July 2022 showed a summer market that is receiving a “cool off,” but with current conditions, it’s still not enough to push Denver Metro’s current seller’s market to a buyer’s market. Data confirmed that the Denver Metro area is no longer in a shifting market. Instead, it has shifted, and the real estate market is more balanced. Month-over-month, the market is down 3.33 percent but compared to last year, it is still up 11.04 percent, indicating that a more balanced market, combined with slightly decreasing interest rates, has helped create opportunity for those who previously felt burned out on the process.
One major primary indicator of a shifted market is the close-price-to-list-price ratio, which was down to 100.81 percent. Buyers have become more specific about what they are looking for and frequently question if, and how much, below the asking price they can offer. Gone are the days when a seller can simply put a sign in the yard and expect their home to sell.
Month-end active listings increased 21.53 percent in July.
Pending and closed deals decreased and days in the MLS increased by exactly 30 percent. However, the market is still far from what many experts would consider a buyer’s market.
With mortgage rates that briefly went over six percent, the Luxury Market also felt the seasonal cooling in July. New listings were down 22.13 percent, pending sales were down 18.16 percent, and closed homes were down 30.80 percent since June. There were 718 new luxury listings in July and 492 closings.
At the end of the month, there were 1,190 active homes for sale in the Denver Metro area over $1 million signifying that luxury inventory is up. Compared to last year, inventory has increased 39.05 percent, with most of that in detached homes. Notably, the months of inventory increased in July to 2.37 months for detached luxury homes and 3.31 months for attached.
The Northern Colorado market continues to respond to economic factors in July. The data confirms that the Denver Metro area is no longer in a shifting market; it has indeed shifted. Compared to last July, inventory has gone up which is why we are seeing more price reductions.
Fort Collins detached homes sale volume decreased by nearly 30 percent in July. In comparison to 2021, that is a 28.41 percent decrease from $158,120,824 to $113,202,431 in July 2022. 168 detached homes were sold in July 2022 compared to 265 in 2021, a 36.60 decrease. Attached home sales were also significantly down from the previous year, from 90 in July 2021 to 55 this year, a 38.89 percent decrease overall with the sales volume decreasing 32.33 percent from $32,975,902 in 2021 to $22,314,726.
Berthoud experienced a significant increase in their detached homes price average. At $739,843 in July 2022, versus $712,956 in June 2022, this was a 28.91 percent increase from July 2021 when it was $573,926. Attached homes, meanwhile, also experienced an increase in total sales volume from $1,792,000 in 2021 to $2,707,300 this month.
Meanwhile, Timnath saw another substantial decrease year-over-year in detached homes sold. Following a month-to-month trend, Timnath’s detached market went from 32 homes sold in July 2021 to 14 homes in July 2022, a 56.25 percent decrease. In its attached market, however, Timnath experienced an increase at 5 versus 2 in July 2022, a 150.00 percent increase.
Boulder saw a substantial decrease in sales volume year-over-year, showing the changing market. In the detached market, the total July sales volume went from $210,492,952 in July 2021 to $113,881,584 in July 2022, a decrease of 45.90 percent. The condo and townhome attached market saw a decrease in sales of 33.71 percent from 89 in July 2021 to 59 this month.
Loveland saw an increase in detached average home sales. In Loveland’s detached market, residents saw 124 sales in July 2022 versus 193 in June 2021, a 35.75 percent increase, with the average sales price for a detached home climbing from $533,186 to $659,536.
Listing your home is a monumental moment in your family’s life and should be navigated with great care to avoid unnecessary stress and last-minute delays within the listing and selling process. Here, we outline 9 important steps and considerations for your family to make before listing your home.
Home repairs From stained ceilings to broken windows or even cracks in your floorboards, it’s time to fix these nagging issues and get ahead of the game. Not only will repairing these damages increase the value of your home, but it will also ensure no delays in the potential sale following the necessary visit from a home inspector.
Declutter, declutter … and declutter some more It is imperative that your home looks livable to potential buyers. Decluttering can be difficult since there are so many core memories tucked away in those books, toys, photographs, decor and documents but remember getting started is the hardest part. If you are unable to throw away or shred some items, it may work for your family to get storage tubs to at least get clutter out of the way.
