Well maintained, turn key investment opportunity only a short distance from CSU. This condo offers two large bedrooms, an updated bathroom, all appliances including washer & dryer. Additional secure storage in basement. Excellent rental history. Call about possible owner-occupied financing with as little as 3% down.
Written by: Rick Hausman, Supervising Broker, Benchmark Realty.
The weather isn’t the only thing that warmed up early… So has Real Estate Activity.
The number of homes sold (detached and attached), and the median sales price is up in March compared to March 2011.
In my opinion in any market more important than gross numbers are the relation between them. The ratio of buyers to sellers or balance between supply and demand. Over the past few years Fort Collins Real Estate market has remained fairly stable and healthy compared to many in the nation. This occurred despite declining sales volume because of declining inventory. The trend of declining inventory in Fort Collins continues. In March 2012 IRES reports inventory is down 20% versus March 2011(some of which may be explained by a methodology change) and March 2011 inventory was down 21% versus March 2010. Declining inventory is old news… What’s new this year is increased demand. Residential detached Sales in March 2012 are up (226 versus 171) compared to 2011 and 2010.
The attached market mirrors the detached market with significant declines in inventory but more modest increase in sales. One factor which may be influencing the inventory decline (in both categories but more significantly in attached units) is the low vacancy rate. Some sellers are deciding to rent properties rather than sell them due to the low vacancy, high rents and selling market values.
Increased demand (at least through the 1st quarter) may be the new trend. What can increase demand and turn a market around can be complex but in the most basic analysis the key would be jobs. In February of 2010 the Fort Collins/Loveland MSA had 160,105 employed and in February of 2012 that number was 165,100 which translates to unemployment rates of 8.2% down to 6.8% (according to the Bureau of Labor Statistics). More jobs translates to higher demand for housing.
If these trends continue their will be upward pressure on price. With declining inventory and upward pressure builders will pull more permits to meet demand and some sellers who have been waiting to sell may put their homes on the market. As the highest sales months approach will more inventory come onto the market to meet the demand?
Many define a buyers market as more than 6 months inventory and a sellers market as less than six months inventory. By that definition using current active listings and the average monthly sales over the last 6 months the Fort Collins market would be neutral (3 in chart above) with a 6 month inventory. However that average monthly sales volume is over the slowest sales period (winter months) and so if you use the March sales volume (which is usually lower than the April, May and June period) the inventory would be about 5 months supply and a sellers market.
Click to Enlarge
When you decide to sell your home, the real estate professional you choose may be the single most important decision you make. A great way to make sure your home does not sell, is to hire an agent based on non-business reasons (ie: the family friend or your boss’s daughter) and choose not to interview them before you hire them. (Hint: You should hire your family friend because they are a good at what they do not because you’re afraid to hurt their feelings if you don’t)
This is a great way to make your neighbor’s home look like a good deal and ensure that it sells before yours. Pricing is one of the most import factors to take into account. Pricing your home too high will turn off prospective buyers. Pricing too low will leave money on the table.
Don’t paint. Don’t replace carpet. Don’t update fixtures. And definitely don’t de-clutter the house. If you actually want the house to sell you need to make sure your home is in top shape and that all maintenance items have been completed. When a buyer sees things that need to be improved, they may question whether or not there are other problems with the house they aren’t seeing.
Since almost all buyers will decide whether or not to see your home based upon the photos available of your house. Having low lit photos that don’t take advantage of a wide angle lense, external flash, and are poorly framed is a great way to make sure no one sees your home. As extra credit, make sure you are visible in the mirror when you take photos of bathrooms. If you actually want people to see your house, make sure your agent invests in professional quality photos.
When buyers are serious about a house, one of the most common things they do is drive by a home before seeing it to check out the neighborhood. Make sure they can’t find out any more information about your home when they do.
First impressions are lasting. If you want a poor first impression, close the blinds and make sure your home feels like a dungeon when a new buyer walks in. This way you’ll have saved $1.00 on your electricity bill.
Make sure you stick around and make the new buyers feel uncomfortable in your home. This will ensure that the new buyers can’t freely discuss their impressions of your home. Instead of being able to get excited about your home and envision living there, they will whisper awkwardly as they tip toe around your home waiting to leave.
