A VALUE PROPOSITION: HOMEOWNER EQUITY KEEPS BUILDING
A recent LendingTree report found that 94 percent of those surveyed believe that owning a home is still part of the American Dream and 82 percent of homeowners were satisfied with their housing situation, compared to just 51 percent of renters.
Where does that homeowner happiness come from? We can refer to a range of intangible reasons, such as housing stability, the freedom to design your own space, or just the fundamental pride of ownership. But the hard and fast data behind increasing home values stands out as the most definitive rationale.
CoreLogic, a real estate analytics firm, reports that average home values across the U.S. have doubled in the past 10 years, and tripled since 2000. A closer look at Northern Colorado prices shows a similar trajectory.
Using the average price growth for Larimer County – calculated by the Federal Housing Finance Agency (FHFA) – a home purchased in the second quarter of 2002 (April-June) increased roughly 171 percent by the second quarter of 2023. What does that look like in dollars and cents?
If you bought a home for $100,000 in the spring of 2002, it would have been worth about $271,000 in the spring of 2023. A home purchased for $250,000 in 2002 could claim about $677,000 today, and a $400,000 home in 2002 would attract over $1 million ($1,083,000) in the current market.
While these estimates are based on average price growth – individual properties are influenced by factors such as homeowner improvements and neighborhood amenities – the statistics clearly point to a long track record of rising home values and owner equity.
For would-be homebuyers, it’s understandable that prices might give you pause. But the flip side of those prices is a compelling argument to invest in the American Dream in Northern Colorado. By working with real estate professionals, including home financing experts, you could discover that your piece of the dream is more affordable than you realize.
Call us to discuss the current real estate market.
INSURANCE FIRM JOINS LINEUP OF THE GROUP SERVICES
At a time when some insurance carriers – weary of covering losses due to extreme weather events – are pulling out of some states, The Group Inc. has taken a step to simplify access to insurance services in Northern Colorado.
In September, Collective Insurance Group joined the list of The Group’s affiliated partner companies, which already includes Group Mortgage, LLC; Guaranteed Title Group, Ninja Selling, and The Source Property Management.
“The idea of The Group’s financial partners is so we could improve the customer experience with one-stop shopping,” said Group Inc. President Brandon Wells.
With an insurance office in the family, Group clients now get convenient access to an essential step in the home-buying process.
“We have a relationship with a locally owned, independent agency with access to over 30 A-rated carriers. Our partner has the expertise to structure insurance coverage in a way that’s cost-effective, saving our customers money without compromising coverage,” Wells added. Given recent reports indicating potential rate hikes of 25% to 40% by numerous carriers in 2024, we strongly recommend you undergo a thorough assessment of your current coverage. We invite you to reach out to Collective Insurance Group for a complimentary quote.
FOR HOMEBUYERS, A MORTGAGE MEANS YOU'RE JUST GETTING STARTED
Owning a home is the American dream. Ownership means no more rent checks, building personal wealth, and living in surroundings that you can shape to your lifestyle. All good things.
But there is more to living the dream than just plunking down the downpayment and budgeting for your monthly mortgage payment.
Costs related to home ownership – such as property taxes, upkeep, insurance, and utilities – can vary, depending on where you live. And those costs require careful consideration for long-term planning.
A recent analysis by Self, a personal finance advisory service, is telling. The study finds that utility costs over the course of 13.2 years – the typical time that Americans spend in a house before moving – would eventually exceed the cost of the downpayment for someone buying an average three-bedroom home.
The study was based on 2022 data and looked at national averages rather than local statistics (for instance, Colorado has some of the lowest property tax rates in the country), but the findings deserve attention. Particularly, when it comes to home insurance costs.
In Northern Colorado, insurance costs increased in 2023 by an average of 30 percent. Some areas of the state are reporting 50 percent increases. Colorado insurance rate trends are driven largely by the rising threat of wildfires, the potential for hail damage in parts of the state, and the increasing value of the homes themselves – making it more costly to repair or rebuild.
Of course, there are ways you can alleviate those added costs (e.g., energy-efficient appliances, do-it-yourself repairs, measures to lower the risk of fire or hail damage); but keep those ancillary bills in mind when you pencil out your household budget.
