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Fort Collins home prices take small dip
Region's rates down modest amount when compared nationally
BY PAT FERRIER • PatFerrier@coloradoan.com • May 27, 2009
Fort Collins home prices continue to perform better than the national average, falling less dramatically than the rest of the country.
In the new Standard & Poor/Case-Shiller national home price index released Tuesday, home prices for 20 major cities tumbled by 19.1 percent in the first quarter, the most in its 21-year history.
Fort Collins home prices dropped a relatively small 5.4 percent - to $243,408 - for the quarter and bottomed out at $235,326 in March.
Since then, average sale prices rebounded to $248,418 in April, leading some experts to predict the region's sales prices may have hit bottom.
"The first quarter was not very good in terms of volume and pricing," said Dave Pettigrew of Prudential Rocky Mountain Realtors and a Coloradoan real estate columnist.
"March was the bottom. In terms of average selling price, it was the worst month we've had since at least 2007."
Still, Pettigrew does not believe the region is in danger of seeing any double-digit price declines such as those seen on the Case-Shiller report because there's not enough inventory.
"We're in pretty good shape. We went through all of last year with less than 1 percent average price increase."
Year-to-date, the region's average sale price is down 3.8 percent, a "modest" amount compared with the rest of the country, he said.
Pettigrew expects average sales prices to remain in the $245,000 range that they are currently in.
"I don't expect we'll see anything like March for the rest of the year."
While there's still only about a 50/50 chance of selling one's home in this market and many homes priced below $275,000 are selling relatively quickly, Realtors see lower prices, record low interest rates and the $8,000 first-time homebuyer tax credit as a "great time to be buying real estate," said Chip Parrish, a Realtor with BancWise.
"As first-time homebuyers continue to take advantage of the federal tax credit and excellent terms on FHA loans, the "move-up" buyer market is showing strong signs," Parrish said. "The confluence of great pricing and historically low-mortgage rates has produced an unprecedented market for buying."
We haven't hit bottom, not even close. There's still a moratorium on FNM and FRE foreclosures going on. Banks also don't want to foreclose on an underwater house because then they have to take the loss. And sellers in Larimer still are keeping their underwater homes off the market because they think that prices might go back up. We *still* have the giant slug of ARM resets coming this summer, and unemployment is continuing to go up. Home prices are going to go down down down down for the next couple years. I know a lot of prospective homebuyers who refused to buy in 2003-2007, continued to rent, and continue to build up money for a massive 50% downpayment. When interest rates go to 9-11% because of profligate government borrowing, home prices will fall 40-50% nationwide FROM HERE and those that waited to buy with their bag full of cash will be sitting pretty.
Wednesday, May 27, 2009
Monday, May 18, 2009
Looking to buy a home? Now may be the best time
By Erin Frustaci
For Fort Collins Now
For months, national headlines have screamed of the housing crisis gripping the country. The number of foreclosures has skyrocketed and home values have plummeted, sending the economy into a frenzy.
While Northern Colorado has seen some of the shift on a smaller scale, the truth is these headlines don’t tell the full story on a local level.
Real estate experts suggest that the Fort Collins market is relatively stable and healthy. Combined with historically low interest rates, a promising outlook for price appreciation in the next few years, and the existence of a few motivated sellers who are facing impending foreclosures, there may not be a better time to buy a home in the Fort Collins area, some experts suggest.
In some areas of the country, home prices continue to depreciate, and some potential buyers may be waiting to see the market hit rock bottom. But according to a recent Colorado State University study, home prices in Fort Collins actually grew slightly in the past year, suggesting that the bottom has already occurred here.
Historically low interest rates add to the temptation to buy a home.
“Interest rates allow buyers to afford more home for the same amount of money than what they could afford a few years ago,” said Brandon Bidwell, broker associate with Remax Alliance and member of the Fort Collins Board of Realtors.
For example, two years ago interest rates were about 6.25 percent. Now they are about 5 percent. That makes a big difference to the buyer when it comes down to the monthly payment, Bidwell said.
