Property Value Assessments & Appeals 2021

The Boulder County Assessor’s Office has completed its biennial reappraisal of all property in Boulder County. Notices of valuation are mailed to property owners on Saturday, May 1. If you are a homeowner, you should have received yours by now, and it has most certainly gone up in value!

This is based on the upward trend the real estate market has been experiencing, more than usual, for the past two years. However, this does not mean you shouldn’t appeal. Appeals are due by June 1st this year, and can be submitted online, mailed electronically or physically, or faxed.

Every odd year, county assessors in Colorado are required to reassess properties within their jurisdiction and determine the market value for each property as of June 30 of the prior year.  Therefore, this year’s reappraisal cycle is based on market values as of June 30, 2020. 

In Boulder County, there has been a positive change in values for residential properties overall. The median percent increases for residential type properties in this appraisal period is 11%.

For 2021 Reappraisal of Single Family Residences, click Here.

For Boulder County Residential Values, click Here.

If you wish to appeal the determined market value of your home or commercial property, Appeal Your Property Value Here.

Whether you need help researching home value within the above time period, or are wishing to deepen your understanding of how and why this process occurs, please reach out to us via phone at 303-443-3377 or email. We are here to offer you, our neighbors, with any assistance you may need!


 

Spring Maintenance Checklist

Spring is the perfect opportunity for homeowners to prepare their property for the months to come. Here are tips from Pillar to Post Home Inspectors to get started:

  • Check siding for cracks, peeling or chipped paint, and general wear and tear. Have damaged areas repaired and repainted as needed for lasting protection.
  • Clean gutters and downspouts of debris that collected over the winter.
  • Check patios and walkways for cracks and any loose bricks or pavers. These are a tripping hazard that needs to be corrected promptly.
  • Clean window screens and repair any holes or tears, or replace the screen material.
  • Check around for damaged tree limbs and branches. If a large tree appears to be damaged, be safe and call a professional to address any issues.
  • Inspect the irrigation system for broken sprinkler heads and emitters. Also check for overspray and adjust the system to prevent water waste.

 

Happy Spring Everyone!

 

3 Reasons We’re Definitely Not in a Housing Bubble

from Keeping Current Matters

Home values appreciated by about ten percent in 2020, and they’re forecast to appreciate by about five percent this year. This has some voicing concern that we may be in another housing bubble like the one we experienced a little over a decade ago. Here are three reasons why this market is totally different.

 

1. This time, housing supply is extremely limited

The price of any market item is determined by supply and demand. If supply is high and demand is low, prices normally decrease. If supply is low and demand is high, prices naturally increase.

In real estate, supply and demand are measured in “months’ supply of inventory,” which is based on the number of current homes for sale compared to the number of buyers in the market. The normal months’ supply of inventory for the market is about 6 months. Anything above that defines a buyers’ market, indicating prices will soften. Anything below that defines a  sellers’ market  in which prices normally appreciate.

Between 2006 and 2008, the months’ supply of inventory increased from just over 5 months to 11 months. The months’ supply was over 7 months in twenty-seven of those thirty-six months, yet home values continued to rise.

Months’ inventory has been under 5 months for the last 3 years, under 4 for thirteen of the last fourteen months, under 3 for the last six months, and currently stands at  1.9 months  – a historic low.

Remember, if supply is low and demand is high, prices naturally increase.

 

2. This time, housing demand is real

During the housing boom in the mid-2000s, there was what Robert Schiller, a fellow at the Yale School of Management’s International Center for Finance, called “irrational exuberance.” The  definition  of the term is, “unfounded market optimism that lacks a real foundation of fundamental valuation, but instead rests on psychological factors.” Without considering historic market trends, people got caught up in the frenzy and bought houses based on an unrealistic belief that housing values would continue to escalate.

The mortgage industry fed into this craziness by making mortgage money available to just about anyone, as shown in the  Mortgage Credit Availability Index  (MCAI) published by the Mortgage Bankers Association. The higher the index, the easier it is to get a mortgage; the lower the index, the more difficult it is to obtain one. Prior to the housing boom, the index stood just below 400. In 2006, the index hit an all-time high of over 868. Again, just about anyone could get a mortgage. Today, the index stands at 122.5, which is well below even the pre-boom level.

