Buying A New Home Archives - Fort Collins Homes

What’s Ahead For Real Estate in 2022?

The housing market is at a turning point, and if you’re thinking of buying or selling a home, you may have questions.

Is it still a good time to buy a home?
Should I make a move this year?
How does the remainder of 2022 look for residential real estate?

Mortgage Rates Are Subject To Inflation
While buyers question where mortgage rates will go in the months ahead, there is no crystal ball to foretell what will happen. What housing market experts know for sure is that the record-low mortgage rates during the pandemic were an outlier, not the norm.

In 2022, rates have climbed over 2% due to the Federal Reserve’s response to rising inflation. Greg McBride, Chief Financial Analyst at Bankrate, explains:

“Until inflation peaks, mortgage rates won’t either. Without improvement on the inflation front, we don’t know where the interest rate ceiling will be.”

The Supply of Homes for Sale Is Projected To Increase
This year, particularly during the spring, the number of homes for sale in the US increased. That’s partly due to more homeowners listing their houses, but also because higher
mortgage rates helped reduce buyer demand. As buyer demand moderates, inventories rise.

Experts say that growth will continue. Recently, realtor.com increased their 2022 projections for inventory gains dramatically from a 0.3% increase at the beginning of the year
to a 15.0% jump by the end of the year.

While an increase in home selection is great news, there is no sudden surplus of inventory on the horizon. Housing supply is still low. Finding a home will still be a challenge, but not as difficult as it has been over the past two years.

Home Price Appreciation Will Continue
Due to the imbalance between the number of homes for sale and the number of buyers, the pandemic led to record-breaking increases in home prices. According to CoreLogic, homes appreciated by 15% in 2021, and they’ve continued to rise this year.

Selma Hepp, Deputy Chief Economist at CoreLogic, explains why the housing market will see deceleration, but not depreciation, in prices:

“The current home price growth rate is unsustainable, and higher mortgage rates coupled with more inventory will lead to slower home price growth but unlikely declines in home prices.”

If you’re thinking about buying your first home or you’re ready to make a move, it may make sense to do so now before prices climb higher.

Contact me and let’s work together to determine the best plan for your move.

Source: KeepingCurrentMatters

Prepare For The Busy Housing Market

Homebuyers continue to face an uphill battle in the current homebuying season.

Home values skyrocketed by nearly 20% in 2021, according to the recent data by the S&P Case-Shiller national index of home prices.

While housing prices aren’t expected to drop this year, some experts believe home values will increase at roughly half the rate (single-digit increases) of the peak in 2021.
Here’s what to expect from the market in coming months and what you can do about it.

Preparing to Sell
The good news for sellers is that buyers looking for homes are still expected to outnumber the homes for sale. Overall, home prices are expected to continue to increase, but demand can vary from one neighborhood to the next.

If you plan to complete any maintenance or major upgrades before listing your home, start that process as
soon as possible. You’ll need more time to obtain materials and find trade professionals to do the work.

While market activity still favors sellers, there could be a reduction in bidding war activity, depending on the local market. In Northern Colorado, bidding wars continue
to be common across price ranges.

Preparing to Buy
Mortgage rate increases are forecast to continue. In early April, 2022, rates were about 1% higher compared to April, 2021. Determine how this affects your buying power and
adjust your target price range accordingly.

Know your home buying budget so you’re clear about what you’re willing to spend for a property that meets your needs.

Save for your down payment, closing costs, and unexpected repairs and maintenance.

First time buyers looking for more affordable homes will continue to face strong competition from a large demographic of buyers in search of their first home.

Given that specific types of homes will have more demand, be as flexible as possible with the type of home you want to buy.

A larger percentage of the workforce has the opportunity to work from home, which may fuel competition in housing markets typically known to be more affordable, such as smaller cities and suburbs of cities. Be open and flexible about where you want to buy.

Due to the strong seller’s market, buyers need to be patient. It’s important to buy when the time is right for you. Buying a home should make sense for your personal and financial situation. Don’t make a panic-driven buying decision and end up with a home purchase that causes regret.

You may not find your dream home today, but a home that works for you right now can be a stepping stone to another home down the road.

Contact me to discuss your plans for selling your current home or buying your next home!

Source: Nextadvisor

Make A Cash Offer On A House
With Or Without Cash

In the current real estate environment, you may be competing with other buyers for your next home purchase. Making a cash offer can improve your odds in a bidding war.

When you find a property and submit an offer to purchase it outright without financing, the funds typically come from savings, selling an existing home, gift money, or borrowing against another asset.

But not everyone has enough cash or assets to make a cash offer, including first-time home buyers.

Another option is to work with a company that will pay cash on your behalf.

Here’s how this typically works:
1. The company provides the cash for your offer from its own funds.
2. These companies typically promise a quick closing which appeals to the seller, and may give you an edge in a bidding war with other buyers.
3. When the purchase is completed, the home is held by the company until you finalize your mortgage with your lender.
4. The company then sells the home to you. Your new mortgage repays the company.

Benefits of buying a house with cash

Cash deals typically close faster and involve less hassle for both buyer and seller.

Paying in cash can allow you to remove the financing contingency from your offer. Without the financing contingency, you bypass the time-consuming steps in the mortgage
process and there is less risk to the seller that you might cancel the contract.

Cash buyers typically pay less closing costs.
• Mortgage loan fees are eliminated.
• An appraisal is optional.
• There is no mortgage loan interest to pay
• Fees paid to a title company and/or attorney may be less.

Drawbacks of making a cash offer

The biggest challenge of a cash offer is the potential for draining your financial resources, reducing your liquidity, and leaving you financially vulnerable.

Remember that the costs of homeownership are ongoing, such as:
• Property taxes
• Homeowners insurance
• Repairs
• Maintenance
• Furnishings
• HOA fees (if applicable)

Be sure to maintain an emergency fund to cover unexpected expenses such as medical bills or home repairs.

Paying with cash also means that mortgage interest will not be deducted on your federal income tax return.

Of course, the right move depends entirely on your personal finances and long–term goals. If you’re not sure what’s best for you, speak to a trusted financial advisor.

Give me a call to explore all your options for your next home purchase!

Source: themortgagereports.com

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

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