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5-Bullet Friday January 17, 2025
Why Timing the Housing Market Rarely Works
It’s easy to fall into the trap of timing the housing market, especially with today’s fluctuating rates and prices. But here’s the truth: timing the housing market rarely works. Every market brings its own set of pros and cons, and waiting for the “perfect moment” often leads to missed opportunities.
Timing the housing market is not the best strategy.
No matter when you buy, there’s always some benefit and some sort of trade-off – and that’s not a bad thing. That’s just the reality of it. If you’re not sure you buy into that, think back to the last 5 years in housing.
Just a few years ago, mortgage rates hit a historic low. To take advantage of that, a ton of buyers rushed to buy a home and lock in those lower rates. The side effect? With such a big increase in how many buyers were purchasing, the homes on the market were snapped up fast. And since that resulted in so few homes left for sale, bidding wars became the norm and home prices went through the roof. Those buyers got a great rate, but they had other things to contend with.
Now, with higher rates and higher prices, it’s more expensive to buy. You can’t argue that. But at the same time, the number of homes for sale is at the highest point in several years. That means you have more options to choose from and you’ll be less likely to find yourself in a pull-out-all-the-stops bidding war. Again, there are benefits and trade-offs in any market.
Get an experienced real estate agent to help you navigate.
So, if you have a reason to move and can afford to do so, you’ve got to take advantage of the trends that work in your favor and lean on a pro to help you navigate the rest. As Bankrate says:
“The complexities of the current conditions mean that, now more than ever, it’s smart to lean on the guidance of an experienced local real estate agent. If you want to enter the housing market in 2025, whether as a buyer or a seller, let a pro lead the way for you.”
While achieving your goals may feel like an uphill battle in today’s complex market, it is doable. But you’ll need the help of a trusted real estate agent and a lender.
Your agent will help you explore creative solutions – like looking into different housing types (like smaller condos), considering homes that need a little elbow grease, or casting a wider net for your search area. And your lender will walk you through different loan options and down payment assistance programs, so you know what you need to do to make the numbers work for you. As Yahoo Finance says:
“Buying a house at a time when both mortgage rates and home prices are favorable is a challenge. You probably shouldn’t try to time the housing market . . . Buy when it makes sense for you personally.”
Bottom Line
There’s no perfect time to move – every market has its pros and cons. The key is knowing how to make the most of the factors working in your favor. If you need to move and can afford to do it, let’s connect so you’ll have the guidance and tools to make it possible.
Credit Scores and Buying a Home: Debunking Myths
Your credit score plays a pivotal role in the homebuying process. It’s one of the key factors lenders consider when determining the types of loan options you qualify for and the terms available to you. Understanding the connection between credit scores and buying a home can help you take control of the process and make informed decisions. Unfortunately, myths about credit scores can hold some buyers back from pursuing their dream of homeownership.
The Myth: You Need Perfect Credit to Buy a Home
A common misconception is that you need a flawless credit score to qualify for a home loan. In fact, a Fannie Mae survey found that only 32% of potential homebuyers have a good understanding of what credit score lenders require. The reality? Two-thirds of buyers overestimate the minimum score needed, which may discourage them from entering the market.
The Reality: Perfect Credit Isn’t Necessary
But the truth is, when it comes to credit scores and buying a home, you don’t need perfect credit to become a homeowner. To see the average score, by loan type, for recent homebuyers check out the graph below:
There is no set cut-off score across the board. As FICO explains:
“While many lenders use credit scores like FICO Scores to help them make lending decisions, each lender has its own strategy, including the level of risk it finds acceptable. There is no single “cutoff score” used by all lenders, and there are many additional factors that lenders may use . . .”
So, even if your credit score isn’t as high as you’d like, you may still be able to get a home loan. Just know that, even though you don’t need perfect credit to buy a home, your score can have an impact on your loan options and the terms you’re able to get.
Work with a trusted lender who can walk you through what you’d qualify for.
Simple Tips To Improve Your Credit Score
If you want to open up your options a bit more after talking to a lender, here are a few tips from Experian and Freddie Mac that can help give your score a boost:
1. Pay Your Bills on Time
This includes everything from credit cards to utilities and other monthly payments. A track record of on-time payments shows lenders you’re responsible and reliable.
