real estate

Navigating the Thriving Denver Metro Area Real Estate Market: A Comprehensive Analysis Using REcolorado.com Stats

/ Paul Gruber / Leave a comment

Introduction

The Denver Metro Area has long been a magnet for individuals seeking a vibrant urban lifestyle, breathtaking mountain views, and a dynamic job market. As a result, the real estate market in the region is in a constant state of flux, presenting both challenges and opportunities for buyers, sellers, and investors. In this blog post, we’ll dive deep into the current state of the Denver Metro Area real estate market, leveraging data from REcolorado.com to provide valuable insights.

Overview of the Denver Metro Area Real Estate Market

1. Housing Market Trends

According to recent data from REcolorado.com, the Denver Metro Area continues to experience robust growth in its housing market. The median home price has shown a steady increase over the past year, indicating a sustained demand for properties in the region. This trend is particularly pronounced in desirable neighborhoods, where limited inventory has led to competitive bidding scenarios.

2. Neighborhood Spotlight

Exploring specific neighborhoods using REcolorado.com stats allows us to identify areas with notable growth and potential. For instance, the RiNo Arts District has witnessed a surge in popularity, with a significant uptick in both property values and new developments. Analyzing such micro-trends can be invaluable for those looking to make informed real estate decisions.

Opportunities for Buyers

1. Mortgage Rates and Affordability

The current market presents a favorable environment for prospective homebuyers. We can suggest several different financing opportunities, helping buyers assess their affordability and make well-informed decisions.

2. Emerging Neighborhoods

As the city evolves, new neighborhoods are emerging as attractive alternatives. REcolorado.com’s comprehensive listings and neighborhood data enable buyers to explore these options, considering factors such as schools, amenities, and future development plans.

Strategies for Sellers

1. Pricing Strategies

Understanding the market’s pricing dynamics is crucial for sellers. Utilizing REcolorado.com’s comparative market analysis (CMA) tools, sellers can determine optimal listing prices, maximizing their chances of attracting serious buyers.

2. Staging and Presentation

High-quality visuals and engaging property descriptions are key to capturing buyer interest. REcolorado.com’s platform allows sellers to showcase their homes effectively, increasing the likelihood of a swift and profitable sale.

Investor Insights

1. Rental Market Analysis

For investors eyeing the rental market, REcolorado.com offers insights into rental trends, helping them identify neighborhoods with high rental demand and potential returns.

2. Flip or Hold?

Understanding the market’s trajectory is essential for investors deciding between flipping and holding properties. REcolorado.com’s historical data and market forecasts contribute valuable information to this decision-making process.

Conclusion

The Denver Metro Area real estate market, as depicted by REcolorado.com’s comprehensive data, is a dynamic landscape filled with opportunities for buyers, sellers, and investors. By staying informed and leveraging the powerful tools available on the platform, individuals can navigate this thriving market with confidence. Whether you’re a first-time homebuyer, a seasoned investor, or a homeowner looking to sell, REcolorado.com provides the insights needed to make well-informed decisions in this exciting and ever-changing real estate environment.

Should I Sell My Denver Home Before it’s Too Late?

/ Paul Gruber / Leave a comment

Should I Sell My Denver Home Before it’s Too Late?

The U.S. economy has been growing faster over the last few years than any of us would have ever believed. The GDP is climbing at a steady 2-3 percent rate, right were economist say it should. There is really no inflation or deflation, for that matter and unemployment has stabilized at its natural rate of less than 4 percent. Economically it is good time to be an American. This is especially true if you have happen to be a homeowner in the Denver Metro Area.

With its steady growth fueled by higher than average wages in the area’s tech industries and near nonexistent unemployment, Denver has been one of the hottest housing markets in the nation for several years running. Just over the last 10 years, the average sales price of a home, in the area has more than doubled. To say it is a seller’s market is like saying the Rockies are mighty big hills.

With all this good news rolling around you might be wondering why any sane person would pick 2018 as the year to sell their Denver home. After all, the city is sitting on one of the nation’s longest running booms.

There are several reasons why now is the time to take the money and run.

Interest rates are on the rise

The interest rates on home mortgages are now running very low. According to Nerdwallet, the average 30-year fixed-rate mortgage is running around 4.17 percent. But, this isn’t expected to last much longer. One sure sign of a healthy economy, like we are presently seeing, is that the Federal Reserve Bank will start raising interest rates.

While there are no drastic changes expected, it doesn’t take but a shift of a few points to force many potential buyers out of the market. Fewer buyers will naturally lead to lower demand and falling prices.

Tax changes are coming

With the passing of the Tax Cuts and Jobs Act at the end of 2017 major changes in what property taxes and mortgage interest you will be allowed to deduct off your income taxes will undergo major changes. Beginning with the 2018 tax year, mortgage interest will only be allowed on the first $750,000 of your debt. Perhaps more significant to many residents of Metro Denver is that the Property Tax Deduction will now be capped at $10,000.

The possible effects of these changes are twofold. If you live in an area with high city and county property taxes you will very likely feel the crunch when paying your income tax bill in 2019. This makes the idea of collecting the capital gain from your home and reinvesting it in an area with lower tax rates an attractive idea.

The second effect is the flip side of the above. The changes in the tax code will make property in high tax areas less attractive to investors and home buyers alike. Again slowing the market and lowering demand.

The difference between a huge profit from your home and a loss is all in the timing and having the right realtor on your side. Denver has been sitting on a bubble for quite some time now and prices are at their peak. Changes are coming though and they are bound to have an impact on the market. If you have given any thought to selling your Metro Denver property, before they arrive is the time to move.

For more information contact Paul at ‘The Edge Group’. With 20+ years of real estate experience in the Denver area, he is the local expert on property values and market trends you can turn to with confidence. Call 303-886-5991 or email: paul@theedgegroup.net today.

Obamacare Tax on Real Estate: Just the Facts

/ Paul Gruber / Leave a comment

There is a new fear among those selling real estate. The fear is that there is a tax on all real estate transactions under Obamacare. There’s no need to worry; not every transaction will be taxed. Let’s look at what this tax really will be.
The tax affects investment properties, and only after certain income requirements. It’s not a sales tax, but a levy tax. The tax was created as a Medicare tax of 3.8% for high income households. Not all real estate transactions are subject to this new tax, nor will all investment transactions be subject to the additional rate.
The first hurdle that needs to be cleared for the tax to apply to your transaction is your household has to earn a combined income of $250,000.00 or greater, and individuals must earn more than $200,000.00. Clearly, this stipulation alone doesn’t apply to the average home seller.
Next, the investment property must have a return on investment above the capital gains threshold of $250,000.00 for an individual or $500,000.00 for a couple.
So, basically you have to earn $200,000.00 individually, or $250,000.00 combined and sell the investment property for more than $250,000.00 individually, or $500,000.00 combined for the Obamacare tax to affect your real estate deal.
Hopefully, this clears up some confusion about the new tax. If you have any further questions regarding selling real estate we will be happy to help you, so give us a call.