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.

 


 

Updates on Loan Limit Increase from Elevations & Melissa Cotton

The Federal Housing Finance Agency (FHFA) has raised the baseline conforming loan limit for 2021, and we’re here to help you understand what this means. Laws restrict Fannie Mae and Freddie Mac to purchasing single-family mortgages with origination balances that are below a certain amount — this amount is known as the “conforming loan limit.*”

The conforming loan limit was increased nationwide effective January 1, 2021.  Read on for the reason behind this limit change, what these limits are in the Colorado counties we serve, and what the increase means for homebuyers.

 

Why has the limit been raised?

The limit increase is a response to significant gains in home values that occurred during 2020. According to FHFA’s seasonally adjusted, expanded-data HPI, house prices increased 7.42%, on average, between the third quarters of 2019 and 2020.** As home prices rise, the maximum loan limit needs to rise so homebuyers can borrow enough to cover the cost of their new home purchase. Raising the conforming loan limits for mortgages purchased by Fannie Mae and Freddie Mac reflects the continuing recovery of the U.S. housing market. In most counties across the country, the 2021 maximum conforming loan limit for a single-family home is $548,250. That’s an increase of $37,850 from the 2020 baseline limit of $510,400.

 

What does this mean in high-cost areas?

High-cost areas are counties in which 115% of the local median home value exceeds the baseline conforming loan limit. In Colorado, that includes Boulder, Denver, Broomfield, Jefferson, Arapahoe, Douglas and Adams counties. In these areas, the loan limit is established as a multiple of the area median home value, while a “ceiling” of that limit is set at 150% of the baseline loan limit.  Read on to see the limits in the Colorado counties we serve.

 

What does this mean for borrowers?

Higher conforming loan limits are an “added value” to the homebuyer. It allows you to purchase a higher-priced home but keep your loan amount in a conforming loan limit that provides greater flexibility with underwriting guidelines and programs.

Below you’ll find a snapshot for the high balance conforming limit for one-unit properties in select counties.

 

What the new limits are in the Colorado counties we serve:

Conforming New Limit One-Unit Property
All Counties (includes Larimer & Weld County) $548,250
Conforming – High Balance Limit One-Unit Property
Boulder County $654,350
Denver, Broomfield, Jefferson, Arapahoe, Douglas, & Adams County $596,850

5 Home Must-Haves According to Millennial Buyers

Millennials are becoming leading influencers in the luxury real estate market and, with that, comes along a new list of desired amenities and design elements such as minimalism, smart technology, wellness, entertainment, and more. The below list of homes, of which can all be seen on Luxury Portfolio International‘s website, showcases such trends and is worthy of Millennial swooning.


WELLNESS AMENITIES

Crete, Greece | Price Upon Request

Wellness is of vital importance to Millennials. Stay active within multiple calming spaces throughout this property – for instance, walking the private sandy beach or the garden with shady paths complete with Mediterranean flowers and centuries-old trees. A dip in the infinity pool is yet another activity, serving both as a place to get fit, as well as to unwind.

 

SMART HOUSE

Malibu, California, USA | US $6,885,000

The smart house is growing in popularity, allowing Millennials to customize and automate much of their living environment. This newly built, Malibu home is fully automated and 100% off-grid through solar energy. The Ring security system is another highly desired smart home benefit this abode has to offer. Along with the smart house amenities, this home is beautifully designed with 17-foot ceilings and walls of glass overlooking mountain and ocean views.

 

MINIMALISM

Chicago, Illinois, USA | US $6,750,000

Millennials always seek ways of simplifying their busy lifestyles, which has resulted in the rise in minimalism in design. But keeping it simple doesn’t have to be boring. This award-winning Chicago penthouse showcases remarkable, 12-foot ceilings with dramatic arched windows and doors. The open floorplan prioritizes sleek design, but in a truly mesmerizing fashion.

 

AMAZING KITCHENS

Bainbridge Island, Washington, USA | US $3,585,000

Millennials consider kitchens to be among one of the most important rooms within the home and enjoy experimenting with different cuisines. What better space to cook than this sleek and contemporary kitchen? Offering an oversized refrigerator, two large sinks, and abundant storage space, this kitchen opens to other stunning living areas. Cooking can also be taken outside on an expansive wood deck, complete with a built-in grill, plus a gas fireplace, saltwater pool, and views of Puget Sound, Mt. Rainier, and Seattle.