2. Pay Down Outstanding Debt
Reducing your overall debt not only improves your credit utilization ratio (how much credit you’re using compared to your total limit) but also makes you a lower-risk borrower in the eyes of lenders. That makes them more likely to approve a loan with better terms.
3. Hold Off on Applying for New Credit
While opening new credit accounts might seem like a quick way to boost your score, too many applications in a short period can have the opposite effect. Focus on improving your existing accounts instead.
Bottom Line
Credit scores and buying a home go hand in hand, but don’t let misconceptions about perfect credit hold you back. You may have more options than you realize. The best step forward? Partner with a trusted lender to understand where you stand and develop a plan tailored to your financial goals. Contact me for a list of preferred lenders in the Denver area.
5-Bullet Friday, January 10, 2025
#1 – JAM OF THE WEEK
“Desperado” – The Eagles
#2 – QUOTE OF THE WEEK
“Good, better, best. Never let it rest. ’Til your good is better and your better is best.” – St. Jerome
#3 – BO NIX SHINES IN RECORD-BREAKING ROOKIE SEASON, LEADING BRONCOS TO PLAYOFFS
Bo Nix capped his impressive rookie season with a standout 4-touchdown performance against the Kansas City Chiefs, earning his second AFC Offensive Player of the Week award—the first Broncos player to win multiple OPOY honors since Peyton Manning in 2013. Nix, who opened the game with a record-setting 18 consecutive completions, finished the season with 29 touchdown passes (second-most for a rookie in NFL history) and 34 total touchdowns, ranking third all-time for NFL rookies. His consistency, quick learning, and leadership helped make the 2024 Broncos a playoff team, surprising the league but not his teammates, who saw his potential from training camp.
#4 – ESSENTIAL COSTS TO PLAN FOR WHEN BUYING A HOME
The best time to buy a home is when you are ready. Budgeting for a home doesn’t have to be overwhelming if you understand the upfront costs. Key expenses to plan for include your down payment, which could be as low as 3.5% or even 0%, depending on your loan type. You’ll also need to budget for closing costs, typically 2-5% of the loan amount, covering fees like appraisals and title insurance. Additionally, consider saving for an earnest money deposit, usually 1-2% of the home price, which demonstrates your commitment to the seller and applies toward your upfront costs. By working with a trusted lender and expert real estate agent, you’ll be well-equipped to plan and navigate the process with confidence.
#5 – FIVE FUN ACTIVITIES TO DO IN COLORADO IN JANUARY
January in Denver is a magical time when the city buzzes with winter activities, cozy vibes, and breathtaking scenery. Here are five must-do activities to make the most of the season:
1. Hit the Slopes or Go Snowshoeing
Take advantage of Colorado’s snowy peaks with a day trip to the mountains. Whether you’re a skier, snowboarder, or prefer a peaceful snowshoeing adventure, there are plenty of options just a short drive from Denver, like Breckenridge, Winter Park, or Rocky Mountain National Park.
2. Explore the National Western Stock Show
Running for over 100 years, the National Western Stock Show is a Denver tradition. From rodeos to livestock exhibitions and family-friendly activities, it’s a celebration of Western heritage you won’t want to miss.
3. Stroll Through the Denver Botanic Gardens’ Winter Glow
Even in winter, the Denver Botanic Gardens offers a serene escape. With light displays, winter blooms, and peaceful trails, it’s the perfect way to experience nature’s beauty during the colder months.
4. Warm Up at a Cozy Hot Chocolate Spot
Denver is home to some incredible spots to enjoy a cup of rich, indulgent hot chocolate. Try places like Union Station’s Terminal Bar, the Chocolate Lab, or Temper Chocolates & Confections for a sweet treat that’ll warm you right up.
5. Visit the Denver Art Museum’s Special Exhibits
Spend a chilly day indoors exploring the Denver Art Museum’s latest exhibitions. January often features captivating displays, including art from around the globe, sure to inspire and amaze.
With Denver’s blend of outdoor adventure, cultural experiences, and cozy city spots, January is a fantastic time to enjoy the Mile High City. Whether you’re a local or just visiting, these activities will help you kick off the new year with unforgettable memories!
