February’18 Shows Rising Prices and Inventory Levels for Metro Denver Area

According to a report published by The Denver Metro Association of Realtors, article summary here there was some good news on the low supply of homes being sold in the metro Denver area. In February houses for sales rose 10.9% over January ’18 and 5.6% over February ’17, with 4,638 new listings. This is unusual to see at this time of year according to Steve Danyliw, chairman of the DMAR Market Trends Committee, who said, “ we normally see a small seasonal decrease this time of the year.” The report also notes that ” they (DMAR) continue to see price… Read moreFebruary’18 Shows Rising Prices and Inventory Levels for Metro Denver Area

Pending home sales jumped 3.1% MoM in Feb ’18 beating expectations

Pending home sales across the country increased 3.1% month over month in Feb ’18 beating the expected gain of 2.0% forecasted. January ’18 pending home sales were revised down to 5.0% from 4.7%. Although the market had a nice bounce back it is still facing several headwinds heading into the peak Spring season. These include a persistent shortage of affordable housing inventory, property prices continuing to rise, and mortgage costs are increasing. Lawerence Yun, NAR economist had this to say, “The expanding economy and healthy job market are generating sizeable homebuyer demand, but the miniscule number of listings on the… Read morePending home sales jumped 3.1% MoM in Feb ’18 beating expectations

The Current Year: A Tough Time for First-Time Home Buyers

The New York Times had an article published recently called 2018: A Tough Year for First-Time BuyersI bet if I did a little googling I could find an article every year since 2012 stating how hard it has been to buy a house as a first-time buyer, due to the low supply of housing, tough mortgage application standards making it harder to get credit, and increasing prices. The article is divided into four sections, each section highlighting a factor that makes 2018 the toughest year ever for first-time buyers. The sections are the new tax law, low inventory of houses,… Read moreThe Current Year: A Tough Time for First-Time Home Buyers

Case-Shiller Housing Price Index Highest In 4 Years, All Cities including Denver Have Gains

The first two months of 2018 had some slow sales data, but Case-Shiller Home Prices jumped at a faster-than-expected 6.4% year over year in January versus 6.15% expected. All the cities in the index showed a gain year-over-year led by Amazon-fueled Seattle at 12.9%. Denver was up 7.6% year over year. Month over month Denver was tied with Atlanta and Seattle for the highest gain at 0.7%. David Blitzer, chairman of the index committee at S&P Dow Jones Indices, noted in a release, the price gains are all about demand and lack of supply. He said, “the current months-supply —… Read moreCase-Shiller Housing Price Index Highest In 4 Years, All Cities including Denver Have Gains

Millennials Lead All Home Purchases, Even as Some Still Live in Their Parent’s basement

Millennials often get a bad wrap. Millennials are often stereotyped as overspending on unnecessary purchases such as avocado covered toast or burnt espresso iced coffee, having low paying jobs that they are overqualified for and having too much student loans debt that they spent on a worthless degree. However, one thing they are doing more than any other generation is purchasing homes. A little more than a third of all home purchases were made by millennials followed by Gen X at 26%, younger boomers at 18%, older boomers at 14% and Silent Generation at 6%. This was the fifth consecutive… Read moreMillennials Lead All Home Purchases, Even as Some Still Live in Their Parent’s basement

Metro Denver Real Estate Inventory, A Story of Haves and Have-nots

Spiking home prices, rising mortgage rates and historically low inventory levels are wiping out the starter home population in the metro Denver area. Let’s address each of the issues that are leading to the market pricing out starter home buyers. Looking at the inventory of homes, one would think that our market is increasing supply with inventory up 4.6% from the first quarter of 2017 to 2018. This outpaces the national increase of 3.3%. Data from Trulia is useful to better interpret the supply of housing inventory. Trulia divides markets into tiers: starter, move-up, and premium. In a perfectly balanced… Read moreMetro Denver Real Estate Inventory, A Story of Haves and Have-nots

New Home Sales Drop for Third Straight Month

New home sales were expected to bounce back from the January 2018 decline of 7.8% but dropped 0.6% in February 2018. This is the first time that new home sales have declined for three straight months since the first quarter of 2014. Looking at the regional breakdown it was a mixed bag with new home purchases rising in two regions and declining in two regions. Sales fell 17.6% in our home region the West. National median sales price continued to increase, rising 9.7% year-over-year to $326,800. Bloomberg suggested that steady hiring and low employment combined with high consumer confidence will… Read moreNew Home Sales Drop for Third Straight Month

Spotlight: 11568 Depew Ct, Westminster, CO 80020

One of the things we do on this blog is spotlight certain houses for sales and offer our commentary. 11568 Depew Ct in Westminster, CO has been recently listed for $425,000. The home was last purchased in September of 2015 for $315,000. That is a price appreciation of nearly 35% in less than three years and an additional $110,000 of equity if sold at the current list price. One thing we like to do is to check “recolorado.com” to see before and after pictures, if the house was sold was a relatively short time ago in the past. The internet… Read moreSpotlight: 11568 Depew Ct, Westminster, CO 80020

The Bubble Blows Bigger! Median National Home Price up 5.9% in February ’18

After two straight months of downward sloping data, existing homes sales rose 1.1% in February 2018. Median home prices rose 5.9% year-over-year. Month-over-month, existing home sales rose 3.0% versus 0.4% expected. However, there was a clear divergence between single family homes and condos. Single-family homes sales increased 4.2% while condominium and co-op units declined 6.5%. While purchases rose 11.4% month-over-month in our home region of the West, the Northeast saw a 12.3% month-over-month declines in sales that is being blamed on Nor’Easters the pummeled the eastern seaboard The biggest story continues to be the lack of inventory in the housing… Read moreThe Bubble Blows Bigger! Median National Home Price up 5.9% in February ’18

Tips and Trips Used by Real Estate Agents to Get the Best Deal – For Their Homes

In the Wall Street Street Journal last week, they had a puff piece for the real estate industry called, How Real-Estate Agents Get the Best Homes—for Themselves. Real estate agents often times are some of the first to spot hot properties, have a good understanding of local inventory and lastly, most have a working knowledge of construction, plus relationships with architects, builders, and designers in their local market. To buy or sell their own home, the National Association of Realtors they are required to disclose a personal interest in a sale or purchase and that is about it. So they… Read moreTips and Trips Used by Real Estate Agents to Get the Best Deal – For Their Homes