Category Archives: Real Estate Stats

Appealing to Investors: ‘Emerging’ Markets Show Strength

Downtown Nashville Tennessee Skyline

Housing markets in the three largest metropolitan areas—Chicago, Los Angeles and New York—have always attracted capital, eagerly handed over by investors recognizing profit potential, safety and security. Now, according to new research, other major metro areas are diverting the flow, drawing increased investment in real estate.

The common denominator? Economies flourishing with jobs and skilled workers.

“The growing interest in smaller cities by real estate investors is influenced by their relative affordability, coupled with a concentration of young, skilled workers,” says Mitch Roschelle, co-publisher of “Emerging Trends in Real Estate® 2018″ by PwC and the Urban Land Institute (ULI), and partner with PwC. “The diverse, robust economies of these smaller cities make them very desirable to investors.”

A barrier, for one, has been eliminated. Investors have become knowledgeable about markets outside the usual vehicles, according to PwC and the ULI. These other markets, also, have been less saturated with supply.

Additionally, cities with growth are ideal for investors because returns could parallel their trajectory. The cities with high interest from investors, “Emerging Trends” shows, are (in order): Seattle, Wash.; Austin, Texas; Salt Lake City, Utah; Raleigh-Durham, N.C.; Dallas-Ft. Worth, Texas; Ft. Lauderdale, Fla.; Los Angeles, Calif; San Jose, Calif; Nashville, Tenn.; and Boston, Mass. While Los Angeles appears in the top 10, the real story is in the others.

For No. 1 Seattle, challenging conditions exist.

“The booming employment market in Greater Seattle has brought multiple years of double-digit [home] price growth and less than two months’ [housing] inventory available,” says Sam DeBord, managing broker of the Seattle Homes Group and vice president of Strategic Growth with Coldwell Banker Danforth. According to Zillow, home prices in Seattle have soared 12.4 percent year-over-year.

The influx of newcomers, DeBord says, is piling onto the severe shortage.

“Since our building hangover from the last downturn, the region just hasn’t been able to keep up with growing demand for more housing units,” says DeBord. “Seventy-thousand-plus people are moving into King County every year, while we’re only permitting 10,000 new homes per year. The demand will continue to make rents and prices rise.”

Constraints in housing are not just plaguing Seattle. In Raleigh (No. 4), homebuyers are facing a fast-moving market.

“The Raleigh-Durham area is and has been one of the fastest-growing cities in the U.S. thanks to the economic growth, weather, affordability and quality of life,” says Ryan Fitzgerald, owner of Raleigh Realty. “The growth in Raleigh-Durham has translated to a real estate market with home prices appreciating at a fast rate, especially in the high-demand neighborhoods and locations.”

Fitzgerald says Raleigh-Durham is mirroring another market ranked by PwC and the ULI: Austin.

“If you have watched how Austin, Texas, grew in the last 20 years, you will notice that Raleigh-Durham is following a similar trend,” says Fitzgerald. “The rougher neighborhoods with great locations are exploding with relocating millennials, who are willing to sacrifice neighborhood identity for convenience, location and affordability—and their bets are paying off. As a relocating millennial myself, I targeted the East Downtown Raleigh area for my first home purchase, and my property has doubled in value in two years.”

In nearby Nashville (No. 9), however—newer to the scene—inventory is largely keeping pace.

“Land is a precious commodity [in Nashville], but it’s being used and we’re selling it like crazy,” says Carrie Zeier, CEO and owner of RE/MAX Elite. “I think Nashville has done a great job of staying ahead of the curve and planning for that [demand], because prices of homes are very healthy.”

Nashville has advantages both economically and location-wise, Zeier says.

“We’ve always been known as Music City—[in 2016] at least 6,000 employees made up the entertainment and music industry here,” says Zeier. “Healthcare is another driver, as well as manufacturing and tourism and hospitality. For years, we would lose out on big corporations that went to Atlanta, Austin or even Charlotte. We’re winning those now, and that’s because of our low cost of living and the ease of doing business here.”

All told, investors have not been deterred—and, despite high prices and limited supply, the forecast is sunny. According to PwC and the ULI, the investor outlook for the markets in the top 10 has risen 12 percent in four years.

“There’s no financial indicator that says Seattle is in a bubble,” DeBord says. “Unlike the last bubble, buyers today are paying cash, have good jobs, large down payments and high credit ratings. Even with high prices, interest rates have remained low. Seattle’s job market will continue to attract people from all over the world, and our housing crunch will continue. We’ll likely see a slight slowdown in appreciation with high single-digit price growth, and a continued focus on building more housing units of all varieties to accommodate our growing population.”

There is the chance for a downturn, but one investors can withstand if they get in early and at a good price.

“There’s always a correction in the market in real estate—there always has and always will be,” Zeier says. “Nashville was the last to go into that recession and really one of the first to come out of it.”

