On Sale

Money is on sale (again).

30-year mortgage rates now sit at 3.3%.

This is less than half of the long-term, 40-year average.

This is also almost a full percentage point lower than they were one year ago (which was still very low).

Let’s put this in real numbers.

A $300,000 loan at today’s rates has a $1,313 monthly principal and interest payment.

One year ago, that same loan would be $1,432 per month.

That’s a 8.3% difference in monthly payment.

The fact that money is on sale is one of many reasons that the housing market remains very strong right now.

At Windermere Real Estate we are taking Safer at Home and Social Distancing very seriously.  Our people are following our Safe Showings protocol, staying connected to their clients, and providing help wherever needed.

Posted on June 5, 2020 at 6:00 am
Tammy Fisher | Category: Housing Market, investment, Northern Colorado Real Estate, Real Estate Market | Tagged , , , ,

Homeownership Rate Remains on the Rise

Homeownership Rate Remains on the Rise

In the third quarter of 2019, the U.S. homeownership rate rose again, signaling another strong indicator of the current housing market.

The U.S. Census Bureau announced,

“The homeownership rate of 64.8 percent was not statistically different from the rate in the third quarter 2018 (64.4 percent), but was 0.7 percentage points higher than the rate in the second quarter 2019 (64.1 percent).”

Homeownership Rate Remains on the Rise | Keeping Current MattersToday there is still a lack of inventory, particularly at the entry and middle-level segments of the market, but that is not stopping buyers from making every effort to pursue homeownership. The many financial and non-financial benefits continue to drive the American Dream and will likely do so for generations to come.

Bottom Line

If you’re thinking of buying a home, contact a local real estate professional to make your dream a reality.

 

 

Posted on December 11, 2019 at 8:00 am
Tammy Fisher | Category: Buying a Home, Home Ownership, Homeownership, New Buyers, New Home, Owning a Home | Tagged , , , , , ,

Expert Advice: 3 Benefits to Owning a Home

Expert Advice: 3 Benefits to Owning a Home

Success is something often worth repeating, and Brent Sutherland, a Certified Financial Planner and Real Estate Investor, has certainly made his way in a momentum-driving direction. Here are 3 tips he shares from a recent piece in Business Insider on the benefits of owning real estate:

1. Real estate diversifies your income

“While it is certainly important to be properly diversified with your investments, it is even more important to be diversified with your income. This is because the largest financial risk for most of you is the loss of your primary source of income, which is typically in the form of a day job.”

The article highlights how having multiple sources of income, such as those derived from real estate investments, can eventually lead to relying less and less on a day job. Sound dreamy? It can be. When done well, real estate investments may eventually open up your time and the financial freedom to explore other things, like travel and other aspirations you may have for the future, particularly in the golden years of retirement.

2. Real estate produces near-immediate results

“You can achieve and feel the results almost immediately. Property improvements are visible and tangible. You can cash, spend, and invest rent payments. Today! Not 30 years in the future.”

Currently, home prices are appreciating in all price ranges, and just last week CoreLogic announced their 12-month home value projection at 5.6%, an increase from 4.5% noted earlier this summer. With that in mind, real estate today is definitely driving immediate results!

3. Passive income can help you become financially independent sooner

“If you need $40,000 a year to live, you could alternatively invest in assets that generate an 8% cash-on-cash return. This is a very reasonable assumption. And it means you would only need to save a total of $500,000 (instead of $1 million). Yet, your investments would still meet your annual household living needs.

While returns, taxes, and inflation can, of course, affect your timeline, cash-flowing real-estate is a clear asset.”

Homeownership is a form of ‘forced savings.’ Every time you pay your mortgage, you’re contributing to your net worth by increasing the equity in your home, bringing you one step closer to true financial independence.

Bottom Line

If you want to increase your savings and overall net worth, real estate is a great way to go. To learn how you can make it happen, contact a local real estate professional to guide you through the process.

