Buyers • Buyers & Sellers • Housing Trends • Sellers • May 24, 2021

How Will COVID-19 Impact the Housing Market?

by Suzanne Ekeler

Throughout this crisis, you most likely have a lot of questions about how COVID-19 is impacting the housing market. We want to make sure to provide you with the most information that we can so you can know what to expect when buying or selling your home.

How Is the Economy Going to Be Impacted by COVID-19?

During the past few weeks, the federal government has enforced that non-essential businesses either move to work remotely or shut down completely. Throughout this past quarter, there was a large growth in the economy in January and February. Towards the end of this quarter, things decided to slow down because of businesses closing. In the next quarter, the economy is expected to contract. In order for the economy to still grow and sustain, congress needs to approve a fiscal stimulus. This includes giving loans to small businesses in order to function throughout this period of closures.

How Will the Economy Recover From COVID-19?

The economy will eventually recover from a potential recession. The question is whether or not the recovery will be on a “V” shaped recovery or a “U” shaped recovery. A “V” shaped recovery means that the economy goes down quickly then it recovers quickly. A “U” shaped recovery means that the economy goes down, languishes down for a while then slowly recovers. According to Windermere Chief Economist Matthew Gardner, the second half of this year will be significantly better than the first half.

How Does COVID-19 Affect Housing?

Home sellers are becoming increasingly cautious about listing their homes, meaning that the amount of listings is likely to decrease the remainder of this quarter and even into the next. They want to make sure that proper precautions are taking place before strangers enter their home. However, this doesn’t mean that every market nationwide will be as greatly impacted by COVID-19 as others. On the other hand, homebuyers have a different perspective than home sellers. They want to take advantage of the low mortgage rates. Those with sturdy jobs throughout this time are more likely to move than those who are still at risk of being laid off. People who have to take money out of the stock market to purchase a home are also less likely to purchase a home at this point as well. There will likely be a 10-15% contraction in home sales across the market.

Will Interest Rates Be Affected?

While interest rates did drop significantly a few weeks ago, they actually increased this past week. Many people were refinancing their homes, causing these interest rates to suddenly increase. It is still very likely that interest rates will drop again in the coming weeks.

What Will the Next Several Weeks Look Like?

The weeks and months to come are expected to be very difficult; however, there is a light at the end of the tunnel. Different markets will be affected in different ways, but many of them are only going to experience short term problems. Casinos and resorts are likely to take a larger hit because people will not be able to visit them. The second housing market will also likely take a hit because those are discretionary purchases. Our best advice is to continue to support small businesses if you have the means by buying gift cards and ordering out in order to support the industries affected.

This is an uncertain time for everyone in the world, but the best thing you can do is educate yourself. Understand where the economy stands and where it is expected to go, so you can make the best decisions for yourself and your family.

Blog • Buyers & Sellers • Friday Fun Facts • Sellers • May 22, 2021

Tax Confusion

by Suzanne Ekeler

Did you know the value of your property according to the County Assessor is not the value of your property today?

Property owners up and down the Front Range recently received a postcard from their local County Assessor’s office with their new valuation.

Colorado properties are reappraised every two years on odd years. The updated valuations determine how much property tax is paid.

Each County has their own unique processes and models for valuation, however…

All Counties must only consider comparable properties that sold between July 1, 2018 and June 30, 2020.

The value on your postcard is what your County thinks your property was worth almost a year ago.

As you are likely aware, the market today is significantly different than it was 11 months ago. It’s actually quite different than it was 11 weeks ago!

The postcards with the new valuations tend to prompt very reasonable questions like:

What do I do if I don’t agree with the Assessor?
What is my property really worth?

We are happy to help you with either of these questions.

Our team is well-versed in the tax protest process, can help you research comparable properties and can also show you what your home is worth today. Just reach out to us if we can help you. The deadline to protest your value is June 1st.

Blog • Virtual Tour • Windsor Real Estate • May 20, 2021

Move-In Ready Gem!

by Suzanne Ekeler

Welcome to your new home at 819 Cliffrose Way, Severance! This like new, beautiful property has main floor living, 3 bedrooms and 2 baths, granite counter tops, laundry on the main floor and an open concept. Large completed back yard with sprinkler system. 2018 received new flooring, roof and exterior paint. 2019 received a new furnace and hot water heater. 2020 received a new A/C and kitchen appliances. All you must do is in move in. This home is in a great community and will not last long. Showings start Thursday 5/20. Call for your private showing at (970) 590-4841 or click the link below for more details.

http://windermerewindsor.com/listing/132740642

Blog • Buyers & Sellers • Housing Trends • Sellers • May 17, 2021

Colorado Retirement Guide for Baby Boomers

by Suzanne Ekeler

In 2030, for the first time in history, the older population will outnumber the younger population. Learn what this surprising statistic means for baby boomers when it comes to retirement and selling their homes.

