Colorado Real Estate News

What to do With 40 Years – Build a Brand

Written by Kentwood Real Estate President and CEO, Gretchen Rosenberg

I have exciting news! Kentwood Real Estate is 40 this week!

Henry Ford said, “Coming together is the beginning. Keeping together is progress. Working together is success.” We’ve completed 40 successful years of changing lives.

In 1981 five brokers formed the beginnings of our brand, The Kentwood Company, which was renamed Kentwood Real Estate in 2008.

The incorporation papers were signed by Roger Campbell this week in 1981. Roger told me, “We wanted a name that was easy to say, easy to spell, memorable, and upscale so we settled on Kentwood.”

Colorado Real Estate History

Other notable names in Colorado real estate who contributed to our success as founders, owners, and leaders are Jim Nussbaum, John Fitzpatrick, Jerry Weigand, Bill Moore and Peter Niederman, Julie Hummel, Dee Chirafisi, Jim Theye, and Chris Vuletich. 

Our original office remains the DTC flagship. In 1998 we added Cherry Creek, in 1999, City Properties, and in 2018 we expanded to Northern Colorado. We added Denver Rental in 2011. Kentwood Commercial and Prosperity Home Mortgage were both launched in 2017.

Our previous owners sold the company to HomeServices of America in 2016, beginning the adventure of our Berkshire Hathaway affiliation.

To our brokers, our staff, and the management team – thank you for your ideas, collaboration, and professionalism. YOU make this company admired, productive and competitive.

To our clients, we say thank you for 40 years of working with the best brokers in the business, for your business, and your support. A focus on clients fostered our success over these 40 years. That laser focus on client experience and market knowledge keeps traditional brokerage relevant into the 21st Century.

Our brokers, loan officers, and support staff make our company special. An organization, no matter how well designed, is only as good as the people who live and work in it. We celebrate all who have contributed to 40 years at the pinnacle of real estate.

We have so much to be proud of at Kentwood Real Estate, Kentwood Commercial, Denver Rental, and Prosperity Home Mortgage, and much more to look forward to. 

At Kentwood Real Estate we believe in community. That we accomplish more together. That deep roots matter. We inspire people to imagine the next steps in their life journey.

Cheers to 40 years!

Colorado Real Estate News

Real Estate Market Trends

February 2021 Depicts an Icy-Hot Spring Market With Buyer Demand on Fire.

The Greater Denver Metro housing market proved that the underlying theme of this market is speed: the speed at which buyers are purchasing relative to the number of sellers listing, and the speed at which active properties are going under contract while prices are accelerating. 

The Gap for Detached Properties Over Attached Properties Shrank in February. 

While many metrics still show that detached properties are in higher demand than attached, that gap decreased in February. There were 3,641 closed properties, up 3.70 percent from last year at this time, and in part because attached properties were on the rise. Attached properties saw a 16.29 percent increase in closings relative to last year at this time. The increased demand for attached properties propelled the market to an average close price of $401,552. Meanwhile, detached properties saw a 1.80 percent decrease in closed properties relative to last year.

Competition Remains Incredibly High. 

The report confirms that with median days in the MLS at five, close-price-to-list-price ratio at 101.90 percent and months of inventory at 0.55, competition remains exhaustive. With properties frequently going over asking price, full appraisal gap waiver appreciation continues to rise. Savviness, creativity, knowledge and guts are all components that will help buyers move towards a path of homeownership in this market.  

The Luxury Market Shows Interesting Trends. 

Last month, DMAR reported that the luxury detached market alone closed on 206 homes, a 10.75 percent increase in this category from last month and a 46.10 percent improvement from last year. More buyers are ready to purchase property over $1 million than the market saw in 2020 and single-family home sellers are enjoying a more crowded and hotter marketplace. While less competitive than other market segments, it remains high with February’s close-price-to-list-price ratio at 97.63 percent.  

*Written March 10, 2021. Updates may be available after this date.

Colorado Real Estate News

Three Reasons to Sell Your Home Now!

photo depicting a mother holding up her toddler daughter in a kitchen

If you are a real estate fanatic like we are, you know that 2020 has been a record-breaking year for the market and it likely won’t be slowing down in 2021. Zillow expects home values to increase 10.3 percent from November 2020 to November 2021 despite the ongoing pandemic challenges. The sales growth continues to be affected by similar factors such as strong demographic trends and a shift in buyer preference ignited by the pandemic. If you considered selling in 2020, this year proves to be just as promising. Still not convinced? Here are three reasons why now is the perfect time to sell your home: 

Interest Rates Are Expected To Stay Low
Get excited because the 2020 below-average interest rates are here to stay! Last year, interest rates were below 4 percent and while they may slightly increase in 2021, they are predicted to remain low compared to historical averages. Let’s put these rates into perspective. According to Freddie Mac, December 10th had a record low rate of 2.71 percent for a 30-year, fixed-rate mortgage. Compared to a year like 2018, where the annual average was 4.54 percent, these record-breaking rates are incredibly beneficial to all homebuyers. Buyers can secure a long-term mortgage at an insanely low rate, and sellers can capitalize on high prices. It’s a win-win situation!

