Pent UP Demand

We notice a very interesting dynamic in the market right now.

There was clearly a pent-up real estate demand created during the recent time when in-person showings were not allowed.  The numbers back it up.

First, a little background.  During a portion of “Shelter in Place,” all in-person viewing of properties ceased.  Instead, buyers spent time online viewing virtual tours and 3-D photography.

Even though clients could view homes virtually, purchase activity did slow down.

Today, showings are allowed again as long as clear protocols are followed.  We’ve implemented a Safe Showings program to keep our clients protected.

Now, to the numbers.

Through the first two weeks of May 2020, the number of closed properties is down compared to the same time period in 2019.

In most cases these closed properties are a result of purchase agreements that were written in April- a time when in-person showings were restricted.

So, a decrease in closings was expected.

However, the number of new written contracts so far this month is up considerably compared to the same time frame last year.

Specifically,

  • Metro Denver closed properties down 47%
  • Metro Denver new contracts up 6%
  • Northern Colorado closed properties down 41%
  • Northern Colorado new contracts up 19%

So, buyer activity is up compared to last year, even in our current environment.

This speaks to the resiliency of our market and the effect of low interest rates.


Posted on May 18, 2020 at 6:00 am
Tammy Fisher | Posted in Buying a Home, Home Buying, Housing Market, Purchasing a Home, Real Estate Agent | Tagged , , ,

Today’s Expert Insight on the Housing Market

Today’s Expert Insight on the Housing Market [INFOGRAPHIC] | Keeping Current Matters

Some Highlights

  • According to Lawrence Yun, Chief Economist at NAR, home prices are forecasted to rise.
  • Results from the Existing Home Sales Report note that home sales declined in March due to the coronavirus, but prices are still strong.
  • Reach out to a local real estate professional to get a better understanding of your home’s value today.

https://www.keepingcurrentmatters.com/2020/04/24/todays-expert-insight-on-the-housing-market-infographic/


Posted on May 1, 2020 at 7:00 am
Tammy Fisher | Posted in Home Prices, Loveland Real Estate Agent, New Buyers, Purchasing a Home | Tagged , ,

10 Steps to Buying a Home

10 Steps to Buying a Home [INFOGRAPHIC] | Keeping Current Matters

Some Highlights:

  • If you’re thinking of buying a home and you’re not sure where to start, you’re not alone.
  • Here’s a guide with 10 simple steps to follow in the homebuying process.
  • Be sure to work with a trusted real estate professional to find out the specifics of what to do in your local area.

https://www.keepingcurrentmatters.com/2020/02/28/10-steps-to-buying-a-home-infographic-2/


Posted on March 23, 2020 at 7:00 am
Tammy Fisher | Posted in Buying a Home, Home Buying, Purchasing a Home | Tagged , , ,

Impact of the Coronavirus n the US Housing Market

Impact of the Coronavirus on the U.S. Housing Market

The Coronavirus (COVID-19) has caused massive global uncertainty, including a U.S. stock market correction no one could have seen coming. While much of the news has been about the effect on various markets, let’s also acknowledge the true impact it continues to have on lives and families around the world.

With all this uncertainty, how do you make powerful and confident decisions in regard to your real estate plans?

The National Association of Realtors (NAR) anticipates:

“At the very least, the coronavirus could cause some people to put home sales on hold.”

While this is an understandable approach, it is important to balance that with how it may end up costing you in the long run. If you’re considering buying or selling a home, it is key to educate yourself so that you can take thoughtful and intentional next steps for your future.

For example, when there’s fear in the world, we see lower mortgage interest rates as investors flee stocks for the safety of U.S. bonds. This connection should be considered when making real estate decisions.

According to the National Association of Home Builders (NAHB):

“The Fed’s action was expected but perhaps not to this degree and timing. And the policy change was consistent with recent declines for interest rates in the bond market. These declines should push mortgage interest rates closer to a low 3% average for the 30-year fixed rate mortgage.”

This is exactly what we’re experiencing right now as mortgage interest rates hover at the lowest levels in the history of the housing market.

Bottom Line

The full impact of the Coronavirus is still not yet known. It is in times like these that working with an informed and educated real estate professional can make all the difference in the world.

https://www.keepingcurrentmatters.com/2020/03/05/impact-of-the-coronavirus-on-the-u-s-housing-market/


Posted on March 16, 2020 at 7:00 am
Tammy Fisher | Posted in Mortgage Rates, Purchasing a Home, Real Estate Market | Tagged , , , ,

Corona Rates

Interest rates on a 30-year mortgage right now are just about the lowest they have ever been in history.

  • The rate today is 3.45%
  • The lowest-ever in November, 2012 was 3.31%
  • A year ago they were 4.35%

So, what gives?  Why are rates so low?  It turns out that the coronavirus is pushing rates down to historic lows.

The virus is causing uncertainty in the global financial markets.  When there is uncertainty, there tends to be a flight from stocks into bonds.

Specifically, there tends to be a flight to U.S. Treasuries.

High demand for U.S. Treasuries means that the interest rates on those bonds goes down.

30-year mortgage rates track the rates on the 10-year Treasury and the 10-year Treasury just hit their lowest rates ever at 1.31%.

The uncertainty around the virus will likely keep rates down for the foreseeable future.

If you haven’t done so already, we encourage you to reach out to your mortgage lender to see if you would benefit by refinancing your loan.

If you would like to see a video recap of our annual Market Forecast you can watch that HERE.


