4 Key Home Buying Trends to Watch in 2019

As we look ahead to coming trends in 2019 real estate, home buyers and sellers nationwide will face changes in the marketplace, according to the economic research team at realtor.com. From housing inventory to generational shifts, here are four top trends to look for in 2019.

1. Inventory will grow, especially for luxury homes

Inventory has been tight nationwide, hitting its lowest level in recorded history in the winter of 2017, says realtor.com. Supply finally began catching up with demand in 2018. That inventory growth will continue in 2019, but at rate of less than 7 percent. While sellers will have more competition, it will still be a good market.

“More inventory for sellers means it’s not going to be as easy as it has been in past years—it means they will have to think about the competition,” says Danielle Hale, realtor.com chief economist.

“It’s still going to be a very good market for sellers, but if they’ve had their expectations set by listening to stories of how quickly their neighbor’s home sold in 2017 or in 2018, they may have to adjust their expectations,” she adds.

In markets with strong economies and high-paying jobs, most of the expected inventory growth will come from listings of luxury homes.

2. Affording a home will be challenging

Interest rates and home prices are expected to continue to increase. Hale says homebuyers will continue to feel a “pinch” from affordability, as costs will still be a pain point. She predicts mortgage rates will reach around 5.5 percent by the end of 2019, which translates into the typical mortgage payment increasing by about 8 percent. Incomes are growing about 3 percent on average. These factors are hardest on first-time home buyers, who tend to borrow most heavily.

3. Millennials will dominate

Millennials are now the biggest generation of home buyers. Some are first-time home buyers, while others are moving up from starter homes. The millennial group accounts for 45 percent of mortgages compared with baby boomers and Gen Xers at 17 and 37 percent respectively, reports realtor.com. And many millennials still have student debt, which adds to the challenge of affording a home.

4. The new tax law’s effect is still unknown

For many tax filers, the effect of the new tax law won’t be known until their April tax filing results in a bigger tax bill or a bigger refund.

Renters are likely to have lower tax bills, but the new increased standard deduction reduces the appeal of the homeowner’s mortgage-interest deduction. The new tax law may dissuade people from taking out large mortgages which will affect higher cost homes. Add these factors to the challenge of affording a home and homeownership for some may be harder to achieve or less appealing.

The net effect of the coming 2019 trends is that even with these challenges, sellers are in a good position and homeowners will continue to enjoy positive financial gains from their home.

For more information, read the full report at https://www.realtor.com/news/trends/real-estate-trends-expect-2019/

 

Originally posted here by Tom Kalinski Founder RE/MAX of Boulder on Thursday, January 10th, 2019 at 10:05am.

Posted on January 10, 2019 at 11:51 pm
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Real Estate Conference Set to Explore Boulder Valley Challenges and Trends

The eleventh annual Boulder Valley Real Estate Conference offers a packed day Thursday, November 15, exploring trends, commercial impacts, and inventory shortages in Boulder County commercial and residential real estate.

Organized by BizWest with presenting sponsor RE/MAX of Boulder, the event delivers an intensive schedule of national keynote speakers and panels made up of local real estate experts and development officials.

More than 500 real estate professionals and anyone interested in the local real estate market are expected to attend. Attendees get insights into residential and commercial real estate activity and coming opportunities in Boulder and Broomfield counties.

The conference kicks off with local real estate expert Todd Gullette, RE/MAX of Boulder Managing Broker, discussing the latest sales and price statistics and implications for residential real estate across Boulder Valley. The commercial forecast follows, with Angela Topel, Gibbons-White Senior Broker, exploring major commercial developments, sales and vacancy statistics.

Future technology – now turned present – takes center stage when Jay Kalinski, Broker/Owner of RE/MAX of Boulder, moderates a panel of real estate banking and technology experts, exploring “The Impact of Blockchain” on residential real estate. Blockchain technologies enable a shared, nationwide database of houses on the market. The panel will look at how Blockchain platforms affect Boulder County’s housing market and how Realtors should respond.

