Less is More Tips for Downsizing

Summer should get a speeding ticket! It feels like in a blink of an eye we are seeing back to school supplies at the grocery store and the end of summer is looming on the calendar. Luckily, we live in beautiful Colorado and those gorgeous late summer days offer plenty of time to squeeze in a few more hikes, bike rides, BBQ’s or last-minute getaways! Hopefully you can take a moment and check a few more items off your summer bucket list before shifting your gaze toward the fall.

Market in a Minute

Taming inflation has been the Fed’s main goal since they began raising the Federal Funds Rate in March of 2022. CPI data showed inflation began surging over the Fed’s target rate of 2.0% back in March of 2021. Initially, the Fed declared the overheated inflation “transitory” (as a result of the novel Coronavirus and related disruptions to the economy), however, once it became clear that inflation was elevated and persistent, the Fed began using its policy tools – most notably increasing the benchmark Fed Funds Rate to rein in inflation. After 10 consecutive increases, the Fed took a pause at their meeting in June, and last month, the Fed decided by unanimous vote to increase the rate by another 25bps at the end of July. At the height of inflation in June of 2022 the Year-over-Year rate was 9.1%, and in response to the Fed’s actions, inflation has been moving down ever since (slower than we’d like, and I don’t think we are alone in that opinion ??). July’s CPI data came in just below expectations (a good thing) with a 3.2% YOY rate, but that wasn’t good enough for the Fed Open Markets Committee — which reiterated that their next decision will, as always, be data dependent; leaving the door open for either a hike or another pause. In that context, the unemployment rate ticked down to 3.5% for July, remaining stronger than anticipated (which ultimately fuels inflation fears and puts upward pressure on rates). Will that be enough to force the Fed’s hand? As the markets digest each new batch of data and try to read the tea leaves coming out of this week’s economic symposium in Jackson Hole WY, most forecasters are still suggesting the Fed will hold the benchmark rate steady at their upcoming meeting in September. Will that change after this week? There is a lot of volatility in the markets right now, and working through the challenges of higher interest rates is not for the feint of heart. Curious about how to approach getting a mortgage in this environment? Call me and we can talk details!

Buyers who have stuck it out in the current interest rate environment have generally been rewarded with less competition and sellers who are more willing to negotiate on multiple fronts, including obtaining seller concessions for temporary rate buydowns, accepting contingent offers, and agreeing to make inspection-related repairs. The Denver housing market also saw its average purchase price dip (albeit marginally) across all residential types to $693,449 for the month ending July 31st. Low inventory continues to be the story, as many homeowners feel “locked-in” to their current home and are delaying any unnecessary moves due to the higher relative financing costs. We have seen a slow and steady climb in active listings since April, yet with only 6,299 homes on the market, we are still almost 15% lower than where we were at this same time last year. If you can qualify to purchase in the current market, you may find it the perfect opportunity to get into a home for a “deal”, particularly if that home checks all of your boxes and has been on the market for more than 30 days.

Sometimes you don’t know what you don’t know – and knowledge is power. Do you think that you can’t buy in this market? Let’s have a conversation, you may find that not only can you make that move, but it may be easier than you thought! Reach out to me – I’d be happy to discuss all the options available to you and help you to discover your best fit!

Monthly Morsel:  Less is More Tips for Downsizing

In this month’s eReport, I am sharing with you some strategies on how to start the process of downsizing a home, whether it is yours or loved ones. I am also offering a reminder to use those “good” items you had set aside as well as parting with those you only kept out of guilt. You are worth it!