New Report Says Decks and Vinyl Windows Make Good Cents
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If you spend $10,000 on a remodel, will you get that out when you go to sale your property? What kind of value are you getting for a new roof? A basement finish? Window replacement?
Remodeling Magazine recently published the “2013 Remodeling Cost vs. Value Remodeling Report” that summarizes what home improvement projects people are doing and how much they are recouping on their expense. It features 35 of the most popular projects and includes 81 cities. You can access the report at http://www.costvsvalue.com. In 2012, the three remodeling projects with the highest return were 1) Fiber Cement Siding Replacement; 2) Entry Door Replacement; and 3) Attic Bedroom Remodel, followed by minor kitchen remodels, garage door and window replacements.
The data drills down by city as well. In Denver the number one remodeling project that you’d get the most amount of return will be a wood deck addition in the backyard. The deck makes sense because we spend a lot of time outdoors in Denver. Putting in vinyl windows came in second.
I have the data on Denver and would love to share the information with you. To find out more about what home improvement projects make sense now, call me at (303) 523-4364 or email me at RyanMovesYou@gmail.com.
Denver Area Market Update for 2013
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Do you know what actually drives the real estate market? Of course, it’s people buying and selling homes but what factors really impact the strength of the market? Well now that we are well into 2013, I wanted to take a look at the four key indicators from last year that point to a great year ahead. They are, 1. Inventory, 2. Properties Sold, 3. Days on Market and 4. Average Sales Price. Across the board, we are seeing some excellent movement and change for the better in all four of these areas. Here’s a closer look:
Inventory Levels Continue to Dwindle
We continue to see the number of available homes on the market go down. What’s interesting is that this number compares inventory levels in December 2012 to the year prior. This is traditionally a slower time of year but even then, we are seeing a good amount of activity in our marketplace. In December 2012 we reported 29% fewer homes on the market than the previous December. Going back one more year the decrease in inventory was 49%, for a two-year total reduction of 74% of available inventory.
Number of Homes Sold Increased Year Over Year
In terms of the number of homes sold, we saw a 7% increase in December over the previous year and we also saw an improvement over just one month prior. Clearly, as we continue to sell more homes and there are fewer available on the market – we will see trends change accordingly. It will continue to be a seller’s market and this will likely inflate prices somewhat.
Homes Are Selling Faster
The average number of Days On Market was 73 in December of last year, representing a 31% drop in DOM. What this means is that homes are selling much faster. This is most likely due to the fact that inventory levels are down plus buyers are eager to lock in the still historic low interest rates out there.
Prices Are On the Rise
The average price of the Denver area homes is now $289,000, up 14% from the year prior. If this trend continues we can expect to see even more increases in this area. For buyers, this makes it an ideal time to consider buying a home.
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As you can see with the trends in our local marketplace, we are definitely on an upswing. The unique situation is that we will be in a seller’s market but buyers have the benefit of historically low interest rates. If you would like to meet and discuss your real estate goals and how we can help make them become a reality, contact us today!
For a closer look at our market statistic reports, please click on the links below >>
http://www.scribd.com/doc/
Mortgage Market Update 2012/2013 – With Giuseppe Battaglioli of Fairway Mortgage
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A
lot has changed in just the past 12 months and we see that across the board
with improved sales figures, stronger consumer confidence, rising prices in our
marketplace and continued ripe environment for economic growth. In fact, in
Denver there has been about a ten percent rise in home values over just the
past year and it’s projected to continue increasing in 2013 and beyond.
Fairway
Mortgage is our preferred lender and one of the reasons they are a fantastic
choice is because they are a broker lender – allowing added flexibility that
one does not experience when working with large firm lenders or small banks.
Here
is a snapshot of what is happening in the mortgage environment today:
Low Interest Rates
Around For a While Longer
The
Fed recently announced that interest rates would not be hiked up in the coming
months. Rather than placing an unrealistic cap on interest rates, they have
decided to keep the rate low or possibly lower than they already are until
inflation climbs pat 2.5% or the national unemployment rate falls to below
6.5%. This means that we can expect see low or lower interest rates until at
least the next few years.
Buying Power Still
Strong
With
the low prices that we are seeing in our marketplace, coupled with low interest
rates – buyers have a lot of buying power. But that could change. If prices in
our local Denver area continue to rise at the rate they have during the past
year, we may see rates rise to about the 4% level. Though still very low by
historic standards, that 1% could have an impact on buyers where they would
need to adjust their purchase price by 10% to accommodate the change. For this
reason, now is a great time to buy a home.
Drastic Changes
Possible for FHA Financing
Though
unconfirmed, there is talk that the Federal Housing Administration may change
their financing program to require Private Mortgage Insurance for the life of
the loan. Right now, borrowers are only required to pay the mortgage insurance
premium until there is 22% equity on the property. This could potentially
change a lot for the mortgage industry since this financing is among the most
popular choice for most borrowers with almost half of mortgages financed via
FHA. If it were to happen, we would expect conventional loans to appear more
attractive for most buyers.
~
Right
now, we are experiencing Low Inventory, Low Interest Rates and Low Prices; the
“Three L’s” that make this an ideal marketplace conducive to plenty of real
estate activity. Contact us today if you would like to get in on the action. We
look forward to making your real estate dreams become a reality!
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