Nationwide and locally, we remain in an ultimate sellers’ market. If you’re a homeowner thinking about selling, you have a huge advantage in today’s housing market. Very few houses for sale paired with high buyer demand makes this the optimal time to sell for those who are ready to do so. 

Danielle Hale, Chief Economist at realtor.com explains, 

“For most sellers listing sooner rather than later could really pay off with less competition from other sellers and potentially a higher sales price… They’ll also avoid some big unknowns lurking later in the year, namely another possible surge in COVID cases, rising interest rates and the potential for more sellers to enter the market.”

With average days on the market down by 10% in Montezuma county and nearly 38% in La Plata, the likelihood of a swift and painless process is high. 

Montezuma County

La Plata County

As vaccine rollouts progress and we continue to see the economy recover, experts anticipate more houses will come to the market. This will inevitably strengthen competition, further validating now as the best time to sell.

Meanwhile, the median sales price for a single family home is steadily rising in both La Plata and Montezuma counties, following our state trends. This data helps us to see that we are most likely not at the “top of the market”. The market is healthy and strong and will most likely continue on these upward trends. 

Earlier this month, Westword reported that the median price for a Colorado single family home topped $500k for the first time. We have been experiencing an influx of migration to the state for several years at this point but now maybe more so than ever. The demand for housing in the west, especially in resort areas, is at its highest due to those looking to escape the big cities.

Here in the southwest region we are experiencing increases in median price as well. Montezuma county is up to $297k which is a $42k increase from last year. In La Plata county the new median price has increased to $577.5k, up $76.5k from 2020. 

Montezuma:

La Plata:

For the last few months the real estate market has been experiencing a shortage of supply. According to the stats, the amount of listings hitting the market last month in comparison to the previous year are up. Sold listings are simultaneously higher. Still, total inventory of homes for sale within the market are nearly ⅓ of typical numbers from last year. 

With inventory still impressively low, average sold prices high and total average days on the market under 100 for both La Plata and Montezuma counties, it is surely a great time to sell. 

Is now a good time to sell your home?

Yes. We are in a seller’s market. If you are a seller, this is your time. 

For various reasons, including record-low mortgage rates, pandemic related relocating, and increases in remote work options, people are looking for new homes. According to a Realtors Confidence Index Survey from the National Association of Realtors (NAR), buyer demand across the country is incredibly strong. Median home prices increased by 14% in the past 12 months, per Redfin data, with high-end single-family homes in great demand. The below map shows the mismatch between buyers and sellers by state.

Still, in light of this energetic time within the market, it is important to consider every factor when deciding to sell your home. It is important to be sure the decision is right for your specific situation. Using an experienced and knowledgeable realtor can help you to see all the pieces to the equation of selling your home. 

In a recent article from the Wall Street Journal, it is outlined which sellers may have an edge within the market and which do not. 

Downsizers and retirees holding the place for sellers with an edge. This is assuming there has been a length of time owning the home that has in turn built up a significant amount of equity. Now, with this equity, they have the availability and affordability to move somewhere more cost-effective. 

On the flip side, sellers with less of an edge are those who may not have a plan for their next step. Your home could sell tomorrow, but then where will you live? Although you may win in the sellers bracket, the problem is you will then be on the other side of the equation, facing the same low inventory and cutthroat bidding that originally boosted your profits.

So, ultimately, it is a good time to sell. Of course while keeping in mind what your next steps may be within the market.

By Jane Barden

Over the past year the housing market has been an incredible force in keeping the U.S. economy afloat. The desire to move out of densely populated cities into suburban or rural areas increased greatly. The pandemic revealed to many Americans the power of working remotely. This along with an unfortunate increase in unemployment levels caused high records of migration all over the country. This mass movement is projected to continue as people get more clarity on what post-pandemic life will look like.

Although the pandemic has played a major role in forcing demand for homeownership in the last year, it is to be noted that there are over 70 million Americans in the millennial generation that are now reaching peak home-buying years. This force will continue to power the housing market even after the wake of the pandemic.

But, what impact has the pandemic had on the financial state of these some 70 million people. Many were presented with loss of income which in turn resulted in late or missed rent payments, having an effect on highly important credit scores. While more mortgages originated in the fourth quarter of last year than in any single quarter since the Fed started tracking it in 2000, surpassing the previous high from 2003, we may see a significant change moving forward. 

