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

December Market Trends in Denver

From October to November, the market saw a staggering decrease in inventory.

There was a 33.41% decrease in month-end active inventory, dropping to 2,248. Throughout the entire Denver Metro area, there are currently only 1,444 single-family detached properties and 804 attached properties to buy.

2022 could be the most competitive year yet. Over the past five years, month-end active inventory dropped between 23.36% in 2016 and 27.92% in 2019. Theoretically, if inventory stayed the course and dropped 25% this year, the market would end the year at 1,686 active properties leading into 2022, which is drastically lower than the end of 2020 and would lead to the most competitive year yet. With 2,248 active listings on the market and that number expected to go down by the end of the month, expectations are that 2022 will be a crazy year.

Despite high competition on the horizon, people continue to buy and sell.

Year-to-date, there have been more houses purchased than in any of the previous five years, with the median sales price for single-family and attached properties setting records at $525,000.

In the luxury market, Denver has more buyers ready to spend $1 million or more on their home today than any other time on record.

With prices higher than ever, November 2021 was more of the same record-breaking trends with lowest inventory, lowest days in MLS, highest sales volume and highest average prices.

Last month, inflation drove up the prices for Denver real estate.

The sales volume in the luxury market is the highest the market has seen in the last five years, up a staggering 69.17% from last year alone. When breaking it down to the attached market, luxury sales are up a whopping 145.84% year-over-year, likely due to the lack of interest in attached living in 2020.

*Written December 8, 2021. 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.

Colorado Real Estate News

How to Start Selling Your Home

There are many reasons you may want to sell your home: your family could be growing or shrinking, you could be relocating for work, you might want to move into an upgraded property, etc. Now that you’ve decided to sell, what comes next? Here is a checklist of eight things to do to jumpstart the process:

Get Your Home Ready

I know that seems like a ‘duh’ here, but what does it mean to really get your home … ready? To start, you’ll want to check the value of your home. You can get a free home value estimate easily online. HomeLight has a great home value calculator; they look at housing market data with information about your house. After checking the estimation of your property, take a look at your equity, and most importantly, start packing and performing your version of Marie Kondo shedding!

Hire an Agent Who Knows the Market

According to Bankrate, “An experienced agent earns the fee by exposing your house to the broadest audience to garner the best offers possible, and negotiating on your behalf.” A real estate agent helps bring attention to your home by figuring out your most valuable offers. If you do this by yourself, it would be far too much work to take on.

Kentwood’s knowledgeable real estate brokers would love to help you sell your home; you can learn more about our experienced group here.

Set a Timeline for Selling Your Home

Selling your home can take two to four months from start to finish and potentially longer, depending on the market conditions. When you decide to sell your house, it’s essential to start looking at real estate agents to find what will fit best for your situation.

Prepare Your Home for the Market

  • Get an optional home inspection.
  • Clean, clean, clean!
  • Take professional photos: they can make your home more appealing to buyers and renters. (Trust us, it’s worth the extra money to get these professionally done.)
  • Stage your home to make it inviting for those coming to look.

Kentwood’s Amplify services provide access to a team of professionals to help elevate your home’s value, and they tell you precisely what they believe you need done. They have options for renovation projects and cosmetic updates, such as staging, painting and decluttering. They also have options for deep cleaning, moving and packing assistance, and trash removal.

Set a Realistic Price

It’s critical to get your pricing right the first time. If you set it too high, your house might not sell. If you set it too low, it might misrepresent your home’s value. Evaluate your pricing based on the other homes in your neighborhood that have gone up for sale.

Put Your House on the Market

Promote your home, both online and offline, and prepare for showings by staging it and keeping it clean. A pro-tip from Bankrate is to let someone else show your home so that the potential buyers can come in and imagine themselves in your house.

Review and Negotiate Offers

When the offers start to come in, your real estate agent is your best advocate. Depending on the market at that time, you might get several offers or not as many as you would’ve hoped.