Mortgage Forbearance For Homeowners Facing Challenges
Let’s face it – life can throw some curveballs. Whether it’s a job loss, unexpected bills, or a natural disaster, financial struggles can happen to anyone. But here’s the good news. If you’re a homeowner feeling the squeeze, mortgage forbearance for homeowners facing challenges is a lifeline that many people don’t realize is still available.
What Is Mortgage Forbearance?
As Bankrate explains:
“Mortgage forbearance is an option that allows borrowers to pause or lower their mortgage payments while dealing with a short-term crisis, such as a job loss, illness or other financial setback . . . When you can’t afford to pay your mortgage, forbearance gives you a chance to sort out your finances and get back on track.”
A common misconception is that forbearance was only accessible during the COVID-19 pandemic. While it did play a significant role in helping homeowners through that crisis, what many people don’t know is that forbearance is still a tool to support borrowers in times of need. Today, it remains a vital option to help homeowners in certain circumstances avoid delinquency and, ultimately, foreclosure.
The Current State of Mortgage Forbearance
Forbearance continues to serve as a valuable safety net for homeowners facing temporary financial challenges. While the overall rate of forbearance has seen a slight increase recently, it’s important to understand what’s driving this change and how it fits into the broader picture.
According to Marina Walsh, VP of Industry Analysis at the Mortgage Bankers Association (MBA):
“The overall mortgage forbearance rate increased three basis points in November and has now risen for six consecutive months.”
This may seem concerning at first glance, but let’s break it down. The graph below, going all the way back to 2020, puts things into perspective:
While the share of mortgages in forbearance has significantly declined since its peak in mid-2020, there has been a slight but notable increase in recent months. This uptick is largely tied to the effects of two recent hurricanes — Helene and Milton.
Natural disasters like these often create temporary financial hardships for homeowners, making forbearance a crucial safety net during recovery. In fact, 46% of borrowers in forbearance today cite natural disasters as the reason for their financial struggles.
Even with the most recent uptick, the share of mortgages in forbearance is nowhere near pandemic levels, and, thankfully, reflects a very small portion of homeowners overall.
Why Forbearance Matters
Mortgage forbearance for homeowners facing challenges can help borrowers avoid the spiral of missed payments and foreclosure. It provides breathing room to address challenges and plan next steps. And while most homeowners today are not in a position to need forbearance, thanks to strong equity and foundations of the current housing market, it is an option for the few who do need it.
If you or a homeowner you know is facing financial difficulties, the first step is to contact your mortgage lender. They can walk you through the forbearance process and help you understand your options. Keep in mind that forbearance is not automatic — you need to apply and discuss the terms with your lender.
Bottom Line In tough times, knowing your options can bring peace of mind. Forbearance isn’t just a financial tool — it’s a lifeline. And while the recent increase in forbearance rates might make headlines that give you pause, the truth is this option is working exactly as it should: helping those who need it most get through difficult moments without losing their homes.
How We Can Help
If you’re facing financial difficulties and considering your options, we’re here to help. As experienced real estate agents, we can provide guidance on selling your home if necessary or understanding your home’s equity to make informed decisions. Reach out to discuss your situation confidentially—we’re here to support you every step of the way.
Denver Housing Market 2025: Stability Ahead
The Denver housing market 2025 is shaping up to be a year of stability and opportunity. Experts predict steady interest rates, an increase in home listings, and a balanced market that benefits both buyers and sellers. This optimistic outlook offers hope for those navigating the market.
Interest Rates Stay High but Stable
Interest rates in 2025 are expected to remain between 6.5% and 7%. While rates are still high, the Federal Reserve has announced plans for only two small cuts this year. This stability allows buyers and sellers to move forward with more certainty and confidence.
More Homes for Sale
Denver’s housing supply is expected to grow in 2025 as more sellers list their homes and builders continue adding new properties. Experts believe this gradual increase will help balance the market. However, move-in-ready homes will still face strong competition as demand remains high.
Higher Transaction Volumes Expected
Following a slower 2024, the Denver housing market 2025 is expected to see an uptick in home sales. Major life events such as marriages, relocations, and growing families will motivate people to buy and sell homes. With recent uncertainties settling, many feel ready to make their move.
Strong Demand for Homeownership
Millennials and Gen Z buyers are driving the market as they reach their prime home-buying years. Although affordability challenges persist, the desire for homeownership remains strong. This demand continues to push the market forward, even amid higher interest rates.
