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.
Re-Blog of a really great article
It seems the transition is complete. In a recent survey by Redfin, 82% of agents described now as a “good time to sell,” while only 57% described now as “a good time to buy.”
Let’s back up to the third quarter of 2012, when 54% of the agents polled considered it a good time to sell, but 75% called it a good time to buy.
This complete ‘180’ in the housing markets can only be backed by dangerously low inventory, prices that continue to appreciate and low interest rates pushing buyers to buy now.
I recently wrote about a house my husband and I put an offer in on. I felt fairly confident about our offer and we’d managed to tour the house less than 24 hours after it had gone on the market, putting our offer in the same day. Unfortunately, within a day, four other offers were put in and the seller chose a higher one.
As a buyer, this is discouraging. It’s frustrating to know there is zero ‘wiggle room’ when it comes to negotiations and often homes are selling above the appraisal value.
On the other hand, I can only imagine sellers are riding high and feeling good, as multiple offers pour in on their homes within a day. In fact, 98% of agents surveyed by Redfin agreed that sellers are becoming more confident about the market.
With that in mind, 83% of agents agree that buyers also are becoming more confident, so it’s not totally a lost cause for those of us trying to find a home.
Working in this industry, I can’t tell you how many people I’ve heard say “the time to buy is now.” Well, as a buyer (often frustrated with this sellers’ market), I can tell you that the time to sell is now as well.
Humor Alert! – 7 Real Estate Riders that Should Exist, but Don’t
1. By Appointment Only (And Good Luck With That)
Those ‘By Appointment Only’ riders don’t seem to be too terrible at a glance, and they’re not in most cases – especially when they give the sellers the chance to scrape up the oatmeal their toddler just plastered on the wall, clean up their bedrooms and vacate the premises so the buyer and the property can have some alone time.
But then there are those sellers who need 4 days’ notice, can only show their home on Wednesdays between 1 and 1:20 and Thursday after 10:15 pm, required 3 reminder calls and, because they refuse to put a lockbox on the house, want the buyer’s broker to knock three times and give a whippoorwill call before entering. This is the group whose listed homes should bear this fantasy sign rider.
2. Flexible Zoning: Lawn Parking Allowed
Flexibly zoned neighborhoods are fantastic for those who want to build another unit or have a little urban farm. The challenge with flexible zoning is that your neighbors’ “dream” uses are also allowed – and they might not exactly line up with your client’s idea of an idyllic, semi-rural setting.
Some of the other sorts of folks attracted to flexible zoning find it suits them because they need space for their 20 ‘vintage’ automobiles – space to stores them for the 10 years until they retire and have time to fix them up. That might become a challenge with the makeshift chop shop spot is the neighbors’ front yard.
3. Wildly Overpriced
4. Looooooooooong Sale
Part of buyers’ outrage at the concept of a short sale is the paradoxical, misleading nature of the transactional name. Nothing about a short sale is short, except the amount of proceeds the seller will have to payoff their mortgage. I wonder if buyers would be a little less outraged if we flipped the script and went in the direction of extreme truth in advertising? Maybe some bold listing agent will one day change all their short sale riders to be upfront about the “loooooooong” length of the escrow that is part of the trade off for low, short sale pricing.
5. Unnatural Lighting Galore
Ever watch a house hunting reality show on TV? Seems like every buyer’s dream is a home with more windows than walls, the better to let in beams of natural light. Unfortunately, in some eras, windows were costly and thought to make a home harder to cool and heat. Additionally, homes with additions or much reconfiguring done over the years can end up with bathrooms and kitchens that lack windows and even ventilation.
In homes like these, where fluorescents rule the day, the more accurate way to describe the situation might be ‘Unnatural Lighting Galore.’
6. Down and Going Neighborhood
“Up-and-coming neighborhood.” Is that label a blessing or a curse? That’s situation-specific, as it does hold the promise of a value-priced home that will be worth more in the future, based on the hope that the area is already on track to overcome its stigma. But the truth is, sometimes areas don’t really come “up” for a decade or two after people start calling it ‘up and coming.’ Other times, up and coming neighborhood is really just a pretext for charging more than the comparables – much more, in some cases.
But what about those neighborhoods that used to be nice, but have taken a hit by the recession, or the construction of a big mega-mart smack in the heart of the area? Sure would be nice (albeit unlikely) if sellers would flag this for buyers, with one of these riders.
