Colorado Real Estate News

Denver Market Trends

After months of appreciation, negotiations and bidding wars, modest numbers in June ruled the market.
The housing market ended May with 3,652 properties on the market, representing an increase of 448 properties from the previous month-end, which is seasonally on trend. Closed sales increased 3.75 percent from the previous month, moving supply and demand closer toward balance.

Attached and detached properties had a similar balance of supply and demand in May.
Both markets had the highest amount of standing inventory in the $500,000 to $749,999 price points. The biggest difference was the proportion of inventory. For attached properties, this price range made up 29.87 percent of the market. For detached properties, it made up 41.72 percent of the market. There are over four times more single-family detached properties between $500,000 and $749,999 than attached properties. 

Year-to-date, the market has seen 7.18 percent fewer homes closed than the previous year. 
Even with fewer units purchased, the market has transacted over $1 billion more in sales volume than YTD in 2021, indicating how prices have soared from last year. he close-price-to-list-price ratio of 105.33 percent, while down from the previous month, illustrates how competitive the overall market remains.

Luxury buyers saw their options increase in May.
Luxury inventory went up 5.86 percent from April and a significant 65.95 percent higher than the same month last year. Pending luxury sales were also up, along with closed sales and sales volume. More choices turned into more pending sales, up 22.20 percent month-over-month and up 27.37 percent year-to-date.

Detached homes sold for an average of 107.12 percent of list price, down slightly from April’s 108.39 percent.
Meanwhile, the condo and townhome Luxury Market is currently selling at 104.94 percent of list price. Still a competitive market, but less so than for single family residences. 

* Updated as of June 7, 2022. 

Colorado Real Estate News

Denver Market Trends

Inventory growth in the Luxury Market.

Buyers in the Luxury Market should be pleased to see the largest rise in inventory of any price point. With a 58.22 percent increase in the detached market and a 60.53 percent increase in the attached market for homes available for purchase from February to March, buyers in the $1M+ range should be relieved from a historically tight market. But bidding wars have continued with the average luxury home price increasing 7.8 percent month-over-month with an average of 7.66 percent of homes going over list price.

Sales prices continue to grow.

With average sales price reaching $705,812 and month-end active inventory growing 81.16 percent from February to March, demand may decline due to increased interest rates. 995 listings hit the market at the end of the month which might have the potential to aid in balancing out supply and demand. This 43.7 percent increase will serve to balance the accelerated price appreciation that has recently taken place in the market.

Sellers need to stay grounded.

As homes continue to sell for over the asking price, sellers need to keep in mind that buyers can sense when a home is worth less than what is listed and this is expected to be reflected in the market. With rising prices, buyers will feel the market is reaching its peak and wait till prices stabilize.

*Written April 6, 2022. Updates may be available after this date.

Colorado Real Estate News

Northern Colorado Market Trends

North Colorado Market Saw a Decrease in Homes Sold Across the Board. BUT…

Don’t be fooled. Median home prices still increased as we head into our spring market.

Fort Collins detached homes were selling for a median price of $676,008.

Fort Collins detached homes on average sell after 35 days on the market compared to 47 days last year. There were 146 detached homes sold this March, down from 191 last year, meaning the sales volume was down 14.14 percent. Attached homes in Fort Collins saw a similar story, with attached homes seeing 39 sales in March 2022 versus March 2021 at 75. Sales volume saw a decrease of 33.05 percent from $26,745,304 to $17,905,085.

Average days on market decreased significantly year-over-year for detached and attached homes in Berthoud.

Berthoud’s detached market experienced a 32.35 percent decrease from 68 days in 2021 to 46 days in 2022, and its attached housing market saw less of a dramatic decrease but still experienced a 6.06 percent decrease from 99 to 93.

Meanwhile, Timnath saw another drastic decrease year-over-year in homes sold.

Timnath’s detached market went from 25 homes sold in 2021 to 15 homes, a 40 percent decrease. In its attached market, Timnath also experienced a drastic decrease in home sales at 39 versus 138 days in March 2021, a 71.74 percent decrease. All together, Timnath had 18 total sales for the month.

Boulder unsurprisingly saw a large increase in sales volume year-over-year in detached and attached homes.

In the detached market, the average sales price climbed from $1,450,421 in March 2021 to $1,732,282 in March 2022, an increase of 19.43 percent. The attached market saw an increase of 30.28 percent from $557,559 to a staggering $726,390.

Loveland saw a massive drop in detached sales but continues to show its desirability.

In Loveland’s detached market, residents saw 100 sales in March 2022 versus 175 in March 2021. However, the average sales price for a detached home rose from $9,100,750 to $11,901,786. Meanwhile, their detached market saw a 19.94 percent increase from $457,107 to $594,958 in March 2022.

*Written April 6, 2022. Updates may be available after this date.

