October 2018 Market Update

Happy October!

For our friends on the Denver Metro Association of Realtors Market Trends Committee, this has been the most action-packed season they have studied in quite some time. Just as we are winding down another year of low inventory and lower interest rates, something happened that many did not see coming.

In September, housing inventory continued to move higher, even though it typically decreases this time of year, and home prices dropped nearly 5%, since its record-peak highs this past May and June. A quick departure from what had become the norm, as sales of single-family homes over $500,000 dropped 33% from August to September, causing sellers some turbulence they were not braced for. Price reductions and longer days on the market are grabbing the attention of buyers who were taking a break from the buying frenzy, to now trying to find a “deal” that did not exist even a month or two ago.

More signs of cooling can be seen with months of inventory increasing to 2.33 months for single-family homes in September compared to 1.68 months the month prior and increasing to 1.93 months for condos compared to 1.48 months in August.

Going forward, expect interest rates to rise into 2019 and beyond as economic indicators stay strong, which will shelf some buyer’s opportunity to make a move. Also, look for listing inventory to find higher levels than we have seen, which could bring investors back to the table looking for fresh opportunity. The sky is most certainly not falling but things are shifting a bit back towards a balanced market.

Blurb courtesy of Justin Knoll

Cheers,

Madison & Company Properties

Finding a Home You Love in a Crazy Market

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Denver’s housing market is booming. It’s hot, it’s popular, and it seems that everyone learned Denver’s once well-kept secret…that it’s the best. With so many people moving to this great city, inventory has been low and demand has been high. Looking at the housing market, one might feel discouraged and wonder if it is even worth it to buy right now. We’re here to assure you – it is! Despite the high demand and low inventory of the Denver housing market, it is possible to find a home you love as you make this wonderful city your permanent home (until the next adventure, that is)!

FIND AN AGENT

It is vital to find a great real estate agent who is knowledgable about the market, a real estate expert, and someone dedicated to their clients. The right real estate agent will fight tirelessly for their clients, finding you the right home. Madison & Company Properties has over 140 truly incredible, highly recommended, and vetted Realtors® who can help you find your new home. Check out our website to find a Madison Realtor® who is right for you!

PATIENCE IS A VIRTUE

Finding the right home probably won’t happen overnight. It’s important to take time to learn about different neighborhoods, and know what you want going into it. Have a list of must-haves, really-wants, and can-live-withouts. Be flexible, you might get the giant backyard but no wrap-around patio, or there are the perfect number of rooms, but you wish the kitchen had a different layout. No matter the housing market, it is almost impossible to find a home that is 100% perfect (unless you design and build yourself!), but you can find the 100% right home. And remember – you can always paint, redesign, or renovate!

GET PRE-QUALIFIED

When purchasing a home, it is important to know your budget and what you can afford. Before even beginning to look for homes, find a mortgage broker and get pre-qualified on your mortgage loan.

YOU’LL LOSE A FEW

And it will be okay. Bidding wars happen, folks come in with a bajillion dollars over asking price and you get bumped. It happens to everyone, and it will all work out in the end. This is one of the reasons it is important to hire a Realtor®, it is their job to negotiate, help you find the best home, and work with the seller to make sure everything is in line.

Things Your Realtor® Wishes You Knew

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1. Price to sell quickly.
The longer a home is on the market, the less likely it is to get a good or fair price. It is prudent to list a home at a price that is in line with the current market trends and to get it off the market as quickly as possible.

2. Don’t take out new loans or credit cards.
Your credit score is lowered when you open a new credit card or take out a loan, which will mess up the loan process and could result in a delayed or cancelled closing. Wait until the deal is closed on your new home before taking out new loans or increasing your credit card usage.

3. Selling and buying take time. Don’t expect it to happen overnight, and be ready to put time and dedication into the process. Take the proper steps, like talking to your landlord about your leasing terms if you are renting.

4. Get pre-approved.
Before beginning the buying process, apply for loans and get verified by the bank. Any seller will want to know you are not just ready emotionally to buy their home but you are financially ready as well.

5. Leave a good impression. First impressions are everything! When selling a home, be sure to present a clean home that smells good, is a comfortable temperature, and has attractive and appealing decor. Snacks are an added bonus!

6. Yes, you do need a Realtor®! Realtors® adhere to a strict code of ethics. They are experts in the market and will look after YOUR best interest. They’re expert negotiators, and will walk with you through the entire home buying or selling process.

7. Pricing a home too high never works.
Potential buyers will be deterred by the overpriced home and the listing will sit on the market too long. Price reductions can be the kiss of death as you try to catch up to the market.

8. You can’t rush buying a home.
Purchasing a home is a huge life decision and investment. Take your time, carefully consider everything, and use an expert Realtor® to help you find and invest in the right home for you.

9. Don’t take low offers personally. It’ll be okay. Just cry with your Realtor® and move on, higher offers will come. The best offer will present itself and you need to be ready when it does. Emotions limit that ability.

10. Don’t look at homes you can’t afford. Look at homes that fall within your price range. Looking at homes you can’t afford will only lead to disappointment.

Ready to buy or sell? Contact of of our expert Realtors® today! 

Featured Agent: Heather Hankins

Heather Hankins Transparent BackgroundHeather Hankins is passionate about helping people realize their dreams of owning a home. Her career is driven by the joy and fulfillment it brings her to play such a vital role in her clients’ happiness.

Heather is about as Colorado Native as you can get without actually being born in Colorado. Her family moved from Oregon when Heather was four years old, so Colorado is truly all she’s ever known. After growing up in the small northern Colorado town of Berthoud, she attended University of Northern Colorado in Greeley and moved to Denver after graduation.

Her career began with a job at Wells Fargo, then known as United Banks. She transitioned into the title business, working at First American Heritage Title. It was there that she met Jim.

Heather and Jim got married, and have now been married for twenty years. They’ve lived in Highlands Ranch almost their entire marriage, and love to ski and golf. Their two sons are in those glorious teenage years. Her older son, Griffen, is a freshman in college; the younger, Zach, is a sophomore in high school. Their youngest “child” is Molly, a sweet yellow lab.

While working in the title business, Heather first met Madison’s founder and broker owner, Todd Narlinger. After Todd’s father retired, Todd approached Heather with the opportunity to work on his team as a Realtor® at Madison & Company.

“I knew it was a once-in-a-lifetime opportunity I couldn’t pass up,” Heather said.

Heather’s experience from working as a title sales rep had allowed her to interact with numerous real estate companies, but she found the culture of Madison & Company to be “like no other.”

Heather Hankins FamilySeven years later and Heather is a vital asset to the Narlinger Team and Madison & Company as a whole. She works primarily in the south Denver area, but has sold homes as far west as Winter Park, as far south as Monument, and as far north as Longmont. Her primary focus is to help her clients realize their dreams, wherever in Colorado that takes her.

Heather believes in the American dream of owing a home, and her greatest joy and privilege is helping clients realize that dream.