Sellers Archives - Fort Collins Homes

Greeley Ranks As One Of The Fastest-Growing US Metro Areas

If you think Denver has ballooned in recent years, there’s one pocket of Colorado where growth occurred at a significantly greater rate. And it’s probably not where you think.

Greeley, the county seat of Weld County, is an agriculture-based community that is attracting new residents from around the state and country. From 2010 to 2020, the population of the Greeley metropolitan statistical area (MSA) expanded from 252,825 to 328,981. The 30.1 percent increase makes it the fastest growing metro area in Colorado and the fourth fastest-growing metro area in the country, according to 2020 census data released in August, 2021.

The area’s growth is attributed in part to its location. Greeley sits 30 miles southeast of Fort Collins, about 53 miles east of Rocky Mountain National Park, and about 55 miles northeast of Denver.

While a large share of Weld County residents work in the Denver metro area, Weld’s proximity to Larimer County has also fueled both strong job and population growth.

Weld County is home to the University of Northern Colorado, which enrolls nearly 11,500 students. Large-scale factories include Leprino Foods, the world’s largest mozzarella cheese company, and JBS, one of the world’s largest meat processors. Weld County is represented as having a “pro-growth approach” in terms of attracting and retaining businesses.

Greeley’s development is also supported by a median home price that is significantly less than in surrounding communities. According to the Colorado Association of REALTORS® (CAR), the median sales price in July, 2021, for a single-family home in Weld County was $450,000, compared to $526,500 in Larimer County, $650,000 in Denver County, and $799,500 in Boulder County.

Another draw is that Greeley has “growth availability”. Unlike Boulder County with zoning laws and land-use regulations, or Broomfield County, the smallest county in Colorado, Weld has ample physical space to expand.

Folks seem to prefer Greeley’s small-town vibe. Its population of about 109,000 is large enough to have city amenities — chain restaurants, a Target, multiple shopping malls — yet small enough to retain a tight-knit feel.

Weld County’s younger population also played a role in its growth. In 2020, the average age of residents was 34.1, compared to 36.2 in Denver County, 37.8 in Larimer County, and the statewide average of 37.3, according to state data. Younger adults having children also contribute to the county’s growth.

The Hispanic population represents one of the fastest growing racial/ethnic groups in Colorado with a 21.6 percent increase in the past decade. Weld’s Hispanic population increased by 37.4 percent, likely contributing to Greeley’s growth.

Greeley is preparing to double in size in the next 40-50 years. Looking ahead, the focus is on responsible and diversified growth, including diversification of single family
residences and affordable housing, multi-family units, commercial properties, and industrial buildings.

Contact me with questions about housing opportunities throughout Northern Colorado!
Source: 5280 magazine

The New American Homebuyer

Due to a persistent short supply of homes, low interest rates, and readily available credit, single-family homes continue to command multiple offers replete with various sweeteners, such as inspection waivers and provisions to cover any appraisal value shortage.

However, homeowners who list their homes at too high a price can still run up against issues of appraisals coming in too low and buyers recognizing the house is
overpriced.

With all these factors in play, what are the qualities, priorities, and needs of the modern American homebuyer?

The State of the Market
The critical importance of location still applies to the current market. Where homes are available, buyers want to be in good school districts and near shopping.

However, agents report that buyers are compromising on their wish list because they become desperate for finding a home due to the low inventory.

Part of that compromise means moving out from central cities and even nearby suburbs to more rural areas. Some local homebuyers are getting priced out of
the market because out of state buyers are relocating to their areas.

Sellers are looking for clean, noncontingent cash offers.

If Sellers accept a financed purchase, they also prefer conventional, fixed-rate financing. Borrowers who qualify for VA or FHA loans are often given less consideration.

The 30-year, fixed-rate mortgage is hands-down the most popular product among borrowers. With interest rates on conventional, fixed-rate loans as low as they are, there is little, if any, advantage for most borrowers to choose an adjustable-rate loan.

While many lenders have programs designed for first-time buyers, most of those programs involve low down payments, and sellers are looking for cash offers or financing with larger down payments.

Other financing options gaining popularity include the Fannie Mae HomeStyle Renovation mortgage, which provides funds for projects ranging from repairs and upgrades
to energy updates and landscaping.

Regardless of the type of mortgage, speed is of the essence.

Higher down payments, offering to cover any appraisal shortfalls, and no home sale contingency will improve the chances for getting an offer accepted.

Popular Amenities
Homes offering open floor plans, move-in-ready condition, and a good combination of living areas, backyards, and work from home spaces are selling faster and fetch the best prices.

Though some people are choosing to move out of cities, there are still plenty of buyers who want to stay in a municipality. They primarily want to move into a home that offers a new and better lifestyle including more of a yard and child-friendly home features.

Looking Ahead
With rates expected to move up only slightly, if at all, in the next year or so, and housing inventory expected to remain constrained, the seller’s market for homes should continue for at least the next year.

Give me a call to talk about the best time to buy or sell!
Source: www.themreport.com

Is The Market Shifting?

Several indicators, including less offer competition, a decline in contract signings, and an increasing trend for buyers to feel remorse after their competing offer is accepted, all point to a changing market.

Lawrence Yun, chief economist for the National Association of REALTORS, notes that pending home sales have seesawed since January, 2021, indicating a turning
point for the market. “Buyers are still interested and want to own a home, but record-high home prices are causing some to retreat”, according to Yun.

Yun points to an increase in existing home sale prices of 23% between June, 2020 and June, 2021.

