2019 Spring Housing Market - in a word? Dynamic!
The market has become much more unpredictable - if real estate ever was predictable. Last Spring we saw a strong seller's market, followed by a strong buyer's market in the 3rd and 4th quarters. Much of that drop in buyer activity was due to the interest rates rising over 1 full percentage point.
With the fall of the interest rates back into the low 4s, came a surge in buyer activity in the 1st quarter of 2019. We are now in the 4th month of 2019 with a very strong presence of active buyers in the market. Will interest rates stay low for the remainder of the year or begin to creep up? Several experts feel they will stay lower this year to keep the housing market stable.
A little known fact about the Colorado Front Range - there is a large percentage of rental leases that expire in July. This is influenced by the 3 large colleges in the area. What that means for the housing market is: Due to the fact that renters usually have to give a minimum of a 30 day notice prior to their lease expiring, many of those renters if they haven't gotten a home under contract by the first of June will resign their leases and leave the market. What does that mean for buyers that don't have to resign a lease? If your getting frustrated right now with being a buyer not getting the home you wanted - wait until the end of June and you will experience a totally different environment.
And if you didn't know about it - N2N.org offers a free home buyer education class that is sponsored by CHFA! It's an all day Saturday class offered at CSU in Fort Collins and the Life Center in Loveland. Classes do fill up - so try to register early! The next class is May 18th, 2019.
Visit neuhausrealestate.com for NoCo Front Range Real Estate offerings and down-home service!
2017 Housing prices in Colorado are a HOT topic!
We have experienced close to 10% housing appreciation along the Colorado Front Range for the past several years.
2017 will bring a lot of changes to the housing frontier.
- A new President
- More States that legalized marijuana
- Interest rates going up
- Companies moving in and out of the State
What will that mean for home values?
Across the board, the above factors point to a 'Cooling' of the housing market for Colorado. However, keep in mind that appreciation and lack of inventory have fueled an off the charts market for the past several years. Comparatively a cooling will still be seeing us in more of a sellers market for the Spring of 2017. This time around though, we won't be seeing the frantic 20 + offers that we saw in the Spring of 2016 for the most desirable properties. Bidding wars will be among the cooling factors as buyers will be seeing more inventory that last year. New construction projects are coming to the fore to increase inventory and inventive ways to keep sellers in their homes after a sale while they search for their next home are taking away the fear of being homeless if they list.
Interest rates may hit as high as 5% according to many experts by the end of 2017 - however that number is still historically low and affords many buyers the ability to buy instead of renting for the same price.
So if your thinking of selling - this may be the last Spring that will technically be known as a sellers market for a while. Next year is supposed to swing back into a more balanced market keeping things on more neutral ground for both buyers and sellers. Also a point to remember - June of 2016 saw a 45 percent decrease in buyer traffic as a large portion of buyers had to resign leases and wait until the Spring of 2017 to look for homes again. This Spring see those renters entering the market again - and we should also again see a reduction in buyer activity in June of 2017. If you are thinking of listing - getting your home on the market before the end of April will be critical - with a mid February - early March time frame being ideal.
If you would like to hear more REAL ESTATE REALITY - April Neuhaus will be presenting current information for real estate buyers and sellers on Feb. 2nd, 2017 in Berthoud Colorado for the Chamber of Commerce.