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

Denver Real Estate Report – Year End 2012

 

Denver Real Estate Report 2012

Here is my Denver Real Estate Report for Year End 2012.  It is a comprehensive data report showing real estate data for the Denver Metro area in many cases all the way back to 2005.  That comes in handy when you want to see trends and real estate market movements.

The key takeaway from this report is this:  the Denver real estate market has, by and large, rebounded and moved upward in valuesAverage sold prices have increased in 2012 over 9% from 2011 and days on market have decreased just under 29% in 2012 versus 2011! Contrary to many of the markets nationally which may still be hurting or just stagnant, Denver has began to come back strong!  Real estate is local and I’ve always said that.  I still hear plenty of folks, especially those that may be relocating here to Denver that since it is a buyers market they may just rent and wait until the prices bottom out.  I don’t know.  I think that ship may have already sailed.  Please take a look at the Denver real estate report.  Rental vacancy here in Denver is so low in most areas that rents are at a premium and landlords are having no trouble at all getting what they ask for.  So with that in mind I think many of the would be renters are finding it to be more expensive to rent than to own.  The other big contributing factor to this is the low cost of financing.  Rates are cheap!  If you can qualify to buy, I think you need to be running those numbers, taking a look at the market trends and realizing it is time to buy.

The current buzzword here is “inventory”.  Better put, a lack of inventory.  Denver had nearly 58% fewer homes on the market in 2012 than in 2010 and just under 30% fewer homes from 2011 which itself was a slow year!  In nearly every zip code statistics indicate a strong seller’s market.  Great for sellers and for buyers, it just means less to choose from and if you’re serious you better be completely prepared and ready to contract quick once you find the right home.  Also, don’t expect sellers to feel the need to discount too much.  Most are getting pretty close to ask price and in many cases over that with multiple offers.

If you are in the market to buy or sell real estate in the Denver Metro area, please get in touch.  I want to help.  You need a broker with knowledge and experience to help you navigate an ever changing market.  Contact me and let’s talk a bit and see if we are a good match to work together.

Douglas County CO Real Estate Market Update July 2012

Real estate market data isn’t always the most interesting to read about.  But, if you are in the market for a home or investment in the Denver area or thinking or selling then this data is probably pretty interesting.  And it should be!

Douglas County CO real estate statistics July 2012Let’s take a look at the statistics for some areas that I have included here in my Douglas County real estate market report.  The chart to the right is the statistics includes many of the south metro suburbs such as Highlands Ranch, Castle Rock, Parker and Lone Tree to name some. (click the image to view larger)

The active home inventory is down over 30% from the same time last year. So if you’ve heard me talk about low inventory causing a brisk seller’s market, this is why.  Now take a look at the real estate under contract and sold homes year to date! To support the fact that it has moved to a seller’s market, homes under contract are up almost 34% and those already sold up almost 25% ! All this while inventory is down significantly. Of course, it is partly because inventory is down.  Average sold prices are up over 1%, so the positive trend is a great sign for our local economy.  Housing is a key factor affecting all parts of the economy.  When homes are selling for more and taking less time the health of the real estate market is dramatically improved.

It is important to note that mortgage interest rates remain incredibly low.  So if you are considering buying a home or investment, now is still a great time.  You can borrow money cheaper than ever, which helps lower your monthly cost as well as making it easier to qualify.  Just make sure you prepare yourself to purchase since homes will sell pretty quick right now.

If you have had thoughts of selling and these figures look pretty enticing to you, then now really is a great time to make that happen as well.  Again, remember to prepare yourself to sell to make a big difference in the outcome.

I track the statistics from the Denver MLS and provide my readers the latest monthly charts as reported for many of the Denver areas. Here is an example of the latest chart for Highlands Ranch and you can always find the current Highlands Ranch real estate statistics on my site. .  I can provide these for most of the Denver metro area cities as well as help sort out the details rather than just provide a chart. (click the image to view larger)

If you would like help interpreting the home values in your area, please get in touch.  I could be a great match for you and your real estate needs.  I would love to help.

Steve Scheer
720-849-6101
sold@SteveScheer.com

Real Estate Statistics For Your City

My, my how the Denver real estate market is changing.  It seems like yesterday that we were all talking about the recession and the housing meltdown.  Huge inventories of unsold homes and such a buyer’s market.  Or do you still think that?

