Real Estate News, Tips, & Tricks May 5, 2023

The Three Factors Affecting Home Affordability Today

There’s been a lot of focus on higher mortgage rates and how they’re creating affordability challenges for today’s homebuyers. It’s true that rates climbed dramatically since the record-low we saw during the pandemic. But home affordability is based on more than just mortgage rates – it’s determined by a combination of mortgage rates, home prices, and wages.

Considering how each one of these factors is changing gives you the full picture of home affordability today. Here’s the latest.

1. Mortgage Rates

While mortgage rates are higher than they were a year ago, they’ve hovered primarily between 6% and 7% for nearly eight months now (see graph below):

As the graph shows, mortgage rates have experienced some volatility during that time. And even a small change in mortgage rates impacts your purchasing power. That’s why it’s so important to lean on your team of real estate professionals for expert advice to stay up to date on what’s happening in the market. While it’s hard to project where mortgage rates will go from here, many experts agree they’ll likely continue to remain around 6%-7% in the immediate future. 

2. Home Prices

Over the past few years, home prices appreciated rapidly as the record-low mortgage rates we saw during the pandemic led to a surge in buyer demand. The heightened buyer demand happened while the supply of homes for sale was at record lows, and that imbalance put upward pressure on home prices. However, today’s higher mortgage rates have slowed down price appreciation.

And, the truth is, home price appreciation varies by market. Some areas are seeing slight declines while others have prices that are climbing. As Selma Hepp, Chief Economist at CoreLogicexplains:

“The divergence in home price changes across the U.S. reflects a tale of two housing markets. Declines in the West are due to the tech industry slowdown and a severe lack of affordability after decades of undersupply. The consistent gains in the Southeast and South reflect strong job markets, in-migration patterns and relative affordability due to new home construction.”

To find out what’s happening with prices in your local market, reach out to a trusted real estate agent.

3. Wages

The most positive factor in affordability right now is rising income. The graph below uses data from the Bureau of Labor Statistics (BLS) to show how wages have grown over time: 

Higher wages improve affordability because they reduce the percentage of your income it takes to pay your mortgage since you don’t have to put as much of your paycheck toward your monthly housing cost.

Home affordability comes down to a combination of rates, prices, and wages. If you have questions or want to learn more, reach out to a real estate professional who can explain what’s happening locally and how these factors work together.

Bottom Line

If you’re planning to buy a home, knowing the key factors that impact affordability is important so you can make an informed decision. To stay up to date on the latest on each, let’s connect today.

Uncategorized April 27, 2023

What’s the Difference Between a Home Inspection and an Appraisal?

If you’re planning to buy a home, an inspection is an important step in the process. It assesses the condition of the home before you finalize the transaction. It’s also a different step in the process from an appraisal, which is a professional evaluation of the market value of the home you’d like to buy. In most cases, an appraisal is ordered by the lender to confirm or verify the value of the home prior to lending a buyer money for the purchase. Here’s the breakdown of each one and why they’re both important when buying a home.

Home Inspection

Here’s the key difference between an inspection and an appraisal. Bankrate says:

“In short, while an appraisal helps you understand a home’s value, inspections help you understand a home’s condition.”

The home inspection is a way to determine the current state, safety, and condition of the home before you finalize the sale. If anything is questionable in the inspection process – like the age of the roof, the state of the HVAC system, or just about anything else – you as a buyer have the option to discuss and negotiate any potential issues or repairs with the seller before the transaction is final. Your real estate agent is a key expert to help you through this part of the process.

Home Appraisal

The National Association of Realtors (NAR) explains:

A home purchase is typically the largest investment someone will make. Protect yourself by getting your investment appraised! An appraiser will observe the property, analyze the data, and report their findings to their client. For the typical home purchase transaction, the lender usually orders the appraisal to assist in the lender’s decision to provide funds for a mortgage.”

When you apply for a mortgage, an unbiased appraisal (which is required by the lender) is the best way to confirm the value of the home based on the sale price. Regardless of what you’re willing to pay for a house, if you’ll be using a mortgage to fund your purchase, the appraisal will help make sure the bank doesn’t loan you more than what the home is worth.