“Real estate investors should be keeping a close eye on Durham,” Fitzgerald says. “This city is a few years behind Raleigh and offers many opportunities that might have already passed in other areas. You can still buy a great home in walking distance to all Durham has to offer for under $150,000—[but] the city offers too much for these prices to stay this low much longer.”

Overall, investor focus is shifting. Cities like Nashville, Raleigh, Seattle and others are establishing precedent.

“The trend of smaller markets displacing larger ones as investment hubs is setting a new course for urban development that is reshaping cities across the nation,” says Patrick L. Phillips, global CEO of the ULI. “These cities are positioning themselves as highly competitive in terms of livability, employment offerings, and recreational and cultural amenities.”

article written by Suzanne De Vita as RISMedia’s online news editor.

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Double-Digit Growth in the Wild West: Is a Bubble Next?

Row of new houses painted various colors in Seattle WA

Demand is forcing home prices out West to keep ticking up, even though the home-buying and -selling season is winding down, according to the September Zillow® Real Estate Market Report. Appreciation is highest in the San Jose, Calif., and Seattle, Wash., metropolitan areas, where prices have rocketed (in order) 10.3 percent, to a median $1,052,500, and 12.4 percent, to a median $455,800, year-over-year. Appreciation nationally is 6.9 percent, to a median $202,700.

Rents out West are also on a swift upswing. Rents in Riverside, Calif. have climbed 6.0 percent year-over-year—the most of the metro areas in the report—to a median $1,833. Rents in Seattle have gone up 5.5 percent to a median $2,189; rents in Portland, Ore., have increased 4.7 percent to a median $1,863; and rents in Los Angeles, Calif., have risen 4.5 percent to $2,714. Appreciation nationally is 2 percent, to a median $1,430.

“In these West Coast markets, heightened demand is being met with limited supply of homes for sale, which naturally causes prices to rise,” says Dr. Svenja Gudell, chief economist at Zillow. “That limited supply and high demand dynamic is a widespread phenomenon impacting high-growth metros like Seattle, as well as slower-moving markets, like Indianapolis.

“It might be easy to assume another bubble is emerging, with home values growing 10 or 12 percent per year, but don’t worry—the market is reacting to basic economic laws, and is behaving exactly the way we would expect it to given good overall growth, limited supply of homes for sale and decent housing affordability thanks to low mortgage interest rates,” Gudell says.

Nationally, there are now 12 percent fewer homes for sale compared to one year ago, the report shows.

Zillow_Sept_17

 

article written by Suzanne De Vita, RISMedia’s online news editor.

Millions of Owners Are Missing Out on Savings

Nearly 4.5 million borrowers are eligible to refinance and could lock in savings on their monthly mortgage payments but have not taken advantage, according to a new report from Black Knight Financial Services.

The average borrower stands to save $260 a month. Nearly 700,000 borrowers could save $400 or more per month, the report shows.

“The recent pause in the upward movement of interest rates continues to encourage late-to-the-game borrowers to refinance,” says Lynn Fisher, the Mortgage Banker Association’s vice president of research and economics.

But many owners are not refinancing, despite the potential savings.

“Our data doesn’t tell us about motivation,” says Ben Graboske, senior vice president of data and analytics at Black Knight Financial Services. “It leaves us to surmise that the reason is apathy, lack of awareness, and education.”

Some homeowners may still be underwater on their home loans, owing more than what the home is currently worth. Other owners may have a low credit score that is blocking them from taking advantage of lower rates.

Still, owners likely will have more time to take advantage. “I don’t think this will be the last opportunity [to refinance into a low rate], but I don’t have a crystal ball,” says Graboske. “There are enough pressures in the market—lenders getting more efficient—that we’re going to have competitive rates around for awhile.”

Source: “Reason to Refinance: 4 Million Homeowners Are Leaving $1 Billion on the Table,” CNBC (June 22, 2017)

Garry Thoughts

Whether you are a first time home buyer or a seasoned homeowner these suggestions make sense and we can all hear this information from time  to time.

Real Estate Statistics specific to Zip Code 80504

This report pulled today shows real estate activity specific to zip code 80504 in Weld and Boulder Counties. Notice the large spike of sold homes in June and July of last year reflected in the solid blue background points. Also, the red line indicates the median sold price, which you can see is rising.

80504

August 2015 – Zip 80504 Stats # of Sold, # of Active, Median Sold Price

 

 

 

 

80504 Res

 

 

 

 

Let the Numbers speak for Themselves

Longmont – Single Family

Home sales Year-to-Date are UP 36.8%

Number of Active Listings DOWN 21.5%

Median Price UP 1.8%

Average Price UP 4.8% 

 

Firestone/Frederick/Dacono – Single Family 

Home sales Year-to-Date UP 29.4%

Median Price UP 10.4%

Average Price UP 16.5% 

 

Boulder Area Residential Stats – February 2013

Here’s to another crazy month in Longmont Real Estate. The market is wild! –Number of homes sold are up 24%. –Average days to contract down from 113 to 68! That’s down 40%! –Median sales price up 24%! If you are still wondering or have any doubts, call me to get the absolute latest data for your neighborhood.

