Tag Archives: colorado real estate market

Colorado Among Hottest 10 Housing Markets

As we approach the presidential inauguration, demand for homes continues to increase throughout the country, in a recent real estate market trend. Although this trend is taking place nationally, multiple sources report that the trends continues to be particularly hot in Colorado.

Recently, Realtor.com reported that two Colorado cities, Denver and Colorado Springs, were among the countries’ hottest real estate markets last month. Denver came in at number six and Colorado Springs in 14th.

In particular, home buying interest became strong throughout the country after the election. Often the winter months are a slower season in real estate, particularly in snowy climates like Colorado, but this year the market shows no signs of slowing down. Nationally and locally, this is due to a few trends:

  • Mortgage rates increasing. After years of remaining low, mortgage rates recently started going up, with plans to continue to rise over 2017. Would-be homeowners hope to buy now before the rates increase further.
  • Snapping up the remaining inventory. Buying may be getting more popular in Colorado and nationwide, but housing stock isn’t increasing. Many people are buying homes now to make sure they get the ideal house for their needs.
  • Better weather. In Colorado, the weather has been warmer and sunnier than usual, particularly last fall and early winter, so more home buyers were willing to brave the elements and go house hunting.

Even with the busy market in Colorado, now is still a great time to buy your next home. According to Denver Business Journal, while inventory may be down, single family home sale prices remain steady. Denver also has the second highest appreciation values of home values in the country, making a home a great investment. But be sure to buy soon, before mortgage rates increase and inventory further shrinks.

For your Home Buying needs in Colorado contact Stephanie Iannone 303-641-7484

Real Estate Trends 2017

Real Estate Trends That Will Shape 2017

Whether your in the market for Colorado real estate or not, if the last quarter of 2016 is any indication of the future than 2017 is sure to be filled with surprises!

One thing that no one expected, from Donald Trump’s win of the 2016 Presidential Election, was a stock market rally and 10-year Treasury bill rate increases. In 2016, low-interest rates and improving wage growth helped boost the U.S. Housing Market.

However, as of November 25th, the 10-year Treasury rate grew to 2.36 percent, up from  1.83 percent the day before the election. This has increased the national average of a 30-year fixed-rate mortgage to 4.02 percent, up from 3.47 percent, for the same period. However, this is not the only national trend that will affect real estate in 2017.

2017 Real Estate Trends

1. Walkable Communities – Simply put, a walkable community is one that is friendly to walk. Notwithstanding, much of this real estate trend is driven by a desire to live in a healthy and environmentally sustainable town or city.  Buyers are seeking neighborhoods in which there is a reduced reliance on automobiles, with easy access to work, shopping, and entertainment.

2. Use of Unmanned Aerial Vehicles – Proficient real estate agents are always looking for new technologies and ways to make properties stand out. Since the advent of the internet, there have been many new ways to present homes for sale, and having them stand out in the crowd. A growing new real estate trend is the use of drones to create aerial video tours of properties.

3. The End of Starter Homes – A growing number of Millennials, those born between the early 1980s and the late 1990s, are anticipated to acquire their first house in 2017. The housing crash caused many to become hesitant to buy. However, the delay into the market has empowered many to prepare by paying down student debt and saving for a down-payment. The resulting real estate trend is that many are choosing something more than just a starter home.

4. Increased Mortgage Rates – As stated, the Trump Presidency has started to push the interest rates up for fixed-rate mortgages. This is because of the link between fixed-rate mortgages and the 10-year Treasury. However, adjustable-rate mortgages are more closely linked to the Federal Reserve rate.  The Fed just raised rates in December and experts predict this real estate trend will continue to slowly raise rates through 2017.

5. Easier Mortgages – According to the Mortgage Credit Availability Index, acquiring a mortgage loan is easier today than it has been for the last 8 years. This is a result of more availability for low down-payment loans and jumbo loans. Banks are starting to loosen up and seem more willing to work with buyers. As the economy continues to grow, this trend should continue.

We expect the strong Colorado housing market to be one of the real estate trends that will continue in 2017.   With rents and home prices both on the rise it will be a challenge for buyers and renters as sellers and Landlords will stay in the driver seat.

