Real Estate 2017: What to Expect

Home Equity_Social Media_Layout 1

One of the most common questions we get at this time of year is, “What’s going on in the market?” It’s not just potential buyers and sellers who are curious; homeowners always want reassurance their home’s value is going up. The good news is the American real estate market is strong and healthy: home values are up, prices and sales are strong, and millennial first-time buyers are eager to become homeowners.

We often use national real estate numbers to give us a clearer view of our local market. However, real estate is local, and while statistics and predictions help us understand the overall real estate market, our local market may be different. If you’re thinking of buying or selling, or just want to know how much your home is worth, give us a call!

What to Expect in the Real Estate Market in 2017

The American housing market is stronger than ever! Home values, prices and sales had their strongest numbers in 2016, a sure sign the market is healthy and strong. According to the Home Price Index from the Federal Housing Finance Agency (FHFA), property values have increased in 58 of the last 62 months and have increased more than 35 percent nationally. Homeowners continue to build equity in their largest investment—their homes.

First-time buyers are back.

Housing forecasts from the National Association of REALTORS (NAR), the Mortgage Bankers’ Association, Freddie Mac and Fannie Mae all predict existing-home sales will surpass 6 million in 2017, higher than anticipated sales for 2016. Who’s driving the surge? According to NAR, millennials who have put off buying a home are ready to buy. While they may have avoided buying a home due to student debt and limited employment, many are entering their 30s, a time when their attention turns to marriage, family and setting roots with homeownership. They’re predicted to be the driving force behind home and condominium sales from now until into 2020. (Source: MarketWatch)

What does this mean to you? If you’re a millennial who’s been on the fence about buying, now is the time to act. Give us a call to answer your questions about the market and the buying process.

Renters are embracing homeownership

Additionally, many renters who’ve resisted buying are starting home searches due to the economic weight of rising rents. This year’s home buyers seek to take advantage of comparatively low interest rates and, in most cases, static payments each month—an advantage of home ownership. Rental costs will only continue to rise; if you’re thinking of buying, now is an ideal time to do so.

What does this mean to you? Every month you pay rent, you lose the opportunity to build equity in a home of your own. Break free from the limits of renting and invest in your financial future. Come in the office and we’ll discuss your options.

Home prices are on the rise.

According to NAR, the median existing-home price not only increased 6.0 percent year-over-year in October, it’s also the 56th consecutive month of year-over-year increases. Prices are approaching the pre-recession peak.

What does this mean to you? Home prices, and subsequently home values, are increasing. If you’ve been waiting to list your home until you know you can sell it for what you think it’s worth, now is a great time to do so. We’ll be happy to give you a comparative market assessment of your home and help you get your home in list-ready shape.

If you’re in the market to buy, be prepared to act.

Homes were on the market for the shortest amount of time recorded since 2009: 52 days. The increase of qualified buyers in the market along with the increasing efficiency of the real estate process means homes are selling faster than ever, and in many cases buyers are engaging in bidding wars and paying over the list price to get the home of their dreams.

What does this mean to you? The home you have your eye on one day may be gone the next. In competitive markets, be prepared to come to the table with a competitive bid.

Looking for a new home?

New-home construction will increase to an average of 1.5 million per year to 2024, according to a report from NAR. However, experts anticipate housing starts will only increase to 1.22 million in 2017, which is less than the 1.5 million new homes required to keep up with growing demand. This inventory shortage of new entry-level homes—typically purchased by first-time buyers—may drive up prices in some areas. Home builders have been focusing on multi-family construction for the last few years, but this type of construction has begun to level off providing hope that builders will once again focus on single-family home construction. However, stricter proposed immigration policies may impact new home construction and tighten inventory.

What does this mean to you? First-time and repeat home buyers agree—there are plenty of advantages of buying a new home. Whether you want a home customized to your family’s needs or you don’t want to bother with age-related maintenance, a new home has much to offer. Give us a call to discuss your options.

