Colorado Real Estate News

Northern Colorado Market Trends

In the world of housing, anticipation has been hanging heavy on the Federal Reserve’s every move. With promises of interest rate cuts looming, the anticipation is notable across the American economy. While the cuts remain pending, the residential real estate market in Northern Colorado has wasted no time in forging ahead into 2024 on a positive note, as we begin to look ahead towards spring. Many educated sellers know that buyers are experiencing spring fever and are tired of sitting on the fence watching home prices increase.Residential real estate sales in February have largely shown an upward trend compared to the previous month in both the Boulder Valley and Northern Colorado.

In Fort Collins, February witnessed a significant surge in detached closed sales, leaping from 91 in February 2023 to 107 in 2024, marking a notable 17.58 percent increase. Moreover, closed sales volume experienced a healthy uptick of 12.26 percent, reaching $69,155,989 for last month. The average sales price for detached properties was the sole decline year-over-year, dipping from $683,033 to $652,095. Conversely, in the attached segment of the market, the average sales price saw an increase of 5.84 percent, reaching $418,284. However, closed sales in this category dropped by 15 percent to 34 in 2024, with closed sales volume down by 10.04 percent year-over-year to $14,22,644.

In Loveland, the market followed a more seasonal trajectory, with detached closed sales decreasing from 85 in 2023 to 71 in 2024, marking a 16.47 percent decline year-over-year. Closed sales volume also experienced a dip of 10.22 percent this Feburary, totaling $42,870,393, aligning with typical February trends. Attached sales mirrored this downward trend, dropping by 26.32 percent year-over-year to 14, with closed sales volume down by 25.59 percent to $5,805,724 as well.

Boulder, on the other hand, defied the usual winter slowdown, boasting a remarkable 67.97 percent surge in detached home sales, skyrocketing from 128 to 215 transactions. The closed sales volume for detached properties similarly soared by 59.72 percent from the previous year, reaching $232,913,413. The attached segment also experienced a surge in closed sales, climbing from 77 to 97 in February 2024, representing a notable 25.97 percent increase. However, the average days on the market increased by 31.15 percent year-over-year, rising from 61 to 80 days.

In Berthoud, detached closed sales saw an uptick of 11.54 percent, rising from 26 to 29 year-over-year. Overall, the closed sales volume for detached properties experienced a marginal decline of 2.00 percent, amounting to $19,975,452. Conversely, in the attached market, all indicators pointed downwards, with closed sales going down from 6 to 1, and an 86.30 percent decrease in closed sales volume, dropping from $3,393,82 to $464,990, mirroring the typical seasonal slowdown. 

“As the spring season unfolds, Northern Colorado’s real estate market stands resilient amidst interest rate movements. With the excitement of spring fever, sellers are seizing the moment, navigating the market with confidence and optimism” said Sarah Tyler, Managing Broker at Kentwood Real Estate Northern Properties.

*Updated March 15, 2024

Colorado Real Estate News

Rise of Quiet Luxury

The rise of “quiet luxury” took the fashion and interior design world by storm the past couple years, but as we dive further into 2024, it is still prevalent in many design and decor choices, proving that the trend, also known as ‘old money’ style, is here to stay. But what exactly is ‘quiet luxury’, and why is it still so popular?

This shift signifies a departure from the ostentatious displays of wealth towards a more understated and refined approach to luxury living. Both the convergence of technological advancements and changing lifestyle aspirations is reshaping the luxury real estate market. Now, more than ever, we seek comfort and luxury in our homes; spaces that exude warmth, elegance, and serenity. We wish for pieces crafted from high-quality materials that will enhance our homes and our lives while acknowledging the impact on the environment. 

The Influence of Media: ‘Succession’ and Quiet Luxury

Many attribute the television series ‘Succession’ as playing a role in bringing the concept of quiet luxury to the forefront, as evidenced by the resurgence of iconic brands like Zegna, which attributes its return to profitability to the demand for understated elegance. The allure of “if you know, you know” exclusivity has become a driving force in the luxury market, challenging the dominance of mega-brands.

