Colorado Real Estate News

Is Real Estate a Better Investment than Stocks or Gold?

Real Estate is still a stronger long-term investment.

Real estate brokers are often asked whether a particular home they’re contemplating “will be a good investment.” There are buyers concerned with finding the perfect nesting spot, and others worry whether they’ll come out financially ahead.

Some investors look strictly to commercial real estate, but for this analysis we’re talking about residential homes a buyer intends to reside in.

Much of the calculation depends on various factors, including how long the homeowners will keep the property, whether it’s compromised by a busy road, whether the homeowners plan to keep it in tip-top shape or upgrade, and whether it’s a single-family home or a condominium.


Survey Says

Recently in a post on the Liberty Street Economics blog, the Federal Reserve Bank of New York noted that Americans believe buying a home is definitely or probably a better investment than buying stocks. A subsequent Gallup Poll reaffirmed those findings.

In an article on the current real estate market, Gallup reports:

“Gallup usually finds that Americans regard real estate as the best long-term investment among several options — seeing it as superior to stocks, gold, savings accounts and bonds. This year, 41% choose real estate as the best investment, up from 35% a year ago, with stocks a distant second.”

Here’s the breakdown:

Long Term Investments for America in 2021 comparing Real Estate, Stocks, Gold, Savings Accounts and Bonds.
.

Is Real Estate Really a Sound Investment?

Americans have great confidence in real estate as a good long-term investment and view their home as a way to build future wealth. Although there is some underlying anxiety that the build-up in home values may be mirroring what happened just prior to the 2008-11 housing crash. According to Merrill Lynch, J.P. Morgan, Morgan Stanley, and Goldman Sachs, the current real estate market is strong and sustainable.

As Morgan Stanley explained to their clients in a recent podcast:

“Unlike 15 years ago, the euphoria in today’s home prices comes down to the simple logic of supply and demand. And we at Morgan Stanley conclude that this time the sector is on a sustainably, sturdy foundation. This robust demand and highly challenged supply, along with tight mortgage lending standards, may continue to bode well for home prices. Higher interest rates and post-pandemic moves could likely slow the pace of appreciation, but the upward trajectory remains very much on course.”


Key Takeaways

America’s belief in the long-term investment value of homeownership has been, is, and will always be, very strong. Home prices have been stable or rising the propensity of time over decades, even through other sector downturns. It’s good to diversify your investments, but don’t discount the long-term value of owning real estate.

Find a Kentwood Real Estate Broker, or your next Colorado home, on our website, www.kentwood.com. We service the Front Range of Colorado from south metro Denver, throughout Denver metro, Evergreen, Boulder, and northern Colorado, including Loveland and Fort Collins.

Colorado Sunflowers
Yellow sunflowers over Colorado’s mountains.

Colorado Real Estate News

Northern Colorado Real Estate Market Trends

Image of two outdoor chairs sitting in front of a lit outdoor fireplace

Home Prices Increase Except in Berthoud

The average sales prices across northern Colorado continue to skyrocket for attached and detached homes except in Berthoud, which saw a year-over-year decrease of 0.69 percent in the average sales price of detached houses and a year-over-year decline of 7.49 percent in attached homes. Those looking to buy for cheaper may find opportunities in this area.

The Demand for Boulder

The intimate atmosphere in Boulder is still extremely attractive, as shown by the most significant increase in closed sales and closed sales volume year over year. Since April 2020, detached homes saw a closed sales increase of 144.23 percent and a closed sales volume increase of 316.56 percent, and attached properties experienced a closed sales increase of 120.51 percent and a closed sales volume increase of 142.74 percent. 

Attached Properties in Windsor Are Lacking Love

Windsor saw the largest disparity in sales of detached and attached homes as the closed sales and closed sales volume of detached properties increased by 79.10 percent and 89.47 percent year over year, respectively, while closed sales and closed sales volume of attached homes decreased by 50 percent and 46.94 percent year over year, respectively. Despite the sizable drop in purchases of attached properties, prices haven’t lowered, as the average sales price increased by 6.11 percent and detached homes’ average sales price increased by 5.79 percent.

