Parker Colorado Real Estate News

The decline in home prices is over.  That is the theme of this article.  I would definitely agree.  Nationally, prices started rising again in February of this year.  Frankly, I feel like prices here in Colorado have been firm and in some cases, rising, since last fall.  We just have not seen any significant drop in prices.  I am speaking from our experience here in Parker.  All that we have experienced here in Parker, Colorado is heavy demand and multiple offers at asking or over.....on those properties that are appealing and priced correctly.  To this day, we are still working with several home buyers who have yet to get a home under contract.  We'll get there, but it's not easy.  If you would like to visit about real estate here in Parker, call me at 720.220.5058 or Cheryl Miller Bustin​ at 303.981.7339.  

The Worst Home Price Declines Are Behind Us

If you’re following the news today, you may feel a bit unsure about what’s happening with home prices and fear whether or not the worst is yet to come. That’s because today’s headlines are painting an unnecessarily negative picture. Contrary to those headlines, home prices aren’t in a freefall. The latest data tells a very different and much more positive story. Local home price trends still vary by market, but here’s what the national data tells us.

If we take a year-over-year view, home prices stayed positive – they just appreciated more slowly than they did at the peak of the pandemic. To get a more detailed picture of some of the trends in the market, we need to look at monthly data. 

The monthly graphs below use recent reports from three sources to show that the worst home price declines are already behind us, and prices are on their way back up nationally.

The story this more detailed monthly view tells us is that the last year has been a tale of two halves in the housing market. In the first half of 2022, home prices were climbing, and they peaked in June. Then, in July, home prices started to decline (shown in red in the graphs above). And by roughly August or September, the trend began to stabilize. As we look at the most recent data for the early part of 2023, these graphs also show a recent rebound in momentum with prices ticking back up. Monthly changes in home prices are gaining steam as we move into the busier spring season. 

While one to two months doesn’t make a trend, the fact that all three reports show prices have stabilized is an encouraging sign for the housing market. The month-over-month data conveys a clear, but early, consensus that a national shift is taking place today. In essence, home prices are starting to tick back up.

Andy Walden, Vice President of Enterprise Research at Black Knight, says this about home price trends: 

“Just five months ago, prices were declining on a seasonally adjusted month-over-month basis in 92% of all major U.S. markets. Fast forward to March, and the situation has done a literal 180, with prices now rising in 92% of markets from February.”

Selma Hepp, Chief Economist at CoreLogic, explains the limited supply of homes available for sale is contributing to this positive turn:

“ . . . prices in many large metros appeared to have turned the corner, with the U.S. recording a second month of consecutive monthly gains. . . . The monthly rebound in home prices underscores the lack of inventory in this housing cycle.” 

Here’s What This Means for You 

• Sellers: If you’ve been holding off on selling because you’re worried about what was happening with home prices and how it would impact the value of your home, it may be time to jump back in and partner with an agent to list your house. You don’t have to put your needs on hold any longer because the latest data shows a turn in your favor. 
• Buyers: If you’ve been waiting to buy because you didn’t want to purchase something that would decrease in value, you now have the peace of mind things are looking up. Buying now lets you make your move before home prices climb more and gives you the chance to own an asset that typically grows in value over time. 

Bottom Line

If you put off your plans to move because you were worried about home prices falling, data shows the worst is already behind us and prices are actually rising nationally. Let’s connect so you have an expert on the local market to explain what we’re seeing with home prices in our area.

Frankly, I did not get much out of this article.  Basically, it just reminds us that most of us are sitting on a ton of equity in our homes.  And, that the equity can provide the cash needed for a substantial down payment toward the next home.  What it does not address, is the net worth lost by trading a 2.5% mortgage interest rate for a 6.0% rate.  It's substantial.  My recommendation is to stay put, unless you have a compelling or necessary reason to move.  But, that equity can be used in several ways to enhance your financial situation.  How about considering turning your current home into a rental property.  Holding on to that property with a 2.5% rate will reap great benefits over the long term.  We're never going to see those rates again.  I would be surprised to see mortgage rates below 4%, ever.  Another thing I would recommend is to take out an HELOC (Home Equity Line Of Credit).  Even if you don't need it.  It will be a safety valve in case you need cash in the future.  Also, if you handle responsibly, use that line of credit or 2nd mortgage to pay off loans with high interest rates (i.e. credit cards, personal loans, etc..  If you would like to visit about real estate, give me a call at 720.220.5058 or Cheryl Miller Bustin​ at 303.981.7339.

