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If you’re thinking of making a move, one of the biggest questions you have right now is probably: what’s happening with home prices? Despite what you may be hearing in the news, nationally, home prices aren’t falling. It’s just that price growth is beginning to normalize. Here’s the context you need to really understand that trend.
In the housing market, there are predictable ebbs and flows that happen each year. It’s called seasonality. Spring is the peak homebuying season when the market is most active. That activity is typically still strong in the summer but begins to wane as the cooler months approach. Home prices follow along with seasonality because prices appreciate most when something is in high demand.
That’s why there’s a reliable long-term home price trend. The graph below uses data from Case-Shiller to show typical monthly home price movement from 1973 through 2022 (not adjusted, so you can see the seasonality):
As the data shows, at the beginning of the year, home prices grow, but not as much as they do in the spring and summer markets. That’s because the market is less active in January and February since fewer people move in the cooler months. As the market transitions into the peak homebuying season in the spring, activity ramps up, and home prices go up a lot more in response. Then, as fall and winter approach, activity eases again. Price growth slows, but still typically appreciates.
After several unusual ‘unicorn’ years, today’s higher mortgage rates helped usher in the first signs of the return of seasonality. As Selma Hepp, Chief Economist at CoreLogic, explains:
“High mortgage rates have slowed additional price surges, with monthly increases returning to regular seasonal averages. In other words, home prices are still growing but are in line with historic seasonal expectations.”
In the coming months, you’re going to see the media talk more about home prices. In their coverage, you’ll likely see industry terms like these:
Don’t let the terminology confuse you or let any misleading headlines cause any unnecessary fear. The rapid pace of home price growth the market saw in recent years was unsustainable. It had to slow down at some point and that’s what we’re starting to see – deceleration of appreciation, not depreciation.
Remember, it’s normal to see home price growth slow down as the year goes on. And that definitely doesn’t mean home prices are falling. They’re just rising at a more moderate pace.
While the headlines are generating fear and confusion on what’s happening with home prices, the truth is simple. Home price appreciation is returning to normal seasonality. If you have questions about what’s happening with prices in your local area, connect with a real estate professional.
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Keeping Current Matters
The Freddie Mac Multifamily Apartment Investment Market Index (AIMI) rose by 5.1% in the second quarter. This was the second consecutive quarterly increase of AIMI nationwide and in all 25 markets.
On a year-over-year basis, the index saw a decrease nationwide and in 23 markets. However, the year-over-year drop of -2.6% was significantly smaller than that of the prior quarter.
“This quarter’s results show that AIMI is rebounding,” said Sara Hoffmann, director of multifamily research at Freddie Mac. “The index experienced a sharp annual decline in each of the prior four quarters, but a pullback in property prices and moderating mortgage rates are helping AIMI regain its footing. Over the past quarter, the index increased due to the confluence of net operating income (NOI) growth, property price depreciation, and lower mortgage rates relative to recent trends.”
The AIMI combines multifamily rental income growth, property price growth, and mortgage rates to provide a single index measuring market investment conditions. An increase from one quarter to the next implies an increasingly favorable environment for investment opportunities, while a decline suggests attractive investment opportunities are becoming more difficult to find compared with the prior quarter.
According to Freddie Mac, the quarter’s national growth rate is the highest since the third quarter of 2019. Quarter over quarter, NOI was up in the nation and most markets, with no markets deeply negative. Phoenix was the lowest performer at -0.8%. Property prices also dropped in the nation and all but two markets—Miami and Nashville, Tennessee—which saw minimal growth of 0.1% and 0.5%, respectively. In addition, mortgage rates dropped by 20 basis points, the largest quarterly bump seen since the first quarter of 2020.
Year over year, NOI growth was mixed. It saw a national growth rate of 1.8% but a decline in nine markets. Property prices decreased for all markets, contracting nationally by 10.1%, the second annual decline since the second quarter of 2010. In addition, mortgage rates rose by 131 basis points, which is high for historical standards but lower than the prior quarter’s 246-basis-point annual increase.
