Fun Facts • New Construction • August 29, 2022

Like 1993

by Katie Robinson

Here’s a trivia question…

The number of new, single-family homes completed in 2022 will most closely resemble which prior year?

If you guessed 1993, you are correct.

Yes, the number of homes built and completed this year is no more than the number from 30 years ago.

In 2022, there will be just over 1 million single family homes constructed in the U.S. which is the same as 1993.

This is much more than the bottom of construction in 2011 which saw just under 500,000 new homes built.

But it is also much less than the top of 2006 which had almost 1.7 million.

Limited new home construction today is preventing anything close to a glut of inventory on the market which, in turn, insulates us from any sort of major price correction.

Blog • For Buyers • Fun Facts • Home Ownership • August 23, 2022

What Is a Homeowners Association and How Much Are HOA Fees?

by Katie Robinson

Becoming a homeowner comes with many responsibilities, but if the home you’re purchasing requires you to be part of a Homeowners Association (HOA), you’ll have to follow additional guidelines and pay additional fees. As you’re looking for homes, talk to your agent about whether purchasing a home that’s part of an HOA is right for you.

What is a Homeowners Association (HOA)?

A Homeowners Association is an organization that governs a community of homes. Homeowners within the governed community must follow certain guidelines for property upkeep and maintenance and will face restrictions on their ability to make additions and/or changes to the property. These rules exist to maintain a standard level of quality amongst the community to maximize property value.

Different HOAs may have different stipulations based on the type of housing they govern. For example, an HOA may oversee a community of detached single-family homes, but they are commonly found in communities of condo or townhome housing styles where there is a shared, communal living style. Each HOA has a Board of Directors in charge of enforcing rules, collecting fees, and managing the funds, and certain associations may hire a third-party management company to help the Board of Directors carry out their operations. The members of an HOA are the residents who live in that community. Here are some examples of typical HOA property restrictions:

Exterior paint color choices must be submitted for approval
Grass must be mowed regularly
Flower beds must be kept weed-free
Noise regulations and/or noise curfew
Pet restrictions (type of animal and/or number of pets per household)

Homeowners Association (HOA) Pros and Cons

Living in an HOA community means your property will maintain its curb appeal and you can live with the knowledge that systems are in place to protect property values. However, the benefits come with additional restrictions on your freedoms as a homeowner while increasing your monthly payments.

Overhead view of a miniature model house sitting on tax paperwork next to a calculator

Image Source: Getty Images – Image Credit: mphillips007

How much are HOA fees?

If you buy in a development governed by a Homeowners Association, you will be required to pay HOA fees on top of your monthly mortgage payment. Typically paid monthly, HOA fees go toward the neighborhood’s shared spaces, property maintenance, and amenities. Homeowners Association fees vary greatly depending on the particulars of that community’s agreement. These fees often cover landscaping costs, parking, community security, garbage pickup, maintenance and repair, insurance, and other amenities, such as a shared pool or gym. If the home is your primary residence, your HOA fees are not tax-deductible.

HOA fees are an additional expense you’ll have to budget for when buying a home. To get an idea of what you can afford, use our free Home Monthly Payment Calculator by clicking the button below. With current rates based on national averages and customizable mortgage terms, you can experiment with different values to get an estimate of your monthly payment for any listing price, accounting for any HOA fees you may incur.

For Buyers • For Sellers • Fun Facts • Home Ownership • Living • August 19, 2022

Moving Checklist: A Step-by-Step Guide to the Moving Process

by Katie Robinson

Once you and your agent work through the process of selling your home, there comes a point when it’s time to switch gears and get ready to move. It can be difficult to juggle the various steps of the moving process, especially if you’re Buying and Selling a Home at the Same Time. Using a moving checklist will help you stay organized and on schedule throughout your moving timeline.

