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Inventory Drops Again... List Now!

by Cory Dudley

 

  • Existing Home Sales are now at an annual pace of 5.52 million.
  • Inventory of existing homes for sale dropped to a 4.3-month supply, marking the 25th month in a row of declines.
  • The median price of homes sold in June was $263,800. This is the 64th consecutive month of year-over-year price gains.​​

If you've been considering selling your home, now is the perfect time to go on the market! Give us a call for an in-home visit and we'll get started....

 

Rising Home Prices Mean Good News for Homeowners

by Cory Dudley

 


 

Recently there has been a lot of talk about home prices and if they are accelerating too quickly. As we mentioned before, in some areas of the country, seller supply (homes for sale) cannot keep up with the number of buyers who are out looking for homes, which has caused prices to rise.

The great news about rising prices, however, is that according to CoreLogic’s Homeowner Equity Report, the average American household gained over $14,000 in equity over the course of the last year, largely due to home value increases.

The map below was created using the same report from CoreLogic and shows the average equity gain per mortgaged home during the 1st quarter of 2017 (the latest data available).

 

 

For those who are worried that we are doomed to repeat 2006 all over again, it is important to note that homeowners are investing their new-found equity in their homes and themselves, not in depreciating assets.

The added equity is helping families put their children through college, invest in starting small businesses, pay off their mortgages sooner and even move up to the home that will better suit their needs now.

 

Bottom Line

If you are a homeowner looking to take advantage of your home equity by moving up to your dream home, let’s get together to discuss your options!

 

New Smucker Plant Settling in Longmont

by Cory Dudley

 


 

J.M. Smucker (yes, as in the jam making company) has successfully closed on it's $4.65 million land purchase in Longmont. The parcel of land is located along Highway 119 in the Concepts Industrial Park. Smucker received several incentives from the city of Longmont, Weld County and even the state of Colorado to build their newest manufacturing operation here in the colorful state. 

 

 

Construction is believed to begin this spring, which is based on the company's first announced intention back in January 2017. Phase one of the construction will cost up to $200 million and require 250 jobs to be created, though Smucker aims to expand their site and eventually employ 500 people. As part of the incentive package that Longmont offered to the company, their employee's average salary will be $48,977. 

Planners anticipate that the plant will bring in over $12 million in direct revenue to Longmont over the course of the next 10 years. 

 

Critical Progress Made on Construction Defect Law Reform

by Cory Dudley

 

 

Colorado Construction Defect laws have severely impacted developer's confidence in providing affordable condo housing, but there is now a light at the end of the tunnel! Wednesday evening, legislature made significant progress by providing their unanimous support to House Bill 1279; a measure that would require majority homeowner consent before legal action can be taken against a condominium builder for shoddy workmanship. Supporters of the bill asked for compromise on an issue that has stagnated the multi-family market for far too long, effectively shutting out first-time home buyers from affordable condo options.

A compromise was reached between the bill's supporters and opposition thanks to the assurance that homeowner's will retain the right to seek redress for issues such as a slumping foundation or poorly insulated windows. At the same time, builders will have some peace of mind that they will not automatically become tied up in expensive and extensive litigation.

 


 

Governor Hickenlooper, who was in support of the bill, stated that:

"If we can't solve that conflict, we've going to have trouble getting people to buy houses and to be able to have houses enough for the people who want to buy them. Ultimately it would threaten not just our families and where they live, but it would affect our workforce and ultimately our economy." 

 The numbers don't lie - condos in Colorado have dropped to approximately 3% compared to a whopping 20% a mere decade ago. In the wake of construction defect laws, luxury apartments have become the go-to for developers, which only further reduces affordable opportunities for first-time home buyers and others looking for a condo to call 'home.' Hopes are high that this loosening will have a very positive impact on what has been a rather frozen multi-family, owner-occupied housing market.

