What it’s like to be a first-time homebuyer in 2018

“Ever since we moved out here, we’ve been keeping an eye on the market,” Gibson says. “We see new houses go on the market, but that for-sale sign goes down and a for-rent sign takes its place, and so we’re competing with people that have the ability to buy multiple homes just to rent them out.”

The Gibsons live just north of Boulder in the town of Longmont, Colo. The Boulder area is one of the toughest markets for first-time buyers — and the epicenter of a growing housing affordability crisis.

“The country as a whole has been generally appreciating since coming out of the recession in 2011, 2012. Boulder has definitely led the way in a lot of ways,” says RE/MAX of Boulder’s Jay Kalinski, who is also the chair-elect of the Boulder Area Realtor Association. “Since 1991, we’ve appreciated more than anywhere else in the country — I think for over 400% appreciation since then. Our average single-family house in the city of Boulder now is around $1.2 million.” (The average price of a new home in the U.S. is $377,200, as of September, according to the Census.)

Yahoo Finance visited Boulder for HuffPost’s Listen to America town hall series installment on housing affordability and to talk to residents and local officials about the issues facing potential buyers in a market that serves as a snapshot of what’s happening across the country.

When you look at the affordability index, we’re getting less and less affordable as a community,” Kalinski says. “We’re becoming more akin to something like an Aspen or a Silicon Valley, where our home prices just are not going to support people who are making an average or even a good income.”

Watch the full HuffPost Listen to America town hall for To Develop Or Preserve: A Conversation About Affordable Housing In Boulder, CO.

Boulder City Council member Jill Adler Grano, who spoke at the Listen To America town hall, has been concerned with buyers getting priced out of the Boulder market for some time. “Unless you have money from another source or a lot of money saved up — a trust fund something like that — it’s very difficult to save for that down payment,” she says.

But there are steps the city is taking to address the issue. “As a city, we’re working on a pretty aggressive affordable housing program, so we have a goal of having 10% of our housing stock be permanently affordable,” she says. “At first that was all just for people making below area median income, but now we’ve realized that middle class is actually above area median income, so we’ve added another 5% goal for those making even above area median income but still being priced out of our city.”

But that path to homeownership has its own drawbacks, Kalinski says. “On the bright side, it means you can have a home in Boulder, you can live here at a reduced rate,” he says. “The downside is you don’t get the benefits of homeownership. Your growth is capped at 3% a year, and when the rest of the city is growing it’s a 10% to 15%, you’re giving up all of that upside.”

If income-sensitive housing isn’t an option, there are other routes cash-strapped buyers can take, including a trend Kalinski calls “driving until you qualify” that’s popular in the Boulder area. “First-time home buyers can either look a little further out or they can talk to their friends and family about trying to get a bigger down payment together to get into a market-rate home,” Kalinski says.

As for the Gibsons, they’re pressing ahead and trying to maintain a positive outlook. “I walk my dog around a lot and look at for-sale signs, look at ads, just trying to get an idea of what the market is,” Gibson says. “And hope that our hopes aren’t dashed when we get into a bidding war with about 10 other couples that are also trying to buy the same home.”

Follow Ned Ehrbar on Twitter.

Originally posted here on Yahoo Finance.

Posted on November 7, 2018 at 11:34 pm
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Three Colorado Cities Claim Smokin’ Hot Zip Codes

Colorado Springs’ 80922 zip code is the No. 2 spot hottest zip code in the country – moving up from No. 7 in 2017, according to analysis of 32,000 zip codes by realtor.com®.

The annual analysis of zip codes looks at how long it takes homes to sell and how frequently properties in each zip code are viewed to determine which zip codes are most popular and fastest moving.

Greeley’s 80631 and Broomfield’s 80021 zip codes also ranked in the top 50 hottest, coming in at Nos. 44 and 48 respectively.

High-income millennials helped fuel a 10 percent rise in how fast homes sold in popular areas in 2018. More and more millennials are getting older and buying homes, which realtor.com says is driving demand in smaller, more affordable suburban areas. These 25- to 34-year-olds are attracted to affordability, strong local economies, and outdoor and cultural amenities.

The number of households in Colorado Springs grew 21 percent from 2010-2018. Homes in El Paso County sell in 15 days with a median list price of $297,811 – an increase of 9.7 percent in the last year. Located 60 miles south of Denver, Colorado Springs offers lifestyle features millennials want – outdoor activities, popular local breweries, and more affordable housing than Denver.

Here are the top ten hottest zip codes in the U.S.

Homes in the top 10 hottest markets sell in 20 days on average, 46 days faster than the rest of the country, 25 days faster than their respective metro areas, and 18 days faster than their respective counties.