One example of the quiet luxury trend is a modern Hamptons mansion featured in the aforementioned ‘Succession.’ This $55 million property has been named as the epitomization of the quiet luxury movement with its discreet location, impressive amenities, and refined aesthetics. The mansion, as seen in Season 3, Episode 4, offers a blend of tranquility and opulence, showcasing the trend’s emphasis on sophistication and understated elegance.

Nearly all the homes showcased in the award-winning ‘Succession’ exemplify the quiet luxury trend through meticulous craftsmanship and attention to detail. For instance, the $83-million San Onofre estate in Pacific Palisades, California, boasts classic architectural elements and meticulously designed interiors with expensive materials like marble and fine woodwork. The property’s amenities create an ideal setting for social gatherings, appealing to those who value high-quality networking in a discreet environment.

Other European real estate featured in ‘Succession,’ such as Villa Cetinale in Siena and Villa La Cassinella on Lake Como, further exemplify the quiet luxury characteristics. These historical properties offer timeless elegance and exclusivity, attracting high-net-worth buyers with a taste for understated opulence. 

Here are some ways you can incorporate the trend into your own home: 

  1. Embrace Warm Minimalism in a Bathroom

Bathrooms can now be more than purely functional spaces,  they are the perfect places to embrace the latest trend for quiet luxury. More homeowners want to create an oasis of wellbeing at the heart of their home so they can enjoy it as a private retreat to de-stress and unwind. For a cleaner, more modern alternative to warm minimalism, the Japandi design concept is an amalgamation of Scandinavian and Japanese aesthetics, and presents a less is-more statement that exudes confidence. Natural materials, especially woods like the rich walnut seen on this Copenhagen collection, are commonplace and perfect for softening a contemporary luxury bathroom while still leaning into the warm minimalism of the quiet luxury trend.

  1. Curate a Kitchen That Feels Like a Living Space 

The kitchen of 2024 is evolving into a space that goes beyond mere functionality, aiming to exude sophistication comparable to a luxury living room. The ideal luxury kitchen is a social space where friends and family can gather comfortably without the distraction of visible appliances. A key consideration for achieving quiet luxury in kitchen design is the incorporation of texture, as showcased in neutral-toned spaces. Textural elements, ranging from rough jute rugs to woven materials like wicker and stoneware vases, add depth and interest to the overall aesthetic. This emphasis on texture not only enhances visual appeal but also contributes to a warmer and more inviting atmosphere, transforming the kitchen into a multifunctional haven.

  1. Minimize Noise and Clutter in the Home

“Hushing the house” or quieting the home originates from a decluttering perspective, aiming to create a serene and muted living space that allows the elements of shapes, materials, and colors to harmonize rather than overwhelm. This approach embraces a “less-is-more” mentality while preserving warmth through careful consideration of color and texture. A sublime palette of neutrals and furniture that promotes calmness and cohesion in a quiet luxury living room. The goal is to craft an enduring and elegant space that remains timeless, versatile enough for both relaxation and entertaining, ensuring it won’t go out of style.

  1. A Luxury Quiet Bedroom for Deep Slumber 

The bedroom serves as an ideal space to embrace the quiet luxury movement, with a focus on creating a cozy and calm environment for rest and relaxation. Surrounding oneself with aesthetically pleasing items, such as amethyst and aromatherapy oils, can also enhance sleep. Additional relaxation options include silk-covered weighted blankets, known for reducing restlessness and aiding in faster sleep onset. Personalizing the space with nature-inspired designs, whether through artwork or framed pressed flowers, adds a luxurious touch. Introducing a rug, ideally on either side of the bed, provides a soft underfoot experience in the morning. The choice of bedroom color scheme is equally important, as colors can soothe, warm, and nurture, influencing sleep quality, energy levels, and overall well-being.

Beyond Physical Attributes: The Lifestyle of Quiet Luxury

The quiet luxury trend extends beyond the physical attributes of a property, encompassing a lifestyle marked by understated opulence. These homes prioritize privacy, comfort, and a sense of sanctuary. Rather than flaunting extravagant features, they rely on a carefully curated approach that resonates with the discerning preferences of high-net-worth individuals.

