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Colorado Real Estate Market Update
ECONOMIC OVERVIEW
Colorado added 45,300 non-agricultural jobs over the past 12 months, a growth rate of 1.7%. Although that is a respectable number, employment growth has been trending lower in 2017 as the state reaches full employment. Within the metropolitan market areas included in this report, there was annual employment growth in all areas other than Grand Junction, where employment was modestly lower. There was solid growth in Greeley and Fort Collins, where annual job growth was measured at 4% and 2.7%, respectively.
In November, the unemployment rate in the state was a remarkably low 2.9%, down from 3% a year ago. The lowest reported unemployment rates were seen in Fort Collins and Boulder, where only 2.5% of the labor force was actively looking for work. The highest unemployment rate (3.7%) was in Grand Junction.
The state economy has been performing very well, which is why the wage growth over the past year has averaged a very solid 3.3%. I expect the labor market to remain tight and this will lead to wages rising at above-average rates through 2018.
HOME SALES ACTIVITY
- In the fourth quarter of 2017, there were 14,534 home sales—a drop of 2.0% compared to a year ago.
- Sales again rose the fastest in Boulder County, which saw sales grow 17.9% versus the third quarter of 2016. There were also reasonable increases in Weld and Larimer Counties. Sales fell in all other counties contained within this report because there is such a shortage of available homes for sale.
- As I discussed in my third quarter report, sales slowed due to the lack of homes for sale. The average number of homes for sale in the markets in this report is down by 8.2% from the fourth quarter of 2016.
- The takeaway is that sales growth has moderated due to the lack of homes for sale.
HOME PRICES
- With continued competition for the limited number of available homes, prices continued their upward trend. Average prices were up 9.8% year-over-year to a regional average of $431,403, which was slightly higher than the third quarter of 2017.
- There was slower appreciation in home values in Boulder County, but the trend is still positive.
- Appreciation was strongest in Weld County, which saw prices rise 14.3%. There were also solid gains in almost all other counties considered in this report.
- The ongoing imbalance between supply and demand persists, which means we can expect home prices to continue appreciating at above-average rates for the foreseeable future.
DAYS ON MARKET
- The average number of days it took to sell a home rose by two days when compared to the fourth quarter of 2016.
- Homes in all but three counties contained in this report took less than a month to sell. Adams County continues to stand out, where it took an average of just 21 days for homes to sell.
- It took an average of 29 days to sell a home last quarter. This is up nine days over the third quarter of 2017.
- Housing demand remains strong in Colorado and this will continue with well-positioned, well-priced homes continuing to sell very quickly.
CONCLUSIONS
This speedometer reflects the state of the region’s housing market using housing inventory, price gains, home sales, interest rates, and larger economic factors.
For the fourth quarter of 2017, I have chosen to leave the needle where it was in the previous quarter. Listings remain scarce, but this did not deter buyers who are still active in the market. As much as I want to see more balance between supply and demand, I believe the market will remain supply-constrained as we move toward the spring, which will continue to heavily favor sellers.
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 more than 30 years of professional experience both in the U.S. and U.K.
For more information on Windermere Evergreen please contact us here.
Practical Resolutions: Making Your House a Home
Your home is a reflection of your tastes, your lifestyle and your ambition, and many of us are regularly transforming our homes one way or another to fit our adjusting needs. Whether it is refreshing a room to fit your style, reorganizing a closet to accommodate the holiday excess, going green to save the planet and a couple of bucks or a complete renovation of your kitchen- homes take maintenance. Some projects come about on a whim, but if you have any plans to make your nest nestier here are some ideas for not getting too overwhelmed by the process- no matter how large or small the changes you want to make:
Get Organized: Whether it is your closets, books, pantry or your entire basement identifying the problem is the first step. Once you know where to focus your energy think about the purpose your space should fulfill, what you want it to look like and how you can keep it organized for the long-term. Sometimes getting organized is a matter of doing a little bit every day, or it is finding the right storage solution. Once you know what the problem is you can identify your steps, timeline and budget. Ultimately, getting rid of the clutter and holding onto items you love the most and use will keep your spaces easy to manage year round.
Do a little every day: Everyone has a different method to managing home madness; some have a weekly cleaning routine, some focus room by room others pile everything in the closet until they have to deal with it. If you have a goal of getting rid of old possessions and clutter, remodeling your home office or keeping your home cleaner spend five to thirty minutes a day working to achieve your goal. Here is a good idea for keeping your home clean by doing a little every day, rather than spending your weekend playing catch up.
