Market Updates • Uncategorized • December 15, 2022

November 2022 Real Estate Market Update

by LaDawn Sperling

Market Cools but Prices Still up From a Year Ago – November 2022 Metro Denver Market Update

The drop in inventory from the previous month follows the typical slowdown at the end of the year as people wait until after the holidays to list their homes. Although prices were up year-over-year, homes are sitting on the market an average of 34 days – more than double the time a year ago.

November’s vital statistics for all homes – detached single family (DSF) and attached single family (ASF) combined – included:

The average price for homes was down slightly compared to the previous month but up 5% from November 2021;
The average days in the MLS were up 21% from the prior month and 127% from a year ago; and
Active listings at month end were down 14% from October but up 178% from this time last year.

A recent report from Redfin highlights the slowdown in the Denver market. The study compared Redfin listings in the area and found that the percentage of listings facing competition decreased from 62.3% in October 2021 to 27.2% in October 2022, and the percentage of pending sales that fell out of contract grew from 8.6% in 2021 to 20.5% in 2022. The frequency of price reductions appears to have peaked in November as agents and sellers make the adjustments needed for this evolving market.

If you need any advice or assistance navigating our real estate market, contact me today at 303.710.5817 or ladawn.sperling@coloradohomes.com. I am never too busy for your referrals.

This update is based on information provided by the Denver Metro Association of Realtors® for the period of November 1, 2022, through November 3o, 2022, for the following counties: Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park.

Real Estate News, Tips, & Tricks • December 8, 2022

Prioritizing Your Wants and Needs as a Homebuyer in Today’s Market

by LaDawn Sperling

There’s no denying mortgage rates are higher now than they were last year. And if you’re thinking about buying a home, this may be top of mind for you. That’s because those higher rates impact how much it costs to borrow money for your home loan. As you set out to make a purchase this winter, you’ll need to be strategic so you can find a home that meets your needs and budget.

Danielle Hale, Chief Economist at realtor.com, explains:

“The key to making a good decision in this challenging housing market is to be laser focused on what you need now and in the years ahead, . . . Another key point is to avoid stretching your budget, as tempting as it may be given the diminished purchasing power.”

In other words, it’s important to be mindful of what’s a necessity and what’s a nice-to-have when searching for a home. And the best way to understand this is to put together a list of desired features for your home search.

The first step? Get pre-approved for a mortgage. Pre-approval helps you better understand what you can borrow for your home loan, and that plays an important role in how you’ll craft your list. After all, you don’t want to fall in love with a home that’s out of reach. Once you have a good grasp of your budget, you can begin to list (and prioritize) all the features of a home you would like.

Here’s a great way to think about them before you begin:

Must-Haves – If a house doesn’t have these features, it won’t work for you and your lifestyle (examples: distance from work or loved ones, number of bedrooms/bathrooms, etc.).
Nice-To-Haves – These are features that you’d love to have but can live without. Nice-To-Haves aren’t dealbreakers, but if you find a home that hits all the must-haves and some of the these, it’s a contender (examples: a second home office, a garage, etc.).
Dream State – This is where you can really think big. Again, these aren’t features you’ll need, but if you find a home in your budget that has all the must-haves, most of the nice-to-haves, and any of these, it’s a clear winner (examples: farmhouse sink, multiple walk-in closets, etc.).

Finally, once you’ve created your list and categorized it in a way that works for you, discuss it with your real estate advisor. They’ll be able to help you refine the list further, coach you through the best way to stick to it, and find a home in your area that meets your needs.

Bottom Line

Putting together your list of necessary features for your next home might seem like a small task, but it’s a crucial first step on your homebuying journey today. If you’re ready to find a home that fits your needs, let’s connect.

Real Estate News, Tips, & Tricks • December 1, 2022

3 Ways You Can Use Your Home Equity

by LaDawn Sperling

If you’re a homeowner, odds are your equity has grown significantly over the last few years as home prices skyrocketed and you made your monthly mortgage payments. Home Equity builds over time and can help you achieve certain goals. According to the latest Equity Insights Report from CoreLogic, the average borrower with a home loan has almost $300,000 in equity right now.

As you weigh your options, especially in the face of inflation and talk of a recession, it’s important to understand your assets and how you can leverage them. A real estate professional is the best resource to help you understand how much home equity you have and advise you on some of the ways you can use it. Here are a few examples.

1. Buy a Home That Fits Your Needs

If you no longer have the space you need, it might be time to move into a larger home. Or it’s possible you have too much space and need something smaller. No matter the situation, consider using your equity to power a move into a home that fits your changing lifestyle.