Affordability pressures are increasing in many markets

Housing affordability in many of the nation’s largest cities has declined over the past few years, a trend that is expected to continue in 2017. However, there is hope. NAR created the Affordability Index to measure the affordability of homes across the United States. The Affordability Index assesses whether the typical family earning the median family income can qualify for a mortgage on a typical home based on the prevailing mortgage interest rate on loans closed on existing homes from the Federal Housing Finance Board.

The NAR Affordability Index is 170.2 (composite) and 169.8 (fixed), meaning a family earning the median family income has 170.2 percent of the income necessary to buy a median-priced, single-family home. Nationally, the qualifying income is $41,616, but it varies by region. In the Northeast, the qualifying income is $45,024. In the Midwest, it’s $32,640. In the South, it’s $36,960. In the West, it’s $61,824.

What does this mean to you? If you’ve had your eye on a new home, but weren’t sure if you could afford it, you may be pleasantly surprised. We may have homes in our area that meet your needs and budget. Give us a call today to discuss your home search.

3 Things to Do Now if You Plan to Buy This Year

  1. Get pre-approved for a mortgage. If you’re like most buyers who plan to finance part of the home purchase, getting pre-approved for a mortgage will allow you to put in an offer on a home and may give you an advantage over other buyers. The added bonus: you can see how much home you can afford and budget accordingly.
  2. Start looking. While most buyers start their searches online, be sure to look at homes in neighborhoods you’d like to live in as well. Keep a notebook to write down what you like and dislike about each home you view in person or online. This will help you narrow down where to look and what to look for in your next home.
  3. Come to our office. The buying process can be tricky. We’d love to guide you through it. We can help you find a home that fits your needs and budget. Give us a call to make an appointment today!

3 Things to Do Now if You Plan to Sell This Year

  1. Make repairs. Most buyers want a home they can move into right away, without having to make extensive repairs. While the repairs may or may not add value, making them will give your home a competitive advantage over other similar homes on the market.
  2. Get a Comparative Market Analysis (CMA). A CMA not only gives you the current market value of your home, it’ll also show how your home compares to others in the area. This will help us price your home to sell in our market. Call us for your free CMA!
  3. Start packing. Help your buyers see themselves in your home by packing up items you don’t use regularly and storing them in an attic or a storage space. This will make your home easier to stage as well as make it easier to move later on.

Are you thinking of buying or selling?

Whether you’d like to buy or sell a home this year, want to know how much your home is worth, or have general questions about our local market, give us a call! We’d love to discuss the market with you.

Start Checking Out Local Homes Now!

National Real Estate Market Primed for Expansion in 2016

January 2016 Housing reportStrengthening Economy 

Despite existing-home sales dropping last November, the National Real Estate Market is primed for expansion in 2016. Here’s why. Better weather in many parts of the country resulted in an increase in single-family and multifamily home construction. Also, the population of millennial homebuyers is expected to grow in 2016. This means increased demand to help the housing market see positive gains. With unemployment steadily decreasing, orders for new durable goods increasing 3 percent, inflation staying level, and income beginning to grow, the Fed decided to raise interest rates. The rate increase signals that our economy is getting stronger. So, don’t let the drop in existing-home sales in November fool you, with a stronger economy home sellers can expect eager home buyers in 2016.

Millennial Home Buyers

The low demand in November meant that first-time home buyers had only a 30 percent share in demand, which is slightly down from 31 percent in October and last year. However, in 2016 home sellers saw an increase of first-time home buyers enter the housing market  because of the growing segment of millennials between 25 and 34 years of age. The Census Bureau projects that the population of millennials aged 25 to 34 will increase by an average of nearly 500,000 per year in the second part of the decade. Also, NAR’s inaugural quarterly Housing Opportunities and Market Experience survey reported that a large majority of millennials between 25 and 34 years of age who rent want to own a home in the future.