 

 


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Longmont home sales up 62% – Residential Stats – January

 

Longmont home sales up 62%

Broomfield home sales up 45%

Erie home sales up 52%
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Colorado Real Estate Snapshot

Colorado Real Estate Industry Snapshot-2012

 

The following is a snapshot of Colorado’s housing market:

I. Nearly three quarters of 3.6 million or 67.6 percent of Colorado residents are homeowners.

 

II. CARHOF (Colorado Association of REALTORS® Housing Opportunity Foundation gave $132,308 in 2011 to non-profit housing agencies across Colorado totaling over 7 million since 1990.)

 

III. Colorado consistently receives top rankings nationally as a place to live and start and succeed in business. Bits of proof of this is supplied below:

a. Best State to Invest (OwnAmerican.com)- 1st

b. Technology Industry Employment Concentration (TechAmerica Cyberstates 2010)- 3rd

c. Research & Development Inputs (Milken Institute)-3rd

d. Best States for Business (Forbes Magazine)- 4th

 

IV. Colorado’s unemployment rate is currently at 7.9%

a. Service industries make up the largest portion of Colorado’s gross state product. The two largest service industries are real estate (10%) and health care (12%).

b. Tourism is the second largest industry in the State of Colorado.

c. The second-largest aerospace economy in the nation is right here in Colorado. The state’s aerospace economy consists of businesses providing products and services for commercial uses, the military, and space exploration.

d. Colorado is expected to add over 23,000 jobs in 2012, more than any other state.

 

V. How Does Real Estate Affect the Economy?

a. Real estate contributes 10% of the total U.S. economy’s output.

b. If real estate sales decline

i. Construction jobs decline

ii. Unemployment increases

iii. Real estate prices decrease

iv. The value of homes decrease whether they are being sold or not.

v. The amount of home equity loans the homeowner can get decreases.

c. In 2011, Colorado consumers spent more on goods and services, with retail sales increasing 6.5% for the year. In 2012, retail sales are forecast to remain relatively strong with a gain of 4%.

d. Colorado home builders, for the second year in a row, pulled more permits than they did the year before.

 

VI. Homes Sold by Colorado REALTORS®- Year End 2011 (based off same time period in 2010)

a. 57,730 Single Family Units were sold in 2011, an increase of 3% compared to 2010. 12,476 Condos/Townhomes in 2011 were sold, a decrease of 1% compared to 2010.

b. The median price for Single Family homes was $196,667 in 2011, a 2% decrease from 2010. The median price for Condos/Townhomes is $126,667 for 2011, a 10% decrease from 2010.

c. About 80 percent of homeowners in Colorado have lived in their house over 1 year and more.

 

VII. Who were the Buyers?

a. 50% of recent home buyers were first-time buyers

b. The typical first-time home buyer was 30 years old, while the typical repeat buyer was 49 years old.

c. The median income was $59,900 among first-time buyers and $87,000 among repeat buyers.

d. 20% of recent home buyers were single females, and 12% were single males.

e. When considering the purchase of a home, commuting costs were considered very or somewhat important by 76 percent of buyers.

f. New home purchases were at the lowest level in nine years—down to 15% of all recent home purchases.

g. The typical home purchased was 1,780 square feet size, was built in 1990, and had three bedrooms and bathrooms.

h. 11% of buyers over 50 purchased senior related housing or in an active adult community.

 

VIII. Foreclosures

a. Colorado is ranked 11th in the nation for its foreclosure rate according to the Denver Post.

b. The state Division of Housing says that foreclosures are down 28 percent at the end of 2011. Many predict the number will continue to slowly decline in 2012.

c. Foreclosure-related properties, which made up roughly one in five home sales in the third quarter of last year, sold for an average 34 percent less than homes that were not “distressed sales,” according to the latest data from RealtyTrac.

 

Sources: Bureau of Economic Analysis; National Association of REALTORS®; Macroeconomic Advisors; Harvard Joint Center for Housing Studies, Colorado Multiple Listing Services, Realty Trac, U.S. Census Bureau, State Division of Housing; EconPost, Everitt Real Estate Center, Leeds School of Business, Denver Business Journal, Denver Post, Wall Street Journal, Colorado Office of Economic Development

 

November 2012 Residential Stats-

LOCAL Sales up an average of 38% in November … and 24% for the year !!!

DeMarie.BoulderCountyStats.November.2012