This article that I found is "right on".  A good explanation of why we have such a low inventory of homes. First of all, I think the number one reason is the low mortgage rates that homebuyers have today.  Those that could, refinanced their mortgage down to as low as 2.5%.  Almost everyone is down to at least 4%.  In order to buy another home with the same payment or better, they would need to purchase a home for as much as $100,000 less expensive.  Who would do that.  Only someone who "has to make a move".  Job transfer.  Medical issue requiring a different home style (i.e. main floor master), etc..  So, that segment of the population is "rate locked" into their current home. 

Then, you have potential buyers who need to purchase, but are terrified that they'll sell their home and then will not be able to find another one.  Or, if they do find another one, they won't be able to secure it, due to the extreme competition.  We're certainly experiencing this in our business. 

It's a strange market that we're dealing with.  Thankfully, this is not our "first rodeo", as the expression goes.  We've been through all of the markets over the last 19 years.  After having sold over 350 homes, we're pretty prepared to navigate this market.  All of our clients eventually end up winning. 

If you're in the market to find a home or to sell your home, please reach out to us. We will make it happen for you.  Call me at 720.220.5058 or Cheryl at 303.981.7339.  Check out our website at http://www.ParkerColoradoHomeCenter.com.  Email us atBob@BustinHomeTeam.com

The Two Big Issues the Parker Colorado Housing Market’s Facing Right Now

The biggest challenge the housing market’s facing is how few homes there are for sale. Mark Fleming, Chief Economist at First American, explains the root causes of today’s low supply:

“Two dynamics are keeping existing-home inventory historically low – rate-locked existing homeowners and the fear of not finding something to buy.”

Let’s break down these two big issues in today’s housing market.

Rate-Locked Homeowners

According to the Federal Housing Finance Agency (FHFA), the average interest rate for current homeowners with mortgages is less than 4% (see graph below):

But today, the typical mortgage rate offered to buyers is over 6%. As a result, many homeowners are opting to stay put instead of moving to another home with a higher borrowing cost. This is a situation known as being rate locked.

When so many homeowners are rate locked and reluctant to sell, it’s a challenge for a housing market that needs more inventory. However, experts project mortgage rates will gradually fall this year, and that could mean more people will be willing to move as that happens.

The Fear of Not Finding Something To Buy

The other factor holding back potential sellers is the fear of not finding another home to buy if they move. Worrying about where they’ll go has left many on the sidelines as they wait for more homes to come to the market. That’s why, if you’re on the fence about selling, it’s important to consider all your options. That includes newly built homes, especially right now when builders are offering concessions like mortgage rate buydowns.

What Does This Mean for You?

These two issues are keeping the supply of homes for sale lower than pre-pandemic levels. But if you want to sell your house, today’s market is a sweet spot that can work to your advantage.

Be sure to work with a local real estate professional to explore the options you have right now, which could include leveraging your current home equity. According to ATTOM:

“. . . 48 percent of mortgaged residential properties in the United States were considered equity-rich in the fourth quarter, meaning that the combined estimated amount of loan balances secured by those properties was no more than 50 percent of their estimated market values.”

This could make a major difference when you move. Work with a local real estate expert to learn how putting your equity to work can keep the cost of your next home down.

Bottom Line

Rate-locked homeowners and the fear of not finding something to buy are keeping housing inventory low across the country. But as mortgage rates start to come down this year and homeowners explore all their options, we should expect more homes to come to the market.

Bottom Line

Rate-locked homeowners and the fear of not finding something to buy are keeping housing inventory low across the country. But as mortgage rates start to come down this year and homeowners explore all their options, we should expect more homes to come to the market.

Denver Metro Market Watch

Home Inspections

Home inspections have become one of the important elements of the home buying process. Chery and I always recommend (pretty much insist) that our homebuyers get an inspection. Even in 2021 and the first part of 2022, we always required an inspection. But, with many of those offers, we would put in the contract that the only thing we would ask for would be items that affect "health, safety and structure". And, sometimes we might put a limit not to exceed (say $1000). If the inspection came back with things like needs painting, appliances don't work properly, leaky faucets, broken windows, roof damage, etc., the seller would not need to repair. If the furnace was leaking and could kill you, that would need to be fixed. It really got crazy, as I'm sure many desperate buyers ended up with homes that cost them a lot of extra money on repairs and updates. But, that's what it took, sometimes, to get a home under contract and closed. Today, we're still in a seller's market. At least, here in Parker, Colorado and the Denver Metro Area. But, we're not seeing those crazy inspection waivers. Another thing that we recommend (that most sellers still won't do) is for the seller to have an inspection done prior to listing their home. That way, they can take care of the needed repairs and make the inspection available to prospective buyers. Inspections are usually around $500 and a good investment, be you the buyer or the seller.

