The latest report from the Federal Housing Finance Authority is hot off the press. They rank 241 major metropolitan areas across the U.S. for yearly home price appreciation.
However, homes that are priced right and in great condition are selling, and in many cases, selling quickly.
As buyers feel the market cool a bit, it may cause them to want to wait. They sometimes feel like it’s a better choice to ‘wait and see what happens.’
The reality is, there is a real cost to waiting given two specific facts.
1. Interest rates will continue to rise
2. Prices will continue to rise
Interest rates are a little more than 0.5% higher than a year ago and experts predict them to be another 0.5% higher by this time next year.
Prices have been appreciating at roughly 10% per year for the last four years. Based on the numbers, we see that appreciation could be 5% per year for the next two years.
So, let’s look at a house priced at $450,000 today. If prices go up “only” 5% for the next 12 months, that home will cost $22,500 more in a year.
And, if rates go up another half percent, the monthly payment will be $206 higher. That’s an 11% increase!
In an environment of rising prices and rising rates, there is a real cost to “wait and see.”
This just in…
For the month of April, the average price of a home in the city of Boulder was $1,247,000. This is according to the latest from our IRES MLS system.
If you want to own a home about an hour down the road in another really nice college town and get a 66% discount, you may want to check out Fort Collins 🙂
Yes, despite the recent uptick in prices here locally, we are still a bargain compared to Boulder. Here are median single-family prices for our markets and their relative price to Boulder:
- Fort Collins = $414,237 (66.8% off)
- Loveland = $360,150 (71.1% off)
- Greeley = $290,000 (76.7% off)
- Windsor = $306,450 (75.4% off)
Grab a copy of our Investment Kit so you can see the simple steps to get started without stress or complication. Email us firstname.lastname@example.org and we will send you a video which clarifies the process and our Investment Checklist so you can see what to do first.
If a real estate buyer walks into one of our offices in Northern Colorado and tells us they are looking for a single-family home under $300,000, unfortunately there will not be many properties to choose from. Depending on where they are looking the choices may be very limited.
Here is a list of the number of single-family homes currently for sale (excluding manufactured homes) in Northern Colorado:
- Fort Collins = 0
- Loveland = 7
- Windsor = 0
- Wellington = 0
- Timnath = 0
- Greeley = 27
- Evans = 8
- Milliken = 2
If our active market has you thinking about investing in real estate in Northern Colorado. Check this out…
Grab a copy of our Investment Kit so you can see the simple steps to get started without stress or complication. Email us at email@example.com and we will send you a video which clarifies the process and our Investment Checklist so you can see what to do first.