I remember growing up and my mom dragging me around in her green Cadillac 🚙 as she was showing houses. 🏠🏠
I guess that's why it's in my blood. 🤷♀️ In 40+ years of real estate a girl learns a thing or 2.
I remember telling my mom's friends they needed to refi out of those 8% loans!
✅ Interest rates are way below predictions!
Call me and let's get going before the spring rush!
Jenn Sells RE/MAX Masters 303-877-2908
The interest rate you secure when buying your home impacts more than just your monthly mortgage payment. The higher the rate, the more money you will pay for your home over the course of your loan. Let's get together to discuss how to get you in your dream home at today's historically low rates!
Are you planning on buying a home this year? Show homeowners that you are serious about buying by getting pre-approved for a mortgage! Let's get together to help you take the first step in making your dream of buying a home a reality!
Let the Buying season begin!
☎️ Call or Txt let's get you ready!
✔️ Make sure you've got an advocate
Jennifer Sells 303/877-2908
RE/MAX Masters Millennium
5 Reasons Homeownership Makes 'Cents'
The American Dream of homeownership is alive and well. Before you sign another lease, let’s get together to help you better understand all your options.
5 Reasons Homeownership Makes "Cents" 😉
☑️ Owning is a sort of a Forced Savings Account
☑️Homeownership creates Tax Savings
🔒Lock your monthly living expenses
☑️Recent reports say house payments are lower than rents 🤯
☑️What other investment can you live in?
Here in the Denver Market we have had one of the most competitive real estate arenas year after year. Even when faced with challenges like the bail out back in 2008 - 2011 Denver was quick to recover.
Don't worry about whether an agent is hollering February is the month or August is the lowest month! The fact of the matter is the time is right when you are ready to buy. Of course, the sooner you buy the sooner you can start building your equity. My hope is to provide you with enough information you understand the process and lingo. As always.. reach out if you have a question. It's what I do! Jenn Sells
Even Here in the Denver he
Last week, the National Association for Business Economics released their February 2019 Economic Policy Survey. The survey revealed that a majority of the panel believe an economic slowdown is in the near future:
“While only 10% of panelists expect a recession in 2019, 42% say a recession will happen in 2020, and 25% expect one in 2021.”
Their findings coincide with three previous surveys calling for a slowdown sometime in the next two years:
The Pulsenomics Survey of Market Analysts
The Wall Street Journal Survey of Economists
The Duke University Survey of American CFOs
That raises the question: Will the real estate market be impacted like it was during the last recession?
A recession does not equal a housing crisis. According to the dictionary definition, a recession is:
“A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.”
During the last recession, prices fell dramatically because the housing collapse caused the recession. However, if we look at the previous four recessions, we can see that home values weren’t negatively impacted:
January 1980 to July 1980: Home values rose 4.5%
July 1981 to November 1982: Home values rose 1.9%
July 1990 to March 1991: Home values fell less than 1%
March 2001 to November 2001: Home values rose 4.8%
Most experts agree with Ralph McLaughlin, CoreLogic’s Deputy Chief Economist, who recently explained:
“There’s no reason to panic right now, even if we may be headed for a recession. We’re seeing a cooling of the housing market, but nothing that indicates a crash.”
The housing market is just “normalizing”. Inventory is starting to increase and home prices are finally stabilizing. This is a good thing for both buyers and sellers as we move forward.
If there is an economic slowdown in our near future, there is no need for fear to set in. As renowned financial analyst, Morgan Housel, recently tweeted:
“An interesting thing is the widespread assumption that the next recession will be as bad as 2008. Natural to think that way, but, statistically, highly unlikely. Could be over before you realized it began.”
According to Freddie Mac’s Primary Mortgage Market Survey, interest rates for a 30-year fixed rate mortgage are currently at their lowest for 2019. Rates like these haven’t been seen since February 2018!
Last week’s survey results reported an interest rate of 4.35%. This is a welcome change from the near 5% rates seen in mid-November. At 4.32%, the second week of February 2018 was the last time rates were this low. This can be seen in the chart below.
Freddie Mac’s Chief Economist, Sam Khater, had this to say:
“Mortgage rates fell for the third consecutive week, continuing the general downward trend that began late last year.
Wages are growing on par with home prices for the first time in years, and with more inventory available, spring home sales should help the market begin to recover from the malaise of the last few months.”
If you plan on buying a home this spring, meet with a local real estate professional who can help prepare you for today’s market before rates increase!
What’s Going On with Bidding Wars?
In a strong seller’s market, like the one we have experienced over the past few years, bidding wars are common and expected. This makes sense! A seller’s market is defined as a market in which the inventory of homes for sale cannot satisfy the number of buyers who want to purchase a home.
According to the Cambridge English Dictionary, bidding wars occur when two or more parties repeatedly outbid each other as they compete to purchase something- in this case, a home.
In some areas of the country, first-time buyers have been met with fierce competition throughout their experience. Some have been out-bid multiple times before finally winning a bid on a home to call their own.
According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), there is currently a 3.7-month supply of homes for sale.
With the current number of houses listed for sale and the level of demand from buyers, this means it would take 3.7 months for all the homes listed to sell if no additional listings came to market. Any supply number under a 6-month supply is considered a seller’s market. According to NAR, the housing market hasn’t had a 6-month supply of homes for sale since August 2012.
Good News for Buyers
A recent report shows that the percentage of houses sold including a bidding war before settling on a final price decreased from 53% in January of 2018 to 13% this year.
One reason for the decline is an influx of homes being listed for sale. Even though the month’s supply number is not increasing, the number of homes for sale is. The chart below shows the year-over-year change in inventory over the last 12 months.
[What’s Going On with Bidding Wars? | MyKCM]
As you can see, the number of homes for sale has started to build over the last eight months. Prior to this reversal, inventory levels had fallen for 36 consecutive months when compared to the year before.
Danielle Hale, realtor.com’s Chief Economist, gave some insight into why bidding wars are less common on a local level this year,
“[Last year] you might have been the only listing in your neighborhood, and you could put your home up at a certain list price and you would likely see multiple offers at or above that list price. That tide is turning this year.
It’s going to depend on what neighborhood you’re in, but we expect it to be more common this year that you won’t be the only listing.”
Inventory in the luxury and premium markets (the top 25% of listings in an area by price), is increasing at a greater rate than the starter home market. As the choices buyers have continued to increase, the likelihood of a bidding war will decrease.
If you are debating listing your house for sale this year, you may not want to wait for additional competition as inventory continues to rise.
Can You Buy? Why Not Try?
We know the drill... a large percentage of rentals have their renewals pop up between April & June in Denver Metro. 👀Have you ever just checked to see if you qualify to buy? What if your house payments were the same or less than your rent? 🏠⤵ It's highly possible with our ever increasing rental market. I'll even buy some PURPLE paint after you close with me.🤣 LOL 💜
When you're ready to find out call me Jenn Sells 303-877-2908
Michelle Kellar is one of the best lenders out there call her 303-210-3446 & just see. You may be surprised!