Why is it Still a Seller’s Market?

Why is it a seller’s market right now?

There are not enough homes available to meet today’s buyer demand in the real estate market. That means it is an ideal time for those who are ready to sell because there are likely buyers out there right now who would love to buy your house today.

To put the real estate market in perspective, check out this graph which shows the number of active listing on the market for the last seven Februarys.
Active Monthly Listings last Seven Years

Active Monthly Listing Counts Over the Last Seven Februarys

  • 2017 – 1.15 Million Active Listings
  • 2018 – 1.04 Million Active Listings
  • 2019 – 1.10 Million Active Listings
  • 2020 – 927 Thousand Active Listings
  • 2021 – 463 Thousand Active Listings
  • 2022 – 344 Thousand Active Listings
  • 2023 – 578 Thousand Active Listings
As you can see, even though there are more available homes in February 2023 than in February 2021 and 2022, there are still far fewer listings than we saw in a normal pre-pandemic year.
That is creating a sweet spot for sellers right now. Housing inventory is low, which means that you have the advantage of a seller’s market. However, the housing inventory is also increasing, which means that you will have more options when you are home shopping and move.
As the pace at which buyer demand outpaces the housing supply continues to shrink, the need for buyers to enter into bidding wars and waive contingencies for things like appraisals and inspections also decreases.

Moving Toward a Balanced Market

According to BankRate, the guideline for a balanced real estate market, or one that neither favors sellers or buyers, is defined by a five to six month supply of homes. While we are still in a seller’s market, the balance between the housing inventory and buyer demand is progressing.
If you are thinking about selling, then this can be your chance. Connect with us at the Barrington Group Real Estate so that you can make the most out of this market.

And don’t forget, please like this video and subscribe to our YouTube Channel.

Sources: Realtor.com | BankRate

Worried about a Housing Market Crash?

Front Patio - Worried about a Housing Market Crash?
Are you worried that the hosing market is headed for a crash? You aren’t alone! Two in three Americans think that there is going to be a housing market crash in the next few years.
However, here is the reality… a crash like we saw back in 2008 is far from likely.
Today’s housing market isn’t like it was 15 years ago.
  • Mortgage standards are stricter now than they were in 2008
  • There are fewer foreclosures in today’s real estate industry
  • There are fewer homes for sale in today’s housing market

Mortgage standards are higher today than during the 2008 housing market crash.

Back in the 2008, it was so much easier to get a home loan. If you could fog a mirror, then you qualified for a mortgage. Mortgage standards are way tighter now with laws and regulations in place to prevent predatory lending, which means that buyers are more qualified.

The real estate industry has fewer foreclosures today than the housing market crash of 2008.

With the higher mortgage standards and more qualified buyers, homeowners are less likely to default on their loans. According to Rick Sharga of ATTOM in an article on U.S. News, “ninety-three percent of borrowers who are in foreclosure today actually have positive equity in their homes” that provides more options for better landing places.

Back in 2008, there were far more homes for sale in the housing market compared to the number of buyers.

Excessive building prior to 2008 is one reason why home prices dropped, with supply outstripping demand. Now there are too few homes on the market, mainly due to a number of years of under-building, and that is the key reason that home prices are still strong.
When we look at the facts, it is clear that today’s real estate industry is very different from the housing market crash of 2008. There is no need to fear a crash.
Connect with us at the Barrington Group Real Estate and lets talk. While we take the real estate process and business seriously, we also like to have fun working as some of the best realtors in Denver.

And remember, please like this video and subscribe to our YouTube Channel.

Sources: MBA | ATTOM | NAR

Is it a Seller’s Market right now?

Is it a Seller's Market right now? Living Room
If you are looking at selling your house while shopping for a new home, you have a couple key advantages right now in the seller’s market today.

Advantage for Buyers in Current Seller’s Market

There are more homes for sale in the housing market right now than there were previously at this time last year. This means that home buyers have more options to choose from. Additionally, this also means that buyers are more likely to find what they are looking for when home shopping versus last year, where 80% of buyers said that they had to settle according to LendingTree.

Advantage for Sellers in Current Seller’s Market

While the housing inventory is increasing, it is still 43.2% lower than 2017-2019 according to Realtor.com, so if you price your house right, then it’s going to be in high demand. There aren’t enough homes on the market today for the number of buyers who want to purchase them, which means your house could sell very quickly and sellers need to be prepared for that.
With more homes to choose from but still an overall shortage of real estate listings, you may be in a true sweet spot this season.

