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"BRRRRR!" is an understatement! ❄️
Temps all across the country have dropped and while we're accustomed to cold winters here in Colorado,
double negative digits make it hard to think about real estate - WE GET IT!
This week, buyers and sellers have seemingly agreed to an unspoken oath that they will get right back to
it as soon as our frigid temps rise to more comfortable levels! Fortunately, this drop in temperature will more than likely
not throw a wrench in the start of an incredible year of real estate.
In fact, researchers at Keeping Current Matters predict this to be the year of fives:
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- Interest rates in the fives
- 5.5M in total home sales
- 5% approximate home price appreciation
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Let's dive into nation-wide stats and predictions...
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Heading into the new year, mortgage rates remain on a downward trend. As usual, we
expect to see them fluctuate, but if Keeping
Current Matters is correct, we may see them in the fives by May.
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When considering that 78.7% of current mortgage rates held by
homeowners are less than 5%, it's safe to say that a
portion of homeowners would not sell if rates aren't
at or below 5% in efforts to keep their low rate.
However, Erica Plemmons, Housing Analyst of Bright MLS states
that, "Homeowners who are selling aren't
influenced by rates, with 90.5% of successful November
sellers stating they were going to sell regardless of
what rates were."
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On the other hand, buyer activity has remained steady, however the
hesitance around interest rates also remains steady...
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When we consider that our current total home sale total is
sitting at 3.8M nationally, Keeping Current Matters'
prediction of 5.5M total home sales this year is an exponential
increase. If interest rates hit the fives as predicted,
two of the 3 reasons displayed above go hand-in-hand and will
automatically improve - interest rates and affordability.
5.5M in total home sales could be a very plausible prediction!
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It's hard to predict how much appreciation we will see in terms of home
prices. When looking at 8 major industry leaders,
1.5% is the average estimate for 2024 among all 8 of them.
When considering the next 5 years, the predictions reflect a steady increase in appreciation starting this
year following a drop after 2023 appreciation levels. This prediction offers a lot of hope for a
balanced and steady market. Appreciations near 20%
are not sustainable and offer an unbalanced, and frankly, unhealthy market.
All things considered, market researchers are
predicting about 5% price appreciation in 2024 nationwide.
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With the appreciation predictions, you could
be gaining a good bit of equity if you purchase now.
By 2029, you could have $72,405 in equity on the purchase
of a $400K home this year. The promises of 2029 are
far off and these are just predictions after all,
but they're made on historical trends in the market that
fare to be pretty accurate when said and done.
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See our sponsored Pet of the Week further down!
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Why is Boulder a Wise Place to Invest in Real Estate?
"Choosing the right place to invest in real estate is a
dynamic decision. You have to take into account
both financial and personal factors, looking to the
long term ramifications of the investment, too. If you
are considering buying a home in Boulder, we can help...."
Click to read more!
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What Should Be Considered a Deal Breaker on a Home Inspection Report?
"During the escrow process as you buy a home in Boulder, you will have an
opportunity to review the home inspection report to make a more
informed purchase. Wondering what the report might
reveal that should be considered a deal breaker?..."
Click to read more!
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Avoid Overpricing and Underpricing to Successfully Sell Your Home in Boulder
"Setting the right price is a critical factor when selling your home in
Boulder. This is a unique and dynamic real estate market, and
accurately pricing your property is essential for a successful and
efficient sale. Whether you're concerned about the risks of
underpricing or overpricing, finding the right balance is key..."
Click to read more!
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We're Sponsoring A Longmont Humane Society Pet, JENGA!
Meet Jenga! A young, 2 year old, handsome boy who is full of
life and energy! He is always eager to play,
and his boundless enthusiasm is infectious, making every day an
adventure. He loves to play fetch, loves having his routines,
loves playing demolition with toys, and gives the best cuddles!
We will cover your cost to adopt him!We will cover your cost to adopt him! Call 303-772-1232 to
schedule your appointment at Longmont Humane Society!
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Front Range Powder Fun
Colorado will deliver a winter wonderland for the months ahead. Despite the
challenges of shoveling and navigating through snowy roads
(which we busy real estate agents know all too well), we can't deny
the sheer joy snow brings to our kids and furry friends.
Click to read more!
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John Smith
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Director of Marketing and Inside Sales
Colorado Real Estate | RE/MAX Alliance
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