Well, here in the Denver area, not so much.  In fact, inventory is way down in most areas and also in most, it is a seller’s market.  Values seem to be stabilizing for the time being and homes are selling pretty quick.  There is a confidence in the market by most and the statistics certainly reflect that as well.

So to keep you informed and in tune with the market, I have begun to post the monthly real estate updates for each of the cities on this blog.  Just visit the page for that city and scroll to the bottom to get the update.  Of course, these aren’t all the cities in the Denver metro area, and if you’re interested in any other, just let me know.  We more than likely have the details for your city.

Like I have said many times, real estate is always local.  So this real estate data is a look at a city, the values and conditions may be much different in your neighborhood.  If you need help determining your own home value or values in a neighborhood you may be interested in purchasing, please let me know and I’m happy to help.

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Real Estate Market Data 1st Quarter For Douglas County CO

Real Estate Statistics for Douglas County in Denver’s South Suburbs

The Denver area real estate market is really heating up! Lately, I have had listings go under contract within days on market, not weeks or even months. Home sellers in many neighborhoods are finding there are plenty of buyers out there and more showings on the homes than they may have expected.  It is time to take a look at the Douglas County real estate market report to see what is really going on.

All this is great news for the Denver housing market. In the video below, I explain the statistics for Douglas County for the first quarter of 2012. Wow, things are looking good all across the board and getting better. So watch below and let me know if I can help you in this red hot real estate market.

Above information in the video is based on Information from Metrolist, Inc. Note: This representation is based in whole or in part on data supplied by Metrolist, Inc. Metrolist,Inc. does not guarantee nor is in any way responsible for its accuracy. Data maintained by Metrolist, Inc. may not reflect all real estate activity in the market.

Denver Real Estate Market Report By Zip Code | South Suburbs | July 2011

 Denver Zip Code Real Estate Report July 2011Well we’re into the second half of the year already so let’s look at July’s figures.  I see a lot of RED!  Understandably, the inventory levels are less than in previous years but let’s not get caught up in all of that.  Let’s look at what we have right now.  To me it looks pretty good.

Sellers in most South Denver real estate zip codes are looking at fairly low months of inventory.  Sellers in areas such as Parker, Highlands Ranch, Lone Tree and Englewood all enjoy a seller’s real estate market.  Like I always say however, an overpriced home in less than good condition will struggle to sell in any market.  So sellers need to stay focused on price and condition.

Buyers never fear!  There is still enough inventory out there for you to find the perfect home.  Take advantage now of these all time low rates which improve your buying power tremendously based on mortgage qualification and monthly payments.  If you find the home you like, act on it.  It is a great time to buy, really.

If you are looking to buy your next home or maybe sell your current home, please contact me and let’s see how I can help.  I’m active in the market and stay current on real estate values and trends.

720-849-6101

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Denver Real Estate Market Report By Zip Code | South Suburbs | June 2011

June 2011 real estate data by zip code south Denver Metro

We are a bit more than halfway through the year already so let’s take a look at June’s statistics for the midyear.  Most zip codes for the south metro Denver area remain  pretty steady as far as sales and inventory levels.  In fact, most are pretty good  for the market with most zip codes staying “red”, which indicates a fairly hot market for sellers.

Parker and Castle Rock both have large numbers of active inventory and Parker continues to show great activity in it’s 80134 zip code!  Highlands Ranch reflects a seller’s market as well as many of the zip codes just north, including Englewood, Centennial and Greenwood Village along with others.

If you are a seller in one of these South Metro Denver zip codes, remain competitive on price, condition and depending on your price range, you may need to remain patient.  Even though it is a stable market according to statistics, the hottest prices remain between $200-$500k.

Buyers, stay active and engaged in the market. If you are ready to buy, then don’t believe the inventory will remain on the market forever and there is an overabundance of choices.  As you can see, in most areas inventory is to the seller’s advantage and the best homes continue to sell quick.

The Denver Real Estate market is pretty good. If you would like a more detailed look at your own home’s value or if you are looking to buy, please contact me I would love to help.

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