Moving Checklist: A Step-by-Step Guide to the Moving Process

We’ve included a comprehensive checklist below of all the steps you’ll need to complete to ensure a smooth, successful move. This list is also available as an interactive web page and downloadable PDF here: Moving Checklist

Twelve Weeks Before:

Get estimates from professional movers or truck rental companies if needed.
Once you’ve selected a mover, discuss insurance, packing, loading and delivery, and the claims procedure.

Six to Eight Weeks Before:

Use up things that may be difficult to move, such as frozen food.
Sort through your possessions. Decide what you want to keep, what you want to sell, and what you wish to donate to charity.
Record serial numbers on electronic equipment, take photos (or video) of all your belongings and create an inventory list.
If you are moving yourself, use your inventory list to determine how many boxes you will need. Stock up on the items you’ll need from our “Moving Essentials” list.
Obtain a change of address packet from the post office and send it to creditors, magazine subscription offices, and catalog vendors.
Discuss tax-deductible moving expenses with your accountant and begin keeping accurate records.
If you’re moving to a new community, contact the Chamber of Commerce and school district and request information about services.
Make reservations with airlines, hotels, and car rental agencies, if needed.
Begin packing nonessential items.

Two to Four Weeks Before:

Arrange for storage, if needed.
If you have items you don’t want to pack and move, hold a yard sale.
Update the address listed on your car registration, license, and insurance.
Transfer your bank accounts and safe-deposit box items to new branch locations if needed. Cancel or redirect any direct deposit or automatic payments from your accounts.
Make special arrangements to move your pets and consult your veterinarian about ways to make travel comfortable for them.
Have your car checked and serviced if you’ll need to drive it a long distance.
Change your utilities, including phone, power, and water, from your old address to your new address.

Week of Moving Day:

Defrost your refrigerator and freezer.
Have movers pack your belongings.
Label each box with the contents and the room where you want it to be delivered.
If you’re using a moving company, arrange to pay for their services in full, or the remainder of what you owe, upon delivery.
Set aside legal documents and valuables that you do not want packed.
Pack clothing and toiletries, along with extra clothes in case the moving company is delayed.
Give your travel itinerary to a close friend or relative so they can reach you as needed.
Pack a first-day box with items that you’ll want accessible before other boxes are unpacked. See our list of suggested items on the right and add any others you’ll want to include.

Moving Day:

Old Home

Pick up the truck as early as possible if you are moving yourself.
Make a list of every item and box loaded on the truck.
Let the mover know how to reach you.
Double-check your closets, cupboards, attic, basement, yard, and garage for any left-behind items.

New Home

Be on hand at the new home to answer questions and give instructions to the mover.
Check off boxes and items as they come off the truck.
Install new locks.
Confirm that the utilities have been turned on and are ready for use.
Unpack your first-day box.
Unpack your children’s toys and find a safe place for them to play.
Examine your goods for damage.

Our Moving Checklist page has all the information above, plus helpful lists for Moving Essentials and which items to pack in your First-Day Box available as a downloadable PDF.

For Sellers • Home Ownership • Home Prices • August 15, 2022

Understanding the Value of Your Home: Market Value vs. Assessed Value and More

by Katie Robinson

The math of a home sale is relatively straightforward. Sellers list their home at a certain price, a buyer makes an offer, and eventually the two parties reach a final, agreed-upon price. However, between these two points in the selling process, there are several other figures that go into to setting a home’s value that you should be aware of. Your real estate agent will be your best resource in interpreting the different values associated with your home and what they mean as you prepare to sell.

Understanding the Value of Your Home

Listed Price (Asking Price)

Also known as an asking price, the listing price of a home is the price at which a seller lists their property when it goes on the market. The listing price is a gross price, meaning the costs associated with selling the home are not included. A real estate agent’s Comparative Market Analysis (CMA) will accurately set your home’s listing price, accounting for the various factors that influence home prices including location, condition, seasonality, local market conditions, and more.