As the luxury real estate market continues to transform, the “quiet luxury” trend is reshaping the way many approach luxury living, and defining a new era in luxury real estate. The fusion of technology and refined aesthetics promises an exciting journey ahead in the pursuit of subtle opulence.

*Updated as of March 6, 2024

Colorado Real Estate News

Navigating the Rapid Shift from Winter to Spring Real Estate Market

As winter starts to retreat and spring blossoms, Denver Metro’s real estate market is experiencing that springtime shift we’ve all come to know and expect. Arriving earlier, and with more gusto than most anticipated, the recent surge in February’s housing market indicated a bit of a departure from traditional seasonal patterns, leaving real estate brokers with new challenges and opportunities to navigate as we look ahead.

The February trends report from the Denver Metro Association of Realtors revealed a market that is currently defying winter expectations and showing signs of an early spring. The days when sellers waited for their spring gardens to bloom before listing their homes for sale are now long gone. The February weather may have said ‘winter,’ but the market said, ‘spring.’ This shift is attributed to sellers re-entering the market, eager to capitalize on pent-up demand following a period of uncertainty fueled by interest rate fluctuations.

At the end of February, active listings spiked to 5,511, marking a 46 percent increase from the previous year and a 350 percent surge compared to February 2022. This surge is the second-largest percent increase on record, indicating a robust market that demands attention. With pent-up buyer demand and limited inventory, the median close price rose to $576,584, a 2.4 percent increase from the previous year.

Buyers, experiencing a touch of spring fever, are influencing the dynamics of negotiations and becoming more demanding because they have more options. In response to rising interest rates, buyers are keen on securing move-in-ready homes, putting pressure on sellers to ensure their properties are in optimal condition.

The median days on market went significantly down from 36 in January to 23 in February, showcasing the urgency of the current market. Sellers who invest time in preparing their homes for showings by decluttering, servicing HVAC systems, and addressing maintenance concerns are likely to attract multiple offers and maximize their profits. However, buyers are not only scrutinizing the condition of homes but also strategizing on negotiations. Savvy buyers are well-aware of the growing inventory, empowering them to negotiate upfront on price and terms, as well as during inspections.

The rise in new listings and closings reflects the overall momentum in the market. New listings surged by 29.1 percent month-over-month, reaching 4,243, and closings increased by 31.2 percent to 2,864. Despite a slight dip in closed sales compared to the previous year, the market remains very strong, driven by an increase in seller activity.

As interest rates tick up again, the impact on the market is evident. February saw a 17 percent drop in mortgage applications due to a rise in the average 30-year loan rate from 6.67 percent to 7.13 percent. Despite this, pending sales increased at a rate of 12.7 percent, indicating a resilient market. 

In the Luxury Market, the trend of early listings continued, with a substantial increase in inventory for homes priced at $2 million and above. The rush to list properties, particularly in the attached market, resulted in an influx of new listings, causing an imbalance in supply and demand. Sellers in this segment should be prepared for a more competitive market.

The rapid shift from winter to spring brings both challenges and opportunities for buyers, sellers, and brokers in Denver. Prepared sellers, understanding the nuanced needs of today’s buyers, can navigate the market successfully. On the other hand, discerning buyers armed with knowledge about home insurance and negotiating strategies are well-positioned to make informed decisions. 

As the spring season unfolds, we advise everyone to stay informed and agile to seize the opportunities that this season presents. For more information, visit us online at www.Kentwood.com to explore or reach out to your dedicated Kentwood broker for personalized assistance.

*Updated as of March 11, 2024 

Colorado Real Estate News

Denver Market Trends

As the Denver real estate market gears up for the spring selling season, a surge in interest rates has prompted savvy sellers to capitalize on the growing impatience of potential buyers. The month of February witnessed a notable 29.12 percent month-over-month increase in new listings, coupled with a substantial 22.63 percent surge year-over-year. This influx of fresh properties has significantly boosted active listings, reaching 5,511 homes—a 45.87 percent gain compared to the previous year.

