Welcome to the November edition of the 2014 Denver Real Estate Market Newsletter.
It’s a Great Time to Buy AND it’s a Great Time to Sell!
What does it mean when it’s both a ‘Great Time to Buy’ and a ‘Great Time to Sell’? It means we have a healthy, stable real estate market which has benefited from low interest rates and strong buyer demand.
Why it’s a great time to buy?
1) On Friday, rates for a 30-year fixed rate mortgage were just 3.875% (with 1 point). This is the lowest we’ve seen rates since June 2013. Many experts predict that interest rates will begin to climb in 2015.
What will happen to home affordability when rates climb?
With a $400,000 Purchase Price
With a $600,000 Purchase Price
Buyer’s Lose 10% of their Purchase Power with only a 1.0% Increase in Interest Rate!
2) Sellers who’ve been watching their homes sit on the market are now getting realistic. Of the 107 single family homes currently for sale in Highlands Ranch, 45% have had at least one price reduction. Earlier in the year, during the height of the spring market, it was uncommon for a seller to have to make any price reduction. What’s happening in Highlands Ranch is typical for what is also happening throughout the Denver metro area.
Why is it a Great Time to Sell?
1) Home prices have appreciated in the range of 4% to 6% in 2014. When combined with 2012 and 2013 home appreciation, we are above the pre-recession highs which occurred in late summer 2006. Sellers who were upside down and unable to sell during the housing downturn, have now returned to positive equity.
2) We need inventory! In October, the available number of homes for sale dropped to 8,041. This is a record low number! The last time we saw numbers this low was 1985, when there were far fewer homes in the Denver metro area. When compared to October 2013, the number of homes for sale dropped 25.5%. Thinking in terms of supply and demand, the best time to sell is when there is little competition. Just one more reason to consider selling your home now!
Even if you’re just contemplating a real estate move, please call me. I’d love to sit down with you to discuss the ‘pros’ and ‘cons’ of making a move. It’s never too early to bring in a real estate professional when making one of the biggest purchases of your life. Typical clients contact me 12 months before making their move.
FACEBOOK AND PAUL’S MOBILE REAL ESTATE APP
Please ‘Like’ my Facebook business page. Use this link to be redirected to ‘Paul Sobania – Real Estate’ and click on the ‘Like’ button (log in to Facebook.com if needed).
Search homes for sale on your smart phone or tablet using my home search app. Log in to the iTunes Store or Google Play and download the Keller Williams app. When prompted, type in the code ‘KWKB85L’. For simple downloading instructions use this link, www.PaulMobileApp.com.
OCTOBER 2014 REAL ESTATE MARKET TRENDS
DENVER REAL ESTATE MARKET TRENDS
REAL ESTATE NEWS
- Colorado sees big drop in foreclosure filings in October Read More
- Consumers Win with New QRM Rule Read More
- U.S. Fed ends 6-year effort to stimulate economy Read More
- U.S. Economy Up 3.5% in 3rd Quarter, Best 6 Months in a Decade Read More
- Metro Denver unemployment rate 3.7% Read More
- Colorado unemployment rate drops to 4.3% Read More
- U.S. jobless rate falls to 5.8% Read More
- Lockheed Martin Adding 500 Jobs Read More
- Donors give massive Chihuly sculpture to Denver Botanic Gardens Read More
- C-470 expansion with toll lanes moving to begin in 2016 Read More
- Planning Underway for RidgeGate Parkway Widening Read More
- $177 million Promenade development breaking ground in Castle Rock Read More
- Pipeline deal brings Denver’s south suburbs closer to new water supply Read More
THANK YOU FOR YOUR BUSINESS AND REFERRALS!
If you or someone you know is thinking about buying or selling a home, please let me know. It would be my pleasure to work with you or your referral. My commitment to my clients is to treat them with the utmost care as they work towards buying or selling a home. Referrals are the core of my business and are always appreciated.
Free Real Estate Tools
When searching for homes for sale anywhere in the Denver metro area use this link, Interactive Map-Based Home Search. This interactive, map-based home search tool makes looking for homes fun and easy. If you are interested in a specific neighborhood, whether it is your current neighborhood or the one you hope to move to someday, this site can send you e-mail notifications when new homes come onto the market. Happy home searching!
Please call me with your real estate questions. I’m always happy to help you navigate through this constantly changing real estate market!