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August 2021 Market Update
Falling Back Into The Seasonal Rhythm
Late summer vacations, kids were going back to school, the real estate market slowing…all signs of a “more normal” August. The “buying frenzy” was even less, but for sellers, listing a home remained very stable (source: DMAR’s monthly report):
- Home buyers took more time to find the right house as the average Days on
the Market bumped up to 11 days. - Home Sellers continued receiving a historically high return as our average sales price barely dipped.
- August ended with 0.7% less detached and attached properties on the market than July (the lowest amount of listings ever recorded for an August).
Yes, sellers, it is still a scorching market. With less inventory, the demand remains high. Now is still an excellent time to strategize your home sale.
Buyers, the odds of purchasing are still a little more in your favor than they were a few months ago. And as we approach winter, there’s likely to be even less competition.
Sources: Denver Metro Realtor Association and Megan Aller with First
American Title
Please reach out with any real estate questions:
720-738-1080,
michelle.oddo@goluminate.com
July Denver Real Estate
SLIGHT BALANCING IN THE DENVER REAL ESTATE MARKET
The teeter-totter of our supply and demand is slightly less lopsided.
In July buyers experienced a little less competition as sellers’
listings moved a little slower (source: DMAR’s monthly report):
– July ended with 30% more detached and attached properties on the
market than June.
– There were 12% less closings last month, a signal of more inventory
and fewer offers from buyers.
– Our average sales price slightly decreased.
Sellers, the blazing hot market has only cooled to a “very hot”
market. Your chance to receive an excellent offer is higher than
before COVID. With the right pricing and negotiation strategy, your
goals can be met.
Buyers, the odds of purchasing are a little more in your favor. With
the school season starting, there’s likely to be even less
competition. Get back to the search and see how many more homes could
be a fit for your needs (source Megan Aller, First American Title).
Sources: Denver Metro Realtor Association and Megan Aller with First
American Title
Please reach out with any real estate questions:
720-738-1080,
michelle.oddo@goluminate.com
#oddogroup
Home Loan Pre-Approval
What’s the difference between a Pre-Qualification letter and a Pre-Approval letter?
There is a big difference between a pre-qualification letter and a pre-approval letter especially when you go to make an offer in a crazy market like the 2021 Denver metro real estate market.
Most of the country is experiencing way more buyers than we have properties.
What does that mean when the demand for housing is much greater than the supply?
Prices go up and sellers get very picky on which offer they’re going to accept.
If you are not working with a local lender, if you do not have a full pre-approval letter, your offer is not going to go to the top of the pile. It’s going to go down to the bottom of the pile. That is what we are told from every single listing agent across the market on a daily basis.
This is why is it so important to get from pre-qualification to pre-approval as fast as possible.
You want your offer to stand out and you want to be viewed as a serious buyer who is ready to pull the trigger and close on your home quickly.
When we take a pre-qualification application we take the information you’ve provided we pull credit and we pre-qualify you based on the information that you have given us verbally or written in an application.
When we want to pre-approve your loan we ask you to send in all of the documentation that support everything you’ve stated in your loan application.
What are these required documents for a loan application?
They could be:
- pay stubs
- w-2s
- tax returns if you’re self-employed or you have rental properties
- bank statements to show your assets for closing
- investment statements
We put a file together to document and support everything that you’ve stated in that loan application and then we can very confidently tell your agent how you tell the listing agent that we’ve seen everything and this file has been fully underwritten and it is ready to close, it’s just subject to a property title insurance and maybe re-verifying and updating a few things.
So that is the difference between a pre-qualification and a pre-approval. In this market it does not pay to try to go out there and make an offer with just a pre-qualification letter.
If you really want to put your best foot forward, get your documents into your lender, get that pre-approval letter, and get your file fully underwritten and be ready to close quickly!
Mortgage Loans
Download Our Guide To Mortgage Loan Options!
Applying for a home mortgage is one of the biggest and most important financial steps you will take in your lifetime.
Understanding the various mortgage loan options can seem complex to many. The Oddo Group wants to ensure you feel fully educated as you move through this process.
This resource packet will outline various loan options and property requirements.