The Aging Baby Boomer Generation

We are currently seeing that the baby boomers aren’t recognizing that they will need long term care facilities at some point. This is because they are focusing on putting their parents in these facilities. And as they are doing this, they are recognizing the amount of money they are going to need and that their financial plan isn’t as solid as they originally thought it was. This is why we encourage baby boomers to hold on to their homes longer or sell their homes to purchase one that is more suited to their aging needs.

Where Aging Adults Want to Live

We asked aging adults in Colorado what their priorities were when they were looking for a place to live. The answer surprised us as the number one answer wasn’t family but instead was by a grocery store. The second priority for these aging adults was to live by medical facilities and the third was to live by their family.

Should Baby Boomers Sell Their Homes

Baby boomers should not be in a rush to sell their homes unless their current home is negatively impacting their health. Right now, if baby boomers wait one more year to sell their home they will make 5-6% more on their home. This can be a substantial amount of money that can make retirement more comfortable.

Best Place to Retire in Colorado

Some places are better than others to settle down during your aging years. To make this assessment, we factored in weather, senior care facilities, and a sense of community. One of the best cities to retire in is Fort Collins as they have a nationally accredited senior care facility, have mild weather, and have a high sense of community.

Wherever you are at in your journey of retirement and right-sizing your home, we are here to help take those steps with you. Download our Home Sellers Guide for more information!

Blog • Buyers • Buyers & Sellers • May 10, 2021

Key Real Estate Findings for 2021 Colorado Housing Market

by Suzanne Ekeler

Windermere Real Estate Colorado president, Eric Thompson, recently interviewed Windermere Real Estate’s world-renowned chief economist, Matthew Gardner about the housing market in Colorado. The recorded interview offers an in-depth analysis of current data released on housing topics.

During the discussion, Gardner provided insight into the resilience of Colorado’s housing market in an economy mired by COVID-19. Key topics covered on findings specific to Colorado include:

Inventory will make the greatest market impact – “Expect to see a bigger building boom because of the lack of resale inventory,” Gardner predicts.
- Northern Colorado inventory decreased by 47% (compared to 2019)
- 1.4 million current listings rank as the lowest amount recorded since 1999
- Average building prices have increased by 17% due to a shortage of lumber and growing supply chain issues as a result of the wildfire’s environmental impact across the state
- Contributing to inventory concerns, current interest rates are at a historical low – “Essentially, we won’t see interest rates of 4% or greater until at least 2022,” reports Gardner. “Anywhere from six to eight years down the road when owners might want to sell, they may decide to stay in their home if interest rates increase because they now have an incredibly low-interest rate, causing a greater shortage in listings as a result.”

Buyer preferences post-pandemic will play a pivotal role in sales – “Industry statistics and consumer trends show that properties with designated space to work from home will take priority in the potential buyer decision-making process,” says Gardner. “This factor may also prove beneficial to the market as circumstances might motivate opportunities to move given needs to be close to the office could become obsolete.”
Economic evaluations prove promising – “We are in the midst of a monumental health crisis, but not a housing crisis,” notes Gardner. “While Colorado saw a tremendous loss of approximately 180,000 jobs, more than 90,000 have already been recovered due to Colorado’s diverse economy offering an abundance of employment sources.”
- Sale closings have increased by 36%, and pending sale contracts have also increased by 39%
- In Fort Collins, 59% of homes (both attached and detached) on the market under contract have grown by 19% (compared to 40.5% in 2019)
- Restaurant reservations are down 40% (versus 2019) due to the limited 50% capacity requirements for safe social distancing
- Public Transit is down about 40% but continues to see growth as people return to the workplace
- Mortgage structures remain stable, with credit quality high at a 750 average for approval, and Adjustable-Rate Mortgages (ARMS) seen in only 3% of all homeowner agreements
- 80% of people have at least 20% equity in their homes, forecasting no foreclosure boom, particularly in Larimer County, where 36.7% of homeowners have more than 50% equity, and in Denver, where 40% also report more than 50% equity

“At Windemere, we’re extremely fortunate to have the invaluable guidance and insight from Matthew (Gardner),” said Eric Thompson, Windermere Colorado President. “With this high-level of economic expertise available, we are able to provide greater clarity on housing market topics through in-depth research to both our valued team of realtors and consumer base so they can feel confident about their real estate decisions.”