Demand for homes will remain high. But, as Katy O’Donnell at Politico stated, “If there aren’t enough homes to meet that demand, the largest generation in the country won’t be able to start building equity, which will in turn delay other financial decisions. Despite making up over a third of the workforce, millennials own less than 6 percent of all U.S. wealth, according to Federal Reserve data.”

Meanwhile, inventory is expected to stay low. There still remains to be a shortage of skilled labor and increasing cost of materials. The price of lumber is up about 180 percent since April — an increase that works out to about $24,000 being added to the price of the average home, according to the National Association of Home Builders.

Ultimately, we can expect tough entry barriers for millennials. Inventory is to remain low while prices continue to soar. This may come as a concern to many.

It is no secret that remote work has, for many, become the new way of the workplace. According to Nicholas Bloom, an Economics Professor at Stanford’s School of Humanities and Sciences, 42 percent of the American workforce is now working from home full-time. He points out that “The stigma associated with working from home prior to COVID-19 has disappeared. And working remotely is now extremely common.”

For decades, Southwest Colorado has been a highly attractive place for relocation. With the surrounding natural beauty and smaller communities it has been a draw for adventure seekers as well as those who prefer a slower pace and closer knit communities. Now, as social distancing and quality of life are our minds, these aspects are helping to draw more people to the area.  

In fact, the Durango Herald recently reported that the city of Durango is specifically attracting telecommuters for relocation. In an interview with Michael French, the executive director of the La Plata County Economic Development Alliance, he told reporters, “The alliance recognizes that a certain amount of urban flight is occurring, some of it from COVID-19, some of it from other factors, but we’re seeing a number of remote workers flee urban areas to smaller, rural areas, and we want to get ahead of the trend”. French recognizes that many of these workers are highly-paid professionals such as engineers, software developers, architects, scientific researchers and other professionals. 

After applying, the city of Durango, La Plata Economic Development Alliance and the Southwest Colorado Accelerator Program for Entrepreneurs were collectively awarded a grant from Colorado’s Rural Economic Development Initiative. The money granted will have various purposes. One of which will be used to develop a recruitment plan that helps target remote workers who are most interested in moving to Southwest Colorado. 

Ultimately, the new “working-from-home-economy” will bring more people to the southwest. A Redfin survey found that 67 percent of people would want to move if they could work remotely all of the time. In our area of Colorado, the housing inventory is absolutely being impacted as homes are quickly being bought due to relocations. With demand steadily increasing, we should expect to see real estate prices to also rise.

The year 2020 brought a significant boom to the housing market across the board. With mortgage rates meeting 50-year record lows and an increase in relocations due to more remote work, sales were at all time highs. Simultaneously, home prices rose as buyer demand surged. Entering 2021 with so many changes on the horizon, what can we expect for the housing market in the US and Colorado specifically?

Inventory is expected to remain low. As the millennial generation enters into their 30’s there will likely be an increase in first-time home buyers. Relocation due to more remote workers is also predicted to continue. New home construction over the last decade has been low and, with the COVID-19 pandemic influencing labor and availability of building supplies, this trend was also sustained.

According to research from Zillow, home price appreciation will reach its fastest pace since the Great Recession, with price gains being driven by the fundamentals of supply and demand. Colorado home prices will be no exception here as Colorado continues to see more influx of residents from states all over the nation. Although slightly higher rates may seem to make ownership a little less appealing for some buyers, it is predicted that most of the country will continue to see ownership as an attractive financial bargain compared to renting. Danielle Hale, the chief economist at realtor.com reported to Forbes “we expect sales to grow 7% and prices to rise another 5.7% on top of 2020’s already high levels.”

In March of last year, the Federal Reserve took dramatic action by lowering interest rates in attempts to combat the pandemic and the expected economic fallout. As the rates are somewhat dependent on the state of the economy, it is tough to predict how long they will remain so low. Some experts believe rates will not see a change for much of the first half of the year but will eventually and inevitably increase. This making sooner, rather than later, the best time to lock in a pre approved interest rate. 

A newer development to the real estate scene has been that of the many technological advances. There are now more ways to connect with agents and to learn more about a property quickly and easily through digital media. The pandemic has played its part in this growing trend with respect to social distancing and limitations on travel when it comes to buying out of state. 3D virtual home tours have facilitated a new way of house hunting that some have found to be more accessible for shoppers.