City Living Makes a Comeback
Urban living is becoming popular again as companies bring employees back to offices. Downtown Denver is seeing increased interest, with buyers seeking homes that offer modern amenities, convenience, and short commutes. This shift marks a return to city lifestyles after years of suburban growth.
Despite challenges like high rates and affordability concerns, the Denver housing market 2025 is poised for steady growth. Experts agree that rising inventory and strong buyer demand will keep the market active throughout the year.
Contact me if you have questions about navigating the 2025 real estate market.
(Source: The Denver Post)
Is Home Staging Worth It? What You Need To Know
Is Home Staging Worth It?
You may have heard that staging your home properly can make a big difference when selling your house, but is home staging worth it? Let’s dive into the details and answer some FAQs to help you decide how much you should prioritize staging as you prep for your move.
What Is Home Staging?
Staging is the process of arranging and decorating your house to highlight its best features and make it as appealing as possible to potential buyers. It can range from simple touch-ups to more extensive setups, depending on your needs and budget.
Why Is Home Staging Worth It?
Studies show that good staging can make your home stand out in the market. Proper staging often attracts more buyers, helping your house sell faster and potentially at a higher price than if it were unstaged. With buyers forming first impressions quickly, staging gives your home the competitive edge it needs.
What Are My Staging Options?
If you’re convinced that home staging is worth it, here’s a breakdown of your options:
- DIY Staging with Your Agent’s Guidance: Real estate agents can help you declutter, depersonalize, and arrange furniture to improve flow and space. Small touches like adding plants or re-arranging accessories can make a big impact.
- Full-Service Staging: Professional stagers can transform your space, often renting furniture and decor to bring out its full potential. While this option costs more, it can be invaluable in a slower market or for unique homes.
How Do I Choose the Right Staging Approach?
Your real estate agent can help determine if professional staging is worth the investment or if simpler DIY staging will suffice. They’ll consider:
- Market Conditions: In a slower market, staging can make your home stand out as move-in ready.
- Your Home’s Condition: Vacant homes or those with unique layouts may benefit more from professional staging.
- Your Budget: Agents can recommend cost-effective staging tips if your budget is tight.
Bottom Line: Is Home Staging Worth It?
Home staging can make your house more appealing to buyers, but it’s not a one-size-fits-all solution. Let’s connect to discuss what level of staging your home truly needs to stand out and sell for top dollar.
Your Tax Refund Can Help You Buy a Home
The Expense of Buying A Home
Have you been saving up to buy a home this year? If so, you know there are a number of expenses involved – from your down payment to closing costs. But did you also know that using your tax refund can help you buy a home by paying for some of these expenses? As Credit Karma explains:
“If one of your goals is to stop renting and buy a home, you’ll need to save up for closing costs and a down payment on the mortgage. A tax refund can give you a start on the road to homeownership. If you’ve already started to save, your tax refund could move you down the road faster.”
How Big Is Your Tax Refund?
While how much money you may get in a tax refund is going to vary, it can be encouraging to have a general idea of what’s possible. Here’s what CNET has to say about the average increase people are seeing this year:
“The average refund size is up by 6.1%, from $2,903 for 2023’s tax season through March 24, to $3,081 for this season through March 22.”
How To Use Your Refund When Purchasing a Home
Sounds great, right? Remember, your number is going to be different. But if you do get a refund, here are a few examples of how you can use it when buying a home. According to Freddie Mac:
- Saving for a down payment – One of the biggest barriers to homeownership is setting aside enough money for a down payment. You could reach your savings goal even faster by using your tax refund to help.
- Paying for closing costs – Closing costs cover some of the payments you’ll make at closing. They’re generally between 2% and 5% of the total purchase price of the home. You could direct your tax refund toward these closing costs.
- Lowering your mortgage rate – Your lender might give you the option to buy down your mortgage rate. If affordability is tight for you at today’s rates and home prices, this option may be worth exploring. If you qualify for this option, you could pay upfront to have a lower rate on your mortgage.
The best way to get ready to buy a home is to work with a team of trusted real estate professionals who understand the process and what you’ll need to do to be ready to buy.