Homeowners Have Incredible Equity To Leverage Right Now

Even though home prices have moderated over the last year, many homeowners still have an incredible amount of equity. But what is equity? In the simplest terms, equity is the difference between the market value of your home and the amount you owe on your mortgage. The National Association of Realtors (NAR) explains how your equity grows over time:

“Housing wealth (home equity or net worth) gains are built up through price appreciation and by paying off the mortgage.”

How Your Equity Can Help You Achieve Your Goals

The equity you build up over the years can be used to your advantage when you sell your current house and buy your next home. If you no longer have the space you need, it might be time to move into a larger home. Or it’s possible you have too much space and need something smaller. No matter the situation, your equity can be a powerful tool you can use to help you make a move in today’s market. That’s because it may be some (if not all) of what you need for your down payment on your next home.

And how much equity you have may surprise you. A recent survey from Realtor.com finds many homeowners today estimate they’ve built up a significant amount of equity:

The latest data from CoreLogic helps solidify why homeowners are feeling so good about the equity they’ve likely gained over time. As Selma Hepp, Chief Economist for CoreLogic, says:

“While equity gains contracted in late 2022 due to home price declines in some regions, U.S. homeowners on average still have about $270,000 in equity, nearly $90,000 more than they had at the onset of the pandemic.”

How a Skilled Real Estate Agent Can Help

If you’re looking to leverage your equity to boost your buying power in today’s market, having a trusted agent by your side makes a difference.

A real estate professional can help you better understand the value of your home, so you’ll get a clearer picture of how much equity you likely have. As a recent article from Bankrate says:

“Hiring a skilled real estate agent can give you a realistic estimate of home prices in your area and how to price your current home. Using that figure, you can calculate how much equity you have and what your net proceeds will look like, so you can apply that money toward the down payment and closing costs of your new home.” 

Having a solid understanding of your equity is key when it comes to making decisions about buying or selling your home. A skilled agent can help you navigate the often-complicated process of selling your house and ensure the transaction goes smoothly.

Bottom Line

Today, many homeowners are sitting on a substantial amount of equity, and you may be one of them. Let’s connect so we can estimate how much equity you have and plan how you can use it toward the purchase of your next home.

The decline in home prices is over.  That's the theme of this article.  I think it's correct.  We're certainly not seeing price declines here in Parker, Colorado or the Denver Metro Area.  I'm sure our market is stronger than most markets across the nation.  We're in that period when prices tend to peak (March through June).  And, that's what we're seeing.  Homes that are priced correctly are going under contract in a few days, at asking or over asking.  From our perspective, we do not see any weakening on the horizon.  It's not a good idea to wait for lower prices or lower interest rates.  Stop the bleeding now.  Hopefully, interest rates will settle down in the near future and everyone can refinance to a lower rate.  If you would like to visit about the real estate market here in Colorado, give us a call.  Call me at 720.220.5058 or Cheryl at 303.981.7339,

The Worst Home Price Declines Are Behind Us [INFOGRAPHIC]

Some Highlights

• While home prices vary by local area, they’ve already hit their low point nationally, and now they’re starting to rise again.
• Last July, prices started to decline, but around February, they began climbing back up.
• If you put your plans to move on hold waiting to see what would happen with home prices, let’s connect to discuss if now’s the right time to jump back in.

This article is directed toward those sellers who are trying to decide if it's the right time to sell their home.  From what we're seeing here in Parker, Colorado and the Denver Metro Area, there needs to be a pretty compelling reason to sell.  Most of the sellers we know are what we are calling "rate locked" homeowners.  They refinanced when mortgage rates were at historical lows (2.5% to 3.5%).  So, going from those low rates to 6%, plus or minus, just does not make sense.  Unless, there is a serious need or desire (i.e. job move, physical need, etc.).  Some people are willing to take the hit because their desire to upgrade is strong enough to take the loss.  But, the majority of these homeowners are sitting until, hopefully, rates fall.  Bottom line here is that there continues to be fewer homes for sale than buyers.  For more information about our real estate market here in Parker, Colorado and the Denver Metro Area give me a call at 720.220.5058 or Cheryl at 303.981.7339.

The Best Time To Sell Your House Is When Others Aren’t Selling

If you’re thinking about selling your house, you should know the number of homes for sale right now is low. That’s because, this season, there are fewer sellers listing their houses for sale than the norm.

