We are noticing a trend that is very good news for buyers.
Inventory has been increasing over the last month which means that buyers now have more properties to consider.
Just in the last week, the number of homes for sale has increased:
13% in Larimer County
12% in Weld County
11% in Metro Denver
If you are a buyer who has been waiting for home properties to look at, now is the time!
Summer is the season of spending long days and nights out in the backyard and making home-cooked meals on the barbecue. Whether classic BBQ dishes like ribs and hamburgers or skewered grilled vegetables are more your style, these tips will help get your backyard in prime shape for grilling season.
Designing Your Backyard for BBQs
Some homeowners may choose to make their barbecue the focal point of their backyard, while others view it as something to accentuate more central features like a deck, patio, or outdoor kitchen. The grill alone will take up significant space, not to mention the crowd it can attract. With that in mind, avoid situating it in areas of high foot traffic, such as near the stairs of your deck or along a main walking path. You should also provide ample room between the barbecue and your backyard seating.
A simple charcoal grill is ideal for small spaces. It also allows you to be flexible with your barbecue setup. If you are hosting a gathering, you can simply move the grill if need be and rearrange your backyard to accommodate the occasion. Built-in barbecues provide a more robust grilling setup, while freeing up space on the deck or patio. Though built-ins are typically more expensive than a standalone grill, they are a hub for outdoor entertainment. For homeowners who enjoy grilling in the shade, or those who live in climates where it sometimes rains in the summer, covered barbecues may be the way to go. Pergolas, canopies, and awnings are all popular options for providing cover. Outdoor kitchens are the most comprehensive grilling setup. With countertop space, a sink, and the barbecue all within reach, all the prep work for your cookout can be done outside, right next to the grill.
Once you’ve chosen the best barbecue for your backyard, it’s time to start designing around it. The right combination of seating will add the social touch to your barbecuing setup. Bench seating is a popular option for barbecuing on the deck, while tables and chairs out in the backyard lawn create more of a picnic-style feel. Installing a fire pit will bring an added element to you outdoor entertaining, helping to make the transition from an afternoon or evening barbecue into a night spent under the stars. Experiment with different fire pit styles to match the surrounding elements of your backyard. For those with built-in barbecues and outdoor kitchens, consider matching your fire pit’s stonework to tie the backyard together.
Image Source: Getty Images
“All markets are local” is a commonly used phrase in real estate.
This adage is proving to be true as we notice slight changes recently in the market.
Bottom line, the market, in some locations, is not behaving exactly like it did even 30 days ago. Properties that perhaps would have received 10 or more offers last month, are now receiving only one.
It is as important as ever to examine not only the general market area, but also hyper-local markets in order to understand the nuances that exist in specific locations.
A common activity we perform with our clients is to research the months of supply in their own neighborhood. We will frequently find that this stat varies considerably from the market as a whole.
To illustrate how ‘all markets are local,’ take a look at the days of inventory statistic for the following markets:
Larimer County = 18 days
Fort Collins = 15 days
80521 Zip Code = 24 days
80525 Zip Code = 9 days
While data on the overall market clarifies overall trends, it is the hyper-local research that is incredibly valuable when pricing property.
If you watch the weekly statistics that we produce and post on social media, a number that might be jumping off the screen at you is the average price.
Specifically, it is the percentage increase in average price versus last year that is striking.
We are commonly asked ‘how could average prices increase 20% to 30% in one year?’
It is important to note prices haven’t appreciated up to 30%, it’s only the average price that has increased by that amount.
A key reason why average prices have increased by such a significant amount is that there are many more luxury properties selling this year versus last year.
Sales of properties priced over $1,000,000 have seen a substantial increase compared to 2020.
Look at these numbers which show the year over year increase in closed transactions for real estate priced over $1 million:
So, transactions of luxury properties have much more than doubled compared to 2020 which is pulling up the average sales price in a significant way.
Here’s the latest from one of our favorite data sources – the Federal Housing Finance Authority (FHFA).
They track home prices across the Country and produce a quarterly Home Price Index report.
It is not uncommon to find Colorado near the top of the list for year over year price growth.
The latest report has us ranked 13th with only a 13% year over year increase (said with sarcasm).
