2020 Presented Historic Sales Volume in the Denver Metro Real Estate Market
In December, the Denver housing market continued to show buyer resiliency in pursuing homeownership. For the first time ever, there were 62,985 homes purchased throughout the year, 6.95 percent more than 2019.
According to Steve Danyliw, past Chair of the DMAR Market Trends Committee and Metro Denver REALTOR®, in 1990 the Denver real estate market closed only 25,619 homes, which means in 2020 the market closed 145.9 percent more homes. Over the last 31 years, home prices continue to see robust growth with the average price increasing a staggering 457 percent.
Don’t Count Out Ultra-Low Mortgage Rates
Despite the growth in average price, Lawrence Yun, Chief Economic and Senior Vice President of Research at the National Association of REALTORS®, added that buyers should focus on the current low mortgage rates, which mean the Denver area is actually more affordable now than a year earlier even though home prices rose 14 percent. The 30-year fixed rate has dropped more than one percentage point over the past 12 months and is hovering into record lows.
Inventory Is Unsurprisingly Still Low
December presented another historically low month of inventory with 2,541 properties on the market: the first time Denver has seen under 3,000 active properties.
New Listings for Luxury Homes Climb
However, new listings for the Luxury Market were up 14.65 percent compared to 2019, with pending sales climbing to 36.50 percent and closed sales reaching 34.74 percent.
Meanwhile, the Classic Market Stays Competitive
With the average days in MLS at 20 days, 23.08 percent lower than 2019, and median days in MLS at only six days, 45.45 percent lower than 2019, the Classic Market remains strong. 31,913 new residential listings hit the market in 2020, which is 2,255 fewer and 6.60 percent less than the 34,168 that came available in 2019.
*Written January 8, 2021. Updates may be available after this date.
While Denver had another historically low month of inventory, our Kentwood Real Estate brokers remained busy. Both Denverites and Denver transplants were looking to find homes that fit their new lifestyles, wanting more open and flexible space for that work-life balance.
Kentwood Real Estate was featured in various articles in December, covering a variety of topics including our spectacular listings, significant sales, and real estate advice we have to offer.
You’ve heard it, the loud sucking sound of the real estate market in the U.S., Colorado, Denver, and Fort Collins drying up. We’ve been facing this inventory crisis for several years, and it’s only getting worse.
Months of supply of inventory in the 11 county Denver metro area market is .3 of a month. Approximately 1/3 of a month. We ended 2020 with 2,541 available homes in the MLS. That’s just over two thousand homes for a metro area of 2.8 million inhabitants.
How Home Buyers Should Prepare
At Kentwood Real Estate, our brokers are top-tier professionals who are ready and able to help their clients put their best foot forward. Our Prosperity Home Mortgage team of lenders is also well versed in what it takes to secure a home during a competitive bidding process.
What, Why and How?
In December 50.1% of homes sold over list price and 20.5 % sold at list price. That’s 70.6% of homes selling at or over list. We had approximately 5 median days on market in December. 60% of homes are under contract in under 7 days. And that’s “the what.”
Our Fort Collins market is facing the same issue. The Fort Collins Board of Realtors recently said, “Low inventory and multiple offers on in-demand properties and market segments are likely to remain common while the market waits and hopes for a boost in new construction and a surge in home sellers to help provide more balance to the market.” (Note to sellers, if you aren’t under contract in a couple of weeks, see a decent amount of traffic or have a series of second showings, you likely started out pricing your home too aggressively. Remember that you’ll lose perceived value as time in MLS goes by.)
“Why” is a combination of reasons. Some homeowners are deciding to stay put and do a little fix-up rather than move. They feel during COVID it’s risky to enter the housing market fray. They’ve been fearing for several years that they won’t successfully find a replacement property. Builders aren’t able to keep up with demand. They can’t build them fast enough.
The resale housing conundrum is keeping potential sellers out of the market and it’s become a vicious self-fulfilling prophecy. Nothing on the market to look at, no reason to put my house on the market.
The “How” revolves around the season. I recently heard an expert I respect say, “We’re in multiple offer season.” For 5 years, it’s felt like it’s always multiple offer season, but there’s a case to be made that between January and March it’s heightened. We’re waiting for those homeowners who do intend to sell this year to get their property on the market. This means buyers will need every tool in their arsenal, without waiving all of the rights they’re entitled to under the contract.