The number is remarkable: Today more than 80% of the U.S. population shops online, or about 263 million Americans.
It’s a number very few multifamily owners and operators will dispute, especially when 63% of renters say a virtual walkthrough is all that’s needed for a rental decision. An in-person visit? Who has time for that?
How you position and market your properties on the mobile, tablet, and laptop have never been more important. Renters expect a one-stop, mobile-friendly online experience. It’s up to your website to deliver the goods with as little friction as possible.
Joe Settimi has some ideas along those lines.
The senior vice president of renters solutions at Assurant, a Fortune 500 company, knows what works at lease sign-up time. Take two early decisions lease-minded consumers face—renters insurance and the security deposit.
Seamless Insurance
“Consumers expect a seamless experience from move-in to move-out. It can’t involve signing and dropping off physical copies – or even emails with attachments going back and forth for that matter,” explains the multifamily industry professional. “Frankly, property management companies don’t have time for that, either.”
To illustrate, Settimi cites renters insurance. “The majority of our clients now require residents have a policy,” he says. Even if it isn’t required, many third-party experts urge renters to protect themselves with one.
The smart play is to bundle low-cost personal property and liability coverage with the lease. Renters appreciate the easy convenience, demonstrated by the fact nearly 3 out of 4 renters are more likely to purchase a policy that ties it all together.
“Think about game players, smartphones, tablets, laptops, and TVs,” Settimi asks. “Many renters have a big investment to protect.” Bundling the insurance also represents advantages for the property manager, which may include tracking resident compliance and ancillary income. “Our Cover360 insurance solution has really taken off in the last couple of years. It checks all boxes for the renter as well as the leasing team.”
Security Deposit Alternatives
Perhaps the biggest gateway to a frictionless move-in experience is the security deposit. Lowering the cost of move-in is obviously in a renter’s self-interest. Multiplying the number of leasing prospects doesn’t hurt the owner/operator, either. That one-two benefit helps explain the popularity of deposit alternatives, like:
Interestingly, the surety bond—a way to safeguard the landlord’s financial risk with fewer out-of-pocket renter dollars—earns a big thumbs-up (71%) in a nationwide poll of renters.
Assurant’s FlexDeposit is an example of that security deposit alternative.
Settimi says the pace of online innovation will continue to reshape the industry. Already on its way: 24/7 resident tech support as a powerful new leasing amenity. “It’s called Personal TechPro and it leverages our long history in protecting connected devices. It’s another way for property management companies to differentiate themselves with a white-glove service offered exclusively to community residents.”
As you weigh resident onboarding options, Settimi advises owner/operators to keep in mind the long track record of your technology partner. “Ask yourself, ‘Who is going to be around five years from now?’”
Colorado, a state known for its diverse landscapes and growing cities, has been at the forefront of adapting its laws to accommodate the evolving needs of landlords and tenants. As of August 2023, significant changes have been made to the landlord-tenant laws in the state, aimed at fostering fair and transparent relationships between property owners and renters.
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Portable Screening Report:
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Income and Credit Applications:
A Landlord may not require an applicant to have an annual income that exceeds 200% of the annual rent. This is a change from previous laws requiring applicants to have an annual income that equals or exceeds 300% of annual rent.
Landlords working under income restricted housing can inquire about an applicant’s credit.
Violation of any of these new laws requires Landlord to pay aggrieved party $50, unless the violation is not cured. If it is not cured, there is additional $2,500 penalty to be paid to the aggrieved party + economic damages, court costs and attorney fees.
This would be considered a violation of Fair Housing Laws.
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Pet Ownership:
Limited Pet Fees:
New law limits pet security deposit to $300, which MUST BE refundable.
Pet rent is limited to the greater of $35 per month or 1.5% of the monthly rent.