Who is Brent Sutherland?

Sutherland was 35 when he bought his first single home to rent out for income, less than five years later, he owns eight additional properties and part of a commercial real estate project.

 

 

Posted on December 4, 2019 at 8:00 am
Tammy Fisher | Category: Building Equity, Diversify Your Income, Give Thanks, Home Ownership, Investing, Passive Income | Tagged , , , ,

3 Reasons This is NOT the 2008 Real Estate Market

3 Reasons This is NOT the 2008 Real Estate Market

No one knows for sure when the next recession will occur. What is known, however, is that the upcoming economic slowdown will not be caused by a housing market crash, as was the case in 2008. There are those who disagree and are comparing today’s real estate market to the market in 2005-2006, which preceded the crash. In many ways, however, the market is very different now. Here are three suppositions being put forward by some, and why they don’t hold up.

SUPPOSITION #1

A critical warning sign last time was the surging gap between the growth in home prices and household income. Today, home values have also outpaced wage gains. As in 2006, a lack of affordability will kill the market.

Counterpoint

The “gap” between wages and home price growth has existed since 2012. If that is a sign of a recession, why didn’t we have one sometime in the last seven years? Also, a buyer’s purchasing power is MUCH GREATER today than it was thirteen years ago. The equation to determine affordability has three elements:  home prices, wages, AND MORTGAGE INTEREST RATES. Today, the mortgage rate is about 3.5% versus 6.41% in 2006.

SUPPOSITION #2

In 2018, as in 2005, housing-price growth began slowing, with significant price drops occurring in some major markets. Look at Manhattan where home prices are in a “near free-fall.”

Counterpoint

The only major market showing true depreciation is Seattle, and it looks like home values in that city are about to reverse and start appreciating again. CoreLogic is projecting home price appreciation to reaccelerate across the country over the next twelve months.

Regarding Manhattan, home prices are dropping because the city’s new “mansion tax” is sapping demand. Additionally, the new federal tax code that went into effect last year continues to impact the market, capping deductions for state and local taxes, known as SALT, at $10,000. That had the effect of making it more expensive to own homes in states like New York.

SUPPOSITION #3

Prices will crash because that is what happened during the last recession.

Counterpoint

It is true that home values sank by almost 20% during the 2008 recession. However, it is also true that in the four previous recessions, home values depreciated only once (by less than 2%). In the other three, residential real estate values increased by 3.5%, 6.1%, and 6.6%.

Price is determined by supply and demand. In 2008, there was an overabundance of housing inventory (a 9-month supply). Today, housing inventory is less than half of that (a 4-month supply).

Bottom Line

We need to realize that today’s real estate market is nothing like the 2008 market. Therefore, when a recession occurs, it won’t resemble the last one.

 

 

Posted on November 22, 2019 at 8:00 am
Tammy Fisher | Category: Loveland Real Estate, Northern Colorado Real Estate, Real Estate Market, Selling Your Home | Tagged , , , ,

62% of Buyers Are Wrong About Down Payment Needs

62% of Buyers Are Wrong About Down Payment Needs

According to the ‘2019 Home Buyer Report conducted by Nerdwallet, many first-time buyers still believe they need a 20% down payment to buy a home in today’s market:

“More than 6 in 10 (62%) Americans believe you must put at least 20% down in order to purchase a home.”

When potential homebuyers think they need a 20% down payment to enter the market, they also tend to think they’ll have to wait several years (in some markets) to come up with the necessary funds to buy their dream homes. The report continues to say,

“The truth: 32% of current U.S. homeowners put 5% or less down on their home, according to census data.” (as shown below):

62% of Buyers Are Wrong About Down Payment Needs | Keeping Current MattersThe lack of knowledge about the home-buying process is unfortunately keeping many motivated buyers on the sidelines.

Bottom Line

Don’t let a lack of understanding keep you and your family out of the housing market. Meet with a local real estate professional who can show you your options today.

