if you're looking to buy, record low interest rates will help...
from cnbc.com
Mortgage rates set new record low, falling below 3% as concerns rise about coronavirus second wave
The average rate on the popular 30-year fixed mortgage hit 2.97% Thursday, according to Mortgage News Daily, as the stock market sold off and investors rushed to the relative safety of the bond market.
The market sell-off is being fueled by new concerns that there may be a second wave of the coronavirus, which already decimated the economy in April and May.
Barely a week ago it looked like mortgage rates were finally breaking higher, but in a sudden reversal, they just set a new record low.
The average rate on the popular 30-year fixed mortgage hit 2.97% Thursday, according to Mortgage News Daily, as the stock market sold off and investors rushed to the relative safety of the bond market. Mortgage rates loosely follow the yield on the 10-year U.S. Treasury.
For top-tier borrowers, some lenders were quoting as low as 2.75%. Lower-tier borrowers would see higher rates.
“This is a very abrupt and arguably unexpected change given that last week looked like a potentially scary lift-off for rates after an extended stay near the previous all-time lows,” said Matthew Graham, chief operating officer at Mortgage News Daily. “It suggests we shouldn’t count out the ability of interest rates to maintain these levels (or improve upon them) even if the economy continues showing signs of healing.”
The market sell-off is being fueled by new concerns that there may be a second wave of the coronavirus, which already decimated the economy in April and May. Rates have been hovering above 3% for much of the past month and only broke higher last week, following a surprisingly more optimistic May employment report. That, on top of cities across the country reopening, fueled more selling in the bond market.
Interest rates also benefited from an announcement by the Federal Reserve on Wednesday that it would continue buying mortgage-backed bonds. That will keep liquidity in the lending market.
“I think rate levels will be directly tied to the ability of the economy to recover. If it goes better than expected, rates would rise, and vice versa if things remain sluggish. Either way, the Fed is committed to keeping shorter-term rates lower for longer, and that will help to anchor longer-term rates like mortgages to some extent,” added Graham.
Low rates have fueled a sharp and fast recovery in the housing market, especially for homebuilders. Mortgage applications to purchase a home were up 13% annually last week, according to the Mortgage Bankers Association.
A new housing recovery index from realtor.com, which combines home search activity, prices and inventory, showed continued improvements in the market, even as social unrest erupted in several large cities.
“The general sentiment from consumer surveys is that now is not a good time to sell a home because of Covid, economic uncertainty, and social unrest, but the data is saying the opposite,” said Danielle Hale, chief economist for realtor.com. “Home prices are back to their pre-Covid pace and we’re seeing listings spend slightly less time on the market than last week.”
Mortgage rates are just one piece of the puzzle. Mortgage credit availability is still key, and it fell last month to the lowest level in nearly six years, according to an MBA survey.
“Under the current economic environment, low rates are having very little impact due to depleted mortgage availability and a decline in savings, which are putting potential buyers on the sidelines, unfortunately, just as mortgage rates are making homes more affordable,” said George Ratiu, senior economist at realtor.com.
Wednesday, June 24, 2020
Could the Open Floor Plan Be in Jeopardy?
an interesting consideration given the current times....
from realtor.com
Could the Open Floor Plan Be in Jeopardy?
The rise of remote work is prompting more households to reconsider the popular open floor plan. Some of the common complaints brewing include poor sound quality and echoes, lackluster lighting, lingering cooking smells, and a lack of private spaces for video calls.
Open floor plans have dominated real estate over the past few decades. The great room in an open floor plan combines the family room, dining room, and kitchen into one giant space. But as entire families scrambled to work and school from home during the COVID-19 pandemic, they've found it difficult to concentrate in these open spaces. Now some homeowners are calling for the walls to come back.
“Our homes will change post-COVID-19,” Bret Parsons, a real estate professional in Beverly Hills, Calif., and founder of the architectural division at Compass, told realtor.com®. “This pandemic is hardly just an annoyance, but rather a significant lifestyle change. I predict the pendulum moving back to more traditional homes, with segmented rooms for multiple uses, including office suites, an exercise room, and a separate en suite for multigenerational living. Who wants [parents] in a care facility anymore?”
