Rocky Mountain Property Group | VL 4 | July 2022

Rocky Mountain Property Group | VL 4 | July 2022

PROPERTYGROUP Rocky Mountain

JULY 2022 | VOLUME 4

Contents YOUR GUIDE TO VOLUME 4 1 Meet Meghan 2 Keller Williams 4 Recession, Inflation, & Normalization 6 Colorado In-Depth Housing Report 8 Types of Real Estate 9 Top Ten Traits of a Successful Real Estate Investor

13 Benefits of Investing in Residential Real Estate

14 Revive Med Spa Special

16 Things to do in Colorado Springs 18 Featured Non-Profit

10 12 Perks of Living in Colorado

Meet Meghan Meghan Kelly exemplifies integrity, hard work, extensive knowledge, and creative service in every detail of the real estate transaction. From the research and preparation to the follow-up long after the transaction

is complete. Her service and relationship are unmatched.

Meghan is a native, she grew up in the Colorful state of Colorado and has always had a heart for taking care of others. From an early age, Meghan volunteered at church and looked for opportunities to care for others. She got her bachelor's degree in Nursing out of high school and now takes care of her family of 5. Meghan uses her experience and foresight to proactively address every detail before an issue arises. Five words you can count on when working with Meghan Kelly... passion, commitment, responsiveness, professionalism, and fun!

ABOUT KELLER WILLIAMS

We’re #1. Holding the top spot in agent count, units, and sales volume, our sales force is one to be reckoned with. Home to the Tech-Enabled Agent, our business model equips agents with a technological edge and the ability to offer customers whatever they wish.

With expertise in real estate, entrepreneurship, technology, and more, our leaders have the tools to clear a path toward success.

Keller Williams has established and proven models and systems that set a framework for profitability in any market. More than just a “brand in a box” approach, we are staying true to who we are – a training and coaching company that offers the most successful models in the industry and the very best training and tools to our agents and offices across the globe.

Our mission is to build careers worth having, businesses worth owning,

lives worth living, experiences worth giving, and legacies worth leaving.

It looks like the mortgage industry might finally be on a path to normalization. The latest Freddie Mac 30-year fixed-rate mortgage average came in at 5.3%—that’s a half percent lower over the last two weeks. That drop did little to spur more mortgage activity, which might actually be a good thing. Mortgage demand has slowed considerably dropping nearly 5.5% week-over-week according to the Mortgage Bankers Association weekly survey. Home purchase applications were also down 4% for the week and 17% year-over-year. Keep in mind we are also comparing numbers this year to 2021’s record highs across the board, so the drops will feel more precipitous when they’re actually putting us more in line with what a ‘normal’ housing market would feel like. Seemingly insatiable demand is what started driving home prices rapidly higher during the pandemic as many families fled apartments in larger cities for homes in the suburbs. That created untenable bidding wars and drove home prices to extremely high levels. That, plus millions of homeowners refinancing their homes to lower rates and not selling, decimated inventory and only put stronger upward pressure on home prices. Our current climate of elevated home prices and higher interest rates has started to quell the demand which is allowing inventory to start coming back toward what’s considered healthy. The latest report from the National Association of Realtors showed existing home inventory sitting at 2.6 months in May, up from 2.2 months in April. Typically 6 months supply is considered a balanced market but this month-to- month increase is a big deal.

The caveat is that this drop in demand and interest rates trending lower are being caused by fears of an economic recession. As Freddie Mac’s economists note, “Over the last two weeks, the 30-year fixed-rate mortgage dropped by half a percent, as concerns about a potential recession continue to rise. While the drop provides minor relief to buyers, the housing market will continue to normalize if home price growth materially slows due to the combination of low housing affordability and an expected economic slowdown.” Last week we discussed the yield curve inversion and how flat the curve was at the end of June. Well in the first week of July, the 10- and 2-year Treasury note yields inverted and remained inverted for most of the week. That is a key indicator of a coming recession. The Federal Open Market Committee (FOMC) members have also made it clear, along with Federal Reserve Chairman Jerome Powell, that they are willing to sacrifice economic growth in order to control rampant inflation. It’s expected that the FOMC will vote to raise the federal funds rate at its July meeting by another 50 to 75 basis points. Minutes from their June meeting show that policymakers “recognized the possibility that an even more restrictive stance could be appropriate if elevated inflation pressures were to persist.” Powell has also said previously that the employment situation might also suffer as the Fed restricts monetary policy to control inflation. The June jobs report is not reflecting that quite yet as 372,000 jobs were added, according to the Labor Department. Economists had expected an increase of 250,000. The unemployment rate was unchanged at 3.6%. What’s important to remember about the jobs report is that the >Page i Page ii Page iii Page iv Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20

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