Housing Forecast:
What’s Ahead in 2020?

2020 National Housing Market Overview
• Home price appreciation will flatten, with a forecasted increase of 0.8 percent
• Inventory will remain constrained, especially at entry-level prices
• Mortgage rates are likely to bump up to 3.88 percent by the end of the year
• Tight inventory and rising mortgage rates will lead to decreasing sales
• Buyers will continue to seek affordable housing

Supply and Demand
At the start of 2019, 2-out-of-3 national markets were seeing inventory growth. At year’s end, only 1-in-10 were seeing growth. In 2020, the market will continue to struggle with an inadequate supply of homes to meet buyer demand, and this inventory shortage has the potential to reach a historic low level. Nationally, the luxury market is cooling and builders are expected to shift to midlevel pricing. According to Matthew Gardner, economist, builders aren’t keeping up with demand for new housing stock because costs associated with land, labor, materials, and governmental regulation, are all increasing. “Twenty-five cents of every dollar spent on home construction is regulatory costs,” says Gardner. Overall buyer demand will remain very robust, particularly at the entry level. As a group, Millennials (born 1981-1997) will account for more than half of all mortgage originations in 2020.

Home Prices
At the national level, prices are estimated to tick up only 0.8 percent. In northern Colorado, analysts predict an annual average price growth close to the historic average of 5.5 percent due to continued in-migration and job growth exceeding many areas of the nation.

Housing Affordability
Over the past decade, demand for downtown living increased, driven by the
desire of Millennials for proximity and lifestyle amenities. As Millennials mature and start families, they are making a noticeable move toward affordable housing. The desire for affordability will continue in 2020, fueled also by Baby Boomers retiring and seeking sunnier weather, lower taxes and a lower cost of living.

Buyers
Compared to recent years, Buyers have less competition and more leverage. First-time buyers will continue to struggle with affordability, even with favorable mortgage rates, as entry-level inventory remains constrained.
Economist Matthew Gardner says 36.8 percent of homeowners in Larimer County and 29.5 percent of homeowners in Weld County have equity in excess of 50 percent of their home values. When these homeowners become move-up buyers, they acquire homes with more of the features they want without increasing their mortgage payment, and add inventory to the market with their home sale. First-time investors will use home equity or savings to buy rental
properties.

Sellers
Flattening price growth and slowing activity will require patience and thoughtful pricing on the part of sellers. Nationally, sellers of homes priced for entry-level buyers can expect the market to remain competitive and prices to stay firm. At the upper end of the price range, properties will take longer to sell, and incentives will become more common. Overall, homes that are prepared for the market and priced correctly will reap the benefits.
How can this year’s market opportunities support your real estate
goals? Give me a call and let’s discuss your options!

Source: Loveland Reporter Herald, REALTOR.com

Why Sell Your Home in the Winter?

Nobody buys or sells a home in the winter. Right? Wrong!

According to Dave Ramsey, about 19% of all homes sold between September 2018 and August 2019 closed between December 2018 and February 2019.

Here are some reasons to sell when the air gets chilly:
The Internet Has No Seasons – It’s estimated that 93% of buyers use the
internet during their home search. Instant access to property listings has had an impact on the typical seasons buyers look for homes. While spring is still the hottest home-buying season, serious home buyers are always on the lookout.
Fewer Sellers – Come spring, more sellers will enter the market. During the winter, the number of sellers on the market is limited. Based on 2018 statistics, Dave Ramsey estimates there’s 12% fewer listings during the winter months which means less competition for sellers!
Winter Buyers Mean Business – Buyers trudging around in freezing weather or breaking away from their holiday schedule to look at your home are likely serious. Winter buyers often have a deadline, whether it’s an expiring lease, or a contract on their current home.
Time Off – While the holiday schedule can be hectic, many people also have more time off during the holidays. That means more time for browsing their favorite home apps, and scheduling home showings.
Getting Tax Breaks Before Year-End – Some winter home buyers are motivated to capture the tax benefits of buying a home before year-end. This may include tax deductions such as mortgage interest, private mortgage insurance (PMI) premiums, and real estate taxes. Investors may be motivated to close before the end of the year to replace a property that recently sold.
Tips for Selling in the Winter:
• Keep it simple. If you’re selling around a holiday and have decorations up, make sure they accent – not overpower – a room. Less is more.
• Crank up the cozy. Light a fire in the hearth, play soft holiday music in the background, and prepare fresh-baked goods or mulled cider for guests.
• Shine a light outside. Winter days get dark early. Brighten your home’s exterior with outdoor spotlights, including the area where agents and buyers are accessing the lock box and entry door.
• Avoid a winter wonderland. Buyers want to see details of the house, not a blanket of snow. Make sure you have clear-weather photos of your home.

Call me to talk about the reasons to sell your home this winter!
www.daveramsey.com

5 Reasons to Sell This Fall

1. Demand Is Strong
The latest Buyer Traffic Report from the National
Association of Realtors (NAR) shows that buyer demand
remains strong throughout the vast majority of the country.
These buyers are ready, willing, and able to purchase…and
are in the market right now.

2. There Is Less Competition Now
Housing inventory is still below the 6-month supply that
indicates a normal market. In some cases, homeowners have
been reluctant to list their homes during the last few years,
fearing they would not find a replacement home. For now,
there are not enough homes to satisfy the number of buyers,
and buyers are competing for available homes.
As home values continue to appreciate, more homeowners
are seeing their home equity increase, and gaining confidence
to make a move. When these homeowners decide to sell, the
inventory of available homes will increase. Buyers will have a
larger selection of homes from which to choose and sellers
will be competing for these buyers.