Regardless of a potential evolution in preferences, homes with open floor plans are still selling. But Parsons predicts owners will explore walling off certain spaces. Pocket doors can be one solution, as can zoning certain sections for work areas.
However, not all real estate pros believe this is the death of the open floor plan. “I completely disagree with the great room being a thing of the past, and I don’t foresee a major correction for the open-plan home beyond the pandemic,” Sven Simon, a real estate professional with Swell Property in the San Diego area, told realtor.com®. “The open floor plan mostly relates to the kitchen, dining room, and living room blending together into one large space to entertain, for a larger feel and natural light. Those are the public areas of the home. People changing their work habits will not change that.”
from realtor.com
Could the Open Floor Plan Be in Jeopardy?
The rise of remote work is prompting more households to reconsider the popular open floor plan. Some of the common complaints brewing include poor sound quality and echoes, lackluster lighting, lingering cooking smells, and a lack of private spaces for video calls.
Open floor plans have dominated real estate over the past few decades. The great room in an open floor plan combines the family room, dining room, and kitchen into one giant space. But as entire families scrambled to work and school from home during the COVID-19 pandemic, they've found it difficult to concentrate in these open spaces. Now some homeowners are calling for the walls to come back.
“Our homes will change post-COVID-19,” Bret Parsons, a real estate professional in Beverly Hills, Calif., and founder of the architectural division at Compass, told realtor.com®. “This pandemic is hardly just an annoyance, but rather a significant lifestyle change. I predict the pendulum moving back to more traditional homes, with segmented rooms for multiple uses, including office suites, an exercise room, and a separate en suite for multigenerational living. Who wants [parents] in a care facility anymore?”
Regardless of a potential evolution in preferences, homes with open floor plans are still selling. But Parsons predicts owners will explore walling off certain spaces. Pocket doors can be one solution, as can zoning certain sections for work areas.
However, not all real estate pros believe this is the death of the open floor plan. “I completely disagree with the great room being a thing of the past, and I don’t foresee a major correction for the open-plan home beyond the pandemic,” Sven Simon, a real estate professional with Swell Property in the San Diego area, told realtor.com®. “The open floor plan mostly relates to the kitchen, dining room, and living room blending together into one large space to entertain, for a larger feel and natural light. Those are the public areas of the home. People changing their work habits will not change that.”
Potential homebuyers are going to face historically low inventory this summer
allot of what I'm seeing in the Colorado Market now....
from housingwire.com
Potential homebuyers are going to face historically low inventory this summer
With a decreased number of new home listings, what will happen when homebuyers re-enter the market this summer?
LendingTree says that 53% of homebuyers are more likely to buy a home in the next year because of the COVID-19 pandemic, with respondents saying they’re either tired of the small space they live in currently or don’t care where they live since they work remotely now.
Many even say they are ready to attend an open house again, according to a new survey from the National Association of Realtors, which found that 65% of people who attended an open house within the last year would do so now without hesitation.
Obviously, consumers are signaling a growing appetite for home-buying.
But as Chris Stuart, CEO and president of Berkshire Hathaway HomeServices and CEO of HSF Affiliates, said in this interview with Mansion Global, the lack of housing inventory is “the biggest pain spot at the moment as a result of the pandemic.”
Stuart said that in contrast to 2008 and 2009, when there was 10 months of inventory, the nation has only about three months right now. As a result, he is seeing several real estate markets heat up.
“We have a company in the Florida Keys where we’ve sold four properties sight unseen, and we’re seeing that elsewhere in the U.S., too. We’re seeing double-digit appreciation on the Gulf side of Florida, in the Keys and parts of the Carolinas,” Stuart said.
A lack of available homes was a serious problem even before the pandemic, as our reporting from February shows:
The nation’s inventory of homes for sale tumbled 14% in January, falling to the lowest level since at least 2012, according to a realtor.com report. The inventory of entry-level homes saw the steepest drop in the series that goes back to 2012, the report said. The supply of properties priced under $200,000 fell 19%, while homes priced $200,000 to $750,000 declined 12%.
