Denver On Speed

According to the Denver Business Journal, last month Denver was the fastest selling housing market in the nation, with nearly half of homes on the market going under contract in just 6 days, down from an average of 11 days from Listing to Under Contract at the same time last year.

If you are listing your home for sale and staying in the Denver Metro Area, you may want to consider putting the cart before the horse, and pursuing your next home before you sell your current home.

Things to consider as a Seller in a fast-paced market:

  • Talk to your Realtor about including a contingency clause in your Contract to Buy & Sell; the Closing Date on the sale of your home will be determined by the forthcoming Closing Date on your next home.
  • Even if you aren’t comfortable making an offer before your home is Under Contract, begin searching for your next home (if you’re staying in the area) as soon as you begin preparing to list.
  • Have a Plan B — and maybe a Plan C for good measure.
    • If your home sells before you secure your next residence, can you stay in a residential hotel, or crash with a friend for a bit?
    • If you need to rent while you continue your search, what will this cost?
    • Where will you store your stuff if it takes time to land your next home?
    • Will temporary housing affect your commute?
    • Will you be able to rent within your current school district, if it takes time to find your next house?

As a Seller, the Denver housing market is highly in your favor, and it’s an exciting (and potentially profitable) time to sell your home. If you’re staying in the area and looking to upsize, downsize or transfer to another area of the city, you’ll want to work with your Realtor to plan the details of your “next” so every aspect of your sale, and the transition that follows, is as close to ideal as possible.

Thinking about making a move? In this marketplace, you’ll need an expert guide! Let me know how I can help.

Jack Meyers

The Meyers Group
jackestate@aol.com 
303.263.3050
Twitter: @jackestate

A Denver Real Estate Health Check

According to a recent Denver Business Journal article, a report by New York-based financial services firm SmartAsset ranks Denver 9th in the nation among the healthiest urban housing markets. Factors analyzed for the study include stability, risk, fluidity (ease of sale), and affordability.

This is awesome news for local homeowners and those considering investing in the Denver Metro housing market. A couple of nifty highlights accompanying the report:

  • Homes in Denver are selling faster than anywhere else in the country at an average of 8 days from Listing to Contract.
  • The report found only 3.1 percent of Denver homes were decreasing in value, against a national average of 12.5 percent.

The market is hot, but that doesn’t mean you can afford to rest on your laurels. Maximizing your home’s potential as a Listing still matters, and experienced representation is vital for Buyers, who are up against a lot of competition in a market favoring the Seller.

If you are seeking a guide in our fast-paced marketplace or know someone who could use a hand, I’m happy to help. Give me a buzz or drop a line to find out what your house is worth in today’s market, or to plan the next move in your home search.

Jack Meyers

The Meyers Group
jackestate@aol.com 
303.263.3050
Twitter: @jackestate

How Will the Fed’s News Affect You?

So here you are, going about your business. Maybe you own a home, maybe you’re renting. Maybe you’re looking for the perfect house, thinking about selling the home you live in now, or pondering a refi.

So what will happen to mortgage rates? Although the Fed’s recent rate hike of .5o -.75% on short term loans won’t have a direct impact on long term mortgage rates (most borrowers still go for a traditional 30 year mortgage), lenders typically raise rates in advance of future increases. The Fed has promised to continue to raise rates in accordance with the strong state of the economy, and based on this information, lenders will raise long term mortgage rates.

Rates hit historic lows of 3.5% following the financial crisis, and you aren’t going to score a rate like that in the near future. The good news is though, rates are still awesome: 4.3% right now, on average. One interesting thing that happens when rates rise – because this may cause fewer people to refinance or make a home purchase, lenders sometimes start to relax their borrowing requirements.

Other factors that might impact your monthly finances: rising credit card rates, higher student loan payments and potentially higher car loan expenses…

teeter

So, bottom line, here’s what you need to know: interest rates are STILL awesome! And with a strong economy, chances are good you have a decent job, earning a decent wage, with pretty good job security. The Fed’s increase in short term rates means the economy is strong, and now is probably a great time for you to reach out to your favorite real estate expert to start your search for your right-size home – whether that’s an upsize, downsize, or finding a home that’s all yours.

Drop me a line! I’d love to help you search for a place to call home.

Jack Meyers

The Meyers Group
jackestate@aol.com
303.263.3050
Twitter: @jackestate

Help Wanted: Denver Construction Workers

Unemployment rates are a quirky thing…     construction-dude

Too high a rate of unemployment and the economy suffers as those without jobs are unable to make purchases; when unemployment rates are high, the real estate market and many other markets can slump, affecting the entire economy and even those blessed with stable, adequate or better employment.

Industries can also suffer when unemployment rates are too low; employment can fall so low it is difficult to find qualified help.

Such is the case in the construction industry in Colorado. While an ultra-low unemployment level in the industry nationwide is something to celebrate, Colorado’s level of construction unemployment is less than half that of the national level. Add this factor to the ever-increasing demand for housing across Metro Denver, and the result is an industry bottleneck. Homes continue to be in demand in our area, there is not enough supply, and there aren’t enough tradesmen available to add to existing inventory.

According to recent Denver Post coverage of the topic, the lack of a qualified construction workforce threatens to slow the state’s incredible economic momentum. It’s a catch 22 for construction workers outside the state who might consider relocating to Colorado. The likelihood of landing work in the field is high, but in part because of the trickle of new construction, so are housing prices – and availability remains scare.

