Buying or selling a home is a significant step in anyone's life, and it often involves a complex world of real estate terminology. If you catch us using real estate jargon, please slow us down and let's make sure you're familiar with the terms. To ensure both our home buying and home selling clients are well-informed, we've compiled a comprehensive glossary of common real estate terms that will be beneficial for everyone involved in the real estate process. Even the Federal Trade Commission has a glossary of terms they think you should know so as not to be confused during a real estate transaction. We support that sentiment whole-heartedly. You may even want to bookmark this page if you're new to homebuying or homeselling as we add to it and update it on a regular basis. Adjustable-Rate Mortgage: An adjustable-rate mortgage (ARM) that offers a fixed rate for an initial period, typically three to ten years, and then adjusts every six months, annually, or at another specified period, for the remainder of the term. Also known as a “hybrid loan.” Amortization [schedule]: This schedule is a very common way to break down the loan amount in the interest and the principal. Most people think that by making a minimum payment for their loan, they lower the principal amount. This depends on the duration of the loan. For example, in the beginning of the term for a long-term loan, most of the payment goes towards lowering the interest. As the term progresses, a greater percentage of the payment goes to the principal and a lower percentage goes to the interest. So, people who want to pay off their loan fast, make extra payments in the beginning of the term. Annual Percentage Rate (APR): The cost of Appraisal: A professional analysis used a loan or other financing as an annual rate. to estimate the value of the property. This The APR includes the interest rate, points, includes examples of sales of similar propbroker fees and certain other credit charges erties. a borrower is required to pay. Appraiser: A professional who conducts an Annuity: An amount paid yearly or at other analysis of the property, including examples regular intervals, often at a guaranteed of sales of similar properties in order to deminimum amount. Also, a type of insurance velop an estimate of the value of the proppolicy in which the policy holder makes erty. The analysis is called an “appraisal.” Appraisal: An assessment of a property's value, typically conducted by a licensed appraiser, to determine its fair market value. Lenders use appraisals for buyer financing, and sellers may use them to set an appropriate asking price. Appreciation: An increase in the market from the insurance company. value of a home due to changing market conditions and/or home improvements.  Bridge Loan: A short-term loan secured by the borrower’s current home (which is usually for sale) that allows the proceeds to be used for building or closing on a new house before the current home is sold. Also known as a “swing loan.” Buydown (buy down): A financial arrangement where the homebuyer or a third party pays additional upfront fees to the lender to reduce the interest rate on the mortgage for an initial period. This can make the property more attractive to buyers or help sellers negotiate a higher selling price. Certificate of Eligibility: A document issued by the U.S. Department of Veterans Affairs (VA) certifying a veteran’s eligibility for a VA-guaranteed mortgage loan. Also known as a COE. Clear Title: Ownership that is free of liens, defects, or other legal encumbrances. Clear to Close: perhaps the best three words to hear in a real estate transaction. It means that a buyer's financing has finally been approved, there are no more conditions or hurdles and the only thing left to do is to close on the property. Clear to close can be music to the ears of all parties involved. Closing: The process of completing a financial transaction. For mortgage loans, the process of signing mortgage documents, disbursing funds, and, if applicable, transferring ownership of the property. In some areas, closing is referred to as “escrow,” but not as commonly in Colorado. See also “Settlement.” Closing Agent (Closer): The person or entity that coordinates the various closing activities, including the preparation and recordation of closing documents and the disbursement of funds. (May be referred to as an escrow agent title closer in some areas.) In Colorado, closing is conducted by title companies. Closing Costs: Fees and expenses associated with the purchase or sale of a home, paid at the closing (settlement) of the real estate transaction. These costs can vary and may be negotiated between buyers and sellers. Closing Date: The date on which the sale of a property is to be finalized and a loan transaction completed. Often, a real estate sales professional coordinates the setting of this date with the buyer, the seller, the closing agent, and the lender. Closing Statement: See “Settlement Statement.” Co-borrower: Any borrower other than the first borrower whose name appears on the application and mortgage note, even when that person owns the property jointly with the first borrower and shares liability for the note. Comparables: An abbreviation for “comparable properties,” which are used as a comparison in determining the current value of a property that is being appraised. Concession: Something given up or agreed to in negotiating the sale of a house. For example, the sellers may agree to help pay for closing costs. Contingency: A condition or requirement in a real estate contract that must be met for the contract to be binding. Common contingencies include home inspections, financing, and the sale of the buyer's current home. Sellers should be aware of these contingencies when reviewing offers. Conventional Mortgage: A mortgage loan that is not insured or guaranteed by the federal government or one of its agencies, such as the Federal Housing Administration (FHA), the U.S. Department of Veterans Affairs (VA), or the Rural Housing Service (RHS). Counteroffer (Counterproposal): An offer made in response to a previous offer. For example, after the buyer presents their first offer, the seller may make a counter-offer with a slightly higher sale price. Debt-to-Income Ratio: The percentage of gross monthly income that goes toward paying for your monthly housing expense, alimony, child support, car payments and other installment debts, and payments on revolving or open-ended accounts, such as credit cards. Deed of Trust: A legal document in which the borrower transfers the title to a third party (trustee) to hold as security for the lender. When the loan is paid in full, the trustee transfers title back to the borrower. If the borrower defaults on the loan the trustee will sell the property and pay the lender the mortgage debt.  Down Payment: The initial payment made by the homebuyer toward the purchase of a home. Buyers must consider their down payment capability, and sellers should factor it in when evaluating offers. Earnest Money: A deposit made by the homebuyer to demonstrate their seriousness and commitment to purchasing the property. Sellers should consider earnest money as a sign of buyer commitment and financial readiness. Encroachment: The intrusion onto another’s property without right or permission. Encumbrance: Any claim on a property, such as a lien, mortgage or easement. Typically a term used when speaking of title. Equity: The difference between the current market value of a property and the outstanding balance of the mortgage on the property. Sellers should be aware of their equity when determining their asking price. Escrow: An account held by a third party (often an escrow company) that holds funds and documents related to a real estate transaction until all conditions of the sale are met. Sellers should cooperate with the escrow process to ensure a smooth transaction. Escrow Account: An account that a mortgage servicer establishes on behalf of a borrower to pay taxes, insurance premiums, or other charges when they are due. Sometimes referred to as an “impound” or “reserve” account.  Exclusive Right-to-Sell Listing: (listing contract) The traditional kind of listing agreement under which the property owner appoints a real estate broker (known as the listing broker) as exclusive agent to sell the property on the owner’s stated terms, and agrees to pay the listing broker a commission when the property is sold, regardless of whether the buyer is found by the broker, the owner or another broker. This is the kind of listing agreement that is commonly used by a listing broker to provide the traditional full range of real estate brokerage services. If a second real estate broker (known as a selling broker) finds the buyer for the property, then some commission will be paid to the selling broker. Exclusive Right-to-Buy Contract: The Exclusive Right-to-Buy Agreement obligates the buyer to pay the broker if the selling broker cannot be compensated from some other source. The obligation for the seller to pay the broker a commission is a provision which benefits the buyer and is an agreement between the buyer and the seller. Fair Market Value: The price at which property would be transferred between a willing buyer and willing seller, each of whom has a reasonable knowledge of all pertinent facts and is not under any compulsion to buy or sell. Fannie Mae: A New York stock exchange company. It is a public company that operates under a federal charter and is the nation’s largest source of financing for home mortgages. Fannie Mae does not lend money directly to consumers, but instead works to ensure that mortgage funds are available and affordable, by purchasing mortgage loans from institutions that lend directly to consumers.  Federal Housing Administration (FHA): An agency within the U.S. Department of Housing and Urban Development (HUD) that insures mortgages and loans made by private lenders. FHA-Insured Loan: A loan that is insured by the Federal Housing Administration (FHA) of the U.S. Department of Housing and Urban Development (HUD). First Mortgage: A mortgage that is the primary lien against a property. See also Second Mortgage to understand the relationship. First-Time Home Buyer: A person with no ownership interest in a principal residence during the three-year period preceding the purchase of the security property. Fixed-Rate Mortgage: A mortgage with an interest rate that does not change during the entire term of the loan. Foreclosure: A legal action that ends all ownership rights in a home when the homebuyer fails to make the mortgage payments or is otherwise in default under the terms of the mortgage.  General Contractor: A person who oversees a home improvement or construction project and handles various aspects such as scheduling workers and ordering supplies. Gift Letter: A letter that a family member writes verifying that s/he has given you a certain amount of money as a gift and that you don’t have to repay it. You can use this money towards a portion of your down payment with some mortgages. Good-Faith Estimate: A form required by the Real Estate Settlement Procedures Act (RESPA) that discloses an estimate of the amount or range of charges, for specific settlement services the borrower is likely to incur in connection with the mortgage transaction. Government-backed Mortgage: A mortgage loan that is insured or guaranteed by a federal government entity such as the Federal Housing Administration (FHA), the U.S. Department of Veterans Affairs (VA), or rarely, the Rural Housing Service (RHS).  Home Inspection: A professional inspection of a home to determine the condition of the property. The inspection should include an evaluation of the plumbing, heating and cooling systems, roof, wiring, foundation and pest infestation. Homeowner’s Insurance: A policy that protects you and the lender from fire or flood, which damages the structure of the house; a liability, such as an injury to a visitor to your home; or damage to your personal property, such as your furniture, clothes or appliances Homeowner’s Warranty (HOW): Insurance offered by a seller that covers certain home repairs and fixtures for a specified period of time. Homeowners’ Association: An organization of homeowners residing within a particular area whose principal purpose is to ensure the provision and maintenance of community facilities and services for the common benefit of the residents.  HELOC (Home Equity Line of Credit): A type of revolving loan, that enables a home owner to obtain multiple advances of the loan proceeds at his or her own discretion, up to an amount that represents a specified percentage of the borrower’s equity in the property.  Income Property: Real estate developed or purchased to produce income, such as a rental unit.  Inflation: An increase in prices. See also Bidenomics or Jimmy Carter. Interest Rate: The percentage of the loan amount that the lender charges for borrowing the money. Sellers may need to consider how current interest rates can affect the attractiveness of their property to potential buyers. Lien: A claim or charge on property for payment of a debt. With a mortgage, the lender has the right to take the title to your property if you don’t make the mortgage payments. Loan Origination: The process by which a loan is made, which may include taking a loan application, processing and underwriting the application, and closing the loan. Loan Origination Fees: Fees paid to your mortgage lender or broker for processing the mortgage application. This fee is usually in the form of points. One point equals one percent of the mortgage amount. Lock-In Rate: A written agreement guaranteeing a specific mortgage interest rate for a certain amount of time.  Loan-to-Value Ratio (LTV): The ratio of the mortgage amount to the appraised value or purchase price of the property. A higher LTV ratio may require mortgage insurance and could affect a buyer's ability to secure financing. Market Value: The current value of your home based on what a purchaser would pay. An appraisal is sometimes used to determine market value. Multiple Listing Service (MLS): A clearinghouse through which member real estate brokerage firms regularly and systematically exchange information on listings of real estate properties and share commissions with members who locate purchasers. The MLS for an area is usually operated by the local, private real estate association as a joint venture among its members designed to foster real estate brokerage services.  Mortgage: A loan used to finance the purchase of real estate. Sellers may need to work with buyers to ensure the mortgage process proceeds smoothly. Offer: A formal bid from the home buyer to the home seller to purchase a home. Open House: When the seller’s real estate agent opens the seller’s house to the public. You don’t need a real estate agent to attend an open house.  Owner [Seller] Financing: A transaction in which the property seller provides all or part of the financing for the buyer’s purchase of the property. Owner-Occupied Property: A property that serves as the borrower’s primary residence. Personal Property: Any property that is not real [estate] property. Usually refers to belongings of a seller that aren't sold with the property or house. PITI: An acronym for the four primary components of a monthly mortgage payment: principle, interest, taxes, and insurance (PITI). Points: In the simplest terms,  a point is one percent of the amount of the mortgage loan. For example, if a loan is made for $50,000, one point equals $500. Fees paid to the lender at closing to reduce the interest rate on the mortgage. Sellers should be aware of how points can influence buyers' offers and closing costs. Points, can also known as discount points, used to lower your interest rate in exchange paying for an upfront fee. Lender credits lower your closing costs in exchange for accepting a higher interest rate. These terms can sometimes be used to mean other things. “Points” is a term that mortgage lenders have used for many years. If you hear this term, be sure to ask your lender what they mean when they say "points." Power of Attorney: A legal document that authorizes another person to act on one’s behalf. A power of attorney can grant complete authority or can be limited to certain acts and/or certain periods of time. Pre-Approval: A process by which a lender provides a prospective borrower with an indication of how much money he or she will be eligible to borrow when applying for a mortgage loan. This process typically includes a review of the applicant’s credit history and may involve the review and verification of income and assets to close. Sellers may prefer offers from pre-approved buyers as they are more likely to secure financing. Confusing as it can be, this term is not to be confused or used interchangeably with pre-qualified or pre-qualification or the slang, pre-qual letter. These are disctinctly different terms. Pre-Approval Letter: A letter from a mortgage lender indicating that you qualify for a mortgage of a specific amount. It also shows a home seller that you’re a serious buyer. Pre-Qualification: A preliminary assessment by a lender of the amount it will lend to a potential home buyer. The process of determining how much money a prospective home buyer may be eligible to borrow before he or she applies for a loan. Pre-qualification is one of the first steps in obtaining pre-approval. Pre-Qualification Letter: A letter from a mortgage lender that states that you’re pre-qualified to buy a home, but does not commit the lender to a particular mortgage amount.  Principal: The initial amount borrowed in a mortgage loan, excluding interest. Sellers should understand how the principal balance affects their proceeds from the sale. Purchase Agreement/Offer: A document that details the price and conditions for a transaction. In connection with the sale of a residential property, the agreement typically would include: information about the property to be sold, sale price, down payment, earnest money deposit, financing, closing date, occupancy date, length of time the offer is valid, and any special contingencies.  Radon: A toxic gas found in the soil beneath a house that can contribute to cancer and other illnesses.  Real Property: Land and anything permanently affixed thereto — including buildings, fences, trees, and minerals. In other words, real estate. Recording: The filing of a lien or other legal documents in the appropriate public record. Refinance: Getting a new mortgage with all or some portion of the proceeds used to pay off the prior mortgage. Right of First Refusal: A provision in an agreement that requires the owner of a property to give another party the first opportunity to purchase or lease the property before he or she offers it for sale or lease to others.  Second Mortgage: A mortgage that has a lien position subordinate to the first mortgage. Secondary Mortgage Market: The market in which mortgage loan and mortgage-backed securities are bought and sold.  Seller-Rentback: A transaction in which the buyer leases the property back to the seller for a specified period of time. Settlement: The process of completing a loan transaction at which time the mortgage documents are signed and then recorded, funds are disbursed, and the property is transferred to the buyer (if applicable). Also called closing or escrow in different areas. In Colorado, settlement is referred to as closing. See also “Closing” Settlement Statement: A document that lists all closing costs on a consumer mortgage transaction. Sweat Equity: A borrower’s contribution to the down payment for the purchase of a property in the form of labor or services rather than cash.  Survey: A precise measurement of a property by a licensed surveyor, showing legal boundaries of a property and the dimensions and location of improvements. There are many different types of surveys you could encounter in a real estate transaction. We recommend visiting our survey category for additional information about surveys here on our blog. Title: The right to, and the ownership of, property. A title or deed is sometimes used as proof of ownership of land. Title Insurance: An insurance policy that protects both buyers and sellers against any legal issues or disputes regarding the property's title, such as undisclosed liens or ownership claims. Transfer Tax: State or local tax payable when title to property passes from one owner to another.  Truth-In-Lending Act (TILA): A federal law that requires disclosure of a truth-in-lending statement for consumer credit. The statement includes a summary of the total cost of credit, such as the annual percentage rate (APR) and other specifics of the credit. Underwriting: The process by which a lender evaluates a buyer's financial information, credit history, and the property being purchased to determine whether to approve or deny a mortgage application. Sellers should be prepared for this step in the buying process. VA Loan: A mortgage loan that is guaranteed by the U.S. Department of Veterans Affairs (VA). Walk-Through: A common clause in a sales contract that allows the buyer to examine the property being purchased at a specified time immediately before the closing, for example, within the 24 hours before closing. Whether you're a buyer or a seller, understanding these common real estate terms will empower you to make informed decisions and navigate the real estate market with confidence. Be sure to consult with your real estate agent or attorney to ensure you fully comprehend the implications of these terms on your specific transaction. If there are others we should add, drop us a comment below.

