Well here we are in the new year 2017 and our Real Estate market feels poised to be another great year for sellers and buyers. Home prices continue to rise which helps sellers have an opportunity to trade up which often means inventory for that newer buyer. Interest rates are still good for buyers who get out in the market now and buy. That’s a win-win! Builders are still running full speed and there is that optimism living here in Colorado that makes things good.
We don’t have all the 4th quarter analysis completed but take a look at the 3rd quarter and you will see the continuing trend.
December 2016 Newsletter
Happy New Year all!
The question I’m asked is if it’s a good time to buy now here in the Broomfield and Denver market. Yes. Some of the reasons you already know if you live here and love the lifestyle too. Along with that reality you have to live somewhere and buying is generally more affordable and less expensive than renting. The Federal Reserve found that home owners accumulate 35x more net worth than renters over their lifetime. It’s still a very good idea to buy vs. rent.
Now if you live in your folks basement you are saving cash of course and yet at some point living at home does get old…for you and the folks. FOMO is the Fear Of Missing Out and no need for that. The market is still hot here and will remain a “sellers” market for some time IMO. I’ll write about that another time. Did you know that Denver real estate prices have been at all time highs for about 40 out of the last 45 years? When you hear prices are high you know yes that’s true, for 40 years! With knowledge like this you should with confidence get out in the market and buy that home to build your net worth.
While it’s difficult to buy, do it now if you can as around Broomfield it will only continue to be difficult. We have jobs and population growth that drives the demand side and a supply side that I forecast as being tight for a few more years. The awesome thing is that interest rates are still hovering around 4% and that creates home affordability. That $60k job at these rates gives buying power for around a $300k home and we can find that home.
When your ready to leave the nest or move from being a renter we can help. Total market knowledge to help you make wise decisions is what you should expect and I’m your Realtor for that task. Let’s make your plans for 2016 come out for that win-win.
Its a new breed of ranch homes reports the Wall St Journal recently and that is very true around Broomfield. The main floor ranch flow and open concept is far more popular than only to the + 55 crowd. The wide open spaces and very nice finishes all on one floor is a selling feature with wide appeal.
My typical ranch style clients are late 40’s and early 50’s who have enjoyed all the benefits of an active Colorado lifestyle. Running, climbing mountains, biking, skiing, sports and more! This can make those stairs in their current home not as fun as doing the other activity. So we help sell their 2-story and the split levels that were massively built in the Denver metro and get them into the ranch.
For the +55 crowd Anthem Ranch in Broomfield has several thousand complete homes and Toll Brothers is building out the last thousand or so sites on the Ranch side. Anthem Highlands is the non age restricted side which has 4 builders going full speed on homes and quite a few are the ranch type.
Take a look at this short video if you haven’t been to this part of Broomfield lately. https://youtu.be/DsvB2X-1ovo The model community is a great way to see the really well done designer touches/styles for ideas for your home. The prices from Toll start around $500k if you wanted walls and quickly go to above $800k. The Highlands side you can get into from the high $300’s.
Thinking about the long term opportunity of buying a ranch and the trend of demographics would tell us that the ranch is going to be very popular in Broomfield. The ranch homes of today have higher ceiling and are very bright inside unlike those 70’s homes you may have grown up in or remember. You can enjoy and live many years in this type of home even if you develop some age or sports related opportunity.
We would love to help you with your plans for main lifestyle living. My Broomfield office keeps us right in the thick of this fast growing and popular home choice. Total Market Knowledge and fun of course!
We all wish we could tell you what is going to happen but the reality is I can’t and nobody else could either. It depends on what side of a real estate deal you are on too. That is the better question to ask back when I’m asked how long is this market going to continue. Are you wanting to buy or to sell? A big shift in the kind of information to allow my client to make the more informed decision to act.
What we will tell you is that looking at population growth into Denver metro is the trend of 60,000 people into our area yearly. If 2.4 folks make a household then the supply of new builds to keep up would be 25,000 housing units. Builders are now around 15,000 units and at some point they will catch up. Supply and demand always works very well. Capital too without much government intervening.
With our economy around Broomfield and CO one of the best in the country some other cool things are going on. All the “kids” living back at home in the basement are now moving out and driving rental rates up. And those apartments with multiple peoples…friends living together to share cost, are now moving on to buying.
Now if you think through this market knowledge you would see that for sellers it should remain a great sellers market for another few years. A good time to sell those properties that in a normal situation would be a tougher sell. Property on busy roads, under power lines and such things.