In response to the expanding inventory, discerning buyers are taking a more measured approach. Pending sales increased by 12.70 percent month-over-month, totaling 3,514, indicating that buyers are carefully evaluating their options and ensuring that the chosen property aligns with their needs. Successful sellers in this competitive market have dedicated time to ensure their homes are in prime condition for showings, resulting in multiple offers and maximized profits for those who executed their plans effectively.

Buyers are adopting diverse strategies in this evolving landscape. Some are navigating multiple offers on their dream homes, while others are expanding their search parameters to find hidden gems in the market. Buyers are increasingly aware of the growing inventory, giving them negotiating power on both price and terms, including inspections.

One noteworthy shift in buyer strategy involves considering home insurance availability, a concern that has become prominent not just in Denver but across the country. Prospective buyers are now factoring in home insurance considerations before submitting an offer, reaching out to insurance providers to ensure coverage in their desired areas, and obtaining Comprehensive Loss Underwriting Exchange (CLUE) Reports. This proactive approach allows buyers to identify potential hurdles, such as insurance providers declining coverage, which could otherwise disrupt a transaction.

Despite the challenges, the spring season in Denver is heating up. Prepared sellers can minimize the need for a second round of negotiations during inspections, while strategic buyers enter the market with a clear understanding of their preferences and available options.

In the high-end real estate segment—properties priced at $2 million or more—the market has experienced a significant uptick in new listings. Sellers, no longer waiting for spring gardens to bloom, listed 689 new homes in February, marking the largest month-over-month increase in inventory for this segment. Attached homes priced at $2 million and above saw a staggering 96.77 percent increase, while detached homes rose by 58.99 percent.

This surge in new listings has created a surplus of inventory, particularly in the attached market where condos and townhomes priced between $1.5 million and $1.99 million have 9.25 months of available inventory. Similarly, attached homes over $2 million face 7.33 months of inventory, establishing this segment as a favorable buyer’s market. In contrast, detached homes remain more competitive, especially in the $1 million to $1.499 million price range, boasting only 2.63 months of available inventory. At higher price points, buyers hold an advantage, with the $2 million plus segment having 6.38 months of inventory in February.

The early rush in the market signals sellers’ pent-up desires to capitalize on the current conditions, despite interest rates remaining above six percent. Tired of waiting for the perfect conditions, sellers have decided to jump back into the market, contributing to the notable surge in new listings and making the Denver real estate market an exciting space for both buyers and sellers.

*Updated as of March 5, 2024 

Colorado Real Estate News

Northern Colorado Market Trends

After a bit of a lackluster close to 2023, the real estate landscape in NoCo is showing signs of a resurgence in 2024. Market analysts attribute this shift to the anticipated decline in interest rates, creating a renewed sense of activity. In January, the housing scene witnessed a flurry of new listings, sparked possibly by the downward tick in interest rates. Across the region, the year-over-year surge in new listings was remarkable, ranging from the high teens in Boulder to an impressive nearly 49 percent spike in Greeley, closely trailed by Longmont at 40.4 percent. These surges seem to be more than just the result of new construction or sudden seller decisions; they reflect the palpable excitement among sellers fueled by the prospect of declining interest rates.

In Fort Collins, January experienced a dip in closed sales for detached homes. However, attached homes remained steady compared to the previous month. Closed sales are a measure of the properties that went under contract the previous 30-45 days. With the holidays in December, it’s no surprise to see January closings dip. This is the seasonality we so often talk about in real estate.

The average sale price for detached homes in Fort Collins witnessed a significant month-over-month increase, jumping from $745,802 in December 2023 to $806,482, marking a substantial 27.79 percent rise since January 2023. Average days on the market reached 73 in January 2024, up from 65 the month before and marking a 15.87 percent increase year-over-year. Attached homes also experienced a noteworthy year-over-year increase in average sales volume, rising from $9,985,145 in January 2023 to $13,310,464 in January 2024.

Loveland observed a modest uptick in detached home sales from 62 last month to 71 this month but faced a significant decrease in closed sales volume from $54,459,243 in January 2023 to $37,517,659 last month, reflecting a substantial 31.11 percent decrease year-over-year. This month, the average sales price for detached homes in Loveland witnessed a more pronounced 34.02 percent drop, sliding from $800,871 in January 2023 to $528,418 in the current month.