Home Inspections for Sellers: What You Need To Know [INFOGRAPHIC]

Some Highlights

• The inspection is a major part of the home selling process.
• Many buyers used to waive inspections to be more competitive with their offer, but recently, inspections and repairs are becoming popular again.
• Let’s connect so you have an expert on your side who can help you determine the repairs and updates your house needs before you sell.

This article is about "pricing your home right" this Spring. For the most part, I think it's right on. When I post an article, it's usually from a national perspective. That's why I try to preface the article with our perspective, as it pertains to here in Parker Colorado and the Denver Metro Area. Our experience here in Parker and Castle Rock tells us that almost any home priced from $475,000 to $800,000 will go under contract within a few days. Pricing it correctly will definitely yield the best offers. But, frankly, regardless of how it's priced, it will sell. For instance, as I write this, Cheryl is with clients looking for a home here in Parker or Castle Rock in the $500,000 to $600,000 price range. She has 3 homes to show them today, 2 tomorrow and 1 on Saturday. Hopefully, more will come on the market today and tomorrow. She will probably be competing with at least 30 to 40 other agents trying to secure a home for their clients. Results? Multiple offers at over asking. It's a tough go for buyers. It's great for sellers. It might take many offers on our clients' part. But, rest assured, we will prevail. We always do. We've written as many as 14 offers before we got a real contract. So, enjoy the attached article. But, do remember it's from a national perspective. As always, Cheryl and I would consider it an honor and a privilege to help you with any of your real estate needs. Call me a 720.220.5058 or Cheryl at 303.981.7339.

Want To Sell Your House This Spring? Price It Right.

Over the last year, the housing market’s gone through significant change. While it’s still a sellers’ market, homes that are priced right are selling, and they get the most attention from buyers right now. If you’re thinking of selling your house this spring, it’s important to lean on your expert real estate advisor when it comes to setting a list price. As Realtor.com explains:

“Move-in-ready homes with curb appeal and in desirable areas—and that are priced to sell—are especially likely to move quickly this spring.”

In today’s market, how you price your house will not only make a big difference to your bottom line, but to how quickly your house will sell.

Why Pricing Your House Right Matters

Your asking price sends a message to potential buyers, especially today.

If it’s priced too low, you may leave money on the table or discourage buyers who may see a lower-than-expected price tag and wonder if that means something is wrong with the home.

If it’s priced too high, you run the risk of deterring buyers. When that happens, you may have to lower the price to drive interest when your house sits on the market for a while. But be aware that a price drop can be seen as a red flag by some buyers who will wonder what it means about the home.

To avoid either headache, price it right from the start. A real estate professional knows how to determine the ideal asking price. They balance the value of homes in your neighborhood, current market trends, buyer demand, the condition of your house, and more to find the right price. This helps lead to stronger offers and a greater likelihood your house will sell quickly.

The visual below helps summarize the impact your asking price can have:

Bottom Line

Homes priced at the current market value are selling faster and at a better price right now. To make sure you price your house appropriately, maximize your sales potential, and minimize your hassles, let’s connect today.

I read some of these articles and wonder if they're really worth posting. This is one of those. While a tax refund of a couple thousand dollars is great, it's not usually enough to make a real difference. In today's real estate market, a few thousand extra dollars is not going to make much of a difference. In the Denver Metro Area, the minimum down payment (FHA 3.5%), plus closing costs, is going to be over $25,000. That's a chunk of money for most people. And, that's the minimum. To get the best rates and terms, a 20% down payment is usually required, bringing that amount required to over $120,000. Having been a bit negative about the cost of buying a home, I still believe it should be everyone's number one financial goal. It will be the "gift that keeps on giving" in the long run.

Your Tax Refund Can Help You Achieve Your Homebuying Goals

Have you been saving up to buy a home this year? If so, you know there are a variety of expenses involved – from your down payment to closing costs. But there’s good news – your tax refund can help you achieve your goals by paying for some of these expenses.