Now, with more homebuyers coming into the market and fewer houses to choose from, competition is already fierce in many markets, including San Diego, Austin and Milwaukee, where buyers may encounter bidding wars to secure the home of their dreams.
from housingwire.com
Potential homebuyers are going to face historically low inventory this summer
With a decreased number of new home listings, what will happen when homebuyers re-enter the market this summer?
LendingTree says that 53% of homebuyers are more likely to buy a home in the next year because of the COVID-19 pandemic, with respondents saying they’re either tired of the small space they live in currently or don’t care where they live since they work remotely now.
Many even say they are ready to attend an open house again, according to a new survey from the National Association of Realtors, which found that 65% of people who attended an open house within the last year would do so now without hesitation.
Obviously, consumers are signaling a growing appetite for home-buying.
But as Chris Stuart, CEO and president of Berkshire Hathaway HomeServices and CEO of HSF Affiliates, said in this interview with Mansion Global, the lack of housing inventory is “the biggest pain spot at the moment as a result of the pandemic.”
Stuart said that in contrast to 2008 and 2009, when there was 10 months of inventory, the nation has only about three months right now. As a result, he is seeing several real estate markets heat up.
“We have a company in the Florida Keys where we’ve sold four properties sight unseen, and we’re seeing that elsewhere in the U.S., too. We’re seeing double-digit appreciation on the Gulf side of Florida, in the Keys and parts of the Carolinas,” Stuart said.
A lack of available homes was a serious problem even before the pandemic, as our reporting from February shows:
The nation’s inventory of homes for sale tumbled 14% in January, falling to the lowest level since at least 2012, according to a realtor.com report. The inventory of entry-level homes saw the steepest drop in the series that goes back to 2012, the report said. The supply of properties priced under $200,000 fell 19%, while homes priced $200,000 to $750,000 declined 12%.
Now, with more homebuyers coming into the market and fewer houses to choose from, competition is already fierce in many markets, including San Diego, Austin and Milwaukee, where buyers may encounter bidding wars to secure the home of their dreams.
Saturday, May 30, 2020
Float Away Any Summertime Blues: 7 Homes With Lavish Lazy River Pools
fun pool home ideas from realtor.com
May flowers are in full bloom, the school year is winding down, and temperatures are creeping steadily into the sweat zone.
While most of us simply crank up the AC and scroll through resorts for a respite, a lucky few just amble into their backyards. For those charmed homeowners with resortlike pools on their properties, we cop to a serious case of lazy river envy.
Lazy rivers are the finest pool-related amenity—allowing an aimless sunbather to float along, with jet currents so gentle a cocktail in hand won't spill.
It's the dreamy warm-weather experience most of us get only occasionally, on vacation—if we're lucky. What if you could indulge yourself whenever you wanted? To indulge in our own lazy river–fueled fantasy, we scoped out the coolest pools for sale from coast to coast.
We found seven homes on the market with lazy rivers, swim-up bars, grottoes, and other manner of high-end water experiences that might make your next trip to the resort feel downright dreary. This is how you do summer the right way.
Pass the (waterproof) sunblock and take a dip.
38508 N. 34th Ave, Phoenix, AZ
Price: $935,000
Desert dream: This home's pool cost a cool quarter-million dollars to build in 2006 and has been recognized among the top 10 in Arizona. More than just a spot to cool off, this home's backyard has a lazy river, grotto waterfall, tunnels, a slide, misting system, and much more. The rest of the five-bedroom home is more subdued, but it's all arranged to soak in the views of all the fun out back.
16810 Saddle Ridge Pass, Cypress, TX
Price: $4,999,500
Playtime perfection: This five-bedroom estate sits on more than 4 acres and was built first and foremost for fun. The interiors are luxurious to be sure, but it's what's on the outside that gives this home the feel of a resort. Out back, there's a covered kitchen, pond with pier, and pool with spa and dreamy lazy river.
42 Island Estates Pkwy, Palm Coast, FL
Price: $3,950,000
Island ideal: This five-bedroom estate was built in 1992 and sits on nearly 3 acres with 300 feet of Intracoastal Waterway frontage. If boating out of the floating dock or swimming at the private beach a short walk away aren't appealing, head out back. There you can take a dip in the 4,500-square-foot, glass-tiled pool with rock structure, waterfalls, spa, lazy river, swim-up bar, and grotto.
