HERE’S ONE MORE REASON WHY IT’S A GOOD TIME TO BUY
There’s a compelling list of arguments for becoming a homeowner in Northern Colorado in 2021. We can tell you about the near-record low interest rates, or the prospects of building wealth with one of the best assets you can hold – a single-family home – in one of the most attractive places to live in the United States.
One more reason that you might want to get in the housing market sooner than later?
Corporate investors are also attracted by these very same benefits. And the longer you wait to launch your home buying process, the stiffer the competition may get for finding your next – or first – home.
In growing numbers, large investors are buying up homes in desirable American markets where they see growing populations. It means the potential to earn robust rental income, or to simply sell them for a healthy profit to property management companies. Either way, these are homes that will no longer be available to individual buyers. The net effect is that an already-tight supply of homes for sale may only get tighter in coming years.
If you’ve been on the fence about buying because you’ve heard it’s a tough time to find a home, we think it’s actually your opportunity to get out in front of a housing market trend. Before deep-pocket investors arrive with their bidding power in Northern Colorado, it’s a good time to lock in your low interest rate, start building your wealth, and switch from an unpredictable rental payment to a fixed monthly mortgage.
Ready to put volatile rental payments in your rearview mirror? Call me to see how you can become a homeowner in today’s tight market and stabilize your housing costs for the future.
6 TIPS FOR FINDING SUCCESS IN THE NEW CONSTRUCTION MARKET
If you’re sizing up what it takes to buy a new construction house in Northern Colorado, there is much more to consider than just picking out the neighborhood.
As we’ve discussed in this series, there are key questions to ask about the construction process, and key pieces of information to gather. To bring it all together, it helps to work with a Realtor who knows the ropes when it comes to working with builders.
And it helps to prepare. With that in mind, here are some pointers to make sure you’re set up to move from contract to closing:
1. Pay attention to costs. Construction bills are on the move, with lumber prices soaring as much as 250 percent since spring of 2020. Additionally, costs are rising for labor, permits, and other building materials. Recognizing these factors can help you avoid sticker shock.
2. Stay flexible. Supply chains are unpredictable and labor shortages are making it harder on builders to move fast, so the timing for your new construction home may not go according to your wishes.
3. Get qualified. Meet with your lender to know the size of the loan you can afford before you step out to look at show homes and work up a contract. Knowing your loan limits means you’ll be prepared to sort through a builder’s pricing options.
4. Know your preferences. There are builders who won’t discuss pricing until they’re sure about the structural and design details you want in your new home.
5. Watch the market. In some cases, builders release homes into the market on a weekly basis, practicing a strategy of “highest and best offer.” Work with your trusted real estate advisor to understand the latest market statistics and comparable sales, so that you can be ready for the price premium that comes with a new construction home.
6. Budget for what’s next. After you close on the house, what else do you need to make your house a home? What about window blinds, landscaping, fencing, etc.? Know what’s covered by the builder, and what you need to budget for.
Overall, know that the new construction market in recent months is dynamic. Planning, coupled with the right real estate advisor, will put you in position to succeed.
REPORT: U.S. HOUSING INVENTORY SHOWING HINTS OF RECOVERY?
After many months of seeing the housing supply shrink – a key factor behind rising prices in most markets – there is evidence that inventory could be on the upswing.
According to the May 2021 Zillow Market Report, inventory for sale across the country increased by 3.9 percent from April to May. That’s the first monthly gain in nearly a year (June to July 2020), and only the fifth monthly gain over two years.
Much of that inventory growth was influenced by the biggest cities in the U.S. Zillow said housing supply increased in May in 43 of the country’s 50 biggest metro markets.
How long will the inventory gains begin to make a difference in home price growth? Not right away, apparently. May home sales show that average sale prices nationwide were up 1.7 percent between April and May; for the 12 months between May 2020 and May 2021, average sale prices increased 13.2 percent.
Locally, inventory picked up in April, with the number of homes for sale across the eight Northern Colorado sub-markets increasing 18.7 percent over the supply totals in March. But local inventory tightened up again slightly in May, down 6.5 percent from April. Local markets that showed an uptick in May were Loveland (up 13 percent), Wellington (up 15.7 percent), and Berthoud (up 44.1 percent).
