Tag Archives: real estate market

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 

Four things that could make purchasing Real Estate easier in 2015

We’ve all had thoughts of “if only I’d known then what I know now…” Well, sorry, but here’s another one: The four things that could make purchasing Real Estate easier in the new year.

Loosened mortgage lending.

You may have heard the recent story about how former Federal Reserve Chairman Ben Bernanke was unable to get a refinance loan. When I read that, I wondered how many would-be home buyers also read it and just gave up on the idea. For many, logic would dictate that if Ben Bernanke couldn’t get a loan, they probably couldn’t. Well, one of the things the latest federal budget bill did is help loosen mortgage lending. Good news for Ben. Good news for you.

Down payment requirements will be lower.

After the financial meltdown of 2008, down payment requirements for mortgages went up as high as 25 percent, according to SFGate.com. But Fannie Mae and Freddie Mac are now offering lower down payments.

Growth in home prices will be slower.

This means there could be more bargains out there, relatively speaking – the real estate market in Colorado is still very strong. Of course, in some areas, prices will rise more sharply, while in others growth will be slower. But, on average, home values will grow at a slower pace than we’re historically used to. But eventually, growth in those values will increase. That will make buying a home a sound investment over the long term.

Low interest rates will continue.

This has been the 800 pound gorilla in the financial room for six years now. The federal funds rate has been at or near zero percent since December, 2008, and it’s expected to remain low for some time. As long as the federal funds rate is low, mortgage and other credit interest rates will also be low. Until now, that low rate has primarily benefited Wall Street and high net worth investors. But, when you add looser credit and lower down payment requirements into the mix, middle America will now reap some benefit as well.

Here’s the takeaway for those who would like to buy their first home, or upgrade to something larger:  You can wonder “if only I’d acted on what I knew in January”, or you can start actively exploring the real estate market in Colorado now.

Colorado Real Estate Agents

Real Estate Trends

Real Estate trends show “Millennials” moving to urban locations

A recent national survey conducted by the New York Times suggests that the new generation of home owners is shifting its interests to a more urban-styled preference. The majority of those surveyed preferred attributes such as walkability, a wide variety of housing choices, and nearby shopping, restaurant and transportation options. This new wave of young adults, also known as the Millennials, differs drastically in their preferences compared to the many older residents from the baby boomer generation. How it will affect nation-wide real estate will be very interesting.

Why Such a Sudden Change?

The majority of this new generation is burdened with excessive student loan debt. This transfers to their city-like preferences in real estate because the demand for jobs is considerably higher in more populated areas. In addition, the amount of licensed drivers has dropped considerably in their generation so good walkability is a must when choosing a property to rent or purchase.

Victims of Hard Times

The Millennials are being compared to those who had to endure the Great Depression. The group consists of people who are 18 to 34 and must deal with a wide array of financial burdens. Beside the mounting college loans they must make payments for, the recession, rising unemployment rates and stiff competition for jobs make the younger generation comparable to the people of the 1930’s. It is hard to tell what direction the Millennials will branch off toward, but the amount of home owners for their age is dwindling. Perhaps small, inexpensive apartments are what they must deal with at the moment.

Rural Homes Are Not Going To Be Left in the Dust

While factors such as student loan debt, high levels of unemployment, and lasting repercussions of the recession drive people to search for homes located near urban areas, the Millennials are also interested in suburban developments. While there is a greater chance that younger potential home owners may be searching in the city, they will also be looking at suburban houses that many older residents from the baby boomer generation will be looking to sell. With everything said, there is not enough information yet about this recent shift in preferences. The Millennials are too new of a generation to conclude anything drastic about the real estate market.

Get Informed 

The real estate market is a continually changing industry. It is important to consult those who have valuable experience in the field, especially if you are going to be a first time home owner. Housing Helpers can assist you with buying a new home while offering you a diverse selection of properties to rent or purchase in Colorado. Top of the line advice concerning selling your home is also available. If you are interested in real estate, please do not hesitate to contact us at (303) 545-6000 and one of our Real Estate Agents will be happy to assist you with any questions you may have about our services.

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