Colorado Real Estate News

Denver Market Trends

The Denver Metro market continued to normalize in October.

Active inventory declined slightly to 7,290 homes on the market at month’s end. However, this is an increase of 115.94 percent year-over-year. While this number reads as a jump, the current inventory is still less than the pre-pandemic inventory numbers of 8,557 active listings in October 2019.

Rising inflation and interest rates are changing the landscape of the market, showcased in new listings. New listings coming on the market declined 26.73 percent from last month and 27.92 year-over-year. As a result, Denver Metro saw its first small decline in average and median sales prices last month. However, sale prices skyrocketed over the last two years so as a result, the market is well ahead of historical appreciation metrics of where the Denver market would likely have been in fall 2022 had it not experienced a pandemic-fueled buying frenzy.

The Luxury Market saw the number of new listings and closings decrease dramatically, and the close-price-to-list-price ratio increase from the previous month.

Throughout the month of October, listings decreased by 28.69 percent compared to the previous month. There has always been seasonality in the market and a decrease in active listings is consistent with the past. The value of houses is about the relationship between supply and demand. While supply did drop dramatically, the amount of closed properties decreased by 31.52 percent compared to September.

The market shift changed the dynamic between sellers and buyers.

Months of inventory for single-family detached properties is 3.43 and for attached properties is 3.08. The Luxury Market has the highest months of inventory of any price point. This change shows that the demand for this type of property has proportionally decreased more than the supply has. The increased months of inventory translated to buyers having more negotiating power with appraisal and inspection clauses back in contracts.

*Updated as of November 3, 2022.

Colorado Real Estate News

Misconceptions in This Current Denver Metro Market

As the Denver market normalizes, we are grateful that there remain many opportunities to look at the silvering lining of the industry. The evolving marketplace allows buyers, particularly luxury buyers, the gift of time to decide on a home while negotiating terms that suit their needs and dreams. Meanwhile, sellers have more time to analyze the marketplace to position their homes correctly while being able to experience a great return on investment due to rising prices over the last few years.

As of late, we’ve noted that 2022 is constantly compared to 2021, which was anything but normal, and year-over-year comparisons are painting a deeply negative picture which causes confusion in the current market and what next steps to take. Below, we are focusing on dissecting some of the whispered misconceptions that we have been hearing of from our buyers, sellers, and other industry professionals in hopes that it helps potential buyers and sellers, particularly in the Luxury Market, make more informed decisions as we head into 2023.

Overall in the market, active inventory did slightly decline to 7,290 homes on the market at month-end, but this doesn’t mean what you think it might.

The misconception here being that many are not acknowledging how this relates to the pandemic’s affect on housing. While this is a staggering jump, and increasing inventory continues to make news, we would like to point out that the current inventory is still less than the pre-pandemic inventory of 8,557 active listings in October 2019. As our market readjusts, both in luxury and overall, we have to bring into consideration that the last two years of COVID-19 have been more of the exception, and not the rule.

Our CEO, Gretchen Rosenberg, pinned an article on Kentwood’s website in August explaining: “Do you remember what the interest rates were in 2018? The average that year was 4.54%, but they got up to 5%. Not altogether that far off the rates today as I write this. Again, 2020 and 2021 were not usual or customary, they were a reaction to a once in a lifetime black swan event.”

If COVID-19 had not occurred, records from DMAR also conclude that the market trajectory is on pace with where it should’ve been back then.

The market is crashing and as a result, the Luxury Market saw a decline in closed properties and new listings this month, meaning buyers have all the power.

This statistic has some startled, however, our point of view is that there has always been seasonality in the market and a decrease in active listings is consistent with the past. The value of houses is about the relationship between supply and demand. While buyers may think they have negotiation power in this market right now, it’s a bit of a misconception because many sellers are hesitant to drop their price too much, which is why the close-price-to-list-price ratio in October was 98.72 percent. We suspect November will represent a similar flow as October.

When buyers say that they want to wait until the New Year to buy, this rarely means January 1st.

While this may not be a “current market” misconception, and more a “November and December misconception,” it’s worth noting that this time of year brings a slow down with the holidays that continues into early spring. When people state that they are going to “start looking” for a home, it usually really begins around the third week in January or later.

We continue to still see bidding wars in the Luxury Market.

