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Jan Parrish, Realtor

"Helping Create Your Life's Story!"

Turbo Open House – Why I Recommend Jan Parrish

Shining the Light on Fabulous Chandeliers

What is the first thing you want people to notice when they walk into your home? Consider making a statement with a chandelier. Chandeliers have come a long way from the old-school brass and tear drop crystals. There is a chandelier to liven any room of your home in an assortment of decorating styles. You can purchase them at every price point from Cartier, JCPenny, Lowes or Ikea.

A unique chandelier will set off your living space like jewels on an evening gown. Read more…

Lack of Inventory is the Whole Story!

“How’s the real estate market?” Because of what I do for a living I’m asked this at least once a day. I love the question because it lets me talk about my favorite subject: our always-changing, ever-fascinating real estate market!

There are lots of different factors and metrics I can discuss when assessing our market, such as:

  • Rising home prices
  • Overwhelming consumer demand for homes
  • A lack of inventory for sale
  • New construction not keeping up with demand for housing
  • Skyrocketing rents
  • The effect gas and oil prices have on housing
  • How low interest rates are continuing to make housing relatively affordable
  • What parts of town have appreciated more than others over time
  • And on and on..

But the thing I like to do most when explaining our real estate market is to show folks the chart below. Please take a look at it and begin to absorb what it’s telling us. Everything you need to know about our current real estate market is contained in this chart.

Jan Market Snapshot (2)

What you see are two lines, a blue one and a yellow one. The yellow line shows the inventory (i.e., the number) of homes for sale in metro Denver every month from January 2007 to December 2015. The blue line shows the number of homes sold every month. You can see that the inventory peaked in July 2007 at 30,827 homes for sale. That was at the depth of our economic and housing downturn, when fear ruled our market, banks were being shut down, our local and national economies were in shambles, unemployment was rising, and consumer confidence plummeted. The result of course was that people didn’t want to buy homes; they were afraid of the future and didn’t want to take on any risk. On the seller side of the equation, many home owners were getting caught with rising monthly mortgage payments as their Option ARM mortgages adjusted upward, so suddenly they wanted to sell at the very worst time possible. The perfect storm.

It’s simple economics: if you have more supply than demand prices start to fall and that is exactly what they did from 2007 to 2009. Around 2010 and 2011 the market became roughly balanced with 18,000 to 20,000 homes on the market. But as you can see the market did not remain balanced for long because the supply continued to fall.
Which brings us to today’s market. In January 2016, there were 4,286 homes on the market, nearly an all-time low for a January since records have been kept! This lack of inventory defines our current housing market.

The past several years have seen an incredibly strong real estate market in metro Denver and this chart explains exactly why. The supply of homes has vanished placing an imbalance in our market. No three dimensional, super fancy, econometric model can do a better job of explaining the imbalance in our market than this simple chart.

It’s interesting to see that while the inventory line has dropped dramatically the past seven years, the blue number of sold properties has barely inched upward, even though our population continues to rise about 1.5 percent per year. This tells me that our demand for housing is going to stay very strong for the foreseeable future.
So, how do you use this information? It depends, of course, on who you are and what you’d like to do. Here’s a brief sample.

If you own a home and are thinking of moving: It’s an incredible seller’s market and you can expect to get top value for your home. You’ll need to consider the purchase of your next home though, and make sure you have planned the process correctly so you find the home of your dreams and make the transition from your current to future home seamless.

If you are renting: Rents continue to zoom upward to all-time highs so you might want to get out of the rental rat race and buy a home. Inventory is low so you’ll need to make sure you’re pre-qualified to buy a home and come across as a serious buyer, otherwise sellers won’t even consider your offer. But because inventory is still so low we expect prices to continue to move up for several years, at least until the inventory balances with the demand. So you can expect appreciation in your home purchase for the next several years.

If you’re considering buying rental property: There’s no better way to build wealth than owning rental properties for the long term. Home prices have risen, but so have rents, and interest rates remain at record lows. Smart investors don’t try to time the real estate market; it’s as difficult to do as timing the stock market. The vast majority of Americans who have built wealth as real estate investors have done it buying rental property and having their tenants pay it off for them over time. It’s not complicated and it works.

Of course, everyone’s situation is unique. If you want to talk about how best to take advantage of our real estate market and see what it can do for you please give me a call. I love talking about the real estate market!

