Category Archives: Real Estate News

More Properties Are Equity-Rich Than Ever Before

We all know the local real estate market has appreciated A LOT over the last 2-3 years. Home appreciation goes a long ways to increasing our equity in the home. Another way to increase equity is to pay down the mortgage. In the past, during the economic downturn, millions were plagued with homes that were not worth what they paid for them. My husband and I were one of those with a rental property in Arizona. The rent did not cover the mortgage, even with a substantial down payment. That negative cash flow each month is not what we intended with an investment property. So, I said, “Let’s sell it”. Wrong. The home’s market value was $60,000 less than we had paid for it. So, we had to find a way to cover this difference between the mortgage and the rent received each month until the home either appreciated enough and we could sell it, or we could raise the rent enough to cover the mortgage. I know many people found themselves in the same situation with investment properties and primary residences. Fortunately for us, the home has now appreciated to much more than we paid for it. And, we were in a position to be able to handle the negative cash flow at the time.

It’s good news (see below) that this trend has begun to correct itself. Of course, in areas of economic growth, this is more likely to be the case.

I’m happy to say, living in Boulder County, that our primary residence has appreciated quite a bit. However, I’m also happy to say, we just paid off the mortgage!! Yeah! This feels like true financial freedom. The extra cash flow each month will be used wisely to expand our retirement portfolio. Paying off a home is a huge milestone for all homeowners.

Call me if you are interested in the market value of your home.

~Andria Allen

303.810.8375


More Properties Are Equity-Rich Than Ever Before

Source: Inman

The number of American properties that are equity-rich has reached an-all time high of 14.5 million, or according to new third quarter 2018 data from property data tracking firm Attom Data Solutions.

An equity-rich property is defined as one where the combined estimated amount of loans secured is 50 percent or less of the property’s market worth…Read More

 

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Will Garages Become Extinct?

Hmmm, no garage? I see so many folks who do have a garage and don’t put their car inside as they have other toys and stuff stored there. I know we can expect a lot of changes in transportation options now and in the near future. But, I still like my garage, even if it isn’t for my car. What do you think?

~Andria Allen
303.810.8375

The technology to power driverless vehicles is already here, and greater tests of autonomous vehicles are already hitting the roadways. And as autonomous vehicles are spread around and the popularity of car-share programs rise, housing analysts are already calling on the death of the garage in residential homes…Read More

Selling Tips, Fall Things to Do, and More

Hi everyone,

I thought you might enjoy a variety of articles for this post, so check out the links below.

~Andria Allen

303.810.8375


Fall Things to Do in Colorado

Isn’t fall the greatest time of year in Colorado? Whether you’re outside taking in the sights or…Read More


WK Real Estate Wins Best Real Estate Company & Best Customer Service

We are excited to announce that WK Real Estate has been awarded “Best Real Estate Company” and…Read More


4 Reasons We’re Not in a Bubble

Today’s housing market is vastly different than the bubble market of 12 years ago. Here are four key differences…Read More


4 Tips for a Fast Sale

If you’re selling your home, here are some ways to make a great first impression…Read More


 

The Fifth Wall of Your Home

One of the things I really enjoy about viewing homes, especially remodels or new construction, is finding out “what’s in, and what’s not.” I love this article about the 5th wall. Most of us ignore the ceilings in our home, except to paint them a basic, neutral color. Check out some of these examples! What fun! I love these ideas. You can update a room with some of these simple changes.

~Andria Allen

303.810.8375


Stunning Ceilings: The Latest Eye Candy for the Fifth Wall

Source: REALTOR® Magazine

Ceilings are too often the plain Jane element of a listing, but this element your listing’s structure can assume a starring role and transform a space with minimal effort and expense. Learn about your clients’ options, from millwork to lighting, different shapes, paint, and even wallpaper.

Ceilings have long reflected architectural, economic, and other influences of the day. In early American homes, low ceilings were favored to keep spaces warm, even if they made them feel a bit claustrophobic. During the Victorian era, high ceilings—at least nine feet high and often higher—were embellished, integrating handcrafted cast-plaster ornaments, stencilling, and other decorative treatments…Read More

Sellers Still Rule – For 2 Years, Says Zillow

I’ve spoken with many people who ask, “Do you think we are nearing another real estate bubble?” Well, if I knew, I’d sure be rich. I think the article below from Inman News may be helpful for those asking this question. I do see a “softening” of the local real estate market in some types of properties, price ranges and location. This does not mean a bubble. It means that the property may have sold last year for the initial asking price this year or may have sold within a matter of days to weeks. Now, I’m seeing some price reductions and a longer time on market before a contract is accepted. Again, this is very localized. If you are wondering about your home or property value, please give me a call. I’ll be happy to provide a current market analysis with no obligation.

~Andria Allen, 303.810.8375


Sellers Still Rule — For 2 Years, Says Zillow

Source: Inman News

It won’t be a buyer’s market until 2020, but home price growth has slowed in more than half of the nation’s largest metros, according to the study.

The industry may not see a buyer’s market until at least 2020, according to a majority of real estate economists surveyed by Zillow and Pulsenomics LLC. In the real estate technology company’s latest “2018 Q3 Zillow Home Price Expectations Survey,” more than 75 percent of approximately 100 economists surveyed predicted the market won’t favor buyers until 2020 at the earliest…Read More

Berthoud Is Now “On The Map”

We have all been noticing, and hearing about, the tight housing market, traffic, etc in the Denver area. Well, Berthoud is now officially “on the map” as well with a new professional golf course along with multiple housing options.