Are you considering buying a home this year? With a solid game plan and approach to buying a home, you can plan to win in 2024. Of course you’ll need to prepare. And hey, you’re off to a great start by reading this blog—we don’t want you to fall short of your goals either. But, like with just about anything, being prepared will have you ahead of the competition—and, if rates fall significantly, there will surely be competition. A persistent shortage of homes for sale will still likely cause challenges for buyers into 2024, leaving sellers in a favorable position. However, with interest rates falling, of late, could it be the year that buyers finally have the advantage?  If you're considering house hunting this spring, make sure to allocate enough time to find the right property and bring your best negotiation skills to the table. Until then, here’s a breakdown of what's happening in today’s market and how you can prepare. Home Prices Have Stabilized. Will They Begin to Climb? The real estate landscape is currently characterized by stable home prices. After a three-year-long surge, prices have mostly held steady this past year, with some regions experiencing slight decreases and others seeing modest increases. As of November 9th, the national median price for existing homes was $430,300, according to the National Association of Realtors (NAR). Looking ahead, NAR predicts a 0.9% increase in the median price for existing homes in 2024 compared to the previous year. Fannie Mae was among the most optimistic predicting a 2.4% increase, while realtor.com® predicts a 1.7% decrease in median home value in 2024. Here in Colorado, the median home value was significantly higher than the national average at over $612,000. That means you’ll really need to save for your down payment.  The NAR recently reported a discrepancy in cash (down payment) availability between first-time and repeat buyers. First-time buyers typically make a median down payment of 8%, while repeat buyers put down a higher median of 19%. Interest Rates Remain Relatively High  In 2024, it’s high time to acknowledge that historically low mortgage rates are a thing of the past, with rates rising to a 30-year peak in October 2023. However, beginning in November rates began a six-week decline, then stabilized at the end of the year. Currently, rates are holding well below 7% and some experts think we could see rates decrease into the high 5s at some point this year, perhaps as early as Q2.  NAR predicts the 30-year fixed-rate mortgage to average 6.3% in 2024; realtor.com® projects 6.5%. This likely will improve housing affordability and entice more home buyers to return to the market, according to NAR’s Chief Economist Lawrence Yun.  The Federal Reserve's efforts to curb inflation have contributed to this trend, with 3 interest rate decreases planned for 2024, if patterns hold (always a big if). While rates may impact initial mortgage costs, it's worth considering the option to refinance if rates decrease in the future. What Can You Afford? NAR’s data shows that rates near 6.6% enable the average American family to afford a median-priced home without devoting more than 30% of their income to housing, the threshold commonly used to measure affordability. We can recommend our trusted lender partners so you can quickly and accurately determine what’s truly affordable for your unique scenario.  Competing for That Primo House According to October 2023 data from NAR, over 25% of homes are still selling above their listed price, with 28% of homes achieving this in that month. The median time homes spent on the market was 23 days, and on average, each property received 2.5 offers, indicating a persistently competitive market. NAR’s Yun emphasized the significant impact of limited housing inventory on satisfying housing demand, stating, "Multiple offers, of course, yield only one winner, with the rest left to continue their search." On the other hand, cash transactions continue to play a notable role in the marketplace, with nearly one in three sales (29%) completed in cash, up slightly from the 26% reported in 2022. So, if you have cash, you’re in a better position than most of the market. However, financing is only one aspect of competing for a home and there are many other ways to stand out.  MORE >>> Offer Strategies that Win Flexibility and Compromise As a homebuyer, there are aspects of the real estate market you simply can’t control. For instance, you can't control inventory or when someone decides to put their house up for sale. What you do have control over is your own outlook and readiness. Consider that finding the absolute perfect home should remain your BHAG (big, hairy, audacious goal) but that a "good enough for now" home can kickstart your homeownership journey sooner and may keep you from having the market pass you by. This rings particularly true for first-time buyers eager to start building equity. It’s no secret that real estate presents opportunity as a very solid investment long term, and often in the short term. Putting off buying six months or a year might mean losing out on tens of thousands of dollars. That said, if you find yourself constrained by your options consider broadening the scope of your search to include smaller homes, additional areas, or even different types of housing options such as condos or townhouses, as a suitable compromise. Perhaps you can make do with fewer bedrooms or bathrooms or adapt to a slightly outdated interior.  And, while I’m not your dad, my best fatherly advice is: keep your spirits up—even if it means tolerating less square footage or putting up with quirky linoleum floors for a bit, you'll end up with equity to remodel or sell down the line. How to Prepare: Tips for Winning in 2024 No matter which direction rates go, it’s always great to be prepared for opportunity. If you’re one who likes to prepare (and we highly recommend you do) here are some tips to prepare for and compete in the housing market in 2024 (adapted from a recent article from NerdWallet): Get your finances in order: Review your budget, down payment capabilities, and credit score. Consider consulting with a loan officer for guidance on improving your financial profile. Understand mortgage options: Explore various mortgage options beyond the misconception of needing a 20% down payment. FHA and VA mortgages, as well as down payment assistance programs, offer alternatives. Shop mortgage lenders: Compare offerings from different lenders, considering not only interest rates but also the annual percentage rate (APR) and overall loan costs. Hire a good real estate agent: Choose a buyer's agent with market expertise who can guide you through the process, provide referrals, and navigate current market conditions. Make your best offer and negotiate wisely: Beyond monetary considerations, be flexible with terms such as the closing date. Negotiate wisely and only make concessions that align with your financial capacity. Don't give up: Persistence can pay off in a competitive market. Stay optimistic, be prepared to act swiftly, and seize opportunities when they arise. Bottom Line Don’t get down about the sky-high costs and the scarcity of options, especially if you're a first-time buyer who's been holding off on the house hunt. With today’s market conditions you may experience challenges.  Our advice? Consider the long game. Waiting around for lower rates might end up with you facing even higher prices and tougher competition. So, if your heart is set on buying, focus on finding a place that checks as many of your boxes as possible within your current budget, all the while remembering that buying real estate often means compromising. I always remind my homebuyer clients, “even the buyers at $2.3M may have to compromise on that infinity edge pool if they can only afford to get an in-ground pool when everything else is perfect.” Setting your sights on perfection can often lead to unnecessary disappointment. Homebuyers often expect that they’ll hit a home run with their very first first at-bat when making a purchase. Sometimes, I gently remind them that nothing conquers inflation like real estate, so being in the game is important, even if you start by just getting on base. In any case, staying informed and adapting your approach will be key to success in this ever-evolving real estate landscape… …and we’re here to help. You just have to ask.

