Walters & Company Newsletter

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Monthly Market Update

The market stays robust for Denver in the month of October even though we see our lowest inventory in 30 years. You can see below sales price and sold price continue to rise and that there has been no change in days on market, year-over-year or month-over-month.

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What Do We Mean When We Say “Average”?

Of the homes that sold in October, the average detached single family home was 1,849 square feet, 4 bedrooms, 3 bathrooms and was built in 1979. The average attached family home (i.e. Condo) was 1,239 square feet, 2 bedrooms, 2 bathrooms and was built in 1987.


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#DenverHousingStats -April 2016

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April 2016 proved to be very similar to last year as you can see in the chart! This year’s inventory shortage, because it has been prolonged, makes it different than years prior, with pros and cons for both Buyers and Sellers. In some respects it shows signs of being as unbalanced as the market was in 2007/2008.

Let me explain. This kind of Seller’s market is causing Sellers to NOT list because they have no where to move up/move down to. Renting was a great plan B a year and a half ago, but rents are rising and making plan B look less attractive. As I sit at listing appointments I can point out seductive sales prices, Buyers forgoing appraisals and inspections and quick sales, but Sellers still are no less hesitant to put their homes on the market. This is causing an even greater tightening of housing inventory as we move into Spring. This market is too unbalanced and is beginning to cause hardships for both Buyers and Sellers.

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If you look at Colorado’s supply numbers they are down for the whole state to 2.2 months (33% year over year ) of supply and if you look at Denver Metro we have moved from  1.7 to 1.3 months of supply. This slowing begins to cause a build up of demand similar to what we saw right before 2013. I wish I had a crystal ball that could tell us when this pipeline of Sellers will burst!

Even though we are without a crystal ball, I am thinking that as home prices start to rise more minimally, Sellers will begin to have thoughts that mirror this: “Uh, Oh I better sell now before things slow too much”. We saw our first single digit (median house price) increase month over month in March, and then we saw it again in April….If this trend continues I see it as a good thing, a move towards a more balanced market.

I am always looking for balance in my life, aren’t you?

 

 

9796 Bucknell Way 80129

Bucknell Insta

Put this Highlands Ranch Home on your list to see today! It has 3 Bedrooms and 3 Baths with almost 2000 Finished Square Feet with an additional almost 700 in the Unfinished Basement. Located on a Large Fenced Corner Lot with tons of Privacy! The Home has a 2 Car Attached Garage, stainless appliances, granite counters, hardwoods and the Washer and Dryer are included too! For more information please call Danny at 303-916-7367 or Lizz at 303-907-1984!

Hacks for the Home Buyer

Home Buyer Hacks

I was out showing property to a younger couple this week and their strategies for purchasing a home were really Brilliant! After spending an afternoon with them I thought more people should consider some of these ideas when they are homebuyering.  I have also decided (while doing some graphic design today) that Iwould make up a new word “homebuyering” kind of like “Strategery” and see where it takes me….Here are some Tips or Hacks as they are now called, to consider when Buying a Home.

Here are your Hacks:

  1. Buying Below Your Means and Make Extra Principal Payments:

Considering the current cost to Rent in Denver, purchasing the right home might be able to save you a couple of bucks per month over the equivalent rent.  While some buyers take this to mean they can purchase a much larger home with a payment more in line with what they are paying in rent, consider purchasing a home that is less than your current rent.  With the additional money, you can pay down debt, improve the property, save for retirement, travel, etc. Buying below your budget means that you can apply extra money to the principal balance of your mortgage each month to pay it down and save money in costly interest.  For example, paying an additional $50 a month towards the principal of a 30 year mortgage would decrease the term by 2 years, 9 months.

2. Is a 30 Year Fixed Mortgage Necessary Always?

This is an interesting one because the housing downturn swung the pendulum too far in the wrong direction with regard to mortgage products. We threw the baby out with the bathwater when pundits decided after the housing downturn that the reason we had the bubble was because too many people had adjustable-rate mortgages. I say further evaluation of the different products is in order! For a lot of people, an adjustable-rate mortgage is a great way to finance a purchase of a home, depending on how long you’re going to be in the property. If you’re going to be there for less than seven years, you should absolutely consider an adjustable-rate mortgage. If you got a 30-year fixed for that five-year period, you’re going to pay more per month to live in the same home, and the reason is that you’re basically buying an option for the right to stay in that home for 30 years. But if you know you’re going to be there less than seven, you could pay a lot less on that home with an adjustable-rate mortgage. It’s shortsighted to just dismiss a whole class of mortgage products because of the way the media reported on the them during the downturn.