The recent CSU real estate study showed that five of the 11 major housing markets in Northern Colorado have experienced price increases in the past year. Fort Collins is one of the five.
“What happens with the national headlines doesn’t apply to Fort Collins,” said Rick Hausman, supervising broker with Benchmark Realty LLC.
Sure, the Fort Collins market has been impacted and it might be a little harder to sell a home than it was five years ago, he said, but homes aren’t seeing the drastic drop in value compared to other places. It’s a smoother and steadier market.
Hausman said it’s important to note that there are even markets within markets based on price points and geography.
“The low end of the market is super hot right now,” he said.
Bidwell agreed, adding that in general he has seen inventory shrink, a good sign for the housing industry.
“The majority of that shrinking is in the single-family homes under $250,000,” he said.
He attributes that to the first-time homebuyer tax credit, and said he has seen lots of first-time homebuyers take advantage of the incentive in Fort Collins.
Furthermore, each neighborhood within Fort Collins is different. There are a few that may have depreciated in value. And yet, areas like Old Town remain in high demand. Hausman said it’s common for neighborhoods that are centrally located and closer to jobs to hold their value.
He said overall, Fort Collins was not seeing the movement six months ago that is seeing now, especially in the lower prices.
“Fort Collins is like the slow and steady turtle, never dropping but climbing slowly,” Bidwell said.
By Erin Frustaci
For Fort Collins Now
For months, national headlines have screamed of the housing crisis gripping the country. The number of foreclosures has skyrocketed and home values have plummeted, sending the economy into a frenzy.
While Northern Colorado has seen some of the shift on a smaller scale, the truth is these headlines don’t tell the full story on a local level.
Real estate experts suggest that the Fort Collins market is relatively stable and healthy. Combined with historically low interest rates, a promising outlook for price appreciation in the next few years, and the existence of a few motivated sellers who are facing impending foreclosures, there may not be a better time to buy a home in the Fort Collins area, some experts suggest.
In some areas of the country, home prices continue to depreciate, and some potential buyers may be waiting to see the market hit rock bottom. But according to a recent Colorado State University study, home prices in Fort Collins actually grew slightly in the past year, suggesting that the bottom has already occurred here.
Historically low interest rates add to the temptation to buy a home.
“Interest rates allow buyers to afford more home for the same amount of money than what they could afford a few years ago,” said Brandon Bidwell, broker associate with Remax Alliance and member of the Fort Collins Board of Realtors.
For example, two years ago interest rates were about 6.25 percent. Now they are about 5 percent. That makes a big difference to the buyer when it comes down to the monthly payment, Bidwell said.
The recent CSU real estate study showed that five of the 11 major housing markets in Northern Colorado have experienced price increases in the past year. Fort Collins is one of the five.
“What happens with the national headlines doesn’t apply to Fort Collins,” said Rick Hausman, supervising broker with Benchmark Realty LLC.
Sure, the Fort Collins market has been impacted and it might be a little harder to sell a home than it was five years ago, he said, but homes aren’t seeing the drastic drop in value compared to other places. It’s a smoother and steadier market.
Hausman said it’s important to note that there are even markets within markets based on price points and geography.
“The low end of the market is super hot right now,” he said.
Bidwell agreed, adding that in general he has seen inventory shrink, a good sign for the housing industry.
“The majority of that shrinking is in the single-family homes under $250,000,” he said.
He attributes that to the first-time homebuyer tax credit, and said he has seen lots of first-time homebuyers take advantage of the incentive in Fort Collins.
Furthermore, each neighborhood within Fort Collins is different. There are a few that may have depreciated in value. And yet, areas like Old Town remain in high demand. Hausman said it’s common for neighborhoods that are centrally located and closer to jobs to hold their value.
He said overall, Fort Collins was not seeing the movement six months ago that is seeing now, especially in the lower prices.
