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October Housing Report

DENVER – Home sales, which lagged during the first part of 2019, continued their recent rebound with another strong month in October. October 2019 sales finished 3.9% higher than in October 2018. At the same time, inventory posted a steep 9.0% year-over-year decline across the report’s 54 metro areas, while the Median Sales Price of $254,800 set an October record.

“October continued a recent win streak for home sales, and the market is positioned much better than it was a year ago,” said RE/MAX Holdings CEO Adam Contos.  “Demand is strong, due in part to low-interest rates, but buyers have limited options because inventory remains such a challenge. As a result, prices keep rising. Fortunately, key forecasts suggest an increase in new-homes moving onto the market next year, which would help address the inventory situation and potentially slow the steady price gains we’ve seen for so long.”

With May, July, and September already in the positive column, October became the fourth month of the past six to post a year-over-year increase in sales, which hadn’t happened for nine months prior to May.

Meanwhile, inventory resumed the skid that has dominated the last decade. October’s year-over-year decline of 9.0% was the largest for any month since May 2018. The downturn resulted in October’s Months of Inventory dropping to 3.1 – the lowest October amount in the report’s 11-year history. The 49 Days on Market was the second-lowest figure for October in report history, trailing only 2018’s 48.

The Median Sales Price of $254,800 set an October record for the report and the 8.4% increase year over year was the highest for the month since 2013.

Closed Transactions 
Of the 54 metro areas surveyed in October 2019, the overall average number of home sales is up 0.4% compared to September 2019, and up 3.9% compared to October 2018. Leading the year-over-year sales percentage increase were Los Angeles, CA at +24.4%, Charlotte, NC at +19.1%, and Burlington, VT at +16.1%.

Median Sales Price – Median of 54 metro median prices
In October 2019, the median of all 54 metro Median Sales Prices was $254,800, up 0.1% from September 2019, and up 8.4% from October 2018. Three metro areas increased year-over-year by double-digit percentages: Trenton, NJ at +20.9%, Albuquerque, NM at +15.8%, and Boise, ID at +10.9%. Two metro areas saw a year-over-year decrease in Median Sales Price: San Francisco, CA at -2.6% and Burlington, VT at -0.8%.

Days on Market – Average of 54 metro areas
The average Days on Market for homes sold in October 2019 was 49, up three days from the average in September 2019, and up one day from the average in October 2018. The metro areas with the lowest Days on Market were Omaha, NE at 21, Cincinnati, OH at 27, and Nashville, TN at 28. The highest Days on Market averages were in Des Moines, IA at 102, Augusta, ME at 96, and Miami, FL at 86. Days on Market is the number of days between when a home is first listed in an MLS and a sales contract is signed.

Months Supply of Inventory – Average of 54 metro areas
The number of homes for sale in October 2019 was down 5.5% from September 2019 and down 9.0% from October 2018. Based on the rate of home sales in October 2019, the Months Supply of Inventory decreased to 3.1 compared to 3.4 in September 2019 and decreased compared to 4.0 in October 2018. A six months supply indicates a market balanced equally between buyers and sellers. In October 2019, of the 54 metro areas surveyed, only Miami, FL at 6.9, reported a month’s supply at or over six, which is typically considered a buyer’s market. The markets with the lowest Months Supply of Inventory were San Francisco, CA at 1.6 and a three-way tie among Denver, CO, Manchester, NH, and Phoenix, AZ at 1.8.

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Whether you’re a buyer or a seller, find an experienced, top-producing agent on remaxallpro.com.

5 Winning Tips for Writing an Offer Letter

In some hot housing markets, including a letter with your formal offer to buy a home is all but required. Unfortunately, Hallmark doesn’t make a card for the occasion (yet). Here are a few tips:

1. Get emotional.
Take advantage of this opportunity to sail beyond the facts and figures to convey a personal connection to the home. Pick one or two features and talk about how they fit into your vision of the perfect home. For example, “Holiday meals are important to my family. Your large kitchen has everything I need to re-create my grandmother’s recipes, and would fit all of my relatives who like to gossip while cooking.” Or, “During our showing my children escaped to climb trees in your backyard. They fell in love with the home as much as I did.”

2. Connect with the seller.
Find one or two similarities between your family and the seller’s, based on what you can discern from the home. Show you have something in common, but be careful not to dig too deep (nobody wants to sell to a stalker). For example: “We’re so excited that your home not only has a beautiful, fenced yard, but also a dog door. Our lives revolve around our two rescue pups, Sonny and Cher, who would literally leap for joy in a yard of their own.”