  In this video, Matt Thomas & Brian Dewald discuss how rising mortgage rates, multiple offers and increasing inventory are impacting the real estate market. They also talk about the success of Brian's cash program for buyers and the potential easing off of selling mortgage bonds by the Federal Reserve which could bring a much needed reduction in rates. They emphasize the importance of being prepared and taking action in the current rate environment. And, despite the recent uptick in rates, home sales multiple offers are still happening. Mortgage Lender Brian Dewald and I discuss the latest economic news and how that's impacting the local housing market. 🏡   Mortgage Minute is a real-time discussion of current new stories impacting real estate and mortgage lending in Denver, Colorado. Hosts Matt Thomas and Brian Dewald share insights that go beyond just interest rates. 📈 Discover the latest updates on mortgage rates and the exciting news that could impact your decision to buy a home. Matt and Brian focus on providing valuable education about the home buying process, emphasizing data over drama and facts over feelings.   💡 Don't miss out on the valuable tips and strategies shared in this episode! If you're considering buying a home or looking for ways to optimize your mortgage, this is a must-watch. Hit play and embark on your journey to homeownership with Mortgage Minute! 🔑✨   You're encouraged to subscribe to our channel, especially if you would like to receive notifications on all of our informative videos.   Subscribe to Our YouTube Channel