 

 

Posted on November 15, 2019 at 8:00 am
Tammy Fisher | Category: Down Payment, Home Buyers, New Buyers, Northern Colorado Real Estate | Tagged , , ,

Why You Need a Relevant Informed Market Opinion

Rumor has it we’re heading into a recession, and everyone is talking about it.

When it comes to real estate, the unease linked to that word poses a number of important questions for buyers, sellers, and agents.

  • When will it hit?
  • Will it affect the housing market?
  • Is now the right time to buy/sell?

These are important topics you should be covering with your clients.

More importantly, you should have the facts and sources to back up your opinions.

In a recent Facebook Live with KCM founder, Steve Harney, and leading mortgage lender expert, Jim McMahan, the two discussed the importance of reliable sources and getting the truth out.

Here’s why it’s so important.

DO YOU HAVE AN INFORMED OPINION?

If you don’t already have an informed opinion, now is the time to get one. Many potential buyers or sellers may be making rash and emotional decisions based on sensationalist media headlines.

Instead of letting them just take your word for it, show them the facts.

This is also a great opportunity to step up and become a leading voice in your local market.

HOW DO YOU DEVELOP AN INFORMED OPINION?

If you’re just skimming headlines, your wires could be getting crossed.

By staying informed through a variety of reliable sources, you’re able to form a relevant, valuable market opinion that you can then relay to your clients.

“Any fool can know. The point is to understand.” – Albert Einstein

You know how the saying goes. Everybody’s got an opinion.

This is an important time in the market, and those who aren’t keeping up with the news are missing out on important conversations.

By taking the time to not only know but understand the market conditions, you’re building a reputation as a real estate agent that cares. Checking out the daily KCM Blog is a great way to help you do that. If you want to dig a little deeper, sign up to receive our Monthly Market Report.

STOP THE RUMORS. SPREAD THE WORD.

Getting ahead of the rumors is the best way to put out the fires already spreading.

Talk about it on social media, share articles, send emails and openly communicate to your clients whenever you get the chance.

Changing the narrative is an important part of soothing suspicions and spreading the good news to those who may otherwise not know, clients and competitors alike.

These are the principles Keeping Current Matters were founded on over a decade ago in the wake of the 2008 housing crisis. For the past 11 years, we’ve been helping real estate professionals simply and effectively communicate the market’s facts to help families feel confident when buying and selling a home.

Bottom Line

With the upcoming election, we’re going to see some shifts in our news and media focuses. You can squash a lot of uncertainties and build a relevant and valuable market opinion by taking the time to do your research.

kCM buyer and seller guides

Gather information from various, reliable sources and continue to follow what’s happening now and what’s predicted to happen in the near future.

 

Posted on November 8, 2019 at 8:00 am
Tammy Fisher | Category: Northern Colorado Real Estate, Real Estate Market, Selling Your Home | Tagged , , ,

How Will the Next Recession Affect the Housing Market?

Given the current media buzz of an impending recession, many Americans are fearing the worst and believe a downturn in the real estate market is inevitable.

Doubts about the market’s stability are completely rational considering the loss many agents and home buyers took when everything went belly-up in 2008.

We’re here to tell you this: don’t panic.

Let’s look at the facts.

RECESSION DOES NOT EQUAL HOUSING CRISIS

The gravity of the 2008 crash, and how it affected the real estate market is impossible to forget. But what we may not be remembering is that there were many economic downturns that resulted in appreciated home values.

Of the last five recessions in U.S. history, three of them saw increases. Two of those three saw prices appreciate faster than the historical average.

Home price change during last 5 recessions

For the two where prices decreased, one of them was by less than 2% and the other was because the housing market caused the recession in the first place. Historically, recessions are not caused by housing alone.

MARKET CONDITIONS ARE NOT THE SAME AS 2008.

This is the biggest indicator that we won’t see a crash like the one a decade ago. Home prices are projected to appreciate for the next 2-5 years. Sales are also projected to increase in 2020.

