Real Estate Information

Sales Up Despite Years of Rising Prices, Falling Inventory

DENVER - November became the sixth month of 2017 to post an increase in year-over-year home sales, bucking prolonged trends of home price increases and inventory declines, according to the December RE/MAX National Housing Report.

The sales increase of 1.1% came on the strength of increased transaction closings in 36 of the report’s 54 markets. At the same time, buyers felt increasing headwinds as the Median Sales Price rose to $227,500 and marked the 20th consecutive month of year-over-year home price increases. In fact, the Median Sales Price has increased year-over-year in 69 of the last 70 months dating back to February 2012.

November's inventory decline of 14.5% extended the streak of consecutive months of fewer homes on the market to 108. The current streak started nine years ago, in November 2008, shortly after the RE/MAX National Housing Report was introduced.

Setting new report lows for November were Days on Market at 54 and Months Supply of Inventory at 3.6

“The end of the year is typically a slower selling season with low inventory, but our numbers are telling a different story,” said Adam Contos, RE/MAX Co-CEO. “We don’t see any sign of home buyers slowing down their house hunting. In fact, many are taking advantage of lower competition for available homes in the ‘slow season.’”

Contos added that, while consumer confidence is up and unemployment remains low, new home starts continue to lag because of material costs and a labor shortage. “Until we begin to see new homes being built, we won’t see much growth in available homes on the market,” he said.

Closed Transactions

Of the 54 metro areas surveyed in November 2017, the overall average number of home sales decreased 7.3% compared to October 2017 but increased 1.1% compared to November 2016. Thirty-six of the 54 metro areas experienced an increase in sales year-over-year, including Trenton, NJ, +21.3%, Augusta, ME, +14.5%, Honolulu, HI, +14.1%, and Manchester, NH, +14.0%.

Median Sales Price – Median of 54 metro median prices

In November 2017, the median of all 54 metro Median Sales Prices was $227,500, up 1.7% from October 2017 and up 3.7% from November 2016. Only five metro areas saw a year-over-year decrease in Median Sales Price, including Anchorage, AK, -5.3%, Trenton, NJ, -4.2%, and Honolulu, HI, -3.4%. Nine metro areas increased year-over-year by double-digit percentages, with the largest increases seen in San Francisco, CA, +13.8%, Cleveland, OH, +12.9%, Orlando, FL, +11.6%, and Seattle, WA, +11.4%. 

Days on Market – Average of 54 metro areas

The average Days on Market for homes sold in November 2017 was 54, up three days from the average in October 2017, and down five days from the November 2016 average. The four metro areas with the lowest Days on Market were San Francisco, CA, at 25, Omaha, NE, at 27, Seattle, WA, at 29, and Nashville, TN, at 30. The highest Days on Market averages were in Augusta, ME, at 116, and Miami, FL, at 86. Days on Market is the number of days between when a home is first listed in an MLS and a sales contract is signed.

Months Supply of Inventory – Average of 54 metro areas

The number of homes for sale in November 2017 was down 9.2% from October 2017, and down 14.5% from November 2016. Based on the rate of home sales in November, the Months Supply of Inventory increased to 3.6 from 3.3 in October 2017, but decreased compared to the 4.0 of November 2016. A 6 months supply indicates a market balanced equally between buyers and sellers. In November 2017, 49 of the 54 metro areas surveyed reported a months supply at or less than 6, which is typically considered a seller’s market. The metro areas that saw a months supply above 6.0, typically considered a buyer’s market, were Augusta, ME, at 8.4, Miami, FL, at 7.6, and Fargo, ND, at 6.5. The markets with the lowest Months Supply of Inventory continued to be in the West, with San Francisco, CA, at 1.0, Seattle, WA, at 1.3, and Denver, CO, at 1.4.

Feel free to contact me and I can help break down exactly what these numbers mean for our local market and for your neighborhood.

And lastly, If you or anyone you know is thinking of buying or selling a home - please call or email me. I'm here to help!