 

 

Those who opposed reform came around on HB 1279 because of the important balance that it found between reassuring developers to build and homeowner rights. A couple of the note-worthy specifics include:

- Excluding developer-owned units from voting on whether or not to initiate legal action against the builder 

- It's state-wide uniformity on the issue as a whole, to avoid individual municipalities from creating their own unique solutions 

 

For home buyers out there longing for attainable condo option, hold on! Relief may be just on the horizon if this progress is any indication. In the meantime, click HERE & check out these condos and townhomes currently on the market. If you see something you like, we'd be happy to get you in to take a closer look...

 

With Mortgage Rates Up Again, Should You Buy?

by Cory Dudley

 

 

Mortgage interest rates, as reported by Freddie Mac, have increased over the last several weeks. Freddie Mac, along with Fannie Mae, the Mortgage Bankers Association and the National Association of Realtors, is calling for mortgage rates to continue to rise over the next four quarters.

This has caused some purchasers to lament the fact they may no longer be able to get a rate below 4%. However, we must realize that current rates are still at historic lows.

Here is a chart showing the average mortgage interest rate over the last several decades.

 

 

Bottom Line

Though you may have missed getting the lowest mortgage rate ever offered, you can still get a better interest rate than your older brother or sister did ten years ago, a lower rate than your parents did twenty years ago, and a better rate than your grandparents did forty years ago.

 

Where Are Home Values Headed?

by Cory Dudley
 
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Today, many real estate conversations center on housing prices and where they may be headed. That is why we like the Home Price Expectation Survey.

Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts and investment & market strategists about where they believe prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.

The results of their latest survey:

Home values will appreciate by 4.0% over the course of 2016, 3.4% in 2017 and 3.0% in the next two years, and finally 2.8% in 2020 (as shown below). That means the average annual appreciation will be 3.2% over the next 5 years.

Where Are Home Values Headed Over the Next 5 Years? | Simplifying The Market

The prediction for cumulative appreciation slowed slightly from 25.0% to 24.7% by 2020. The experts making up the most bearish quartile of the survey are still projecting a cumulative appreciation of 9.9%.

Where Are Home Values Headed Over the Next 5 Years? | Simplifying The Market

Bottom Line

Individual opinions make headlines. We believe the survey is a fairer depiction of future values.

 

This Year Predicted to be Best for Real Estate Since 2006

by Cory Dudley

 

A few weeks ago, Jonathan Smoke, the Chief Economist at realtor.com, exclaimed: “All indicators point to this spring being the busiest since 2006.”

Now, Freddie Mac has doubled down on that claim and is saying that 2016 will be the best year that the real estate industry has seen in a decade. In their March Housing Outlook Report, Freddie Mac explained:

“Despite the challenges facing the housing market, we expect this to be the best year for housing in a decade. Home sales, housing starts, and house prices will reach their highest level since 2006 according to our latest forecast…Challenges remain, with low housing supply and declining affordability being a key concern in many markets, but on balance, the housing markets in the U.S. are poised for the best year since 2006.”

The key indicators that have given Freddie Mac such a positive outlook are:

  • Low interest rates
  • A resilient labor market
  • An increase in household formations
  • A projected increase in newly constructed homes

Bottom Line

2016 looks to be shaping up as a great year for residential real estate. Whether you are thinking of buying or selling, now may be the time to sit down with a real estate professional to discuss the new opportunities that are arising.

 

5 Homeowner Deductions YOU Should Know About!

by Cory Dudley

With tax season upon us and the April 18th filing deadline fast

approaching, here are 5 deductions that every  Colorado

homeowner should take advantage of!

 

1. Mortgage Interest Deduction

Your largest write off will be the monthly payment you make on your mortgage. This is because (for most people) the majority of your payment goes toward interest - and guess what? All that interest is tax deductible up to a $1 million loan.

Be sure to think outside the box and include every form of mortgage interest that you pay. Many owners don’t realize that the interest deduction applies to any loan secured by your home. That includes a second mortgage, a line of credit, or a home equity loan. Do you have more than one property? It also applies to a second or vacation home as well as your primary residence!