As we embark on an exciting new year here at Housing Helpers Colorado we wish all of our friends and clients peace, prosperity, and our sincere thanks.   We look forward to helping you with your real estate needs in 2017!

Colorado Real Estate Agents 

Colorado Fall Real Estate Housing Helpers

The Fall Real Estate Market in Colorado

If you’re in the market for a new home, you should know that fall is an especially good season for buyers in the real estate market. That’s partly because of the simple law of supply and demand. According to MSN Money, need to move into a new home before the school year starts. If you’re trying to sell a house, that means there’s less demand, a fact that puts buyers in the driver’s seat and leaves more room for negotiation.

Another plus for buyers? Home prices tend to fall slightly after the busy summer real estate season. If a seller that listed his home last spring or summer still hasn’t sold it, he may consider reducing the price, or at least negotiating some concessions to keep a potential buyer on the “line”.

If you’re looking for a home in the fall, it’s likely you don’t have school aged children, so there are no hard and fast deadlines pressuring you. Sure, you may prefer to close on a house before the holiday season, but it’s not the same as having to. If you can get a better deal by waiting awhile, chances are you will.

One caveat to this rule concerns vacation homes. If you’ve rented a home for a period during the summer and love the area, you may be at a slight disadvantage. A seller knows when he’s got a home that’s worth more simply by virtue of its location near a prime vacation spot, and because of skiing, Colorado often has more than just summer vacationers — they’ve got the winter ski crowd too.

Still, buying a vacation home in the off-season has the advantage of letting you get to know what the area is like when it’s not crowded with tourists and vacationers, and if it’s a second home, you can always rent it out during prime seasons, so it might just be a win-win situation for both parties!

As with all things real estate, it’s much easier to navigate the Colorado real estate market with a trusted and experienced expert by your side.   Call Housing Helpers real estate group and let us guide the way!  303-545-6000

Real Estate Agents          Boulder Real Estate 

 

 

Three Emerging Real Estate Trends Roll On in 2016

As predicted by many experts and analysts, the first quarter for the real estate industry was a steady and consistent move in a positive direction.

One never knows the impact of a Presidential race and what a new Commander in Chief will have on the following year, but for now pay attention and grab a hold of these three emerging trends that are rolling on in 2016:

1. Outside The Box … Or in it? Once seen as a fad approximately 18 months ago, the idea of non-traditional housing is really gaining some steam. Ever watch the show, “Tiny House, Big Living” on HGTV?

The concept of micro-housing takes center stage on this program where couples or even small families live in an area that accommodates all of their living quarters in one approximately 220-400 square foot living space. Claustrophobics need not apply …

Anyway, this idea is really gaining in popularity with more and more people hesitant to dive into a mortgage that they may not be able to afford if companies like Goldman Sachs and JP Morgan Chase ever decide to throw away everybody’s money again and cause another major recession or worse. 

2. Common Sense Risk Management  High level computations and complex data analysis are great, but they too have limitations.

Sometimes, the human touch provides something when assessing risk that computers can’t, which is good intuition based on previous experience and even strong hunches.

Humans really have a unique skill set when looking at trends and attempting to predict tomorrow’s ups and downs because they this intuition lends itself well to anticipating smart investment choices.

3. Second City Mania  Why is everybody is talking about smaller cities like Louisville Colorado and Austin, TX?   Known as second cities or 18-hour cities, these locations are developing at a rapid pace and the time to get in is now.

More than just Austin, start thinking about Nashville, Portland, and San Antonio among others. The cost of living is lower than in places like New York and Chicago obviously, but there is also plenty to do with an air of hipness that purveys home ownership or rental residents in these areas.

In addition to national real estate trends we are always tracking the Colorado Real Estate Market.  As areas like Boulder and Denver continue to explode with high demand and rising prices its hard to know where to invest in real estate right now.  We like some of the lesser known and less publicized communities in between that don’t get as much press.   To find out which ones we like you’ll need to give us a call!

 

Contact Stephanie Iannone          About Stephanie Iannone, Realtor

 

Denver Leads as a Hottest Home Market 

Making the life-changing transition from renting to owning follows major research and decision-making. One of those choices is your home buying location – and what better city to buy a home than Denver, which was ranked the no. 1 hottest real estate market for 2016?

