The stats are out for the month of February, and the numbers reflect the uptick of a spring buying season.   The inventory declined 10% from last month but increased 79.4% over last year.  The inventory has not moved much since the beginning of the year.

This data is courtesy of Joan Cox - House to Home, Inc.

I track data daily for the Denver metro area, and the amount of price reductions have been hovering around 600-650 each week and homes returning to market have been around 225 per week.   The inventory this time of year is seasonally low, and is below 4,000 during the week, and pops up to a bit over 4,400 for the weekends.  (includes land up to high-end homes)

See what homes are currently available - Active Homes for sale in Denver

Buyers - If you have thought about buying a home this year, rates are down a bit, and now seeing multiple offers on properties.  Showings have picked up too.   Rates may be holding you back, but you no longer have to pay thousands over fair market value, there are sellers possibly willing to give you concessions for your closing costs and no one is waiving inspections right now!

Be sure to be pre-approved and know what your budget is!    With increased inventory, you now have a bit more of a selection and don't have to narrow your criteria.    We are also seeing a few homes returning to the market, so it would be a good idea to write a backup offer if you did not "win the bid", as you may get a second chance.

Sellers - My sellers are seeing a nice bottom line!    Even though the inventory is holding steady, there are buyers out looking for their dream homes.   Patience is key, we are seeing the number of showings increase and if priced right and shows well, you could see multiple offers.     Buyers are looking for homes ready to move-in, so fix those items you know are issues before listing!

Homeowners - if you have thought about selling and like like a home evaluation, please let me know, I will contact you right away.  Relocating to Denver, and need some advice - see my Relocating to Denver information.

When you buy your first house, the thought of having a home completely paid off seems like a distant dream.   It will take some time, and some diligence in budgeting and smart investments.   By doing these tips, you can pay off your mortgage loan much sooner than expected!

Paying an Extra Payment

Try to pay something extra every month and put towards the PRINCIPAL, not a payment (which would include taxes and escrows).   I like to say - pay one full payment amount towards principal every year.   How about the tax refund you get back from taxes, or a bonus from work?  Or divide your payment into 12 and pay that extra amount every month.  Eventually you won't even miss this money.   Paying down the principal will shorten the loan term.

If you can make bi-weekly payments towards principal, this will result in a quick reduction of your principal balance.  

Paying Bi-weekly payments

By making bi-weekly payments you can save thousands of dollars in interest instead of monthly payments.   You will hardly feel this, but make a good dent in the principal balance.

Refinance to a shorter loan term

When the rates come back down, refinance to a 2o-year loan or a 15-year loan, but do not take any cash out.   By using your home as an ATM, this will only lengthen you mortgage term.    By shortening the loan term is will save you money on interest paid.

Try to "recast" your loan

If you have enough equity in your home to show 20% equity, try contacting your mortgage company and see if they will recast your loan.   This is almost like a refinance, but no fees.   If the bank will do this, it is possible to eliminate mortgage insurance, saving you hundreds, and be able to apply this every month to your principal balance.

Pros and Cons of Paying your Mortgage off Early

Obviously the largest pro is --- NO HOUSE PAYMENT!   But, don't forget, you still have property taxes and homeowner insurance, and maybe an HOA payment.   By paying it off early, you saved lots on the interest you would have paid.   Before you pay off your mortgage, be sure you do not have a prepayment penalty.   You can call your mortgage company and see if there is a penalty for prepayment.

By not having a house payment, you can sock money away into investments for retirement.   If you do need money down the road, you can always apply for a home equity line of credit.  You only pay on this when it is used.  

By paying down your principal balance, if/when you want to sell and buy another home, you will have more of a down payment with equity in your home, giving you more options when buying a replacement home.

The con would be your FICO score is based on 3 basics - one mortgage loan, one car loan and two credit cards.   When you pay off your home, this will reduce your FICO score, but not by much.

Conclusion -

By paying your home off early, gives you peace of mind, you have money to do other things like remodeling or traveling.   It reduces the financial stress by having a monthly payment and can enjoy a comfortable lifestyle.

Have questions - would love to talk with you - Joan Cox - 720-231-6373

Spring is around the corner, and this time of year gets very busy with buyers and sellers.    Is this the year you want to list your home and upgrade, or downsize, or move out of state?

Would you like to have an instant valuation for your home?   Check on this link, go to the bottom of the page, and you can get an instant valuation!

The stats are out for the month of January, and the numbers reflect the seasonal slowdown this time of year, along with interest rates bouncing around.   The inventory declined 13% from last month, but increased 80% over last year.  The inventory has not moved much since the beginning of the year.

This data is courtesy of Joan Cox - House to Home, Inc.