Peter Veres

Associate Broker, CRS,ABR,CLHMS,SRES

Elite Asset Management Team - RE/MAX Elite

www.PeteVeres.com

Cell: 505-362-2005

Office: 505-798-1000

Sales Up Despite Years of Rising Prices, Falling Inventory

DENVER - November became the sixth month of 2017 to post an increase in year-over-year home sales, bucking prolonged trends of home price increases and inventory declines, according to the December RE/MAX National Housing Report.

The sales increase of 1.1% came on the strength of increased transaction closings in 36 of the report’s 54 markets. At the same time, buyers felt increasing headwinds as the Median Sales Price rose to $227,500 and marked the 20th consecutive month of year-over-year home price increases. In fact, the Median Sales Price has increased year-over-year in 69 of the last 70 months dating back to February 2012.

November's inventory decline of 14.5% extended the streak of consecutive months of fewer homes on the market to 108. The current streak started nine years ago, in November 2008, shortly after the RE/MAX National Housing Report was introduced.

Setting new report lows for November were Days on Market at 54 and Months Supply of Inventory at 3.6

“The end of the year is typically a slower selling season with low inventory, but our numbers are telling a different story,” said Adam Contos, RE/MAX Co-CEO. “We don’t see any sign of home buyers slowing down their house hunting. In fact, many are taking advantage of lower competition for available homes in the ‘slow season.’”

Contos added that, while consumer confidence is up and unemployment remains low, new home starts continue to lag because of material costs and a labor shortage. “Until we begin to see new homes being built, we won’t see much growth in available homes on the market,” he said.

Closed Transactions

Of the 54 metro areas surveyed in November 2017, the overall average number of home sales decreased 7.3% compared to October 2017 but increased 1.1% compared to November 2016. Thirty-six of the 54 metro areas experienced an increase in sales year-over-year, including Trenton, NJ, +21.3%, Augusta, ME, +14.5%, Honolulu, HI, +14.1%, and Manchester, NH, +14.0%.

Median Sales Price – Median of 54 metro median prices

In November 2017, the median of all 54 metro Median Sales Prices was $227,500, up 1.7% from October 2017 and up 3.7% from November 2016. Only five metro areas saw a year-over-year decrease in Median Sales Price, including Anchorage, AK, -5.3%, Trenton, NJ, -4.2%, and Honolulu, HI, -3.4%. Nine metro areas increased year-over-year by double-digit percentages, with the largest increases seen in San Francisco, CA, +13.8%, Cleveland, OH, +12.9%, Orlando, FL, +11.6%, and Seattle, WA, +11.4%. 

Days on Market – Average of 54 metro areas

The average Days on Market for homes sold in November 2017 was 54, up three days from the average in October 2017, and down five days from the November 2016 average. The four metro areas with the lowest Days on Market were San Francisco, CA, at 25, Omaha, NE, at 27, Seattle, WA, at 29, and Nashville, TN, at 30. The highest Days on Market averages were in Augusta, ME, at 116, and Miami, FL, at 86. Days on Market is the number of days between when a home is first listed in an MLS and a sales contract is signed.

Months Supply of Inventory – Average of 54 metro areas

The number of homes for sale in November 2017 was down 9.2% from October 2017, and down 14.5% from November 2016. Based on the rate of home sales in November, the Months Supply of Inventory increased to 3.6 from 3.3 in October 2017, but decreased compared to the 4.0 of November 2016. A 6 months supply indicates a market balanced equally between buyers and sellers. In November 2017, 49 of the 54 metro areas surveyed reported a months supply at or less than 6, which is typically considered a seller’s market. The metro areas that saw a months supply above 6.0, typically considered a buyer’s market, were Augusta, ME, at 8.4, Miami, FL, at 7.6, and Fargo, ND, at 6.5. The markets with the lowest Months Supply of Inventory continued to be in the West, with San Francisco, CA, at 1.0, Seattle, WA, at 1.3, and Denver, CO, at 1.4.

Feel free to contact me and I can help break down exactly what these numbers mean for our local market and for your neighborhood.

And lastly, If you or anyone you know is thinking of buying or selling a home - please call or email me. I'm here to help!