The listing price is a starting point for negotiations with buyers. You may receive an offer that matches your asking price, but it’s common for buyers to make offers at other price points. You can either accept, reject, or make a counteroffer in response until you and the buyer reach an agreement.

Whether you’re selling in a buyer’s market or a seller’s market may determine you and your agent’s approach to the listing price of your home. There may be certain pricing tactics you can employ to either drive buyer attention or increase competition, but if your home’s listing price strays too far from its market value (see below), it could stay on the market for longer than you expected.

Market Value

As a seller, you’re interested in what buyers are willing to pay for your home. By taking into account a home’s condition, size, curb appeal, and features, as well as local market conditions and what comparable homes are selling for, a home’s market value reflects the price buyers will pay for a property.

Man sitting at his computer at home talks to his real estate agent on the phone

Image Source: Getty Images – Image Credit: damircudic

Appraised Value

A home’s appraised value is determined by a professional appraiser to ensure that the lender is loaning the correct amount of money for the home. Appraisers assess the home’s layout and features, square footage, gross living area (GLA), overall condition inside and out, home updates and remodels, and more. If the appraised value comes in too low or too high, the buyer and seller must renegotiate for the deal to go through. In competitive markets, buyers may include an appraisal gap guarantee in their offer, which states that the buyer will cover the difference between the price of the home and the appraised value.

Sale Price (Purchase Price)

Also known as the purchase price, your home’s sale price is what it ultimately ends up selling for. Once you and the buyer have reached an agreement on the terms of the transaction, the buyer will have the home inspected and final negotiations may occur based on the findings of the inspection. Familiarize yourself with the Common Real Estate Contingencies buyers may include in their offer and what they mean when selling your home.

Net Proceeds

So, how much do you actually make on the sale of your home? After subtracting the total costs of selling from your home’s sale price, you’ll arrive at your net proceeds. This is the amount you walk away with from the transaction.

Assessed Value

Your agent’s CMA is a reliable method of determining your home’s value for its eventual sale, but its assessed value is used for taxation purposes. Employed by local municipal or county entities, an assessor will conduct a review of your property to determine its assessed value. The assessor’s findings are passed to local tax officials, who use that number to calculate the home’s property taxes.

Strasburg Real Estate • August 15, 2022

Wolf Creek Run Charmer

by Katie Robinson

Don’t miss 55410 E 27th Place, a charming two-story home in Strasburg’s Wolf Creek Run. Neighborhood boasts beautiful well cared for landscaping, a centralized park with a playground and pool. The HOA maintains all the front yards and common areas and dues include trash. This home has 4 bedrooms with one on the main floor which can be used as an office. There is also a bath on the main floor and a full bath on the second floor w/ the remaining 3 bedrooms. This home also has a brand-new sliding glass door, central AC, a fenced backyard with a shed, and a covered front porch. This is a great buy in a wonderful community. High speed internet available through TDS telecom. Call (970) 430-9630 to schedule a private tour or click here for more information.

Fun Facts • Market Update • August 12, 2022

What Gives?

by Katie Robinson

“I thought the market was cooling off, so why are prices still going up?”

This is a frequent question we hear from our clients.

They are understandably confused by the fact that average prices have continued to rise at a rapid pace even though sales activity is slower than what it was 6 months ago.

Bottom line, they want to know why prices are up along the Front Range anywhere from 12% to 17% compared to last year.

Firstly, we don’t expect this pace of price appreciation to continue. What we foresee is price growth going back to the long term average of 5% to 6% per year.

The reason why we still see double-digit growth comes down to two words. Supply and Demand.

Supply, while higher than a year ago, is still relatively low.

Also, demand, while lower than a year ago, is still relatively high.

The market is still healthy, just not as frantic as it was.

Properties are still selling, but bidding wars and multiple offers have mostly gone away.

Sellers remain in a strong position, but they face more competition than before.

