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

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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

Why Sell Your House Now?

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

From the beginning of the pandemic in 2020 to the end of the year, it was a tale of two housing markets. Dead in the water and busier than ever. All indications are that we’ll see an even stronger market in 2021.

Mortgage rates are holding at record lows and are driving this continued momentum, with average rates hovering at or below 3%. 

National Association of REALTORS Research

The NAR publishes an annual Realtors Confidence Index Survey which suggests that buyer demand across the country is incredibly strong. This is holding true for residential real estate markets across Colorado. However, supply does not match demand. New listing inventory is not keeping up. Here’s a breakdown by state provided by NAR:

You can see on the maps for Colorado that buyer traffic is high, but seller “traffic” is low. With such a limited supply of homes for sale, record-low inventory is fostering a lot of frustration for buyers.

NAR also reported recently that the actual number of homes for sale stood at 1.28 million in November, down 22% from November 2019. Metro Denver had a 0.8-month supply of homes for sale in November 2020. Fort Collins and Northern Colorado fared slightly better with 1.9 months of available inventory at the end of December 2020. In a normal or balanced market, the number would be 6.0 months of inventory – significantly higher than it is today.

How are Buyers and Sellers Impacted?

Buyers will need to reserve an abundance of patience with the process of securing a home while being ready to quickly act when they find the right place. Bidding wars are a frequent occurrence, in nearly all price points. We hope this gets better as we enter our typically busy listing months of February – May.

Sellers – this is a great time to begin the process of getting your house ready for market. The highest prices in any given year are usually set during those busy early spring months. With our high buyer demand and the perpetually low supply, now is a great time to sell a house. If you sell and need to find a replacement property, consider locating a temporary housing situation. That way you’ll have your proceeds banked and can be ready and competitive when you find your next home.

Key Takeaway

2021 looks to be another rip-roaring year for residential real estate in Colorado. Take advantage of low rates, pent-up demand, and the need for more inventory to hit our markets. Contact a Kentwood broker today to learn more about the specifics of your area and market and get ready to jump in.

Colorado Real Estate News

Why Inclusion Matters

CEO Reflections

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

This week we celebrated Martin Luther King, Jr. and the massive and positive impact Dr. King made on 20th Century America. His most iconic “I have a dream” speech still resonates 57 years later.

So many Americans have a dream for equity, equality and inclusion. That extends to the dream of homeownership. A dream realized for many, but not always equitably. A dream we in real estate are privileged to help with.

At Kentwood Real Estate we formed a Diversity, Equity, and Inclusion Council in 2020 to address both internal and external issues facing our company and our industry. Thank you to the volunteers on our Council and the wonderful input they provided last year. All of them offered to renew their commitment to volunteer this year and we now have a waiting list!

DEI Goals

Our goal is to make a real and positive difference in people’s lives. To that end, we’ve translated our Listing and Buyer information into Spanish and discussed what the next language should be. Vietnamese perhaps.

We’re in the process of forming a Kentwood Foundation to help our communities – our Kentwood Community and the communities we live in. More on that to follow.

We’re encouraging our managers to recruit for diversity and we’re welcoming many new brokers from all sorts of life experiences and backgrounds to the Kentwood family.

A Pledge to Do Right

Kentwood “took the pledge” and is among hundreds of companies joined as Colorado Companies United Against Racism. But taking a pledge isn’t an end, it’s a signal that we intend to be a part of the process and solution going forward. Our industry has historically not been purveyors of best practices. We’re grappling with that and determined to make a positive difference going forward.

Let Dr. King’s words guide us. “We must use time creatively, in the knowledge that the time is always ripe to do right.”

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

CEO Reflections – Are you in your Forever Home?

Written Gretchen Rosenberg, Kentwood Real Estate President and CEO

Are you in your forever home?

You may be in your first home or your move-up home, you may have been rooted in your home for many years, or you may be someone who moves a lot and loves the experience and excitement of finding that next just-right place. 2021 is predicted to be another year of record home sales and movement into and out of our homes. Are you planning to jump in?

Many people found their housing needs changed in 2020. They realized their current home didn’t mesh with their current lifestyle. If you’re working remotely, helping your children with online learning, exercising in your basement (me,) or simply spending more of your time in your own four walls, you may be realizing that your current place isn’t what you envisioned when you made the purchase. 