5 Wood Creek Ct, Las Vegas, NV
Price: $6,200,000
Million-dollar marvel: This pool connected to a 9,400-square-foot, Tuscan-style estate cost $1 million to build in 2006 and was featured on HGTV's top 50 pools series. In addition to the lazy river, the pool area includes waterfalls, a swim-up bar, and hot tub.
3720 Krenek Rd, Crosby, TX
Price: $2,500,000
50 acres of fun: In addition to over-the-top amenities like an indoor breezeway, loggia, and pet grooming room, this enormous 50-acre estate outside Houston has a bountiful backyard. There's a free-flowing pool, which includes a lazy river, waterfall grotto, slide, fire pit, and cabana.
6949 Chartwell Dr, Riverside, CA
Price: $1,999,900
'White House': Dubbed the "White House," this Colonial-style home from 1999 has seven bedrooms and more than 6,600 square feet. In addition to lavish interiors, this home has a backyard with a new lazy river pool, spa, shower, gazebo, and kitchen with barbecue and pizza oven.
2802 E. Benders Landing Blvd, Spring, TX
Price: $1,675,000
Best of benders: Built in 2008, this 10,000-square-foot mansion is big even for Texas. While the interiors boast extras like custom millwork and built-ins, rotunda ceilings, and a grand staircase, this 2-acre property truly shines with its outdoor spaces. Experience outdoor living at its finest with a heated pool with waterfalls, slide, spa, and beach entry. Apparently, sometimes even a spectacular pool isn't quite enough.
May flowers are in full bloom, the school year is winding down, and temperatures are creeping steadily into the sweat zone.
While most of us simply crank up the AC and scroll through resorts for a respite, a lucky few just amble into their backyards. For those charmed homeowners with resortlike pools on their properties, we cop to a serious case of lazy river envy.
Lazy rivers are the finest pool-related amenity—allowing an aimless sunbather to float along, with jet currents so gentle a cocktail in hand won't spill.
It's the dreamy warm-weather experience most of us get only occasionally, on vacation—if we're lucky. What if you could indulge yourself whenever you wanted? To indulge in our own lazy river–fueled fantasy, we scoped out the coolest pools for sale from coast to coast.
We found seven homes on the market with lazy rivers, swim-up bars, grottoes, and other manner of high-end water experiences that might make your next trip to the resort feel downright dreary. This is how you do summer the right way.
Pass the (waterproof) sunblock and take a dip.
38508 N. 34th Ave, Phoenix, AZ
Price: $935,000
Desert dream: This home's pool cost a cool quarter-million dollars to build in 2006 and has been recognized among the top 10 in Arizona. More than just a spot to cool off, this home's backyard has a lazy river, grotto waterfall, tunnels, a slide, misting system, and much more. The rest of the five-bedroom home is more subdued, but it's all arranged to soak in the views of all the fun out back.
16810 Saddle Ridge Pass, Cypress, TX
Price: $4,999,500
Playtime perfection: This five-bedroom estate sits on more than 4 acres and was built first and foremost for fun. The interiors are luxurious to be sure, but it's what's on the outside that gives this home the feel of a resort. Out back, there's a covered kitchen, pond with pier, and pool with spa and dreamy lazy river.
42 Island Estates Pkwy, Palm Coast, FL
Price: $3,950,000
Island ideal: This five-bedroom estate was built in 1992 and sits on nearly 3 acres with 300 feet of Intracoastal Waterway frontage. If boating out of the floating dock or swimming at the private beach a short walk away aren't appealing, head out back. There you can take a dip in the 4,500-square-foot, glass-tiled pool with rock structure, waterfalls, spa, lazy river, swim-up bar, and grotto.
5 Wood Creek Ct, Las Vegas, NV
Price: $6,200,000
Million-dollar marvel: This pool connected to a 9,400-square-foot, Tuscan-style estate cost $1 million to build in 2006 and was featured on HGTV's top 50 pools series. In addition to the lazy river, the pool area includes waterfalls, a swim-up bar, and hot tub.
