The Denver Metro market continued to normalize in October.
Active inventory declined slightly to 7,290 homes on the market at month’s end. However, this is an increase of 115.94 percent year-over-year. While this number reads as a jump, the current inventory is still less than the pre-pandemic inventory numbers of 8,557 active listings in October 2019.
Rising inflation and interest rates are changing the landscape of the market, showcased in new listings. New listings coming on the market declined 26.73 percent from last month and 27.92 year-over-year. As a result, Denver Metro saw its first small decline in average and median sales prices last month. However, sale prices skyrocketed over the last two years so as a result, the market is well ahead of historical appreciation metrics of where the Denver market would likely have been in fall 2022 had it not experienced a pandemic-fueled buying frenzy.
The Luxury Market saw the number of new listings and closings decrease dramatically, and the close-price-to-list-price ratio increase from the previous month.
Throughout the month of October, listings decreased by 28.69 percent compared to the previous month. There has always been seasonality in the market and a decrease in active listings is consistent with the past. The value of houses is about the relationship between supply and demand. While supply did drop dramatically, the amount of closed properties decreased by 31.52 percent compared to September.
The market shift changed the dynamic between sellers and buyers.
Months of inventory for single-family detached properties is 3.43 and for attached properties is 3.08. The Luxury Market has the highest months of inventory of any price point. This change shows that the demand for this type of property has proportionally decreased more than the supply has. The increased months of inventory translated to buyers having more negotiating power with appraisal and inspection clauses back in contracts.
The Northern Colorado market continues to adjust with opportunity present.
October data reflects the Northern Colorado real estate shift to a more normal market with added opportunity for buyers. Compared to last October, inventory continues to go up and some sellers are making price reductions.
Fort Collins detached homes sales volume decreased more than last month.
In comparison to 2021, closed sales decreased from $119,702,347 to $93,759,319 in October 2022. 136 detached homes were sold in October 2022 compared to 198 in 2021, a 31.31 percent decrease. A more significant decrease from prior year than the previous month saw.
Berthoud also experienced a decrease in their detached homes total sales.
Closed sales decreased 51.62 percent, a marked change from the prior month’s slight increase. The average sales home price increased, however, by 4.82 percent, from $663,944 last year to $695,948. Attached homes experienced a slight decrease in total sales volume from 2021 to this month.
Meanwhile, Timnath saw another increase year-over-year in detached homes sold.
Following a month-to-month trend, Timnath’s detached market went from 11 homes sold in October 2021 to 13 homes in October 2022, an 18.18 percent increase. In its attached market, Timnath also experienced an increase from 0 in 2021 to 8 in October 2022.
Boulder saw a significant decrease in sales volume year-over-year.
In the detached market, the total October sales volume went from $363,164,758 in October 2021 to $195,107,789 in October 2022, a decrease of 48.86 percent. The attached market also saw a decrease in closed sales from 136 in October 2021 to 90 last month.
Loveland followed the trend with another decrease in detached average home sales.
In Loveland’s detached market, residents saw 118 sales in October 2022 versus 145 in October 2021, an 18.62 percent decrease. Yet the average sales price for a detached home increased slightly from $559,971 in 2021 to $568,937.
In what hopefully feels like “a return to normal” for Denver residents this holiday season, the city’s fall and winter months are filled with some of The Mile High City’s most enjoyable events as they all come back to in-person this year! From downtown holiday markets to Cherry Creek light shows and even Denver Fashion Week, there are many options for locals to choose from that will even get the biggest “grinch” out of the house and excited for a day or night on the town. Here are our top recommendations.
Pixar Putt: thru November 27, 2022
Located at McGregor Square, Pixar Putt is a pop-up, open-air mini-golf experience made up of 18 interactive holes inspired by… you guessed it: the stories, characters and icons from some of Pixar’s favorite films, including “Toy Story,” “The Incredibles,” “Monsters, Inc.,” “Finding Nemo,” “Coco,” “A Bug’s Life,” “Wall-E” and “Inside Out.” Whether it’s a date night or trying to entertain the kids, this will appeal to all ages.