There Are More Buyers Than Sellers
As demand continues to rise, inventory remains low. But this isn’t necessarily a negative situation for individuals looking to sell their homes. Buyers are eager and anxious to purchase a house quickly, especially when the real estate market provides such ideal financial solutions for potential buyers. As mentioned earlier, the low interest rates provide affordable mortgages, ultimately resulting in an inadequate supply of homes to satisfy consumer demand. With such high competition to close a deal, buyers are aggressive with their purchase offers. So why not benefit from these multiple offers and rising prices?

TIP: if you are looking to sell your home, consider investing in house repairs to amp up the curb appeal and receive a higher asking price.

Seasonality of Homebuyers.
Did you know there are seasonal trends for selling and buying a home? In previous years, the spring months are historically the best time to list a home. However, with the unpredictable and uncertain living conditions that we are experiencing, the usually defined “peak of interest” in the market has become blurred. With that being said, the most desirable time to list your home is NOW, so do your homework and prepare to capitalize on the eager homebuyers.

How Kentwood Can Help
Have we convinced you? While there is no better time to sell your home than now, we understand the process can be daunting and often complex. With our local expertise and exceptional service, Kentwood is here to guide you through a pleasurable selling experience! Reach out today!

Colorado Real Estate News

Real Estate Market Trends

photo depicting candles lit in front of a wintery window

January 2021 Presented Brand New (Unsurprising) All-Time Inventory Lows
In January, the Greater Denver Metro housing market again broke a new inventory low with only 2,316 total active listings on the market, translating into an inventory shortage and an opportunity for appreciation to accelerate. 

Single-Family Attached and Detached Homes Also Sealed in Record Prices
Single-family detached properties hit a record average price of $629,159, while attached properties hit a record of $397,792. Single-family homesellers saw a 101.03 percent close-to-list-price in January and a drop to five days in the MLS, down from six last month and 24 days last year. Overall, the drive in demand has been proportionally higher for single-family detached properties than attached properties, explaining why the market is currently sitting with historic-low inventory for single-family detached properties.

2021 Shows No Slowing Down for the Luxury Market
Meanwhile, new listings for the Luxury Market jumped a little from one month ago at 2.22 months of inventory in detached luxury homes and 3.65 for attached luxury homes. 

Even with less inventory year-over-year, the market still saw an 85.71 percent increase in closed attached homes and a 70.19 percent increase in closed detached homes. In January, the luxury residential market was up 85.16 percent year-over-year for sales volume of $335,859,100, up from $181,393,127 from one year ago. The detached luxury sales volume was up 90.11 percent, and the attached was up 48.36 percent from one year ago.  

This Month’s Report Confirms a 2021 Seller’s Market
As long as interest rates continue to remain low and inventory scarce, there will continue to be multiple buyers for every appropriately priced house. Sellers across the state will continue to have the opportunity to navigate through multiple offers and differing terms of their choice, ultimately choosing one contract while disappointing several others.

*Written February 14, 2021. Updates may be available after this date.

Colorado Real Estate News

Real Estate Market Trends

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.

Colorado Real Estate News

Real Estate Market Trends

winter decor featuring multi sized candles and a white vase with lit up small branches

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.

Colorado Real Estate News

Real Estate Market Trends

Photo of a master bedroom with a fireplace

Denver-area Remains a Steadfast Seller’s Market in October.

The housing market continued to thrive in October, with a record-high for average sales price for both single-family detached and attached properties at $625,100 and $393,733 respectively, as well as a record-low of months of inventory at an astonishing 0.81. The effects of the COVID-19 months have again created historically low inventory with only 4,821 active listings, representing the lowest amount of active inventory for any October on record by nearly 2,000 listings.

Low Inventory Isn’t Halting Transactions.

The lack of inventory hasn’t slowed the actual process of buying and selling, with 5,984 closed transactions in October. With low interest rates and holidays around the corner, buyers are pushing budgets to find ideal homes. Detached closed properties were up 19.52 percent from September and up 32.15 percent year-over-year. With 1.88 months of inventory and median days in MLS dropping 8.33 percent to just 55 days, detached luxury homes firmly sit in a seller’s market.

