Market Data • April 10, 2022

Average List Prices

by Brandon Bidwell

While we frequently research and discuss average prices for properties that sell, it is also interesting to look at the average prices for properties that are active on the market but not sold yet.

These are the average prices, by area, for properties currently listed for sale and not sold yet:

Metro Denver = $954,000
Larimer County = $878,000
Weld County = $880,000

If you are surprised that Weld County is higher than Larimer County, it’s important to note that there are several large acreage properties listed for sale in Weld County which are skewing the average.

These average active prices are all roughly 30% higher compared to a year ago and further emphasize the strong activity in the Front Range market.

Market Data • April 6, 2022

Average Home Prices along CO Front Range

by Brandon Bidwell

Average prices in Metro Denver just exceeded $700,000 in Metro Denver. Larimer County isn’t far behind.

For the month of March, the average residential sales price in the 5-county Metro Area was $704,000. This does not include Boulder County.

Larimer County was $691,000 and we expect to see an average exceeding $700,000 in the very near future.

It’s also interesting to note the average price for properties currently listed for sale and not sold yet. In Larimer County it is $848,000 and in Metro Denver it is $1,100,000.

You might be asking, why have prices appreciated to this level? Quite simply, supply and demand.

The Front Range has a healthy, growing economy plus an incredibly high quality of life. Meanwhile, standing inventory is low which results in upward pressure on prices.

Market Data • March 11, 2022

3.2 Trillion in American Home Equity

by Brandon Bidwell

The new CoreLogic Homeowner Equity Insights report shows that homeowners in the U.S. have seen their equity increase by a total of $3.2 trillion over the last 12 months.

Their data shows that 63% of all homes have a mortgage.

On average, U.S. homeowners gained $55,000 while the average increase in Colorado was higher at $75,000.

The other piece of good news from the report is that properties with negative equity reached the lowest amount in several years.

Only 2.1% of all properties across the U.S. have a value lower than the mortgaged amount. Negative equity peaked at 26% of all mortgaged properties back in 2009.

Interior Design • March 9, 2022

Farmhouse Interior Design

by Brandon Bidwell

Known for its signature chic comfort, the farmhouse style is a popular method of interior design for homeowners looking to blend elements of modern and traditional design. With a rustic charm at its heart that recalls images of the countryside and wide-open landscapes, the farmhouse style steadily picked up steam in the 2010s and continues to grow in the 2020s. The following information is a guide to understanding the characteristics that make up the farmhouse style and how you can translate them into your home.

What is farmhouse style?

The farmhouse style predominantly uses a white/grey/beige color palette which provides a foundation for complementing elements and brighter colors. Against this clean backdrop, rustic materials can really shine. Exposed wood beams of timber or reclaimed wood, shiplap, and wrought iron are materials typically used help to round out the aesthetic, creating that rural-with-a-touch-of-modern feeling that the farmhouse style is known for. These combinations create a sense of openness and simplicity in the spaces where they’re used. In the kitchen, the farmhouse style feels clean and inviting; in the living room, it beckons members of the household and guests alike to sit back and relax; and in the dining room, it creates the perfect setting for enjoying a meal together.

A farmhouse style kitchen with white surfaces, exposed beams, and wood accents.

Image Source: Shutterstock – Image Credit: Breadmaker

How to Decorate in a Farmhouse Style

When it comes to furniture, there are specific choices you can make that will help reinforce your personal farmhouse style. Functionality is a core principle of farmhouse design, exemplified by its use of reclaimed and found materials. When looking at furniture, tune your radar to pieces that are simple and functional rather than ornate and complex. Farmhouse’s warmth contrasts the colder feel of minimalism, so when thinking about texture, know that you’re not bound to selecting only the cleanest possible lines—feel free to experiment! With natural elements like stone and wood already providing a varied blend of textures, you can afford to be bold in your choice of throw pillows, blankets, carpeting, and furniture set pieces.

The farmhouse style will give you license to decorate with antiques and vintage materials. Items like armoires, wooden iceboxes, and vanities will find a fitting home among your complementary decorative items. With a prevalence of wood, choose grain patterns and wood tones that complement each other well without clashing. Clutter can get in the way of the coziness that the farmhouse style naturally evokes, so it’s important to keep your main living areas well maintained to truly let your home’s interior design flourish.