Clean! Although this may sound obvious, roll up your sleeves and get to cleaning. By cleaning, we don’t mean your average sweeping or dusting; we are talking about those little-used closets and other nooks and crannies that are usually overlooked. We recommend starting from the top down from ceiling light fixtures to floor vents and leaving no corner untouched. Oh, and don’t forget how much of a difference clean windows can make to the appearance of your home!
Simple and neutral decor During your decluttering and cleaning phases, try to ponder what, if any, flashy or attention-drawing decor you can remove from your home. Although this decor may sit close to your heart, it is best to leave your home as simple and neutral as possible to allow the buyer to imagine their own potential dream home.
Curb appeal Without fail, the outside of your home makes the initial impression. For someone to be interested in the interior of your home, they must first be impressed with the exterior. With the addition of a neatly-kept yard and a pleasing garden, you will be sure to woo many prospective buyers.
Upgrades Another consideration to make is upgrades throughout your home. Whether it be fencing, hardware, tech, lighting, appliances or even paint, sometimes seemingly unimportant upgrades can significantly increase the value of the potential sale.
Bathrooms For some people, the bathroom can be a make-it or break-it aspect of the home. Putting extra care and cleanliness into the bathrooms can not only elevate the value of the sale but also become a selling point when touring potential buyers.
Refine top selling points Refining and understanding the selling points or value proposition of your home, whether it be the location, the property or the house itself, and making that value abundantly clear through the listing process will help ensure a successful sale from both parties’ perspectives.
Market considerations Last but certainly not least, it is crucial to take in external considerations such as your local real estate market. This will allow you to gauge how long it may take to sell and choose a price point for your home that gets you the best possible return on your investment.
The media loves hyperbole. I can relate, real estate agents do too. Some of the same instinct toward flowery language when selling a home rests with headline writers and journalists.
This week I’ve seen dozens of headlines about the housing market “meltdown,” “crash” and “implosion.” Nowhere to be seen is sensible language describing what’s really happening. A recalibration, normalization, cooling trend. The U.S. housing market during the back half of 2020 and into 2021 was unsustainable. Anyone who suggests that was normal, good, or a permanent future for the market wasn’t paying attention to the difficulties all players had navigating the heady days of the early 20’s.
Normal is the New Normal With inventory rising, buyers can finally, sensibly, request an inspection and an appraisal. Sellers who overprice their homes are faced with adjusting to the market and calculating whether their house will appraise so their buyer can obtain financing.
Buyers can take a breather and make sure they’re making the right decision for their lifestyle, their family and their work situation. They can be reassured that they’ll have more than 10 minutes inside the property and can actually spend additional time with an inspector making sure any evident issues are ones they want to take on or ask the seller to repair.
Buyers have more homes to view! Lines of buyers and their brokers out the front door and down the sidewalk are gone. Thankfully.
Higher Rates = Fewer Wars As in fewer bidding wars. Many buyers are telling our Kentwood brokers that while they wish rates were like January 2022, they’re happy not to bid $50,000 – $100,000 over list on their 5th offer to get into a home. They can lock a rate and know what they’ll pay; appraisal gaps are becoming so yesterday. Any cash that would have covered a low appraisal can go toward home upgrades, furnishings or repairs.
Do you remember what the interest rates were in 2018? The average that year was 4.54%, but they got up to 5%. Not altogether that far off the rates today as I write this. Again, 2020 and 2021 were not usual or customary, they were a reaction to a once in a lifetime black swan event.
Deceleration Does Not Equal Depreciation Over the last month Metro Denver and the Front Range of Colorado have increased available inventory from 2 weeks of inventory to one month. We’re still selling through nearly every home that comes on the market in one month or less! I know to home sellers this feels interminable. Yet, it’s not enough inventory to signify a buyers’ market. We need three more months available inventory on top of the one month today to be a balanced market. I sold real estate in a buyers’ market, it’s not the end of the world. It’s just a different set of facts driving life decisions.
Home price appreciation will decelerate. To the homeowners out there, it’s not likely you’ll witness 16-18% annual appreciation again soon. It was a nice wave to ride. You will continue to benefit from lesser appreciation. Likely 6-8% this year and next.
To the buyers waiting on the sidelines for real prices to come down, it will be a wait. Possibly a long wait. Current price reductions of listed properties are those folks adjusting to the reality of the market recalibration, people who didn’t get their pricing right out of the gate. Not depreciation of market value.
