Colorado Real Estate News

Real Estate Market Trends

High Buyer Demand in Metro Denver

A record number of Denver-area homes on the market went under contract in June, home prices are on the rise, mortgage rates are a record low and the market is experiencing near record-low housing inventory. These factors are making for a strong seller’s market.

In June, a record number of homes, 7,676, shifted into a pending sale status, up 16% month over month and 27% year over year. Additionally, weekly home closings were back above 2019 levels, ending 11-weeks of a COVID-19 induced housing slump.

Home Prices Rising

In March, pre-COVID-19, the average price for a residential property in metro Denver zoomed above $500,000 for the first time, to $513,535. That price then dipped back down below the half-million-dollar mark during the home-showing shutdown and uncertain economic times in April and May. In June, however, average prices bounced back up to $509,736, the second-highest average price for residential real estate in Denver.

Luxury Market is Coming Back

In June, 7,364 homes were put up for sale in all housing price points, but demand was even higher. More homes were put under contract than came on the market for sale. Less inventory meant home sellers had more power. The only segment of the market in which homebuyers had the edge were condos priced over $1 million. Overall, after the halt earlier this year as a result of showing restrictions and consumer uncertainty stemming from COVID-19, the Luxury Market is picking back up.

The number of homes sold in the single-family luxury segment was up 100% in June to 230 from 115 in May, and up to 15 from eight for luxury condos, an 87.5% increase month over month. At the end of June, there were 413 pending sales, up 38% from last month and an impressive 59% from last year. 

Year to date, Luxury Market listings were up 1.76% over last year. There has been double-digit growth since 2016, so under 2% growth is a significant figure that depicts the true damage stemming from COVID-19.

*Written July 7, 2020. Updates may be available after this date.

Colorado Real Estate News

Real Estate Market Trends

New listings flood the metro-Denver housing market in May

As stay-at-home restrictions stemming from COVID-19 loosened and businesses began phased openings in May, metro Denver had a surge of new listings hit the housing market, up 56% month over month to reach 7,312. Some of the surge can be attributed to sellers putting their homes back on the market after withdrawing them when showings were halted back in March.

Home sales down as expected in May, but homes under contracts skyrockets

The number of sold homes was down 20% month over month and 49% year over year in May, following the weeks of strict home-showing restrictions. The average sold price of a home dropped slightly, back below $500,000 to $495,925. That was 1.24% lower than April but 2.43% higher year to date.

Notably, homes under contract increased a substantial 115% from the previous month.

Home sellers had the upper hand, except in the Luxury Market

There were 7,170 active listings at the end of May, 4.6% more than April but 19% less than the previous year. Home sellers had the upper hand with low inventory in all price ranges except for homes priced over $1 million, where there was 9.5 months of single-family inventory and 25 months for condos. Anything over six months is considered a buyer’s market.

Only 115 homes sold and closed for $1 million or greater last month, down 29% from April and 59% year over year. The closed dollar volume in the luxury segment in May was $174.4 million, down 24.4% from April and nearly 60% year over year.

While the last few months were slower stemming from the pandemic, year-to-date data reflects how hot the metro-Denver real estate market was at the beginning of the year. For example, new listings year to date for single-family luxury homes is only down 1.47% and luxury condos are up 10.45% compared to this time last year.

Colorado Real Estate News

Real Estate Market Trends

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Dramatic shift in real estate since March.

 

Real estate in metro Denver, Fort Collins and the Front Range was primed to be one of the strongest on record at the beginning of March, but took a swift turn later in month due to the impacts of the pandemic. Stemming from Colorado Governor Jared Polis “Stay-at-Home” Executive Order for the entire state on March 25, real estate was classified as an essential service – and the way real estate is transacted has changed significantly.

 

As a company, Kentwood Real Estate has identified ways to safely comply with the order while facilitating transactions that really need to happen – and help clients who very much need guidance right now.

 

Virtual tools are being leveraged and they have proved to work well for homebuyers and sellers today, such as listing photography, virtual tours, e-signatures on contracts and contact-free closings. There are even new components of a contract, like the COVID-19 Addendum that allows a transaction to be extended in the case a homebuyer or seller is exposed or quarantined. These changes are necessary to keep our community safe, and ultimately the health and safety of our fellow neighbors is the most important factor when considering how to responsibly serve homebuyers and sellers.

 

As elements of the executive order begin to be lifted, these virtual tools will remain common practice and will continue to be necessary to maintain the safety of our community.