Good News for Detached Luxury Homes Inventory.

Detached homes remain the preference for luxury buyers. While the Luxury Market firmly continues as a seller’s market, there is optimistic news for buyers as there are more detached home choices than last year with new listings up 14.62 percent. On the flip side, the attached Luxury Market is moving slower as buyers’ preferences lean towards detached homes. While there were 83.87 percent more listings this year than last year and 11.76 percent more listings than last month, the attached market is moving slower than the detached segment.

Don’t Count Out the Attached Luxury Market.

While the months of inventory is a stark contrast to the detached segment at 5.7 months, the year-over-year data proves new listings have steadily climbed from 233 in 2016 to 472 in 2020 and pending sales have climbed from 103 in 2016 to 247 in 2020.

*Written November 10, 2020. Updates may be available after this date.

Colorado Real Estate News

Real Estate Market Trends

image showcasing residential homes in fall with red and orange trees in front.

September was the Toughest Time in History to Buy a Home in Metro Denver. Why?

Record-breaking low housing inventory was a key factor to September being one of the most challenging times in history to buy a home in the Denver market.

The 5,301 active listings at September’s month end represented the lowest amount of active housing inventory available on record for any month of September by 2,215 homes. The median days on market in the entire residential market was six, which was three days lower than the previous record set in September 2015 and 2016. For both single-family and condo homes, there were more closed and pending transactions than ever before reaching 5,850 and 6,376 respectively.

Housing inventory can’t keep up with the high level of homebuyer demand. This is further evidenced in that the months of inventory hit an all-time low at 0.91 months, signifying a very strong seller’s market.

Record-breaking Home Prices.

Furthermore, the median home price for both single-family and condo homes hit a record-breaking high at $510,000 and $334,752 respectively. The total sales volume of $3.15 billion represents the highest amount for any September on record and the third-highest month of all time.

Luxury Market is Red Hot Too.

Luxury Market home sellers were having to think fast and figure out their next move because the average days on market for a luxury home was down 39.5% year over year at 46 days.

Year over year, 81% more luxury homes sold in September and 87% more single-family homes closed. The luxury condo market is also showing signs of strength with 32% more sold compared to 2019.

Additionally, compared to last year, new listings priced $1 million+ were up 26% while pending listings were up a whopping 116% in September. Single-family luxury homes were also hot in September with a 125% increase in pending sales compared to this time last year. The luxury condo market was just as hot with a 58% increase in pending sales going under contract from one year ago.  

*Written October 9, 2020. Updates may be available after this date.

Colorado Real Estate News

Polo Club mansion listed for $8.95M

Listed by Sandy Weigand and Chuck Gargotto 1 Polo Club Lane has been listed at $8.95M. The owners spared no expense in entirely rebuilding and renovating this 5-bedroom, 7-bath residence to create a stunning transitional Beverly Hills style designer jewel. With inspiring indoor and outdoor spaces everywhere, clean modern lines blend harmoniously with tradition throughout the property.

Read more about this incredible property on the Denver Business Journal site by clicking here!

Colorado Real Estate News

Real Estate Market Trends

Despite the Pandemic, 2020 Denver-area Housing Market is Hot!

Amid the COVID-19 global pandemic, the 2020 metro-Denver housing market is on pace to outperform last year’s record-breaking real estate market.

If you recall, July of this year hit a record high number of home sales in any given month in metro Denver. In August, while home sales dropped compared to July by nearly 19%, the 5,959 total homes that did sell signified the most sales for any month of August on record. Yet, at the same time, the number of active listings at month end in August was down 41% year to date compared to 2019. So, if there were more homes available on the market in August, there is no doubt many more would have sold.

Single-family Homes are Scarce

Homebuyers looking to purchase a single-family home really struggled because there were 50% fewer single-family homes for sale year over year in August. Furthermore, single-family homes priced between $500,000 and $749,999 had only 0.66 months of inventory which is an extreme seller’s market where demand outpaces supply. Based on that number, the market would technically be out of homes for buyers to purchase in two to three weeks if no other inventory hits the market.

Home Prices Still on the Rise

As buyer demand continues to outpace supply, prices continue to go up. The average price for a single-family home hit another breaking record at $606,330 in August, an increase of 5.6% year to date.

Condo sales weren’t doing quite as well as average August prices were down month over month in August, but still up 2.6% year to date. The Denver market is a seller’s market across the board except for condos priced over $1 million where the market is more balanced between buyers and sellers.

If these current trends continue, COVID-19 may have just been a blemish on our year-end housing figures, as the Denver-area market is insulated by strong population growth, a variety of industries and quality of life that isn’t going anywhere.