Peter Veres

Associate Broker, CRS,ABR,CLHMS,SRES

Elite Asset Management Team - RE/MAX Elite

www.PeteVeres.com

Cell: 505-362-2005

Office: 505-798-1000

The following new limits will be effective for loans in 2018:

• FHFA (Federal Housing Finance Authority)—Conventional Loans. The Federal Housing Finance Agency (FHFA) has announced that it has increased the 2018 maximum conforming and high-cost area loan limits for mortgages acquired by Fannie Mae and Freddie Mac. Conforming loan limits for one-unit properties in the contiguous U.S. will be $453,100. High-cost area loan limits for one unit will be $679,650.
• FHA (Federal Housing Authority) FHA has updated its list of the maximum mortgage limits for FHA-insured forward mortgages, effective for case numbers assigned on or after January 1, 2018, through December 31, 2018. FHA loan limits will increase in 3,011 counties and stay the same in 233 counties.
• VA (Veterans Affairs) VA Loans will also have new limits; however, for pricing purposes, keep in mind that any amount over the conforming lending limit of $453,100 will be considered high balance for VA on or after January 1, 2018.

You’ve found the perfect home. The price is perfect and everything looks good. The only thing that could keep you from owning your dream home is the competitive market. What you need to do is to make a really good offer so that you get the home you want.

Freddie Mac’s “4 Tips for Making an Offer” in their Executive Perspective will help you in making the right moves to get into your dream home.

1. How much can you afford?

“While it’s not nearly as fun as house hunting, fully understanding your finances is critical in making an offer.”

By getting pre-approved, you show home sellers how serious you are about purchasing their home. Knowing that you are already approved for a mortgage gives you confidence that you can afford the home. Find out if you would also need to make repairs t the home.

2. Time is of the essence

“Even though there are fewer investors, the inventory of homes for sale is also low and competition for housing continues to heat up in many parts of the country.”

You have to act fast. With inventory being low, lower than the 6 month supply needed for the market to be considered “normal”, competition for homes will be fierce. Multiple buyers compete for a single home. If you’ve decided to purchase the home, talk to an agent immediately, so that you can present your offer as soon as possible.

3. Solid offer

Freddie Mac’s advice for a strong offer:

“Your strongest offer will be comparable with other sales and listings in the neighborhood. A licensed real estate agent active in the neighborhoods you are considering will be instrumental in helping you put in a solid offer based on their experience and other key considerations such as recent sales of similar homes, the condition of the house and what you can afford.”

Talking to your agent will make a big difference. Discuss how you can make a stronger offer which will make your offer stand out from the rest.

4. Negotiation is Key

“It’s likely that you’ll get at least one counteroffer from the sellers so be prepared. The two things most likely to be negotiated are the selling price and closing date. Given that, you’ll be glad you did your homework first to understand how much you can afford.

Your agent will also be key in the negotiation process, giving you guidance on the counteroffer and making sure that the agreed-to contract terms are met.”

Be prepared to negotiate. Once tour offer is approved it is advised that you get an independent home inspection to make sure of the condition of the home. If there are any needed repairs, you can talk to the seller about it and discuss the issues. You’ll also see if the home is really worth it. If it’s not, you can cancel the contract.

Having an expert local professional in your corner will mean success and will make the whole process go smoothly.

Buying a home may be the largest and most complex financial transaction you ever undertake. If you're ready to buy a home, wouldn't you prefer to work with the most qualified real estate professional you can find?

An Accredited Buyer's Representative stands out in the crowd. If your REALTOR® holds the ABR® designation, you can trust that they have the extra edge when it comes to KNOWLEDGE AND EXPERIENCE.

Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist who can help you navigate thru the process and get the job done for you. Pete Veres has had over 25 years of Sales & Marketing experience and excellent negotiating skills.

You can contact him by calling 505-362-2005 or by emailing him at [email protected].

He has a great website full of the latest information at www.NMElite.com

A lot of people are still renting even though owning a home has great financial benefits. Why is owning a home better than renting? That is a very easy question.

According to Zillow:

“In reality, buying or renting a home is an intensely personal decision, with emotional and even financial considerations that go beyond whether to invest in this one (admittedly large) asset. Looking strictly at housing market numbers, there is a concrete point at which buying a home makes more financial sense than renting it.”

Why is it financial better to own a home? Here’s why.

