It seems these days like all people can talk about are homes prices. “Have we hit bottom?”….”How fast will they rebound?”…”If I wait a year to sell, will I make more money?”. Most often, what we find lost in the shuffle is any serious consideration of our still amazingly low mortgage interest rates. For many home buyers (and those wishing to sell and ‘move up’) the current interest rates need to be a major consideration in their decision-making process. Check out this graphic from the Keller Williams blog post, ‘How Rising Interest Rates Will Affect Affordability‘.
You can see clearly the impact of the interest rate vs. price on a monthly payment. In a recent post on InsideRealEstateNews.com, Denver real estate blogger John Rebchook makes the same case for this calculation. He provides another example:
A rule of thumb is that a home has to drop by 10 percent to make up a 1-percentage point increase in interest rates. In other words, if you want that $400,000 home at the same monthly payment at 6.25 percent as at 5.25 percent, the seller must shave $40,000 off the price and sell it for $360,000.
For even more eye-opening statistics, also see our recent blog post entitled ‘Is it REALLY a Good Time to Buy a Home in Denver?‘
If these numbers are making you reconsider putting off a home purchase or moving up to your dream home, we can help you do an analysis of your own specific situation. Call Wendy at (303) 808-0239 or contact us via email.
If you like to keep an eye on the performance of the Denver real estate market, you may be overwhelmed by the complex and sometimes conflicting data you hear about in local newspapers and television headlines. We have prepared this handy guide to help you interpret what you are reading and hearing, and specifically target the information you must have to stay informed and make smart real estate decisions.
One of the most important factors to look at when interpreting a particular statistic is how large the area is that is being reported on. For example, statistics based on the entire U.S. real estate market will clearly be valuable only on a very macro level. Examples of these types of statistics can be found in stories such as this and this. If you are looking to buy or sell, for example, a Capitol Hill condo between $100,000 and $200,000, these types of national real estate statistics probably will not help you determine the best timing, pricing or your chances of selling quickly.
When you hear about Denver metro area housing statistics, these will be much more relevant as overall trends for our market. Examples of Denver market statistics include this and this. Rather than trying to keep up with and sift through this local data, you can also let the top Denver Realtors at The Bibeau Group do the work for you and simply sign up to receive one of our regular updates such as:
However, these stats are still not going to be enough to make decisions about buying or selling a particular home. For this purpose, you will be best served getting in contact with your Denver CO Realtor to request detailed Denver neighborhood real estate statistics, such as those below.
• Average list or sold prices – based all homes for sale or sold in a given area
• Price per square foot – quick view of the prices in your area broken down by square foot, sometimes a more useful number than average price
• Number of active listings/inventory – your competition
• Sales pace (absorption rate) – how fast homes are selling
• Under contract –homes that will be closing in the near future
• Average days on market – how long is it taking homes to sell
• Expired listings – what didn’t sell and at which prices
• Average seller concessions – money that sellers are paying to buyers for closing costs and other fees that is not accounted for in sales price
• Distressed sales – how many short sales and bank owned properties are selling in your area
• Percentage of homes with particular upgrades/features (i.e. new kitchens, 3-car garages, other parking, remodeled, etc)
How can you access this type of detailed information? If you are seriously considering putting your home on the market in the next three months or less, or have a specific home in mind to purchase, call us and we will prepare a market analysis for you. Along with an estimate of value, you will receive a breakdown of statistics such as those above to help you make your decision. If you will not be buying or selling in the short term, but would still like to track trends in your neighborhood or an area you might like to purchase in the future, our Denver Metro Market Snapshots are a great tool. Once you sign up, you will receive a monthly, detailed analysis of your area via email.
Now that you know a little bit more about Denver Real Estate statistics, please follow up with any questions or comments!
The most recent Greenfield Neighborhood Real Estate Market Report has just been posted on our website. Highlights include lower average days on market than the previous quarter, and higher average sales prices and price per square foot.
Greenfield is a community of approximately 700 homes in southeast Aurora/Centennial, Colorado. The neighborhood includes a small area with townhomes, but is mostly single-family housing. There is a beautiful community pool and clubhouse, a playground, and a greenbelt winds through the community. It is also within the highly-regarded Cherry Creek School District.
