Finance • March 17, 2017

Interest Rates Rise… So What?

by Windermere Colorado

The Federal Reserve raised their benchmark interest rate 0.25% this week.

So what does this mean for real estate?

Some perspective is in order…

First, mortgage rates are not directly tied to the Fed Funds rate. They are, however, closely tied to the 10-year Treasury.

While the Fed was raising their rates this week, mortgage rates actually dipped lower (although slightly).

Mortgage rates today on a 30-year loan are essentially 4.25%.

The long term average for mortage rates, going all the way back to 1970 is 7.5%

For every 1% rise in rates, there is a corresponding 10% impact to the monthly payment.

Mortgage rates have increased about 0.75% since the election.

Most economists expect rates to increase another 0.5% by year-end.

Click HERE to read a great article that goes a little more into depth about what this means for homeowners.

We are watching mortgage rates closely and will continue to keep our customers updated as to where the experts think they are heading. Contact us directly if you have any questions. (970) 460-3033.

Denver Real Estate Market • Press Release • March 14, 2017

Two Years & Top 3% in Metro Denver Market

by Windermere Colorado

Windermere Real Estate, the largest regional brokerage in the Western U.S. is celebrating its second year in the Denver market this month. After just two years, the Seattle-based company now ranks in the top 3% of all real estate brokerage companies in the metropolitan area.

Exclusively Windermere While Windermere has been growing over the last two years, metro Denver homeowners have been benefitting from the robust growth in real estate prices. According to the latest report from the Federal Housing Finance Authority, Denver ranks 14^th out of 258 metropolitan areas for home price appreciation with 10.14% growth over the last 12 months.

This appreciation rate is nearly double the long-term average of 5.8%. Prices in metro Denver have been appreciating at double-digit rates for the last four years in a row. The average price of a single-family home now stands at $448,000. Just two years ago, when Windermere started in Metro Denver, the average price was $371,000.

“For four years now we have had the perfect storm to cause prices to increase at a rate that is nearly double the long-term average. Metro Denver is one of the fastest growing populations in the country, we have an incredibly healthy economy with high employment, interest rates that are roughly half of the long-term average, and the inventory of homes is at all-time lows,” said Eric Thompson president of Windermere Real Estate in Colorado.

There are only 2,918 single family homes currently for sale in Metro Denver, 7.8% lower than a year ago. “With tight supply and strong demand, we see expect very strong price appreciation for the foreseeable future,” said Thompson.

About Windermere Colorado:

Since its inception in 1972, Windermere Real Estate has grown to be a network of 300 offices with more than 6,000 agents by focusing on three basic principles: hire the best people, give them the best tools and create thriving communities. Windermere’s growth has allowed them to expand into the Colorado market led by Eric Thompson, President of Windermere Colorado.

Centennial Office: www.Windermere5280.com

Cherry Creek office: www.wmdre.com

Colorado Real Estate • Colorado Real Estate Market Update • Market News • February 6, 2017

Colorado Real Estate Market Update

by Windermere Colorado

ECONOMIC OVERVIEW

Annual employment growth in Colorado was measured at a respectable 2.2% in November and will likely finish the year having created around 55,000 new jobs. Within the metropolitan market areas included in this report, we are seeing employment growth at or above the state level and I anticipate that this will continue to be the case in 2017.

Unemployment rates continue to drop, and with rates now below three percent, all of Colorado’s metro areas are at full employment. Because of this robust level of growth—in concert with very low unemployment levels—I anticipate that we will see some fairly substantial income growth as companies look to recruit new talent and keep existing employees happy.

HOME SALE ACTIVITY

There were 14,614 home sales during the fourth quarter of 2016—up by a marginal 0.7% from the same period in 2015.
Jefferson County saw sales grow at the fastest rate over the past 12 months, with a 5.9% increase. Sales activity fell in three counties, but this was a function of short supply rather than slowing demand.
Listing activity continues to remain well below historic averages, with the total number of homes for sale in the fourth quarter 12.8% below that seen a year ago.
The key takeaway from this data is that 2017 is shaping up to be one which will still substantially favor home sellers. I do anticipate that we will see some improvement in listing activity, but it is almost a certainty that demand will exceed supply for another year.

HOME PRICES

Demand continued to exceed supply in the final three months of 2016 and this caused home prices to continue to rise. In the fourth quarter, average prices rose by 9% when compared to the fourth quarter of 2015. The average sales price across the region is now $393,969.
In many parts of the region, prices are well above historic highs and continue to trend upward. With double-digit price increases over the past year, the market remains very hot.
Annual price growth was strongest in Larimer and Jefferson Counties, where prices rose by 11.8% and 10.9% respectively.
While we will likely see some modest softening in home price growth in 2017, we can still expect a very strong market.

