Parker Colorado Real Estate News

For the most part, I agree with this article.  Home prices seem to be returning to normal, now.  But, at some point in the future, home price growth will be anything but normal.  The pent-up demand for housing is huge.  Right now, we have multitudes of potential homebuyers sitting on the sidelines.  Most are priced out by the high mortgage interest rates.  Or, they simply will not accept what they can purchase with the current mortgage rates.  The other segment is made up of those current homeowners who are sitting on very low mortgage rates (i.e. 2.5% to 3.5%).  Unless they are forced to move, they cannot justify giving up the low rate in exchange for a higher rate on an inferior home.  These two groups will be unleashed when mortgage rates fall to the magic number.  I believe that number is 6% or lower.  Many informed professionals believe we will see lower rates next year.

Home Price Growth Is Returning to Normal [INFOGRAPHIC]

Some Highlights

• If you're wondering what’s happening with home prices, know they’re still rising, just at a slower pace – and that’s perfectly normal for this time of year.  
• Based on typical seasonality in the market, prices go up most in the spring during the peak buying season, and then price growth slows down as the year goes on.
• Home prices aren’t falling. They’re just rising slower and going back to normal seasonal trends. That’s a good thing. If you're curious about prices in our area, let’s connect.

This article questions whether or not mortgage rates are going to stay high, go higher or come down.  I sure don't have the crystal ball on this one.  My guess is that they will come down.  At some point either the market or the Fed will bring rates down.  Politically, it's disaster for the party in power.  Because we have such a low inventory of homes for sale, home prices should remain stable and buyer demand will exceed supply.  Buyers are either paying cash or getting a mortgage on a home less expensive than they had previously intended.  The beat goes on.  Again, I emphasize the need to buy now.  Get what you can.  It's always a better option than renting.

The difference between renting and buying a home is enormous, especially over the long term.

IF you can buy, do it. It's likely that you can't afford what you could have a few years ago. High mortgage interest rates have taken a toll. But, waiting or choosing to rent is not a wise decision. If you can buy something, do it. The odds are that the values are not going down. Lock in today's prices. And, if rates go down in the future, and they should, just refinance to the lower rate. So much better than renting. Think about all of the people that you know who's net worth is mainly in the equity that they enjoy in their home. For most of us, that increase in net worth was not planned or intentional. It just happened over time. Home ownership is the main avenue to wealth.

The Difference Between Renting and Buying a Home [INFOGRAPHIC]

Some Highlights

• When deciding between buying a home or renting, think about these three important factors.
• Buying a home means avoiding rising rents, owning a tangible and valuable asset, and growing your wealth over time.
• If you’re ready to enjoy the advantages of owning a home, let’s connect to discuss your options.

Well, we're 3 quarters into the year, and home prices remain stable.  In fact, they've increased a bit.  And, there is nothing on the horizon (even high mortgage interest rates) that would lead us to believe that home prices will decrease in 2024.  I'm betting that inventory will remain low and that we will see some decrease in mortgage rates.  If rates get as low as 5.5%, we will see an explosion in buyer demand and significant increases home prices.   

The Latest Expert Forecasts for Home Prices in 2023

Are you thinking about making a move? If so, all the speculation that home prices would crash this year may have you feeling a bit on edge about your decision. Let the data and the experts reassure you. Prices aren’t in a downward spiral and will actually finish the year strong.

Even though you may have heard talk that prices would drop 5, 10, or even 20% this year, that hasn’t happened. The big reason why is the supply of homes for sale is too low. There are just more buyers looking to buy than homes available, and that’s kept prices from falling.

To prove this year wasn’t a bust for home prices, let’s look at the latest 2023 forecast from a number of experts.

Most Experts Project Home Prices Will Net Positive this Year

The general consensus from industry experts is that home price appreciation will actually be positive for 2023. The graph below shows the latest 2023 year-end forecasts from six different organizations:

As you can see, all but one project nationally prices will net positive this year. That’s significant because it shows the majority are optimistic about home price growth.

If you’re still worried about the one red bar that shows an overall price drop for the year, think about this. The projection from the National Association of Realtors (NAR) is for only a slight decline. It’s not the big crash all the headlines called for. Plus, if you average all six forecasts together, the expectation is that prices will net somewhere around 3.3% positive growth for the year.

If these 6 organizations aren’t enough to convince you that prices won’t come tumbling down, here’s something else to consider. One of the six forecasts represented in the graph is the Home Price Expectation Survey (HPES) from Pulsenomics. It combines survey results from over 100 economists, investment strategists, and housing market analysts. The HPES found that the average from all 100 of those experts is 3.3% price growth for the year.

If you look back at the graph above, you’ll notice the blue average for the forecasts in this graph is also 3.3%. While individual forecasts may vary, both the HPES survey and the average of these forecasts provide the same projection. And 3.3% appreciation is a completely different story than prices falling.