With a full first quarter behind us, we’re seeing improvements over last year, one of the slowest moving real estate markets in years. And, as always, we'll take a look at where the market’s been, where it’s at, and where it appears to be headed for the rest of 2024. Where We’re At | Local Housing Market (Denver & The Front Range) Local Market Insights: Easter Seasonality and Inventory Trends As Easter approached, a predictable softening in buyer engagement was observed, mirroring patterns from previous years. With families opting to spend time together, showings dipped slightly, impacting the number of homes going under contract. This seasonal adjustment serves as a reminder of the importance of aligning strategies with the natural ebb and flow of buyer behavior. Inventory Insights: Expanding Choices On a positive note, the landscape of available listings is widening, providing an influx of options for eager buyers awaiting their perfect match in the market. This expansion signals a healthier market environment that caters to diverse preferences and needs. Both new listings and pending transactions have seen adjustments, reflecting a delicate balance between homes entering the market and those securing contracts. Navigating these shifting tides effectively requires staying agile and well-informed. Market Momentum: Showings and Sales Trends Despite a decrease in showings, the quality of buyer interest remained notably high, with those venturing out during the holiday period demonstrating a genuine intent to purchase. This emphasizes the importance of prioritizing engagement quality over sheer quantity. Strategic pricing of listings continues to be pivotal, influencing the speed at which homes are snapped up and the adjustments sellers are willing to make to attract the right buyer. Key Market Metrics: Median Close Price: $595,000, marking a 3.5% increase month-over-month. Supply in Months: 1.67, down by 13/0.47 month-over-month. Median Days in MLS: 11 days, down by 52% month-over-month. Pending Sales: Up nearly 32% month-over-month. New Listings: Up over 16% month-over-month. Total Showings: 13,378, showing a slight decline of 12.1% week-over-week. However, it's important to note that achieving market balance, typically indicated by a six-month supply, would require a significant increase in total listings. This suggests that the market is currently operating below the desired level. Additionally, according to a recent study by Corelogic, Denver ranked in the top 10 (#9) for home price changes in February, experiencing a 3.2% increase compared to 2023. Miami saw the highest gain at 10.2% year over year, highlighting dynamic shifts in housing markets across different regions. Where We’ve Been | National Housing Home prices nationwide, including distressed sales, increased year over year by 5.5% in February 2024 compared with February 2023. Chief Economist for CoreLogic, Dr. Selma Hepp, said: “Home price growth pivoted in February, as the impact of the January 2023 Home Price Index bottom finally faded. As a result, the U.S. should begin to see slowing annual home price gains moving forward. Nevertheless, with a 0.7% increase from January to February 2024, which is almost double the monthly increase recorded before the pandemic, spring home price gains are already off to a strong start despite continued mortgage rate volatility. That said, more inventory finally coming to market will likely translate to more options for buyers and fewer bidding wars, which typically keeps outsized price growth in check. Still, despite affordability challenges, homebuyer demand appears to favor already expensive, coastal markets with a limited availability of properties for sale.”  Where We’re Headed | Spring Housing Market Forecast Altos data shows we only need stability in mortgage rates for a rebound in home sales. You may know that home sales have been slowish for the past 18 months or so. As mortgage rates began rising starting in 2022, payment affordability got dramatically worse and homebuyer demand slowed. At the same time, seller volume dried up. But now sellers are coming back into the market. New listing volume last week was 18% more than a year ago. Total available inventory is gradually climbing about 1% per week — last year it was still declining in April. As we roll into the second quarter, we should have accelerating inventory growth each week. The Economy’s Impact on the National Real Estate Market In a recent assessment of the job market and its implications for the real estate sector, Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), offers valuable insights into the current economic landscape and its potential impact on housing trends: "The job market continues to exhibit solid strength, with 303,000 net payroll job additions in March. That brings total job creation to 5.8 million from the pre-COVID peak four years ago. The construction industry added 39,000 net new jobs, up by 600,000 from four years ago. Therefore, more housing supply is on the way in future months. More jobs mean more potential housing demand in the future. But more jobs also mean the interest rate decline could stall as the Federal Reserve re-evaluates inflation risk. Wage growth was 4.1% in March after two straight years of above 5% gains. This decelerating wage growth can lessen consumer price inflation. Overall, mortgage rates are likely to remain unchanged, with no further measurable declines in upcoming months. High budget deficits will also hinder interest rates from falling as government borrowing crowds out mortgage funding availability. Even so, multiple offers on properties are still happening. Homeowners with record-high housing wealth should understand the current favorable environment for putting homes on the market." Economist Who’s Buying? | Millennials Take the Lead in Home Buying The housing market is experiencing a significant shift in demographics, with millennials emerging as the largest group of home buyers, according to the latest report from the National Association of Realtors® (NAR). The 2024 Home Buyers and Sellers Generational Trends report reveals that millennials, spanning both younger (ages 25 to 33) and older (ages 34 to 43) segments, now constitute a combined 38% of the home buying market, up from 28% last year. In contrast, baby boomers' share has decreased from 39% to 31%, relinquishing their position as the largest demographic of home buyers. Dr. Jessica Lautz, NAR deputy chief economist, attributes this shift to younger millennials entering homeownership for the first time and older millennials transitioning to larger homes to accommodate their changing needs. The report also highlights a rise in first-time buyers across generations, with younger millennials leading the charge. Additionally, the emergence of Generation Z (ages 18-24) in the housing market demonstrates diversity and independence, with a notable proportion of single female purchasers. Despite these changing buyer trends, baby boomers remain the largest home-selling generation, accounting for 45% of all sellers in 2023. The report also reveals variations in homeownership tenure among different generations, with older millennials typically selling their homes after just six years, compared to Gen X, baby boomers, and the Silent Generation, who typically stay in their homes for 15 years. The enduring appeal of homeownership is evident, with 82% of all buyers considering it a good financial investment, particularly younger millennials, 86% of whom share this positive outlook. Regardless of generation, the report indicates that buyers and sellers alike value the expertise and guidance provided by real estate agents, highlighting the essential role they play in realizing homeownership dreams. NAR President Kevin Sears emphasizes the universal value of owning a home, serving as a cornerstone for personal prosperity and community development. As market dynamics evolve, the reliance on real estate agents for expertise and guidance remains steadfast, underscoring the invaluable service they provide in facilitating homeownership. Bottom Line The local housing market on the Denver & Front Range experienced seasonal fluctuations as Easter approached, with a slight dip in buyer engagement. However, this was coupled with a positive expansion in inventory, offering more choices for buyers. Despite a decrease in showings, the quality of buyer interest remained high, emphasizing the importance of focusing on engagement quality over quantity. Key market metrics show promising trends, including a median close price increase and a significant uptick in pending sales and new listings. And now it’s also clear just exactly who is buying up the new inventory in 2024.

  It's springtime and that means competition for homebuyers in the real estate market has picked up. If you're not cash rich, you may find yourself unable to compete for the house you want. Brian Dewald of Maverick Lending Solutions has a product that can help homebuyers in today's market in one of 3 major ways:    1) It can help save a deal that another lender can't complete  2) It can put you in a position to buy with all cash to beat competitors 3) It can help you buy your dream home before you have to sell so you can have a roof over your head and still be able to buy and sell a home.    

Where were you Tuesday morning? Wasn't that snow squall something? We woke up with no snow on the ground and no flurries in the air. By 10:00 AM most of the Metro Area was enveloped in a fast-moving snow squall that made it look like a February Christmas in less than 2 hours. The snow stuck to the streets and people were caught in whiteout conditions. Yet by noon in many areas, blue skies were peaking out again.   Let me tell you how that little snow squall saved an opportunity for some homebuyers I worked with earlier this week.   This past Monday, I had the opportunity to work with buyers in from out of town. Often, when a buyer comes into town we have a compressed amount of time to see properties. To my surprise, we were able to find twelve homes in their price range so we squeezed that into a long afternoon. Normally, I recommend not seeing more than 6 to 8 properties at any one time. It allows for processing what you've seen and not have the homes blend into one in your mind. In this case, however, it made sense to see the best of what was available since they had a plane to catch the following morning.   Weekends are typically the busiest for showings. More buyers than not are most often available on the weekends. Showing homes on a Monday, when the market is heating up, can sometimes lead to missed opportunities when the best properties begin to go under contract after a good weekend of showings. This past Monday was no exception, though it was still February. By the time we began our tour of those twelve properties, I had already received phone calls from listing agents saying their sellers had begun considering or even accepting offers. At 12:30 PM that had already occurred on two. Later that afternoon I received another couple of calls from agents saying we could show their listings but they too were accepting an offer and going under contract. By the time our afternoon ended, we were able to see 8 of the initial 12; the other four were under contract.   My buyers loved two of the eight we saw. They wanted to sleep on their decision, which is always a good idea, when you have the time. They also had a flight to catch Tuesday morning which took off just before the snow squall the hit the Denver Area. By the time they landed home another 3 had gone under contract!   Finally, Tuesday afternoon, my buyers had narrowed their search to one specific property. Good thing, because the other one they liked went under contract next.   We prepared to make an offer, all the while staying close and aware of the action all around us on their favorite listings. The dominos were falling. My buyers began to waffle a bit wondering why the property they were considering making an offer on hadn't gone under contract already. Were they missing something? Was this property really as good as it seemed? After all, we all agreed, it was hands down, the best property we toured on Monday. So why were they so fortunate to have their favorite still available? Hadn't anyone else loved that same property?   All along I had been communicating with the listing agent. They had indeed, received offers. In fact, the first offer, before we showed it, had come in with a protracted closing date. The sellers simply weren't interested in waiting that long. A second offer had been presented, but the agent who presented the offer turned out to be so aggressively difficult the sellers chose not to work with his buyers. He blew it for them. That's another story for another day.   Then the snow squall blew in Tuesday morning and the listing agent said that three buyers had canceled their showings. Only one showing still stood, scheduled for early evening.   We ended up being the third offer. We offered just before noon on Tuesday and set an acceptance deadline of 6:00 PM that same day knowing there was that other showing at 4:45 PM--just enough time for someone to sneak in and make an offer to compete with ours, though it would be tight. But what were the chances they too would love the property? Apparently pretty high becuase they did, in fact, try to get an offer in before our Acceptance Deadline. At 5:56 PM the sellers signed our offer and the other folks missed out. This listing had in fact, received 4 offers in 48 hours!   I share this story because it's a real life scenario of what's going on in some areas of our local market. People are ready to move this spring. These homes were priced between $740,000-840,000. The same price range that struggled to move last fall when mortgage rates blew past 8 percent.   In the end, we were saved by a snow squall and the market seems to have melted all the snow away…just in time for another not-quite-spring weekend. What happens later this spring…or if rates were to fall?

Mortgage rates inched up this week, prompting a pause among some prospective homebuyers. However, there are compelling reasons why waiting might not be the most advantageous strategy. Let's delve into the data and trends shaping the housing market landscape. Impact of Mortgage Rate Changes Home shoppers are keenly attuned to fluctuations in mortgage rates, as evidenced by the recent uptick in the average for the 30-year fixed-rate mortgage, reaching 6.77%. This increase led to a 3% decline in mortgage applications for home purchases, according to the Mortgage Bankers Association. While even marginal changes in rates can influence purchasing power, borrowing costs have generally stabilized. Jessica Lautz, Deputy Chief Economist at the National Association of REALTORS®, notes that despite the weekly uptick, mortgage rates have followed a downward trajectory since fall 2023, now sitting a full percentage point below recent highs. Considerations for Prospective Buyers Waiting for mortgage rates to decrease may not yield significant savings. Even a slight decrease in rates may not substantially alter monthly mortgage payments, particularly as home prices continue to rise. With the median price of existing homes reaching all-time highs and projected to climb further, buyers face the challenge of navigating a market characterized by low inventory and persistent price pressure. Regional Trends and Market Dynamics While national averages provide insights into broader trends, it's essential to examine regional nuances. In the Denver and Front Range area, for example, housing market dynamics may differ from the national landscape. The region has witnessed an increase in new listings, signaling growing interest from sellers. Additionally, inventory levels have seen a slight uptick compared to the previous year, potentially offering buyers more options. However, this increased inventory is accompanied by rising mortgage rates, which could impact buyer demand and price dynamics. Implications for Sellers and Price Dynamics As sellers ease back into the market, the region has seen a steady growth in active inventory, albeit at a fractionally slower pace than in previous weeks. While this may provide buyers with more choices, it also raises questions about the balance between supply and demand. Furthermore, the sensitivity of homebuyers to higher mortgage rates is reflected in the increasing number of price reductions, indicating a cautious approach among consumers. Future Outlook and Considerations As the housing market continues to evolve rapidly, monitoring key indicators such as inventory levels, sales growth, and price reductions is crucial for gauging future trends. While median home prices have remained relatively stable in recent weeks, the impact of sustained high mortgage rates on price dynamics remains uncertain. Whether home price gains will persist in the face of elevated mortgage rates is a question that warrants close observation in the coming months. Bottom Line In navigating the current housing market, prospective buyers in the Denver and Front Range area, like their counterparts nationwide, must carefully evaluate their options. While waiting for lower mortgage rates may seem tempting, the broader market context, including rising home prices and shifting inventory levels, suggests that delaying purchases may not necessarily result in significant savings. By staying informed and adaptable, buyers can make informed decisions aligned with their long-term goals in a dynamic real estate landscape.

