This month, we’re seeing mortgage rates climb back up, creating fresh opportunities for buyers while economic signals keep the market on its toes. From key updates on Denver’s inventory and affordability shifts to a national slowdown we haven’t seen since the ‘90s, October’s market is full of pivotal moves and strategic advantages for buyers and sellers alike. With the November Jobs Report, Election Day, and a Fed meeting right around the corner, expect continued volatility—and stay ready to take advantage of emerging trends. Let’s dive in. Mortgage Rates Update Should we be buckling up for a perfect storm? The average 30-year mortgage rate has edged back up near 7%, impacting buyer sentiment. Mortgage applications fell by 6.7% from last week and a striking 30% month over month, reaching the lowest level since July. Despite this, a strong economy (3% GDP growth, rising retail sales, wages up by 4%, and increased personal income) is driving higher rates. The consumer sentiment has hit a seven-month high, showing confidence, especially among those expecting a Republican win. A potential Republican sweep could elevate rates with lower taxes, increased tariffs, and a shift to equities from bonds. With key events like the November 1st Jobs Report, the November 5th Election, and the Fed’s November 7th meeting ahead, volatility is expected to persist. Though uncertainty remains, this market favors buyers who have a unique edge in today’s market. Think of recent rates as a rollercoaster ride—from September’s brief dip into the high 5% range to the current near-7%.  The upcoming weeks could bring crucial economic data, which might keep sellers motivated to negotiate, despite buyer hesitation. While rates are higher than last month, they remain 1% below last year. Greater Denver Metro Market Update According to the Denver Metro Association of Realtors (DMAR), there are 11,115 homes available across the Denver Metro, marking a 3.65% increase from last month and a 45.69% rise from last September. Median sales prices sit at $576,171—about a 2.34% decrease from last year. New listings totaled 5,053, a jump from last year’s 4,602, while the average days on market rose by 5.41% over the past month, extending the home-selling lifecycle. Although prices have dipped, inventory is climbing, creating more options and, potentially, negotiating leverage for buyers. Local Interest Is now a good time to buy or sell? What’s the outlook for 2025? The Wall Street Journal recently featured a story of local Denver buyers navigating this dynamic market. The report highlights the trend of buyers and sellers deferring moves despite significant life changes, which can lead to pent-up demand. Nationally, the housing market is at its slowest since 1995. Many have held off on transactions, but this is expected to change as we approach 2025 and 2026 when rates are projected to fall, making it a ripe time for buyers ready to act now. Here’s the link to the article: [Wall Street Journal Article] National News Key economic indicators are shaping the national real estate landscape and consumer confidence. The Federal Reserve recently reduced its benchmark rate for the first time in over four years, and inflation has dropped to its lowest point since early 2021, edging closer to the Fed’s 2% target. Despite stock market volatility, major indexes like the S&P 500 and Nasdaq remain significantly up year-to-date.  Seasonally, August saw a slight dip in national home prices from June’s peak, along with a higher inventory count—the most in almost four years—yet still low by long-term standards. Months’ Supply of Inventory (MSI) reached a four-year high, favoring buyers, as active listings rose and sales volumes dipped. Homes still go under contract relatively quickly, although not at pandemic-era speeds. Average days on market and offers per listing reflect cooler conditions than spring, while the rate of price reductions has slowed but remains elevated post-2022’s rate spike. Bottom Line The real estate market remains complex but offers unique advantages for well-informed buyers. As mortgage rates hover around 7% and economic data continues to shift, buyers gain leverage in negotiations, especially as many sellers await clarity from upcoming economic and political events. This seasonal slowdown could present a rare window for those ready to buy, with potential competitive pressure building toward 2025. For sellers, setting realistic expectations is key, while buyers should stay poised to act in an increasingly balanced market.

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?

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.  

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

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.

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.

