You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!
Sean and Brit- Mostly, we are feeling bitter/sweet. We are so proud of the two of you and what you've accomplished. CONGRATULATION!!....Thank you for being the best neighbors we could've ever had. YOU"LL BE MISSED. Sad to see you go but excited for your new adventure....Kimberly and Bill
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Winter home shoppers have lower home prices, less competition and 79% of the housing inventory of a spring shopper. And, there are almost half the number of home shoppers in January than June. If you are thinking about buying a home, let us help you navigate the process. We would love to help. 720-515-0248
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As we kick off the new year, many families have made resolutions to enter the housing market in 2019. Whether you are thinking of finally ditching your landlord and buying your first home or selling your starter house to move into your forever home, there are two pieces of the real estate puzzle you need to watch carefully: interest rates & inventory.
Mortgage interest rates had been on the rise for much of 2018, but they made a welcome reversal at the end of the year. According to Freddie Mac’s latest Primary Mortgage Market Survey, rates climbed to 4.94% in November before falling to 4.62% for a 30-year fixed rate mortgage last week. Despite the recent drop, interest rates are projected to reach 5% in 2019.
The interest rate you secure when buying a home not only greatly impacts your monthly housing costs, but also impacts your purchasing power.
Purchasing power, simply put, is the amount of home you can afford to buy for the budget you have available to spend. As rates increase, the price of the house you can afford to buy will decrease if you plan to stay within a certain monthly housing budget.
The chart below shows the impact that rising interest rates would have if you planned to purchase a $400,000 home while keeping your principal and interest payments between $2,020-$2,050 a month.
With each quarter of a percent increase in interest rate, the value of the home you can afford decreases by 2.5% (in this example, $10,000).
A ‘normal’ real estate market requires there to be a 6-month supply of homes for sale in order for prices to increase only with inflation. According to the National Association of Realtors (NAR), listing inventory is currently at a 3.9-month supply (still well below the 6-months needed), which has put upward pressure on home prices. Home prices have increased year-over-year for the last 81 straight months.
The inventory of homes for sale in the real estate market had been on a steady decline and experienced year-over-year drops for 36 straight months (from July 2015 to May 2018), but we are starting to see a shift in inventory over the last six months.
The chart below shows the change in housing supply over the last 12 months compared to the previous 12 months. As you can see, since June, inventory levels have started to increase as compared to the same time last year.
This is a trend to watch as we move further into the new year. If we continue to see an increase in homes for sale, we could start moving further away from a seller’s market and closer to a normal market.
If you are planning to enter the housing market, either as a buyer or a seller, let’s get together to discuss the changes in mortgage interest rates and inventory and what they could mean for you.
HAPPY NEW YEAR!!!
Home is where our most cherished memories are made. Where the stories of our lives are fashioned and held close. As a reflection of our dreams and aspirations, home is the most personal of places.
So we feel very privileged to have assisted many sellers and buyers in 2018 and that you have invited us into your lives and homes. We pray that God will bless you and your families with a wonderful year filled with happiness, heartfelt warmth and many magical moments. Happy Happy New Year!!
There is a lot of uncertainty regarding the real estate market heading into 2019. That uncertainty has raised concerns that we may be headed toward another housing crash like the one we experienced a decade ago.
Here are four reasons why today’s market is much different:
A major challenge in 2006 was the number of foreclosures. There will always be foreclosures, but they spiked by over 100% prior to the crash. Foreclosures sold at a discount and, in many cases, lowered the values of adjacent homes. We are ending 2018 with foreclosures at historic pre-crash numbers – much fewer foreclosures than we ended 2006 with.
Ten years ago, many homeowners irrationally converted much, if not all, of their equity into cash with a cash-out refinance. When foreclosures rose and prices fell, they found themselves in a negative equity situation where their homes were worth less than their mortgage amounts. Many just walked away from their houses which led to even more foreclosures entering the market. Today is different. Over forty-eight percent of homeowners have at least 50% equity in their homes and they are not extracting their equity at the same rates they did in 2006.
3. Lending standards are much tougher
One of the causes of the crash ten years ago was that lending standards were almost non-existent. NINJA loans (no income, no job, and no assets) no longer exist. ARMs (adjustable rate mortgages) still exist but only as a fraction of the number from a decade ago. Though mortgage standards have loosened somewhat during the last few years, we are nowhere near the standards that helped create the housing crisis ten years ago.
4. Affordability is better now than in 2006
Though it is difficult to afford a home for many Americans, data shows that it is more affordable to purchase a home now than it was from 1985 to 2000. And, it requires much less of a percentage of your income today than it did in 2006.
Bottom Line
The housing industry is facing some rough waters heading into 2019. However, the graphs above show that the market is much healthier than it was prior to the crash ten years ago.
Selling your home can easily feel overwhelming. Most of us have a lot of stuff, and just the word "decluttering" can trigger a panic attack. But depending on your timeline for moving, preparing to sell your home can take as long (or as short) as you need it to.
For some home sellers, especially those who have lived in their home for decades, getting ready to sell might take years. Maybe you're facing physical limitations, and need to hire professionals to reduce the clutter and clean all the sneaky corners. Or maybe you just want to take your time going through the house that you've loved and lived in for so long. Whatever the reason, it's ok if it takes a while to get ready for listing. Talk with an agent about the market and strategize your timing to maximize your sales price.
Other home sellers might be dealing with a job transfer that requires a fast move. I recently had clients who needed to move within a month, so we had their home listed within 5 days of our first meeting. That definitely isn't typical, but we made it work.
This timeline gives you a rough idea of the stages of getting your home listed. There of course are a lot more details along the way. And this doesn't begin to cover the checklist after an offer is received. But if you're thinking of selling your house, and wondering where to begin, this should help!
