Real Estate News, Tips, & Tricks July 18, 2024

Why Moving to a Smaller Home After Retirement Makes Life Easier

Retirement is a time for relaxation, adventure, and enjoying the things you love. As you imagine this exciting new chapter in your life, it’s important to think about whether your current home still fits your needs.

If it’s too big, too costly, or just not convenient anymore, downsizing might help you make the most of your retirement years. To find out if a smaller, more manageable home might be the perfect fit for your new lifestyle, ask yourself these questions:

  • Do the original reasons I bought my current house still stand, or have my needs changed since then?
  • Do I really need and want the space I have right now, or could somewhere smaller be a better fit?
  • What are my housing expenses right now, and how much do I want to try to save by downsizing?

If you answered yes to any of these, consider the benefits that come with downsizing.

The Benefits of Moving into a Smaller Home

There are many reasons why you should downsize. Here are just a few from Bankrate:No Caption Received

Your Equity Can Help Make Downsizing Possible

If those perks sound like something you’d want, you may already have what you need to make it happen. A recent article from Seniors Guide shares:

“And at a time when homeowners age 62 and older have more than $12 trillion in home equity, downsizing makes sense . . .”

If you’ve been in your house for a while, odds are you’re one of those homeowners who’s built up a considerable amount of equity. And that equity is something you can use to help you buy a home that better fits your needs today. Greg McBride, Chief Financial Analyst at Bankrate, explains:

“Downsizing can mean taking that equity when the home is sold and using it to pay cash or make a large down payment on a lower-priced home, reducing your monthly living expenses.”

When you’re ready to use all that equity to fuel your next move, your  real estate agent will be your guide through every step of the process. That includes setting the right price for your current house when you sell, finding the home that best fits your evolving needs, and understanding what you can afford at today’s mortgage rate.

Bottom Line

Starting your retirement journey? Think about downsizing – it could really help. When you’re ready, let’s connect.

Market Updates July 15, 2024

Navigating the Mid-Year Market Shift – June 2024 Denver Metro Market Update

As we cross into the second half of 2024, the Denver Metro real estate landscape presents a complex yet intriguing picture, far removed from the predictable patterns we’ve grown accustomed to. This June, the market feels distinctly topsy-turvy as various factors contribute to its unique rhythm.


June’s key real estate metrics highlight significant shifts:

  • Active Listings: Saw a sharp increase to 10,214, up 11.52% from last month and a striking 68.27% year-over-year. This growth is the highest on record for this year, clearly illustrating a rising inventory trend.
  • Average Days in the MLS: Increased to 12 days, up 33.33% from last month, suggesting that while homes are still moving, the pace has relaxed, allowing buyers more time to make decisions.
  • New Listings: Interestingly, declined by 16.38% to 5,825, signaling a decrease that typically doesn’t occur until the later summer months, hinting at early buyer fatigue or market caution.

Market Contradictions and Future Outlook: The increase in pending sales juxtaposed with a rise in days on the MLS and a drop in closed sales paints a picture of a market that marches to its own drum. Anticipations of lower mortgage rates in the fall could be causing some buyers and sellers to hold off, potentially setting the stage for an active market in the latter part of the year, despite traditional slowdowns during presidential election cycles.


Navigating This Market:
Real estate remains intensely local. Each neighborhood’s activity depends on specific factors like price and condition. It is essential for those looking to enter the market to set up time with me so I can provide detailed analysis based on recent sold data, helping align strategies with your personal real estate goals.


Need Expert Guidance?
 If you’re pondering your next steps in the Denver Metro real estate market, don’t hesitate to reach out. I’m here to provide the insights and assistance you need to make informed decisions.

This update is based on information provided by the Denver Metro Association of Realtors® for the period of  June 1, 2024, through June 30, 2024, for the following counties: Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park.

 

 

Uncategorized June 20, 2024

Do Elections Impact the Housing Market?