While bidding wars are certainly not as common, there’s a misconception that they are obsolete and that is not the case. We have heard of buyers that had to compete on a million-dollar house that went above the asking price. Each listing will always dictate its own story. The key to receiving multiple offers in this market is to price conservatively.

“Houses are no longer selling themselves … but if you wait til spring you’ll be fine.”

On the flipside, homes are not selling themselves in quite the same manner but the misconception we’re starting to see is reflected in how few new listings there were last month in the Luxury Market. We stand by the recommendation that it’s still important to remember to invest in photography, staging, and open houses, plus have a price reduction strategy ahead of listing.

If you plan to wait to sell until spring, do not hold off on the updates.

On the contrary, plan ahead of time to do all the “little” updates necessary to sell your home quickly. Include replacing light bulbs, painting, servicing the HVAC, getting carpets cleaned, repairing screens and decluttering on their home maintenance project list. Other recommended fall home projects include:

●  Paint the exterior of the home

●  Aerate and overseed lawn

●  Clean the gutters

●  Winterize sprinklers

●  Repair the roof, if needed

Whether you’re looking to buy or sell a home, reading past the headlines and hyperbole is key. Having an experienced Kentwood Real Estate Broker who knows what’s happening in the housing market can help you make an informed decision. Other team members who will be valuable as you go through the process: Prosperity Home Mortgage and HomeServices Insurance. Our partners who we trust to help you dissect the news and apply it to your life decisions.

Colorado Real Estate News

Denver Market Trends

As the Denver real estate market continues to change, the question on everyone’s mind is whether or not we are in a buyer’s market.
Traditionally, a market with less than three months of inventory is considered a seller’s market. In direct relation to that, a market with more than six months of inventory is considered a buyer’s market, which means that three to six months of inventory is defined as a balanced market. These benchmarks help define the current Denver Metro market, which is changing.

The $1 million and over segment for attached homes is at 2.83 months of inventory.
Using months of inventory as a metric indicates that Denver Metro is moving toward a balanced market and Luxury Market sellers are focused on getting their homes on the market, and it shows.

New luxury listings were up 18.86 percent from August, with a total of 649 homes priced over $1 million hitting the market in September.
The attached Luxury Market saw a massive increase in new listings, up a notable 66.67 percent from the prior month. With 5,962 new listings hitting so far this year, the Luxury Market is enjoying the highest amount of inventory in years.

Luxury buyers also have more time to decide which luxury home to buy.
Both detached and attached markets saw a significant increase in the average days in the MLS from August, up 31.82 percent or 29 days for detached, and 40 percent or 35 days for attached. This slowing market is echoed in the drop in pending sales in September, which decreased by 16.35 percent for detached homes and 8.33 percent for attached.

The spring frenzied bidding wars also seem to have subsided.
The close-price-to-list-price ratio dropped below 100 percent again this month, to 98.21 percent for detached and 99.30 for attached. Although the detached Luxury Market enjoyed an annual appreciation from a price per square foot perspective of 9.41 percent and a flat month-over-month appreciation, the attached market suffered a decline in annual appreciation of 0.18 percent and an even bigger decline month-over-month, by 5.26 percent.

Colorado Real Estate News

Denver Market Trends

July 2022 showed a summer market that is receiving a “cool off,” but with current conditions, it’s still not enough to push Denver Metro’s current seller’s market to a buyer’s market.
Data confirmed that the Denver Metro area is no longer in a shifting market. Instead, it has shifted, and the real estate market is more balanced. Month-over-month, the market is down 3.33 percent but compared to last year, it is still up 11.04 percent, indicating that a more balanced market, combined with slightly decreasing interest rates, has helped create opportunity for those who previously felt burned out on the process.

One major primary indicator of a shifted market is the close-price-to-list-price ratio, which was down to 100.81 percent.
Buyers have become more specific about what they are looking for and frequently question if, and how much, below the asking price they can offer. Gone are the days when a seller can simply put a sign in the yard and expect their home to sell.


Month-end active listings increased 21.53 percent in July.

Pending and closed deals decreased and days in the MLS increased by exactly 30 percent. However, the market is still far from what many experts would consider a buyer’s market.