7. Basement Flooding → Underground Pool!
Just last week I showed a home which had been the subject of multiple pre-listing inspections. The reports mentioned standing water in the crawl space, and I was on a mission to see precisely what the inspectors meant. I searched high and low and couldn’t find a door to the basement, but finally managed to use my fingernails to pry up a floorboard hatch in the entryway coat closet. And lo and behold, I found myself face to face with a few feet of standing water – in California, mind you. Weeks after the last rain.
To be a great agent for a long time, you’ve got to be an optimist. But there is a line beyond which looking on the bright side can border on flirting with delusion. As I was discussing the property and our viewing with my clients, there was nothing else to do to but to have fun with the situation, so I mentioned the underground pool – laughs were had, all around. Here’s to truth-telling and staying on the right side of the optimism/delusion line, my friends!
Read the full original article from Trulia Blog here- http://pro.truliablog.com/just-for-fun/7-real-estate-riders-that-should-exist-but-dont/?ecampaign=anews&eurl=pro.truliablog.com%2Fjust-for-fun%2F7-real-estate-riders-that-should-exist-but-dont
Housing Statistics for Longmont Colorado —
Week of 2/25 to 3/4
# of Homes Newly Listed for Sale this week- 40
# of Homes that have gone Under Contract this week- 33 (average of 46 days to offer)
# of Homes that Sold this week- 36 (average of 76 days to sale)
The local market here in Longmont is VERY active. The buyers that I am showing homes to right now are all experiencing the same situation: they see a few homes online that they identify to go see, in a matter of days (sometimes even hours) the list of homes shrinks to a fraction of what it was because the homes are all under contract. Sellers are receiving offers faster than Buyers can schedule showings!
It takes an experienced, aggressive, and available agent to make sure that you secure the home you want. Call me if I can help you.
Interesting in depth article here, but I’ll highlight few of the key points, in my opinion at least:
Denver-area homes appreciated 12.1 percent in 2012 from 2011, twice the national average.
“It is an index,” he said, and not just a change in the average or median price of homes. “I don’t pay too much attention to average and median prices,” he said, as they are influenced by the mix of homes selling.
“Buying is cheaper,” Thibodeau said. “After you have been in your home for three years, it is cheaper than renting, given the mortgage-interest deduction and everything. But you have to plan to stay in your house for at least three years.”
Thibodeau also said that low mortgage rates are here to stay.
In fact, he said he doesn’t expect mortgage rates to skyrocket again in his lifetime.
He said he expects that Denver-area homes could rise another 6 percent or so this year from 2012.
Thibodeau said that Colorado homes did not have a bubble during the great recession.
“From peak to trough, Colorado homes fell by 14 percent,” Thibodeau said. “A 14 percent drop is painful, but not a bubble. There was no bubble in Colorado.”
Formerly battered real estate markets such as Miami and Phoenix are currently staging big percentage gains.
Miller’s “bottom line” projections include:
- User activity will remain strong — Landlord market coming soon.
- Investment activity to stay strong.
- Overbuilding not likely.
- Built-to-suit activity to continue.
Read the full article here: http://insiderealestatenews.com/2013/02/denver-saw-no-bubble/#more-22160
- More Coloradans paid off home loans in 2012 (denverpost.com)
- Colorado Real Estate Snapshot (legacyrealtor.wordpress.com)
- Metro Denver apartments scarce as rents soar (denverpost.com)
- Sellers Seem To Be In Control In Denver Real Estate Market (denver.cbslocal.com)
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.
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
Garry and Lisa in the Longmont Newspaper!
Continued historically low interest rates and five-year lows in inventory are the highlights of the Longmont-area housing market heading into 2013.
Following the bottom falling out of the market in late 2008, it has been a long, slow climb back up for the real estate industry. The so-called Great Recession and the economic upheaval that went along with it have made for a bumpy ride the past several years.
But in 2012, things seemed to return to normal, with the federal government’s incentives and the worst of the foreclosure situation having run their course.
Single-family home sales picked up in the St. Vrain Valley in 2012. Total homes sold in Longmont were 1,082, a 21 percent increase over the 892 sold in
2011. The average days on market dropped 16 percent, to 88 from 105 in 2011, and the median sale price was up nearly 12 percent: to $230,000 in2012 from $206,000 in 2011.