Perfect Timing

It’s a great time to reimagine where you’ll land next. Mortgage rates remain historically low and new construction is helping keep up with demand, even if resales have been slow to come on the market. We expect more homeowners to dip into the market this spring, but multiple bids in some segments will likely continue even with a rise in inventory.

According to CoreLogic’s Home Price Insights, national prices appreciated 7.3% year-over-year in 2020. The National Association of Realtors (NAR) also reported that inventory dropped 22% from 2019 to 2020.

This is a reflection of supply and demand at work. As inventory decreases and demand increases, prices are driven up.

If you own a home that isn’t JUST RIGHT and you’re thinking about selling, now may be the time. You’ve probably seen a good amount of equity accumulate in your home as prices have increased. Kentwood Real Estate brokers have a large number of buyers looking for their Colorado dream home. Let us help you sell and find that next perfect place to call home.

Bottom Line

If you think your current home no longer serves your lifestyle, then connect with a Kentwood broker to discuss local market conditions and determine if now is the best time for you to sell!

Colorado Real Estate News

CEO Reflections on 2020

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

Time to Pause and Reflect

2020.  A year that hit the pause button on many things in our lives and a year that gave us a reset we did not know we needed. For many people, it was one of the toughest years ever, but it’s also provided an opportunity to evaluate the things that are most important. 

Virtual Meetings and Open House Tours
  
It’s been a year of working from home, distance learning, social distancing, flattening the curve, masks, visiting loved ones through windows, quarantining, travel bans, lockdowns, riots, protests and curfews, grocery shopping online, curbside pickup, meetings on Teams, Zoom and Go to Meeting and virtual open houses.

We’ve had no concerts or church or big family gatherings, and found new ways of celebrating birthdays, weddings, holidays, and even funerals. I attended a concert, a wedding and a memorial on Zoom this year. We have suffered losses – loss of time, connection and some have lost loved ones. 2020 will be a year that goes down as a historically meaningful year, one that has changed our world.

Kicking off 2021
  
How do we end 2020 on a positive note and start 2021 with a new and fresh perspective?  At Kentwood Real Estate, Kentwood Commercial, Kentwood Relocation, Denver Rental, and Prosperity Home Mortgage we’re taking time to celebrate with those closest to us. It’s a testament to our teams’ resilience, creativity, and professionalism that we’re thriving in difficult times. Our clients have been loyal and dogged and clear-eyed on where they need to go to stay on the path of their life journey.

We’re planning to rest and reset both personally and professionally and begin 2021 with an attitude of greatness. Thank you all who have supported our team this year. Happiest of holidays to everyone and cheers to 2021!

Colorado Real Estate News

Three Reasons to Sell Your Home TODAY!

wooden block house on snow

Are you considering selling your home? Denver-metro’s real estate market is white-hot right now and homesellers have an opportunity to earn a premium by listing their properties. Below are some statistics and insights into why NOW is the prime moment to sell your home and effectively capitalize on the extraordinarily potent real estate market. The bubble will not burst and in this seller’s market, the benefits and supporting evidence speaks for themselves.

1. Make a Significant Profit on Your Home Sale
According to Mansion Global at the end of October, the median U.S. homebuyer is paying about $20,000 more than they did three months ago. Denver-metro has experienced a spectacular median home price growth of 11.67% over last year and an extremely positive 7.14% year to date.

With interest rates hitting a new historical low 14 times this year, homebuyers have more purchasing power, and they are willing to make a strong offer to secure the homes they love among the stiff competition.

Due to this elevated buying ability, multiple offer scenarios are continuing later this year than they have in the past and in price points that typically haven’t seen that before. With voraciously hungry buyers engaging in bidding wars for your home, homesellers stand to maximize their profits.

2. Inventory Is Low and Demand Is High
According to the Denver Metro Association of REALTORS®, more than seven in 10 homes sold in October 2020 and 72% were on the market for less than a month with the median days in MLS for detached single-family homes at a speedy five days, representing a tie for the lowest number on record.

Housing inventory hit an all-time low of 3,415 active listings at the end of November. Compare this to the average active listings for November month-end of over 14,000 and you can see how homes are flying off the metaphorical shelves.