Don’t worry, the housing market is strong and home prices are forecasted to continue to rise.

Projected home price appreciation 2019, 2020 and 2021

SO WHAT EXACTLY IS A RECESSION?

Looking at the textbook definition of recession may give more insight.

According to Webster’s Dictionary, a recession is a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP for two successive quarters.

To simplify it, a recession means a time when the economy takes a dip for at least six months. We’re currently in the longest running economic recovery in American history. What ends a recovery? A slowdown.

But that doesn’t mean we need to be bracing for a 2008 repeat.

WHAT EXPERTS BELIEVE WILL CAUSE THE NEXT RECESSION

If an upcoming recession occurs, it will likely be due to trade policy, a geopolitical crisis, and/or stock market correction but NOT a housing slowdown, according to Yahoo Finanace.

This is going to be a much shorter recession than the last one. I don’t think the next recession will be a repeat of 2008…the housing market is in a better position,” said George Ratiu, Senior Economist for Realtor.com

The upcoming election along with current trade wars may be the defining factors that ends what has been the longest running economic expansion in U.S. history. But again, a slowdown by no means indicates a hit like the Great Recession.

WHAT YOUR CLIENTS BELIEVE ABOUT A RECESSION

According to a Realtor.com survey, 53% of consumer currently looking for home think a recession will come in the next 15 months. Worse than that, 55% of consumers surveyed said they would temporarily suspend their home search.

“You’re gonna have sellers that were ready to put the house on the market all of a sudden call and say we’re gonna wait a year or two. Those families are getting hurt because they’re making decisions, not on reality, but their perception of reality. The only people who can control that reality are [real estate agents].”

57% of homeowners believe the next recession will be worse

Now is the time to be up-front with your clients. Getting ahead of the panic and communicating the right information to them, backed by cold hard facts, will help dismantle fears.

Bottom Line

The next recession will not duplicate the one we saw in 2008 – but if we allow fear to spread – it could be much worse than it should be. Your clients could be hurt by mistakes made under the pretense of false information.

That is why it is so important that we, as real estate professionals and the trusted advisors, need to reclaim the narrative and eliminate this fear from the market.

People may question you over this, and that’s why you need to have the most relevant information and insights about what it means for you and your clients. Between now and the election next year, this will only become more important.

To stay current on real estate news without having to read every media outlet, KCM offers a Monthly Market Report to provide you with a comprehensive walkthrough of the most up-to-date information regarding the market.

https://www.keepingcurrentmatters.com/article/how-will-the-next-recession-affect-the-housing-market/

Posted on November 6, 2019 at 8:00 am
Tammy Fisher | Category: Home Buyers, Loveland Real Estate, Northern Colorado Real Estate | Tagged , ,

3 Reasons to Use a Real Estate Pro in a Complex Digital World

3 Reasons to Use a Real Estate Pro in a Complex Digital World

If you’re searching for a home online, you’re not alone; lots of people are doing it. The question is, are you using all of your available resources, and are you using them wisely? Here’s why the Internet is a great place to start the home-buying process, and the truth on why it should never be your only go-to resource when it comes to making such an important decision.

According to the National Association of Realtors (NAR), the three most popular information sources home buyers use in the home search are:

  • Online website (93%)
  • Real estate agent (86%)
  • Mobile/tablet website or app (73%)

Clearly, you’re not alone if you’re starting your search online; 93% of home buyers are right there with you. The even better news: 86% of buyers are also getting their information from a real estate agent at the same time.

Here are 3 top reasons why using a real estate professional in addition to a digital search is key:

1. There’s More to Real Estate Than Finding a Home Online. It’s a lonely and complicated trek around the web if you don’t have a real estate professional to also help you through the 230 possible steps you’ll face as you navigate through a real estate transaction. That’s a pretty staggering number! Determining your price, submitting an offer, and successful negotiation are just a few of these key steps in the sequence. You’ll definitely want someone who has been there before to help you through it.