In the current real estate market, demand is real, not fabricated. Millennials, the largest generation in the country, have come of age to marry and have children, which are two major drivers for homeownership. The health crisis is also challenging every household to redefine the meaning of “home” and to re-evaluate whether their current home meets that new definition. This desire to own, coupled with historically low mortgage rates, makes purchasing a home today a strong, sound financial decision. Therefore, today’s demand is very real.

Remember, if supply is low and demand is high, prices naturally increase.

 

3. This time, households have plenty of equity

Again, during the housing boom, it wasn’t just purchasers who got caught up in the frenzy. Existing homeowners started using their homes like ATM machines. There was a wave of cash-out refinances, which enabled homeowners to leverage the equity in their homes. From 2005 through 2007, Americans pulled out  $824 billion dollars  in equity. That left many homeowners with little or no equity in their homes at a critical time. As prices began to drop, some homeowners found themselves in a negative equity situation where the mortgage was higher than the value of their home. Many defaulted on their payments, which led to an avalanche of foreclosures.

Today, the banks and the American people have shown they learned a valuable lesson from the housing crisis a little over a decade ago. Cash-out refinance volume over the last three years was less than a third of what it was compared to the 3 years leading up to the crash.

This conservative approach has created levels of equity never seen before. According to Census Bureau  data,  over 38% of owner-occupied housing units are owned ‘free and clear’ (without any mortgage). Also, ATTOM Data Solutions just released their fourth quarter  2020 U.S. Home Equity Report,  which revealed:

“17.8 million residential properties in the United States were considered equity-rich, meaning that the combined estimated amount of loans secured by those properties was 50 percent or less of their estimated market value…The count of equity-rich properties in the fourth quarter of 2020 represented 30.2 percent, or about one in three, of the 59 million mortgaged homes in the United States.”

If we combine the 38% of homes that are owned free and clear with the 18.7% of all homes that have at least 50% equity (30.2% of the remaining 62% with a mortgage), we realize that 56.7% of all homes in this country have a minimum of 50% equity. That’s significantly better than the equity situation in 2008.

 

BOTTOM LINE

This time, housing supply is at a historic low. Demand is real and rightly motivated. Even if there were to be a drop in prices, homeowners have enough equity to be able to weather a dip in home values. This is nothing like 2008. In fact, it’s the exact opposite.


 

Market Updates & Listing Outreach from CLR Agent Phil Booth

We are in a VERY UNIQUE WINDOW right now, which reinforces that there may not be a better time to sell than the second quarter of 2021!

We are currently in an extremely strong sellers market.  There is very little housing inventory (low supply) and an abundance of buyers (high demand).   This situation is a direct reflection of concerns around COVID and super low mortgage interest rates.  These factors are colliding to create a ‘perfect storm’ for sellers.

To explain concisely, there are two forces at play:

1. SUPPLY (SELLERS) – There are many would be sellers who have chosen to hold tight over the past year and not sell because of COVID.  They simply do not want to open their homes up to buyers!  As such, we have had and continue to have historically low inventory.

2. DEMAND (BUYERS) – There is super high buyer demand based on COVID… there is a dramatic influx of people moving from denser population centers to the area, there are many people who, having spent more time than ever at home over the past 12 months, have realized that their current home does not meet their needs  Couple these factors with the fact that money is ‘cheap’ at present… people looking to capitalize on historically low interest rates.

THE RESULT.  When properties come onto the market that are well prepared, well presented, and well priced, we are seeing extremely high showing demand and multiple offers, at well above asking price.   This phenomenon is causing rapid appreciation.  In the last 12 months in Boulder County we have seen appreciation of up to 20% for single family homes and 10% for attached dwellings.  And, this pattern is continuing stronger than ever here in 2021, with 2% appreciation per month in certain areas and price points!

