In the first quarter of 2021, U.S. home prices rose at an annual rate of 14.8%. In the state of Colorado it was a 13.0% annual rate increase. The 10 year average appreciation rate for Colorado is 8.4% so this was a major increase in the average home price.
The colorado housing market has been hot for a very long time as people really want to live on Colorado’s Front Range. An increase in demand for homes for millenials or others who have been renting has put a major squeeze on housing inventory and created a faster housing appreciation rate.
Across the US, home prices have risen at a 7.9% average annual rate over the last 3 years. The ten year average is 5.9%. Comparing that to the current rate of 14.8%, you can see that the nation is seeing a major housing market crunch.
Bottom line for Sellers:
Your home is probably worth a lot more money than you think it is. Now would be a great time to reach out to Andy Hawbaker for a free market evaluation.
Bottom line for Buyers:
This is a difficult market for buyers but there are opportunites out there. Work with a professional Real Estate Agent and put together a strategy to get yourself into a home before you are priced out of the market.
There are a lot of people asking questions about whether now is a good time to buy real estate in Northern Colorado. You hear conversations about a real estate bubble or fears that now might not be a great time to buy. On the contrary, the majority of people recently surveyed that this was still a good time to buy a home. With that in mind, here are 4 reasons why right now is a great time to buy real estate.
The above real estate infographic tells the story about why now is a great time to buy a new home. Experts agree that the costs of homes will continue to increase, mortgage rates will likely increase, down payment amounts will be higher and building costs are increasing. All of these factors will make it harder for people to buy homes in the future.
It has been said that the best time to plant a tree is 20 years ago so you can enjoy the shade and the second best time is today so you can enjoy that shade in the future. This is very true about home ownership too. Housing prices in Northern Colorado have continued to appreciate at higher values around 10% per year. If you wait a year the house will only be more expensive.
If you have questions about buying a home in Fort Collins, Loveland, Windsor, Greeley, Longmont or Surrounding areas please reach out to Andy for expert Northern Colorado Real Estate Advice at 970-203-5066.
Andy Hawbaker is a Northern Colorado Realtor® licensed with Kris Lindahl Real Estate. Andy serves Fort Collins, Loveland, Windsor, Greeley and Surrounding Communities.
One question I often get from new home buyers is “Do I need a Realtor® to buy a new construction home?”. The answer is absolutely, YES and here are the reasons why.
Ask yourself, do I want someone working as a buyers agent on my behalf? A real estate agent working for you as a buyers agent has a fiduciary responsibility to negotiate and work in your best interest. While in the state of Colorado, a builder can sell directly to you using their own documents, wouldn’t you want someone in the transaction with your best interest in mind?
Also, having a Realtor on your team adds no additional cost to you. The builder/seller will pay the commission to the Realtor® in their closing costs. It doesn’t affect your fees or purchase price. So, in effect the seller is paying for you to have full representation. That’s a no brainer.
I mentioned above that builders can legally use their own contracts. It’s true. They don’t use the Real Estate Commission approved forms and contracts that have legal protection in place for both the buyer and seller. Guess who usually benefits from the use of contracts that are self created?
Also, don’t get fooled by the real estate agent who is working in the show home. #2: they are working on behalf of the builder and #2: usually they put thier state issued real estate license into an inactive status when employed by a builder. They do this so they are no longer legally responisible to uphold the same responsibilities that licensed real estate agent have to.
Don’t get me wrong, I think buying newly built homes is a smart move. The last two homes I bought for my family were both new construction and in both cases I utilized a Realtor to work on my side. If you have additional questions about working with a Realtor to buy new construction just reach out. I’m always happy to help.