Must read market update for 2022~
Monthly Newsletter from New Dawn Realty January 17, 2022
Happy New Year!
Wow, we are already halfway through January 2022.
I have much to update you with, so let’s dive in.
The Market
I had the pleasure of listening to a 2022 economic update with THE Barry Habib, commentator of CNBC. His “crystal ball” predictions have been spot on over the decades. Here's what Barry had to say:
*Interest rates are predicted to rise to 3.75% by the end of spring. So if you are buying, don't worry about the rate now, concentrate on the lowest cost loan. Interest rates should come down to around 3% by the second half of the year. Why is this important, you ask? Because if Barry's predictions are correct, house prices will continue to rise over the next two years. This would indicate getting into the market as soon as you can to start capitalizing on appreciation values and when rates come down, then you can refinance.
*If you are renting and waiting for this "housing bubble" to crash, "think again," says Barry Habib. And you might wonder how to capitalize in this market if you are overpaying for a property--which in this market, bidding over list price is a most likely scenario if the property is priced around fair market value. At New Dawn Realty, we will provide you with an analysis that walks you through how long it will take to recoup your overbid. Then we will collaborate to see if it meets your long-term goals for your intended purchase.
*Nationwide, we are extremely low on inventory-- with 1.2 million units for sale and 1.28 million households in need of a home. In the Denver Market, we are below 1,300 available homes under the one million price point. In El Paso County, less than 600 available homes under the one million price point! To give you some perspective, a balanced market has 10,000 homes for sale. In 2008, we had over 25,000 homes listed!!!
*If you are renting, rents are anticipated to rise 18% per year over the next couple of years. Why would you want to make your landlord wealthy and not yourself?
*What does this mean for sellers? It's a GREAT time to sell. Let New Dawn Realty help you meet your goals and accomplish your dreams. Together, we can pencil out a move to downsize or upsize, investment opportunities, a transfer...we will help you hit your target.
***Takeaway***
*Whether buying or selling, now is the time!
It's easy to sell a house in this seller's market, so why do I need a Realtor?
*While it's a hot market and homes are going under contract quickly, there's much more to a real estate transaction than just getting under contract. I have hundreds of stories, but I will only share one.
I was representing a buyer on a home purchase. The listing broker and seller had received multiple offers, including my buyer's offer. I was informed by the listing broker that our offer would be accepted by the seller, but he would need to send a counterproposal to change one exclusion from the property. My buyer's bid was $30,000 over list price, but when I received the counterproposal, it was at the lower list price. My buyer signed the counter and we were under contract at the list price! Two weeks go by. TWO WEEKS, you guys! I then received a call from the listing broker stating the mistake. Long story short, we closed on this property for my buyers at the list price and not the overbid price. And, the appraisal came back at $35,000 over the list price. So then, who do you want advocating for you on the most valuable investment you might ever own?
There are 46,000 licensed brokers in the State of Colorado. Do not compromise for anyone less than an experienced and focused Real Estate Broker.
On a personal note
Last October, I had the pleasure of officiating a wedding! Yes, you heard that right. This was never on my bucket list, let alone my radar; but I must say... it was a blessing. The picture below was captured as I lead the wedding party down the aisle.
I’d love to hear what you did last year that was out of your comfort zone, but became something that surprised or blessed you.
I look forward to hearing from you.
Dawna~
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