Call me today at 303-442-5001. Let’s discuss your options. I'm really excited to speak with you.
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In real estate, there is always buzz about the “spring market.” It gets a lot of attention about being the best time to buy and sell. Did you know the spring market starts now? Mid-January is actually when buyers begin looking for their next move. It’s a popular time as the holidays are behind us, New Year’s resolutions have been made, and many people are focused on where they see themselves for this new year. If you have a home in a lower price bracket that may appeal to entry-level buyers, now is an excellent time to list.
If you’re selling, the key is to capture these buyers who have made up their mind to buy a home this year. Many are looking for a spring closing, so while it may technically be winter now, you’re more likely to get top dollar earlier in the season. February 15 to April 15 is really the heart of the spring market. Waiting too long to list can be a mistake, as many want to be moved into their new homes before the start of summer. Especially when families with school-aged children are moving into a new neighborhood, they prefer to be settled into their new area as early in the summer as possible to get acquainted with the neighborhood and form friendships before school begins.
Has a spring or summer move been on your mind? I’d be happy to help. Call Dave today at (303) 442-5001 and we can figure out the best time to begin your home search or list your home specific to your price point and area.
We’ve all heard the saying about always a bridesmaid, never a bride - the girl who goes to all the weddings but doesn’t get married. In real estate, there are houses like that which have a hard time going under contract - “bridesmaid houses.” Whether it be due to a poor location, structural issues, or condition of the home, these homes are often overlooked by buyers. However, the discount these homes can fetch is all about timing.
In a seller’s market, which we’ve seen in the last 5-7 years as the market continues to go up, these homes have been a bit easier to sell. There might be just a 3-5% discount on a home that backs to railroad tracks, is on a busy corner, or has deferred maintenance. Ultimately, that isn’t too bad. But as the market shifts to more of a buyer’s market, these buyers will have increasing options to choose from.
When a buyer is house hunting and there are 10 houses that aren’t bridesmaids houses but one that is, the only way to get that bridesmaid house sold is to reduce the price. This means we’ll see a house that may sell at a 3-5% discount in a seller’s market sell for as much as a 15-20% discount in a buyer’s market.
If you know of anyone who has a house that might be challenging to sell, now is the time to do it. The market is starting to change, and the discounts aren’t as significant yet - especially in the spring.
Coldwell Banker releases new ad for their Homes for Dogs project.
Friends and Clients —
Some potentially worrying news came out this month:
Home affordability is shrinking rapidly, according to research by Arch Mortgage Insurance.
In the first quarter, affordability (defined as the size of the monthly mortgage payment needed to buy a home) dropped by 5%. This was mainly due to the increase in mortgage rates, and, to a lesser extent, an increase in home prices.
As a consequence, more people are now stretched and taking on greater debt relative to their income. Other buyers are being pushed out of the market altogether.
And that's not all. Affordability is expected to drop another 15% to 20% by the end of the year. That's because home prices continue to rise, and the Federal Reserve is expected to ratchet up its reference interest rate, which often leads mortgage rates, three more times this year.
What does this mean for you?
Well, if you're looking to sell, you won't have a hard time finding a buyer. Even with decreasing affordability, demand for homes still far outstrips supply.
However, it's certain that buyers will look to take advantage of current conditions before affordability drops further.
That means that this spring and summer might see an additional rush on the real estate market. It also means that right now might be a very good time to list your home if you've been thinking about selling for a while.
On the other hand, if you are thinking of buying a home, you might think news spells doom for you.
However, there's no need to panic.
While affordability is dropping, it is still well above historical averages (just like current mortgage rates). In fact, Arch Mortgage Insurance estimates that homes are now 15% to 20% more affordable than they have been in the period from 1987 to 2004.
At the same time, it's certainly true that mortgage rates are going up, and this will affect what your monthly payments will be on a new home. From this perspective, it makes sense to move now in case you've been looking to buy before rates rise further.
So what's the next step?
If you are thinking of selling, you can get started by finding out what your home might be worth in the current environment. Simply use this home value calculator that takes into account recent Boulder and Denver sales:
Enter your street address here to find out what your home is worth
And if you are looking to buy, check out all the great Boulder and Denver area homes that have recently come on the market:
Click here for all available Boulder and Denver homes for sale
Finally, if you have any questions (whether you're looking to buy or sell), give me a call at 303-442-5001. I'm very active in the Boulder and Denver real estate markets, and I'm always here to help.