The 2024 Presidential election is just months away. As someone who’s thinking about potentially buying or selling a home, you’re probably curious about what effect, if any, elections have on the housing market.

It’s a great question because buying or selling a home is a major decision, and it’s natural to wonder how such a major event might impact your plans.

Historically, Presidential elections have only had a small, temporary impact on the housing market. Here’s the latest on exactly what’s happened to home sales, prices, and mortgage rates throughout those time periods.

Home Sales

During the month of November, in years when the Presidential election takes place, there’s typically a slight slowdown in home sales. As Ali Wolf, Chief Economist at Zonda, explains:

“Usually, home sales are unchanged compared to a non-election year with the exception being November. In an election year, November is slower than normal.

This is mostly because some people feel uncertain and hesitant about making big decisions during such a pivotal time. However, it’s important to know this slowdown is temporary. Historically, home sales bounce back in December and continue to rise the following year.

In fact, data from the Department of Housing and Urban Development (HUD) and the National Association of Realtors (NAR) shows after nine of the last 11 Presidential elections, home sales went up the next year (see graph below):

The graph shows annual home sales going back to 1978. Each year with a Presidential election is noted in blue. The year immediately after each election is green if existing home sales rose that year. The two orange bars represent the only years when home sales decreased after an election.

Home Prices

What about home prices? Do they drop during election years? Not typically. As residential appraiser and housing analyst Ryan Lundquist puts it:

“An election year doesn’t alter the price trend that is already happening in the market.”

Home prices are pretty resilient. They generally rise year-over-year, regardless of elections. The latest data from NAR shows after seven of the last eight Presidential elections, home prices increased the following year (see graph below):

Just like the previous graph, this shows election years in blue. The only year when prices declined after an election is in orange. That was during the housing market crash, which was far from a typical year. Today’s market is different than it was back then.

All the green bars represent when prices rose the following year. So, if you’re worried about your home losing value because of an election, you can rest easy knowing prices rise after most Presidential elections.

Mortgage Rates

Mortgage rates are important because they affect how much your monthly payment will be when you buy a home. Looking at the last 11 Presidential election years, data from Freddie Mac shows mortgage rates decreased from July to November in eight of them (see chart below):

Most forecasts expect mortgage rates to ease slightly throughout the remainder of the year. If they’re right, this year will follow the trend of declining rates leading up to most previous elections. And if you’re looking to buy a home in the coming months, this could be good news, as lower rates could mean a lower monthly payment.

What This Means for You

So, what’s the big takeaway? While Presidential elections do have some impact on the housing market, the effects are usually small and temporary. As Lisa Sturtevant, Chief Economist at Bright MLS, says:

“Historically, the housing market doesn’t tend to look very different in presidential election years compared to other years.”

For most buyers and sellers, elections don’t have a major impact on their plans.

Bottom Line

While it’s natural to feel a bit uncertain during an election year, history shows the housing market remains strong and resilient. For help navigating the market, election year or not, let’s connect

Market Updates June 18, 2024

Embracing the Summer Surge – May 2024 Metro Denver Market Update

As summer approaches, the Denver Metro real estate market is buzzing with activity, driven by the three P’s: patience, preparation, and persistence. These principles are proving essential for navigating the current market dynamics, from sellers preparing competitive listings to buyers persisting to find the right homes at the right prices.

 

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

 

  • The average price for homes slightly decreased to $720,109 from last month, a modest change that reflects the market’s stabilization. This average is still up 3.31% from last year, indicating a continued appreciation in home values.
  • The average days in the MLS dropped to 27 days, improving from 30 days last month. This faster pace indicates that well-prepared homes are moving quickly as buyers are ready to act.
  • Active listings at month’s end dramatically increased to 9,159, up 31.03% from last month and a remarkable 75.19% from last year. This surge in listings is providing much-needed options for buyers and reshaping the competitive landscape for sellers.

