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  Provided to you Exclusively by Gregory Pavlich
Gregory Pavlich
Gregory Pavlich
Resource Mortgage Corporation
Office: 303-444-1200
Mobile: 303-717-1359
Fax: 303-444-6817
Email: gpavlich@rmcboulder.com
Website: www.rmcboulder.com
  Resource Mortgage Corporation
For the Month of January 2019 --- Vol. 13, Issue 14
  In This Issue...  

"Waiting does not mean doing nothing. Waiting is a time of listening." - Markus Zusak. The new year 2019 is showing signs of a slowing housing market as new home sales are dropping and many homebuyers are waiting to see how the economy holds. Take a look at what to expect in 2019:

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  New Construction and Development  

According to Dodge Data & Analytics, a reliable source of information for the construction industry forecast, new construction will hold even with numbers from 2017 and 2018. Construction starts advanced 11 percent to 14 percent yearly from 2012 through 2015, but between 2016 and 2017, new construction saw a 7 percent increase and a mere 3 percent rise in 2018. The construction market should see similar patterns in 2019.

Challenges facing new construction and development include an uncertain interest rate environment as well as increased labor and material costs. However, Robert A. Murray, chief economist for Dodge Data & Analytics, believes that these challenges are offset by a strong economy and slight easing of bank lending standards.

In saying that, forecasts project that for 2019, total construction will start off with numbers similar to 2018 and end with a slight decline. Residential new home construction may see a slight drop of about 2 percent.

Commercial buildings, including office, warehouse, and hotel construction, may also experience a weakening as we move forward into 2019.

Overall, new construction and development will likely see a slow start for 2019. Factors that may adjust these forecasts are job growth, wage increases, a pullback in rates and the stabilization of the stock market.

Source: Dodge Data & Analytics

If you have any questions regarding home loan rates or products, give me a call. I'm always happy to help.

  What to Watch: Will 2019 See a Decrease in New Home Sales?  

As 2019 comes into view, keep an eye on what the housing market will bring. Due to uncertainty with interest rates, many prospective new homebuyers are cautiously waiting on the sidelines to see where rates may go.

The Federal Reserve increased the Fed Funds rates in 2018 with expectations of further increases in 2019, but recent forecasts indicate that the Fed may not increase interest rates in 2019. For now, interest rates remain attractive relative to earlier in 2018, but continued uncertainty has the potential to create indecision among buyers throughout the year.

According to the Mortgage Bankers Association (MBA), mortgage applications for newly constructed homes fell by 14 percent in November compared to October. Even with adjustments made for annual seasonal declines in the housing market, application rates were down by 11 percent from the same time in 2017. According to Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting, actual new home sales fell by 7 percent and are about 5 percent lower than November 2017.

Since many homebuyers are on a holding pattern, housing prices are weakening in some markets and the days that a home is on the market are increasing. Instead of putting their homes on the market, many sellers are opting to stay put and build more equity in their homes while spending money on home improvements to increase values. For now, the forecast is predicting a slowdown in new home sales for 2019.

Source: Trading Economics

I'll continue to monitor economic reports closely, but if you have any immediate questions, please call or email today.

  Improve Your Curbside Appeal With These Tips  

Curbside appeal is more than making your home pretty; it can make or break a sale. You want to make your home as appealing and welcoming as possible so that potential homebuyers will be eager to see the inside. According to the National Association of Realtors (NAR), 63 percent of homebuyers who see a visually appealing house online will make an effort to stop by and visit. The first object any visitor sees is the exterior of a house. To make your home stand out in the market, follow these helpful tips on how to create a beckoning curbside appeal.

View Your Home as a Potential Buyer. Walk around the yard and the perimeter of your property with a critical eye. Drive by the house slowly in both directions and see if anything looks unpleasant or “off.” This view will give you a base to work with for improvements.

Look at the Roof. Your roof and gutters may simply need a good cleaning to make it appealing, but if the roof looks shabby, consider a replacement to increase the value.

Consider Your House Numbers. Be sure that your numbers stand out and are easily seen. Match the style of the number plaque to coordinate or contrast with the style of your home.

Pressure Wash. Nothing cleans a deck, driveway, or the siding of your house like a good pressure washing.

Plant Colorful Flowers. Color adds so much to your home's curbside appeal. Plant pretty flowers in pots on the porch, deck, and planter boxes. A pro tip: Never use fake flowers.

Freshen up the Trim. Paint the door trim, window frames, and shutters to brighten and freshen up your home overall.

Follow the above simple steps and your home will have great curbside appeal.

Source: HGTV

  Q&A: Home Energy Scores  

QUESTION: Why do I need to run a home energy audit on my home?

ANSWER: If you would like to save money on energy bills, reduce your carbon footprint, and have an energy-efficient home, a home energy audit will give you a base score so that you can see how much energy you are using.

Developed by the U.S. Department of Energy, the home energy score rating determines energy use and recommends ways to improve low scores. The scoring system runs from one to 10, with 10 being the highest energy-efficiency rating that you can achieve. Many HVAC companies perform home energy audits, and with the results, you can see ways to improve energy use and obtain a higher energy score rating.

Features of the Home Energy Score include:

  • Efficiency rating based on the home's floor plan, structure, heating, cooling, and hot water system.
  • Total energy use estimate.
  • Recommendations for cost-effective improvements and annual cost-savings estimate.
  • Your "Score with Improvements" showing how your score can increase with recommended improvements.
Having an energy audit is a realistic way that allows you to see how much energy you are using, and it comes with great recommendations to reduce your overall energy use in your home.

Stay tuned for more updates on the housing market, consumer behavior, and the latest mortgage news you need for your portfolio.

Source: U.S. Department of Energy


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