3. Don’t be afraid to flatter.
Tell the seller why you adore specific features that have been upgraded: “We love those colorful tiles you used on the kitchen backsplash. They remind us so much of our honeymoon in Portugal.”

4. Don’t whine.
This is not the place to play the sympathy card. No sob stories about why you sold your last place, or how many deals have fallen through. You want the seller to feel good reading your letter.

5. Grammar matters.
Check spelling and grammar. Have a grammar-nerd friend triple check it for you. You want the seller to know you put time and care into your honest appeal.

Whether you’re a buyer or a seller, find an experienced, top-producing agent on remaxallpro.com.

From Summer Blues to Harvest Hues: Simple Ways to Transition a Backyard Into a Haven Buyers Will “Fall” in Love With

Daylight is dwindling, temperatures are dropping; it’s time to cover up the grill, toss the flowers and retire the patio furniture to the garage, right? Not so fast! Remember that backyard appeal can be just as important as curb appeal to potential buyers – all year long. With proper appointing, the backyard can remain a central hub all the way through the fall. Here are five easy ways to spice up any backyard to impress buyers, while simultaneously transitioning it from summer to fall.

  1. Say goodbye to vibrant petals – and hello to burgundy blooms!

Beautiful summer flowers have long since wilted, but that doesn’t mean plants are off-limits until spring. It’s time to transition into seasonally appropriate plants – you know, the ones that can handle cooler nights but still frame a back door with a pop of color. Pansies and garden mums are notorious for surviving signs of winter weather so they’re both stylish and practical. Feeling creative? Consider stacking this inexpensive wooden plant ladder with fresh herbs or fall flowers.

  1. Find the best seat in the house

Comfortable nooks are more desirable than sterile sitting parlors – that’s a given – so provide your backyard with that cozy versatility. Draping machine-washable throw blankets over outdoor seating acts as an invitation to curl up. And exchanging bold-colored summer pillows for durable outdoor pillows in shades like burgundy and burnt-orange, or even classic plaids, fosters a cabin-like feeling.

  1. Gather ’round the fire

Large bonfires may be a hit in the summertime, but compact fire pits are the perfect accompaniment to fall. There are wood-burning options for the fire-savvy, and gas-burning options for those who enjoy instant gratification. To ensure the safety of you and your neighbors, read up on fire safety protocols before purchasing a fire pit. If the thought of flames ablaze in your yard isn’t terribly appealing, consider a fuss-free heat lamp instead.

  1. Get your head in the game!

A home shouldn’t be too personalized during a showing – but it should show some signs of life. To make a backyard look like a place to lounge and play, include games and entertainment that double as decor. Cornhole is the perfect addition to the yard during the fall and it shows opportunity for people to engage with the outdoor space. Additionally, having a pair of binoculars sitting decoratively on a table or hanging on a hook encourages star-gazing on a crisp autumn night. These playful touches give the backyard character and show it can be a gathering place.

  1. Hang vintage bulbs for a modern feel

Who would have guessed that those oversized, old-fashioned light bulbs would come back in style – for patio fashion! Weather-proof string lights are now a staple for cultivating an appealing backyard during the day or night. Accent lights set the mood, creating a starry-ambiance and providing ample extra lighting on especially dark nights. These lights can wrap around porch railings, weave through a pergola or simply hang in the air.

Whether you’re a buyer or a seller, find an experienced, top-producing agent on remaxallpro.com.

September Housing Report

DENVER – While signaling the end of 2019’s peak selling season, September home sales rose 8.1% year-over-year – the largest year-over-year increase since November 2016. Home purchases increased in 47 of the report’s 54 markets, forcing already tight inventory totals to drop 6.1% year-over-year for the biggest decline in over a year.

The year-over-year increase in September 2019 sales was the largest September increase since 2013. This was accompanied by an August-to-September decline of 17.0%, which – while larger than average – was significantly less than the month-to-month drop of 24.4% in September 2018, when sales sharply declined amid an uncertain interest rate environment.

September 2019 marked the third consecutive month of year-over-year inventory decline. That reversed the strongest 9-month-stretch of year-over-year inventory growth – from October 2018 to June 2019 – in report history. Meanwhile, the August-to-September seasonal inventory decline of 1.5% was less than the August-to-September 5-year average drop of 2.3%.