Not changed BUT these fees cannot be required if an animal meets the HUD guidelines for an emotional support animal or service animal
New Law Restricts Insurance Companies
Insurance cannot automatically deny a specific breed request repairs in writing, and landlords must respond within a reasonable timeframe.
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Eviction Procedures:
Eviction processes are now more tenant-friendly. Before initiating eviction proceedings, landlords must provide tenants with written notice outlining the issue and offering the opportunity to remedy it within 10 days.
Additionally, tenants facing eviction now have the right to a legal defense if they can show that the landlord failed to maintain the property properly.
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Prohibited Lease Provisions:
Waiving the right to a jury trial.
Restricts ability to bring class action.
Waiving implied covenant of good faith and fair dealings.
Waiving implied covenant of quiet enjoyment.
Require tenants to pay the landlord’s attorney fees (one-way shifting clause).
All prevailing party clauses must state “following a determination by the court that the party prevailed and that the fee is reasonable”.
Eviction penalties.
Provision that charges a penalty to a tenant if Tenant does not give their notice for non-renewal.
You can still require notice, but you cannot charge a fee.
You can charge for ACTUAL losses from Tenant’s failure to provide notice (e.g. if they didn’t move out for 15 days, you could charge half month’s rent for the losses).
Characterizing certain charges as “rent” that are in fact not rent (utilities), in which non-payment of which could lead to eviction.
You are NO LONGER able to evict tenants who are not paying utilities, because they are not considered “rent”.
Unpaid utilities must be taken out of security deposit at the end of the lease.
Excessive mark-ups that would make the tenant pay a mark-up above what a third party service provider would charge the Landlord. Excessive is defined as more than 2% of the billed amount or a fee that doesn’t exceed $10 per month (e.g. stop check fee).
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Radon Disclosure/Mitigation:
Includes brochure
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Mandatory Mediation Before Filing for Eviction:
Does not apply if:
Residential Tenant did not disclose or declined to disclose in writing to the landlord that the residential tenant receives cash assistance,
The landlord is a 501(c)(3) nonprofit organization that offers their tenants opportunities for mediation,
Or the Landlord has 5 or fewer single-family rental homes and no more than 5 total rental units.
Landlords should use the Office of Dispute Resolution to schedule mediation (can be scheduled within 15 days).
Landlord pays for mediation, it is free for the Tenant.
These changes to Colorado’s landlord-tenant laws reflect the state’s commitment to balancing the rights and responsibilities of both parties. For more detailed information or specific legal advice, it’s advisable to consult with an attorney well-versed in Colorado’s housing laws. By staying informed and complying with these regulations, both landlords and tenants can foster healthier, more transparent rental relationships.
Denver & Boulder, CO Region Winter Preparedness Guide
Make sure that this is done before the first frost as water in the system can damage a sprinkler system. Water left in sprinkler lines freezes and can crack and burst, potentially ruining the entire system.
The right kind of professional Colorado design-build construction company ensures that ALL jobs done both inside and outside your home are done efficiently, effectively, and with total quality control procedures and protocols.
When winterizing a sprinkler system, first, the water source is turned off then a professional will use an industrial air compressor to blow out your system and ensure all of the water is eliminated.
Please note that it is important to hire a professional to do this as they will know the proper psi as to not damage your sprinklers.
Just like your sprinkler system, standing water in your swamp cooler or evaporative cooler can freeze or rust, potentially causing irreparable damage. To keep your cooler running efficiently next year, it is vital to take steps to protect it from the impending cold weather. You can winterize your swamp cooler yourself in a few easy steps or let us help you find a professional.
Protecting your air conditioning unit from the elements is also important as the ice and snow come rolling in. The steps to take for winterization are going to depend on the type of unit you have and the manufacturer’s recommendation. It is always a good idea to consult a professional before performing work on HVAC systems.
You have put a lot of work into your Colorado outdoor living spaces; make sure they stay beautiful by packing in non-durable items for the winter. Store or cover your grill, fire pit, umbrella, outdoor furniture, and cushions. This will ensure that they don’t collect moisture and rust or mildew so that they are ready to use for spring.