DIAMOND TAIL RANCH: A GEM IN OUR BACKYARD
Diamond Tail Ranch is tucked far away in a corner of Larimer County that’s seldom seen. But it’s now one of the region’s most high-profile pieces of real estate.
The 17,651-acre high country spread – larger than the size of Manhattan – is on the market for $49.5 million. In addition to million-dollar views of the Medicine Bow Range, the buyer would get a fully operational working ranch, which includes cattle and bison herds and another 20,225 acres of contiguous leased grazing land.
In all, the property and grazing acreage amounts to roughly 59 square miles, which is approximately the area within the Fort Collins city limits. It’s bordered by Rawah Wilderness, Roosevelt National Forest, and Bureau of Land Management lands.
And of course, a river runs through it.
The property, located along the Laramie River Road (Larimer County Road 103), straddles about 11 miles of the Laramie River – making it prime territory for fly fishing.
Diamond Tail is currently owned by the Duncan family, and was purchased in 1979 by Raymond Duncan, best known as a one of the founders of the Silver Oaks Cellar winery in California’s Napa Valley.
Raymond Duncan passed away in 2015, when his four sons took ownership.
And like most real estate in Larimer County, the Diamond Tail has experienced a healthy gain in value. When the Duncan family listed the property for sale in 2020, it was on the market for $44.9 million. Three years later, the owners have placed it back on the market for 10 percent more.
Like any landmark ranch property, the Diamond Tail comes with a blend of luxury amid rustic surroundings. The gathering house spans 2,509 square feet and includes a bar, fireplace, wood floors, and stone patio. There are 12 single-family guest cabins, a dining hall, cabins for ranch staff, chapel, multiple barns, and even a grassy runway for private aircraft.
Wondering About the Market? Explore Our Monthly Market Updates
With over 40 years of expertise, The Group has been the go-to authority for Northern Colorado real estate. Buying a home is the most significant financial choice you’ll ever make and market awareness is critical. Our interactive market updates are both current and extensive. They encompass sales statistics, days on market, employment figures, and more. Plus, these reports are conveniently accessible on all devices. Our aim is that these monthly updates will equip individuals to make informed decisions when it comes to real estate transactions.
REAL ESTATE BY NUMBERS
- $629,995. Median price for a single-family home sold in Colorado in August, according to data from the Colorado Association of Realtors. The statewide median price increased 1.9 percent from $618,000 in August 2022.
- $65 million. Price that Toll Brothers – a national homebuilding company – paid for the 585.9-acre Summerfield residential project in Erie. Toll Brothers bought the development from a Boulder-based developer.
- $11.85 million. Price paid by an investor for approximately 2,003 acres of ranch ground in northern Larimer County. The land was sold by Wyoming-based Weaver Cattle Co. Inc. The land is in the vicinity of the Owl Canyon Road, located between U.S. Highway 287 and Larimer County Road 19.
- 3.2 percent. August unemployment rate in the Fort Collins metro area – which covers Larimer County – making it the lowest among the state’s seven metro areas. Pueblo reported the highest at 4.9 percent. The statewide rate was 3.5 percent.
- 28.2 percent. Percentage of Colorado population aged 55 and older, up from 17.6 percent in 1990, based on analysis by the Colorado State Demographer. By 2050, the 55-and-older population is projected to reach 33.5 percent of the state population.
- $14.6 million. Price that an investor paid for an industrial warehouse located in the Ironhorse development in Johnstown. The sale includes 6.59 acres of ground and the warehouse, which spans approximately 69,000 square feet.
- $230 million. Estimated investment in the upcoming expansion and upgrade of the Colorado State University Veterinary Medicine complex. Construction started this fall on the facility, located along Drake Road in midtown Fort Collins, with completion scheduled for 2026.
- 775,000 square feet. Space that Amprius Technologies Inc. plans to lease at the former Sears Distribution Center facility in Brighton. Amprius builds lithium batteries. The entire facility, located at 18875 Bromley Lane, spans 1.3 million square feet.
- 3.26 million. Estimated size of Colorado’s labor force, the largest it’s ever been, according to the Colorado Department of Labor and Employment. The figure reflects August data.
- $68,200. Amount that the city of Fort Collins charges developers to pay for an acre-foot of water (that serves approximately three families per year) for new development projects. A proposal by the Fort Collins Utilities department would raise that fee to $179,500 per acre foot.