Hang in there, home buyers! With strong guidance and representation, you will land a house. It may not be the first or even the second offer you make, but you will prevail. Then we can say to you – Welcome Home!
You may be in your first home or your move-up home, you may have been rooted in your home for many years, or you may be someone who moves a lot and loves the experience and excitement of finding that next just-right place. 2021 is predicted to be another year of record home sales and movement into and out of our homes. Are you planning to jump in?
Many people found their housing needs changed in 2020. They realized their current home didn’t mesh with their current lifestyle. If you’re working remotely, helping your children with online learning, exercising in your basement (me,) or simply spending more of your time in your own four walls, you may be realizing that your current place isn’t what you envisioned when you made the purchase.
It’s a great time to reimagine where you’ll land next. Mortgage rates remain historically low and new construction is helping keep up with demand, even if resales have been slow to come on the market. We expect more homeowners to dip into the market this spring, but multiple bids in some segments will likely continue even with a rise in inventory.
According to CoreLogic’s Home Price Insights, national prices appreciated 7.3% year-over-year in 2020. The National Association of Realtors (NAR) also reported that inventory dropped 22% from 2019 to 2020.
This is a reflection of supply and demand at work. As inventory decreases and demand increases, prices are driven up.
If you own a home that isn’t JUST RIGHT and you’re thinking about selling, now may be the time. You’ve probably seen a good amount of equity accumulate in your home as prices have increased. Kentwood Real Estate brokers have a large number of buyers looking for their Colorado dream home. Let us help you sell and find that next perfect place to call home.
If you think your current home no longer serves your lifestyle, then connect with a Kentwood broker to discuss local market conditions and determine if now is the best time for you to sell!
Are you considering selling your home? Denver-metro’s real estate market is white-hot right now and homesellers have an opportunity to earn a premium by listing their properties. Below are some statistics and insights into why NOW is the prime moment to sell your home and effectively capitalize on the extraordinarily potent real estate market. The bubble will not burst and in this seller’s market, the benefits and supporting evidence speaks for themselves.
1. Make a Significant Profit on Your Home Sale According to Mansion Global at the end of October, the median U.S. homebuyer is paying about $20,000 more than they did three months ago. Denver-metro has experienced a spectacular median home price growth of 11.67% over last year and an extremely positive 7.14% year to date.
With interest rates hitting a new historical low 14 times this year, homebuyers have more purchasing power, and they are willing to make a strong offer to secure the homes they love among the stiff competition.
Due to this elevated buying ability, multiple offer scenarios are continuing later this year than they have in the past and in price points that typically haven’t seen that before. With voraciously hungry buyers engaging in bidding wars for your home, homesellers stand to maximize their profits.
2. Inventory Is Low and Demand Is High According to the Denver Metro Association of REALTORS®, more than seven in 10 homes sold in October 2020 and 72% were on the market for less than a month with the median days in MLS for detached single-family homes at a speedy five days, representing a tie for the lowest number on record.
Housing inventory hit an all-time low of 3,415 active listings at the end of November. Compare this to the average active listings for November month-end of over 14,000 and you can see how homes are flying off the metaphorical shelves.
The Denver-metro area has had more closed homes than active listings every month-end since July 2020 and with extremely limited housing inventory, you have your pick of the litter with buyer offers.
3. Colorado Cities are Some of the Best Places to Live The U.S. News and World Report published its list of the 150 best places to live in the U.S. and the first four out of 5 are all in Colorado with Denver earning second place overall.
Also, in Niche’s Best Cities for Young Professionals in America list, Denver placed 11th and Denver Business Journal ranked Denver 13th for overall real estate investment and development.
With the high desirability of our beautiful state, not only is there the potential for Coloradans to purchase your home among the low housing inventory, but many individuals out of state will be pining for your property.
Partnering with Kentwood The benefits of listing your home in this market are plain as day with a high potential for homes to not only sell quickly, but for a large amount. If you would like to capitalize on Denver-metro’s phenomenal housing market and maximize your profit, consider partnering with an experienced Kentwood broker to elevate your home’s marketing, staging and overall value.
