Don't Let the Latest Home Price Headlines Confuse you!

Don’t Let the Latest Home Price Headlines Confuse You Based on what you’re hearing in the news about home prices, you may be worried they’re falling. But here’s the thing. The headlines aren’t giving you the full picture. If you look at the national data for 2023, home prices actually showed positive growth for the year. While this varies by market, and while there were some months with slight declines nationally, those were the exception, not the rule. The overarching story is that prices went up last year, not down. Let’s dive into the data to set the record straight.  2023 Was the Return to More Normal Home Price Growth If anything, last year marked a return to more normal home price appreciation. To prove it, here’s what usually happens in residential real estate. In the housing market, there are predictable ebbs and flows that take place each year. It’s called seasonality. It goes like this. Spring is the peak homebuying season when the market is most active. That activity is usually still strong in the summer, but begins to wane toward the end of the year. Home prices follow along with this seasonality because prices grow the most when there’s high demand. The graph below uses data from Case-Shiller to show how this pattern played out in home prices from 1973 through 2022 (not adjusted, so you can see the seasonality):     As the data shows, for nearly 50 years, home prices match typical market seasonality. At the beginning of the year, home prices grow more moderately. That’s because the market is less active as fewer people move in January and February. Then, as the market transitions into the peak homebuying season in the spring, activity ramps up. That means home prices do too. Then, as fall and winter approach, activity eases again and prices grow, just at a slower rate. Now, let’s layer the data that’s come out for 2023 so far (shown in green) on top of that long-term trend (still shown in blue). That way, it’s easy to see how 2023 compares.   As the graph shows, moving through the year in 2023, the level of appreciation fell more in line with the long-term trend for what usually happens in the housing market. You can see that in how close the green bars come to matching the blue bars in the later part of the year. But the headlines only really focused on the two bars outlined in red. Here’s the context you may not have gotten that can really put those two bars into perspective. The long-term trend shows it’s normal for home prices to moderate in the fall and winter. That’s typical seasonality. And since the 49-year average is so close to zero during those months (0.10%), that also means it’s not unusual for home prices to drop ever so slightly during those times. But those are just blips on the radar. If you look at the year as a whole, home prices still rose overall. What You Really Need To Know Headlines are going to call attention to the small month-to-month dips instead of the bigger year-long picture. And that can be a bit misleading because it’s only focused on one part of the whole story. Instead, remember last year we saw the return of seasonality in the housing market – and that’s a good thing after home prices skyrocketed unsustainably during the ‘unicorn’ years of the pandemic. And just in case you’re still worried home prices will fall, don’t be. The expectation for this year is that prices will continue to appreciate as buyers re-enter the market due to mortgage rates trending down compared to last year. As buyer demand goes up and more people move at the same time the supply of homes for sale is still low, the upward pressure on prices will continue. Bottom Line Don’t let home price headlines confuse you. The data shows that, as a whole, home prices rose in 2023. If you have questions about what you’re hearing in the news or about what’s happening with home prices in our local area, let’s connect.

Completely Renovated Home in Charming Berthoud Subdivision: Your Dream Home Awaits!

Are you looking for a home that offers the perfect combination of modern updates and small-town charm? Look no further than 1021 Jefferson Dr in Berthoud, Colorado. This completely renovated quad-level home, situated in the desirable Berthoud Common subdivision, is ready to welcome you with open arms. With a listing price of $515,000, this gem offers incredible value for its features and location. One of the highlights of this property is the extensive renovation it has undergone. From the moment you step inside, you'll be greeted by new luxury vinyl plank (LVP) flooring and plush carpeting that exudes both style and comfort. The kitchen boasts brand-new stainless steel appliances that are as functional as they are visually appealing. The addition of stunning granite countertops adds a touch of elegance to the heart of this home. If you're someone who appreciates a fresh, clean canvas, you'll love the new paint throughout the house. This allows you to bring your personal style and make this house truly feel like your home. The updates don't stop there - the property has been meticulously cared for and includes various other improvements to enhance your living experience. Aside from the incredible updates, this listing offers several other advantages. With a low HOA and no metro tax, your monthly payments will be significantly lower than comparable new home communities. This provides you with more financial flexibility to enjoy the lifestyle you've always desired. Location is key when finding the perfect home, and this property does not disappoint. Situated within walking distance of Hayes Market, the dog park, downtown Berthoud, Berthoud High School, and Ivy Stockwell Elementary School, your daily errands and activities will be a breeze. Additionally, being just 10 minutes away from Loveland and Longmont ensures easy access to a wide range of amenities and entertainment options. Finally, the large private backyard is a true oasis and ideal for hosting summer barbecues or simply enjoying the great outdoors. Whether you have a growing family, love to entertain, or desire a tranquil retreat, this backyard offers endless possibilities. Don't miss out on the opportunity to make 1021 Jefferson Dr your dream home. With its extensive renovations, desirable location, and impressive value, this property won't stay on the market for long. Contact us today to schedule a tour and experience all this listing offers. Presented by Doug Sigg with Paragon Realty Services LLC