Bottom Line

If you’re worried about home prices falling this year, let the experts reassure you. Based on the average of the latest forecasts, home prices will actually show positive growth this year. If you have questions about what’s happening with home prices in our local area, let’s connect.

This article makes the point that grandparents are moving to be closer to their children and their grandkids.  Our experience confirms this.  I'm just guessing.  But, I think that over the last 20 years, that we've been working with out of state homebuyers, fully 25% or more of them have been moving to be near their children.  And, the percentage is even higher today.  Many of these people are in a position to pay cash.  For them, it's a great time to move and buy, as a cash buyer has a great advantage over one that is needing a mortgage at 7% plus.  As grandparents of 10 grandchildren, we're grateful that 5 of them are here in Colorado.  We have 5 more in Oregon.  Sure wish we could convince them to move here.

Are Grandparents Moving To Be Closer to Their Grandkids?

During the pandemic, many people distanced themselves from their loved ones for health reasons. Grandparents were told to stay away from their grandkids, especially as schools started to open. That’s because it would have been risky to visit with their grandchildren who may have gotten sick from school.

Now that the pandemic has passed, many grandparents want more than ever to be near their grandchildren again to make up for that lost time. But how are they getting that “Grandparent Wish?” The data tells us many are moving to make sure they’re getting more quality time.

Grandparents Are Moving To Be Near Loved Ones

Recent data from the National Association of Realtors (NAR) shows people between the ages of 55 and 74 are moving farther (more than 100 miles) than any other age group (see graph below):

The average age of grandparents in the U.S. is 67 years. The logical leap is that at least some of the people who are moving the furthest are grandparents. But what’s causing them to move so far?

The same report from NAR shows the top reason people move is to be closer to loved ones (see graph below):

Based on this data, it’s fair to say many grandparents are getting their wish of more quality time with their grandchildren by moving to be closer to them. And after experiencing isolation and loneliness during the COVID pandemic, that’s an especially good thing.

If you’re a grandparent, you know how important your grandchildren are. And you may be willing to sell and move just to be closer by. As Vance Cariaga, a journalist at Go Bank Rates, explains:

“Never underestimate the power of grandchildren – especially when it comes to lifestyle and financial decisions. Recent data shows that many baby boomers are relocating further away from home than they used to so they can be closer to their grandbabies.”

Bottom Line

The data shows grandparents are moving further to be near their grandchildren. If you have grandchildren of your own, maybe you can relate. When you decide it’s time to be closer to your loved ones, let's connect.

I thought this was a great promotional video for the town of Parker.  We've lived here for 37 years and truly love it here.  Enjoy.

This article focuses on the growth of one's net worth through home ownership.  Of course, growth in net worth is the main financial benefit.  But, a significant benefit that seems to always be overlooked is the net increase in take-home income due to the reduced income taxes, due to being able to deduct mortgage interest and real estate taxes from you taxable income.  For most homeowners with a mortgage, the savings is in the multi thousands.  Very significant.  Nothing better than owning your own home.

How Homeowner Net Worth Grows with Time [INFOGRAPHIC]

Some Highlights

• If you’re thinking about buying a home this year, be sure to consider the long-term financial advantages of homeownership, like home equity.
• On average, people who bought homes 32 years ago have seen their home’s value nearly triple over that time.
• If you’re wondering if buying a home is a good idea, remember rising home values could grow your net worth with time. When you’re ready to start your homebuying journey, let’s talk.

This article addresses climate risks to consider when buying a home.  Luckily, climate risks are pretty minimal here in Parker, Colorado and the surrounding areas.  We've lived here since 1987.  We have yet to have any climate issues.  The only thing that we see on a seasonal basis is "hail".  We've never had any roof damage from hail.  We do have a tile roof, which helps.  But, honestly, hail damage is about the only thing to worry about in our area.  Just make sure you have good insurance coverage.

Are You a Homebuyer Worried About Climate Risks?

The increasing effects of natural disasters are leading to new obstacles in residential real estate. As a recent article from CoreLogic explains:

 “As the specter of climate change looms large, the world braces for unprecedented challenges. In the world of real estate, one of those challenges will be the effects of natural catastrophes on property portfolios, homeowners, and communities.”

 That may be why, according to Zillow, more and more Americans now consider how climate risks and natural disasters can impact their homeownership plans (see below):

This study goes on to explain that climate risks affect where many people look for a home. That’s because homebuyers are interested in finding out if the house they want will be exposed to things like floods, extreme heat, and wildfires.

 If you’re in the same situation and are thinking about what to do next, here’s some important information to consider as you start looking for a home.