1. Top 5 benefits

• Owning a home is like having forced savings.
• It is cheaper to buy than to rent.
• It’s the only investment where you can live inside it.
• Locked in monthly housing cost
• Tax savings

2. Net worth is 44x greater than that of a renter if you own your own home.

3.If you bought a home in early 2017, in just 5 years you could build more than $48,000 in wealth.

4. Your rent isn’t just rent. Included in the rent are probably the taxes, the money needed for repairs and profit for the landlord.

However you look at it, owning your own home is better financially than renting.

Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist, SRES – Senior Real Estate Specialist who can help you navigate thru the process and get the job done for you. Pete Veres has had over 25 years of Sales & Marketing experience and excellent negotiating skills.

You can contact him by calling 505-362-2005 or by emailing him at [email protected].

He has a great website full of the latest information at www.NMElite.com

DENVER – Despite record low inventory for the month, October home sales increased 2.5% year-over-year and kept 2017 prices ahead of 2016, according to this month’s RE/MAX National Housing Report. To access the housing report infographic, visit: rem.ax/2cYFT50.

Thirty-seven of the 53 metro markets in the November RE/MAX National Housing Report posted sales increases over October 2016. Meanwhile, inventory gauges were at their lowest point for an October in the report’s nine year history. The Months Supply of Inventory dropped to 3.3 – the lowest for any October in this housing report. It was mirrored by the Days on Market average of 51 days, also a new low for October for the report and a full week faster than the selling rate of homes in October of last year.
 
The Median Sales Price of $224,000 increased 3.3% over last October and was $19,000 higher than the same month in 2015. The median price remained on a par with the prices of last spring that kicked off the peak summer selling season.
 
“The housing market is steady and at least somewhat predictable with record-low inventory and increasing prices in markets across the country,” said Adam Contos, RE/MAX Co-CEO. “With job growth and increased household formation, buyers will struggle and may even be priced out of the market until home building catches up.”
 
Closed Transactions 
Of the 53 metro areas surveyed in October 2017, the overall average number of home sales decreased 3.4% compared to September 2017 but increased 2.5% compared to October 2016. Thirty-seven of the 53 metro areas experienced an increase in sales year-over-year including, Albuquerque, NM,+19.8%, Augusta, ME, +14.1%, Las Vegas, NV, +13.2%, Billings, MT, +12.4% and Providence, RI +11.4%.

Median Sales Price – Median of 53 metro median prices
In October 2017, the median of all 53 metro Median Sales Prices was $224,000, down 1.1% from September 2017 but up 3.3% from October 2016. Only three metro areas saw a year-over-year decrease in Median Sales Price or remained unchanged (Wilmington/Dover, DE, -4.1%, Trenton, NJ, -1.0%, and Cincinnati, OH, at 0.0%). Eight metro areas increased year-over-year by double-digit percentages, with the largest increases seen in Las Vegas, NV, +16.3%, Birmingham, AL, +12.3%, New Orleans, LA, +12.3%, Des Moines, IA, +12.0% and Seattle, WA, +11.6%.

Days on Market – Average of 53 metro areas
The average Days on Market for homes sold in October 2017 was 51, up two days from the average in September 2017, and down seven days from the October 2016 average. The four metro areas with the lowest Days on Market were San Francisco, CA, at 24, Omaha, NE, at 26, Seattle, WA, at 27, and Nashville, TN, at 28. The highest Days on Market averages were in Augusta, ME, at 108 and Burlington, VT, at 89. Days on Market is the number of days between when a home is first listed in an MLS and a sales contract is signed. 
 
Months Supply of Inventory – Average of 53 metro areas
The number of homes for sale in October 2017 was down 6.3% from September 2017, and down 13.4% from October 2016. Based on the rate of home sales in October, the Months Supply of Inventory decreased to 3.3 from September 2017 at 3.6, compared to October 2016 at 3.9. A 6.0-months supply indicates a market balanced equally between buyers and sellers. In October 2017, 50 of the 53 metro areas surveyed reported a months supply at or less than 6.0, which is typically considered a seller’s market. The metro areas that saw a months supply above 6.0, which is typically considered a buyer’s market, were Miami, FL, at 7.3, Birmingham, AL, at 6.8 and Augusta, ME, at 6.5. The markets with the lowest Months Supply of Inventory continued to be in the west with San Francisco, CA, at 1.0, Denver, CO and Seattle, WA, at 1.3, and San Diego, CA, at 1.8.