Homes Are Flying off the Shelves Faster

Berthoud saw the most drastic drop in average days on market with an 83.54 percent reduction for attached properties and decreased to the shortest timeframe for average days on market across northern Colorado at 26 days in April 2021 from 158 days in April 2020. Fort Collins has the lowest average days on market for detached homes, with a 44.78 percent reduction, going from 67 days in April 2020 to 37 days in April 2021. Homebuyers need to make quick decisions to compete in these fast-paced markets.

*Written May 25, 2021. Updates may be available after this date.

Colorado Real Estate News

Denver Real Estate Market Trends

Image of a fireplace and patio lounge furniture

April 2021 Showed Blatant­­ Hyper-Demand In the Residential Housing Industry

The market continues to result in historic low months-end inventory, even with months-end active inventory increasing by 35.03 percent. Altogether, there were still only 2,594 active properties at the end of the month, representing the lowest April on record and 48.38 percent less inventory.

The Importance of One Year Ago

April 2020 was a month of confusion and uncertainty for the world. The ebbs and flow of being an “essential” worker were reflected in new listings last year, which were down 43.02 percent compared to April of this year. Since last year, the market has seen a steady rise in competition and therefore prices have as well. With only two weeks of inventory, year-over-year appreciation continues to be staggering for the market while also bringing homesellers inevitably great returns, increasing 24.20 percent in April. 

The Luxury Market Has Experienced the Most Growth

In 2018, 2019 and 2020, year-to-date closed sales of properties over $1 million were 649, 654 and 661, respectively. So far, in 2021, there have been 1,353 closed sales, more than double the number of the past three years. The median days in MLS for the Luxury Market was seven, down from 23 in 2020, 22 in 2019, 32 in 2018 and 48 in 2017. 

Where We Stand With Inventory Lows

Historically, the market has seen annual inventory reach its low point in February and March, followed by increased listing activity until it hits inventory peak in August and September. The Luxury Market appears to follow the trend with 28.82 percent more new listings in April than March, showing that it may be possible for buyers who outlast the competition fatigue to find themselves with more options than they have seen in the past few months. If so, with only one month of inventory for attached homes and 1.97 months for attached homes, buyers will need to keep vigilant. 

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

Colorado Real Estate News

March News Recap 2021

The Colorado housing market continues to be highly competitive testing buyers, and showing just how far people are willing to go to secure their dream homes. Proudly rooted in Colorado, our Kentwood brokers are experts in the Colorado market. As local experts, Kentwood Real Estate was featured in several news articles in the month of March, use the links below to read more!

Colorado Real Estate News

The Top 3 Indicators for Commercial Real Estate Recovery

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

Our Kentwood Commercial team of brokers is often asked what they see on the horizon for commercial real estate (CRE) and whether the sector across-the-board suffered pandemic woes.

In actuality, CRE is many sectors, not one. Commercial office sales and leasing are quite different from industrial and warehouse, retail and mixed-use are nothing like multifamily. If we unpack the variety of sectors in Colorado’s real estate markets, we can use the past 14-months to plan for the future.

Leading Indicators

Leading indicators are what drive behavior change and business results. The leading indicators of the Work from Home adaptations we’ve made over the past year are impacting both the housing and commercial office markets. Many businesses are planning to retain a hybrid model but are committed to being back in their offices by third quarter 2021 in some form. This will benefit office, but the sector still lags in other areas of CRE. Companies are looking for ways to consolidate and shrink their office footprint, and in metro Denver we have hundreds of thousands of square feet on the sublease market. Dr. Michael Sklarz wrote about the intersection of rising housing prices with office lease rates due to the WFH trend in a recent blog post.

Company Culture

CRE appears to outsiders to be a clinical, analytics driven area of real estate. In many ways, that’s true. However, human behavior and consumer behavior have a large influence over many CRE sectors. Retail and hospitality has been impacted in an outsized way by the pandemic and the business owners are re-imagining how their businesses will look going forward, and how their real estate needs will be changing as a result. Corporations are reconsidering the open floor plan “hoteling” model that came into fashion over the last decade. Some managers like that model even more as they move to a hybrid work from home format, others like it less as they wrestle with how to keep their employees safe in an office environment.

