Friday, March 27th Market Update.
So many questions. So many opinions. So many experts. Nobody has a crystal ball, but there are some great stats out there. I’ve also given my opinion/observations and a link to a podcast from one of the most trusted voices in real estate (Brian Buffini) and his financial expert (Lawrence Yun)
Here are the questions I’m hearing from local Buyers and Sellers:
- Spring is normally the hottest time to sell. What’s happening right now in the market?
- I’m currently buying a home in Northern Colorado, what should I do?
- I was thinking of buying or selling, is that still a good idea?
- What’s going to happen in the coming months with values and how will it affect my home?
So “What’s happening right now in the market?” Here are some stats for Fort Collins homes priced between $250K and $500K. (If you have a home in Wellington, Loveland, Greeley – feel free to contact me for specific data.)
For the following dates here is listing and showing activity (keep in mind here in Northern Colorado it is my opinion that concern about the coronavirus really started to escalate on Friday, March 13th – go figure!).
Week 1
Sat, March 7 to Friday, March 13
- 34 new listings. Currently, 10 are still Available. 24 are Under Contract. No Withdrawals
- 431 showings with the average home receiving 3.95 showings that week.
Week 2
Sat, March 14 to Friday, March 20
- 32 new listings. Currently, 13 are still Available. 19 are Under Contract. No Withdrawals
- 315 showings with the average home receiving 3.32 showings that week.
Week 3
Sat, March 21 to Friday, March 27
- 27 new listings. Currently, 22 are available. 4 are Under Contract.1 Withdrawal
- 186 showings with the average home receiving 2.78 showings that week.
As we can see listings are somewhat consistent over all 3 Weeks. Weeks 1 and 2 have a very healthy number of homes that are under under contract AND have stayed under contract. Week 3 there is certainly a greater number of homes currently on the market compared to Weeks 1 and 2, but homes are still getting 2.78 showings a week and it will be interesting to see how many of these homes go under contract over the weekend.
Currently on the Market, There Are:
Attached properties on the market (Townhomes, Townhouses, Condos)
- 79 available
- 57 under contract
Single Family Homes Inc. income properties (ie. homes currently rented)
- 74 available
- 150 under contract
It needs to be stated that Attached Properties always take longer to go under contract, there is just a smaller buyer pool for this style of property vs. single family homes. I would suggest that there are twice the normal amount of Attached Properties on the market today than I would normally expect for this time of year.
Regarding Single Family Homes – 74 homes is probably triple or more than the amount I would normally expect to see currently available right now. That said there are 150 homes currently under contract – which is very encouraging.
I Was Thinking of Buying or Selling, is That Still a Good Idea?
There is certainly a change in the market with these increased numbers of available homes. What does that mean for buyers/sellers? Well for Sellers the “great properties” that have many attractive features (location, condition, fairly priced) are still going to go under contract. Sellers that are still thinking that “any home, in any condition, will sell like they have always done in Fort Collins” are going to be in for a surprise. Those homes are not going to sell, or will just get low-balled. Buyers are still very much out there, but they don’t want to spend their money on “any old home,” they want the most bang for their buck.
Sellers, if your home is not 110% market-ready, take this time to get it to sparkle. Talk to your real estate agent about what needs to be done to make it the most marketable. I’ve asked my Sellers this week to send me videos asking my advice on repairs, updates and decluttering and I’ve spent the last 5 days (while practicing social/physical distancing) helping to get my listings 100% ready so they are not in the group that sits on the market over the next few weeks.
Buyers, and real estate agents are working to help provide some type of virtual tour for Buyers to view homes. I’ve always made videos of my homes, and below you can see videos for 2 homes that are coming on the market shortly. For buyers that have been looking for a while, or were planning on entering the market this spring – if you find that perfect home, now could be an ideal time for you. Interest rates (although a little volatile on a day to day basis) are swinging between 3% and 4.5% (I’ll explain why shorty) so if you can lock in a rate at close to 3% to 3.5% then based on historical data – that is amazing!
Will house prices drop? What if I buy a home and then it’s suddenly worth less? There is a chance house prices will drop, but I think we will see that more with the $500K+ market which has less buyers than the $250-$500K – so maybe now is the time to buy that bigger home at a more negotiable price. Also, with some Buyers holding off from buying there is less competition for homes and that “cream puff house” that would normally get 5+ offers over 1 weekend might only have you as their only suitor.
I’m currently buying a home what should I do?
If you are currently buying a home and this is a long term purchase for you – stay in the game. The interest rates are amazing and even if your home drops a little in value, it will bounce back – but that amazing interest rate you locked in will never change! If you are thinking of just owning a home for a year or 2 two and then moving elsewhere- maybe now is not the time, keep renting!
What’s going to happen in the coming months with values and how will it affect my home?
Like I said the great homes are still selling and selling well! Here are two examples. This week I listed a beautiful home at 5309 Castle Pines. We had 2 offers in the space of 3 days. I believe we would have had more, but the offer we accepted was so solid it wasn’t worth waiting for others to make up their minds/get their contingent homes listed. Yesterday I made an offer for a client on a $350,000 home in Miliken. We offered asking price and provided the Seller with some great assurances to help the offer get accepted quickly. Another buyer stepped in and offered $10K over asking. We lost out. The home was lovely, it was in excellent condition with some lovely features/selling points – but we were still stunned it went $10K over.
I’ve also got 2 homes in listing closing in the next 2 weeks. The title companies and lenders have been really accommodating with minimal contact closings. These buyers are also getting amazing interest rates and remember how difficult it was to find a home in our typically “low inventory, highly competitive” market- they are solid in their jobs and are moving forward.
Now go make a cup of tea, and listen to the attached podcast by Brian Buffini and Lawrence Yun and hear for yourself their predications for the coming weeks/months.
I’m encouraged how they talk about how different real estate is now compared to the downturn in 2008. In 2008 lenders were giving out loans to people that were not financially prepared to be homeowners. Builders had over built and had way too many homes under construction. That is not the case today! We still have a national housing shortage and lenders are WAY more stringent than ever!
Upcoming listings
I’m excited that this week I’ll have 3 new listings coming on the market. We’ll have video tours on all 3 and since 2 of them are not occupied, we should also be able to facilitate more in-depth virtual tours.
221 N. Grant in Old Town Fort Collins. $650K. 5 bedrooms (1 is small and used as an office). 3 bathrooms. 1 office (in addition to that smaller bedroom). 4 car garage (yes, 4 it’s a 4-car tandem). A treehouse!
Video here.
5025 Overhill Drive in Horsetooth Lake Estates. $489,900. 3 bedrooms + huge bonus room, 3 bath, 2 car attached garage. All new east facing deck to enjoy the AMAZING views! So quiet and serene. Built-in 2005 with new carpet, new hardwoods and in great condition. Video.
907 3rd St in Pierce. $275K. Bi-level home on a lovely .25 acre lot with a 1 car attached garage and additional brand new detached shop/1 car garage. 4 beds. 2 baths. Newly remodeled upper bath. The video coming soon.
