Homebot: Last newsletter, we told you an exciting new tool was coming soon. That tool is called “Homebot” and we are rolling it out over the next couple weeks. Homebot is an online tool that helps track your home’s equity using AI-powered valuation and mortgage balance information. Keep your eyes on your email inbox!
Market Summary: As predicted in our prior newsletter, the Denver metro housing market hit an all-time high in March after appreciating 14% in the first three months of the year. At the end of March, total inventory was 2,221; approximately 1/10th of our 40-year average. As household formations increase, demand is as robust as ever, which is particularly impressive given recent interest rate increases.
What do we predict over the next 6 months? When is the best time to buy or sell in 2022? Check out our quarterly newsletter to find out.
Educating prospective and existing clients was, and is, a key component of our daily brokerage activities. In order to stay current in our dynamic industry, we consistently engage in conversations with colleagues and local industry leaders, voraciously read daily industry-specific news, and uncover anecdotal insights from our day-to-day “boots on the ground” experience.
Here are 3 Major Themes:
Interest rates and their impact on purchasing (reference our “Question of the Quarter” later in this email)
How buyers and sellers can “time the market” (covered in our Quarterly Newsletter)
Best home improvements to maximize resale value (paint, flooring, and fixtures are the most common, but contact us for your specific situation)
Bryan and Brianna escaped to downtown Golden for a date night in February, where they stayed at The Dove Inn, an old Victorian home turned boutique bed and breakfast. They highly recommend it! Soon-to-be 3-year-old Emilia was BUSY to start the year. The above photos summarize her adventures, including her first time sledding and obtaining a newly minted library card! Summer is sure to bring even more activities for Emi!
To start 2022, the Jimenez family celebrated 2 birthdays: their youngest daughter, Jamisyn, turned 6 & David may or may not have turned 40 in February, which Bryan may or may have not brought attention to (reference above photo!)... Sadly, they had to put their 12-year-old dog, Hula, down, which wasn't easy for anyone. All eyes at this point are looking ahead to warmer weather and summer break!
Recently, Chris enjoyed a magic show at Cosmo's Magic Factory in Colorado Springs... He HIGHLY recommends a visit! Chris is excited for spring around the corner! Warmer weather means more time spent doing the things he loves most: music, movies, stand-up comedy, and time with friends!
The high and low record sales for the past quarter include: a studio condo in Denver for $89K and 3 bed, 6 bath penthouse condo in Cherry Creek for $9.0MM. Click the icon below to check 'em out!
**QUESTION of the QUARTER: What do I need to know about interest rates?
Case in Point: We had a few dozen conversations with clients about interest rates during the quarter. They are summarized below:
Q: Where are interest rates now? How do they impact my mortgage payment? Where do you foresee them going in the near future?
A: Great questions! You’ve probably seen quite a few recent headlines about interest rates. Here is the critical information you need to know:
As of the date of this newsletter, interest rates on a 20% down, 30-year conventional mortgage with 720+ credit on an owner-occupied single-family purchase are 5.00%. This is an increase from 3.250% at the beginning of 2022.
As a rule of thumb, every 1.00% increase in interest rate is about 10% more in monthly mortgage payment. Thus, a monthly payment on a $500K mortgage at 4.00% is $2,387 vs. $2,108 at 3.00%, an increase of almost $280. Since interest rates have increased approximately 1.75% in 2022, monthly payments on a $500K mortgage have increased approximately $508/month. Obviously, this is a significant increase and buyers need to be aware.
We anticipate interest rates will remain steady or increase slightly in Q2 and beyond. It’s important to note that very few, if anyone, can accurately predict where rates are going in the short-term as interest rate volatility is at an all-time high, with rates moving as much as a quarter-point in a single day. Given volatility and the unpredictable nature of the market, we’re advising risk-averse clients to lock-in rates shortly after going under contract.
Contact us anytime you have a real estate-related decision – refi questions, property tax concerns, renovation ideas, etc. We’re more than just Realtors, we’re real estate advisors.
As we enter into summer, we are delighted to be your real estate resource and connector. We are Greenwood Estates Realty, "The best real estate experience you've ever had." Enjoy the beautiful Colorado spring ahead; we'll catch you soon!
Blessings, Bryan & David
P.S. - check out previous versions of our Quarterly Newsletter