No Comments

What Does 2021 Have in Store for Home Values?

 

According to the latest CoreLogic Home Price Insights Report, nationwide home values increased by 8.2% over the last twelve months. The dramatic rise was brought about as the inventory of homes for sale reached historic lows at the same time buyer demand was buoyed by record-low mortgage rates. As CoreLogic explained:

“Home price growth remained consistently elevated throughout 2020. Home sales for the year are expected to register above 2019 levels. Meanwhile, the availability of for-sale homes has dwindled as demand increased and coronavirus (COVID-19) outbreaks continued across the country, which delayed some sellers from putting their homes on the market.

While the pandemic left many in positions of financial insecurity, those who maintained employment and income stability are also incentivized to buy given the record-low mortgage rates available; this is increasing buyer demand while for-sale inventory is in short supply.”

Where will home values go in 2021?

Home price appreciation in 2021 will continue to be determined by this imbalance of supply and demand. If supply remains low and demand is high, prices will continue to increase.

Housing Supply

According to the National Association of Realtors (NAR), the current number of single-family homes for sale is 1,080,000. At the same time last year, that number stood at 1,450,000. We are entering 2021 with approximately 370,000 fewer homes for sale than there were one year ago.

However, there is some speculation that the inventory crush will ease somewhat as we move through the new year for two reasons:

1. As the health crisis eases, more homeowners will be comfortable putting their houses on the market.

2. Some households impacted financially by the pandemic will be forced to sell.

Housing Demand

Low mortgage rates have driven buyer demand over the last twelve months. According to Freddie Mac, rates stood at 3.72% at the beginning of 2020. Today, we’re starting 2021 with rates one full percentage point lower than that. Low rates create a great opportunity for homebuyers, which is one reason why demand is expected to remain high throughout the new year.

Taking into consideration these projections on housing supply and demand, real estate analysts forecast homes will continue to appreciate in 2021, but that appreciation may be at a steadier pace than last year. Here are their forecasts:What Does 2021 Have in Store for Home Values? | MyKCM

Bottom Line

There’s still a very limited number of homes for sale for the great number of purchasers looking to buy them. As a result, the concept of “supply and demand” mandates that home values in the country will continue to appreciate.

No Comments

The Holidays Aren’t Stopping Homebuyers This Year

The Holidays Aren’t Stopping Homebuyers This Year | MyKCM

Black Friday and Cyber Monday are behind us, yet finding the perfect holiday gifts for friends and family is certainly still top of mind for many right now. This year, there’s another type of buyer that’s very active this holiday season – the homebuyer.

Each month, ShowingTime releases their Showing Index which tracks the average number of appointments received on active U.S. house listings. The most recent index notes:

“The Showing Index reported a 60.9 percent jump in nationwide showing traffic year over year in October, the sixth consecutive month to see an increase over last year.”

Here’s the breakdown of the latest activity by region of the country compared to this time last year:

  • The Northeast increased by 65.5%
  • The West increased by 64.7%
  • The Midwest increased by 55.7%
  • The South increased by 54.7%

Why is the traffic so active?

The health crisis definitely put homebuying plans on pause for many earlier this year. Buyers, however, are in the market and making moves well past the typical busy homebuying seasons of spring and summer.

One of the main reasons buyer traffic has continued to soar in the second half of 2020 is how dramatically mortgage rates have fallen. According to Freddie Mac, the average mortgage rate last December was 3.72%. Today, the rate is a full percentage point lower.

Bottom Line

There are first-time, move-up, and move-down buyers actively looking for the home of their dreams this winter. If you’re thinking of selling your house in 2021, you don’t need to wait until the spring to do it. Your potential buyer is very likely searching for a home in your neighborhood right now.

No Comments

Is Buying a Home Today a Good Financial Move?

Is Buying a Home Today a Good Financial Move? | MyKCM

There’s no doubt 2020 has been a challenging year. A global pandemic coupled with an economic recession has caused heartache for many. However, it has also prompted more Americans to reconsider the meaning of “home.” This quest for a place better equipped to fulfill our needs, along with record-low mortgage rates, has skyrocketed the demand for home purchases.

This increase in demand, on top of the severe shortage of homes for sale, has also caused more bidding wars and thus has home prices appreciating rather dramatically. Some, therefore, have become cautious about buying a home right now.

