Can You Afford this Market?

Can You Afford this Market?

March 2022 Newsletter

In a matter of weeks, we’ve gone from speculation to realization: mortgage rates are now above 4% for a 30-year fixed-rate, the highest in two years. In a recent article from realtor.com, Freddie Mac Chief Economist Sam Khater said, “As rates and house prices rise, affordability has become a substantial hurdle for potential homebuyers, especially as inflation threatens to place a strain on consumer budgets.” How does this scenario play out here in Colorado, and how can buyers ensure they win in this market? 

 

On top of rising inflation and mortgage rates, Colorado is also facing an inventory shortage coupled with high buyer demand. After you factor in a 4% mortgage rate and increased living costs due to inflation, we’re also seeing homes sell way above asking price. If you go back just two years, you may have been able to buy a $400,000 home in Denver for $400,000. In this current market, that home could sell for as much as $500,000 - with very favorable terms for the seller. These increased rates have also motivated many ‘fence-sitters’ to finally purchase a home, which could make our supply/demand imbalance even greater.

 

Thankfully, it looks like more inventory is coming into the market. Traditionally, we see a 70% increase in new listings from December to January. In most areas along the Front Range, you can see significant increases in new listings over December 2021 numbers:

 

New Listings (Single Family Homes)

  • Denver County: up 87% from Dec 2021
  • Boulder County: up 82% from Dec 2021
  • Colorado Springs: up 18.6% from Dec 2021
  • Fort Collins: up 42% from Dec 2021 

 

There’s no doubt, it’s a challenging time for buyers, but 8z’s modern solutions are still helping them win in this competitive market. When facing multiple other offers, it’s crucial to stand out in the eyes of the seller. With 8z Cash Buyer, you can come to the table with an all-cash offer, which is usually the most attractive option for sellers. On top of that, clients who use Cash Buyer often end up paying less for their house, so it’s a win-win. Call me today to learn more about this innovative program!

Monthly Market Snapshots

Monthly Market Snapshots

Denver-Metro---Feb-2022
Boulder-County---Feb-2022-v2
Northern-Colorado---Feb-2022
Colorado-Springs---Feb-2022

Is Moving More Stressful than a Breakup?

Is Moving More Stressful than a Breakup?

According to move.org, a relocation resource, 38% of homeowners said moving is more stressful than parting ways with a significant other. Some of the major reasons are cost, lack of supply (of trucks/packing materials), and time spent packing up household items. If you’re looking to sell in Colorado’s current housing market, the biggest stress on your mind is likely, “Can I find a home to move into?” It’s a legitimate question with the lack of housing inventory, but 8z Modern Bridge virtually erases that concern. With our Bridge program, you go shopping for your new home first, move in, then sell your home on the open market afterward. 

Copy of 8z Bridge (2)

This has been the perfect solution for many 8z clients, removing the stress of selling your home and moving at the same time. Call me today if you’d like to chat about 8z Modern Bridge!

Global Uncertainty & the Impact

on U.S. Housing Market

Global Uncertainty & the Impact on U.S. Housing Market

In today’s world, significant political and financial events can have an impact that ripples across the globe, affecting markets thousands of miles away. The conflict in Ukraine is no exception, but the impact remains uncertain. Areas that have already seen plenty of volatility this year are the stock and cryptocurrency markets. This may affect the number of prospective buyers who are hesitant to make large purchases amid economic uncertainty.

Suburban,Subdivision,In,Town,Of,Erie,,Colorado.

U.S. inflation is already at a 40-year high, and further increases would affect all aspects of real estate. As stated in a recent article from Realtor Magazine, “Escalating inflation is hurting renters, buyers, and homebuilders who are facing rising construction costs.” The conflict overseas could also lead to higher oil and gas prices, which would surely put more strain on global supply chains, and continue to increase the cost of building materials. In short, this conflict could potentially hamper housing affordability on top of our current market factors.

 

It’s a tough market right now, but that doesn’t mean you still can’t make the right move for yourself and your family. Give me a call today, I’d love to hear from you!

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