The top home markets across the nation were rated based on Zillow’s Home Value Index (ZHVI) Forecast, recent income growth and low unemployment rates. Denver took the top spot with 5 percent forecasted home value growth throughout the next year and a low 3.1 percent unemployment rate across the entire metro area.

The hottest submarkets include Delmar Parkway, Highline Villages and Centretech in Aurora with Ruby Hill placing high among neighborhoods in the entire metro.

Before packing your bags and relocating to Denver, future home buyers need to crunch the numbers and learn about their buying power. Developing a housing budget helps determine whether it’s best to rent or buy a home in Denver, assisted by the breakeven horizon – or the number of years it takes for buying to become cheaper than renting the same home.

Cost of buying in Denver

The median home value in Denver is $343,800, an impressive 15.3 percent rise from one year ago. If a homebuyer were to put 20 percent down on a median-priced home in Denver, or $68,760, assuming a 30-year fixed loan at a 3.508 percent interest rate, they would pay $1,647 per month. The total mortgage payment includes principal and interest ($1,236), insurance ($67) and taxes ($377).

Cost of renting in Denver

Assuming you’re looking to rent an apartment in Denver at a median value, you would pay $1,959 per month. In the wider Denver metro, renters pay a median $1,977 per month. Compared to the national median of $1,388 per month, rental rates in Denver are costlier, but keep in mind Denver is a buzzing city and U.S. medians include rates from towns across the entire country.

When does buying outpace renting?

While the example mortgage payment of $1,647 per month is lower than the median city rent rate of $1,959 per month, it is still cheaper to rent first when accounting for the down payment of $68,760. In addition, the cost of buying goes beyond monthly mortgage rates to encompass closing costs and the general fees of homeownership, like maintenance.

In Denver, the breakeven horizon as of the last quarter of 2015 was 1.7 years, a 0.09 rise from the year prior. So, if you’re planning to stay in a home longer than 1.7 years it’s more cost-effective to buy.

Overall, if you have the recommended 20 percent down payment ready, buying a home in Denver now could be a great investment opportunity. However, this is assuming you perform the proper home buyer due diligence.

Keep in mind, you typically don’t need 20 percent upfront to buy a home (depending on your lender pre-qualifications), but a heftier down payment ensures a lower interest rate. If you aren’t quite financially prepared to buy, renting below budget to save before those 1.7 years are up is your best bet in the meantime.

By Jennifer Riner, Zillow

 

Denver Real Estate Agents        Colorado Rentals 

Selling your home in Colorado winter

Tips for Selling Your Colorado Home in Winter

It is no secret that spring and summer are the prime seasons for selling and buying homes in Colorado, but there’s no rule that says you can’t sell your home in the winter and be really pleased with the outcome.  In fact this year the pace of home sales in Colorado hasn’t slowed down much with the start of winter.

While there are typically less buyers looking for homes in the winter months, there are also fewer homes on the Colorado real estate market, so that means that your home will have less competition for the interested buyers that aren’t worried about waiting for the spring or summer.

Plus, while Colorado is known for having snowy winters, we also have plenty of days of sunshine and warm temperatures throughout the fall and winter months.  We don’t see the lull in interest due to snowy conditions that other states experience. Sure it may snow, but the sun melts it quickly and since when do we let a little snow stop us from doing anything, let alone buying a house?

If you do want to put your house on the market for sale right away, here are our tips for selling homes in the winter.

  • Stage your home with some potted evergreen plants on the porch.  A little life is important, even in the winter months.   A splash of evergreen at the entry way of a home give is that warm inviting touch and special curb appeal that makes the home stand out from the others on the block.  It’s easy to find potted evergreens this time of year at your local home improvement stores and they are fairly inexpensive.

 

  • If it does snow, even a half-inch or less, make sure that the driveway and all the sidewalks are completely shoveled.  You never know when that perfect buyer will want to view your home.  Keeping the driveway and walkway neatly shoveled not only makes it easier for them to access your home, it also is a sign to the buyers that you care for and maintain your home.

 

  • Use the magic of the holiday season to add ambiance to your home. Tasteful holiday decor paired with a cider on the stove or in the crockpot will create the sights and smells that bring back happy memories to any perspective buyers.   This is an easy an inexpensive way to make your home stand out from the rest.