Are we seeing the start of a trend toward greater supply in our region and across the country? We’ll be keeping an eye on this topic, so check back with the Real Estate Insider for an update this fall. Source: www.zillow.com
BEST TIME TO SELL? IT MAY MATTER, IT MAY NOT.
These days, with much demand in pursuit of little supply, there’s no bad time to be listing your house. In fact, profit margins for the typical seller were up 26 percent between early 2020 and early 2021, according to real estate statistics watcher ATTOM Data Solutions.
Still, ATTOM’s data analysis shows that recent history smiles most on sellers during May. ATTOM reports that between 2011 and 2020, sellers pocket the best premiums in May (13.4 percent on average), followed by June (11.7 percent). Which were the top five days to sell during May during the past decade? May 16, May 19, May 20, May 23, and May 27.
Of course, that was then. If you’re watching today’s market, you probably know that buyers are standing by at any time. When you list just may not make a difference.
REAL ESTATE BY NUMBERS
$93,870. Estimated cost impact of government regulations on the average sales price of a newly constructed home, according to the National Association of Home Builders. The figure represents 23.8 percent of the $397,300 average.
5.3 percent. Rate that rental housing prices grew in April across the United States, based on CoreLogic’s latest Single-Family Rent Index report. That’s more than double the 2.4 percent growth reported in April 2020.
$4 million. Price that The Town Church paid for the Harmony School building, located at the northeast corner Harmony and Timberline roads in southeast Fort Collins. The 16,459-square-foot building is currently used by the Harmony School Christian Early Childhood Center.
39,000. Square footage of a repair facility that Inland Truck Parts Co. plans to build on 2829 First Avenue in east Greeley. The new complex is expected to open in February 2022.
$11 million. Price paid by a Denver-based real estate investor for three commercial buildings in the Campion Industrial Park in south Loveland. The buildings, located at 225, 253, and 255 42nd St., cover about 100,000 square feet combined.
$2.9 million. Price paid by investors for a mixed-use property at 533 E. County Road 8 in Berthoud. The deal includes a 1,636-square-foot single-family house, 1,560-square-foot outbuilding, and a 20,000-square-foot industrial building, as well as six acres of land.
$11 million. Listing price for the Buckhorn Ranch, located at 9840 Buckhorn Road in the foothills southwest of Fort Collins.
$45 million. Sale price for the Foothills mall property in south Fort Collins. The 662,000-square-foot shopping center, once known as the Foothills Fashion Mall, was purchased by an investment group that includes Loveland-based McWhinney Real Estate Services Inc.
$101 million. Price that investors paid for the Bucking Horse Apartments community, located at 2274 Yearling Drive in east Fort Collins. The 322-unit complex was built in 2018.
$71 million. Price that investors paid for the Gateway at 2534, a 254-unit apartment complex at the southeast corner of the interchange of Interstate 25 and U.S. Highway 34.
$8.5 million. Price paid for an 88,000-square-foot industrial flex and medical office building in west Greeley. Located at 244 Dundee Ave., near the corner of 71st Avenue and Fourth Street, the building is partially leased by Banner Health.
$2.4 million. Price that investors paid for a 15,750-square-foot commercial building at 225 N. Lemay Ave. in east Fort Collins.
224. Number of apartment units proposed for the new Copper Platte apartment complex, planned for a site on the east side of the Greeley Mall in southeast Greeley. Developers plan to build eight apartment buildings, as well as a clubhouse, pool, and playground.
$3.65 million. Sale price for 16.76 acres of development land located in the 2534 commercial development in Johnstown. New owners plan to build three industrial buildings totaling 280,323 square feet.
5.5 million. Estimated deficit in housing units across the United States, based on a recent report from the National Association of Realtors. The report bases the deficit figure on the difference between historical housing construction volumes and actual construction over the past 20 years.
113. Acreage that an Arizona real estate company recently acquired along South Lincoln Avenue in south Loveland, near Campion. The new owner projects construction on the site to start some time in 2022.