SmartAsset estimates the average American will receive a $1,798 tax refund this year. The map below provides a more detailed estimate by state:

According to Freddie Mac, there are multiple ways your refund check can help you as a homebuyer. If you’re getting a refund this year and thinking about buying a home, here are a few tips to keep:

• Saving for a down payment – One of the largest barriers to homeownership is saving for a down payment. You could reach your savings goal more quickly than expected by using your tax refund to help with your down payment.
• Paying for closing costs – You have to pay fees to your lender, real estate agent, and other parties involved in the homebuying transaction before you can officially take ownership of your home. You could direct your tax refund toward these closing costs.
• Lowering your interest rate – Your lender might give you the option to buy down your mortgage interest rate during the homebuying process. That means, you could pay upfront to have a lower interest rate on your fixed-rate mortgage.

The best way to prepare to buy a home is to work with a trusted real estate professional who understands the process. They’ll help you navigate the costs you may encounter as you begin your homebuying journey.

Bottom Line

Your tax refund can help you reach your goals of homeownership. Let’s connect to discuss how you can start your journey today.

Expect Firm Home Prices This Spring In Parker Colorado

This article addresses the prices to expect this Spring. Here in Parker, Colorado, we're expecting to see homes sell for asking and over. There simply is not enough inventory. And, there are far more buyers than homes available. That equates into firm prices for sellers. I just ran a quick report on all of the homes that have closed in Parker over the last 10 days. Of the 39 closings, almost all went under contract within a week and at over asking. Good news for sellers. For buyers, my advise is to "make it happen" now, if you're in the market. Waiting is a mistake. Unless we were to experience a severe recession (which almost all experts do not expect), waiting will ultimately cost you money. In the long run, home ownership is the best way to increase net worth. And, as I've always believed. A home is not just an investment. It's where you live. Cheryl and I would love to visit with you if you're considering selling your home. Or, if you're thinking about buying a home. Call us at 303.981.7339 or 720.220.5058.

Thinking about selling your house? If you’ve been waiting for the right time, it could be now while the supply of homes for sale is so low. HousingWire shares:

“. . . the big question is whether we are finally starting to see the seasonal spring increase in inventory. The answer is no, because active listings fell to a new low last week for 2023 . . .”

The National Association of Realtors (NAR) confirms today’s housing inventory is low by looking at the months’ supply of homes on the market. In a balanced market, about a six-month supply is needed. Anything lower is a sellers’ market. And today, the number is much lower:

“Total housing inventory registered at the end of February was 980,000 units, identical to January and up 15.3% from one year ago (850,000). Unsold inventory sits at a 2.6-month supply at the current sales pace, down 10.3% from January but up from 1.7 months in February 2022.”

Why Does Low Inventory Make It a Good Time To Sell?

The less inventory there is on the market when you sell, the less competition you’re likely to face from other sellers. That means your house will get more attention from the buyers looking for a home this spring. And since there are significantly more buyers in the market than there are homes for sale, you could even receive more than one offer on your house. Multiple offers are on the rise again (see graph below):  

If you get more than one offer on your house, it becomes a bidding war between buyers – and that means you have greater leverage to sell on your terms. But if you want to maximize the opportunity for a bidding war to spark, be sure to lean on your expert real estate advisor. While we’re still in a strong sellers’ market, it isn’t the frenzy we saw a couple of years ago, and today’s buyers are focused on the houses with the greatest appeal. Clare Trapasso, Executive News Editor at Realtor.com, explains:

"Well-priced, move-in ready homes with curb appeal in desirable areas are still receiving multiple offers and selling for over the asking price in many parts of the country. So, this spring, it's especially important for sellers to make their homes as attractive as possible to appeal to as many buyers as possible.”

Bottom Line

If you’ve been waiting for the right time to sell your house, low inventory this spring sets you up with a big advantage. Let’s connect today to make sure your house is ready to sell. 

This is a short article regarding the Spring buying season. We are seeing a rise in activity here Parker, Colorado. Mortgage rates are down a bit and should equate to more buyer activity.

Homebuyer Activity Shows Signs of Warming Up for Spring

The spring season here in Parker, Colorado appears to be warming up in housing as more and more buyers enter the market. And after rising mortgage rates sidelined so many buyers last year, that’s a good sign for sellers. Realtor.com has the latest:

“Spring is officially here, and like green shoots emerging from the bleak winter, new data suggests that more buyers are back in the market, although more subdued compared to a year ago.”