 

The real estate market throughout Colorado is in a healthy position to come out of this unprecedented situation with strength. There remains a lack of supply and high demand, and that is what keeps prices stabilized and even increasing. While the second half of March notably saw a significant number of homes taken off of the market, they will begin to come back on the market in the near future. The pent-up demand will be evident over the summer, and anyone thinking of selling in the next few months will be able to successfully do so.

 

*Written April 17, 2020. Updates may be available after this date.

Colorado Real Estate News

Real Estate Market Trends

Kentwood-Market-Trends

 

How the Coronavirus is Impacting the Denver Housing Market

Kentwood Real Estate is monitoring the ever-changing real estate landscape stemming from the coronavirus COVID-19 situation. We are staying informed and following the guidance of the CDC, Colorado Department of Public Health and the National Association of REALTORS® to ensure we are providing our clients with the ultimate in ethical, professional representation – we will take all measures to ensure a safe, productive experience.

 
What we are seeing in the metro-Denver residential real estate market today is that overall buyer demand in the local market is keeping activity strong. Historically low interest rates are motivating buyers, and we continue to see multiple offers. While many sellers are continuing to list their homes, some are choosing to pause temporarily. In the case more sellers wait, there will be an increased strain on housing inventory.


Housing Inventory Challenges

In February, while the stock market struggled with coronavirus fears, real estate stayed strong. Month over month, 5.6% more homes came on the market, 7% more homes shifted into a pending status, and 3% more homes closed.

 
The month ended with only 4,835 active listings, down 2% from January and nearly 20% year over year. For perspective, 5,083 listings went under contract in February; so, figuratively speaking, only 39 new listings came on the market that didn’t go into contract.


The ‘New’ Home Showing

To accommodate buyers in today’s new normal, listings are sanitized ahead of showings, and hand sanitizer and booties are readily available. Furthermore, virtual home tours are quickly growing in popularity. Facetime to more advanced 3-D technology are being utilized and becoming a preferred method of house hunting by many.

 
Real estate remains a good investment. We believe the security of real estate as a safe haven from both a psychological standpoint and an investment standpoint will resonate in future weeks and months. Real estate has always weathered economic turmoil in the long run, and will do so now.

Colorado Real Estate News

Real Estate Market Trends Article

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The New Year Kicks Off Briskly for Denver-area Real Estate

In January, a massive influx of new homes came on the market in metro Denver but were quickly scooped up by homebuyers.

 

While 4,853 new listings hit the market, up 89% from December, January ended with 4,941 active listings because homebuyers placed 43% more homes in pending status month over month which diminished the housing inventory surplus.

 

Contributing factors to the market heating up quickly included continued low interest rates and 18 days above the average temperatures in January.


On the Heels of a Slow December

In the entire residential market, there was about a 35% drop in the number of closed homes and sales volume month over month in January which was a reflection of the slower market activity at the end of 2019. As usually occurs this time of year, the days on the market were longer, averaging out to 45 compared to 41 in December.


Steady Home Prices

The average single-family home price was down from its summer highs, but higher year over year by 6.86% to $532,494. The picture is a little different for condos that experienced a 5% month-over-month drop in average price to $355,754, which is also down 0.37% from the same month last year; representing the first price drop in the month of January in at least the past four years.


Homebuyer Advantage in the Luxury Segment

In the Luxury Market, homes priced $1 million+, months of housing inventory increased to 6.92 for single-family homes and 8.5 for condos, up 41% and 68% month over month respectively. So, luxury homebuyers are not having to compete as much as other price segments.
Year over year in January, 11.7% more single-family homes and 20% more condos closed in the Luxury Market. The number of homes that closed in the entire residential Luxury Market was up 12.6% and total sales volume was up 4.7% from one year ago. However, sales volume and the number of homes closed in the entire luxury residential market were both down 46% month over month.

Colorado Real Estate News

Denver Real Estate Midyear Update

Stay on the forefront of real estate news with the help of the mid-year update! Stapleton22

Denver Real Estate Midyear Update: More Conditions Favoring Buyers Creating Balance

With metro-Denver housing inventory at its highest level since October 2013 and interest rates still low, now is a good time for home-buyers. On the flip side, with home prices peaking now is also a good time for home sellers; making for a more balanced market.

Housing Inventory

Housing inventory is up 28 percent year to date from 2018. The first half of this year ended with the most active listings, at 9,520 at the end of June, since October of 2013 which was at 9,734. For perspective, the record-high June for active listings was in 2006 with 31,900, and the record-low was in 2015 with 6,197.

