Why Rising Interest Rates Are Good News for Home Buyers

The average 30 year mortgage rates hit an all-time-low in 2021 with many people locking in rates below 3.0%. Experts predicted that rates would climb in 2022 to the high 3% or low 4% range. In early April rates have already reached 5.5%. This will have a real impact on monthly mortgage payments and what buyers will be able to afford. Believe it or not, rising interest rates are good news for home buyers. Read on to learn why buyers will benefit from rising mortgage interest rates.

Why Rising Interest Rates Benefits Buyers

I know this sounds crazy but hear me out.

Home buyers have been getting beat up for almost two years from the extremely hot sellers real estate market. We’ve heard the stories of home going 20% above asking, 20+ offers on all listings and full cash offers with no inspections. We all asked when the tables may turn back in favor of buyers but truthfully, with supply and demand where it is, the economics of this market won’t change unless we can slow demand.

That’s where interest rates come into the picture. Rates rising over 2% in a few months has a real effect on average mortgage loan payments and ultimately how much people can afford. This is scary to those who are already struggling to afford current prices in Northern Colorado. However, this is going to drive some people out of affordability.

I’ve already talked to people who can no longer afford to buy homes in the price range they were looking or they will need to move from a Conventional loan to a FHA loan. This will drive people out of the market and will slow down demand.


What Does This Mean For Qualified Home Buyers?

Rising interest rates will benefit highly qualified buyers because it is going to take some of the lesser qualified buyers out of the market. This means your odds of getting a home will increase. You may not have to offer so far above the asking price and you might be able to ask for some inspection items.

Remember, even at 5% interest rates, a 30 year mortgage rate is far cheaper than rates we’ve seen in the last 40 years. It’s still very low compared to average historical rates.


 Rising interest rates

Should You Wait to Buy A Home When Rate Drop Back Down?


Simply put, we don’t know what will happen with interest rates. Inflation is very high so rates may continue to rise. You a better off to get into the market at whatever rate you can get at this time because they may rise much higher. You can always refinance in the future if rates do come down.

All of this said, now is a great time to buy real estate. Home prices are still expected in increase. A slight slowdown in demand will work in buyers favor but won’t be significant enough to keep prices from going up as there is still a major deficiet in supply and demand.

Reach out to me with your specific questions about buying or selling real estate.

Is Now a Good Time to Buy a Home?

The answer really depends on what your intention is for that home. The current real estate market in May of 2022 probably isn’t the best time to buy a home for a quick flip. But, if you are buying a home for your primary residence this is still a great time. 

If you plan to live in this house for at least a few years, the expectation is still that the prices of homes will increase. The supply and demand is going to be a problem for a long time so prices will stay strong or continue to rise but at a slower pace than in 2021.

If you are buying a house for a rental, now is still a great time. Monthly rent amounts will continue to go up with inflation and supply and demand for homes to live in. It is still a good time to buy a rental if you can get the numbers to work for you.

If you have more questions about buying or selling real estate in Northern Colorado, reach out to me.

Windsor Colorado Real Estate Market Update

Windsor Colorado Real Estate Market

What is going on in the Windsor, Colorado Real Estate Market? The above video covers all of the latest market data from April 2022. We cover the median sales price, number of homes for sale, number of closed transactions, average days on market and how much above the asking price the average home sells for.

Using all of this current data on the Windsor, Colorado market, we can get a good picture of what is happening and what Windsor Home Sellers or home buyers should expect. The data shows that home prices are continuing to increase at a fast pace. Once homes are on the market, they sell very quickly. Most homes that are priced correctly should go onto the local real estate market on a Thursday or Friday and should be under contract by Sunday or Monday. It only takes one weekend in most cases to get multiple offers.

Windsor, Colorado Homes

Home buyers in Windsor, Colorado should expect to over above the asking price. On average, homes in April 2022 sold for 103.2% of the asking price. That means people are paying 3.2% above the asking price. For example, that is $18,000 over asking on a $600,000 house and $24,000 over asking on a $800,000 house. Remember, this is an average which means that some really in demand homes are going for even more above the asking price.

There is a lot going on in the Colorado Real Estate Market. This is just a snapshot of some of the local data. If you have more questions about buying or selling a home in Windsor, Colorado, reach out to me directly on my contact page or Call/Text me at 970-203-5066.

*Andy Hawbaker is a Licensed Realtor with 8z Real Estate in Windsor, Colorado.*

Is the Real Estate Bubble Going to Burst?