One of the BEST things about the holidays is that there are always things to do around town – holiday-related or not.
Here's a look at some of the holiday events we know of in the Denver metro area and beyond, so get out and enjoy. Happy Holidays Everyone!!
Do you have a holiday event that's not included in this list? Send an email to info@perfecthouseforyou.com and we will gladly add it to our list.
WHEN: Dec. 8, 2018. Pre-festivities begin at 10:30
WHERE: Downtown Parker
Come and experience that holiday feeling in the air and enjoy this all-equestrian parade made up of dozens of horse-drawn carriages, wagons, surreys and stagecoaches from across Colorado, all dressed up for the occasion.
WHEN: Nov. 10–Dec. 24, 2018
WHERE: Cherry Creek Shopping Center
Let your little ones help Santa ready his sleigh for the big day during Santa's Flight Academy! Visit with jolly St. Nick, try out his Flight Suit Visualizer and enjoy the magical snow and light show at Cherry Creek Shopping Center.
WHEN: Nov. 16–Dec. 23, 2018
WHERE: 1515 Arapahoe St.
The Christkindl Market includes vendors from Germany, Ukraine, Ireland and other countries — as well as local artisans — offering high-quality gifts, such as hand-carved wooden figurines, handmade candles and ornaments. Entry is free and the entire family is invited.
WHEN: Nov. 20, 2018–Feb. 3, 2019
WHERE: Skyline Park, the corner of 16th and Arapahoe
Grab your family and friends and head to 16th and Arapahoe in downtown Denver to the Skyline Rink. Skate rentals are $2, or bring your own pair and take a spin on the ice for free! Free days for kids will take place throughout the season.
WHEN: Nov. 23–24, Nov. 30–Dec. 2, Dec. 7–9, 14–24 and 26–31, 2018
WHERE: Hudson Gardens & Events Center
Bundle up for a visit with Santa at Hudson Gardens in Littleton. After sharing your list with Ol' Saint Nick, sip hot chocolate as you stroll the outdoor paths lined with trees decked with more than a million twinkling lights.
WHEN: Nov. 23, 2018–Jan. 1, 2019
WHERE: Denver Botanic Gardens
Embrace the holiday season at Blossoms of Light. The first night will display over one million colorful lights draped in elegant designs highlighting the Gardens' winter beauty.
WHEN: Nov. 23–25, Dec. 1–2, 8–9, 15–16, 22–24
WHERE: Larimer Square
It's the happiest season of all at Larimer Square, where historic charm meets holiday cheer. With festive dining options and boutiques filled with treasures for everyone on your 'Nice' list, Larimer Square help you celebrate in style.
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WHEN: Nov. 23–Dec. 23, 2018
WHERE: Chatfield Farms at the Denver Botanic Gardens
Bring the kids to meet Santa (and his reindeer), make crafts with Mrs. Claus and take a magical hayride under twinkling holiday lights at Santa's Village. Afterward, the whole family can shop for handcrafted gifts in Santa's workshop.
WHEN: Nov. 30, 2018–Jan. 6, 2019
WHERE: Denver Zoo
Zoo Lights will span 70 acres of Denver Zoo's campus with nightly entertainment, animal encounters, Santa meet-and-greets and, of course, illuminated animal sculptures that swing through trees, jump across lawns hide in bushes and appear in places where they’re least expected.
WHEN: Nov. 19, 2018–Mar. 3, 2019 (closed Thanksgiving and Christmas days)
WHERE: Denver Art Museum
See 150 couture dresses, accessories, drawings, photographs and videos that span 70 years of the House of Dior's enduring fashion legacy.
WHEN: July 20, 2018–Jan. 6, 2019 (closed Christmas Day)
WHERE: Denver Museum of Nature & Science
Gather hidden clues and secret passwords as you work your way through puzzles, brainteasers and interactive challenges of Mindbender Mansion, designed to put minds of all ages to the test.
WHEN: Sept. 10, 2017–May 19, 2019 (closed Thanksgiving and Christmas days)
WHERE: Denver Art Museum
Whether depicted as faithful companions or threatening adversaries, animals have been the subjects of human art for centuries. Stampede allows visitors to consider the roles animals play in our lives and in our art through more than 300 paintings, sculptures and more.
WHEN: Sept. 16, 2018–Jan. 6, 2019 (closed Thanksgiving and Christmas days)
WHERE: Denver Art Museum
Take a close look at Rembrandt's innovative approach to printmaking. The exhibit — which will only appear at Denver Art Museum — features more than 100 prints, drawings and paintings from the Dutch master's career.
WHEN: Oct. 26, 2018–Jan. 20, 2019 (closed Christmas Day)
WHERE: Denver Museum of Nature & Science
This lively experience — presented in English and Spanish — immerses you in the people, landscapes, flora, fauna and daily life of Cuba. Learn about Cuban art and artists, walk along a Cuban street and explore a coral reef diorama.
WHEN: Nov. 17, 2018-March 31, 2019 (closed Thanksgiving, Christmas and New Year's days)
WHERE: History Colorado Center
Boarders and non-boarders alike will find inspiration in this look at the artistic side of snowboard design. Colorado artisans including Never Summer, Donek, Weston, Meier, and High Society will fill the History Colorado Center atrium with 26 Colorado-themed snowboards.
WHEN: Nov. 21, 2017–Dec. 31, 2018 (closed Thanksgiving, Christmas and New Year's days)
WHERE: History Colorado Center
History Colorado created a brand-new space, the Tim Schultz Gallery, to house this 3,700-square-foot exhibit of 100 objects, each of which had a role in shaping the history and culture of Colorado.