Colorado Real Estate • Economy • Finance • Market Update • August 8, 2022

Q2 2022 Colorado Real Estate Market Update

by Katie Robinson

The following analysis of select counties of the Colorado real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere Real Estate agent.

Regional Economic Overview

Colorado continues to add jobs, but the pace of growth has slowed, albeit modestly. At the time of writing this report, the state’s employment had increased by 124,600 jobs over the past 12 months, which represents an annual growth rate of 4.6%. The state unemployment rate in May was 3.5%. Regionally, unemployment rates ranged from a low of 2.4% in Boulder to a high of 3.4% in the Grand Junction and Greeley metropolitan areas.

Colorado Home Sales

❱ In the second quarter, 12,839 homes sold, a drop of 8% compared to a year ago but 57% higher than in the first quarter of this year.

❱ Year over year, sales rose in only three counties covered by this report and fell in the rest of the region. That said, there was a palpable increase in sales across the board compared to the first quarter of 2022.

❱ The significant jump in sales from the first quarter can likely be attributed to the fact that inventory levels spiked, rising more than 190% from the first quarter.

❱ Pending sales (an indicator of future closings) rose 39% from the first quarter, signifying that the third quarter may show further growth in sales activity.

Colorado Home Prices

❱ The average home sale price ($700,369) was 14.1% higher than the same period in 2021. Prices were also 9.8% higher than in the first quarter of this year.

❱ Price growth remains strong even in the face of significantly higher inventory levels and mortgage rates, which is an impressive achievement.

❱ Year over year, prices rose by double digits across all markets except El Paso and Arapahoe counties. Prices rose in all counties other than Gilpin (-10.3%) and Clear Creek (-1%) from the first quarter.

❱ With the increase in mortgage rates and the number of homes for sale, I have started to watch list prices more closely. Compared to the first quarter, median list prices are lower in 9 of the 12 counties included in this report. Although it’s too early to say whether this is a trend we should be worried about, I will be watching how prices move during the summer, as it may be an indicator that the market is starting to soften.

A map showing the real estate home prices percentage changes for various counties in Colorado. Different colors correspond to different tiers of percentage change. El Paso and Arapahoe Counties are the only counties with a percentage change in the 7% to 10.9% range, Boulder and Gilpin counties are in the 11% to 14.9% change range, Larimer, Weld, Adams, Park, Jefferson, and Douglas are in the 15% to 18.9% change range, Denver County is in the 19% to 22.9% change range, and Clear Creek County is the sole county in the 23% + change range.

A bar graph showing the annual change in home sale prices for various counties in Colorado from Q2 2021 to Q2 2022. Clear Creek County tops the list at 23.7%, followed by Denver at 22.3%, Larimer at 18.6%, Douglas at 16.4%, Park at 16.2%, Weld at 15.5%, Adams at 15.2%, Jefferson at 15.1%, Gilpin at 14.2%, Boulder at 11.3%, Arapahoe at 9.9%, and finally El Paso at 7.9%.

Mortgage Rates

Although mortgage rates did drop in June, the quarterly trend was still moving higher. Inflation—the bane of bonds and, therefore, mortgage rates—has yet to slow, which is putting upward pressure on financing costs.

That said, there are some signs that inflation is starting to soften and if this starts to show in upcoming Consumer Price Index numbers then rates will likely find a ceiling. I am hopeful this will be the case at some point in the third quarter, which is reflected in my forecast.

A bar graph showing the mortgage rates from 2020 to the present, as well as Matthew Gardner's forecasted mortgage rates through Q2 2023. He forecasts mortgage rates continuing to climb to 5.9% in Q4 2022, then tapering off to 5.58% in Q1 2023 and 5.53% in Q2 2023.

Colorado Days on Market

❱ The average time it took to sell a home in the markets contained in this report fell eight days compared to the same period in 2021.

❱ The length of time it took to sell a home dropped in six counties, remained static in three, and rose in the other three compared to the same quarter a year ago.

