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REAL ESTATE INSIDER Vol. 46, No. 6 | July 2022

POP QUIZ: HOW DO YOU KNOW IF IT'S A GOOD TIME TO BUY?

If you’re experiencing trepidation about whether to buy a home, that’s common in today’s real estate world.

After all, it’s still a solid seller’s market along the Front Range. The combination of high home prices and rising interest rates (although interest rates are still historically low) might seem like reasons to sit on the sidelines. In the latest Fannie Mae Home Purchase Sentiment Index, 75 percent of respondents said they thought it was a bad time to buy.

But before you decide to roll with the wisdom of the crowd, it’s best to examine your individual circumstances. You may come to realize that you’re better off as a buyer.

Here are some questions to help with your decision:

1. Is your credit good? If it’s good (a credit score of 740 or above), you’re likely eligible for the best available mortgage rates.

2. Do you have sufficient savings for a down payment? The more you have set aside, the more you can put toward a down payment, and thus lower your monthly payment. In addition, appreciating real estate values are making mortgage insurance more affordable for buyers with down payments below 20 percent. Mortgage insurance is tax deductible in most cases.

3. Do you plan to live in your home at least five years? Remember, buying a home comes with transaction costs. If you’re intent on staying put for five years or more, you’re more likely to gain enough appreciation and principal reduction to cover these fees.

If your answers to these three questions are affirmative, give me a call and we can discuss your options. But in case you’re still not sure, here’s a bonus question:

If you’re a renter, how much is your rental payment going up this year?

Once you lock in on a mortgage, you’ve got a predictable payment for your housing. That’s not the case with a lease, which can change each time you renew, or when the landlord sees fit.

As a homeowner, you start building equity with your first mortgage payment. As a renter, you’re paying someone else’s mortgage.

Call me to discuss if it makes sense for you to purchase a home instead of renting one.

REPORT: MORE U.S. HOMEOWNERS GROWING ‘EQUITY-RICH’

For many Americans fortunate enough to call themselves homeowners, those investments are continuing to pay off handsomely.

Based on a recent report from real estate analytics firm ATTOM, 44.9 percent of Americans with mortgages were considered “equity-rich” as of the first quarter of this year. That means the amount they owe on their home loans is 50 percent or less of the market value of those homes. In other words, they have a loan-to-value ratio of 50 percent or lower.

At the same time last year, just 31.9 percent of home loan borrowers could claim at least 50 percent equity in their properties. The sharp increase in equity-rich homeowners is due in large part to the general rise in home values over the past year.

Another consequence of the home equity trend is the relative decline in mortgage homes that are considered to be seriously underwater – meaning the total loan balances owed by the homeowner are at least 25 percent greater than the property value. In the first quarter, 3.2 percent of mortgaged homes were seriously underwater, down from 4.7 percent at the same time in 2021.

Call me if you’d like a real estate review to determine your equity position.

DRIVING AN EV (ELECTRIC VEHICLE) NOT ALWAYS EZ FOR RENTERS

Electric vehicles may well be the way of the future for American transportation. After all, sales of electric vehicles (EVs) more than doubled in the United States last year.

But for the roughly one-third of Americans who live in multifamily housing – largely renters – keeping their EV charged and ready to roll can generate frustration.

Without access to a private garage or driveway, it’s a challenge – if not impossible – to charge a car at home. Consequently, EV owners are often forced to look for public charging outlets at work, at retail centers, or at the homes of friends or family members who will let you plug in at their place.

While newer multifamily buildings are more likely to provide car charging stations, that’s still a small slice of the rental housing in the United States. One option for renters is to persuade your landlord to install charging stations at your apartment complex. Of course, the most reliable solution is the one that most Americans have always preferred: become your own landlord (and get the garage that comes with it).

MAKING SUMMER PLANS? PLAN AROUND THE POUDRE RIVER

School’s out, sure. But learning can be a year-round adventure in Northern Colorado.

There is an abundance of family-friendly opportunities for exploring the region that we call home – and nothing reflects our rich heritage and history like the activities and landmarks that make up the Cache la Poudre River valley.

First, the Poudre River is a principal reason that Fort Collins and Greeley – as well as many smaller communities in our area – were established. Of course, it’s a source of water and a boatload of recreation opportunities, like hiking, camping, rafting, tubing and more. But take time to look closer.

The website PoudreHeritage.org lists a wealth of ideas on how to explore, learn about, or get involved with the places and opportunities that are connected to the river, some of which may surprise you. From where the river exits the Poudre Canyon to where it merges with the South Platte River east of Greeley, there are dozens of historic buildings, museums, parks, water projects, and trails that tell the story of the Poudre and its impact on this region.