Seller’s Market Sweet Spot

  • With less competition, the market sees higher prices and quicker sales
  • Sellers have more negotiating power, where you’ll need to make less concessions
  • Frequently older homes means premium location and larger lots which leads to more demand and generally higher sale prices
If you’re ready to make a move, then we at the Barrington Group Real Estate can give you expert guidance (we know what makes a good Realtor). Let’s connect so that you don’t miss out on what today’s housing market has to offer.
And don’t forget, please like this video and subscribe to our YouTube Channel.

Pros and Cons of New Construction Homes vs Resale Homes

Construction Site - Pros and Cons of New Construction Homes vs Resale Homes
Are you planning to make a move this year? With so few homes available to buy right now, it is important that you really consider all of your options. Let’s take a look at the Pros and the Cons of building a new home versus buying one that already exists.

Pros to New Construction Homes

  • Customizable Features
  • Warranties
  • Energy Efficiency

Cons to New Construction Homes

  • Higher costs can come in the form higher price per square foot, material cost, and features potentially not included like fences, basements, and sod.
  • Limited negotiating power as the builder is frequently the seller and wants to maximize profit.
  • Decision fatigue can happen when deciding between all of the customizable features.
Building a new home lets you choose the features that you like the most, it’s customizable, and everything is brand new. Plus, new homes usually come with warranties and greater energy efficiency, both of which can help you save money in the long run. New construction homes tend to have lower maintenance with no immediate projects to manage, which can provide peace of mind.

Pros to Resale Homes

  • Variety of Styles and Floorplans
  • Established Neighborhood
  • Move in Faster
Homes that have been lived-in, or resale homes, offer a wider range of styles and floorplans. They allow you to join an established neighborhood, plus you can usually move-in faster without waiting for a new home to be built. New construction homes can work on a longer timeline, so if you have a short buying window, then resale homes might be the best fit.
There is a lot to consider when thinking about new-build homes versus buying an existing house. This is why it is so important to work with an expert advisor and top real estate agents to help you weigh all of the options in todays real estate market.

Things to Remember when looking at New Construction Homes

A couple important things to remember before you wander into a model home all by yourself. Look around you, everything you see is likely not included or it is an upgrade. You will not save money by not using a real estate agent, but the builder will make more money. The nice salesperson onsite works for the builder, and not for you, so make sure you have representation.
If you’re thinking about your next move, then let’s get together and talk about what is available for real estate in Parker, Colorado and the surrounding area (Homes for sale in the Denver Metro Area).
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Is the Housing Market Going to Crash?

Neighborhood Street - Is the housing market going to crash?
Let’s clear up a misunderstanding in today’s real estate market about an imminent housing crash. Despite what you may have heard, today’s housing market isn’t like what it was back in 2008. The housing market isn’t going to crash.

From the National Association of Realtors, we know that the supply of homes in different in today’s housing market than it was in 2008. Back in 2008, there were too many homes for sale compared to the number of buyers in the market. There was also a wave of short sales, foreclosures, and overbuilding that put the market into a bubble.

According to the latest data, the unsold inventory sits at just 3.3 months supply at the current sales pace. This is significantly lower compared to month’s supply during the housing market crash of 2008.

Is the housing market going to crash like it did in 2008?

There isn’t enough inventory for the housing market to crash in today’s market. Despite what the media may be telling you, this is the reason why the data shows that the current market isn’t like it was during the crash.

What other key indicators show that today’s market differs from 2008?

  • We have a strong labor market today, while the last housing downturn saw, in just a single year, 8 million job losses.
  • We are seeing much less risky home loans offered while subprime loans were common during the 2008 housing market bust.
  • The rate at which mortgage borrowers were delinquent on their loans was at 10% in 2008 versus 3.6% today.
  • We are seeing an historically low foreclosure rate at 0.6% whereas 2008 saw a 4.6% foreclosure rate.
If you have questions about what is happening is today’s housing market, then the Barrington Group Real Estate is here to help. Let’s connect and you can get the answers that you need today.
Don’t forget to like and subscribe to the Barrington Group Real Estate YouTube Channel where you can watch my next episode of Parker is My Town.
Give me a call at 720.244.1308 or email me at Anne@BarringtonGroupRE.com.

