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March 2014
Top remodeling projects for top ROI
Each year we post an article from the Cost Vs Value website, showing which home remodeling projects are going to give you the best bang for your buck. We were thrilled when we discovered that HouseLogic, not only combed this list for the best & worst projects, but also did a trend analysis of which project over time have proven to give you the best return on investment. Why is this important? Well, you want to implement improvements to your home that will last with time, and not just follow the trends. If you don't plan on selling your home right now (but maybe in 5-10 years), it's important to plan out those remodels with your aims at selling one day in mind. Be sure to check out this article for the best (and worst) home remodeling projects. After all, your house ins't just your home, but is also a major life investment.
Tips to help improve your credit score
If you're thinking about buying, refinancing, or even just purchasing a new car, TV, or any of those higher-ticket items that require good credit, check out this article from the RE/MAX blog. Having a good credit score plays a vital role in the type of loan you're able to acquire, and if your credit score is on the fence, could even make or break the deal. This article outlines a couple of tips you should follow before deciding to buy a home or refinance. Additionally, the article outlines those "red flag" items that your loan officer will likely fret about when applying for a loan. If you're on the fence, or not sure if you could even qualify for a home loan (or refinance), it's always best to ask. Your Realtor can help suggest a good mortgage professional for you to work with.
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Northern Colorado Economic Snapshot
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Units Listed - Single Family & Attached Dwelling
| Area |
Jan/'14 |
Jan/'13 |
% Change |
| Fort Collins |
728 |
885 |
-21.6% |
| Greeley |
307 |
412 |
-34.2% |
| Loveland |
398 |
553 |
-38.9% |
| Totals |
1,433 |
1,850 |
-29.1% |
YTD* Units Sold - Single Family & Attached Dwelling
| Area |
2014 |
2013 |
% Change |
| Fort Collins |
172 |
198 |
-15.1% |
| Greeley |
117 |
97 |
17.1% |
| Loveland |
88 |
113 |
-22.1% |
| Totals |
377 |
408 |
-8.2% |
Source: Ires, LLC | *YTD represents through the month of January
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Finally, we’re out of the deep freeze. That’s what it felt like around the Front Range as January gave way to February. Unfortunately, Punxsutawney Phil, the Seer of Seers, the Prognosticator of Prognostications, predicted six more weeks of winter when he saw his shadow on February 2nd.
The holidays are a distant memory and real estate buyers and sellers focus now turns to what they do best - buying and selling. The inventory of available properties will begin to grow as the weather improves, but will remain at a low level as demand continues to exceed supply.
Mortgage interest rates, those harbingers of things to come (either good or bad), trended up in the fall of 2013 from the mid-3% range to where they are today, but appear to have settled in for the time being. The traditional thirty-year fixed rate loan has vacillated around 4.50% (with no origination fee or discount points) for the past few months. A fifteen-year loan, with the same parameters, can be had for 3.375%.
Northern Colorado single family home sales were up 18.06% in 2013 compared to 2012 (6,744 vs. 5,712). In January 2014 there were 377 home sales in Northern Colorado; 408 sold in January 2013. That reduction can be attributed to several things – less available inventory, higher mortgage interest rates, the deep freeze noted above. It’s difficult to determine why sales activity was down when comparing time frames twelve months apart.
The absorption rate (the time it takes for the market to sell through assuming no new inventory surfaces and the same rate of sales activity) stands at 122 days for January 2014 for Northern Colorado single family homes (143 days in January 2013). Since real estate is a bottom up entity, homes priced at the lower end of the market traditionally sell faster because there are more prospective buyers. As prices go up the funnel gets smaller for both buyers and sellers, which relates to a longer time between sales. The absorption rate is always higher at the beginning of the year as buyer motivation warms with the weather. Look for this to be true again in 2014.
Here are some things to think about as we sprint toward the spring (the most active time of the year for the real estate market). Sellers: In certain price ranges, new home inventory will continue to be a source of competition. New homes normally sell for more than resale homes for one reason – they’re new. Production builders across the Front Range are gearing up for another active year. From a pricing perspective, sellers need to be aware of what is happening in their price range and area with new home construction. Buyers: Can you remember the days of double digit mortgage interest rates? Sellers were the lenders with owner carry loans and assumable FHA & VA loans. Those days are gone forever. As the economy strengthens (that’s what the government envisions) mortgage interest rates have a tendency to rise.Thirty-year rates at less than 5% are a good value compared to what we’ve experienced in the past.
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