State of the Denver Residential Home Market – March 2017

If you’ve ever wondered if weather affects the real estate market, this late winter is proof positive. The spring selling season has gotten off to an early start due to unseasonably warm weather. Pair that with low inventory and high demand and you’ve got a great spring seller’s market in Colorado. It makes a difference in the tactics of the listing Realtor.

Activity declines during the winter

State of the Denver Residential Home Market - March 2017Usually the amount of activity for listings in the residential home market in the area declines during the winter. For instance, February saw a total of 3,878 units and the number of sales decreased by 12.21% compared to the previous month. The difference this rather warm February was that even though listings were lower, condo inventory was up 19.25% with single-family inventory down 7.6%. This caused extreme competition and frustrated buyers.

Median home details

So in the single family home market, the median home looks like this: detached single-family home has 1,742 square feet, four bedrooms, three bathrooms, spent 11 days on the market and was built in 1983. The median attached single-family home/condo was 1,151 square feet, two bedrooms, and two bathrooms, spent six days on the market and was built in 1984. These median homes sold for an amount that remained relatively unchanged at $447,838 while the median price rose 3.68 percent to $394,000.

This February

This February there was a surge of new listings with a monthly increase of almost 20%. Of course that increase was overshadowed by an even bigger increase in contracts. We’re talking to the tune of homes under contract increasing 17.82% from last month, and 4.79% from February of last year.

So what does this say? It says don’t be afraid to list. It’s needed and your home will sell.

source: Denver Metro Real Estate Market Trends Report – March 2017

Why Now Is The Time To Sell Your Home!

Why Now Is The Time To Sell Your Home!You might have heard that it’s not a good time to sell your home now that the election has come and gone. Don’t listen to them! Despite the fact that there are signs of a slow down, the real estate market is still hot and you could easily sell your home today.

Sell in a slow or hot market

So even if the market is slowing down a bit, how can you sell so easily? Why should you? Well, if you could have a Realtor come and tell you what your home was worth now or after you update a few things would you believe it? Of course! Homes that are up to date, in great shape will sell in a slow market or hot one.

Don’t fear, the market is still hot

Many people were holding off buying or selling until after the election, causing the slow down. As with any election year and the time leading up to it, who is in office makes a difference in the economy and economic fortune telling. Will they be pro-business and make it easier for investors? Will they be big government regulators who demand that home prices be regulated so everyone can buy a home, affordable or not? That question scares people into not moving until they know. Now that it’s over, and now that we know which party will be in control, things will pick back up.

Don’t be afraid

So what does that mean for you? Don’t be afraid to sell now. The market it still active and looking up. Fix up your home, contact a Realtor and see how well you can do TODAY. Why wait?

Why Denver Is On The List of Best Real Estate Markets For Millennials

The real estate market seems to be improving just about everywhere, and despite some obstacles that millennials
face, there are a few markets that are better for them to buy. Denver is one of them.

Factors for the best purchase markets

Why Denver Is On The List of Best Real Estate Markets For MillennialsAccording to the National Association of Realtors®, factors like employment gains, population trends, income levels and housing conditions have improved in several areas well enough that they identified as the best purchase markets for millennial homebuyers. This is important because millennials have been the largest share of home buyers for the past 3 consecutive years. The factors that went into deciding the best cities make overcoming factors like student debt, smaller down payment, savings and lower paying jobs a reality for millennials.

List of 10 best markets

NAR study found 10 metro areas that were the best purchase markets for millennials. Each was chosen because they showed above-average share of current millennial residents and recent movers, favorable employment opportunities and relatively low qualifying incomes needed to purchase a home. The areas, listed alphabetically:

• Austin, Texas
• Charleston, South Carolina
• Denver, Colorado
• Minneapolis, Minnesota
• Ogden, Utah
• Portland, Oregon
• Raleigh, North Carolina
• Salt Lake City, Utah
• Seattle, Washington
• Washington, D.C. (one note, the cost of living in and around DC metro area is higher than the other areas listed)

They then said that these areas have potential for millennial homebuyers:

• Boston, Massachusetts
• Dallas, Texas
• Des Moines, Iowa
• Jacksonville, Florida
• Nashville, Tennessee

So why not think about Denver? Great area, plenty of things to do and gorgeous mountain views. What could be better than that? Plenty for the outdoor enthusiast. Great educational opportunities as well.

Should You Sell Your Home In The Spring?| Denver Realtor Tips

If you ask anyone the best time of year to sell your home, they’d say late spring or summer. They’d be right. Spring is a great time to list your home for sale. Here is why you should sell in the spring.

First reason is that inventory is low, especially in early spring

Fewer people list during the winter so there are fewer homes for buyers to see. Should You Sell Your Home In The Spring?| Denver Realtor TipsIf the supply of homes is below enough listings for six months out, it’s a seller’s market. Winter is usually the time of year when there is a seller’s market. If your home is in great shape and is up to date, it will stand out from those that have been sitting over the winter. People start looking for homes in the spring so that they can move. For families that means after the school year ends and before the next one starts. For anyone, moving in warmer weather is much easier than moving in cold and possibly snowy weather!

Lower inventory also means that prices are probably higher

Prices are also rising in general, mostly because people are finally no longer underwater in their homes and are a bit more confident about the market prospects. Put the two of them together and it isn’t a stretch to think they will continue to rise. Buying now while prices are lower is a good idea.

Sell this spring for another reason: mortgage rates

Mortgage rates have been exceptionally low for quite some time, and will be rising. Not a lot, but enough that it will kill the real estate market, but enough that people will want to buy now. Especially those who are savvy enough to know that demand, and more supply, will be rising as spring heads to summer.

So, list now while the seller’s market is in the best place for you!

If you are thinking of listing your Denver area home, please give me a call to find out more! Tena D 303-452-5853

Should You Buy a Rental Property in a Hot Market Like Denver?

The real estate market in Denver has definitely heated up, so is now the Should You Buy a Rental Property in a Hot Market Like Denver?time to purchase a rental property? In a word, yes. Hot market or not, now is a great time to jump into being a landlord.

Low interest rates

As with buying a residence, buying to invest now while interest rates are at historical lows is a good idea that will save you money over the long term. Lower interest rates mean lower mortgage payments and that fixed rate mortgage will stay the same while rents will increase.

Tax advantages

Another reason to buy an investment property now? Tax advantages. Interest, taxes, insurance and other expenses of the rental unit are deductible against the property’s income. Any losses can usually be deducted against your other income. Depreciation is also tax deductible.

Depreciation

Depreciation is an allowance for wear and tear, usually over 27.5 years, or 3.636% of the purchase price of the building per year. Even better, rental properties can be sold and the proceeds used to purchase another investment property without you being hit with capital gains. Be sure to talk to your tax advisor about these and other tax advantages.

Different investment properties

There are a lot of different ways to have an investment property. You can purchase an existing home and break it into separate rental units, or create one in or on your existing home. You can purchase a unit in an existing condominium. Purchase a home in a place where you would like to retire later and rent it for the time being. Don’t forget about a vacation home that you can use for a set time a year without risking the rental tax advantages (again, check with your tax advisor about this). The options are endless.

Landlord risks

Just keep in mind that you will be a landlord and that comes with risks. Bad tenants, property upkeep and repairs and being saddled with that second mortgage if the property isn’t rented are all risks you take. So before buying, talk to a realtor who knows the local rental market. They can tell you what average rents are, how hot the rental market is and possibly help you get your property rented as well.