In eight out of the top 10 ZIPs, millennial median household income is 1.3 times higher than the national median, $78,000 versus $60,000, respectively. Mortgage originations in nine of the top 10 counties are millennial-dominated with 34 percent of mortgage originations.

For the full report visit https://www.realtor.com/research/hottest-zip-codes-2018/

 

Originally posted here by Tom Kalinski Founder RE/MAX of Boulder on Wednesday, October 24th, 2018 at 2:19pm.

Posted on October 25, 2018 at 7:07 pm
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Boulder County Home Sales Soar into Late Summer

Home sales in Boulder-area single-family and attached housing markets rose in August along with the late summer heat index.

Single-family home sales increased 10 percent in August 2018 compared to July with 460 homes sold in Boulder-area markets vs. 418. Sales for condominiums and townhomes climbed 15 percent with 146 units sold vs. 127.

Meanwhile, Denver-metro home sales went in the opposite direction, slowing significantly over the same period, according to the Denver Post.

It’s testament to the state of Boulder Valley real estate market, according to Ken Hotard, senior vice president of public affairs for the Boulder Area Realtor® Association.

“We have our own little market here. While Denver dipped, Boulder Valley showed strong growth in sales, despite ongoing rising prices and inventory squeeze,” says Hotard.

Year-to-date sales also continue to climb steadily. Single-family home sales grew 1.7 percent through August 2018 compared to last year – 3,154 homes sold vs. 3,100. Attached homes followed a similar track, improving 1.6 percent year-to-date – 1,154 sold in 2018 compared with 1,135 in 2017.

Inventory dropped 2.0 percent for single-family homes – 993 units in August 2018 vs. July’s 1,013. But condo/townhomes available for sale grew 11.2 percent with 268 units available in August vs. 241 the previous month.

Hotard attributes the unceasing increase in real estate sales and prices to the area’s strong economy and continued job growth, along with a desirable quality of life. “Significant companies are hiring in Boulder, like Zayo, Google, Twitter – and the natural foods industry is strong,” he adds.

Interest rates are slowly pushing upward, which traditionally results in a slowdown in rising home prices and sales. But Boulder Valley’s housing market may not readily respond to interest rate increases.

“It’s unknown what the tipping point is for interest rates affecting our housing market. And with 35 percent of Boulder County homes bought with cash, rising interest rates may not have a significant effect locally,” says Hotard.

Looking ahead to the final quarter of the year, Hotard expects sales to continue to match those of last year, unless “something unusual happens.”

“We seem to be operating on an upward trend and it’s hard to see what would stop it. The real challenge for Boulder County is providing the housing and transportation infrastructure to support job growth.”

 

Originally posted here by Tom Kalinski Founder RE/MAX of Boulder on Tuesday, October 2nd, 2018 at 10:46am.

Posted on October 4, 2018 at 10:59 pm
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5 Tips for Millennials Buying a Home

When it comes to homeownership, millennials are no different than other generations. Many would love to buy a home, according to findings by SmartAsset. To achieve that dream, one of the looming issues that they must overcome is saving for a down payment. This can be especially challenging in the Boulder-Denver metro area where rents are high. Also, millennials often have student loan payments contend with, which impacts savings.

Although mortgage interest rates are increasing, they are still relatively historically low, and they are empowering millennials to invest in property. To buy a home, millennials need to plan how to overcome obstacles. Here are five tips on how to get organized and make a plan that will succeed, reported by SmartAsset.

Do the Math

Know the 28/36 rule. Mortgage lenders typically require that your mortgage payment, property taxes, and insurance total no more than 28 percent of your monthly gross income. Then, your mortgage payment and your total debt payments, including college loans and credit card debt should not be more than 36 percent of your gross income. Get out your spreadsheet and calculate what this means for you. Knowing your spending limits helps target your search for the right home.

Get Your Documents Together

Getting a loan and closing on a home requires certain documents. Go ahead and pull everything you need together and put it in a file. Usually for a home purchase you need your government issued ID, most up-to-date credit report, a verification form from your employer, W-2 forms, federal tax returns, and bank and asset statements.

Get Your Down Payment Together

Plan to pay the biggest down payment you can afford. The down payment amount determines the length of your mortgage and its monthly rate. Typically, the down payment is between three to 20 percent. The bigger your down payment, the lower your loan amount will be. Increasing your down payment has benefits: a higher down payment makes it possible to get a lower loan at a lower interest rate. Putting more money down usually gives you the ability to borrow more.

Consider Taxes, Property Insurance, Closing Costs and Other Expenses

These necessary expenses factor into the price of the home you can afford. Be sure to calculate home insurance and property tax rates in Colorado and in the county you are exploring. Closing costs include loan origination, underwriting, appraisal, title insurance, wire and courier, and other fees.