“It was encouraging to see the improvement in September home sales, especially given how tough last September’s results were,” said RE/MAX Holdings CEO Adam Contos. “The market still poses some challenges for buyers – framed by rising prices and shrinking inventory – but we’re moving into the fourth quarter on much better footing than we had a year ago. As we begin to lap the end of last year and its persistent sales declines, the housing market’s momentum increases the chances of seeing more months of strong year-over-year gains in sales.”

September’s Median Sales Price of $254,500 was a year-over-year increase of 4.5%, which is in line with the year-over-year average gain of 4.9% for 2019’s first nine months.

Closed Transactions 
Of the 54 metro areas surveyed in September 2019, the overall average number of home sales is down 17.0% compared to August 2019, and up 8.1% compared to September 2018. Leading the year-over-year sales percentage increases were Los Angeles, CA at +31.4%, Little Rock, AR at +24.2%, and Tulsa, OK at +22.1%.

Median Sales Price – Median of 54 metro median prices
In September 2019, the median of all 54 metro Median Sales Prices was $254,500, down 2.5% from August 2019, and up 4.5% from September 2018. Five metro areas increased year-over-year by double-digit percentages, with the largest increases seen in Detroit, MI at +15.6%, Birmingham, AL at +15.3%, and Charlotte, NC at +11.8%. Two metro areas saw a year-over-year decrease in Median Sales Price – San Francisco, CA at -2.1%, and Billings, MT at -0.5%.

Days on Market – Average of 54 metro areas
The average Days on Market for homes sold in September 2019 was 46, up one day from the average in August 2019, and equal to the September 2018 average. The metro areas with the lowest Days on Market were Omaha, NE at 19, Cincinnati, OH at 26, and Nashville, TN at 28. The highest Days on Market averages were in Des Moines, IA at 98, Miami, FL at 91, and Hartford, CT at 79. Days on Market is the number of days between when a home is first listed in an MLS and a sales contract is signed.

Months Supply of Inventory – Average of 54 metro areas
The number of homes for sale in September 2019 was down 1.5% from August 2019 and down 6.1% from September 2018. Based on the rate of home sales in September 2019, the Months Supply of Inventory increased to 3.2 compared to 3.0 in August 2019, and decreased compared to 4.2 in September 2018. A six months supply indicates a market balanced equally between buyers and sellers. In September 2019, of the 54 metro areas surveyed, only Miami, FL at 7.5 and New York, NY at 6.3 reported a months supply at or over six, which is typically considered a buyer’s market. The markets with the lowest Months Supply of Inventory were Manchester, NH at 1.7 and Phoenix, AZ at 1.8.

Whether you’re a buyer or a seller, find an experienced, top-producing agent on remaxallpro.com.

Demand for Housing Increases in August 2019

According to the August 2019 RE/MAX National Housing Report, buyer demand continues to exceed available housing supply, extending the favorable seller’s market that has been in place for years. While sellers have had the upper hand in negotiations in recent years with constricted inventory remaining nationally, more buyers entering the housing market could increase momentum.

“The modest inventory growth that started last fall has been swallowed up by demand as buyers have returned to the market, likely spurred on by attractive interest rates,” said RE/MAX CEO Adam Contos. “Home sales dipping at the same time inventory falls suggests there may have been some reluctance on the part of sellers to list their homes,” added Contos.

The last of 2019’s peak months for home sales also prompted encouraging signs for buyers with a steep decline in Median Sales Price from July 2019 to August 2019. Despite concerns over low inventory, the seasonal decline in inventory from July 2019 to August 2019 is on par with the national average since RE/MAX began releasing the RE/MAX National Housing Report over 10 years ago.

Here are some highlights of the latest data found in the RE/MAX National Housing Report:

  1. Home sales took a dip.

The overall average number of home sales is down 4.2% compared to July 2019, and down 1.6% compared to August 2018. Leading the month-over-month sales percentage decrease were Miami, FL at -13.5%, Dover, NH at -13.1%, and Washington, D.C. at -10.3%.

  1. Home prices became increasingly more affordable.

In August 2019, the median of all 53 metro Median Sales Prices was $263,000, down 3.6% from July 2019 and marking the steepest drop-off in report history from July to August.

