Money at a Discount

by Suzanne Ekeler

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, we believe the biggest risk to a buyer in today’s market is to wait.

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

Blog • Buyers • Buyers & Sellers • Colorado Real Estate • Housing Trends • February 16, 2022

How to Buy a House in Colorado [Infographic]

by Suzanne Ekeler

How to Buy a House in Colorado [Infographic]

Buying a house can be daunting. Especially in the Colorado housing market where changes are happening rapidly. So you might be wondering how to buy a house in Colorado during these fast-paced times. There are many things to consider and it’s important not to rush into any decisions. Whether you are a current resident of Colorado or planning on relocating here, there are a few steps you need to follow in order for the home-buying process to go smoothly. The infographic below contains the top five most important steps to follow when buying a house in Colorado.

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Closing

Overall, buying a house in Colorado may seem like a daunting task, but with the right amount of planning, researching, and saving the process will go smoothly, and the best part? You end up a homeowner in Colorado, one of the most sought-after places to live in the U.S.

Blog • Buyers • Buyers & Sellers • Colorado Real Estate • Friday Fun Facts • February 15, 2022

Rent Record

by Suzanne Ekeler

Records continue to be broken in real estate, including the rental market.

Rents just rose another $2 per month to $1,594, a new record.

The annual rent growth of 13.5% nationally in 2021 was more than double any previous year, and apartment absorption counted nearly 600,000 units, which is roughly 50 percent more than the previous annual high, set in 2015.

The single-family rental market continues to outperform the multifamily sector.

Throughout 2021, the average U.S. asking rent gained $190 and 2022 is forecasted to increase by another 5%.

Source: Multi-Housing News

Blog • Colorado Real Estate • Friday Fun Facts • January 31, 2022

Steady Stream

by Suzanne Ekeler

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

Buyers • Buyers & Sellers • Home Living • Sellers • January 31, 2022

Make Your Move

by Suzanne Ekeler

• DECEMBER 1, 2021

by Windermere Staff

A man and a woman sit in their home among a pile of boxes.

Moving is stressful, whether it is across town or cross-country. Once you have closed on your house, the reality of packing, moving, and setting up a new home can become overwhelming. While no list can make a move “stress-free,” planning ahead and staying organized can help make your move a little smoother. Here is our list of tips:

Getting Started

Once you know your prospective move date set up a quick timeline to make sure you can get all the important tasks done and ready in time for your move.

Consider how much stuff you have by doing a home inventory. This can help you decide whether you need to hire movers to help you or if you will be managing your move on your own. Many moving companies supply inventory lists to help you assess the size of truck you will need. You can use your list as double duty for insurance purposes later.

As soon as you decide how you will be moving, make your reservations. In general, moving companies and truck rental services are over-booked at the beginning and very end of the month. If you are planning on hiring a moving company, contact a few in your area for a price quote. To find companies ask your real estate agent, family, or friends, and consult online reviews. It is also a good idea to request a quote and compare companies.

Preparing for Your Move

Moving is a great opportunity to get rid of clutter, junk, or outdated items. Set aside some time to sort through your closets, storage spaces, files, drawers, and more. Go through cluttered areas and organize items by “keepers”, “give-aways” and “garbage”. You will have less to pack and an opportunity to update after you move. Contact a local nonprofit organization for your donations; some will arrange to pick up larger donations like furniture. If you have items of value, eBay or craigslist are good options.
Changing your address is one of the more tedious tasks in the moving process. You will need to change your address with the United States Post Office. You can find the online form here: Movers Guide.

You will also need to change your address with each account you have. Here is a list to get your started:

Employers
Bank(s)
Utilities (Electric, Water/Sewage, Oil/Gas)
Cable/ Telephone
Cell phone service
Credit Cards
Magazine subscriptions
Insurance companies (auto, home/renters, health, dental, vision, etc.)
Pharmacy
Other personal services

Let the Packing Begin

Before you start packing, it may help to visualize where everything you have will go. Perhaps furniture will fit better in a different room? Consider the floor plan of your new home and figure out what will go where. This will aid in packing and labeling as you box everything up.