“Big Tech Settles In” focuses on the local impact of the tech economy and examines the surging Boulder tech scene, including expansions by Google, Twitter, Microsoft and Uber.

Conference keynote address presents the outlook of Wells Fargo’s EVP of Housing Policy and Homeownership Growth Strategies, Brad Blackwell, and MetroStudy’s Senior Director West Region, John Covert.

Next up, “Breaking Ground” – back by popular demand – reveals commercial and residential developments in the Boulder Valley and beyond. A panel of city-employed development directors from Lafayette, Longmont, Louisville, Superior, Boulder, Erie and Broomfield provide a complete rundown of the region’s top projects.

“Wrestling with Supply” tackles the top challenge for Boulder-area residential real estate markets. Lack of housing inventory, issues with infill development, height limits, accessory-dwelling units and zoning conspire to cause a critical housing shortage. Moderated by Duane Duggan, RE/MAX of Boulder Realtor, the panel will discuss policy changes developers believe would address the problem.

“Icons of Real Estate” is back by popular demand. Featuring long-time successful real estate experts Tom Kalinski, Owner/Founder, RE/MAX of Boulder; Stephanie Iannone, Managing Broker, Housing Helpers; and Seth Chernoff, CEO, Chernoff Boulder Properties, audience members will ask questions to learn proven best practices and advice for success in commercial real estate.

The conference will be held from 9:00 am to 4:00 pm on Thursday, Nov. 15 at the Embassy Suites hotel, 2601 Canyon Blvd. in Boulder. Registration opens at 8:15 am. For details and to pre-register visit http://fallrealestateconference.com. Breakfast and lunch are included. The conference is open to anyone with an interest in Boulder Valley real estate. Conference attendees can earn six Van Education credits.

Conference details in this quick video: https://bit.ly/2PAsWQV

 

Originally posted here by Tom Kalinski Founder RE/MAX of Boulder on Tuesday, November 13th, 2018 at 3:40pm.

Posted on November 14, 2018 at 10:33 pm
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Boulder valley real estate: Parsing fact from ‘fake news’

Boulder County Single-Family Listings 2012-2018

In this day and age, one could be forgiven for wondering if facts no longer matter or actions no longer have consequences. Whether one watches the national news or a local city council study session where members declare that they want fewer visitors (both tourists and locals from neighboring cities), it is clear we are living in strange times.

Despite all of the uncertainty, there are still a few facts left out there (at least where real estate is concerned), and from them we can draw some reasonable inferences.

The Facts:

1. Home prices throughout Boulder Valley are reaching all-time highs.

At the top of the list, the average single family home in:

  • Boulder now costs over $1,250,000
  • The suburban plains now costs almost $850,000
  • Louisville and the suburban mountains now cost over $750,000
  • Boulder County now costs $767,000

Likewise, the average attached home in:

  • Boulder now costs over $540,000
  • Louisville now costs over $400,000
  • Longmont now costs over $350,000
  • There are no places left in Boulder County or Broomfield where the average condo is less than $340,000.

2. Local housing inventory is at historic lows

The inventory of homes throughout Boulder County is at or near historic lows..

At the end of June, there were 858 single family homes on the market in Boulder County.  To add some perspective, the inventory of homes on the market at the end of June 2006 was 2,763, more than three times as many homes as there are now.  There are many reasons for this, including the fact that people are choosing to stay in place longer, increasing prices/lack of affordable places to move to, strong anti-growth policies, etc. Looking at the economic, political and structural factors at play, it appears that this scarce inventory is going to be the new normal. 

3. Despite the high prices and low inventory, demand remains high

We gauge the strength of demand for homes using several indicators, including months’ of inventory, the average time a home spends on the market, and the number of expired listings (homes that failed to sell on the market). 

