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FRONT RANGE

May 2019

 
 

Real Estate Market Trends Report | May '19

Denver Metro Association of Realtors

In April, the average single-family sold home prices in metro Denver hit a record high of $553,371 and reached a year-to-date high of $527,244. The average condo sold price in April was $368,565, up 2.62 percent from March and up 2.17 percent year-to-date.

Read more... 

To view and download the entire report, click here...

 
Boulder News
 

Assessor Reports Increase Home Values in Boulder County

The Daily Camera

"Communities in every state are scrambling to redevelop economically disadvantaged areas or opportunity zones under a new federal tax break approved in late 2017. But the city of Boulder has gone the other way, putting a moratorium on projects in its zone and largely blocking developers from taking part in what is a limited-time offer."

Read the full article here.

 
Buyers' ADVICE
 

Spring-Summer Outlook Says Buy a Home Now

Over the last two years, homeowners accrued about $21,300 in home equity, $8,700 of which occurred over the past 12 months, according to the National Association of REALTORS (NAR). That’s an average of $10,650 per year, enough to pay back their closing costs and put them almost halfway to eliminating private mortgage insurance they may have.

Equity is only one reason people buy homes, partially explaining why home sales continue to be brisk. NAR Chief Economist Lawrence Yun said that a combination of lower mortgage rates, more inventory, rising income and higher consumer confidence are driving sales.

Meanwhile, prices are rising. In February 2019, the median existing (pre-owned) home price was $249,500, up nearly 4% year-over-year.

However, rising prices aren’t discouraging homebuyers. According to a recent quarterly NAR survey, more Americans believe that now is a good time to purchase a home, citing the improved economy as an incentive. Yun explained that other factors are spurring buyer optimism, including more available homes for sale and stabilizing home price trends. Data gleaned from electronic lockboxes report increased foot traffic at open houses.   

Yun also notes that mortgage affordability in 2019's first quarter was favorable to homebuyers, because the Federal Reserve isn’t going to raise overnight borrowing rates to banks, which contributed to mortgage rate declines and making homeownership slightly more affordable for homebuyers. Mortgage rates remain at historically low levels.

Whatever your reasons for wanting to buy a home, the outlook appears promising, especially if more sellers decide to put their homes on the market.

 

The Home Size and Clutter Relationship

In a way, the trend toward larger homes is the result of Americans’ fondness for clutter.

  1. The world’s tiniest house is in Germany. It’s one square meter, made of wood and glass, and it’s portable, if you don’t mind carrying it on your back. By day, you set the little house upright, where you can work at a little desk, and to relax or sleep. Of course, that means there’s no room for any belongings.
  2. If that’s too little space for you, you’re not alone. The typical home purchased in 2018 was 1,900 square feet in size, had three bedrooms and two bathrooms, and cost $249,500, according to the National Association of REALTORS.
  3. According to GarageWorks, a quarter of the households that have two-car garages store so much stuff they don’t have enough room to park any cars. The average American woman owns 30 different outfits, compared to women in the 1930s who owned only nine. The U.S. is home to 3.1% of the world’s children, yet consumes 40% of the world’s toys.
  4. That’s a lot of stuff, which has helped the self-storage industry grow into a $38 billion powerhouse. One in 11 Americans pays $91.14 per month to store stuff in approximately 48,500 storage facilities in the U.S. - more locations than McDonalds and Starbucks combined.

The National Association of Productivity and Organizing Professionals says Americans don’t use 80% of the things they keep. They cope by hiring professionals to organize their stuff.

 
Financial Advice
 

Your Loan Application Checklist

A down payment is your offer to share the risk of financing your home with the lender by putting your own money toward the purchase.

Fortunately, there are programs that allow low down - payments, but be prepared for some caveats. These loans are available only on primary residences, not investment properties or second homes, and they come with higher costs in your monthly payments.

The typical down payment to get the best interest rate and avoid mortgage insurance is 20% of the purchase price of the home. Anything less means the lender and guarantor such as FHA, VA or Fannie Mae, must ameliorate the added risk some way or another. So, what can you expect?

Expect to pay higher interest rates. Mortgage interest rates are variable, according to where you live, your credit, terms, and the amount of your down-payment. A low down-payment will result in a higher rate unless it can be offset by excellent credit or some other factor.

Expect to pay PMI. Private mortgage insurance, just like hazard insurance, will be added to your monthly payments. According to Interest.com, you’ll pay approximately 0.20% to 1.50% of the balance of your loan. With the exception of FHA loans, PMI will end automatically when you build 22% in equity.

Expect to pay fees. On VA loans, there’s no PMI, but you will pay a fee of about 2.15% of the loan amount your first time, and 3.3% on the second home loan. 

 
Active Office Listings
 

2135 South Jackson | OBSERVATORY PARK $1,147,000

  • 3 Bedrooms
  • 4 Bathrooms
  • 18,000 Square Foot Lot 
 

16289 West 84th Drive | ARVADA $804,900

  • 7 Bedrooms
  • 5 Bathrooms
  • 5000+ Finished Square Feet
 

8287 South Country Club Parkway | AURORA

$595,000

  • 5 Bedrooms
  • 4 Bathrooms
  • Nearly 10,000 Square Foot Lot 
 

5415 Spruce Avenue | CASTLE ROCK

$420,000

  • 4 Bedrooms
  • 3 Bathrooms
  • Richmond American Model Home
 
 

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Kelly Elizabeth Westergren
Broker Associate, Realtor, CRS
Kelly@KellyWestergren.com
303-883-4913
www.kellywestergren.com
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