The market today~

2016-03-04 10.50.34

Market Summary:

The market is looking very similar to the same time last year. The % under contract, inventory

available and volume of homes sold are very comparable to February 2015. In the last 12

months, appreciation in our local sub-markets is ranging from 6% – 16% for single family

homes, and 8% – 19% for attached dwellings.

Under Contract Ratios and Changing Market Price Points: Colorado’s front range has

experienced historic buyer demand and appreciation over the last 3 years from Castle Rock on

the south to Fort Collins on the north. Buyer demand has been especially strong in the more

affordable segment of each sub-market below a certain price point. In every sub-market, Buyer

demand trends downward as prices increase. Here are the price points for our local

communities:

Boulder = $980,000

 Below $980,000 = 70% under contract

 Above $980,000 = 32% under contract

Louisville = $670,000

 Below $670,000 = 63% under contract

 Above $670,000 = 25% under contract

Longmont = $415,000

 Below $415,000 = 80% under contract

 Above $980,000 = 52% under contract

Lafayette = $550,000

 Below $550,000 = 86% under contract

 Above $550,000 = 48% under contract

Broomfield = $495,000

 Below $495,000 = 71% under contract

 Above $495,000 = 49% under contract

Erie = $405,000

 Below $405,000 = 70% under contract

 Above $405,000 = 44% under contract

The start of 2016 Stats & Market Update

 

 

 

 

 

 

 

 

 

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Market Summary:

The single family home market data varied from the attached dwelling market in January 16’,

and also varied per county.

Boulder County experienced an overall increase in January sales volume for single family

homes, but a decrease in sales volume for attached dwellings. With the exception of City of

Boulder, the surrounding communities have less inventory as compared to the same time last

year. As a result of the lower inventory and significant buyer demand, it is not surprising that

values continue to rise at historic rates. In the last 12 months, Average price appreciation per

area is as follows:

Single Family Homes (average price appreciation):

 Boulder 17.7%

 Louisville 5.7%

 Lafayette 11.1%

 Superior 11.3%

 Erie 8.9%

 Mountains 5.9%

 Longmont 12.5%

Attached Dwellings (average price appreciation):

 Boulder 15.3%

 Louisville 15.9%

 Lafayette 9.7%

 Superior 7.5%

 Longmont 15.7%

In reviewing current buyer demand for January 2016, the demand is similar to this same time

last year for single family homes, but significantly higher for attached dwellings.

The Denver market is experiencing similar buyer demand for both single family homes and

attached dwellings as compared to the same time last year. However, both inventory and

sales volume are up substantially.

Entering Summer Season

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Here’s a quick recap of where we are this month in our market~

Information provided by IRES and Metrolist Information Services.

 

Boulder Single Family Homes, Market Recap:

 

  • Percentage of Homes Under Contract = Similar to last month
  • Year-to-Date Home Sales = Equal as compared to the same date as last year.
  • Monthly Single Family Home Inventory = down (-9.44%) as compared to the same month last year.  
  • The Days-to-Offer = down (-25.8%) from the same time last year.
  • Median Sales Price = Up (+19.4%) from the same time last year
  • Average Sales Price = Up (+24.1%) from the same time last year.

 

Price Range                           Activity Level

$0 to $1.5mm              =         Seller’s Market

$1.5mm to $2mm        =         Balanced Market

$2mm and up             =         Buyer’s Market

 

Boulder Attached Dwellings, Market Recap:

 

  • Percentage of Homes Under Contract = Higher in the lower price ranges, Lower in the higher price ranges
  • Year-to-Date Home Sales = Up (+2.7%) as compared to the same date as last year.
  • Monthly Single Family Home Inventory = down (-34.1%) as compared to the same month last year.  
  • The Days-to-Offer = down (-45%) from the same time last year.
  • Median Sales Price = Up (+18.3%) from the same time last year
  • Average Sales Price = Up (+23.5%) from the same time last year.

 

Price Range                           Activity Level

$0 up to $1mm                        =         Seller’s Market

$1mm and up              =         Balanced Market

           

Denver Single Family Homes, Market Recap:

 

  • Percentage of Homes Under Contract = Similar to last month
  • Year-to-Date Home Sales = Up (+12.2%) as compared to the same date as last year.
  • Monthly Single Family Home Inventory = Up (+28.6%) as compared to the same month last year.  
  • The Days-to-Offer = down (-29.5%) from the same time last year.
  • Median Sales Price = Up (+16.5%) from the same time last year
  • Average Sales Price = Up (+13.1%) from the same time last year.