Looking back at every April since 2017, the only year when fewer sellers listed their homes was in April 2020, when the pandemic hit and stalled the housing market (shown in red in the graph below). In more typical years, roughly 500,000 sellers add their homes to the market in April. This year, we saw fewer than 400,000 sellers entering the market in April (see graph below):

While there are a number of factors contributing to this trend, one thing keeping inventory low right now is that some homeowners are reluctant to move when the mortgage rate they have on their current house is lower than the one they could get today on their next house. It’s called rate lock.

As a recent survey from Realtor.com explains, 56% of people who are planning to sell in the next 12 months say they’re waiting for rates to come down.

While this wait-and-see approach is right for some sellers, it also creates an opening for more eager sellers to jump in now.

If your current house truly doesn’t fit your needs anymore and you’re ready to move, don’t miss this chance to stand out. When fewer sellers are putting their homes up for sale, buyers will have fewer options, so you set yourself up to get the most eyes possible on your house. That’s why your house could see multiple offers as buyers compete over the limited supply of homes for sale – especially if you price it right.

As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

“Inventory levels are still at historic lows . . . Consequently, multiple offers are returning on a good number of properties."

Bottom Line

If you’re ready to sell now, beat the competition before it comes onto the market. If you do, your house should stand out and could get multiple offers. Let's connect to get you market ready.

This is a short article explaining the likely impact of a mild recession on interest rates. Basically, it says that if the Fed is successful in bringing down inflation and the economy goes into a mild recession, we should see lower mortgage interest rates. I would agree with that assumption. I would also add that those potential home buyers with stable jobs will not be negatively affected by a mild recession. So, rates might come down. Which is good. But, do not expect housing prices to come down. They are likely to spike. Bottom line. If you're considering buying a home, do it now. Then, when interest rates come down, refinance. If you need more information about the real estate market, give me a call at 720.220.5058.

The Impact of Inflation on Mortgage Rates

If you’re reading headlines about inflation or mortgage rates, you may see something about the recent decision from the Federal Reserve (the Fed). But what does it mean for you, the housing market, and your plans to buy a home? Here’s what you need to know.

Inflation and the Housing Market

While the Fed’s working hard to lower inflation, the latest data shows that, while the number has improved some, the inflation rate is still higher than the target (2%). That played a role in the Fed's decision to raise the Federal Funds Rate last week. As Bankrate explains:

“Keeping its inflation-fighting streak alive, the Federal Reserve has raised interest rates for the 10th time in 10 meetings . . . The hikes aimed to cool an economy that was on fire after rebounding from the coronavirus recession of 2020.” 

While the Fed’s actions don’t directly dictate what happens with mortgage rates, their decisions do have an impact and contributed to the intentional cooldown in the housing market last year. 

How This Impacts You 

During times of high inflation, your everyday expenses go up. That means you’ve likely felt the pinch at the gas pump and in the grocery store. By raising the Federal Funds Rate, the Fed is actively trying to lower inflation. If the Fed is successful, it could also ultimately lead to lower mortgage rates and better homebuying affordability for you. That’s because when inflation is high, mortgage rates tend to be high. But, as inflation cools, experts say mortgage rates will likely fall.

Where Experts Think Mortgage Rates and Inflation Will Go from Here

Moving forward, both inflation and mortgage rates will continue to impact the housing market. And as Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

“Mortgage rates are likely to descend lower later in the year as the consumer price inflation calms down . . .” 

Mike Fratantoni, Chief Economist at the Mortgage Bankers Association (MBA), explains: 

“We continue to expect that mortgage rates will drift down over the course of the year as the economy slows . . .”

While there’s no way to say with certainty where mortgage rates will go from here, the experts think mortgage rates will trend down this year if inflation comes down too. To stay informed on the latest insights, connect with a trusted real estate advisor. They keep their pulse on what’s happening today and help you understand what the experts are projecting and how it could impact your homeownership plans.

Bottom Line

Don’t let headlines about the latest decision from the Fed confuse you. Where mortgage rates go from here depends on what happens with inflation. If inflation cools, mortgage rates should tick down as a result. Let’s connect so you have expert insights on housing market changes and what they mean for you.

This is an excellent article that details the reasons why we should not expect any home price reductions over the next few years.  Certainly, not here in Parker, Colorado and the Denver Metro Area. It is well worth the read.  I agree with everything that the author says.  With very tight lending requirements, low unemployment, low inventory and large home equity, this market is completely different than the recession of 2008.  Hope you enjoy the article.  If you need any real estate help, Cheryl Miller Bustin​ and I are here for you.  Call me at 720.220.5058 or Cheryl at 303.981.7339.