What's Really Happening with Mortgage Rates?

What’s Really Happening with Mortgage Rates? Are you feeling a bit unsure about what’s really happening with mortgage rates? That might be because you’ve heard someone say they’re coming down. But then you read somewhere else that they’re up again. And that may leave you scratching your head and wondering what’s true. The simplest answer is: that what you read or hear will vary based on the time frame they’re looking at. Here’s some information that can help clear up the confusion. Mortgage Rates Are Volatile by Nature Mortgage rates don’t move in a straight line. There are too many factors at play for that to happen. Instead, rates bounce around because they’re impacted by things like economic conditions, decisions from the Federal Reserve, and so much more. That means they might be up one day and down the next depending on what’s going on in the economy and the world as a whole. Take a look at the graph below. It uses data from Mortgage News Daily to show the ebbs and flows in the 30-year fixed mortgage rate since last October:     If you look at the graph, you’ll see a lot of peaks and valleys – some bigger than others. And when you use data like this to explain what’s happening, the story can be different based on which two points in the graph you’re comparing. For example, if you’re only looking at the beginning of this month through now, you may think mortgage rates are on the way back up. But, if you look at the latest data point and compare it to the peak in October, rates have trended down. So, what’s the right way to look at it? The Big Picture Mortgage rates are always going to bounce around. It’s just how they work. So, you shouldn’t focus too much on the small, daily changes. Instead, to really understand the overall trend, zoom out and look at the big picture. When you look at the highest point (October) compared to where rates are now, you can see they’ve come down compared to last year. And if you’re looking to buy a home, this is big news. Don’t let the little blips distract you. The experts agree, overall, that the larger downward trend could continue this year.  Bottom Line Let’s connect if you have any questions about what you’re reading or hearing about the housing market.

Discover Your New Home in the Desirable Oakshire Community

Are you looking for a spacious and low-maintenance townhome in the thriving city of Thornton, Colorado? Look no further than this stunning property at 4120 E 119th Pl #C, with a listing price of $405,000. This impressive townhome offers comfort, convenience, and a welcoming community that will make you feel right at home.Upon arrival, you'll be greeted by an inviting porch, perfect for enjoying breathtaking sunsets or sipping on your favorite beverage as you take in the morning sunrise. Step inside, and you'll instantly feel the spaciousness of this townhome, which is larger than many single-family homes. The expansive living room is bathed in natural light and features a cozy fireplace, providing the perfect spot to relax and unwind.One of the highlights of this home is the open-concept design that seamlessly connects the kitchen and living area. Whether you're hosting a dinner party or enjoying a quiet night in, this layout allows for easy flow and interaction. The kitchen boasts modern finishes, including new light fixtures and wood flooring, creating a bright and welcoming ambiance.Upstairs, you'll discover two generously sized bedrooms, each with its own private bathroom. The primary suite is a true sanctuary, with vaulted ceilings, an oversized walk-in closet, and a beautiful view of the community's manicured green belts. This is the perfect retreat after a long day, where you can relax and recharge.The lower level of this townhome grants access to the two-car garage and a convenient laundry room, complete with a washer and dryer. This low-maintenance lifestyle ensures that you can spend more time enjoying the community and all it has to offer.Conveniently located in the heart of North Denver, this townhome provides easy commuting options and proximity to the Light Rail, retail shops, and dining options. Thornton is one of the fastest-growing cities in the region, offering a vibrant and dynamic lifestyle.Don't miss out on this fantastic opportunity to make this townhome your own in the desirable Oakshire community. With its spacious layout, low-maintenance living, and welcoming neighborhood, it's the perfect place to call home. Schedule a viewing today and discover the possibilities that await you in Thornton, Colorado.