Economists say that a balanced housing market has about six months’ of inventory, with more inventory being a buyer’s market and less being a seller’s market.  At the end of June, Boulder County had about 3.3 months’ of inventory, compared to 3.8 at this time last year. In the first half of 2016, the average home spent 65 days on the market (from listing to closing).  So far this year, that average is 57 days, 12.3 percent faster. Last year at this time, there were 33 expired listings, compared to only 26 this year, which is a drop of 21 percent.

Taken together, these factors demonstrate that demand is getting stronger, even in the face of rising prices and declining choices. And when you consider net migration to our area and plentiful jobs, it also appears that demand will keep increasing and homes will continue to appreciate until . . . when?

What is it that will cool our market and when will it happen?

There are several issues that have the potential to slow our market.  First, interest rates continue to rise and as they do they will drain buyers’ purchasing power.  Second, as prices have risen faster than wages over the last decade, there may come a point where home prices have to stall in order to allow buyers’ savings to catch up.  Third, a macro-level event, such as a recession, international war, etc., could cool the entire economy and affect our market.

The set of variables is too complex to predict accurately what the precise cause(s) will be or when it will come, but it will come.  The good news (if you own real estate here) is that there is no better place to invest in real estate than here — even in a downturn.

 

Jay Kalinski is broker/owner of Re/Max of Boulder.

Originally posted by BizWest on Wednesday, June 1st, 2018. Original found here.

Posted on July 1, 2018 at 12:02 pm
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Boulder Economic Summit 2018: Skilled Workers Essential to Boulder’s Future, Housing a Key Issue

Boulder County excels at attracting talented and skilled workers. But change is in the air, says futurist Josh Davies, CEO at The Center for Work Ethic Development and keynote speaker at the recent Boulder Economic Summit 2018: The Workforce of the Future.

Statistics presented by futurist Davies suggest that if the last decade rocked with rapid change on the job-front, hang on to your Smartphone – the future promises to be a rocket-ride.

And, the future starts now.

Today, Boulder County employers are going head-to-head with the rest of the world. Local businesses compete globally for highly skilled workers integral to business success, yet these workers are too few in number to fill the demand. If corrective steps aren’t taken, the worker shortage will continue and potentially worsen, predict speakers at the Summit.  Success is critical, since Boulder County’s thriving economy, vitality and quality of life depends on local businesses continuing to engage world-class, highly skilled people.

Hosted by the Boulder Economic Council (BEC) and the Boulder Chamber at CU-Boulder, the Boulder Economic Summit brought experts and hundreds of community leaders together to evaluate Boulder’s competitiveness in the global demand for talent. In breakout sessions and roundtable discussions, the group explored how education and workforce development must evolve to keep up with the impacts of automation, immigration, globalization and other forces affecting future jobs.

There Will Be Robots. Lots of Robots.

People, get ready. Futurist Davies says the robots are coming and in more ways than ever expected.

The growth will be explosive: 1.7 new industrial robots will be in use by 2020, with robots performing tasks in homes and offices – not just in manufacturing, says Davies.

In his talk, 2030: The Workplace Revolution, Davies highlighted how technology will change our jobs in the coming decade and the pressing need for skill development and preparation.

With advances in technology and creative disruption in industries, employment has shifted, explains Davies, adding that 85 percent of jobs in 2030 haven’t been created yet. By then, computers will function at the speed of the human brain. He warns that increased automation and artificial intelligence will significantly alter employment needs and businesses should be prepared.

Low-skilled and entry-level and other jobs that perform repetitive tasks will no longer be available to human workers – computers and robots will fill that need. While companies do not like to replace people with robots, if robots cost 15-20 percent less, humans will lose out.

Davies predicts retail jobs will be replaced by robots at a very high rate, even though it is the leading profession in most states. Sixteen million retail workers will need to be retrained for new jobs.

