REAL ESTATE INSIDER Vol. 48, No. 9 | OCTOBER 2024

ASK AND YOU SHALL RECEIVE: THIS IS THE MARKET HOMEBUYERS ARE WAITING FOR

Have you been idling on the sidelines of the housing market? Perhaps you’re waiting for interest rates to fall or housing inventory to rise.

Here are five reasons why homebuyers should get back in the game.

1. Price appreciation is slowing. On average, home prices in the Fort Collins-Loveland metro area appreciated by 5.7 percent a year between 1978 and 2023. For Greeley, the annual average was 5 percent between 1984 and 2023. However, appreciation slowed in 2023 to 1.2 percent for both Fort Collins-Loveland and Greeley. For early 2024, appreciation rates were 2.1 percent for Fort Collins-Loveland and 1.1 percent for Greeley.

2. Lower interest rates. As of the end of August, interest rates have fallen to around 6.46 percent for an average 30-year fixed rate mortgage, down from about 7.5 in November 2023. Consequently, the cost of borrowing – and home payments – is down.

3. More inventory. Limited inventory has challenged buyers since well before the Covid-19 pandemic. And less choice makes for stiffer competition (more on that below). Fortunately, the inventory of single-family homes has increased 34 percent year over year in Fort Collins, 24 percent in Loveland, and 13 percent in Greeley.

4. Less competition. In a competitive situation, people with cash hold the advantage when it comes to buying a home. And in the post-Covid real estate surge, many conventional borrowers lost out to all-cash buyers. Thanks to more inventory, competition is easing, and fewer listings are attracting multiple offers.

5. Sellers are negotiating. For the reasons stated above, sellers are more willing to offer concessions to buyers on home improvements, repairs, and even financing incentives (such as interest rate buydowns). It’s less likely that buyers need to accept properties as is – while waiving important steps such as inspections and appraisals – just to be competitive.

As we finish out 2024, it may be tempting to wait for conditions to get even better. But that’s a risk. Many of these buyer-positive market conditions could slowly erode, causing a window of opportunity to close. The psychology of real estate has always been one of not trying to predict the future but focusing on the opportunities of today.

Call us to discuss if it might make sense for you to buy or sell real estate this fall.

IS IT TIME TO REFINANCE? HERE'S WHAT YOU NEED TO KNOW

As interest rates started rising in 2022, a familiar real estate saying resurfaced: “Marry the house, date the rate.” The idea? Find the home you love and don’t hesitate, even if the interest rate isn’t ideal. You can always refinance later when rates drop.

If you bought a home when rates were above 7 percent, you might be in luck. With rates now below 6.5 percent (as of August 31) refinancing could be a smart move. But before you jump in, consider these five key questions:

  1. What’s your current interest rate?
  2. What’s your mortgage balance?
  3. How long do you plan to stay in your home?
  4. How much lower could rates go?
  5. Do you need cash for other purposes?

Let’s break it down:

Interest rate and loan balance: Refinancing could save you a lot if there’s a significant difference between your current rate and today’s lower rates. For example:

  • You bought a $500,000 home with a 20 percent down payment ($100,000), leaving a mortgage balance of $400,000.
  • With a 7.5 percent interest rate, refinancing to 6.5 percent could cut your monthly payments by over $300, saving you around $3,600 a year.
  • These savings could offset your refinancing costs within a year.

How long you’ll stay: If you plan to stay in your home beyond the time it takes to recoup your refinancing costs, the savings will continue to add up. In today’s market, even a 0.5 percent lower rate might make refinancing worthwhile.

Future rate trends: While the Federal Reserve may lower rates this fall, current mortgage rates already reflect those expectations. Waiting for further drops might not yield better savings.

Need for cash out: If you need cash for home improvements, paying off debt, or other expenses, refinancing can be a great way to access the funds.

Ready to see if refinancing makes sense for you? Contact Group Mortgage (NMLS 1170166) today to explore your options and find out if you can save on your mortgage or tap into your home’s equity. Our experts are here to help you make the most of today’s market. Call us at 970-419-2374.

The Group has a long-standing Fall tradition where partners and staff organize ‘Beyond Your Limits’ events. These events could include activities like hiking Horsetooth Mountain, line dancing, or even skydiving. The events challenge us to push ourselves and achieve new goals. With something for everyone, they are an important part of our culture, reinforcing our commitment to personal growth while offering opportunities for both individual development and team collaboration.

2025’s ENERGETIC PAINT COLOR TRENDS

Sherwin-Williams recently released its 2025 Colormix Forecast. The 158-year-old American company – best known for paint – has a knack for predicting color trends. Here’s a peek at the company’s outlook for the upcoming year’s 48 top hues, arranged into four palettes, which Sherwin-Williams refers to as Capsules.

Chrysalis S-W explains that the first capsule, Chrysalis, was created to capture the essence of peaceful, intentional living and transformative future thinking. It describes a sanctuary of colors inspired by wood tones, sifting sands, and freshly turned earth. Colors include Studio Clay, Carnelian and Mexican Sand.

Paradox Paradox contains “mystical blues, meditative midtones, and compelling chromas that connect usto the land, to creating things by hand, and to a richly personal epic narrative,” according to the Colormix Forecast. The palette highlights pinks (Dragon Fruit), greens (Tailpot Palm and Slow Green), oranges (rejuvenate), golds (Quilt Gold), and blues (Frank Blue).