Sellers -Get a FREE Comparative Market Analysis on Your Home!

We have been discussing the incredible strength in our housing market month after month, year after year in this newsletter. If you’re looking to sell your home this should be very welcome news! The inventory of homes on the market is at an all-time low and prices are up. Call me and I’ll be happy to run a complimentary Comparative Market Analysis on your home to let you know what it’s worth in today’s market. It’s great information and costs you nothing!

Investors-What a Great Time to Own Rental Property

For years our clients have been buying rental properties in metro Denver to build their long-term wealth. Our record low vacancy rate is a big driver of why rental property has performed so well. First, the lower the vacancy rate the higher the demand for the property. More demand means landlords can be more choosy selecting their tenants and also can charge higher rents. Rents have skyrocketed the past few years because the vacancy rates have remained so low.

One of the reasons vacancy rates are so low is that many people cannot qualify for a loan. I don’t expect this to change for the foreseeable future. We’ve had a huge shakeout in the lending industry and lending guidelines are much stricter than they were in the past. Until lending standards ease up I expect vacancy rates to remain low and keep my investor clients happy. If you’ve ever thought of investing in a condo or house as a rental property call me and I can show you what the numbers look like and what options you have.

Please feel free to call me with your real estate questions or concerns!  Jan 303.807.3289

Jan Market Snapshot (1)

 

5 Ways to Liven Up Your Living Room

Are you ready for a mini living room makeover? Looking for some tips that will bring your living room from forgotten to fabulous? Here are five ideas that can dramatically improve your living room.

  1. Move the furniture away from the walls: The tendency is to place your furniture against the walls, but giving it a little room to breathe will make the seating area seem cozier while also making the room seem more spacious.
  2. Mix old and new pieces: Using the same furniture set to furnish an entire room can make it seem a bit sterile. Try mixing and matching different pieces and styles to give your living room a more eclectic feel.
  3. Keep everything low: Arranging photos and artwork lower on walls will make a room appear larger, and can also draw more attention to the pieces themselves.
  4. Place a bookshelf behind the sofa: It doesn’t have to be your entire personal library. Mix and match books with knick-knacks and other items to add some depth and texture to the space behind your sofa.
  5. Try a smaller coffee table: Your current coffee table is probably larger than it needs to be, and it may be dominating the room. Try downsizing to a table that can still hold magazines, a centerpiece, and a few drinks, but will also give you a bit more room to move around your furniture.

Denver’s Seller’s Market Gains Strength

Welcome to the Real Estate Market Midyear Report! Here’s What We’re Seeing:

Average Home Price: The average price of a home in metro Denver leapt another 12 percent in the past 12 months. I believe 2015 will continue to play out very strong and here’s why: The number one driver of home price change is the amount of inventory on the market. Our market inventory continues to drop, down another 17 percent from this time last year for single-family homes (down 19 percent for condos and townhomes!). Until inventory comes back on the market there will continue to be tremendous upward pressure on prices as demand outstrips supply. Where will the new supply of home inventory come from? It won’t be bank-owned properties and shortsales. The metro Denver economy is strong and unemployment is low so there will be very few distressed properties on the market for the foreseeable future. The additional supply will eventually come from home owners who finally realize what a great market it is to sell and decide to put their home up for sale. When this will happen is anyone’s guess. We’ve seen very little evidence of home owners making this realization so far, as evidenced by the continued lack of inventory on the market. Sooner or later though inventory will begin to appear. That’s your sign of a changing market. But this might take several more years which is why prices will continue to rise strongly.

Number of Homes Sold: Because there of homes sold is actually going DOWN year over year, not up. There were 9 percent fewer homes sold in June, ’15 than June ’14 simply because there is no inventory to sell. It’s the very definition of a seller’s market.

The Condo/Townhome Market: Incredibly enough the condo market is doing even better than single-family homes! Prices are up 16 percent in the past year and inventory is down 19 percent creating a blistering hot market for attached homes. Just like for the single-family home market I don’t see any evidence this will change any time soon. Until more condo inventory comes on the market prices will continue to rise. Expect strong price increases for the next several years.