Study the Area

Discover which neighborhood is best for you. Study the value of surrounding properties. This will help you know if the home you want is comparably priced to other homes in the area. Working with a knowledgeable Realtor provides insight and perspective on neighborhoods and home values. Be sure to find a Realtor who can help you navigate the search for a home and purchasing process.

To read the full article, visit https://smartasset.com/mortgage/millennial-home-buying-guide.

To find a home and realtor for you, visit http://www.boulderco.com.

 

Originally posted here by RE/MAX of Boulder on Friday, July 6th, 2018 at 10:11am.

Posted on August 16, 2018 at 7:32 pm
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Boulder County Housing Market Percolates Through June Heat

Market demand continues to be strong for Boulder County residential real estate with continued improvements for June sales compared to May.

“Sales were strong through June. It’s a lively market, but certainly not overheated,” says Ken Hotard, senior vice president of public affairs for the Boulder Area Realtor® Association.

Single-family home sales in Boulder County improved 2.3 percent in June 2018 compared to May 2018 – 498 vs. 487 units – while townhome/condominium sales jumped 31.3 percent – 189 units sold vs. 144.

Year-to-date sales show ongoing growth with single-family home sales rising 2.4 percent through June compared to the prior year – 2,218 vs. 2,166 units – and condo and townhome sales improving 6.6 percent year-over-year – 776 units sold compared to 728.

Inventory is holding steady, which typically correlates with strong sales. Single-family homes for sale increased 9.4 percent – 1,004 homes for sale in June compared to 918 in May. Condo/townhomes inventory rose 14.4 percent over the same period, making 238 units available for sale vs. 208 in May.

Prices are one indication of market temperature. So far, 2018 has seen average and median sales prices continue to rise year-over-year, with all Boulder Valley markets showing improvement in the single-family category for June. Condos/townhomes also showed improvement in both median and average sale prices in every community except statistics for Louisville, Niwot and the Mountains.

Hotard notes that typically “July has a pullback in sales, due to summer vacation schedules and the anticipation of school starting.”

“Market demand is impressive and prices are holding up,” he says. “Single-family homes average selling price has been over a million for months now and shows no signs of cooling off.”

 

Originally posted here by Tom Kalinski Founder RE/MAX of Boulder on Tuesday, August 7th, 2018 at 1:34pm.
Posted on August 15, 2018 at 7:26 pm
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Colorado Ranks High for Job Seekers

If you feel like you live in a great state for your career, it’s official: you are absolutely correct. Among all 50 states, Colorado is the second best state for finding a job, according to analysis by WalletHub.

The only state where job seekers fare better is Washington, with a total WalletHub score of 71.45 compared to Colorado’s 70.04.

But in “Job Market Rank,” Colorado pulled the top position at No. 1, followed by Utah, Maryland and Minnesota. Washington came in at No. 7.

Total score of most attractive states for employment was determined by WalletHub’s comparison of 50 states across 29 key indicators of job-market strength, opportunity and a healthy economy. The two key dimensions were Job Market and Economic Environment. Job Market was weighted more heavily since the factors in that category most heavily influence a job seeker’s decision in terms of relocation for employment.

Here’s how Colorado ranked in key categories.

In ‘Economic Rank’ Colorado is No. 19. Economic Rank evaluates the economic environment based on indicators such as median annual income (adjusted by the cost of living), monthly average starting salary, share of workers living under poverty line, average length of work week, average commute time and commuter-friendly jobs.

At the city level, Aurora led Colorado as the top place to find a job, ranking No. 33 in the U.S. Denver followed at No. 35 and Colorado Springs No. 68. The top cities in ‘Job Market Rank’ are Peoria, AZ; San Francisco, CA; Chandler, AZ; Gilbert, AZ; and Scottsdale, AZ, ranking 1-5 respectively.

In April, Colorado’s state unemployment rate fell by a tenth of a point to 2.9 percent and Colorado employers added 7,200 non-farm jobs to their payrolls, according to a monthly update from the Colorado Department of Labor and Employment. Nationally, the unemployment rate in April stood at 3.9 percent.

Average hourly earnings rose from $27.73 an hour to $28.91 over the past year. The average workweek remains unchanged at 33.7 percent.

For the full listing of statistics on the states, visit https://wallethub.com/edu/states-with-the-best-economies/21697/. For cities, visit https://wallethub.com/edu/best-cities-for-jobs/2173/.

Originally Posted here by Tom Kalinski Founder RE/MAX of Boulder on Friday, July 20th, 2018 at 10:09am.
Posted on August 8, 2018 at 7:08 pm
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Gifts that make a world of difference

BOULDER –  There’s nothing like the magic of holidays and Share-A-Gift is dedicated to bringing that magic to every family in Boulder County.

Now in its 46th year, the good work and long legacy of Share-A-Gift is as strong as ever as businesses, citizens, and volunteers donate toys, money, and time to make the holidays happy for every family in our community.