3720 Krenek Rd, Crosby, TX
Price: $2,500,000
50 acres of fun: In addition to over-the-top amenities like an indoor breezeway, loggia, and pet grooming room, this enormous 50-acre estate outside Houston has a bountiful backyard. There's a free-flowing pool, which includes a lazy river, waterfall grotto, slide, fire pit, and cabana.
6949 Chartwell Dr, Riverside, CA
Price: $1,999,900
'White House': Dubbed the "White House," this Colonial-style home from 1999 has seven bedrooms and more than 6,600 square feet. In addition to lavish interiors, this home has a backyard with a new lazy river pool, spa, shower, gazebo, and kitchen with barbecue and pizza oven.
2802 E. Benders Landing Blvd, Spring, TX
Price: $1,675,000
Best of benders: Built in 2008, this 10,000-square-foot mansion is big even for Texas. While the interiors boast extras like custom millwork and built-ins, rotunda ceilings, and a grand staircase, this 2-acre property truly shines with its outdoor spaces. Experience outdoor living at its finest with a heated pool with waterfalls, slide, spa, and beach entry. Apparently, sometimes even a spectacular pool isn't quite enough.
Mortgage Rates Just Hit a New All-Time Low
from Money.com
Those who were holding out on buying or refinancing a mortgage in the hopes of getting even lower rates finally have their patience rewarded. Interest rates have reached a new all-time low for the third time since the beginning of the year.
The average interest rate for a 30-year fixed-rate mortgage was 3.15% with 0.8 points paid, for the week ending May 28, according to Freddie Mac. That’s 0.08 percentage points below the previous all-time low of 3.23% set April 30. A year ago today the average interest rate was 3.99%. It is the fifth consecutive week where interest rates have remained below 3.30%.
Average interest rates on 15-year fixed-rate mortgages fell by 0.8 percentage points to 2.62% with 0.7 points paid. Meanwhile, the average rate on a five-year adjustable-rate mortgage decreased to 3.13% with 0.4 points paid, a decline of 0.4 percentage points from last week’s 3.17%
Refinance loans continue to be in high demand as they make up almost two-thirds of all mortgage loan activity. Conventional refinance loans increased 2% over the previous week thanks to continued low interest rates. More recent refinance activity has also seen a $70,000 decrease in the average amount of refinance loan size. “This means a broader base of borrowers are taking advantage of the record low rate environment, which will benefit the economy,” said Sam Khater, Freddie Mac’s chief economist in a statement.
Home purchase mortgage applications continue their six-week rise as lock-downs orders ease throughout the U.S. According to data from the Mortgage Bankers Association (MBA), applications were up 9% over the previous week and 54% over their level in early April. New York continues to lead the way with an increase of 19.7% over last week, while California saw an increase of 11.6%.
Those who were holding out on buying or refinancing a mortgage in the hopes of getting even lower rates finally have their patience rewarded. Interest rates have reached a new all-time low for the third time since the beginning of the year.
The average interest rate for a 30-year fixed-rate mortgage was 3.15% with 0.8 points paid, for the week ending May 28, according to Freddie Mac. That’s 0.08 percentage points below the previous all-time low of 3.23% set April 30. A year ago today the average interest rate was 3.99%. It is the fifth consecutive week where interest rates have remained below 3.30%.
Average interest rates on 15-year fixed-rate mortgages fell by 0.8 percentage points to 2.62% with 0.7 points paid. Meanwhile, the average rate on a five-year adjustable-rate mortgage decreased to 3.13% with 0.4 points paid, a decline of 0.4 percentage points from last week’s 3.17%
Refinance loans continue to be in high demand as they make up almost two-thirds of all mortgage loan activity. Conventional refinance loans increased 2% over the previous week thanks to continued low interest rates. More recent refinance activity has also seen a $70,000 decrease in the average amount of refinance loan size. “This means a broader base of borrowers are taking advantage of the record low rate environment, which will benefit the economy,” said Sam Khater, Freddie Mac’s chief economist in a statement.
Home purchase mortgage applications continue their six-week rise as lock-downs orders ease throughout the U.S. According to data from the Mortgage Bankers Association (MBA), applications were up 9% over the previous week and 54% over their level in early April. New York continues to lead the way with an increase of 19.7% over last week, while California saw an increase of 11.6%.
