Colorado Real Estate News

Top 3 Reasons We’re Watching Inflation

Written by Gretchen Rosenberg, President and CEO of Kentwood Real Estate

The Colorado housing markets remain white-hot and even some commercial sectors are in a positive rebound. We’re watching the economic indicators closely to gauge what the short- and long-term trajectory might be.

The Federal Reserve monitors inflation and says their target benchmark for altering policy is a 2% inflation rate. 

The Federal Open Market Committee (FOMC) judges that inflation of 2 percent over the longer run, as measured by the annual change in the price index for personal consumption expenditures, is most consistent with the Federal Reserve’s mandate for maximum employment and price stability. 

3 Metrics to Watch

Long Term Rates – “Signs of faster economic growth, an improving job market, and increased vaccine distribution are pushing (mortgage) rates higher,” said Joel Kan, the Mortgage Bankers Association (MBA) Associate Vice President of Economic and Industry Forecasting. In turn, this is slowing the refinance markets according to the Mortgage News Daily Blog.

Consumer Price Index – This is showing signs of heating up according to a recent article on CNBC. It’s to be expected, and if you’re looking to purchase a house or investment property you’re still able to lock in historically low rates. They just feel higher compared to last month.

Demand-Pull Indicators – “When an increase in the supply of money and credit stimulates overall demand for goods and services in an economy to increase more rapidly than the economy’s production capacity. This increases demand and leads to price rises,” explains Investopedia. Our government has been faced with stimulating the economy with a combination of both increasing the supply of money and stimulating credit to get the economy through the pandemic-induced recession. Now, they’re watching the hangover and gauging the best way to keep our economy moving without ramping up inflation too rapidly.

Good News for Real Estate

These are interesting indicators to watch, but what do they mean practically for everyday people?

Mortgage rates are still extremely low and should remain so throughout 2021 (great for buyers.) Housing price inflation is increasing due to high demand (great for homeowners and sellers, not so great for buyers.) One thing I’ve learned throughout my 2 ½ decades working in the real estate industry is that people will always need houses, shops and restaurants, and offices. Things like the Great Recession or the COVID Pandemic may slap us with a pattern interrupt, but we always get back to an even keel and we always have people who need to transact.

If you’re one of those people, contact a Kentwood Real Estate Residential or Commercial broker. We represent clients from Colorado Springs to Denver to Boulder and Fort Collins. Our brokers are experts in their field and will help educate you on these important indicators and advise you on the next steps in your life journey!

Colorado Real Estate News

Denver Housing Market Still Tight for Median Priced Homes

ThinkstockPhotos-469820647Headlines have been proclaiming that the Denver-area housing market “cooled” in August. While sales showed their normal seasonal slowdown from July to August, by most metrics the market last month was stronger than that of August 2014.

In Denver, with such a small supply of unsold homes on the market, a slowdown in sales and more homes coming on the market is welcome news for consumers who have been on the losing end of bidding wars in the spring and earlier summer.

Months of inventory is one off the best metrics for determining your likelihood of actually being able to buy home. The MOI, as it is called, measures how long it would take for all of the homes to be sold if no new homes were added to the market and the current sales rate stayed constant.

A balanced market, when neither the buyer nor the seller has an advantage, is typically considered one with 5 to 7 months of inventory. Denver remains a strong seller’s market. At the end of August Denver had a 1.7 MOI, which was actually 6.6% lower than a year earlier, but marked about a 9% increase from July.

Digging into the data by price points, the MOI showed the biggest increases at the bottom of the market and at the very top. For example, for homes priced from $100,000 to just under $200,000, the MOI increased by 48% from July to August, according to the Denver Metro Association of Realtors, which looks at an 11-county area. That was the biggest percentage gain in the MOI of any price band.

If you compare last month to August 2014, there was a 74.7% jump in MOI for homes priced from $100,000 to just under $200,000. There was even a 22.6% for homes priced below $100,000.

For homes priced at $2 million or more, the MOI rose by 22% increase, on a month-to-month basis, the second biggest percentage increase. And for year-over-year, the MOI for homes priced at $2 million or more increased by 34.4 percent.

These trends are likely to continue through the fall and winter, so if you are looking to buy a home, especially at the top or the bottom of the market, now is the time to make your move.