There is a lot of talk in the spring of 2022 about a real estate bubble. People are expecting the real estate bubble to burst and to see home prices come back down. If you are hoping to see a depreciation of home values, I have some bad news for you. Pulsenomics recently surveyed 100 top economists to get their opinions on the future home appreciation values. In this video i deiscuss the details of that study including the estimated appreciation values over the next 5 years. 

The video explained what 100 top economists predict home appreciation values to do over the next five years. They are not calling for any price depreciation or loss of equity for home owners. Instead they are calling for slightly above average price appreciation over the next few years. That means that home owners are not going to lose money on their newly purchased homes and they will actually see some pretty nice returns on their homes.

The example discussed in the video is that if you bought a $400,000 home in Northern Colorado now, that house would be worth $507,000 after 5 years. So that investment in a home will actually make you over $107K in equity. Compare that to paying off your landlords mortgage where you end 5 years with no appreciation.

Do you have questions about Northern Colorado Real Estate? Reach out to me. I’m happy to help. Do you agree with these predictions or do you think something different will happen? Comment on the YouTube Video to let me know.

Do Solar Panels Add Value to My Home?

Solar electricity has gotten a lot better in recent years. The solar panels work more efficiently and create a lot of ‘free’ power. But, do solar panels add value to the value of your home? That is a common question that home owners ask. It’s kind of a complicated question because it depends on a lot of factors. However, in real simple terms, no, adding solar panels to your home isn’t going to add a lot of value to the sales price of your home.

The Case for Adding Solar Panels to Your Home.

Solar power is pretty great. It means that your house isn’t contributing to all of the pollution problems that energy from fossil fuels does. It’s pretty awesome to power your home from the light of the sun. Today’s technology is far ahead of solar panels from the past so it is a great time to get into solar power. 

However, placing solar panels on your home doesn’t necessarily add value to your home. If you put solar power on your home and then immediately put it on the market, you won’t recoup those costs. 

Solar Panels & Real Estate Transactions

If you have solar panels on your home you can pass that on to a buyer if you sell your home. The buyer can assume the lease and make the remaining payments. If the system is paid in full you can just leave the panels for the new owners or some solar companies can request the loan be paid off at closing. 

With all of these scenarios, it is important to think long term when you are buying solar panels. If you are going to live in your home for 20 years or more, you will likely enjoy the benefits of solar power enough to make the costs worth it. But if you need to resell your home within the first few years, it does not make your home more valueable and you might lose a portion of the money you send on solar panels.

Sell Your Home For More Money With These Kitchen Staging Tips

Home staging has been shown to have a big impact on the sales price of a home. Arguably, the most important room in a house is the kitchen so great kitchen staging may increase the value of your home in a big way. Watch this video to see the most important tips in staging your kitchen.

Kitchen Staging Tips

First of all just like other rooms in the house, you have to start with a very clean room. A kitchen should be clean, all dishes should be put away and all surfaces and appliances should be wiped down. Make sure you remove all countertop appliances. Items like coffee makers, mixers and toasters can be put away to make the kitchen countertops look bigger.

Next is the actual kitchen staging. As seen in the video above, a few nicely placed cutting boards add texture and are appealing to the eye. A couple of small plants can add a splash of color. Add some cook books or a tea pot on the stove to again add some color. You could open a cookbook up to a recipe and leave it open on the counter.

Hopefully you’ve gotten some ideas on how to better stage your kitchen when selling a home. If you work with me to stage your home, I will give you a free staging consultation so we will know the house looks as good as we can make it which will help you get more money for your home.

Reach out to me on my contact page to discuss the best way to sell your Northern Colorado Home.

Fort Collins Real Estate Market Update

What in the heck is going on with the Fort Collins Real Estate Market? We know that the spring 2022 real estate market is very competitive but what does that actually mean? Let’s dive into the data from March 2022 to see exactly what is going on in Fort Collins Real Estate. All the information you need is in the video below.

Fort Collins Real Estate is the same as the other Northern Colorado Communities. Inventory is low, homes are selling withing days and going for above the asking price. This means that if you are a home seller, now could be a great time to sell your home. You could move up to a larger home, downsize, or take the money and move out of the area.

We are seeing similar real estate market conditions all across Colorado. In the below video we will look specifically at how Fort Collins, Loveland and Windsor all compare.

So that is your snapshot on what is actually happening in the Fort Collins Real Estate Market. Now remember, just because it is a hot sellers market doesn’t mean that you should continue to sit on the sidelines if you are a buyer. Colorado Home Prices are expected to continue to appreciate in the coming years. Let’s talk about your situation and see if we can get you into a new home.