However, this supply and demand imbalance is likely to balance out in the second half of 2021. WHY?

1. SUPPLY – As we see higher vaccination rates (hopefully by mid summer) home owners will feel less wary about COVID and will feel more comfortable about selling, and will be HIGHLY motivated to realize the rapid appreciation they have seen in their homes.

2. DEMAND – We are likely to see interest rates creep up, which will cause buyer demand to wane somewhat.

It is still promise to remain a Sellers’ market, but not to the degree of imbalance we are seeing at present.

Hence, the second quarter of 2021 is a fantastic opportunity to sell and realize the benefits of  THE PERFECT STORM!

Phil Booth

REALTOR®

303-817-8307

Phil@ColoradoLandmark.com

 

Spring 2021 Buyer, Seller + Millennial Guides Are Now Online

Great news! Spring 2021 Buyer & Seller Guides are now available! Both Guides speak of present, crucial information about today’s housing market in an easy-to-understand way.


Seller Guide

Selling your house when the fewest number of homes are available to buy is what puts you in the driver’s seat. With today’s high buyer traffic and low inventory of houses for sale, this power combination makes now the optimal time to sell, if you’re ready. Whether you want to move-up or downsize, here’s the breakdown on supply and demand and why this imbalance in the current housing market positions this season as the optimal time to make your next move.

 

Buyer Guide 

The housing market recovery has been nothing short of remarkable. Many experts agree the turnaround from the nation’s economic pause last year is playing out extremely well for real estate, so it’s an ideal time to buy a home for those who are ready to make a purchase. Here’s a dive into some of the biggest wins for homebuyers this spring.

 

Millennials Guide

If you are one of the millions of millennials who has seen their peers begin to buy homes recently and are wondering what it would take for you to do the same… you’ve found the right eGuide!

There are many stereotypes and myths about the millennial generation as a whole, AND about what it takes to buy a home in today’s market. These myths have prevented many millennials from even considering homeownership as an option for them and their families.

The goal of this eGuide is to provide you with the information you will need to make the best decision for you and your family in regards to homeownership. We will break down the myths and stereotypes that have long been believed to be true, as well as shed light on the opportunity you have to build wealth using your monthly housing cost.


 

The Spring 2021 Luxury Portfolio Magazine is Now Available

NEW LUXURY PORTFOLIO MAGAZINE: NATURE AND HOME DESIGN

Just released, LPI’s Spring edition of Luxury Portfolio magazine explores biophilia, or the desire to be near nature, and how it relates to home design. The issue also notably features second home market trends, sustainable luxury brands, celebrity homes, and more.


NATURE AND HOME: BIOPHILIA IN DESIGN

Biophilia has been steadily trending in home design for years, and it’s only been exasperated with greater time at home and the need for a tranquil and healing space. In our exclusive four-page spread “Nature and Home: Biophilia in Design,” we explore the definition and its incorporations by exceptional designers and architects. The piece offers everything from eco-friendly design tips to a Disappearing Pool (yes!).

The nature theme is found throughout the issue, also showcasing outdoor furnishings, our favorite houseplants, and tips for exterior living.

 

A LOOK AT ETHICAL LUXURY

In our latest edition of recurring article “Jet Set,” we looked at four ethical luxury brands from around the world, including recognizable names Stella McCartney and Bobbi Brown, as well as beautifully crafted sustainable jewelry and clothes made from seaweed.

Additionally, LPI conducted a Q&A with the Chief Sustainability Officer of Tiffany & Co., Anisa Kamadoli Costa, to gain insight into how Tiffany has been influential in promoting ethical practices among luxury brands.

 

BREAKING TRADITION: THE SECOND HOME MARKET

Second home markets have shattered expectations in 2020. To gain insight into various markets, we interviewed experts from Brown Harris Stevens – The Hamptons; Chase International; John R. Wood Properties; Turks and Caicos Property; VALLAT; and The Whistler Real Estate Co. Ltd. The article explores how the markets are performing and the most popular amenities within the respective regions.

