Thinking about moving to Parker, Colorado in 2025?

Take a look at what experts are predicting for mortgage interest rates over the next year. Mortgage rates are projected to come down. I think we might see a 1% reduction. And, because of the lower rates, we expect more homes to sell. With this increased activity and low inventory, prices will continue to go up. So, what do we recommend for anyone considering purchasing a home here in Parker, Colorado or the surrounding communities. Don't wait. A 1% interest rate reduction most likely will not offset the cost of a more expensive home. And, don't forget. If rates really do fall significantly, you will be able to refinance to the lower rate.

This is a good article regarding the good supply of luxury homes in today's market.

This is written from a national perspective, but it certainly holds true here in Parker, Colorado and the Denver Metro Area. I would agree that the prices are holding firm and that these homes remain a great investment. Something that I would like to discuss is the opportunity available in the existing luxury home market. For years I have been shocked at what luxury home buyers are willing to pay for new construction as opposed to existing luxury homes. I get it. New has all the latest design and technology. And, takes away the worry of things breaking. And, maybe most important, everything is done. No updates or remodeling. But, boy is there a price to pay. In Parker, Colorado, we always have a great selection of luxury homes priced from $1,000,000 to $2,500,000. Some, ready to move into. Some that need updating (mainly cosmetic). Once these homes are updated, they will be much nicer than most of the new homes at far greater prices. And, they always have superior lot locations, lot sizes and lot landscaping. Here is a link to the current inventory of homes from $1,000,000 to $2,500,000 for sale here in Parker, Colorado.

https://www.parkercoloradohomecenter.com/search/results/?city=Parker&zip=all&neighborhood=Butterfield&neighborhood=High+Prairie+Farms&neighborhood=Pinery&neighborhood=Pinery+High+Prairie+Farms&neighborhood=Pradera&neighborhood=Rancho+Montecito&neighborhood=Spirit+Ridge&neighborhood=THE+PINERY&neighborhood=The+Pinery&neighborhood=The+Timbers+at+The+Pinery&neighborhood=Timbers+at+The+Pinery&neighborhood=Timbers+at+the+Pinery&type=res&type=con&list_price_min=1000000&list_price_max=2500000&short_sale=all&beds_min=all&beds_max=all&baths_min=all&area_min=all&amenities=all&lot_size_min=all&year_built_min=all&style=all&school_district=all&basement=all&basement_finished=all&elementary_school=all&middle_school=all&high_school=all&exterior_features=all&garage_spaces_min=all&view=all&horse_property=all&fee_includes=all

The Latest on the Luxury Home Market

Luxury living is about more than just stunning views and cutting-edge smart home technology—it's about elevating your lifestyle. And if you're in the market for a million-dollar home, now is an excellent time to explore the thriving luxury market. Here's why.

The Number of Luxury Homes Is Growing

The top of the market, or luxury homes, can mean different things depending on where you live. But in general, these are homes that are in the top 5% price range in any area. According to a recent report from Redfin, the average value of those homes has risen to over one million dollars:

“The median sale price for U.S. luxury homes, defined as the top 5% of listings, rose 9% year-over-year to a record $1.18 million during the second quarter.”

That same report goes on to show the percentage of homes valued at a million dollars or more has risen to an all-time high (see graph below):

That means, if this is your desired price range, you have options to choose from, each with different features and styles.

Whether you're looking for the latest designs, like modern kitchens with high-end appliances, exclusive amenities, or enhanced privacy and security, the market that fits this lifestyle is growing.

Your Luxury Home Is an Investment

In addition, a luxury home could help you build significant long-term wealth. As the Redfin quote mentioned earlier says, luxury home prices are rising. That may be the reason there are a lot of people investing in luxury real estate right now. According to the August Luxury Market Report:

“By the end of July, the overall growth in the volume of sales in 2024 stood at 14.82% for single-family homes and 11.35% for attached homes compared to the same period in 2023.”