Denver Mid-Year Real Estate Snap Shot
Denver Mid-Year Real Estate Snap Shot

Denver is still a great place to invest in real estate. The fix and flip market is strong for those who can find underpriced homes to buy and repair. They’re out there but it takes tools, patience, and work to find them. Once you get one fixed up, selling is the easy part because of the lack of competing inventory. The buy and hold market will continue to be extremely profitable for long-term investors. Interest rates and vacancy rates are still near record lows and rents continue to rise – a record 10.8 percent per year the past three years. It’s not difficult to buy a rental property in today’s environment and put it on the path to be paid off in 12-15 years. Just think how your life would change if you owned a couple of rental properties free and clear! For building long-term wealth it’s tough to compete with rental property ownership. That’s the one thing that will never change.

To learn more about what your home is worth, please contact me for a complementary confidential consultation! 303-807-3289

Why Denvers’ Real Estate Market is So Hot!

“How’s the real estate market?” Because of what I do for a living I’m asked this at least once a day. I love the question because it lets me talk about my favorite subject: our always-changing, ever-fascinating real estate market! There are lots of different factors and metrics I can discuss when assessing our market, such as:
1. Rising home prices
2. Overwhelming consumer demand for homes
3. A lack of inventory for sale
4. New construction not keeping up with demand for housing
5. Rental prices skyrocketing
6. The effect gas and oil prices have on housing
7. How low interest rates are continuing to make housing relatively affordable
8. What parts of town have appreciated more than others over time
9. And on and on…
But the thing I like to do most when explaining our real estate market is to show folks the chart below. A picture is worth a thousand words. Please take a look at it and begin to absorb what it’s telling us. Everything you need to know about our current real estate market is contained in this chart.

What you see are two lines, a blue one and a red one. The blue line shows the inventory (i.e., the number) of homes for sale in metro Denver every month from January 2007 to November 2014. The red line shows the number of homes sold every month. You can see that the inventory peaked in July 2007 at 30,827 homes for sale. That was at the depth of our economic and housing downturn, when fear ruled our market, banks were being shut down, our local and national economies were in shambles, unemployment was rising, and consumer confidence plummeted. The result of course was that people didn’t want to buy homes; they were afraid of the future and didn’t want to take on any risk. On the seller side of the equation, many home owners were getting caught with rising monthly mortgage payments as their Option ARM mortgages adjusted upward, so suddenly they wanted to sell, at the very worst time possible. The perfect storm.

It’s simple economics: if you have more supply than demand prices start to fall and that is exactly what they did from 2007 to 2009. Around 2010 and 2011 the market became roughly balanced, with 18,000 to 20,000 homes on the market. But as you can see the market did not remain balanced for long because the supply continued to fall.

Which brings us to today’s market. In January 2015, there were 5,152 homes on the market, 26 percent less than January 2014 and an all-time low for a January since records have been kept! This lack of inventory defines our current housing market.

The past several years have seen an incredibly strong real estate market in metro Denver and this chart explains exactly why. The supply of homes has vanished placing an imbalance in our market. No three dimensional, super fancy, econometrics model can do a better job of explaining the imbalance in our market than this simple chart.

It’s interesting to see that while the blue inventory line has dropped dramatically the past seven years, the red number of sold properties has barely inched upward, even though our population continues to rise about 1.5 percent per year. This tells me that our demand for housing is going to stay very strong for the foreseeable future.

So, how do you use this information? It depends, of course, on who you are and what you’d like to do. Here’s a brief sample.

If you own a home and are thinking of moving: It’s an incredible seller’s market and you can expect to get top value for your home. You’ll need to consider the purchase of your next home though, and make sure you have planned the process correctly so you find the home of your dreams and make the transition from your current to future home seamless.

If you are renting: Rents continue to zoom upward to all-time highs so you might want to get out of the rental rat race and buy a home. Inventory is low so you’ll need to make sure you’re prequalified to buy a home and come across as a serious buyer, otherwise sellers won’t even consider your offer. But because inventory is still so low we expect prices to continue to move up for several years, at least until the inventory balances with the demand. So you can expect appreciation in your home purchase for the next several years.

If you’re considering buying rental property: There’s no better way to build wealth than owning rental properties for the long term. Home prices have risen, but so have rents, and interest rates remain at record lows. Smart investors don’t try to time the real estate market; it’s as difficult to do as timing the stock or bond market. The vast majority of Americans who have built wealth as real estate investors have done it buying rental property and having their tenants pay it off for them over time. It’s not complicated and it works.