An anticipated rise in mortgage rates toward the end of the year in addition to higher overall home prices will add to the challenges that home buyers face.
Yun predicts the 30-year fixed-rate mortgage to increase to 3.3% by the end of the year and average 3.6% in 2022.

While bidding wars are still more common than a year ago, economists are noticing less competition. As more housing inventory gradually enters the market, buyers may face some relief.

In June, Redfin reported 65% of home offers faced competition, compared to 72.1% in May and 74.1% in April. But multiple offer situations are still higher than June, 2020, when the bidding rate stood at 56.8%.

Housing experts continue to note increasing buyer fatigue.

After losing out on a bidding war or getting priced out, some home buyers are choosing to wait for the market to ease before jumping back in.

Another emerging trend shows more listings returning to the market due to home buyers second guessing their accepted offer price, and subsequently backing out of the contract.

While a buyer may take an “I’ll offer anything” approach to win a bidding war, their enthusiasm for an accepted offer can wane as they crunch the numbers and experience pangs of regret over the price they agreed to pay. Flaws with the home that were initially overlooked may become more significant in the days leading up to closing.

These buyers may then look for an exit strategy, including the inspection contingency, assuming they didn’t waive it.

If they walk away from the deal, the house may go back on the market, sometimes with a stigma that there’s something wrong with it.

This trend continues to play out as bidding wars for a limited number of houses have grown more commonplace.

The housing market traditionally starts to ease as it heads into the fall. But real estate has hardly followed any historical normalcy over the past year since the pandemic.

Give me a call to talk about how to capitalize on the current real estate market!

Source: magazine.realtor

Is There a Housing Market Slowdown?

The rate of home price growth may be showing signs of slowing, and the competition for homes may be easing somewhat.

“The market’s topping out,” according to Mark Zandi, Chief Economist at Moody’s Analytics. It’s “starting to show cracks. It feels like we’ve hit the apex, and we’re moving to the other side of it.”

But that doesn’t mean the housing market is heading for a bubble. Real estate economists have long said the current frenzy in the housing market is not reminiscent of
the housing bubble nearly a decade ago.

Nationally, median home asking prices are more than 12% higher than they were after the first half of 2020.

Total national housing inventory is down 42% year over year as of June, 2021. There is still a severe shortage of homes for sale and some buyers are getting priced out of
the market.

Economists are generally predicting an overall slowdown in prices and more moderation. Many potential home buyers are still eager to purchase so they can take
advantage of low mortgage rates.

In Colorado, a strong month for new listings in June helped give potential homebuyers a little hope and opportunity. However, the volume of sales and homes going under
contract continued to grow as well.

Statewide, new listings in June rose 20% to just over 12,000 homes. Offsetting those new listings, June also delivered 10,256 homes statewide under contract. Further
diluting the gains in new inventory, another 9,857 single-family properties closed statewide according to the latest data from the Colorado Association of REALTORS® (CAR).

Across Colorado, average sale prices continue to set record highs that are as much as 50% higher compared to early summer of 2020, and inventory remains lower than a year ago at that time. However, there are some signs that suggest a slowing in some areas.

Colorado agents report a slowdown in showings, a reduced number of offers being submitted by buyers, and some price reductions showing up for homes that have not sold.

This is typical market activity for July and into August so the real question of whether the market is changing will be determined in the fall.

In spite of the signs suggesting a quieting of the market, prices are not expected to come down.

Danielle Hale, realtor.com®’s chief economist, believes, “Buyers aren’t going to get a deal, but they might be competing with fewer offers.”

For now, buyers have an opportunity to take advantage of some price reductions and a slower pace, and still get into the market.

When the time is right, let’s talk about how you can navigate the current market and make your next move!

Sources: magazine.realtor, realtor.com, coloradorealtors.com

Home Construction Hiccups

Prices for lumber have surged more than 200% since June, 2020, adding an estimated $36,000 to the price of an average new single-family home, according to the National Association of Home Builders.

The rising and volatile costs of lumber continue to hamper the new-home and remodeling markets. Lumber prices nearly doubled over a four-month period in 2020 and have continued to reach new highs. The price and availability of building materials have been cited as one of the top challenges that homebuilders face at a time when
the real estate industry is calling for more housing inventory to meet surging buyer demand.

Forty-seven percent of builders said they were “including price escalation clauses in their sales contracts” to help protect themselves from ongoing price increases in the lumber market, according to recent builder and housing surveys.

Builders are pre-ordering lumber to help avoid cost increases, and 22% are obtaining price guarantees from suppliers. But those price guarantees don’t often stretch past two months.

The sky-high prices may soon back off: Lumber futures have posted slightly weaker numbers as of early June.

Even as prices edge down slightly, they will still be well above historic averages, even as much as twice the average compared to the past 20 years.

Believing that a decrease in lumber pricing is inevitable as higher prices tame demand, some builders are recommending a delayed start of home building projects until fourth quarter, 2021, or first quarter, 2022.

How is the Northern Colorado New Home Market Affected?

Dana Spanjer with Spanjer Homes indicated that uncertainty surrounding COVID and recent price increases have delayed spec home construction for as much as a year. Material escalation clauses are included in their contracts for clients building custom homes.

Alexa with Landmark Homes reported one listing being released at a time for contract in each of their seven Northern Colorado communities and sale prices are subject
to material pricing. Build time is 8-10 months after the initial 1-2 month process of obtaining permits.

Jim Hauan, REALTOR representative for Sage Homes, shared that lot reservations are converted to contracts after completion of the foundation so the home can be priced with current lumber costs in mind. Turn around time from contract to close is 11 months.

Give me a call to talk about opportunities for working with a local builder for your next home!

Source: magazine.realtor