  1. The number of homes for sale declined.

The number of homes for sale in August 2019 was down 3.9% from July 2019 and down 5.5% from August 2018. Based on the rate of home sales in August 2019, the Months Supply of Inventory was 2.8, a decrease compared to 2.9 in July 2019 and 3.5 in August 2018. A six months supply indicates a market balanced equally between buyers and sellers.

Whether you’re a buyer or a seller, find an experienced, top-producing agent on remaxallpro.com.

August Housing Report

DENVER – August 2019 existing home sales slipped 1.6% from a year ago, despite buyer demand exceeding available housing supply, according to the RE/MAX National Housing Report. Following July’s year-over-year sales increase of 2.3%, the slight August decline marks the sixth month of 2019 that produced fewer sales than 2018.

Buyer demand outpaced homes listed for sale in August, causing the largest inventory decline in 13 months. An analysis of the report’s 53 metro areas shows August inventory shrank 5.5% year-over-year, the largest drop since 7.8% in July 2018. August’s inventory contraction followed July’s year-over-year inventory decline of 1.5% after nine consecutive months of year-over-year inventory growth. Months Supply of Inventory decreased to 2.8 compared to 2.9 in July 2019 and eclipsed the previous August low in the report’s 11-year history.

“The modest inventory growth that started last fall has been swallowed up by demand as buyers have returned to the market, likely spurred on by attractive interest rates,” said RE/MAX CEO Adam Contos. “Home sales dipping at the same time inventory falls suggests there may have been some reluctance on the part of sellers to list their homes. Nevertheless, demand is again ahead of supply, extending the favorable seller’s market that has been in place for several years.”

Inventory has remained below four months in 39 of the last 42 months, dating back to March 2016. Six months is considered a market balanced between sellers and buyers.

Homes moved quickly and August saw a year-over-year price increase of 5.7%, further evidence of buyer demand. The August Days on Market total of 44 represented the second-fastest pace of August home sales in the report’s history. The previous record was set last August, when homes sold in an average of 43 days.

August weighed in as the eighth consecutive month of year-over-year price growth as the Median Sales Price rose to $263,000. Going back to February 2012, prices have increased year over year in 89 of the past 91 months.

Despite the favorable conditions for sellers, there were still a few encouraging signs for buyers in the last of 2019’s peak months for home sales:

  • While home prices typically decline from July to August, the decrease of 3.6% was the steepest drop-off in report history from July to August.
  • Despite August’s significant year-over-year inventory shrinkage, the seasonal decline in inventory from July-to-August of 3.9% is on par with the 3.7% average since the RE/MAX National Housing Report began in August 2008.

Closed Transactions 
Of the 53 metro areas surveyed in August 2019, the overall average number of home sales is down
4.2% compared to July 2019, and down 1.6% compared to August 2018. Leading the month-over-month sales percentage decrease were Miami, FL at -13.5%, Dover, NH at -13.1%, and Washington, D.C. at -10.3%.

Median Sales Price – Median of 53 metro median prices
In August 2019, the median of all 53 metro Median Sales Prices was $263,000, down 3.6% from July 2019, and up 5.7% from August 2018. Two metro areas saw a year-over-year decrease in Median Sales Price: San Francisco, CA at -3.2% and Wichita, KS at -1.2%. Six metro areas increased year-over-year by double-digit percentages, with the largest increases seen in Birmingham, AL at +13.2%, Milwaukee, WI at +11.3%, and Manchester, NH at +11.2%.

Days on Market – Average of 53 metro areas
The average Days on Market for homes sold in August 2019 was 44, up one day from the average in July 2019, and up one day from the August 2018 average. The metro areas with the lowest Days on Market were Omaha, NE at 19, Cincinnati, OH at 25, and Nashville, TN at 28. The highest Days on Market averages were in Des Moines, IA at 95, Miami, FL at 79, and Hartford, CT at 75. Days on Market is the number of days between when a home is first listed in an MLS and a sales contract is signed.

Months Supply of Inventory – Average of 53 metro areas
The number of homes for sale in August 2019 was down 3.9% from July 2019 and down 5.5% from August 2018. Based on the rate of home sales in August 2019, the Months Supply of Inventory was 2.8, a decrease compared to 2.9 in July 2019 and 3.5 in August 2018. A six months supply indicates a market balanced equally between buyers and sellers. In August 2019, of the 53 metro areas surveyed, only Miami, FL, at 6.9, reported a months supply at or over six, which is typically considered a buyer’s market. The markets with the lowest Months Supply of Inventory were Phoenix, AZ and Manchester, NH, both at 1.5.