Boulder experienced a surge in detached home sales, recording a substantial 38.39 percent year-over-year increase in January, leaping from 112 to 155 transactions. The closed sales volume in the detached sector also soared by 18.84 percent last month to $181,174,051, underscoring heightened interest in the attached property market. However, the attached segment saw a 10.29 percent decrease in closed sales, dropping from 68 to 61 in January 2024, with average days on the market rising by 32.73 percent from 55 to 73 year-over-year.

Berthoud witnessed declines in both detached and attached closed sales, with a 50.00 percent dip in detached and a significant 100 percent drop in attached sales. Overall, closed sales volume decreased by 58.81 percent in detached and a substantial 100 percent in attached properties as no attached properties were sold this past month in the region.

“We are witnessing a promising resurgence in NoCo’s real estate scene throughout 2024,” said Sarah Tyler, Managing Broker at Kentwood Real Estate Northern Properties. “This momentum is fueled by the anticipated decline in interest rates, igniting excitement among sellers. From the increase in listings to the evolving sales dynamics, the market reflects a noticeable sense of anticipation and change.” 

*Updated February 18, 2024 

Colorado Real Estate News

Exploring Ideal Second Home Locations in Colorado

In the evolving landscape of second home investments, we’ve observed shifts in demand and trends, especially in Colorado’s coveted mountain regions. While the surge in second home purchases during the peak of the pandemic has tapered off, we’re now witnessing a unique opportunity emerging in the market. As we progress through 2024, this is creating a favorable environment for those considering expanding their property portfolio.

In light of these dynamics, we, at Kentwood Real Estate, are here to provide our expertise and assistance as you navigate a potential second home purchase. If you’re eyeing a new property in other areas around the state, finding a great broker in the Kentwood network is one referral away, and many Kentwood brokers have specialized experience in the Colorado communities mentioned below.

Whether you’re seeking a mountain escape or an urban setting, we recommend the following locations for your second home purchase: 

Summit County

If you’ve had the privilege to visit Summit County, you know the area stands out for its mountain views and well-known ski resorts in Breckenridge, Keystone, and Frisco. Summit County is a year-round playground, with skiing and snowboarding in the winter and hiking, biking, and golfing in the summer. Investing in a second home here not only provides a haven for outdoor enthusiasts but also potential passive income through vacation rentals, which have skyrocketed in the area. 

Grand County

For those seeking a quieter retreat, Grand County is an excellent choice as the region is known more for its laid-back and casual atmosphere. With towns like Winter Park, Grand Lake, and Fraser, this area offers views surrounded by pristine lakes and dense forests and provides year-round activities such as boating, hiking, and biking near Rocky Mountain National Park. On top of this, Winter Park Resort is a family-friendly alpine resort with various activities for skiers of every level. 

Steamboat Springs

Famous for its champagne powder and world-class skiing, Steamboat Springs is an adventurous destination with the longest, fastest gondola in North America. We know the town offers a mix of outdoor pursuits, including skiing, snowmobiling, and hot-air ballooning, and the real estate value in Steamboat Springs hasn’t reached Vail or Aspen numbers yet, meaning it’s still an ideal investment location for a second home. Kentwood Real Estate can guide you through the process of securing your second home in this Northwest Colorado haven.

Aspen

Aspen, renowned for its high-end real estate and glamorous reputation, remains a top choice for those seeking a luxurious second home. Around the town, prices are always higher than in other locations, and the upper end of the market is still very much driving volume and driving activity. Overall, people still want to be there and there’s strong demand and the inventory is constrained.

Bottom Line

No matter the location, Colorado offers a diverse range of second-home opportunities, and the Kentwood Real Estate team is well-equipped to guide you through the process. With Kentwood Real Estate’s global network, finding a great broker anywhere in the world is just a referral away. Through our Relocation Division and memberships in prestigious organizations such as Who’s Who in Luxury Real Estate, Leading Real Estate Companies of the World and Luxury Portfolio International, we ensure a seamless experience for our clients.