I don’t think it’s any coincidence that Prop HH is one of the longest and most complicated taxing measures ever seen on a Colorado ballot. It amounts to 48 pages of legal verbiage affecting all kinds of taxes in Colorado. Like any measure, it’s going to appeal to someone, and there are “good” “bad” and “ugly” aspects, in my opinion. The Good What this does is it puts a temporary freeze on how they calculate property taxes in Colorado, capping it at 6.7% for a whole decade and also knocking $40,000 off the taxable value. I've broken down how Colorado calculates property taxes and given an example below to make it easier to grasp, but for most folks, it means you can expect a nice $300 to $500 drop in your property tax bill for the next decade. The Bad This marks a substantial, enduring increase in income taxes for everyone, not limited to just homeowners. In return for the temporary reduction in property taxes over a decade, the State will retain a portion of your tax refunds. What's noteworthy is that the portion the state retains follows a progressive pattern, with the amount increasing over time. By 2023, the State will hold an additional $94 million, and this figure keeps climbing, reaching $358 million in 2024 and 2025. As we look ahead to 2033 when the property tax decrease period ends, it's projected that the State will have accumulated an extra $2.2 billion from withheld income tax refunds. The rationale behind the State's retention of these tax refunds is ostensibly to "reimburse" institutions such as schools, fire departments, and libraries that will receive reduced funding due to the property tax reductions. However, this approach forces these entities to appeal to the State for what they would have naturally received without this legislation, effectively centralizing control of tax funds and enabling the State to selectively allocate resources. Additionally, the bill imposes rules and restrictions on taxing districts' ability to seek tax increases, ostensibly to maintain fiscal responsibility. While this may seem reasonable, it also transfers more control from local authorities to the State, potentially limiting local autonomy. The Ugly I usually steer clear of delving into demographic politics, but I can't help but voice my concern about the glaring inequity of this proposed tax hike. You see, our tax system has largely been structured to be progressive, meaning those who have more, contribute more. However, this proposal does the exact opposite. Here's the kicker: About 62% of Coloradans are homeowners, and they will experience a modest reduction in their property taxes. Now, the tax refund retention and income tax increase doesn't just affect homeowners; it applies to everyone. But here's where it gets tricky from an equity perspective: Roughly 71% of white individuals in Colorado own their homes, compared to 53% of Hispanics and only 37% of Black individuals. Statistically speaking, homeowners have a net worth that's about 40 times greater than that of non-homeowners. The average net worth of a homeowner stands at $225,000, while a renter's average net worth is a mere $6,300. So, under this proposed tax scheme, everyone faces the same tax increase burden, but only homeowners reap any benefits, and that too, only for a decade. This is what makes it one of the most lopsided tax proposals I've come across. Colorado's method for calculating property tax assessments is already quite intricate, so let me offer a concise explanation: The taxable value of your personal residence in Colorado is currently calculated at 6.765% of the assessed value. It's important to note that this 6.765% rate is temporary, as the statutory rate is set at 7.15%. However, for 2023, there was a temporary reduction to 6.765%, and it will gradually increase to 6.976% in 2024 before returning permanently to 7.15% in 2025. Property tax is assessed in what they refer to as "mils," with a mil being one one-thousandth of a dollar ($0.001). To illustrate, let's take an example: If your home is valued at $500,000 in unincorporated Adams County, where the tax rate is 87.925 mils, the taxable value of your home would be $33,825.00 (6.765% of $500,000). Consequently, your property taxes would amount to $3,018.88 ($33,825.00 x 0.087925). Now that we have this baseline understanding of how Colorado property taxes and tax rates currently work let’s move onto Prop HH. Proposition HH brings about a noteworthy change in property tax assessments. It sets the assessment rate at 6.7% until the year 2032, after which it will revert to 7.15% in 2033. In essence, this freeze on the temporary reduction extends for a decade, which is certainly a positive aspect. Additionally, it introduces a $40,000 reduction in property valuation for the next 10 years, meaning that, for tax purposes, your $500,000 house would be considered as worth $460,000. This is unquestionably a property tax decrease. Using the same example from earlier, property taxes under Proposition HH would amount to $2,709.84, resulting in a tax savings of $309.04. It's a good deal, and I'd be inclined to support it wholeheartedly. For a couple earning $100,000 and filing jointly in 2024, the estimated tax increase is around $200. However, if this couple owns the property described above, they would actually experience a net tax decrease in 2024, saving $109.00. In 2025, this same couple is projected to face a tax increase of $246. When it comes to homeowners, it's anticipated that the tax increase will eventually surpass the benefit of the property tax deduction by the year 2026. I don't know if it’s for you or not, but on November 7th, you’ll have your chance to see Prop HH defeated. Click below and learn more facts about Prop HH that you’re asked to vote on, on your November ballot! https://factsonprophh.com/ As always, we’re here for you to be your real estate resource for life. Please reach out if we can be of service to you or someone you know.