From ‘Smart House’ to Smart Homes: How Today’s Tech Compares to the Iconic Disney Movie

Voice-activated music. Touch-screen powered appliances. An omnipotent, but friendly, virtual assistant providing homework help.

When “Smart House” debuted on the Disney Channel in 1999, its portrayal of a family living in a home powered by artificial intelligence seemed far-fetched. Watching it 20 years later, it’s a surprisingly prophetic portrayal of the way technology has become fully integrated into our daily lives.

In case you missed this made-for-TV masterpiece, the plot is simple: A family wins a home featuring an artificial intelligence (AI) system named P.A.T. (Personal Applied Technology). P.A.T. is programmed to take care of everything from house cleaning to meal prep, and can help coordinate outfits, give basketball advice and throw an epic party complete with mood lighting and cleanup. Chaos ensues, though, when P.A.T. is frighteningly overprotective after being reprogrammed to serve as the family’s maternal figure.

In honor of the 20th anniversary of “Smart House,” here’s a look at the technology covered in the film and how it compares to today.

Yep, homes can be controlled by AI

Similar to P.A.T., smart speakers like Amazon Echo and Google Home can control everything from music to lights with a few voice commands (and strategically placed smart plugs, if needed). But whereas P.A.T. was portrayed as the home’s central operating system, today’s smart homes are usually more of a combination of apps, gadgets and high-tech appliances.

The advantage is that homeowners can customize the technology to fit their lifestyle. It also means the tech can typically move with homeowners if they relocate.

Safety technology gives smart-home owners peace of mind

When a misguided P.A.T. attempts to lock the Coopers inside indefinitely, she blocks the windows with steel and adds an electrical force field to the home’s doors.

True, smart-home technology can greatly enhance home security, but it’s much more subtle.

For example, the If This Then That app is able to trigger an empty home’s interior lights as soon as the owner approaches. The Ring video doorbell helps residents monitor (and chat with visitors to) the front door. And many new home security systems, smoke alarms (check out Home Advisor’s breakdown of options), garage doors and surveillance cameras feature a virtual assistant integration, which means they can be controlled and monitored by a phone app or smart speaker.

Even our pets are avid technology enthusiasts

Considering the fact that keeping pooches happy is one of the primary reasons millennials buy homes, the movie’s inclusion of pet technology (the family dog is entertained by P.A.T. while the family’s away) is spot on.

One piece of especially buzzworthy pet technology is Furbo, an interactive pet camera that tosses treats to pets stuck at home. Then there are the pet doors that open only when triggered by an ultrasonic signal emitted from a special collar, blocking access to intruders. The doors can also be programmed to remain locked at certain times of day, keeping Fido and Fluffy inside for the night.

Technology can create the perfect mood

One of P.A.T.’s coolest features in the movie is her use of virtual reality to transport the Coopers to Cape Cod or a serene farm complete with a rooster’s wake-up call. While VR technology gets more sophisticated every year, full-screen virtual experiences don’t come standard in homes just yet. However, several pieces of smart appliances can help change the mood in your home.

Philips Hue is a line of smart lamps and light bulbs that can be timed to adjust from bright to softer lighting as the day goes on, mimicking natural daylight patterns. The Nest thermostat automatically sets the temperature in your home to your desired preferences, turns the temperature down when it senses you leave the home, and can be controlled from an app for on-the-go changes.

One downside of smart home technology? Energy drainage. But there’s even a “smart” solution for that. The Emporia Vue system helps homeowners monitor their energy usage through an app on their phone to reduce monthly costs and identify potential issues before they require major repairs.

Even as our lives become increasingly inseparable from technology, a home is much more than its futuristic appliances. If you’re looking for a home, working with an experienced professional is a smart move.

Start your first home buying experience off the right way by finding a real estate agent who works for you at remaxallpro.com.

July Housing Report

DENVER  July home sales bounced back after a sluggish June by increasing 2.4% year over year, according to the RE/MAX National Housing Report. This was enough to end nine months of year-over-year inventory growth as the number of homes for sale declined 1.4%.

A drop in home sales from June to July is typical in the report’s 53 metro areas. But the 0.2% decline from June to July 2019 was by far the smallest month-over-month decline since July 2013. And while June sales failed to top May for only the second time in the report’s 10-year history, July sales set a report record for the month.

