Home Sellers: Buyers are Ready for Inventory Today, Not in Spring
Have you ever watched a puppy wrapped up in a blanket? They fight to get free with everything they have. No blanket can hold them in. Neither can the lack of inventory kicking off 2020. Buyers are pre-approved, can afford more home and feel like spending money. If it wasn’t snowing as we rolled into February, I would have been convinced it was a summer market in Denver.
The current psyche of the buyer is strong and millennials are hitting the prime age for home buying:
Millennials are expected to accrue more wealth by the year 2020 where they are expected to spend $1.4 trillion. As Millennials pay off loans and get better jobs with higher salaries their spending habits are expected to change.
These first time home buyers are getting an additional boost because economically, we are steady and strong.
What’s even more powerful for home buyers? Continued low interest rates (3.51% with .7 discount) and a break from our double digit appreciation! The Federal Reserve Board met at the end of January citing the economic factors above were healthy. They also noted that they would continue buying T-bills at least through April 2020 to ensure the supply of reserves remains ample. This is expected to keep rates low through June 2020.
Affordability is up; the demand is real as mortgage purchase applications ended January up 5 percent month over month and 16.6 percent year over year; and home buyers are scooping up everything good that comes on the market. Two real estate trends that stuck out to me for January was even though New Listings were up 89.27 percent; Active Listings ended down 1.91 percent from December. The Median Close Price creeped up .52 percent as the bidding wars dominated the market. Closed Residential was down 34.21 percent due not to demand but low inventory. Only homes above a million have ample supply sitting at 6.92 months of inventory. Total Inventory in January was 4,941, which is obviously low. I had one Realtor email me on Saturday that his $400k listing brought in 44 showings and multiple offers on Thursday!
The sellers psyche is still wrestling with the blanket. Those who price their homes right, spend the time and money to repair and stage, are rewarded by sitting on the market an average of 15 days. The 44.6 percent of them who think it’s a sellers market and are throwing their home on the market unready or too high are sitting for an average of 70 days and reducing their price to sell. Sellers are also in a position right now to gain. With tenure up to an average of 8.21 years fourth quarter 2019; their realized home price gain upon sale is at a 13 year high. Sellers, it’s time to capitalize on your profit, move to the home of your dreams, and release the much needed inventory. And those of you who are waiting for the “Spring buyers market” … all you are waiting on is to be joined by more sellers.
As 2020 continues to unfold amidst conversations of brexit, impeachment, the Coronavirus, and the election; the things that I am going to keep a keen eye on is job growth, unemployment, and consumer confidence. Because while manufacturing is still weak and the government is still spending, consumer spending is holding up our economy and the GDP.
The Rueth Team of Fairway Mortgage
The Rueth Team is dedicated to our clients success. It is this driving mission that keeps our team constantly learning and pushing beyond our boundaries. We find the solutions other lenders simply can’t (or won’t). We make a commitment to each borrower, fulfilling it with hard work, constant communication and creative problem solving. When a referral partner gives our name, they are confident knowing they are giving their clients the best chance of a smooth, successful experience.Learn More
NO OBLIGATION TRAINING: Market Mastery & “Done for You” Marketing tools delivered every 3rd Thursday (occasionally Tues) of the Month so you MAKE MORE MONEY! Nicole Rueth with Fairway Independent Mortgage Corporation, together w/ guest speakers from a range of professional disciplines, will be presenting monthly updates on industry statistics and market news you can use to help educate and motivate your buyers and sellers. Walk away with talking points, slides & information to set yourself up as an industry expert.
Alison P. from Wheat Ridge, CO
Nicole was wonderful to work with! The experience was so much better and more personal than working with a large company where you might not have contact with the same person throughout the process. Nicole was extremely communicative, easy to reach and talk to, and went out of her way to make this the most positive experience for my family. She worked so hard to meet our tight deadlines and made the entire experience smooth and stress free. I would 100% recommend working with Nicole and the Rueth Team!
stacieandtomwedding from Denver, CO
Nicole and her team were responsive, professional, and supportive as they walked us through every step of the loan process. We highly recommend the Rueth Team and will reach out to them with any future needs!
Natalie W. from Idaho Springs, CO
We’ve used The Rueth team twice now and have had a seamless experience both times. She and her team are knowledgeable, friendly and helpful. When I contact them they are very quick to respond. I would continue to work with The Rueth team in the future!
Shelby from Denver, CO
I used Fairway and Rueth’s team when purchasing a home recently and they were outstanding throughout the entire process. One of the staff on the team was even out on leave for most of the process and you wouldn’t have even noticed. Everyone I worked with provided very friendly, personable and knowledgeable service. I knew what my options were and everything was done in a very timely fashion. They even were able to find me some closing clost assistance so that I was able to have some money in my pocket left at close to do some work on the house. This was the third home I’ve bought and Rueth’s team was by far the best mortgage company I’ve worked with and I would recommend them with my full confidence.
Andrew C. from Wheat Ridge, CO
Nicole was fantastic to work with. She's responsive, knowledgeable, and able to make last minute changes when necessary. Working with her was a nice change from big-box mortgage companies. When last minute things needed to be fixed she did them promptly, and made sure we made it to closing without a hitch!
Mr. and Mrs. Walls from Idaho Springs, CO
We were impressed with the professional, personable service we received from Nicole and would recommend her to other home buyers. She helped us get pre-qualified quickly, making our search more productive.
Kathleen Cain from Palmer Lake, CO
Excellent team! Would highly recommend! If I ever have to do this again I would call Nicole Rueth! Her response to any of my questions was answered immediately and with great accuracy! Couldn't have been any better!
Paige M from Morrison, CO
Nicole and her team did an amazing job not only in keeping me informed of all the processes that go into selling and buying a home, but they were professional and knowledgeable! They answered all my questions, and made it easy to understand! I will never use anyone else!
april3lynz from Colorado Springs, CO
Absolutely AMAZING group! I had a really rocky start with my home buying experience. I had a horrible realtor and I was going to go through a different lender. I dropped my horrible agent and found an amazing realtor who was just phenomenal, and she referred me to The Rueth Team. My experience with them was quick, painless and simply amazing. I had very little stress and their team was so helpful. I had a moment of panic and I called, they were able to explain everything to me without confusing me more and went over every detail of my process moving forward with me. They had no hidden fees and were straight up and up front with me the whole way. I'm extremely grateful to them. In less than a month I am moving into my new home!!
Jeff D. from Denver, CO
I've closed two mortgages prior to this one with The Rueth Team, and this was by far the smoothest lending process I've had. Nicole, Peter, Emily, and Robbin were terrific communicators, provided me with honest feedback, and were simply easy to work with. They're true professionals and I'd happily work with then again on my next loan.