A great thing to do any time of year is checking on the weather-stripping on doors, windows, and garage doors. Sealing air leaks in an old or drafty home can save more than 20% on heating and cooling bills.
Around windows, check for gaps and cracks. These can be filled in with caulk purchased at any hardware store. According to the Department of Energy, around doors and garage doors, it is best to choose weather stripping that can withstand “friction, weather, temperature changes, and wear and tear. Weather stripping materials can be found at your local hardware store or we can help you find a trusted professional to install it for you.
After the trees are bare your gutters are sure to be full of debris, preventing them from doing their job properly. Uncleaned gutters can cause a number of problems including roof leaks, soffit damage, structural decay, and water damage to exterior walls. Directing water away from your home is a vital part of maintenance.
It is a good idea to hire a professional to clean your gutters at least once annually so that they can detect any other problems with your gutter system. When cleaning your own gutter system, be sure to practice ladder safety to prevent accidents.
One of the most common issues in radiant heating is air in the heat distribution systems. In order to avoid this becoming a larger problem, it is important to have your radiators bled at the beginning of each heating season.
Servicing your forced air system early in the season can also save money and inconvenience. Having a professional look over the furnace and system, tune it up, and diagnose any potential issues will ensure that you stay warm and cozy throughout the winter.
Ice and hoses just don’t mix. Before the first frost disconnect your outside hoses and store them for the winter. Find the valves for all outside water sources and shut them off to avoid any potential issues. This goes for hoses, sinks, sprinklers, etc.
After completing these steps to protect your home from the cold, it is time to enjoy our beautiful fall and winter season.
Don’t forget, when the snow starts to melt, and spring is on its way, it is time to prepare your home for the warmer weather
If you’re planning to buy a home, one thing to consider is what experts project home prices will do in the future and how that might affect your investment. While you may have seen negative news over the past year about home prices, they’re doing far better than expected and are rising across the country. And data shows, experts forecast home prices will keep appreciating.
Pulsenomics polled over 100 economists, investment strategists, and housing market analysts in the latest quarterly Home Price Expectation Survey (HPES). The results show what the panelists project will happen with home prices over the next five years. Here are those expert forecasts saying home prices will go up every year through 2027 (see graph below):
f you’re someone who was worried home prices would fall because of stories you’ve read online, here’s the big takeaway. Even though home prices vary by local market, experts project prices will continue to rise across the country for years to come. And these numbers indicate the return to more normal home price appreciation.
And while the projected increase in 2024 isn’t as large as 2023, it’s important to recognize home price appreciation is cumulative. In other words, if these experts are correct, after your home’s value rises by 3.32% this year, it’ll appreciate by another 2.17% next year. This is a good example of why owning a home is a choice that wins big over time.
Once you buy a home, price appreciation raises your home’s value, and that grows your household wealth. To see how a typical home’s value could change in the next few years using the expert projections from the HPES, check out the graph below:
In this example, let’s say you bought a $400,000 home at the beginning of this year. If you factor in the forecast from the HPES, you could potentially accumulate more than $71,000 in household wealth over the next five years.
So, if you’re thinking about whether buying a home is a good choice, remember how it can be a powerful way to grow your wealth in the long run.
According to the experts, home prices are expected to grow over the next five years at a more normal pace. If you’re ready to become a homeowner, know that buying today can set you up for long-term success as home values (and your own net worth) grow. Connect with a local real estate agent to start the homebuying process today.
By: Keeping Current Matters
https://www.keepingcurrentmatters.com/2023/09/12/what-experts-project-for-home-prices-over-the-next-5-years/
If a backyard update (or complete overhaul) is on the agenda for this spring and summer, you are not alone. According to a Spring 2021 report by Thumbtack, backyard improvements are at the top of the list of projects that homeowners intend to take on in the coming months, and front yard landscaping isn’t the only landscaping that matters.
