As we reported last month, the 2015 real estate market continues to perform at very high and dynamic levels. In fact, as reported by CoreLogic, Colorado led the nation in January with a 9.1% increase from the previous year. The national average was 5.7% during the same period.
As per usual, real estate prices track job growth, inventory, and the financial outlook of the public. Colorado has very strong job growth, approximately 8% to 9%, in the last 12 months. Further, as stated by the CoreLogic CEO, “many homeowners have taken advantage of low rates to refinance their homes, and until we see sustained increases in income levels and employment, they would be hunkered down so supplies may remain tight.”
As we have seen in our area, not only are home inventories low, but so are rental units. Our buyer clients continue to express frustration with low inventory and no places to rent. As with every situation, these factors present great opportunity.
Certainly, home inventory is low; however, there are homes on the market. Prices are going up and inventory tends to move quickly. So, if you are thinking of selling your home, this could be a great market for you.
No matter how you think of the housing market, it is driven by cycles and understood by the motivation of sellers. young homeowners often decide to sell because of job relocation or, as their family grows, they need a larger home; some older homeowners decide to downsize because they are empty-nesters and ready to retire. We call these “life-cycle motives,” which are cycles not necessarily related to the economy. At the same time, these motives are at play; economic patterns cause prices to rise when the stock markets and employment figures are strong, and decrease when the public is feeling nervous about the economy.
As prices go up, we hear about a “housing bubble” and when prices start going down, we hear about the “bottom of the market.” No matter where we are in these cycles, homes are still sold. It’s all about timing with buyer and seller needs.
I predict more homes will go on the market as we approach the end of the school year. The MLS recently reported a 10% increase of inventory for February. Values are climbing and buyer demand remains strong. The question home sellers ask is, “am I really ready to sell?”
If you want to sell, I recommend you do not wait much longer. With inventory low, you have less competition and sellers are obtaining multiple offers on prime condition homes.
If you are a buyer, and find yourself frustrated competing with multiple offers, knowing interest rates are predicted to rise, I encourage you to think outside the box. Consider looking at “expired” or “withdrawn” listings to see if they still want to sell. Also, you should consider over-priced listings. Most sellers tend to be negotiable after sitting on the market. Check out rental listings to see if owners would consider selling. We have been successful helping buyers purchase homes that are listed for rent. Interview and team-up with a Realtor® who is a Certified Mountain Area Specialist (CMAS) so you have an expert working FOR you.
If you are a seller, we will be happy to help you understand your home’s current worth and how to position your home to maximize value. If you are a buyer, we will happy to help you strategize how to buy your dream home and answer your questions about this real estate market. You may also visit our website at www.AlarisProperties.com for many tips, information, suggestions, and helpful articles about the real estate market.
At Alaris Properties, LLC, we know that “Knowledge is Key” and we pride ourselves in going far beyond the call of duty, doing more than others expect. We believe this defines excellence. It comes from striving for and maintaining the highest standards. It comes from looking after the smallest details and going the extra mile. Excellence means doing your very best in everything, in every way.
We are here to help you with all your real estate needs.
Jon P. Terry, JD, CMAS, Realtor®
Alaris Properties, LLC
Past Chair and Member of the Mountain Metro Association of Realtors®