Armed with the generosity of Boulder County and hard-working elves, a.k.a, volunteers, Share-A-Gift collects and distributes donated bikes, toys, books and clothing to cheer more than 650 families and 1,800 children who live in the Boulder Valley School District. Donations not distributed through Share-A-Gift this year will be given to other charities serving additional families and children in Colorado.

Through this extended charity, nearly 2,000 children in total received gifts from Share-A-Gift this year.

“Share-a-Gift is a wonderful example of how the people in our community support each other,” says Todd Gullette, a past-president and current board member of Share-A-Gift, and managing broker at RE/MAX of Boulder.

He’s referring to the regular folks, professionals, the city of Boulder police department, schools, clubs, and organizations who come together to bring the magic of Christmas to those who might otherwise be overlooked.

RE/MAX of Boulder lobby filled with presents generously donated by Realtors, clients, staff, and friends.

RE/MAX of Boulder is a proud supporter of Share-A-Gift. Each year, RE/MAX of Boulder encourages donations of presents for Share-A-Gift in its lobby. These gifts are generously donated by RE/MAX of Boulder Realtors, staff, clients, and friends. Among those are Realtor Patrick Dolan and his team. RE/MAX of Boulder volunteers who also help coordinate the organization’s logistics, transport donations, and work at the Share-A-Gift Toy Shoppe include Managing Broker Todd Gullette, Realtor Mary Arnold Grow, Realtor Lisa Wade, Boulder Property Network Team members including Debbie Duggan, Kelsey Jensen, and staff member Stephanie Wickstrom.

To add to the bounty, 100 Women Who Care members donated $10,000 to Share-A-Gift this year. RE/MAX of Boulder Realtors Kimberly Fels, Linda Nehls, and Lisa Wade belong to this local group of inspiring women, which raise funds for Boulder nonprofits.

Todd Gullette says, “We are so thankful to have the involvement of our community as we support families that truly need our help. Among our many partners and contributors this year, we have been very excited that the wonderful folks at the Can’d Aid Foundation supported us, and we partnered with Boulder’s Bridge House to spread some great cheer to their organization. There will be many happy families this year.”

For more information visit shareagift.org or 100womenwhocare.net.

Originally posted here by Tom Kalinski Founder RE/MAX of Boulder on Wednesday, January 3rd, 2018 at 9:44am.

Published in the Daily Camera’s At Home section on December 29, 2017

Posted on January 18, 2018 at 9:41 am
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Boulder-area market holding steady, proving strong demand eclipses low inventory

It’s beginning to look a lot like this year’s Boulder County real estate sales performance will outperform last year’s robust close. Year-over-year sales data for 2017 shows slight improvements compared to 2016, even with inventory at persistently low levels.

“It just proves that demand is strong and consistent,” says Ken Hotard, senior vice president of public affairs for the Boulder Area Realtor® Association.

Single-family home sales in the Boulder area improved 2.1 percent year-to-date through November 2017 compared to the prior year – 4,224 homes sold vs. 4,138.

And the sale of 1,377 condominiums and townhomes through November represented a 5.5 percent gain compared to the prior year’s 1,305 units sold.

“We saw year-over-year sales improvements, but the pull-back in November compared to October was more than average,” says Hotard.

He’s referring to the 7.9 percent drop in single-family home sales in November compared to October — 359 vs.  390 homes sold. Attached dwellings sold decreased 2.4 percent month-over-month with 123 units sold vs. 126.

Since the weather was excellent for house hunting, the pullback is likely indicative of more than the typical seasonal slowdown.

“Inventory is probably the culprit in the November pullback this year, which resulted in not only fewer sales, but also a softening of prices,” he says. When it comes to low inventory, there is “no end is in sight for the foreseeable future.”

Hotard believes price-softening is confined to higher end homes where inventories are larger and homes take twice as many days on the market before selling. “Lower priced homes are not affected,” he adds.

While buyer demand is strong, low inventory can’t supply that demand. November’s inventory is telling: Single-family homes for sale in the Boulder-area dropped 22.8 percent in November compared to October with 777 homes for sale vs. 1,006. Condos and townhomes felt the pinch slightly harder with a 24.7 percent drop for the month of November – 146 units vs. 194.

Mortgage interest deductions may diminish in importance as a result of the doubling of the standard deduction as part of recent tax reform legislation. The National Association of Realtors predicts only a small percent of homeowners will take advantage of the mortgage interest deduction in years to come because of that change.

 

*Photo courtesy of Edwin Andrade on Unsplash.com

Originally posted here by Tom Kalinski Founder RE/MAX of Boulder on Friday, January 5th, 2018 at 10:15am.

Posted on January 16, 2018 at 5:38 pm
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