Landscaping, in particular, is a hot topic—Thumbtack reports that homeowners are planning to spend anywhere from $1,034 to $5,720 on landscaping and designing their backyards.
If you need some inspiration for your backyard before you start digging, building and rototilling, here are eight of our favorite backyard landscaping ideas.
You don’t need to live amongst wildlife and old-growth trees to feel at one with nature. By using a blend of natural elements and hardscapes, like grass with grass block pavers, you can transform a backyard that is all business into a place that feels truly serene (without losing the form and function).
Experts call this concept “biophilic design,” and it is one of this year’s key trends in landscaping, says Joe Raboine, director of residential hardscapes for Belgard.
If you are looking to connect with nature without leaving your property, integrating a little biophilic design into your landscaping plan is a sound choice.
You have a lot going on in your backyard—kids jumping on trampolines, dogs running around, gardening, weekend barbecues, maybe even Saturday morning yoga. While it is feasible (and maybe even easier) to establish one multipurpose space, you can also divide and conquer, suggests Pol Bishop, a U.K.-based gardening and landscaping expert for Fantastic Gardeners. A dog run on one side, a space for sun salutations in the corner, a kid zone in the center and a special section for your grill, smoker and outdoor wet bar. A few ways to create these defined spaces are by utilizing hedges, masonry edging, flower beds and fences.
Hanging out in your backyard doesn’t have to mean hanging out in the open air. If you could use a little extra interior space to go with your backyard revamp, consider incorporating an accessory dwelling unit into your landscape design.
These quaint units can serve as home offices, guest suites, game/media rooms, workout studios or even permanent dwelling spaces for family members. While building one from scratch is certainly an option, you can also go the prefab route and buy one that comes in kit form.
Topiary, the practice of creating ornamental shapes out of trees and shrubs, runs the gamut from elegant all the way to eccentric. And while basic shapes, like cones, globes and spirals, are fairly common (and perfectly nice for many backyard landscapes), the addition of topiary offers an opportunity to add something a little extra to your backyard—something that shows your personality and is unlikely to be replicated at the house across the street.
Ideas for distinctive topiaries include animal shapes, arches, fences and furniture (yes, you can create a topiary table or chair). You can also mix topiaries with hardscapes and planters, or even go all-out whimsical with a topiary of your favorite Disney character. Other fun ideas include creating a maze, laying the topiary out in a heart-shaped design or making your animals-topiaries life-sized.
It’s not very often you hear someone advise you to minimize your aspirations but, when it comes to backyard landscaping, this might be just what it takes to turn your vision into reality.
For instance, if you have aspirations of a full-scale outdoor kitchen, but you’re working within the means of a limited budget, instead of throwing in the towel because you can’t swing the full cost of a built-in grill and outdoor cabinetry, re-imagine the plan to better suit your financial resources. A portable wet bar equipped with storage and a small gas grill, for example, will still allow you to cook and entertain outdoors without breaking the bank. It doesn’t have to look drab, either—you can do just as much to beautify your space with budget-minded outdoor kitchen equipment as you can with the top-of-the-line options.
A raised bed isn’t the only appropriate place for your garden veggies. To change up the look of your landscape without sacrificing your summer bounty, try planting your tomatoes, bell peppers, summer squash, cucumbers and rosemary amongst your flower beds rather than away from them.
You can also try creating a border around your beds with your favorite varieties of lettuce or cabbage or, for those who prefer container gardening, you can place pots and other planters in random (albeit plant-friendly) spots throughout your yard.
Topiary, the practice of creating ornamental shapes out of trees and shrubs, runs the gamut from elegant all the way to eccentric. And while basic shapes, like cones, globes and spirals, are fairly common (and perfectly nice for many backyard landscapes), the addition of topiary offers an opportunity to add something a little extra to your backyard oasis—something that shows your personality and is unlikely to be replicated at the house across the street.
