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Will Rates Drop Soon Like They Did Last Year?

At the SMDRA Statistics Committee we talked last week about mortgage rate trends during each of the last several years. So, I reviewed the average monthly mortgage rates for the last 9 years since the Fed introduced their Zero Interest Rate Policy and I noticed rates peaked in the first quarter 5 times. However, I…

Is Metro Denver’s Housing Market Failing?

This was the headline in the Denver Post last Tuesday after a report from HSH.com, a mortgage research firm showed that the median price of a home was $414k in the 4th quarter and a borrower needed to make $79,181 to qualify to buy that home with 20% down, assuming that their house payment doesn’t…

Disappointing New Home Sales

Sales of new single-family houses in January 2018 were at a seasonally adjusted annual rate of 593,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 7.8% below the revised December rate of 643,000 and is 1.0%below the January 2017 estimate of 599,000.…

A Bill To Help Our Housing Crisis?

Our State House passed House Bill 1127 last week and this bill seeks to help ease Colorado’s housing crisis according to the Bill’s sponsors. Here is what the Bill actually does— Requires CO landlords to tell their perspective tenants more about their application costs and requirements for approval, such as rental history, credit histories, and…

2 Myths About Buying a Home

NeighborWorks America surveyed people in 2017 and asked them what is the minimum required down payment to buy a home? On average, these people said 17%. In a second survey done by an Ellie Mae Borrower Insights Survey found that 29% of renters think at least a 700 Fico Score is required to qualify for…

New Home Supply Down 50% from 2006

I listened in on a webinar from MetroStudy last week that focused on the Rocky Mountain region. Mark Boud, their chief economist estimates that home builders will complete 1.25 million homes this year, the same amount they built in 1992, when 68 million FEWER people lived here. Ouch! Mark also estimates that nationally there is…

Why Builders Are Not Building Affordable Apartments

In our country’s 150 largest cities, builders completed 395k new apartments in 2017, a whopping 46% increase from 2016 and the highest level seen in 40 years. And luxury, upscale apartments accounted for between 75-80% of the new supply. So, what’s keeping builders from building more affordable apartments? Land, material and labor costs are rising…

Our Fastest Growing Employment Sector Is…

According to the Metro Denver Economic Development Corporation report, the fastest growing job sector in in metro Denver over the last 5 years has been software and IT development, which has grown by 32% in the last 5 years from 44,084 jobs in 2012 to 58,190 jobs last year. We now have the 8th highest…

How to Keep Your Clients from Being Homeless

One of the primary reasons we don’t have enough inventory of homes for sale is homeowners are AFRAID they will be left homeless if they sell their current home as they know they can probably sell their current home in 1 weekend; but they are terrified that they won’t be able to find a new…

Will People Quit Buying Homes if Rates Hit 5%?

Redfin did a survey at the end of last year of 4,000 perspective home buyers and they asked them “If mortgage rates were to rise above 5%, what effect would it have on your home buying plans?” Their answers will surprise you— 27% said they would slow down their search in hopes that rates come…

More Remodeling is Bad News for Our RE Market

MetroStudy released their 4th quarter Residential Remodeling Index Report on Friday. This report details activity in the home remodeling business. The RRI reached a new all-time high in the 4th quarter at 111.3, a 4.9% increase from a year ago. This is the 23rd consecutive quarter of year-over-year gains since 2011. Second, MetroStudy’s forecast for…

Should I Wait to Buy a Home?

This year is starting out crazy, once again with bidding wars on lots of homes. So, should you wait until summer when the market cools off? Lets look at the numbers and you tell me. Over the last 5 years median residential home prices (detached and attached) have risen between January and June by an…