3 Most Interesting Charts and Graphs (for right now)
You remember how after going to the dentist as a kid, they had a treasure box with toys to choose from on your way out the door?
This article is like that treasure box, but instead of offering you trinkets, I have three interesting charts and graphs for you to choose from.
Read one, two, or all three.
Let me know which one is most interesting to you!
1. Slowly Unlocking the Golden Handcuffs
Unsure about the meaning of Golden Handcuffs? Watch this video.
”This week, the Federal Housing Finance Agency published data showing that 86.6% of outstanding mortgages had an interest rate below 6.00% in Q4 2023. That’s a slightly lower share than Q4 2022 (when 91.5% of outstanding mortgages had an interest rate below 6.00%).”
[reported by ResiClub]
We’ll continue to see this % decline as sellers either CHOOSE to or are financially FORCED to trade in their 3% rates for 6%+ when they sell and buy replacement homes.
Ever-changing life circumstances like the famous 7 D’s (Death. Divorce. Diapers. Downsizing. Diamonds. Distress. Deployment.) will keep the market moving slowly but surely back toward balance.
2. Population Growth & Loss in Colorado’s Biggest Counties
It’s no secret that Colorado has been a growing state for decades.
Interestingly enough, despite the craziness of the real estate market since COVID, it appears that most of the population movement has been people moving from one part of the state to another.
The rate of population growth is considerably slower now than it was in the 2000’s and 2010’s. Overall growth in recent years has been quite minimal.
In fact, Colorado has experienced growth below 0.7% annually each of the last four years (2020-2023), the slowest rate of growth since the state actually experienced four years of population decline during WWII. [source]
This recently slowdown in growth is most likely due to the rapid decrease in local affordability since 2020.
This will be a trend worth monitoring. Will our population start to decline?
Relatedly, what Colorado counties are growing the most? Here are the 21 most-populous counties in the state and how they have fared since 2020.
What sticks out to you about this report?
3. Gen Z’s Anticipated Reliance on Family for Down Payment Funds
Continuing with the theme of affordability in the market, Redfin recently released survey results which indicated a huge leap in buyer expectations to utilize family gift funds when buying a home.
According to a Redfin survey in 2019, just 18% of millennials used a cash gift from family to help fund their down payment in 2019, and the share had only increased to 23% in 2023.
2024’s survey inclusion of the younger Gen Z into the survey results (ages 18-27) DOUBLED the reported plans of using family gift funds from 18% to 36%, a sure sign that people are making adjustments to continue advancing a core component of the American dream - home ownership.
I find these trends fascinating - population movement, homeowner behavioral change to accommodate higher prices and interest rates, shifting expectations and values of younger generations and their families.
Understanding these trends is helping me become a better real estate agent, and I hope they help you become a more savvy homeowner and investor.
If you have a desire to buy or sell in the coming year, let’s chat.
Life has a way of keeping us all moving, and I’d love to be your real estate agent.
Contact me here to set up your free and confidential consultation.
Kevin
