So I’m at Cannon Mine Coffee, trying a new drink today. I ordered a Macchiato. Have you ever had one of these? The young lady ringing me out took the time to twice point out there was no syrup in this drink. It’s just espresso shots and steamed milk, and it only comes in a small. This is the start of an interesting coffee shop conversation about real estate if you can believe it.
What Do You Do?
“Why,” I reply, “I’m a Realtor. I help people with the American Dream.” This is what I usually say. Goofy, but sometimes, like today, a conversation starter.
There are two people working side by side in the cramped space behind the counter. A young woman taking orders and a guy who looks somewhere in his early 40’s making coffee drinks. He’s the Barista. And it’s kind of funny, because he is saying how he bought a decade ago, got a great deal, bought before the market went up. And she is saying, she couldn’t possibly buy now, with the uncertainty and higher interest rates.
But, upon reflection, I find this to be kind of funny, because the Barista was basically saying, “I bought when no one else was buying. There was fear and uncertainty in the market.”
There Is Fear And Uncertainty In The Housing Market
Honestly, there is some uncertainty and fear in today’s housing market. Interest rates have been pushed sky high relative to just twelve months ago. CNN/the national news talks about home sales declining over the past nine months. But declining home sales numbers don’t necessarily mean bad news. More on that in a moment.
The Barista and the register clerk were side by side. But worlds apart on home ownership. And so I raced home to share these thoughts in a post today. Because, especially in the greater Boulder market, right now is a fantastic moment to buy a home. Moments like this don’t come around all the time. So when they do, you want to take advantage of the housing market conditions and jump!
Cyclical Real Estate Markets
You’ll hear that term a lot, that real estate is cyclical. For instance, The Front Range market heats up every Spring through Summer while listing inventories decline in the Fall and sales fall off. That’s just the cycle.
Bigger picture, another cycle is that ten years ago, our market was slower, there was uncertainty. Those that bought into the market, like the Barista from Cannon Mine Coffee did really well the last ten years. But first, it meant buying when everyone else was on the sidelines. And home mortgage rates were significantly higher then as well.
So how is now a good time to buy a home? Well, the higher home mortgage rates have pushed out a lot of potential buyers. And the Topsy turfy stock market has wealthier buyers unwilling to cash out investments for a down payment. So sales are slowing.
And Realtors are having these conversations in coffee shops around town. People are asking about whether or not now is the right time to buy a home.
I think now is a great time to buy a home.
Two Great Reasons To Buy A Home Today
Interest rates. As I mentioned to they young lady taking my order, rates are really down right this moment. Now, relative to a year ago, yes, unfortunately, rates are higher.
But compared with thirty days ago? Home mortgage interest rates fell significantly about a week prior. This is a good opportunity to strike while home loans rates are soft.
Second, inventory of available homes. When markets get a little fear, housing inventories can grow. Well, with more places on the market, we are seeing far fewer multiple offer bidding wars. You might even get your house (gasp) for less than full price with the right bid and terms.
Short term, this is the ideal moment. Low rates, better inventory, less competition! That Barista took advantage of similar market conditions to get a great deal in Ridglea Heights put by Baseline Reservoir. And for the next generation of young people out there, don’t wait two years. Now is the time to buy!
Don’t Be The Other Home Buyer
Seems a good moment to add one other bit about the other home buyer you don’t want to be. I’ve been selling homes since 1995, and ever since I got my start, I’ve met plenty of would be home owners who say the same thing. “I’m waiting a few years for home prices to come down.”
Well, that’s a myth in this marketplace. Home values have steadily climbed around Boulder since the late Eighties. Those that have waited at various moments, have watched the market price them out of homes. Sure, there might be some softening and opportunities around town this winter. There usually are November to January! But, there is nothing to indicate the sky is is falling.
So, I wouldn’t be that home buyer that wants to wait two years for some mythical improvement in the housing market. If you really want to buy a home, this is the market you dream of.
Bob Gordon Realtor Blogger Video
I’ve been blogging since about the same time the Cannon Mine coffee Barista bought his home. And lately I’ve taken up making videos about real estate. Here’s one from my good friend Brian Crowder with Change Mortgage. He and I are having a conversation about the Two One Buy Down.
Shameless plug: the buy down is a great way to get an even lower home mortgage payment to start, to lessen the impact the first couple of years of higher rates. And I think you’ll like the video. I shot it on a DSLR camera with R0DE audio, doing all the editing myself.
I’m never too busy for your referrals and look forward to being a resource to you in buying a home or selling your Boulder real estate property.
Guns and Roses
So, as coffee shop conversations are apt to do, as my macchiato is finished (darn good drink by the way), the conversation is drifting and the Barista is telling another customer about his home purchase. He says there was an older couple living there with a surprising collection of Guns and Roses posters.
He asked about the collection at the closing table and learned the Sellers son had been in Guns and Roses all his life and they had quite the collection and some good stories of their own. You gotta love where a coffee shop conversation can take you!