Many Kentwood brokers have significant expertise in Colorado’s mountain towns and those who don’t will work closely with you to match you with a knowledgeable and attentive broker who understands the area you’d like to explore.

Visit us online at www.Kentwood.com to explore more or reach out to your dedicated Kentwood broker for personalized assistance.

*Updated as of February 15, 2024 

Colorado Real Estate News

Denver Market Trends

In the heart of winter, Denver’s real estate market is warming up as buyers shed the chill of uncertainty and embrace the increasing choices available to them. The Denver Metro Association of Realtors® (DMAR) recently unveiled its January Denver Metro Real Estate Market Trends Report, offering valuable insights into the evolving market this year.

As the curtain rose on 2024, the market witnessed a surge in new listings, marking a 14.73 percent increase year-over-year, with detached properties leading the charge at 17.94 percent. This boost in inventory has granted buyers more options, leading to a 6.5 percent increase in pending home sales.

However, closed sales experienced a 6.26 percent lag, which can be attributed to a reporting delay as these numbers reflect homes that went under contract in December. Single-family homes saw a robust 11.95 percent year-over-year increase in pending sales, with the median close price reaching $625,000. This contrasts with the previous year, characterized by full-price offers with substantial concessions.

In the attached properties segment, pending sales declined by 6.61 percent year-over-year, suggesting a slightly slower pace in this category. Despite a 13.70 percent decrease in closed sales, the median close price remained steady at $395,000. The extended median days in MLS from 28 to 34 days year-over-year hint at a measured approach in this sector.

The spring selling season will likely be strong this year due to pent-up demand and more favorable lending terms. While it’s not a consistent prediction, if interest rates decline below five percent, we may see tighter inventory and more competitive scenarios once again. Many buyers are waiting on the fence for interest rates to continue their downward descent. However, trying to time the market for lower interest rates before the market heats up may result in buyers paying more in the long term if they find themselves in a bidding war. The generally anticipated date for any significant policy change on the Fed Funds rate is June 2024. In the meantime, a 2/1 loan buydown is an excellent vehicle to get into a home now with an initial rate that’s lower than current prime.

Turning our attention to the luxury real estate sector, the report highlighted a substantial increase in new listings for homes priced at $1 million and above. With a remarkable uptick of 172.61 percent over the previous month and 39.87 percent over the prior January, the Luxury Market is experiencing heightened activity.

Buyers in this segment are equally enthusiastic, as pending homes surged by 46.05 percent compared to the previous month and 23.33 percent compared to the previous January. However, the market is also witnessing the clearing of older inventory from late 2023, leading to a 26.33 percent decline in closed homes priced at $1 million and above from December.

We predict that competition between buyers is picking up and will continue to do so in the months ahead as we enter our busier time of year in Denver Metro. As we enter the February season of love the real estate market requires proper expectations and the right mindset. With competition on the rise and the market resembling a dating scene, finding the perfect match in a home might involve some challenges. Yet, when you find the one meant to be, it all works out. 

*Updated as of February 5, 2024 

Colorado Real Estate News

CEO Reflections: Expert Predictions for 2024 Home Prices

No one has a crystal ball, particularly when it comes to this unpredictable real estate market. Although there are a few indicators market watchers look for which point to slight appreciation in housing this year.

While home prices are still going up nationally, some fear prices might actually come down in the coming months. A recent survey from Fannie Mae found that 24% of people think home prices will decline over the next 12 months. Almost one out of four people are concerned about housing prices and wondering whether they should wait to buy. You might be, too.

To help ease that concern, here’s what experts forecast will happen with prices this year.

Experts Project a Modest Increase

The latest home price forecasts from eight different sources are in the graph below.

The blue bar on the left shows that on average, experts think home prices will go up by a little over 2% by the end of this year.

Prices aren’t likely to depreciate in 2024 because inventory is still tight and as mortgage rates trend lower strong buyer demand is resurfacing. Those two factors will keep pushing prices up as the year goes on, even if it’s not the same double digit appreciation of recent years.

