DMAR Real Estate Market Trends Report | April '18

In April, Denver-area homebuyers purchased homes on theh market within an average of 20 days alongside the average single-family home prices reaching a record-high $543,058. 

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To view the entire report, click here...

Local Statistics from Lonnie Glessner

MetroStudy released their first quarter report on new home construction for metro Denver. Only 1% of new home starts in the first quarter had a base price below $300k, down from 3% of new home starts a year ago. 

• Only 22% of new homes started had a base price
• 41% of all starts had base prices in the $400's.
• 22% of all starts had base prices in the $500's. 
• 9% of all starts had base prices in the $600's.
• Home starts for the first quarter rose 14% from a year earlier as builders started 3,222 new homes, helped by mild and dry winter weather.
• Annual starts increased 8% year over year to 12,396 units. This was the first time home builders eclipsed the 12k mark since 2007.
• Builders also built and closed 2,733 homes in the first quarter, up 14% compared to a year ago..
• Closings for the last 4 quarters totaled 10,462 units, up 6% from a year ago.

As I have been saying for 2 years, metro Denver home builders built over 15,000 new homes a year for 10 consecutive years (1997-2006), so they have a long ways to catch up. 

Plus if Initiative 66 makes the ballot and is passed by voters, new housing growth will drop about 50% as this Initiative would limit new housing starts (for sale and rental) to just 1% of current inventory levels. This means builders and developers could only get permits for about 13,000 homes and apartments in 2019 and 2020. This initiative would be a great way to make the entire Front Range real estate market look like Boulder's.

Wave of Wealthy Out-of-Town Buyers Pushes Up Boulder Home Prices

City's average is $1.2M, up 21 percent from one year ago; largely driven by $2M+ sales. 

A spate of $2 million-plus homes in Boulder has pushed the average home price of a single-family house to $1.2 million, Desipute the eye-popping number, real estate agents say it is Boulder's relative global affordability that is attracting out-of-town-buyers.

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How Late Payments Impact Credit Scores

FICO scores, the Fair Isaac Corporation credit-scoring system, are used by lenders to determine your creditworthiness. The lower your scores, the more risk you pose to lenders, resulting in higher interest rates or loan denial.

Scores fluctuate for many reasons, including your debt-to-income ratio, making minimum payments only, credit inquiries and other factors. But nothing impacts credit scores like a missed rent or revolving credit payment. And, for the best-scoring consumers, the drop in credit scores is the most punishing.

Making timely payments is one of the easiest things you can do to show you’re using credit responsibly, which is why your payment history accounts for the largest part of your FICO score—35 percent.

Late payments remain on your credit report seven years from the original delinquency date, regardless if the payment is made and the account is current or if the account is closed and the payment is never received, according to Experian.com.

The more recent the late payment, the more it can impact your scores. If you’re late or missed a payment, make the account current as quickly as possible. The length of time it takes to recover will depend on whether the late payment is an anomaly or part of a habitual pattern.

Establish a current history of on-time payments. Use at least one credit card, paying in full each month to avoid finance charges.  

On-time payments will add positive activity to offset negatives from the past, and over time your credit scores will rebound

Three Responsibilities of Homebuyers

Nothing says, “Welcome to Adulthood” like buying a home. You’re taking on very real responsibilities, but you may not realize how far they reach and impact others. Meeting them will reward you and your family for years to come with more equity, happier neighbors and a better living environment for your family.  

Financial responsibilities: Paying your mortgage on time helps you build better credit and gets you lower interest rates if you refinance or make a new purchase loan some day. Now’s not the time to get overextended with new furniture, remodeling or other debt.

Limit the credit you actively use and pay off balances every month. Don’t add new charges until you’ve paid off your balances. Try to save as much as you comfortably can with the goal to build at least six months of cash so you can make your house payments if you become ill, lose your job or face an emergency.

Neighborhood responsibilities: When you buy a home, your household becomes part of the neighborhood. Protect your investment and that of your neighbors by keeping your lawn and trees trimmed, your home freshly painted and repaired, and toys and trash picked up from the yard.

Household responsibilities: Your home should help make you and your loved ones safer and happier. Don’t take on more house than you can comfortably afford. Try to choose the best home that suits the needs of your household without creating anxiety between you and your spouse over monthly bills.