Use a tool like floorplanner.com to plan where furniture and items will go.

When it comes to packing you have some options. You can work with a service that provides reusable boxes for moving or you can reuse or purchase cardboard boxes. Make sure you have enough boxes, packing tape, dark markers, and packing paper.

Pack rooms according to your floor plan. Label boxes with contents and room. This will make it easier to unpack your home, knowing where everything is going.

Real Simple magazine has some great tips on packing for your move.

If you have to disassemble any of your furniture, make sure you keep all the parts and directions together. Make sure you set aside your necessities for the day you move. Being tired and unable to take a shower or make your bed can be hard at the end of a long moving day. Here are some ideas of what you may like to pack in your “day-of-move” boxes:

Clean linens for the beds, pillows and blankets
Clean towels
Shower curtain, liner and hooks
Toiletries, hand soap, tooth brush, etc.
Disposable utensils, cups, napkins, etc
Rolls of toilet paper
Snacks and water
Change of clothes
Tools for reassembling furniture, installing hardware, and hanging photos

Making Your Move

Come up with a game plan with your family, so everyone has a role and a part to play
Once the house is empty, do a once over on your old place to make sure it is clean for the next owners/occupants. Here is a useful checklist for cleaning.

Warming Your New Home

Once you have settled into your new home, warm it up by inviting friends and family over to celebrate. Here is a great infographic about housewarming traditions and symbolism. Announce your move to far-away friends and family through moving announcements to make sure you stay on the holiday card mailing list.

Buyers • Buyers & Sellers • Colorado Real Estate • Evans Real Estate • Greeley Real Estate • Johnstown Real Estate • Windsor Real Estate • January 24, 2022

Must-Haves and Nice-To-Haves Lists

by Suzanne Ekeler

Thoughtful homebuyer considers her needs and wants for her next home while she creates her Must-Have and Nice-To-Have lists.

Finding your dream home may not be easy, but there are things you can do to make it easier, like creating a “Must-Haves” list and a “Nice-To-Haves” list. These lists allow serious homebuyers to save time, energy, and ultimately, money as they prepare to buy a home.

A Must-Have List is exactly what it sounds like, a checklist of the details that are non-negotiable for your new home. It’s essential to sit down and think about the things you need in order to feel comfortable there for the next 7-13 years.

Your “Nice-To-Haves” list is a checklist of details that you’d like to have, but you can live without. This list is great for those things that you’ve always dreamed of but may be out of reach for reasons such as your budget or location. This list may include things like fireplaces or gas appliances, a pool, or other non-essential items.

Your “Must-Haves” list focuses your search and helps your agent narrow down which homes are worth your time. Your “Nice-to-Haves” list will help you determine what you’re willing to sacrifice, which will ultimately solidify your must-haves.

These lists can also help manage your expectations regarding price. Take your lists to your real estate agent, along with your pre-approval from a lender, and you’ll be able to work together to determine what is a reasonable ask within your budget and your desired location.

Creating Your “Must-Haves” List

The first step is to think about the essentials. If things like location and number of bedrooms and bathrooms are a priority, then you’ll want to include them in your must-haves. Consider where you live now and use that as a starting point; what do you love and what are you missing? You may need more storage space, or an extra room to work remote, or a larger backyard for the newest member of the family.

Here are some questions to ask yourself as you build your “Must-Haves” list:

Where do you want to live? (Be as specific as you can.)
What do you have now that you can’t live without?
What are you missing now that you may need for the next several years?

If you’re struggling to determine what it is you need to have, you can start working on your “Nice-To-Haves” list. This can also help you determine what is essential. For example, it may be nice to have five bedrooms when in reality, a three-bedroom house with a flex space that works for an office or guest room would do the trick.

Creating your “Nice-To-Haves” List

While you’re working on your “Nice-To-Haves” list, you’ll be thinking about the parts of a home that would be great to have but aren’t as important for you. You might also want to take into consideration what is reasonable in your area and if it’s a common amenity.

Here are some questions to ask yourself as you build your “Nice-To-Haves” list:

What home upgrades are you willing to make?
What is something you’d like to do in your house more often?
What do you have in your current home that you love, but don’t need?

