Think Twice Before Waiting for 3% Mortgage Rates

Think Twice Before Waiting for 3% Mortgage Rates Simplifying The Market

Last year, the Federal Reserve took action to try to bring down inflation. In response to those efforts, mortgage rates jumped up rapidly from the record lows we saw in 2021, peaking at just over 7% last October. Hopeful buyers experienced a hit to their purchasing power as a result, and some decided to press pause on their plans. Read more

What Past Recessions Tell Us About the Housing Market

What Past Recessions Tell Us About the Housing Market Simplifying The Market

It doesn’t matter if you’re someone who closely follows the economy or not, chances are you’ve heard whispers of an upcoming recession. Economic conditions are determined by a broad range of factors, so rather than explaining them each in depth, let’s lean on the experts and what history tells us to see what could lie ahead. As Greg McBride, Chief Financial Analyst at Bankrate, says: Read more

Key Terms To Know When Buying a Home [INFOGRAPHIC]

Is It Time To Sell Your Second Home?

Is It Time To Sell Your Second Home? Simplifying The Market

During the pandemic, second homes became popular because of the rise in work-from-home flexibility. That’s because owning a second home, especially in the luxury market, allowed those homeowners to spend more time in their favorite places or with different home features. Keep in mind, a luxury home isn’t only defined by price. In a recent article, Investopedia shares additional factors that push a home into this category: location, such as a home on the water or in a desirable city, and features, the things that make the home itself feel luxurious. Read more

Today’s Housing Market Is Nothing Like 15 Years Ago

Today’s Housing Market Is Nothing Like 15 Years Ago Simplifying The MarketThere’s no doubt today’s housing market is very different than the frenzied one from the past couple of years. In the second half of 2022, there was a dramatic shift in real estate, and it caused many people to make comparisons to the 2008 housing crisis. While there may be a few similarities, when looking at key variables now compared to the last housing cycle, there are significant differences. Read more

Top Reasons to Live in Denver, Colorado

  1. Scenic location: Denver is located at the base of the Rocky Mountains, offering easy access to outdoor recreational activities such as hiking, skiing, and biking. The city is also known for its 300 days of sunshine per year.
  2. Growing job market: Denver has a diverse and growing economy, with many job opportunities in industries such as technology, healthcare, and education. The city has also been named one of the best places for business and careers by Forbes.
  3. Cultural attractions: Denver is home to a variety of museums, art galleries, and performing arts venues, as well as a thriving music and dining scene. The city also plays host to several annual festivals and events such as the Great American Beer Festival and the Denver Film Festival.
  4. Affordable cost of living: Compared to other major cities on the US, Denver has a relatively low cost of living, making it an attractive place to call home.
  5. Active community: Denver is known for its active and outdoorsy community, with many residents participating in activities such as running, cycling, and yoga. The city also has a well-maintained network of parks, trails, and bike lanes.
  6. Good Education System: With a lot of great options for public, private and charter schools, Denver is a great place to raise a family and also for students to pursue higher education.
  7. Proximity to other major cities: Denver is located in a convenient spot that allows you to easily visit other major cities in the region such as Boulder, Fort Collins, Colorado Springs and also have easy access to major national parks such as Rocky Mountain National Park, and easy access to neighboring states like Wyoming and Kansas.

All in all, Denver has something to offer for everyone, it’s a great place to live work and play, with a mix of urban and natural beauty and a vibrant culture that will give you the perfect balance of peace and adventure.

 

The Truth About Negative Home Equity Headlines

The Truth About Negative Home Equity Headlines Simplifying The Market

Home equity has been a hot topic in real estate news lately. And if you’ve been following along, you may have heard there’s a growing number of homeowners with negative equity. But don’t let those headlines scare you. In truth, the headlines don’t give you all the information you really need to understand what’s happening and at what scale. Let’s break down one of the big equity stories you may be seeing in the news, and what’s actually taking place. That way, you’ll have the context you need to understand the big picture.

Headlines Focus on Short-Term Equity Numbers and Fail To Convey the Long-Term View

One piece of news circulating focuses on the percentage of homes purchased in 2022 that are currently underwater. The term underwater refers to a scenario where the homeowner owes more on the loan than the house is worth. This was a huge issue when the housing market crashed in 2008, but it much less significant today. Media coverage right now is based loosely on a report from Black Knight, Inc. The actual report from that source says this:

Of all homes purchased with a mortgage in 2022, 8% are now at least marginally underwater and nearly 40% have less than 10% equity stakes in their home, . . .”

Let’s unpack that for a moment and provide the bigger picture. The data-bound report from Black Knight is talking specifically about homes purchased in 2022, but media headlines don’t always mention that timeframe or provide the surrounding context about how unusual of a year 2022 was for the housing market. In 2022, home price appreciation soared, and it reached its max around March-April. Since then, the rate of appreciation has been slowing down. Homeowners who bought their house last year right at the peak or those who paid more than market value in the months that followed are more likely to fall into the category of being marginally underwater. The qualifier marginally is another key piece of the puzzle the media isn’t necessarily including in their coverage. So, what does that mean for those who purchased a home in 2022? It’s important to remember, owning a home is a long-term investment, not a short-term play. When headlines focus on the short-term view, they’re not necessarily providing the full context. Typically speaking, the longer you stay in your home, the more equity you gain as you pay down your loan and as home prices appreciate. With recent market conditions, you may not have gained significant equity right away if you owned the home for just a few months. But it’s also true that many homeowners who recently bought their house are unlikely to be looking to sell quite yet.

Bottom Line

As with everything, knowing the context is important. If you have questions about real estate headlines or about how much equity you have in your home, let’s connect.

What Experts Are Saying About the 2023 Housing Market

What Experts Are Saying About the 2023 Housing Market Simplifying The MarketIf you’re thinking about buying or selling a home soon, you probably want to know what you can expect from the housing market this year. In 2022, the market underwent a major shift as economic uncertainty and higher mortgage rates reduced buyer demand, slowed the pace of home sales, and moderated home prices. But what about 2023? Read more

Tips To Reach Your Homebuying Goals in 2023 [INFOGRAPHIC]

Tips To Reach Your Homebuying Goals in 2023 [INFOGRAPHIC] Simplifying The MarketTips To Reach Your Homebuying Goals in 2023 [INFOGRAPHIC] | Keeping Current Matters

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