As chief economist for Windermere, Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Gardner has more than 30 years of professional experience both in the U.S. and U.K. In addition to his day-to-day responsibilities, Gardner 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.

For access to watch the full interview for free, Windermere invites the public to reach out to a Windermere agent or their offices directly via phone at 970-460-3033 or email at noco@windermere.com.

About Windermere Real Estate
Windermere boasts more than 300 offices across the Western U.S., with six Colorado locations spanning across the front range. Most notably, Windermere Colorado is revered as one of the only real estate agencies to staff its own dedicated economist. For more information on Windermere Real Estate, visit www.windermere.com.

Buyers • Buyers & Sellers • May 10, 2021

Key Real Estate Findings for 2021 Colorado Housing Market

by Suzanne Ekeler

Windermere Real Estate Colorado president, Eric Thompson, recently interviewed Windermere Real Estate’s world-renowned chief economist, Matthew Gardner about the housing market in Colorado. The recorded interview offers an in-depth analysis of current data released on housing topics.

During the discussion, Gardner provided insight into the resilience of Colorado’s housing market in an economy mired by COVID-19. Key topics covered on findings specific to Colorado include:

Inventory will make the greatest market impact – “Expect to see a bigger building boom because of the lack of resale inventory,” Gardner predicts.
- Northern Colorado inventory decreased by 47% (compared to 2019)
- 1.4 million current listings rank as the lowest amount recorded since 1999
- Average building prices have increased by 17% due to a shortage of lumber and growing supply chain issues as a result of the wildfire’s environmental impact across the state
- Contributing to inventory concerns, current interest rates are at a historical low – “Essentially, we won’t see interest rates of 4% or greater until at least 2022,” reports Gardner. “Anywhere from six to eight years down the road when owners might want to sell, they may decide to stay in their home if interest rates increase because they now have an incredibly low-interest rate, causing a greater shortage in listings as a result.”

Buyer preferences post-pandemic will play a pivotal role in sales – “Industry statistics and consumer trends show that properties with designated space to work from home will take priority in the potential buyer decision-making process,” says Gardner. “This factor may also prove beneficial to the market as circumstances might motivate opportunities to move given needs to be close to the office could become obsolete.”
Economic evaluations prove promising – “We are in the midst of a monumental health crisis, but not a housing crisis,” notes Gardner. “While Colorado saw a tremendous loss of approximately 180,000 jobs, more than 90,000 have already been recovered due to Colorado’s diverse economy offering an abundance of employment sources.”
- Sale closings have increased by 36%, and pending sale contracts have also increased by 39%
- In Fort Collins, 59% of homes (both attached and detached) on the market under contract have grown by 19% (compared to 40.5% in 2019)
- Restaurant reservations are down 40% (versus 2019) due to the limited 50% capacity requirements for safe social distancing
- Public Transit is down about 40% but continues to see growth as people return to the workplace
- Mortgage structures remain stable, with credit quality high at a 750 average for approval, and Adjustable-Rate Mortgages (ARMS) seen in only 3% of all homeowner agreements
- 80% of people have at least 20% equity in their homes, forecasting no foreclosure boom, particularly in Larimer County, where 36.7% of homeowners have more than 50% equity, and in Denver, where 40% also report more than 50% equity

“At Windemere, we’re extremely fortunate to have the invaluable guidance and insight from Matthew (Gardner),” said Eric Thompson, Windermere Colorado President. “With this high-level of economic expertise available, we are able to provide greater clarity on housing market topics through in-depth research to both our valued team of realtors and consumer base so they can feel confident about their real estate decisions.”

As chief economist for Windermere, Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Gardner has more than 30 years of professional experience both in the U.S. and U.K. In addition to his day-to-day responsibilities, Gardner 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.

For access to watch the full interview for free, Windermere invites the public to reach out to a Windermere agent or their offices directly via phone at 970-460-3033 or email at noco@windermere.com.

About Windermere Real Estate
Windermere boasts more than 300 offices across the Western U.S., with six Colorado locations spanning across the front range. Most notably, Windermere Colorado is revered as one of the only real estate agencies to staff its own dedicated economist. For more information on Windermere Real Estate, visit www.windermere.com.

