“We have so much time and so little to see”
Who watched Willy Wonka and the Chocolate Factory this Thanksgiving? Oh come on.. it’s as traditional as A Christmas Story in December. Everyone wants the golden ticket! Real estate, especially in the Denver market continues to provide that promise of gold. Continued strength in Colorado’s job growth, increased affordability at all levels with sustained low interest rates, and a healthy 3rd quarter GDP are economics that support all of us getting a golden ticket when we invest in the strength and stability of real estate.
Let’s dive into what’s shifting in the economic market, the struggle with inventory, and where we might land 2019, 2020 and 2021
I read a headline just this week… “Steady as She Goes”. Honestly, I like it. What’s wrong with a calm, stabilizing market? Initial jobless claims gave us a scare this month when they headed up for several weeks, tipping the scales towards increased unemployment and the recession. At the end of November they fell 15,000 nationally bringing good news and committing unemployment to its 50 year lows.
GDP also took a small turn for the better as it surpassed predictions of 1.9 percent to land at 2.1 percent on its second look for Q3. The uptick was due to slightly stronger consumer spending (up 2.9 percent) as well as durable goods’ move to the upside. Manufacturing activity (inventory and new orders) entered its fourth month of contraction; but not enough to offset consumer spending’s 70 percent slice of GDP.
Interest rates continue to dazzle us by staying below 4 percent. After declining for 9 straight months, they have recently turned upward (only slightly) upon hearing the good news of the prolonged strength of the economy.
Inventory Woes to All
Inventory woes continue to affect us all. The National Association of REALTORS®’ Chief Economist Lawrence Yun, noted residential sales continue to be strained by the lack of new inventory. 2019 marked the end of the inventory crisis.. so we thought. However, ever since February, the year over year trend line has been giving back the inventory we so desperately needed. After October squeaked by with only .21 percent more inventory than last year; November officially went negative again ending down 7.2 percent in active listings. Are our sellers getting scared out of listing even though it’s still a sellers’ market?
2020/2021 Here We Come
Remember real estate is a long game; so the part of this story I love the most is where we are landing 2019 as we are 11 months into the year. The median home price is up 2.44 percent. Year to Date Solds are up as well..2.17 percent. Real Estate really is the Golden Goose!
Freddie Mac just came out with their 2020/2021 predictions. They are expecting rates to stay around 3.8 percent for 2020 AND 2021 and total home sales (new plus existing) to stay strong, increasing from 6M in 2019 to 6.1M in 2020 to 6.2M in 2021. National home price appreciation is expected to stay low finishing 2019 at 3.2 percent, then 2.9 percent in 2020 and 2.1 percent in 2021.
Simply put, we expect continued affordability, while providing growth in appreciation and opportunity.
So what will next year really bring? Well, in the immortal words of Mr. Wonka, “The suspense is terrible. I hope it’ll last.”
Your champion in Building Wealth through Real Estate,
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.