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Weekly Earnings are Surging
December payrolls fell by 140k which surprised the “experts” who thought we would see gains of 50k in December. What the hell were they thinking? I honestly thought we could see job losses of over 1 million. Why? Many states like CO had totally shut down in-door dining, gyms, theaters, etc. So, I thought this…
Less Than 1/2 Month of Inventory
Here is the December RE Market Report for our 7 county metro area courtesy of REColorado and SMDRA. Buyers closed on 4,815 properties last month, a 13.3% increase from last December and a HUGE increase of 37% from December 2018. 1,521 attached homes sold last month, an increase of 20.6% from a year ago and…
Why are Mortgage Rates Rising?
Since last Tuesday the 2% Mortgage Bond has lost 120 basis points in price and rates have risen by ¼%. The 10 Year Treasury Bill yield has increased by 23 basis points to 1.15%, the first time above 1% in several months. Why? Mortgage Bankers Association Chief Economist Mike Fratantoni said, “The prospects of increased…
Denver #2 for Most Bidding Wars Redfin released their November report on how many homes received multiple offers when the offer was submitted by a Redfin agent. Thus, this is nowhere near all-encompassing; but it’s a good indicator. In November about 54% of homebuyers who submitted offers faced competition from at least one other buyer.…
Housing Affordability Improves
The National Association of Home Builders reported that housing affordability did improve over the last year due to a drop in mortgage rates. As of the 3rd quarter 27% of buyers report being able to afford half or more of the homes available for sale in their market. This percentage was up from 20% a…
How to Save People Over $300k
Hotpads is predicting that Gen Z renters, those born from 1998 and 2016 will rent for an average of 11 years before buying a home and they will pay on average $226k in rent during those 11 years. Denver was cited as the 9th most expensive city for Gen Z renters at $320k. WOW! This…
Is Cash Still King? Redfin estimates that 15.2% of all home sales in metro Denver this year went to buyers who paid all-cash down from 17.9% last year and 20% in 2012. Nationally, Redfin says 24.3% of all home sales are paid all-cash. In the past an all-cash buyer might get a discount on a…
2021 New Housing Predictions from Zonda
Zonda is a housing market research and real estate analytics firm that helps home builders, developers, and commercial investors make smarter decisions. Here are their predictions for 2021- Single-family new home sales will increase by 3.7% to 850k transactions in 2021. Single-family home starts will by 12.6% to 1,075,000 next year. Zonda asked division presidents…
4 Interest Rate Predictions
First Trust Portfolios is predicting that the 10 Year Treasury Bill will end 2021 at 1.25% to 1.50%. Mortgage rates are normally about 2% higher than this. This means mortgage rates in the low to mid-3’s by end of next year. The Mortgage Bankers Association is predicting that 30-year fixed mortgage rates will increase to…
2021 Predictions from the Mortgage Bankers Association
The MBA states, “Our expectation is that 2021 will most likely be a year of a continued, but slow economic recovery, with a modest rise in mortgage rates, and the stubborn, ongoing housing market conundrum of inadequate supply in relation to demand, and the many challenges that have slowed homebuilding will continue to push home…
2021 Predictions from Realtor.com
Realtor.com is predicting that home price appreciation will slow to 5.7% in 2021. Why? They are expecting inventory levels to rise in the second half of the year as homeowners will list more homes for sale due to vaccines causing people to feel safer. Second, they believe home builders will start 9% more new homes…
Job Growth is Slowing
Our economy added just 245k new jobs last month, but the private sector did add 344k jobs and the government shed 99k jobs, primarily Census workers. The household survey after showing a huge increase of 2.2 million new jobs in October, saw the number of jobs dropped by 74k. Also, 400k people left the labor…
