Area Real Estate News & Market Trends

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

Feb. 3, 2021

Market Activity Report - Aurora CO, 80016

Click on the below picture to open the PDF Real Estate Market Activity Report for zip code 80016.

Posted in Market Updates
Jan. 1, 2021

2021 Housing Forecast [INFOGRAPHIC]

 

 

Some Highlights

  • Experts project an optimistic year for the 2021 housing market.
  • With mortgage rates forecasted to remain low, high buyer demand is expected to fuel more home sales and continue to increase home prices.
  • Let’s connect today to determine how to make your best move in the new year.

 

Contact Tom or Ron for all your real estate needs and get all your questions answered.

Tom Johnson, Realtor – (303) 856-6185, tomjohnson@yourcastle.org

Ron House, Realtor – (720) 308-5117, Rhouse01@msn.com

Follow Tom and Ron on Facebook

www.tomandron.com

About Tom & Ron:  As seen on HGTV's "House Hunters Family", Tom Johnson and Ron House make up a dynamic real estate team that proudly serves the Denver/Aurora metro area and Buckley Air Force Base. As veterans themselves, they bring a breadth of knowledge to the VA Loan process that differentiates them from their industry colleagues. Tom dedicated 21 years of service in the Air Force before retiring in 2009 from the Security Forces career field and Ron proudly served several years in the Army within a Military Intelligence Battalion. Together, they uphold the core values the military instilled in them. “Service before Self” and “Integrity First” is evident through all their real estate transactions. Those seeking real estate services will not find a more dedicated and knowledgeable team. Their unmatched communication and benefits they provide to their clients’ place this team on a pedestal all by themselves. They love what they do because of who they serve!

We look forward to serving you getting you moved into the perfect home that fits your wants and needs!

Dec. 31, 2020

The Difference a Year Makes for Homeownership

Over the past year, mortgage rates have fallen more than a full percentage point, hitting a new historic low 15 times. This is a great driver for homeownership, as today’s low rates provide consumers with some significant benefits. Here’s a look at three of them.

1. Move-up or Downsize: One option is to consider moving into a new home, putting the equity you’ve likely gained in your current house toward a down payment on a new one that better meets your needs – something that’s truly a perfect fit, especially if your lifestyle has changed this year.

2. Become a First-Time Homebuyer: There are many financial and non-financial benefits to owning a home, and the most important thing is to first decide when the time is right for you. You have to determine that on your own, but know that now is a great time to buy if you’re considering it. Just take a look at the cost of renting vs. buying.

3. Refinance: If you already own a home, you may decide you’re going to refinance. It’s one way to lock in a lower monthly payment and save more over time. However, it also means paying upfront closing costs, too. If you want to take this route, you have to answer the question: Should I refinance my home?

Why 2020 Was a Great Year for Homeownership

Last year, the average mortgage rate was 3.93% (substantially higher than it is today). If you waited for a better time to make a move, market conditions have improved significantly. Today’s low mortgage rates are a huge perk for buyers, so it’s a great time to get more for your money and consider a new home.

The chart below shows how much you would save per month based on today’s rates compared to what you would have paid if you purchased a home exactly one year ago, depending on how much you finance:

Bottom Line

If you’ve been waiting since last year to make your move into homeownership or to find a house that better meets your needs, today’s low mortgage rates may be just what you need to get the process going. Let’s connect today to discuss how you may benefit from the current rates.

 

Contact Tom or Ron for all your real estate needs and get all your questions answered.

Tom Johnson, Realtor – (303) 856-6185, tomjohnson@yourcastle.org

Ron House, Realtor – (720) 308-5117, Rhouse01@msn.com

Follow Tom and Ron on Facebook

www.tomandron.com

 

About Tom & Ron:  As seen on HGTV's "House Hunters Family", Tom Johnson and Ron House make up a dynamic real estate team that proudly serves the Denver/Aurora metro area and Buckley Air Force Base. As veterans themselves, they bring a breadth of knowledge to the VA Loan process that differentiates them from their industry colleagues. Tom dedicated 21 years of service in the Air Force before retiring in 2009 from the Security Forces career field and Ron proudly served several years in the Army within a Military Intelligence Battalion. Together, they uphold the core values the military instilled in them. “Service before Self” and “Integrity First” is evident through all their real estate transactions. Those seeking real estate services will not find a more dedicated and knowledgeable team. Their unmatched communication and benefits they provide to their clients’ place this team on a pedestal all by themselves. They love what they do because of who they serve!

We look forward to serving you getting you moved into the perfect home that fits your wants and needs!

