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

Denver Market Trends

Inventory growth in the Luxury Market.

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

Sales prices continue to grow.

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

Sellers need to stay grounded.

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

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

Colorado Real Estate News

Denver Luxury Market Trends

Luxury Real Estate in the Denver Metro Area Increased Over 2020 – Levels in 2021

The housing market in Colorado reached historic numbers regarding the sale price of homes and inventory has dwindled since the real estate boom in 2020 ignited by the pandemic.

New year-end market reports and year-end luxury reports comparing 2021 real estate performance to 2020’s has been released. The following entails Kentwood’s synopsis of year-end market trends in the Denver Metro Area. 

In 2021, the average sale price for a single-family home in the Denver Metro Area increased by 19 percent to an average of $682,489. Single-attached homes also saw a similar price increase of 14.3%, increasing the average sale price to $428,825. Although it looked like the Denver Metro real estate market was going to slow down in comparison to the boom of 2020, the overall listings closed in the calendar year increased by 0.3 percent.

The Luxury Market of the Denver Metro area continues to show strength through an increase in home buying. The number of luxury properties sold in the Denver Metro area saw a drastic increase of 59.9 percent in 2021 compared to 2020 reaching a total of 4,200 homes. The average sale price of high-end listings in the area increased by 3.7 percent, totaling the average sale price of luxury homes to $1,613,563. The increase in properties sold and a marginal increase in average sale price contributed to a grand 65.7 percent increase in total dollar volume. Indicating that luxury real estate properties in the Denver Metro area accumulated $6,776,964,868 in 2021.

Multiple Denver Metro neighborhoods saw significant improvements in buying activity in 2021. The Huntington Trails/Lexington neighborhood had the largest percent incense in luxury properties sold over 2021 at 66.7 percent. The city of Denver sold 2,051 luxury homes in 2021, a 65.9 percent increase over 2020 and the most in Denver Metro. Washington Park East/Central neighborhood had the second-highest number of luxury real estate sales, totaling 146 homes sold in 2021.

The demand for homes in the Denver Metro area combined with low inventory levels contributed to the appreciation of average sale prices in many neighborhoods. The average sale price for luxury properties in the Polo Reserve neighborhood increased by 40.7 percent in 2021, averaging $2,899,375. The Cherry Hills Village homes sitting on more than one acre of land had the highest average sale price, at $4,264,858. Similarly, homes in Greenwood Village West sitting on more than one acre of land appreciated by 36.8 percent, closing at $3,413,539 on average. Conversely, luxury homes in the Mayfair/Montclair neighborhood had the lowest average sale price of 2021. Homes in this neighborhood closed at an average of $1,352,158.

One big takeaway beyond the increase in the number of luxury properties sold and the average sale price of those homes is the average amount of days on the market. Of the 20 neighborhoods that were included in the year-end luxury report, only two neighborhoods had properties that stayed on the market longer in 2021 compared to 2020. In the Denver Metro area luxury homes remained on the market for an average of 27 days in 2021. A 49.1 percent decrease compared to 2020. The luxury properties in the city of Denver stayed on the market for an average of 29 days, a 31 percent decrease from 2020.

The strength of the real estate market in 2021 is a good indicator that this year may also yield some great opportunities for buyers and sellers looking for their dream home in Colorado.  

Colorado Real Estate News

Denver Market Trends

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

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

The Luxury Market is staying strong.

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

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

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

Attached and detached homes leaving MLS quickly.

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

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

Colorado Real Estate News

CEO Reflections: Finding Gold

Getting Gold Takes Perseverance

This isn’t about the Olympics, although it could be. It’s about gold mining in Colorado.

During the Colorado gold rush in the 1800’s there was a miner who came west to stake a claim and make his fortune.

The miner found a vein of ore and as he dug into the earth he planned what he would do with his pile of gold. He dug and dug for months but it became apparent that the vein he’d discovered ended soon after it started. Despondent and exhausted, he sold off his equipment and moved home to become an insurance salesman.

Reaching the Tipping Point

Malcom Gladwell writes about the concept of perseverance and not giving up just before you “tip” into the success you’ve worked toward. The junk man who bought the miner’s equipment instinctively knew this and took up the project with the help of an expert who calculated where the vein of gold likely ran. The junk man struck it rich just three feet away from where the original miner had given up.

Your Expert, Your Gold

Being a home buyer in 2022 is much like being that miner. Keep at it and don’t quit three feet from gold. Perseverance is key, patience is paramount and the help of an expert who knows the landscape is invaluable.

How are our Colorado real estate experts at Kentwood Real Estate are helping their clients?

· They’re making sure buyers are in the best financial position to be competitive. Pre-approval from a reputable lender like Prosperity Home Mortgage is key.

· They’re staying informed up to the minute of neighborhood closings that could affect value and helping buyers determine whether they can (and should) provide appraisal assurance to the seller.

· They’re helping buyers understand the pros and cons of a contingent home inspection and where hidden expenses might lurk in the future.

· And they’re never giving up, creating a partnership with their clients that will see them through one or twenty one offers and months of digging for that perfect house.

