COVID-19 Mondays With Matthew April 20, 2020

This Monday’s Topic covers U.S. New Homes:  

  • New Home Sales 
  • Household Formations 
  • Year Over Year Changes in Home Ownership vs Renters 
  • New Home Supply & Demand 
  • Impacts to New Development 
  • Looking Forward –  New Home Development 

How questions or feedback? Email me at justine.marx@windermere.com.

Posted on April 20, 2020 at 8:24 pm
Justine Marx | Category: Economics, Real Estate Outlook, WHO LOVES STATS | Tagged , , , , ,

COVID-19 Mondays With Matthew

Matthew shares his thoughts and predictions on how COVID-19 will the mortgage market.

This Monday’s Topic covers JUMBO LOANS:
– What is a Jumbo Loan 

– COVID-19 Impacts to Jumbo Loans & Bond Holders

– Bond Holder Actions

– Jumbo Loan Predictions Post COVID-19 

Join us next week for Matthew’s thoughts and predictions on the mortgage market as it relates to conventional loans.

Posted on April 6, 2020 at 10:58 pm
Justine Marx | Category: Economics | Tagged , , , , , ,

Coronavirus Protections for Home Buyers

 

As the situation develops with the COVID-19 pandemic, Windermere Real Estate is dedicated to taking steps to reduce the spread of the virus while continuing to work with home buyers. To help with this process, here are some ways you as a home buyer can keep yourself and others safe during the buying process.

 

WHEN TOURING HOMES

❱ Only tour the property if you feel healthy.

❱ Ask your Windermere agent to show you the property instead of attending an open house.

❱ Drive separately from your agent to the property.

❱ Be considerate of the seller’s home and wash or sanitize your hands before entry, touching as little as necessary. While many sellers will likely provide it, bring your own hand sanitizer and use before and after you tour the home. You might also consider wearing disposable gloves for further safety.

❱ Ask your agent to confirm with the seller’s agent that they have not recently been sick or in contact with someone suspected of having COVID-19.

❱ Sellers often ask you to take off your shoes when you tour their home or wear protective booties that have been provided. Consider bringing your own booties and throwing them away when you’ve finished touring.

❱ Be mindful of how much you touch things in the home and minimize contact with doors and hand railings.

❱ Reduce the amount of time spent with other people in the same room. This “social distancing” practice can curb person-to-person spread.

DO NOT TOUR HOMES IF

❱ If you are currently self-quarantined because of illness or other reasons, you should not tour homes in person. Ask your Windermere agent to video chat with you while they tour the home so you can see it virtually.

❱ Do not view homes when you’re sick, feeling like you’re about to be sick, or getting over an illness.

❱ We do not recommend touring homes after returning from international travel or travel that exposed you to a large group of people in close quarters, like large events.

 

Find our Coronavirus Protections for Home Sellers here:

Posted on April 1, 2020 at 5:58 pm
Justine Marx | Category: Buyers | Tagged , , , , ,

Mondays with Matthew Gardner, Chief Economist at Windermere

Matthew shares his thoughts and predictions on how COVID-19 will impact the U.S. and our housing market.

This Monday’s Topics:
– Recession
– Health vs. Housing Crisis
– Supply & Demand
– Home Value

 

 

kind words following last week’s video, it makes me so happy
Posted on March 30, 2020 at 7:51 pm
Justine Marx | Category: Economics | Tagged , , , , , , , , , ,

Staying Productive While Staying Home – Painting

Have you been looking at that living room wall, that front door or maybe the entire house thinking to yourself, “If only I were home long enough to do these painting projects”? Is your home in need of some minor updating before you put it on the market? Well here is your chance! While we will be spending all our time at home over the next few weeks, potentially months, future sellers now have the time to complete their painting projects. Painting is a great return on investment when it comes to selling your home.

A clean look of fresh, neutral paint can make your house more appealing to a wide range of buyers. A good paint job helps show buyers that you care about your property and that it will serve them well in the years to come.

Home Depot remains open to accommodate those in need of essential items such as hot water heaters, refrigerators, cleaning supplies, electrical and plumbing repairs, and harsh weather items. They have processes in place to mitigate the spread of COVID-19 to its employees and visitors. Don’t want to go into the store? Call your local store and request pickup or options for delivery.

Painting is not only good for the sale of your home but will also lessen the feeling of “cabin fever” while you are staying productive while staying home.

Posted on March 26, 2020 at 3:30 pm
Justine Marx | Category: Sellers | Tagged , , , , , , ,

COVID-19 – Mondays with Matthew

This Monday’s topics cover: 

– Economy Performance & Predictions by Quarter
– Unemployment Rates
– Need for Economic Stimulation

Posted on March 23, 2020 at 7:36 pm
Justine Marx | Category: Economics | Tagged , , , ,

Mortgage Interest Rates – What Difference Does It Make

A 1% decrease in Mortgage Interest Rates can provide significant savings to your monthly and annual mortgage payments.

Let’s use an example:

Purchase Price: $300,000

Loan Terms:

  • 30 Year Conventional
  • 20% Down
  • Fixed Rate:
    • 5% – Monthly Principal & Interest = $1,288
    • 4% – Monthly Principal & Interest = $1,145
          •   Est Savings = $143 per month, $1,700 per year

 

Just a 1% increase added about $143 to this buyers monthly P&I and a little over $1,700 to the annual P&I. So there is a difference; a big difference. This example is calculated with a 20% down payment. If we adjust that to a lower down payment, say 5%, there is larger savings to be had per month as the buyer is leveraging more on the loan.