 

NATURAL ELEMENTS

Fort Collins, Colorado, USA | US $2,350,000

Nature-related design is expected to be huge among Millennials in the coming years. This Colorado home, built by the award-winning Brannen Homes, offers a stunning and intimate backyard with beautifully styled outdoor living and dining spaces. The surrounding, lush vegetation provide an additional nature connection, while nearby parks and walking paths allow residents to explore nature within their residence and beyond.


For more home inspiration, check out Luxury Portfolio International’s list of  favorite  work-from-home amenities.

 

The Top 10 Pet-Friendly Cities to Move to in 2021

Americans are making moves. Despite economic uncertainty, home sales rose to a 14-year high in 2020, and the trend looks set to continue into the new year. According to  Pew Research, one in five Americans have moved or know somebody who has due to the pandemic.

Key factors like livability, growth, job opportunities and most importantly, pet-friendliness are top considerations for those considering a relocation this year. For those local to Boulder, it will come as no surprise that we have been ranked as the #1 most pet-friendly city to move to in 2021 by bringfido.com.

“The People’s Republic of  Boulder  is the place to be in 2021. First, you can check excellent public schools and ample job opportunities in a variety of sectors off Fido’s moving list. Located in the foothills of the Rocky Mountains, this small city within a park is also a gateway to the “grrreat” outdoors. Bring Fido  for a dip  at  Boulder Reservoir, hike the beautiful  Flatirons Vista and Doudy Draw Trail,  or meet the local canine community at Foothills Community Dog Park. You can even sign your pup up for a  Boulder Voice and Sight Tag  for off-leash access to designated trails. With 300 days of sunshine a year, there’s plenty of time for outbound hounds to experience all that Boulder has to offer. In the summer, the free  Park-to-Park shuttle  welcomes dogs on board. And the city boasts a thriving food and arts scene. Check out  SmithKlein Gallery  with your pooch before visiting Avery Brewing Company to hang in the spacious fenced-in area.”

 

Read on here, and find out which other 9 cities were runner up!

 

Congratulations to Our President & Founder, Joel Ripmaster!

Joel Ripmaster, REALTOR Emeritus, has been named the Boulder Area Realtor Association’s Broker/Manager of the Year! This award recognizes individuals that serve as the backbone of incredible Real Estate organizations. Nominees provide wisdom, guidance, and valuable information to help Realtors grow and maintain successful businesses.

Being presented with this award is a true Landmark Moment, and a testament to Joel and the incredible leadership that he has exhibited over the past 43 years as the President of Colorado Landmark, Realtors.  Our Landmark agents adore him, their nominations described him as a true leader who is always there for them with qualities such as integrity, kindness, and a great sense of humor, and they praised him for the wonderful family company that he has built.

 

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! 

 

Landmark Advantage Transitional HELOC Program

Ready to buy but need time to sell? Move on your terms with a Transitional HELOC.

When you work with Colorado Landmark Realtors, you get access to the Transitional Home Equity Line of Credit (HELOC) program from Elevations Credit Union, the No. 1 credit union mortgage lender in Colorado.


Access your home equity without rushing to sell.

With this customized short-term loan that’s similar to a Bridge Loan, you get access to the equity in your current home so you can make an offer on your next home — without rushing to sell. After your home is sold, the proceeds are applied to pay off your Transitional HELOC.


A Transitional HELOC is a flexible solution.

While Elevations tailors each loan to the buyer’s needs and best interest, consider a Transitional HELOC if:

 

  • Your money is tied up in the equity of your current home.
    Fund the down payment or mortgage payments for your next home with a Transitional HELOC — a great option in Colorado where properties are in high demand.

 

  • You need to renovate your current home.
    Move out before your home becomes a construction zone so you can boost your home’s value and get ready to sell.

 


*Offers of credit are subject to credit approval. Available equity is dependent upon the difference between your current home value and your current mortgage balance(s) to include all loans that are secured by your current home.