This is especially critical in today’s sellers’ market where low inventory is driving an increase in bidding wars, which can push home prices upward. When sellers are in a strong position like this, they tend to believe they can set whatever price they want for their house under the assumption that competing buyers will be willing to pay more.

However, the lender will only allow the buyer to borrow based on the value of the home. This is what helps keep home prices in check. If there’s ever any confusion or discrepancy between the appraisal and the sale price, your trusted real estate professional will help you navigate any additional negotiations in the buying process.

Bottom Line

The inspection and the appraisal are critical steps when buying a home, and you don’t need to manage them by yourself. Let’s connect today so you have the expert guidance you need to navigate the entire homebuying process.

Lifestyle April 20, 2023

The Ultimate Springtime Activity Guide

This all-new 2023 guide is the hottest ticket in town – chock-full of fun, exciting and interesting things to do and see throughout Colorado.

Click each link below for quick reference guide on the latest concerts, sporting events, entertainment and outdoor fun this season.

It is a one-of-a-kind, helpful list of awesome happenings you’re sure to love. Feel free to keep this email handy or bookmark it in your favorites.

Concerts and Music

Sporting Events

Arts, Entertainment, Festivals

Recreational Activities

 

The event and agenda are subject to change, as the health and safety of attendees are our first priority. By participating in this event, you are acknowledging that you will follow all health and safety guidelines as outlined by the Centers for Disease Control and Prevention (CDC). You are also acknowledging and agree that Anywhere Advisors LLC DBA Coldwell Banker Realty (the “Company”) cannot prevent you from becoming exposed to, contracting, or spreading COVID-19 while at their premises, at a Company event or activity, or performing any action for or on behalf of Company.

Participants agree that by participating, you hereby grant Anywhere Advisors LLC the right to use your name and photo in promotional materials. Affiliated real estate agents are independent contractor sales associates, not employees. ©2023 Coldwell Banker. All Rights Reserved. Coldwell Banker and the Coldwell Banker logos are trademarks of Coldwell Banker Real Estate LLC. The Coldwell Banker® System is comprised of company owned offices which are owned by a subsidiary of Anywhere Advisors LLC and franchised offices which are independently owned and operated. The Coldwell Banker System fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Disclaimer 23YV0V_CDO_3/23

Market Updates April 17, 2023

Market Outperforms Expectations – April 2023 Metro Denver Market Update

As the market slowed down in the second half of 2022, many predicted a calmer spring selling season this year, but continued low inventory and a jump in buyer demand in March resulted in a stronger-than-expected start to the season.

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

  • The average price for homes was up 1% compared to the previous month, but down 5% from March 2022.
  • The average days in the MLS were down 23% from the prior month, but up 208% from a year ago.
  • Active listings at month end were up 20% from January and 103% from this time last year.

 

The number of homes for sale that have lowered their price has decreased from 58% in November 2022 to 37% in March. For sellers whose homes are in turnkey condition and priced right, the bidding war environment has returned. The good news for buyers is that, compared to a year ago, the average home price is down, and homes are staying on the market longer. This allows buyers options – be ready to compete for a newly listed, move-in-ready home or negotiate favorable terms for a home that has been sitting on the market.

 

If you need any advice or assistance navigating our real estate market, contact me today at 303.710.5817 ladawn.sperling@cbrealty.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 March 1, 2023, through March 31, 2023, for the following counties: Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park.

Real Estate News, Tips, & Tricks April 13, 2023

Why Aren’t Home Prices Crashing?

There have been a lot of shifts in the housing market recently. Mortgage rates rose dramatically last year, impacting many people’s ability to buy a home. And after several years of rapid price appreciation, home prices finally peaked last summer. These changes led to a rise in headlines saying prices would end up crashing.

Even though we’re no longer seeing the buyer frenzy that drove home values up during the pandemic, prices have been relatively flat at the national level. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), doesn’t expect that to change:

Home prices will be steady in most parts of the country with a minor change in the national median home price.”

You might think sellers would have to lower prices to attract buyers in today’s market, and that’s part of why some may have been waiting for prices to come crashing down. But there’s another factor at play – low inventory. And according to Yun, that’s limiting just how low prices will go:

“We simply don’t have enough inventory. Will some markets see a price decline? Yes. But with the supply not being there, the repeat of a 30 percent price decline is highly, highly unlikely.”

