in 2005-2006, which preceded the crash. In many ways, however, the market is very different now. Here are three suppositions being put forward by some, and why they don’t hold up.

SUPPOSITION #1

A critical warning sign last time was the surging gap between the growth in home prices and household income. Today, home values have also outpaced wage gains. As in 2006, a lack of affordability will kill the market.

Counterpoint

The “gap” between wages and home price growth has existed since 2012. If that is a sign of a recession, why didn’t we have one sometime in the last seven years? Also, a buyer’s purchasing power is MUCH GREATER today than it was thirteen years ago. The equation to determine affordability has three elements:  home prices, wages, AND MORTGAGE INTEREST RATES. Today, the mortgage rate is about 3.5% versus 6.41% in 2006.

SUPPOSITION #2

In 2018, as in 2005, housing-price growth began slowing, with significant price drops occurring in some major markets. Look at Manhattan where home prices are in a “near free-fall.”

Counterpoint

The only major market showing true depreciation is Seattle, and it looks like home values in that city are about to reverse and start appreciating again. CoreLogic is projecting home price appreciation to reaccelerate across the country over the next twelve months.

Regarding Manhattan, home prices are dropping because the city’s new “mansion tax” is sapping demand. Additionally, the new federal tax code that went into effect last year continues to impact the market, capping deductions for state and local taxes, known as SALT, at $10,000. That had the effect of making it more expensive to own homes in states like New York.

SUPPOSITION #3

Prices will crash because that is what happened during the last recession.

Counterpoint

It is true that home values sank by almost 20% during the 2008 recession. However, it is also true that in the four previous recessions, home values depreciated only once (by less than 2%). In the other three, residential real estate values increased by 3.5%, 6.1%, and 6.6%.

Price is determined by supply and demand. In 2008, there was an overabundance of housing inventory (a 9-month supply). Today, housing inventory is less than half of that (a 4-month supply).

Bottom Line

We need to realize that today’s real estate market is nothing like the 2008 market. Therefore, when a recession occurs, it won’t resemble the last one.

 

 

Posted on November 22, 2019 at 8:00 am
Tammy Fisher | Category: Loveland Real Estate, Northern Colorado Real Estate, Real Estate Market, Selling Your Home | Tagged , , , ,

Existing-Home Sales Report Indicates Now Is a Great Time to Sell

Existing-Home Sales Report Indicates Now Is a Great Time to Sell

The best time to sell anything is when demand for that item is high and the supply of that item is limited. The latest Existing-Home Sales Report released by the National Association of Realtors (NAR), reveals that demand for housing continues to be strong, but the supply is struggling to keep pace. With this trend likely continuing throughout 2020, now is a great time to sell your house.

THE EXISTING-HOME SALES REPORT

The most important data revealed in this report was not actually sales. In reality, it was the inventory of homes for sale (supply). The report explained:

  • Total housing inventory at the end of August decreased 2.6% to 1.86 million homes available for sale.
  • Unsold inventory is lower than the 4.3-month figure recorded in August 2018.
  • This represents a 4.1-month supply at the current sales pace.

According to Lawrence Yun, Chief Economist at NAR,

“Sales are up, but inventory numbers remain low and are thereby pushing up
home prices.”

In real estate, there is a simple guideline that often applies here. Essentially, when there is less than a 6-month supply of inventory available, we are in a seller’s market and we will see greater appreciation. Between a 6 to 7-month supply is a neutral market, where prices will increase at the rate of inflation. More than a 7-month supply means we are in a buyer’s market and can expect depreciation in home values (see below):Existing-Home Sales Report Indicates Now Is a Great Time to Sell | Keeping Current MattersAs we mentioned before, there is currently a 4.1-month supply of homes on the market, and houses are going under contract fast. The Existing Home Sales Report also shows that 49% of properties were on the market for less than a month when they were sold. In August, properties sold nationally were typically on the market for 31 days. As Yun notes, this should continue,

“As expected, buyers are finding it hard to resist the current rates…The desire to take advantage of these promising conditions is leading more buyers to the market.” 

Takeaway: Inventory of homes for sale is still well below the 6-month supply needed for a normal market, and supply will fail to catch up with demand if a sizable supply does not enter the market.

Bottom Line

If you are going to sell, now may be the time to take advantage of the ready, willing, and able buyers who are out there searching for your house to become their dream home.