If you want to upgrade your house, you can put your equity toward a down payment on the home of your dreams. And if you’re planning to downsize, you may be surprised that your equity may cover some, if not all, of the cost of your next home. A real estate advisor can help you figure out how much equity you have and how you can use it toward the purchase of your next home.

2. Reinvest in Your Current House

According to a recent survey from Point, 39% of homeowners would invest in home improvement projects if they chose to access their equity. This is a great option if you want to change some things about your living space but you aren’t ready to make a move just yet.

Home improvement projects allow you to customize your home to suit your needs and sense of style. Just remember to think ahead with any updates you make, as some renovations add more value to your home and are more likely to appeal to future buyers than others. For example, a report from the National Association of Realtors (NAR) shows refinishing or replacing wood flooring has a high cost recovery. Lean on a local professional for the best advice on which projects to invest in to get the greatest return on your investment when you sell.

3. Pursue Your Personal Goals

In addition to making a move or updating your house, home equity can also help you achieve the life goals you’ve dreamed of. That could mean investing in a new business venture, retiring or downsizing, or funding an education. While you shouldn’t use your equity for unnecessary spending, leveraging it to start a business or putting it toward education costs can help you achieve other lifelong goals.

Bottom Line

Your equity can be a game changer. If you’re unsure how much equity you have in your home, let’s connect so you can start planning your next move.

Real Estate News, Tips, & Tricks • November 23, 2022

Mortgage Rates Will Come Down, It’s Just a Matter of Time.

by LaDawn Sperling

This past year, rising mortgage rates have slowed the red-hot housing market. Over the past none months, we’ve seen fewer homes sold than the previous month as home price growth has slowed. All of this is due to the fact that the average 30-year fixed mortgage rate has doubled this year, severely limiting homebuying power for consumers. And, this month, the average rate for financing a home briefly rose over 7% before coming back down into the high 6% range. But we’re starting to see a hint of what mortgage interest rates could look like next year.

Inflation Is the Enemy of Long-Term Interest Rates

As long as inflation is high, we’ll see higher mortgage rates. Over the past couple of weeks, we’ve seen indications that inflation may be cooling, giving us a glimpse into what may happen in the future. The mortgage market is eagerly awaiting positive news on inflation. As Ali Wolf, Chief Economist at Zonda, says:

“The housing market is expected to face continued uncertainty heading into 2023 as consumers, financial markets, and policymakers work through their respective challenges in today’s economy. . . . we are watching for any additional stability in the MBS market, signs of cooling inflation, and/or less aggressive Federal Reserve action to give us confidence that mortgage rates are past their peak.”

What Does This Mean for the Future of Mortgage Rates?

As we get through the inflation battle and start to see that coming down, we should expect mortgage rates to follow. We’ve seen nods of this over the past couple of weeks. As the Federal Reserve works to bring inflation down, mortgage rates will come down as well. Bill McBride from Calculated Risk says:

“My current view is inflation will ease quicker than the Fed currently expects.”

As we look toward next year, we certainly hope he’s right.

Bottom Line

Mortgage rates will come down – it’s just a matter of time. The hope is we continue to see more positive news on inflation, and that’ll bring mortgage rates down. This will give prospective homebuyers more buying power and lead to more homeowners throughout the country.

Real Estate News, Tips, & Tricks • November 17, 2022

October 2022 Real Estate Market Update

by LaDawn Sperling

Denver’s Housing Market Evolves

Active inventory at the end of October was down slightly compared to September, and although it is up 116% compared to a year ago, it is still below the pre-pandemic active inventory of 8,600 listings at this time in 2019. The average number of days on the market continue to rise as many sellers are still pricing based on peak activity and have not made the correct adjustment to the current market.

October’s vital statistics for all homes – detached single family (DSF) and attached single family (ASF) combined – included:

The average price for homes was down 1% compared to the previous month but up 8% from October 2021;
The average days in the MLS were up 8% from the prior month and 100% from a year ago; and
Active listings at month end were down 5% from August but up 116% from this time last year.

Several market factors are in play right now. Homes are on the market longer, giving buyers more options. At the same time, inflation and rising interest rates are decreasing buyer demand and making sellers more likely to delay listing until the peak selling season. However, this may be a good time for those thinking about selling since interest rates will likely continue to rise and buyers may want to buy a home sooner rather than later.

If you need any advice or assistance navigating our real estate market, contact me today at 303.710.5817 or ladawn.sperling@coloradohomes.com. I am never too busy for your referrals.

This update is based on information provided by the Denver Metro Association of Realtors® for the period of October 1, 2022, through October 31, 2022, for the following counties: Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park.