Colorado Real Estate News

Denver’s Housing Market Cools in July

ThinkstockPhotos-476735540You may have seen the headlines about how Denver’s housing market cooled off in July. It’s true that the average price of a single-family home dipped about 2 percent from June to July, which ended a five month streak where homes were setting a new record each month. Prices eased a bit as the inventory of unsold homes rose. July marked the fifth consecutive month that the active inventory of homes on the market rose from the previous month, according to the Denver Metro Association of Realtors.

Indeed, the 7,470 unsold homes on the market last month was 81.7 percent higher than the 4,112 homes listed by Realtors in March. But that doesn’t mean the market is awash of homes for sale. Last month had the fewest number of active listings of any July on record. You only need to go back two years and Denver had an active inventory of more than 10,000 homes in July!

Overall, July ended with a 1.56-month supply of unsold single-family homes. There is less than a month’s inventory of condos available. That’s a long way from the five to seven months of inventory needed for a market that is balanced between buyers and sellers. The overall Denver market clearly is still a seller’s market, despite the cooling in July.

However, that’s only for the overall market. Toward the luxury end of things is a different story. For homes priced from $1 million to just under $2 million there is a 7-month inventory of unsold homes, according to DMAR. Above $2 million? There is 20.25 months of inventory.

What the market is telling you is that if you are fortunate enough to own a home in the $700,000 to $1 million range, there has never been a better time to  look at moving up the next level. And that’s pretty cool.



Colorado Real Estate News

Kentwood Real Estate Releases June 2015 Real Estate Statistics

Kentwood Real Estate has released the company’s comprehensive real estate statistics for June 2015 for condominiums in downtown Denver, single-family homes, luxury residences, and market data for Greenwood Village, Cherry Hills Village, and the Cherry Creek neighborhood, three of metro Denver’s most desirable neighborhoods.  Colorado’s Premier Real Estate Company currently enjoys a leading market share ranging from 18 to 36 percent in most of Denver’s preferred neighborhoods.  Following are details for June.

Downtown Denver Condominium Sales Price Jumps 20.1 Percent

Kentwood Real Estate’s latest real estate market data, which is gathered from the most reliable sources in metro Denver, shows that the downtown Denver condominium sales price increased 20.1 percent over the same period last year to $530,024.  The number of closed sales dropped two percent from June 2014 to 48.

Closed sales volume was $25,441,160 for June, a drop of 17.7 percent.  The highest sold price in June was $1,600,000.  The statistics show a total of 51 downtown Denver condominiums under contract in June and a total of 82 condos currently active.

Average days on the market decreased nearly 31.4 percent in June to 48 days compared to June 2014.  For those seeking a carefree lifestyle downtown, Kentwood City Properties is conveniently located across from Union Station and visitors are welcome.  You can enjoy open houses nearly every week and also enjoy virtual tours on the company’s leading website.

“The downtown condo market remains tight because of no new builds,” said Heather Ehret-Faircloth, a leading Broker Associate with Kentwood City Properties.  “Buyers appreciate views, outdoor space, and location, and they are paying top dollar when they can get all three attributes.  Unit 2930 at the Four Seasons with 1,940 square feet, recently sold for $1.6 million furnished.  A property at the Spire, listed at $749,900, had all three key attributes and went under contract in three days.

“Sellers still need to be realistic, however,” Ehret-Faircloth continued.  “If a condo is dated, does not have outdoor space, has parking issues or a less desirable location, it is imperative that it is priced appropriately.  Gone are the days of pricing with room to negotiate.  Be realistic about any objections, price appropriately, and you will obtain the highest price in this market.”

Market Recap for The Villages Shows Closed Sales Down 22.2 Percent

Kentwood Real Estate has released its latest real estate market statistics for Cherry Hills Village and Greenwood Village for June 2015.  Closed sales in June dropped 22.2 percent from June 2014, with the average sold price at $1,481,976.  The highest sold price in June was $3,850,000, while the average number of days on the market increased 24.4 percent to 97.

Currently there are 127 residential listings and 36 land listings in Cherry Hills Village and Greenwood Village.  Kentwood Real Estate enjoys a 32 percent market share with 52 active listings.  Average price per square foot in The Villages decreased 11.9 percent to $353 from the previous year.  There are 127 active listings and a total of 36 homes currently under contract.

There were two closed land sales in The Villages in June for a total of $2,970,000, an increase of 375.2 percent over June last year.  The average number of days on the market for land sales is 408 year to date.