 

 

Posted on November 13, 2019 at 8:00 am
Tammy Fisher | Category: New Home, Northern Colorado Real Estate, Real Estate Market, Selling Your Home | Tagged , , ,

How Will the Next Recession Affect the Housing Market?

Given the current media buzz of an impending recession, many Americans are fearing the worst and believe a downturn in the real estate market is inevitable.

Doubts about the market’s stability are completely rational considering the loss many agents and home buyers took when everything went belly-up in 2008.

We’re here to tell you this: don’t panic.

Let’s look at the facts.

RECESSION DOES NOT EQUAL HOUSING CRISIS

The gravity of the 2008 crash, and how it affected the real estate market is impossible to forget. But what we may not be remembering is that there were many economic downturns that resulted in appreciated home values.

Of the last five recessions in U.S. history, three of them saw increases. Two of those three saw prices appreciate faster than the historical average.

Home price change during last 5 recessions

For the two where prices decreased, one of them was by less than 2% and the other was because the housing market caused the recession in the first place. Historically, recessions are not caused by housing alone.

MARKET CONDITIONS ARE NOT THE SAME AS 2008.

This is the biggest indicator that we won’t see a crash like the one a decade ago. Home prices are projected to appreciate for the next 2-5 years. Sales are also projected to increase in 2020.

Don’t worry, the housing market is strong and home prices are forecasted to continue to rise.

Projected home price appreciation 2019, 2020 and 2021

SO WHAT EXACTLY IS A RECESSION?

Looking at the textbook definition of recession may give more insight.

According to Webster’s Dictionary, a recession is a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP for two successive quarters.

To simplify it, a recession means a time when the economy takes a dip for at least six months. We’re currently in the longest running economic recovery in American history. What ends a recovery? A slowdown.

But that doesn’t mean we need to be bracing for a 2008 repeat.

WHAT EXPERTS BELIEVE WILL CAUSE THE NEXT RECESSION

If an upcoming recession occurs, it will likely be due to trade policy, a geopolitical crisis, and/or stock market correction but NOT a housing slowdown, according to Yahoo Finanace.

This is going to be a much shorter recession than the last one. I don’t think the next recession will be a repeat of 2008…the housing market is in a better position,” said George Ratiu, Senior Economist for Realtor.com

The upcoming election along with current trade wars may be the defining factors that ends what has been the longest running economic expansion in U.S. history. But again, a slowdown by no means indicates a hit like the Great Recession.

WHAT YOUR CLIENTS BELIEVE ABOUT A RECESSION

According to a Realtor.com survey, 53% of consumer currently looking for home think a recession will come in the next 15 months. Worse than that, 55% of consumers surveyed said they would temporarily suspend their home search.

“You’re gonna have sellers that were ready to put the house on the market all of a sudden call and say we’re gonna wait a year or two. Those families are getting hurt because they’re making decisions, not on reality, but their perception of reality. The only people who can control that reality are [real estate agents].”

57% of homeowners believe the next recession will be worse

Now is the time to be up-front with your clients. Getting ahead of the panic and communicating the right information to them, backed by cold hard facts, will help dismantle fears.

Bottom Line

The next recession will not duplicate the one we saw in 2008 – but if we allow fear to spread – it could be much worse than it should be. Your clients could be hurt by mistakes made under the pretense of false information.

That is why it is so important that we, as real estate professionals and the trusted advisors, need to reclaim the narrative and eliminate this fear from the market.

People may question you over this, and that’s why you need to have the most relevant information and insights about what it means for you and your clients. Between now and the election next year, this will only become more important.

To stay current on real estate news without having to read every media outlet, KCM offers a Monthly Market Report to provide you with a comprehensive walkthrough of the most up-to-date information regarding the market.

https://www.keepingcurrentmatters.com/article/how-will-the-next-recession-affect-the-housing-market/

Posted on November 6, 2019 at 8:00 am
Tammy Fisher | Category: Home Buyers, Loveland Real Estate, Northern Colorado Real Estate | Tagged , ,

Core Logic Homeowner Equity Insights Report

The real estate research firm Core Logic just produced their latest Homeowner Equity Insights report.

