HowMuch.net recently calculated how much income is needed to afford the average house in each state. Our home state of Colorado was in the top five expensive states thanks to the metro Denver region. HowMuch.net collected from Zillow.com average home prices for each state, which was then plugged into a mortgage calculator to determine monthly payments. It is important to note that mortgage payments consist of both repayment of the principal balance and interest owed. The interest rate used by HowMuch.net was between 4% and 5%, depending on the state. They also assumed a 10% down payment. Below is their… Read moreColorado Is In the Top 5 of Unaffordable Places Based on Income and Average Home Prices
We here at this blog typically focus on the (detached) single family housing market. With the new data for March 2018 out we will take a look at some worrying trends developing in the condo market that may be a leading indicator of the coming cracks in the metro Denver housing market. Active listings as of month end were up to 1,203, up 12.5% month over month and 4.7% year over year. This lagged behind detached single-family active listings, which were up 13.3% month over month. Supply is increasing which is putting pressure on high prices. Focusing on price, the… Read moreMetro Denver Condos Have a Worrying Current Days on Market Trend
The spring home-selling circus has begun and it has come in like a lion! The average price for a new home sold was up another 3.8% in March from February with prices rising to $522,277. It is up 11.7% from last March 2017. The median price of a home that sold in March was $440,875 up 1% from February and 8.5% year-over-year. Both the median price and average prices are at record highs and this comes with the headwind of higher interests rate. Although the impact of higher rates typically has a lag of up to 90 days with buyers… Read moreMetro Denver Spring Selling Season Starts with A High Speed Fastball!
SmartAsset recently published a list of the top places in which to sell a home. Seven out of ten were located in California and two out of ten were located in Colorado. Our home region town, Lakewood, CO took home the number one spot behind a lot of strong data. Homes in Lakewood average a mere 16 days on the market meaning a lot of sellers are getting cash offers. Median prices in Lakewood, CO were up almost 15% and only 3.1% of homes were sold for a loss. Closing costs averaged a mere $3,730, well below some cities like… Read moreTop 10 Cities to Sell a Home, Guess Which Metro Denver City was #1!
With interests rates rising, pushing up mortgage rates, mortgage refinances activities have dropped to low levels. This has led to a smaller pool of borrowers who both qualify for a refinance and want one. And the fish in this pool seeking to refinance are using these funds as a cashout, also known as a new mortgage that’s bigger than the existing mortgage and using the extra funds for anything they choose. Cashout refinances have now hit their pre-Global Financial Crisis High. Hopefully borrowers are using their new funds for responsible home improvements that increase their home value, but it also… Read moreAre Americans Making Houses ATMs Again? Cash Out Refinances at Loftiest Level Since 2008