This month, we’ve seen a significant transformation in the market’s inventory levels. Contrary to earlier predictions of flat inventory due to low mortgage rates from the pandemic era, sellers are actively listing their properties, motivated by various factors beyond just significant life changes.

 

Market Insights:

 

Inventory Boom: The leap in active listings suggests a shift towards a more balanced market where buyers have more leverage and choices, greatly enhancing their ability to find ideal properties.

Price Dynamics: While the median close price has slightly decreased, it’s important for sellers to remain competitive with their pricing strategies to attract buyers in a market that’s no longer just seller-driven.

Opportunities for Buyers: With the increase in inventory, buyers are encouraged to be selective and negotiate effectively. The expanded options mean buyers can afford to be patient and persistent in their search for the perfect home.

 

Looking Ahead:

The condo market presents unique opportunities and challenges, impacted by rising costs associated with HOA fees, assessments, and property taxes. Buyers hesitant to take on these financial burdens have affected the median close price, which has seen a decrease.

The increasing months of inventory across all price segments suggests a shift towards a more balanced market. This shift provides both challenges and opportunities, demanding strategic approaches from both buyers and sellers.

As we move further into the summer, the Denver real estate market is expected to remain active, with buyers and sellers adapting to the evolving economic landscape. Whether you’re a seller preparing your home for a competitive market or a buyer navigating through increased options, aligning your strategies with patience, preparation, and persistence will be key to success.

 

Need Help Navigating the Market?

If you’re considering buying or selling this summer, or if you need more detailed insights into specific segments of the market, I’m here to help. Contact me for personalized advice and strategies tailored to your real estate goals.

 

This update is based on information provided by the Denver Metro Association of Realtors® for the period of  May 1, 2024, through May 31, 2024, for the following counties: Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park.

Lifestyle June 13, 2024

Planning an Unforgettable Outdoor Dinner Party

Summer is the perfect time to gather with friends and family in the open air, and hosting an outdoor dinner party is a great way to catch up while enjoying the season. Planning a summer soirée might seem daunting. With a few simple touches and thoughtful food items and activities, your alfresco dinner party can come together with ease – and be a hit with your guests.

Setting Party Vibes

Subtle, strategically placed seating, lanterns, tiki torches or string lights can create a low-key festive arena. Encourage natural progression by creating pathways with your lights. You could flow from an area with cushions or blankets in cozy picnic-style seating to a large table with snacks and drinks. Then, continue the movement to a purposely open space with classic lawn games or activities. With these simple arrangements, you can transform regular yard space into an outdoor party ambiance with little to no fuss.

Simple, Savory Outdoor Food

Now the ambiance has the party vibes flowing, the food can bring in the seasonal flavor and tantalize more than taste. When thinking of outdoor treats, keep to the classic and simple ones that instantly bring the smells of summer. Bruschetta for an appetizer and quintessential grilled, marinated meats, vegetables and seafood for the main course are easy to make and delicious. For dessert, consider berries with whipped cream or a berry parfait for a light, fluffy, effortless option. You could even add a firepit and make s’mores as the evening rolls in.

Outdoor Party Entertainment for All

Complete your party with traditional entertainment that requires minimum setup. Lawn games like bowling, cornhole or badminton are easy to incorporate. For a more relaxed activity, you could set up a small outdoor movie screen. Consider showing a well-known film and encourage commentary with questions, quotes or fun facts along the way.

With a bit of creativity and simple arrangements, your outdoor dinner party can come together with ease and be remembered by friends and family as a remarkable summer get-together.

Real Estate News, Tips, & Tricks June 6, 2024

How an Agent Helps Market Your House

You’re ready to sell your house. But what do you need most from your real estate agent? Well, the National Association of Realtors (NAR) asked that very question to recent sellers and found one of the top things they were looking for is help marketing their house to potential buyers. Maybe that’s what you need the most help with too.

You expect your real estate agent to write a great description of your house for the listing and pair it with some high-quality photos. But that’s not all you’re going to get when you partner with a great agent.