But the number of active listings — 280 in Longmont at the end of 2012, compared with 309 at the end of 2011, according to Kyle Snyder of Land Title Guarantee Co., who compiles monthly stats for the Longmont Association of Realtors — is at a five-year low, meaning buyers’ choices are limited.
“I haven’t seen a lot I’ve liked, but I like this,” prospective homebuyer Barbara McCormick said as she toured a house in the Yeager Farms neighborhood last week.
Her real estate agent, Dene Yarwood of Wright Kingdom Real Estate, reported the next day that McCormick had decided to buy the four-bedroom, three-bath house.
Yarwood, a broker/associate with Wright Kingdom and 2013 president of the LAR’s board of directors, said the Longmont real estate market really started ramping up last spring.
“It’s still such a great time to buy,” Yarwood said. “Interest rates are still so, so low. And prices haven’t climbed as much as we’d like them to yet.”
She said the normal laws of supply and demand don’t necessarily apply in the market right now. Given how low inventory is, it would seem prices should be up significantly, but they are, in fact, lagging, Yarwood said.
“I think it’s because of the issue that we had with appraisals before 2008 that put us in this position to begin with,” she said. “In 2008, we were too free with our pricing, and right now we are being too conservative. If we can find something in the middle, it will help both buyer and seller.”
While there is building going on — at Yeager Farms, for example — the homebuilding industry is still recovering from the complete stop of just a few years ago, Yarwood said.
“Suddenly after our market changed last March, it took a little while to get it going again,” she said. “There is some construction going on, but I think now they’re kind of playing catch-up.”
Lisa Henry, a broker/associate with Legacy Real Estate Group, said the market now is almost a complete reversal of the way things were about seven years ago.
“Then, we had more listings than we had buyers,” Henry said. “Now, we have more buyers than listings.”
For example, she said, in Longmont, the largest number of houses sold are always in the $175,000 to $250,000 range. At the moment, Henry said last week, there are 40 of them on the market, “and of those properties, 19 are under contract.”
Once you factor in specifics such as location and layout of a particular house, the field of choices for the buyer is narrowed even further, she said.
the plus side, for the buyers, “they can buy more house for the same (monthly) payment than they did 10 years ago,” Henry said.
On the seller end of things, the low inventory doesn’t automatically mean people can simply hand out a for-sale sign and fetch what they’re asking, according to Yarwood.
“I think you still have to present a good product to attract buyers,” she said. “And while we’re not back to pre-2008 pricing, we’re inching up, and that’s a good note for sellers.”
Josh Hunter, the owner/broker of Metro Brokers/St. Vrain Realty, said he’s noticing buyers are most interested in “the shiny one on the shelf” — referring to how clean a home is, how move-in ready it is and what kind of improvements have been made, such as with kitchen appliances.
“Those are where we’re seeing 10 days — we’re seeing low days to an offer,” Hunter said. “Luckily, I was in four or five of those deals (last) year, where we were seeing multiple offers in just a few days.
“Those well-cared-for, ready-to-move-in homes, no joke, should be receiving an offer within 30 days,” Hunter said. “I’ve been telling people: location, location, condition.”
In the last week, my office has put three new listings on the market, all three have received multiple offers within the first few days on the market!
$179,900 in Thornton – 2 offers in first 5 days
$224,500 in Longmont – 2 offers in first 3 days
$289,000 in Firestone – 3 offers in first 4 days
We Need More Listings!!
The local Northern Colorado / Denver Metro housing market is experiencing a serious shift towards the Seller’s advantage. Forget about everything you’ve heard before, and find out if this is finally your year to move, successfully.
New homes are hot
What’s new is well…new again. According to a late December Census Bureau report, new home sales are growing at their fastest pace in two years.
The report showed new home sales are up 15 percent from 2011.
This shows that as the market recovers, more consumers are using the opportunity to go after the home of dreams.
Fantastic article! The local Longmont market, and all surrounding areas for that matter, are smokin’ hot right now! It reads, in part…
1. Both asking price and rents jumped 5 percent from last year
2. Mortgage rules got a renovation.
3. Delinquency & foreclosures are at record lows.
4. 93% of Millenials plan to buy.
5. Investors rush in.