 

 

 

Some interesting tidbits:

·         63% of all properties nationally have a mortgage

·         Homeowners with mortgages collectively realized a $428 billion rise in equity over last year, an increase of 4.8%

·         Only 3.8% of all mortgaged properties have negative equity (where the loan is greater than the value of the home)

·         10 years ago 26% of all mortgaged properties had negative equity

Posted on October 30, 2019 at 8:00 am
Tammy Fisher | Category: Loveland Real Estate, Northern Colorado Real Estate, Real Estate Market | Tagged , ,

Net Worth

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

If you want to see even more insights about the Colorado market so that you can make really good decisions about your real estate, you are welcome to watch this complimentary webinar, just click HERE.

Posted on October 28, 2019 at 8:00 am
Tammy Fisher | Category: Loveland Real Estate, Northern Colorado Real Estate, Real Estate Market | Tagged , ,

Reduced

Some fascinating research from the Denver Metro Association of Realtors…

37% of properties that sold last month along the Front Range had a price reduction at some point during the listing period.

Property owners who have to reduce their price take an average of 58 days to receive an offer.

Those who don’t have to reduce their price only take 13 days.

This stat obviously speaks to the importance of pricing your property right on day one.

Posted on October 16, 2019 at 8:00 am
Tammy Fisher | Category: Loveland Real Estate, New Home, Northern Colorado Real Estate, Real Estate Agent, Real Estate Market, Selling Your Home | Tagged , , , ,

The Impact of Staging Your Home

For more than 20 years, the benefits of staging a home have been well documented. Numerous studies show that staging helps sell a home faster and for a higher price. According to the National Association of REALTORS®, 88 percent of home buyers start their search online, forming impressions within three seconds of viewing a listing. When a home is well staged, it photographs well and makes the kind of the first impression that encourages buyers to take the next step.

Studies also indicate that buyers decide if they’re interested within the first 30 seconds of entering a home. Not only does home staging help to remove potential red flags that can turn buyers off, but it also helps them begin to imagine living there. Homes that are professionally staged look more “move-in ready” and that makes them far more appealing to potential buyers.

According to the Village Voice, staged homes sell in one-third less time than non-staged homes. Staged homes can also command higher prices than non-staged homes. Data compiled by the U.S. Department of Housing and Urban Development indicate that staged homes sell for approximately 17 percent more than non-staged homes.

A measurable difference in time and money

In a study conducted by the Real Estate Staging Association in 2007, a group of vacant homes that had remained unsold for an average of 131 days were taken off the market, staged, and relisted. The newly staged properties sold, on average, in just 42 days, – which is approximately 68 percent less time on the market.

The study was repeated in 2011, in a more challenging market, and the numbers were even more dramatic. Vacant homes that were previously on the market for an average of 156 days as unstaged properties, when listed again as staged properties, sold after an average of 42 days—an average of 73 percent less time on the market.

Small investments, big potential returns

Staging is a powerful advantage when selling your home, but that’s not the only reason to do it. Staging uncovers problems that need to be addressed, repairs that need to be made, and upgrades that should be undertaken. For a relatively small investment of time and money, you can reap big returns. Staged properties are more inviting, and that inspires the kind of peace-of-mind that gets buyers to sign on the dotted line. In the age of social media, a well-staged home is a home that stands out, gets shared, and sticks in people’s minds.

What’s more, the investment in staging can bring a higher price. According to the National Association of REALTORS, the average staging investment is between one percent and three percent of the home’s asking price, and typically generates a return of eight to ten percent.

In short, less time on the market and higher selling prices make the small cost of staging your home a wise investment.

Interested in learning more? Contact your real estate agent for information about the value of staging and referrals for professional home stagers.

Posted on October 13, 2019 at 1:31 am
Tammy Fisher | Category: New Home, Northern Colorado Real Estate, Selling Your Home | Tagged , , , , , ,

Ranch Style Home in Loveland!

Are you looking for a home that’s a little bit country? Well you’ve found it! This ranch style home located at 301 SW 49th St in SW Loveland is on .28 acres with a large fenced yard, 2 storage sheds, a horse pasture behind property, and no HOA! Easy access to Loveland, Berthoud, and HWY 287. Call for your private showing at (970) 218-3383 for more information or click the link below for more details.

http://livebeautifulrealestate.com/listing/94035284

Posted on April 16, 2019 at 10:37 pm
Tammy Fisher | Category: Loveland Real Estate, Virtual Tours | Tagged , , , , , , , , , , , ,