If you receive an offer, you can either accept that offer, reject the bid or make a counteroffer. Counteroffers have a short timeframe for the buyer to respond, and they should always be in writing.

Bankrate advises to look at other aspects of the offer, rather than taking the highest one:

  •  How the buyer is paying (cash or financing).
  •  The type of financing.
  •  Down payment amount.
  •  Contingencies.
  •  Requests for credits or personal property.
  •  Proposed closing date.

Sign the Final Paperwork

When you find the buyer and price that’s right for you, sign those papers! Review the settlement, determine what the buyer owes on the sale and receive your money. Selling your home is a process that can be time-consuming, but it’s extremely important and rewarding. By taking these steps, you’ll be able to find a perfect buyer. Good luck on your next homeselling journey, and congratulations on a new home! Kentwood Real Estate is all about helping people live their best lives. With a top-tier team of brokers, Kentwood is excited to help you with all of your home needs, including marketing for your home, intimate, local real estate knowledge and opportunities to get more for your home. Contact our team today at 1-888-621-7157!

Colorado Real Estate News

Northern Colorado Market Trends

The Frenzy for Attached Homes Slows in October

It’s becoming more and more clear that Northern Coloradans are growing weary of the hectic homebuying scramble, especially for attached properties.

Average Days on Market in October Increased Year-over-Year for All of Northern Colorado’s Attached Housing Markets Except Fort Collins and Timnath
Timnath didn’t have any closed sales while Berthoud’s attached market experienced a 604.65% increase from 43 days in 2020 to 303 days in 2021, and its detached housing market experienced a 3.37% increase from 89 to 92 days. During September 2021, only Boulder’s attached market experienced a year-over-year increase in average days on market.

Home Sales Decline in Northern Colorado

Closed sales were down year-over-year across all of northern Colorado, with Timanth’s attached market taking the lead down 100% from 7 sales to 0, and its detached market was in second place with a decrease of 80.85% from 47 days to 9.

Average Home Sale Price Increases Across Northern Colorado

Despite fewer homes selling, average sales prices have increased year-over-year across all of northern Colorado (with the exception of Timnath’s attached market). Berthoud’s attached market saw the largest year-over-year increase in average sales price of 92.39% from $309,800 to $596,017. Berthoud’s detached housing market experienced the second-largest increase in average sales price of 29.43%, from $544,798 to $705,141. Berthoud’s homes are taking longer to sell, and fewer of them are selling, but they are not going cheaply.

Timnath’s detached market saw the smallest year-over-year increase in average sale price of 7.15% from $695,271 to $744,959. Buyers need to act fast if they want to enjoy the lowest price increase in Timnath, as average days on market for detached homes dropped 48.25% from 91 days in 2020 to 47 in 2021.

Colorado Real Estate News

Denver Market Trends

October 2021 Exhibits Consistency With Past Years

In a year of turbulence, October represented a month of ease in the bumpy Denver real estate market. Across the board, the majority of statistics were seasonally consistent with what Denver has seen in years past, boding well for more households.

In Month-End Active Inventory, Denver Saw When Lower Numbers Change, They Yield Higher Percentages

At the end of October, there were 3,376 properties on the market, a 14.98% decrease from the previous month. The amount of listings also decreased by 13.28%, showing minimal changes in the month-end inventory.

While Properties Are Still Closing Above Asking, Realities Caught Up With Expectations

At 101.82% of the list price, buyers can be grateful that the extreme bidding wars are less common, and those without 20% to put down have a fair shot at a house, and the continued low interest rates can keep monthly payments down.

In the Luxury Market, Sellers Also Had a Lot To Be Thankful for in October

With homes only taking 25 median days in MLS to sell and sellers receiving 101.77% of their list price, luxury sellers have great opportunities to sell quickly and for top dollar. New listings were down 19.51% from the prior month and down 5.94% from one year ago. As soon as a listing came on the market, it was under contract, with 421 homes moving to pending status, up 4.21% from last month. With fewer homes on the market, Denver saw a 17.01% decrease in our sales volume month-over-month and a 12.04% dip year-over-year.