Ideas for distinctive topiaries include animal shapes, arches, fences and furniture (yes, you can create a topiary table or chair). You can also mix topiaries with hardscapes and planters, or even go all-out whimsical with a topiary of your favorite Disney character. Other fun ideas include creating a maze, laying the topiary out in a heart-shaped design or making your animals-topiaries life-sized.
A friendly community with gated streets*, The Enclave welcomes you to choose your homesite and build new from a stunning collection of luxury single-family home designs. This community is set on the award-winning Green Valley Ranch Golf Course and is surrounded by acres of open space, trails and recreational areas. Residents will enjoy the 2,400 sq. ft. beach-entry pool with sun deck, lap lane, ample poolside seating, and conveniently located restrooms in the adjacent ramada with an outdoor fireplace and two covered patios.
The collection of 145 luxury, single-family homes, sits along the award-winning 18-hole Green Valley Ranch Golf Club, home of the Colorado Open.
“You enter The Enclave driving through a canopy of cottonwoods. It’s like you’re entering an enchanted forest,” says Duhot, new home counselor for Oakwood Homes. “When you live here, you don’t feel like you live in the city.”
Homebuyers who want to enjoy that escape from city life and get easy access to the golf club’s Smokehouse and Oyster Bar restaurant must act fast.
Oakwood has its final six homesites and one quick move-in available now, Duhot says, and she expects them to sell quickly.
Contact Michelle Glass at 303-868-0011 for more details and to schedule a showing!
Most homeowners know that a leaky basement can be a serious problem that can often require a professional’s expertise. Water can damage possessions and create a health hazard, but it can also lead to structural problems with a home.
Waterproofing your basement walls is one of the best ways to prevent leaks (and callbacks). While there are many methods that can be used, one popular method is to apply a waterproof coating to the walls, which will create a barrier that prevents water from seeping in.
It’s critical to remove all standing water before beginning any waterproofing job. After the area is completely dry, you may now begin to analyze the damage and select the most effective action. Any water left standing may hide a leak coming from the floor – not the wall – and will require a different solution to fix the problem.
Clean, dry and grease-free surfaces produce the best results. When removing dust, grime and any loose or broken masonry with a wire brush, it’s important to make sure that it’s completely gone.
Once the area is clean and dry, you can begin plugging any holes or cracks in the walls with hydraulic cement. This will prevent water from entering the basement.
With a waterproofing project, it’s always a good idea to do an overall perimeter check on the home. Window wells are a common entry point for water, which makes it important to seal them properly. You can use silicone caulk or expanding foam. Windows and doors should also be sealed with caulking in order to prevent water from entering.
Once the basement is completely dry, all the holes are plugged and the windows and doors are caulked, it’s time to paint the walls with a waterproof sealer.
Drylok
If you are a big wine connoisseur or just saving a few bottles to crack open on special occasions, it’s important to understand how best to store them safely until you’re ready to partake. Follow the guidelines below!
Temperature
To ensure each wine bottle maintains the proper flavor and aroma, storing it at the correct temperature is essential. Regardless if it is red, white, or sparkling, storing your bottles at 53°F to 57°F is most ideal. Keeping your bottles in a room where the temperature is much warmer than that may cause the flavor to become flat. Keep your wine in the dark and away from direct UV rays as much as you can to protect the wine’s flavor.
Moisture
Controlling the humidity in the room is important if you plan to store bottles for more than a couple of years. The ideal humidity for storage is between 50 to 75 percent and anything below that could cause the corks to dry out, letting air seep into the bottle.
Positioning
Generally, it is advised to store wine bottles on their sides. This allows the wine to stay up against the cork which should aid in keeping it from drying out. However, if you don’t plan to store the wine for long or if the bottle has a screw top or plastic cork, this is not required for safe storage.
Timing
Not all wine is designed to have a long shelf life or be aged. Make sure you know what the winemaker’s intention was for that particular bottle. It is always better to open it a little early and enjoy it!
Michelle Glass
