Parker Colorado Real Estate News

I have mixed feelings and opinions about this article. The purpose of the article is to point out the affordability of a new home compared to a resale home. In my humble opinion, a new home is more affordable because you're getting less for your money. Not only are the new homes coming in smaller, they are also being built on smaller lots. In fact, it's the land cost that is the big culprit. That's why you will notice that the bigger the house, the better value. There is a limit to how small these homes can go. But, the lot cost continues to increase.

We are not bashing new homes. We love new homes and work with all of the builders. But, there is a price to pay. Much higher price per square feet and much higher real estate taxes. We recommend that you consider both.

Builders Are Building Smaller Homes

There’s no arguing it, affordability is still tight. And if you’re trying to buy a home, that may mean you need to look at smaller houses to find one that’s still in your budget. But there is a silver lining: builders are focused on building these smaller homes right now and they’re offering incentives. And that can help give you more options that fit the bill.

Newly Built Homes Are Trending Smaller

During the pandemic, homebuyers wanted (and could afford) larger homes – and builders delivered. They focused on homes that were bigger, so people had more space for things like working from home, having a home gym, bonus rooms for virtual school, and more.

But with the affordability challenges buyers are facing today, builders are increasingly shifting their attention to bringing smaller single-family homes to the market. The graph below uses data from the Census to show how this trend has evolved over the last few years:

So, why the shift to less square footage? It’s simple. Builders want to build what they know will sell. Basically, they focus on where the demand is strongest. And once mortgage rates started climbing and consumers felt the challenges of affordability creeping in, it became clear there was (and is) a very real need for smaller homes. As the National Association of Home Builders (NAHB) explains:

“After a brief increase during the post-covid building boom, home size is trending lower and will likely continue to do so as housing affordability remains constrained.”

A recent article in the Real Deal says this about how this helps buyers:

“Even a slightly smaller home can be thousands of dollars cheaper — for both builders and buyers. . . In response to affordability challenges, major homebuilders are shifting priorities away from the big ticket homes and towards the cheaper set.”

What This Means for You

If you’re having a hard time finding something in your budget, it may help to look at smaller homes. And, if you consider new builds specifically, you may find a few other fringe benefits that can help on the affordability front – like price reductions or mortgage rate buy-downs. As NAHB says:

“More than one-third of builders cut home prices in 2023. NAHB expects builders to continue offering smaller homes and more affordable designs as housing affordability remains a barrier to homeownership.”

As Charlie Bilello, Chief Market Strategist, at Creative Planning, explains:

“Homebuilders are adapting to the lowest affordability on record by building smaller homes and offering more incentives/price cuts. The median square footage of a new single-family home in the US has moved down to its lowest level since 2010.”

If you explore these options, you’ll also get brand new everything, enjoy a house with fewer maintenance needs, and some of the latest features available. That’s worth looking into, right? 

Bottom Line

Builders building smaller homes can give you more affordable options at a time when you may really need it. If you’re hoping to buy a home soon, let’s connect to look at what’s available in our area.

This perfect Colorado retreat can be yours! Home is situated on 3+ acres at one of the highest points in Parker, which affords Peak to Peak mountain views from many rooms in the house and the expansive deck. The home is surrounded by open space and trees and at the end of a cul de sac. Privacy, views, quiet with wild life sightings and then the gorgeous home! Home is 6808 of finished space, 6 bedrooms, with all the amenities a buyer would desire. Beautiful hardwood floors and a bright, open feel greet you as you enter. The great room has tall vaulted ceilings and a stone fireplace and opens to the kitchen with a large sit at island and those VIEWS! The laundry on the main level is more than a laundry room. Lots of space with an island, full refrigerator and ample space for projects, back kitchen for caterers or many other purposes. Also there is a mud room. There is a well equipped home office on the main level and a bedroom and 2 baths as well. The primary bedroom suite and 2 other bedrooms are upstairs. Primary bedroom has its own deck that overlooks the mountain views and a separate sitting area with fireplace as well. You might not ever want to leave! The walk out basement is an entertainers delight with an expansive bar and wine closet. This is open to a huge family room that walks out to the lower patio and also has those wonderful mountain views. Basement also has 2 more bedrooms, both with baths and a home theater room. Enjoy neighborhood trails, viewing from the deck of fireworks displays all along the front range and a lifestyle that very few have the privilege of enjoying! All this very close to downtown Parker, with restaurants, and shops and lots of downtown activities. Be sure to check out the 3D walk thru video and aerials. Just click the video icon to view

