We are closing out July 2021 w/an average closed price of $476K, an average of 7 days on the market and an average closed to list price of 104.03%. Conventional loans have dominated the market this month. Meridian Ranch continues to dominate as the top subarea for volume of sales.
Here’s a quick look at the average zip prices around the center of town.
Doing a little explorative data analysis. Here are the July 2020 and July 2021 sum of sales by zip code. The dot sizing reflects the sum gradient (larger dots = more sales $).
Conventional is dominating the market in volume of sales month to date, accounting for 46% of sales. Here is the distribution of those sales (and cash, VA and FHA) across the market for the month in $50K incremements.
80831 is leading the list of top 10 zip codes by volume of sales month to date in the area, selling for 3.75% more than list on average. 80918 is leading the pack in terms of closed to list price ratio, selling for 5.53% over list on average.
These stats are part of a custom built platform I have built to deliver relevant hyper local stats to my clients. Please let me know if I can help you!
Rob Thompson, Realtor®, The Agency — 7194406626
Here are the top 10 subareas month to date. Meridian Ranch continues its reign at the top!
Here’s how to read this chart:
Meridian Ranch has 29 sales month to date at an average closed price of $515K, a median of $512K, an average closed to list price of 103.72% (selling for 3.72% above list price), an average of 6.17 days on the market, a median of 4 days on the market, an average seller’s concessions of $244 and a median seller’s concessions of $0.
Seller’s concessions are often referred to as closing costs. I dislike this reference because it lends itself to confusion; I like the more accurate description of “seller’s contribution (concession) to the buyer’s closing costs
Cash has the (significant) advantage of no appraisal but does it command the discount many feel it does? Let’s look at the data.
Below is a breakout of the purchase types of the sales YTD in the PPAR region. You can see there have been app 9,856 sales, 1646 of which have been cash. These on the average are paying 3.66% above list price. Contrast that with the 3.87% for conventional, 3.84% for FHA and 3.42% for VA and it’s immediately apparent that cash isn’t currently commanding the discount it has a reputation for.
Conventional loans are dominating the market across price points right now.
Short answer: yesno. Read the fine print.
Longer answer: the VA actually has no minimum credit score for insuring the loans of qualifying servicemembers. However, most lenders will require a minimum credit score.
There are lenders that offer loans to qualifying servicemembers with lower credit scores. There is always a cost, though. It’s usually in the form of a higher interest rate and higher loan costs.
That said, this can still be a good decision. There is something to be said about locking in housing costs vs renting, for example. But you have to run the numbers and do a cost benefit analysis.
I’m in a coding bootcamp but wanted to take a moment over lunch here to answer this question that I’m seeing pop up via email, PM and I’m also hearing more ads on the radio offering this.
I think this is a marketing tactic related to the rising interest rates and home prices (as companies try to generate additional revenue).
This is not legal or financial advice but I believe the short answer is: it depends.
The longer answer is it depends on your circumstances. While rolling high interest debt into your lower rate mortgage may sound good , there are a number of variables to consider, two of which are:
- If you take the surplus of income and turn it around into paying down your home mortgage, that could be a good thing.
- Doing so raises the value at which you have to sell your home (in a peaking market, this may cause trouble for you, if you have to sell).
What do I mean by the first option? If one has credit card debt of $25K that’s costing $450 in interest monthly, you may be able to roll that into a mortgage refi. But consider that may raise your mortgage payment. If it does so by $125, that leaves you $325. If you are disciplined and build an emergency fund with that or invest it or turn it back around into paying down the principal of the home, I could see this being a good option.
However!!! (emphasis intentional), know that it raises the amount you need to sell your home at by that corresponding value plus some (if you use a percentage based commission agent to sell, for example). If you are looking to stay in your home long term, that may still be a good option. But – and here’s the bottom line of this post – please understand it’s putting you in a position where you must have continued market appreciation to sell (unless you have a lot of equity).
And if you have a short horizon on home ownership, or are looking to sell soon, this could put you in a bad spot.