New listings plunge across state
With limited market supply, it's a good time to sell...see Denver Post Article...
New listings plunge across state
Single-family home sales drop 20.3% amid stay-at-home orders in April
Stay-at-home orders dealt a heavy blow to home sales across the state in April, but they didn’t knock the market off its feet, according to a monthly update from the Colorado Association of Realtors.
Open houses were not permitted and in-person visits were limited until the final walk-through, which made marketing homes difficult. Concerned about their health and job losses, sellers and buyers alike pulled back.
Yet, contracts were closed on 7,590 residences across the state, with minimal discounting, and 6,761 properties were put under contract. And once showings were allowed again at the end of April, buyers came back out.
“Everybody expected there would be this massive tanking of our market when it opened back up, but on the contrary, we are back to where we were. It isn’t doom and gloom,” said Denver-area Realtor Matthew Leprino.
Yet, Leprino said he maintains a cautious outlook. Unemployment rates have spiked to their highest levels since the Great Depression, consumer credit scores are taking a hit, and lenders are tightening their loan standards, all of which could sideline many would-be buyers in the months ahead.
“We have rebounded, but now what is next?” he said.
Single-family home sales dropped 20.3% statewide, from 7,444 in April 2019 to 5,930 this April. Townhome and condo sales fell a steeper 32.4%, from 2,455 a year ago to 1,660 last month.
Buyers weren’t the only ones holding back. The number of single-family homes that Colorado sellers listed fell 24.1% last month, from 9,591 in March to 7,281 in April. Condo and town-home listings dropped from 3,024 to 2,064, a decline of 32.1% over the month.
Single-family listings took 40 days on average to sell statewide in April, down from 47 days the same month a year earlier, while condos and townhomes took 42 days to sell compared to 46 days last year.
Median home sales prices largely held up. Statewide, they fell 1% month-over-month, to $419,900, and are still up 5% over the year. Condo and townhome prices dropped 4.3% to $315,000 on the month but remain up 3.3% on the year.
A report last week from the Denver Metro Association of Realtors showed similar declines in metro Denver. There were 3,603 homes and condos sold, a 24.3% drop month-over-month and a 30.8% drop year over year. New listings came in at 4,679, down 29.8% from March and 37.8% from April of 2019.
Jill Schafer, chairwoman of the DMAR Market Trends Committee, said in the report that buyers mostly avoided making low-ball offers, asking for big discounts or stretching out the sales process. Sellers in metro Denver received 99.96% of the listing price on average last month.
The median price of a single-family that closed in metro Denver and surrounding counties last month was $475,425, down 2.2% from March and up 3.35% from April 2019. The median price of a condo sold was $322,000, down 2.4% from March but still up 6.9% from a year earlier.
The drop in buying activity was especially pronounced in mountain resort counties, which were hit earlier and harder by the novel coronavirus outbreak, according to the CAR report. Sellers held back listings at a higher rate in metro Denver and in some of the counties on the Eastern Plains.
Across the state, high-end homes saw the biggest drop in demand. Some agents in higher-priced mountain communities argue that wealthy buyers escaping congested cities will fuel a rebound, while others noted that the collapse in oil and gas prices could reduce demand from Texans and push current owners from that state to sell.
“We really are unsure of our real estate and tourist economy in that none of us have ever experienced a health pandemic like we are in now,” said George Harvey, a Telluride-area Realtor, in comments accompanying the CAR report.
New listings plunge across state
Single-family home sales drop 20.3% amid stay-at-home orders in April
Stay-at-home orders dealt a heavy blow to home sales across the state in April, but they didn’t knock the market off its feet, according to a monthly update from the Colorado Association of Realtors.
Open houses were not permitted and in-person visits were limited until the final walk-through, which made marketing homes difficult. Concerned about their health and job losses, sellers and buyers alike pulled back.
Yet, contracts were closed on 7,590 residences across the state, with minimal discounting, and 6,761 properties were put under contract. And once showings were allowed again at the end of April, buyers came back out.