“July sales snapped back after a tepid June, as attractive low interest rates appear to have brought more buyers into the mix,” said RE/MAX CEO Adam Contos. “The housing market has been a bit uneven since the early spring, with each encouraging month seemingly followed by one with lukewarm results. It’s possible the housing market has finally shaken some mud off its boots and can maintain its momentum for the back half of the year. If the broader macro environment hangs on, we could see a potentially strong finish to 2019.”

July’s Median Sales Price of $273,000 – while down slightly from June’s all-time report record high – was 9.2% higher than July of 2018. It marked the seventh consecutive month of year-over-year price growth. Home prices have risen, year over year, in 88 of the last 90 months dating back to February 2012. Said Contos, “Although lower interest rates help affordability, we have now seen two straight months of accelerating price increases. If the trend continues, it’s not an encouraging development for buyers.”

July’s Days on Market total of 43 saw sales closing at the same rate as they did in June, but taking two days longer than in July 2018. Months of Inventory in July 2019 totaled 2.7, down compared to June’s 2.9 and 3.3 in July 2018.

Closed Transactions
Of the 53 metro areas surveyed in July 2019, the overall average number of home sales is down 0.2% compared toJune 2019, and up 2.4% compared to July 2018. Leading the month-over-month sales percentage increase wereHonolulu, HI at +11.8%, Anchorage, AK at +10.2%, and New York, NY at +9.2%.

Median Sales Price – Median of 53 metro median prices
In July 2019, the median of all 53 metro Median Sales Prices was $273,000, down 0.7% from June 2019, and up 9.2% from July 2018. Three metro areas saw a year-over-year decrease in Median Sales Price including Anchorage, AK at -3.2%, Trenton, NJ at -2.1%, and San Francisco, CA at -2.0%. Five metro areas increased year-over-year by double-digit percentages, with the largest increases seen in Wichita, KS at +16.7%, Cleveland, OH at +12.9%, and Cincinnati, OH at +11.7%.

Days on Market – Average of 53 metro areas
The average Days on Market for homes sold in July 2019 was 43, equivalent to the average in June 2019, and up two days from the July 2018 average. The metro areas with the lowest Days on Market were Omaha, NE at 21, Manchester, NH at 24, and Cincinnati, OH at 26. The highest Days on Market averages were in Augusta, ME at 87, Miami, FL at 82, and Hartford, CT at 72. Days on Market is the number of days between when a home is first listed in an MLS and a sales contract is signed.

Months Supply of Inventory – Average of 53 metro areas
The number of homes for sale in July 2019 was down 2.2% from June 2019 and down 1.4% from July 2018. Based on the rate of home sales in July 2019, the Months Supply of Inventory decreased to 2.7 compared to 2.9 in June 2019, and decreased compared to 3.3 in July 2018. A six months supply indicates a market balanced equally between buyers and sellers. In July 2019, of the 53 metro areas surveyed, only Miami, FL at 6.8 reported a months supply at or over six, which is typically considered a buyer’s market. The markets with the lowest Months Supply of Inventory were Phoenix, AZ and Boise, ID, both at 1.5.

3 Things to Consider Before Registering Your Home on a Short-Term Rental Site

Once upon a time, the idea of renting out your home to a stranger while you left for vacation was considered quite odd.

Today, renting a room in your house (or the entire house) to unknown travelers isn’t an outlandish concept, thanks in part to online services such as Airbnb, FlipKey and VRBO. Short-term rentals provide an income opportunity for owners and a unique way for visitors to experience a city. What better way to get the local experience than staying with – or renting from – locals?

If you think you’re up to being a host of a short-term rental, here are three things to keep in mind.

1. Legality

The rise in popularity of Airbnb and other sites hasn’t been without its controversy. There are concerns that short-term rentals threaten the jobs of hotel workers, and that a short-term rental doesn’t have to pass the same certifications and inspections of regular hotels.

Some cities have enacted restrictions against short-term rentals. You may need to register and get a permit or a license – or you may not be able to host at all. Check with your local government to make sure you understand the laws.

2. Taxes

You may not need to report the money earned from the short-term rental of your home if you meet both of these requirements:

1. You rent it out for fewer than 14 days a year AND

2. You live in it for more than 14 days or more than 10 percent of the total days you rent it out during the year (this determines if the property is seen as a residence or a rental property by the IRS).