Denver Metro Real Estate Market Continues to Boost All-Time Records. November continued to emphasize the desirability of a home in COVID-19, and the market shattered records with median days in MLS for detached single-family homes at a speedy five days, representing a tie for the lowest number on record. Active listings for attached and detached single-family homes came in at 3,415, surpassing the previous low set in December 2017 of 3,854. There was additionally a record-high for November average close price for combined single-family detached and attached properties, and detached single-family homes at $549,756 and $615,766 respectively.
Low Inventory Is … Low. While the holiday months generally see a decline in inventory, this November MOI hit another record-low at just .71, easily beating October 2020’s former lowest record at .81. For the single-family detached market, Denver had 1,755 houses currently available for sale, representing just .51 months of inventory.
Change of Pace for Luxury Homes Inventory. While typically, the most active amount of inventory is the $500,000 – $750,000 price range, this November the dial turned and it was homes priced over a million dollars. Presently, there are 561 homes on the market priced at over a million dollars, almost one-third of the overall inventory. New listings for the Luxury Market were up 17.09 percent compared to last year.
Classic Market Becomes Most Competitive. MOI for detached homes in the Classic Market dropped to just over .27, arguably making the Classic Market the most competitive segment of the market. For detached and attached homes in the Classic Market, there were 1,781 new listings recorded in November, which was a 35.70 percent drop from October and a 2.64 percent drop from last year. The 2,319 pending sales in November outpaced the number of new listings, furthering the lack of inventory this month and the number of closed sales dropped by 25.38 percent from October and 4.98 percent from last year.
*Written December 8, 2020. Updates may be available after this date.
Among other things, significant listings, prestigious awards, and McGregor updates are featured in the November news recap. Check out the articles below that featured Kentwood Real Estate brokers, staff and listings!
As your trusted experts, remember to follow us on social media to receive real-time updates on all things Colorado Real Estate.
I’ve been in real estate for 2 ½ decades and actively sold for 22 years before stepping exclusively into management. Every November, my clients would mull the decision about whether to put their home on the market over the holidays or wait until the spring.
Our brokers report this conversation is even more prevalent now, winter of 2020/2021. In a typical year, real estate owners are facing a decision about selling during the holidays – whether that means putting their homes on the market or keeping them on the market through the season. This year, layer on the COVID-19 pandemic, and things get more complicated.
Those homeowners who are game to join or stay in the market could be richly rewarded for their decision. Here are the top 6 reasons why owners may want to sell now.
When I was a busy listing broker, I advised sellers that they may not get as many showings over the holidays and into January, but the buyers who were looking were serious and wanted to find a home. With the historically low inventory, demand is still pent up, even this winter.
The incredibly low mortgage rates are helping drive buyer demand and fuels their motivation to continue a house hunt through the winter months.
I remember a family I worked with many years ago who were wrestling with whether to put their house on the market in early December. They’d already purchased their replacement in a private deal with their neighbors three doors down but needed to sell their current home. They asked me whether I could sell it over the holidays, and I said, “Of course!” We decorated the house, baked cookies, priced it to sell, and within three weeks Stan and Andrea could move on. That was a very different market, with far less buyer demand than now. We fully believed the beautiful decorations and homey smells contributed to a feeling of warmth, safety, and comfort for the buyers. People are craving that even more today.
Less competition can help fuel multiple offers and a quicker sale than in the spring when dozens more homes may be on the market in your neighborhood. Position your product to sell when demand is high, and competition is low. As I said in #1, buyers who are looking for their next home now are motivated to get a deal done.
Technology has enabled us to avoid more feet through the door than is absolutely necessary. Our brokers at Kentwood Real Estate have become masters of virtual open houses, virtual tours, drone photos, and safe showing protocols. Sellers can use our technology to restrict showing windows if they want to avoid certain days and times.
In Colorado, home builders are busy keeping up with demand. They’re low on inventory at the moment and have been rapidly raising their prices due to supply chain and labor shortages and to slow traffic in order to get some breathing room. By spring 2021, they’ll be more able to handle the buyer demand, which will add additional inventory to our market.
Still on the Fence?
It feels complicated. It’s the holidays, there’s a nasty virus going around. The inclination may be to hole up and wait. However, if you’re considering selling your home in the next few months, it may be wise to consult with your real estate broker to see how the holiday season is shaping up in your neck of the woods.