Selma Hepp, Deputy Chief Economist at CoreLogic, explains that the housing market will see deceleration, but not depreciation, in prices:
“The current home price growth rate is unsustainable, and higher mortgage rates coupled with more inventory will lead to slower home price growth but unlikely declines in home prices.”
Home Builders are Pulling Back Home builders are in the projection business and if they don’t project their inventory will sell, they’ll pull back from building more until it does. They’re in the supply and demand business. As interest rates went up, buyers in long term contracts to build a new home naturally got nervous about where their rate might be in 6 – 8 months and many pulled out. The cascade effect means builders are focused on selling their current inventory before building more. They’re offering incentives and reducing prices. The reduction in new home construction, even if short-term, will mean resale inventory is still a sought after commodity.
Final Thoughts Whether you’re looking to buy or sell a home, reading past the headlines and hyperbole is key. Having an experienced Kentwood Real Estate Broker who knows what’s happening in the housing market can help you make an informed decision. Other team members who will be valuable as you go through the process: Prosperity Home Mortgage and HomeServices Insurance. Our partners who we trust to help you dissect the news and apply it to your life decisions.
At Kentwood we believe in community. That we accomplish more together. That deep roots matter. We inspire people to imagine the next steps in their life journey.
Many luxury consumers have purchased their dream home in the past 24 months and have also purchased second and third homes. They may be content to enjoy those homes for now, and step aside from trading real estate while they see how the economic transition shakes out. Luxury sellers will need to carefully present their homes as beautiful spaces and price them more aggressively than they would have in 2021. Time on market will increase. The luxury market waxes and wanes like any market, but not always in tangent with mid- and entry-level home markets. Luxury will always have a place, and luxury consumers love beautiful statement homes.
At Kentwood over the past two years we’ve seen an average of 20-25% of our sales be cash, month in and month out. These are buyers who have big jobs and saved, inherited wealth or traded equities for a real estate investment. We don’t anticipate this to dramatically change for two reasons: if price increases flatten or decline, buyers will want to “buy the dip” knowing that long term, real estate will remain a good investment; and as the equities markets correct, more people are cashing out and will want a place to invest that cash.
Luxury consumers’ demands have increased since the pandemic. They expect the highest service and immediate attention. Service providers in the luxury space who anticipate customers’ needs and address them proactively will create long-term relationships and loyalty.
Luxury is a large amount of sales volume, but it’s a smaller percentage of annual sales. While we anticipate the real estate markets to cease being such an insane buyer’s market, we don’t anticipate a pendulum swing over the next few months to be an extreme buyers’ market. We anticipate a shift to more balance, more time on market (one weekend was uncomfortably fast for buyers to make a decision) and more negotiating from both sides.
From Dierk Herbermann:
While there may be a shift in the luxury market in most other major metros, we are not seeing that impact in the Denver Metro region yet. Through May we have closed 33% more luxury listings (over $1 million) with an increase of price per square foot of 8.7% and sales prices at an average of 5.2% over the list price.
While it is too early to tell what true impact the increased mortgage rates will have on the luxury market looking at the first half of June where 104 new listings over $1.8 million have hit the market, over half of those listings are already under contract (66). We are starting to see some price reductions, but of the 75 luxury listings (over $1.8 million) that have closed since June 1, only 10 of those were at a price below the list price.
Colorado, and the Denver Metro market in particular, continue to experience an influx of companies from California, New York, and Europe looking for our educated and talented workforce, relatively affordability and lifestyle. As was the case during the 2007-8 recession, this will help to insulate the Denver Metro Area from the downward housing pressures that were experienced in most of the U.S. While there will be some decrease in demand and potential price corrections in certain areas, we feel that Colorado will continue to be a strong luxury market.
June 2022 demonstrated how sellers and buyers continue to adjust to the economic factors at hand. As month-end active inventory continues to increase, the Denver Metro hit a new record for the average price of attached properties at $504,193 and $810,415 in detached properties. At the end of June 2021, Denver Metro ended with 3,122 properties, 2,137 detached homes and 985 attached on the market. DMAR reported it has now almost doubled that amount over the year, with a total of 6,057 properties, 4,684 detached homes and 1,373 attached, currently sitting on the market.
Buyers are feeling the woes of the economy. Many first-time homebuyers who were initially pre-approved towards the beginning of the year with a specific interest rate decided to wait to buy until it wasn’t as competitive. But, when they restarted their search in May, they found that it was with an increased interest rate.
