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Record Amount of Under Contracts

Here are the home sales results for April for the 7 county metro Denver area I received from SMDRA. Sellers sold 4,499 homes and condos last month, a small 1% decrease from last year. Homeowners placed 6,416 new homes and condos for sale last month, an increase of 5.1% from last April. We ended April…

Buying a Home is a Full Contact Sport

The first 4 months of this year has been a constant reminder of the effort it takes for people who want to buy their first home in our crazy market. Buying a home is a full contact sport, no flag football here. An Australian friend from church calls our football a “sissy sport” as our…

Metro Denver Stats You Need to Know

The metro Denver area ranked second in the country on a list titled “10 Best Cities for Business Graduates to Move To” compiled by Move.org. Washington D.C. ranked #1. Move.org had 3 primary ranking factors: “unemployment rate, number of job openings per 1,000 in a business or financial occupation, and the average cost of living…

Why Inventory Levels May Get Worse

I read a story last week in the Business Journals that reported on 3 recent surveys of homeowners. The first survey by YouGov of 1,330 homeowners revealed that only 30% of them plan to leave their current home in the next decade. In a second survey by Bankrate.com, only 19% of homeowners plan to move…

Housing Affordability is Dropping & 3 Solutions

NAR just created and released a new metric called the Realtors Affordability Distribution Curve and Score. It’s a unique metric; but I can’t find what data they use for household income, down payment, interest rate on a loan etc. But, this metric definitely reveals a big imbalance between what potential home buyers can afford and…

Will Mortgage Rates Soon Hit 5%?

Mortgage bond pricing is down about 100 basis points over the last few trading days and the 10 Year Treasury Bill is up nearly ¼%. Why are rates moving higher? Strong economic growth is expected Inflation is rising Tight labor market Rising wages The U.S. Treasury is issuing tons of new debt this year The…

Apartment Rents Start Rising Again

The Apartment Association of Metro Denver released their first quarter report last week. Average apartment rents had fallen for 3 consecutive quarters last year; but that trend stopped in the first quarter as average rents rose 1.7% or by $24 to $1420 a month. The last time rents dropped in the first quarter was in…

Metro Denver is Growing Quickly

According to the U.S. Census Bureau metro Denver grew by 1.77% per year from July 2010 to July 2017.If we continue to grow at this pace our population will grow by roughly 1.5 million people by 2040. Denver is one 28 major metro areas that are growing by at least 1% a year.

Local Economic News

In February Colorado employers added 5,400 new jobs and the unemployment rate remained at 3%. Average hourly earnings increased by more than a Dollar to $28.38 an hour. Over the last 12 months Colorado employers have added 62,200 new jobs. According to SmartAsset Aurora has the 3rd highest rate of homeownership for singles in the…

How to Offer an Appraisal Guarantee with 5% Down

I came up with this solution for first-time home buyers last week who are using the Fannie Mae HomeReady loan program that offers a lower monthly payment with either 3% or 5% down. I came up with this solution for first-time home buyers last week who are using the Fannie Mae HomeReady loan program that offers…

Would You Pay This Much for 400 Square Feet?

24 factory-built condos will be added in the Berkeley neighborhood in the 4300 block of Tennyson Street and is called The Kasita on Tennyson. Two small buildings are currently being demolished and a ground floor retail building will be constructed. Then, the developers will use a crane to put the 24 modular condos on top…

When Will Denver Home Prices Drop?

I printed off 2 important slides from my Bubble class, one slide showing detached home prices back to 1971 and then months of inventory back to 1985 and here is what I see— Home prices finally dropped in 1988 after 3 consecutive years of 10+ months of inventory. I was shocked that it took that…