Idaho is first with a whopping 24% increase. Utah is second at 19%.
Here is our interpretation of these numbers…
Colorado has a history of strong, steady price growth instead of booms and busts.
Our market does not take the big, wild swings in prices that other markets sometimes do.
The fact that Colorado is not at the very top of the list right now is actually good news to us.
We know that our clients appreciate a market that is more steady instead of one that can feel like a rollercoaster.
A common phrase that is being used right now to describe the market is ‘no inventory.’
‘There’s no inventory’ is said frequently among those inside and outside of the real estate industry.
The problem with this phrase is that it is untrue.
There is inventory. Meaning, there are a significant number of new listings hitting the market.
However, there is low standing inventory. Meaning, the listings that do hit the market don’t stick around for very long before they are purchased.
Standing inventory, which is the number of active properties on the market, is down roughly 70% along the Front Range.
However, the number of new listings coming on the market is essentially:
So, there is inventory available, it just sells quickly because demand is historically high right now.
It’s the time of the year that many homeowners start spending more time in the garden. Having a healthy garden is one of the best ways to create a sustainable home and reduce your household’s carbon footprint. Here are some eco-friendly tips that will help to make your garden even more sustainable.
Composting, which puts your natural waste to good use, is the cornerstone of any sustainable garden. All grass clippings, dead leaves, plants, flowers, and the like are rich in nutrients. By composting, you provide your garden with a natural fertilizer, free of contaminants. Not only will this provide nourishment, but it will also help to produce healthier and tastier food.
If having a sustainable garden is your goal, it’s important to treat your soil with care. Mulching enriches the soil and ensures it’s as healthy as can be. Mulch conserves the moisture in your soil, ensuring it won’t dry out. It also reduces weed growth and naturally moderates the temperature of the soil. Mulching can cover either bare soil or freshly planted food and flowers.
It’s natural to want to accentuate the beauty of your garden when designing it, but the sustainable gardener will prioritize giving plants what they need. Take into consideration which plants need direct access to sunlight, which need the most space in the garden, and any special requirements a plant may need to inhabit optimal growing conditions.
One of the pillars of organic gardening is to reduce the use of chemicals whenever and wherever possible. Homemade recipes involving vinegar and corn gluten meal are effective substitutes for harmful, chemical-based weed killers. Whichever method you choose, it’s important to weed by hand often.
Substantial watering is critical to keeping your garden healthy, but overwatering is a common practice and leads to an unsustainable garden. Research the amount of water your plants and flowers need to make sure you aren’t overwatering. If you live in a rainy climate, rain barrels are a useful tool as their function is to catch and conserve the water from your downspouts.
For a more sustainable garden and even healthier soil, consider adding animal manure. Chicken, sheep, and cow manure are all popular choices. Rich in nutrients, it can be used both as a fertilizer and as a soil conditioner. Make sure the manure you purchase is free of pathogens and ask about the recommended window of time from application to harvest before you begin using it.
Planting natively is a fast ticket to sustainable gardening. Native plants are innately acclimated to local climate conditions, making them easier to grow and maintain. Native plants often require less water to grow due to their familiarity with the soil and rainfall in your region, which cuts down on your garden’s total water intake.
Believe it or not, you can save your seeds and sow them next year. Wait until the seed is fully ripe before you collect it. It’s important to gather seeds when the weather is dry and to store them in a dry place. To produce healthy plants in the future, the seed must be completely dry.
Slugs are known to wreak havoc on gardens, eating through leaves and fruit, leaving a trail of destruction. There are many ways of controlling slugs in your gardens, but some may do more harm than good. If you choose to use slug bait, go organic. Many slug baits contain chemicals that are highly toxic to other animals.
How else can you reduce your garden’s carbon footprint? Replace your gas mower with a more sustainable alternative. Electric mowers and push mowers are functional and more eco-friendly replacements. For added sustainability, consider replacing your other gas-powered equipment, such as trimmers and leaf blowers.
The economic research blog called “Calculated Risk” just completed a fascinating study on home prices.
Specifically, they looked at the correlation between home price growth and inventory.
