Ned Stark Warns Winter Is Coming
“Winter is coming” booms Sean Bean’s Ned Stark repeatedly in Game of Thrones. At least, until an unruly Lannister has his head lopped off. Should I have warned of a spoiler alert? Perhaps. But then again, I think I have warned you that regardless of who wins the presidential elections, home mortgage interest rates are bound to change.
It is noteworthy that Trump won the election and within days interest rates spiked a 1/2 point. And locally, here in Boulder Colorado we moved from one of the longest, warmest Fall seasons anyone can recall starkly into winter. It is snowing ferociously today, though not sticking to roads. (did you get that pun?)
Winter has arrived. And with it, not merely a change in temperature, but a new day for home mortgage interest rates. These higher rates run the risk of cooling an otherwise red hot housing market. Inventory remains incredibly tight in Boulder and its suburbs.
But, for the moment, business remains busy in town. I continue to see very strong offers and multiple offers on my listings. My buyer clients, especially in price ranges under $600,000 are still running into fierce competition. It is as if you need to promise your first born child to get a house these days.
Stock Market Rewards Trump
Love him or leave him, the US stock market seems to like Trump. Money is fast moving away from equities and into opportunity. The DOW is up (at least, as I write this). This is no Brexit where markets plummeted on uncertainty. Perhaps cooperation will even return to Congress and the executive branch. Provided there are no big surprises in employment, home buyers should prepare for an increase of a 1/4 point in rates in December.
As rates increase, Boulder home sellers want to keep in mind this could reduce the enthusiasm for your house! Already, there are indications of a nationally slowing housing marketplace. The number of days to contract and closing is up everywhere. This is a reflection of home buyers being more selective, more patient.
Higher interest rates and more methodical buyers = “Winter is coming” announcements. Now, I’m not talking Game of Thrones winter with white walkers and big walls. I’m merely saying, like any winter, things slow down before the next Spring. Especially for communities east of I-25, sellers will be wise to make certain their homes are in show home perfect condition and priced appropiately when coming to the market.
Inventory Remains Deciding Factor
Inventory of available homes for sale as I write this remains very restricted. The moment more houses become available, on a regular basis, well, back to the GOT analogy – that will be the moment to send out the white ravens. Until then, Boulder appears to be continuing in the throes of a sellers market, albeit one a touch cooler in some of the surrounding areas.
My 30 Second Elevator Pitch
Hey, I do blog a good deal, but can I take a moment to tell you why I’m the Realtor for you? I’m passionate about my career. I treat my clients like each is the most important person in the world. I run crazy hours, because in this market, sometimes the difference between getting your dream home and not is having an agent writing offers at 10 pm on a Friday night. I’m up on technology, texting is great. And I know the community. I keep abreast of development, zoning changes, building code. When we work together, I’m going to keep you very informed from start to finish. Bottom line: I’m going to work my tail off to help you get your dream home purchased or your old house sold at top dollar. Give me a shout and let’s get started!