The best part is that you don’t need to calculate your own deductible mortgage interest. Your lender will send you a copy of Form 1098 at the end of the year that will show the amount of interest you paid. Simply save that form and file it with your tax return!

2. Property Taxes

Property taxes paid to state and local governments can be deducted from your federal taxes in the year in which you paid them. If you pay your property taxes via an escrow through your mortgage lender, your lender will send you a statement, which you can then file with your return. Property taxes are usually paid twice a year. If you are missing statements, contact your state or local taxing authority to get a statement for your records.

3. Loan Points

Homebuyers have the ability to pay points in order to get a loan with a lower interest rate. Most of the time the buyer pays for the points, each of which is equal to 1% of the loan amount. Loan points that meet these IRS qualifications are deductible.

4. Home Office Deductions

Every entrepreneur knows that there are huge financial benefits to working for yourself - and from home. If you use a portion of your home for business purposes you can likely deduct expenses for the use, including but not limited to a percentage of your mortgage payments, of all upkeep and maintenance costs, of home improvements, and of your utilities.

Deductions are usually based on the percentage of your home used solely for business. So, if you use a whole room or part of a room for your business, you'll need to calculate out the percentage used for personal versus business use.

5. Home Improvement Tax Credits

If you made energy efficient improvements to your home, you likely qualify for the Residential Energy Efficient Property Credit. It allows for a tax credit up to 30 percent of the installation costs of the equipment into your home. Qualified equipment includes solar hot water heaters, solar electric equipment, wind turbines, and fuel cell property.

Check out the IRS website for more information.


Low Inventory Causes Home Prices to Accelerate

by Cory Dudley

The National Association of Realtors (NAR) released their latest Quarterly Metro Home Price report earlier this month. The report revealed that home prices are not only continuing to rise but that the increases are accelerating. Lawrence Yun, Chief Economist at NAR, discussed the impact of low inventory on buyers in the report:

"Without a significant ramp-up in new home construction and more homeowners listing their homes for sale, buyers are likely to see little relief in the form of slowing price growth in the months ahead.”

Here are the percentage increases of home prices for the last two quarters:

What this means to sellers

Rising prices are a homeowner’s best friend. As reported by CoreLogic in a recent blog post:

“With demand strong and inventory thin, the share of homes selling for the list price or more has also returned to pre-bust levels. With inventory tight, homes are more likely to sell above the asking price.”

What this means to buyers

In a market where prices are rising, buyers should take into account the cost of waiting. Obviously, they will pay more for the same house later this year. However, as Construction Dive reported, the amounts of cash necessary to buy a home will also increase.

“These factors have created a situation where the market keeps moving the goalposts in terms of the down payment necessary for first-time homebuyers to get into a home.” 

Bottom Line

If you’re thinking of selling and moving down, waiting might make sense. If you are a first time buyer or a seller thinking of moving up, waiting probably doesn’t make sense.


Future Home Values: Where Do The Experts Think They Are Headed?

by Cory Dudley

Today, many real estate conversations center on housing prices and where they may be headed. That is why we like the Home Price Expectation Survey.

Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts and investment & market strategists about where they believe prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.

The results of their latest survey:

Home values will appreciate by 3.7% over the course of 2016, 3.3% in 2017 and 3.2% in the next two years, and finally 3.1% in 2020 (as shown below). That means the average annual appreciation will be 3.3% over the next 5 years.

Future Home Values: Where Do The Experts Think They Are Headed? | Keeping Current Matters

The prediction for cumulative appreciation slowed slightly from 21.6% to 17.7% by 2020. The experts making up the most bearish quartile of the survey still are projecting a cumulative appreciation of 10.9%.

Future Home Values: Where Do The Experts Think They Are Headed? | Keeping Current Matters

Bottom Line

Individual opinions make headlines. We believe the survey is a fairer depiction of future values.


Displaying blog entries 1-10 of 95

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