With the farmhouse style, it all comes back to comfort. If you’re looking to make the spaces in your home more comfortable, either fully adopting or borrowing from the farmhouse style may be just the ticket. For more helpful tips on home design, read our blog post on how to upgrade your bedroom:

A Guide to Upgrading Your Bedroom

Market Data • March 4, 2022

Townhome Construction

by Brandon Bidwell

Townhome construction has surged in the last 12 months. This is welcome news for first-time buyers who benefit from the lower prices that multi-family product tends to provide.

According to the National Association of Home Builders, townhome construction has jumped up 28% compared to the previous year.

Townhomes now represent 13% of all new residential construction starts.

Mortgage • February 21, 2022

Mortgage Rate Impact

by Brandon Bidwell

This week, for the first time in 32 months, mortgage rates hit 4%.

While this increase may feel painful for buyers currently looking at property, it is important to put today’s rates in perspective.

We believe we will look back a few years from now and see that a 4% rate was like buying money at a discount.

Interest rates hovered between 4.5% and 3.75% for the 8-year span of June, 2011 to June 2018

Between January, 2000 and December, 2010 rates were as high as 8.25% and as low as 5.0%.

When looking at the history of interest rates and researching economists’ forecasts, we believe it is reasonable for rates to hit 5% within the next 24 months.

When interest rates increase 1%, a buyer’s monthly payment increases 10%.

So, if rates do go to 5%, it is like an additional 10% price increase for a buyer.

Given all of this information, the biggest risk to a buyer in today’s market may very well be to wait.

Mortgage rates are likely on their way up and there is an opportunity to buy money at a discount today.

Home Design • February 9, 2022

Selling “As-Is” vs Remodeling

by Brandon Bidwell

Homeowners who are preparing to sell are often faced with a dilemma about whether to remodel or sell their home in its current state. Each approach has its respective advantages and disadvantages. If you decide to remodel your home, it will likely sell for more; but the increased selling price will come at the cost of financing the remodeling projects. If you decide to sell without remodeling, you won’t spend as much money putting your home on the market, but the concern is whether you’re leaving money on the table.

Should I Remodel or Sell My Home As Is?

Every situation can be a very unique case so to answer this question, it’s important to understand the factors that could influence your decision and to work closely with your agent throughout the process.

Cost Analysis: Home Remodel vs. Selling Your Home As Is

Home Remodel

When you remodel your home before selling, you’re basically making a commitment to spend money to make money. So, it’s important to consider the kind of ROI you can expect from different remodeling projects and how much money you’re willing to spend. Start by discussing these questions with your agent. They can provide you with information on what kinds of remodels other sellers in your area are making and the returns they’re seeing as a result of those upgrades. This will help you determine the price of your home once your remodel is complete.

Then, there’s the question of whether you can complete you remodeling projects DIY or if you’ll need to hire a contractor. If hiring a contractor seems expensive, know that those costs come with the assurance that they will perform quality work and that they have the skill required to complete highly technical projects.

According to the Remodeling 2021 Cost vs. Value Report (www.costvsvalue.com¹), on average, homeowners paid roughly $24,000 for a midrange bathroom remodel and about $26,000 for a minor kitchen remodel nationwide, with a 60.1% and 72.2% ROI respectively. This data shows that, for these projects, you can recoup a chunk of your costs, but they may not be the most cost-effective for you. A more budget-friendly approach to upgrading these spaces may look like repainting your kitchen cabinets, swapping out your old kitchen backsplash for a new one, refinishing your bathroom tub, or installing a new showerhead. Other high-ROI remodeling projects may allow you to get more bang for your buck, such as a garage door replacement or installing stone veneer. To appeal to sustainable-minded buyers, consider these 5 Green Upgrades that Increase Your Home Value.

A man and woman look at blueprint plans with a contractor inside a room that’s being remodeled.

Image Source: Getty Images – Image Source: stevecoleimages

Selling Your Home As Is

Deciding not to remodel your home will come with its own pros and cons. By selling as is, you may sell your home for less, but you also won’t incur the cost and headache of dealing with a remodel. And since you’ve decided to sell, you won’t be able to enjoy the fruits of the remodel, anyway. If you sell your home without remodeling, you may forego the ability to pay down the costs of buying a new home with the extra money you would have made from making those upgrades.

Market Conditions: Home Remodel vs. Selling Your Home As Is

Local market conditions may influence your decision of whether to remodel before selling your home. If you live in a seller’s market, there will be high competition amongst buyers due to a lack of inventory. You may want to capitalize on the status of the market by selling before investing time in a remodel since prices are being driven up, anyway. If you take this approach, you’ll want to strategize with your agent, since your home may lack certain features that buyers can find in comparable listings. In a seller’s market, it is still important to make necessary repairs and to stage your home.

