5280 Living Blog

Jan. 9, 2016

What Can We Expect in 2016???

We had our first team meeting of the year today and we were talking about how much Denver area values have gone up in the past couple of years and especially last year. I just checked our MLS data (which should be the most reliable). It has stats published through the end of November and shows that at that point the average sold price was $401,500, up 11% from the same time 12 months earlier ($361,318 Nov. 2014). I am assuming that 11% or maybe even a little higher will be the final number for 2015. It's almost inconceivable to me that we've moved from what was an average sold price of about $250,000 a few short years ago to where we are now.

We also talked today about how difficult it is for ALL of today's buyers who want to live in the Denver area. The difficulty is not confined to just first -time buyers. Case in Point: We talked about a client of ours that bought a house a couple of years ago for $400,000 who now needs more room as their family is growing. Their house is now worth about 20-25% more, or about $490,000. In order to make any appreciable difference in their living space and not make a lateral move they'll need to look at homes in at least the $600-$700 range. Although they'll have a decent amount from their sale to put down, they are still going to be looking at a significant increase in payments. We believe the aforementioned scenario is a major contributing factor to why the inventory levels remain low. Many people would like to move but can't justify it or afford it. I mentioned to the team that this has been going on for many years in other metropolitan areas such as LA, San Francisco, New York, etc. and people still managed to buy and sell. I guess this is our new norm and we're all going to have to get used it and figure out how to make it work. Experts are predicting about a 4% appreciation rate for the Denver area in '16. If that holds true, the average sold price will be $417,560 next year at this time. Yes, the prices are high but they're only going higher and interest rates will probably go up as well, adding insult to injury, so I guess the best time to buy is now.

With all of the above said, it's important now more than ever for you to keep up on what values are doing in your neighborhood or in a neighborhood you'd like to live in. I encourage you to take advantage of some of the tools that we use and make available complimentary to our past and prospective clients. We actually have several programs that we use regularly, but I'd recommend one in particular to you. It's a product that we pay for from the National Association of Realtors which pulls data directly from our MLS. Unlike some of the well-known third party programs that you are already familiar with like Zillow, Trulia, etc. this one is perfectly accurate, reliable and unfiltered. The mapping displays are also very eye-pleasing and easy to navigate. The program is called "Market Snapshot." It will also update you automatically via email at intervals you choose. Our clients that are using it give it rave reviews, so take advantage of this freebie and get set up by going to:

http://www.homeinsight.com/Widget/default.asp?O08EY32CQRVI.

We also have a great search tool and home valuation tool available on our website http://5280living.com

If you want a very accurate and free home valuation which is as about as close to a professional appraisal as you can get, call or email me. I've done hundreds over the years; Many for banks. In most cases my valuations turn out to be more accurate that the professional appraisers' because I have a better feel for the market than many of them do. They are not in the trenches! My estimate of value cannot be used for financing purposes like the $400+ appraiser's version but it will give you a very good sense of what your home is really worth.They take me about 2 hours to put together and I'm happy to do it for you!

 

If a move is in your plans for 2016 I hope you'll contact us. You can be assured that we'll make your experience a great one!! Jeff. 720-937-5333 jeff@5280living.com

Posted in Denver Real Estate
Nov. 28, 2014

November 2014 Housing Trends

November 2014 Newsletter Housing Trends eNewsletter

Welcome to the most current Housing Trends eNewsletter. This eNewsletter is specially designed for you, with national and local housing information that you may find useful whether you’re in the market for a home, thinking about selling your home, or just interested in homeowner issues in general. 

The Housing Trends eNewsletter contains the latest information from the National Association of REALTORS®, the U.S. Census Bureau and Realtor.org reports, videos, key market indicators and real estate sales statistics, a video message by a nationally recognized economist, maps, mortgage rates and calculators, consumer articles, plus local neighborhood information and more. 

Feb. 18, 2014

Low inventory drives up Denver luxury home prices

Continued low inventory among metro Denver luxury homes drove prices higher and average days on the market lower, according to report Friday from Kentwood Real Estate.
There were 26 homes with a price tag over $1 million sold in January, down 16 percent from the 31 sold last year. But average prices jumped 14 percent year over year and days on the market plunged almost 50 percent, from 209 days in January 2013 to 108 days last month.
"I’ve never been in a more volatile market,” said Kentwood’s Edie Marks, broker associate with 34 years of market knowledge. “It’s like the stock market sometimes ... The volatility has a lot to do with confidence at any given point to motivate people if they need a bigger house. We’ve seen as much move-down as move ups.”
The dollar volume of homes sold came in at $42.7 million, down 4.2 percent year-over-year.
Marks said it still costs more to build a luxury home here than to buy a resale, so buyers are still looking to get a deal while sellers have gotten enough appreciation back to list homes that were previously underwater.
“There’s definitely a lower number of houses available,” Marks said. “And that’s for a good reason. We took a hit of 40 percent in the very high end market in appreciation — it just disappeared never to be seen again. In many cases that’s back 20 percent, but whoever bought in the last 5 to 7 years is still underwater. With those lower values, they’re still reluctant to come on the market.”
The highest price home sold in January was for $5.8 million, up 42 percent from the most expensive sale in January 2013. The dollar sales volume for last month came in at
There are 449 $1 million-plus homes on the market in metro Denver, the report shows.

(© 2014 American City Business Journals. All rights reserved.)

Posted in National
Aug. 7, 2013

Obama Ready to Pull the Plug on Fannie Mae, Freddie Mac

 

Fannie Mae, Freddie Mac in Trouble

According to the Denver Business Journal: 
 

President Barack Obama endorsed winding down Fannie Mae and Freddie Mac, the mortgage giants that had to be bailed outby the federal government during the financial crisis.

In a speech on housing delivered in Phoenix, Obama said putting these entities out of business is necessary in order "to make sure the kind of crisis we just went through never happens again."

"For too long, these companies were allowed to make big profits buying mortgages, knowing that if their bets went bad, taxpayers would be left holding the bag," Obama said. "It was 'heads we win, tails you lose.' And it was wrong.

"No more leaving taxpayers on the hook for irresponsibility or bad decisions," Obama said.

A House committee has approved Republican-backed legislation to wind down Fannie Mae and Freddie Mac over five years and rely on the private sector to provide a secondary market for residential real estate mortgages. Obama, however, seems to prefer the approach taken by a bipartisan bill pending in the Senate, which would replace Fannie Mae and Freddie Mac with a Federal Mortgage Insurance Corp. The FMIC would provide insurance on mortgage-backed securities and collect premiums from issuers.

"I support these kinds of efforts," Obama said, referring to the Senate approach.

"I believe that while our housing system must have a limited government role, private lending should be the backbone of the housing market, including community-based lenders who view their borrowers not as a number, but as a neighbor," the president said.

Obama also called for preserving access "to safe and simple mortgage products like the 30-year, fixed-rate mortgage." Critics contend the House bill to end Fannie Mae and Freddie Mac would jeopardize 30-year mortgages.

The House bill also would limit the Federal Housing Administration's role in housing finance. Obama, by contrast, said Congress needs "to strengthen the FHA so it gives today's families the same kind of chance it gave my grandparents, and preserves the fund on the ladder of opportunity."

Congress isn't expected to pass any bills to wind down Fannie Mae or Freddie Mac this year, but Obama's support for ending them sends a signal that their days are numbered. The question is what replaces them -- a more limited government role in the secondary mortgage market, or no government role at all.

 

Posted in National