And so – we wait. Wait for new construction projects including apartments and homes, hotels and business infrastructure, to carry forward inch by inch. Wait for a new generation of able-bodied construction workers to rise – choosing valuable, meaningful work in the trades over a “traditional” college education.

Interested in talking shop – about the building industry, the Denver real estate market or your next home purchase or sale? I’m here to help in any way I can.

Jack Meyers

The Meyers Group
jackestate@aol.com
303.263.3050
Twitter: @jackestate

Trump’s Presidency + Real Estate

How might the president elect’s policies affect

U.S. Real Estate?

A few day’s ago, Forbes contributor Lawrence Yun hypothesized how a Donald Trump White House may impact homeowners, home sellers and home seekers in terms of interest rates, home listings, purchases, taxes and more. I encourage you to read the article in full, and I’ll highlight a few key points below.

election

  • While the stock market has had a few ups and downs following the unexpected results of the presidential election, the economy will likely see a boost the first half of 2017 as tax cuts are implemented and government spending increases to reflect the new president’s plans for increased infrastructure. Long term, this increase in economic growth will likely contribute to rising interest rates. 
  • Changes to Dodd-Frank financial regulations may remove cost restrictions currently impacting smaller banks. The result would be greater lending access and an increase in new home building activity. Deregulation does carry the risk of a return to the faulty lending practices that led to the last recession if big banks are allowed the freedom to operate unchecked.
  • Regulatory and zoning issues have helped push the cost of newly constructed homes significantly higher than existing homes. Lifting the burden of these regulations would lead to lower purchase prices on new home construction.
  • Fannie and Freddie could be on shaky ground. These institutions have made major mistakes in recent history, but have cleaned up their respective acts and are responsible for adding stability to the lending marketplace. This point (#7) of Yun’s article deserves a full read.

Whether you voted to “Make America Great Again” or be “Stronger Together,” this nation is in for a fair bit of change over the next four years. If you are planning to buy, sell or refinance a home for personal or investment purposes, you’ll want to know the lay of the land and work with an expert to minimize negatives and take advantage of every opportunity available to you. I hope you’ll give me a call if I can be of service.

Jack Meyers

The Meyers Group
jackestate@aol.com
303.263.3050
Twitter: @jackestate

Where Do They All Come From?

We know Denver is a magnet for people, and I’ve known friends to utter during mid-winter traffic jams, “It’s those Californians! They don’t know how to drive in snow, and they slow the rest of us up.”

Do you ever stop to wonder where Metro Denver’s population growth comes from? As a Realtor helping people buy and sell one of their largest financial purchases in life, I’m a fan of people in general: native Coloradans (I’m one of those myself), transplants from other counties, out of state or from all over the world. I’m excited to welcome them all to our beautiful community.

So where do all of these Denver-area newbies actually come from?

According to IRS tax return records from 2014, Colorado experienced more residents-on-the-move than any other state in the nation. Over half (54%) moved from other Colorado counties to the Denver Metro area (including Boulder.) Forty six percent of Denver area transplants came from outside the state with the largest number reporting from California, Texas, Florida, Illinois and Arizona. Interestingly, when you subtract the number of Colorado residents who moved to a particular state from the number of residents from that state moving to Colorado, statistics show that Illinois gave up the most people to a Colorado move.

When people pack up and leave the state, they are popping up in greatest number in Texas, California, Florida, Arizona and Washington state. Sounds like we’re making a lot of state-to-state household trades.

Moving Day BW

So next time you don’t love how a fellow driver handles the snow (or any other road conditions), consider they are just as likely from another part of the state as they are from out of state, smile, wave and think about how lucky you are to live in the beautiful Denver area. There now – doesn’t sharing the road feel good!

Contact me for help planning your move to the Denver Metro area or a home listing to make a move across town, across the state or across the globe. I’m here to help.

Jack Meyers

The Meyers Group
jackestate@aol.com
303.263.3050
Twitter: @jackestate

Denver Tops the List

Denver on the Map

The U.S. News and World Report this month ranked Denver at the top of the list of 100 best places to live in the USA!

Rounding out the top 5 cities are:

  • Austin, TX
  • Fayetteville, AR
  • Raleigh-Durham, NC
  • Colorado Springs, CO

For perspective on what this ranking actually means, consider the rank on this list of San Diego, CA – a city purported by many to be “the best place they’ve ever lived” by many (just ask anyone who’s lived there!) and a place former residents often long to return to. Sunny San Diego ranks 16th on the list – a full 15 spots down from Denver. That’s pretty incredible.

Factors used to determine this list include home values, the job market, average commute times, desirability and net migration (whether people are actually moving to a particular metro area.)

So, Denver – the rest of the country likes us. They really, really like us! And all the factors affecting our rank on this list are what continue to draw new residents to the Denver Metro area, lending additional strength to the Seller’s Market we continue to experience in Real Estate. According to the Denver Post, Denver’s population jumped by 101,000 between July 1, 2014 and July 1, 2015, and was outpaced nationally only by continued record growth levels in North Dakota due to the localized oil boom happening there.

Right now is an incredible time to sell a house – the market is strongly in your favor. And if you are on the hunt to find your next home in Denver or any surrounding suburb, you’ll need an experienced guide to help you negotiate the best deal possible, because there is a lot of competition and too few properties for sale for the demand we are seeing.

If you’re thinking about relocating to Denver or moving from one end of our fair city to another, drop a line. I’ve been helping people buy and sell Denver area real estate for over 21 years, and I’d be pleased to help you navigate our real estate marketplace.

Jack Meyers

The Meyers Group
jackestate@aol.com 
303.263.3050
Twitter: @jackestate