Instead of making your home feel like a blank canvas that new buyers can attach their own emotions to, be sure to leave all your family photos up throughout the house. This will keep any type of emotional attachment to your home at a bare minimum.
Buyers may pet your dog and say “he’s so cute”, but what they’re really doing is gritting their teeth and thinking “ I wonder what kind of wear and tear this is from this pet”?
Lastly, if you really don’t want to sell your house, just assume that the buyers will understand. That they will see through your clutter, past the roof that needs repaired, or the carpet that needs replaced and still want to get excited about buying your home.
It’s time to make sure your home is ready for warmer weather and the changing climate. An ounce of prevention goes a long way when it comes to maintaining your largest investment.
1. Check your deck for protruding nails, repair any damage planks, and apply a new coat of stain if necessary.
2. Clean out your air conditioning filters and have your system checked by an HVAC professional to ensure it is operating efficiently. Make sure leaves and other debris are cleared from around your outdoor unit.
3. Walk around your foundation and look for any low areas where settling may have occurred. Fill these areas in and ensure that water drains away from the foundation. Take note of any cracks and re-evaluate them in a few months. If they are getting bigger, have a structural engineer check them out.
4. Check that your garage door closes securely and is balanced. Unhook the garage door opener and make sure that you can lift the door without exerting too much effort. Finally, test safety sensors to make sure they are working.
5. Clean out your gutters and make sure your downspouts are directing water away from your foundation. Water near your home is one of the most common ways that foundation cracks develop over time. Trim branches and shrubs away from your home and roof.
6. Check your roof for any damage to shingles or flashing.
7. Fertilize your yard in the Spring to replenish nutrients that may have been lost through the winter
8. Turn on the outdoor water faucets.
9. Take down the Christmas lights. (Please tell me this has been checked off a long time ago!)
10. Check windows and doors for any cracks or tears in weatherstripping, screens, and caulking
Mandatory Extra Credit: Fill the propane tank, clean the grill, and invite your neighbors over. There’s more to life than work.
When it comes to living well, if you ask me, the space surrounding your home is just as important as what’s between your four walls. One of the things that makes Fort Collins great is the value the community has placed on parks and open space. Did you know that the City of Fort Collins manages 43 separate natural area sites that contain more than 36,000 acres of open space in and around Fort Collins? Did you know that the city was intentionally planned to incorporate a local neighborhood park within every square mile of the city? It’s one of the things that I believe makes living in Fort Collins such a great lifestyle choice!
As you look at a map of Fort Collins, you’ll notice that there are two main types of parks. There are local neighborhood parks and there are much larger community parks. Think of community parks as locations you may actually drive across town to reach. These are places such as Edora Park, City Park, Rolland Moore, and Spring Canyon Park. These parks are typically around ~100 acres and strategically located in the city. They contain public pools, water features, frisbee golf, dog parks, baseball diamonds, soccer fields, and much more.
Horsetooth Reservoir just 10 minutes away
Local neighborhood parks on the other hand are the places which will typically only be used by your immediate neighbors. Others wouldn’t typically drive across town because they already have their own neighborhood park. These parks may share space with local elementary schools and junior highs as well.
If you’re thinking about relocating to Fort Collins, pay attention to the open space next time you’re here. You’ll begin to realize the high value this city places on open space and outdoor recreation. When you remember that over 144,0000 residents call Fort Collins home, you’ll really be thankful for the job our city planners have done!
Do you love micro brews? If so, why not live closest enough to one to enjoy a tasty pint on a regular basis. I imagine the map below will be more of a novelty than something that most people take seriously. However, if you really are looking for a home for sale within 1 mile of a microbrewery in Fort Collins, look no further!
The numbers for February 2012 versus February 2011, although not spectacular, do suggest continued improvement in the Fort Collins real estate market. Keeping in mind that Fort Collins was the best real estate market in Colorado for 2011, we continue to see a fairly stable market. Contributing factors consist of a healthy rental market, high quality of living, and continued relocation to Fort Collins from other parts of the country.
In short, we are seeing a low supply of homes and an increasing demand from buyers.
The number of available Condos/Towhomes for sale decreased by 33%
Low Inventory+ More Sales: There were 110 fewer detached residential homes on the market in February while the number of sales increased 6%
* Statistics taken from Colorado Association of Realtors, Area: 9
This information courtesy of Teri Evans at Premier Mortgage Group.