Bottom Line
Your tax refund can help you reach your savings goal for buying a home. Let’s talk about what you’re looking for, because your home may be more within reach than you think.
Why You Want an Agent’s Advice for Your Move
Buying and selling a home is a big endeavor! Find a real estate broker that you can trust.
You Want an Agent’s Advice for Your Move
No matter how you slice it, buying or selling a home is a big decision. And when you’re going through any change in your life and you need some guidance, what do you do? You get advice from people who know what they’re talking about. You want an agent’s advice for your move.
Moving is no exception. You need insights from the pros to help you feel confident in your decision. Freddie Mac explains it like this:
“As you set out to find the right home for your family, be sure to select experienced, trusted professionals who will help you make informed decisions and avoid pitfalls.”
And while perfect advice isn’t possible – not even from the experts, what you can get is the very best advice out there.
The Power of Expert a Real Estate Agent’s Advice
For example, let’s say you need an attorney. You start off by finding an expert in the type of law required for your case. Once you do, they won’t immediately tell you how the case is going to end, or how the judge or jury will rule. But what a good attorney can do is walk you through the most effective strategies based on their experience and help you put a plan together. They’ll even use their knowledge to adjust that plan as new information becomes available.
The job of a real estate agent is similar. Just like you can’t find a lawyer to give you perfect advice, you won’t find a real estate professional who can either. That’s because it’s impossible to know everything that’s going to happen throughout your transaction. Their role is to give you the best advice they can.
To do that, an agent will draw on their experience, industry knowledge, and market data. They know the latest trends, the ins and outs of the homebuying and selling processes, and what’s worked for other people in the same situation as you.
With that expertise, a real estate advisor can anticipate what could happen next and work with you to put together a solid plan. Then, they’ll guide you through the process, helping you make decisions along the way. That’s the very definition of getting the best – not perfect – advice. And that’s the power of working with a real estate advisor.
Bottom Line
If you’re looking to buy or sell a home, you want an expert on your side to help you each step of the way. Let’s connect so you have advice you can count on.
Experts Have Revised Their 2024 Home Price Forecasts Up
Home prices expected to increase in 2024.
Over the past few months, experts have revised their 2024 home price forecasts up, based on the latest data and market signals, and they’re even more confident prices will rise, not fall.
So, let’s see exactly how experts’ thinking has shifted – and what’s caused the change.
2024 Home Price Forecasts: Then and Now
The chart below shows what seven expert organizations think will happen to home prices in 2024. It compares their first 2024 home price forecasts (made at the end of 2023) with their newest projections:
The middle column shows that, at first, these experts thought home prices would only go up a little this year. But if you look at the column on the right, you’ll see they’ve all updated their forecasts and now think prices will go up more than they originally thought. And some of the differences are major.
There are two big factors keeping such strong upward pressure on home prices. The first is how few homes are for sale right now. According to Business Insider:
“Low home inventory is a chronic problem in the US. This has generally kept home prices up . . .”
A lack of housing inventory has been pushing prices up for a long time now – and that’s not expected to change dramatically this year. But what has changed a bit is mortgage rates.
Late last year when most housing market experts were calling for home prices to rise only a little bit in 2024, mortgage rates were up and buyer demand was more moderate.
Now that rates have come down from their peak last October, and with further declines expected over the course of the year, buyer demand has picked up. That increase in demand, along with an ongoing lack of inventory, is what’s caused the experts to feel the upward pressure on prices will be stronger than they expected a couple months ago.
A Look Forward To Get Ahead of the Next Forecast Revisions
Real estate experts regularly revise their home price forecasts as the housing market shifts. It’s a normal part of their job that ensures their projections are always up-to-date and factor in the latest changes in the housing market.
That means they’ll continue to revise their projections as the housing market changes, just as they’ve always done. How those forecasts change next is anyone’s guess, but pay attention to mortgage rates.
If they trend down as the year goes on, as they’re expected to do, that could lead to more buyer demand and even higher home price forecasts.
Basically, it’s all about supply and demand. With supply still so limited, anything that causes demand to go up will likely cause prices to go up, too.
Bottom Line
At first, experts believed home prices would only go up a little this year. But now, they’ve changed their minds and experts have revised their 2024 home price forecasts up, more than they originally thought. Let’s connect so you know what to expect with prices in our area.