Dec. 31, 2020

Why It’s Important to Price Your House Right Today

Even in today’s sellers’ market, setting the right price for your house is one of the most valuable things you can do. According to the U.S. Economic Outlook by the National Association of Realtors (NAR), existing home prices nationwide are forecasted to increase by 4.5% in 2021. This means experts anticipate home values will continue climbing next year. Danielle Hale, Chief Economist for realtor.com, notes:

“We expect price gains to ease somewhat in 2021 and end 5.7% above 2020 levels, decelerating steadily through the spring and summer, and then gradually reaccelerating toward the end of the year.”

How to Price Your House

When it comes to setting the right price for your house, the goal is to increase visibility and drive more buyers your way. Instead of trying to win the negotiation with one buyer, you should price your house so that demand is maximized and more buyers want to take a look.

As a seller in today’s market, you might be thinking about pricing your house on the high end while so many of today’s buyers are searching harder than ever just to find a home to purchase. But here’s the thing – a high price tag does not mean you’re going to cash in big on the sale. It’s actually more likely to deter buyers.

Right now, even when there are so few houses for sale, your house is more likely to sit on the market longer or require a price drop that can send buyers running if it isn’t priced just right from the very beginning.

It’s important to make sure your house is priced correctly by working with a trusted real estate professional throughout the process. When you price it competitively from the start, you won’t be negotiating with one buyer. Instead, you’ll likely have multiple buyers competing for the house, potentially increasing the final sale price.

The key is to make sure your house is priced to sell immediately. This way, it will be seen by the greatest number of buyers. More than one of them may be interested, and it will be more likely to sell at a competitive price.

Bottom Line

Let’s connect to price your house correctly from the start so you can maximize your exposure and your return.

 

 

Contact Tom or Ron for all your real estate needs and get all your questions answered.

Tom Johnson, Realtor – (303) 856-6185, tomjohnson@yourcastle.org

Ron House, Realtor – (720) 308-5117, Rhouse01@msn.com

Follow Tom and Ron on Facebook

www.tomandron.com

About Tom & Ron:  As seen on HGTV's "House Hunters Family", Tom Johnson and Ron House make up a dynamic real estate team that proudly serves the Denver/Aurora metro area and Buckley Air Force Base. As veterans themselves, they bring a breadth of knowledge to the VA Loan process that differentiates them from their industry colleagues. Tom dedicated 21 years of service in the Air Force before retiring in 2009 from the Security Forces career field and Ron proudly served several years in the Army within a Military Intelligence Battalion. Together, they uphold the core values the military instilled in them. “Service before Self” and “Integrity First” is evident through all their real estate transactions. Those seeking real estate services will not find a more dedicated and knowledgeable team. Their unmatched communication and benefits they provide to their clients’ place this team on a pedestal all by themselves. They love what they do because of who they serve!

We look forward to serving you getting you moved into the perfect home that fits your wants and needs!

Posted in Home Sellers
Dec. 30, 2020

Did You Outgrow Your Home in 2020?

It may seem hard to imagine that the home you’re in today – whether it’s your starter home or just one you’ve fallen in love with along the way – might not be your forever home.

Many needs have changed in 2020, and it’s okay to admit if your house no longer fits your lifestyle. If you’re now working remotely, facilitating virtual school, trying to exercise at home, or simply just spending more time in your own four walls, you may be bursting at the seams in your current house.

According to the latest Home Price Insights from CoreLogic, prices have appreciated 7.3% year-over-year. At the same time, the National Association of Realtors (NAR) reports that inventory has dropped 22% from one year ago.

These two statistics are directly related to one another. As inventory has decreased and demand has increased, prices have been driven up.

This is great news if you own a home and you’re thinking about selling. The equity in your house has likely risen as prices have increased. Even better is the fact that there’s a large pool of buyers out there searching for the American dream, and your home may be high on their wish list.

Bottom Line

If you think you’ve outgrown your current home, let’s connect to discuss local market conditions and determine if now is the best time for you to sell.

 

Contact Tom or Ron for all your real estate needs and get all your questions answered.