Of course, everyone’s situation is unique. If you want to talk about how best to take advantage of our real estate market and see what it can do for you please give me a call. I love talking about the real estate market!

Big Updates in the Lending World

Ever since the mortgage meltdown of 2008, it seems like it has been impossible for buyers to qualify for new loans. Following the 2008 crisis and well in to 2011 it looked like every lender required 20 percent down, excellent credit, and outstanding income in order to qualify for a new loan. Most buyers felt they would never be able to meet these requirements. However, the most recent three years have started to bring some flexibility back to the mortgage market. More specifically, we’ve seen some outstanding developments over the last six months that are really exciting for buyers:
• FHA reduced their annual mortgage insurance fee by 0.5 percent. This equates to a savings of $80 per month on a $200,000 home.
• The minimum down payment for conventional loans has been reduced to only 3 percent. This means you can purchase a $200,000 home with as little as a $6,000 investment.
• New down payment assistance programs provide either a grant or a repayable second lien for the majority of the down payment, requiring the borrower to contribute as little as $1,000.
• Investment property loans are available with as little as 15 percent down, allowing many smaller property investors to get back into the market.

If you’re considering buying a property and haven’t been prequalified yet it’s worth your time to speak with a loan professional and see what they can do for you. Ready to get started? I can introduce you to a fabulous lender.

I’m looking forward to “Helping You Create Your Life Story!”

Don’t Forget to Fall Back!

Featured image

November. It’s that time of the year again – the changing of the clocks. Relish the extra hour of sleep or gift that hour to yourself in quiet solitude with a good book and cup of coffee.

Today is a perfect fall day. There is a bit of haziness in the air with just a touch of chill and leaves are dancing across my lawn. My window is open a few inches so I can enjoy the crisp, fall air and the sound of leaves rustling the branches, restless to be free.

So far we haven’t had any measurable snow here in the Denver Metro area, though it’s in the forecast on Monday. Are you ready for winter? It’s creeping up on us awfully fast.

When I set my clocks back, I typically change the batteries on those hard to reach clocks. The clock over my mantle is quite a production to change. It requires a ladder, some balancing and a good aim. Because it’s such a big production, I typically change the battery at the same time.

This is also a good time to check the batteries in your fire alarms and carbon monoxide detectors. You do have one don’t you? Check the expiration date on your carbon monoxide detector, they are ineffective after 6-7 years.

Please call me if I can help you with any of your real estate concerns. Quite a bit of my business comes from referrals. I love working with your fabulous friends and family members and I have a special gift for each of my referring clients when their referral closes.

Remember, November only comes around once a year. Savor it.

7624 S. Addison Way, Aurora 80016

Top 5 Home Staging Secrets

M1125908-L-01With the right price and plenty of patience any home will sell. But if you invest a little money and elbow grease, you’ll get a higher price quicker. And who wouldn’t want to do that? If you’re thinking of selling, you really need to read my top 5 list.
1. Clean, Clean, Clean every nook and cranny until it gleams. You want your house to look ‘clean as new.’ You may even want to hire a cleaning service to clean for you. Your house will sell ten times faster, get more offers, and secure a higher price.
2. Air Fresheners. Use the same scent throughout the house. It should smell clean, not covered up, so avoid peach or strawberry fragrances. Use a scent that resembles a cleaner such as lemon, citrus, or ‘crisp linen.’ Place one in each bathroom and the main areas of the house.
3. Remove Clutter think ‘sparse’ or ‘sterile’ and you’ll be on the right track. Clutter sends the unconscious message that you don’t have enough storage. Remove excess furniture and knickknacks. Remove packed boxes from the living areas and neatly stack them in the garage or basement. Better yet, hire a moving company to store all your boxes until you’re ready to move.
4. Fresh Paint on the walls and baseboards. Use a warm and inviting color such as light brown or cream. Paint the front door with a fresh coat of high gloss paint. Paint the outside of the house, touch up any chipped paint and remove cobwebs.
5. Depersonalize the space. Take down all trophies, family photos and collections. You want to display a ‘blank slate’ on which buyers can write the story of their life.
These are my top 5 staging secrets. To hear more, contact me for a complementary consultation. Jan Parrish – 303-807-3289

 

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