Year to date in the Luxury Market (homes priced $1 million+), single-family home sales were down 2.72 percent year over year, but up 34.05 percent compared to 2017. Luxury condos also saw striking results with sales up year to date at 38.78 percent year over year and 4.26 percent since 2017.

Home Prices

The average sold price dipped 0.54 percent from May’s $502,518 to $499,807 at the end of June, but it crept up 1.64 percent year to date. More choices for home-buyers means sellers have had to make price adjustments to be competitive. Sellers with homes priced between $1,500,000 and $1,750,000 have been taking the biggest cut with a 91.20 percent sale-to-original-price ratio for single-family homes and 94.9 percent for condos.

Days on Market

Homes have been staying on the market longer before going under contract this year. The median days on market was up 66.67 percent from six days at this point last year to 10 so far in 2019. The average days on market is up 25 percent year to date compared to last year, from 24 to 30 days. Meanwhile, days on market for all price ranges indicates a seller’s market except over $1 million+ where it’s an equal market between buyers and sellers with 5.16 percent months of inventory for single-family homes.

Colorado Real Estate News

More New Homes Hit the Denver Market in May

CORYMERRILL7 copy2More Home Choices in May

In May, there were 8,789 new listings, up 17 percent from the previous month. That meant home-buyers were able to look at a number of homes at a time and make comparisons – and many found what they were looking for. At month’s end, there were 6,470 homes under contract, up 5.65 percent from April.

Even with all of those offers written and accepted, the month still ended with 8,891 homes for sale. That is the highest end-of-month number of active listings since November 2013 when buyers had 9,352 choices! Yet, when put in perspective, it’s very low compared to the high in May 2008 when active listings reached 26,333 in total.

Home Prices Breaking Records

The market has been experiencing a drought of new homes for years, so the increase in inventory is a welcome relief for buyers. Even with the added inventory, prices were still up. The average single-family home price reached a record-breaking $555,482!

Year to date, for single-family homes, the average sold price was $534,577 and median sold price was a record-breaking $450,000, up 1.45 and 1.12 percent from last year respectively. The average sold price for condos year to date bumped up 3.11 percent compared to last year to $364,134, and the median price topped out at a high of $301,500.

Luxury Market Sales Steady

The number of sales of $1 million+ homes remained steady at 915 year to date, up 1.55 percent from last year. While sales in the single-family market decreased year to date by 2.8 percent from 2018, there has been a large jump in condo sales with 110 sold year to date compared to 73 in 2018, an increase of 51 percent.

There has not been any significant changes month over month or year over year in terms of price per square foot, outside of the condo total price per square foot metric that significantly jumped from $546 last year to $656 in May of 2019 – an increase of 20 percent. Single-family average price per square foot continues to hover around $300, ending May at $297.

Colorado Real Estate News

Love Was In The Air In February’s Real Estate Market

February's Real Estate MarketLove was in the air in February’s real estate market

In addition to the number of homes under contract being up nearly 16 percent month over month in metro Denver, the Luxury Market (homes priced $1 million plus) faired particularly well too. Last month, 119 homes in the luxury segment closed for a total of $178,766,560 in sales volume, accounting for an over 23 percent increase from January.

Of course, long-term home closings in the Luxury Market are down 6 percent year over year, making the start to 2019 slightly more challenging. But, with 6.58 months of housing inventory, March is a great time to take the market back in bullish fashion for this luxury buyer’s market.

Yes, the selling—and buying—season is back!

In fact, the average number of homes sold in February’s real estate market increased by nearly 5 percent month over month. The culprit? Potentially the 5.6 percent increase in listings from January, which is 47 percent stronger than buyer choices a year ago. And because more single-family homes went under contract than were listed in February, housing inventory surplus is eroding.

For the condo market, however, the number of listings continues its four-year upward trajectory. In fact, there was a notable 79 percent rise in active listings at the end of February.

Freddie Mac also tells a story of ascent in the housing market: With the strong job market and a gradual decline in mortgage rates for the second straight month, housing demand continues in 2019.

No better place to be than at a Mile High

According to Forbes, Denver is the most competitive housing market in the nation. What does this mean for you? That there are far fewer homes for sale than buyers in Denver, putting this market solidly in a compression phase of the housing cycle. And what can you expect? That this cycle will continue while prices rise steadily through June. If it’s anything like years past, we’ll start to see buyer fatigue and inventory hit an annual high in July.