These are just some basic tips for selling your home in the winter.  For more ideas and an expert opinion on what your home might sell for please call Housing Helpers real estate at 303-545-6000.

 

Colorado Real Estate Agents

Marijuana and Colorado Real Estate Market

What’s Behind the Colorado Real Estate Market Boom?

If you’ve looked at the Colorado real estate market lately, you know that home prices have been growing at a steady pace for many months now. If you thought of buying a home last year, and waited to see what the market would do, you may be regretting your decision now.

Every passing month brings higher appraisals, and you may find yourself waffling between buying a home now, so you can get in on some of the incredible appreciation Colorado homeowners are enjoying, or waiting it out to see if these high prices are just a bubble that is going to burst, leaving you on the hook for a higher mortgage than you can sell your home for. It’s times like these you may wish you had a crystal ball.

However, if you understand what’s behind the booming real estate market in Colorado, fortune-telling skills may not be necessary.  Some have speculated the increased demand for homes in the Colorado real estate market has more to do with more people being drawn to move to Colorado for alternative reasons we haven’t seen before.

There has been a correlation between the legalization of marijuana in Colorado and the increasing cost of homes. The state of Washington has seen a very similar housing boom lately. More people are moving into these two states to legally enjoy marijuana, and so there is more demand for housing than there are available houses.  As long as supply exceeds demand, housing costs will continue to rise.

According to the CNN Money article,  “How Legal Marijuana Biz is Boosting Denver’s Housing Market”

“In a normal market, Denver typically has around 24,000 listings, according to Moye. But right now, she said, there are only around 4,000. But there is a nagging question of just how long the real estate buzz will last. Moye said the market has room to run for five to seven years barring any major economic disasters.”

This means that even though we’re seeing high prices in homes today, the prices could easily continue to get higher. You can still buy real estate in Colorado today and possibly sell in four or five years and turn a profit.  But ultimately there is no guarantee on how long the Colorado real estate market boom will last – as long as people are drawn here it will provide a strong stable pool of buyers and renters.  There are many reasons that people are drawn to Colorado, legal marijuana is just one more reason the Colorado real estate market remains strong.

Colorado real estate agents             Colorado Rentals

Colorado Relocation Services

 

 

Colorado Real Estate Housing Helpers

One Simple Tip to Buy Colorado Real Estate in a Seller’s Market

You don’t have to spend much time in Boulder to realize that the Colorado real estate market is going a little crazy!  Houses are appreciating at unheard of rates, which is great news for homeowners, but it can be more than a little frustrating for anyone trying to buy a home.

Buyers are having to be pretty patient, putting in offers well above the asking price, and brushing off rejection when their offer isn’t accepted and the house they love is sold to someone else. Most homes in Colorado are selling quickly with homeowners receiving many competitive offers. So the vast majority of buyers will put offers in on several homes before they have an offer accepted.

If you want to increase your odds of having your offer accepted, there is one simple thing you can do. In addition to submitting the strongest offer you can submit, you can write a personal letter to the seller.

A personal letter should introduce yourself and your family. It should explain why you are buying a house now, and why you are specifically excited about this particular house.

Homeowners get attached to the homes they have live in, and they want to know that the new owner will love and appreciate their home as much as they have. It may seem silly, but often times the personal touch of a letter makes all the difference to a seller who can have their pick of buyers.

We would be happy to help you find your perfect home in Colorado, and we can share our expertise on putting together offers that are appealing to sellers in this hectic Colorado real estate market.

Call our Real Estate Agents at (303) 545-6000.

 

Colorado Real Estate

 

Colorado Real Estate Market

Buying A Home In Colorado’s Red-Hot Real Estate Market

Are you considering buying a home in Colorado? If so, you’ll want to act fast. Colorado has one of the hottest housing markets in the country. A growing job market, coupled with other factors, such as low numbers of new homes being built, have made the state’s real estate market go red-hot.

For instance, in Denver, home prices are up 11 percent since last year, according to data from Live Urban. Meanwhile, the number of homes available, however, has dropped 15 percent. What does that mean for a prospective buyer? Good credit and available funds may not be enough to get you into the home you want.

