Is Denver Hot or Not?
It’s all relative. Our housing market in Denver has been super hot the last few years, consistently ranking in the Top 10 hottest housing markets in the nation. However, Denver started to fall behind starting in April when our days-on-market inched up, allowing other cities to claim the top spots. Until last month, when Denver made a comeback, claiming the #9 spot. It’s not that our days-on-market have improved, but that other cities have had their DOMs increase. So, don’t go thinking the old days are back. We aren’t as “hot” as we were even a year ago. (And, housing prices aren’t going up either.) However, this good PR might light a fire under buyers who might feel the need to get into market. Also, keep in mind that you can make money in any market as long as you pay attention to the conditions and run your number correctly!
How to Find a Deal in a Hot Market
Although a hot housing market is an exciting place to be, it can be hard to find a deal. Once you have that deal, it’s fun, but it takes a lot more patience to find the deal in the first place. Here’s a great tip from our investor friend Joe Fairless (remember the Best Ever Real Estate Conference that came to town last year? Yeah, that guy.) He recommends looking into off-market deals around the on-market deal. You might not get the on-market deal, but it gives you a reason to talk to the neighbors! His example involves multi-unit apartments, but the principal could work with single-family as well.
Proposed Mortgage Deduction Limit Decrease
Congress has a new tax bill to hash out. This will have everyone’s attention, including ours. The big impact to real estate is the mortgage deduction, which has been proposed to drop from $1M to $500,000. This means that for new mortgages only the interest on the first $500,000 can be deducted. The main concern is that homes priced over $500k will become less desirable and might lose value (since part of their value is the deduction itself). A few years ago, this might not seem like such a big deal in Colorado; however, with medium house prices in the mid $400’s, it has the potential to impact our market.
Read the full newsletter here: 2017.11.03 – Friday Flyer