Selma Hepp, Chief Economist at CoreLogic, explains:

“With mortgage rates dropping, demand for homes in early 2024 is likely to be strong and will again put pressure on prices, similar to trends observed in early 2023 . . . Most markets will continue to reach new home price highs over the course of 2024.”

What Does This Mean for You?

Experts are saying home prices will go up this year, and that’s good news if you’re thinking about buying a home. When you become a homeowner, you benefit when the value of your house to go up. Appreciation is what builds equity and makes homeownership a good investment over time.

Expected home price appreciation over this year means if you’re ready, willing, and able to buy, waiting could cost you more. We expect Colorado’s real estate market to surge come spring and we’re already hearing about multiple offers in some cases. If you purchase now, you may see rates go down after you close, but you’ll also see prices go up. Consider asking the seller for a rate buydown, which could make your first two years’ interest significantly less. The mortgage team at Prosperity Home Mortgage are happy to answer any questions.

Final Answer

If you’re worried home prices will come down, don’t fret too much. Many experts believe they’ll go up this year. Our team of highly experienced brokers at Kentwood Real Estate, selling from Denver to Boulder to Fort Collins, commercial rea estate and property management, are ready to assist.

Colorado Real Estate News

Northern Colorado Market Trends

2024 is here and the housing market is ready for action. Demand for housing in Colorado remains strong, which bodes well for the new year. However, after months of the market swinging towards more buyer-friendly, we are interested to see what lies ahead as housing experts suspect the pendulum is starting to come back towards sellers. December, however, followed what we tend to see in the market: a bit of a slowdown while families and friends get together and celebrate the holidays. 

In Fort Collins, residential real estate stayed right on course, with 102 detached homes sold, mirroring the previous month of 106. Attached homes also stayed on par with the previous month and nearly the same year over year at 41 versus 39 in 2022. The average sale price for detached homes in Fort Collins currently stands at $745,802, indicating a 14.84 percent increase since 2022. With the holiday season it’s really no surprise but sellers also noted another uptick in the average days on the market to round out the year, reaching 65 from 59. Attached homes, meanwhile, saw a pretty dramatic decrease year-over-year in average days on the market from 102 in 2022 to 71 in December 2023. All in all, total closed sales volume was unsurprisingly a whopping 39.45 percent higher than the previous December 2022 from $54,549,616 to $76,071,832 at the end of 2023.

Loveland followed a path of its own during the final holiday month, witnessing a slight decrease in detached home sales from 70 to 62 month-over-month, but experiencing an 23.30 percent decrease in the closed sales volume to $34,553,865 from $45,051,245 in December, 2022. However, the average sales price wasn’t much to bat an eye at, decreasing from $585,081 to $557,337, an only 4.74 percent drop year-over-year.

Boulder, recently named one of the most peaceful places to live, stands out with its jump in attached home sales of 27.03 percent year-over-year in December, from 74 to 94. Closed sales volume in the attached sector also shot up 17.84 percent last month to $50,238,370, reflecting people’s  increased interest in buying in the attached arena. Boulder’s desirability remains evident in that it almost always reflects an increase in detached closed sales volume with last month being no different, showing that the holiday season doesn’t really affect this mountain city. Closed volume sales in the detached category rose 4.16 percent to $173,116,872. Days on the market remain consistent with recent trends at 79.

Last but certainly not least, Berthoud chose to represent the typical December trend of slowing down so people can celebrate the holidays. Closed sales were down in both detached and attached sectors, at 10.34 percent in detached and 66.67 in attached, though we should note that is only the difference between 6 in 2022 to 2 in 2023, which explains the staggering number. Overall, closed sales volume in detached was down 20.81 percent and 73.42 percent in attached. 

“In the dynamic landscape of Colorado’s housing market, 2024 brings much anticipation as the pendulum shifts back towards sellers,” said Sarah Tyler, Managing Broker at Kentwood Real Estate Northern Properties. “Fort Collins maintains stability with increased sale prices, while Loveland experiences a slight dip and Boulder sees a surge in attached home sales. Buyer-favorable conditions may shift shaped by evolving dynamics and persistent low inventory levels.”