Beautification/ Gardening: This year my big goal is to finally start our edible garden, but I have been overwhelmed by all the steps- from finding the right containers for the garden, deciding what to plant, when to start the starts, etc. Each region has different gardening challenges; the plants that thrive in Seattle are different than Spokane or San Diego so if you are planning on a garden make sure you familiarize yourself with local resources that will give you advice specific to your area. If you have any landscaping projects, keep in mind advance planning is paramount to making this affordable, timely and sustainable. If you are planning on putting your house on the market eventually, make beautification a priority and plan your exterior in a way that will increase the curb appeal of your home in the future.
Home Improvement Projects: If you have an ongoing list of home improvement projects, make sure you have the right tools in your toolbox and prioritize and plan. You don’t want to spend every weekend working on dripping faucets so create a routine. When looking at the year ahead, think about seasonality of the projects. It is important to know when to ask for help from a professional in order to have repairs done right in the first place to avoid putting yourself at risk or the safety of your home.
Go Green: If your resolution this year is to save money and the planet by reducing your carbon footprint there are projects you can do large and small. Start with an energy audit, that way you know where your energy is actually being used- you may be surprised. Easy fixes start with replacing light bulbs with CFLs and buying energy cords that limit vampire appliances to use energy when they aren’t in use. If you are replacing your old appliances with newer energy efficient models, make sure you check into recycling programs in your area. Go here for more green resolution ideas.
Renovations: Whether you are doing the renovations yourself or working with a contractor, projects of scale are never easy. Make sure you plan for the inconvenience of going without a kitchen as well as the details of putting your new kitchen in place. Also, before investing in a renovation, make sure you will get a return on your investment when you resell. If you are looking to increase the value and marketability of your home check out this list before you start tearing down walls.
For more information on Windermere Evergreen and our team please contact us here.
Commercial Owner/ Investment Opportunity
Site approved for an Office Building with 9545 square feet of office space and
2115 square feet of common space. This commercial property represents a
unique owner/investment opportunity for a variety of business, professional or
service uses. Subject property is centrally located behind Staples Shopping
Center in Conifer with easy access to and from Highway 285. Highway 285 is
the primary route from the C-470 and the Greater Denver area to the mountain
areas serving residential, commuter and tourist traffic. Current land use along
Highway 285 serves as a commercial corridor for the surrounding communities
For more information, please visit the listings website.
You may also call Holly Roberts at (410)698-2617.
Conifer Proposed Town Home Project
Featuring 22.82 Acres
Centrally located in Conifer, Colorado on the main 285 corridor which is the
primary route to and from C-470, Denver and local communities. This
unique 22.82 acre project has been approved for 75 Town Homes and has
all approvals and infrastructure requirements in place including water and
sewer. Located just behind the busy Flagship Safeway Shopping Center
with all of its amenities. There is unparalleled NW Mountain views and this
property is located across 285 from top rated Colorado Elementary and
High-schools. Don’t miss out on this highly sought after 22.82 Acre
opportunity!
For more information please visit, the listing website.
You may also call Holly Roberts at (410)698-2617
The Tax Benefits Every Homeowner Should Know About
This article originally appeared in Times of San Diego
The housing market is predominantly very strong and more and more people are becoming homeowners. While there are many intangible benefits to owning a home, such as pride of ownership and setting down roots in the neighborhood, the tangible benefits are just as great. In addition to benefitting from possible appreciation, there are many tax deductions available that help reduce your annual income taxes.
Tax breaks are available for any type of home — single-family residence, town house, mobile home, or condominium. However, to take full tax advantage of owning a home, property owners need to understand the expenses they can deduct, and learn some tips to get the most tax advantages out of home ownership.
Mortgage Interest
A house payment is comprised of two parts: principal and interest. The principal goes toward reducing the amount you owe on your loan and is not deductible. However, the interest you pay is deductible as an itemized expense on your tax return. You can generally deduct interest on the first $1 million of your mortgage. You can also deduct interest on the first $100,000 of a home equity loan.
Property Taxes
Another big part of most monthly loan payments is taxes, which go into an escrow account for payment when the taxes are due. This amount should be included on the annual statement homeowners get from their lenders, along with their loan interest information. These taxes will be an annual deduction as long as the home is owned.