3. When getting closer to making the final decision you might want to know:

If you get good cell service while in the house. I guess this could depend on who your carrier is, but why not take note of it while you are there.

If you are Buying in Colorado, which way does the home face. For faster snow melt consider being SW or W for less shoveling.

Homes with street with names sell better than homes that have numbers for names. I read that “Sunset” and “Lake” are the preferred names. In Colorado the Sunset wouldn’t be that hard, but Lake my prove to be more challenging.

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4. Get Instant Updates from the MLS

For the last 12 months, many first time home buyers in the Denver area have found it frustrating to purchase affordable houses because of a lack of housing inventory.  The solution: beat the other home buyers to the punch by seeing the homes as soon as they are listed for sale on the market.  Most very popular websites only update every 24 hours with new listings and that is simply too late.  Fortunately, the local multiple listing service has a feature that will notify potential buyers the instant a home is entered into the system that matches their criteria.

Our website, http://www.gowalters.com updates every 15 minutes with new listings. So hop on there and set up a search for yourself today!

9947 Spring Hill Ln Highlands Ranch Colorado 80126

This 5 Bedroom 4 Bath beauty can be yours today! Brand new Deck with Mountain Views, New Wood Floors throughout main level, New Tile Floors, Updated Baths….the list goes on and on! Call 303-907-1984 today for your private viewing!

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Powerful Economic Data from Lawrence Yun……

Doctor Yun, Chief Economist for the National Association of Realtors, was in Denver at the end of April and shared lots of Data with the local Denver community of Realtors. His over all opinion of the Data was positive for the Housing Market for Denver and for our Nation as a whole. Below are some Data Points for you to browse from his speech:

  • We lost 8 mil jobs in the recession and have since added 12 mil
  • unemployment insurance claims at a 15 year low
  • Denver alone has added about 300,000 jobs since 2010 (could explain low inventory)
  • Household net worth at all time high Nationally
  • Vacation home Sales have doubled in the past two years
  • Pent up demand for housing is at an all time high, construction still sluggish
  • Since 2000 our population has grown by 37 million in 2014
  • 2000 New Homes Sales 880 K vs 2014 New Home Sales 440K
  • Average income is on the rise in Denver and while there have been negative pressures from the Engery sector the other parts of our economy are doing enough to offset them
  • 36% of all US folks Rent this number will trend higher as loans continue to be difficult to get and because we don’t have enough inventory for the 1st time home buyer sector.
  • The Landlord market will stay strong in Denver until we have enough rental units to keep pace with our population growth. This could be awhile.
  • Construction has been slow to re-bound in Denver mainly because of lack of land and backlogged city construction permits.
  • Looking for rates to be higher in 2016
  • Continued low inflation rates

Just some points from his talk…if you would like the slides I am happy to provide them to you! Just send me an email at 5280walters@gmail.com and I will get them over to you in a jiffy!

Metro Denver Setting Inventory Records…..

“The number of unsold homes in metro Denver last month fell to just 8,041, which stands out as a record low for any October”, says the Denver Business Journal.

Walters and Company is offering a listing special from November 2014 through March 2015 to encourage people to get their homes on the Market. The Denver housing Market needs listings to accommodate the many Resdential Buyers and Investors that all local Realtor’s have in large numbers.

Inside Real Estate News examined Metrolist data going back to 1985, and last month was the first time the number of unsold homes during any October fell below 9,000. The previous low for the month was 9,643, in October 1992.

During October 2013, there were 10,376 homes for sale in metro Denver, or 25.5 percent more than were available last month. We are watching inventories closely, so these statistics are not surprising, but still frustrating for our Buyers.

If you are thinking of selling your home over the next 6 months we hope you will keep us in mind! We are happy to sit down with anyone thinking about a change in their Real Estate Horizon! There are so many opportunities in a market like this…..let us show you what you can do!