I saw a post today that said “it’s always sunny in the Bahamas.” That’s probably mostly true. It’s often sunny here too, isn’t it? That’s what we love about Colorado. Yesterday, for instance, was beautiful. A great day for a walk. A nice day to get some sunshine and vitamin D infusion on the skin. Today is kinda February-like though isn’t it? I literally saw real estate for sale signs going in yards yesterday (a sign spring could be right around the corner) but a day like today reminds us that spring is officially still a month away.  There are signs of inventory picking up though.  The latest report from the Denver Metro Association of Realtors (DMAR) indicates that there are currently 4,871 attached and detached homes available in the entire Denver Metro area. This shows a significant increase (18.23%), in available properties, from January 2023—good news for homebuyers. And while mortgage rates have been up and down this week, homebuyer sentiment appears to be on the rise while NAHB (National Association of HomeBuilders) metric for measuring their confidence also rose 4% to its highest level since August of last year.  So how’s the market? The era of multiple-offer madness has simmered down from the fever pitch we experienced a few years ago, and yet about 20% of homes sold still have sellers celebrating selling at a price over list price. Agents are still helping buyers find inventive ways to lower interest rates, such as the 3-2-1 or the 2-1 rate buydown, and other concessions (ask us how).  Today’s homebuyers don’t seem deterred about rates trending back up a bit as they have been lately (yet),  “[The] Consumer Sentiment indicator this morning rose to a 31-month high on a strong job market. Inflation is still on a downward trajectory.  Remember, never does anything move in a straight line. Experts are expecting a lower inflation report next month and a return to the mid-6s by spring, officially starting in 7 weeks, with a gradual decline to 6.2% by year-end.” For those of you hoping for drastically lower rates to make your move, I recommend patience. The reality is no one knows when rates will move. There’s only what we know presently.  Meanwhile, affordability remains in the same range we’ve been seeing in the Denver Metro area. The median sales price is $565,000 this month. Whereas last month, the median sales price was $15,000 lower, near $550,000, but $25,000 higher than January 2023, which was $539,250. Bottom Line In the meantime, if you or someone you know is considering a move in town, out of town, downtown, or even in or to another state, I can help (yes, in other states). Let’s schedule a conversation.   

For many, it can make sense to keep your primary home as a rental property, especially if you’re looking to bolster your real estate investment portfolio. And for anyone who took advantage of historically low interest rates just a few years ago, they are faced with the dilemma of selling and getting rid of that epically low rate forever. Yet many are, especially when it just isn’t financially feasible to hang onto multiple properties or buy the next one without cashing in. For those who want to keep their property that cash-flows and has a wonderfully low rate, or is paid off, there are benefits. Here are ones we came up with for you to consider. Additional Income: Renting out your home provides a source of passive income, helping offset mortgage payments, property taxes, and other expenses. Diversified Investment Portfolio: Owning rental property diversifies your investment portfolio, potentially providing long-term financial stability and growth. Tax Benefits: Landlords may be eligible for various tax deductions, including mortgage interest, property taxes, depreciation, and maintenance expenses. Asset Appreciation: Real estate values may appreciate over time, allowing you to build equity and potentially generate a profit when you eventually sell the property. Flexibility: Renting out your home offers flexibility in case you need to move for work, travel, or other reasons, providing a backup plan for housing. Market Demand: If there's strong demand for rental properties in your area, you may be able to secure reliable tenants quickly and achieve competitive rental rates. Long-Term Investment: Real estate is often considered a stable, long-term investment, providing a hedge against inflation and market fluctuations. Property Utilization: If you're not currently occupying the property, renting it out allows you to make use of the space and generate income rather than leaving it vacant. Potential for Cash Flow: Depending on rental income versus expenses, your rental property could generate positive cash flow, providing financial stability and additional funds for other investments or expenses. Future Options: Renting out your home provides the option to move back in or sell it at a later date, maintaining flexibility. This can be an especially nice option if your move may be temporary and is helpful to combat market uncertainty and fluctuation.  If you’re considering hanging onto your primary home as a rental and the reasons above are speaking to you, it may just make sense in your case to do that.

As a REALTOR, I meet with a lot of people who are faced with the question of whether or not to sell their home in order to buy the next one in the event they can afford to do so. That question has become even harder to answer now that so many homeowners took advantage of the historically low interest rates in the post-pandemic world of the early 2020s. Of course the answer to this question is going to be personal to you and your situation. Let me suggest several reasons why it may NOT be a good idea to keep your primary home as a rental. Shopping for a Rental vs. Your Dream Home: The first reason that gets overlooked as much as any is the fact that when you shop for a rental you shop based on drastically different criteria than when you’re looking for your ideal dream home, if you will. You will have different aspects of a property that stand out and matter to you when you’re looking for a home you want to live in compared to when you shop for one to put renters in. That leads me to my next point… Personal Attachment: You may have emotional ties to your home, making it difficult to deal with potential tenant issues or changes to the property. Uncertain Rental Market: If the rental market in your area is weak or unstable, you may struggle to find reliable tenants or achieve desired rental income. Maintenance Costs: As a landlord, you're responsible for maintaining the property, which can incur significant costs over time, especially if the home is older or requires frequent repairs. And renters never care for your property the way you would…ever. Legal and Financial Risks: Landlords are exposed to various legal and financial risks, including liability for tenant injuries, property damage, and potential lawsuits. If you’re not familiar with your liabilities as a landlord, you’re going to want to bone up on them. Loss of Flexibility: Converting your primary home into a rental limits your ability to sell or make changes to the property without disrupting tenants or terminating lease agreements. Mortgage Considerations: Some mortgage lenders have restrictions or may require approval for converting a primary residence into a rental property, potentially complicating the process. Property Depreciation: Renting out your home could result in wear and tear that depreciates its value faster than if it were owner-occupied. Tenant Management: Dealing with tenant turnover, late payments, or disputes can be stressful and time-consuming, especially if you don't have experience as a landlord. Local Regulations: Landlord-tenant laws, zoning regulations, and homeowner association rules may impose restrictions or additional requirements on renting out your property. Potential Loss of Tax Benefits: Converting your primary home into a rental property may impact your eligibility for certain tax deductions or exemptions associated with homeownership. If you’re ready to take on these obstacles and it just makes financial sense for you, by all means, rent away. Our next blog focuses on several reasons why turning your primary home into a rental could be right for you.

With the new year already a month in, we’re already seeing exciting developments in the real estate market. And, in this update, we'll take a look at where the market’s been, where it’s at, and where it appears to be headed in 2024. Where We’ve Been | National Housing Reflecting on 2023, we drew a comparison to the conditions in 1995. Why? Existing-home sales hit a record low of 4.09 million in 2023, mirroring the 3.85 million recorded in 1995. However, the main difference in this comparison is that the U.S. population has grown from 266.6 million (1995) to 336.0 million (2023), contributing to challenges in inventory and affordability. Back in 1995, there were 1.58 million single-family homes available for purchase. In December 2023, this number dropped to 870,000, and the months' supply decreased from 4.8 to 3.1 months. Again, considering our substantial difference in population, you can see how available housing inventory would influence affordability, mirroring a typical supply-demand model.  Affordability concerns were underscored by the median home sales price, soaring from $114,600 in 1995 to a historical high of $389,800 in 2023. Despite a difference in mortgage interest rates, a difference from 7.93% in 1993 to 6.81% in 2023, housing affordability indices, qualifying incomes, and mortgage payment percentages underwent significant shifts. First-time homebuyers faced increased challenges, with their share of the market dropping from 42% in 1995 to 32% in 2023, and the age of first-time buyers rising from 31 to 35 years. Despite these challenges, there is hope for 2024. Mortgage interest rates are on the decline, buyers are entering the market, and new housing construction is helping to increase available inventory. If these trends persist, we anticipate a more positive outcome for the housing market this year. Where We’re At | Local Housing Market (Denver & The Front Range) In the metro Denver real estate market, a notable shift in the relationship between supply and demand is evident as well. New listings increased by 15.2% week over week, and pending transactions surged by 20.7%. The Odds of Selling increased by 4.2% to 53.0%, indicating a positive trend. To achieve balance, we would need 23,177 total listings, putting us at 19.9% of balance. Showings increased by 14.5%, with a median of 21 days on the market. Rates Rates Drop Significantly on “Fed Day”, but Not Because of The Fed The Fed met on January 31st, and rates experienced a notable drop, though the drop is not solely attributed to The Fed’s actions. Economic data and headlines about banking troubles contributed to this shift. While additional gains depend on incoming economic data, things just improved for potential homebuyers who are rate sensitive. Where We’re Headed | What Local Lenders are Saying Local lenders are noting unexpected increases in client introductions, pre-approvals, and applications, indicating a potentially busy spring market. Now sure looks like an opportune time to ensure a strong pre-approval, understand the next steps, and prepare for competitive market conditions…or get out ahead of them. One of our local lender associates wrote,  "If January is any indication of what’s to come in the Spring Market, then HELLO FEBRUARY! I experienced an unexpected increase in client introductions, pre-approvals, and applications this past month that was very welcome but not typical for this time of year. This tells me that we are in for a busy spring, which means NOW is the time to prepare. Anyone considering, talking about, or looking to buy this year should reach out to ensure that they have the strongest pre-approval possible and that they understand and are comfortable with the next steps. I focus on informing clients through communicating and listening to make sure they are as comfortable and ready when the time is right. If you know anyone who would like to be informed, listened to, taken care of, and prepared to successfully close on a new home in this competitive market, please send them my way." Bottom Line When navigating the real estate landscape, it is always crucial to stay informed and prepared. If you have any questions or need assistance, we encourage you to reach out. There’s no sense in wondering and wandering on your own.

