Happy December and Happy Holidays

Happy December and Happy Holidays,

It’s never a good time for a furnace to die, but mine did this week while the temperatures were hovering in the 20’s.  It actually went out on Friday and my usual HVAC guy won’t work on the weekend. My son has a friend in the industry that was kind enough to come out and try to get it going on Sunday but it wasn’t fixable. Therefore, as of Tuesday, I am out 16k but have a brand-new furnace and air conditioner at my house.  I was pretty shocked at the price, but everything is more expensive these days. I should have listened to my instincts as I thought it was making a strange sound and I should have had it checked out before it went kaput.  I have so many great neighbors that loaned me their space heaters, so we were okay for a few days in a cold house.  Thank you Lori, Gary, Bill, Debbie, Susan, Dave, Kyle and Chelsea.

2023 was a year of legislation changes for the rental industry in Colorado.  There are 9 new laws that passed shifting more burdens to property owners while expanding the rights of tenants.  HHere they are:

• Pet ownership reduces a landlord’s ability to restrict certain types of pets in rentals.
• Portable screening reports requires landlords to accept tenant provided background reports directly from tenants rather than running their own report.
• Prohibited provisions in rental agreements disallows several lease clauses that had previously been standard in most lease agreements, removing landlord protections.
• Eviction protections for tenants complicated the legal eviction process landlords must follow.
• Habitability of residential residences increases the property condition requirements and allows tenants to break their lease without penalty in some instances.
• Drugs – increases the requirements landlords must follow in properties where drugs were illegally manufactured and creates a state database of those properties.
• Protections for tenants that prohibits landlords from considering a subsidized applicant’s credit score when processing a rental application, as well as several other restrictions on landlords’ ability to screen applicants.
• Disclosure of radon in leases now requires landlords to mitigate properties with elevated levels of radon.

While I think some of these laws are agreeable, I dislike the ones that give tenants more rights than landlords.  I once rented a condo to a man who then invited his girlfriend to live with him.  I wasn’t even aware of her until I found out they broke up; he moved out and she stayed. I didn’t even know her name.  No one was paying rent and I couldn’t get her out. My attorney said since my tenant had invited her to live there, she had the right to stay.  I had to spend a lot of money evicting her and lost a bunch on the damages she did.  Lesson learned.  It is now addressed in the lease.

For those navigating the real estate landscape in the Front Range, December offers a blend of opportunities and considerations that merit thoughtful exploration. Let's delve a bit deeper:

1. Interest Rates in Your Favor: Amidst the festive season, the real estate market is quietly offering a gift in the form of lower interest rates. This December, rates have dipped considerably from a couple months ago, creating an opportune moment for potential buyers to secure a mortgage with more attractive terms. Keeping an eye on this aspect can make a substantial difference in the overall cost of homeownership.

2. Increased Inventory for Thoughtful Choices: With approximately 2.5 months of inventory on the market, December provides a good balance of housing options. This allows prospective buyers to take a methodical approach, exploring various properties and neighborhoods before committing to a purchase. Whether it's the ideal location or specific features you're after, the current market conditions offer the luxury of choice.

3. Seller Concessions Reflecting Market Conditions: Sellers, recognizing the elevated inventory levels and fewer showings, may be more willing to sweeten the deal. Concessions, such as negotiable prices, interest rate buy downs, or paying all of some of buyer closing costs, are becoming more common. This buyer-friendly market dynami not only provides potential savings for buyers but also opens opportunities for negotiation and flexibility in the purchasing process.

For Sellers: It might make sense to wait. On the seller's side, adopting a patient approach and considering a post-holiday listing strategy could prove strategic. Here's why:

1. 
   Market Dynamics Shift After the First of the Year: As we transition into late January or early February, the real estate market experiences a notable shift. The environment becomes less favorable for buyers and more conducive to sellers. This period witnesses increased buyer activity and a decline in inventory levels, setting the stage for a potentially more competitive landscape.
2. 
   Capitalizing on Post-Holiday Buyer Surge:By opting to list your property after the holiday season, sellers position themselves to tap into the customary surge in buyer activity that characterizes the early months of the year. This influx of prospective buyers can contribute to faster sales and may attract more competitive offers, providing sellers with an advantageous position.

In summary, December in the Front Range real estate market invites both buyers and sellers to navigate the intricacies with a discerning eye. Whether you're looking to capitalize on current buyer-friendly conditions or strategically planning for the new year, a well informed and patient approach can pave the way for a successful real estate journey.

Feel free to call me with any of your questions!