This week several major changes were announced at HUD that will have a direct impact on FHA borrowing costs.
If you have clients that are on the fence share this information with them. These changes go into effect on all new FHA case numbers generated on or after 4/1/12. You can read the formal press relesase from HUD here.
CHANGE #1
Annual mortgage insurance premium (MIP) is increasing by 0.10%.
For loans over $625,500, effective June 1st the increase is 0.35%.
CHANGE #2
Upfront premium (UFMIP) is increasing by 0.75%.
HUD will continue to allow this to be financed.
Here is a scenario to show you the effect the April 1st changes will have on borrower costs. I assumed a purchase price of $250,000 with 3.5% down.
| Current FHA Fee | New FHA Fee on 4/1/12 |
Increase | |
| Upfront MI | $2,412.50 | $4221.88 | $1809.38 |
| Monthly MI | $231.20 | $251.30 | $20.10 |
BUT THERE IS GOOD NEWS TOO!
In addition to this, HUD also just announced it would be reducing premiums for FHA loans endorsed on or before May 31, 2009. This decrease in MI will make streamline refinances more easily available. Details are due in the next couple weeks.
Once again it’s my favorite time of year to eat out in Old Town Fort Collins! Annually our local downtown business association helps organize and sponsor a dining event called Great Plates that provides the community with great deals at over 30 local restaurants. Each deal comes to a total of $25.00 and runs the gamut from feeding 5 people for $25 to a fine dining experience meal for one for $25. It’s the perfect opportunity to venture out to a new restaurant you may not have been to yet. The complete menu can be found on the Downtown Business Association website.
Is this your perception of Colorado?! Read on...
Colorado is probably one of the most 4wd and SUV infested states in the 48 state area. It seems that the first thing folks do when relocating to Colorado is trade in their 2wd car for an expensive four wheel drive car or Sport Utility Vehicle in preparation for a “rugged Colorado winter.”
Subaru Outbacks, Lexus SUV’s, Land Rover’s, and of course plenty of different Toyota models seem to be the most popular choice for Colorado roads. The ironic thing, however, is that Colorado sees over 300 sunny days a year and a major snowstorm that is cause for not making it to the office only seems to happen once every few years. 98% of the time, you will do just fine with a front-wheel-drive car, and for the remaining 2% of the time, if conditions are really that bad, it won’t matter what kind of car you drive. In fact, Sport Utility Vehicles have one of the largest premium price markups in Colorado. Save your hard earned money and put it toward a hybrid – which will pay for itself in gas savings in a couple years if you typically put over 15,000 miles a year on your car. If you want to buy a car that will hold its own during the winter, just be sure not to get a rear wheel drive car. It’s the rear wheel drive cars you typically see stranded on the side of the road, and those cars are the reason everyone feels that it is necessry to get a four wheel drive car when they move to Colorado.
Inventory is very low, and demand has stayed the same. There are lots of buyers in the market that are having trouble finding homes to purchase and multiple offer situations are not uncommon right now if your home is well priced and well marketed. We’ve been seeing this trend develop all fall and if our local Fort Collins real estate market conditions continue, we’re going to actually enter a seller’s market.
What I’m not going to do is make long term predictions…I’ll leave that to Ben Bernanke(recently saying interest rates will be low into 2014).
Fox Business did do a piece declaring that right now Denver, CO is the best large city in the country to buy real estate. Fort Collins has very similar factors and the 4 min. clip is well worth the watch.
If you’re thinking about selling your home this could be a good time to do it. Contact a real estate professional and get an idea of what your home is worth in today’s market. You may be surprised since we’ve all become accustomed to hearing doom and gloom on the news but our market is healthy for sellers right now. Another significant point is our 2.2% rise in median sales price over 2o10. This reflects the fact that buyers are entering the market.
Expect to be a little bit frustrated. If you go back and read any of my recent market reports, I’m going to sound like a broken record. Interest rates are low, prices are low, and now is a great time to buy. The caveat is, that since the number of homes for sale is so low right now, there is limited selection. If you’re a buyer right now, expect to be a little bit frustrated. Expect to have competition in the real estate market. And be ready. Have your financing in order and know what you can afford so that you can act when you do find the right home.
123 N College Ave Suite 200, Fort Collins, CO 80524 | © 2011 Kenny Layton
