We’ve all had this experience when reaching out to a professional and it can be very frustrating. You can count on me to respond quickly and directly to you. Get in touch if you need help with your real estate needs at 970-313-6706. Kind regards, Sean
a robust real estate market in Northern Colorado in the last decade. At the beginning of the decade we were
dealing with the effects of a recession and
the housing crisis which included
many foreclosures and rock bottom prices in real estate. However, by this time things were on the
upswing. By the middle of the decade we
were seeing significant price appreciation in home values year over year with
multiple offer scenarios and offers coming in well above list price. As we approached the end of the decade we are
still seeing growth in the housing market but now at a slower rate. The intensity of the real estate market that
we saw a couple of years ago is settling down, those multiple offer scenarios are
becoming more rare and the overall real estate market is cooling down.
will things look like for 2020? Let’s
take a look at data put out by the Federal National Mortgage Association, or
Fannie Mae as it is more commonly known, as well as the 2020 Business Economic
Outlook put out by Leeds School of Business out of CU Boulder.
Let’s start with Interest Rates. According to research from Fannie Mae, it is
expected that we will see record low average interest rates for 2020 of around
3.6%. By comparison, in 2018 we saw an
average of 4.5% and in 2019 we saw an average of 3.9%.
Looking at the local economy, Colorado
is in the top 10 states for employment growth.
It’s predicted that employment growth is expected in 10 of the 11
industries state-wide, including construction.
Unemployment in Colorado is at 2.7%, ranking Colorado in the top 5
lowest states. Employee wages in
Colorado are higher than the national average.
With a strong employment force and
opportunities, Colorado is attracting more people to move to the state for
work. It’s forecasted that 2020 will see
just under 50,000 people moving into Colorado.
Colorado is already seeing low
inventory for housing. New construction
is expecting a boom this year as more buyers will be in the market for a home
and builders aren’t able to keep up with the need for more inventory.
How will this impact real estate for 2020? We should continue to see modest price appreciation in home values. While our real estate market is steadily normalizing, due to low inventory and increasing demand from steady population growth, we are still in a seller’s market, albeit mildly so. If the economic trends mentioned continue, we should see about 3-5% increase in average price appreciation. While the December numbers aren’t in yet, this last year saw about a 3% increase in average sales price in Northern Colorado. In this market, both sellers and buyers will benefit. Sellers will be able to capitalize on equity earned since they purchased their home and buyers will see moderate price appreciation after buying a home. With Colorado’s strong economy, we should see this trend continue.
December Housing Forecast. Federal National Mortgage Association (Fannie Mae): https://www.fanniemae.com/portal/research-insights/forecast.html?
Took my daughter for a hike around Sprague Lake in Rocky Mountain National Park. We had the privilege of seeing a Bull Moose as well as a mother and calf. A beautiful but rare sight!
About the author/photographer: Sean Gilliam is a Realtor® with RE/MAX Alliance in Northern Colorado. Sean can be reached at email@example.com or by phone at 970-313-6706. For additional articles see Sean’s blog or to search for properties see his web page.
Want to see the latest housing market data for the City of Longmont? As a bonus, data for Boulder, Larimer and Weld Counties are also included. Just click below for the video. Get in touch if you have questions or need a trusted advisor in real estate.
Want to know how prices are trending in Longmont? At the end of the video are average sales prices for Boulder, Larimer and Weld Counties. Mortgage interest rates are low so get in touch if you’re ready to purchase or sell your home.
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