Northern Colorado Market Archives

When to Reduce Your Listing Price

A seller’s market with low inventory can prompt buyers to raise their offer price to beat out competitors. Unfortunately, even in a seller’s market an overpriced listing will linger. Buyers pay attention to time on market and may assume something is wrong with a property that has not received an acceptable offer, and gone “stale.” It’s critical to determine what time frame is considered stale in the current market.

Since the summer of 2017, there has been a market shift in northern Colorado. While the shift does not suggest a full blown buyer’s market, signs of more balance between sellers and buyers is apparent.

Price reductions have increased compared to the first two quarters of 2017. It’s not unusual to now see a $5,000 to $10,000 reduction in the early weeks of the listing if an acceptable offer has not been generated.

Soaring home prices may make buyers pause, but houses are still selling fast. Nationwide, the average time a home spent on the market was 34 days in September. This is down from 39 days a year prior, according to the National Association of REALTORS®.

Some sellers may be adamant about “testing the market” with a higher than substantiated asking price. This strategy found success in the seller’s market of recent years. Currently however, limited showing activity and lack of an offer within the first 2-4 weeks of listing strongly suggest that the list price has missed the mark.

Sellers receiving market feedback that the property condition or features don’t support the list price can reposition swiftly and increase the likelihood of a quicker sale. Savvy buyers are watching the market for price reductions, especially for homes that appeal to them and they have already visited.

Source: “How to Know When to Drop the Asking Price on Your Home,” CNBC (Oct. 27, 2017)

Give our office a call or visit our website to discuss pricing opportunities for your home!

What’s Going On?…Mid-town Fort Collins

What’s Going On? is a monthly serialization of the commercial development planned in or in progress in and around Fort Collins. We start with a brief market overview and then the activity in a given area.

Between 2,000-6,000 apartments are in various stages of planning across Fort Collins. As many as 2,500 are planned for Mid-Town locations. Current median rents in Fort Collins are $900 for a one-bedroom apartment and $1300 for a two-bedroom. Rent in a proposed high-end project at the mall with studio and two-bedroom floor plans are within range.

Apartment vacancy in Fort Collins was 1.8% in 2015 and 2.7% in late 2016. The Colorado vacancy rate was recently at 5.2%. A vacancy rate of 5% is considered a balanced market. A vacancy rate less than 5% indicates that demand is greater than supply.

Mid-Town Fort Collins includes the Foothills Mall, which as of 2016, is reported to have 304,530 square feet leased (63% of the total square footage). Leases for another 40,000 square feet are nearing execution.

Activity in Mid-Town Fort Collins

Cycle Apartments are 405 high-end studio and two-bedroom apartments by McWhinney Development located on the east and north sides of the mall. Eighteen buildings with three to four stories will offer amenities including social fitness, clubhouse and pool, demonstration kitchen, social lounge, golf simulator, and bike and ski repair shops. Square footage for the apartments is 590-1119. Rents are $1,200 for the studio and $1,600 for the two-bedroom floor plan. Completion is mid-2017 with Baby Boomers and urban professionals as the target market.
225 Johnson Drive will include 195 apartments located north of Whole Foods behind Dog Pawlor, and south of Spring Creek Trail. The existing self-storage units and three duplexes will be razed. The five-story building will offer 4,000 square feet of office and retail space.
The gas station on College south of Spring Creek Trail, and across the street to the west of Chase Bank, will be redeveloped to an Elevations Credit Union.
Spring Creek Apartments will be located next to Whole Foods and include 168 units for occupants 55+ years young. Completion is anticipated in 2018.
Attorney Erik Fischer has plans to demolish five houses located at 1215 S. Shields and possibly build 97 apartments with one to two bedrooms and 11 single family homes.
Landmark Apartments plans to expand to the east of the current buildings with five additional two or three story buildings. In total, 68 apartments are expected.
At the northwest corner of Prospect and I-25, the Gateway at Prospect is a proposal for 650 single-family homes, apartments, and townhomes. The developer would have to widen Prospect to accomplish this project.
1,200 new apartments located by the new CSU stadium would include The Standard and The Slab. Beebe Christian School would be replaced with a five-story apartment complex.
100 apartments are proposed at 3425 S. Shields to replace a single family home.
The Overlook, located south of Horsetooth and JFK Parkway, would include 105 apartments.
A proposal for 170 apartments at 2800 S. Taft Hill Road for the 55+ years young market was submitted to the City of Fort Collins in April 2016, but there has been no further progress since that time.

