The Acceleration and Deceleration of Days on Market
In April of 2021, Berthoud’s attached housing market saw the largest year-over-year decrease in days on market of 83.54 percent, ending at 26 days. In May of 2021, Berthoud saw the largest year-over-year increase in days on market of 97.87 percent, ending at 93 days in 2021. As these factors fluctuate, speak with an experienced broker to ensure you have the most current statistics for an informed decision.
Berthoud’s Disparity in Close-to-List Price
Buyers seeking attached properties in Berthoud had to pay, on average, 105.60 percent of the original list price to secure their home. As the largest average close-to-list price for attached homes across northern Colorado, Berthoud’s close-to-list price also saw the largest year-over-year increase of 10.92 percent! Simultaneously, detached properties in Berthoud saw the lowest average close-to-list price across northern Colorado’s detached market at 103.00 percent and had the smallest increase of only 3.00 percent year over year.
Homebuyers Are Attached to the Attached
Attached homes in Timnath saw a closed sales increase of 250 percent and a closed sales volume increase of 280.51 percent year over year. With the average sales price only increasing by 8.72 percent year over year, homebuyers are open to living in attached properties as they can find opportunities in this market for fewer dollars compared to Timnath’s detached average sales price increase of 41.69 percent.
Berthoud’s attached housing market skyrocketed in 2021, with a closed sales increase of 600.00 percent and a closed sales volume increase of 936.62 percent! This massive shift came with a large dollar sign as the average sales price increased by 48.09 percent year over year.
Windsor and Fort Collins were the only two areas in northern Colorado without a year-over-year closed sales increase of over 100 percent for attached homes, meaning there may be more opportunities to secure housing in these regions.
May 2021 Data Demonstrated a Continued Extreme Seller’s Market
While it is an extreme seller’s market in the metro Denver area, closings still happened, up 18.78 percent, despite active listings being down 4.11 percent year-to-date from 2020. At the same time, the report showed closings are up 18.78 percent, a statistic that DMAR reported is both a reflection of how the pandemic shutdown impacted the real estate industry this time last year and yet also supports the concept of increased buyer demand.
Cracks in the Attached Market Showed Themselves While the Detached Market Continued to Rise – But Stopped
Throughout 2021, the metro Denver area saw cracks in the attached market while the detached continued to rise in urgency and price. In May, buyers saw those cracks and moved on opportunities in the attached market, creating the lowest month-end active inventory on record, with only 739 properties available to sell. Those cracks are now gone, and it is a strong seller’s market for every property type and price point.
It Continues To Be an Unpredictable Year.
The Denver metro’s 2021 real estate market has turned into an unpredictable year, lacking seasonal consistency with rainy weather in tow while prices continue to skyrocket. The area hit a new average sales price record of $700,559 for single-family detached properties.
June’s Report Shows Luxury Buyers Making Decisions Faster Than Ever. In 2019, the detached market residences were available for tours for 20 days before accepting an offer. Last month, that same metric measured median days in MLS as six. The attached market is seeing the same trend, from 23 days in 2019 to seven days this year. So even if one were to take out the pandemic pricing of 2020, the metro Denver area still sees properties for fewer days in the MLS from 2019.
*Written June 12, 2021. Updates may be available after this date.
The past week, Kentwood Real Estate was honored to participate in the prestigious Reimagine Conference hosted by LeadingRe at the Luxe Wynn Hotel in Las Vegas. And wow, what an incredible experience it was! Kentwood’s Managing Broker at our Cherry Creek office, Brandon Brennick, and top-producing broker Lori Pace, participated in two amazing panels for diversity and competition, respectively. FYI, Lori is a member of Kentwood’s Diversity, Equity, and Inclusion counsel. Also, Jason Exley, Director of Relocation and Business Development, helped lead a panel on ‘Recalibrating Relocation in the COVID Era.’ So proud of our fantastic team and their participation in this great conference!
Featured Conference Topic: Recalibrating Relocation In the Covid Era
Panel held by Jason Exley of Kentwood Real Estate:
Relocation departments shifted to focus on lead business during COVID to top aggregators such as OpCity, Rocket Homes, HomeStory, etc., with traditional corporate relocations down. Coming out of COVID with inventory slim, one brokerage introduced a partnership with Ribbon, which converts a conventional buyer to an all-cash offer, buyers can compete and win. The virtual environment we were all thrown into during COVID has led to higher engagement among agents at Relocation trainings and weekly sales meetings. Also, By creating a more enhanced experience and upfront conversation via video/conversation with relocating clients, we are experiencing higher conversion rates.