Home Improvements
If using a home equity loan or other loan secured by a home to finance home improvements, these loans will qualify for the same mortgage interest deductions as the main mortgage. Only the interest associated with the first $100,000 is deductible.Making improvements on a home can help you reduce your taxes in two possible ways:
- Tracking home improvements can help when the time comes to sell. If a home sells for more than it was purchased for, that extra money is considered taxable income. You are allowed to add capital improvements to the cost/tax basis of your home. If a home sells for more than it was purchased for plus any capital improvements, that extra money is considered taxable income. Keep in mind that most taxpayers are exempted from paying taxes on the first $250,000 (for single filers) and $500,000 (for joint filers) of gains.
Home Office Deduction
If a homeowner works from home, they can take a deduction for the room or space used as an office. This includes working from a garage, as well as a typical office space.
This deduction can include expenses like mortgage interest, insurance, utilities, and repairs, and is calculated based on “the percentage of your home devoted to your business activities,” according to the IRS.
Home Energy Tax Credits
For homeowners looking to make their home a little greener, the Residential Energy Efficient Property Credit can help offset the cost of energy efficiency improvements. People who install solar panels most commonly take advantage of this credit. Homeowners can save up to 30 percent of the total cost of installing certain renewable energy sources in their home. Even better, this is a credit, which means it directly lowers a homeowner’s tax bill.
Of course, every homeowner’s financial situation is different, so please consult with a tax professional regarding your individual tax liability.
For more information on Windermere Evergreen and our team, please contact us here.
DIY: Giving Our Fireplace a Facelift
A story of a DIY project… While we were willing to do some major updates to the bathroom, plumbing and electrical, we decided to pick a few areas of our 1940s fixer to do some smaller, mostly cosmetic updates. One of these projects included giving the fireplace a little facelift to bring it into this century.
When the house was built, we believe the fireplace was a simple plaster build-out. At some point, the original owners of the home laid on these tan tiles in a decorative pattern around the fireplace. They may have added the wooden mantel piece, as well. And in the 70s, perhaps they added the black and bronze fireplace cover. Not completely sure as this home was an estate sale (which means the owner either passed away or moved into an assisted living community — and in this case, we know the owner passed away in her 90s in another home).
We were told that there is gas available on the street so at some point, we’ve love to add a gas insert for a gas fireplace and stove. Rumor has it, Seattle may outlaw burning real wood in fireplaces within the next couple of years. But that gas fireplace update will take more time, money and permits. So for now, we paint.
After the contractors left, we noticed some brown/yellow stains on the plaster facing. My wife, our resident painter, tried to paint over the stains. Even after two or three coats, the marks were still pretty apparent. We waited until we could have our young daughter, out of the house before trying to prime the fireplace with industrial strength primer. The guy at the hardware store even suggested buying a “throw-away” paintbrush for a few bucks because to get this primer off of a normal brush would take more industrial strength cleaner. Two coats of that primer stuff and voila! Stains hidden.
After the primer dried, she painted the tiles (sorry previous owners!) and fireplace face a bright white which instantly modernized the whole room. We contemplated painting the black half circle that’s part of the fireplace cover but decided against it, mostly because we had already put our paint supplies away and #tired.
The fireplace has some areas that need some grout repair and one of the tiles is cracked (and has been for God-knows how long) but this was a nice, easy win. When you’re doing home renovations, not much feels easy so three cheers for a white fireplace that only required three trips to the hardware store.
For more information on Windermere Evergreen and our team, please contact us here.
Find your Real Estate Agent
You have many tough choices to make as you start looking for the home of your dreams and prepare to make one of the largest financial decisions of your life. Finding the right agent to represent you shouldn’t add to your worries. I’ve met a few real estate agents over the years and here are 5 tips to help you find a great one.
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- Ask your friends and neighbors. Most consumers find their agents’ through referrals from those close to them. You’ll get real world references (good and bad) from the people you trust.
- Search your online networks. Search for real estate agents within your professional network on LinkedIn.com. LinkedIn can show you the agents who are 2nd and 3rd degree connections within your network. LinkedIn will even show you the agent’s resume and recommendations, mutual connections and offer to introduce you.
- Search local listings. Spend some time looking at homes similar to the one you wish to purchase or plan to sell on your favorite real estate website. Which agents are posting the best photos and doing the best to represent homes through their marketing efforts? Which agents are the most active in the area?
- Search Yelp. Yelp.com started as a place where people could write reviews and rate restaurants and bars. Today, Yelp has become the one-stop site for reviews of local businesses and professionals. Take a look at the highest rated agents in your area and read what your neighbors have to say about their service.
