for the month of July 2019
Are you enjoying your summer so far? There’s such a sweetness to a July day – picnics, pool time, staycations or vacations. July is also one of the most popular times for first time home buyers to venture into the real estate market. Whether looking for that very first home or a seasoned veteran of the process, a recent survey revealed that the majority of us have the same item at the top of our list when seeking our own place. We don’t want to get too far away from family!
Statistically average families reveal the oldest and youngest siblings are the most likely to hang close, while middle kids tend to wander farther afield of the place they’ve grown up. Running a close second is the location of the home in relation to our favorite activities, place of employment, and lifestyle. Most agree a maximum drive time of 30 minutes is preferred, though some will drive longer distances for just the right home that’s just the right distance from family.
Even with lower than normal numbers of homes for sale, the employment numbers and the real estate market remains strong across the Front Range, and first time home buyers are fueling much of that activity. We can thank a positive outlook and low mortgage interest rates, too. Rates have actually declined by more than ½ a point over the preceding several months. Between that and the moderate easing of lending restrictions, greater numbers of people are finding themselves able to qualify for mortgages. Each of these factors is playing a major role in spurring on potential homeowners to overcome continuing low inventory levels and the frustration that can result from stiff competition for the best houses in the most desirable areas. With or without a substantial down payment, more Coloradans are taking advantage of the many loan products available to assist them in making a home purchase.
Last month we talked about new construction stepping up to the plate, and builders have done that with a strong showing. However, current trends indicate it still isn’t enough to meet the demand for homes to purchase. June in Jefferson County was busy as 986 scheduled closings took place from the 1374 available homes listed for sale. Many believe those numbers should be even higher if supply weren’t quite as restricted as we’re experiencing. Most home sellers were pleased though, with the average sale prices of $495,600 as it reflected increased equity gains from the $477,090 of June 2018. The time involved from planting a sign to closing the deal, Days on Market are averaging 19, an uptick from the 17 of last year at this same time.
Technology is continually changing, and how it is used in the real estate industry evolves almost daily. Those active in our markets are finding that while tech advances have permanently changed interactions between agents and clients and most definitely has impacted the process of finding, viewing, offering and closing on real estate, they are also discovering that the more things change, the more things stay the same!
For instance, multi-generational and multi-family housing units are making a strong come back (not sure what the difference is? Ask a RE/MAX Alliance associate!). After years of demand for larger homes with open living spaces, we are seeing a return to less square footage and more defined areas. Green friendly, energy efficient homes remain high priorities for many. Investing in real estate as a part of a retirement portfolio continues to be an excellent option for the golden years. In all of its forms, real estate remains a fundamental and intricate part of every community, impacting our lives in deeply personal ways.