Featured Conference Topic: Fair Housing, Diversity and Inclusion
Panel held by Lori Pace of Kentwood Real Estate:
The vitality of a brokerage’s future success will be contingent on how well agents and brokerages can respond to the changing circumstances of the world that impact global relationships. COVID -19 and social unrest due to the death of George Floyd turned the world upside down; meanwhile, real estate was declared an essential business.
Today, we face a lack of tools, resources, and leaders to ensure past real estate policies, laws, and business practices are inclusive and multicultural in creating positive solutions. While at the conference, it was the anniversary of the murder of George Floyd. Buyers, sellers, brokers, owners, and agents representing neighborhoods, businesses, and organizations can no longer feel comfortable with the dehumanization and perceived threat of a black man in a community that has been neglected due to redlining.
Redlining was used in our industry systematically to uphold racist philosophies and principles. LeadingRE recognized the need to do more than talk about inclusion but instead invest in inclusion by launching a Diversity Difference Experience program held in August.
Featured Conference Topic: Competing Against the New Competition
Panel held by Brandon Brennick of Kentwood Real Estate:
Now, more than ever, relationships matter! Clients are ready for eyeball time with their agents, and therefore, getting back in person with our clients is key. Competing against new competition requires being purpose-driven. Most agents are operating with a transactional model now; however, having a business plan that focuses on intention has proven to be a more successful and profitable route.
Most agents (70-80%) are buyer-centric, which contributes to the scarcity of inventory – the market is telling them they can’t get listings, but there are people out there ready to sell. They just don’t know how to do it. A more listing-centric strategy is key to more inventory. Approximately 14-23 million American will move in the next 1-5 years – 52% more than 2 hours away and 42% more than 4 hours away.
Why Should You Get to Know LeadingRE?
Over two decades ago, 50 of the top brokerage firms in the United States launched a network now known as Leading Real Estate Companies of the World® (LeadingRE). Today, LeadingRe has over 550 firms and 150,000 sales associates, operating in 70 countries. LeadingRE’s mantra is “Making the Best Brokerages Better.” LeadingRE accomplishes this by providing these top local brands with world-class business resources and national and global connections.
They must know, then, that the above-named gentleman whenever he was at leisure (which was mostly all the year round) gave himself up to reading books of chivalry with such ardour and avidity that he almost entirely neglected the pursuit of his field-sports, and even the management of his property; and to such a pitch did his eagerness and infatuation go that he sold many an acre of tillageland to buy books of chivalry to read, and brought home as many of them as he could get.
Over two decades ago, 50 of the top brokerage firms in the United States launched a network now known as Leading Real Estate Companies of the World® (LeadingRE).Over two decades ago, 50 of the top brokerage firms in the United States launched a network now known as Leading Real Estate Companies of the World® (LeadingRE). Kentwood Real Estate is not only honored to be a part of LeadingRE but grateful to be featured at their Reimagine Conference this past week.
Kentwood’s Involvement with Charities and Local Businesses
Thought leadership is our passion at Kentwood; however, we go beyond the real estate industry by supporting local charities and businesses to build a stronger local community. In today’s challenging times, we must lift each other up, now, more than ever. Kentwood agents and staff support over 170 local, national, and international non-profit organizations. Rooted in the Colorado economy, we are delighted to support local businesses through numerous civic and community endeavors, participating in regional events, and sitting on dozens of committees and boards. Learn more about how Kentwood is helping to build a stronger Colorado as one.
If you’ve been considering selling your home, now is the perfect time, and if it hasn’t crossed your mind, maybe it should! Springtime is in full swing and the Denver housing market shows signs that NOW is the time to sell. As you prepare to list your property and search for your dream home, here are a few key “Do’s & Don’ts” of preparing to sell to keep in mind.
With our spectacular state offering various unique and breathtaking activities during all months of the year, we urge you to take advantage of the warming weather and embrace Colorado’s beauty. So, get outside, connect with nature and slake your thirst for adventure.
Declutter Before Showing
When you’re preparing for potential buyers to walk through your home, you want them to enter into a clean and inviting space. That is why it is essential to declutter and reorganize your home. Getting rid of unnecessary items that have piled up over time will make your rooms look bigger and more spacious, it will be easier for guests to walk around and it better displays the best features of your home. Real Homes stresses that forgetting this critical step may cause buyers to worry that the clutter covers spaces that would require repairs and renovations. So, take some time to go through each room and declutter so that you can show off that built-in shelving unit or beautiful granite countertops!