Feel free to contact me and I can help break down exactly what these numbers mean for our local market and for your neighborhood.
And lastly, If you or anyone you know is thinking of buying or selling a home - please call or email me. I'm here to help!

Peter Veres
Associate Broker, CRS,ABR,CLHMS,SRES
Elite Asset Management Team - RE/MAX Elite

www.PeteVeres.com
Cell: 505-362-2005
Office: 505-798-1000

For weeks, the mortgage rates have been going up. This is according to a report by Freddie Mac. Multiple sources like Freddie Mac, the Mortgage Bankers Association and the National Association of Realtors, are saying that mortgage rates will continue to rise in the next year.

Right now, it is still at a historic low. It is lower than what it used to be 10 or 20 years ago.

Chart of average mortgage interest rate of the past decades.

Since mortgage rates are projected to rise, it is wise to purchase now before it gets higher by the next 4 quarters.

Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist who can help you navigate thru the process and get the job done for you. Pete Veres has had over 25 years of Sales & Marketing experience and excellent negotiating skills.

You can contact him by calling 505-362-2005 or by emailing him at [email protected].

He has a great website full of the latest information at www.NMElite.com

Homeownership is now gaining momentum. It is now rebounding from recent lows and is going the right path. Everyone has different reasons to buy a home. Owning your own home is a dream come true and it gets better.

Here are 5 financial reasons why you should buy a home.

• Equity – With your monthly mortgage payments, you build equity. You can put this towards home repairs or renovations, pay a debt, or even set it aside for your child’s education.. When you rent, your landlord gets that equity.

• Save on Tax – Who doesn’t want to save on taxes? You can deduct your mortgage interest, profits from selling your home, and property taxes. Speak with an accountant to be sure which taxes can be deducted in your area.

• Steady Housing Cost – Rent gets higher as years pass. When you purchase a home, you get to pay a fixed amount each month. You home value may rise due to inflation, but you’ll still be paying the same amount monthly.

• Renting is more EXPENSIVE – You may not believe it, but it’s true. According to a report done by Trulia, it is now less expensive to own a home than to rent. About 37.4% less to be exact. It varies depending on the location, but it ranges from 6% cheaper in San Jose, CA to 57% cheaper in Detroit, MI.

• Home and Investment – Your home is an investment. The price will continue to rise as years pass which will result in more money if you decide to sell it. And you can live in it. You can live your life and build memories and also earn at the same time. Owning your own home seems like the smartest move to me. What do you think?

Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist, SRES – Senior Real Estate Specialist who can help you navigate thru the process and get the job done for you. Pete Veres has had over 25 years of Sales & Marketing experience and excellent negotiating skills.

You can contact him by calling 505-362-2005 or by emailing him at [email protected].

He has a great website full of the latest information at www.NMElite.com

September Home Sales Slow Amid Strong Prices, Low Inventory

DENVER – September became the fifth month this year to post a decline in home sales compared to a record-setting 2016, while marking the 71st consecutive month of rising sale prices year-over-year, according to the October RE/MAX National Housing Report.

Joining August, July, April and February, September home sales dropped 4.2% year-over-year in the report’s monthly analysis of housing data in 54 metro areas. Going in the opposite direction, the Median Sales Price increased to $225,000. Though the lowest price since March, it was 2.3% higher than September 2016. The last month when home prices did not increase year-over-year was October 2011.

Three-quarters of the way through 2017, other notable numbers from the RE/MAX National Housing Report include:

In the wake of Hurricane Irma in early September, Miami saw home sales drop 35.2% year-over-year. Houston, meanwhile, posted a 3.2% gain despite the impact of Hurricane Harvey in late August.

Days on Market declined by one week, from 56 in September 2016 to 49.

At 3.6, the Months Supply of Inventory was the lowest of any September in the report’s 9-year history. Twenty-three markets are at 3 months or less.