Bottom Line

With more million-dollar homes on the market and prices going up, you have luxury options to choose from and a chance to build significant long-term wealth. Want to see the best homes in our area? Let’s get in touch today.

Homes For Sale In Parker Colorado

I sense a change in the market here in Parker, Colorado. 

Here in Parker, we have 325 homes listed for sale that are priced from $600,000 to $1,000,000.  Many, if not most of these homes, are priced to sell.   Homes Currently For Sale In Parker Colorado

Let me say right up front, this is my opinion based on a "gut feeling".  I haven't done any fancy analysis.  Just day to day observance of the real estate market here in Parker and other surrounding towns here in Colorado.

Prices have softened.  No question about it.  We're seeing more price reductions than I can remember for a long time back.  And, significant price reductions of $25,000 to $50,000.  Some of this is due to initial over pricing.  Sellers expecting too much and real estate agents letting the sellers make the pricing decisions.

So, what does this mean?  This is quite possibly the best buyer's market that we've had in many years.  If it were not for the higher mortgage interest rates, homes would be selling at a record pace.  But, rates are high and buyers are reluctant to "pull the trigger".  Big mistake.  Rates are expected to fall over the next months and year.  If they do, these current home prices are going to spike.  The smart thing to do is buy at today's prices and refinance at future interest rate prices.

If you're thinking about selling your home in Parker, Colorado, you need to do your "due diligence" in choosing the real estate team to work with.  Of course, there's nothing better than a strong referral from someone you trust.  But, in addition to the referral, do your own research.  The first thing to do is go to the Internet and do some Google searches (i.e. Parker real estate agents, Parker Realtors, Parker listing agents).  Go to recommended agent websites.  Review all of the pertinent information that they've included on their site.  And, most important, make sure they have "Google Reviews".  Read the reviews to see what their clients have to say about them.  

Finally, set appointments with your favorites and have them meet with you at your home.  After doing all of these things, you should be able to make a wise decision regarding who to list your home with.

If you would like to check us out, here is a link to our Google Reviews.

Parker Colorado Home Center Google Reviews

And, a link to our website.

Parker Colorado Home Center

How The Economy Affects Interest Rates

This is a good article about how the economy affects interest rates.

Who knows for sure, but it certainly looks like we're headed toward slightly lower rates. If you're a potential home buyer, I would recommend that you seriously consider purchasing a home before next spring. My guess is that a significant decrease in mortgage rates (possibly by next spring), will cause a spike in home prices. If you can lock in today's home prices, then you can refinance your mortgage next year, if rates go down. As I have said many times, if rates don't go down or go up, you'll be darn glad you have today's rates.

How the Economy Impacts Mortgage Rates

As someone who’s thinking about buying or selling a home, you’re probably paying close attention to mortgage rates – and wondering what's ahead.

One thing that can affect mortgage rates is the Federal Funds Rate, which influences how much it costs banks to borrow money from each other. While the Federal Reserve (the Fed) doesn’t directly control mortgage rates, they do control the Federal Funds Rate.

The relationship between the two is why people have been watching closely to see when the Fed might lower the Federal Funds Rate. Whenever they do, that’ll put downward pressure on mortgage rates. The Fed meets next week, and three of the most important metrics they’ll look at as they make their decision are:

1. The Rate of Inflation
2. How Many Jobs the Economy Is Adding
3. The Unemployment Rate

Here’s the latest data on all three.

1. The Rate of Inflation

You’ve probably heard a lot about inflation over the past year or two – and you’ve likely felt it whenever you’ve gone to buy just about anything. That’s because high inflation means prices have been going up quickly.

The Fed has stated its goal is to get the rate of inflation back down to 2%. Right now, it’s still higher than that, but moving in the right direction (see graph below):

2. How Many Jobs the Economy Is Adding

The Fed is also watching how many new jobs are created each month. They want to see job growth slow down consistently before taking any action on the Federal Funds Rate. If fewer jobs are created, it means the economy is still strong but cooling a bit – which is their goal. That appears to be exactly what’s happening now. Inman says:

“. . . the Bureau of Labor Statistics reported that employers added fewer jobs in April and May than previously thought and that hiring by private companies was sluggish in June.”