As you can see in the graph below, we’ve been at or near record-low inventory levels for a few years now.

That lack of available homes on the market is putting upward pressure on prices. Bankrate puts it like this:

“This ongoing lack of inventory explains why many buyers still have little choice but to bid up prices. And it also indicates that the supply-and-demand equation simply won’t allow a price crash in the near future.”

If more homes don’t come to the market, a lack of supply will keep prices from crashing, and, according to industry expert Rick Sharga, inventory isn’t likely to rise significantly this year:

“I believe that we’re likely to see low inventory continue to vex the housing market throughout 2023.”

Sellers are under no pressure to move since they have plenty of equity right now. That equity acts as a cushion for homeowners, lowering the chances of distressed sales like foreclosures and short sales. And with many homeowners locked into low mortgage rates, that equity cushion isn’t going anywhere soon.

With so few homes available for sale today, it’s important to work with a trusted real estate agent who understands your local area and can navigate the current market volatility.

Bottom Line

A lot of people expected prices would crash this year thanks to low buyer demand, but that isn’t happening. Why? There aren’t enough homes for sale. If you’re thinking about moving this spring, let’s connect.

Lifestyle April 6, 2023

Wallpaper With Personality

Wallpaper is back. And you’ll be glad it is – with all the exciting new colors, patterns and textures available to choose from. Today, stylish wallpaper is being used in small spaces, such as powder rooms and mudrooms, or as a beautiful accent, providing pops of color that brighten up an area or give it a more customized look.

Wallpaper choices range from traditional floral patterns to modern art deco designs, with patterns ranging from subdued to bold. Today’s wallpaper is also much easier to apply and remove, so you can create a big impact without the hassle and mess. So, where do you begin? It depends on the look you’re going for.

Create Visual Interest With Texture

If your space needs some personality, textured wallpaper may be the answer. Its three-dimensional design mimics just about any material, giving the room an unexpected visual element. Faux stone or wood adds rustic charm. Floral or scroll patterns evoke an antique or vintage vibe. Many textured papers are even paintable, so if you ever want to change things up, you can give your walls new life with a coat of paint.

Add a Touch of Glow With Metallics

For a glamorous feel, metallic wallpaper is an elegant choice. Your space will sparkle with movement as gold, silver and black elements reflect the light. Some metallic papers are also textured, producing shadowed accents that add depth and intrigue.

Soften Up With Fabric

Fabric or textile wall coverings are among the oldest types of wall decoration and can complement a bedroom’s soft furnishings, giving it a luxurious feel. Found in both manmade and natural fibers, the paper mimics velvet, silk, linen or cotton. These materials are also breathable and porous, making them less susceptible to mold spores. However, keep in mind that fabric wallpaper can be affected by moisture and extreme heat.

Go Green With Naturals

Newer wall treatments made from environmentally friendly, natural products such as bamboo or grass cloth have increased in popularity. Certain brands are handcrafted and create quite a conversation piece, capitalizing on the material’s innate color and texture variations.

Wow Them With a Mural

On a feature wall, a mural makes a bold a statement. It can help bring the beauty of the outdoors inside, transforming a room with dramatic floral arrangements, sweeping landscapes, lush forests and a variety of other picturesque nature-inspired scenes.

Find Your Inner Child With DIY Options

If you’re looking to create a playful, interactive space, coloring wallpaper is just the ticket. It’s not only an ideal addition to a child’s room, but also adds a fun element to any entertaining space. Just like coloring books, this wallpaper comes in a plethora of themes and can be minimal or highly detailed in design. Most often in peel-and-stick form, you can easily remove it, apply a new pattern and start all over again. Just be sure to take pictures of your masterpiece before tearing it down.

Feeling timid about jumping on the wallpaper bandwagon? Consider starting with a small project. Give your lamps some personality by applying wallpaper around the edges of the shades. Wallpaper the top of a side table that isn’t getting much use. Or paper the back wall of a bookcase or curio cabinet to introduce surprise depth. No matter the project, wallpaper has the unique ability to create a space in your home that’s every bit as distinctive as you are.