In February, there was a 47 percent increase in active listings year over year for the residential market as a whole, generating a 5.6 percent increase in new listings compared to January.

Denver is still in a strong seller’s market for single-family homes in the non-luxury segment, with only 1.92 months of inventory available.

As an interesting aside, Denver is sixth on the national list of apartments completed, with 11,700 apartments built in 2018.

Colorado Real Estate News

Is it a Seller’s Market for Luxury Homes?

Sellers MarketIs it a Seller’s Market for Luxury Homes?

Has the pendulum officially swung in favor of a buyer’s market for luxury homes priced $1 million and up?

In January, there was 7.65 months of housing inventory for the luxury segment; so, technically speaking, the answer is yes. The industry’s standard definition of a seller’s market is six months or less of inventory currently available, and a buyer’s market is seven months or more.

However, coining the luxury market as a buyer’s market comes with a caveat as it is not so ‘black and white.’ The luxury market in sales velocity is very dependent on the type of property, neighborhood, year the home was built, how updated it is, and so forth.

In this high-end price segment, the Denver area has only just gone over seven months. And when you look at other factors, like days on market, conditions to sell are still great. From 2016 to 2018, the median days on market has ranged from 71 to 84 in the luxury segment. Last month, median days on market was at 41!

So, home sellers must be cautioned not to despair that they are no longer in a “seller’s market,” they just need to manage expectations and price their home right. Home sellers are still in a robust market, in a city with good in-migration, and a great lifestyle.

More Housing Choices is Good for Homebuyers and Sellers

In January, the number of new residential listings for all prices ranges increased 109.7 percent from December to 4,821, an increase of 13.6 percent year over year. Active listings were up just 5.45 percent from the month prior, and up 52 percent compared to 2018’s record-low January reaching 5,881. For comparison, the number of active listings is still significantly below the historic average in the month of January of 13,469 (1985-2018).

So, even though the Denver area is still a seller’s market in most price ranges, there’s no doubt this is the best time to buy in a long time. With more choices and interest rates lower than expected, homebuyers placed more contracts in January compared to December, so more sales are expected.

While buyers are taking advantage of their housing choices, home sellers are still seeing appreciation with the average sold price up from $448,132 in January 2018 to $461,101 in January 2019.

All in all, now is a good time for buyers and sellers.

Colorado Real Estate News

Home Sales Decline in Denver’s Housing Market

September Home SalesCooler days brought with it conditions of a cooler market too in the Denver-area. Is this shift in the market seasonal or something more? In fact, it’s a little bit of both.

Seasonally, we expect to see home prices and sales to drop this time of year. They have been down month over month for the last three months, but, again, this is normal. The outlier, however, is the significant 33 percent month-over-month decrease in sales of homes priced over $500,000. For comparison, metro Denver experienced a 17 percent drop during this same time period last year.

Looking at the housing market from a macro level, what is happening is that we are heading towards balance. Balance is where conditions favor the home-buyer and seller equally, which is not something we have experienced for some years now.

Market Adjustments Affecting Home Prices

In the single-family home market, the average sold price decreased 3.79 percent month over month to $502,034, while the median price decreased 2.73 percent to $428,000. The year-to-date average sold price stands at $523,224 for the single-family home market, up 9.16 percent from last year, with the median sold price at $445,000, up 8.54 percent. Condos continue to outperform single-family home prices with the average sold price of $350,766, representing an 11.38 percent increase over 2017. The median price of condos sold also increased by 12.34 percent to $299,900.

Seasonal Slowdown in the Luxury Market

As far as the luxury market goes, homes priced $1 million and greater, it was a record-breaking summer. While sales of residential homes priced over $1 million plummeted 44 percent from August to September, it is important to look at the whole picture. Year to date, 29 percent more homes priced $1 million and greater have sold this year compared to last year. Furthermore, year-to-date sales volume in this luxury segment is nearing $2.5 billion, a whopping 27 percent increase over last year.

Taking a deeper look at the numbers, in September, 115 homes sold and closed for $1 million or greater – down 44 percent from the previous month and down 4.17 percent year over year. The closed dollar volume in September in the luxury segment was approximately $173 million, down 45.02 percent from the previous month, and down 6.9 percent year over year. Notably, year-to-date sales volume in this segment is outperforming years past. Furthermore, year to date, September had the lowest median and average days on market on record.

Our ‘hot’ market is still thriving, yet it is going through a shift that is to be expected due to both seasonal adjustments and its move toward balance.