Blog • Buyers • Buyers & Sellers • Economics 101 • Friday Fun Facts • May 7, 2021

Drastically Different

by Suzanne Ekeler

Recently it seems there are many attempted comparisons being made between today’s real estate market and the 2006-2007 market.

It seems that people fear a repeat of what happened to the market in 2008 and 2009.

Buyers, understandably, want to make smart decisions and don’t want to buy in advance of any downturn.

The reality is this. There are some similarities between now and the pre-bubble market of 15 years ago. Namely, prices are appreciating quickly.

However, there is one massive difference.

The inventory of homes for sale right now is drastically different than 15 years ago.

The rules of economics tell us that, in order for prices to crash, demand needs to diminish, supply needs to swell, or some combination of the two.

Here’s the deal. Supply today is a fraction of what is was 15 years ago.

Homes for sale today:

Larimer County = 238
Weld County = 226
Metro Denver = 2,594

Homes for sale 15 years ago:

Larimer County = 2,998
Weld County = 1,113
Metro Denver = 29,045

The reason why prices flattened and decreased slightly along the Front Range in 2009 is because the National economy had a meltdown and there was a glut of supply.

We do not have anything similar to those same dynamics today.

We are watching the market closely every single day. While we don’t expect the current pace of appreciation to keep up, we believe inventory levels keep us insulated from any kind of crash.

Blog • Buyers • Buyers & Sellers • Economics 101 • Housing Trends • Sellers • Windsor Real Estate • May 6, 2021

Q1 2021 Colorado Real Estate Market Update

by Suzanne Ekeler

The following analysis of the Metro Denver & Northern 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

Following the decline in employment last winter, Colorado has started to add jobs back into its economy. The latest data shows that the state has now recovered more than 219,000 of the 376,000+ jobs that were lost due to COVID-19. This is certainly positive, but there is a long way to go to get back to pre-pandemic employment levels. Denver and Fort Collins continue to have the greatest improvement in employment, but all markets show job levels well below pre-pandemic levels. With total employment levels rising, the unemployment rate stands at 6.6%, down from the pandemic peak of 12.1%. Regionally, unemployment levels range from a low of 5.6% in Fort Collins and Boulder to a high of 6.7% in Greeley. COVID-19 infection rates have started to increase again, and this has the potential to negatively impact the job market. I am hopeful that the state will not be forced to pull back reopening, but this is certainly not assured.

COLORADO HOME SALES

❱ 2021 started off on a bit of a sour note, with total sales down 1.2% compared to the same period in 2020. Sales were 29.2% lower than in the final quarter of 2020 as 8,645 homes sold.

❱ Sales were higher in four of the counties contained in this report, were essentially flat in one, and dropped in seven. It was pleasing to see significant sales growth in the large counties of Denver and Adams.

❱ Another positive was that pending sales, which are an indicator of future closings, were 4.8% higher than in the fourth quarter of 2020 and 5% higher than a year ago.

❱ The disappointing number of home sales overall can primarily be attributed to the woeful lack of inventory. Listings in the quarter were down more than 61% year over year and were 40.6% lower than in the fourth quarter of 2020.

COLORADO HOME PRICES

❱ Prices continue to appreciate at a very rapid pace, with the average sale price up 16.5% year over year, to an average of $556,100. Home prices were also 4.4% higher than in the fourth quarter of 2020.

❱ Buyers appear to be out in force, and this demand—in concert with very low levels of inventory—continues to heat the market.

❱ Prices rose over last year across all markets covered by this report, with the exception of the very small Gilpin County. All other counties saw sizeable gains and the trend of double-digit price growth continued unabated.

❱ Affordability levels are becoming a greater concern as prices rise at a far faster pace than wages. Even though mortgage rates have started to rise, they haven’t yet reached the level needed to take some of the heat out of the market.

DAYS ON MARKET

❱ The average time it took to sell a home in the markets contained in this report dropped 20 days compared to the first quarter of 2020.

❱ The amount of time it took to sell a home dropped in every county contained in this report compared to the fourth quarter of 2020.

❱ It took an average of 25 days to sell a home in the region, down one day from the fourth quarter of 2020.

❱ The Colorado housing market remains very tight, as demonstrated by the fact that it took less than a month for homes to sell in all but two counties.

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 relatively low level of home sales is not a surprise given how few choices there are for buyers. Sellers are certainly benefitting from strong demand, as demonstrated by the significant price growth. I maintain my belief that there will be an increase in inventory as we move through the year, but it is highly unlikely that we will see a balanced market in 2021.

Given these factors, I am moving the needle a little more in favor of sellers, as demand is likely to continue to exceed supply.