Colorado Real Estate News

April: Fair Housing Month

April is Fair Housing Month and it’s imperative to remain educated about this topic. Discrimination in the real estate industry is prevalent in people’s daily lives. Keep reading to find out more and ways you can educate yourself and help to solve this ongoing issue:

History of Fair Housing Month

On April 11, 1968, President Lyndon B. Johnson signed the Fair Housing Act of 1968, therefore commemorating fair housing annually in April. The Fair Housing Act prohibits discrimination based on race, religion, gender, national origin, disability and family status. Since its inception, it has helped working families of all races and backgrounds find affordable housing, helped break patterns of segregation and bring diverse communities, but there is still more to be done. To help the development of the Fair Housing Law, the US Department of Housing and Urban Development was created.

It can be difficult to want to educate ourselves on things that don’t directly affect us, but fair housing is incredibly important and something that affects those around us. There are many ways you can educate yourself. Check out these video, podcast and book recommendations from the National Association of Realtors®:

Video Recommendation:

“Why Cities are Still So Segregated” from NPR

In this short, six-minute video, Gene Demby from NPR’s Code Switch explains why some neighborhoods remain still segregated today.

Podcast Recommendation:

The Red Line: Racial Disparities in Lending from The Center of Investigative Reporting

In this podcast episode, reporters analyzed 31 million government mortgage records and found that people of color were more likely than white people to be denied a conventional home loan in 61 metro areas.

Book Recommendation:

“Sundown Towns” by James W. Loewen

Loewen sheds light on the racial exclusion in America. He uncovers what he calls “sundown towns,” which are exclusively white towns where it was an unspoken rule that black people were not welcome.

Residential segregation in America did not happen by accident. Hence, April is a great month to look internally to ensure that you are providing inclusive communities to your clients. We all have an amazing opportunity to be a part of the solution.

The NAR website has fantastic resources for you, and the Denver Metro Association of Realtors® is hosting their first annual Housapalooza event on April 23. Housapalooza is “the must-attend event for first-time homebuyers and sellers in metro Denver.” They have phenomenal speakers including Albus Brooks, Former Denver City Council President and event host, Ryan Haarer, Former TV Newsman for 9News. Fair housing matters year-round, but April is a great month to reevaluate your practices and identify how you can be a part of the solution.

Kentwood Real Estate is constantly striving for equality in everything we do. Our Diversity, Equity and Inclusion Councils have been working to introduce equality and diversity throughout our brokerage. Our Kentwood Cares Foundation was created to support our internal Kentwood community of employees and brokers and external community of nonprofit organizations. We are here to help and support our community in anyway we can.

Colorado Real Estate News

Easy Ways to Prepare Your Home for a Spring Sale

With the Denver real estate market setting historic numbers, you may be considering listing your home on the market or preparing to sell. There are easy ways to get your home ready for sale this spring and minor renovations that will pay for themselves upon closing.

Let natural light flood your home.

Natural light opens up spaces and brightens the overall mood of your home. We recommend raising shades and opening curtains to let the sun in rather than trying to keep it out during spring showings and open houses.

Fix what’s broken.

An inspection of your home can help you identify anything broken you may have overlooked when checking yourself, allowing you to repair accordingly. Little things like a loose doorknob or creaky windows can stick out to potential buyers and make them think, “what else is broken here?” Repair what buyers may notice, which is everything, and other things on your renovation to-do list. After all, homebuyers who make an offer will get your home inspected, and it is beneficial to get a jump on repairs rather than giving buyers any wiggle room to negotiate.

Renovate what is outdated.

If your kitchen or bathroom screams 1980s and may give buyers flashbacks, they should be updated before you start showing your home. Updating fixtures like bath faucets, towel racks and cabinets will speak volumes for your home. Just remember that on most renovations, you won’t recoup all of your costs dollar for dollar.

That’s why it’s important to think small with renovations. Rather than replacing your kitchen cabinets, just replace the doors or knobs and give the cabinets a fresh coat of paint. Rather than replacing the bathtub, reglaze it to make it look as good as new. If you’re going to spend serious money on renovations, we recommend focusing on the exterior of the home. This is the very first impression buyers get of your home, so you should make it count.

One renovation that pays for itself and boosts a visual appeal to homebuyers is a garage door replacement. On average it costs $3,600 but nets a 97% return on the investment. Another eye-catcher is stone veneer on the exterior of the home which is a costly upgrade but can boost the overall listing price and has a 95% return on investment.

Other minor adjustments such as applying a new coat of paint to the interior are a relatively cheap and easy way to give your home an instant facelift. If the current colors of your walls aren’t all that flattering, consider repainting with neutral, white and gray colors. These are generally the best paint colors to pick from. Anything more vivid may appeal to a few buyers but not a wide range.