This is an excellent infographic about why it's important to use an experienced real estate agent when buying or selling a home. The only thing I would add is to always work with an agent that actually specializes in the area you're looking in. That usually means an agent that actually lives in that area. The name of our company is the Parker Colorado Home Center At RE/MAX Alliance. We named it that because we concentrate on Parker and her surrounding communities. Having lived and worked here for the past 37 years, we think we're pretty expert on all of the real estate here in Parker.

Top 5 Reasons To Hire an Agent When Buying a Home [INFOGRAPHIC]

Some Highlights

• Hiring an agent when buying a home helps you understand the buying process and the local market.
• They’ll also go over contracts and fine print with you, so you understand what you're agreeing to. Plus, they're good at negotiating, making sure you get the best deal.
• Expert advice from a trusted real estate professional is priceless. Let’s connect today.

I like this article. Finally, someone is recommending going in with another person to buy a home. This article suggests three things to consider when buying one's first home. First of all, expand the search area. I would agree with that. Don't be closed minded regarding areas. There are probably areas that are awesome, that you're not aware of. Also, be sure to check out all of the "down payment assistant" programs. You might be surprised at how good they are. And, finally, going in with a friend or relative to purchase your home. There are plenty homes out there that will work for those that are going together to buy a home.

We can certainly help you. We know the areas, the down payment assistant programs and the homes that will work. Call us at 303.981.7339.

3 Helpful Tips for First-Time Homebuyers [INFOGRAPHIC]

Some Highlights

• Trying to buy your first home? If you’re worried about affordability today or the limited number of homes for sale, these tips can help.
• Look into homebuyer programs, expand your search area, and consider a multi-generational home.
• Let’s connect so you have an expert on your side to help you make your dream a reality.

This is a very good article regarding current and future home prices. I concur with all of it. Since 1980, home prices have increased every year except during the recession of 2008. Things are totally different in today's market. The economy is strong and there is a severe housing shortage. The only thing holding back a housing explosion is mortgage interest rates. And, even today's rates have not stopped many buyers from moving forward. A minor drop in rates (below 6%) will result in a huge surge in activity. So, bottom line. Prices are not going down. They are going up. Do not wait to buy.

Your Home Is a Powerful Investment

Going into 2023, there was a lot of talk about a possible recession that would cause the housing market to crash. Some in the media were even forecasting home prices would drop by as much as 10-20%—and that might have made you feel a bit unsure about buying a home.

But here’s what actually happened: home prices went up more than usual. Brian D. Luke, Head of Commodities at S&P Dow Jones Indices, explains:

“Looking back at the year, 2023 appears to have exceeded average annual home price gains over the past 35 years.”

To put last year’s growth into context, the graph below uses data from Freddie Mac on how home prices have changed each year going back to 1980. The dotted line shows the long-term average for appreciation:

The big takeaway? Home prices almost always go up.

As an article from Forbes says:

“. . . the U.S. real estate market has a long and reliable history of increasing in value over time.”

In fact, since 1980, the only time home prices dropped was during the housing market crash (shown in red in the graph above). Fortunately, the market today isn’t like it was in 2008. For starters, there aren’t enough available homes to meet buyer demand right now. On top of that, homeowners have a tremendous amount of equity, so they’re on much stronger footing than they were back then. That means there won’t be a wave of foreclosures that causes prices to fall.

The fact that home values went up every single year except those four in red is why owning a home can be one of the smartest moves you can make. When you’re a homeowner, you own something that typically becomes more valuable over time. And as your home’s value appreciates, your net worth grows. 

So, if you’re financially stable and prepared for the costs and expenses of homeownership, buying a home might make a lot of sense for you.

Bottom Line

Home prices almost always go up over time. That makes buying a home a smart move, if you’re ready and able. Let’s connect to talk about your goals and what’s available in our area.