“Everybody expected there would be this massive tanking of our market when it opened back up, but on the contrary, we are back to where we were. It isn’t doom and gloom,” said Denver-area Realtor Matthew Leprino.
Yet, Leprino said he maintains a cautious outlook. Unemployment rates have spiked to their highest levels since the Great Depression, consumer credit scores are taking a hit, and lenders are tightening their loan standards, all of which could sideline many would-be buyers in the months ahead.
“We have rebounded, but now what is next?” he said.
Single-family home sales dropped 20.3% statewide, from 7,444 in April 2019 to 5,930 this April. Townhome and condo sales fell a steeper 32.4%, from 2,455 a year ago to 1,660 last month.
Buyers weren’t the only ones holding back. The number of single-family homes that Colorado sellers listed fell 24.1% last month, from 9,591 in March to 7,281 in April. Condo and town-home listings dropped from 3,024 to 2,064, a decline of 32.1% over the month.
Single-family listings took 40 days on average to sell statewide in April, down from 47 days the same month a year earlier, while condos and townhomes took 42 days to sell compared to 46 days last year.
Median home sales prices largely held up. Statewide, they fell 1% month-over-month, to $419,900, and are still up 5% over the year. Condo and townhome prices dropped 4.3% to $315,000 on the month but remain up 3.3% on the year.
A report last week from the Denver Metro Association of Realtors showed similar declines in metro Denver. There were 3,603 homes and condos sold, a 24.3% drop month-over-month and a 30.8% drop year over year. New listings came in at 4,679, down 29.8% from March and 37.8% from April of 2019.
Jill Schafer, chairwoman of the DMAR Market Trends Committee, said in the report that buyers mostly avoided making low-ball offers, asking for big discounts or stretching out the sales process. Sellers in metro Denver received 99.96% of the listing price on average last month.
The median price of a single-family that closed in metro Denver and surrounding counties last month was $475,425, down 2.2% from March and up 3.35% from April 2019. The median price of a condo sold was $322,000, down 2.4% from March but still up 6.9% from a year earlier.
The drop in buying activity was especially pronounced in mountain resort counties, which were hit earlier and harder by the novel coronavirus outbreak, according to the CAR report. Sellers held back listings at a higher rate in metro Denver and in some of the counties on the Eastern Plains.
Across the state, high-end homes saw the biggest drop in demand. Some agents in higher-priced mountain communities argue that wealthy buyers escaping congested cities will fuel a rebound, while others noted that the collapse in oil and gas prices could reduce demand from Texans and push current owners from that state to sell.
“We really are unsure of our real estate and tourist economy in that none of us have ever experienced a health pandemic like we are in now,” said George Harvey, a Telluride-area Realtor, in comments accompanying the CAR report.
Back to work: As property showings resume, builders and agents see a quick resumption of spring interest from buyers, sellers
good article from Denver Post with what I'm seeing as well:
"Back to work: As property showings resume, builders and agents see a quick resumption of spring interest from buyers, sellers
“Indications are that we’re still going to have a positive market coming into rest of the year.”
In the few days since statewide restrictions were lifted on the showing of properties, Colorado builders and real estate agents were already seeing a quick upswing in buyer interest that’s being heralded as a sign of a possible early market recovery.
“We’ve already seen plenty of showings; there’s pent-up demand,” says Matt Leprino, spokesperson for the Colorado Association of Realtors who tracks data for the association.
“How long that will last is hard to tell, but showings are back up after dropping off,” he adds.
Initial stay-at-home orders had drastically cut into numbers of showings in the Denver area, by over 90 percent; but the orders were rescinded last week, as real estate was reclassified as an essential ‘field service.’
“Indications are that we’re still going to have a positive market coming into rest of the year,” says Rike Palese, who heads up Re/Max Professionals’ DTC office—just under $1 billion in residential sales last year.
“Sellers want to sell, and there’s a lot of buyer momentum,” Palese adds.
Office stats from last week indicated showings in the few days following the lifting had gone way up, already 20% above levels in mid-March when the virus crisis was descending.
“Are we back to normal? No, but we’re working our way to that,” Palese says. He notes that lending is now more of a challenge for some buyers, facing higher credit score requirements for some programs.