Consider Curb Appeal
First impressions are everything, and when potential buyers arrive at your home, the first thing they see is the front of the house. Therefore, it could be worth it to spend some time and money updating your landscaping with some new shrubs and a freshly trimmed lawn or adding some eye-catching decor to the front porch.
Depersonalize the Living Spaces
As people stroll through your home during a showing, they want to be able to picture themselves and their significant others or families living there. By removing some large family portraits, vibrant wallpaper and scattered personalized decor and replacing them with aesthetic and neutral decorations, you give the buyer more creative room to imagine what the space would look like if it were their own. Homelight offers a great list of specific aspects to depersonalize before you begin showings.
Wait Until the Spring to Sell
While many homeowners put their houses on the market in the springtime, houses are constantly selling throughout the year! As we approach summer, don’t wait until next year to list your property. Choosing to start your selling journey NOW with ravenous buyers engaging in bidding wars can position you to earn a premium on your home sale.
Be Present At Showings
There are a couple of reasons why it is always best to elect not to be present when a potential buyer is visiting your home for a showing, according to SFGATE. First of all, it can make the guests feel uncomfortable and hesitant to truly examine the space, such as peek into the cabinets and explore the closets. Secondly, it can appear more like desperation to sell as opposed to your excitement for new opportunities. Finally, agents are experts in what to say and how to present the home, and while you may know more than anyone as the current homeowner, you may reveal information that the agent doesn’t appreciate. To avoid any of these potential mishaps, make yourself scarce during showings.
Make Major Renovations
While you may have a beautiful, updated vision for your home, notes that it is impossible to read the minds of your future buyers. This is why making major design renovations could be both a waste of money and a disadvantage for your likelihood to sell. Additionally, inexpensive or DIY renovations could make aspects of your home end up looking cheaper than before, which may be especially unappealing to buyers. When considering updating your home prior to putting it on the market, it is best to focus on maintenance repairs like plumbing, as opposed to updating the appearance.
Now that you have learned some of the major “Do’s and Don’ts” of preparing to sell your home, it may be time to consider exploring new options in a new place or a new house and putting your home on the market! Denver real estate is booming, so there is truly no time like the present!
April 2021 Showed Blatant Hyper-Demand In the Residential Housing Industry
The market continues to result in historic low months-end inventory, even with months-end active inventory increasing by 35.03 percent. Altogether, there were still only 2,594 active properties at the end of the month, representing the lowest April on record and 48.38 percent less inventory.
The Importance of One Year Ago
April 2020 was a month of confusion and uncertainty for the world. The ebbs and flow of being an “essential” worker were reflected in new listings last year, which were down 43.02 percent compared to April of this year. Since last year, the market has seen a steady rise in competition and therefore prices have as well. With only two weeks of inventory, year-over-year appreciation continues to be staggering for the market while also bringing homesellers inevitably great returns, increasing 24.20 percent in April.
The Luxury Market Has Experienced the Most Growth
In 2018, 2019 and 2020, year-to-date closed sales of properties over $1 million were 649, 654 and 661, respectively. So far, in 2021, there have been 1,353 closed sales, more than double the number of the past three years. The median days in MLS for the Luxury Market was seven, down from 23 in 2020, 22 in 2019, 32 in 2018 and 48 in 2017.
Where We Stand With Inventory Lows
Historically, the market has seen annual inventory reach its low point in February and March, followed by increased listing activity until it hits inventory peak in August and September. The Luxury Market appears to follow the trend with 28.82 percent more new listings in April than March, showing that it may be possible for buyers who outlast the competition fatigue to find themselves with more options than they have seen in the past few months. If so, with only one month of inventory for attached homes and 1.97 months for attached homes, buyers will need to keep vigilant.
*Written May 10, 2021. Updates may be available after this date.
Written by President and CEO of Kentwood Real Estate, Gretchen Rosenberg
Lawrence Yun, Chief Economist for the National Association of Realtors (NAR) recently said, the period we’re in “is not a bubble. It is simply a lack of supply.”
In a recent article about the intense demand we’ve seen play out since late 2020, Lawrence Yun discussed the state of today’s housing market.
Yun addressed whether today’s high buyer competition and rising home prices are evidence of a housing bubble and said that this “is not a bubble. It is simply lack of supply.”
Today’s housing market remains competitive, with rising prices driven by buyer demand.
Kentwood Real Estate Agents Have Their Say
I queried several of our Metro Denver and Northern Colorado agents and they weighed in on the bubble theory.