DAYS ON MARKET

The average number of days it took to sell a home dropped by one day when compared to the fourth quarter of 2015.
Homes in a majority of the counties took less than a month to sell.
In the final quarter of the year, it took an average of just 27 days to sell a home. This is down from the 28 days it took in the fourth quarter of 2015.
The Northern Colorado housing market is still firing on all cylinders. The only missing piece is listings, which remain well below the historic average.

CONCLUSIONS

This speedometer reflects the state of the region’s housing market using housing inventory, price gains, sales velocities, interest rates, and larger economic factors.

For the fourth quarter of 2016, the needle remains firmly in the seller’s territory. It will be interesting to see if the recent increase in mortgage rates has any effect at all on the housing market. I believe that it will; however, I expect that it will likely cause a slowdown in home price growth rather than any collapse in home prices.

Matthew Gardner is the Chief Economist for Windermere Real Estate, specializing in residential market analysis, commercial/industrial market analysis, financial analysis, and land use and regional economics. He is the former Principal of Gardner Economics, and has over 25 years of professional experience both in the U.S. and U.K.

Blog • Colorado Housing • Colorado Real Estate • December 8, 2016

10 Reasons to Sell Your House This Holiday

by Windermere Colorado

Waiting for spring to think about selling your house?

You might want to think twice… Check out this video to discover 10 reasons to sell your house this holiday season!

Blog • Colorado Housing • Colorado Real Estate • Press Release • December 8, 2016

Windermere Metro Denver Expands to Aurora

by Windermere Colorado

PRESS RELEASE

For Immediate Release

Windermere Metro Denver expands to Aurora
Windermere opens fourth office in Colorado

Denver, COLO. (December 8, 2016) – Windermere Real Estate has just opened a new office in one of the fastest growing communities in Metro Denver. The new Aurora location, which is located in the Southlands shopping center, joins Windermere locations in Fort Collins, Centennial, and Denver. Windermere opened its first office in Colorado just two years ago and has plans to continue growing across the state over the next few years.

“We are very excited about our recent expansion into Southeast Aurora; the city is growing by leaps and bounds and we are happy to be part of this exciting growth,” said Vincent Grandi, co-owner and managing broker of the Windermere Aurora office. “One industry that has lacked a presence in the area is real estate, forcing many home buyers and sellers to search outside the area for a real estate agent. We are proud to now provide a local neighborhood office with experienced and knowledgeable agents who live and work in Aurora and have extensive knowledge of all that the city has to offer,” said Grandi who co-owns the Windermere Metro Denver and Aurora locations along with (insert all the owner’s names).

Grandi added that one of the best advantages of living and working in the city of Aurora is the vast diversity of its residents, “Aurora is a melting pot of many immigrants that have chosen to come from all over the globe to live and work. We’re proud to be part of this community and look forward to providing the best real estate experience to the residents of Aurora,” he said.

The office features a hip, fresh atmosphere, effective spaces for agent training and client meetings, and a rooftop deck.

“This location fits our strategy to serve home buyers and sellers all across the Front Range,” said Eric Thompson President of Windermere Real Estate in Colorado. “We are thrilled with the team at Windermere Metro Denver and their ability to offer an exceptional experience to both their agents and their customers. I’m excited to watch Windermere grow in Aurora.”

About Windermere Colorado:

About Windermere Real Estate

Windermere Real Estate is ranked the largest regional real estate company in the Western U.S. with over 300 offices and 6,000 agents serving communities in Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, Oregon, Utah, Washington, and Mexico. Last year, Windermere closed over 86,000 home sales for more than $31.7 billion in dollar volume. The Windermere family has a proud heritage of serving our neighbors via the Windermere Foundation, which funds services for low-income and homeless families. Since 1989, the Windermere Foundation has contributed more than 32 million dollars towards improving lives in the communities where we live and work. For more information, visit www.windermere.com.

Blog • Foundation • November 23, 2016

Can We GIVE More on ThanksGIVING?

by Windermere Colorado

During this week of the year, most are focused on being grateful. Grateful for their homes, health, family, jobs, and everything amazing in their lives. But what of those who have no home? They’ve lost their family, jobs or their health?

Windermere Real Estate is dedicated to helping those in need. We accomplish this through the Windermere Foundation, which has successfully raised over 30 million dollars for organizations that benefit low income and homeless children and families.

In the spirit of being grateful and giving, please consider helping us #TackleHomelessness this season by donating to a local organization through our foundation. All donations are fully tax deductible. Just click the link here: https://store.windermere.com/content/colorado-tacklehomelessness-donation

Happy ThanksGIVING!

Blog • Colorado Housing • Colorado Real Estate • Finance • November 18, 2016

The Trump Tantrum

by Windermere Colorado

Since the election interest rates have jumped from 3.77% to 3.95% according to the Mortgage Bankers Association.