Today’s Colorado real estate market has high buyer interest and low housing inventory. With so many buyers competing for a limited number of homes, it’s more important than ever to know the ins and outs of making a confident and competitive offer. Here are five keys to success for this important stage in the homebuying process.
1. Listen to Your Real Estate Broker
A recent article from Freddie Mac offers guidance on making an offer on a home in today’s market. Right off the bat, it points out how emotional this can be for buyers and why trusted professionals can help you stay focused on the most important things:
“Remember to let your homebuying team guide you on your journey, not your emotions. Their support and expertise will keep you from compromising on your must-haves and future financial stability.”
Your real estate professional should be your primary source for answers to the questions you have when you’re ready to make an offer. Working with an experienced broker will ensure that all your questions are answered correctly.
2. Understand Your Finances
Having a complete understanding of your budget and how much house you can afford is essential. The best way to know this is to reach out to your lender to get pre-approved for a loan early in the homebuying process. Only 44% of today’s prospective homebuyers are planning to apply for pre-approval, so be sure to take this step so you stand out from the crowd. It shows sellers you’re a serious, qualified buyer and can give you a competitive edge if you enter a bidding war. You can find our excellent lending team at Prosperity Home Mortgage here.
3. Be Ready to Move Quickly
According to the Realtors Confidence Index, published monthly by the National Association of Realtors (NAR), the average property being sold today is receiving more than three offers and is only on the market for a few weeks. These are both results of today’s competitive market, showing how important it is to stay agile and vigilant in your search. As soon as you find the right home for your needs, be prepared to work with your agent to submit an offer as quickly as possible.
4. Make a Fair Offer
It’s only natural to want the best deal you can get on a home. However, Freddie Mac also warns that submitting an offer that’s too low can lead sellers to doubt how serious you are as a buyer. Don’t submit an offer that will be tossed out as soon as it’s received. The expertise your agent brings to this part of the process will help you stay competitive:
“Your agent will work with you to make an informed offer based on the market value of the home, the condition of the home, and recent home sale prices in the area.”
5. Be a Flexible Negotiator
After submitting an offer, the seller may accept it, reject it, or counter it with their own changes. In a competitive market, it’s important to stay nimble throughout the negotiation process. Your position can be strengthened with an offer that includes flexible move-in dates, a higher price, or minimal contingencies (conditions you set that the seller must meet for the purchase to be finalized). There are, however, certain contingencies you don’t want to forego. Freddie Mac explains:
“Resist the temptation to waive the inspection contingency, especially in a hot market or if the home is being sold ‘as-is’, which means the seller won’t pay for repairs. Without an inspection contingency, you could be stuck with a contract on a house you can’t afford to fix.”
Today’s competitive market makes it more important than ever to make a strong offer on a home, and a trusted expert can help you rise to the top along the way. Working with a Kentwood Real Estate broker will ensure you are working with experts in the field with vast experience and knowledge in the Colorado housing market. Contact us at www.Kentwood.com
Kentwood Real Estate is pleased to announce the sale of homes that sold in October for over $2,000,000. The listings and sales had a total sales volume of over $43,000,000.
“Our passion is to inspire people to dream about the next steps in their life journey,” said Gretchen Rosenberg, president and CEO of Kentwood Real Estate. “Our belief is always rooted in the philosophy that we accomplish more together. This guiding principle, coupled with the exceptional real estate expertise of our brokers, has continued to position our brand as the preeminent source for luxury real estate in Colorado for four decades.”
The significant sales in the month of October for Kentwood Real Estate are as follows:
Kentwood Broker Associate Linda Hantman represented the seller of a six-bedroom, 11 bath, 11,922 square-foot home in Cherry Hills Village Neighborhood that sold for $4,600,000. Located on 2.5 private acres, this premier residence offers a gracious floor plan that includes vaulted ceilings, cathedral windows, and architectural details throughout the home. Two staircases lead to the upper level featuring a private master bedroom suite with a fireplace, sitting room, marble bath, his/her walk-in closets, and a balcony. This home highlights exceptional Colorado living with a finished basement that includes a wet bar, wine cellar, theater room, billiard room with fireplace, bedroom, and full bath. The spacious, professionally landscaped gardens and grounds are complete with a private outdoor pool with a deck, hot tub, and spa, and a pool house with bath, gas fireplace, built-in gas grill, pergola, and numerous patio seating areas ideal for year-round indoor and outdoor entertainment.