Your Chance for a Private Showing of a Former Denver Celebrity's Local Home   Normally, we don't cover a lot of sports-related topics in ELEVATE…and why would we? This is a real estate based e-newsletter. But we do cover local interest stories, especially if they have a real estate slant.    That brings us to this story. Former Colorado Rockies star, Todd Helton, was elected to the Major League Baseball Hall of Fame this week. He will be enshrined later this year.   Todd was known as a simple kind of man. And while the home he owned while he played in Denver sold for over $2M, back in 2018, it wasn't as lavish and luxurious as some of the state's top athletes owned.   In fact, we covered this in a video a couple of years ago, called Top 5 Home Sales of All Time in Thornton Colorado.     We figured with Todd being in the news again this week, you might also like to see the listing for yourself. It's certainly got some unique-to-Todd upgrades and features, such as an archery range, but for others, many aspect's of the Helton's former home are widely appealing, and not as opulent as you might thing.   See for yourself: click here to see it online.   Additionally, for those of you who are big fans, Todd Helton will actually be available to the public tomorrow (1/27)at 4:17 PM downtown near Coors Field.  

Navigating the journey to homeownership can be both exciting and challenging. But if there's one thing our experience fighting for the best interest of our clients has taught us, it's that no two home-buying scenarios are alike, and that's why we believe in a tailored, thoughtful approach to help you secure the home of your dreams. Unlocking the Secrets to Winning Offers So when we're asked the burning questions of every homebuyer - "How do we win this house?" or "What's the lowest offer we can make?" - there is no one-size-fits-all answer. Each situation is unique, and what worked in a previous negotiation might not apply to your current endeavor. Nevertheless, there's a wealth of wisdom to be gained from every attempt, be it a victory or a learning experience. At The Altitude Group, we pride ourselves on providing winning advice by taking a customized, thoughtful approach based on the unique factors influencing your offer. Here's a glimpse into our winning offer strategy: Price, Terms, and Your Goals: We analyze the interplay between price, terms, and your personal goals. A careful consideration of these elements allows us to craft an offer that aligns with your objectives while remaining competitive, while keeping in mind any information we’ve gathered about what the seller is looking for. Understanding Market Conditions: Knowledge is power. We keep you informed about the current market conditions, helping you understand whether it's a buyer's or seller's market. This insight guides our strategy for a more informed and competitive offer. The Power of Pre-Approval: A strong pre-approval not only streamlines the process but also enhances the attractiveness of your offer. We guide you through the importance of this step to strengthen your position and we’ll seek to involve the lender as part of our team approach to show strength and viability. Personalization is Key: Tailoring your offer to the seller's preferences can make a significant difference. We explore ways to personalize terms, such as flexible closing dates or accommodating special requests. Understanding Seller Motivations: Knowing why a seller is parting with their property can be a game-changer. We help you decode seller motivations to refine your negotiation strategy. Professional Connections Matter: Our established relationships with industry professionals, from mortgage brokers to inspectors, contribute to a seamless process. Trust in our network to navigate the complexities of real estate transactions. Taking the Next Steps In a competitive market, timing is crucial. We urge you to respond promptly to new listings, armed with the knowledge and confidence to act swiftly when the right property comes along. Remember, flexibility in negotiations and transparent communication are key components of success. As you embark on this exciting journey with The Altitude Group, rest assured that our team is committed to guiding you through each step. Whether you're facing a multiple-offer scenario or dealing with a property that has lingered on the market, our approach is tailored to your unique situation. This is why we have a long list of satisfied clients. It’s our mission and duty to help you make your next home purchase a reality.

That’s a Wrap on 2023! This year was marked by low home value appreciation and slower than normal real estate transaction activity, and staggering high mortgage rates. In October, we actually saw homes trade at a slower rate than they did during the Great Recession. But November brought relief, and rates fell for about 6 straight weeks, then stabilized the last two weeks of the year to round out an interesting year in the real estate market. Mortgage Rates Wednesday, in fact, was the most interesting day of the past 2 weeks, but that's not saying much. The past 2 weeks have been the calmest for mortgage rates in more than a year with the average lender essentially unchanged since December 14th. Yesterday's excitement came in the form of a more normal level of volatility. It didn't hurt that the volatility happened to be in the direction of lower rates. With that moderate improvement, the average lender was still lending just barely at the lowest levels since May 2023.  The Impact of Rates on Affordability Deputy Chief Economist & Vice President of National Association of Realtors (NAR) Research, Jessica Lautz said, “In just 6 weeks of decline, this makes a considerable difference for a home buyer purchasing a $400,000 home. A monthly mortgage payment of $2,135 is a monthly savings of $166. This is considerable, and buyers who have been priced out may start to trickle back in. For homebuyers who are taking on a mortgage to purchase a home and have been wary of the autumn rise in mortgage rates, the market is turning more favorable, and there should be optimism entering 2024 for a better market. It should be noted that in the most recent months' data in the REALTORS® Confidence Index, 29% of the market is purchasing a home without the use of a mortgage. These buyers are likely indifferent to the mortgage market. Some are investors, but many are primary residence buyers who have built substantial housing equity amid home price gains. While some of these buyers may be local, others may be moving long distances to a more affordable area. For now, eyes are on the Feds statements, CPI, and the 10-year treasury to see what the end of the year holds for mortgage interest rates. For those interested join NAR's Real Estate Forecast Summit on Dec 12 for a more in-depth forecast.” Existing Home Sales In November, the housing market witnessed a turnaround as existing home sales, which had experienced a downward trend for the past five months, increased by almost 1% compared to the previous month, reaching an annualized rate of 3.82 million units. It's worth noting that these sales figures only partially capture the significant decline in mortgage rates over the last two months, suggesting the likelihood of even more robust numbers in the upcoming months. The national median sales price for November stood at $388,000, reflecting a 4% year-over-year increase, according to NAR. Compared to Last Year This time last year there was a significant decline in mortgage rates as well. Between late October 2022 and early February 2023, the average 30-year mortgage rates decreased by approximately 1.3% (130 basis points). This reduction played a crucial role in the impressive 14% month-over-month improvement observed in existing home sales in February 2023. “Interestingly, the decline in mortgage rates this year has been more substantial (1.5% or 150 basis points) and quicker (within a span of 2 months) compared to the previous year. According to Matthew Graham of Mortgage News Daily, it has been labeled as "the biggest drop in a 45-day window that we've ever measured."” NAR’s Chief Economist, Lawrence Yun seems to agree: “The latest weakness in existing home sales still reflects the buyer bidding process in most of October when mortgage rates were at a two-decade high before the actual closings in November. A marked turn [upward] can be expected as mortgage rates have plunged in recent weeks.” What he means is that the majority of the home sales that closed in November went under contract in October, when rates were much higher. (It generally takes 1.0–1.5 months for a deal to close.) New Home Construction It’s been said that new construction will lead us (the US housing market) out of the inventory shortages and into affordability. While that may take some time, several years at least, it’s good to see new home starts, new home builder confidence, and overall site traffic all up in recent months: “With mortgage rates down roughly 50 basis points over the past month, builders are reporting an uptick in traffic as some prospective buyers who previously felt priced out of the market are taking a second look. With the nation facing a considerable housing shortage, boosting new home production is the best way to ease the affordability crisis, expand housing inventory and lower inflation.” — Alicia Huey, NAHB Chairman End of a Season? Winter just began but the year is concluding and the stale real estate market season may be as well. First-time buyers traditionally fare better in the winter, as there is less competition from families in the home-buying market. But as the year comes to an end, it’s quite possible that so too are the best opportunities. Following interest rates’ high water mark in October, market fatigue became widespread amongst most sellers and buyers. However, for those who remained in the market, enduring the slowdown in showing and listing activity, there were opportunities for buyers to negotiate with bedraggled sellers. Now with Christmas nearly a week behind us and mightily improved rates since the end of October, there are already signs of the market picking up steam heading into the turn of the new year. Bottom Line Homebuyers who’ve been priced out in the last year should find optimism through decreased interest rates in 2024. As for sellers, prices are predicted to moderate with most experts predicting a modest 2-4% increase in value, though some are calling for as much as 5+% if interest rates dip too low too quickly. Either way, it should be interesting. Give us a call to discuss how today's market conditions impact you.   If you’d like to read further on what 2024’s real estate market may hold, we’ve curated a short list of articles we think you may want to read before the new year ramps up next week: Home Sales Start to Rise Building Momentum for 2024 NAR Forecasts 4.71 Million Existing-Home Sales, Improved Outlook for Home Buyers in 2024

