Hello Everyone:  Thought this article would be of interest to you. Over and over again I keep hearing there are not enough homes for sale for buyers wanting to buy.  This article seems to confirm this.

Housing Starts, March 16, 2023

March 16, 2023

Multifamily Properties

By: Lawrence Yun

Apartment and multifamily housing construction continued its near 40-year high trends with 620,000 units started in February. The market is responding to solid rent growth and low vacancy rates of both apartments and single-family rental units. But with such active construction, plenty of empty units will be hitting the market throughout this year and the next. Rents will calm down – a preferred way to rent control – and will even drive the overall consumer price inflation to be manageable.

Single-family home construction is much more restrained. Only 830,000 units were started, well below the pre-COVID year of 2019, and lower than the one million units historical average and required given the normal population growth. It is understandable given high mortgage rates for homebuilders to be cautious. However, once rents and consumer price inflation calm down, mortgage rates will be lower. Will there be enough inventory to satisfy rising home purchase demand?

 

Lawrence Yun

Chief Economist

Lawrence Yun is Chief Economist for the National Association of REALTORS®. 

 Hello everyone:  I think this is a great update for everyone to read !  Have fun.

Instant Reaction: Mortgage Rates, March 16, 2023

March 16, 2023

Mortgage Financing

By: Nadia Evangelou

Due to recent developments in the banking sector, mortgage rates fell this week. Following the trend of the 10-year Treasury yield, the average rate on a 30-year fixed mortgage dropped to 6.60% from 6.73%. However, rates may decrease even further in the coming weeks depending on reactions in the financial market and the outcome of the Fed’s meeting next week.

However, this rate drop was enough to make homebuying affordable again for many Americans. At today’s rate, many can afford to buy a median-priced home since they need to spend less than 25% of their gross income for a monthly mortgage payment. If rates fall further to 6%, buyers will be able to purchase the median-priced home by putting down 14%, which was the median down payment of buyers in 2022.

 

Nadia Evangelou

Senior Economist & Director of Real Estate Research

Nadia Evangelou is Senior Economist & Director of Real Estate Research for the National Association of REALTORS®. 

 

 

This is a Blog and not a “website”, however, I choose to use a blog because it gives me the opportunity to post items I believe are important for buyers and sellers to read off and on.  As you can see, I have not posted in many years.  The reason:  I have been working for a Real Estate Company and had a website through their company.  I am presently an Independent Realtor, part of Loveland/Berthoud Real Estate Association and the Independent Realtors within that group.  So, I decided to go back to my old blog and utilize this instead of creating a website.  I find that websites are good, but most of the information you find on one Real Estate Agents website you can find about anywhere.  I am hoping to find time off and on posting something you might not find everywhere.  Hopefully, I can find time for that.  If you want to look for Homes for sale in Colorado the best site I have found is Recolorado.com  this site is where Real Estate Agents in Colorado Post their homes for sale.  It is real time and you will not miss properties listed because it shows up as soon as a Real Estate Agent makes it go live.  If you need help let me know.  It is very user friendly. I love sharing my knowledge!!! If you have any Real Estate Question, don’t hesitate to reach out to me.  303-880-8771 or dwambs@msn.com  I also have a strong network of people I know in the Real Estate world overall so if you need a Mortgage, Title work, Inspection etc. give me a call.

It is a GREAT time to sale a home in Metro Denver

BLISTERING, SIZZLLING, RED HOT Blistering. little inventory to meet buyer demand so sellers Sizzling. Red hot. These are the words that describe our housing market under $300k. We haven’t seen a market like this in years. Multiple offers are the order of the day. There’s simply too are pushing prices back up to pre-crash levels. The laws of supply and demand are very much in effect. Look at the inventory levels in Metro Denver for the past 10 Februaries: 2012 – 10,086 2011 – 17,358 2010 – 18,869 2009 – 20,059 2008 – 25,037 2007 – 24,838 2006 – 25,484 2005 – 21,730 2004 – 23,212 2003 – 22,989 This is what a recovery is supposed to look like: a dramatic drop in inventory followed by rising prices. If you’ve been considering a move, call me so I can do an analysis of the inventory and price movement in your neighborhood. After many years stuck in a buyer’s market, now might be the time to put your house up for sale and take advantage of the great seller's market. Feel Free to call to Brainstorm – I love sharing my knowledge and expertise. DENISE WAMBSGANSS – Realtor – Your Castle Real Estate – dwambs@msn.com 303-880-8771