In a buyer’s market, there are more homes on the market than active buyers. If you live in a buyer’s market, you may be more inclined to remodel your home before selling to help it stand out amongst the competition.

Timing: Home Remodel vs. Selling Your Home As Is

Don’t forget that there is a third option: to wait. For all the number crunching and market analysis, it simply may not be the right time to sell your home. Knowing that you’ll sell your home at some point in the future—but not right now—will allow you to plan your remodeling projects with more time on your hands which could make it more financially feasible to complete them.

If you have questions about what kind of improvements might make the most return on investment for your home just let me know.

Market Data • January 30, 2022

Current Inventory Status

by Brandon Bidwell

Despite the extraordinarily low amount of standing inventory, it is important to understand there is still a steady stream of new inventory hitting the market.

Inventory is low. That is a reality.

New inventory is coming on the market at essentially the same pace as compared to the last few years. That is also a reality.

Because demand is so high, the inventory doesn’t stay on the market very long. Residential listings go from ‘Active’ to ‘Pending’ very quickly (assuming they are priced correctly).

Over the course of 2021, there were 66,308 new residential listings that hit the market in Metro Denver. That is only 5% less than 2020.

Larimer County had 8,342 which is 7% less than 2020.

Weld County had 8,499 which is 5% less than 2020.

While standing inventory is near 50% lower than last year, the stream of new inventory is fairly consistent.

It is time to register for our annual Market Forecast with Chief Economist Matthew Gardner. This year the event will be hosted online on Thursday February 3rd from 11:00 to 12:00.

You can register at www.ColoradoForecast.com

Home Maintenance • January 26, 2022

Home Fire Prevention

by Brandon Bidwell

A fire breaking out in your home is a serious potential hazard. Fortunately, there are simple steps you can take to identify the early signs of a fire and to prepare for an emergency. The following list will help you and your household put together your fire safety plan.

How to Prepare for a Fire at Home

Fire safety

Having properly functioning smoke and CO2 detectors is crucial to your safety. Test your smoke and CO2 detectors frequently and swap out the batteries when necessary. It is recommended to have a smoke detector outside each sleeping area and on each level of your home.

Always keep a fire extinguisher near the kitchen to combat flame outbursts from the stove or oven. It is best to have at least one fire extinguisher per floor for easy access. Keep in mind that fire extinguishers are used to control and extinguish small, contained fires. If a fire has spread throughout an entire room, or is beginning to engulf your home, know that fire extinguishers are no match for the blaze, and you should escape immediately.

Evacuation plan

A home fire can be very disorienting. During an emergency, it is critical that all members of your household know how to properly evacuate the home. Identify two ways to escape from each room in case one route is unsafe. Choose a meeting spot somewhere outside for everyone to meet a safe distance away from the fire. This can be across the street, down the block, at a neighbor’s house, or wherever makes most sense for you and your family. The most important thing is that you all have an agreed-upon rendezvous. Select an emergency contact whom you can reach out to if something goes wrong in the evacuation process or if a family member is missing.

Best practices

When escaping your home, crawl as low as possible to stay beneath the smoke. Test closed doors before using them to escape. If they are hot, that’s a sign that there are flames on the other side of the door and you should use an alternative escape strategy. Be careful that you don’t burn your hand when testing closed doors. Make sure everyone in your household knows the procedure for calling 9-1-1 and properly alerting the fire department. If you have pets at home, include them in your evacuation plans. If you are forced to decide between evacuating safely and trying to rescue a pet, know that firefighters are trained experts at saving animals from house fires.

For more tips on how to plan for fire-related emergencies at home, read our blog for Wildfire Preparation and Evacuation Tips.

Economic • December 18, 2021

Job Openings in Construction

by Brandon Bidwell

It’s not just the availability of materials impacting home builders today, it’s also the availability of labor.

The market could use more inventory. Home builders are trying to catch up.

You’ve likely read the stories about the cost and availability of materials making an impact on home builders’ ability to keep pace with demand.

It turns out they have another factor impacting them as well- labor.

There are more construction job openings than ever before in history.

This is according to a new report from the Bureau of Labor Statistics.

There are 410,000 job openings in the Construction Sector.

A year ago there were 253,000.

If you know of anyone looking for work, there is a good chance a home builder could use the help.