They’ll do a lot more to make sure your house stand out. Here are some of the most common methods real estate agents use to market homes according to that same report from NAR (see graph below):

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So, how can you benefit from your agent using these methods?

  • Listing on the MLS – By listing your house on the MLS, it will get more visibility from other real estate agents and buyers. This could lead to more traffic, which could ultimately help you see an increase in offers and ultimately a better price.
  • Using a Yard Sign – A yard sign catches the eye of people driving or walking by. This method drums up local interest since people who live nearby might have friends or family looking to move into the area. It also prominently displays your agent’s contact information, so interested buyers can get in touch easily.
  • Having an Open House – When your agent advertises and hosts your open house, buyers see others are interested in your house, too. This competition can lead to stronger offers. An open house is also easier for you since you only need to leave once for many buyers to visit. Plus, your agent may get useful feedback on what people like or don’t like, which can help you make improvements to attract more buyers later, if needed.
  • Showcasing on Your Agent’s Website – Having your house visible on your agent’s website allows for a professional presentation of your property. Additionally, people visiting your agent’s website are more likely to be serious buyers who are ready to make a move.
  • Social Networking – Your real estate agent works hard to have a wide-ranging social media presence. Marketing your house this way allows them to reach a large audience. It also makes it easy for people to share your listing with friends and loved ones who might be interested.
  • Providing Virtual Tours – Virtual tours are extremely convenient for buyers, especially those who are relocating from out of town. This method allows them to tour anytime, day or night. It shows your agent is using the latest technology to market your house.

There are many tools that can be used to market your house. As NerdWallet sums up:

A good real estate agent will have a robust plan to promote your listing in an effort to find the right pool of buyers. Adding your home to databases of available homes called multiple listing services (MLS), open houses, 3D virtual tours, professional photography and broker tours for buyers’ agents (particularly for luxury homes) are all factors that may go into a marketing plan.”

As a seller, it’s smart to work with a creative local real estate agent who can maximize them to make sure you get as many eyes on your house as possible.

Bottom Line

When it comes to marketing your house, working with a local real estate agent has tons of benefits. If you’re ready to sell, but don’t know where to start, let’s chat.

Real Estate News, Tips, & Tricks May 30, 2024

Questions You May Have About Selling Your House

There’s no denying mortgage rates are having a big impact on today’s housing market. And that may leave you with some questions about whether it still makes sense to sell your house and make a move.

Here are three of the top questions you may be asking – and the data that helps answer them.

1. Should I Wait To Sell?

If you’re thinking about waiting to sell until after mortgage rates come down, here’s what you need to know. So are a ton of other people.

And while mortgage rates are still forecasted to come down later this year, if you wait for that to happen, you may be dealing with a lot more competition as other buyers and sellers jump back in too. As Bright MLS says:

“Even a modest drop in rates will bring both more buyers and more sellers into the market.”

That means if you wait it out, you’ll have to deal with things like prices rising faster and more multiple-offer scenarios when you buy your next home.

2. Are Buyers Still Out There?

But that doesn’t mean no one is moving right now. While some people are holding off, there are still plenty of buyers active today. And here’s the data to prove it.

The ShowingTime Showing Index is a measure of how frequently buyers are touring homes. The graph below uses that index to show buyer activity for March (the latest data available) over the past seven years:

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You can see demand has dipped some since the “unicorn years” (shown in pink). That’s in response to a lot of market factors, like higher mortgage rates, rising prices, and limited inventory. But, to really understand today’s demand, you have to compare where we are now with the last normal years in the market (2018-2019) – not the abnormal ‘unicorn’ years.

When you focus on just the blue bars, you can get an idea of how 2024 stacks up. And that gives you a whole new perspective.

Nationally, demand is still high compared to the last normal years in the housing market (2018-2019). And that means there’s still a market for your house to sell.

3. Can I Afford To Buy My Next Home?

And if you’re worried about how you’ll afford your next move with today’s rates and prices, consider this: you probably have more equity in your current home than you realize.