One final way to prepare your home for sale is to pay attention to odors. The smell of pets, cooked food and dirty laundry can make buyers reconsider their thoughts on your home. Carpets, throw rugs and other fabrics like curtains hold odors. We recommend having your carpet professionally cleaned before putting your home up for sale. The addition of fresh-cut flowers to your home during a showing or open house can also add a natural scent to your home.

Completing these easy steps will not only prepare your home for sale this spring, and it will also help your property stand out against other homes on the market. At the end of the day, it’s the

little things that can make or break a buyer’s decision. Contact one of our experienced Kentwood brokers for help with your spring home sale at kentwood.com.

Colorado Real Estate News

Denver Market Trends

Lack of inventory and sales in 2022 lead the market narrative.

In 2022, the market has seen a 12.44 percent decrease in listings from last year. In February of 2021, 8,761 properties hit the market, and currently only 7,617have this year. With a compounding effect of low supply and a surplus of buyers, not only has there been a 13.31 percent decrease in closed properties but with prices rising exponentially, there’s been an unprecedented close-price-to-list-price ratio of 104.75 percent. 

The Luxury Market is staying strong.

February continued to be a great month for the Luxury Market. Over this past month, sales volume for detached homes has increased 43 percent, while attached homes grew over 32 percent. Not to mention there have been 114 new listings of $1 million dollar homes since February, but as demand continues to rise those listings will be closed shortly. In February, 97 percent of new listings went under contract, and the Luxury Market has less than two weeks of inventory for both attached and detached homes.

Pandemic stresses supply chains while demand hits an all-time high.

The Luxury Market could feel the impacts of the Russian Invasion of Ukraine. As a result, more people will begin to sell stock to purchase a new luxury home, but with the volatility of current financial markets, many new home buyers may reconsider. With increasing interest rates, market instability and inflation, this may be the best time to capitalize if you are in the luxury home market.

Attached and detached homes leaving MLS quickly.

Most attached and detached homes will go under contract within the first week of hitting the market. In fact, the median days that detached homes spent in the MLS was around five days with attached homes being even less with just three. Last month, the close-price-to-list price was up 3.61 percent month-over-month and up 5.84 percent year-over-year. For attached and detached homes over $1 million, new listings shot up over 17 percent.

*Written March 4, 2022. Updates may be available after this date.

Colorado Real Estate News

Denver Market Trends

Throughout the ebbs and flows of 2021, interest rates remained low and buyer demand stayed high. 

DMAR found there were more homes purchased in 2021, 63,684 more than any previous year. While demand was at an all-time high, the number of new listings that hit the market throughout the year was down 5.26%, which is one of the reasons why the market ended the year with another historic indicator: month-end active listings. 

At the beginning of January, there were only 1,477 active properties on the market.

That is 11,175 fewer houses on the market than normal. Based on the sustained demand for housing and lack of inventory, the market is projected to see double-digit appreciation this year, which it has not seen in back-to-back years of double-digit appreciation since 2015-2016 and 1998-2000. 

In the Luxury Market, Denver Metro prices continued to climb. 

More homes are entering the ranks of the Luxury Market every month as demand continues at a quick pace. Within the past two years, the number of homes that sold within the Luxury Market more than doubled. The single-family segment of the market closed 4,672 single-family homes, a 53.99% gain year-over-year, while the attached segment experienced a 140.46% gain with 630 homes sold.

During the holidays, seasonal slowdown was palpable. 

While active homes on the market dropped 41.87% market-wide, the Luxury Market continued to outperform with a five percent increase in December for new listings. New listings for detached homes climbed slightly by 1.40% from last December, while closed listings increased 9.06%.

Meanwhile, the attached market continued to shine.

New listings climbed 35.29% in December with 23 more units compared to December the year prior. Closed sales came in at a staggering 89.66% gain with sales volume following closely with a 75.36% rise with an additional $75,932,105 in closed volume year-over-year.

*Written January 6, 2022. Updates may be available after this date.

Colorado Real Estate News

How to Sell Your Home for More

Anyone can get lost in the vast real estate market. People looking to sell their home want it to be a quick and easy process, but the reality is often the opposite. There is a ladder of steps with many moving parts, from hiring a real estate agent, price estimations, determining the best time to sell and so much more!

However, selling your home doesn’t need to be daunting and strenuous. Properly marketing your home can make the value surge and quickly attract buyers. Consider these valuable approaches to maximize your profits.

Know When to Sell

The housing market can be highly volatile, and oftentimes demand can dictate prices. Home sellers must stay on top of current market trends to pinpoint the right time to sell. Since the onset of the pandemic, there has been a strong seller’s market nationwide, especially in Denver. 

However, Realtor.com predicts buyers will have better chances to find homes in 2022 and the seller’s market will increase in competitiveness. So it might be in the best interest of home sellers to sell sooner rather than later.

