Colorado Real Estate News

Top 5 Renovation Trends for 2022

As working remotely has become more popular, a place where you live and work needs to be one that you love! Lots of homeowners and buyers have begun to upgrade their living environment, and if you’re looking to do the same, here are some of the top trending renovation ideas for this year.

1. Large Primary Bedrooms 

One of the most popular renovation trends has been the ever-growing size and popularity of the primary bedroom. Things that were once considered a luxury such as walk-in showers, double vanities, and touchless faucets, have become more of a necessity. Personal hygiene has become more important than ever and that is reflected in the growing demand for larger primary bedrooms fit for royalty. 

2. Colored Cabinets 

While white cabinets might always be the safe way to go when choosing the right color for your kitchen, more and more people are choosing to spice things up. Spending more time at home has led many to reflect on the personality of their indoor environments, and adding a pop of color to traditionally bland spaces has been a major growing trend this year. Some especially popular colors have been greens, soft yellows and brownish-pinks.

3. Black Design Accents 

Though you can never go wrong with white cabinets, one trend that has become very popular is the implementation of black accents in several areas of the home. It is famous for adding depth and an edgy feel to a minimalistic/contemporary design.

4. Creating an Office Space 

During the pandemic, everyone got a taste of what it was like to work from home. As a result, the demand for home office spaces has skyrocketed. Many have already begun to turn spare rooms or unused garage space into work areas for when they don’t need to come into the office. For the homeowner working from home, this renovation remains essential. 

5. Outdoor Transformation. 

After some time away from crowds, people have realized the value of beautiful outdoor spaces as a way to rest and relax. Many will spend more time on their deck or patio while looking for ways to upgrade their “getaway” space. As a result, outdoor furniture and decorations are a huge trend for the summer of 2022. 

As we begin to work outside of the office more and more, it is important that our homes, and now work environments, look their best. With these trending 2022 renovations, you can keep your home looking modern and up to date.   

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.

Colorado Real Estate News

April: Fair Housing Month

April is Fair Housing Month and it’s imperative to remain educated about this topic. Discrimination in the real estate industry is prevalent in people’s daily lives. Keep reading to find out more and ways you can educate yourself and help to solve this ongoing issue:

History of Fair Housing Month

On April 11, 1968, President Lyndon B. Johnson signed the Fair Housing Act of 1968, therefore commemorating fair housing annually in April. The Fair Housing Act prohibits discrimination based on race, religion, gender, national origin, disability and family status. Since its inception, it has helped working families of all races and backgrounds find affordable housing, helped break patterns of segregation and bring diverse communities, but there is still more to be done. To help the development of the Fair Housing Law, the US Department of Housing and Urban Development was created.

It can be difficult to want to educate ourselves on things that don’t directly affect us, but fair housing is incredibly important and something that affects those around us. There are many ways you can educate yourself. Check out these video, podcast and book recommendations from the National Association of Realtors®:

Video Recommendation:

“Why Cities are Still So Segregated” from NPR

In this short, six-minute video, Gene Demby from NPR’s Code Switch explains why some neighborhoods remain still segregated today.

Podcast Recommendation:

The Red Line: Racial Disparities in Lending from The Center of Investigative Reporting

In this podcast episode, reporters analyzed 31 million government mortgage records and found that people of color were more likely than white people to be denied a conventional home loan in 61 metro areas.

Book Recommendation:

“Sundown Towns” by James W. Loewen

Loewen sheds light on the racial exclusion in America. He uncovers what he calls “sundown towns,” which are exclusively white towns where it was an unspoken rule that black people were not welcome.

Residential segregation in America did not happen by accident. Hence, April is a great month to look internally to ensure that you are providing inclusive communities to your clients. We all have an amazing opportunity to be a part of the solution.

The NAR website has fantastic resources for you, and the Denver Metro Association of Realtors® is hosting their first annual Housapalooza event on April 23. Housapalooza is “the must-attend event for first-time homebuyers and sellers in metro Denver.” They have phenomenal speakers including Albus Brooks, Former Denver City Council President and event host, Ryan Haarer, Former TV Newsman for 9News. Fair housing matters year-round, but April is a great month to reevaluate your practices and identify how you can be a part of the solution.