At the beautiful Butterfly Pavilion in Westminster, the majestic butterflies hold an especially significant spot as one of the essential symbols in the Mexican tradition of Día de Los Muertos, or Day fof the Dead in early November. Butterfly Pavilion celebrates this cultural tradition by opening its doors and providing a peaceful and enchanting experience for all who wish to marvel at the monarchs.
Tinseltown is coming to Zeppelin Station, right as winter descends on us! At the all-encompassing Christmas-themed pop-up, anticipate Santa, elves, presents, tinsel, festive tunes and lots of warm winter drinks, including a yummy Christmas cocktail menu for those who partake. The halls will also be fully decked with baubles, bows, hanging trees, wreaths and just about every festive goodie ever! Tickets include entry to the themed bar and a themed drink upon arrival.
Held at the Colorado Convention Center, and now in its 19th year, the Colorado Country Christmas Gift Show is the largest holiday gift show in Colorado, with more than 200 vendors of unique gifts, handmade items, specialty foods and more! Join in the festive fun and get pictures with Santa, visit Hammond’s Candy Land and watch model trains wind through holiday villages.
Named “one of the fastest-growing American fashion platforms” by Forbes Magazine, Denver Fashion Week (DFW) is returning for another fall season and in true DFW fashion, they’re making this season bigger and better than the last. They’ve added a new and amazing venue, more designers, more shows, new runway show concepts and upgraded runway production.
This highly attended annual curated marketplace on 16th Street Mall features an awesome selection of one-of-a-kind seasonal items, high-quality handcrafted goods, fabulous holiday gift ideas, delicious specialty foods, home décor and unique holiday gifts. While you shop, enjoy Christmas carolers, live entertainers and appearances by Santa!
The free Cherry Creek North Holiday Market at Fillmore Plaza features 30 local artisan vendors, live music, and festive drinks and decor. Also, savor the season with a musical light walk under millions of twinkling lights. Children of all ages and parents alike will enjoy searching for eight sparkling trees that are choreographed to winter melodies in a beautifully timed show.
Every night except Mondays, at 5:45 p.m. and 6:45 p.m., an eight-minute choreographed light and music holiday show will light up the night at the City and County of Denver Building in Civic Center Park.
Following that, it will then go to a festive, static holiday display until 10:45 p.m. There will be a special light schedule on December 3 as well, to highlight activities as the 9News Parade of Lights begins in front of the City and County Building. Be there when the magic begins with the Light the Lights Celebration on November 23 from 4:30–5:30 p.m. Denver7 News Anchor Anne Trujillo will host this year’s program which will feature live holiday music performed by the Denver Municipal Band. At approximately 5:15 p.m., Mayor Michael B. Hancock will flip Denver’s giant light switch which will turn on the first holiday light and music show of the season.
As the Denver market normalizes, we are grateful that there remain many opportunities to look at the silvering lining of the industry. The evolving marketplace allows buyers, particularly luxury buyers, the gift of time to decide on a home while negotiating terms that suit their needs and dreams. Meanwhile, sellers have more time to analyze the marketplace to position their homes correctly while being able to experience a great return on investment due to rising prices over the last few years.
As of late, we’ve noted that 2022 is constantly compared to 2021, which was anything but normal, and year-over-year comparisons are painting a deeply negative picture which causes confusion in the current market and what next steps to take. Below, we are focusing on dissecting some of the whispered misconceptions that we have been hearing of from our buyers, sellers, and other industry professionals in hopes that it helps potential buyers and sellers, particularly in the Luxury Market, make more informed decisions as we head into 2023.
Overall in the market, active inventory did slightly decline to 7,290 homes on the market at month-end, but this doesn’t mean what you think it might.
The misconception here being that many are not acknowledging how this relates to the pandemic’s affect on housing. While this is a staggering jump, and increasing inventory continues to make news, we would like to point out that the current inventory is still less than the pre-pandemic inventory of 8,557 active listings in October 2019. As our market readjusts, both in luxury and overall, we have to bring into consideration that the last two years of COVID-19 have been more of the exception, and not the rule.