His strategies for the future are to recognize that whether tasks are cognitive or non-cognitive, repetitive tasks can be automated. To succeed, workers need to develop non-cognitive skills: problem-solving, critical thinking and empathy.

Acquiring New Skills Critical to Success

Andi Rugg, executive director of Skillful Colorado, says one-third of the American workforce will need new skills to find work by 2030.

In her talk, Understanding the Skills Gap, Rugg emphasizes that training and retraining are the path to success, not only for the coming decade, but for today. There are 6.3 million unfilled jobs in the U.S. today because there’s currently not enough talent to bridge the gap between employer requirements and the workforce.

Rugg stresses that hiring needs to become skills-based, since we are in a skills-based economy. Her statistics are hard hitting:

  • Jobs requiring college degrees exceed the number of workers who have them.
  • Seventy percent of job ads for administrative assistants ask for a college degree, but only 20 percent of administrative assistants have a college degree.
  • Only 3 in 10 adults in the U.S. have a bachelor’s degree – demand for bachelor’s degree is outstripping supply of workers who have them.
  • Only 35 percent of Boulder County’s skilled workers have a degree and Colorado ranks No. 48in the nation for the number of people of color with a degree.
  • Employers need to be more agile in hiring and realize that skills can bridge the gap.
  • Employers need to focus on skills to address inequities in the labor market.
  • Employers should also offer upskilling and lifelong learning for employees.
  • Skills-matching improves employee retention and engagement as well as reduces the time to hire and ultimately reduces turnover costs for the employer.

Housing and Transportation Keys to the Solution

In a roundtable discussion led by RE/MAX of Boulder Broker/Owner Jay Kalinski, the team tackled one of Boulder County’s looming challenges in attracting workers to Boulder County – affordable housing and transportation options that enable commuting. The group developed possible solutions to ease transportation and affordable housing issues.

Photo caption for photo above: Jay Kalinski, RE/MAX of Boulder Broker/Owner (left} leads a roundtable discussion to develop transportation and affordable housing solutions.

Learn more about the discussion in Jay Kalinski’s article in BizWest, “Where will Boulder’s workforce of the future live?” at: https://bizwest.com/2018/06/01/where-will-boulders-workforce-of-the-future-live/?member=guest

Community Collaboration

In breakout sessions and the closing plenary, discussions revolved around ways the community can address workforce and economic development by bringing together private sector businesses and industry with educational institutions and organizations, government, and nonprofits in collaboration.

Through this joint effort, our community can prepare students with the workforce skills needed in the future that cannot be automated; develop business-relevant class content; roll out real-life technical projects in classrooms; re-train workers; and offer apprenticeships, internships, and work-based learning alongside education or as standalone, all of which can help workers gain skills.

Learn more by reading the Boulder Economic Council and Boulder Chamber’s recently published “Boulder Innovation Venture Report” at: https://bouldereconomiccouncil.org/whats_new_with_the_bec/boulder-innovation-venture-report/

Originally posted here by Tom Kalinski Founder RE/MAX of Boulder on Wednesday, June 20th, 2018 at 11:25am.
Posted on June 21, 2018 at 5:38 pm
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Spring Home Sales Continue to Surge

Spring selling season in Boulder County continues to soar with April’s residential sales keeping pace with last month’s rocketing sales as well as outperforming April last year.

“Demand remains strong and inventory tight, keeping upward pressure on pricing,” says Ken Hotard, senior vice president of public affairs for Boulder Area Realtor® Association.

The 345 single-family homes that sold in April 2018 topped March’s rising sales by one unit or .3 percent; and the 126 condominiums and townhomes sold in April represented an additional 4 sold or 3.3 percent over last month.

Year-over-year Boulder-area single-family home sales climbed 5.4 percent through April 2018 – 1,198 homes sold vs. 1,137 – and condo/townhomes sales increased 5.9 percent with 447 units sold compared to 422.

Inventory also grew, which has proven to be a key factor in maintaining sales.

