I got the call that they were relocating to Denver from Indiana in a month, coming in for a long weekend to buy a house. I knew it was much more than finding a house, we needed to find them their home. “Power shopping” in 90 degree heat, we toured ten properties. With their wonderful parents and a great son in tow, these buyers were champs! At day’s end we went for tacos at North County and discussed the top contenders over delicious margaritas. The next day, loaded up with snacks and water, we set out to see another ten. End of the day, our last showing was in Castle Rock. And it was PERFECT! Our offer was accepted and yesterday our new Colorado residents (and my new friends) moved into their gorgeous home. Congratulations, Nick, Katie, and Jake!
Helpful information on the home buying process including full MLS property search
The numbers are in and it’s been a wild ride! The year started with an insane first quarter, with buyers offering more than $100k over asking price, waiving inspections, covering appraisal gaps. And then, interest rates went up, showings dropped off, prices came down, and the market got… quiet.
It is common for the Denver real estate market to expect a seasonal slow down after July 4th, but this year’s cooling happened early. With the rise in inflation, the Feds pushed hard on rates and buyers pulled back. Many were exhausted by the Q1 rush, some felt the effects of the stock market, while others feared the increased interest rates. When rates rise 1 point, that’s a 10% reduction in buying power. A reduction in the loan amount often moves a buyer into a lower, more competitive, price point. Home prices have adjusted to these changes, leveling off a bit and shifting toward more balance, between home buyers and sellers.
“Every indicator points to the market shifting closer to a buyer’s market. The month-end active listing increased 21.53 percent last month, pending and closed deals decreased and days in the MLS increased by 30 percent. We are still a long way from what many experts would consider a buyer’s market.” -Andrew Abrams, DMAR Trends Committee Chair
With the number of residential homes on the rise, buyers have more options, but sellers see themselves with more competition than they did earlier in the year. The average close price saw a minor dip from the prior month but year over year, there was a 11.04% increase. As for days on market, there was both an increase from last month and from the same time in 2021.
With all the changes in the economy, we are not surprised to see movement in the real estate market too. However, don’t let the numbers keep you from your end goal. Whether that’s buying, selling, or investing one thing I know is that its your life that moves you, not the market. NOW is always the right time if it fits your personal situation.
Looking for more explanation on all of this? Comment, call/text/email and let’s have a conversation. Or if you’re shy like me, check out the Market Report for Q2 . If you want to see where we are today, click on the Denver Metro Association of Realtors Market Trends Report for August.
If you’re new to the home buying process, just starting to think about it, or haven’t done it in awhile, here’s help. Though there are many variables that exist within each transaction, these basic steps are the same. My job is to make sure it runs smoothly, from our first consultation to beyond the closing. Just like every home is unique, so is every home buyer. Knowing how much house you can afford is an important first step and getting pre-approved is critical. ( I work with some stellar lenders, I’d be happy to introduce you). Having an idea of the numbers makes your home shopping more efficient, and you’ll be ready to write an offer quickly. That’s a must in this competitive market.
There is no such thing as “the perfect house”. Finding one you can fall in love with takes market savvy, intuition and teamwork. I love the first meeting with buyers when they tell me what they want in a home and I follow up with questions about things they hadn’t though of. And I love the moment when we find the home and the whole energy changes. So cool.
Any questions? Want to talk? Is now a good time? I’d love to hear what moves you and help you have a stress-free home buying experience you will enjoy.
It’s March and home prices are rising annually, outpacing inflation. Real estate data group, CoreLogic recently released their January 2017 Home Price Index (HPI), showing prices increased 0.7 percent month-over-month and 6.9 percent year-over-year.“A combination of factors is driving momentum ahead of the curve,
says Dr. Frank Nothaft, chief economist of CoreLogic.
“With lean for-sale inventories and low rental vacancy rates, many markets have seen housing prices outpace inflation. Over the 12 months through January of this year, the CoreLogic Home Price Index recorded a 6.9 percent rise in home prices nationally and the CoreLogic Single-Family Rental Index was up 2.7 percent—both rising faster than inflation.”
Accounting for limited available inventory, CoreLogic’s HPI Forecast expects home prices to rise 0.1 percent month-over-month from January to February, and 4.8 percent year-over-year from January 2017 to January 2018.
“Home prices continue to climb across the nation, and the spring home-buying season is shaping up to be one of the strongest in recent memory. A potent mix of progressive economic recovery, demographics, tight housing stocks and continued low mortgage rates are expected to support this robust market outlook for the foreseeable future. We expect the CoreLogic [HPI] to rise 4.8 percent nationally over the next 12 months, buoyed by lack of supply and continued high demand”
adds Frank Martell, president and CEO of CoreLogic.
And according to Realtor.com, spring home-buying season got an early jump this year, indicating record-high home prices and record-low days on market for February. This is especially true for Denver where you’ll see in the chart that showings for February are up over this time last year. Time to move!
“I honestly believe that without Tracy, we would not be living in our dream house today. Tracy’s knowledge, intuition, skill and personality put her at the top. She really cares about people and fairness to both sides. She negotiated a win-win situation where both parties came away happy.” -Jeanne Ellis
“Tracy is the best!! She sold our 1 bedroom condo in a Historic Register building in Capitol Hill in Denver. Unlike many realtors who are just looking to make a sale and move on to the next, Tracy really cares about her clients and their financial situation. She actually convinced us not to sell the first time we contacted her because the market was in the pits and our condo was worth less than 1/2 what we paid for it. By following her advice and waiting a few years, we ended up making money on the condo when it sold for OVER the asking price. She was incredibly patient with all of our concerns and questions, and knows more about the market than anyone. Also worth mentioning that we were out of state for the whole process, so she handled EVERYTHING; renovations, cleaning, staging, pricing, showing, you name it! She made this very stressful situation much less so, and we can’t imagine using anyone else.” – Keith Orell
“Tracy Shaffer is the best! She is the best! We have bought and sold 4-5 times with her. She is professional, kind, super sharp, and on top of every detail. I trust her professionally and personally. No regrets ever. If you have a property to sell or are looking for one to buy, call her. She is an unbelievabye hard worker, absolutely professional, ethical, and fun to boot. We love her!” -Kelly Perez