With mortgage rates that briefly went over six percent, the Luxury Market also felt the seasonal cooling in July.
New listings were down 22.13 percent, pending sales were down 18.16 percent, and closed homes were down 30.80 percent since June. There were 718 new luxury listings in July and 492 closings.


At the end of the month, there were 1,190 active homes for sale in the Denver Metro area over $1 million signifying that luxury inventory is up.
Compared to last year, inventory has increased 39.05 percent, with most of that in detached homes. Notably, the months of inventory increased in July to 2.37 months for detached luxury homes and 3.31 months for attached.


*Updated as of August 6, 2022.

Colorado Real Estate News

Important Steps and Considerations Before Listing Your Home

Listing your home is a monumental moment in your family’s life and should be navigated with great care to avoid unnecessary stress and last-minute delays within the listing and selling process. Here, we outline 9 important steps and considerations for your family to make before listing your home.

Home repairs
From stained ceilings to broken windows or even cracks in your floorboards, it’s time to fix these nagging issues and get ahead of the game. Not only will repairing these damages increase the value of your home, but it will also ensure no delays in the potential sale following the necessary visit from a home inspector.

Declutter, declutter … and declutter some more
It is imperative that your home looks livable to potential buyers. Decluttering can be difficult since there are so many core memories tucked away in those books, toys, photographs, decor and documents but remember getting started is the hardest part. If you are unable to throw away or shred some items, it may work for your family to get storage tubs to at least get clutter out of the way.

Clean!
Although this may sound obvious, roll up your sleeves and get to cleaning. By cleaning, we don’t mean your average sweeping or dusting; we are talking about those little-used closets and other nooks and crannies that are usually overlooked. We recommend starting from the top down from ceiling light fixtures to floor vents and leaving no corner untouched. Oh, and don’t forget how much of a difference clean windows can make to the appearance of your home!

Simple and neutral decor
During your decluttering and cleaning phases, try to ponder what, if any, flashy or attention-drawing decor you can remove from your home. Although this decor may sit close to your heart, it is best to leave your home as simple and neutral as possible to allow the buyer to imagine their own potential dream home.

Curb appeal
Without fail, the outside of your home makes the initial impression. For someone to be interested in the interior of your home, they must first be impressed with the exterior. With the addition of a neatly-kept yard and a pleasing garden, you will be sure to woo many prospective buyers.

Upgrades
Another consideration to make is upgrades throughout your home. Whether it be fencing, hardware, tech, lighting, appliances or even paint, sometimes seemingly unimportant upgrades can significantly increase the value of the potential sale.

Bathrooms
For some people, the bathroom can be a make-it or break-it aspect of the home. Putting extra care and cleanliness into the bathrooms can not only elevate the value of the sale but also become a selling point when touring potential buyers.

Refine top selling points
Refining and understanding the selling points or value proposition of your home, whether it be the location, the property or the house itself, and making that value abundantly clear through the listing process will help ensure a successful sale from both parties’ perspectives.

Market considerations
Last but certainly not least, it is crucial to take in external considerations such as your local real estate market. This will allow you to gauge how long it may take to sell and choose a price point for your home that gets you the best possible return on your investment.

Colorado Real Estate News

Denver Market Trends

June 2022 demonstrated how sellers and buyers continue to adjust to the economic factors at hand.
As month-end active inventory continues to increase, the Denver Metro hit a new record for the average price of attached properties at $504,193 and $810,415 in detached properties. At the end of June 2021, Denver Metro ended with 3,122 properties, 2,137 detached homes and 985 attached on the market. DMAR reported it has now almost doubled that amount over the year, with a total of 6,057 properties, 4,684 detached homes and 1,373 attached, currently sitting on the market.

Buyers are feeling the woes of the economy.
Many first-time homebuyers who were initially pre-approved towards the beginning of the year with a specific interest rate decided to wait to buy until it wasn’t as competitive. But, when they restarted their search in May, they found that it was with an increased interest rate.

A summertime increase in inventory is part of the normal seasonality of the real estate market.
However, with the 65.85 percent increase in inventory compared to the previous month, Denver Metro should expect more balance as prices appear to be stabilizing. This was reflected in months-of-inventory, which is now at 1.19, the first time it has been above one in months since June 2020, but well below the 4-6 months-of-inventory of a truly balanced market.