Kentwood Broker Associates Jon & Peggy Gordon represented the seller of a four-bedroom, four-bath, 7,040 square-foot home located in the lovely Hilltop Neighborhood that sold for $2,350,000. Kentwood Broker Associate Gina Lorenzen represented the buyer of this home. Situated in one of Hilltop’s best locations, this stunning custom home features a first floor with a grand open living and dining room with ten-foot ceilings, a dramatic limestone-surround fireplace, and custom built-ins and sets of french doors from the dining room leading to a large covered patio and beautiful backyard. Rounding out the main is a beautiful study and powder room. The second floor, with dramatic high ceilings, features a master suite, huge master bath, and large walk-in closet, along with two more bedrooms, each with its own bath. The basement is delicately finished and flowing with the rest of the home, making this residence an entertainer’s dream.
Kentwood Broker Associate Jill Schafer represented the seller of a four-bedroom, four-bath, 7,384 square-foot home in Cherry Hills Village which sold for $2,350,000. This spectacular, solitary 2 acre home in Cherrymoor features a peaceful pond and is located on a corner lot, adjacent to a bridle path that leads to only one neighbor. The overall floor plan features a large original kitchen that opens to a casual dining area or hearth room and floor to ceiling windows that host views of the pond. The expansive living room features a stunning wall of windows and sliders that lead to a balcony overlooking the backyard. The main floor master suite has a walk-in closet and a five-piece bath. Located upstairs are two expansive bedrooms and a bath, as well as a massive unfinished space where the owner can add-on. The walk-out lower level with a game room, a bedroom, bath, workshop, and a large amount of storage, makes this a breathtaking lot in one of Cherry Hills Village’s finest neighborhoods.
Kentwood Broker Associates Ann Kerr & Charlotte Connolly represented the seller of a five-bedroom, eight bath, 6,452 square-foot home in The Buell Mansion which sold for $2,344,000. This rare modern beauty is an elegant and stylish design that meets with warm and comfortable living spaces. With floor to ceiling windows, the entire home is bathed in light with contemporary architecture on a corner lot that hosts multiple patios and balconies, and thoughtful landscaping. The open concept main floor, designer kitchen, and formal dining with a temperature-controlled wine closet are just a few of the additional perks, along with a spacious master suite with his/her closets, steam shower, and a balcony overlooking the backyard. Finishing with a private and secluded guest suite, this home has been meticulously maintained with thought going into every design element.
Kentwood Broker Associate Jim Rhye represented the seller of a five-bedroom, six-bath, 4,607 square-foot home in North Country Club that sold for $2,320,000. This light, classic brick Georgian home sits majestically on Williams Parkway, one of Denver’s premier streets. In 2016, a major renovation was completed to this residence, making the home turn-key and ready to move in. Inside, there is a sparkling white kitchen with a large marble center island that opens to the family room, which hosts a fireplace and views of the landscaped outside. There are five bedrooms and six beautifully updated baths, plus a wood-paneled office. Majestic trees and a large parkway make for enjoyable short strolls to Cherry Creek.
Kentwood Broker Associate John Fitzpatrick represented both the buyer and the seller of a six-bedroom, six-bath, 8,960 square foot home in The Preserve that sold for $2,320,000. Located in the Estate Section of the Preserve on 1.9 manicured acres, this property contains a traditional floorplan featuring a main floor master suite, and a finished walkout basement with two more large bedrooms, and a recreation room with a wet bar and fireplace. Separate billiard or pool room and lower study are also featured in the floor plan. With full deck access, the backyard overlooks the heated and filtered pond and pool, and a fire pit and hot tub. Close to the Highline Canal Trail, residents enjoy all the amenities of the Preserve with a large pool, tennis courts, and party pavilion.
Kentwood Broker Associate Sana Wood represented the seller of a five-bedroom, five-bath, 4,940 square-foot home located in the beautiful Washington Park neighborhood that sold for $2,299,000. Kentwood Broker Associates Gayle Glucksman & Tiffany Glucksman Appel represented the buyer of this home. A stunning residence, this home offers unique features like an open floor plan, gourmet kitchen, and a large family room with an oversized folding door that leads to the back patio. The main floor hosts a study or office and a gorgeous private master suite with heated floors and a master bath, while the upstairs features two additional upstairs bedrooms with ensuite baths, as well as a laundry room. Included in the floor plan of this home is a finished basement with a wet bar area, an exercise room, and plenty of space for family and game room.