Interest Rates

The Federal Reserve raised short-term interests this month. Freddie Mac reported that the average commitment rate for a 30-year, conventional, fixed rate mortgage stayed below 4 percent, but rose from 3.80 percent to 3.94 percent in November. Mortgage rates are expected to rise to 4.50 percent by the end of 2016, but this rate is still historically low; a full percentage point below the rate during the recession of 2008. The low fixed mortgage rate should help spurn demand and encourage first-time home buyers to enter the market.  But while the rate is at its current level, potential home buyers should keep an eye out for rate increases so that they’re not caught by surprise when the spring buying season comes around. Early 2016 would be a good time for home buyers to start looking to purchase a home.

Mortgage Lenders & Home Buyers

Fannie Mae’s fourth quarter 2015 Mortgage Lender Sentiment Survey™ shows that lenders expect to ease mortgage credit standards for GSE-eligible loans and government loans over the next three months. This should reduce the affordability problem for first-time home buyers. As a result, this will help young adult homeownership. Although home prices will be high, all of this is good news for home sellers because they should expect an increase in demand for their home.

In 2016, the first-time home buyer will have mortgage credit options available that were not available during the housing down-turn. First-time home buyers will have low-and no-down-payment mortgage loans available to them. Some loan options available include FHA loans and the conventional 97 percent program offered by Fannie Mae. Qualifying first-time home buyers need only to put 3 percent down on a home.

Homeowners

According to the Mortgage Bankers Association weekly survey, the Refinance Index increased 11 percent compared to the previous week. So it appears homeowners have anticipated the Federal Reserve’s increase in interest rates. If you’re a homeowner with an adjustable-rate mortgage or a variable home equity line of credit, you should expect your rates to rise in 2016. The first part of 2016 will be a good time to refinance. Home equity lines of credit (HELOC) are both fixed and variable. Variable HELOCs are tied to the Federal Reserve prime rate. Whereas fixed HELOCs are not. By refinancing early in 2016, you’ll afford any major life events that may occur such as daughter’s wedding, high college tuition, or home renovation.

Wrap-up

The National Real Estate Market is on its way to expanding. The Federal Reserve raising interest rates indicates optimism in the housing market and the economy as a whole. The 2016 housing market will remain a sellers market that should see an increase in first-time home buyers entering the market because of the strong desire of homeownership by millennials 25 to 34 years of age, and easing credit standards and increases in wages. Homeowners with variable mortgage rates should expect their rates to rise in 2016, but early 2016 will be a good time to refinance so that you’re that you won’t fill the brunt of further interest rate increases.

While every real estate market is local, national stats often give insight into predicting local trends. If you have any questions about our local market to help you make any real estate-related decisions, please don’t hesitate to let me know.

Call or Text: 720-849-6101

New Bakery & Cafe | Kneaders | Highlands Ranch, CO

Kneaders Bakery Highlands Ranch

Kneaders sign getting installed for the new bakery

I love when new restaurants open in Highlands Ranch!  Especially when they sound really good.  One of the newest is Kneaders, opening in Town Center North on October 9, 2015. It’ll be in the lot across from Buffalo Wild Wings and just outside from the Vitamin Cottage.

Kneaders is a chain restaurant/bakery with other Colorado locations including Arvada, Colorado Springs and Parker.  Try one of the other locations if you can’t wait for Highlands Ranch to open. What I look forward to is the bakery.  Fresh made bread and rolls, yum! They also have a good variety of sandwiches, salads and smoothies. With all that fresh baked bread, it should be a popular place around the coming holiday season.  I can’t wait to try it out.

Highlands Ranch just continues to grow into such a wonderful community, complete with a wide variety of homes, incredible schools, acres of outdoors amenities and now more and more convenient commercial options for shopping, dining and more…

Having lived and worked in Highlands Ranch for over 20 years, I’ve watched it all come together and helped many folks make this their home as well.  If I can help you, please call, text or email and I’m happy to provide you personal service with the knowledge and experience that counts.

1514 Meyerwood | “The Ridge” at Weatherstone | Highlands Ranch, CO 80129

Incredible Opportunity in Weatherstone! This fabulous home sits on a huge, quiet lot with plenty of parking, room for outdoor fun and entertainment! Complete with pond and waterfall, finished basement with wet bar and full-size wine cellar, this is a must see! Priced to offer the BEST opportunity to own in this prestigious neighborhood…

What is up with the Colorado Weather?