- When in doubt, Google it. When you’ve narrowed your search down to a list of possible agents start typing their names into Google. Google is a quick and easy way to see how active an agent is in the online world. If your agent has a common name include location or company search terms as well. You’ll be able to see any blogging or community activities they are involved in. You will also be able to see how active they are on real estate sites like Zillow and Trulia. Working with an agent who is active online benefits you because they are more likely to have larger networks and a greater reach with marketing efforts.
For more information on Windermere Evergreen and our team please contact us here.
Top five words of advice for a seller today
As a seller today you are faced with a challenge when it comes to selling your home for a fair price and getting it done in a reasonable amount of time. Even though inventory is lower than it was five months ago, we are still looking at about 9 months of inventory in many areas. This large amount of inventory indicates there is a lot of competition out there to attract the right buyer.
We all know there are more than five steps involved when it comes to selling your home. We asked a few of our Windermere agents what advice they would give a seller today if selling your home came down to just five key things.
Top five by Liz Talley Windermere Ballard
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- Declutter.
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- Refresh the garden.
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- Clear the entry and front porch.
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- Minimalize & depersonalize.
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- Price it a wee bit under the competition so that it pulls in buyers.
As always, market presence, professional photos, etc. all make an enormous difference but these five steps are the key right now.
Top five by Jamie Johnson Windermere Camano Island
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- Price. Listen to your real estate expert and don’t try to “start high.”
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- Clean and stage. You are competing with other great deals out there. Yours needs to stand out and shine.
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- Follow a marketing plan. Drop your price 3% every 30 days.
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- Ask yourself – what is your goal? Most sellers have a dream of making a lot of money off the sale of their home. If your goal is to purchase another home, you will make up for your “loss” there. It’s all relative.
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- Hire a local expert. Interview at least three agents. Do your research. A good agent will do all that for you.
If you are looking for a great Real Estate agent please contact us here.
Questions to ask your home inspector
To get a quality home inspection, ask the right questions before you put your inspector to work. Here are some of the basics.
What does your inspection cover?
Insist that you get it in writing. Then make sure that it’s in compliance with state requirements and includes the items you want inspected.
How long have you been in business?
Ask for referrals, especially with newer inspectors.
Are you experienced in residential inspections?
Residential inspection is a unique discipline with specific challenges.
Do you do repairs or make improvements based on the inspection?
Some states and/or professional associations allow the inspector to perform repair work on problems uncovered in an inspection. If you’re considering engaging your inspector to do repairs, be sure to get referrals.
How long will the inspection take?
A typical single-family dwelling takes two to three hours.
How much will it cost?
Costs can vary depending upon a variety of things, such as the square footage, age and foundation of the house.
What type of report will you provide and when will I get it?
Ask to see samples to make sure you understand his reporting style. Also make sure the timeline works for you.
Can I be there for the inspection?
This could be a valuable learning opportunity. If your inspector refuses, this should raise a red flag.
Are you a member of a professional home inspector association? What other credentials do you hold?
Ask to see their membership ID; it’s some assurance.
Do you keep your skills up-to-date through continuing education?
An inspector’s interest in continuing education shows a genuine commitment to performing at the highest level. It’s especially important with older homes or homes with unique elements.
Any other good questions to ask? Post yours now!
For more information on Windermere Evergreen please contact us here.
Going from homeowner to home seller
How do we transition from the mindset of a homeowner to a home seller? Homes bring us shelter, comfort and are a place to express our individuality. But when it’s time to move on, that same home will now be the financial springboard to the next chapter in our lives.
We start by letting go of the home layer by layer.
Both buyer and seller benefit when the seller- perhaps with some judicious coaching from their skilled Realtor- peels away those things that made their home uniquely theirs. In essence, the serious packing begins once the decision has been made to sell; bookcases and closets should only suggest their function with a few items, rather than store seasons and years worth of books and clothes. Carefully removing prized collections and family photos is also vital- nothing should distract the buyer from seeing the house, and seeing themselves in it.
Personal colors are just as important to remove as objects. After all, if you were serving ice cream to a few thousand people (that’s how many will see your house photographed online)- would you serve them mango flavor? It’s a lot more likely you would choose vanilla- and that’s pretty much what the color of your walls should be- neutral or deep neutral tones.
The last touch is a good deep cleaning- ask your REALTORtm if they have the name of a reputable company.
The seller can then replace those familiar objects with a fresh new welcome mat at the front door.
This process allows the buyer the visual and emotional space to move in.
This process allows the seller to move on.
For more information on Windermere Evergreen please contact us here.