Homeowners have gained record amounts of equity over the past few years. And that equity can make a big difference when you buy your next home. You may even have enough to be an all-cash buyer and avoid taking out a mortgage altogether. As Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), says:

“ . . . those who have earned housing equity through home price appreciation are the current winners in today’s housing market. One-third of recent home buyers did not finance their home purchase last month—the highest share in a decade. For these buyers, interest rates may be less influential in their purchase decisions.”

Bottom Line

If you’ve had these three questions on your mind and they’ve been holding you back from selling, hopefully, it helps to have this information now. A recent survey from Realtor.com shows more than 85% of potential sellers have been considering selling for over a year. That means there are a number of sellers like you who are on the fence.

But that same survey also talked to sellers who recently decided to take the plunge and list. And 79% of those recent sellers wish they’d sold sooner.

If you want to talk more about any of these questions or need more information, let’s connect.

Market Updates May 15, 2024

Spring Blooms and Market Booms – April 2024 Metro Denver Market Update

As Denver embraces the vibrant colors of spring, the real estate market reflects a similar renewal with significant movements across the board. Optimism prevails among buyers and sellers, influenced by a noticeable shift in inventory and pricing trends.

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

 

  • The average price for homes soared to a new record of $727,700 with a 4.4% increase from last year
  • The average days in the MLS reduced sharply to just 8 days, down 27.27% from last month, indicating that properties under the right conditions are moving quickly off the market.
  • Active listings at month’s end climbed to 6,990, a significant 19.51% increase month-over-month and an impressive 51.32% surge year-over-year. This increase provides much-needed relief for buyers and more competition among sellers, reshaping the market landscape.

This month’s report signals a robust season ahead with buyers actively participating and sellers returning to the market. The notable increase in inventory, coupled with fast-moving sales, paints a picture of a resilient market where well-prepared properties are highly sought after.

 

Market Insights:

Inventory Surge: The considerable year-over-year increase in active listings offers a more diverse range of options for buyers, alleviating the pressure from previous months.

Price Adjustments: With average prices reaching new heights, the market is adjusting to a new norm, making accurate pricing more crucial than ever.

Rapid Transactions: The decrease in days on MLS reflects a market that favors well-priced and well-presented homes, with buyers ready to act swiftly.

 

Looking Ahead:

As we move deeper into spring, the upward trend in inventory is expected to continue, providing both challenges and opportunities. For sellers, setting competitive prices will be key to standing. Buyers, meanwhile, should be prepared to make decisive offers, especially on well-priced properties in desirable locations.

 

Need Guidance?

Whether you are buying, selling, or just contemplating your next move in real estate, understanding the nuances of the current market is vital. Reach out for bespoke advice and expert insights tailored to your unique situation.

 

This update is based on information provided by the Denver Metro Association of Realtors® for the period of  April 1, 2024, through April 30, 2024, for the following counties: Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park.

Real Estate News, Tips, & Tricks May 2, 2024

Foreclosure Numbers Are Nothing Like the 2008 Crash

If you’ve been keeping up with the news lately, you’ve probably come across some articles saying the number of foreclosures in today’s housing market is going up. And that may leave you feeling a bit worried about what’s ahead, especially if you owned a home during the housing crash in 2008.

The reality is, while increasing, the data shows a foreclosure crisis is not where the market is headed.

Here’s the latest information stacked against the historical data to put your mind at ease.

The Headlines Make the Increase Sound Dramatic – But It’s Not
The increase the media is calling attention to is a little bit misleading. That’s because it’s comparing the most recent numbers to a time when foreclosures were at historic lows. And that lopsided comparison is making it sound like a much bigger deal than it actually is.

Back in 2020 and 2021, there was a moratorium and forbearance program that helped millions of homeowners avoid foreclosure during challenging times. That’s why numbers for just a few years ago were so low.