 Expert Advice for Homebuyers To Reduce Climate Risks

 The first thing to do is understand how to go about buying a home while thinking about climate risks. With the right help and resources, you can simplify the process.

 The Mortgage Reports provides these tips for buying your next home:

•  Evaluate climate risks: Before buying a home, it's important to check if it's in a flood-prone area using the FEMA website, review the seller's property disclosure for any past damage, and get an inspection for issues like cracks and mold to make sure it's a safe investment.
• Consider future preventative maintenance costs: For areas that get tropical storms, you may need to purchase hurricane shutters and sandbags to protect the home. In wildfire-prone areas, you may want to clear plants five feet from the house, consider rooftop sprinklers, or possibly buy gutter guards to prevent fire hazards. Factor these future expenses in when touring homes that may need them.
• Take steps to avoid losing your assets: Getting the right insurance for a home in a high-risk climate area is crucial. You should shop around and talk to multiple insurance agents to compare prices and options before deciding to bid on a home.

 Above all else, your most valuable resource during this process is a trusted real estate expert. They'll always focus on your goals while keeping your concerns top of mind. Even if they don't have all the answers about how your home can handle natural disasters, they can connect you with the right experts and information.

Bottom Line

If you want to buy a home, but you're also thinking about climate risks, you're not alone. Your home is a big investment, and if anything can impact that, you want to know. Let’s connect so you have someone you can trust to guide you as you find your next home.

This is a good article regarding the benefits of owning a home.  But, it did leave out one very important benefit.  Most home owners will see a significant decrease in their federal income taxes.  The mortgage interest paid and real estate taxes paid are fully deductible.  For most people, the reduction in federal income taxes is substantial.  

Understanding the Benefits of Owning Your First Home

Are you considering buying your first home? If so, it can be helpful to know what led other people to make that decision. According to a recent survey of first-time homebuyers by PulteGroup:

“When asked why they purchased their first home recently, the answer was simple: because they wanted to. Either the desire to stop renting or recognition that homeownership is a smart financial investment was the main motivator for 72% of respondents.”

While that survey looked specifically at first-time homebuyers buying newly built homes, the same sentiment is true for just about anyone buying their first home. Here’s a bit more information to help you think about those two benefits of homeownership to see if they’re a key factor for you too.

When You Buy a Home, You Have More Stability than When You Rent

You might want to stop renting because rents keep going up. If you’re a renter, that means there’s a chance your payment will increase each time you sign a new rental agreement or renew your current one.

On the other hand, when you buy your home with a fixed-rate mortgage, your monthly housing payment is predictable over the length of that loan. This stability can give you a peace of mind that renting just can’t provide. Jeff Ostrowski, real estate journalist, breaks it down:

“With a fixed-rate mortgage, your monthly principal and interest payment is set for as long as you keep the loan. Sign a rental lease, however, and you could see your rent rise the following year, the year after that and so on.”

When You Buy a Home, You Grow Your Wealth as Home Values Climb

Beyond that, owning a home can also be a great long-term investment. While renting may be the more affordable option right now, it doesn’t provide an avenue for you to grow your wealth over time. Mark Fleming, Chief Economist at First American, explains that’s an important distinction to consider:

“Given current dynamics, more young households may choose to rent in the near term as the cost to own, excluding house price appreciation, has unequivocally increased. Yet, accounting for house price appreciation in that cost of homeownership, whether to rent or buy will depend on where, and if, a home is likely to cost more or less in the near future.”

Basically, renting doesn’t allow you to build equity. In contrast, homeownership can help you grow your net worth as your home’s value appreciates. That’s a significant perk you can’t get if you keep renting.

When you take that into account, it may make better financial sense to buy. Most experts project home prices will continue to appreciate over the next few years at a pace that’s more normal for the market. That means when you buy a home, not only are you investing in a place to live, but you’re also investing in your financial future. 

Bottom Line

If you're ready, it can be a smart move to buy your first home instead of renting. Let’s connect so you can stabilize your housing payment and start building wealth for your future.

Why is there such a low inventory of homes for sale?  This article addresses and answers this question.  Basically, there are three main reasons.  First of all, builders have been building less than needed over the last fourteen years.  People are living in there homes longer.  And, the main reason.  A huge percentage of homeowners are sitting on historically low interest rates.  They can't justify exchanging a 3% or lower mortgage rate for a 7% rate.  So, they stay in their homes.

Explaining Today’s Low Housing Supply [INFOGRAPHIC]

Some Highlights

• Wondering why the supply of homes for sale is limited today? There are a few factors at play.
• Lack of building over time, the mortgage rate lock-in effect, and people staying in their houses longer are three of the main reasons why supply is low.
• But real estate agents know exactly where to look and what to do to make your dream a reality. Let’s connect so you have an expert on your side to help you successfully navigate the market and find your next home.