Sean Gilliam, Realtor®
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
We’ve had 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.
So what 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.
References:
December Housing Forecast. Federal National Mortgage Association (Fannie Mae): https://www.fanniemae.com/portal/research-insights/forecast.html?
2020 Colorado Business Economic Outlook. Leeds School of Business, University of Colorado, Boulder.
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 seangilliam@remax.net or by phone at 970-313-6706. For additional articles see Sean’s blog or to search for properties see his web page.
Showed a property today and had to stop and take in the scenery. What a view to have in your neighborhood!
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.
Kind regards,
Sean 970-313-6706
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.
Kind regards,
Sean Gilliam
Looking for that mountain retreat? Backing to National Forest, close to ATV trails, this home resides in the private mountain community of Big Elk Meadows. This community has a heated pool, several stocked lakes for fishing and kayaking, tennis courts, a basketball court, horse boarding opportunities and a designated area for hunting for members only. Easy access to Rocky Mountain National Park, Estes Park, Lyons and Boulder, this is a perfectly located mountain getaway for you.
Beautiful mountain home with panoramic views! This home has it’s own well, whole house water filtration system, reverse osmosis system for drinking water and energy efficient electric thermal storage heat. Large master bedroom on main floor that opens onto deck with walk-in closet and 5 piece master bath with in-floor radiant heat. Main floor laundry and oversized 2 car garage. Close to National Forest trailheads and an easy commute to Estes Park, Boulder, Longmont, Denver and the airport.
Want to see how the market is trending in Longmont? Just watch this video. Let me know if you have any questions.
About the author: Sean Gilliam is a Realtor® with RE/MAX Alliance in Northern Colorado. Sean can be reached at seangilliam@remax.net or by phone at 970-313-6706. For additional articles see Sean’s blog or to search for properties see his web page.
Interested in buying a home or selling your current home? I am committed to your success. Give me a call at 970-313-6706 to get started.
It’s that time again. All homeowners are receiving the notice of valuation from our respective counties that we reside in. Does yours seem a little high? While our housing market has been appreciating in recent years, sometimes the county appraiser makes a mistake and values homes too high, thus causing your property tax that you will owe to go up significantly. If you would like to protest, let’s set up a time to get together and review comparable sales to see if you have a good case to make. Also, below is a link for the local county websites to help you get started with the process and give you more information about how it works.
Larimer County: https://apps.larimer.org/assessor/protest/
Boulder County: https://www.bouldercounty.org/property-and-land/assessor/appeals/
Weld County: https://www.co.weld.co.us/apps1/assessor/appeal/
How does the county come up with the valuation of your home?
The county assessor looks at past sales in your area to come up with the valuation of your home. Every odd-numbered year they send out a notice that tells you what their valuation of your home is and what your new property tax amount will be. However, unlike in real estate, where we pull comparable sales from the last six months, they go back further in time. For example, for our 2019 valuations, the county assessor reviewed sales from June 30, 2018 and went back twenty-four months to June 30, 2016. Bear in mind, the county assessor looks at data from public records, they don’t go out to each home and compare them according to their specific location, views, amenities, finishes and other aspects that have an important impact on a home’s value. As such, there is the potential for error in their calculations. Your local county gives you the opportunity to protest their valuation of your home. They also give you a time limit in which to do so, usually giving you until June 1st or 3rd, depending on your county. In addition to information related to your property, they will want supporting evidence to establish why you think your property’s valuation is lower than what they assessed. This is where I can help you. I can pull comparable sales and look at the finer details to see which homes are good comps and then we can see if they justify you protesting the county’s valuation.
If you would like to protest, let’s talk and we can review your case. You can reach me at 970-313-6706 or send me an email at seangilliam@remax.net.
About the author: Sean Gilliam is a Realtor® with RE/MAX Alliance in Northern Colorado. Sean can be reached at seangilliam@remax.net or by phone at 970-313-6706. For additional articles see Sean’s blog or to search for properties see his web page.
Interested in buying a home or selling your current home? I am committed to your success. Give me a call at 970-313-6706 to get started.