I track data daily for the Denver metro area, and the amount of price reductions have been hovering around 600-650 each week and homes returning to market have reduced to around 200 per week.   The inventory this time of year is seasonally low, and is below 4,000 during the week, and pops up to a bit over 4,000 for the weekends.  (includes land up to high-end homes)

See what homes are currently available - Active Homes for sale in Denver

Buyers - If you have thought about buying a home this year, rates are down a bit, but the good news, there are fewer multiple offers on properties.    Rates may be holding you back, but you no longer have to pay thousands over fair market value, there are sellers willing to give you concessions for your closing costs and you can ask for inspection items, so it isn't as bad as it seems!

Be sure to be pre-approved and know what your budget is!    With increased inventory, you now have a bit more of a selection and don't have to narrow your criteria.    We are also seeing a few homes returning to the market, so it would be a good idea to write a backup offer if you did not "win the bid", as you may get a second chance.

Sellers - My sellers are seeing a nice bottom line!    Even though the inventory is holding steady, there are buyers out looking for their dream homes.   Patience is key, we are not seeing the number of showings we did earlier in the year, and your home will be on the market a bit longer now.   It also is KEY to price your home properly this time of year, or you will be sitting on it into January.    Buyers are looking for homes ready to move-in, so fix those items you know are issues before listing!

Homeowners - if you have thought about selling and like like a home evaluation, please let me know, I will contact you right away.  Relocating to Denver, and need some advice - see my Relocating to Denver information.

Should I paint and replace the carpet or sell the home like it is?     Many Sellers ask these questions, and always recommend getting this done prior to listing.   These two items make such an impression when buyers walk in the door.     It gives the home a "face-lift", and smells good.

Some other items that would make great impressions for buyers -

• old bathtubs - reglazing
• bathtub re-caulking
• outdated lighting in the kitchen, baths, and hallways replaced
• old wrought iron railings getting a new coat of paint
• old appliances replaced

I showed a property yesterday that I am not sure I would have put on the market looking the way it did.   The whole home needed paint, the wood trim throughout the entire home needed TLC, and burgundy carpet and the whole house was dirty and smelled dirty.

After all, buyers will "guesstimate" way too high for what it would truly cost to do minor updating.    In fact, by doing a few things to update your home, you could see many more dollars in return at closing.    I have seen bathtubs that should be replaced, but a company could come out and re-glaze the tub to make it look brand new.   Is the caulking around the tub dark or ugly?    Replacing old and outdated lighting in the bathroom, kitchen, and hallways help also.

I have seen the "old wrought railings" from the 70's get spray painted a copper color and they look like they are from the new century!     Old appliances are wise to have replaced with new ones too.

Not all dollars spent on updating will be seen on the bottom line, but even though our market has done a small shift, homeowners would be much better off getting some of these items done BEFORE listing.    Most buyers I have worked with either want the home absolutely ready to move in, or they are looking for a fixer where they can do the repairs, but also want it for the best price.

The interest rates are bouncing around a bit and are higher than they were last year.    Is this stopping you from a purchase?     A couple of my buyers recently did a buy-down through the lender, with Seller concessions, and got a lower interest rate, and a lower house payment.    One couple was able to go from 1100 square feet to over 3,000 with this process!

Is it time to talk to a lender and see what you could do?

What does this mean for a Seller?    You now don't have to worry about selling and wondering where you will live!   The market isn't frenzied (yet).     Since the first of the year, we are seeing from 700-900 new listings a week come on the market, but 1200 listings going pending.    We are not seeing an increase enough to keep up with the current demand.   It won't take long, and it COULD again be a frenzied market in Denver.    

To get back to what this market means for a seller - you may get multiple offers, if your home is ready to move, good location, and priced at fair market value.    This market is still not one for "let's try a bit higher".   Your home will sit on the market, and get stale.     You may need to provide dollars for the buyer's closing costs and/or buy down.   BUT, on the replacement property, you will see the same thing!

This may be the right time to list your home, and start the search for your replacement home before the market gets going full on with the spring buying season!

If you are thinking this might be a good time to sell or buy, give me a call, and let's talk about your options!

In March 2022, the Federal Reserve began a series of interest rate hikes in an effort to pump the brakes on inflation. And while some market sectors have been slow to respond, the housing market has reacted accordingly.   In Denver, we saw a shift almost immediately.

Both demand and price appreciation have tapered, as the primary challenge for home buyers has shifted from availability to affordability. And although this higher-mortgage rate environment has been a painful adjustment for many buyers and sellers, it should ultimately lead to a more stable and balanced real estate market.

So what can we expect in 2023? Will mortgage rates continue to climb? Could home prices come crashing down? While this is one of the more challenging real estate periods to forecast, here’s what several industry experts predict will happen to the U.S. housing market in the coming year.