Please reach out with any questions:
720-738-1080,
michelle.oddo@goluminate.com
#oddogroup
March 2021 Market Statistics
AND THE BEAT GOES ON….
“Unwavering” really does sum up our market in March. Buying and selling activity is as intense as ever with our low inventory and high demand. Some of the highlights (source: DMAR’s monthly report):
- Home appreciated year-over-year by 15%. Last March, the average
property cost $511,511. Currently, it is $589,587. - Almost all sellers received at or above their asking price. The
close-price-to-list-price ratio is 103%.
Such an excellent point:
“As interest rates start to trickle up, prices continue to rise, and inventory continues to shrink, other consistent questions become whether the market is in a bubble and if now is a good time to buy? If you use supply and demand as a metric for the “bubble” question, it would be difficult to think that we are in one.” – Andrew Abrams with DMAR Market Trends Committee
Sellers, this could not be a better time to list. You have the power to negotiate the timing so you can smoothly move into your next home (30, 60, even 90 days out). List after you’re under contract on your next home.
Buyers, it takes patience and determination to succeed in this market. With an expert strategy, you can quickly find properties and make compelling offers that appeal to sellers.
Please reach out with any real estate questions:
720-738-1080,
michelle.oddo@goluminate.com
#oddogroup
Sources: Denver Metro Realtor Association and Megan Aller with First
American Title
7 Things you should know before buying a home
Whether you’re a first time home buyer, or it’s been awhile since you’ve been on the home-buying journey, it may seem a little daunting or overwhelming to know where to even begin.
The first, and probably most important thing, you should know before buying a home: you are not alone. Statistically speaking, hundreds of thousands of people were first time home buyers last year and there will be hundreds of thousands more to come this year (yes-even in the middle of the pandemic).
Another piece of good news is that our team here at Luminate is equipped and ready to help you wherever you are at on your home-buying journey. So before you begin with your home-buying journey, know that you have people in your corner (we are experts too).
It’s our goal to help you feel informed and engaged at every turn.
7 Things You Should Know Before Buying A Home
You are not alone.
Luminate home loan officers are here to help you. It’s our mission to bring clarity and transparency to home loans – no more sending things into a blackhole and waiting for answers. It’s our goal to help you feel informed and engaged at every turn. Whether you’re a first time home buyer, you’re looking to refinance, or have a unique situation, we’ll help you understand all the options, so you can have the home of your dreams.
Think about the future.
Most can agree that buying a house requires larger commitment than signing a year long lease on an apartment. Think about what your long-term goals are. Do you want to start a family in that home? Get a dog? Start a business? According to the National Association of Realtors, homeowner’s live in their homes for an average of thirteen years. A lot can change in just thirteen years so make sure you are future-minded when you are starting to shop for homes.
Purchase price isn’t everything.
As with most things in life, there are many costs beyond just the “sticker price” of a house. Costs such as application fees, down payments, inspection fees, insurance, and real estate taxes add up pretty fast! Before you start your home-buying journey, make a list of all potential costs just to be sure there aren’t any surprises along the way.
There is a pre-approval process.
Unfortunately you can’t just pick out a house you want, put down some cash and move in the next week. There is a pre-approval process every home-buyer has to go through before moving forward and house shopping. Thankfully Luminate makes it accessible in just 4 easy steps:
1. Tell us about you.
a. Talk through your goals and timing, so that together we can decide which loan option is the best fit for you.
2. Fill out the application.
a. Gather your financial details and complete your loan application to start the pre-approval process. We’re always here if you have questions.
3. Get Pre-Approved.
a. Once your application and credit report have been reviewed, you will receive a pre-approval letter to begin your home search.
4. Start shopping.
a. Now that you’re outfitted with a pre-approval letter, your budget, and information about the loan process, you’re ready to get out there and start shopping for a home.
There are perks for being a first time home buyer.
It’s true! If you are a first time home-buyer, the cards are in your favor. You can be eligible for greater tax breaks, federally backed loans, and you don’t have to adhere to the typical minimum down payment of twenty percent!
A new car loan could prevent you from getting your dream home.
When you know that you are gearing up to start your journey of buying a new home, don’t make any major changes that could impact your credit score. The pre-approval process is based on the time you submit your application. Decisions like getting a new car loan, or making changes in your income could potentially keep you from getting approved for a home loan.