“While inventory showed solid increases in both single-family and condo/townhomes, we could use three-to-four times that amount to meet demand,” says Hotard.

Countywide single-family inventory increased 18.2 percent in April over March with 770 homes for sale vs. 651. Condo/townhome inventory improved 16.4 percent over the same period – 163 units vs. 140.

Hotard says evidence shows prices may have not yet reached a peak. “This is the first time I recall median prices over $1 million. It’s clear that with the city of Boulder built out on single-family housing stock, it’s putting pressure on prices.”

He notes that many dynamics shape the market. “Clearly affordability is a big issue – it influences who can live here, whether purchasing or renting. As more people can’t afford to live here, it’s a big loss because we are losing high quality people and the marketplace is becoming more exclusionary.”

Noting that buyers are coming from many places including California, Chicago, Texas and Nebraska, Hotard says people look to Colorado because of the entrepreneurial spirit and low unemployment.

Hotard summarizes, “As Boulder is to Colorado, Colorado is to the rest of the country.”

 

Originally posted here by Tom Kalinski Founder RE/MAX of Boulder on Tuesday, May 29th, 2018 at 11:56am.

Posted on May 30, 2018 at 9:48 pm
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6 Strategies for Maximizing Your Home’s Selling Price

Pricing and prepping your home to sell at the highest price requires strategy, even in a red hot market like Boulder County.

The best strategy is the one that suits your personal needs and local market conditions. For those reasons, your Realtor is the most reliable advisor for pricing your home. Your Realtor also can offer insights on improvements that will boost your home’s appeal and value.

If you’re just beginning to consider selling, take a look at these pricing and prepping strategies reported by Realty Times. Depending on your local market, your Realtor may recommend these approaches to selling your home.

Price Just Under a Price Break

For a home valued at $600,000, list at $599,000 to increase the number of searches your home appears in and the potential buyers that see your home. Even better, prices that aren’t typical, such as $597,400, increase the perception of value.

Price to Drive Demand

The same $600,000 home could be priced at $575,000, which is slightly undervalued. This might seem risky, since all offers could come in right at $575,000. As the seller, you can counteroffer or decline any offer you don’t want to accept. The advantage is that an under-value listing creates a sense of urgency, potentially motivating more buyers to make an offer. If enough people do this at once, this creates a buyer frenzy and increases the likelihood of multiple offers and escalated prices.

Review Comparable Listings

Review a comparative market analysis of recently sold homes and those currently active, expired and off-market. Remember, it’s important to look at what isn’t selling, as well as what is. Your Realtor will prepare this report for you and recommend how you should price your home relative to the comparable listings nearby. Generally, it’s recommended to price you home within 10 percent of the average home price in your area.

Make Select Home Improvements

When choosing which home improvements to make, go with those that will make a positive first impression and sell your home quickly for the lowest investment.

Two proven updates to make are:

Replace carpet that is more than five years old or looks worn or stained. Consider replacing the carpet with hard floors such as wood, bamboo or cork. Here’s an extra tip: Using the same material throughout each floor of your home makes it look bigger and creates the impression your home is worth more.

Apply a fresh coat of neutral paint to brighten your home and cover up scuff marks and dirt. Neutral grays and earth tones will appeal to a cross section of buyers. You can even freshen your kitchen with chalk paint, instead of going to the expense and inconvenience of fully remodeling. Chalk paint looks great and is hard to distinguish from the original finish.

Decisions on how to price and prepare your home for sale are important and influenced by local factors. So once you get past the considering stage, consult your Realtor for the best professional advice for your neighborhood.

Read more at https://realtytimes.com/consumeradvice/sellersadvice/item/50605-20170216-maximize-your-listing-price-while-minimizing-your-expense

Originally posted here by Tom Kalinski Founder RE/MAX of Boulder on Tuesday, May 22nd, 2018 at 2:16pm.

Posted on May 24, 2018 at 4:04 pm
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