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Colorado Is Top 5 On Google Searches

Colorado made the top 5 list for people searching “will the housing market crash”.  Someone mentioned yesterday that Colorado was in a recession.  Then there’s the talk of more people moving out of Colorado than moving in.  All of these conjectures could have you and your clients worried about where our market is headed.. and is it going to crash.

Of course I can rattle off the stats comparing today to 2008 with today’s higher credit scores, lower LTVs, more equity, more savings, more jobs and WAY less inventory … but, today another new report was released doing my work for me.  Did you see the Mortgage Originations by Credit Score chart in Thursday’s Market Update… showing 97% of buyers have over a 660 credit score today compared to 66% in 2007.  Here’s another hum-dinger showing just how easy (not!) it is to get a loan today.  In 2005-2007 people who could not even afford one home were buying 2, 3, and 4 with no income, no assets, an 80-20 loan on an Option ARM.  Today the Mortgage Credit Availability Index is near an all-time low, falling for the fifth straight month in July to its lowest level in nine years.  Does it feel like it’s harder to get a loan today?  It is… as lending standards are tight.  No more fogging a mirror to get a loan.

Tighter lending standards, many mortgages locked in under 4%, double the equity of 2008, and a third of all homes owned free and clear, will continue to support the strength of the housing market.

But with the current spike in inventory; price reductions have google searchers staying engaged.  Active Inventory did increase as higher mortgage rates slowed buyer, but lack of new inventory will not support this continued trend.  We are also now seeing active inventory increases slowing.  The percentage of price reductions will follow as sellers get adjusted to pricing their home right compared to their neighbor’s sale three months ago.

If you want to hear more about Colorado’s economy, make sure not to miss September’s special Agent Ignite with Patty Silverstein.  The Fieldhouse will fill up and Patty will be in-person.  Patty goes from 9-10am then Megan and I get on Zoom for our weekly Market Trends.

 

I Didn’t Start Until I Was 40

There was a 58-year-old nurse in one of the three investment classes I was honored to teach this week.  She came up to me after the event saying how much investing made sense but how she wished she’d learned it sooner. As a single woman renting, her options seemed depressingly limited.  She earns a salary of $78,000, has no debt, has very little in savings and rents for $2900 a month.  Her and I got raw.  If she did nothing, she would be forced to live off of social security income alone and still have to pay rent.  If we could find her a small home and even better, a small home with an ADU or rentable basement, we have options.  With her income she could qualify for a $500k home; if it had an ADU with a market rent of $1000/mo, she qualifies for $650,000.  That’s where you come in.  As her real estate agent, can we find her something she can house hack; giving her more income to compliment her social security and get her personal living expense under the original $2900.  What this also does is lock in her monthly payment.  She is hoping to retire in 7 years.  During those 7 years home values and rents will continue going up even if slowly.  I want to put her in a position where it is her wealth going up, not her landlords and where her house hacking rental income is helping her keep up with inflation.

When I teach investing to high schoolers, Gen Z or Millennials, the overarching message is to buy early and not sell.  I emphasize to hold onto those properties and over time, they will appreciate giving you options.  Options of cash flow, tax deductions, and asset allocations.  As you know, I helped my three kiddos purchase their first homes at age 21 to capitalize on the value of time.  But I did not have that luxury.  I didn’t know anything about real estate other than the roof it put over my head.  I grew up in rentals, not owning.  At age 40, I bought my first rental with the help of Don Kramer.  The reality of what changed did not hit me until age 45 when we bought a second 4-plex.

Owning 24 doors today gives me options.  That’s it.  It’s not about the money.  Okay.. so It’s kind of about the money.. but more about the options.  An asset that continues to grow, allows me to appreciate on the whole, when I only put a limited amount down, and a debt others pay down then I get to benefit from.  Taxes I get to write off, equity I get to reuse, then a legacy I get to leave behind.  I read an article this morning quoting Warren Buffett that said if he invested $10,000 in an index fund when he bought his first stock in 1942, that 10,000 would be $51 million today.  Maybe your stock choser works, mine is broken.  But.. I know how to look at real estate differently and secure the financial future for my kids, myself, and the clients I am blessed to serve.. just like my new 58 year old nurse 😉

If you want to learn more about how to create stability for yourself or options for your clients, join us at our monthly Building an Investment Empire every second Tuesday of the month.  Not only was the room was busting at the seems this past week with want to be investors; several Realtors joined us for the 3rd and 4th time as they bring all of their first time homebuyers to get excited about the power of real estate!

Twenty New Renovation Opportunities

When demand comes back, it will be harder to get “a deal”.  Not that deals are happening, but I’m not seeing homes on busy streets next door to a grocery store go for $50,000 over asking either.  Help your clients create the home of their dreams with one of these lovely redos …

4520 W Alaska Pl 80219

1235 S Vrain St 80219

2235 S Hazel Ct 80219

1024 W 8th Ave 80204

4730 W Ada Pl 80219

1857 S Winona Ct 80219

8400 Harrison Way 80229

18965 Kelly Pl 80249

2280 Mable Ave 80229

5102 W Custer Pl 80219

3034 Meade St 80211

2850 Ivy St 80207

655 Quitman St 80204

401 S Osceola St 80219

3555 W 54th Ave 80221

2241 S Galapago St 80223

2241 S Galapago St 80223

2326 Humboldt St 80205

2710 S Gilpin St 80210

4449 Raritan St 80211

 

 

Nicole Rueth has been passionately advising clients on their wealth building and home financing strategies for over 17 years. Her path has been non-conventional and it is a benefit to her clients.  www.TheRuethTeam.Com.
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