“The important thing to know is that there’s availability for financing at great rates, with reasonable down payments.” Some lenders have restricted jumbo market loans, but others are still offering them, Palese adds.
Meanwhile, some agents were marking how well they had done even during maximum restrictions. “It’s still been pretty stable,” says Jason Cummings with Compass Real Estate—noting that he had tracked eight homes closed during the height of the quarantine, with three new ones under contract and 11 new listings that arrived.
“As with 9/11 and other catastrophes, people want to move on in a positive way,” adds Re/Max’s Palese.
“People are getting out, experiencing more freedom, and will feel even more positive. We’re already seeing people who were holding off when the stock market dropped off now thinking about coming back in.”
CAR’s Matt Leprino cautioned that the national market, in the shadow of 30 million job losses, presented significant challenges to recovery. The Mortgage Bankers Association released new stats Monday showing that numbers of the loan in forbearance—with borrowers requesting a suspension of their loan payments—had jumped over the crisis from around a quarter-percent of all loans to 6.99%, with expectations the levels would increase.
Leprino cautioned borrowers contemplating forbearance, particularly if prospects for returning to work are imminent. “You sign on the line and say I don’t have to pay, but a lot of banks will require a lump-sum repayment,” he notes.
Although the CARES Act states that borrowers shouldn’t incur penalties, Leprino adds that credit scores could still be affected.
“Humans tend to like to forget the negative and move on,” adds Palese."
"Back to work: As property showings resume, builders and agents see a quick resumption of spring interest from buyers, sellers
“Indications are that we’re still going to have a positive market coming into rest of the year.”
In the few days since statewide restrictions were lifted on the showing of properties, Colorado builders and real estate agents were already seeing a quick upswing in buyer interest that’s being heralded as a sign of a possible early market recovery.
“We’ve already seen plenty of showings; there’s pent-up demand,” says Matt Leprino, spokesperson for the Colorado Association of Realtors who tracks data for the association.
“How long that will last is hard to tell, but showings are back up after dropping off,” he adds.
Initial stay-at-home orders had drastically cut into numbers of showings in the Denver area, by over 90 percent; but the orders were rescinded last week, as real estate was reclassified as an essential ‘field service.’
“Indications are that we’re still going to have a positive market coming into rest of the year,” says Rike Palese, who heads up Re/Max Professionals’ DTC office—just under $1 billion in residential sales last year.
“Sellers want to sell, and there’s a lot of buyer momentum,” Palese adds.
Office stats from last week indicated showings in the few days following the lifting had gone way up, already 20% above levels in mid-March when the virus crisis was descending.
“Are we back to normal? No, but we’re working our way to that,” Palese says. He notes that lending is now more of a challenge for some buyers, facing higher credit score requirements for some programs.
“The important thing to know is that there’s availability for financing at great rates, with reasonable down payments.” Some lenders have restricted jumbo market loans, but others are still offering them, Palese adds.
Meanwhile, some agents were marking how well they had done even during maximum restrictions. “It’s still been pretty stable,” says Jason Cummings with Compass Real Estate—noting that he had tracked eight homes closed during the height of the quarantine, with three new ones under contract and 11 new listings that arrived.
“As with 9/11 and other catastrophes, people want to move on in a positive way,” adds Re/Max’s Palese.
“People are getting out, experiencing more freedom, and will feel even more positive. We’re already seeing people who were holding off when the stock market dropped off now thinking about coming back in.”
CAR’s Matt Leprino cautioned that the national market, in the shadow of 30 million job losses, presented significant challenges to recovery. The Mortgage Bankers Association released new stats Monday showing that numbers of the loan in forbearance—with borrowers requesting a suspension of their loan payments—had jumped over the crisis from around a quarter-percent of all loans to 6.99%, with expectations the levels would increase.
Leprino cautioned borrowers contemplating forbearance, particularly if prospects for returning to work are imminent. “You sign on the line and say I don’t have to pay, but a lot of banks will require a lump-sum repayment,” he notes.
Although the CARES Act states that borrowers shouldn’t incur penalties, Leprino adds that credit scores could still be affected.
“Humans tend to like to forget the negative and move on,” adds Palese."
Subscribe to:
Posts (Atom)
Posts
