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Home Affordability at Historical Highs

by Alan Daniels

Colorado Springs and surrounding areas have seen an interesting dynamic form on Home Affordability.  Home Affordability is at historically favorable levels for buying a home while at extremely unfavorable levels for renting a home.  The years in the market downturn show that home affordability was off the charts when there were more distressed properties selling between 2009 and 2016.  The market is still showing that home affordability is at high levels in the current market as detailed in the following chart (the higher the graph the more affordable homes are).

Mortgage Payments are at historical lows when looking back.  Note that 2012 is skewed due to the number of distressed sales at the time.

Colorado Springs Homes For Sale - Buyers Mortgage Payments

Conclusion:

  • If you are in the market to buy a home in the near future be sure to act while the Home Affordability Index is so favorable.

  • If you are renting, you are most likely seeing a rent increase of 5+% annually and paying hundreds of dollars over what a mortgage would be.

  • Contact your Colorado Springs Real Estate Agent to help you expand on this along with your options whether short or long term.

Low Interest Rates Make Huge Difference on Your Purchasing Power

by Alan Daniels

Interest rates for a 30 year fixed rate mortgage are currently around 3.92% according to Freddie Mac's latest Primary Mortgage Market Survey which is still near record lows when comparing to the last 50-60 years.  Your purchasing power and the amount of home you can afford is greatly impacted by the interest rate you secure when buying a home so make sure to plan out your 2018 plans in a winning way.  

Purchase Power Defined - The amount of home you can afford to buy for the budget you have available to spend.  The price of house you can afford decreases as rates increase.  Note:  The same applies as housing prices go up.

The graphic below shows what impact rising interest rates would have if you planned to purchase a home within the national median price range, and planned to keep your principal and interest payments between $1,850-$1,900 a month.

Colorado Springs Homes For Sale - Buying PowerWith each .25 percent increase in interest rate, the value of the home you can afford decreases by 2.5% (this example shows $10,000). Experts predict that mortgage rates will be closer to 5% by this time next year.

Home Appreciation Factor - Homes locally could increase in value by around 6% in 2018.  So in this example your dream home of $400,000 could turn into $424,000 by year end pushing your purchase power even further down.

Conclusion:

Make sure you schedule a meeting with your Colorado Springs Realtor to better advise you on your plans and what is best for your situation no matter how far out your home buying plans are.​​

We've Moved and Improved Offices!

by Alan Daniels

The Daniels Team - RE/MAX Millennium (We've Moved The Daniels Team! Part of our plan to better serve our good friends and clients with the service you've grown to expect from us and we can't wait to share it with you!)

Welcome Daniels Team's Newest Team Member

by Alan Daniels

The Daniels Team would like to welcome Brenda to our growing Team!  Brenda has joined our Buyer Specialist Division adding to an All Star line-up for our clients home buying needs.  Contact us to see how a Buyer specific specialist can provide better service than a "jack of all trades" Real Estate Agent

Colorado Springs Real Estate Agents

Top 5 Mistakes Sellers Make When Choosing A Realtor

by Alan Daniels

Colorado Springs Real Estate Agents

  • Choosing an Agent Without Checking Their Online Reviews - Be sure to double check your Realtor's reviews and reputation online. It’s a horrible feeling when you check after you hire someone and find that they have horrible reviews online.  Check with BBB, Google Places, Yelp and more or just Google their name along with the word “reviews.”
  • Hiring a Friend or Family Member - I can’t tell you how many listing appointments I have been to where the client said they had a bad experience with a friend or family member. Definitely not worth jeopardizing a relationship. Don’t hire an agent based on your relationship. Hire them based on their qualifications and interview them just as you would anyone else.
  • Choosing The Only Agent That Agrees With Your Pricing - Be aware that some Agents will tell you the price you want to hear just to get the listing. I advise that you listen to what their marketing plan is along with their listing plan before discussing pricing. Choose the best Realtor, not the Agent with the best sounding list price.
  • Choosing a Part Time Agent - Some Agents work in real estate part time and typically have a different day job or other obligation that takes them away from actively marketing your home or coordinating the contract process. It is imperative that you ask any Realtor you are considering if they are a full time Real Estate Agent as most people just assume.
  • Choosing A Solo Agent - A Solo Agent has a ton of responsibility on their shoulders which can effect their availability and communication. A Team is definitely the way to go as responsibilities are divided up efficiently among team members. You can’t loose having multiple Realtors available for you along with their support staff.

Find out more about our Team By Clicking Here.

4 Reasons to Buy Colorado Springs Real Estate Now!

by Alan Daniels

Colorado Springs Real Estate

Many genuine home buyers are sitting on the sidelines these days deciding on when to get into the Colorado Springs real estate market.  In the end this decision will be based on many different variables depending on each person’s situation.  Here are 4 reasons why you may want to make a move on your choice of Colorado Springs homes right now.   

1) You can not time the bottom of the market.  Timing the bottom of the market is incredibly hard to do and often harder to resist.  Current housing inventory is at historical highs and mortgage rates are staying down, so you should definitely be able to find a great home with an experienced Colorado Springs Realtor.  You will find that many home sellers right now are pricing their homes very competitively!  The old supply and demand curve… more supply and less demand.  This curve is bound to shift sooner are later, so don’t be the one to wait for the seller’s market!  

2) Low mortgage rates.  Most economists agree that home financing will become more expensive in the future.  By now we have all heard our share of stories about financing woes even for well qualified people.  Currently, the 30 year loan is now roughly at 6.0% and most economists see it reaching 6.5% by the end of the year and up to a 7% forecast sometime in 2009.  Even if Colorado Springs real estate prices were to fall in the following months, the current interest rates end up saving money throughout the years of the loan.  

3) Don’t just by for a cheap price, buy in a good area.  Sure you might get excited about that great foreclosure price, but when you are buying a home, you are also buying the neighborhood.  If more than a few foreclosures have come up in one area, there most likely will be more.  They tend to be bunched in particular areas and this might not be the best recipe for stability in a neighborhood.  An old rule of thumb is to buy the worst house on the best block…not the worst house on a bad block.

4) Work with a great Colorado Springs Realtor that has experience and who can supply opportunities from the current market.  This I think just needs to be brought to attention since times are tough for many Realtors.  Make sure your Colorado Springs Realtor is not desperate and just steering you into a home to finally make a deal.  Sit down with your Colorado Springs Real Estate Agent to share your plans and get a good sense of whether they are looking out for you or just looking to get paid.  This market has opened up many opportunities that a great Colorado Springs real estate agent can share.

Displaying blog entries 1-6 of 6

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