“I’ve been in real estate sales in Colorado for several decades. There have only been three years out of the past 30 when we saw housing actually depreciate. Two of the Great Recession years and one year in the 1970’s.”
“I’ve been explaining today’s housing dynamics to my clients. They understand that there aren’t enough homes for the number of buyers in the market and absent a huge influx of inventory (unlikely) or a large rise in interest rates (not anticipated in the near-term) we will remain in a seller’s market for quite a while.”
“When supply and demand begin to get more in-balance, price appreciation will slow to single digits from double digits. I don’t anticipate it slowing to the point where we see loss of home values unless there’s a crazy unplanned incident. A “Black Swan.” Covid was that Black Swan in 2020 and even that only caused a two to three month pause in the housing market.”
Navigating the Colorado Real Estate Waters
For more information on Colorado housing, connect with a Kentwood Real Estate broker to talk about the best ways to navigate such an energetic market. Our residential and commercial brokers sell and lease properties across the Northern Front Range of Colorado from south of Castle Rock to Denver and up to the Fort Collins area.
March 2021 Depicts an Emotional Market in the Greater Denver Metro Housing Area
With nearly every statistic in the report justifying how much competition there is for buyers, the market can visibly observe how far buyers are willing to take their offers in order to secure a home.
Whether Looking at Detached or Attached Properties, It is a Strong Seller’s Market Across the Board
Year-over-year appreciation is at 15.26 percent from $511,511 to $589,587 this March, while month-over-month appreciation is at 6.90 percent from $551,542. On par with recent months, median days in the MLS went down to four, while close-price-to-list-price ratio went up to 103.32 percent.
New Listings in the Luxury Market Are Also Unable To Keep Up With Buyer Demand
Reports show that as prices and appreciation continue to soar, more homes cross the threshold into the Luxury Market as a result.
Sales Volume for the Attached Segment of the Luxury Market Is Up Substantially
62.63 percent year-over-year to $64,182,709 and up 63.56 percent month-over-month from last month’s $39,240,156. As volume has gone up, median days in MLS has fallen from 27 days last year and even a whopping 35 days in February to only seven days in the month of March.
New Detached Listings Increased, Barely Keeping Pace With the Pending Sales
Listing increased 28.03 percent with 402 new listings, up from 314 last month. This barely kept pace with the pending sales topping out at 399, a 26.27 percent increase month over month. As a result, sales volume was also up month-over-month 57.43 percent reflecting $558,253,910 at month-end.
In a Highly Emotional Market, One Must Understand How Much Competition Is Out There
Instead of using past sales as an indicator, one must also understand how much competition one has when submitting an offer. The data is a small piece of the puzzle. The bigger question is what are buyers willing to offer to beat out your competitors?
Written by President and CEO of Kentwood Real Estate, Gretchen Rosenberg
Fair housing as a concept began when legislators and practitioners acknowledged that housing policy had not previously been equitable. April is national fair housing month, however, it takes every month of the year and every day of the month to right past wrongs and create housing equity.
The American Dream
Having a place to call home that we own remains a cornerstone of the American dream. Home signifies safety and stability for many people and impacts where families send their children to school, where people work and how they get to work, and where they access community services. Homeownership boosts household wealth through equity and appreciation, and over time, provides many other social and economic benefits. It strengthens neighborhoods.
The Reality and Challenge
Unfortunately, not all people have enjoyed equal access to homeownership. Bias and prejudice throughout our country’s history have resulted in people experiencing both subtle and direct housing discrimination due to their race, national origin, the color of skin, religion, veteran status, sexual orientation, disability, or family status. Discrimination in housing is wrong; it is also illegal.
Fair Housing is Everyone’s Job
As respected leaders in our community, it is our responsibility and commitment to ensure that every person who desires to rent or purchase housing is able to do so without bias or discrimination. All of our licensed REALTORS® at Kentwood Real Estate receive formal training on the topic. Fair Housing is part of the National Association of REALTORS® code of ethics. In addition, our lending associates at Prosperity Home Mortgage have an equal commitment to Fair Lending. Each of us must be 100% committed to Fair Housing and Fair Lending.
Honoring Fair Housing month is a reminder that we’ve come a long way, yet we have miles to go to achieve equity.
Selling your home in Denver’s white-hot real estate market might seem like a breeze with houses flying off the shelves in record time, however, getting the highest possible return on your home sale is not as easy as you might think. If you’re looking to sell for the best attainable value, then check out these tips for how to maximize your home sale.