 

Purchase Price: $300,000

Loan Terms:

  • 30 Year Conventional
  • 5% Down
  • Fixed Rate:
    • 5% – Monthly Principal & Interest = $1,530
    • 4% – Monthly Principal & Interest = $1,360

   Est Savings = $170 per month , $2,040 per year

 

Engage or re-engage with a lender to understand how these low interest rates can make home ownership more achievable.

Posted on March 19, 2020 at 8:46 pm
Justine Marx | Category: Buyers, WHO LOVES STATS, Windsor Real Estate | Tagged , ,

COVID-19 & The National Housing Market

 

How will COVID-19 impact the national housing market? 

Take-aways from Chief Economist, Matthew Gardner

Housing Market

  • Expect a 10% -15% contraction in the number of home sales for 2020 
  • Contraction is anticipated to be brief and pick back up quickly
  • Qualification and financing is going to more achievable than ever
  • Low supply in new construction, but households are still being created which puts upward price pressure on housing stock

Buyers

  • Mortgage Interest Rates continue to remain extremely low and are expected to remain low
  • Buyers are influenced by the economy and with 70% of the US economy being influenced by consumption and the stock market declining, buyers concerns of job security arise and the option to obtain a down payment from selling stocks is limited
  • Take Action: Buyers, look for lending options that offer achievable money down and doesn’t create a risk for leveraging stocks or completely deplete savings during this uncertain time. Leverage the low interest rates while they last and understand how a decline in interest rates can significantly change your monthly mortgage, making home ownership more achievable in the long term.

Sellers

  • Inventory may drop as, depending on market, sellers may be hesitant to list
  • Sellers may be cautious to open their home to potential buyers
  • Take Action: Discuss virtual safe tours with your agent to keep your listings moving and buyers looking.

Recession

  • Will we experience a recession in 2020? Yes, if the economy continues to see a shirk through Q3.
  • How long will it last? Because there is nothing systemically wrong with the market, if a recession occurs, it will be a short term impact.
  • The economy is expected to recover and to be much healthier than in the second half of 2020 than what is experienced in the first half.
  • Note – A recession is two or more quarters during which the economy shrinks.

 

Most importantly! Order take-out, get coffee to-go, buy gift cards and find every opportunity to continue to support your small businesses and stimulate the overall economy. Action now will lessens the impact when we fully recover from COVID-19.

Posted on March 17, 2020 at 7:15 pm
Justine Marx | Category: Buyers, Buyers & Sellers, Investors, Sellers | Tagged , , , , , ,

St. Patrick’s Day – Crowds, Solitude and The Coronavirus

Have your annual St. Paddy’s Day celebration plans with friends and family and maybe hundreds or thousands of other people now changed due to the COVID-19? I know mine have. In an effort to slow the spread of this disease and to protect others, most of us have chosen to opt out of celebrating the holiday with large groups of people. Not only has the St. Patrick’s Day parades been canceled, but there has been a complete halt to a lot communal events and activities; such as children’s sports, public sporting events, going out to restaurants, family gatherings, etc. So what are we to do with ourselves in this time of expected solitude. There is so much more than locking ourselves in a house full of toilet paper and Lysol mist.

 

Go for a hike, it might be a chilly one, but nature will not infect you and unless you’re high-fiving or allowing yourself to be sneezed on other hikers you should be able to avoid the risk. Don’t want to brace the chilly weather? Go for a drive through the Rockies! Throw on your favorite St. Paddy’s Day t-shirt, load up a couple of healthy friends, pack a lunch, and spend the day viewing the beautiful Colorado scenery. Invite your friends over to wash their hands for 20 seconds with soap and water, hose them down with antibacterial chemical spray, serve the green beer, and enjoy each other’s company over a game of cards. My point is, don’t torture yourself with locking yourself inside away from others, continue to interact while still being thoughtful to the purpose of trying to control something that may not directly affect you, but may affect your loved ones. Respect the greater cause while still being a happy lad.

 

Wishing you all a HAPPY, SAFE, & HEALTHY St. Patrick’s Day!

Posted on March 13, 2020 at 3:16 pm
Justine Marx | Category: Uncategorized | Tagged , , , ,

A History Lesson

 

With the stock market on a wild ride and the Dow Jones dropping nearly 1,000 points last week, it makes some people wonder if the local real estate market might also crash or at least “correct.”

A little history lesson on the Front Range real estate market is in order. 

 

  • In the last 40 years average appreciation per year has been 5.5% 
  • Highest appreciation in a single year was 15.9% in 1994
  • Lowest appreciation rate in a single year was -4.0% in 1982
  • In 2008 Wall Street was in turmoil, the stock market plummeted and the Dow Jones dropped 33.8%. Meanwhile real estate along the Front Range dropped only 2.2%.

 

Bottom line, the Front Range market has no history of crashing or even experiencing a major correction.

Why is that?

The answer is fundamentals.

Our local economy has inherent fundamentals that insulate it from big downturns. 

We have an incredibly diverse economy which is not reliant upon a single industry.  We have all the way from health care, to technology, agriculture, oil and gas, major universities, and financial services (just to name a few).

We are a global destination with a major international airport.

Oh, and the quality of life here isn’t too shabby.

Prices of real estate, just like prices of anything, come down to basic economic principles of supply and demand.

Because of our diverse economy and desirable quality of life, there has been strong, consistent demand for housing along the Front Range.

While there may be little bumps along the way, over the long term our market has proven that it performs.

Posted on March 11, 2020 at 3:19 pm
Justine Marx | Category: Economics, Sellers, WHO LOVES STATS | Tagged , , , ,