Kentwood Real Estate is constantly striving for equality in everything we do. Our Diversity, Equity and Inclusion Councils have been working to introduce equality and diversity throughout our brokerage. Our Kentwood Cares Foundation was created to support our internal Kentwood community of employees and brokers and external community of nonprofit organizations. We are here to help and support our community in anyway we can.

Colorado Real Estate News

Must-See Red Rocks Concerts This Spring

Whether you visit or live locally, Red Rocks Amphitheater is a Colorado staple. There are a variety of concerts that anyone will love with gorgeous views to match. At the end of 2021, Red Rocks won first place in Billboard Magazine’s year-end chart of top-grossing and best-attended venues, and for good reason! You don’t want to miss a concert there. Here are the amazing concerts coming up this spring:

For the rap/R&B lovers:

April 16 at 6:30 p.m.: Kevin Gates & Gucci Mane

April 18 at 6:30 p.m.: Wiz Khalifa & Trippie Redd

April 19 at 7:00 p.m.: Ice Cube & Cypress Hill (apart of 4/20 on the Rocks)

April 20 at 4:15 p.m.: Pepper & Method Man & Redman

April 27 at 7:00 p.m.: Ludacris & Nelly

May 1 at 6:00 p.m.: Tech N9ne

May 8 at 8:00 p.m.: Russ

May 31 at 7:00 p.m.: Blackbear

June 7 at 7:00 p.m.: Erykah Badu

For the EDM fanatics:

April 21 at 6:00 p.m.: Subtronics

April 22 at 5:00 p.m.: Galantis and 3LAU

April 23 at 6:00 p.m.: Lotus

April 24 at 5:30 p.m.: Dom Dolla

May 5 at 7:00 p.m.: Hippie Sabotage

May 21 at 6:00 p.m.: Global Dub: Peekaboo, Dirt Monkey

June 8 at 6:00 p.m.: Jai Wolf & San Holo

June 23 at 6:00 p.m.: Sevon Lions

June 30 at 7:30 p.m.: Kraftwerk 3-D

For the alternative/indie fans:

April 28-29 at 7:00 p.m.: Trevor Hall & Citizen Cope

April 30 at 7:00 p.m.: Sublime with Rome

May 8 at 7:00 p.m.: Series Fest: Featuring Lake Street Dive

May 11 at 7:30 p.m.: Stevie Nicks

May 16 at 7:30 p.m.: Kaleo

May 17 at 8:00 p.m.: Phoebe Bridgers

May 25 at 7:30 p.m.: Rex Orange County

May 30 at 7:30 p.m.: Gary Clark Jr.

June 1-2 at 8:00 p.m.: Lord Huron

June 4 at 7:00 p.m.: Michael Franti & Spearhead

June 10 at 7:30 p.m.: The Revivalists

June 12 at 7:00 p.m.: Tash Sultana

June 14-15 at 8:00 p.m.: Glass Animals

June 20 at 7:00 p.m.: Bleachers

June 21 at 7:00 p.m.: Barenaked Ladies

June 22 at 6:30 p.m.: Andrew Bird and Iron & Wine and Neko Case

June 27 at 7:00 p.m.: Third Eye Blind

For the country/folk lovers:

May 3-4 at 7:00 p.m.: Jason Isbell and The 400 Unit

May 6-7 at 7:00 p.m.: Brantley Gilbert

May 10 at 7:30 p.m.: Ray LaMontagne

May 12-13 at 8:00 p.m.: Billy Strings

May 14-15 at 6:30 p.m.: Turnpike Troubadours

May 26 at 6:30 p.m.: The Infamous Stringdusters & The California Honeydrops

June 6 at 6:30 p.m.: Whiskey Myers

June 29 at 7:00 p.m.: Jerry Garcia 80th Birthday Symphonic Celebration with the Colorado Symphony

For the rock music fans:

May 22 at 6:30 p.m.: Trey Anastasio Band

June 9 at 8:00 p.m.: Brit Floyd World Tour

June 11 at 7:00 p.m.: Big Head Todd and The Monsters

June 16 at 7:00 p.m.: Chicago and Brian Wilson

June 17-18 at 7:00 p.m.: Umphrey’s McGee

For the Christian music addicts:

May 23-24 at 7:30 p.m.: Chris Tomlin Worship at Red Rocks

For the funk music fanatics:

May 27 at 7:00 p.m.: The Motet & Pigeons Playing Ping Pong

May 28 at 6::00 p.m.: Funk on the Rocks: Chromeo

For the reggae lovers:

May 29 at 6:00 p.m.: Ziggy Marley & Stephen Marley and Ben Harper & The Innocent Criminals

For the jazz music addicts:

June 3 at 7:30 p.m.: Joe Russo’s Almost Dead

June 28 at 6:30 p.m.: Trombone Shorty & Orleans Avenue

For the pop music fans:

June 19 at 7:00 p.m.: Why Don’t We

Other:

May 2nd at 7:30 p.m.: A Prairie Home Companion American Revival with Garrison Keillor

There are concerts every day at Red Rocks, from rap music to reggae, there is something for everyone. Make sure to check out all of the upcoming spring events on their website!

Colorado Real Estate News

Easy Ways to Prepare Your Home for a Spring Sale

With the Denver real estate market setting historic numbers, you may be considering listing your home on the market or preparing to sell. There are easy ways to get your home ready for sale this spring and minor renovations that will pay for themselves upon closing.

Let natural light flood your home.

Natural light opens up spaces and brightens the overall mood of your home. We recommend raising shades and opening curtains to let the sun in rather than trying to keep it out during spring showings and open houses.

Fix what’s broken.

An inspection of your home can help you identify anything broken you may have overlooked when checking yourself, allowing you to repair accordingly. Little things like a loose doorknob or creaky windows can stick out to potential buyers and make them think, “what else is broken here?” Repair what buyers may notice, which is everything, and other things on your renovation to-do list. After all, homebuyers who make an offer will get your home inspected, and it is beneficial to get a jump on repairs rather than giving buyers any wiggle room to negotiate.

Renovate what is outdated.

If your kitchen or bathroom screams 1980s and may give buyers flashbacks, they should be updated before you start showing your home. Updating fixtures like bath faucets, towel racks and cabinets will speak volumes for your home. Just remember that on most renovations, you won’t recoup all of your costs dollar for dollar.

That’s why it’s important to think small with renovations. Rather than replacing your kitchen cabinets, just replace the doors or knobs and give the cabinets a fresh coat of paint. Rather than replacing the bathtub, reglaze it to make it look as good as new. If you’re going to spend serious money on renovations, we recommend focusing on the exterior of the home. This is the very first impression buyers get of your home, so you should make it count.

One renovation that pays for itself and boosts a visual appeal to homebuyers is a garage door replacement. On average it costs $3,600 but nets a 97% return on the investment. Another eye-catcher is stone veneer on the exterior of the home which is a costly upgrade but can boost the overall listing price and has a 95% return on investment.

Other minor adjustments such as applying a new coat of paint to the interior are a relatively cheap and easy way to give your home an instant facelift. If the current colors of your walls aren’t all that flattering, consider repainting with neutral, white and gray colors. These are generally the best paint colors to pick from. Anything more vivid may appeal to a few buyers but not a wide range.

One final way to prepare your home for sale is to pay attention to odors. The smell of pets, cooked food and dirty laundry can make buyers reconsider their thoughts on your home. Carpets, throw rugs and other fabrics like curtains hold odors. We recommend having your carpet professionally cleaned before putting your home up for sale. The addition of fresh-cut flowers to your home during a showing or open house can also add a natural scent to your home.

Completing these easy steps will not only prepare your home for sale this spring, and it will also help your property stand out against other homes on the market. At the end of the day, it’s the

little things that can make or break a buyer’s decision. Contact one of our experienced Kentwood brokers for help with your spring home sale at kentwood.com.

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.