❱ It took an average of only 10 days to sell a home in the region, which is down 15 days compared to the first quarter of the year.

❱ Compared to the first quarter of 2022, average market time fell across the board, with significant drops in Gilpin (-41 days), Park (-25 days), and Clear Creek (-23 days) counties.

A bar graph showing the average days on market for homes in various counties in Colorado for Q2 2022. Arapahoe, Adams, and Jefferson Counties have the lowest DOM at 7, followed by Denver, Douglas, and Clear Creek at 8, El Paso at 9, Larimer at 10, Weld and Boulder at 11, Gilpin at 12, and Park at 17.

Conclusions

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

The Colorado economy remains robust and continues to grow. As it stands today, I anticipate income growth here will continue to outpace the nation. The 221,000 current job openings in the state are evidence of significant employer demand, which will lead to higher wages. Housing demand is still remarkably strong, even in light of the rapid increase in the number of homes for sale and rising financing costs.

A speedometer graph indicating a medium seller's market in Colorado for Q2 2022.

As mentioned earlier, I will be watching movement in list prices through the summer as they are a leading indicator in respect to the health of the market. Although we saw some softening in the pace of regional list price growth during second quarter and median list prices pulling back in some markets, it is too early to state that this is a pattern. As such, I am leaving the needle in the same position as the first quarter. The growing number of homes for sale and lower list prices in some markets should favor buyers, but this is offset for the time being by solid demand.

About Matthew Gardner

Matthew Gardner - Chief Economist for Windermere Real Estate

As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.

In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.

Virtual Tour • Windsor Real Estate • August 5, 2022

Spacious Country Farms Gem

by Katie Robinson

8021 N Louden Crossing Court is a beautiful, well-maintained home on almost half an acre in the coveted Country Farms subdivision! Don’t miss this opportunity to live in a spacious, 5-bed, 4-bath home close to Windsor, Fort Collins, and Loveland. It was once a model home, so there are many upgrades inside and out. This home features an open floorplan with high ceilings, main level primary bedroom suite (w/upgraded heated floors), 2 fireplaces, an upgraded kitchen with custom cabinetry & stainless steel appliances. Natural light floods almost every room accentuating the fresh paint throughout most of the house. This home has had lots of upgrades and has a personality of it’s own. Call (970) 430-9630 to schedule a private tour or click here for more information.

Design • Home Design • Home Ownership • Windermere • July 18, 2022

What is Mid-Century Modern Architecture?

by Katie Robinson

The mid-century modern movement’s impact on design reaches far and wide. Whether it’s graphic design, architecture, interior design, product development or elsewhere, we see traces of its influence in countless aspects of everyday life today. Mid-century modern homes are known for their signature look and stylistic appeal. Here’s a short guide to understanding the characteristics behind mid-century modern architecture.

Mid-Century Modern Design

Yes, mid-century modern interior design and mid-century modern architecture are two separate things. The interior design style emphasizes clean lines and minimal decoration, the use of natural elements as accents, and a base of neutral colors for decorating. MCM interior design can exist in any type of home regardless of its architectural style, and is often a popular source of inspiration for decorators fond of vintage elements and popular mid-century furniture pieces such as credenzas, teak desks, Eames chairs, etc.

What is Mid-Century Modern Architecture?

Mid-century modern architecture is the exterior counterpart of its interior design branch. Fueled by a massive need for suburban homes throughout the Unites States in the post-World War II era, the stage was set for mid-century modern’s introduction to the masses. Some of the greatest minds in modern architectural history helped develop and proliferate its presence in society, including Ludwig Mies van der Rohe and Frank Lloyd Wright. Though you’ll find unique variations within mid-century modern, there are certain tenets of the architectural style.