So, while employers are still adding jobs, they’re not adding as many as before. That’s an indicator the economy is slowing down after being overheated for quite some time. This is an encouraging trend for the Fed to see.

3. The Unemployment Rate

The unemployment rate is the percentage of people who want to work but can’t find jobs. So, a low rate means a lot of Americans are employed. That’s a good thing for many people.

But it can also lead to higher inflation because more people working means more spending – which drives up prices. Right now, the unemployment rate is low, but it’s been rising slowly over the past few months (see graph below):

It may seem harsh, but a consistently rising unemployment rate is something the Fed needs to see before deciding to cut the Federal Funds Rate. That’s because a higher unemployment rate would mean reduced spending, and that would help get inflation back under control.

What Does This Mean Moving Forward?

While mortgage rates are going to continue to be volatile in the days and months ahead, these are signs the economy is headed in the direction the Fed wants to see. But even with that, it’s unlikely they'll cut the Federal Funds Rate when they meet next week. Jerome Powell, Chair of the Federal Reserve, recently said:

“We want to be more confident that inflation is moving sustainably down toward 2% before we start the process of reducing or loosening policy.”

Basically, we’re seeing the first signs now, but they need more data and more time to feel confident that this is a consistent trend. Assuming that direction continues, according to the CME FedWatch Tool, experts say there’s a projected 96.1% chance the Fed will lower the Federal Funds Rate at their September meeting.

Remember, the Fed doesn’t directly set mortgage rates. It’s just that whenever they decide to cut the Federal Funds Rate, mortgage rates should respond.

Of course, the timing of when the Fed takes action could change because of new economic reports, world events, and other factors. That’s why it's usually not a good idea to try to time the market.

Bottom Line

Recent economic data may signal that hope is on the horizon for mortgage rates. Let’s connect so you have an expert to keep you up to date on the latest trends and what they mean for you.

It would take a major recession for the return of foreclosures here in Parker, Colorado and the rest of Colorado.  First of all, the very strict lending requirements that have been in effect since 2008, has resulted in very stable home owners.  Also, we've seen steady appreciation.  Almost everyone, has a lot of equity.  Only home owners with extreme problems would ever get in a position to lose their home to foreclosure.  This is a good article going into more detail.

Why a Foreclosure Wave Isn’t on the Horizon

Even though data shows inflation is cooling, a lot of people are still feeling the pinch on their wallets. And those high costs on everything from gas to groceries are fueling unnecessary concerns that more people are going to have trouble making their mortgage payments. But, does that mean there’s a big wave of foreclosures coming?

Here's a look at why the data and the experts say that’s not going to happen.

There Aren’t Many Homeowners Who Are Seriously Behind on Their Mortgages

One of the main reasons there were so many foreclosures during the last housing crash was because relaxed lending standards made it easy for people to take out mortgages, even when they couldn’t show they’d be able to pay them back. At that time, lenders weren’t being as strict when looking at applicant credit scores, income levels, employment status, and debt-to-income ratio.

But since then, lending standards have gotten a whole lot tighter. Lenders became much more diligent when assessing applicants for home loans. And that means we’re seeing more qualified buyers who have less of a risk of defaulting on their loans.

That’s why data from Freddie Mac and Fannie Mae shows the number of homeowners who are seriously behind on their mortgage payments (known in the industry as delinquencies) has been declining for quite some time. Take a look at the graph below:  

What this means is that, not only are borrowers more qualified, but they’re also finding ways to navigate through their challenges, exploring their repayment options, or maybe even using the record amount of equity they have to sell and avoid foreclosure entirely.