Warehouses Dominate

The industrial and warehouse sectors are thriving. Internet shopping is driving a need for fulfillment and storage which is driving demand for warehouses. This is a trend that picked up steam over the past year and should remain strong as we move into 2022 and beyond.

Commercial real estate is thriving in Colorado for many owners and landlords. Others are still struggling – multifamily owners are impacted by eviction moratoriums, strip malls with family-owned restaurants and shops hope tenants reinvigorate as society opens back up, large office buildings aren’t clearing vacancy rates at the planned for velocity. The best way to stay informed about CRE is to speak with brokers who know all aspects of the business. Kentwood Commercial brokers are seasoned professionals who stand ready to help.

Colorado Real Estate News

Top Nine Spring Activities in Colorado

Spring has sprung, Colorado! Are you struggling to come up with fun, family-friendly activities to keep you and the kids entertained? We’ve got you covered with this list of the nine best spring break activities in Colorado. So, read away and get ready for great ways to play!

1. Visit a National Park 

If you’re looking to experience the beauty of nature, then Colorado’s National Parks have got you covered. From colorful canyons to majestic mountains, these parks are sure to provide the perfect escape for you and your family to soak up some sun and breathe in some fresh air. 

2. Take a Food Tour

Are you craving new cuisine? Why not check out a food tour in Colorado Springs? With Rocky Mountain Food Tours, you can visit five of Colorado Springs’ top restaurants in just a few hours. That way, you can take a bite out of Colorado Springs without breaking the bank. In addition to offering contact-free check-in, groups are limited to eight people and masks are required. Read more about their safety protocols for a delicious and safe experience. 

3. Stop By the Cheyenne Mountain Zoo

Located in Colorado Springs at 6,800 feet above sea level is the “highest zoo in America.” With beautiful views and over 200 species of animals, the Cheyenne Mountain Zoo is sure to please the animal lover in your family! Start the day with a stroll through the reptile exhibit and at lunch be sure to feed the hungry giraffes. Advance e-tickets are required as well as masks. Read more about their COVID-19 restrictions to best plan your visit.

4. Check Out the Royal Gorge

Want to add a little suspense to your spring fun? Then steer your car towards the Royal Gorge Bridge and Park. This gorgeous gorge is home to the highest suspension bridge in America and the park offers tons of rides too. A trip to the Royal Gorge is guaranteed to give you and your family fond memories that will last a lifetime. Every person ages 10 and up must wear a mask but beaming smiles will still be easily noticeable!

5. Drive to the Top Of Pikes Peak

Nothing embodies exploration and enjoyment like a good old-fashioned road trip. Standing tall at 14,115 feet, Pikes Peak offers the perfect opportunity to get in the car and relish each other’s company and some fantastic views. Just be sure to bring a coat because it is bound to be chilly once you reach the summit.  


6. Go Horseback Riding Through Garden of the Gods

For a unique adventure, trot down to Garden of the Gods and hop on horseback. With breathtaking sandstone formations and a ton of hiking trails to choose from, Garden of the Gods is a must-see for any Coloradoan. However, if you want to experience this classic landmark in a whole new way, try taking a trail riding tour and elevate your perspective. Groups are limited to eight people and you must arrive 30 minutes before the scheduled ride.

7. Learn Something New at the Denver Museum of Nature and Science

Even us adults don’t have to stop learning. Located in downtown Denver, the Denver Museum of Nature and Science offers the perfect mix of education and enjoyment. Uncover the mysteries of Stonehenge and venture into the prehistoric era to watch Allosaurus and Stegosaurus do battle with an 80-foot-long Diplodocus towering overhead! Discover gems about ancient history and Colorado’s recent history with exhibits like Tom’s Baby, an eight-pound nugget of crystallized gold unearthed in Breckenridge in 1887. Masks are required, indoor capacity limitations are in place, likely resulting in queue times, and popular galleries require timed entry tickets.