 

Price Range                           Activity Level

$0 to $750,000            =         Seller’s Market

$750,000 to $1.5mm   =         Balanced Market

$1.5mm and up           =        Buyer’s Market

 

Denver Attached Dwellings, Market Recap:

 

  • Percentage of Homes Under Contract = Similar to last month
  • Year-to-Date Home Sales = Equal as compared to the same time last year.
  • Monthly Home Sales = Up (+10.4%) as compared to the same month last year.  
  • Monthly Single Family Home Inventory = Up (+54.5%) as compared to the same month last year.  
  • The Days-to-Offer = down (-28.6%) from the same time last year.
  • Median Sales Price = Up (+16.9%) from the same time last year
  • Average Sales Price = Up (+14.9%) from the same time last year.

 

Price Range                           Activity Level

$0 to $750000             =         Seller’s Market

$750,000 to $1mm      =         Balanced Market

$1mm and up              =         Buyer’s Market

Overall Market Recap:

 

The Boulder/Denver real estate data for spring/early summer continues to show the equally high buyer demand in almost all market segments.  Normally, we experience a temporary slowdown in Buyer demand after Memorial Day; however, this did not occur in 2015 as Buyer demand remains strong.

 

One significant difference we are experiencing between the Boulder and Denver real estate markets is the amount of inventory available for sale.  Boulder’s inventory levels remain weak and are significantly lower than this time last year.  As a result of the limited inventory, Boulder’s prices have again reached a new all-time high, with the average price at $987,565.  Conversely, Denver is bringing a significant amount of new single family home and attached dwelling inventory to the marketplace.  Regardless of the added inventory, Denver’s prices are also continuing to rise at a double digit pace, just not as quickly as Boulder.

 

With this current market activity, it is no surprise that the amount of time it takes for a broker to procure an acceptable offer has dropped between 25% and 55% as compared to this time last year.  Sales volume remains equal on a month to month basis for single family homes, but we are experiencing an increase in sales volume for attached dwellings.

Rates edge up, unemployment dips to 5.4%

Today’s Mortgage Rates!
Rates have edged up from their lows of the year.  We are still below 4.00% but based on economic data it is hard to say how long this will last.  Unemployment figures for the month of April came out today and the unemployment rate dipped to 5.4%!! Good news for the economy but this will undoubtedly continue to put pressure on mortgage interest rates to go up!   I continue to play it conservatively and encourage clients to lock in, if rates dip they can always take advantage of Guaranteed Rate’s float down option.
As the market continues to be competitive, we are finding appraisers at their maximum as far as volume.  The days of waiting for an inspection resolution to order an appraisal are long over.  Good agents and lenders let their clients know this upfront.  Average appraisal turn times are 2 – 3 weeks with a rush request!!

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Our Current Market

spring in boulder

A semi-dry April has been followed by a very rainy May for the Front Range.  This is a great thing, despite the threat of floods, as we’ll have a nice colorful Spring and beginning of Summer!  It is sad to say goodbye for now to ski season but a fun filled summer of activities awaits.

Concerning  Boulder/Denver real estate,  the data for spring continues to show increased buyer demand in most market segments.  The limited housing supply has driven prices above the last market peak of 2007/2008.  With the exception of Boulder proper, we are seeing improved housing inventory numbers as compared to both last month as well as last year.  Denver again showed the strongest month to month inventory gains.  The inventory of attached dwelling units remained level in most market segments as compared to April.  The exceptions were Denver, which showed an increase in inventory, and Boulder which showed a decrease.

Sales volume remained fairly level on a month to month basis.  Although we are only using 4 months of data points for the YTD sales info, both median and averages prices have increased substantially in Boulder and Denver.  Boulder single family home price increases range between 20% and 26% as compared to this time last year, and Denver ranges between 15% and 19%.  For attached dwellings, Boulder increases range between 8% and 16%, and Denver ranges between 19% and 20%.

Overall:

Single family homes

*Boulder  up to $1.5mm is a sellers market

*Denver up to $750k is a seller market

Attached dwellings

*Boulder up to $1mm is a sellers market

*Denver up to $750k is a sellers market

 

Overall Market Recap

Mt. Sanitas Valley Trail

Mt. Sanitas Valley Trail

The Boulder/Denver real estate data for early 2015 continues to show a very strong housing market with continued, and in some cases increased buyer demand, especially for single family homes in Boulder price under $500k.  We are beginning to see an increased level of single family home inventory in most market segments, the exceptions being Boulder and Lafayette.  Denver showed the strongest inventory gains with a 13.8% increase of homes for sale over last month.  The inventory of attached dwellings also increased in most market segments as compared to February (Denver again showing the strongest gains with an 18.6% increase over February of attached dwelling units).