October Ultimately Showed That Even Though the Homebuying And Selling Process Is Hard, There Is Still Hope

Realtors® have had to re-strategize as buyers have felt demoralized and sellers have had to move, but there have been more homes purchased year-to-date than years past, and seasonal effects have re-opened the door for those that had previously felt discouraged from the buying process.

Colorado Real Estate News

Denver Market Trends

September 2021 Report Indicates No Housing Bubble Despite Industry Unpredictability

After Realtors® felt a relative slow down and seasonal return in July and August, September fell back to today’s housing market’s normal red-hot speed. Closed properties were 12.81% lower than last month at this time and a notable 19.27% lower than last September. With lower inventory and fewer homes, the balance of supply and demand stayed steady, leading to another month of competition for buyers. 

Excluding $0 to $99,000 Homes, Most Competitive Market Ranked in the $300,000 to $399,000 Range

This price point had .51 months of inventory with a surprising 218 closed properties, showing that one can indeed still find a single-family detached property under $400,000.

Meanwhile, Least Competitive Market Was Attached Properties Over 1 Million Dollars 

While there were still 56 attached properties that sold over 1 million dollars, the month-of-inventory for this category was 2.16, more than four times less competitive than the $300,000 to $400,000 and the $400,000 to $500,000 range.

The Luxury Market Remains Strong With Slight Slowdown

The market saw 501 new listings hit the market, and inventory up 4.81% from one month ago and 15.17% year-over-year. 

Luxury Detached and Attached Homes Alike Remained Strong 

The detached Luxury market saw 445 new listings in September, with 362 going into a pending status and 383 closing in September at 101.54% over list price. Overall, buyers had a little more negotiating power in the Luxury attached market, with attached homes selling for 99.57% to list price and within an average of 25 days. 

Overall, the Residential Real Estate Market Shows No Sign of a Bubble 

With the big question on everyone’s mind whether or not we will see the housing bubble burst, the data continues to show that it’s not going to anytime soon. 

*Written October 5, 2021. Updates may be available after this date.

Colorado Real Estate News

Market Trends

August 2021 Reported A Seasonal Slowdown

The transition from July to August felt like a shift as vacations slowed down in preparation for the school year. The report saw this reflected in the days in MLS, which increased from nine to 11 in August 2021. Likewise, the close-price-to-list-price ratio dipped ever so slightly month-over-month. 

Month-End Active Inventory Dropped Dramatically

Month-end active inventory dropped 11.69%. Historically speaking, the change in inventory is relatively consistent from July to August.

Both Inventory and New Listings Decreased

The short-lived “loose grip” on inventory tightened once again. Months of inventory decreased from the previous month to 0.637. 

The Luxury Market Remains Strong

In August 2021, the Luxury Market stayed strong overall. New listings dipped 18.56% from 598 homes to 487 and closed sales were down 13.97%, with sales volume trailing behind with a 12.65% lag. Following the trend of sluggish numbers, the average days in MLS shot up 71.43%, from 14 days in July to 24 days in August.

Detached Homes Experienced a Shift but Fared Well

In August, detached homes reported 413 new listings and 410 closed properties. However, new listings dipped by 19.34% from last month, while closed sales dropped 15.98% from 488 homes to 410. The most promising news in the detached market is that pending sales climbed slightly month-over-month by 8.24%, with 407 homes currently under pending status. 

Attached Homes Marched to a Different Drum

New listings were down 13.95% to 74 while pending sales dropped 24.24% to 50 homes. Closed sales increased slightly from 49 homes to 52 resulting in a slight increase in sales volume. Average days in the MLS jumped 100% from 30 days to 60 days, while the median days jumped 83.33% to 11 days.

*Written September 10, 2021. Updates may be available after this date.