“This week’s increase in mortgage rates, being dubbed the ‘Trump Tantrum,’ is the biggest one week increase since the ‘Taper Tantrum’ in June 2013,” said Bankrate’s chief financial analyst Greg McBride.

Economists say the anticipation of Trump’s pledged spending plans and tax cuts have investors anticipating some inflation and a dose of adrenaline to the economy which have caused a great deal of volatility in the market.

A little perspective is in order- rates today are still lower than the 3.97% recorded last year at this time. And, rates today are still essentially half of their long-term average.

Using a $400,000 home as an example with a 20% down payment, this interest rate increase translates to an additional $34 per month.

Many economists believe that we are now seeing the beginning of a long-term rise in interest rates.

source: Inman News

Blog • Colorado Housing • Colorado Real Estate • Press Release • November 10, 2016

Windermere Colorado Triples in Size

by Windermere Colorado

PRESS RELEASE
For Immediate Release

November 9, 2016

Windermere Colorado triples sales and agents in two years
Innovative program and Millennial agents drive success for Colorado real estate company
Fort Collins, COLO. (Nov. 9, 2016) – After opening its first Colorado office in December of 2014 in Fort Collins, Windermere Real Estate Colorado has experienced accelerated expansion with new offices in Centennial and Denver Metro over the past two years. The rapid growth stems from a number of factors, but primary among them are a one-of-a-kind home selling program and a fresh approach to hiring and engaging a younger workforce.
With the Front Range expansion, Windermere Colorado has tripled sales volume from $77 million in 2015 to $205 million now, increasing employees from 21 to 65 agents during this same time. Windermere Real Estate’s Colorado President, Eric Thompson, explains, “We’ve figured out how to be relevant to top-selling real estate agents and how to be relevant to the customer. In our mind it’s pretty simple: agents want their company to save them time and energy, and customers want a predictable process with no surprises.”
Thompson and his team pioneered a revolutionary program to market a home called the “Windermere Certified Listing.” Similar to buying a certified pre-owned vehicle, the program includes a pre-inspection of each listing before it ever goes on the market. With the pre-inspection in hand, the seller can decide how to handle certain repairs and then be transparent with the buyer as to the exact condition of the home.
“The biggest disappointments in a typical transaction occur when there is a surprise. With this program we’ve virtually eliminated all surprises,” says Thompson.
Now entering its third year, the Certified Listing program is getting results. For example, Windermere’s listings in the Northern Colorado market sell for 14 percent more and 42 percent faster than the market average. It has also been a key driver to attract productive agents to Windermere because the company’s staff handles the scheduling of all the vendors who prepare the home for sale. “The Certified Listing program was a big reason why I chose to align with Windermere,” said Natalie Davis, Windermere agent and past Chair of the Fort Collins Board of REALTORS. “It saves me an enormous amount of time and allows me to focus my energy on my customers.”

Interestingly, the program has also resulted in a younger generation of agents joining Windermere. Currently, 20 percent of Windermere Colorado employees fall under the Millennial generation, an uncommon characteristic for a real estate company in an industry where the average age for a realtor nationally is 58.
At 35 percent, Millennials are the largest share of home buyers, which has been consistent over the last four years according to the National Association of Realtors. Having younger real estate agents to connect to this group is something Windermere leveraged at an early stage. “Most of my clients are in their 20s or 30s,” says Kyle Basnar, a Millennial agent at Windermere Colorado. “Windermere educates us on how to effectively guide this group and give them the information they need to make good decisions.”

Both the younger and experienced agents at Windermere also appreciate Windermere’s commitment to giving back to the communities where they serve. The Windermere Foundation has generated over $31 million in donations since its inception toward supporting low-income and homeless families. In Colorado, Windermere partners with Homeless Gear, Colorado Coalition for the Homeless and the YMCA.

“Charitable giving is incredibly important to me and the agents on our team. The fact that Windermere is so committed to giving back to the communities where they serve was certainly a major factor in our decision to join Windermere,” said Carl McNew, co-owner of Windermere Metro Denver.

About Windermere Colorado:
Since its inception in 1972, Windermere Real Estate has grown to be a network of 300 offices with more than 6,000 agents by focusing on three basic principles: hire the best people, give them the best tools and create thriving communities. Windermere’s growth has allowed them to expand into the Colorado market led by Eric Thompson, President of Windermere Colorado. For more information, visit www.windermerecolorado.com.
About Windermere Real Estate
Windermere Real Estate is ranked the largest regional real estate company in the Western U.S. serving communities in Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, Oregon, Utah, Washington and Mexico. The Windermere family has a proud heritage of serving our neighbors via the Windermere Foundation, which funds services for low-income and
homeless families. Since 1989, the Windermere Foundation has contributed more than 31 million dollars towards improving lives in the communities where we live and work. For more information, visit www.windermere.com.