We know buyer activity is trending up because of mortgage purchase application data. According to Investopedia:

“A mortgage application is a document submitted to a lender when you apply for a mortgage to purchase real estate.”

That means the number of mortgage applications shows how many buyers are applying for mortgages. Put another way, an increase in mortgage applications means an increase in buyer demand – and as Joel Kan, VP and Deputy Chief Economist at the Mortgage Bankers Association (MBA), explains, application activity started ramping up as mortgage rates fell steadily in March:

“Application activity increased as mortgage rates declined . . . recent increases, along with data from other sources showing an uptick in home sales, is a welcome development.”

In fact, we can see how mortgage rates have a direct impact on applications over time. As rates rose dramatically last year, applications fell in response (see graph below):

The recent uptick in mortgage applications, as well as the decline in mortgage rates, is good news for sellers because it means more buyers are actively looking for homes.

What This Means for You

Buyers are coming this spring, which is typically the busiest time of the year in real estate. And as Realtor.com tells us, if you’re a seller, you need to prepare:

“If homeowners are planning to sell in 2023, now is the time to get ready.”

The means working with a local real estate agent to maximize your home’s appeal and get it listed at the ideal price for your area.

Bottom Line

The housing market is warming up for spring. If you’re thinking about selling your house and taking advantage of this recent uptick in buyer activity, let’s connect.  Call us at 303.981.7339 or 720.220.5058.

Some Highlights

• Buying a home is a major way to build wealth and gain financial stability.
• That’s why, across different income levels, the largest part of most homeowners’ net worth is their equity.
• Let’s connect today so you can start investing in homeownership.

Trying to purchase a home in Parker Colorado. 

HANG IN THERE

"HANG IN THERE" is definitely the advice that I would give you.  In this market you have to be absolutely committed to do what is necessary to secure that perfect home.  That means that you have to stay on top of new listings.  The minute one goes on the market that appeals to you, you must immediately go see it (I mean that very day.  If you want to make an offer, it needs to be done that day or night.  After your agent runs the comparable to see what a recommended offer would be, write it up.  And, you're probably going to need to make that offer over asking.  We're seeing 2% to 5% over asking on homes up to about $800,000.  The lower the asking price, the higher percentage over asking.  As you get into the higher priced homes, the buyer supply decreases.  We've been helping home buyers here in Parker and the Denver Metro Area since 2004.  With over 340 homes sold, I can honestly say that we have never had a client not eventually get their home.  We had one client that wrote 14 offers before we finally secured the home.  That's the extreme.  But, over the last several years (especially in 2021), multiple offers were very common.  It's a bit better now.  But, you still need to be aggressive and work with a very experienced real estate agent.  Let us help you in the tough market.   

Trying To Buy a Home In Parker Colorado?  Or, Any Other Town?

Hang in There.

We’re still in a sellers’ market here in Parker, Colorado.  And if you’re looking to buy a home, that means you’re likely facing some unique challenges, like difficulty finding a home and volatile mortgage rates. But keep in mind, there are some benefits to being a buyer in today’s market that give you good reason to stick with your search. Here are a few of them.

Long-Term Benefits Outweigh Short-Term Challenges

Owning a home grows your net worth – and since building that wealth takes time, it makes sense to start as soon as you can. If you wait to buy and keep renting, you’ll miss out on those monthly housing payments going toward your home equity. Freddie Mac puts it this way:

“Homeownership not only builds a sense of pride and accomplishment, but it’s also an important step toward achieving long-term financial stability.”

The key there is long-term because the financial benefits homeownership provides, like home value appreciation and equity, grow over time. Those benefits are worth the short-term challenges today’s sellers’ market presents.

Mortgage Rates Are Constantly Changing

Mortgage rates have been hovering around 6.5% over the last several months. However, as Sam Khater, Chief Economist at Freddie Mac, notes, they’ve been coming down some recently:

“Economic uncertainty continues to bring mortgage rates down. Over the last several weeks, declining rates have brought borrowers back to the market . . .”

Lower mortgage rates improve your purchasing power when you buy, and that can help make homeownership more affordable. Hannah Jones, Economic Data Analyst at realtor.com, explains:

“As we move into the spring buying season, mortgage rates have ticked lower, a welcomed sign of progress towards affordability.”