As we approach spring, many experts are predicting the seasons will have less impact on home sales this year. The demand is high and supply low. The housing market will continue to be hot. Sales are predicted to happen quickly and more often being over listing price.  With high likelihood that the COVID-19 vaccinations will be more distributed, the economy is projected to reopen and grow. And, as more and more companies are deciding to on go remote work, there will be an increased number of buyers in the market. Without a doubt it is an incredible time to sell. Still, although it may be a more seller-friendly market, buyers will continue to have relatively lower interest rates and an eventually improving selection of homes.

Housing Inventory Reaches a Historic Shortage

The Covid-19 pandemic has undoubtably shaken many aspects of our economy as a whole, and the housing market has been no exception! With mortgage rates at a historic low and buyers demand at an unprecedented high, we are now seeing a strongly depleted inventory of homes on the market. According to Business Insider and CNBC Real Estate News,  there are 20% fewer houses on than market than this time last year and simultaneously 25% more people applying for mortgages. 

To learn more, read on here.

As demand for homes grows and supply tightens, it is an excellent time to sell. If you have been considering a move, it could be an opportunistic time. 

Message or call our office at 970-516-1759 to see how we can work together to meet your goals. 

Just In: Mortgage Rates are LOW

Earlier this month, the average rate on a 30-year fixed mortgage fell to 2.98%. According to Freddie Mac, the mortgage-finance giant, it is the lowest level in almost 50 years of record keeping. With rates this low, it allows buyers a fantastic opportunity not only to purchase a new home but to get more bang for their buck. Buyers are finding they are able to buy more home for similar monthly mortgage payments. This is great news for buyers across the board as well as sellers. The lower rates make the previously same priced home more affordable. 

For more information on current low mortgage rates see here:

Buying A Home The Most Affordable Since 2016: Low Mortgage Rates Give You Purchasing 

"Ac-Cent-Tchu-Ate the Positive," an American Songbook classic, was written by Harold Arlen, with lyrics by Johnny Mercer, in 1944. First made popular by Bing Crosby in the movie "Here Come the Waves."

Seventy-two years later, it remains as catchy as ever, and also serves as a toe-tapping reminder of the basics of home staging. Sing along, and enjoy!

You've got to accentuate the positive…

Arrange furniture, decorations and lighting so that the room clearly says, "Welcome!" After all, that's what Home is all about -- a place where we always feel welcome.

Eliminate the negative…

Clear clutter and personal items from surfaces. Remove up to half of the normal contents of a room, so it feels more spacious and inviting.

And latch on to the affirmative…

The goal of staging is to make it easy for the buyer to picture themselves as the one who lives, works, plays and dreams in the space.

Don't mess with Mister in-between …

Remind your clients that staging is a widely recognized best practice, used by motivated sellers.

You've got to spread joy up to the maximum…

First impressions are made within the first few seconds -- make it a positive one. For the right buyer, that "this is the one" feeling can be pure joy.

Bring gloom down to the minimum …

Ensure the lights are on, even in the daytime, and use higher wattage bulbs in hallways and bathrooms. Keep  curtains and blinds open, and use mirrors strategically to leverage the light.

Have faith, or pandemonium's liable to walk upon the scene …

We know not every pet creates "pandemonium," and in fact, pet-friendly houses can be a real plus. However, be sure to observe how animals respond to you as an "outsider" and advise accordingly. Pets that are calm and quiet around their owners can exhibit anxious or even aggressive behavior towards strangers.

Call our office today at 970-516-1759 to speak with an Agent / REALTOR® who can help you get your home SOLD!

Simply put, getting a "Pre-Approval" from a lender before you start looking at homes gives you more control over the home buying process, and is a sign to Sellers that you are a serious buyer. And, when you find the right home, you can make an offer right away, since you've already done the gathering of info for your lender, and you have a mutual understanding of the price range that you are approved for. 

You'll need to collect at least two years of tax returns, several months of bank statements and pay stubs, any documents that show additional sources of income.  It's a good idea to check your credit report to make things are in order, and address any errors.

Most lenders will process the pre-approval free of charge. Set yourself up for success, and talk to a local lender today, then let's go look at some houses and get you in your 2020 home!