Mortgage Rates and Real Estate Statistics Metro Denver Colorado

Rate versus Price Reduction REAL ESTATE for Metro Denver Colorado Everyone wants to get the best deal when buying a home. However, for potential buyers who are waiting to see if home prices come down a little more, the wait could cost them. Let's look at an example to see why. Say a homebuyer wants to buy a home that costs $300,000. But the buyer wants a better deal on the home, so she delays a transaction until the home is reduced by $10,000. If, in the meantime however, rates were to rise .75% to 6.00% and the buyer financed 90% of the purchase price, the amount of total payments over a 30-year term would be over $35,000 more than paying the $300,000 purchase price and locking in the 5.25% interest rate. In other words, the buyer would save $10,000 only to end up paying $35,000 more. Now these prices and rates are just for the sake of example. But the point is that home prices are already very affordable...and rates are still low for now. So in the end, waiting for a home price to reduce may end up costing homebuyers much more than they expect if rates rise. One more thing that most buyers don’t realize is: For every $1,000 they save it only lowers their mortgage $4.00 a month. The figures below are for the Metro Denver Colorado area Prices of homes below $85,000 went UP 19% in the last 12 months, prices between $86,000 and $135,000 went up 10%, prices from $136,000 to $210,000 went up 6% and prices from $211,000 to $315,000 went up 1%. Homes above $315,000 went down in price in the last 12 months. What this trend is showing it that prices of homes are beginning to hold steady and rise. So, if someone is going to purchase a home, NOW is the time to buy before prices continue to rise. If you would like to brainstorm about Real Estate feel free to call or email Denise Wambsganss – Realtor at Your Castle Real Estate 303-880-8771 or email: dwambs@msn.com

Denver Metro RE Market is CHANGING !
Denver Metro Inventory & Price Changes

Below is an article giving information
about how eclectic the Metro Denver housing market has become.
Today, I personally experienced the low end market, between $85,000 to $135,000. I wanted to look at two homes that were on the market ONLY 3 days. BOTH of these homes already had MULTIPLE offers that were ABOVE the listing price. So the figures below are TRUE, and as is stated below, Prices in Denver are going up, and in the lower end homes,
it is NO LONGER a Buyers Market in this price range.
Here’s something many people don’t know – the inventory of homes for sale in the Denver metro market is at a 10 year low! Most of our clients still think it’s a strong buyer’s market and that they can get a great discount on a property with little effort. But the market has changed radically in the past year and this is no longer true. We have 5.5 months of inventory, overall, but the amount of inventory is highly dependent on the price of the home. For example, there is currently only 4 months of inventory of homes under $85k. Stepping up to the $85k - $135k price range there’s even less inventory – 3.6 months! Even in the $210k - $315k price band there is only 4.9 months of inventory, still a buyer’s market ? Not hardley
Supply and demand being what they are, the one year change in home prices correlates perfectly with the supply of homes. At the low end, prices have surged up 19% in the past 12 months! The shortage of inventory has, and likely will continue to drive up prices of entry level homes. On the other hand, in the $460+ market where there is still 10.9 months of inventory, prices have fallen 13%. High end homes, suffering with too much inventory, continue to see price declines.
I also want to share more personal experience. My husband and I purchased a home in the Berkeley Subdivision. We purchased it for $143,000, gutted it down to the studs ! Cost of renovation was around $53,000. It recently appraised at $245,000. Yes…. I said $245,000, that is a $49,000 profit !! So, there are still great deals out there, BUT it takes a lot of time and effort to find them. These kind of deals are no longer a dime a dozen, and very unlikely you will find them on your own.
This shows that the Metro Denver housing market is VERY ECLECTIC. I would be happy to consult with anyone who is interested in buying or selling a home. My ability of accessing information about individual neighborhoods is a crucial part of what makes me a Real Estate Consultant, not JUST a Real Estate Agent. Please feel free to Denise Wambsganss – Realtor – Your Castle Real Estate 303-880-8771 or email me at dwambs@msn.com