8. Stay a Night at The Stanley Hotel

Staying home all of spring is a frightening thought. So why not pack your bags and take a weekend getaway to the famous Stanley Hotel in Estes Park? Stay for the night and the frights. Meet some friendly ghosts and entertain the kids with the variety of activities offered at our other blog here [link to blog].

9. Browse the Denver Art Museum 

If you’re looking for some sights that will astound and delight you, then venture on down to the Denver Art Museum. Take a stroll through the nineteenth century’s art and then explore the fashionable Véronique and Gregory Peck exhibit. Afterward, you can grab a snack in Denver’s beautiful River North Art District (RiNo) and maybe even do some shopping. In addition to masks being required, be sure to check out their Plan Your Visit page to make sure you have a fulfilling and safe experience.

As the weather warms and adventure beckons, don’t spend your time wondering what to do. Go out and try a few of the activities on this list so you can make this spring the best one yet!

Colorado Real Estate News

Maintain Your Home’s Cleanliness in Spring

It’s that time of the year! It’s the annual spring-cleaning ritual! As avid home lovers, this could quite honestly be our favorite holiday!

Okay, well, maybe it’s a close second. 

Springtime is the perfect opportunity to reset and get your home into tip-top shape before summer rolls around. But how do you start? Great question! Maintaining your home’s cleanliness can be a daunting and sometimes overwhelming task. We all have busy days; whether that’s a 9-5 job, dropping your kids off at soccer practice, walking your dog or Zoom fatigue – it’s hard to fit cleaning into your day. Here are some tips and tricks to maintain the cleanliness and freshness of your home!

Consistency Is Key

First, it’s all about consistency. Creating habits and sticking with them is the best way to sustain a tidy home. By having a steady schedule, you will exceed your expectations in achieving your goals while simultaneously creating a sense of accountability. While everyday cleaning habits can be exhausting, you should prioritize which ones are necessary for achieving your desired results. Tackling those daunting tasks in small chunks is a great way to get started. And don’t forget to involve the entire household! Maintaining your residence’s cleanliness doesn’t have to be a one-person job, so be sure to include your family and make this process enjoyable for all!

Gutters and Windows

While the gutters and windows are frequently overlooked, regular maintenance on these elements of your place helps with your residence’s overall aesthetic, safety and well-being. Eliminating gutter debris is no easy task; however, it is essential to clean the gutters every once in a while to avoid an expensive repair. Suppose you want to make this process easier. In that case, you can install mesh guards to keep leaves from entering, purchase a reliable ladder and invest in the right equipment such as waterproof gloves and standoff stabilizers. Now that you have those gutters emptied, climb down that ladder and spritz those dirty windows! Individuals frequently clean the inside of their windows, but what about the outside? Not only will this enhance the appearance of your house, but it will also give you a clearer space to look out from.

Air Purifiers 

Another way to keep your home feeling fresh is to incorporate the use of scented candles, incense, essential oils or air fresheners. (And who doesn’t love a good candle?) Individuals associate smells with feelings therefore you have the creativity and capability to choose how you want your guests to feel when they walk through the door. Another decoration to make your house feel fresh is the inclusion of plants. Potted plants don’t have to be just for show! They are natural air purifiers and assist with providing clean and fresh air through their secretion of oxygen. Some of the best air-purifying plants are peace lilies, geraniums, Arabian jasmine, Cuban oregano, gardenias, eucalyptus and corsage orchids. 

Maintaining your place’s cleanliness and freshness doesn’t have to be intimidating. With a consistent schedule and help from the family, it will soon be implemented in your daily routine. Looking for more tips to enhance your residence? We can help! Let Kentwood help you live your best life and find your next dream home. Give us a call today at one of our four unique locations in Colorado!

Colorado Real Estate News

Real Estate Market Trends

March 2021 Depicts an Emotional Market in the Greater Denver Metro Housing Area

With nearly every statistic in the report justifying how much competition there is for buyers, the market can visibly observe how far buyers are willing to take their offers in order to secure a home.