Wellspring “Embrace a mindset of openness and belonging with a collection of warm neutrals, sheltering deeps, and warm-hearted colors that nurture and nourish,” says S-W about the Wellspring palette. Its 12 colors include Warm Stone, Borscht, Bosc Pear, and French Roast.

Kindred Kindred is intended to “conquer the conventional with a palette of dopamine-drenched colors that defy expectations: electric brights, grounding neutrals, and candy-coated accents. A key driver of the Kindred capsule story is empathetic design,” declares S-W. Colors include shades of blue (Dark Knight, Storm Cloud and Tidewater), reds (Rockwood Red and Red Tomato), Oranges (Caribbean Coral, Sun Bleached Ochre and Koral Kicks) along with neutrals (Redend Point, Creamy and Rockweed).

HELPFUL HINTS TO GET YOUR HOME GEARED UP FOR THE WINTER

Winter is coming. So, what do you need to do to make sure your house is in order before the frost?

If you’ve already scheduled a weekend to blow out your sprinklers or glean your garden, you’re on the right track. But in case you’re new to home ownership or need a refresher on how to winter-proof your property, we’re here to help.

Property winterizing can reduce the potential for damage to your home – inside and out – lower energy costs, and make your house and grounds safer for you and your family. See below for a check list of chores to help you ward off the impact of Colorado winters.

  • Clean out gutters and downspouts.
  • Turn off your sprinkler system and drain the water.
  • Put your winter tools and supplies (snow shovels, ice
  • melt, etc.) within reach.
  • Aerate and fertilize your lawn.
  • Get your garden shed in shape, and remove liquids that could freeze.
  • Determine if you have trees that need winter watering, and make a watering schedule.
  • Seal drafts and air leaks around windows and doors.
  • Clean your humidifier.
  • Prepare your flower and garden beds. Mulch roses.
  • Clean out your dryer vent.
  • Check your roof for damage that could result in leaks.
  • Inspect your furnace and replace your furnace filter.
  • Replace batteries in smoke and CO detectors.
  • Take down the outdoor clothesline.
  • If you have a snow blower, make sure it’s ready to run.
  • Add fresh paint or sealer to surfaces such as exterior wooden stairs or decks.
  • Disconnect and drain hoses and store them for the season.
  • Get your carpets cleaned while it’s warm enough to ventilate your house.

REAL ESTATE BY NUMBERS

  • $48.5 million. The asking price for Caribou Ranch, a 1,700-acre property near Nederland that is best known as the one-time home to a music recording studio, used by artists such as Elton John, John Denver, Tom Petty, and U2. The site includes a 9,000-square-foot, three-bedroom, two-bath home, as well as five guest cabins.
  • 36 percent. Share of survey respondents who said real estate is the best place to invest their money, according to a recent Gallup report. Stocks ranked second, with 22 percent calling stocks the best choice for returns over time.
  • 518,108. Estimated number of new rental units that will be built in the U.S. in 2024, according to a report by RentCafe. It would be the first time that 500,000 or more rental units are built in a single year. Long-term estimates show 2 million new units will come online between 2024 and 2028.
  • 4.9 percent. In its latest report, CoreLogic said that home prices across the U.S. rose 4.9 percent from May 2023 to May 2024. It also forecasts that price growth will continue through the summer, increasing by 3 percent between May 2024 and May 2025.
  • 20 percent. Approximate share of home sellers across the country who cut their list price in June, according to Redfin, the Seattle-based brokerage. After Indianapolis, Denver had the second-highest share of sellers making a cut of 46.6 percent.
  • $3.9 million. Price paid by Windsor developer Martin Lind for about 220 acres of land in west Greeley. The ground is located about one mile north of U.S. Highway 34 and east of Weld County Road 17.
  • $17.46 million. Price that new operators paid to buy the business and property of Andersen’s Sales and Salvage Inc. The deal includes facilities and grounds in Colorado as well as Wyoming.
  • 29. Total acres for a proposed new commercial development near the intersection of 83rd Avenue and 10th Street in west Greeley. As planned, the proposed Two Rivers Marketplace will include businesses such as banks, coffee shops, restaurants, potentially grocers, and entertainment venues.
  • 1 million. The additional number of renter households in the last five years in the U.S. that are headed by a person aged 65 or older. The trend was reported in “America’s Rental Housing 2024,” a study created by the Joint Center for Housing Studies of Harvard University.
  • $7.3 million. Sale price for the building currently occupied by Lucky’s Market in downtown Fort Collins. Lucky’s has operated in the 26,602-square-foot building, located at 425 S. College Ave., since 2019. The building was constructed as a Safeway grocery store in 1966.
  • $606,000. Median sales price for a home in Fort Collins in July, down 8.1 percent from July 2023, according to Information and Real Estate Services, LLC. In all, IRES reports 183 homes were purchased in July, up slightly from 179 last year. Active listings totaled 696 active listings, up 23.4 percent from July 2023.
  • $4.34 million. Price that investors paid for the KinderCare building in west Greeley. KinderCare, a national daycare chain, will continue to lease the building, located in the St. Michael’s Square retail center at 6700 W. 29th St. Road.
  • 100,000. Square footage of the PetDine manufacturing facilities in Windsor, which the company has recently listed for sale. The facility was purchased for $16.83 million in 2021.
  • 15 percent. Increase in the number of homes for sale in Colorado between the first quarters of 2023 and 2024, according to a report by Construction Coverage. Colorado ranked ninth among all states in inventory growth. Nationally, inventory increased by 4 percent.

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