“Fort Collins is like the slow and steady turtle, never dropping but climbing slowly,” Bidwell said.
Sunday, May 10, 2009
Happy Mother's DAy, Sis!
And I really mean that...
You've done a more than admirable job of raising your brood and I respect the hell out of you for that.
You did it with no formal training in spite of some pretty big "catholic" obstacles.
You're my hero!
I've got two pictures displayed at home of/about mom. One is of her somewhere in Red Feather holding her voice gizmo to her throat and she's smiling.
She had to overcome some pretty big obstacles too, huh.
The other is not of her but of the sunset over the ocean when she and I went to Mexico. It's that one that makes me cry, like right now and I ain't even looking at it. T'was the sunset of her life and it was in a foreign country and it was a beautiful sight and there was /is some poetic symbolism with all that but I'm not sure what it was.
You've done a more than admirable job of raising your brood and I respect the hell out of you for that.
You did it with no formal training in spite of some pretty big "catholic" obstacles.
You're my hero!
I've got two pictures displayed at home of/about mom. One is of her somewhere in Red Feather holding her voice gizmo to her throat and she's smiling.
She had to overcome some pretty big obstacles too, huh.
The other is not of her but of the sunset over the ocean when she and I went to Mexico. It's that one that makes me cry, like right now and I ain't even looking at it. T'was the sunset of her life and it was in a foreign country and it was a beautiful sight and there was /is some poetic symbolism with all that but I'm not sure what it was.
Thursday, May 7, 2009
Some any time of the year home maintenance tips...
From the Realtor
Internet Newsletter...
Daily Real Estate News | May 6, 2009
Five Maintenance Issues Owners Shouldn't Ignore
Consumer Reports magazine advises home owners not to put off important maintenance projects, noting that waiting until the economy rebounds could end up making the repairs more costly while putting a family's health at risk.
The magazine identifies five crucial maintenance issues:
1) Check the gutters: Clogged gutters, broken fasteners and separations where the gutters meet the fascia board will lead to roof leaks if they haven’t already.
Inspect the roof:
2) Cracked, curled and mussing shingles mean a roof is nearing the end of its useful life. Cracks around chimneys, skylights, and roof valleys can also suggest the roof might be leaking.
3) Look for bugs: Termites and carpenter ants can bore through a home in a few short years. Probe the sill plate on top of the foundation with a screwdriver to check for rotten wood. Also look for carpenter ants and termites along windowsills and walls.
4) Avoid mold: Mold and mildew can cause musty odors, dank air, and make residents sick. Check under carpets and around windows for visible mold or mildew.
5) Don’t ignore cracks: Foundation cracks wider than 3/16 of an inch can be a problem. These require examination by a structural engineer.
Source: Consumer Reports (05/04/2009)
Internet Newsletter...
Daily Real Estate News | May 6, 2009
Five Maintenance Issues Owners Shouldn't Ignore
Consumer Reports magazine advises home owners not to put off important maintenance projects, noting that waiting until the economy rebounds could end up making the repairs more costly while putting a family's health at risk.
The magazine identifies five crucial maintenance issues:
1) Check the gutters: Clogged gutters, broken fasteners and separations where the gutters meet the fascia board will lead to roof leaks if they haven’t already.
Inspect the roof:
2) Cracked, curled and mussing shingles mean a roof is nearing the end of its useful life. Cracks around chimneys, skylights, and roof valleys can also suggest the roof might be leaking.
3) Look for bugs: Termites and carpenter ants can bore through a home in a few short years. Probe the sill plate on top of the foundation with a screwdriver to check for rotten wood. Also look for carpenter ants and termites along windowsills and walls.
4) Avoid mold: Mold and mildew can cause musty odors, dank air, and make residents sick. Check under carpets and around windows for visible mold or mildew.
5) Don’t ignore cracks: Foundation cracks wider than 3/16 of an inch can be a problem. These require examination by a structural engineer.
Source: Consumer Reports (05/04/2009)
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