As you embark on the journey of purchasing your dream home, it's crucial to delve into the details of the inspection phase, and one aspect that often deserves heightened attention is radon testing. Radon, a naturally-occurring radioactive gas, possesses the potential to impact your health, specifically increasing the risk of lung cancer. In this blog post, we'll explore the significance of radon testing, the associated risks, and the proactive steps you can take to ensure a safe and healthy living environment. To begin, it's essential to understand the nature of radon—it's colorless, odorless, and inert. These characteristics make radon testing a vital component of the inspection process, allowing you to uncover potential risks that may otherwise go unnoticed. For a comprehensive guide on radon, we recommend exploring the EPA's resource, which provides valuable insights into the testing process and mitigation strategies: EPA Radon Guide. In Colorado, the entire Front Range falls into the EPA's Zone 1 designation, indicating predicted average indoor radon screening levels greater than 4 pCi/L. Both the CDC and EPA recommend mitigation at a conservative level of 4.0 pCi/L, emphasizing the importance of addressing this concern during the homebuying process. Understanding that radon levels in the soil vary based on soil chemistry, it becomes apparent that the escape of radon into the house depends on multiple factors, including weather conditions and soil porosity. Particularly, the basement is susceptible to radon accumulation, making it a focal point for testing and mitigation efforts. Builders are increasingly recognizing the importance of radon mitigation, with some incorporating passive radon mitigation systems as a standard practice. Despite varying opinions on radon's significance in real estate transactions, it's evident that awareness and action are on the rise. Radon testing is a straightforward process, typically taking a couple of days. Most home inspectors can facilitate the testing, leaving the kit in the home for at least 48 hours. The results empower you to make informed decisions, such as requesting the seller to install a mitigation system or provide a credit for one. At the time this blog post was published the associated cost of radon testing generally ranges from $125 to $150. Beyond meeting regulatory requirements, testing for radon offers a specific understanding of your home's potential hazards. This knowledge provides peace of mind, especially when radon levels test low. Whether you're planning to occupy the basement regularly, the basement is already finished, or you have future finishing plans, radon testing is a proactive step toward ensuring the safety and well-being of your household. Bottom Line Because Colorado ranks among the top ten states in terms of radon prevalence in the US, it's clear that addressing radon during the homebuying process is not just a regulatory requirement but a crucial step in securing a healthy living space. Feel free to share your thoughts or reach out if you have any questions. Your proactive approach to radon testing contributes to the overall assurance of a safe and healthy home.

Seizing the Opportunity: Why Now Might Be the Perfect Time for Your Real Estate Move __________ Something big occurred just yesterday in the housing world--one of the biggest 2-day drops in interest rates we've seen in decades! On Wednesday, the Federal Reserve met and Chairman Jerome Powell spoke at the last Federal Open Market Committee (FOMC) meeting of the year. Ultimately, the Fed signaled that additional rate hikes in the near term are not expected and unlikely and alluded to a potential for 3 rate decreases throughout the coming year. While the Federal Reserve doesn't directly establish mortgage rates, these rates align with market expectations influenced by the Fed's decisions on short-term rates. The positive expectations evident in the Fed's Wednesday projections further emphasize this correlation. The bond market, of course, loved the news, and traders began pricing The Fed's anticipated actions and dovish tone into the interest rates. The result was that the prevailing rate dropped to the lowest we've seen since May 2023, making up for a lot of lost ground along the way. Mike Fratantoni, Chief Economist of the Mortgage Bankers Association said:  “Additional rate hikes no longer appear to be part of the conversation. It is all about the pace of cuts from here. This is good news for the housing and mortgage markets. We expect that this path for monetary policy should support further declines in mortgage rates, just in time for the spring housing market. We are forecasting modest growth in new and existing home sales in 2024, supporting growth in purchase originations, following an extraordinarily slow 2023.” What does this mean for housing, and for you? Housing professionals expect further declines in mortgage rates and busier 2024 market. And it stands to reason. If you're considering buying a home, you can expect rates to likely move lower (more affordable). Since rates hit their recent peak of over 8%, homebuyers have gained hundreds of dollars in savings per month on mortgage payments due to the improved rates. In this video, released just this morning on YouTube, Brian Dewald, a local lending partner, spoke of a veteran family he helped close on a deal with a 30-year fixed rate of just 6.25%. Homebuyers currently in the market are finding that they're able to reach new thresholds of affordability or have homes, otherwise thought to be out of their price range, come back into focus for consideration. An Encouraging Winter Market  Since Thanksgiving, the mortgage industry has experienced a significant uptick in business, driven by homebuyers seizing the opportunity presented by lower rates. Concurrently, there has been a modest increase in new listing activity in recent weeks, providing additional choices for prospective homebuyers. In the current market, approximately two-thirds of existing mortgages still boast rates below 4%, and more than 90% have rates below 6%. This dynamic hampers inventory growth as homeowners are hesitant to part with their advantageous low-rate mortgages. However, a shift is anticipated in 2024, as noted by Lisa Sturtevant, Chief Economist at Bright MLS. Life changes, whether familial or financial, are expected to compel more homeowners to sell, even if it means relinquishing their favorable, much-lower rates. "With falling rates and heightened new listing activity, it is anticipated that the unusually busy December market will extend into January, as both buyers and sellers strive to gain an edge before the spring market," remarked Sturtevant in a recent statement. Cautiously Optimistic With moves this big, there is a risk of a corrective bounce. And progress will not be linear–2024 will continue to bring periods of ups and downs. Economically, despite strong retail sales and NY Fed Pres Williams’ attempt to squash the exuberance this morning, continued optimism prevails with the 10-yr dropping to 3.9% and the 30-yr fixed to 6.625%. Bottom Line Real estate decisions often take time to unfold. Yet, when a promising opportunity arises, it's advisable for prospective homebuyers to act promptly. These moments of advantage and opportunity in the real estate game can be brief, and seizing them could prove beneficial long-term.

Unveiling the Strategies That Catapulted One Couple to Financial Victory Amongst the Challenges of Today’s Real Estate Market I don’t know if it’s for you or not, but in today’s challenging real estate climate high home prices and high interest rates have created challenging market conditions for many. The following story, set in real-time amongst those very market conditions, however, illustrates how one couple we recently worked with used a financial real estate strategy to overcome substantial consumer debt, bought a much nicer home that fit their family’s needs, and still ended up hundreds of dollars ahead each month in their overall monthly expenses (see also our most recent video Buyers Saving Hundreds per Month from Recent Rate Reductions). This financial restructuring is known as blended rate, and if you’re anything like these folks, it could be a solution for you.   Allow me to set the stage: in the current economic landscape, consumer debt has reached historic levels, especially with soaring credit card interest rates driven by the Federal Reserve’s actions.  Our protagonists in the story, a real-life Colorado couple who purchased their home in 2019 for $430,000, had seen its value climb to an impressive $582,000 in four years. Despite a wise decision to refinance at 3.25% in 2021, they found themselves grappling with substantial credit card debt, and an exorbitant car payment—a common predicament for many households (see example below). Let’s take a quick look at the villian of the story (besides The Fed): the nearly $100,000 in consumer debts they were juggling. This includes $40,000 in credit card debt and a $56,000 vehicle loan, amounting to over $3,000 in minimum monthly payments. Their dilemma necessitated a proactive solution: sell their current home before the pent-up homebuying demand surges, aiming to secure a better overall home and financial foundation. Utilizing the equity from their increased home value, the couple paid off their high-interest credit cards. By consolidating their debts into the new $750,00 home loan, even at a higher interest rate of 7%, they achieved an overall monthly savings of $219–remember they had recently refinanced to 3.25%.  Delving deeper into the financial story, the couple utilized a blended rate approach to mitigate the bad interest associated with credit cards and an auto loan. This specifically resulted in a monthly reduction of expenses by $2,426, translating into an almost 20-year acceleration in paying off the loans! The cherry on top? A remarkable $113,000 in interest savings over the life of the loans and an increase in net worth to over $443,000! This strategic financial maneuver not only provided immediate relief by lowering monthly payments but also sets the stage for their long-term financial stability. The case study serves as a testament to the importance of evaluating and adjusting financial strategies in response to evolving economic conditions, empowering individuals to take control of their financial future.  In this very real scenario, it was our trusted financial adviser, senior lending officer, and hero of the story, Brian Dewald, that helped these folks using a blended rate approach to a much-improved financial standing.  Navigating consumer debt requires a creative and tailored approach, and we’re here to help you make informed decisions on your path to financial freedom through real estate. We want you to be able to write a beautiful story of your own. So, if you find yourself in a similar situation or want to explore your financial options through a mortgage …reach out! This is precisely why we’re here. To reach Brian Dewald: Maverick Lending President | Senior Loan Officer 303.908.3891 720.500.1880 brian@mavlend.com www.mavericklendingsolutions.com