Hire a Skilled Real Estate Broker With a Marketing Plan
When selling your house, it may seem tempting to do it yourself or through an online site but the truth is, if you want to get the most out of your home sale you need to hire a great broker. A skilled broker will have years of experience and expertise to help you navigate the murky waters of your transaction. Along with a breadth of knowledge, experienced real estate professionals will be able to create a customized marketing plan with you that will ensure that you get the most bang for your buck.
Have Your House Professionally Cleaned
Another great way to make sure your property garners competitive offers above the asking price is to have it professionally cleaned. You may be thinking to yourself, “My place is clean. Why would I need someone else to clean it?” The simple answer is that when selling a residence, appearance is half the battle, and a professional cleaner can make your house sparkle in ways that you probably don’t have the time to do. When it comes time for showing, and your home is gleaming, people will be more likely to see its full potential and thus will probably be willing to shell out a little extra. So if you want to maximize your property sale, hire a professional cleaner. Trust us. You’ll be glad you did!
Check Your Curb Appeal
In life and real estate, first impressions are everything so when selling your residence, it is extra essential to make sure you have that “it” factor…curb appeal. While you may not notice the overgrown shrubs or the loose hose in the front yard, your potential buyers most definitely will. So if you want your property to stand out from the herd and fetch a pretty penny, it will take a little bit of extra effort. First, check your paint. If it’s peeling, then it might be time for a minor touch-up. Next, take care of any apparent outdoor maintenance such as overgrown tree branches or garden beds overrun with weeds. Lastly, if you’re looking to add a cherry on top of your curb appeal, add some fresh flowers and mulch to your garden beds. It will make your house a more inviting home.
Minimize Items on Surfaces
That little angel statue on the fireplace or the family photos on your dresser may mean the world to you but to a potential buyer, those are all things that mark your house as yours. If you want to gain a more significant return on your home, you might want to try making it feel like a blank slate. By putting away the small items that clutter surfaces, you subconsciously communicate to buyers that your house is open for them to make it their own.
Have Your House Professionally Photographed
They say a picture is worth a thousand words and in the world of real estate, this saying is a bell that will always ring true. A professional photographer can take advantage of your home’s best qualities and make sure that your listing photos highlight the spacious dining room or the beautiful natural light in the living room. Along with amazing images, a photographer can also film a virtual house tour, and in this pandemic, more and more buyers are buying site-unseen. So a virtual property tour can make all the difference in the amount of high-value offers you receive.
How Kentwood Can Help
Here at Kentwood, we have a diverse network of brokers who can offer you personalized advice from advertising strategies and competitive market analysis to guidance on the best ways to elevate your estate sale. Our unique Amplify service grants you access to a curated team of professionals trained on how to best enhance your home’s appearance and value with no cash out of your pocket until your property is sold. Kentwood is also proud to offer a range of virtual home selling options such as 3D video walk-throughs, online open houses and showings, as well as virtual staging options. So if you want to get the most out of your property sale, give us a call and see how Kentwood can get you the best bang for your buck!
February 2021 Depicts an Icy-Hot Spring Market With Buyer Demand on Fire.
The Greater Denver Metro housing market proved that the underlying theme of this market is speed: the speed at which buyers are purchasing relative to the number of sellers listing, and the speed at which active properties are going under contract while prices are accelerating.
The Gap for Detached Properties Over Attached Properties Shrank in February.
While many metrics still show that detached properties are in higher demand than attached, that gap decreased in February. There were 3,641 closed properties, up 3.70 percent from last year at this time, and in part because attached properties were on the rise. Attached properties saw a 16.29 percent increase in closings relative to last year at this time. The increased demand for attached properties propelled the market to an average close price of $401,552. Meanwhile, detached properties saw a 1.80 percent decrease in closed properties relative to last year.
Competition Remains Incredibly High.
The report confirms that with median days in the MLS at five, close-price-to-list-price ratio at 101.90 percent and months of inventory at 0.55, competition remains exhaustive. With properties frequently going over asking price, full appraisal gap waiver appreciation continues to rise. Savviness, creativity, knowledge and guts are all components that will help buyers move towards a path of homeownership in this market.
The Luxury Market Shows Interesting Trends.
Last month, DMAR reported that the luxury detached market alone closed on 206 homes, a 10.75 percent increase in this category from last month and a 46.10 percent improvement from last year. More buyers are ready to purchase property over $1 million than the market saw in 2020 and single-family home sellers are enjoying a more crowded and hotter marketplace. While less competitive than other market segments, it remains high with February’s close-price-to-list-price ratio at 97.63 percent.
*Written March 10, 2021. Updates may be available after this date.