If you are in Denver now, right now, you are cold. And if you are here looking for a home in Denver and thinking about moving here, you may be having second thoughts. You wouldn’t beclear Colorado weather in winter the only one! But the truth is, this is very unusual and extreme Colorado weather and I am sure you are aware that much of the U.S. is quite cold as well. In fact, I can’t remember another November (and I am a Colorado native) that is has been this cold, this early.
Do we have cold snaps? Yes! If you move here, you will become familiar with the term, Stock Show weather. That would occur in January usually around the same time we welcome the stock show to town. But here we are having stock show weather in November.
Low and behold, it will clear eventually, the sun will come out and we will have plenty of our moderate winter days to come.
So don’t let this cold snap change your mind! Denver is great and you will likely love living here. You just will need a really warm coat and mittens this week!

Homeowner Tax Deductions

Homeowner Tax DeductionsAbout this time every year we are reminded that taxes are coming due.  We recently received most of our W2’s, 1099’s, etc…now it is time to either send it all to the accountant or do it ourselves.  Of course, the CPA’s are typically well versed in deductions and most of the software to do it ourselves is programmed to find deductions.  However, just as a reminder lets take a look at some of the important homeowner tax deductions not to miss.

Mortgage Interest – This is almost a can’t miss for most homeowners.  It may likely be your biggest deduction when it comes to your home.  You may be able to deduct all the interest if you are married and filing jointly if you have a mortgage up to $1 million!

Points – If you purchased a home you can deduct the points, if you paid any, in acquiring the mortgage.  If you refinanced, you can deduct them as well, only not all at once but rather over the life of the loan.

Property Taxes – If you paid property taxes then that amount can be fully deductible.  Most people may have taxes paid out from the mortgage company which collects towards paying each month.  Make sure the taxes were fully paid from that account before deducting.

Moving Costs – If you moved due to a new job then as long as you meet some criteria such as the new job being at least 50 miles further away from the old home than the old job was, then many of the costs in the move may be deducted.

Selling Costs – If you sold your home then you may have deductions.  If you had a taxable gain, then many of the selling costs, including broker fees, may be deducted.

There may be many homeowner tax deductions not mentioned here.  Many of these points can be found at  the IRS website where you can search the publications for further details.  Remember that owning a home has many benefits and some of those are the tax benefits!  If you would like help with your next move, please get in touch and I would be happy to help.  You can begin that search by clicking the button below.

 Search Homes Now

The following article provides general information and is not to be construed as specific tax advice.  You should seek tax advice from a qualified tax professional as this information may not pertain to your specific situation.

Year End Real Estate Data in Highlands Ranch 2013

The Numbers – How Highlands Ranch Homes Sales Fared in 2013

Happy New Year!

Now that we have a couple weeks of 2014 under our belt let’s take a look at how the Denver area real estate market performed last year.  There is a lot of positive speculation out there regarding the economy and especially the real estate market here in Highlands Ranch, it’s always a good idea to take a look back at the year end real estate data for 2013 to get a sense of the activity and where it may lead us this year.

By most accounts, last year was a tremendous success when it comes to the Highlands Ranch housing market!  Days on market averaged only around a month while the average months of inventory remained just about 2 months.  If we compare the activity in Highlands Ranch for 2013, year over year to 2012 we see these very positive results:  Overall number of sales in 2013 were up by 314 homes. (Keep reading below my year end graphic.)

Highlands Ranch Market Stats 2013

Overall days on market to sell those homes was down by an average of 25 days. Almost a month! And the overall average sales price INCREASE was $22,318,000.  So more homes sold, for more money and took a lot less time to sell.  Is there any downside to that? Actually, if there is a downside to the year end real estate data in Highlands Ranch it is the inventory levels.  Low, low, low housing inventory throughout much of the Denver metro area but this is especially true in Highlands Ranch.  This creates a great market for sellers who want a faster sale and near asking price on their home – if of course it is priced right in the first place.  But for home buyers, this increases the likelihood of needing to overbid on homes, feeling rushed a bit in making a decision and of course, the disappointment of losing out on the home, or homes, of your dream.  It can be rough.  Most of the sellers become buyers and feel both ends of the home low inventory issue.

