Real Estate Information

Here is the 2^nd in our 2 part series of updates on the real estate market in the Northern Colorado area.

If you’ve ever thought of buying real estate as an investment or are considering buying a newly built home, check out part 1 of the blog at http://www.talk2tami.com/Blog

Buyers and Sellers may be confused at the wave of media information on the current real estate market. Is it up, down, is it a buyer’s market or the perfect time to sell.. or both?! Here are some straight answers for home buyers and home sellers in the Northern Colorado area.

For Buyers

Because inventory levels have decreased substantially over the last few years, the market is now positioned to experience increasing prices in certain segments of the market – namely at entry level price points. The greatest risk for a buyer today is WAITING to buy, especially considering interest rates are still holding at historic lows. If you’d like to see just how waiting to buy will affect your long term planning, contact me for more detailed information. If interest rates change as little as .5%  it will affect your monthly payment and long term costs of your mortgage loan dramatically.

            Buyers who are having the most success today have taken the time to get pre-approved and have partnered with a Realtor who can explain the facts about today’s market. One of the most important things a potential home buyer can do is find a Realtor who is incredibly knowledgeable in their local market, knowing and advising on the trends of each neighborhood as they change.

For Sellers

          Homes for sale must be ‘sale ready’! Great condition and proper pricing are crucial in today’s Northern Colorado real estate market. Work with a professional who is familiar with your particular market who can provide up-to-minute statistics for your information. Sellers who have the major components in the home pre-inspected and the necessary repairs made prior to putting the property on the market will avoid possible unpleasant surprises and the potential loss of a sale. Inventory is very low in certain market segments, so now is a great time to enter the market.

        Traditionally, February begins a 6 month stretch where buyer activity is the highest. Timing is your friend.

Knowledge is power!

~Tami Spaulding specializes in helping home buyers and sellers in Northern Colorado~

Call us today at 970-377-6003 for all of your real estate needs! Email Tami  tspaulding@thegroupinc.com  Find us on the web www.Talk2Tami.com

Like us on Facebook & stay connected ~ http://www.facebook.com/pages/Talk-2-Tami/201676469847268

     With interest rates predicted to stay low throughout 2012 (who knows, though!) and a true 'dual market' existing for buyers and sellers, here are some valuable observations for investors and homebuilders in the current market.

     This is a 2 part series, so check www.talk2tami.com for part 2!

For Investors

   The combination of historically low vacancy rates (1.8 % in Greeley, 2.2 % in Fort Collins, and 3.4% in Loveland), extremely low interest rates, and high demand for rentals has created an ideal situation for investors looking to own rental properties. Do your homework! Get your financing lined up, because available inventory is low and you have to be ready to act quickly when a great property comes on the market. Attend a 'Wake Up Money' seminar at The Group to learn how to build wealth by investing in residential real estate. Call or email me to attend one of our upcoming classes.

For Builders

   Large national builders understand the healthy dynamics that the Northern Colorado market has to offer and are actively looking for land. Local builders who are focused on their individual market niche will continue to have success into the future. Realtors play a big part in new construction sales. Take advantage of our wealth of market knowledge regarding floor plans, finishes, inventory status, and best value.

~Tami Spaulding specializes in helping home buyers and sellers in Northern Colorado~

Call us today at 970-377-6003 for all of your real estate needs! Email Tami at tspaulding@thegroupinc.com .

Like us on Facebook & stay connected ~ http://www.facebook.com/pages/Talk-2-Tami/201676469847268

It’s been a long time on the drawing board, and it may yet be a long time before fruition, but plans are moving forward to widen Interstate 25 between Longmont and Fort Collins. The Colorado Department of Transportation recently disclosed the North I-25 Final Environmental Impact Statement (EIS), which includes a proposal to add one lane in each direction. The result would be three lanes of traffic each way between U.S. Highway 14 (Mulberry Street) in Fort Collins and Colorado Highway 66 on the north end of Longmont.

The EIS, in the works since 2003, also covers plans to add commuter bus and rail service on the I-25 corridor between Fort Collins and Denver, bus service on U.S. Highway 85 between Greeley and Denver, a high occupancy vehicle lane on I-25, and numerous I-25 interchange improvements in Larimer and Weld counties.

But it may not come quickly. In current dollars, the cost of the entire plan would be $2.2 billion. Without new sources of funding, and based on the existing flow of transportation funding, CDOT has reported that it would take until 2075 to reach the stated goals.

The Group Real Estate Insider Vol 35 No 9

Northern Colorado’s largest cities are experiencing some of the best home price appreciation in the country, based on the latest Federal Housing Financing Agency (FHFA) quarterly House Price Index.

The Greeley and Fort Collins-Loveland metro areas each landed among the top 12 percent nationally in the FHFA report, showing relative price stability in the second quarter of 2011. The FHFA report ranks Greeley 20th and Fort Collins-Loveland 35th in the index, which tracks 308 metro areas.

Each of the local markets showed price stability compared to the rest of the country, with Greeley experiencing 0.17 percent average home price appreciation over the 12-month period ending June 30 and Fort Collins-Loveland registering a slight 0.44 percent decline in the same period.

