The March 2018 real estate statistics are here, and Denver set a record for average price in the metro area for the second month in a row. The average single family home is now priced at $522,277. In March, 6,335 new listings hit the market … Continue reading March 2018 Market Update
Do you love Cherry Creek but are not ready to buy? Many people want to see the dust settle before committing to buying in Cherry Creek, need something short term or furnished or want the flexibility of a lease, while expecting high quality structure, superior … Continue reading Unique Luxury Rentals in the Heart of Cherry Creek North!
Barcelona is a new tapas restaurant and wine bar located at 2900 Larimer St in RiNo. It opened just over a week ago, and I had the pleasure of dining there this past Sunday. The space is large, but neatly divided so it perfectly balances … Continue reading Barcelona Wine Bar – Restaurant Review
I am a proud sponsor of the Colorado Symphony, both with donations and purchasing tickets to performances. To further support our wonderful symphony orchestra I would like to give away two tickets to Béla Fleck with the Colorado Symphony, performing Béla Fleck’s Concerto for Banjo … Continue reading Colorado Symphony Ticket Giveaway!
The Federal Reserve raised the federal funds rate at its meeting on 3/21/18, as widely expected. Furthermore, interest rates are projected to continue to rise through 2018, with some predicting mortgage rates to reach 5% by the end of the year.
While this is still historically low for mortgage rates, buyers need to take into account the relationship between interest rates and purchasing power. The relationship is negative, meaning that an increase in the interest rate decreases purchasing power, and by a much larger factor that one might think.
The image below shows this relationship for a purchase price of $470,000, which is slightly below the average price for single family homes in Denver. As you can see, every 1% increase in the interest rate, decreases purchasing power by 11.2%, meaning that the buyer that used to be able to afford to by a $470,000 home is now looking at a $417,000 home.
Therefore, I encourage buyers that are currently on the sidelines, but seriously considering to purchase a home, to get in touch with me and a lender now, and get the process rolling.
Sellers should take note of this as well, because even though the market is continuing to go up in price, the pool of buyers that can afford their home now might shrink in the next 6 months due to rising interest rates.
For most of us homeowners, our home represents our biggest asset – in fact, by the time the average American reaches the age of 65, 83% of their personal wealth will come from their home equity. So why aren’t we consistently tracking our home’s value … Continue reading Homebot – A Necessary Tool for Homeowners