Be realistic about what you can afford
A good rule of thumb is keeping your housing expenses under 30% of your monthly gross income. Also, make sure to keep your debt-to-income ratio in mind when deciding what you can and can’t afford in a home. Your debt-to-income ratio is determined by how much of your monthly gross income is paying off debts throughout the month. A good DTI is typically under 36% when trying to get pre-approved for a mortgage. Thankfully you don’t have to figure all of this out on your own; a Luminate Home Loan agent is willing and ready to share their knowledge and find the right loan for you!
Although this process may seem like a lot (disclaimer it kind of is), getting the right team in your corner is all you need to make sure you are starting out on the right foot. Luminate Home Loans has many options for whatever stage of life you may find yourself in.
Get in touch today!
Michelle Oddo
720-738-1080 or michelle.oddo@goluminate.com.
The Mortgage Pre-Approval Process
The Pre-Approval process is quite simple. Our underwriter will fully analyze your financial situation and determine how much home you can comfortably finance. You will fill out a mortgage application and provide other supporting documentation outlined below. Taking the time to review your financial situation and get pre-approved shows sellers you are a serious prospect. With a pre-approval letter in hand, you will be ready to embark on the journey of finding and purchasing your new home!
Download our PDF Getting Pre-Approved
Mortgage Loan Process Guide
Download Our Mortgage Loan Process Guide!
Applying for a home mortgage is one of the biggest and most important financial steps you will take in your lifetime. The mortgage loan process can seem complex to many. The Oddo Group wants to ensure you feel fully educated as you move through this process. This resource packet will outline the steps that you will be taking as you move through the home loan process.
Please reach out with any questions:
720-738-1080,
michelle.oddo@goluminate.com
#oddogroup
November 2020 Market Statistics
WHAT DO YOU WANT 2021 TO BE FOR YOU?
It’s been another banner month of big lows and highs:
– Days on the Market: Homes were going under contract at a speedy
twenty-two days.
– Active Listings: November was our lowest month of inventory since
December of 2017.
– Avg. Sales Price: Record-high closing prices for both single-family
homes ($615,766) and attached condos/townhomes ($549,756).
With so much appreciation, far fewer homeowners will be worrying about
going into forbearance. If you haven’t considered refinancing, now is
the time with our historically low rates!
When the dust settles for 2020, our stats will show it’s been an
unexpectedly stellar year for real estate. Living in the right home
was one of our most significant needs during the pandemic.
So how about you? As you reflect on the upcoming year, no doubt it
will be different from 2020 (hopefully in many wonderful ways).
Do you want:
– A bigger home in the suburbs.
– To move closer to family.
– To invest in a rental for additional income.
– To pay off debt and live a simpler lifestyle.
Then let’s start chatting now. We want to help you design a plan that meets your needs (soulfully and financially). Taking advantage of these low-interest rates and our massive pool of eager buyers, we may be able to get you into the home of your dreams (or closer to your goal).
Please reach out with any real estate questions:
720-738-1080,
michelle.oddo@goluminate.com
#oddogroup
September Denver Market Snapshot
What a record-breaking month for our metro area. By the end of last month, we had the lowest amount of listings on the market for any September. Homes were moving fast…averaging just six days before sellers had made official deals with buyers (the shortest days-on-market average for a September).
But what grew were the number of transactions! Wow…more sellers and buyers went under contract or closed deals than almost ever before!
With a total sales volume of $3.15 billion, September of 2020, holds the third-largest amount of business done for any month in our real estate history.
So it’s not a surprise, sales prices for both single-family and condo homes reached record-breaking highs: $510,000 for detached and $334,752 for attached properties.
While it is a tough market, buyers, you shouldn’t miss the opportunity to take advantage of our rock-bottom interest rates. Getting preapproved for a loan will help you discover how much home you can afford (and we bet it’ll surprise you). With our customized strategy for your needs, together, we’ll navigate this market until you find the right home.
There’s still time to move before the holidays arrive.
Contact us at 720-738-1080 or michelle.oddo@goluminate.com.
Sources: Denver Metro Realtor Association and Megan Aller with First American Title