Searching for Your Next Home

These lists will help guide you and your real estate agent as you search for your next home. During this process you might realize some aspects aren’t as important to you as you thought, and vice versa. Keep your agent in the loop as you update your lists so they can continue to search for the perfect home for you.

Blog • Colorado Real Estate • Friday Fun Facts • January 22, 2022

Standing Low

by Suzanne Ekeler

The standing inventory of residential properties currently for sale is staggeringly low.

The number of active properties for sale is almost 90% below the average for this time of year.

In Metro Denver, there are 1,144 residential properties for sale today.

In Larimer County, there are 136 and in Weld County there are 174.

Current inventory along the Front Range is essentially half of what it was one year ago.

The low standing inventory bolsters our belief that nothing resembling a decline in housing prices is on the horizon. The low supply will continue to put upward pressure on prices.

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 Living • January 17, 2022

Tips for Home: Extend the Life of Your Mattress

by Suzanne Ekeler

A plush mattress decorated with blankets and pillows in a modern bedroom.

All furniture has a shelf life, and your mattress is no different. Whether you sleep on a spring or memory foam mattress, the more proactive you can be about maintaining it, the better your chances of experiencing healthy, regular sleep. With a few simple tasks you can extend the life of your mattress and wake up every day feeling refreshed.

Extend the Life of Your Mattress

1. Clean Your Mattress Regularly

A clean mattress is the key to healthy sleep. Clean your mattress regularly according to the manufacturer’s instructions. Certain home cleaning supplies such as baking soda and essential oils can help to cleanse your mattress’s fabric, but they may be harmful to certain foam types. Vacuum before you clean to rid your mattress of dust and dirt using the attachment designed for cleaning upholstery. If your pets like to snuggle up in bed, you can count on their hair and fur getting trapped in your linens, so you may want to consider vacuuming more frequently to make sure everyone can sleep soundly.

2. Rotate Every Six Months

After laying in the same spot night after night, your mattress will begin to form to your body. Rotating your mattress every three-to-six months will give it a chance to refresh its structure and provide additional support. By simply flipping the foot end of the bed around to where you lay your head, it will feel like you’ve bought a brand-new mattress.

An olive-green bedspread in a chic bedroom.

Image Source: Shutterstock – Image Credit: New Africa

3. Use a Mattress Protector

Mattress protectors help to keep your bed as clean as possible by limiting damage caused by spills while keeping dust mites, sweat, dander, and pet hair/fur off your mattress. Made from organic cotton, organic mattress protectors are typically hypoallergenic and waterproof. They are helpful sleep aids for people with sensitivities to allergens and chemicals.

4. Support Your Mattress

Not properly supporting your mattress is a recipe for unhealthy sleep and a short lifespan for your bed. Check the manufacturer’s instructions to see if your mattress is meant to be coupled with a box spring, and if not, what kind of underneath support is required, given your mattress’s type and weight. Insufficient support can not only damage your bed but can also lead to physical complications such as soreness and back pain.

5. Handle Your Mattress with Care When Moving

During the moving process, the bed is often the center of attention. Large and clumsy, mattresses can be frustrating to maneuver from your bedroom to a moving vehicle. Fabric can easily be torn when navigating around corners, up and down stairs, through hallways, and sometimes even out of windows. Always work with a partner when moving your mattress or let the professionals handle it if you’re hiring a moving company. If you’re too hasty about getting it moved, you can easily damage it to the point where you’ll need to make a replacement.

Blog • Friday Fun Facts • January 13, 2022

The Fire’s Impact

by Suzanne Ekeler

Our heart goes out to all of the people impacted by the Marshall Fire in Boulder County.

If you would like to give your support, we have set up a special fund through the Windermere Foundation where we will match any donation you make up to $5000.

You can make that donation HERE.

This devastating event will have significant impacts on the real estate market both short term and medium term.