Still unclear about the taxes on your short-term rental? TurboTax provides some more information, or you may want to consult with a tax professional.

3. Additional Costs

Renting out your home could mean an extra insurance bill. Check with your insurance agent to learn what your current policy covers regarding short-term renters. They may recommend increasing coverage. Airbnb does provide free primary liability coverage for up to $1,000,000 per occurrence, and many of the other sites have partnerships that make it easy to take out additional coverage, if needed.

In addition to insurance, you’ll have to pay a percentage of the rental income to the website: Airbnb and FlipKey both charge a 3% host service fee, VRBO has an option to pay-per-booking or an annual subscription fee.

Start your first home buying experience off the right way by finding a real estate agent who works for you at remaxallpro.com.

 

June Housing Report

DENVER – Typically the strongest month for home sales, June saw closings decline 4.7% from May and 7.8% from June 2018, according to the RE/MAX National Housing Report. Going in the opposite direction, June’s Median Sales Price of $276,000 was an all-time high in the 10-year history of the report.

June has recorded the most sales each of the last five years (July led 2013 sales). This is only the second June in report history to have fewer sales than May. With sales slowing, June inventory increased 1.3% over June 2018, marking the first year-over-year rise in June inventory in the report’s history. Moreover, inventory grew for the ninth consecutive month, and the report’s 54 metro areas had the most units for sale since August 2016.

“Record prices appear to have kept June sales figures from topping a strong May,” said RE/MAX CEO Adam Contos. “Nevertheless, there are indications, including the return of very favorable mortgage rates, that the pace could pick up in July. Several encouraging longer-term trends—ongoing demand, improving inventory levels, low interest rates—are helping the market make incremental progress on multiple fronts. But supply remains a concern, so we need more homes to be built.”

Starting in 2013, June has also produced the highest Median Sales Price of each year. June’s record $276,000 was 6.7% higher than the $259,000 recorded in June 2018.  June’s price increase accelerated compared to the prior three months, each of which had a year-over-price increase of less than 3.5%. Contos continued, “The jump in sales price after months of moderation is worth watching for its impact on affordability.”

June’s Days on Market total of 44 meant that sales happened three days faster than in May but took three days longer than June 2018. Months of Inventory in June 2019 was 2.8, the same as May’s and below June 2018’s 3.1.

Closed Transactions 
Of the 54 metro areas surveyed in June 2019, the overall average number of home sales is down 4.7% compared to May 2019, and down 7.8% compared to June 2018. Leading the month-over-month sales percentage increase were Burlington, VT at +21.8%; Boston, MA at +13.4%; and Hartford, CT at +13.1%.

Median Sales Price – Median of 54 metro median prices
In June 2019, the median of all 54 metro Median Sales Prices was $276,000, up 6.2% from May 2019, and up 6.7% from June 2018. Two metro areas saw a year-over-year decrease in Median Sales Price: San Francisco, CA at -2.0%, and Hartford, CT at -0.1%. Three metro areas increased year-over-year by double-digit percentages, with Boise, ID at +10.7%; Albuquerque, NM at +10.4%; and Philadelphia, PA at +10.0%.

Days on Market – Average of 54 metro areas
The average Days on Market for homes sold in June 2019 was 44, down three days from the average in May 2019, and up three days from the June 2018 average. The metro areas with the lowest Days on Market were Omaha, NE at 22; Denver, CO at 25; and Seattle, WA at 26. The highest Days on Market averages were in Augusta, ME at 108; Miami, FL at 82; and Hartford, CT at 74. Days on Market is the number of days between when a home is first listed in an MLS and a sales contract is signed.

Months Supply of Inventory – Average of 54 metro areas
The number of homes for sale in June 2019 was down 0.6% from May 2019 and up 1.3% from June 2018. Based on the rate of home sales in June 2019, the Months Supply of Inventory held steady at 2.8 from May 2019, and decreased compared to 3.1 in June 2018. A six months supply indicates a market balanced equally between buyers and sellers. In June 2019, of the 54 metro areas surveyed, only Miami, FL at 7.0 reported a months supply at or over six, which is typically considered a buyer’s market. The markets with the lowest Months Supply of Inventory were Omaha, NE and Manchester, NH, both at 1.0, and Minneapolis, MN at 1.8.