A summertime increase in inventory is part of the normal seasonality of the real estate market. However, with the 65.85 percent increase in inventory compared to the previous month, Denver Metro should expect more balance as prices appear to be stabilizing. This was reflected in months-of-inventory, which is now at 1.19, the first time it has been above one in months since June 2020, but well below the 4-6 months-of-inventory of a truly balanced market.
The Luxury Market homes also saw an adjustment as the Denver Metro hit the midway 2022 point. While all other pricing segments saw double-digit increases in new listings, there were more new listings in June for the Luxury Market but only a 6.82 percent increase. The impact on the shifting market can be seen most clearly by looking at the pending sales numbers. The number of pending sales of detached homes dropped 21.87 percent month-over-month.
Attached home pending sales were down 42.86 percent from May but closed sales increased 11.11 percent month over month. While some prices are adjusting, the overall demand is still historically low, resulting in a more gradual change. The amount buyers paid over the listing price for detached homes also dropped from 107.11 percent in May to 103.85 percent in June and from 104.39 percent in May to 102.65 percent for the attached Luxury Market. Altogether, the amount buyers paid over the listing price dropped from 106.85 percent in May to 103.71 percent in June. That means, on average, they still paid above the list price and more per square foot. The attached home has the highest above asking price of all of the market segments.
Denver, Colorado offers a wide variety of eateries when it comes to brunch that will fuel your day, whether you are searching for a quick bite to eat or a relaxing sit-down with friends and family. We’ve gathered up the best of the best in this blog that will be sure to please even the most discerning of brunch connoisseurs.
Snooze, an A.M. Eatery Right on Larimer Street in downtown Denver sits Snooze, an AM Eatery, rated 4.7 stars and also opens at 6:30 am for the early risers. Snooze provides nice indoor seating as well as a lovely patio where you can enjoy your meal in the fresh air. This is a Denver favorite. The staff ensures a quality dining experience, a tasty menu to choose from, a bar and even provides a game of corn hole outside the restaurant to entertain those on the waitlist.
The Delectable Egg If you are looking for friendly service, The Delectable Egg is the place for you. This restaurant has numerous reviews rave about the staff (we also have first-hand experience!) as well as their coffee carafe keeping their guests fully stocked. Those who are last-minute tend to be squeezed in and the atmosphere is perfect for family and friends.
HashTAG Another egg-serving restaurant plus hash browns and pancakes, along with a cappuccino, lays HashTAG on 29th. The restaurant provides both dine-in and takeout and also offers outdoor seating. A visit to the website and signing up on the online waitlist allows guests who think ahead a quick table!
Olive & Finch A restaurant that caters to your dietary needs and is a must-visit is Olive & Finch. Providing gluten-free, dairy-free and vegan options, Olive & Finch ensures all guests are happy with their meal. They also have an impressive bakery with an array of sweet and savory treats that pair perfectly with a latte.
Sunny’s If you are looking for something from scratch, homemade chorizo, you’re sure to find yourself at Sunny’s. Many locals are repeat customers and with flavorful options and attentive staff, Sunny’s is at the top of the list.
Stowaway Kitchen Those who crave a lighter, healthier brunch should pay a visit to Stowaway Kitchen. Meals that include spinach, eggplant, and fresh avocado are a highlight and their “me-mosas” are raved about as well. The extensive coffee menu puts Stowaway aside from others and the diversity of the food served is top-tier.
The brunch spots of Denver are sure to provide the best for their guests including service, dining experience, food and atmosphere. The only complaint about being busy only confirms that brunch is a must when visiting the city. With most places just minutes from the next, there are always open doors and plenty of options for everyone.
The Northern Colorado market continues to react to economic factors in June. Fort Collins saw the most inventory on the market since September 2020, suggesting buyer demand has decreased a bit in the current climate.
Fort Collins detached homes sold for a record-high median price of $720,960. In comparison to 2021, that is a 24.30 percent increase, up from $580,015. Fort Collins detached homes on average sell after 32 days, which is not much from this time last year when it was 26 days on the market but is a lagging indicator that suggests days on the market will grow. 226 detached homes sold in June, down from 266 last year, however, the sales volume was up 5.61 percent. Attached homes in Fort Collins saw a similar story, with 81 condo and townhome sales in June versus 123 in June 2021, down 34.15 percent.
Berthoud saw a significant increase in their detached homes price average. At $712,956 in June 2022, this was a 24.59 percent increase from 2021 when it was $572,224. Likely impacting this number some is that 52 detached homes were sold in June 2022 versus 45 in June 2021.