Mid-century modern homes have flat roofs with straight lines. This clean geometric approach in roof design is part of a larger philosophical ideal that these homes should blend in with their outdoor environments, thereby working in harmony with nature.
Glass is used heavily, and floor-to-ceiling windows are a common feature, especially in the living room.
The minimalist approach to exterior design is showcased in the easy access to outdoor spaces and the fact that mid-century modern homes are often one-story buildings.
The open spaces created by this architectural style allow for intentional decorating and the use of color splashes to bring energy into them. Mid-century modern interiors often incorporate vibrant, warm colors on top of a calmer, neutral foundation.

For Buyers • For Sellers • Fun Facts • Home Ownership • Windermere • Windermere Real Estate • July 14, 2022

The Difference Between a Real Estate Agent and a Mortgage Broker

by Katie Robinson

Throughout the course of buying a home, you’ll work with a variety of professionals, all with specific training to help you through each stage of the process. With such a cast of specialists around you, it’s helpful to know everyone’s responsibilities and which questions to ask whom. One important distinction to be made is the difference between your real estate agent and your mortgage broker. The following information is a guide to understanding where they differ and how each of them helps you to buy a home.

Real Estate Agent vs. Mortgage Broker

Both real estate agents and mortgage brokers are licensed professionals who play a pivotal role in the home buying process by bringing parties together to get a deal done. However, that’s about where the similarities end.

Real Estate Agent

Your real estate agent will represent you throughout the buying process. Their access to the Multiple Listing Service (MLS) allows them to search the widest network of available homes to find the ones that match your budget and criteria. They’ll also receive alerts on open houses and are usually the first to know when new listings hit the market.

Once you’ve identified a home you’d like to pursue, they’ll assist you in putting together your offer, negotiating with the listing agent representing the seller, and guide you through the counteroffer process (should there be one). Once the seller accepts your offer, your agent will help you negotiate any final repair requests found in the home inspection and assist you through closing until you’ve received the keys to your new home.

The point is: your agent will be with you throughout your home buying journey, from start to finish. They are an invaluable resource for local market knowledge and real estate expertise. Though they will not execute the financial aspects of a home purchase for you, (that’s where your mortgage broker comes in), they can recommend trusted lenders with whom you can apply for and secure a home loan.

For more information on working with an agent, visit our Home Buying Guide:

Mortgage Broker

Mortgage brokers work on the financial side of a real estate transaction, representing buyers to find them favorable mortgage terms when shopping for a home loan. They connect borrowers to lenders by researching the various fees and rates associated with obtaining a mortgage, accessing the buyer’s financial creditworthiness, and coordinating paperwork. Mortgage brokers are not responsible for loaning any money. Once they’ve found the right lender and loan product for their client, they hand the baton to the lender, who will then disburse the funds at the appropriate time.

Working with a mortgage broker can save you time and money. In some cases, they may be able to get the lender to waive certain fees and are experts at finding the best deal for their clients among a vast array of loans and lenders. Mortgage brokers are instrumental in getting your financing for your home purchase secured and provide guidance on which loan products may work best for you.

For more on the financial aspects of a home purchase, read the following:

Two women discussing the terms of a mortgage application

Image Source: Getty Images – Image Credit: kate_sept2004

Questions to Ask Your Real Estate Agent and Mortgage Broker

Now that you know a bit more about the respective responsibilities of real estate agents and mortgage brokers, here are a few common questions to ask when conducting interviews:

Real Estate Agent	Mortgage Broker
How do you help buyers to make their offer stand out?	What is the required down payment for this loan?
Which designations and/or certifications do you have?	What’s the difference between fixed-rate and adjustable-rate mortgages?
How many clients are you working with currently?	Which costs are attached to this loan?
What is the best way to contact you?	How high does my credit score need to be?
How long have you been an agent in the local market?	What is the interest rate for this loan?
Do you represent both buyers and sellers?	What’s the difference between pre-qualification and pre-approval?
Do you have recommendations for mortgage brokers, home inspectors, etc.?	Is there a prepayment penalty?