They used price data from the Case-Shiller Home Price Index and inventory data from the National Association of Realtors.
No surprise, they found that the lower the inventory the higher the home price growth. Also no surprise, as inventory goes up, price growth slows down.
This all correlates with simple economic rules of supply and demand.
The interesting part of their research is this: at a certain level of inventory, prices have the potential to go down.
That level, according to their research, is six months of inventory.
That means, prices don’t have a chance of decreasing in a market until there is at least 6 months of inventory available for sale.
To put that in perspective, today there is two weeks of inventory on the market along the Front Range.
So, there would need to be 12 times the amount of homes for sale on the market for prices to even have a chance to go down.
When the housing market favors sellers, a seller can expect ideal conditions for selling their home. However, that’s not to say that a seller’s market doesn’t come with its own unique set of challenges for parties on both sides of the transaction. That’s why it’s critical for buyers and sellers to work with an agent who not only understands their wants and needs but who can also help them navigate highly competitive market conditions.
A seller’s market occurs when demand exceeds supply. When inventory is limited, competition amongst buyers is fierce. Median sales prices increase, days on market decrease, and homes commonly receive multiple offers, often over their original asking price.
Though demand is high in a seller’s market, staging and making any necessary repairs are still important steps to take before hitting the market. An agent can help a seller make important decisions about which repairs and updates help add value to the home.
When it comes to offers and negotiations in a seller’s market, sellers have the leverage. It’s common for homes to fetch more than their asking price with multiple offers on the table. Though prices are being driven up by demand, a seller may choose to list their home at or just below fair market value with the hopes of starting a bidding war. Because competition is so high, buyers may be willing to waive an inspection contingency to help make their offer stand out. Agents can help sellers decide whether they should conduct a pre-listing inspection, which sometimes helps the seller get more offers and command a higher price.
With multiple offers on the table, it may be tempting to simply choose the one with the highest figure; however, the best offer is also the one that removes risk and aligns with the seller’s goals. Whether that entails waived contingencies, a shorter closing window, or an all-cash offer, in a seller’s market, the seller has the power to choose. Sellers should fully review each offer with the help of their agent before proceeding.
Buyers in a seller’s market must act fast. Due to the high level of competition, they must be prepared for a frustrating scenario where their offers may not win out. This emphasizes the importance of working with a buyer’s agent. In a seller’s market, it’s more likely that the buying process will include such factors as seller review dates and escalation clauses. A buyer’s agent will help navigate these challenges while working with their client to make their offer stand out. They will formulate a strategy, comparing their client’s wish list and budget against the limited number of homes available and proceeding accordingly. A buyer’s agent will also set the expectation that, due to the competitive nature of the market, finding the right home may take longer than expected.
In a seller’s market, the buyer is at a disadvantage when it comes to negotiations. The chance of getting a contingent offer is minimal and pushing for certain closing dates and specific repairs may do more harm than good to their offer. A cash offer has significant power in a seller’s market. If a buyer can make a cash-heavy or even all-cash offer, it is likely to stand out to the seller. It gives the buyer more buying power and greatly increases their chances of winning a bidding war.
For more information on the conditions of your local market, visit our website for Quarterly Real Estate Market Updates from our Chief Economist, Matthew Gardner. For assistance planning a home sale or purchase, connect with a Windermere Real Estate agent here: Connect With an Agent
Did you know the value of your property according to the County Assessor is not the value of your property today?
Property owners up and down the Front Range recently received a postcard from their local County Assessor’s office with their new valuation.
Colorado properties are reappraised every two years on odd years. The updated valuations determine how much property tax is paid.
Each County has their own unique processes and models for valuation, however…
All Counties must only consider comparable properties that sold between July 1, 2018 and June 30, 2020.
The value on your postcard is what your County thinks your property was worth almost a year ago.
As you are likely aware, the market today is significantly different than it was 11 months ago. It’s actually quite different than it was 11 weeks ago!
The postcards with the new valuations tend to prompt very reasonable questions like:
We are happy to help you with either of these questions.
Our team is well-versed in the tax protest process, can help you research comparable properties and can also show you what your home is worth today. Just reach out to us if we can help you. The deadline to protest your value is June 1st.
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