Convert Your Home into a House

Staging is the preparation of a property so it appeals to specific buyers. As the name suggests, it’s “setting the stage” and essentially the depersonalization of home. Staging should be one of the leading goals for all homesellers as it allows for buyers to visualize a property as their future home. 

According to the National Association of Realtors 2021 Profile of Home Staging, eighty-two percent of agents report that home staging makes this visualization easier. Although, for staging to pay off, homesellers must first know their target audience.

Know Your Buyer

Buyer demographics can vary from property to property, so it’s crucial to research ideal homebuyers that will pay top dollar. For example, a condo could appeal to younger buyers searching for their first place, whereas a single-family home would appeal to families seeking a move-in ready home. 

Proper Real Estate Marketing

An established real estate agency will take the time to research appropriate marketing techniques that attract the most buyers. Inadequate execution can jeopardize the client’s money, and it can be challenging to find a trustworthy agency. 

For over forty years, Kentwood has provided renowned service and local expertise to clients, so you won’t have to worry about placing your trust in our brokers

Selling your home is a big decision and should be employed with due diligence. These selling strategies will help you get started and provide you the basics of making the most off your sale.

Colorado Real Estate News

Northern Colorado Market Trends

December was a lot of the same news. Inventory was extremely low and prices continue to rise. Focusing on Fort Collins, there were simply are not a lot of homes on the market in Fort Collins. 

Fort Collins homes were selling for a median price of $575,500.

Fort Collins homes on average sell after 114 days on the market compared to 76 days last year. There were 129 homes sold in Fort Collins for December this year, down from 393 last year, at an appreciating increase rate of 22 percent from 2020. A normal annual appreciation for Fort Collins has historically been 5-6 percent on average, and that’s including the market crash in 2008-2009, so it’s safe to say the market will only continue to increase. 

Average days on market increased year-over-year for detached and attached homes in Berthoud.

Berthoud’s detached market experienced a 7.32% increase from 82 days in 2020 to 8 days in 2021, and its attached housing market experienced a 13.57% increase from 140 to 159 days. 

Meanwhile, Timnath saw a drastic decrease year-over-year in homes sold.

Timnath’s detached market went from 38 homes sold in 2020 to 14 homes, a 63.16 percent decrease. In its attached market, Timnath also experienced a drastic decrease in home sales at 37 versus 112 in December 2020, a 66.67 percent decrease.  

Boulder unsurprisingly saw a large increase in appreciation year-over-year in both detached and attached markets. 

In the detached market, the average price climbed from $1,334,760 in December 2020 to $1,557,840 in December 2021, an increase of 16.71 percent. The attached market saw an increase of 9.22 percent from $506,279 to $552,956

Loveland also continues to prove its desirability with a 30.78 percent increase in attached sales volume. 

In Loveland’s attached market, residents saw average sales price rise from $9,100,750 to $11,901,786. Meanwhile, their detached market saw a 19.94 percent increase from $452,529 to $542,763 in December 2021.

*Written January 6, 2022. Updates may be available after this date.

Colorado Real Estate News

Selling Your Home During the Holiday Season

Shh … we have a little secret! Did you know that the last couple months of the year are an underrated time to sell your home? Yes, we know what you’re thinking: it might be a bad time to sell since most everyone will be busy traveling and preparing for the holiday season, but it can actually work to your advantage. If you’re hesitant about selling your home in the winter weather, maybe these arguments will convince you:

1. Buyers are serious. Due to sudden changes in circumstances, like a new job or wanting to be closer to family before the holidays begin, people are willing to put down money for a home ASAP.

2. The real estate inventory is significantly lower. With less competition, your home can be sold for a higher price and quicker than when the housing market is in higher demand in the spring. Your real estate agent may also be more available since there aren’t as many other prospective homebuyers. You can also hold more showing times because buyers are more likely to be on vacation.

3. There’s nothing like walking into a warm and inviting house after coming in from the cold. A welcoming home allows homebuyers to picture themselves in the space. Invoking this emotional response in a buyer will give them that extra push to pull out their pen and sign the closing documents.

4. End-of-year tax breaks are an added benefit for purchasing a home before December 31st. Those buying a home in the winter can deduct mortgage interest, property taxes and interest costs by closing the sale before the year ends.

5. Decorating the interior and exterior of your home can also contribute to successfully selling your home during the winter. But err on the side of caution when decorating; too many baubles and things can distract buyers from the key points of your home. Highlight areas like fireplaces and living rooms to bring warmth to the space.

Though most home sales happen when the weather outside is less … frightful, the fireplaces inside the houses on the winter market are … delightful! You don’t need to wait for the sunshine to sell. For more advice on how to sell or purchase a home this season, contact us today at kentwood.com.