Real Estate News, Tips, & TricksUncategorized March 30, 2023

A Smaller Home Could Be Your Best Option

Many people are reaching the point in their lives when they need to decide where they want to live when they retire. If you’re a homeowner approaching this stage, you have several options to explore. Jessica Lautz, Deputy Chief Economist and Vice President of Research at the National Association of Realtors (NAR), says:

“As we see the transition of the large Baby Boomer generation age into retirement, it will be interesting to see if they move in with their Millennial and Gen Z children or if they stay put in their own homes.”

 

Lautz lists two options: move into a multigenerational home with loved ones, or stay in your current house. Multigenerational living is rising in popularity, but it isn’t an option for everyone. And staying put may fit fewer and fewer of your needs. There’s a third option though, and for some, it’s the best one: downsizing.

 

When you sell your house and purchase a smaller one, it’s known as downsizing. Sometimes smaller homes are more suited to your changing needs, and moving means you can also land in your ideal location.

 

In addition to the personal benefits, downsizing might be more cost effective, too. The New York Times (NYT) shares:

“Many downsizers expect to improve their retirement income stream if their new home costs less than what their old house sells for. Lower utility costs, insurance and property taxes — as well as investment returns on the proceeds — can also improve the bottom line.”

 

Being in a strong financial position is one of the most important parts of retirement, and downsizing can make a big difference.

A key part of why downsizing is still cost effective today, even when mortgage rates are higher than they were a year ago, is the record-high level of equity homeowners have. Leveraging your equity when you downsize can lower or maybe even eliminate the mortgage payment on your next home.

So, not only is the upkeep of a smaller home likely more affordable, but leveraging your home equity could make a big difference too. Your local real estate advisor is the best resource to help you understand how much equity you may have in your current home and what options it can provide for your next move.

Bottom Line

If you’re a homeowner getting ready for retirement, part of that transition likely includes deciding where you’ll live. Let’s connect so you can understand your options and explore your downsizing opportunities.

Lifestyle March 23, 2023

Guest Room Tips for the Warmest of Welcomes

Opening your house to guests is one of the many joys of being a homeowner. You can make guests feel welcomed and comfortable by following these simple tips.

Create the Ultimate “Flex” Room

Flexibility is key in getting the most out of your guest quarters. If you host frequently, the room will likely be used by a wide variety of people – from your high school bestie visiting with her kids on spring break to Great Auntie Edna who’s there for the holidays to your nephew who’s in town to tour college campuses. If you expect to holiday children or multiple guests at the same time, consider investing in bunk beds or at least twin beds to offer several possible combinations of sleeping arrangements. The important thing is to plan ahead and anticipate who you may be hosting. Keep this in mind when decorating the space as well. Selecting a neutral color palette (step away from that ruffled, hot pink comforter!) will ensure that everyone feels content in their home away from home.

Add Some Local Flavor

Showcase your local community by displaying the highlights or most popular features of your city. Display a coffee table book about its history or attractions. Framed postcards or other artwork that show the best and coolest spots around town will not only dress up the space, but also give visitors a little taste of what they might see and do during their stay. Go one step further and stock the dresser drawer with brochures or travel magazines they can browse through to gather ideas about an itinerary for their vacation.

Walk a Mile in Their Shoes

Want to really understand what your visitors might need? Spend a night in your guest room with suitcase in tow, and you’ll discover all sorts of little niceties that would make a difference to your guests: handy hooks for wet towels, extra blankets in the bureau, plenty of empty hangers in the closet, a convenient luggage rack, drink coasters for the nightstand, an alarm clock or even a collection of short stories for nighttime reading. Endeavoring to understand their needs from their perspective will help you play the role of the perfect host.

Feel confident when you lay out the welcome mat that those who cross your threshold will enjoy the time spent in your home. Refer to these tips when preparing for overnight guests and you’ll be sure to win points as a first-rate host.

Real Estate News, Tips, & Tricks March 16, 2023

One Major Benefit of Investing in a Home

One of the many reasons to buy a home is that it’s a major way to build wealth and gain financial stability. According to Freddie Mac:

“Building equity through your monthly principal payments and appreciation is a critical part of homeownership that can help you create financial stability.”