 

NOTABLE OWNERS

Every issue, we make a point to showcase celebrity homes. The most recent lineup includes athlete Derek Jeter and popular musical artists, like John Lennon, Katy Perry, and Sonny Bono.

 

BONUS: EXTENDED INTERVIEWS

In the coming weeks, be sure to keep up with our blog. Every week for six weeks, LPI will share extended interviews from the issue. Including designer insight on biophilia, a look at various second home markets, and an extended interview with Tiffany & Co.

 

Read the  digital edition, request your  print copy, or view our  press release for additional details.

 


 

Landmark Moment: BusinessDen’s January Top Home Sales Features CLR Agent Marybeth Emerson

Colorado Landmark, Realtors agent Marybeth Emerson’s sale of the historical 809 Pine Street in Boulder was included in BusinessDen’s feature of January’s Top Home Sales.  

 

January Top Home Sales: 3 Cherry Hills Village Mansions Sell for Over $7M

by LilyO’Neill  

809 Pine Street, Boulder

Built in 1877, this Boulder home sold for $4.95 million.

Listed by  Marybeth Emerson with Colorado Landmark – Boulder

Built around 144 years ago, this historic Queen Anne Victorian home “exudes charm,” according to the listing. It sits on more than half an acre, the second largest lot in Mapleton Hill.

Inside, the 4,825-square-foot layout includes six bedrooms, four bathrooms, a formal living room, family room, parlor, kitchen, dining room and two wood-burning fireplaces.

There’s also a carriage house with a private office on the property.


If you are a subscriber to BusinessDen’s exclusive reporting, view the entire article here.

 

Preparation, Presentation & Pricing

THE IMPORTANCE OF PREPARATION, PRESENTATION & PRICING

Featuring Colorado Landmark agent Phil Booth

We may be in a strong sellers’ market this year, but we firmly believe that in order to sell for top dollar in a timely manner that the three P’s are super important… preparation, presentation, and pricing!

 

Case in point:  Rising Star Award recipient and agent Phil Booth picked up an expired Boulder Townhome listing this fall. The home was vacant, and fairly outdated. It had been on the market for three months without selling. His sellers spent $4,500 on some maintenance issues, new bathroom counters and interior painting throughout (preparation), and $2,000 on staging (presentation). They priced it carefully, based on direct comparisons in the area (pricing). It went under contract in one  day for $12,000 above the expired listing price!

 

Below are the incredible before and after photos documenting this transformation.

 

 

Colorado Landmark offers a variety of tools through our Landmark Advantage Program to bring maximum value to our clients, and take the stress out of buying and selling a home.  Given that every house is unique, we thoughtfully create a customized plan for each client.  We have partnered with fantastic companies to add even more value. Concierge and Staging Solutions fueled by Zoom Casa and access to the Transitional Home Equity Line of Credit (HELOC) program from Elevations Credit Union, the No. 1 credit union mortgage lender in Colorado, are just a couple of them. To learn more about Landmark Advantage, contact us today!

 

Just Released! The Modern Luxury : Reimagined

Luxury Portfolio International® has released its latest report, which delves into luxury real estate trends and the effects of COVID-19. 

Findings include: 

  • Real estate is the next big buy:  61% of those surveyed indicated their next big buy will be a home-related investment.

  • The seller’s market:  The current ratio of buyers-to-sellers, on average, is 3 buyers for every 2 sellers.

  • Face-to-face preferred:  61% of affluent buyers and 57% of affluent sellers noted that they prefer face-to-face property tours, with the expectation that agents enforce safety protocols.

  • PLUS: Most popular amenities by home price and generation. 

 

View the entire digital version here!

 

Homeownership Is a Key to Building Wealth

from Keeping Current Matters

For years, real estate has been considered the best  investment  you can make.

A major reason for this is due to the net worth a household gains through homeownership. In fact, according to the  2019 Survey of Consumer Finance Data  from the Federal Reserve, for the average homeowner:

 

“…a primary home accounts for 90% of the total wealth of a family in the U.S.”

 

How do homeowners gain wealth?

 

Click here to read the entire article and find out!