Sales volume increased in almost all market segments on a month to month basis, which is historically consistent with the real estate selling season.  Although we are only using 3 months of data points for YTD sales information, both median and averages prices have increased substantially in Boulder and Denver.  I suspect part of the increased values can be attributed to the lack of lower priced inventory currently on the market, as owners are finding that increased rental rates make the more affordable homes good investment properties, and are choosing to rent instead of sell in some cases.

A new trend in home buying

Millennials to Drive Down Home Sizes

This is a great article that I found online.  It seems that the trend of young homebuyers is definitely moving towards smaller more affordable homes.  I see the tiny house really taking off  in the Colorado area and I think those who need a bit more space still enjoy that concept.  

The younger generation will make their mark on the look of homes in the coming years as homes likely will get smaller, separate laundry rooms will become essential, and home technology will be a must, according to a panel of builders and designers speaking at the International Builder Show last week.

A growing number of first-time buyers will likely lead to smaller homes — a downsizing home trend that may start showing itself even in 2015, predicts Rose Quint, the assistant vice president of research at the National Association of Home Builders.

As younger, first-time buyers re-emerge on to the market, “they will demand smaller, more affordable homes,” Quint says. “Builders will build whatever demand calls out for.”

NAHB recently surveyed millennials on what home features they “most wanted” in a home. Here are some of the features that topped their list:

  • A separate laundry room: 55 percent of millennials said they wouldn’t buy a new home that didn’t have one
  • Storage: linen closets, a walk-in pantry, and garage storage
  • Energy efficiency: millennials said they are willing to pay 2-3 percent more for energy efficiency as long as they see a return on their power bills

What would they be willing to sacrifice? Millennials surveyed said they’d sacrifice extra finished space or even drive a little farther to work, shops, and schools in their home purchase. However, they aren’t willing to compromise with less expensive materials in their home, the survey found.

Seventy-five percent of millennials surveyed said they want to live in a single-family home, and 66 percent said they prefer to live in the suburbs. Only 10 percent said they wanted to stay in the central city.

Since millennials tend to be more cash-strapped than older home owners, they often seek less expensive, low-maintenance choices in a home, such as landscaping that needs less watering and mowing and larger patios instead, said Jill Waage, editorial director for home content at Better Homes and Gardens, which also regularly surveys buyers on home preferences. Millennails are often very tech savvy, and increasingly are asking for ways to control their home’s heating, air conditioning, security, and lighting from their phones or tablets.

“They want to use their brain for other things, not for remembering whether they adjusted the heat or closed the garage door,” Waage said.

Source: National Association of Home Builders

Tips for Getting a Mortgage

Are you considering buying a property as a second home or investment? Perhaps you are looking for a small cottage or apartment where you can escape for vacation, or maybe you want to have another home closer to family. Maybe you want to rent out your second property and make a steady income from your investment. Whatever the reason, a second piece of real estate can be a fantastic investment. However, sometimes getting a mortgage on your second home can be a challenge.

Generally, a mortgage lender will have tougher standards for second home loans than primary home loans. This is because usually when you are buying a second home your finances will be stretched thinner and you will have less money to spare because you are already paying a mortgage on your primary home. This will mean that your second home mortgage can be harder to get and might have a higher interest rate.

Here are some tips to keep in mind that will help you to get the best mortgage on your second property: Build up a decent amount of savings. Your mortgage lender will want to be able to see that you have a large amount of savings so that you will have enough to pay for the mortgage even if you were to lose your job.

Pay off any credit card debt. Many lenders will be hesitant to approve your second home mortgage if they see that you have a lot of debt on your credit card. They will want to see that you have a low debt to income ratio so that you will be able to pay back the loan.

Use the first mortgage as a good reference. If you have always made your payments on time and you are most of the way through paying off your first house, you could ask someone from your current mortgage company to vouch for you. The lender for your second mortgage will be reassured that you are a reliable person to loan money to.

These are just a few tips to keep in mind in order to make getting a mortgage for your second property as easy as possible. To find out more about investing in property, contact me at courtneytrice@fourstarrealty.com or phone me at 720.987.9651.