MORTGAGE RATES WILL FLUCTUATE LESS

In 2022, 30-year fixed mortgage rates surged from roughly 3% in January to around 7%. According to Rick Sharga of real estate data company ATTOM, “We’ve never seen rates double in so short a period.”   This put many buyers on edge, and sat on the fence about a purchase.

This year, economists forecast a less dramatic shift.

In an interview with Bankrate, Nadia Evangelou, senior economist for the National Association of Realtors, shares her vision of three possible mortgage rate scenarios:

1.  Inflation continues to surge, forcing the Fed to repeatedly raise interest rates. In that scenario, she predicts that rates could reach as high as 8.5%.

2.  Inflation decelerates and mortgage rates follow suit, averaging 7 to 7.5% for the year.

3.  Rising interest rates trigger a recession, which could ultimately lead mortgage rates to drop closer to 5% by the end of the year.

Realtor.com forecasts something similar to scenario #2 above: “Mortgage rates will average 7.4% in 2023, trickling down to 7.1% by year’s end.” The Mortgage Bankers Association, however, projects something closer to Evangelou’s scenario #3, with the 30-year fixed rate declining steadily throughout the year, averaging 6.2% in Q1 and 5.2% by Q4.

Economists at Fannie Mae fall somewhere in the middle. In a recent press release, they predicted that the U.S. economy will experience a “modest recession” this year.  But in their December Housing Forecast, they project that 30-year fixed mortgage rates will only fall by half a point from an average of 6.5% in Q1 to 6.0% in Q4.

“From our perspective, the good news is that demographics remain favorable for housing, so the sector appears well-positioned to help lead the economy out of what we expect will be a brief recession,” said Fannie Mae Chief Economist Doug Duncan.

What does it mean for you? Even the experts can’t say for certain where mortgage rates are headed. Instead of trying to ”time the market,” focus instead on buying or selling a home when the time is right for you. There are a variety of mortgage options available that can make a home purchase more affordable, including adjustable rates, points, and buy downs—and keep in mind you can always refinance down the road.  In Denver, we are seeing Sellers paying concessions for buy downs.

SALES VOLUME WILL FALL AND INVENTORY WILL RISE

It looks like the home-buying frenzy we experienced in recent years is behind us, thankfully. While the desire to own a home remains strong, higher mortgage rates have made it unaffordable for a large segment of would-be buyers.

Many economists expect the number of home sales to continue to decline this year, leading to an increase in listing inventory and days-on-market, or the time it takes to sell a home. But, there is a wide range when it comes to specifics.   In Denver right now, we are seeing around 700-800 new listings come on each week, but the pending properties are hovering around 1200-1300.   At this rate, our inventory will drop severely.

However, given the severe lack of housing supply, even with a double-digit increase, the market is expected to remain relatively tight and below pre-pandemic levels. Hale points out: “It’s important to keep historical context in mind. The level of inventory in 2023 is expected to fall roughly 15% short of the 2019 average.”

What does it mean for you? If you’ve been frustrated by a lack of inventory in the past, 2023 may bring new opportunities for you to find the perfect home. And today’s buyers have more negotiating power than they’ve had in years. Contact us to find out about current and future listings that meet your criteria.

If you’re hoping to sell, you may want to act fast; rising inventory levels will mean increased competition.   If the weather gets better, and we see less snow, we may see more listings come on each week.   This is not the market to "try and sell high", or your home will sit on the market.  We can help you chart the best course to maximize your profits, starting with a professional assessment of your home’s current market value. Reach out to schedule a free consultation.

HOME PRICES WILL REMAIN RELATIVELY STABLE

While some economists expect home prices to fall this year, many expect them to remain fairly stable. “For most parts of the country, home prices are holding steady since available inventory is extremely low,” said Yun at a November conference.

Still, many economists agree that a housing market crash like the one we experienced in 2008 is highly unlikely. The factors that caused home prices to plunge during the Great Recession—specifically lax lending standards and a surplus of inventory—aren’t prevalent in our current market.10 Therefore, home values are expected to remain comparatively stable.

What does it mean for you? It can feel scary to buy a home when there’s uncertainty in the market. However, real estate is a long-term investment that has been shown to appreciate over time. And keep in mind that the best bargains are often found in a slower market, like the one we’re experiencing right now. I know my buyers over the past few months have seen a pretty good value in the homes they purchased.

And if you’re planning to sell this year, you’ll want to chart your path carefully to maximize your profits. Contact us for recommendations and to find out what your home could sell for in today’s market.

RENT PRICES WILL CONTINUE TO CLIMB

Affordability challenges for would-be buyers, inflationary pressures, and an overall lack of housing could continue to drive “above-average” rent price increases in much of the country. The Federal Reserve Bank of Dallas expects year-over-year rental price growth to tick up to 8.4% in May before moderating later in the year.