3. The Process Will Be Quicker
Today’s competitive environment has forced buyers to
strengthen their negotiating position by obtaining preapproval
for their mortgage financing. Buyers know what
they can afford before shopping for a home. According to
Ellie Mae’s latest Origination Insights Report, the average
time needed to close a loan is 43 days.

4. It’s a Good Time to Move Up
There are buyers looking for their starter home, just as you
may be considering a move up. If you’re considering a larger
or upgraded home purchase, you will find increased
inventory for sale at higher price ranges. As prices continue
to escalate, delaying the purchase of your next home may
require a larger down payment and higher mortgage.

5. It’s Time to Move on with Your Life
Look at the reason you decided to sell in the first place. Is it
worth waiting for more money or is it more important to
have the freedom to go on with your life? Only you know the
answers to these questions. Perhaps the time has come for
you and your family to move on and start living the life you
desire.

Housing Market Predictions

The year has so far been a promising one for would-be home
buyers as home prices started to level off and mortgage rates
dipped to unexpected lows. While first-time buyers can expect less competition than last
year, it’s still very much a seller’s market in most places. But
overall, it’s a good time to move forward with a home
purchase. Here’s what industry experts predict for the remainder of
2019 and beyond.

Millennials will drive the market.
Consider it the year of the first-time home buyer.
More than half of all mortgages originated by Fannie
Mae and Freddie Mac went to first-time buyers last
year, and with Millennials hitting their prime
home buying years, those numbers are only
going to grow.

Inventory will improve –but not by much.
Total housing stock is well below
the nation’s pre-recession
volumes. Although recent data
shows that inventory is rising for starter homes and trade-up
properties, it’s likely not enough to satisfy demand. Housing
supply has increased compared to last year, but overall
inventory levels are still quite low, especially in the lower
price ranges.

Home prices are headed up.
Prices have been on the rise since 2012, outstripping their
pre-recession peaks early last year. The slowdown in price
appreciation and the escalation of wage growth is helping to
improve affordability for many would-be buyers. Still,
experts warn that home prices aren’t done rising yet.
Increasing demand and the limited inventory of homes for
sale suggests continued price appreciation.

Mortgage rates will stay low.
Mortgage rates recently hit their lowest point in three years,
averaging 3.80%, according to Freddie Mac, causing a surge
of refinancing. Experts expect that rates could go even lower.
Experts predict that the 30-year, fixed-rate mortgage rate will finish
out the year between 3.9% and 4.1% – lower than 2018’s full-year
average of 4.54%.

Buyers can take their time.
Despite an influx of younger buyers,
competition isn’t going to be as stiff as in years
past. National data shows that just 15% of offers
in April sparked a bidding war – down dramatically
from 60% in April, 2018. Nationally, the overall inventory of available homes is
expected to remain stable this year, so buyers shouldn’t feel
as pressured to move quickly.

Some markets are better than others.
Overall, the signs aren’t overwhelmingly pro-buyer or proseller.
Industry experts don’t foresee an extreme dip or a
major spike in prices or rates. And at the end of the day,
housing conditions vary by market.
Give me a call to discuss our local market conditions and
your plans to buy or sell!

Source: Aly J Hale, contributing writer for Forbes

10 Tips For A Smooth Move

1. In home survey — A reputable moving company will
take inventory of all your belongings, including items in
storage areas like cabinets and garages. They will ask
what goes on the truck and what stays behind to
determine the bulk and weight of your move.
2. Don’t pay a large deposit — You should only pay upon
delivery. If you pay in advance, you have no control over
when you will see your belongings again.
3. Licenses — Confirm that your interstate moving
company holds a valid operating authority with the
Federal Motor Carrier Safety Administration.
4. Get references — Ask your friends, family and work
colleagues. Check online resources such as
www.moving.org. Ask the mover for names of recent
customers in your area and contact them.
5. Unexpected packing costs — Watch for inflated prices
for boxes and packing materials. Make sure that labor
costs are in your estimate.
6. Beware of extra fees — Ask if there are extra charges for
the movers having to negotiate stairs and elevators,
navigate narrow streets, and other additional fees that
may apply to your situation.
7. Never sign a blank moving contract — Get everything
in writing including the estimate, extra fees, and your
pick-up and delivery dates. Read your contract and
inventory form to make sure all of your belongings are
listed.
8. Don’t accept the “guaranteed” quote — There are
three kinds of moving contracts: 1) A binding estimate
specifies in advance the precise
cost of the move based on the
services you request. 2) A
non-binding estimate is
prepared in advance to give
you a general idea of the cost
of your move, but the exact
cost is not determined until
your shipment is loaded on
the truck and weighed. 3) A
non-binding to exceed estimate
insures that the estimate is the
maximum you’ll be required
to pay for any services
rendered.
9. Report any problems —
On moving day, open
boxes and check for
damage. Note any
problems on the mover’s
bill of lading before signing it.
10. Valuation protection — Full (Replacement) Value
Protection: Under this comprehensive plan, an article that
is lost, destroyed or damaged while in your mover’s
custody will be repaired or replaced according to the
protection you have selected. Minimum Liability: The
mover assumes liability for no more than 60 cents per
pound per article.
When it’s time to move, contact me for a free guide with
Answers to Questions about Moving!
Source www.moving.com

Housing Forecast:
What’s Ahead in 2020?

Why Sell Your Home in the Winter?

Nobody buys or sells a home in the winter. Right? Wrong!

5 Reasons to Sell This Fall

Housing Market Predictions

10 Tips For A Smooth Move

About RE/MAX Advanced

970.221.5995

Quick Search Links