However, the year end real estate data for Highlands Ranch for 2013 is still a very positive result. It is always good to have home prices increasing and demand high.  This is a great situation to be in.  With interest rates remaining low for the time being, I would suspect demand for Highlands Ranch homes to stay red hot and why not, Highlands Ranch is a wonderful place to live and an excellent place to own a home.

I live and work in Highlands Ranch and have for nearly 20 years.  If you are considering a move in Highlands Ranch, you’ll want an agent with experience to help navigate the details in a fast moving market with competing offers.  If I can help you with your next move, please get in touch and let’s start the conversation.

Search Homes Now

Home Maintenance Tips for Winter

Home in WinterWe are in the new year now  and definitely in winter because it’s cold outside!  For many parts of the country, very cold.  So with all that cold, we need to remember to take care of our homes to avoid damage and loss of heat while we try to stay warm. Here is a quick list of some home maintenance tips for winter that may help you or maybe just remind you to check on.  I’ve written about winter home maintenance tips in the past (linked to an older post on the topic) but we’ve had a few bouts of extreme temperatures that I thought I would update it.

Roof and gutters – The first of the home maintenance tips for winter begins outside and is very important.  When there is snow on the roof, that may be the best time to take a look around and make sure there is no ice dams forming in areas there with some overhang and shade.  Once the ice builds up and stays, it has the potential to cause some real damage to the roof and gutters.  If you notice areas like this on your roof, try to keep them clear in the future if possible to allow melting and draining.  There are several reasons why ice dams form and  many ways to handle them.  In some cases, you may need a pro to help.   Also, walk around and take a look at the gutters.  Are there areas that don’t flow, or maybe leak or overflow causing a frozen surface to slip on below?  When the weather permits, have them evaluated and repaired.

Sprinkler systems and hoses – The second of the home maintenance tips for winter is pretty obvious but can get missed.  This is something that you probably took care of in the fall, but in case you didn’t, make sure you do now. Drain out the sprinkler system of all the water and if you can, cover and wrap the exterior pipes to help prevent freezing.  I see a lot of hoses still attached to the spigot, or hose bib, all winter long.  This can definitely lead to freezing and cracking of those pipes.  Just disconnect the hose and with most of the spigots nowadays that is all you really need to do.  You don’t need any problems or costly repairs for a simple fix!

 Shovel – Gas/Oil mix – Ice Melt – Another of the home maintenance tips for winter that seem obvious but often forgotten is simply having the equipment on hand to tackle the snow and ice.  Many first time homeowners may not even be thinking of these things because they just haven’t needed to before.  First, have a snow shovel.  I would recommend a strong plastic one without metal.  This way, you can handle the walks but you won’t gauge up your deck if you’re out shoveling it!  If you have a snowblower, make sure you have the oil mix for the gas to run the machine.  Also, in case you do have some leaky gutters, you’ll want some ice melt to keep from slipping outside the door.

Caulking/Seals – This almost goes without saying.  Make sure to caulk around windows and door frames when the weather permits so you don’t lose valuable heat.  Of course, this helps in the summer too.  Drafts and air leaks are a major factor in energy consumption.

Furnace- Inside this winter feels so toasty and warm…ah but don’t forget the work horse that provides all that heat. Make sure to change the filters monthly and it would be a good idea to have a furnace service performed by a professional if you haven’t for awhile.  With the home all closed up it is important to know there are no gas leaks or carbon monoxide leaks.  

Fireplace – If you have a fireplace in your home, it can be a great source of heat and of course, wonderful ambiance in the home.  But the fireplace can be dangerous if it isn’t working properly.  If you have a gas fireplace, have it serviced every few years to make sure it is burning right, not gas leaks and safe.  If you have a wood burning fireplace, make sure the flue or chimney are clear and working fine.  Again, a professional can take care of this to make sure al is well for you this winter.