Tom Johnson, Realtor – (303) 856-6185, tomjohnson@yourcastle.org

Ron House, Realtor – (720) 308-5117, Rhouse01@msn.com

Follow Tom and Ron on Facebook

www.tomandron.com

 

About Tom & Ron:  As seen on HGTV's "House Hunters Family", Tom Johnson and Ron House make up a dynamic real estate team that proudly serves the Denver/Aurora metro area and Buckley Air Force Base. As veterans themselves, they bring a breadth of knowledge to the VA Loan process that differentiates them from their industry colleagues. Tom dedicated 21 years of service in the Air Force before retiring in 2009 from the Security Forces career field and Ron proudly served several years in the Army within a Military Intelligence Battalion. Together, they uphold the core values the military instilled in them. “Service before Self” and “Integrity First” is evident through all their real estate transactions. Those seeking real estate services will not find a more dedicated and knowledgeable team. Their unmatched communication and benefits they provide to their clients’ place this team on a pedestal all by themselves. They love what they do because of who they serve!

We look forward to serving you getting you moved into the perfect home that fits your wants and needs!

Dec. 29, 2020

More Generations Are Living Under One Roof This Year

This year challenged us to reprioritize everything – from the way we use our time to where we work, how we socialize and gather together, and our needs at home. For many, this also meant making decisions about how to best support and engage with our extended families, near and far.

In some cases, we weren’t able to see our relatives and loved ones who were living in senior facilities. In others, maybe older children moved back home. Jessica Lautz, Vice President of Demographics and Behavioral Insights for the National Association of Realtors (NAR), says:

A lot of families have an aging senior relative who was living independently or in senior care and wanted to move them into their home.

These changes led more homebuyers to invest in multi-generational homes to accommodate more long-term plans. A multi-generational home, according to the 2020 Profile of Home Buyers and Sellers from NAR, is a home that has adult siblings, adult children over the age of 18, parents, and/or grandparents in the household.

A recent study from NAR shows that since the health crisis began, there’s been an increase in purchasing trends for homes that cater to this dynamic:

“Buyers who purchased after March were more likely to purchase a multi-generational home at 15% compared to 11% who purchased before April.”

There are many reasons for this uptick in preference toward multi-generational homes. The graph below shows the top two reasons and how they’ve increased this year:More Generations Are Living under One Roof This Year | MyKCM

Bottom Line

More homeowners are making arrangements to accommodate their loved ones so they can safely take care of them at home. Many home builders are building home specifically for this style of living.  If you’re in a similar situation, let’s connect to discuss your options in our local area and maybe even have your whole family under one roof by early next year. 

 

Contact Tom or Ron for all your real estate needs and get all your questions answered.

Tom Johnson, Realtor – (303) 856-6185, tomjohnson@yourcastle.org

Ron House, Realtor – (720) 308-5117, Rhouse01@msn.com

Follow Tom and Ron on Facebook

www.tomandron.com

About Tom & Ron:  As seen on HGTV's "House Hunters Family", Tom Johnson and Ron House make up a dynamic real estate team that proudly serves the Denver/Aurora metro area and Buckley Air Force Base. As veterans themselves, they bring a breadth of knowledge to the VA Loan process that differentiates them from their industry colleagues. Tom dedicated 21 years of service in the Air Force before retiring in 2009 from the Security Forces career field and Ron proudly served several years in the Army within a Military Intelligence Battalion. Together, they uphold the core values the military instilled in them. “Service before Self” and “Integrity First” is evident through all their real estate transactions. Those seeking real estate services will not find a more dedicated and knowledgeable team. Their unmatched communication and benefits they provide to their clients’ place this team on a pedestal all by themselves. They love what they do because of who they serve!

We look forward to serving you getting you moved into the perfect home that fits your wants and needs!

 

Dec. 25, 2020

Thank You For Your Support

With millions of dollars in real estate sales this year we want to take a moment to thank all of you for your support and trust in us to perform to our high level of standards and expectations.  We look forward to 2021 being another record breaking year and providing our exceptional service to many many more of you looking to buy and/or sale.  To all of you and especially to the men and women of Buckley Air Force Base and all of the armed forces we with you a Happy Holidays and a prosperous and healthy 2021!

Tom and Ron

 

Contact Tom or Ron for all your real estate needs and get all your questions answered.

Tom Johnson, Realtor – (303) 856-6185, tomjohnson@yourcastle.org

Ron House, Realtor – (720) 308-5117, Rhouse01@msn.com

Follow Tom and Ron on Facebook

www.tomandron.com

 

About Tom & Ron:  As seen on HGTV's "House Hunters Family", Tom Johnson and Ron House make up a dynamic real estate team that proudly serves the Denver/Aurora metro area and Buckley Air Force Base. As veterans themselves, they bring a breadth of knowledge to the VA Loan process that differentiates them from their industry colleagues. Tom dedicated 21 years of service in the Air Force before retiring in 2009 from the Security Forces career field and Ron proudly served several years in the Army within a Military Intelligence Battalion. Together, they uphold the core values the military instilled in them. “Service before Self” and “Integrity First” is evident through all their real estate transactions. Those seeking real estate services will not find a more dedicated and knowledgeable team. Their unmatched communication and benefits they provide to their clients’ place this team on a pedestal all by themselves. They love what they do because of who they serve!

