Summer Home-Buying Season May Be Much Hotter Than Expected

Summer Home-Buying

Summer home-buying season may be much hotter than expected!

Until recently, the prognosis for the housing market wasn’t great. With the economy in a free fall, some home sellers took down their “For Sale” signs and some buyers chose to wait out the pandemic. It was like the pause button was pushed on the normally bustling spring home-buying season.

But as states reopen their economies, the summer real estate market just might turn out to be hotter than anticipated. According to the Mortgage Bankers Association,
mortgage applications in May for home purchases increased compared to May 2019, rising an impressive 8.7% as buyers raced to lock in record-low mortgage rates.

Danielle Hale, Chief Economist for realtor.com, says “It’s a sign that we are going to see a delayed seasonal bump in home sales. There’s pent-up demand from people who
weren’t able to get out in the early part of the spring.”

“The pandemic really hit us right at the time when home-buying activity really ramps up,” says Joel Kan, economist for the Mortgage Bankers Association. That’s resulted in “a late home-buying season.”

The recovery may be due in part to more sellers listing their homes as cities and states loosen restrictions.

And, low mortgage rates are enticing buyers back into the market according to Lawrence Yun, chief economist of the National Association of Realtors®.

Plus, there is still a severe housing shortage, which has only gotten worse during the public health crisis. Sellers have pulled their properties off the market or are delaying listing until the virus is under control. That can make it tough for buyers to find the right properties.

“Buyers may be surprised by how competitive the market is,” says Hale.

This could result in higher prices this summer, as there could be more folks competing for homes than homes for sale. “Given the strength of this recovery, home prices will probably rise about 4% to 6% in 2020,” predicts NAR’s Yun.

If the coronavirus resurges in the fall and the economy continues to falter, prices could flatten or even dip a tiny bit by the end of the year. They’re not likely to plunge like
they did during the Great Recession, though, as demand is simply too high.

“We have so many millennials who are at ages when they want to settle down and they want to buy a home, and that really helps keep the market busy,” says Hale.

Give me a call when you’re considering your next home sale or purchase! https://ftcollinshomes.com/contact-us/

Source: Clare Trapasso, Senior News Editor of realtor.com®

Campgrounds Are Now Open!

Campgrounds Are Now Open!

Many campgrounds that had been closed since March 26 due to the coronavirus pandemic opened in late May, according to Colorado Parks and Wildlife, including the
following locations:
Chatfield, Cherry Creek, North Sterling, Boyd Lake, St. Vrain, Lake Pueblo, and Lory.

Park officials said cabins, yurts, tipis, group facilities and other reservable day-use facilities remain closed until further notice.

Fishing, hiking and biking continue to be allowed at state parks not open to camping.

Visit www.cpwshop.com for the most up-to-date information regarding camping availability at each park, and further restrictions. Larimer County Natural Resources opened camping May 1 to those with existing reservations and self-contained hard-sided units with restrooms. No tent camping is allowed. All restrooms, shower rooms, cabins, tipis, group picnic sites and pavilions remain closed.

For more information, visit https://www.larimercamping.com/

Rocky Mountain National Park was scheduled to open in late May after closing March 20 to all activities, including driving through the park

Portions of Moraine Park and Glacier Basin campgrounds will open in early June. For information, visit https://www.nps.gov/romo/index.htm.

Source: Miles Blumhardt, Coloradoan

How Covid-19 Is Changing The Real Estate Landscape

Real estate sales are continuing during the pandemic.

As stay-at home orders keep more Americans physically distant, the real estate industry is rushing to find ways to show properties for
those wanting to pursue a home purchase.

The use of online virtual tours has quickly increased and in some areas, agents are conducting private video showings.

Virtual tools give buyers a feel for homes — and are leading to offers.

A quarter of REALTORS® recently surveyed by the National Association of REALTORS® reported that their clients put contracts on homes without physically seeing the property.

Buyers who are looking for a home are being very decisive and acting quickly.

While offers are continuing for now — albeit in different ways — the real estate industry warns a slowdown is inevitable while the economy is shut down.