Garage Fridge – Ok, this is one of those bonus home maintenance tips for winter that I’m going to give you.  If you have a fridge out in the garage, like I do, and it isn’t specifically made for outdoors, like mine, then when it gets really, really cold out there you may want to check it.  Often the temperature in the garage can get much colder than the fridge is built for and the food inside can start to warm up and melt.  I know that I have had my garage fridge do this a few times when it gets that cold.  Of course, a good solution for those frozen foods is to just take them out and have them stay frozen outside!   😀

I hope some of these simple tips can help you stay mindful of the little things that can help prevent bigger problems for you at home this winter.  As always, if you need help with your next move please get in touch.

Search Homes Now

 

Buying a Home During The Holidays

There are many things that we can agree can be stressful.  For many people, the holidays are a time of year that can be very busy and exciting at the same time. Same is true for buying a home.  Weather it is a first home, move up or investment.  Buying a home is a huge purchase and can be one of the most stressful events in one’s life.  So, what about buying a home during the holidays?  Can it get any more difficult than that?

Christmas treeMoving and house hunting are never easy. However, there are plenty of good reasons for buying a home during the holidays.  For starters, taxes.  Many sellers may need to sell by the end of the year for a tax benefit and same is true for buyers.  If you find that you can benefit with your tax situation by buying before the end of the year, then buying a home during the holidays is just going to be part of your celebration!

Competition is another good reason for buying a home during the holidays.  Or, maybe a lack of competition is a better way to look at it.  We all know that the Spring market is the busiest season for most areas when it comes to real estate.  Demand seems greater, and the number of buyers out there competing for the few listings make it tougher to negotiate  with sellers or even get an accepted offer! So buying a home during the holidays can be far less competitive and possibly a better situation to negotiate with sellers.

Mortgages.  If you are in the market to buy a home, you need to definitely meet with a mortgage advisor and get pre-approved before heading out to look.  But once you do, buying a home during the holidays can likely speed up the approval process in getting your loan done.  With fewer buyers in the market at this time of year, the mortgage process is less bogged down, and your loan can move much faster towards final approval!

Of course, fewer homes typically tend to be on the market during the holiday season. With that in mind, you may not find the perfect home but it shouldn’t stop you from looking if you are in the market.  Unless you must buy before the end of the year then you can just keep looking.  Many sellers understand the advantage of listing their home at this time of year, and so they put their home on the market now, and it may be the right home for you.  Looking for your next home and possibly buying a home during the holiday season may be the best time of year for you.

We all get busy this time of year, and many folks take time off during the holidays.  I am available if you would like to take advantage of the market.  Besides, it’s always fun to see the homes decorated and the faces of my customers when they find the right home to add to their holiday cheer!  Let me know if I can help you this year.

 

  Search Homes Now

 

 

Moving in the Winter? Denver Real Estate Tips

Denver Winter Living

We’ve had our first real snow of the season now this week and while I thought it would warm up today, that hasn’t been the case.  If you are thinking ofHighlands Ranch Redstone Parkputting your home on the market, here are some tips from past posts that will help you sell you Denver real estate and protect your home in the winter months.

Showing Your Home in Bad Weather – Weather you live in Highlands Ranch, Denver, Lone Tree – wherever, this week was the first in the Denver area where you has to make considerations on showing your home in bad weather.

Preparing Your Denver Home For Winter – It isn’t too late for some winter prep for your home and yard

Freezing Pipes Prevention & What to do When it Happens – This is not a fun one. This weeks cold shouldn’t be bad enough to cause this, but you want to read this before it gets any colder.

Denver Relocation Information – Winter Weather – Many of my Denver relocation clients ask me about typical Denver weather in the winter.

What other tips do you have for selling Denver real estate in the winter?

 Search Homes Now

Related Posts Plugin for WordPress, Blogger...