The Denver-metro area has had more closed homes than active listings every month-end since July 2020 and with extremely limited housing inventory, you have your pick of the litter with buyer offers.

3. Colorado Cities are Some of the Best Places to Live
The U.S. News and World Report published its list of the 150 best places to live in the U.S. and the first four out of 5 are all in Colorado with Denver earning second place overall.

Also, in Niche’s Best Cities for Young Professionals in America list, Denver placed 11th and Denver Business Journal ranked Denver 13th for overall real estate investment and development.

With the high desirability of our beautiful state, not only is there the potential for Coloradans to purchase your home among the low housing inventory, but many individuals out of state will be pining for your property.

Partnering with Kentwood
The benefits of listing your home in this market are plain as day with a high potential for homes to not only sell quickly, but for a large amount. If you would like to capitalize on Denver-metro’s phenomenal housing market and maximize your profit, consider partnering with an experienced Kentwood broker to elevate your home’s marketing, staging and overall value.

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

Questions to Ask Your Real Estate Broker

real estate agent and clients talking with masks on.

Whether you’re a first time or a veteran buyer, Kentwood has you covered. Here are some great questions to ask your agent before, during and after buying your new home.

Before Hiring Your Agent

1. Can I see your real estate license?

This should always be one of the first questions you ask a potential agent! Always make sure the person you are working with is an accredited professional. All established agents will be prepared to show you their license, so if they refuse, move on to the next.

2. How long have you been an agent?

The more experienced the agent is, the more industry knowledge and problem-solving skills they will have. To confirm the credibility and success of an agent you are considering, check out their testimonials and online reviews.

3. Are you familiar with the area I am interested in?

Find agents that have experience buying or selling in the neighborhood you are considering. Location does matter! You want to make sure they can answer all of your questions regarding school districts, development plans, crime rates in the neighborhood, surrounding restaurant and entertainment options, etc. For more information on areas that you may be interested in, check out the Colorado Communities section of our website.

During the Housing Search

1. Can you explain the homebuying process from start to finish?

This question is great for first-time buyers! You want to know what to expect going into the buying process. They should cover topics such as: how showings go, how to place an offer and what happens during a home inspection. The Realtor® should also be transparent about how their commission works since buyers do not usually pay agent commission fees.

2. How dated is the property?

It is crucial to find out how much extra money you will have to put into a property post-purchase. The most expensive renovation is typically roof replacement. Most roofs last for roughly 20 years and cost, on average, $6,000 to $10,000 with a maximum rate of around $45,000. It is also important to ask about the major appliances and what their predicted life expectancies are. Make sure to inquire about the water heater, stove, dishwasher, washer and dryer, refrigerator and HVAC system.

3. What was the seller’s motivation for putting the house on the market?

This question will determine your negotiation angle. If the seller is moving to a larger house in the same town simply to upsize, they probably are not too worried about the timeline of closing. On the other hand, if the seller is relocating for a job and has already moved out of town, they are usually more willing to work with you on the price to have a quick closing.

4. How many days has the house been on the market?

Another question related to negotiating strategy. According to Realtor.com, most houses are on the market for an average of 52 days. This statistic excludes winter, where the average is slightly higher. So, if a home has been on the market for over two months, the seller may be more receptive to a negotiated price.

After You Have Found a House

1. Can I see a CMA for this house?

You have found the house of your dreams, but you are not done yet! When it comes time to close on a house, you want to make sure you as the buyer are getting the most bang for your buck. A Competitive Market Analysis form will look at nearby, similar properties to determine your future home’s worth in today’s market. This will tell you whether your home is priced reasonably and can inform the route you take with negotiation.

2. What happens when I move to close on a house?

Make sure you coordinate with your agent on who will be handling the closing, where the closing will take place, what you will need to bring to the closing and what the closing costs will be. Both the buyer and the seller are always required to provide photo identification, and the seller must show proof of homeowner’s insurance. As for closing costs, they vary depending on the property, so be prepared to pay both broker and third-party fees at the closing.

Whether you are looking to list your property or search for a new home, Kentwood is always available to provide expert guidance on your real estate journey. Fill out our contact form to connect with a seasoned broker dedicated to fulfilling your homeownership dreams.