We look forward to serving you getting you moved into the perfect home that fits your wants and needs!

 

Posted in Miscellaneous
Dec. 21, 2020

Homeowner Equity Increases an Astonishing $1 Trillion

In a year that was financially devastating for many Americans, some good news for most homeowners is the dramatic gain in home equity over the last twelve months. Last week, CoreLogic released its 2020 3rd Quarter Homeowner Equity Insights report, which reveals four major findings:

  1. U.S. homeowners with mortgages have seen their equity increase by a total of $1 trillion since the third quarter of 2019.
  2. The average homeowner gained approximately $17,000 in equity over the past year.
  3. This is a 10.8% increase in equity over last year.
  4. The average household with a mortgage now has $194,000 in home equity.

This has given many homeowners the ability to redesign their homes to meet their changing needs. Frank Martell, President and CEO of CoreLogic, explains in the report:

“The housing market has remained a strong pillar in an otherwise tumultuous economic year. A sharp rise in demand, spurred by record-low interest rates, continues to bolster homeowner equity. And with many people now spending more time than ever before at home, some homeowners have tapped into their strengthening equity to fund renovations.”

This build-up in equity also gives more options to homeowners who have been financially impacted by the pandemic. Today, homeowners with substantial equity are in a much better position to work out a deal with their lender if they cannot pay their mortgage. Alternatively, they also have the power to sell and walk away with their equity in the form of cash or as a down payment toward a more affordable house. Frank Nothaft, Chief Economist for CoreLogic, addresses the issue in the report:

“Over the past year, strong home price growth has created a record level of home equity for homeowners…This provides an important buffer to protect families if they experience financial difficulties and is one reason for the generational-low in foreclosure rates reported.”

Here’s a map showing equity gains by state:

This gain in home equity is a blessing for homeowners in these trying times, and it seems that the next two years will continue to reward those who own a home.

Last week, the National Association of Realtors (NAR) held their 2020 Real Estate Forecast Summit. At the summit, they shared the results of a recent survey of 23 economic and housing market experts. The median forecast among the experts called for home values to increase further by 8% in 2021 and 5.5% in 2022.

Bottom Line

In a year that has many of us reevaluating what “home” really means, those who own their homes have been rewarded with a financial windfall that averages $17,000 individually and totals $1 trillion nationally.

 

Contact Tom or Ron for all your real estate needs and get all your questions answered.

Tom Johnson, Realtor – (303) 856-6185, tomjohnson@yourcastle.org

Ron House, Realtor – (720) 308-5117, Rhouse01@msn.com

Follow Tom and Ron on Facebook

www.tomandron.com

About Tom & Ron:  As seen on HGTV's "House Hunters Family", Tom Johnson and Ron House make up a dynamic real estate team that proudly serves the Denver/Aurora metro area and Buckley Air Force Base. As veterans themselves, they bring a breadth of knowledge to the VA Loan process that differentiates them from their industry colleagues. Tom dedicated 21 years of service in the Air Force before retiring in 2009 from the Security Forces career field and Ron proudly served several years in the Army within a Military Intelligence Battalion. Together, they uphold the core values the military instilled in them. “Service before Self” and “Integrity First” is evident through all their real estate transactions. Those seeking real estate services will not find a more dedicated and knowledgeable team. Their unmatched communication and benefits they provide to their clients’ place this team on a pedestal all by themselves. They love what they do because of who they serve!

We look forward to serving you getting you moved into the perfect home that fits your wants and needs!

Dec. 10, 2020

Debt-to-Income Ratio Affects Approval & the Interest Rate

Debt-to-Income ratio is a tool that lenders use to qualify buyers for a mortgage and is an important factor in determining loan approval.  It provides an indication of the amount of debt that a potential borrower is obligated to in relation to how much income they have.

Total monthly debts are determined by adding the normal and recurring monthly debt payments such as monthly housing costs, car payments, minimum credit card payments, personal loan payments, student loans, child support, alimony, and other things.

By dividing the monthly income into the monthly debt, you arrive at a percentage of the monthly income.  Lenders actually look at two different ratios commonly called the front-end and the back-end.