Inflation, the key to the Real Estate Market in 2023

Living Room in house
Do you know what’s going to happen in the real estate market in 2023? Spoiler alert! It’s all about inflation.

Two key factors will shape the 2023 housing market:

  • Inflation
  • Mortgage Rates

The big factor in the real estate market in 2023 is inflation.

Here’s the thing, mortgage rates rose dramatically in 2022 (but Home Equity grew despite a cooled Housing Market). That was due to the Federal Reserve’s actions to try and bring inflation down. There are some signs that inflation maybe starting to cool, but where the market goes from here really depends on the Federal Reserve’s ability to keep inflation under control. If inflation continues to fall like we have seen lately, then mortgage rates will likely fall as well.
If there is anything that we all want in the real estate industry, then it is stability and predictability. If inflation eases, then we may see that with mortgage rates, too. In the mean time, plan for some volatility.

Remember, 2023 is going to be all about that word “inflation.”

We will keep following the latest information on the real estate market at Barrington Group Real Estate, so if you have questions on what we can expect this year, then let’s connect.
Don’t forget to like and subscribe to the Barrington Group Real Estate YouTube Channel where you can watch my next episode of Parker is My Town.
Give me a call at 720.244.1308 or email me at Anne@BarringtonGroupRE.com.

Local Parker Business Leaders on My Mainstreet Project

O'Brien Park Gazebo in Downtown Parker

Today we continue with part two of Parker is My Town podcast with three local Parker, Colorado business leaders (see Why Parker? Three Local Business Leaders Share Their Stories) to get their thoughts on the My Mainstreet Project. With how important this project is for Parker, gaining insight into how this development is viewed by local leaders is paramount to success.

Local Parker, Colorado Business Owners

Josh Rivero on My Mainstreet Project

Josh Rivero is the owner of Fika Coffee House and is long-time Parker Town Council member. While his belief in the project started before he founded his local business, the dream of a more integrated and thriving Downtown Parker began decades ago with the Downtown Development Council and was started by the local land owners.
As a local business owner, he is excited by the development and what that means for Parker. Currently as the only coffee shop in downtown, he benefits from a monopoly but understands that as the project culminates that competition will come. While competition will breed better business and growth, he is focused on how the project will benefit Parker as a whole and that Parker takes care of its own. Downtown Parker businesses work together with a community mentality, rather different from just a bunch of businesses in a branded strip mall.
Where the sum can be greater than its parts, Parker is striving to be the destination and excite its citizens and greater community to shop and be local.
My Mainstreet Project is about Parker and what’s best for the people, close to home, and their downtown.

Dawn Danner on My Mainstreet Project

Being a new business on Mainstreet, Dawn Danner, the owner of The Nest Salon and Boutique, had the unique opportunity to talk with the community about the My Mainstreet Project where people didn’t see her as having a stance on the project. Much of the community wants to keep Parker a small town and Dawn believes that no one wants to lose that feature.
Just spending a few minutes on Mainstreet, one can understand how magical it is. When opening up The Nest, Dawn experienced the generosity and willingness to help that the other business owners maintain for one another. Parker is a big little town, and no one is going to let that magic go. While there will be bumps along the way and growing pains, My Mainstreet Project is going to make things more magical.

Susan Bertocchi on My Mainstreet Project

As the owner of Kilwins Parker, Susan knows that competition is coming. To maintain the culture of the business owners in Downtown Parker, Susan is ready to welcome them because that is the type of people we are in Parker. Even before fully opening Kilwins Parker, Susan felt very welcomed and was asked to join the Downtown Business Alliance. That camaraderie is something she is ready to share.
Susan doesn’t see challenges in filling the new open spaces and opportunities that the My Mainstreet Project presents with more small businesses. This project provides the chance for owners to make that dream happen of opening their business on Mainstreet in Downtown Parker.
While construction will be challenging, Susan hopes to welcome more people to the community of business owners in Downtown Parker.

Anne Barrington’s Final Thoughts

Anne is very excited about the project and the opportunities it presents. Since Downtown Parker has zero vacancies, the development provides the opportunity to achieve business ownership on Mainstreet in Parker.
You can find my weekly Parker is My Town episodes on my YouTube Channel or on my real estate blog.