Great real estate professionals are adaptable and resilient. Small scale or large, luxury or starter, we’re here to help you find your gold in Colorado. In 2022 that may take longer than it used to, but perseverance and professionalism are hallmarks of Kentwood Real Estate brokers.

Colorado Real Estate News

Prepare Your Home for the Spring Market

Preparing your home for the market can be a daunting task, but it’s extremely important. By preparing your home, you are showing that a higher sales price is warranted. Homes in tip-top shape sell for more than properties in less desirable conditions; you’re making your home more marketable! Here are six tips from Opendoor to ready your home for listing:  

  1. Look for what needs to be repaired 

Sometimes it’s easy to ignore minor issues, like squeaky doors, but potential buyers may not like these things; they may see that it lowers the value of your home.  

Go through each room and take note of the repairs that need to be made, including holes and dents in the walls and cracks or scratches on the floor. Ensure that appliances are working in the kitchen and faucets are operating properly. Outside of the home, look for peeling, rotting or cracking. 

Some repairs require a professional, and with our Amplify program, no project is too big or too small. Your personalized project coordinator will help you see what your home needs. We offer renovation projects and cosmetic updates. Find out more on our website!  

  1. Declutter your home and clean 

Make the rooms in your home as spacious as possible to give potential buyers a true look into what the home looks like. Ensure that they’re able to easily walk about the spaces and rooms in your home. Declutter and organize your spaces; buyers look inside closets, cabinets, basements, etc. Consider renting a storage space to keep extra belongings out of the way during showings.  

Deep cleaning is extremely important. Scrub all surfaces and rooms in your home, including the bathroom, kitchen, baseboards, fans and carpets. No one wants to picture themselves in a dirty home! 

  1. Depersonalize your home 

Potential buyers want to picture themselves in your home, with their belongings inside. Remove any personal items like family pictures, souvenirs, CDs and DVDs.  

  1. Paint, paint, paint 

Paint has a way of refreshing your home, making it feel newer. Make sure there are no scratches or chips in the paint.  

Some experts recommend using warm neutral colors in your home because they go with anything, so potential buyers can picture themselves in your home. Kentwood’s Amplify program can help you decide if painting is needed, and will match you with a painter. 

  1. Time to stage! 

Staging is the perfect thing that will make your home give the best first impression to potential buyers. According to Realtor.com, on average, staged homes sell 88 percent faster and for 20 percent more than those that aren’t.  

Rather than staging your entire home, you can focus on rooms that impress buyers the most like the kitchen, living room and master bedroom.  

Staging helps give potential buyers ideas on how they might use the space. Staging the exterior of your home is also extremely important! Make sure the lawn is mowed and flowers are planted. Kentwood has a great staging program to help you out with all of your staging needs! 

  1. Keep your home clean 

Once your home is ready for the market, it’s important to make sure that your home stays clean and consistent. Showings can happen at a moment’s notice and you may not have time to get your home ready. Put things away when they’re done being used, consistently clean and mow your lawn every week to eliminate unpreparedness.  

Preparing to put your home on the market is such an important part of the selling process. It adds so much value to your home and makes your home more marketable to potential clients. At Kentwood, we want to help you with all of your home needs, so contact us today to find out how we can help you! 

Colorado Real Estate News

Denver Market Trends

New historic inventory lows hit the market in January 2022. 

While traditionally the market sees a 70 percent increase in new listings from December to January, the market ended down 17.77 percent in new listings compared to 2021, a 31.04 increase from the previous month. Likewise, the market ended with month-end active listings at a historic low of 1,184.

Last year at this time, there was little inventory. This year, there’s nearly half as much at 48.88 percent less.

This will likely translate to fewer homes being bought and sold over the course of the year as there is less to choose from in the Denver Metro area, inciting the continuation of extreme bidding wars.

In the Luxury Market, buyers and brokers ask whether $1 million is really considered luxury at this point.

The average sales price for the Luxury Market remains at $1.6 million, and it has been for many years. In 2014,  the average price for a single-family home was $380,848 and the average price for an attached property was $238,229. Today, the average sales price in Denver for a single-family home is $689,711, and $450,244 for an attached home, and the average for the Signature Market is in the mid- $800,000’s. 

Inventory for the January Luxury Market was up exactly 100 percent for luxury detached homes, and up 82.61 percent for luxury attached properties. 

It didn’t take long for all that inventory to go though, as 43.48 percent of the detached luxury homes and 19.35 of the attached luxury homes went under contract. 

While Denver Metro had more inventory, the sales volume was down for detached and attached segments. 

The luxury detached sales volume was down 49.86 percent from the prior month and 11.78 percent from one year ago, as Denver saw 47.29 fewer luxury properties close from the prior month and 9.51 percent from this time last year. The attached luxury sales volume was down 48.23 percent and had 55.36 percent fewer luxury condos sold from the prior month and 13.79 percent from one year ago.  

*Written February 7, 2022. Updates may be available after this date.

Colorado Real Estate News

Denver Market Trends

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

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

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

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

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

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

During the holidays, seasonal slowdown was palpable. 

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

Meanwhile, the attached market continued to shine.

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

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

Colorado Real Estate News

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.