Here’s your real estate update for August from the Ferguson Team.
These stats are for the Greeley/Evans area, also with information from across Colorado.
- Average sales price is up 13% over this time last year, and 24% over this time two years ago
- In fact, home prices across Colorado are hitting all time highs. Read more in this 9 News article.
- Prices in Colorado are expected to continue to grow. Many of the growth engines in place are still strong, so we are not expecting prices to level off. In fact, we appear to still be recovering from the market drop in 2004 and after.
Should You Sell Your Home?
With prices rising, many people are sitting on a considerable amount of money. Even if you just bought your house 2 years ago, your home may have gone up 25%. This is very exciting and has stirred a lot of interest in selling.
But people continue to ask us what happens if they sell? Won’t they just have to buy at high prices and effectively lose that appreciation?
The key advantage you have now as a buyer is interest rates. Home prices are up, but interest rates continue to stay very low. This low interest rate offsets the higher home prices, both in terms of your total mortgage cost and your monthly payments. In fact, many people are able to gain a lot of cash by selling their existing home and move into a nicer home for a lower monthly payment.
If you’re not interested in selling, there are a few other great options for most people:
- Contact your bank to see about dropping your mortgage insurance (if you have it). Most homes in the area have appreciated enough to allow you to remove your monthly mortgage insurance payment.
- Take a loan against your new-found equity to improve your home. If done properly, this can raise the value of your home even more.
- Sit tight and enjoy your improved balance sheet.
Knowing what to do in this sort of market is not easy. Our team has experts ready to look at your situation and provide you custom guidance. Please call at at (970) 573-6441 if you’d like to discuss.
New Team Picture
Our team continues to grow every month! This month, Mark Chambers joined our team (back right). He will head up project and construction management to ensure our clients are covering with repair and remodel work.
If you are thinking of selling and would like to know how your situation fits into today’s market, please give us a call or email back. We’d love to help you.
You can call us at (970) 573-6441 or just hit reply to this email.
Thank you from all of us on the team,
Jim, Mark, Justin, Nikki, BJ, David, Lynda, and John