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PO Box 858 Firestone, CO 80520

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by Tracy Graham

Happy 2021‭ ‬Carbon Valley‭! ‬Nationwide our 2020‭ ‬residential real estate market turned out to be a phenomenal year‭, ‬and Carbon Valley was no exception‭. ‬After being completely shut down in the Spring during the beginning of the traditional‭, ‬busy real estate buying and selling season‭, ‬the market surprisingly catapulted into a plethora of home sales through the remainder of the year‭. ‬The‭ ‬strong buyer demand and lack of supply resulted in accelerated appreciation and multiple offers‭. ‬Lawrence Yun‭, ‬NAR’s Chief Economist‭, ‬recently explained‭: ‬“Such a frenzy of activity‭, ‬reminiscent of 2006‭, ‬raises questions about a bubble and the potential for a painful crash‭. ‬The answer‭: ‬There’s no comparison‭. ‬Back in 2006‭, ‬dubious adjustable-rate mortgages taxed many buyers’‭ ‬budgets‭. ‬Some loans didn’t even require income documentation‭. ‬Today‭, ‬buyers are taking out 30-year fixed-rate mortgages‭. ‬14‭ ‬years ago‭, ‬there were 3.8‭ ‬million homes listed for sale‭, ‬and home builders were putting up about 2‭ ‬million new units‭. ‬Now‭, ‬inventory is only about 1.5‭ ‬million homes‭, ‬and home builders are underproducing relative to historical averages‭.‬”

The housing market may very well be one of the leading sectors to help pull out the economy‭. ‬Of course‭, ‬all of this is dependent‭ ‬on what happens from here with the coronavirus‭. ‬There are not any historical trends of a global pandemic‭, ‬so we are in uncharted territory‭. ‬Those of us active in the real estate market could only observe and report‭, ‬so‭, ‬essentially‭, ‬we became‭ ‬“Mall Cops‭.‬”‭ ‬

The real estate market recovery always comes down to four components‭: ‬Demand‭, ‬Supply‭, ‬Price‭, ‬and Time on Market‭. ‬In our current‭ ‬market‭, ‬housing demand is directly affected by several factors‭. ‬Interest rates are at historic lows‭. ‬Freddy Mac has come out with their projections through the 4th quarter of 2021‭, ‬stating that 30-year fixed interest rates will stay around 3%‭, ‬making a favorable lending market to purchase and refinance‭. ‬The fundamental makeup needs of a home have also changed‭; ‬people want more personal space for work‭, ‬school‭, ‬exercise‭, ‬a larger yard for entertainment to avoid being on top of one another‭. ‬Lastly‭, ‬working from home may be here to stay for some or a hybrid of sorts‭, ‬only going into‭ ‬“the office”‭ ‬a couple of times a week or month‭. ‬Many businesses now know it as a viable option‭, ‬which broadens the area where employees can‭ ‬live by lessening the commute‭. ‬As a result‭, ‬there is an emerging trend desiring larger homes in less densely populated areas‭. ‬“The pandemic is making people reconsider city living‭, ‬trading traffic for chickens‭,‬”‭ ‬according to The Washington Post‭.‬

In November‭, ‬Carbon Valley’s median sales price rose 11%‭ ‬compared to this time last year‭. ‬The month brought a 13%‭ ‬increase in listings to 224‭. ‬It was the first time since January Carbon Valley has had an increase in the number of listings in our market‭. ‬For sellers to receive the best price‭, ‬it is necessary to correctly determine the property’s list price to attract the largest number of potential buyers‭. ‬With the Holidays‭, ‬typically‭, ‬potential buyers are distracted from their home search with kiddos out of school‭, ‬family activities‭, ‬vacations‭, ‬and celebrations causing the average days on the market to increase between Christmas and the New Year‭. ‬It will be interesting to see December’s results‭ (‬released in January‭) ‬due to our current situation‭. ‬

With our strong buyer demand‭, ‬homes spent an average of 42‭ ‬days on the market‭, ‬versus 82‭ ‬days in November 2019‭.  ‬Additionally‭, ‬our year-to-date closed listings are up 22%‭ ‬compared to November 2019‭. ‬All our new construction inventory certainly helped elevate this number‭. ‬Carbon Valley’s real estate market is outperforming many of the surrounding communities‭, ‬including Longmont‭, ‬based on their 12%‭ ‬increase of closed listing year-to-date from 2019‭. ‬Because of all our current market conditions‭, ‬now is the most affordable and favorable time‭ ‬for both buyers and sellers to build wealth‭. ‬

Data obtained from Longmont Association of REALTORS®‭ ‬&‭ ‬based on information from IRES‭, ‬LLC‭.‬

Tracy Graham is a REALTOR®‭ ‬with Keller Williams 1st Realty Associates in Firestone‭. ‬She lives in Frederick with her husband and parrot‭. ‬Her dedication and‭ ‬passion for helping individuals achieve their goals and build wealth through real estate spans over 15‭ ‬years‭. ‬She has earned the following real estate designations to best serve her clientele‭, ‬ABR‭, ‬CNE‭, ‬CRS‭, ‬GRI‭, ‬SFR‭. ‬When not helping clients‭, ‬Tracy can be found gardening or enjoying any number of outdoor activities with her family‭. ‬You may reach Tracy at 720-272-0183‭ ‬or www.TracySoldMine.com‭.‬