Real Estate News, Tips, & Tricks • Uncategorized • November 10, 2022

Sell Your House Before the Holidays

by LaDawn Sperling

As you look ahead to the winter season, you’re likely making plans and thinking about what you want to achieve before the year ends. One of those key decision points could be whether or not you want to move this year. If the location or size of your current home no longer meets your needs, finding a house that better suits your lifestyle may be a top priority for you. But with today’s cooling housing market, is it really a good time to sell your house, or should you wait?

If you’re ready to make your decision, here are three reasons you may want to consider selling before the holidays.

1. Get One Step Ahead of Other Sellers

Typically, in the residential real estate market, homeowners are less likely to list their houses toward the end of the year. That’s because people get busy around the holidays and deprioritize selling their house until the start of the new year when their schedules and social calendars calm down.

Selling now, while other homeowners may hold off until after the holidays, can help your house stand out. Start the process today so you can get your house on the market and get ahead of your competition.

2. Get in Front of Serious Buyers This Season

Even though housing supply has increased this year as buyer demand has moderated, it’s still low overall. That means there aren’t enough homes on the market today, especially as the millennial generation reaches their peak homebuying years. As Mark Fleming, Chief Economist at First American, says:

“While not the frenzy of 2021, the largest living generation, the Millennials, will continue to age into their prime home-buying years, creating a demographic tailwind for the housing market.”

Serious buyers will still be looking this winter and your house may be exactly what they’re searching for. If you list your house now, you’ll be able to get in front of the eager buyers who are hoping to make a move before the year ends.

3. Seize a Great Chance To Move Up

Don’t forget, today’s homeowners have record amounts of equity. According to Core Logic, the average amount of equity per mortgage holder has climbed to almost $300,000. That’s an all-time high. That means the equity you have in your house right now could cover some, if not all, of a down payment on the home of your dreams.

And as you weigh the reasons to sell before winter, don’t lose sight of why you’re thinking about moving in the first place. Maybe it’s time to buy a house that’s in a better location for you, has the space you and your loved ones have been craving, or simply gives you that sense of home. A trusted real estate advisor can help you determine how much home equity you have and how you can use it to achieve your goal of making a move.

Bottom Line

If you’re thinking about selling your house so you can find a home that better suits your needs, don’t delay your plans. Let’s connect so you can accomplish your goals before winter.

Real Estate News, Tips, & Tricks • November 3, 2022

3 Trends That Are Good News for Today’s Homebuyers

by LaDawn Sperling

While higher mortgage rates are creating affordability challenges for homebuyers this year, there is some good news for those people still looking to buy a home.

As the market has cooled this year, some of the intensity buyers faced during the peak frenzy of the pandemic has cooled too. Here are just a few trends that may benefit you when you go to buy a home today.

1. More Homes To Choose from

During the pandemic, housing supply hit a record low at the same time buyer demand skyrocketed. This combination made it difficult to find a home because there just weren’t enough to meet buyer demand. According to Calculated Risk, the supply of homes for sale increased by 39.5% for the week ending October 28 compared to the same week last year.

Even though it’s still a sellers’ market and supply is still lower than more normal levels, you have more to choose from in your home search. That makes finding your dream home a bit less difficult.

2. Bidding Wars Have Eased

One of the top stories in real estate over the past two years was the intensity and frequency of bidding wars. But today, things are different. With more options, you’ll likely see less competition from other buyers looking for homes. According to the National Association of Realtors (NAR), the average number of offers on recently sold homes has declined. This September, the average was 2.5 offers per sale. In contrast, last September, the average was 3.7 offers per sale.

If you tried to buy a house over the past two years, you probably experienced the bidding war frenzy firsthand and may have been outbid on several homes along the way. Now you have a chance to jump back into the market and enjoy searching for a home with less competition.

3. More Negotiation Power

And when you have less competition, you also have more negotiating power as a buyer. Over the last two years, more buyers were willing to skip important steps in the homebuying process, like the appraisal or inspection, to try to win a bidding war. But the latest data from the National Association of Realtors (NAR) shows the percentage of buyers waiving those contingencies is going down.

As a buyer, this is good news. The appraisal and the inspection give you important information about the value and condition of the home you’re buying. And if something turns up in the inspection, you have more power today to renegotiate with the seller.

A survey from realtor.com confirms more sellers are accepting offers that include contingencies today. According to that report, 95% of sellers said buyers requested a home inspection, and 67% negotiated with buyers on repairs as a result of the inspection findings.

Bottom Line

While buyers still face challenges today, they’re not necessarily the same ones you may have been up against just a year or so ago. If you were outbid or had trouble finding a home in the past, now may be the moment you’ve been waiting for. Let’s connect to start the homebuying process today.