The recent drop in mortgage rates is good news if you couldn’t afford to buy a home when they peaked.

Home Prices Will Increase

According to the Home Price Expectation Survey, which polls over 100 real estate experts, home values will go up steadily over the next few years after a slight decline this year (see graph below):

Rising home prices here in Colorado in the coming years means two things for you as a buyer:

• Waiting to buy a home could mean it’ll become more expensive to do so.
• Buying now means the value of your home, and your net worth, will likely grow over time.

Bottom Line

If you’ve been trying to buy a home, hang in there. Mortgage rates have ticked down some recently, home prices are forecast to increase in the coming years, and the long-term benefits of homeownership outweigh many of the short-term challenges.

Let us now if we can be of service.  Call Cheryl at 303.981.7339 or Bob at 720.220.5058

Trying to purchase a home in Parker Colorado. 

HANG IN THERE

"HANG IN THERE" is definitely the advice that I would give you.  In this market you have to be absolutely committed to do what is necessary to secure that perfect home.  That means that you have to stay on top of new listings.  The minute one goes on the market that appeals to you, you must immediately go see it (I mean that very day.  If you want to make an offer, it needs to be done that day or night.  After your agent runs the comparable to see what a recommended offer would be, write it up.  And, you're probably going to need to make that offer over asking.  We're seeing 2% to 5% over asking on homes up to about $800,000.  The lower the asking price, the higher percentage over asking.  As you get into the higher priced homes, the buyer supply decreases.  We've been helping home buyers here in Parker and the Denver Metro Area since 2004.  With over 340 homes sold, I can honestly say that we have never had a client not eventually get their home.  We had one client that wrote 14 offers before we finally secured the home.  That's the extreme.  But, over the last several years (especially in 2021), multiple offers were very common.  It's a bit better now.  But, you still need to be aggressive and work with a very experienced real estate agent.  Let us help you in the tough market.   

Trying To Buy a Home In Parker Colorado? 

Or, Any Other Town?

Hang in There.

We’re still in a sellers’ market here in Parker, Colorado.  And if you’re looking to buy a home, that means you’re likely facing some unique challenges, like difficulty finding a home and volatile mortgage rates. But keep in mind, there are some benefits to being a buyer in today’s market that give you good reason to stick with your search. Here are a few of them.

Long-Term Benefits Outweigh Short-Term Challenges

Owning a home grows your net worth – and since building that wealth takes time, it makes sense to start as soon as you can. If you wait to buy and keep renting, you’ll miss out on those monthly housing payments going toward your home equity. Freddie Mac puts it this way:

“Homeownership not only builds a sense of pride and accomplishment, but it’s also an important step toward achieving long-term financial stability.”

The key there is long-term because the financial benefits homeownership provides, like home value appreciation and equity, grow over time. Those benefits are worth the short-term challenges today’s sellers’ market presents.

Mortgage Rates Are Constantly Changing

Mortgage rates have been hovering around 6.5% over the last several months. However, as Sam Khater, Chief Economist at Freddie Mac, notes, they’ve been coming down some recently:

“Economic uncertainty continues to bring mortgage rates down. Over the last several weeks, declining rates have brought borrowers back to the market . . .”

Lower mortgage rates improve your purchasing power when you buy, and that can help make homeownership more affordable. Hannah Jones, Economic Data Analyst at realtor.com, explains:

“As we move into the spring buying season, mortgage rates have ticked lower, a welcomed sign of progress towards affordability.”

The recent drop in mortgage rates is good news if you couldn’t afford to buy a home when they peaked.

Home Prices Will Increase

According to the Home Price Expectation Survey, which polls over 100 real estate experts, home values will go up steadily over the next few years after a slight decline this year (see graph below):

Rising home prices here in Colorado in the coming years means two things for you as a buyer:

• Waiting to buy a home could mean it’ll become more expensive to do so.
• Buying now means the value of your home, and your net worth, will likely grow over time.

Bottom Line

If you’ve been trying to buy a home, hang in there. Mortgage rates have ticked down some recently, home prices are forecast to increase in the coming years, and the long-term benefits of homeownership outweigh many of the short-term challenges.

Let us now if we can be of service.  Call Cheryl at 303.981.7339 or Bob at 720.220.5058