Options include the original Fort Collins Water Works, built in 1882-1883 to deliver water to the growing town for fighting fires (that plagued the town’s early years), and to provide clean water for residents, thus reducing waterborne illnesses. Located at 2005 N. Overland Trail in Fort Collins, the Water Works site includes a portion of both the Cherokee Trail and Overland Stage routes.

A few miles downstream you can find the site of a World War II POW camp near Windsor, where some 2,000 German soldiers were held between 1944 and 1946. Greeley features the Centennial Village Museum, 1475 A St., a living history experience that includes over 35 historical buildings. The museum allows visitors to meander and explore the Cheyenne-Arapaho tipi, and get a feel for the experiences of Northern Colorado’s pioneers. Visit the Swedish-American Stuga, the German-Russian Shanty, and the Spanish Colony House, among other important historical homes located in the museum.

By all means, take time to splash in the water on a hot summer day. (The Poudre River Whitewater Park in Fort Collins is perfect for cooling off). But set some of your summer aside to see how the river has shaped the place we live today.

Click HERE for additional information which lists dozens of places to explore with friends and family this summer.

THE GROUP DIFFERENCE

CLOSE AS FAST AS CASH! There are many benefits that come with working with The Group. Our in-house mortgage company, Group Mortgage, LLC is one of them. We’re excited to announce we now have a fully approved loan option, CashEdge® to help you close like a cash buyer.

COMPETE WITH CASH OFFERS. Get the edge over cash offers and multiple bids on a home.

A LOAN THAT’S FULLY APPROVED. Your loan is fully underwritten and sure to close with the CashEdge® interim program.

GET A GUARANTEED CLOSING IN AS LITTLE AS 10 DAYS. Write a contract without an appraisal or loan contingency for a faster process. Plus, CashEdge® acts like a safety net, so you can make an offer and close in as little as 10 days.

To get set up with one of our trusted in-house lenders, contact me today.

Group Mortgage, LLC NMLS 1170166 Contact Your Group Mortgage Loan Officer For Program Guidelines And Restrictions

REAL ESTATE BY NUMBERS

  • $295,000. The average mortgage debt amount for Colorado residents who carry a mortgage, fifth highest among all states, according to a report from credit reporting agency Experian.
  • $625 million. Sale price for the Flatiron Park business campus in Boulder. The cost for the 22-building campus, covering about 1 million square feet, is estimated to be the biggest price ever paid for a single real estate asset in state history.
  • $6.1 million. Median list price for homes sold during March in Telluride, making it the third-most expensive zip code in the country for that month, according to Realtor.com. Atherton, Calif., near San Francisco, was No. 1 at $15 million.
  • 9. Where Colorado ranks nationally among states with the most competitive real estate markets, according to a study by Insurify, an online insurance services firm. Washington is No. 1.
  • 99,351. Square footage for the former JC Penney building located at 135 Bockman Drive in south Fort Collins. Regional retail chain Murdoch’s Ranch & Home Supply plans to move into the space later this year.
  • 1,500. Number of new homes proposed for the new Revere development in Johnstown, located near I-25 and High Plains Boulevard.
  • 30,674. Number of foreclosure filings started during April across the U.S., down 8 percent from March, according to a report from ATTOM Data.
  • 66.2 percent. Home ownership rate in Colorado, which is ahead of the national rate of 64.4 percent, according to the latest American Community Survey from the U.S. Census Bureau.
  • $23.5 million. Sale price for the former Bonnell Community senior living complex, located at 704 22nd Street on the south end of downtown Greeley. The new owners plan to turn the property into a 295-unit housing complex with 16 buildings.
  • 74,000. Square footage for the new Buc-ee’s convenience store in Johnstown, located near the southwest corner of I-25 and Colorado Highway 60. Construction is scheduled to start in June.
  • 136. Number of homes proposed by the nonprofit Polestar Village for a site in northwest Fort Collins, near the intersection of South Overland Trail and West Elizabeth Street. Plans call for a combination of home types.
  • $50 million. Price paid by California-based investors for the 126-unit Alpine Prairie Village apartment complex, located in north Longmont at 2205 Alpine Street. The complex was built last year.
  • $8.4 million. Sale price for a 39,316-square-foot office building in Niwot, between Boulder and Longmont. The building is 25 years old.
  • 7.1 percent. Predicted average home price increase across the United States this year, down from about 18 percent, according to Veros, a real estate analytics firm.
  • $328 billion. Total property taxes assessed on American homeowners in 2021, up 1.6 percent from 2020, according to ATTOM, a real estate data analytics firm.
  • $16.44 million. Sale price for the Summit Entertainment facility in Windsor, which was recently acquired by a Texas-based investor. Summit also sold its facilities in Thornton and Colorado Springs to the same buyer.

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