The Answer Is: There’s No Sign of a Wave Coming

Before there can be a significant rise in foreclosures, the number of people who can’t make their mortgage payments would need to rise significantly. But, since so many buyers are making their payments today and homeowners have so much equity built up, a wave of foreclosures isn’t likely.

Take it from Bill McBride of Calculated Risk – an expert on the housing market who, after closely following the data and market leading up to the crash, was able to see the foreclosure crisis coming in 2008. McBride says:

“We will NOT see a surge in foreclosures that would significantly impact house prices (as happened following the housing bubble) for two key reasons: 1) mortgage lending has been solid, and 2) most homeowners have substantial equity in their homes.”

Bottom Line

If you’re worried about a potential foreclosure crisis, know there’s nothing in the data to suggest that’ll happen. Buyers are more qualified now, and that’s one reason why they’re not falling seriously behind on their mortgage payments. 

If you're considering selling your home here in Parker, Colorado, this is a great article to read.

This article is emphasizing the importance of making your home as "move in ready" as possible. Not everyone is in a financial position to do this. In those cases, we always recommend getting the home as clean as possible and pricing it "to sell". But, for those sellers that have the financial ability to make upgrades, it makes a huge difference. There is the obvious reason. It's just a nicer home when it's updated. But, it goes far beyond that. In today's market, most buyers are stretching as far as they can to purchase a home. With the cost of homes and the high interest rates, they don't have any funds left over after closing. There's nothing left to pay for a paint job, new carpet, new hardwood flooring, appliances, etc.. If it's not already in the home, they aren't going to buy it. Bottom line. Updating makes a difference and will get a better return.

Why Fixing Up Your House Can Help It Sell Faster

 If you’re thinking about selling your house, you should know there are buyers who are ready and able to pay today’s high prices. But they want a home that’s move-in ready. A recent press release from Redfin explains:

“Buyers are still out there and they’re willing to pay today’s high prices, but only if the house is in really good shape. They don’t want to spend extra money on paint or new appliances.”

It makes sense when you think about it. They’re having to pay a lot of money for a house in today’s market. That means they may not be able to easily afford upgrades after they move in. So, if your home is outdated or needs some work, buyers might pass it by or offer a lower price than you were hoping for.

And there are a lot of homes that need upgrades right now. Millions are entering their prime remodel years, meaning they’re between 20 and 39 years old. Maybe yours is one of them. According to John Burns Research and Consulting (JBRC), the number of homes in their prime remodel years is high and growing (see graph below):

If your house falls into this category, it's important to consider making selective updates to help it appeal to buyers, so it sells faster. But how do you know where to spend your time and money?

Why You Need a Real Estate Agent

By working with a local real estate agent to be strategic about the improvements you make, you can be sure you’re making a smart investment. Put simply, not all upgrades are worth the cost. As Bankrate says:

“Before you spend money on costly upgrades, be sure the changes you make will have a high return on investment. It doesn’t make sense to install new granite countertops, for example, if you only stand to break even on them, or even lose money.”

 And, as that same Bankrate article goes on to say, that’s where a local real estate agent comes in:

“. . . a good real estate agent will know what local buyers expect and can help you decide what needs doing and what doesn’t.”

Your agent will know what buyers in your area are looking for and what they're willing to pay for it. By working together, you can avoid spending money on upgrades that won't pay off. Instead, they’ll fill you in on which changes will make your house more appealing and valuable.

Bottom Line

Selling a house right now requires more than just putting up a For Sale sign. You need to make sure it’s in good condition to attract buyers who are willing to pay today’s high prices.

The way to do that is by making smart improvements that will give you the best return on your investment. Let’s work together so you know what buyers are looking for and what your house needs before selling. 

Looking Glass New Home Community

Parker Colorado

Enjoy our aerial video of one of Parker Colorado's newest communities.  Looking Glass is a new development on the southwest side of Parker.  The home builders represented are Lennar, DR Horton and Taylor Morrison.