September Heats Up

Multiple offers are still the norm as of late September for well-priced homes, especially those at or below median prices. Based on current activity, I don't see the market slowing down as we move into Fall.

A recent survey by the National Association of Realtors showed that buyers are most concerned about the lack of available houses, not the threat of rising interest rates. Another recent survey showed that rents in Boulder and the surrounding areas are increasing at the highest rates statewide. Zillow reports the breakeven horizon (the number of years a renter must live in a home before ownership becomes a better financial proposition ) is 2.7 years in Boulder and 1.4 - 2.4 years in the surrounding areas. See the full details here.

Based on these stats and with interest rates unchanged for now, it's no wonder the market remains hot with more buyers than sellers. It's a great time to be a seller. As rents continue to rise, buyers (homeowners and investors) should likewise act sooner than later.

Using Your IRA to Invest in Real Estate

Join RE/MAX of Boulder and New Direction IRA for an interactive workshop on Self- Directed IRAs and purchasing real estate with your retirement plan. Come learn how you can grow your retirement funds by investing in real estate. Details below. Please let me know if you plan to attend.

Thursday, Feb 20 | 5:30 - 7 p.m. RE/MAX of Boulder 2425 Canyon Blvd

Read my FEB 2014 e-newsletter.

Timing Is Everything In A Tight Market

For sellers in such a tight market, finding a replacement property presents challenges.  A few options to consider:

Buy - Sell

If a good buying opportunity arises and you have the financial wherewithal to acquire it before selling your current home, by all means move forward. Current conditions should make for a rapid sale if your home is priced right.

Sell - Buy

Like most buyers, you may need to sell before buying. Right now, contingency offers are not viable. To be in the best position, you need to be ready to go. In this case, you can make the sale of your house conditioned upon your ability to get under contract on a replacement property within 10 days or so. In the current market, buyers are generally willing to give a seller 10 days to get a replacement property under contract. With your Realtor, get to know the frequency with which homes that meet your criteria appear for sale, and keep this time frame in mind going forward.

Sell - Rent - Buy

Sometimes the right replacement home doesn't appear in time - and moreover you may want to be in a non-pressured buying position. In this case, sell your current home, find a good rental, and enjoy your position as a buyer who is ready but under no time constraints. The right home at the right price is on the horizon.

Read my April 2013 e-newsletter.