The truth of the matter is, even though homes have appreciated by a whopping 6.7% over the last twelve months, the cost to buy a home has actually dropped. This is largely due to mortgage rates falling by a full percentage point.

Let’s take a look at the monthly mortgage payment on a $300,000 house one year ago, and then compare it with that same home today, after it has appreciated by 6.7% to $320,100:Is Buying a Home Today a Good Financial Move? | MyKCMCompared to this time last year, you’ll actually save $87 dollars a month by purchasing that home today, which equates to over one thousand dollars a year.

But isn’t the economy still in a recession?

Yes, it is. That, however, may make it the perfect time to buy your first home or move up to a larger one. Tom Gil, a Harvard trained negotiator and real estate investor, recently explained:

“When volatile assets are facing recessions, hard assets, such as gold and real estate, thrive. Historically speaking, residential real estate has done better compared to other markets during and after recessions.”

That thought is substantiated by the fact that homeowners have 40 times the net worth of renters. Odeta Kushi, Deputy Chief Economist for First American Financial Corporation, recently said:

“Despite the risk of volatility in the housing market, numerous studies have demonstrated that homeownership leads to greater wealth accumulation when compared with renting. Renters don’t capture the wealth generated by house price appreciation, nor do they benefit from the equity gains generated by monthly mortgage payments, which become a form of forced savings for homeowners.”

Bottom Line

With home prices still increasing and mortgage rates perhaps poised to begin rising as well, buying your first home, or moving up to a home that better fits your current needs, likely makes a ton of sense.

No Comments

6 SMART HOME DEVICES FOR LESS THAN $100

Every day, the world presents us with new technology. It seems like there isn’t much left that technology can’t do. Thankfully, with every advancement, many items have become more affordable. While a high-tech home may not be the choice for everyone, there are plenty of budget-friendly options to try out if you are interested in making your home a little bit more accessible. Here are 6 items to try:

  1. Smart Speakers

    Setting reminders, asking questions, and playing music on demand has never been so easy! Smart speakers are capable of making lists for you, looking up recipes, and so much more.

  2. Smart Plugs

    Left the coffee pot plugged in and need to turn it off, but you aren’t home? Smart plugs allow you to turn off (and on) something plugged in from your phone. These are also great for lighting systems like lamps or even holiday lights.

  3. Smart Doorbells

    Smart doorbells are an incredible investment. Monitor who is ringing your doorbell, when packages are dropped off, and so much more all with your phone!

  4. Smart Locks

    Lost keys? Need to let someone in to water your plants while you are out of town? Smart Locks allow you to use your phone to lock and unlock your door, or just use a keypad!

  5. Smart Switches

    Smart switches allow you to turn lights off and on with your phone. Next time you forget to turn off the kitchen light and you are already in bed, smart switches can save the day!

  6. Smart Bulbs

    Adjust the brightness of color in any room when you install smart bulbs. Great for kids or rooms where you want to be able to dim the lights!

No Comments

The 9 Most Livable Neighborhoods in Colorado Springs

liveable neighborhoods

Colorado Springs consistently ranks among the most livable cities in all of America. With a great school system, diverse housing, gorgeous natural landscape and plentiful employment opportunities, the area is popular across diverse demographics. There are a number of great neighborhoods in Colorado Springs. Here’s a list of some of our favorites. 

 

  1. Briargate: Located in the city center, Briargate is one of the most popular communities for young families. The area is well-placed near excellent schools, shopping centers, restaurants and a YMCA. The local real estate mainly consists of large homes at competitive prices. The neighborhood is just a short drive of premier employment opportunities. Briargate is also situated near the Air Force Academy, making it popular among military personnel with families.

 

  1. The Broadmoor: Situated in the south part of Colorado Springs, The Broadmoor is one of the city’s safest and wealthiest neighborhoods. Most of the area’s residents are upper-middle-class, white-collar professionals who can afford larger properties. The neighborhood is home to the prestigious Broadmoor Hotel and Resort, known for its tennis courts, golf course and spa. The Broadmoor area features mature trees, manicured lawns, quiet, peaceful streets and an incredibly low crime rate. 

 

  1. Marksheffel: Situated Northeast of the city, Marksheffel has been relatively underdeveloped until recently. With a modern infrastructure now in place, the neighborhood is on the cusp of a growth explosion. It’s a great opportunity for buyers who are looking to grow along with their community; it’s also close to the Colorado Springs Airport.

