Just last weekend, we were able to meet with some of you and many others for a Service Saturday project in Parker. We met at the Senior Center, were given an address and were off to rake leaves for home-bound seniors in our local community. We had a blast and were impressed how hard even the kids worked. At he end, we came together with lots of little groups like ours and worked to clean up The Victorian House Assisted Living Home. We met lots of new friends and had fun seeing those of you who were able to come!
What a wonderful opportunity it is to support the Special Olympic Community here in Colorado! We had such a great time meeting up with past clients and friends and forming a team to pull for a cause. We loved chatting with all the event participants and fellow teams that attended to pull. Thanks everyone who took the time to stop by our booth and chit chat. We enjoyed answering your Denver Real Estate Market questions.
What an awesome time we had at the Pirates Cove!Thank you so much for coming and for your willingness to give back to the community by donating to The Special Olympics.Continue to follow us for information on future events, real estate news and as always, if you know of or hear of anyone looking for assistance with real estate needs, think of us…We’re NOT YOUR AVERAGE REALTORS!
Congratulations to A. Shumway for winning the photo contest!!!
Our first Special Olympics event was such a success. Our family and a few friends had so much fun volunteering at the May 11 Denver Regional Track. It was an experience we will all remember! We got to work with the early education kids on their events helping them get where they needed to go and encouraging them on. Our favorite part of the day was the ribbon ceremony. We will forever remember the faces of the kids as they won their awards!
Last month we announced and pledged to our clients that this year we are doing a service project every month that you and your family can participate in. Doing good is an honor and we love serving the community, as do our clients. We look forward to serving with each of you this year!
Next month, we are serving with our partners The Special Olympics. Here is the service project link to volunteer at the May 11th Special Olympics track meet: HERE
Monday, we collected and packaged supplies for Shoe4Africa, a nonprofit that does everything from distributing shoes and school supplies to building schools and hospitals for our brothers and sister in need in Africa. We are blessed to have family members deeply involved in the building of a new hospital in the coming year there. With their visit to Africa coming up, we asked how we could help. They requested school supplies since they will be visiting multiple schools during their visit. These kits we assembled will be hand delivered in May. Thanks to each of you for your donations and volunteering efforts.
What’s Ahead for Real Estate in 2019?
As we begin another year, everyone wants to know: “Where is the housing market headed in 2019?”
It’s not only buyers, sellers, and homeowners who are impacted. The real estate market plays an integral role in the overall U.S. economy. Fortunately, key indicators point toward a stable housing market in 2019 with signs of modest growth. However, shifting conditions could impact you if you plan to buy, sell, or refinance this year.
HOME VALUES WILL INCREASE
The value of real estate will continue to rise. Freddie Mac predicts housing prices will increase by 4.3 percent in 2019.1 While the rapid price appreciation we witnessed earlier in the decade has slowed, the combination of a strong economy, low unemployment, and a lack of inventory in many market segments continues to push prices higher.
“Ninety percent of markets are experiencing price gains while very few are experiencing consistent price declines,” according to National Association of Realtors (NAR) Chief Economist Lawrence Yun.2
Yun predicts that the national median existing-home price will increase to around $266,800 in 2019 and $274,000 in 2020. “Home price appreciation will slow down—the days of easy price gains are coming to an end—but prices will continue to rise.”
What does it mean for you? If you’re in the market to buy a home, act fast. Prices will continue to go up, so you’ll pay more the longer you wait. If you’re a current homeowner, real estate has proven once again to be a solid investment over the long term. In fact, the equity level of American homeowners reached an all-time high in 2018, topping $6 trillion.3
SALES LEVELS WILL STABILIZE
In 2018, we saw a decline in sales, primarily driven by rising mortgage rates and a lack of affordable inventory. However, Yun isn’t alarmed. “2017 was the best year for home sales in ten years, and 2018 is only down 1.5 percent year to date. Statistically, it is a mild twinge in the data and a very mild adjustment compared to the long-term growth we’ve been experiencing over the past few years.”2
Yun and other economists expect home sales to remain relatively flat over the next couple of years. Freddie Mac forecasts homes sales will increase 1 percent to 6.08 million in 2019 and 2 percent to 6.20 million in 2020.1
“The medium and long-term prospects for housing are good because demographics are going to continue to support demand,” explains Tendayi Kapfidze, chief economist for LendingTree. “With a slower price appreciation, incomes have an opportunity to catch up. With slower sales, inventory has an opportunity to normalize. A slowdown in 2019 creates a healthier housing market going forward.”4
What does it mean for you? If you’ve been scared off by reports of a market slowdown, it’s important to keep things in perspective. A cooldown can prevent a hot market from becoming overheated. A gradual and sustainable pace of growth is preferable for long-term economic stability.