The latest housing news for November 2023. In our professional opinion, here's what you need to know about today's real estate market conditions--despite what you may have heard: Mortgage Rates and Market Trends In a surprising turn of events, traders are not currently pricing in another rate hike for the first time in two years! Yesterday, we saw RATES at their LOWEST POINT in 3 months. The 10-year treasury's fall from 5% to 4.4% adds weight to the expectation of a downward trend in mortgage rates. So far in November the market has already experienced about a half to one percentage drop in mortgage interest rates. It’s difficult to forecast if this dip represents a long-term trend at this time, but homebuyers should welcome the improvement.This could make late fall and early winter an opportune time for home shopping before rates potentially fall into the 6% range, as they did yesterday. The market moves quickly and some of those gains evaporated today, but that’s the market. If rates were to dip into the 6s in the spring, there’s a good chance for a frenzy of new homebuyers entering the market, driving up competition for the already low supply of available homes to buy. Federal Reserve and Market Dynamics Despite conflicting signals, the market largely believes the Fed is done tightening monetary policy. Recent data on the consumer price index (CPI) sparked a major rally on Wall Street, with traders almost completely taking potential Fed rate hikes off the table. The flat reading on the headline CPI, along with a decrease in energy prices, contributed to this sentiment. Local Market Conditions The local market conditions provide interesting insights. With over 50% of units under contract experiencing price reductions and motivated sellers willing to negotiate, repair, and offer concessions, 2023 stands out as a year where sellers are driven by necessity. Traditional seasonal patterns indicate a rise in homes being withdrawn or expired from the market in the fourth quarter, setting the stage for likely increased demand and multiple offers in the first quarter of the following year. Market Trends and Insights Zillow's October Housing Report highlights a national trend of falling home prices month-over-month due to high mortgage rates and the usual seasonal housing cooldown. However, year-over-year, home values are still up in 34 of the 50 largest markets. Prices increased only slightly nationwide in October but the month’s hottest markets saw more substantial price growth due to high demand. Unfortunately, none of the Front Range’s largest cities made it onto the latest list (October 2023) of Top 20 Hottest Housing Markets or Markets Seeing the Largest Jump in Rankings (October 2023), though many of our neighbors in the West did (per realtor.com). Expert Predictions Expert predictions suggest a rebound in home sales in 2024, with Lawrence Yun, NAR Chief Economist, stating, "Existing home sales will rise by 15% next year." The market's expectation for the path of the federal funds rate has shifted, with potential rate cuts in 2024. Yun’s prediction for home sales is not to be confused with home values, though most experts expect that prices will increase next year, with most agreeing on a relatively modest increase. Bottom Line In conclusion, 2023 presents both challenges and opportunities in the real estate market. Understanding these trends is crucial for making informed decisions. Your reflection on the significance of data-driven facts will not only benefit your clients but also contribute to the overall health and stability of our market.   Remember there are always opportunities and advantages in any market, so please always feel free to reach out if you have any questions or if you're ready to explore the exciting opportunities in the current real estate landscape.

Understanding ARV in Real Estate: A Crucial Metric for Smart Investors When diving into the world of real estate investing, one term you're likely to come across frequently is "ARV," which stands for After Repair Value. ARV is a critical metric for savvy investors, and in this short blog post, we'll break down what ARV means and why it matters in the real estate world. What Is ARV? ARV is the estimated value of a property after it has undergone necessary repairs, renovations, and improvements and is move-in ready for market. In other words, it's the potential resale value of the property once it's in tip-top condition. Understanding ARV is crucial because it helps you determine the profit potential of a real estate investment. Why Is ARV Important? Investment Decision: ARV plays a vital role in your decision to buy a property. It helps you assess whether the investment makes financial sense. You wouldn't want to sink money into a property that won't yield a satisfactory return. Financing: When seeking loans or financing for your real estate project, lenders often consider ARV to determine how much they are willing to lend. A high ARV can open up more financing options. Pricing Strategy: Knowing the ARV of a property enables you to set a competitive selling price once your renovations are complete. This can be the difference between a quick, profitable sale and a property that lingers on the market. Calculating ARV To calculate ARV, follow these simple steps: Research Comparable Properties: Look for recently sold properties in the same neighborhood with similar characteristics to your investment property (size, layout, age, etc.). Adjust for Differences: Compare these properties to your project and make adjustments for any differences, like more or fewer bedrooms or a larger lot size. Consult Professionals: Don't hesitate to consult with real estate agents, appraisers, or experienced investors to get a more accurate estimate. Bottom Line In the world of real estate, understanding ARV is essential for making informed investment decisions. It guides your purchase price, renovation choices, and ultimately, your potential profit. So, before you embark on your next real estate venture, be sure to calculate the ARV. It's a key tool in your investor toolbox that will help you make smart, profitable decisions.

When preparing your home for sale, few things can have as large and immediate impact as painting.  If you're selling your house, painting is a great way to increase your resale price. Paint color takes up much of a room's visual space — it draws the eye and can even influence your mood while you're in the room. As a general rule, you want to stick to as few colors as possible, even if they are all neutrals. Using the same color in more than one area will give your home an overall cohesive feel. It also makes your home seem bigger, since there is an easy flow from one room to the next. THE IMPACT OF PAINT COLORS The choice of paint colors can significantly influence a buyer’s perception of your home. The right color palette can make your property feel inviting, spacious, and up-to-date. On the other hand, outdated or overly personal colors might deter potential buyers. Therefore, it’s crucial to consider current design trends and the psychology of color when selecting your paint hues. The most appealing color to paint the inside of a home when selling it is usually a neutral color, such as white, beige, or gray. These colors appeal to the majority of buyers and provide a blank canvas that allows them to easily visualize their own belongings and style in the space. Generally, going with neutral colors like shades of white, beige, taupe, and grays lead to a faster sale," she shares. "Neutral colors are also more appealing to potential buyers because many want the creative freedom of a blank canvas to add their personal touches to when looking for a new place to call home. From a seller's point of view, it can be risky having bright, bold paint colors because personal preference ranges greatly from person to person." 1. CLASSIC WHITE White is a timeless and enduring favorite among home sellers. It creates a clean and fresh canvas that allows potential buyers to envision their own style and décor in the space. However, not all whites are created equal; consider opting for a warm white with a hint of cream to add a touch of warmth and coziness to your rooms. Remember to consider your home’s architectural style and the preferences of your target buyers when selecting paint colors. By choosing wisely, you can enhance your home’s appeal and increase your chances of a successful sale in the competitive real estate market. 2. SOFT GRAY Gray continues to be a popular neutral color that appeals to a wide range of buyers. Opt for soft, warm grays that create a soothing and elegant atmosphere. Light gray walls can make rooms appear larger and more inviting, making it an excellent choice for various spaces throughout your home. 3. GREIGE Greige, a fusion of gray and beige, is a versatile and contemporary color choice. It offers a subtle warmth while maintaining a neutral backdrop for various decor styles. Greige works particularly well in living rooms and bedrooms, creating a sophisticated yet comfortable ambiance. Consider consulting with a professional painter when making color selections. You could have different tastes (that’s ok, by the way) but a painter knows what shades are not only popular, but how they vary from the paint swatches/chips to then they’re actually applied on the walls, what colors work well together (and which don’t), and how colors work in different types of light. We have a list of preferred vendors and contractors available to our private clients. WHAT’S TRENDING Consensus says that Sherwin Williams Agreeable Gray (SW 7029) is still the number one most widely-appealing choice to paint the interior of your home when preparing it for sale.  Sherwin Williams Alabaster (SW7008) is second on many lists and offers a creamier white option for those who are tired of grays or where a gray isn’t the right complement to existing decor choices.  Sherwin Williams Gray Mist is a compromise of the first two favorites, not gray, not beige, but a “greige” compromise.  Another favorite is Sherwin Williams Snowbound (SW 7004) for a creamy white option. However it suits an exterior better where conveying warmth isn’t as critical as it is with interior paint colors.  WHAT THE EXPERTS SAY Warm neutrals were a top choice for homeowners in 2023, and that trend I can see continuing. 82% of experts recommend warm-tinted neutral paint for selling because of the likelihood that it won’t turn away buyers for being too bright or too cold. Warm colors are welcoming, and neutrals don’t impose your personal style, so they’re great for inviting prospective buyers to see their future in your home. They can give texture to small rooms that may look sterile painted in white, and they can open up larger rooms that may feel smothered in rich, deep color. In contrast, spaces feel more open and unified when the same color is used across all rooms on a floor. Uniform paint choices can be more widely appealing and offer a clean-slate-feeling for potential buyers. This lets buyers more easily envision what customizations they want, thus making your home more attractive to them. The more they wrestle with your custom touches, the less they feel drawn to your home. BOTTOM LINE At the end of the day, it’s your house, so it’s your choice. Just remember, if you’re painting so you can appeal to the most buyers, put your trust in the experts. We’re always here to help. Please reach out to begin your staging and home prep consultation.