2. You Need a Skilled Negotiator. In today’s market, hiring a talented negotiator could save you thousands, maybe even tens of thousands of dollars. From the original offer to the appraisal and the inspection, many of the intricate steps can get complicated and confusing. You need someone who can keep the deal together until it closes.

3. It Is Crucial to Make a Competitive and Compelling Offer. There is so much information out there in the news and on the Internet about home sales, prices, and mortgage rates. How do you know what’s specifically going on in your area? How do you know what to offer on your dream home without paying too much or offending the seller with a lowball offer?

Dave Ramsey, the financial guru, advises:

“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.”

Hiring a real estate professional who has his or her finger on the pulse of the market will make your buying experience an informed and educated one. You need someone who is going to tell you the truth, not just what they think you want to hear.

Bottom Line

If you’re ready to start your search online, don’t skip over the support of an educated and informed real estate professional. You’ll want someone at your side who can answer your questions and guide you through a process that can be complex and confusing if you go at it with the Internet alone.

Keeping Current Matters Blog Post

Posted on October 19, 2019 at 4:40 pm
Tammy Fisher | Category: Loveland Real Estate, Real Estate Agent, Selling Your Home | Tagged ,

Ten Qualities to Look For In Your Real Estate Agent

Buying a home is one of the most significant financial and emotional purchases of a person’s life. That’s why it is so important to find an agent that can not only help you navigate the home search process but one who can also answer your questions and represent your needs from start to finish. Most importantly, your agent should care about your happiness and ensuring that you find the home that best fits your needs.

Here are some qualities to consider when selecting a real estate agent:

 

    1. Likable. More than likely, you will be spending a lot of time with your agent, so look for someone that you enjoy interacting with.
    2. Trustworthy. One of the best ways to find an agent who you feel you can trust is to ask friends and family for a referral. Another way to do this is to interview different agents and ask for client references.
    3. Effective listener. While your agent can’t read your mind, they should be able to make educated recommendations and offer advice by listening closely to your needs. Make sure you talk to your agent about your priorities, what types of features appeal to you, as well as any factors that could be deal breakers. This will arm your agent with everything they need to help find you the perfect home.
    4. Qualified and experienced. Make sure your agent has the qualifications and experience to meet your specific needs. For example, some agents have more experience with short sales, while others might be experts on certain neighborhoods or types of housing. Find someone who is good at what you’re looking for. Ask specific questions when you interview them so you can get a better idea of what they’re great at, and if they’ll be a good fit for your search.
    5. Knowledgeable. A great agent is someone who is out in the neighborhoods, exploring communities, visiting listings, up to date with market and industry news, and collecting all the information that you need to make an informed, confident decision about your real estate needs.
    6. Honest. Your agent should be upfront and honest with you about every aspect of your home search process – even if it involves delivering bad news. The best real estate agents are more concerned about finding the right home for their clients, not just the home that brings in the fastest commission check.
    7. Local. Every community is different and all real estate is local, so it’s important to find someone who really knows the local market and can provide you with whatever information you need to familiarize yourself with a particular area.
    8. Connected. A well-connected agent will have relationships with lenders, inspectors, appraisers, contractors, and any other service provider you might need during your home search.
    9. Straightforward. You want an agent who will work hard to help you find the best home, but you also want someone who will be straightforward with you about the process, the market reality, and what is realistic for you.
    10. Committed. Your agent should be in it for the long haul, meaning that they’re looking out for your best interests every step of the way, no matter how long the process takes. The best way to find an agent with these qualities is by asking around. In all likelihood, someone within your circle of friends or family will have experiences to share and professionals to recommend, if not, reach out and we can connect you with a qualified and reliable Windermere Real Estate Agent.
Posted on October 2, 2019 at 8:00 am
Tammy Fisher | Category: Real Estate Agent | Tagged , ,