The latest housing news for October 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 at 8% Mortgage rates have reached 8%, a level not seen in 23 years. While this might be concerning, it's important to note that we've been hovering in the high 7% range recently. The big question on everyone's mind is when will rates start decreasing according to the experts? Many of the local lenders I work with and associate with seem to think that rates are nearing their top. The Federal Reserve, the monetary entity behind all the recent rate hikes wants spending to stop before they slow down rate hikes.  What's the Outlook? Fortunately, there is hope for relief in the near future. The latest inflation data suggests that the Federal Reserve's interest rate hikes may be working to combat inflation, which is a positive sign. However, the Fed is not expected to increase the interest rate at the next meeting. The reality is, when trillions are pumped into the system, inflation goes through the roof. Market Dynamics New listings have dropped by 6%, while inventory has increased by 11% to 6,629 listings. We're beginning to see inventory build--inventory currently stands at about 2.4 months of available supply. Notably, the median price continues to climb slightly (up 0.86% year over year), and the close to list price ratio remains strong at around 99%. Many sellers are still achieving their desired prices, with noted concessions, but buyers are becoming more assertive and winning negotiations. The 5 D's Yeah but are people still moving? The “5 D's”--those moving out of necessity--is a significant driver of the housing market. While prices haven't dropped significantly yet, increased rates have decreased demand, potentially impacting prices. However, low inventory is a complicating factor in this equation which is currently underpinning values, keeping them from substantially decreasing. We're closely monitoring the situation as inventory is finally increasing…slowly. Ownership and Foreclosures What's keeping the market going? Currently, 38% of homes in the U.S. are owned without mortgages, while 62% have mortgages. Importantly, 90% of those with mortgages have rates under 6%, and 80% have rates under 5%. Foreclosures have increased by 34%…but they're coming up from historic lows. The situation is not as extreme as it may seem. National foreclosure rates are at 3%, but in Colorado, they're just 1.7% and forbearances are becoming a thing of the past. Don't let the news tell scare you into thinking the worst, without knowing these facts. Strong Foundational Market Elements  Further expounding on the comments above, the market is supported by a substantial $31 trillion in home equity. Most homeowners have an average of 71% equity, and many have seen their equity grow by 45% in the post-pandemic boom. These facts provide stability and opportunities in our market, despite the current volatility in mortgage rates and perceived tenuous nature of the market. Seasonal Opportunities We are currently experiencing the traditional seasonal slowdown in the market. In some ways, seeing seasonality in the marketplace is welcome because it’s been predictable in the past (pre-pandemic), and always has presented opportunity for homebuyers.   For today's buyers there is also opportunity. Although there's less inventory of homes from which to choose, there are also fewer buyers to compete with. Historically, we've seen deals and negotiations pick up during this season.    For sellers, we advise pricing properties reasonably and ensuring they're in tip-top shape for listing. Sellers should anticipate that while price reductions aren't always expected, when a property is priced correctly, most buyers who are getting loans will need a mortgage rate buydown (also known as a seller subsidy) to make the montly payment work in today's near-8-percent mortgage rate environment. For more information on mortgage rate buydowns click here. The Silver Lining Despite hitting 8% last week, mortgage rates dropped ever so slightly back into the high 7's recently. That's not much, admittedly, and many buyers are waiting for a more substantial drop, but this may prove costly in the long run. Lower rates are expected to attract more buyers and potentially drive up home prices. An estimated 5.5 million prospective buyers could enter the market if the rates fell by a percent and double that number if rates fell by 2 percentage points. Competition would be beyond fierce if those numbers came to fruition, and if that happens, you've seen what happens to prices. Not to mention, the winter season typically brings more concessions and price drops, making it an excellent time for buyers to make a move in the current market. Ask us how you can get pre-approved with one of our preffered lenders. Whos' Buying? In the current market, three prevalent groups are cash buyers, first-time buyers, and circumstantial buyers and sellers (e.g., due to death, divorce, job changes). Cash buyers are not as affected by rising rates, seeing this as an opportunity. First-time buyers recognize the power of real estate as an investment and hedge against inflation. Life circumstances and investors continue to drive transactions. Ignoring the Noise Amidst the ongoing chatter about rising mortgage rates, it's essential to remember that predictions have often been wrong this year. Pay attention to time in the market rather than trying to time the market. Seek advice from trustworthy individuals with real experiences. Real estate and the stock market have historically been wealth-building assets over time. Quite honestly, if you look at who's positioning themselves in this market, its the investors who are still actively seeking opportunities. So you might ask yourself, what do they know that keeps them buying in today's market that I don't know? Bottom Line While the market is facing rising mortgage rates, there's always someone finding opportunities. We're here to guide you through these market conditions so you can confidently make informed decisions.    Please don't hesitate to reach out with any questions or for personalized advice--that's precisely why we're here.