6 Questions to Ask
When Considering Selling

These 6 questions will help you decide whether you’re ready for a home that’s larger or in a more desirable location. If you answer yes to most of the questions, you may be ready to move.

1. Have you built substantial equity in your current home?

Check your annual mortgage statement or call your lender to find out how much you’ve paid down. Usually you don’t build up much equity in the first few years of your mortgage, as monthly payments are mostly interest. But if you’ve owned your home for five or more years, you may have significant, unrealized gains.

2. Has your income or financial situation changed?

If you’re making more money, you may be able to afford higher mortgage payments and cover the costs of moving. If your income has decreased, you may want to consider downsizing.

3. Have you outgrown your neighborhood?

The neighborhood you pick for your first home might not be the same one in which you want to settle down for good. You may have realized that you’d like to be closer to your job or live in a different school district. Call one of our real estate experts to discuss what would be a good fit for you!

4. Are there reasons why you can’t remodel or add on?

Sometimes you can create a bigger home by adding a new room or building up. But if your property isn’t large enough, your municipality doesn’t allow it, or you’re simply not interested in remodeling, then moving to a bigger home may be your best option.

5. Are you comfortable moving in the current housing market?

If your market is hot, your home may sell quickly and for top dollar, but the home you buy will also be more expensive. If your market is slow, finding a buyer may take longer, but you’ll have more selection and better pricing as you seek your new home. Give one of our realtors a call with questions about our local market!

6. Are interest rates attractive?

Low rates help you buy “more” home, and also make it easier to find a buyer for your current home. Is the effort and cost of maintaining your current home becoming difficult to manage?

Source: RealtorMag.realtor.org, 2016

Big Expectations for Housing in 2016

Housing

Do signs point to another housing boom? Perhaps — home sales are poised to zoom to the highest levels since 2006 next year, according to a 2016 housing forecast issued by REALTOR.com.

Gains in new-home construction and existing home sales are both expected to push total home sales to the highest levels in years. The new-home construction market is expected to see the most gains in 2016, with REALTOR.com forecasting a 12 percent year-over-year increase in housing starts and a 16 percent year-over-year growth in new home sales. The gains in existing-home sales are expected to be more moderate, with expectations of a 3 percent year-over-year gain.

“Next year’s moderate gains in existing prices and sales, versus the accelerated growth we’ve seen in previous years, indicate that we are entering a normal, but healthy housing market,” says Jonathan Smoke, REALTOR.com’s chief economist. “The improvements we’ve seen over the last few years have enabled a recovery in the existing-home market, but we still need to make up ground in new construction, which we could begin to see in 2016. New home sales and starts will bring overall sales to levels we have not seen since 2006 and will help set the stage for a healthy new home market.”

Total sales for existing and new homes are expected to reach 6 million for the first time since 2006 next year.

2016’s Buying Force

Fueling the increase in total sales, REALTOR.com predicts three distinct segments of home buyers to dominate: older millennials (25 to 34 years old); younger Generation Xers (35 to 44 years old), and retirees (65 to 74 years old), Smoke says.

Millennials:

Millennials are expected to make up the largest advanced notice demographic of buyers in the coming year at 30 percent of the existing home market. “Driven by increasing income, millennials will seek out homes that meet the needs of their growing families – putting the most weight on the safety of the neighborhood and the quality of the home,” according to REALTOR.com’s forecast. “Commute time and a preference for older homes have these buyers looking in city centers and closer-in suburbs.”

Young Generation Xers:

Buyers between the ages of 35 to 44 years old are likely to make up the second largest population of buyers in 2016. “These buyers have rebounded from the financial crisis and are entering their prime family-raising and earning years,” REALTOR.com’s report notes. “More than two-thirds of the buyers in this age group already own a home. They will be moving out of a starter home into a larger home or a more desirable neighborhood.” The markets expected to see the most upticks from these growing families are: 1. Atlanta-Sandy Springs-Roswell, Ga. 2. Denver-Aurora-Lakewood, Colo.

Retirees:

The third largest segment of home buyers in 2016 are expected to be individuals or couples who are looking to relocate or retire between the ages of 65 and 74. New retirees are expected to fuel a trend in downsizing and seeking out ways to lower their cost of living. “They will likely put their home up for sale at the start of the home-buying season in March or April, and aim to make a home purchase following the sale of their home,” REALTOR.com®’s report notes. “This age cohort has a very strong preference for newly constructed homes and put the most weight on their ability to customize their home.”

Source: realtor.com