Whether Looking at Detached or Attached Properties, It is a Strong Seller’s Market Across the Board

Year-over-year appreciation is at 15.26 percent from $511,511 to $589,587 this March, while month-over-month appreciation is at 6.90 percent from $551,542. On par with recent months, median days in the MLS went down to four, while close-price-to-list-price ratio went up to 103.32 percent.

New Listings in the Luxury Market Are Also Unable To Keep Up With Buyer Demand

Reports show that as prices and appreciation continue to soar, more homes cross the threshold into the Luxury Market as a result.

Sales Volume for the Attached Segment of the Luxury Market Is Up Substantially

62.63 percent year-over-year to $64,182,709 and up 63.56 percent month-over-month from last month’s $39,240,156. As volume has gone up, median days in MLS has fallen from 27 days last year and even a whopping 35 days in February to only seven days in the month of March.

New Detached Listings Increased, Barely Keeping Pace With the Pending Sales

Listing increased 28.03 percent with 402 new listings, up from 314 last month. This barely kept pace with the pending sales topping out at 399, a 26.27 percent increase month over month. As a result, sales volume was also up month-over-month 57.43 percent reflecting $558,253,910 at month-end.

In a Highly Emotional Market, One Must Understand How Much Competition Is Out There

Instead of using past sales as an indicator, one must also understand how much competition one has when submitting an offer. The data is a small piece of the puzzle. The bigger question is what are buyers willing to offer to beat out your competitors?

Colorado Real Estate News

DMAR Awards

Congratulations to our Kentwood Denver Metro Association of Realtors Honorees

At Kentwood Real Estate we thrive on excelling at our profession, at serving our clients and community and being at the top of our game. One of our local Realtor Associations, the Denver Metro Association, honors top producers each year at their annual Excellence Awards.

This year we had 108, over half of our Denver brokers, qualify in one of the award categories.

We celebrate everyone on this list for their outstanding 2020 production and encourage you to reach out to any Kentwood broker for unparalleled service. Find all Kentwood brokers here.

Diamond | $40 Million+, 100+ Sides:

Individuals

Dee Chirafisi

Amanda Fein

Gina Lorenzen

Partnership

Kevin Garrett & Matthew McNeill

Team

Denver’s Top Team: Wendy Glazer, Sana Wood, Jacci Geiger, Mary Jones

Neir Team: Stacy Neir, Alex Neir, Laura Bohan Fuller

Titanium | $30-$3.9 Million, 85-99 Sides:

Individuals

Jim Rhye

Dotson Skaggs

Josh Steck

Partnership

Sarah Clark & Kayla Schmitz

Pam Coakley & Elizabeth Sacerdoti

Doug Hutchins & Leslie Monaco

Team

Hotz Group: Loren (Larry) Hotz, Elizabeth Hotz, Meredith Hotz, Andrea Holeso

Kruse/Nussbaum Team: Steven Kruse, Sandra Kruse, Staci Burns, Jim Nussbaum

theMOVEgroup: Allison Smookler, Gregory Yoshida, Zach Gilbert, Ron Smookler

Platinum | $20-$29.9 Million, 70-84 Sides:

Individuals

Karen Brinckerhoff

Keith Combs

Heather Ehret-Faircloth

Linda Hantman

Ann Kerr

Edie Marks

Blake O’Shaughnessy

Annzo Phelps

Dawn Raymond

Bob Serotta

Partnership

Patty Anton & Greg Card

Tom Gross & Britt Armstrong

Brian Harris & Jamie Harris

Bob Kelly & Sean Kelly

Alan Larson & Todd Landgrave

Ann Lenane & Angela Beldy

Roy Lopez & Jonathan Lopez

Greg Margheim & Kelly Sophinos

Team

Dwell Colorado: Martha Potter-Goldstein, Amy Hulsey, Brian Rosen

Lee/Turner: Bob Lee, Andy Lee, Bill Turner

Gold | $15-$19.9 Million, 50-69 Sides:

Individuals

Andrea Bell

Jim Buckley

Darrell Hamilton

Brigette Modglin

Kim Norton

Christy Owen

Jill Schafer

Jim Traynor

Julie Winger

__________

Jill Schafer

Jim Traynor

Julie Winger

Partnership

Christopher Ansay & Jeff Perry

Berenice Bejarano & Brian Noel

Jenna Fulk & Elizabeth VanCamp

Gayle Glucksman & Tiffany Glucksman Appel

Sean Larkin & Debbie Larkin

Sheila Schlifkin & Mitchell Rothman

Silver | $10-$14.9 Million, 35-49 Sides:

Individuals

Susan Axelrad-Giery

Michel Brossmer

Allison Craig

Susan DiLiberti

John Fitzpatrick

Chuck Gargotto

Sara Glaze

Stock Jonekos

Robyn Landry

Aimee Twarogowski

__________

Stephanie Lepard

Libby Levinson

Parker Loveless

Nancy Nielsen

Carolyn O’Donnell

Diane Sorensen

Luisa Staerkel

Jaryd Takushi

Sandy Weigand

Partnership

Tom Cryer & Dee Cryer

Thomas Dutzer & Rosanne Dutzer

Andrew Maguire & Justin Moser

Ed McWilliams & Ann McWilliams

Bronze | $4-$9.9 Million, 20-34 Sides:

Individuals

Laura Amann

Christy Andrisen

Kris Berton

Soley Maria 

Brandon Brennick

Keri Duffy

Bryan Facendini

Jinnohn Gilmore

Faun Hauptman

John Hayden

Megan Heagle

Brent Jones

Kris Kerr

Rob Kishbaugh

__________

Wendy Lee

Karl Lueders

Joyce Mahn

Elise Marks

Lori Pace

Tricia Potucek

Joyce Romanello

Scott Scholbe

J. Garland Thurman

Steve Travers

Pat Wall

Nancy Walters

Anastasia Williamson

Steve Wood

Partnership

Tom Colleran & Whitney Harris

Julie Egan & Sallie Grewe

Jon Gordon & Peggy Gordon

Bobbi Lou Miller & Jennifer Dechtman

Bryan Uhl & Kris Uhl

Bill Verdon & Andrew Gonzales

Colorado Real Estate News

Colorado Housing Market Scorches Before Summer Heat Sets In

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

Metro Denver ended March 2021 with just 1,654 active listings on the market and an average sale price of $663,749. That’s for a metropolitan area of approximately 3 million residents.

The Fort Collins market was down in new listings 16.4% YOY from Feb 2020 to Feb 2021 (therefore pre-COVID shut down.) Median days on market in Denver is … 4! Those are the days listing brokers need to sift through 35+ offers and create spreadsheets for sellers to evaluate.

When the supply of houses for sale is as low as it is today, buyers are left struggling to find homes to purchase. Competition among purchasers is fierce and some bidding wars are legendary. Sometimes buyers only have 15 minutes in a house and then need to decide whether to purchase the biggest investment of their lifetimes.

Thus, home prices are rising rapidly, and sellers are negotiating hard to meet their ideal terms. Buyers are faced with impossible choices like waiving home inspections and putting more money down to guarantee a sale even if an appraisal comes in lower than the purchase price. 

Where Are the Sellers?

Homebuilders can’t build fast enough and they’re experiencing severe constraints on their supply chains, which increases prices and slows construction. Many resale homeowners are fearful, and that fear is motivating them to stay put. Last year it was fear of COVID. This year it’s the fear of not finding a suitable replacement home, the fear of entering a bidding war.

We must figure out ways to encourage homeowners to become sellers or many buyers will come off the field. The potential of rising rates in future months will certainly chill demand somewhat. What if there was a way to increase homeowners’ desire to sell, therefore improving supply? Would a government tax credit help? Could a waiver of capital gains tax exempting those with more than $250,000/$500,000 in proceeds help spur the supply side? Now is the time for our industry and our policy-makers to get creative in solving for the massive supply/demand imbalance.

All along the Front Range of Colorado, there are many buyers who are ready, willing, and able to purchase a home. Low mortgage rates and a year filled with reevaluation have prompted many people to think differently about where they live. Our housing supply is not keeping up with the extraordinary demand. It’s a tremendously advantageous time to be a seller if you’re game.