Unaffordable Housing

Denver Real Estate News Recap: July 2021

Here’s a quick digest of what happened in Denver real estate last month:

+ Things may be looking better for home buyers as Metro Denver saw its second biggest jump in its supply of homes for sale — triple the 3.1% jump seen nationwide.

+ … but perhaps not when considering that Metro Denver home prices set multiple home price appreciation records (15.5% in April and 16.2% year-over-year in May) and July rents rose 11.6% statewide. At least we’re not seeing increases like in Phoenix (25.9%), San Diego (24.7%), and Seattle (23.4%).

+ The Biden administration is developing a new eviction moratorium after a previous ban expired last weekend. While 12% of Denver renters owe back rent, landlords do not believe an eviction crisis is looming.


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Real Estate Finance News Recap: June 2021

Here’s a quick digest of what happened in real estate finance last month:

+ Falling mortgage rates are another sign that investors view the current spate of inflation to be temporary, however, housing affordability is becoming a bigger concern.

+ Freddie Mac reports that mortgage rates continue to hover around 3%, keeping the housing market booming. Yet, a deterioration in affordability and housing inventory is slowing the market.


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Denver Real Estate News Recap: June 2021

Here’s a quick digest of what happened in Denver real estate last month:

+ April proved to be a record-setting month for Denver annual home appreciation — a whopping 15.4%.

+ Showings are down and bidding wars begin to tame in Denver’s real estate market. Will buyers start to find relief or are some walking away from their search after high price fatigue?

+ Colorado is on the verge of an affordable housing crisis so severe that it could derail the state economy and contribute to a significant deterioration in the quality of life for those priced out of the market. The Common Sense Institute released a white paper on actions to reduce the shortfall.


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U.S. Real Estate News Recap: May 2021

Here’s a quick digest of what happened in U.S. real estate last month:

+ Even with a housing shortage fueling high demand, builders are reluctant to sign sales contracts for houses as increasing costs are eroding profits.

+ Could home prices could reach unhealthy levels? Logan Mohtashami of Housing Wire believes that without more inventory or higher mortgage rates, we may be heading in this direction.

+ Love cooking on a gas stove or having an alternate source of energy when the power goes out? Stay in the loop about the battle that’s brewing over banning natural gas to homes.

 

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U.S. Real Estate News Recap: April 2021

Here’s a quick digest of what happened in U.S. real estate last month:

+ Many older millennials are burdened by housing costs, and it could keep them from reaching other financial goals.

+ What are the secret economic forces fueling the housing shortage? Inman’s Jim Dalyrymple II says increasingly expensive building supplies (think lumber, steel, and even paint) are driving up the cost of housing. Meanwhile, institutional investors are gobbling up to 20-30% of homes for sale, which is affecting inventory.

+ As ADUs or “granny flats” continue to grow in popularity, here are 4 hidden costs of accessory dwelling units that you should plan for.

+ Looking to sell soon? Find out the one thing you should never do to your yard before selling your house. Bonus: it’ll save you some cash!

 

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Denver Real Estate News Recap: March 2021

Here’s a quick digest of what happened in Denver real estate last month:

+ A study finds that people didn’t abandon urban neighborhoods during the pandemic. Denver was among the most expensive large metro areas that saw a big decrease in urban in-migration and a small increase in urban out-migration during the pandemic.

+ Only 21% of Denver renters can afford a typical monthly mortgage payment ($2,376/month), compared to 27.4% nationwide, according to Zillow.

+ Denver homebuyers continue to have to move quickly and prepare for a bidding war as the housing market remains ultra-competitive.

 

 

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Denver still feeling priced out of ownership

Source: the Colorado Real Estate Journal

The age old question, revisited: should I rent or should I buy? Here, the author presents statistics that illustrate Denver’s current preference of renting over buying. In the last 10 years, home prices have exceeded rental increases by 24%, requiring far less cash to execute a lease than to transfer a deed. But one thing to note: you don’t need to wait until you have 20% saved up to purchase a home — conventional home loans start with as little as 5% down! In fact, there are other loan products that can bring the down payment even lower.

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So Much for the Starter House

Source: Ronda Kaysen of the New York Times

So Much for the Starter House | Denver, CO | Love Your Hood

Imagine yourself a couple years into a solid career. With a few dollars saved up and a strong sense of belonging in your city, you decide it’s time to become a homeowner. Many of you reading are likely in this exact situation; with your dream home, a few kids, and several pay raises away, you’re looking for a starter home. Fit for your current lifestyle, this is a home where you plan to live for 5-10 years before moving into something “better.” It’s a reasonable plan, and even likely what your parents did.

However, this plan may not work out quiet the way you envision. With a rising interest rates, limited properties for sale, and rising sale prices, Americans are staying in their starter homes for longer. Are you are in the market for your first home? Are you trying to decide between a move or a renovation? Check out the full article to get versed in this trend.

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Housing Market Slows, as Rising Prices Outpace Wages

Source: Ben Casselman of the New York Times

Denver residents are familiar with soaring housing prices and construction visible in almost every corner of our city. While the economy is in great shape, analysts believe the housing market is experiencing a plateau because the prices are finally at a level higher than most middle class buyers are willing to pay. Housing prices are up roughly 8% over the past year, showing growth at a declining pace. With average hourly wages up 6% over the past year, this trend makes sense. Economics writer Ben Casselman delivers further insight and figures in the full article.

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