Buying a Home Archives - Fort Collins Homes

Forecast: 2022 Real Estate Market Will Be A Mixed Bag

From remote work trends impacting where people can live to affordability issues cropping up as home prices rise, the real estate markets in 2022 will have a fair share of new challenges and opportunities. According to the realtor.com® 2022 Housing Forecast, next year is set to be a mixed bag.

Housing trends to watch in 2022:
• While 2020-2021 brought a homebuying frenzy largely fueled by first-time millennial homebuyers, potential homeowners will face increased competition for at least the
next three years.
• Workplace flexibility and higher incomes may give employees the advantage in 2022 with more sellers looking to move because they no longer need to live near the office.
• The suburbs will become increasingly popular compared to big urban metros as home shoppers search for more space— a trend brought on by the pandemic. However, as
demand is expected to outpace new construction growth, buyers may have to sacrifice space due to affordability constraints.
• Hispanic homeownership is predicted to rise in 2022, driving housing demand and impacting the homeownership rate for years to come.

The takeaway:
“Whether the pandemic delayed plans or created new opportunities to make a move, Americans are poised for a whirlwind year of home-buying in 2022,” according to
realtor.com® Chief Economist Danielle Hale.

While buyer competition will remain fierce, more sellers will be entering the market. “We anticipate strong home sales growth at a more sustainable pace than in 2021,” explained Hale.

“Affordability will increasingly be a challenge as interest rates and prices rise, but remote work may expand search areas and enable younger buyers to find their first homes sooner than they might have otherwise,” added Hale.

With more than 45 million potential millennial buyers between the ages of 26-35, the market is expected to remain competitive.

George Ratiu, manager of Economic Research for realtor.com®, commented, “With most real estate markets expected to be competitive in 2022, it’s important to remember that you’re in the driver’s seat of your real estate journey.”

“The bottom line for buyers is to make sure you’re comfortable with your timeline and budget — and especially for younger buyers making this massive financial decision for
the first time. For sellers, take into account your local market conditions as well as the likely increase in the number of homes for sale, and price yours competitively.”

Give me a call to discuss your real estate opportunities in 2022!

Source: rismedia.com

Housing Inventory Has Increased Since Spring

There’s a lot of talk lately about how challenging it can be to find a home to buy. While housing inventory is still low, there are a few important things to understand about the supply of homes for sale as we move towards the end of the year.

The Number of Homes for Sale Usually Peaks in the Fall
In the residential real estate market, trends generally follow a predictable and seasonal pattern. Typically, the number of homes available for sale, or active monthly listings, peaks in the fall.

A look at the active monthly listings for 2021 shows that the number of homes on the market increased fairly steadily since spring. Realtor.com data shows an increase in active inventory month-over-month.

While data shows that the month-to-month gain lessened as the year progressed, the important takeaway is the latest monthly numbers continue to show growth. Buyers
had more options to pick from in recent months than they did in the spring.

That’s encouraging for buyers who may have paused their search months ago because they had trouble finding a home. Danielle Hale, Chief Economist at realtor.com, recently commented that buyers were presented with more options during the early fall than they had all year, and that’s not what happened in 2020. It’s still important to remember that while more homes were available for buyers, the market remained more competitive than it typically is at this time of the year.

Hale explained that a peak in fall inventory is in line with typical seasonal trends. While it’s impossible to say for certain what the future holds for housing inventory, data indicated that both buyers and sellers had opportunities during recent months.

What Does That Mean for You?
This isn’t the time to slow your search. Focus on your options with renewed energy and be prepared for ongoing competition from other buyers.

If you’re considering selling your house, realize that while inventory has been increasing, it is still low. Selling now means you’ll be in a great position to negotiate with buyers – and competition among buyers is good news for your bottom line.

Whether you’re buying or selling, there are opportunities to make your goals a reality at any time of the year. Let’s connect so we can discuss what’s going on with the
local market and current trends and what they mean for you.

Source: keepingcurrentmatters.com

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