Federal Reserve Rate Cut Doesn’t Really Impact Boulder Home Buyers
Does this impact your home buying? In some markets, yes. But at this moment I don’t think so. First, the home mortgage interest rates are already priced in for this change. When The Fed (Federal Reserve) announces a policy change, the market place usually reacts immediately. Simply on the news.
Then when the change takes place, there is no additional change. The other thing worth mentioning, interest rates should be higher this Year. But they are not. The tariff policy of the Trump administration is impacting where investors have their funds. Though the US stock market is up, many investors have concerns about the trade war and have funds in the bond market for protection.
This in turn is causing home mortgage rates to currently be surprisingly low.
Nationally Recognized Stability: Boulder Housing Market
Front page news, read all about it. A top shelf research firm believes Boulder homes have a very low probability of experiencing losses in the ten years following a purchase. This is great news for Boulder home buying clients.
Boulder Growth And Stability
The Boulder housing market just plateaued following an amazing seven year run in a strong Sellers market. Those last half dozen years saw strong growth. There were years my clients were making upwards of fifteen (15) percent in equity gains. That exuberant growth is slowing now. And its being replaced by stability.
Smart Asset sees Boulder as a strong candidate for financial safety. A housing market where the price you pay for your home is apt to be safe for the following decade. That’s really good news.
According to the study, since 1994 the market has appreciated 268% through the end of 2018. That’s pretty darn good, especially when you consider the Great Recession slowed things down in 2008-10. Also making the list: Fort Collins.
That market is much more affordable and has also seen really strong growth in the past 25 years (245% since ’94). Finally rounding out the top ten is Denver metro area.
Denver home owners should take note however. The study saw that about one in six homes in the Denver/Aurora/Lakewood area is apt to see up to a five (5) percent adjustment in values over the next decade. Still considered very good, very safe, but not quite as ideal as Boulder.
What this means, imho, is if you are buying in Denver, I would give a lot of consideration to your location. Now is the time to think twice about being on a busy intersection or waiting for that home backing to open space rather than the affordable one backing to an office park.
National New Home Sales Jump
New home sales increased in June – up 7%. This is a good indicator of confidence in the housing market. Overall, new construction accounts for about 10% of the entire US housing market. New construction sales drive a large industry – think new blinds, interior painting, custom shelving (I want my California Closet!) and so much more.
Boulder House Hacking
Here’s an idea. Rather than seek out a small place just within your ideal budget, why not seek a multi-family home. Either a house with a basement that offers separate living space or even a duplex. A duplex has two side by side living units, all together in one piece of property.
Then, live in one part of your new home and hack the other side to be a rental property. It might be a Air-B-N-B or a long term rental. This way, you get into a nice home for yourself and have roommates paying your mortgage for you! An all around winning strategy. Read more about house hacking.