Our CEO, Gretchen Rosenberg, pinned an article on Kentwood’s website in August explaining: “Do you remember what the interest rates were in 2018? The average that year was 4.54%, but they got up to 5%. Not altogether that far off the rates today as I write this. Again, 2020 and 2021 were not usual or customary, they were a reaction to a once in a lifetime black swan event.”
If COVID-19 had not occurred, records from DMAR also conclude that the market trajectory is on pace with where it should’ve been back then.
The market is crashing and as a result, the Luxury Market saw a decline in closed properties and new listings this month, meaning buyers have all the power.
This statistic has some startled, however, our point of view is that there has always been seasonality in the market and a decrease in active listings is consistent with the past. The value of houses is about the relationship between supply and demand. While buyers may think they have negotiation power in this market right now, it’s a bit of a misconception because many sellers are hesitant to drop their price too much, which is why the close-price-to-list-price ratio in October was 98.72 percent. We suspect November will represent a similar flow as October.
When buyers say that they want to wait until the New Year to buy, this rarely means January 1st.
While this may not be a “current market” misconception, and more a “November and December misconception,” it’s worth noting that this time of year brings a slow down with the holidays that continues into early spring. When people state that they are going to “start looking” for a home, it usually really begins around the third week in January or later.
We continue to still see bidding wars in the Luxury Market.
While bidding wars are certainly not as common, there’s a misconception that they are obsolete and that is not the case. We have heard of buyers that had to compete on a million-dollar house that went above the asking price. Each listing will always dictate its own story. The key to receiving multiple offers in this market is to price conservatively.
“Houses are no longer selling themselves … but if you wait til spring you’ll be fine.”
On the flipside, homes are not selling themselves in quite the same manner but the misconception we’re starting to see is reflected in how few new listings there were last month in the Luxury Market. We stand by the recommendation that it’s still important to remember to invest in photography, staging, and open houses, plus have a price reduction strategy ahead of listing.
If you plan to wait to sell until spring, do not hold off on the updates.
On the contrary, plan ahead of time to do all the “little” updates necessary to sell your home quickly. Include replacing light bulbs, painting, servicing the HVAC, getting carpets cleaned, repairing screens and decluttering on their home maintenance project list. Other recommended fall home projects include:
● Paint the exterior of the home
● Aerate and overseed lawn
● Clean the gutters
● Winterize sprinklers
● Repair the roof, if needed
Whether you’re looking to buy or sell a home, reading past the headlines and hyperbole is key. Having an experienced Kentwood Real Estate Broker who knows what’s happening in the housing market can help you make an informed decision. Other team members who will be valuable as you go through the process: Prosperity Home Mortgage and HomeServices Insurance. Our partners who we trust to help you dissect the news and apply it to your life decisions.
The snow has finally come down in Colorado which means ski season is back! If you’re itching to head to the mountains and hit the slopes, here are some of the best spots to ski and snowboard in Colorado this winter. And if skiing and boarding aren’t your thing, the resorts and nearby towns in the area have plenty of other winter activities and atmospheres to offer for those who are sitting this season out but want to be part of the crowd.
Only a 45-minute drive from Denver lies Keystone, a ski resort hosting three mountain peaks that covers roughly 3,148 skiable acres. Known for its winter activities, Keystone provides access to skiing, snowboarding, snow tubing and snowmobile tours. Whether you are a beginner on the slopes or an expert looking for treacherous terrain, Keystone welcomes all.
Winter Park is the fourth largest ski resort in all of Colorado with a vertical drop of over 3000 feet. This resort prides itself on one of its three peaks, Mary Jane Mountain. This specific mountain is famous for its natural bumps and world-class tree riding. So if you are looking to find some tree lines this winter, Winter Park is the place to be starting on opening day, November 16th. Winter Park is also well known for its restaurants and shops so there are plenty of options for families.