With spring approaching, now’s a great time to consider if buying a home makes sense for you. The best way to figure that out is to talk with a trusted real estate professional.

The Largest Part of Most Homeowners’ Net Worth Is Their Equity

You may be surprised to learn just how much of a homeowner’s net worth actually comes from owning their home. The National Association of Realtors (NAR) shares:

“Homeownership is the largest source of wealth among families, with the median value of a primary residence worth about ten times the median value of financial assets held by families. Housing wealth (home equity or net worth) gains are built up through price appreciation and by paying off the mortgage.”

In other words, home equity does more to build the average household’s wealth than anything else. And according to data from First American, this holds true across different income levels (see graph below):

 

One Major Benefit of Investing in a Home | Simplifying The MarketBottom Line

One of the biggest benefits of owning a home, regardless of your income level, is that it provides financial stability and an avenue to build wealth. Let’s connect today so you can start investing in homeownership.

Lifestyle March 9, 2023

Home Design Trends for 2023

In recent months, the world has re-energized, and hope has bloomed in ways that many had not experienced since before this decade began. In contrast, shifting economic and global conditions have awakened and heightened certain sensitivities. This age of extremes has given way to a curious range of design ideas. From eclectic and new to natural and nostalgic, here are some of the most notable home design features and themes we expect to see in the year ahead:

Bring the vacation to you. After nearly two years of limited travel, a sense of wanderlust has arisen for many. Yet, rather than actually traveling to fulfill this urge, savvy decorators have opted instead to create an escape within the residence. With a continued desire to revel in the comforts of home, many have embraced the idea that venturing out truly isn’t necessary to achieve that breezy, revitalizing experience. Using warm wood tones, bright light and airy linen curtains and furnishings, abodes will have rooms – both indoors and out – transformed in the style of beachy resort destinations and dreamy European villas.

Connect to nature and the present. People are recognizing the need to be more present and peaceful in the moment and are erring toward pragmatic sensibilities in lifestyle and functionality. Fostering security and balance continue to be key, but with an emphasis on the senses – which translates into the use of natural textiles and rare materials in home décor such as crude clay, terra-cotta, handcrafted finishing’s and glazed tiles made from organic materials. Color schemes are inspired by nature and the desert theme has gained in appeal, incorporating gentle colors such as beiges and greys. The trend additionally translates to comforting, tactile interior designs that blend organic shapes, arches and irregular forms to create a cozy, warm aesthetic. Such biophilic design will continue as a trend. In fact, you may even consider adding a full-sized tree to the kitchen – olive trees are favored – to add an impressive fixture and create a Mediterranean or rustic vibe.

Embrace opulence and idiosyncrasy. In a distinctly disparate tone, an “anti-neutral renaissance” has simultaneously gained traction, influencing home interiors. For those on this opposite end of the spectrum, minimalist fatigue has set in, driving the desire for extravagance and affecting a mood for glamour. A major theme for the new year is celebrating individuality, so unique touches, unconventional decorative fabrics and elements will reign. Think luxe jewel tones, whimsical details and embellishments galore. Expect striking visual effects in homes such as curvy and geometric shapes, fanciful rugs, monochromatic rooms in vivid shades like baby pink – as well as two-toned cabinets in contrasting colors. Emerald green, cobalt and rust are expected to be top interior colors in the coming year. Hellenism and antiquity will also see a surge in popularity, so Corinthian-style furnishings, statues and wallpaper motifs will be highly sought after.

Statement stone. Combining aspects of the two aforementioned trends, another desirable style in 2023 will be the use of unexpected stones in surprising ways. Anticipate colorful marble in creative reds, corals, deep blues and jewel tones. Exotic types of porcelain, soapstone and granite will be used throughout the home in a variety of ways: Subtly – as serving platters, side tables or nightstands – and dramatically – as accent walls, tables, bathtubs or countertops that transition into bold backsplashes – to incorporate as standalone art or a stunning focal point.

Whether you feel like a daredevil or crave simplicity, the coming year boasts a menu of delights to fulfill the moods and needs of many appetites. We hope you’re inspired to customize and love your residence more than ever in 2023.