Buyers use the same knowledge to get out there and be ready for fast actions to find and buy that home. The interest rates continue to be at record lows and that equals affordability power. Your 60k income with allow you to get that $300k home! The investors are still buying up so much of the -200 to 250ish inventory. Then buyers shopping 300k don’t fight so many cash investors.
Ok that’s the quick #’s analysis of how long will the market be like this question. But the emotional grab for a great market will be around for a very long time! Check out this video from this morning and in a minute you can see why to live in Broomfield CO.
When you are looing to make that real estate decision you need to work with an agent who first understands your needs. We want to help you and with Total Market Knowledge this will make the whole process much more fun and to reach your goal. Call me for that kind of service.
We have a great sellers market in that home prices are exceeding the hyper housing price boom of that period around 2007-2009 we had in Broomfield. Really all over the Denver metro area homes prices are such that few homes would be considered underwater. Meaning that home owners can sell their homes is almost every case and leave the close table with proceeds….cash. So much pent up demand to sell and buy the home to match the lifestyle situation that homeowners find themselves in today.
You know the question I hear and get asked most often is how long is this market going to last. History repeats itself, as we should know , and that history can be reviewed. We can make some pretty good decisions of what direction to head in when we look at facts and the history.
Why did people want to come to Broomfield and Denver in the recent past? Great weather and 300 days of blue sky was my reason. White Gold to play on in the winter? Biking/hiking/ climbing/ pot smoking maybe for you? Oh we don’t allow pot shops in Broomfield if that is why you are coming.
Our population growth inbound is about 60,000 people and that could mean about 24,000 housing units are needed to keep up with this growth. The new home builders at best are doing around 14,000 and will eventually get closer to demand. Don’t you love that supply and demand theory from 7th grade applied economics still works. Love capitalism!
So the history point is folks will continue to come to Broomfield and metro Denver for years more. Builder’s can’t keep up as skilled trades are either in ND fracking or back to their home country. This indicates it will remain a seller market for a least several more years.
Did you read this recent story…http://www.denverpost.com/business/ci_25930634/buyers-jump-inventory-and-prices-rise-denver-metro
Buyers you have to jump in now as pricing will keep going up until the next correction. When you want Total Market Knowledge for your decision making then reach out to me and we will help.
Real Estate is always local and about location, location, location. The state of the national market is about as useful as the average weather temp to decide what to wear outside in Broomfield. We have some unique things in the real estate market here. Low inventory, increasing home price and builders who can’t staff their work sites all make an impact.
Home prices continue to move at a nice appreciation rate. In 2012 the average price jumped +8.5% and 2013 was up another 9%. This was driven by the lack of inventory and we expect this to continue through 2014. No crystal ball stuff here but simply market forces. If inventory remains tight price trend is upwards. This can be that win time for the sellers who want to list their homes.
Interests rates continue to be very low as you look at the historical standards. The 70’s=9%, 80’s=13%, 90’s=8%, 00’s=6.5 and today you can get around 4.5% with a decent credit score. With a 60k income and a 4.5% rate that household can still afford a $275k home. That is the win for the buyers.
Sellers need to be ready to move quickly as they will get many offers to choose from and a darn good price too. In some cases we will get the sellers a 59 day from close rent back to ensure the seller will find that new home. Buyers likewise must offer a strong market price with few conditions asked from the seller.
The next blog will talk strategy for buyers and sellers in this market and under our Broomfield/Denver specific conditions. You can see that it is the win-win time. We can work with you to navigate through whichever side you are coming at Real Estate to achieve your goals.
What a great time to sell your home around Broomfield. Sellers can expect to sell quickly and at the top of the price bucket too. We have closed 4 homes already and all went under contract in days and above the list price. Sellers had multiple offers to choose from and that’s always a nice opportunity. A different opportunity for the buyers of course. Buyers you have to be ready to go look at homes the day they become active and make the decision while looking.
This is creating some challenges for the seller to list their home, as where will they live? Good challenge. The sellers moving away from Broomfield are in a sweet spot as they list-sell-move out of town. Today I have multiple sellers who want to make a lifestyle change of their home situation. This is often selling that multiple level or 2 story to have a main level floor plan. These sellers want to stay in Broomfield and those ranches plan are lacking in some non-negotiable items. We can find lots of one car garage ranch’s but that’s a tough sell. Master bath are tough to find in old Broomfield as well. I’ll write up on the new home builders as a solution soon.
