2010: A Year in Review
Now that 2010 has officially come to a close, it is important to look at where we have been. Here are a few highlights:- Two Words: Tax Credit. The First Time Home Buyer Tax Credit ended April 30, 2010. With this came an undisputed increase in home sales. From the 1st Quarter in 2007, there has been a general trend of at least a 5% dip in Colorado home sales compared to the prior year. However in the 1st and early 2nd Quarter in 2010, home sales increased from the same period in 2009 between 5% and 15%. The decrease in home sales from the year prior returned in the 3rd quarter, this time reaching a decrease of over 20%, a larger decrease than seen in the previous 3 years ( NAR Economic Forecast, 2010).
- As of November 2010 the National median home sales price was $170,600; this number peaked at $183,000 in June. Compare this to: $172,500 as the average in 2009, $198,100 in 2008 and $219,000 in 2007.
- Home affordability is strong! Comparing Q2 in 2005 to 2010, monthly mortgages for a median priced home in Denver have decreased from $1,192 to $935. No these numbers may not exactly represent the mortgage payments in Four Mile Creek, but this statistic is telling of the trend in general home affordability. But act fast… mortgage rates are predicted to increase this year.
2011: What to Look Forward To
Oh, 2011… I cannot believe it’s here and I’m sure you feel the same way! What to look forward to (besides the remainder of this INCREDIBLE ski season!):
-Mortgage rates (30-year fixed) are predicted to increase to 5% in 2011 and 5.9% in 2012. Home values are not predicted to drastically increase over the next 2 years, but considering the likely increase in mortgage rates it’s time to think long-term investment now.
- Median home sale prices (for existing homes nation-wide) are predicted to rise to $173,500 in 2011 and $177,700 in 2012. This does not mean the seasonal dips we are used to will not be in effect, but the overall increase in home sales prices will hopefully be steady for years to come (NAR, 2010).
-General economic predictions in 2011 are optimistic: decrease in unemployment, increase in job additions over the next two years, improving home sales, and a moderate GDP expansion (returning closing to normal)
Predictions are of course just that. Unfortunately no one can see the future and know exactly what lies ahead. But what I plan to do is continue to be realistically optimistic!
I wish you the very best in 2011. Please call me any time if you would like to discuss real estate or ask for advise. I’m here to help!
Oh, 2011… I cannot believe it’s here and I’m sure you feel the same way! What to look forward to (besides the remainder of this INCREDIBLE ski season!):
-Mortgage rates (30-year fixed) are predicted to increase to 5% in 2011 and 5.9% in 2012. Home values are not predicted to drastically increase over the next 2 years, but considering the likely increase in mortgage rates it’s time to think long-term investment now.
- Median home sale prices (for existing homes nation-wide) are predicted to rise to $173,500 in 2011 and $177,700 in 2012. This does not mean the seasonal dips we are used to will not be in effect, but the overall increase in home sales prices will hopefully be steady for years to come (NAR, 2010).
-General economic predictions in 2011 are optimistic: decrease in unemployment, increase in job additions over the next two years, improving home sales, and a moderate GDP expansion (returning closing to normal)
Predictions are of course just that. Unfortunately no one can see the future and know exactly what lies ahead. But what I plan to do is continue to be realistically optimistic!
I wish you the very best in 2011. Please call me any time if you would like to discuss real estate or ask for advise. I’m here to help!