“Expect second-quarter home sales activity to slow down with the broad observance of stay-at-home orders, but sales will pick up when the economy reopens as many potential home buyers and
sellers indicate they’re still in the market or will be in a couple of months,” says NAR’s Chief Economist Lawrence Yun. “Home price remain stable as deals continue to happen with the growing use of new technology tools.” Yun further commented that as of mid- April, 10% of REALTORS® reported the same level or more business activity following the economic lockdown.

The April survey indicated that one-third of REALTORS® reported no closing delays from the COVID-19 outbreak. For those who did report delays, the top reasons cited were delays due to financing,
appraisals, and home inspections.

The entire home buying process is being adapted. A home inspector may be on the premises alone and video chat with buyers and their agents to review the inspection assessment. Some appraisals are being completed without a physical visit to the property.

The final walkthrough prior to closing may be conducted via video, or by allowing buyers to walk through on their own. Buyers are advised not to touch anything, maintain a distance of at least six feet from one another, and wash their hands when entering and exiting the house.

Here is an overview of recent changes occurring in the real industry:
• Increased use of virtual tours of listings
• Virtual showings
• Earnest money paid by wire transfer
• Virtual inspections with electronic delivery of reports
• Increased use of exterior only appraisals
• Electronic signing of contract and closing documents
• Drive through closings
• Remote Notary

Let’s talk about your options for buying or selling your home in the current market!
Source: National Association of REALTORS, REALTOR Magazine

Things To Do While You’re Stuck Inside

Things To Do While You’re Stuck Inside

• Go for a hike (https://www.larimer.org/naturalresources/parks)
• Go to a park (if not crowded)
• Go for a drive
• Catch up with friends, on the phone or on social media
• Read a book
• Piece together a puzzle
• Try a new recipe
• Play a board game
• Draw
• Do a craft
• Organize your home
• Take a virtual tour of museums around the world (www.artsandculture.google.com)
• Find an on-line workout
• Have a picnic in your living room or at a park
• Try a new recipe
• Catch up on podcasts
• Find an online learning class
• Find live events on Facebook
• Declutter a room and prepare a box to donate at a future time
• Start inside seed boxes for springtime planting
• Start a journal or blog
• Watch a long movie that you haven’t had time to watch
• Learn a foreign language online
• Finish your taxes if they’re not already done
• Write notes and letters to family and friends
• Write birthday cards ahead of time
• Read the magazines piled up on your desk
• Do coloring books
• Do easy home repairs
• Clear out your camera roll
• Buy gift cards from your favorite restaurants and coffee shops
• Have a Scrabble tournament
• Rearrange your furniture
• Update your will
• Donate money to food banks
• Get lots of sleep

Buying a Home Young is the Key to Building Wealth

Buying a Home Young is the Key to Building Wealth

Homeowners who purchase their homes before the age of 35
are better prepared for retirement at age 60, according to a
new Urban Institute study. The organization surveyed adults
who turned 60 or 61 between 2003 and 2015 for their data
set.

“Today’s older adults became homeowners at a younger age than
today’s young adults. Half the older adults in our sample bought
their first house when they were between 25 and 34 years old, and
27 percent bought their first home before age 25.”

The study goes on to show the impact of purchasing a home
at an early age. Those who purchased their first homes when
they were younger than 25 had an average of $10,000 left on
their mortgage at age 60. The 50% of buyers who purchased
in their mid-twenties and early-30s had close to $50,000
left, but traditionally had purchased more expensive homes.

Many housing experts are concerned that the
homeownership rate amongst millennials, those 18-34, is
much lower than previous generations in the same age range.
The study results gave a great reason why this generation
should consider buying instead of signing a renewal on their
lease:

“As people age into retirement, they rely more heavily on
their wealth rather than their income to support their
lifestyles. Today’s young adults are failing to build housing
wealth, the largest single source of wealth, at the same rate as
previous generations.

While people make the choice to own or rent that suits them at a
given point, maybe more young adults should take into account the
long-term consequences of renting when home ownership is an
option.”

Bottom Line
If you are one of the many young people debating whether buying
a home this year is right for you, or you know a young person who
can benefit from buying their first home, contact me to explore
available options!

Source: Keeping Current Matters

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