MORTGAGE RATES WILL RISE
The Mortgage Bankers Association predicts the Federal Reserve will raise interest rates three times this year, resulting in a rise in mortgage rates.5 While no one can predict future mortgage rates with certainty, Realtor.com Chief Economist Danielle Hale estimates that the rate for a 30-year mortgage will reach 5.5 percent by the end of 2019, up from around 4.62 percent at the end of 2018.6
While mortgage rates above 5 percent may seem high to today’s buyers, it’s not out of line with historical standards. According to Hale, “The average mortgage rate in the 1990s was 8.1 percent, and rates didn’t fall below 5 percent until 2009. So for buyers who can make the math work, buying a home is likely still an investment worth making.”7
What does it mean for you? If you’re in the market to buy a house or refinance an existing mortgage, you may want to act quickly before mortgage rates rise. To qualify for the lowest rate available, take steps to improve your credit score, pay down existing debt, and save up for a larger down payment.
AFFORDABILITY ISSUES WILL PERSIST
Although the desire to own a home remains strong, the combination of higher home prices and rising mortgage rates will make it increasingly difficult for many first-time buyers to afford one.
“Buyers who are able to stay in the market will find less competition as more buyers are priced out but feel an increased sense of urgency to close before it gets even more expensive,” according to Hale. “Although the number of homes for sale is increasing, which is an improvement for buyers, the majority of new inventory is focused in the mid-to-higher-end price tier, not entry-level.”6
What does it mean for you? Unfortunately, market factors make it difficult for many first-time buyers to afford a home. However, as move-up buyers take advantage of new high-end inventory, we could see an increase in starter homes hitting the market.
MILLENNIALS WILL MAKE UP LARGEST SEGMENT OF BUYERS
“The housing market in 2019 will be characterized by continued rising mortgage rates and surging millennial demand,” according to Odeta Kushi, senior economist for First American. “Rising rates, by making housing less affordable, will likely deter certain potential homebuyers from the market. On the other hand, the largest cohort of millennials will be turning 29 next year, entering peak household formation and home-buying age, and contributing to the increase in first-time buyer demand.”4
Danielle Hale, chief economist for Realtor.com, predicts the trend will continue. “Millennials are also likely to make up the largest share of home buyers for the next decade as their housing needs adjust over time.”6
What does it mean for you? If you’re in the market for a starter home, prepare to compete for the best listings. And if you plan to sell a home in 2019, be sure to work with an agent who knows how to reach millennial buyers by utilizing the latest online marketing techniques.
WE’RE HERE TO GUIDE YOU
While national real estate numbers and predictions can provide a “big picture” outlook for the year, real estate is local. And as local market experts, we can guide you through the ins and outs of our market and the local issues that are likely to drive home values in your particular neighborhood.
If you’re considering buying or selling a home in 2019, contact us now to schedule a free consultation. We’ll work with you to develop an action plan to meet your real estate goals this year.
START PREPARING TODAY
If you plan to BUY this year: Get pre-approved for a mortgage. If you plan to finance part of your home purchase, getting pre-approved for a mortgage will give you a jump-start on the paperwork and provide an advantage over other buyers in a competitive market. The added bonus: you will find out how much you can afford to borrow and budget accordingly. Create your wish list. How many bedrooms and bathrooms do you need? How far are you willing to commute to work? What’s most important to you in a home? We can set up a customized search that meets your criteria to help you find the perfect home for you. Come to our office. The buying process can be tricky. We’d love to guide you through it. We can help you find a home that fits your needs and budget, all at no cost to you. Give us a call to schedule an appointment today! If you plan to SELL this year: Call us for a FREE Comparative Market Analysis. A CMA not only gives you the current market value of your home, it will also show how your home compares to others in the area. This will help us determine which repairs and upgrades may be required to get top dollar for your property, and it will help us price your home correctly once you’re ready to list. Prep your home for the market. Most buyers want a home they can move into right away, without having to make extensive repairs and upgrades. We can help you determine which ones are worth the time and expense to deliver maximum results. Start decluttering. Help your buyers see themselves in your home by packing up personal items and things you don’t use regularly and storing them in an attic or storage locker. This will make your home appear larger, make it easier to stage … and get you one step closer to moving when the time comes!