Why Today’s Housing Market in Parker, Colorado Is Not About To Crash

There’s been some concern lately that the housing market here in Parker, Colorado and the nation is headed for a crash. And given some of the affordability challenges in the housing market, along with a lot of recession talk in the media, it’s easy enough to understand why that worry has come up.

But the data clearly shows today’s market is very different than it was before the housing crash in 2008. Rest assured, this isn’t a repeat of what happened back then. Here’s why.

It’s Harder To Get a Loan Now

It was much easier to get a home loan during the lead-up to the 2008 housing crisis than it is today. Back then, banks had different lending standards, making it easy for just about anyone to qualify for a home loan or refinance an existing one. As a result, lending institutions took on much greater risk in both the person and the mortgage products offered. That led to mass defaults, foreclosures, and falling prices.

Things are different today as purchasers face increasingly higher standards from mortgage companies. The graph below uses data from the Mortgage Bankers Association (MBA) to show this difference. The lower the number, the harder it is to get a mortgage. The higher the number, the easier it is.

Unemployment Recovered Faster This Time

While the pandemic caused unemployment to spike over the last couple of years, the jobless rate has already recovered back to pre-pandemic levels (see the blue line in the graph below). Things were different during the Great Recession as a large number of people stayed unemployed for a much longer period of time (see the red in the graph below):

Here’s how the quick job recovery this time helps the housing market. Because so many people are employed today, there’s less risk of homeowners facing hardship and defaulting on their loans. This helps put today’s housing market on stronger footing and reduces the risk of more foreclosures coming onto the market.

There Are Far Fewer Homes for Sale Today

There were also too many homes for sale during the housing crisis (many of which were short sales and foreclosures), and that caused prices to fall dramatically. Today, there’s a shortage of inventory available overall, primarily due to years of underbuilding homes.

The graph below uses data from the National Association of Realtors (NAR) and the Federal Reserve to show how the months’ supply of homes available now compares to the crash. Today, unsold inventory sits at just a 2.6-months’ supply. There just isn’t enough inventory on the market for home prices to come crashing down like they did in 2008.

Equity Levels Are Near Record Highs

That low inventory of homes for sale helped keep upward pressure on home prices over the course of the pandemic. As a result, homeowners today have near-record amounts of equity (see graph below):

And, that equity puts them in a much stronger position compared to the Great Recession. Molly Boesel, Principal Economist at CoreLogic, explains: 

“Most homeowners are well positioned to weather a shallow recession. More than a decade of home price increases has given homeowners record amounts of equity, which protects them from foreclosure should they fall behind on their mortgage payments.”

Bottom Line

The graphs above should ease any fears you may have that today’s housing market is headed for a crash. The most current data clearly shows that today’s market is nothing like it was last time.

I ran across this article, this morning.  It's making the case that now might be a good time to sell.  Well, it certainly is, if you need to sell or you're so compelled to buy another home, that you're willing to walk away from the benefits of your current home.  I don't sound like a real estate agent, do I.  Because inventory is so far below buyer demand, prices are very high, right now.  And, my guess is that they will continue to be.  Almost regardless of what the over all economy might do.  So, as a seller, you're going to get top dollar.  But, you're going to pay top dollar, also.  So, the reason you're selling is critical.

The buyers that we're working with here in Parker, Colorado all fall into the category of "need to buy".  And, frankly, they are not affected by the home they currently live in.  Two are cash buyers, purchasing for their adult children.  They are not giving up anything to purchase.  Except cash, of course.  One is retiring and moving from California to Parker, Colorado to be near their children and grand children.  They have a compelling reason to leave the home they're currently in.  The other is a high end cash buyer who owns their current home "free and clear" and will pay cash for the next home.  So, they are not affected by the high interest rates.  There are thousands of buyers like these.  They will continue to fuel this market.

So, bottom line.  If you're a willing seller, now is a great time to sell and maximize your profit.

Reasons To Sell Your House Today [INFOGRAPHIC]

Some Highlights

• Not sure if selling your house is the right move today? You should know there are a number of reasons it still makes sense to sell now.
• Your house will stand out because inventory is low. That’s why the number of offers on recently sold homes is on the rise. And most homeowners have a lot of equity that can fuel a move.
• If you’re thinking about selling your house, let’s connect to discuss if now may be the time to move.

Most of the time, I pretty much agree with the articles that I share with you.  Or, why would I even share them.  But, this one.  Not so much.  My feeling regarding downsizing is basically, unless you really NEED TO, don't do it.  Think of what you're giving up. I know in our case, we have so much stuff, that we're renting a storage unit.  And, our home has over 4000 square feet.  Truth be, we need to get rid of a lot of stuff.  But, it's hard to let go of most of it.  So, for us, why would we get a smaller home?