There are some interesting things to consider related to the fire:

This will be the costliest wildfire in Colorado history, by far. The total losses will probably approach $800 million. The most expensive wildfire up until now was last year’s East Troublesome fire at just over $500 million.
It’s likely that the vast majority of the residential property owners who lost their homes were underinsured. Given the recent rise in both property values and construction costs, these homeowners may find that their insurance won’t cover their actual loss. We encourage everyone to check in on their own property insurance versus actual replacement costs.
Nearly 1000 households are now in need of housing. Today there are only 161 residential properties for sale in Boulder County. In addition, the rental market also has low supply. We expect that many of the people impacted will consider housing alternatives outside of Boulder County simply out of necessity.
The homebuilding industry is currently challenged with both labor and material shortages. It may take long time to replace the properties that were destroyed by the fire.

Again, we are so sad for the people who were impacted. We are also encouraged to see all the different ways that our community has stepped up to help.

We are all committed to help these people get back on their feet and replace what they lost.

Blog • Buyers • Buyers & Sellers • January 10, 2022

7 Signs You’re Ready to Buy a Home

by Suzanne Ekeler

A young man and a woman sit on the floor of their new home, surrounded by boxes and furniture.

Making the leap from renter to homeowner doesn’t happen overnight; it requires steady planning to put yourself in a good position to buy your first home. Prospective first-time home buyers can often feel like they’re waiting for a sign to indicate they’re ready to start making offers, when really, it’s a combination of factors. Here are seven signs that you’re ready to buy a home.

7 Signs You’re Ready to Buy a Home

1. You Know Which Homes You Can Afford

To know whether you’re ready to buy, you need to identify your price range. If you’re unhappy with your pre-approval, or need more money for your desired location, there are ways you can increase your buying power. Once you know which homes you can afford, you can work with your agent to find the right home and prepare an offer.

2. You Understand Your Local Market Conditions

The dynamics of the market in which you’re buying will play a role in determining whether you’re ready to buy. The local market conditions will dictate what kinds of offers you can expect to compete against, what tactics other buyers may employ, and whether the buyer or seller will have the leverage during negotiations. Therefore, it’s important to understand the difference between a buyer’s market and a seller’s market so you and your agent can strategize accordingly.

3. You’re Comfortable with the Responsibilities of Being a Homeowner

Having a mortgage instead of paying rent isn’t the only difference between owning a home and renting. You’ll be responsible for maintaining the property, making repairs, and completing remodeling projects. That doesn’t always mean you can’t predict a future need. The best way to prepare for unexpected projects on any home is to get a home inspection before you buy so that you know every inch of the property and can start to save for larger expenses that might come down the road.

4. You Have Funds Available for Home Buying Costs

The costs of buying a home are more than just your down payment and monthly mortgage. Before you move into your new home, you’ll have to pay closing costs, moving expenses, and appraisal and inspection fees, to name a few. Property taxes can sometimes be part of the mortgage and depending on the time of year may need to be paid before you move in. Once you’re settled, homeowners insurance will enter the fold. If you can afford these costs, it’s a sign that you are ready to buy.

5. You’re Making Progress on Your Debt

Having zero debt is not a realistic expectation for every first-time home buyer. But, if you have a plan in place for paying off your outstanding debt and can show evidence of the progress you’re making, it will strengthen your buying credibility. Lenders will factor this into their assessment of your financial health during the pre-approval process.

6. You Have a Strategy for the Down Payment

It is true that lenders view a twenty percent down payment as favorable and won’t require you to purchase private mortgage insurance (PMI), but it’s not game over if you can’t make a lump sum payment of that size. With a lower-than-twenty percent down payment, you may incur higher interest and fees over the life of the loan, which could put a greater strain on your finances long-term than waiting until you can pay more principal down. Whichever route you choose, make sure you have a solid plan in place to repay your loan.

7. Your Life Aligns with Buying a Home

Buying a home means you’ll be putting down roots, so it’s important that you and your household are ready to establish yourselves in one area before you buy. There’s financial logic behind this line of thinking, as well; in general, the longer you stay in one home, the more equity you’ll build. Career and income stability also play a role in determining whether you’re ready to buy. Landing a job with long-term prospects may be just the thing you need to green-light your decision to buy your first home.