Mirroring this, inventory dropped 14.1% year-over-year, with 46 metro areas seeing fewer homes for sale. Year-over-year, inventory has declined every month since November 2008.

“We’re not seeing any relief from the nationwide housing shortage as we enter the typically slower fall and winter selling seasons,” said Adam Contos, RE/MAX Co-CEO. “Plain and simple, we need more homes, particularly at the entry-level price point. Until then, it will most likely continue to be a seller’s market with homes going from listed to sold quickly.”

Closed Transactions

Of the 54 metro areas surveyed in September 2017, the overall average number of home sales decreased 14.9% compared to August 2017 and decreased 4.2% compared to September 2016. Sixteen of the 54 metro areas experienced an increase in sales year-over-year including, Billings, MT,+18.4%, Burlington, VT, +7.6%, Chicago, IL, 7.4%, Honolulu, HI, +4.6% and Las Vegas, NV +3.8%.

Median Sales Price – Median of 54 metro median prices

In September 2017, the median of all 54 metro Median Sales Prices was $225,000, down 5% from August 2017 but up 2.3% from September 2016. Only five metro areas saw a year-over-year decrease in Median Sales Price or remained unchanged (Trenton, NJ, -8.5%, Hartford, CT, -5.3%, Billings, MT, -2.2%, and Augusta, ME and Baltimore, MD at 0.0%). Eight metro areas increased year-over-year by double-digit percentages, with the largest increases seen in Seattle, WA, +13.7%, San Francisco, CA, +13.2%, Providence, RI, +13%, Las Vegas, NV, +12.2% and Tampa, FL, +11.4%.

Days on Market – Average of 54 metro areas

The average Days on Market for homes sold in September 2017 was 49, up two days from the average in August 2017, and down seven days from the September 2016 average. The four metro areas with the lowest Days on Market were Omaha, NE, at 23, Seattle, WA, at 25, and San Francisco, CA, at 26. The highest Days on Market averages were in Augusta, ME, at 105 and Burlington, VT, at 94. Days on Market is the number of days between when a home is first listed in an MLS and a sales contract is signed.

Months Supply of Inventory – Average of 54 metro areas

The number of homes for sale in September 2017 was down 3.6% from August 2017, and down 14.1% from September 2016. Based on the rate of home sales in September, the Months Supply of Inventory increased to 3.6 from August 2017 at 3.1, compared to September 2016 at 3.9. A 6.0-months supply indicates a market balanced equally between buyers and sellers. In September 2017, 51 of the 54 metro areas surveyed reported a months supply of less than 6.0, which is typically considered a seller’s market. The metro areas that saw a months supply above 6.0, which is typically considered a buyer’s market, were Miami, FL, at 11.8, Augusta, ME, at 6.4, and Birmingham, AL, at 6.3. The markets with the lowest Months Supply of Inventory continued to be in the west with San Francisco, CA, at 1.2, Seattle, WA, at 1.5, Denver, CO, at 1.6 and San Diego, CA, at 1.8.

According to Trulia’s latest report, with a traditional 30-year fixed rate mortgage, owning a home is cheaper than renting. This is within the 100 largest metro area if the U.S.

In San Jose, California, the average is at 3.5% less expensive, a whopping 50.1% less expensive in Baton Rouge, LA and, 33.1% all across the U.S.

In 39 states, owning a home is cheaper according to a study done by GoBankingRates. The map below shows the states where it’s cheaper to own a home.

With interest rates at an all-time low, it’s one of the main reasons why it’s cheaper t own a home than to rent. The current interest rate on a 30-year fixed rate mortgage is 3.91%, according to Freddie Mac. The interest rate would have to be more than twice in order for rent to be cheaper than buying.

I’m sure you already know the pros of owning a home: full control of your property, gradual increase in equity, building new memories, and celebrating special occasions with family and friends. When you really think about it, there’s no reason not to own a home.

Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist, SRES – Senior Real Estate Specialist who can help you navigate thru the process and get the job done for you. Pete Veres has had over 25 years of Sales & Marketing experience and excellent negotiating skills.

You can contact him by calling 505-362-2005 or by emailing him at [email protected].

He has a great website full of the latest information at www.NMElite.com