Now that the moratorium has come to an end, foreclosures are resuming and that means numbers are rising. But it’s an expected increase, not a surprise, and not a cause for alarm. Just because foreclosure filings are up doesn’t mean the housing market is in trouble.

To prove that to you, let’s expand the comparison out a bit more. Specifically, we’ll go all the way back to the housing crash in 2008 – since that’s what people worry may happen again.

The graph below uses research from ATTOM, a property data provider, to show foreclosure activity has been consistently lower since the crash in 2008:

What the data shows is that things now aren’t anything like they were surrounding the housing crash. The bars in red are when there were over 1 million foreclosure filings a year. In 2023, there were roughly 357,000. That’s a big difference.

A recent article from Bankrate explains one of the reasons things aren’t like they were back then:

“In the years after the housing crash, millions of foreclosures flooded the housing market, depressing prices. That’s not the case now. Most homeowners have a comfortable equity cushion in their homes.”
Basically, foreclosure activity is nothing like it was during the crash. That’s because most homeowners today have enough equity to keep them from going into foreclosure. And that’s a really good thing for homeowners and for the market.

The reality is, the data shows a foreclosure crisis is not where the market is today, or where it’s headed.

Bottom Line
Right now, putting the data into context is more important than ever. While the housing market is experiencing an expected rise in foreclosures, it’s nowhere near the crisis levels seen when the housing bubble burst, and that won’t lead to a crash in home prices.

Real Estate News, Tips, & TricksUncategorized April 25, 2024

Make Your Move Before School Starts

Are you thinking of getting a fresh start in a new home before the back-to-school rush? You’re not alone – and it’s totally doable! With help from a savvy real estate agent, you can navigate the selling and buying process, secure favorable terms and snag the front door keys just in time for the start of the school year. Here’s how to make it happen.

Real Estate Market Considerations

Spring and summer tend to steal the spotlight for buying and selling, and with good reason. Starting your search now offers a broader selection of properties, a big pool of potential buyers and it perfectly aligns with finalizing your move during the summer break. Your real estate agent will be able to break down all the crucial local info for you – available listings, price comparisons, median home costs and how long most properties are on the market.

Evaluate Your Finances

A clear understanding of your financial situation is vital when doing anything in the real estate market. It influences the type and location of your next home and whether you should sell your current home before purchasing another. Another first step is working with a trusted lender to explore your loan options and solidify your budget. Plus, a realistic and accurate assessment of your finances can lower some of that moving stress and help guide your decision-making process.

Start to Organize

Moving can seem daunting, but it can be a relatively smooth process with the right approach. Start by decluttering your current space – sell, donate or dispose of items you no longer need. This will reduce the things you need to pack up while also prepping your home to be listed. As the move gets closer, invest in quality moving supplies like sturdy boxes, packing tape, bubble wrap and permanent markers for labeling. And if you like making checklists and crossing off to-do’s, this is your time to shine!

List Your Home For Sale

When you’re ready to put your current home up for sale, give it a walk-through and identify any necessary repairs or enhancements needed. With some assistance from your agent, you can access a network of reliable service providers and professionals who can assist with any fixes or improvements outside the scope of a DIY weekend. You should also prepare your home to appeal to a broad range of buyers through updated staging and professional photography to maximize its visibility and attractiveness.

Find Your New Home

Begin your home search by creating a wish list and ranking the key features that you consider must-haves. Check out the listings on coldwellbanker.com and other online sources, and then visit potential homes in person. As you explore different spaces, ask yourself if you can picture your family living there. Does the kitchen have all the counter space you’re looking for? Is there a big backyard for a garden and a play area? Maybe you want a low-maintenance yard and space for hobbies and storing sports equipment. But remember, things can move quickly in the spring and summer, so when you find the one, be prepared to make an offer.

Yes, you can make your move before school starts! It takes some planning and determination, but it’s well worth the effort. Establish your timeline, partner with a local real estate agent, put together a plan and unpack in your new home before the kids start next fall.