 

  1. West Colorado Springs: Surrounded by public lands, private clubs and retail and commercial properties, West Colorado Springs offers more affordable real estate compared to other areas. This makes it a nice option for families who want to be surrounded by natural beauty liveable neighborhoods in co springswhile staying close to Colorado College, UCCS and the vibrant downtown area. 

 

  1. Northgate: Located at the northern edge of the city, Northgate sits near the United States Air Force Academy, Pikes Peak Community College and a popular school district. With great educational opportunities and thriving shopping centers, the area is a good neighborhood for families with kids of every age. With quick access to Monument, Briargate and the Black Forest, Northgate also plays host to InterQuest Marketplace, the Bass Pro Shop Center and Colorado Crossing, which features great shopping, distinctive restaurants and movie theaters.

 

  1. Black Forest: The communities in this woodsy area are perfect for parents who want their children to grow up outside amid endless outdoor activities. You can also take advantage of big-city amenities including nearby movie theaters and restaurants while still enjoying a quiet retreat from the fast-paced urban lifestyle. Black Forest is home to Black Forest Regional Park and Fox Run Regional Park. which both provide ample outdoor activities such as biking and hiking.

 

  1. Old North End: If you love history, check out this lovely area north of downtown. The neighborhood is a mix of large, stately properties built in the late 1800s along with several smaller homes built later. There are also a lot of great housing options along neighboring Wood Avenue and The Audubon neighborhood which are all within moments of popular downtown attractions.

 

  1. Flying Horse: This master-planned community offers luxury country club homes from custom builders. Residents enjoy neighborhood shops, local trails, a K-12 academic campus and a beautiful private, 18-hole championship golf course. Flying Horse sits at the northern edge of Colorado Springs and is 50 minutes from Denver. The neighborhood is also well placed near premier employment opportunities in a variety of different industries, including technology, tourism, aerospace and defense, medical, IT, military, manufacturing, sports and education. 

 

  1. Rockrimmon: Composed mostly of small-business owners, white-collar professionals and military families, Rockrimmon is a popular neighborhood for young families. Situated in the Northwest part of town, the area offers easy access to both downtown Colorado Springs and the U.S. Air Force Academy. While it does offer access to numerous modern amenities, the neighborhood also sits amid a gorgeous natural landscape. In fact, it’s not uncommon to spot deer, bighorn sheep and foxes due to the close proximity near several nearby wildlife parks.

 

If you’re planning to buy a home or need help selling your existing property, contact The Wheaton Team. For more than a decade, we’ve specialized in residential real estate in the top neighborhoods throughout Colorado Springs and all of El Paso County. Reach out to our skilled team of professionals and let us help you find the home of your dreams.

No Comments

The Catch You Shouldn’t Fall For

contract

Buying or Selling a Home OnlineWith the growth of online tools, companies are quickly building products to serve the real estate community. After all, it’s a lucrative industry, home buying and selling will always be a thing – even if it does slow down, and companies around the world are diving in to make as much money off consumers as possible.

What are they selling? The ease. The ease of buying or selling a home online. The catch? You actually don’t benefit from these online quick-sale services. In fact, you could find yourself out of tens-of-thousands in cost difference. If you’re in the market to buy or sell, and are considering foregoing a real estate agent for an online service, be sure you read the fine print. You’ll often times find that you aren’t benefiting at all. Will they buy your home upfront to resale, so you don’t have to worry about the headache? Sure, but you may have been able to get $50,000 more for your house using a Realtor. Can you see and purchase your dream home through said services and “save” on agent commissions? Sure, but you’ll probably be overpaying for the home anyway.

The real estate industry is heavily regulated for licensed professionals to ensure the consumer is always getting the best representation for the best savings. These online services don’t require regulation and licensing, therefore, they can get away with fine print “scams.”

Be sure you do your research. A Realtor is there to make YOU the most money. Quick online services are focused on making their business the most money – not focused on how much you can sell your home for or how much you can save when you buy. Licensed professionals exist for a reason, be sure you don’t lose more than you can afford to by using a gimmicky online service that dubs buying and selling an “easy” process.

Call The Wheaton Team today, we’ll make the process easy!

719-536-4581

info@TheWheatonTeam.com