Over the past 12 months the market has tilted in favor of buyers. Seller concessions have played a key role in incentivizing buyers; while new listings have decreased year over year, and sales have slightly slowed. However, with the convergence of interest rates drops and the persistent, continued low inventory levels, and 2023 being recorded as the slowest year for US home sales in nearly 30 years, the market is reshaping real estate once again. This time, it will likely again place buyers on the back foot, making 2024 another busy year ahead.

*Updated January 19, 2024 

Colorado Real Estate News

How Tech Will Influence the Housing Market in 2024

Technology continues to play a pivotal role, shaping the way homes are bought, sold, and valued. As we gear up in 2024, the housing market is experiencing a big wave of technological advancements that promise to streamline processes, enhance user experiences, and ultimately redefine the industry as we know it. From the integration of artificial intelligence (AI) to the emergence of specialized real estate apps to blockchain to VR and AR, the future of real estate is increasingly digital and we’ll happily predict: more efficient.

Artificial Intelligence’s Impact on Real Estate

One of the most significant trends influencing the housing market is without a doubt the integration of AI. AI is not just a buzzword, though the amount of times we are hearing it on a daily basis sometimes feels like overkill; however it’s a powerful tool that is reshaping how we approach real estate transactions. AI algorithms are becoming increasingly adept at analyzing vast amounts of data to provide valuable insights into property values, market trends, and even buyer preferences.

AI is revolutionizing property valuation and we suspect it will continue to do so. Traditional methods relied mostly on comparable sales and market trends, but AI algorithms can process a myriad of factors, including neighborhood dynamics, school ratings, and even future development plans, to provide a more accurate and comprehensive valuation. This not only benefits sellers looking to set competitive prices but also will also continue to support buyers in making informed decisions based on a property’s true worth.

We also predict that in 2024 AI will continue to keep playing a big role in personalizing the home-buying experience. Through the analysis of user behavior and preferences, AI can recommend properties that align with a buyer’s specific needs and lifestyle. This not only saves time but also enhances the overall satisfaction of the home-buying process.

Kentwood’s Tech Leap: The Kentwood App

Speaking of tech trends, we’d be remiss to not mention our Kentwood mobile app, which seeks to revolutionize the way buyers and sellers engage with the real estate market. As we continue to modernize the technology we offer to our clients, the Kentwood app serves as a personalized concierge, placing the MLS IDX feed directly in buyer and seller’s hands for an easier real estate experience. Potential homebuyers and sellers in Colorado can view the entire Multiple Listing Service (MLS) IDX listings effortlessly, uncover the true value of their home, and empower themselves with advanced tools like precise home valuation and mortgage calculator. Receive timely notifications, stay updated on your searches, and connect with premier local agents for personalized home tours throughout Colorado.

Additionally, the Kentwood app leverages AI to enhance the overall user experience. Through intelligent algorithms, the app can learn from user interactions, providing tailored recommendations and insights. This personalized approach ensures that users receive information that is relevant to their specific preferences and requirements.

The Future of Real Estate

Looking ahead, the impact of technology on the housing market will continue to evolve. Virtual reality (VR) and augmented reality (AR) are poised to become more integral tools in the real estate industry, offering immersive property tours and enhanced visualization of spaces. Blockchain technology will begin to play a role in future transactions, providing a secure and transparent framework for property sales. We’re watching how it will unfold throughout the years ahead. Smart contracts, powered by blockchain, have the potential to streamline property transactions, reducing the need for intermediaries. 

Overall, the real estate industry is on the brink of a new era. The integration of AI, as we know, marks a significant shift toward a more efficient, transparent, and user-centric housing market. The days of relying solely on traditional methods are fading, making way for a future where technology is not just a supplement but a cornerstone of the real estate experience. Whether you’re buying, selling, or simply exploring the market, the tech-driven year of 2024 promises a more accessible, informed, and enjoyable real estate journey.

At Kentwood Real Estate, we’re here to help you find the perfect space to call your home. Feel free to reach out to us for more information online at www.Kentwood.com.

*Updated as of January 9, 2024