As one of the highest elevated ski resorts in North America with a summit at just over 13,000 feet, Loveland averages over 400 inches of snowfall a year making it known for some of the best skiing in Colorado. Unlike other Colorado ski resorts, Loveland is made up of two distinct bases; Loveland Valley provides for beginners and Loveland Basin is recognized for its expert terrain. Having opened on Nov 3rd, Loveland awaits skiers and riders of all skill sets to join them on the mountains. If you’re taking the day off, head to the nearby breweries and restaurants in town that will be sure to keep you company until your friend or loved ones get off the slope.
Commonly called “The Legend” by locals because it attracts so many expert skiers, Arapahoe Basin hosts one of Colorado’s longest and steepest runs, Pallavicini. Overall, the terrain is rated 7% beginner, 20% intermediate, 49% advanced and 24% expert. If you find yourself craving a little extra adrenaline during your ride, or think you’re skilled enough to step up your game, Arapahoe Basin is where you need to be.
Non Skiers should probably sit this one out as there’s not a whole lot around the area to do if you’re waiting on someone to finish their run.
Home to the highest elevated chairlift in North America, Breckenridge bounds a staggering five peaks to ski or ride. Along with its massive ski area, Breckenridge is also known for its luxury resorts, stunning mountain views, and exceptional Breckenridge Bowl. Welcoming skiers and riders of all types, Breckenridge invites you to join them on their opening day, November 12th. Have a beer or enjoy the food at The Overlook. Located atop Peak 9, The Overlook is easily accessible from either the Beaver Run SuperChair or the Mercury SuperChair and has a stellar view of the mountains.
From green to double black diamond runs, there’s a slope and ski resort for everyone in Colorado. These are our season’s top picks; visit as many as possible to find fresh snow and your relaxing resort this winter!
As the Denver real estate market continues to change, the question on everyone’s mind is whether or not we are in a buyer’s market. Traditionally, a market with less than three months of inventory is considered a seller’s market. In direct relation to that, a market with more than six months of inventory is considered a buyer’s market, which means that three to six months of inventory is defined as a balanced market. These benchmarks help define the current Denver Metro market, which is changing.
The $1 million and over segment for attached homes is at 2.83 months of inventory. Using months of inventory as a metric indicates that Denver Metro is moving toward a balanced market and Luxury Market sellers are focused on getting their homes on the market, and it shows.
New luxury listings were up 18.86 percent from August, with a total of 649 homes priced over $1 million hitting the market in September. The attached Luxury Market saw a massive increase in new listings, up a notable 66.67 percent from the prior month. With 5,962 new listings hitting so far this year, the Luxury Market is enjoying the highest amount of inventory in years.
Luxury buyers also have more time to decide which luxury home to buy. Both detached and attached markets saw a significant increase in the average days in the MLS from August, up 31.82 percent or 29 days for detached, and 40 percent or 35 days for attached. This slowing market is echoed in the drop in pending sales in September, which decreased by 16.35 percent for detached homes and 8.33 percent for attached.
The spring frenzied bidding wars also seem to have subsided. The close-price-to-list-price ratio dropped below 100 percent again this month, to 98.21 percent for detached and 99.30 for attached. Although the detached Luxury Market enjoyed an annual appreciation from a price per square foot perspective of 9.41 percent and a flat month-over-month appreciation, the attached market suffered a decline in annual appreciation of 0.18 percent and an even bigger decline month-over-month, by 5.26 percent.
The Northern Colorado market continues to show a seasonal adjustment amidst economic factors. The data continues to confirm that the Northern Colorado area has shifted to a much-needed and more even playing field. Compared to last August, inventory continues to go up and the northern market continues to see price reductions.
Fort Collins detached homes sale volume decreased by 13.41 percent, keeping with the trend of the last few months. In comparison to 2021, the decrease went from $126,426,514 to $109,470,816 in September 2022. However, 161 detached homes were sold in September 2022 compared to 215 in 2021, a 25.12 percent decrease. Attached home sales were also significantly down from the previous year, from 88 in September 2021 to 54 this year, a 38.64 percent decrease overall with the sales volume decreasing 25.04 percent from $29,935,459 in 2021 to $22,439,395.