Kentwood Broker Associate Chuck Gargotto represented the seller of a five-bedroom, five-bath, 7,672 square-foot home located in Cherry Hills Village that sold for $2,200,000. Kentwood Broker Associate Josh Steck represented the buyer of this home. This beautiful Georgian style residence in Old Cherry Hills was built from the ground up, with the master bedroom and three additional bedrooms located upstairs, and a finished lower level and lovely outdoor patios below. This two-story home features a large living room and dining room, high ceilings in every room, an open chef’s kitchen, and a family room which both open to the pergola covered backyard patio and fire pit. The finished basement contains high ceilings, a recreation room, home theatre, exercise room, wine room, and the fifth bedroom and bath.
Kentwood Broker Associate Julie Winger represented the seller of a four-bedroom, four-bath, 5,389 square-foot home located in the Park Hill neighborhood that sold for $2,150,000. This custom home features amazing living space and light with groove beadboard ceilings, and an open floor plan that hosts a spectacular grand entryway with a two-story, sky-lit atrium. On the main floor, the kitchen comes equipped with every bell and whistle and leads to an incredible master bedroom suite. Three additional bedrooms are located upstairs, and exceptionally high-end finishes and exquisite details can be found throughout the entire home, such as gorgeous quarter sawn white oak floors, multiple antique and custom stained glass pieces, and transom windows on all bedroom doors. Outside hosts professionally landscaped outdoor spaces, including an in-ground, heated pool, and delightful lounging space with a spacious patio for dining and hanging out by the fire pit.
Kentwood Broker Associate Edie Marks represented both the buyer and the seller of a six-bedroom, seven-bath, 5,665 square-foot home in Cherry Hills Village that sold for $2,148,400. The brick English Tudor sits on over 2 acres of land and displays panoramic mountain views from Pikes Peak to Longs Peak. Hardwood floors, exquisite transitional cabinetry, and extensive built-ins make this home ideal for its new residents. The “Prairie Style” windows and doors not only bring the mountain panoramas in, they bathe every room in filtered light.
Kentwood Broker Associates Bobbi Lou Miller & Jennifer Dechtman represented the seller of a four-bedroom, six-bath, 5,710 square-foot home in Cherry Creek North that sold for $2,100,000. An art lover’s dream home, this contemporary residence hosts soaring ceilings and natural light. The singular master suite has a roomy master bath that includes warm floors and a television in the mirror, and a kitchenette to round it all out. The distinctive and spacious gourmet kitchen is equipped with five dishwashers, a Miele master chef oven, three U-line refrigerators, and custom cabinets with a hidden walk-in pantry. The adjoining and well-lit artist studio or exercise room catches the north light. An elevator to all levels makes every room accessible, and the separate outside entrance provides space for an ideal home office, nanny, or guest suite.
Kentwood Broker Associates Greg Margheim & Kelly Sophinos represented the seller of a five-bedroom, eight bath, 7,330 square-foot home in Polo Reserve Neighborhood that sold for $2,070,000. The idyllic gated community is among the best Colorado has to offer. This one-owner home has been meticulously maintained and is situated on a private cul-de-sac lot with mature landscaping, private patios, a fabulous pool, and a firepit designed for year-round entertainment. European inspired, this residence boasts five bedrooms and eight baths with a main floor office or library and a true cook’s kitchen with state of the art appliances that include a 300+ bottle wine closet as well as a full-size butler’s pantry. The upper level includes a library, four bedrooms with attached baths, a steam shower, his and her water closets, and a large walk-in closet. The fully finished walk-out basement hosts a large recreation room, bar, exercise room, steam shower, guest bedroom with bath, and plentiful storage. The oversized, side load, six-car garage with lift is the icing on the cake for this beautiful home.
Kentwood Real Estate also represented the buyers of one luxury homes that sold in October as follows:
Kentwood Broker Associate Elizabeth Sacerdoti represented the buyer of a home in The Buell Mansion that closed for $2,800,000.