It’s a maxim of residential real estate: job growth leads to housing demand, which is followed by housing construction. So the news that Northern Colorado employers have added 4,300 jobs over the 12-month period ending in June bodes well for the local housing market in 2012.

The job formation figures, reported by market analysis firm Metrostudy, stand out in several ways. Not only has Metrostudy tracked 12 consecutive months of job growth in Northern Colorado, but the 4,300 new jobs in the region more than double the job growth in the Denver metro area over the same time period. Of the 4,300 jobs, more than half--2,300--were generated in the professional and businesses services category, while another 1,200 came from the education and health services sector.

As a general rule, housing tend to increase roughly a year after job growth increases. Metrostudy’s research shows that Northern Colorado is positioned for new construction activity next year to meet the demand created by our increasing population and employment.

The Group Inc Real Estate Insider Vol 35 No 9

You may have noticed Northern Colorado has been looking a little greener this summer.

Based on recent sales tax collections in the region’s biggest towns, shoppers are spending more - which is providing more funds to local treasuries. Through June, sales tax collections were in positive territory to the tune of 3.9 percent in Fort Collins, 5.66 percent in Loveland and 8.8 percent in Greeley. Recently, Fort Collins also posted healthy July collections, which pushed the year-to-date growth figure up to 4.4 percent.

The Group Inc Real Estate Insider Vol 35 No 8

Cabela’s, the legendary outdoors retailer that lures many Colorado residents to drive to Sidney, Nebraska, may be thinking about bringing the hunting and fishing haven a little closer to the mountains.

Although you may not hear it from them.

The hint about Cabela’s plans came from a Jefferson County Commissioner last month. Moments after Cabela’s decided not to build a new store in Wheat Ridge, Jefferson County Commissioner Faye Griffin told the Denver Post, "What we understand is that Cabela’s is planning on building two other Cabela’s, one maybe as far north as Fort Collins and one maybe in Colorado Springs."

An official comment from Cabela’s said, "We are not aware of plans to build a store in Northern Colorado at this time." But then again, a savvy hunter isn’t likely to tip off their intentions.

For the record, Cabela’s has one store in Colorado―in Grand Junction. It has built "destination" stores in Owattana, Minnesota, and in Kansas City, Kansas, both in excess of 150,000 square feet, which are considered tourist attractions in those communities.

The Group Real Estate Insider Vol 35, No 8

Colorado State University and the city of Fort Collins are stepping onto the frontier of high-speed internet. CSU is one of 29 universities and municipalities to join the Gig. U: The University Community Next Generation Innovation Project.

Developed by the Aspen Institute, the Gig. U initiative is designed to speed the growth of high-speed internet networks for its members. Universities gain from the access to expanded internet connections that support research and distance learning, which communities benefit from economic development opportunities made possible by high-speed connections.

The Group Inc Real Estate Insider Vol 35, No 8

Consider it one more likely sign of a housing market that's regained its footing.

The number of foreclosure filings in the area have fallen sharply in recent months. Weld County, for instance, experienced a 32.8 percent decline in filings during the second quarter (April-June). A the same time, filings in Larimer County fell 17.6 percent. Total filings between the two counties dropped from 1,088 in the second quarter of 2010 to 792 this year. Statewide, the Colorado Division of Housing reported  a 28.2 percent drop in filings from the first half of 2010 to the first half of 2011.

The Group Inc. Real Estate. (2011). Pace of Foreclosures in Northern Colorado improves significantly. Vol. 35, No. 8.

Current market conditions have created an environment for real estate investors that is unique in the history of the Northern Colorado Market. Record-low interest rates, increasing rents, record-low vacancy rates, and stable prices - the stars are aligned for people who will take advantage of this unique opportunity to build their real estate portfolios.

Savvy investors are attracted to real estate for five main reasons:

1. Cash flow - given today's record-low interest rates, opportunities exist for real estate investors to rent their properties for more than the monthly cost of ownership.

2. Leverage - relatively large amounts of real estate can be purchased with a relatively low amount of cash. Most investment properties can be purchased with 25% down. The short-term goal is to use leverage to acquire a portfolio of real estate. The long-term goal is to pay the loans off and own properties free and clear.

3. Debt Reduction - Real Estate is one of the few investments where someone else will make the payments. In essence the tenant makes the payments and reduces your debt each month.

4. Tax Savings - Real Estate investors are allowed to depreciate the property and write off expenses in order to reduce taxes.

5. Appreciation - Over time the value of property has risen in the Northern Colorado market. Even though the values have increased, at The Group we believe appreciation is the "icing on the cake," not the cake. Real estate investment makes good financial sense even without appreciation.

Helping our customers create financial freedom is one of our company's goals.

Attend our "Wake-Up" Money seminar on Monday, September 19th, to learn how you can begin building wealth be investing in real estate. Call me for details!

The Group Inc. Real Estate. 2011. The right time for real estate investing is right now. Vol. 35, No. 8.