Real Estate News, Tips, & Tricks • October 24, 2022

Out-of-the-Box Spare Room Ideas

by LaDawn Sperling

Have an extra room that’s just taking up space? Lucky you! Put your creativity to work and transform it into the “play” place you’ve always wanted. Here are just a few suggestions for using that unused area.

Rock Out

Let the rock-n-roll in you rip loose in a room designed to be your very own music studio. Bearing in mind that you’ll want to remain friends with your neighbors, a careful soundproofing plan is key. The door to the space will need to be solid, heavy and insulated with sealing strips. While you’ll be tempted to also seal the windows, it’s important to allow some light in so it won’t feel like you’re playing in an underground bunker. Absorption panels can be purchased to line the walls, and it’s wise to elevate the floor as well to keep the decibels down. By essentially building a ventilated “room within a room,” you’ll be able to enjoy some uninhibited jam sessions.

Divine Dressing

If you’re a fashionista with less than ample closet space, or if you’re seeking solace apart from a portion of a shared closet, then think about turning your spare square footage into the dressing salon of your dreams. Create a beautiful, well-appointed and brilliantly lit wardrobe room complete with floor-to-ceiling shelving, light-reflecting mirrors and plenty of storage for your accoutrements for every season. Add luxury elements like a comfy tufted pouf, an elegant jewelry armoire and even indulge in haute couture for the window treatments by framing them with sumptuous fabric. Dedicate an entire room to your coveted fashion collection by displaying all your favorite finds in full glam grandeur and celebrate the diva within.

Ssss-steam Heat

Ready for a relaxing retreat at the end of a hard day to soothe away daily pressures? If this sounds appealing, then get ready to turn up the heat in your very own steam room. Follow a few careful tips and you’ll be loose as a goose in no time. The key concern, of course, is moisture. Because the entire room will need to be waterproofed, a special door and insulated tile from top to bottom are absolute musts. A polyethylene film for the ceiling and walls, with backerboard to which the tiles will be attached, are other important tools to implement. Once the room is properly protected, a steam generator is all that’s necessary to create your cozy little piece of heaven.

Now that you have some inspiration for wonderful ways to use your extra square footage, it’s time to tally your budget, consider the possibilities and let your imagination run wild.

Market Updates • October 19, 2022

September 2022 Market Update Statistics

by LaDawn Sperling

Move Toward a More Balanced Market Continues

For more than 16 years, the Denver area has been a sellers’ market, which is typically defined as having less than three months of inventory. Inventory across all segments has increased in recent months with some segments near three months of inventory, indicating that we continue to shift toward a more balanced market.

September’s vital statistics for all homes – detached single family (DSF) and attached single family (ASF) combined – included:

The average price for homes was up 2% compared to the previous month and 8% from September 2021;
The average days in the MLS were up 37% from the prior month and 100% from a year ago; and
Active listings at month end were up 11% from August and 93% from this time last year.

According to a study by SmartAsset, the metro Denver market ranks No. 21 among the fastest-cooling markets in the country. As the market continues to shift, it is more important than ever for sellers to prepare their homes for sale and price right. Conservatively prices homes are still selling quickly, often in the first week. For buyers, this means they can finally take some time to find the right house and negotiate on price, inspections, appraisals and other items.

If you need any advice or assistance navigating our real estate market, contact me today at 303.710.5817 or ladawn.sperling@coloradohomes.com. I am never too busy for your referrals.

This update is based on information provided by the Denver Metro Association of Realtors® for the period of September 1, 2022, through September 30, 2022, for the following counties: Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park.

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November 2022 Real Estate Market Update

Prioritizing Your Wants and Needs as a Homebuyer in Today’s Market

Bottom Line

3 Ways You Can Use Your Home Equity

1. Buy a Home That Fits Your Needs

2. Reinvest in Your Current House

3. Pursue Your Personal Goals

Bottom Line

Mortgage Rates Will Come Down, It’s Just a Matter of Time.

What Does This Mean for the Future of Mortgage Rates?

Bottom Line

Top Questions About Selling Your Home This Winter

1. Should I Wait To Sell?

2. Are Buyers Still Out There?

3. Can I Afford To Buy My Next Home?

Bottom Line

October 2022 Real Estate Market Update

Sell Your House Before the Holidays

1. Get One Step Ahead of Other Sellers

2. Get in Front of Serious Buyers This Season

3. Seize a Great Chance To Move Up

Bottom Line

3 Trends That Are Good News for Today’s Homebuyers

1. More Homes To Choose from

2. Bidding Wars Have Eased

3. More Negotiation Power

Bottom Line

Out-of-the-Box Spare Room Ideas

September 2022 Market Update Statistics