Found a solution over in Whistlepig Estates if I can come up with $1.6 million. Temp housing with room for a couple of families…short term. 5 beds, 6 baths and 7 car garage to start. Laundry in the bedrooms too. Living areas all oversized and back stairs from the kitchen will make plenty of room and privacy for two families while seeking a home in Broomfield. Check it out here;
This home is off Aspen St north of 136th and before Dillon Rd. 10,000 horse arena and care taker home along with 5 more acres for just 1.0 mil more. No kidding this is a great estate type home. The other solution to where to live after selling your home and you can’t move into the replacement home is the Extended Stay hotels. Lots of first class new hotels at 36 and Church Ranch Road.
When you need help with your Real Estate questions we are here to help. Total Market Knowledge that advises you to make the best decision for your unique situation. It’s about achieving your goals first.
We have been reviewing agent production around the Broomfield and metro area for our year beginning meeting. There are over 17,000 licensed agents and 9735 agents had at least 1+ closing leaving about 45% with NO Closing! Which agent do you want to work with in selling your home or to help you through the buying process? It really does make a difference as we know you should want to reduce hassle and increase your happiness.
You can ask how many closing your agent had and for the last two years with 30 on average I’m in that top 9% of all agents. But maybe you want to check an agent out before meeting and that’s pretty easy these days. For the listing agents you look at the web for some basic things. How about photos to start? When I find a home with no photos I just move on and I bet you do too. A good Realtor can load 25 photos into the MLS along with a video show.
There is a great new Ranch home in Broomfield that has only exterior photos and that’s better than none. Does that give the seller the best service and maximum exposure to sell the home? Here is the outside I shot today for a client. http://www.youtube.com/watch?v=gYtzWHBAAAA&feature=share&list=UU-ABrhA8pWvgybeBwPC-lOQ
A few other quick checks in your selection of an agent to list in Broomfield is how are home showing set? How do buyers agent get those showing instructions and approval? A service that allows net access, phone access or can you call for that quick approval. There are some you call the agent who may not always be available to quickly set the showing. For sellers a text permission from the owner is simplest for many owners. Lots of ways and what is the easiest to get the buyers in should be the goal.
For the buyers agents here in Broomfield it’s simple questions to check market knowledge. Do they know West of Sheridan is Boulder Valley Schools and that East side is Adams 12? The buyers usually know what district they want and you should expect your agent to have this minimum of knowledge. Where is the church, Starbucks, dog parks, gym and liquor stores are common questions I get asked!
I work full time around Broomfield and the northern metro and love the excitement of connecting seller’s and buyers for that win-win transaction. When you are ready for that kind of service then give me a call and lets work out the path to get you to where you want to be.
The Wall Street Journal reported on Monday the 30th that home prices have zipped back into record territory in a handful of American cities. Denver metro area is one of the few, and our values are up more than 6% from their 2007 high. Broomfield area follows that trend too with supply and demand issues firming up prices.
We have talked about the metro low inventory situation here in that the 10 year averages of available property is around 25,000/month and we have not had inventory/property available above 7,000/month for over a year. Keep in mind that closed deals/property averages 5,000 a month and that has remained steady. Applied economics of supply and demand is clear that prices will increase.
This is good news for sellers and even those who bought at peak should be able to sell with a gain. Lifestyle changes have keep going despite the market prices and lots of sellers are more than ready to switch home lifestyles. I’m talking about for example new empty nesters and those who need a better mobility floor plan. Lot’s of pent up demand to move around Broomfield!
We have focused on helping people sell their multi level home to go into a main floor living lifestyle. Our greatest challenge is finding that ranch style home out side of Anthem Ranch which seems to have adequate inventory. The builders of these type of home have about a 6 month wait for a new home completion. They have been testing how high to price and $500k comes quickly around Broomfield.
Interest rates are somewhat of a concern as they have been at all-times lows. This rate helps with affordability and when the rates rise if could cool the upwards price trend. For my buyer clients it is time to buy and while inventory is low…you only need one property out of the 7,000 on the market.
As you need help with you Real Estate we are ready to advise with total market knowledge. Allowing you to make the best informed decision with confidence.
It’s good to be able to share one on my new listing from Longmont. This ranch style home built in 1963 has had only one owner and has decided its time to sell. Good news is they kept this ranch home up to date and well maintained.
Wow that a big link to see this little home! Here is the video link too.
We have been adding lots of ranches recently and helping sellers with traditional 2 story and tri-levels too. Our focus remains in getting those sellers in multi level homes into a main floor living lifestyle. In the listing of these ranches the sellers are going for the patio home lifestyle. It’s similar to mainfloor but in a patio home the exterior work is done by the HOA.
The market remains strong here in Colorado and finding a ranch floorplan can be a bit more work. As you seek to make the change we are ready to help make the process quite a bit smoother in the search. Looking forward to helping and let us know how we can help you reach your goals.