There are condos, townhomes, patio homes and larger single family homes in all price ranges available for sale along and around the new golf course in North West Berthoud. There will ultimately be shopping, coffee shops and restaurants included. It’s a lovely community. The area around Berthoud and Loveland has been changing rapidly along with the rest of Colorado, but this community is a large addition to the north Berthoud area. If you’d like more information about this community, give me a call at 303-810-8375.


TPC golf course puts Berthoud on the PGA map

Source: BizWest

BERTHOUD — Colorado — specifically, Berthoud — is now home to one of 34 Tournament Players Club (TPC)  golf courses in the U.S.  Members of the semi-private club are currently playing on the par-72 TPC Colorado course, and the general public will join them later this summer.

In the works for a decade-plus, the TPC Colorado course spreads out over more than 100 acres and sits on U.S. Highway 287 along the edge of Lonetree Reservoir.  The single 18-hole loop course is designed to delight and challenge both beginner and professional golfers with its unique Scottish links-style course…Read More

Will 2017 be a buyer’s market or a seller’s market?

Four economists weigh in on what the next year has in store for each group.

Key Takeaways

  • Next year will likely remain a seller’s market in most markets, but buyers might have their day in 2018 or 2019.

In some years and some markets, the answer is obvious — in 2016, Denver was a seller’s market, and San Francisco’s been one for quite a stretch.

But sometimes, it’s not so clear, and with mortgage rates on the up-and-up and robust plans for the economy ahead, all the plans for 2017 seem to be out the window.

Here’s what four economists had to say about whether 2017 is leaning toward buyers or sellers.

The consensus is?

Most economists we talked to said that overall, they thought 2017 was going to continue to be a strong market for sellers — for now.

“While I expect inventory levels to rise in 2017, it will likely remain a seller’s market,” said Matthew Gardner, chief economist at Windermere. “New construction will pick up steam in 2017, but not to levels that will provide sufficient support to a stretched housing market. Sellers will likely find that it will take a little longer to sell, but demand will still outstrip supply on the back of a job market that continues to tighten.”

Svenja Gudell, chief economist at Zillow, opined that “2017 is probably going to skew more toward the seller’s market — most markets will skew more toward seller’s markets, and even in the Midwest there are probably more seller’s markets than buyer’s markets compared to their own history.”

Geography does play a role, however, said Jonathan Smoke, chief economist at realtor.com.

“Ultimately, I do think it depends on where you are in the country — and not even at a market level,” Smoke said. “We’re seeing some clear patterns emerge within markets — one might be slowing down and cooling off where another part is really heating up. Real estate is so local that I would argue that a neighborhood view is really where you can see the differences and disparities and changes that are occurring around the country.”

Smoke noted that first-time buyers have been most successful in the Midwest this year, whereas markets in the West have seen the most significant price appreciation, making it difficult for first-time buyers to find success.

“We tend to have markets that are either above average in price expectation or sales expectation, and there aren’t many markets that have above-average expectations in both — supply constraint is driving the price movement in the strongest price markets, seller’s markets, but the buyer’s markets where buyers are getting a really affordable home, as a result, those markets are seeing a greater growth in sales,” Smoke explained.

“Either one is good for real estate,” he concluded.

Will we see a shift?

Gudell said that Zillow had just asked a panel of experts — more than 100 economists — “what they thought was going to happen to the tradeoff between buyers versus sellers.”

She said that among the economists surveyed, the most popular belief was that in 2018 or 2019, the bulk of markets will begin to shift from seller’s markets to buyer’s markets.

“In some markets, it’ll start to turn already in 2017, where demand isn’t quite so high and you get a little more inventory in and you have buyers better able to negotiate,” Gudell added.

What does the future buyer look like?

Mark Fleming, chief economist at First American, said that, “assuming an environment with modestly and predictably rising mortgage rates, it becomes a first-time homebuyer purchase-oriented marketplace.

“The question as a real estate agent is, how do you find and market to that first-time homebuyer?” asked Fleming. “Because that first-time homebuyer is going to be a young, technologically savvy millennial — and even more importantly, ethnically diverse. The demand for first-time housing is going to come from a different kind of individual than we’ve traditionally seen: Young, diverse, technologically savvy and much more likely to be college-educated.”

“The homeownership rate will grow, and they’ll be less white and a little younger,” said Gudell.

“Unfortunately, I think all of us will be spending more time in the car as more people have to look for more housing outside the city center as homes become much more expensive in the urban area,” she added. “During the recovery, it’s really picked up and the urban centers have appreciated much faster than the outerlying areas.”

“The potential is there for the market to have the most first-time buyers — certainly on an absolute volume basis, but also on a shared transactions perspective,” said Smoke.

“For the industry, this is the biggest shift we need to be able to contend with because it likely means elongated length of time that people are spending in that journey, especially the first-time buyer, but it potentially also means higher cancellation rates and lower conversion rates. You’re going to have more challenges with people contending with needing to qualify for and buy a home in the environment we’re in now than in the environment we were in the last two years.

“Highly qualified pent-up demand has been driving the market — now, it’s more organic activity at a time when interest rates are on the move-up,” he added. “The potential is there for an even bigger year than we’re forecasting, but it comes with challenges and that’s why we’re expecting only moderate growth instead of huge growth.”

“The thing about housing is that everybody needs it and you can’t outsource it,” said Fleming.