Average Sales Price for Cherry Creek Neighborhood Increases 15.9 Percent in June

The average residential sales price for homes in Denver’s Cherry Creek neighborhood increased 15.9 percent to $949,321 compared to June 2014, according to data gathered by Kentwood Real Estate.  The number of days on the market in June increased 57.6 percent to 52, with closed sales volume totaling $13,290,500 for a 15.9 percent drop from June 2014.

Closed residential sales remained constant at 14, with the highest sold price year to date at $2,000,000.  The average sales price last year was $938,051 for a 10 percent increase.

Condominium sales for Cherry Creek increased 37.5 percent over June 2014, with an average sales price of $514,051.  The highest sold price was $1,740,019.  Closed condominium sales volume was $26,954,703 in June.  Average days on the market for June was 83 or a decrease of 6.7 percent from June 2014.

There are currently 61 residential and condominium listings in Cherry Creek and a total of 22 active listings.  Kentwood Real Estate has a 36 percent market share in Cherry Creek.

Luxury Market Recap from Kentwood Real Estate Shows a Total of 776 Million Dollar Listings in Metro Denver

Kentwood Real Estate’s June 2015 Luxury Market Recap for residential and condominium properties shows a total of 776 million dollar listings in metro Denver, with Kentwood Real Estate enjoying an 18 percent market share with 138 active million dollar listings.

Closed sales for single-family luxury homes increased 45.2 percent in June 2015 compared to June last year.  Average days on the market decreased 2.6 percent to 90, while the average sold priced decreased 13.9 percent to $1,397,969.  The highest sold price was $3,850,000, with total sales volume increasing 25.1 percent to $170,552,170.  There are a total of 741 active residential listings and a total of 186 million dollar properties under contract.

Luxury condominium sales in June averaged 130 days on the market, which was identical to the same period last year.  The highest sold price was $1,740,000, while the average sales price decreased 12.2 percent to $1,386,200.  Total sales volume for luxury condos was $6,931,000.  There are 35 active listings and 12 currently under contract.

Kentwood Real Estate is dedicated to building on its legacy of being “Colorado’s Premier Real Estate Company” through the highest producing, most knowledgeable, caring and experienced brokers in the country who offer the highest quality customer service experience.  Kentwood Real Estate is an innovator known for unparalleled marketing strategies and superior Internet technology that places its clients in the best possible position.  The company’s brokers each averaged more than $12 million in sales volume annually, which is ranked number one nationwide by the National Association of Realtors and REAL Trends.

Kentwood Real Estate is comprised of Kentwood Real Estate DTC, Kentwood Real Estate Cherry Creek, and Kentwood City Properties in downtown Denver.  For more information, visit Kentwood Real Estate online at

Colorado Real Estate News

Year to Date Snapshot of the Denver Housing Market

June 2015 Stats

Once the 4th of July holiday is over, it’s a good time to assess how the housing market has performed during the first half of the year. This year, the Denver-area housing market is one worth celebrating. According to a recent report by the Denver Metro Association of Realtors, over $1 billion more homes were sold in the first half of this year than during the same period in 2014. Almost $9.3 billion worth of homes were purchased through June, compared with just under $8.2 billion last year. The record dollar amount marked a 13.5% jump from 2014.

This stunning sales volume occurred despite the number of home sales barely budging. So far consumers have purchased 25,636 homes in 2015, not even 1% more than the 24,400 they purchased during the same time period last year. And if you look at just single-family homes, the number of sales actually dropped by 2.5 percent, year-over-year. Condos carried the day, with sales rising almost 9% from the halfway point in 2014. But for the first time ever at the end of June, the average sales price of a single-family home topped $400,000.

One factor driving up the price is the demand that continues to outstrip the supply. When demand rises and supply falls, higher prices are sure to follow. There were only 6,197 homes for sale last month, the lowest ever for a June. Active listings were down 20.5% for the overall market from a year ago. However, listings were up almost 10% from May, giving consumers more than 500 additional homes to buy.

Another bright spot is that 35,060 new listings hit the market in the first six months of the year, slightly more than in the first half of 2014. In fact, almost 9,500 more homes came on the market than were sold in the first six months. This tells us plenty of homes are coming on the market, but they are being sold quickly. Still, there is no doubt the market could use more listings. Go back two years when 49,289 new listings came on the market in the first half of 2013. That’s about 29% more than in the first six months of 2015.

Overall, the Denver housing market has less than a 6-week supply of unsold homes. A balanced market, with supply and demand in equilibrium, has a 6-month supply of homes.