Berthoud, on the other hand, experienced a slight increase in their detached homes price total sales. At $21,062,909 in September 2022, versus $22,366,438 in September 2021, this was a 6.19 percent decrease. The average sales home price increased significantly as well, at 28.94, from $619,497 last year to $798,801. Attached homes, however, experienced a dramatic decrease in total sales volume from $2,250,000 in 2021 to $434,000 this month due to only one attached sale for the month.
Meanwhile, Timnath saw a substantial increase year-over-year in detached homes sold. Bucking a month-to-month trend, Timnath’s detached market went from 17 homes sold in September 2021 to 21 homes in September 2022, a 23.53 percent increase. In its attached market, Timnath also experienced a dramatic increase from 0 in 2021 to 8 in September 2022.
Boulder saw a massive increase in detached sales volume year-over-year while seeing a decrease in detached home sales. In the detached market, the total September sales volume went from $16,590,706 in September 2021 to $111,755,188 in September 2022, an increase of 573.60 percent. However, the attached market saw a decrease in sales again from 80 in September 2021 to 56 this month.
Loveland saw another decrease in detached average home sales. In Loveland’s detached market, residents saw 168 sales in September 2022 versus 125 in September 2021, a 25.60 percent increase, with the average sales price for a detached home increasing from $564,364 in 2021 to $596,663.
With football season in full swing, we are five games into the season, with three losses and two wins. Broncos’ fans are hopeful for the season ahead with new quarterback, Russell Wilson, leading the charge. The five scheduled prime-time games, four more than originally planned, shows just how excited Broncos’ country is for the recent changes to the team.
Unfortunately, where we stand today, Javonte Williams, the Broncos’ leader in carries and rushing yards, will miss the rest of the season due to a knee injury from the latest game against the Las Vegas Raiders, and starting outside linebacker, Randy Gregory, is also expected to miss at least four games due to a knee injury. Fortunately, Williams and Gregory will be replaced by Mike Boone and Melvin Gordon III in the meantime as they prepare for their upcoming game against the Los Angeles Chargers. The next home game is scheduled for Sunday, October 23, against the New York Jets, leaving fans with five more home games to look forward to.
A staple for the Colorado community, home season Broncos games are a can’t-miss event. From tailgating with friends and family outside the stadium to the infamous Barrel Man, jet fly-overs, great eats, and the musical presence of the Broncos Stampede, you will be sure to enjoy a well-spent Sunday.
We recommend getting to the stadium early as parking will be sure to fill up. Since Uber has become increasingly expensive on game days, RTD offers a light-rail service directly to the game on E and W lines for convenience. If you live in surrounding areas, the RTD also provides bus service directly to Union Station where you can transfer to these lines for easy access to the stadium. You can purchase tickets beforehand through the following link or look for last-minute discounts via the GameTime app! https://www.denverbroncos.com/tickets/singlegametickets
It’s October in our beautiful state and we are in the thick of fall. At the first hint of changing leaves and beanie-wearing temperatures, Coloradans begin their search for autumn adventures. Here are upcoming events you can visit this month in the Northern Colorado area. Plan a weekend around these festivals to celebrate in grand style, or just check out one for the day… and don’t forget to order that pumpkin latte for the car ride!
Poudre Pour in Windsor – October 15 This October 15, join the Poudre Heritage Alliance at the Windsor History Museum from 1-5 p.m. to learn about the heritage of Cache la Poudre River with live music, beer tastings and food trucks. Kids are also welcome as there will be storytelling, a vintage fire truck ride and interactive exhibits. Beer-tasting tickets are $45, 18+ general admission is $10 and children under 17 are free with a guardian.
Pumpkins on Parade in Fort Collins – October 20-23 From 6-9 p.m. on October 20 through October 23, visit the Pumpkins on Parade in Fort Collins to see hundreds of carved pumpkins at the Gardens on Spring Creek. This event also encourages costumes! Tickets are free for ages four and below, $5 for kids ages 5-11 and $12 for any age above.