ABOUT MATTHEW GARDNER

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.

Blog • Buyers & Sellers • Friday Fun Facts • Relocation • April 30, 2021

Colorado Bound

by Suzanne Ekeler

The 2020 Census confirms what we already know – Colorado is popular!

It turns out that many people have been Colorado-bound over the last 10 years.

Our state has grown by the equivalent of one Mile High Stadium’s-worth of people each year over the last 10 years.

Here are the numbers:

2020 population is 5.77 million
10-year population increase is 744,000
10-year percentage increase is 14.8%
Colorado ranks 21st among all states for population
Only 5 states had a larger percentage increase over the last 10 years (Idaho, North Dakota, Nevada, Texas & Utah)

Only 8 states had a larger increase in population over the last 10 years (Arizona, California, Florida, Georgia, New York, North Carolina, Texas & Washington

Blog • Home Living • April 27, 2021

Upgrading Your Work From Home Space

by Suzanne Ekeler

A woman sits in her home office typing on her laptop with houseplants and writing utensils on her desk.

We don’t need to tell you that COVID-19 drastically changed the way we live and work. An estimated 58% of Americans are now working remotely, and it has had an impact on how we use the space in our homes. Home offices, once a luxury, are now in high demand as working from home became the new normal over the past year. That being said, is your home office operating at its highest potential? Let’s look at some ways to upgrade your home office and turn it into the workspace of your dreams.

The New Normal

It’s been almost a year since millions of employees started working remotely, so we are all familiar with the concept of a home office and working from home. While some have space to spare, not everyone has a dedicated room in their home or apartment to turn into an office. Whether you have a setup that would make Google HQ jealous or you’re currently borrowing your teenager’s closet to conduct Zoom meetings, it is important to prioritize the functionality of your space. Take advantage of every inch you have to give yourself a comfortable working environment.

With functionality top of mind, here are some crucial things to consider when revamping or creating your home office.

Create a Dedicated Space

It can be difficult living and working within the same couple hundred square feet. For the sake of maintaining some semblance of work-life balance, create a space dedicated to work and only work. Set all of your work equipment in a singular area and keep it there. Use dividers, doors, or your desk to mark off the area you’ve made.

Those who have been working from home for years have said that creating a designated workspace is one of the best things you can do for your mental health and overall wellbeing. A separation of work and home communicates to your brain that one area of your home is a place to work, and the other is a place to live – which can reduce work-related anxiety.

Make Your Windows Count

Setting up your desk under or near a window can do wonders for your creativity and productivity. If you can avoid it, don’t position your desk toward a wall. If you don’t have windows available, be sure to turn your desk outward, toward your room. This position will give your eyes the ability to bounce around the room instead of staring at a blank wall, which can be just as draining as it is boring.

Even if your desk is set up near a window, remember to head outside every so often. It’s all too easy to sit at your computer for hours at a time without standing up and enjoying some sunshine. Give yourself set breaks to soak in some vitamin D, whether you take your lunch outside or simply sneak some fresh air between meetings.

Some WFH Must-Haves

Enough of the basics. Here are some must-haves that will brighten your office space and make you excited to “go to work”.

A therapy light can have a positive impact on your mood and energy by simulating natural light. Set one up on your desk to increase alertness and improve your sleep.
Save your back with an ergonomic chair made for longer periods of sitting. This will help reduce back pain and improve your posture.
Standing desks are another back-saver that will save you from sitting for eight hours a day. Seen to increase activity and overall health, standing desks can change how you work for the better.
A full-size keyboard provides all the keys necessary to get the job done, including a number pad and function keys. Tenkeyless keyboards (keyboards without a number pad) are gaining popularity, but full-size keyboards remain on top due to their ease of use and practicality.
Mini humidifiers are an effective way to combat dry air, giving you happy lungs, sinuses, and skin. Put one on your desk to increase the humidity in your space.
Working on screens all day exposes you to blue light, which can negatively impact your sleep and overall mood. Get a pair of blue light glasses to combat these rays.

With many of us still working from home for the foreseeable future, it’s more important than ever that your workspace serves your unique needs. Make your area work for you to improve your productivity and personal wellbeing. At the end of the day, we’re all human, and we work best when we’re feeling our best.

Disclaimer: This is a guest post written by the real estate experts at The CE Shop. The CE Shop is the leading provider of online real estate education with convenient courses available in all 50 states and D.C. To find out more about The CE Shop and the resources they provide, visit www.TheCEShop.com.