Posted on March 4, 2020 at 7:00 am
Tammy Fisher | Posted in Investing, Mortgage Rates, Purchasing a Home | Tagged , , , , , ,

Three Reasons Why Pre-Approval Is the First Step in the 2020 Homebuying Journey

Three Reasons Why Pre-Approval Is the First Step in the 2020 Homebuying Journey

When the number of buyers in the housing market outnumbers the number of homes for sale, it’s called a “seller’s market.” The advantage tips toward the seller as low inventory heats up the competition among those searching for a place to call their own. This can create multiple offer scenarios and bidding wars, making it tough for buyers to land their dream homes – unless they stand out from the crowd. Here are three reasons why pre-approval should be your first step in the homebuying process.

1. Gain a Competitive Advantage

Low inventory, like we have today, means homebuyers need every advantage they can get to make a strong impression and close the deal. One of the best ways to get one step ahead of other buyers is to get pre-approved for a mortgage before you make an offer. For one, it shows the sellers you’re serious about buying a home, which is always a plus in your corner.

2. Accelerate the Homebuying Process

Pre-approval can also speed up the homebuying process, so you can move faster when you’re ready to make an offer. In a competitive arena like we have today, being ready to put your best foot forward when the time comes may be the leg-up you need to cross the finish line first and land the home of your dreams.

3. Know What You Can Borrow and Afford

Here’s the other thing: if you’re pre-approved, you also have a better sense of your budget, what you can afford, and ultimately how much you’re eligible to borrow for your mortgage. This way, you’re less apt to fall in love with a home that may be out of your reach.

Freddie Mac sets out the advantages of pre-approval in the My Home section of their website:

“It’s highly recommended that you work with your lender to get pre-approved before you begin house hunting. Pre-approval will tell you how much home you can afford and can help you move faster, and with greater confidence, in competitive markets.”

Local real estate professionals also have relationships with lenders who can help you through this process, so partnering with a trusted advisor will be key for that introduction. Once you select a lender, you’ll need to fill out their loan application and provide them with important information regarding “your credit, debt, work history, down payment and residential history.”

Freddie Mac also describes the ‘4 Cs’ that help determine the amount you’ll be qualified to borrow:

  1. Capacity: Your current and future ability to make your payments
  2. Capital or Cash Reserves: The money, savings, and investments you have that can be sold quickly for cash
  3. Collateral: The home, or type of home, that you would like to purchase
  4. Credit: Your history of paying bills and other debts on time

While there are still many additional steps you’ll need to take in the homebuying process, it’s clear why pre-approval is always the best place to begin. It’s your chance to gain the competitive edge you may need if you’re serious about owning a home.

Bottom Line

Getting started with pre-approval is a great way to begin the homebuying journey. Reach out to a local real estate professional today to make sure you’re on the fastest path to homeownership.

https://www.keepingcurrentmatters.com/2020/02/03/three-reasons-why-pre-approval-is-the-first-step-in-the-2020-homebuying-journey

 


Posted on February 10, 2020 at 7:00 am
Tammy Fisher | Posted in Home Buyers, New Buyers, Purchasing a Home | Tagged , , , , , ,

Where Homebuyers Are Heading by Generation

Where Homebuyers Are Heading By Generation [INFOGRAPHIC] | Keeping Current Matters

Some Highlights:

  • Whether capitalizing on job opportunities, affordability, or warm-weather places to retire, Americans are making moves to these top cities to take advantage of the strength in the current housing market.
  • A strong economy and lower mortgage rates have made it easier for many would-be buyers to get into the market. According to realtor.com, it just depends on which market.
  • To find the top market in your area, contact a local real estate professional.

https://www.keepingcurrentmatters.com/2020/01/17/where-homebuyers-are-heading-by-generation-infographic/


Posted on February 3, 2020 at 8:23 pm
Tammy Fisher | Posted in Buying a Home, Purchasing a Home, Real Estate Market | Tagged , , , , ,

How to Determine If You Can Afford to Buy a Home

How to Determine If You Can Afford to Buy a Home

The gap between the increase in personal income and residential real estate prices has been used to defend the concept that we are experiencing an affordability crisis in housing today.

It is true that home prices and wages are two key elements in any affordability equation. There is, however, an extremely important third component to that equation: mortgage interest rates.

Mortgage interest rates have fallen by more than a full percentage point from this time last year. Today’s rate is 3.75%; it was 4.86% at this time last year. This has dramatically increased a purchaser’s ability to afford a home.

Here are three reports validating that purchasing a home is in fact more affordable today than it was a year ago:

CoreLogic’s Typical Mortgage Payment

“Falling mortgage rates and slower home-price growth mean that many buyers this year are committing to lower mortgage payments than they would have faced for the same home last year. After rising at a double-digit annual pace in 2018, the principal-and-interest payment on the nation’s median-priced home – what we call the “typical mortgage payment”– fell year-over-year again.”  

The National Association of Realtors’ Affordability Index

“At the national level, housing affordability is up from last month and up from a year ago…All four regions saw an increase in affordability from a year ago…Payment as a percentage of income was down from a year ago.”

First American’s Real House Price Index (RHPI)

“In 2019, the dynamic duo of lower mortgage rates and rising incomes overcame the negative impact of rising house price appreciation on affordability. Indeed, affordability reached its highest point since January 2018. Focusing on nominal house price changes alone as an indication of changing affordability, or even the relationship between nominal house price growth and income growth, overlooks what matters more to potential buyers – surging house-buying power driven by the dynamic duo of mortgage rates and income growth. And, we all know from experience, you buy what you can afford to pay per month.”

Bottom Line

Though the price of homes may still be rising, the cost of purchasing a home is actually falling. If you’re thinking of buying your first home or moving up to your dream home, make sure to reach out to a real estate professional to help you understand the difference between the two.

 

 


Posted on December 6, 2019 at 8:00 am
Tammy Fisher | Posted in Buying a Home, Home Buyers, Loveland Real Estate, New Buyers, Northern Colorado Real Estate, Purchasing a Home | Tagged , , , , , ,