Real Estate Trends of 2017 -The Big Buck Theory of Real Estate in 2017Posted on Feb 17, 2017
There has never been a better time to sell a Colorado home.
This phrase has been a mantra of REALTORS for the past decade. This article focuses on the reality of that statement, for clients seeking to sell, or purchase, a home this year.
According to the Consumer Confidence Index released last month, the economy is forecast to continue growing, at a steady rate, through this year. For those seeking to sell an existing home, in Colorado, what does this mean?
- According to this Article by Core Logic, a leading Real Estate analyst corporation, Real Estate, nationwide, is up 6 percent over last year (8.4 percent in Colorado), and projected to increase another 5.4 percent through July of this year, (5.2 percent in Colorado). These facts along with consumer confidence, with election positivism at the helm, are leading indicators, as to key reasons one should consider selling a home, in this bullish Real Estate Market.
- In Colorado, Team Lassen , in the top 1 percent of REALTORS nationwide, follows this information closely. They realize in Colorado, over 87.8 percent of homeowners, have over 20 percent equity in their homes, with 27.7 percent having greater than 50% equity, (Core Logic, RealtyTrac). These statistics, alone, create an opportunity, for current homeowners, to realize positive equity and utilize it, profitably, towards the sale of a home. While interest rates are on the slow rise, they still present historic lows. This means the time is ripe to sell an existing home, and invest the profit towards an up-sized or downsized home, whichever suits the clients interest. So truly, since before the market crash of 2008, there hasn't been a better time to sell a home.
- Sellers, it is possible to move a home very quickly in this market. Following the advice of your REALTOR, the home may move in days, or sometimes, hours. This means one must be prepared, and looking for a new home, ready to offer with all documents in hand, the moment a home is found. Be prepared to buy at the time of listing. If a new home is not found, prepare a contingency plan, such as renting, or staying with family, giving you time to search for the right home for your family. If these provisions are met, the transaction is smooth and less stressful.
- Do NOT wait for spring to sell a home. Winter statistics,(Redfin.com) show homes sell more quickly, and for higher price in the winter months, as there are fewer homes on the market. This means less competition for the client, and greater profitability.
- Prepare the home, according to recommendations of the REALTOR, and keep it "show" ready, at all times. Be flexible, and take the emotion away from the transaction. This is the time for excitement about a future home, not holding on to memories. It, truly, is the time to realize the profit of your hard work.
- Buyers, however, have certain expectations, in the Colorado market as well. Inventory, nationwide, remains at historic lows, (again creating a bullish scenario for sellers). Prices and concessions are rising, and buyers are expected, to maintain a "realistic" point of view, when searching for a home.
- Lender expectations also remain high. Buyers must maintain a clear relationship with a mortgage lender of choice. The bar is high, for FHA and Conventional buyers, to keep a credit score at 620, or higher. Team Lassen only recommends local lenders, with proven records, for their clientele.
- "Deal Seeking can be a Deal Breaker". Those with expectations of offering below 3 percent of list price, and asking for needed closing costs, must recognize, that with inventory at ridiculous lows, sellers will likely consider multiple offers, on every home. Be prepared to offer close to list price, if the home falls within your budget. Knowing your determined, monthly, mortgage maximum, will assist your lender and REALTOR to show you homes that fit within this range.
- Renters are losing big bucks. Renters pay, sometimes greater than 50 percent of their take-home, towards rent. The rates rose 3.8 percent last year, according to Zillow.com, and are projected to continue. With lending rates, again, at historic lows, renting, is viewed, as throwing away money, when a mortgage payment can be the same or less, for a "hard" investment property. With most mortgages only requiring 3.5 percent, of the price, for a down payment, this is a great time to purchase a home.
Real Estate remains strong, consumer confidence is trending up, mortgage rates remain at historic lows, lack of inventory exists nationwide, and a new President presents job growth positivity to the country. There, truly, has never been a better moment to buy and sell property, both in the nation, and in beautiful Colorado. It's time to contact us and realize your dream, in this Big Buck Theory of Real Estate in 2017.