Here are a few things to expect:

Rising Prices

Prices are climbing quickly throughout the state, and this isn’t expected to slow down any time soon. What that means for buyers is that waiting can prove costly.

Fast Sales

Are you debating on a home you recently viewed? Don’t wait too long, or the house may no longer be available. Some houses are selling after just days on the market.

Bidding Wars

With Colorado’s current market conditions, demand for houses is very high, but the number of available houses is very low. This translates into heavy competition for sellers. If you’re looking for a home, that means you’ll need to be prepared to face bidding wars.

Pre-Approval

With a red-hot market, you’ll want to get pre-approved for a mortgage before you even view a home. You may have to make an offer on the spot, and if so, you’ll want to be sure that you are ready and able to complete the purchase. Otherwise, there’s a good chance that a home will sell to another buyer while you’re going through the approval process.

When beginning your search for homes in Colorado you will want to be prepared for this market.  In addition to these tips, the real estate agents here at Housing Helpers are tapped into this fast paced market on a daily basis.  Utilize our experience and expertise to help guide you through this challenging real estate market.

 

Colorado Real Estate Agents

 

 

Can Millennials Afford Homes in Denver Boulder

Can Millennials Afford Homes in Denver?

Rents are climbing in most major cities across the country, driving more folks to consider buying homes sooner than their initial plans. By purchasing a property, renters begin investing their monthly payments into the equity of their homes rather than losing that money each month.

The widely-accepted housing affordability guideline is to spend no more than 30 percent of your income. Currently, renters pay 30.1 percent of their incomes on rent each month, while homeowners pay just 15.3 percent on their mortgage payments. In Denver, those values are even costlier.

Denver renters pay 33.4 percent of their incomes and homeowners pay 19.8 percent each month. In fact, rents in Denver are up 10.6 percent in the last year.

Clearly, buying is the better financial option for monthly savings, but owning a home costs more than the monthly payment. Buyers need to prepare for the down payment, closing costs, property taxes, homeowners insurance and annual maintenance costs. Homeownership is expensive, but it’s still the American dream and many millennial-aged folks are beginning to consider the transition to avoid rising rents. But, can they afford it?

Millennials are between the ages of 23 and 34 years old and are generally some of the lower earners nationwide because of their youth. Unfortunately, incomes have not kept up with rising home values in the real estate market. Since 2000, incomes only rose 15 percent among the lowest third of U.S. workers. Meanwhile, home values appreciated 41 percent. From that perspective, low-earners would be strapped to find affordable inventory. However, the facts prove that millennials can afford much of the available inventory.

The median income of millennials in Denver is $56,843. Assuming these millennials could afford a 5 percent down payment and spend 30 percent of their monthly income toward a mortgage payment with a 3.98 interest rate, then Denver-based millennials could afford nearly half of the homes on the market. The potential price of homes they could purchase would be $313,299, freeing up 46.3 percent of the inventory. Zillow found the total number of for-sale listings at that price point going back to 2010; of all 6,577 listings in Denver, a millennial could afford to buy 3,045 of the properties.

Although affording half of the market seems reasonable for a lower-earning group, it’s well below the national affordability rate of 69.7 percent. Across the country, millennials can afford far more of the for-sale market, but their median income is lower at $49,176, and their purchase price is less too ($271,041).

Denver is a hot sellers’ market for 2015, ranked third in fact. Buyers battle for inventory and sellers can get away with steep prices because the inventory is low compared to the demand.

And the demand doesn’t seem to be calming anytime soon. According to the Zillow Housing Confidence Index survey, 19 percent of 18- to 34-year-old renters plan to buy in the next year. The survey indicates 29,000 millennial buyers will emerge in the Denver market within the year.

If renting is becoming too pricey in the Denver area and you’re considering buying instead, review the for-sale listings and keep the 30 percent guideline in mind. First-time buyers with good credit can offer 5 percent or even 3 percent down to ease the upfront costs of financing a home purchase – some loan options even allow zero down.

Start shopping now to get an idea of the inventory and value before bidding in the competitive Denver market.

This post courtesy of Tali Wee of Zillow

 

 

Denver Real Estate Agents                 Colorado Homes For Sale

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