The Luxury Market homes also saw an adjustment as the Denver Metro hit the midway 2022 point.
While all other pricing segments saw double-digit increases in new listings, there were more new listings in June for the Luxury Market but only a 6.82 percent increase. The impact on the shifting market can be seen most clearly by looking at the pending sales numbers. The number of pending sales of detached homes dropped 21.87 percent month-over-month.

Attached home pending sales were down 42.86 percent from May but closed sales increased 11.11 percent month over month.
While some prices are adjusting, the overall demand is still historically low, resulting in a more gradual change. The amount buyers paid over the listing price for detached homes also dropped from 107.11 percent in May to 103.85 percent in June and from 104.39 percent in May to 102.65 percent for the attached Luxury Market. Altogether, the amount buyers paid over the listing price dropped from 106.85 percent in May to 103.71 percent in June. That means, on average, they still paid above the list price and more per square foot. The attached home has the highest above asking price of all of the market segments.

*Updated as of July 13, 2022

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

While inventory is on the rise, so are prices.

The average price of a single-family detached home in Denver Metro is $825,073, which represents a 3.93 percent increase from April. With consecutive months of increased prices and the recent uptick in interest rates, a buyer’s monthly mortgage has increased as well. The average close-price-to-list-price ratio in April for the detached market was 107.29 percent. The close-price-to-list-price ratio shows that a month ago buyers were still bidding prices up an average of 7% above list price.

Sales velocity, closed sales versus month-end active inventory, is evidence that demand remains high.

Because of this, statistics like average sales price are affected. The most significant factor influencing the supply and demand this month is interest rates. Many homeowners refinanced over the past two years due to low-interest rates at the time. Now rates are hovering around five percent, providing those homeowners minimal financial incentive to move. Moving has become more influenced by a lifestyle or employment change.

Increased interest rates are impacting inventory.

While Metro Denver still has relatively low inventory, it’s no longer historically so.  There were 610 fewer properties on the market last year compared to today. The market usually sees an 8.59 percent increase in month-over-month inventory this time of year. This month, it saw a 44.26 percent increase. Providing hope to buyers.

In the Luxury Market, inventory is also on the rise.

There was a 57.65 percent increase in new listings from this time last year. However, as a result of inflation, more homes will cross the threshold into the Luxury Market simply due to list price or more likely due to bidding wars that can end 20 percent or more over the asking price.

In part due to seasonality, new listings for detached homes rose 26.62 percent from last month. 

This is a 63.73 percent jump from last year for new listings. Pending sales rose 27.15 percent to 562 properties and 599 closed homes, a 17.91 percent increase from last month. 

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

Colorado Real Estate News

It’s Selling Season

Recently a couple who I represented many years ago told me they might be selling their local home and moving to a Colorado resort community. Their question was, “when is the best time of year to put our house on the market?”

If you’re ready to move, you have an incredible opportunity in front of you today. Our expert brokers at Kentwood Real Estate will help you determine when to list your home, but generally our top sales prices are seen between February and May every year.

Looking at the big picture, the opportunity you have as a seller today is unprecedented. Last year was a hot sellers’ market. This year, inventory is even lower, which means the opportunity to sell remains high. Finding your next home in a market with low inventory can be challenging, but is that a large enough concern to pass up some of the best conditions sellers have ever seen?

According to the National Association of Realtors, in February, the average home sold received 4.8 offersWhen buyers are competing like this, they’ll do what they can to make their offer stand out. This could play to your favor and mean you’ll see fewer contingencies; more cash offers and offers over asking price. Selling when demand is high, and supply is low sets you up for a win.

If you’re also looking to buy a house, you may wonder if you’ll have trouble finding your next home. Remember that perspective is key. As Danielle Hale, Chief Economist at realtor.comsays:

The limited number of homes for sale is a lesson in perspective. This same stat that frustrates would-be homebuyers also means that today’s home sellers enjoy more limited competition than last year’s home sellers.”

You have an incredible advantage when you sell your house under these conditions. Since buyer demand is so high at a time when seller listings are so low, there’s a good chance buyers will be competing for your house. An experienced broker can next help you navigate the purchase process.

Today, there are far more buyers looking for homes than sellers listing their houses. Connect with a Kentwood Real Estate Broker so you have expertise on your side to help you win when you sell and when you buy.

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.