Wait, so why would "ecnouraging inflation news" have to be endured? Good question. The answer isn't simple. Normally mortgage rates follow inflation. And when we've seen improvements in the inflation data we're all following, the markets should love that news and rates should come down. They didn't this time despite a 2-year low. Can we answer that question? Click to watch and find out...

Colorado Property Owners: Don't Overpay Your Taxes, Here's How to Protest If you're a Colorado property owner, you may have experienced the frustration of receiving a property tax bill that seems unfairly high. Early reports show some homeowners are facing as much as a 50+% hike in property taxes in one year! That's obviously a result of the rapid rise in property values experienced during the post-pandemic real estate boom of 2020-2022. Fortunately, there are steps you can take to protest your property taxes and potentially lower your bill. In this blog post, we'll share some top tips for protesting property taxes in Colorado. Understand the assessment process The first step in protesting your property taxes is to understand how your property is assessed. In Colorado, property taxes are based on the assessed value of the property, which is determined by the county assessor's office. This value is then multiplied by the mill levy, or tax rate, to calculate the amount of tax you owe. To determine the assessed value of your property, the assessor will consider factors such as the property's size, location, and condition, as well as recent sales of comparable properties in the area. It's important to review the assessor's records and make sure all of the information is accurate. Gather evidence To support your protest, you'll need to gather evidence that shows your property is overvalued. This could include recent appraisals, comparable sales in your area, and any physical defects or other issues that may affect the value of your property. In my opinion, your best bet is to protest on the basis of deteriorating condition, so if you've made a number of improvements, be prepared that your plight may fall on deaf ears with your county. It's also important to document any changes to your property since the last assessment, such as renovations or repairs, as these may affect its value. File a protest To formally protest your property taxes, you'll need to file a protest with the county assessor's office. The window to file a protest for the 2023 tax year is May 1, 2023 through June 8, 2023. For the 2023 property value assessment, your property was valued as it existed on Jan. 1, 2023, so it's important to act quickly. You can learn more on your county assessor's website. When filing your protest, be sure to include all of the evidence you've gathered to support your case. You can also request a hearing to present your case in person. Consider mediation If you're unable to reach a resolution with the assessor's office, you may be able to enter into mediation. Mediation is a process where a neutral third party helps you and the assessor's office come to an agreement on the value of your property. Mediation can be a helpful option for resolving disputes, and it may be faster and less expensive than going to court. Hire a professional If you're still having trouble resolving your property tax dispute, you may want to consider hiring a professional. A tax attorney or property tax consultant can provide guidance and support throughout the process, and may be able to help you negotiate a lower tax bill. However, it's important to be wary of scams or companies that promise to reduce your property taxes for a fee. Always do your research and make sure you're working with a reputable professional. Protesting property taxes in Colorado can be a complex process, but it's worth the effort if you believe your tax bill is unfair. By understanding the assessment process, gathering evidence, filing a protest, considering mediation, and hiring a professional if needed, you can increase your chances of success and potentially lower your property tax bill. Bottom Line If I'm being honest, you may find yourself with an uphill battle arguing with the county that your home's value has not increased over the past couple of years. However, a more arguable stance may be to question if your property taxes have truly gone up as much as the county says they have. Keep in mind that since property values have gone up at record-breaking rates over the past couple of years, it's no surprise that property taxes have also seen historic increases. Hopefully lawmakers are able to come up with a stopgap solution. If they do, it will be the third year in a row that special bills have been passed to reduce your tax burden. An overtaxed population is an unhappy population and, well, the next elections are right around the corner. FAQs How are property taxes calculated? You'll want to read up on this one. Click to see how property taxes are calculated according to Colorado.gov website. Can a real estate agent help me protest my tax bill? Yes, in that your agent may be able to provide relevant comparable properties that they might use to otherwise prove a home's value in a sale. You may want to inquire with your agent and strategize as to what properties would best serve your cause. Update (May 5, 2023): Wondering what's being done by lawmakers and State leaders to reduce Colorado property owners' tax burdens? Well, that remains to be seen, but here are three articles you may want to check out: What the 10-year Colorado property tax proposal would mean for you Governor, Democrats unveil 10-year plan to prevent Coloradans’ property taxes from rising too quickly Colorado property tax relief plan taps into TABOR taxpayer refunds