Northern Colorado Home Show in Loveland – October 21-23 For a whole weekend, this October from 10 a.m. to 5 p.m., the Northern Colorado Home Show will be hosted at the Ranch Events Complex in Loveland. This show features vendors who specialize in all things outdoor living, in-home decor and even DIY items. This event will be fun and educational for any homeowner looking to add something new to their space in the fall.
Harvest Night Fun Run and Fall Festival in Loveland – October 29 Are you into running? Enter the two-mile run this October 29 from 2-5 p.m. at North Lake Park in Loveland. With a relaxed and easygoing atmosphere, participants can run (or walk) in the race followed by activities everyone can participate in like a festival featuring food trucks, live music and a costume contest!
Treatsylvania in Fort Collins – October 28-30 Each year, Treatsylvania hosts thousands of children and adults for their largest annual fundraiser at The Farm at Lee Martinez Park, Fort Collins. Join the festivities this October 28-30 for an adventure through a make-believe Halloween Town featuring over 40 different stores for children to gather their treats, go on hayrides, eat food and more! Tickets for entry to the event are just $7 for kids and free for adults from 5:30-7 p.m. on Friday, 5-7 p.m. on Saturday, from 1-3 p.m., and 5-7 p.m. on Sunday.
With events and activities for all ages to enjoy this October, don’t miss out on all of the fun fall activities in these Northern Colorado towns.
Figuring out how to price your home when preparing to sell puts many into a classically coined “Goldilocks” situation; you don’t want to set the price too high and scare off potential buyers, but you also don’t want to sell too low. In our shifting Luxury Market of today, it creates a quandary. Proper pricing can provide more exposure to buyers, expedite the home sale process and it prevents your house from sitting on the market for too long. Here are a few pricing strategies to consider when deciding how to price your home for this market.
Be Cautious of Overpricing Though it’s easier said than done, you want to avoid overpricing your home. We know that the past couple of years felt like anyone could price their home for nearly anything and expect a bidding war, but those days are slimming. Potential buyers may not see the listing if it is priced too high or they may ignore it altogether. In other words, buyers have some leverage again. Overpricing can also cause the property to sit on the market for too long and become “shopworn”, causing it to sell for less down the road. Since most of the activity around your home’s sale occurs within the first week or so, it’s vital for it to be properly priced and create that sense of urgency in the buyer’s mind.
Watch the Seasonal Market Shifts The season you decide to sell your home during can have an impact on your home’s sale. In Denver, homes sold in early March saw sales for $30,000 over the listing price. Monitor the home selling trends throughout the four seasons, as you may see buying patterns shift before your eyes. For example, you may see a surge in home sales during the end of autumn as people are eager to purchase and move in quickly before the first major snowfall.
Sale Price Doesn’t Always Mean List Price The price you list isn’t always the sale you get. Buyers will often make an offer that’s slightly lower than your asking price, and then it is up to you whether to accept, deny or begin negotiations. But it doesn’t stop there. Once the buyer has the house appraised and inspected, they may ask for a price reduction to cover any issues that were uncovered along the way. It’s important to set a price that takes these potential reductions into consideration, without also overstretching and setting the price too high.
Don’t Forget the Internet Thanks to the internet, we have access to tons of property data at our fingertips. You can find out when your home was built, the last sale price of your home, look at current real estate market trends and even get a free home value estimate. The free estimate may be a good starting point to work from if you are in the very early stages of selling. Though it may not become your exact listing price, it will provide you with a general idea of your home’s value and how you stack up to other houses sold in your area.
Shop Your Competition To ensure you are pricing your home in the appropriate range, observe how other properties similar to yours have sold recently. The houses should be around or very close to your own in terms of size, type, age and in the same location. While you can do some of this research yourself, our expert brokers at Kentwood can prepare this for you as well during the home selling process.
There are many different factors that play into pricing your home appropriately. If they are all taken into thoughtful consideration when determining the listing price your chances of a speedy and successful home sale will skyrocket. If you are ready to put your home on the market, contact one of our experienced Kentwood brokers today at Kentwood.com.