This nicely updated ranch has been renovated top-to-bottom, including new windows, roof, siding with new energy efficient insulation, interior doors and hardware, lighting fixtures, flooring and more. The focal point of this wonderful home is a lovely kitchen which features granite countertops, decorative backsplash, new sink and faucet and ‘touchless’ steel appliances (no fingerprints!). Both bathrooms have been updated as well, including flooring, cabinets and fixtures.
The full finished basement is perfect for entertaining and enjoyment. On one end is a bar and pool table, and the other is a decked-out theater room with built-in surround sound, custom paint and a built-in entertainment center with plenty of storage for your media library. The basement also has a fourth, non-conforming bedroom, a three-quarter bathroom and laundry room. The large backyard includes a freshly-stained 24 x 12 deck, tree-house and a 10×12 insulated shed (electricity, phone line and cable are all installed and man-cave ready). In addition to the extra long, one-car attached garage, there is additional parking for a boat or RV on the side of the house. This home is conveniently located close to Cherry Creek State Park/Reservoir and the Parker Road and I-225 interchange for easy commuting.
When a statement almost becomes cliche, people naturally start to question its validity. I’m sure you’ve heard many of us in the real estate industry saying, “It’s a great time to buy!”. Sure, interest rates are low and prices are down in general…but many people in these economic times need more information in order to make that leap. At the Keller Williams Denver Tech Center monthly team meeting this week, our fantastic in-house lenders, Oxford Mortgage, presented two charts that lay out some pretty compelling evidence that it really IS a good time to be at least considering purchasing real estate.
First, a look at the impact of the amazingly low interest rates on the monthly payment for a $400,000 house. $500 is a huge amount, especially considering the ‘before’ rate of 6.27 really isn’t that bad in a historical context.
This lovely condo for sale in the heart of Capitol Hill offers historic character and charm, with original woodwork, crown molding and an exposed brick wall. The updated kitchen features slab granite and stainless steel appliances. A unique built-in buffet highlights the roomy dining room. There is a laundry area inside the unit, and deck in back overlooking a common backyard with garden area. This home also includes a 200-plus square foot storage area in which you can store your outdoor toys, extra furniture and more. Street parking permits are available from the city. This area boasts a Walk Score of 98 out of 100, making it a walker’s paradise in which daily errands do not require a car. Make this your home and walk to the Denver Art Museum, Denver Public Library, Tony’s Meat Market, Sports Authority, Dazzle, Le Central Restaurant, Core Power Yoga and so much more!
Check out the Slideshow Tour of this Downtown Denver Capitol Hill condo for sale for additional photos and info!
Here’s a quick look at the state of the real estate market. It also includes some helpful tips for selling your house in today’s market.
Here is a video from Keller Williams International that provides expert opinion and analysis on real estate trends across the nation. What are the happiest major metropolitan areas? What are distressed property sales and how can I take advantage of them?
Since this is the one question we are asked the most, we started thinking about the best way to answer this basic, yet fairly complex, question for our clients.
We now offer an easy way for you to see exactly what is going on where it matters to YOU — in your neighborhood. This Denver Home Value Report system taps into live Denver MLS market data (the same information we use to determine values for our buyers and sellers) and provides you with graphical reports of prices, inventory and trends, tailored to your neighborhood and area of town.
These Denver area neighborhood real estate reports answer many pressing questions, such as:
* What is the supply of homes for sale in my neighborhood?
* How fast are homes selling right now?
* How do actual selling prices compare to listing prices?
* How do these trends affect my home’s value?
We really can’t think of a reason NOT to sign up for these Denver Home Value Reports – we even started using them for our own neighborhoods! If you’d like to start receiving these complimentary reports, just sign up at our Denver Homes Values website (it takes less than a minute).
The Bibeau Group receives many requests from people living in the area or relocating to Denver to assist them in finding a home in the Cherry Creek School District. This district is known to offer high-quality and high-performing schools. It is located in the southeast suburbs of the Denver Metropolitan area. Here is a map of the Cherry Creek School District.
Because of this interest from home buyers, we have created a website specifically designed for buyers looking to purchase homes in the Cherry Creek School District. At our website, we have made it easy for you to search for exactly what you want. For example, you will find specific MLS searches to meet your needs, such as:
Additionally, we have collected a large number of informational links about the Cherry Creek School District such as school schedules, school locators, achievement profiles, lunch menus and much more. As your Cherry Creek School District specialists, The Bibeau Group would love to assist you find the perfect home in the perfect neighborhood with the perfect schools for your family.