Federal Reserve & Mortgage Rates

My lender buddy sent  over this great info so I thought I’d pass is along.  Thanks to Jodianne Mentus with Loan Simple.
When the Federal Reserve met earlier this week the governing body did not rock the boat and kept with previous statements and posture.  They left rates unchanged, however the statement was tweaked in a way to allow them to start rate hikes (normalizing monetary policy) later this year.  They said that economic activity was expanding at a “solid pace” with strong job gains.

 

Words are powerful:  One tool the Fed has is “forward guidance.”  This is “wording” that tells markets what to expect in the future.  Mrs. Yellen has said that the Fed can be “patient” in raising rates and indicated that “patience” means no changes for at least two more meetings.   By including it Wednesday the Fed took rate hikes off the table at their March and April meetings leaving the June 16-17 meeting in question.

 

Not all Fed meetings are created equal.  The governing body meets every six weeks, however they do not always include a press conference and updated economic projections from the members.  The meeting this week was one without a press conference or projections, leaving Mrs. Yellen without a soapbox to explain any changes in stance.  This was one reason few expected much change from the statement.  However the March 17-18 meeting brings updated projections and a press conference.  Mrs. Yellen will not remove the “patience” wording without an opportunity to explain her position.  Global market participants will be on edge as the meeting approaches.

 

Data Dependent:  As Mrs. Yellen has said repeatedly, any changes to Fed policy will depend on the economy.  If inflation remains well below their 2% target or the economy stumbles the Fed will delay rate hikes.  One metric they are laser focused on is jobs.  As the economy moves to “full employment” (the condition in which virtually all who are able and willing to work are employed) with an unemployment rate of 5.2%-5.5% any sign of wage inflation will pressure them to increase rates.

 

Global economy:  The US is the shining light for economic activity around the world.  As central banks of other countries continue to add accommodations, the Fed is poised to move to hike rates.  We are seeing bond buying (quantitative easing), rate cuts, and other activities to combat deflation and rising currency values from Europe to Canada to Asia.  It is rare to see so much disjunction between central banks.

 

What about rates:  Despite the fact the Fed is jawboning higher rates, yields in the US are falling.  One reason is the Treasury rates in the US are much higher than yields available from other strong countries such as Germany.  In Germany the 10-year Bund yields 35bps (1/3 of 1%) and the 30-year bund is less than 1%.   Rates in Germany are expect to fall further as the European Central Bank kicks off their own QE.  That makes a mortgage backed security yielding 3% or a 10-year Treasury bond yielding 1.75% a deal.

 

What to expect:  In a word, volatility.  There is no reason to believe mortgage rates will rise substantially in 2015 and they could fall as we have seen recently.  Keep an eye on the economic data calendar and prepare yourself and your borrowers for the possibility of rapid rate movements.  Not all volatility is bad, however all volatility is disruptive.

 

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Q’s for your home inspector

 

When you buy a Colorado home, you need to know exactly what you’re buying. You can never tell what is really going on just by looking at the home. This is why you should have a home inspection before you buy your home. A home inspection is an important part of buying your home. Before you hire a home inspector, ask candidates a few questions to make sure you hire a trustworthy inspector.  I will also provide a list of my preferred Inspectors.

  1. What does your inspection cover? Not all inspections are the same. Ask for copies of previous home inspections so you can see exactly what they will check inside the home. If you are concerned about something specific, like a leaky faucet in the bathroom, mention that to the inspector so they can check it out.
  2. Are you licensed or certified? If you live in a state that licenses home inspectors, ask to see their license. At the very least, choose a home inspector who belongs to American Society of Home Inspectors. This shows a level of professionalism and education that you can trust.
  3. What kind of report will you give me? You should expect a written report detailing what the inspector found. Most inspectors will give you a typed report within a week of the inspection. Make sure the inspector will be available to explain anything on the report that doesn’t make sense to you.
  4. Will I be able to attend the inspection? If the inspector refuses to let you be present during the home inspection, find someone else. This is your chance to know exactly what you are buying and what potential repairsyou or the seller will have to make.

As your real estate agent, I will guide you through the home buying process. Let me help you find your new Colorado home. Call me today at 720.987.9651 or email me at courtneytrice@fourstarrealty.com. KEYWORD: Colorado home LINKS:

  1. Home inspection – http://en.wikipedia.org/wiki/Home_inspection
  2. American Society of Home Inspectors. – http://www.ashi.org/
  3. Easy household repairs. – http://home.howstuffworks.com/home-improvement/repair/5-home-repairs-you-should-do-yourself.htm