But, the main thing is the real value of a small home, compared to a larger home.  We are currently working with several buyers looking in the $500,000 price range.  We're actually considering homes with 1200 to 1500 square feet.  There are apartments this large.   Then, we have clients looking at homes in the $700,000 price range.  These homes are twice as big and nicer.  My point is that the larger the home, the more you get for your money.  So, if you can afford it and love it, don't downsize.  If it's absolutely necessary, that's different.

How Homeowners Win When They Downsize

Downsizing has long been a popular option when homeowners reach retirement age. But there are plenty of other life changes that could make downsizing worthwhile. Homeowners who have experienced a change in their lives or no longer feel like their house fits their needs may benefit from downsizing too. U.S. News explains:

“Downsizing is somewhat common among older people and retirees who no longer have children living at home. But these days, younger people are also looking to downsize to save money on housing . . .”

And when inflation has made most things significantly more expensive, saving money where you can has a lot of appeal. So, if you’re thinking about ways to budget differently, it could be worthwhile to take your home into consideration.

When you think about cutting down on your spending, odds are you think of frequent purchases, like groceries and other goods. But when you downsize your house, you often end up downsizing the bills that come with it, like your mortgage payment, energy costs, and maintenance requirements. Realtor.com shares:

“A smaller home typically means lower bills and less upkeep. Then there’s the potential windfall that comes from selling your larger home and buying something smaller.”

That windfall is thanks to your home equity. If you’ve been in your house for a while, odds are you’ve developed a considerable amount of equity. Your home equity is an asset you can use to help you buy a home that better suits your needs today.

And when you’re ready to make a move, your team of real estate experts will be your guides through every step of the process. That includes setting the right price for your house when you sell, finding the best location and size for your next home, and understanding what you can afford at today’s mortgage rate.

What This Means for You

If you’re thinking about downsizing, 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?

Once you know the answers to these questions, meet with a real estate advisor to get an answer to this one: What are my options in the market right now? A local housing market professional can walk you through how much equity you have in your house and how it positions you to win when you downsize.

Bottom Line

If you’re looking to save money, downsizing your home could be a great help toward your goal. Let’s connect to talk about your goals in the housing market this year.

This is a really good article showing convincing data that home buyer activity is and likely will continue to be very strong for the near term and future.

Buyer Activity Is Up Despite Higher Mortgage Rates

If you’re a homeowner thinking about making a move, you may wonder if it’s still a good time to sell your house. Here’s the good news. Even with higher mortgage rates, buyer traffic is actually picking up speed.

Data from the latest ShowingTime Showing Index, which is a measure of buyers actively touring homes, helps paint the picture of how much buyer demand has increased in recent months (see graph below):

As the graph shows, the first two months of 2023 saw a noticeable increase in buyer traffic. That’s likely because the limited number of homes for sale kept shoppers looking for homes even during colder months.

To help tell the story of why the latest report is significant, let’s compare foot traffic this February with each February for the last six years (see graph below). It shows this was one of the best Februarys for buyer activity we’ve seen in recent memory.

In the last six years, we saw the most February buyer traffic in 2021 and 2022 (shown in green above), but those years were highly unusual for the housing market. So, if we compare February 2023 with the more normal, pre-pandemic years, data shows this year still marks a clear rise in buyer activity.

The uptick in buyer traffic is even more noteworthy considering the increase in mortgage rates this February. The Freddie Mac 30-year fixed mortgage rate rose from 6.09% during the week of February 2^nd to 6.50% in the week of February 23^rd. But even with higher rates, more buyers were looking for a home.

Jeff Tucker, Senior Economist at Zillow, says the increased buyer activity could continue:

“More buyers will keep coming out of the woodwork. We always see a seasonal uptick in home shoppers in March and April . . .”

If you’re looking to sell your house, seeing buyers still active in the market this year should be encouraging. It’s a sign buyers are out there and could be looking for a home just like yours. Working with a real estate professional to list your house now will help you get your home in front of eager buyers today.

Bottom Line

Rising foot traffic is a bright spot for this year’s housing market and indicates that buyers are looking to purchase this year, even with higher mortgage rates. If you’re ready to sell your house, let’s connect.or the near and long term.  We are certainly experiencing it here in Parker, Colorado.  If you need any help with your real estate needs, please give us a call.  We're right here in Parker and ready to help.  Call me at 720.220.5058 or Chery at 303.981.7339.