According to Hale, “U.S. renters will continue to face challenges from limited supply and excess demand in the coming year that will keep upward pressure on rent growth. At a national level, we forecast rent growth of 6.3% in the next 12 months, somewhat ahead of home price growth and historical rent trends.”

However, there are signs that the surge in rent prices could be tapering. According to Jay Parsons, head of economics for rental housing software company RealPage, there’s some evidence of a slowdown in demand. He predicts that market-rate rents will rise just 3.3% this year. Still, analysts agree that a return to lower pre-pandemic rental prices is unlikely.

What does it mean for you? Rent prices are expected to keep climbing. But you can lock in a set mortgage payment and build long-term wealth by putting that money toward a home purchase instead. Reach out for a free consultation to discuss your options.

And if you’ve ever thought about purchasing a rental property, now may be a perfect time. Call today to get your investment property search started. WE’RE HERE TO GUIDE YOU While national real estate forecasts can provide a “big picture” outlook, real estate is local. And as local market experts, we can guide you through the ins and outs of our market and the issues most likely to impact sales and drive home values in your particular neighborhood.

If you’re considering buying or selling a home in 2023, 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.

If you have thought about selling your property this year, and have wondered what your property is worth, or how much you could make from the sale, contact me and I will provide you with this information!  Over the last five to six years, Sellers have seen more equity than over the previous decade!

I have sold homes across the Denver metro area for years, and have been able to surprise many sellers with more than they anticipated at closing, especially now with increasing values.  The market is picking up, and buyers are looking right now!

Find out what your home is worth!

Selling your home in today's market still helps when you have a completely turnkey home.   Clean, repairs made, etc.  Homes that need TLC will reap less on an offer than one with little to no repairs needed.  You can either sell a home as "fix-up" or "ready to move in".  The list prices will be definitely different!  Buyers always inflate the cost of these repairs and reduce their offer to reflect the needed repairs or pass on your home.

Need more information - give me a call and we can talk about your options!  

A Luxury Home can be identified differently in cities across the country, but in Denver, my Luxury blog posts will report on detached single-family homes listed in the Denver metro area for over $1.3 million.  (Over the years I have used $1 million as luxury, but with our rising home values, had the need to increase this amount.)  Some have mountain and/or city views, and some properties back to a golf course, or have water views all to compliment one's lifestyle.  (however, we don't have much water)  Some are updated with products from around the world, and some have expansive square footage or acreage.     Whatever a Buyer is looking for, most likely if you have over $1.3 million, you can find it in Denver or in the surrounding suburbs.   

Here is how the luxury market fared for the month of December 2022 -

Total sales - 115 homes ranging from $1,300,000 to $5,750,000 (last month was 149 homes, 2021 was 311)   

Average Days on Market - 42 days (last month was 42 days last month and 2021 was 38 days)

Sellers saw - 97.49% to list price

Average price per SF (Total) - $599.00 (last month was $549.93)

These homes were built from 1900 to 2023

There was a significant drop in sales in December over 2021.   30% of the sales were paid with cash, and for the past few months, it has hovered around this percentage.   There are 389 actives today with 105 days on market, and 188 in pending status with 88 days on market.   The days on market with active and pending properties have increased.

The highest-priced home sold was $5,750,000 in the Denver Metro and is in  Cherry Hills Village.  This home was built in 2004, on .83 acres.  It has 6 bedrooms, 8 bathrooms, and a 4-car garage.  This home has 10,283 square feet and was sold in 137 days.

Looking for a home on acreage and private?    With mountain views?    Or would you like to see what homes are for sale over $1,000,000?   How about a home in a gated community?

Short Sale homes for sale

Contact me for bank-owned properties for sale

With the cold and snowy weather, need a room to cozy up and enjoy the fireplace and views?

There are 389  homes for sale in the Denver metro area listed over $1,300,000 up to $28,888,888.   They have been on the market for an average of 105 days and these homes were built from 1883 to 2024.     There are no bank-owned properties currently on the market, nor any short sales active.

There are 188 homes currently pending over $1,300,000 up to $5,300,000 with an average of 88 days on market.    These homes were built from 1886 to 2023.    

Here is how 2021 compared to 2022

Total Sales             2021 - 4,487                  2022 - 2,737

Days on Market      2021 - 27 days              2022 - 24 days

Average Price Sold   2021 - $1,350,000       2022 - 1,673,000

% Seller Saw to List    2021 - 100%             2022 - 100%

With home values on the rise, we are seeing more sales over $1 million.    I did bump the price point to $1.3 million for 2022.    It isn't unusual to see a million-dollar home.   We are seeing some homes linger a bit longer on the market now.

I have obtained my luxury marketing certification which has given me a multitude of new ideas.    If you have seen a home in this post this intrigues you, give me a call - 720-231-6373.