Meanwhile, Timnath saw another substantial decrease year-over-year in detached homes sold. Timnath’s detached market went from 42 homes sold in June 2021 to 21 homes in June 2022, a 50 percent decrease. In its attached market, however, Timnath experienced a substantial increase at 11 versus 1 in June 2022, a 1000 percent increase. All together, Timnath had 32 total sales for the month.
Boulder saw a substantial decrease in sales volume year-over-year, signifying the changing market. In the detached market, the total June sales volume went from $218,473,943 in June 2021 to $161,868,300 in June 2022, a decrease of 25.91 percent. The condo and townhome attached market saw a decrease in sales of 23.16 percent from 95 in June 2021 to 73 this month.
Loveland saw a decrease as well in detached average home sales. In Loveland’s detached market, residents saw 160 sales in June 2022 versus 205 in June 2021 with the average sales price for a detached home climbing from $515,779 to $585,152.
Smart home automation allows you to add a personal touch to your home and provides homeowners with comfort, security, convenience and energy efficiency. In the rapidly advancing technological environment we live in, it is easy to feel overwhelmed by the multitude of products available. Here, we lay out home automation companies worth your attention in 2022.
To impress your guests Josh.ai is one system that has been turning heads in the marketplace. This home automation system allows you to speak naturally, giving intricate commands rather than the outdated, robot-like commands we give to our iPhones. Since privacy is a concern for most, Josh.ai has ensured that the system will not eavesdrop on your conversation unless prompted by the user. If you are one for innovation, luxury, uniqueness and personalization, this system may be perfect for you.
Safety and Security For homeowners primarily concerned with home security, Simplisafe is a great option. Simplisafe offers live professional alerts, live-video verification, and a sleek, difficult-to-notice design built to protect your home even if the wifi or power goes out. This system allows you to monitor each aspect of your home, whether it is the temperature or video cameras so if either you work at the office, are out of town, or just getting groceries, you are always able to have a second pair of eyes on your residence.
Energy Efficient For the “Thermostat Dads” or energy savers, the Nest Learning Thermostat is one of the newest and most innovative smart home thermostats. The elegantly-designed system intelligently automates your home’s heating and cooling schedule customized to your residence. This personalized system creates energy efficiency, saves money and allows you to never worry about constantly changing the temperature again.
Whether you are one for personalization, home security or energy efficiency a smart home automation system may be a budgetary consideration for 2022.
The Northern Colorado market shifted in June. If you’re thinking of buying or selling a house, there are interesting opportunities.
Fort Collins detached homes sold for a record-high median price of $705,341. In comparison to 2021, that is a 16.81 percent increase, up from $603,815. Fort Collins detached homes on average sell after 30 days, down slightly over the last couple months. 206 detached homes sold in May, down from 237 last year, however the sales volume was up 1.53 percent, emphasizing the increase in prices. Attached homes in Fort Collins saw a similar story, with 80 condo and townhome sales in May 2022 versus 98 in May 2021, down 18.37 percent. Sales volume has decreased in the attached market 25.91 percent year-over-year from $44,488,318 to $32,961,610.
Average days on market increased significantly year-over-year for detached and attached homes in Berthoud. Berthoud’s detached market experienced a 20.31 percent increase from 64 days in 2021 to 77 days in 2022, and its attached housing market saw a dramatic increase of 93 days in 2021 to 248.
Meanwhile, Timnath saw another decrease year-over-year in homes sold. Timnath’s detached market went from 32 homes sold in May 2021 to 15 homes in May 2022, a 53.13 percent decrease. In its attached market, Timnath also experienced a slight decrease in home sales at 7 versus 5 in May 2022, a 28.57 percent decrease. All together, Timnath had 20 total sales for the month.
Boulder saw a slight decrease in sales volume year-over-year s, signifying a changing market. In the detached market, the total May sales volume went from $174,801,836 in May 2021 to $171,474,892 in May 2022, a decrease of 1.90 percent. The condo and townhome market saw a more dramatic decrease of 23.23 percent in sales volume from $51,116,023 to $39,243,285.
Loveland saw a massive increase in detached average home sales. In Loveland’s detached market, residents saw 165 sales in May 2022 versus 151 in May 2021with the average sales price for a detached home climbing from $545,860 to $619,888.