*Andy Hawbaker is a licensed Realtor® with 8z Real Estate – Northern Colorado. If you have have any questions about buying or selling in Northern Colorado, reach out to Andy through this website or just text/call 970-203-5066.

Is It Expensive to Live in Windsor Colorado?

Many people have been moving to Windsor, Colorado and other Northern Colorado communities. When people move in from out of state, they always want to know, Is it expensive to live in Windsor, Colorado? The answer to that quetion is in the following video.

Living in Windsor, Colorado is not a lot more expensive than nearby communities. The cost of living is similar to other Front Range Communities like Fort Collins. You’ll find that living on Colorado’s Front Range is more expensive than living in the Midwest or the South but less expensive than living in California.

The cost cost of buying a home in Windsor is a little different. Again, Windsor is similar in price to nearby communities but you’ll see that a house in Windsor might be slightly more expensive than the same house in Loveland. Also, Windsor homes are priced noticeably higher than similar homes in Greeley.

You can currently still find a house in Windsor Colorado asking between $400,000 to $450,000. Those homes are going very quickly and often for more than asking. As a general rule of thumb, you’ll likely need to spend between $500,000 and $600,000 for a home in Windsor, CO. You’ll also find many options above $750,000 to well over $1 Million.

For more detailed information about living in Windsor, CO, give me a call or text at 970-203-5066. 

Windsor Colorado Chamber of Commerce

Windsor Colorado is a a thriving community. It’s a great place to live, grow a family or to retire. Not only are there great neighborhoods to live in but the Windsor, Colorado business community is thriving too. I’m proud to be connected with the Windsor Chamber of Commerce to be a part of the business community.

Windsor Chamber of Commerce

Windsor, Colorado has a cute downtown area that has some shops, coffee shops, restaurants and small businesses. There’s also businesses in West Windsor around the grocery stores and auto repair shops. Then there are more businesses near the interstate and on Crossroads Boulevard.

The city of Windsor is soon going to home to a professional baseball team and professional soccer team and I’m sure more restaurants, hotels and more will be popping up around that development.

I’ve worked as a commercial loan officer and owned small businesses. I’m a huge fan of small businesses and of entreprenuers working towards their dreams. This is why I joined the Windsor Chamber of Commerce. If you have any questions about the Windsor Business community please reach out to me. I’d love to talk about it.

More information on the Chamber.  

WIndsor, Colorado

Why is Everybody Moving to Colorado

Sometimes is feels like everybody is moving to Colorado. Obviously, Colorado is a desireable place to live. Do you know what the main factors are that are making people move to Colorado? In this video we’ll cover the Top 7 Reasons Everyone is Moving to Colorado.

Ok, I’ll admit it, these are all fairly obvious reasons. Colorado has a lot to offer from all of the great outdoor experiences, all the things to do in the big city of Denver, CO, the great weather, the skiing, the friendly people and so much more.

Most people living in Colorado moved here from somewhere else. You’ll meet some native Coloradoans but for the most part, people were born somewhere else and discoved that Colorado was their ideal place to live. 

Whatever it is that has you curious about this big move, reach out to me and maybe I can answer your questions. I am a Realtor in Northern Colorado and resident of the state since 1996. Some of my top places to live in Colorado include Fort Collins, Loveland, Windsor, Greeley, and Longmont. I have also lived in Silverthorne, Breckenridge and Durango so I can probably help. 

Reason to Move to Colorado

First Time Home Buyer – Grant Program

Being a First Time Home Buyer in Northern Colorado can be difficult. The cost of homes have been appreciating quickly which can easily price out new buyers. Also, the cost of living makes it hard to save up for large down payments and on top of it all you care going to have closing fees too. What if there was a First Time Home Buyer Grant Program that would help you out with the cost of purchasing a home?

Introducing the 8z Keys For Life Program. Home ownership is directly linked to unleashing upward social mobility, the American promise. At 8z, that is why we do what we do, passionately. The 8z Keys For Life Grant Program will help first time homebuyers cover their closing costs. 

8z has created a $250,000 fund to help buyers with closing costs and prepaid expenses that will bridge the often-small gap that holds back many first time buyers.

Keys4Life Grant Program

The 8z Keys4Life Grant Submission for Spring 2022 starts on 3/22/2022. Visit the Keys for Life Page for all details: Here.

Or Reach out to me directly with your questions. I know someone who just received a $10,000 grant to cover their closing costs. They just closed on their first home last week. The program is a helpful way to help first time buyers get into their homes.

*This Program is only for Colorado First Time Buyers.*