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Should We Believe the Fed?
The Fed became much more hawkish last week and let me show you- · After raising short-term rates by ¼% they expect to raise those rates by another 1.75% this year and another 1% next year to put short-term rates at 2.75%. · The Fed said it “expects to begin reducing its balance sheet at…
7 Home Renovation Mistakes to Avoid
The Denver Post ran this great story last weekend in advance of The Denver Home Show that returns in less than 2 weeks. Here are the 7 renovation mistakes and make sure to share this story with your clients and prospects including on social media. 1. Finishing a basement on a newer home with lots…
Being a Homeowner is the Best Hedge Against Inflation
One of my favorite housing analysts to read is Logan Mohtashami with Housing Wire and here are his current thoughts on housing. · He doesn’t believe the housing inventory crisis will end this year. · He wants to see existing home inventory levels nationally at least 1.52 million which is still a historically low number.…
Why Buying a Home Is Like Basketball
One of my favorite quotes from Michael Jordan is I have missed every shot I didn’t take. Thus, we need to keep taking shots. It’s the same for homebuyers. They must take shots consistently if they want to buy a home. What’s a shot? Looking at homes and writing contracts. Buyers have to practice before…
Higher Inflation Leads to Higher Rates
The Consumer Price Index increased by 0.8% in February and consumer prices are up 7.9% over the last 12 months. The Core CPI rose 0.5% last month from January and core prices are up 6.4% from a year ago. Energy, food, airline tickets, and owner-equivalent rent were the largest drivers of increased prices last month…
Dozens of Foreclosures in Green Valley Ranch
There were multiple stories last week in the local media about the Green Valley Ranch Master HOA who filed 52 foreclosure cases against homeowners in 2021. This HOA approved 41 judicial foreclosures last year and has already approved 60 this year. WOW!!! I read that in a judicial foreclosure homeowners typically don’t lose their homes…
Rent Prices are Still Soaring
Apartment List reported that nationally, rent is up 17.6% year over year as of February. Nearly the same increase as home prices; but without any of the benefits of homeownership such as wealth building, the ability to update or remodel the home to your preferences, the pride of homeownership, etc. So, why rent if you…
Why Can’t Builders Build More Homes?
New home builders built 927k new SFRs in 2021 and they built another 319k new multi-family apartments for total completions of 1.246 million. But 1.899 million new permits were issued last year. There is an incredibly strong demand for housing as witnessed by the number of new permits issued, but completions are over 600k units…
Denver is #1 on This List
Lending Tree analyzed nearly 480k mortgages given to Millennials last year in our nation’s 50 largest metro areas. They found that the Top 10 metro cities with mortgages taken out by Millennials had these common characteristics—vibrant city life and easy access to the outdoors, affordable down payments or promising equity growth, and most importantly, high-paying…
List Price is NOT the Home’s Value
This is what we need to be telling our homebuyers– You must understand that the list price IS NOT THE HOME’S VALUE as most homes are listed below their value to encourage a Bidding War. Homes are being sold like cars or sports memorabilia in an auction. The list price is the opening bid or minimum…
Why Are Mortgage Rates Rising So Fast?
Since the end of 2021 mortgage bond pricing is down by 192 basis points and thus mortgage rates have risen by ¾%. Normally a 192 bp increase would mean just a ½% rate increase, but every one of our investors (20+) has raised their rates by ¾% or more. This is surprising to me as…
Why New Home Construction Can’t Increase
According to the U.S. Census Bureau and HUD 762k new single-family homes were sold in 2021 which was 7.3% BELOW 2020 levels. The median sold price was $377k up just 3.4% year over year which was surprising. But, it happened because of a big increase (from 21% to 26%) in sales of new homes under…