The front-end ratio is the proposed total house payment including principal, interest, taxes, insurance, mortgage insurance if required, and homeowner association fees.  Lenders generally don't want these expenses to be more than 28% of the monthly gross income. 

The back-end ratio includes the same items that are in the front-end ratio plus any other monthly obligations like the ones mentioned earlier.  Lenders prefer to see this ratio not to exceed 36% of monthly gross income but some lenders may extend that to 43%.  Borrowers obtaining an FHA mortgage might also be allowed an even higher back-end ratio.

If a borrower had $8,000 monthly gross income, their proposed house payment should not exceed $2,240 or 28% of their monthly gross income.  Then, their house payment and monthly debt should ideally not exceed $2,880 or 36% of their monthly gross income. 

For the sake of an example, let's say that their monthly debt was $900.  That would only leave $1,980 for the maximum house payment.  The monthly debt became a limiting factor affecting the house payment.

In addition to determining whether the buyer qualifies for the mortgage, it could affect the interest rate.  Having good credit and having the proper ratios can result in being approved for a mortgage.  On the other hand, if the debt is on the upper side of an acceptable range, the lender may charge a higher interest rate for the addition risk of a marginal borrower.

While the math is not difficult to come up with your ratios, it is not necessarily a do-it-yourself project.  A trusted lending professional can assess your situation and give you an accurate picture of what price home you can afford and the rate you can expect to pay.

Both things are important to know before you start looking at homes and especially before you contract for one.  All lenders are not the same.  Call me to get a recommendation of a trusted mortgage professional who specializes in the type of mortgage you want. Download this FREE Buyers Guide.

 

Contact Tom or Ron for all your real estate needs and get all your questions answered.

Tom Johnson, Realtor – (303) 856-6185, tomjohnson@yourcastle.org

Ron House, Realtor – (720) 308-5117, Rhouse01@msn.com

Follow Tom and Ron on Facebook

www.tomandron.com

Nov. 16, 2020

More Time at Home

 

We are all spending more time at home and will probably need to continue to do so for a while longer.  Depending on the makeup of your family, your home is now a home office, a gym, a virtual classroom and considerably more meals have been prepared in your kitchens in the past six months than normal.

Some businesses have undergone a metamorphosis that has shown them that maybe they do not need the big commercial spaces for their employees.  They realize that they can be just as productive with their work force offsite which will cut expenses.

If this scenario sounds familiar, it may be worth exploring what moving would look like for your situation.  To analyze the options, you will need to know what your home is worth and what the net proceeds will be after selling it.

You will need to know what homes are available with the amenities you are looking for together with the prices and mortgage money.  Depending on the interest rate on your current mortgage, there may not be much difference in payment for a larger mortgage at today's incredibly low rates.

Another option that some homeowners are considering is to not reinvest all the proceeds from the sale of their existing home into the new home.  They are reserving some of the cash as a contingency fund for the unexpected. This strategy is providing peace of mind in uncertain times.

It is said that an investor is faced with three decisions every day: buy, sell, or hold.  The equity in a home represents, for most people, their largest investment asset.  While it is an asset, it is also an amenity.

Prudential thinking would insist on protecting your investments, but it would also suggest that you would evaluate alternatives to avoid missing opportunities.  Having the facts available will make the options clearer and possibly, the decisions will become obvious.

We are available to help you assemble the information you need to consider what is best for you.

 

Contact Tom or Ron for all your real estate needs and get all your questions answered.

Tom Johnson, Realtor – (303) 856-6185, tomjohnson@yourcastle.org

Ron House, Realtor – (720) 308-5117, Rhouse01@msn.com

Follow Tom and Ron on Facebook

www.tomandron.com

 

About Tom & Ron:  As seen on HGTV's "House Hunters Family", Tom Johnson and Ron House make up a dynamic real estate team that proudly serves the Denver/Aurora metro area and Buckley Air Force Base. As veterans themselves, they bring a breadth of knowledge to the VA Loan process that differentiates them from their industry colleagues. Tom dedicated 21 years of service in the Air Force before retiring in 2009 from the Security Forces career field and Ron proudly served several years in the Army within a Military Intelligence Battalion. Together, they uphold the core values the military instilled in them. “Service before Self” and “Integrity First” is evident through all their real estate transactions. Those seeking real estate services will not find a more dedicated and knowledgeable team. Their unmatched communication and benefits they provide to their clients’ place this team on a pedestal all by themselves. They love what they do because of who they serve!

We look forward to serving you getting you moved into the perfect home that fits your wants and needs!

 

Posted in Miscellaneous