With home prices on the rise and buyer demand still strong, some sellers may be tempted to try and sell their homes on their own without using the services of a real estate professional.
Real estate agents are trained and experienced in negotiation and, in most cases, the seller is not. Sellers must realize that their ability to negotiate will determine whether or not they get the best deal for themselves and their families.
Here is a list of just some of the people with whom the seller must be prepared to negotiate with if they decide to For Sale by Owner (FSBO):
- The buyer who wants the best deal possible
- The buyer’s agent who solely represents the best interests of the buyer
- The buyer’s attorney (in some parts of the country)
- The home inspection companies, which work for the buyer and will almost always find someproblems with the house
- The termite company if there are challenges
- The buyer’s lender if the structure of the mortgage requires the sellers’ participation
- The appraiser if there is a question of value
- The title company if there are challenges with certificates of occupancy (CO) or other permits
- The town or municipality if you need to get the CO permits mentioned above
- The buyer’s buyer in case there are challenges with the house your buyer is selling
The percentage of sellers who have hired real estate agents to sell their homes has increased steadily over the last 20 years. Meet with a professional in your local market to see the difference that he or she can make in easing the selling process for you.
I found this article on Keeping Current Matters.
We want to thank each and every one of you for coming to our event Saturday night. We had a great turnout and we were able to raise donations for our sweet friend Dallin and his family. Thank you for your generosity and kindness with your donations and bids on our auction. As always, a big THANK YOU to our sponsors for making such events possible: First Bank, Williams Dental Implant and Surgery, Comfort Dental Centennial, Pesta Chiropractic, and Toyota. We hope that this annual event can continue to benefit our clients and families in need for years to come.
Here are some pictures from our fun night! If you didn’t make it this year…we will see you next year for all the fun!
Thanks to our volunteers!
Our wonderful friends-The Simpson Family!
Justin and Kristin Andersen with Piper and the Conductor!
Thanks to the MANY who donated to the baskets!
One of our generous sponsors- Williams Dental Implant and Oral Surgery. THANK YOU!!
I still remember when I bought my first home with my husband. We were so excited and nervous and clueless but we always say it was the BEST thing we ever did. Our credit score and equity from both our homes have increased our financial situation way more than we ever could have thought. It is nice to not be paying money every month for something we can never own. Buying your first home is one of those “American dreams” that has become easier to realize in our generation than for our parents and grandparents. What a blessing!
We here at Andersen Realty do recognize the anxiety and unknowns that come when you are starting to prepare for your first home purchase. There is lots to know and ways to be smart. We are offering a First Time Home Buyer Seminar this Friday night, November 9th at 7 p.m. at the Willow Creek III Clubhouse 8091 E. Phillips Circle. (See flyer below! Click HERE to register! Or maybe spread the word to someone you know?!!
We will be discussing much more than the following…but just as a teaser, we offer these 10 First Time Home Buyer Tips from The Lenders Network.
As school starts up and our “to do” lists grow, we find ourselves with less pool time and more after school activities. I find this time of year encouraging and overwhelming. I googled “most stressful life events” and found that back to school did not make the list. But, the list proved once again to me that relationships are what is important in life. Almost all items on the list deal with loved ones and events including hardship as a family. According to paindoctor.com the list is:
- Death of a spouse or child
- Marital Separation
- Death of a close family member
- Personal Injury or illness
- Dismissal from work
- Marital Reconciliation
Buying or selling a home DOES NOT make the list! I have a friend who tried to sell her house using an online realtor company that puts a sign in your yard and does the paperwork. I have never seen her more stressed and the house didn’t sell. It doesn’t have to be like this!! Get yourself a real estate agent, have them do the work and watch your home sell faster, for more money, and with WAY less stress. I stumbled across this informative fact filled article on Keeping Current Matters…
Is Buying a Home Really More Stressful than Planning a Wedding?
- According to a new survey from Open Listings, 62% of Americans ages 25-54 believe that buying a home is more stressful than planning a wedding.
- Many young couples are saving for a wedding and a home at the same time.
- The average US wedding now costs 66% of a median home down payment, according to The Knot.