Colorado Real Estate News

Northern Colorado Real Estate Market Trends

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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

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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

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

Housing for All is Not Aspirational, It’s Fair

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

Fair housing as a concept began when legislators and practitioners acknowledged that housing policy had not previously been equitable. April is national fair housing month, however, it takes every month of the year and every day of the month to right past wrongs and create housing equity.

The American Dream

Having a place to call home that we own remains a cornerstone of the American dream. Home signifies safety and stability for many people and impacts where families send their children to school, where people work and how they get to work, and where they access community services. Homeownership boosts household wealth through equity and appreciation, and over time, provides many other social and economic benefits. It strengthens neighborhoods.

The Reality and Challenge

Unfortunately, not all people have enjoyed equal access to homeownership. Bias and prejudice throughout our country’s history have resulted in people experiencing both subtle and direct housing discrimination due to their race, national origin, the color of skin, religion, veteran status, sexual orientation, disability, or family status. Discrimination in housing is wrong; it is also illegal. 

Fair Housing is Everyone’s Job

As respected leaders in our community, it is our responsibility and commitment to ensure that every person who desires to rent or purchase housing is able to do so without bias or discrimination. All of our licensed REALTORS® at Kentwood Real Estate receive formal training on the topic. Fair Housing is part of the National Association of REALTORS® code of ethics. In addition, our lending associates at Prosperity Home Mortgage have an equal commitment to Fair Lending. Each of us must be 100% committed to Fair Housing and Fair Lending. 

Honoring Fair Housing month is a reminder that we’ve come a long way, yet we have miles to go to achieve equity.

Colorado Real Estate News

What to do With 40 Years – Build a Brand

Written by Kentwood Real Estate President and CEO, Gretchen Rosenberg

I have exciting news! Kentwood Real Estate is 40 this week!

Henry Ford said, “Coming together is the beginning. Keeping together is progress. Working together is success.” We’ve completed 40 successful years of changing lives.

In 1981 five brokers formed the beginnings of our brand, The Kentwood Company, which was renamed Kentwood Real Estate in 2008.

The incorporation papers were signed by Roger Campbell this week in 1981. Roger told me, “We wanted a name that was easy to say, easy to spell, memorable, and upscale so we settled on Kentwood.”

Colorado Real Estate History

Other notable names in Colorado real estate who contributed to our success as founders, owners, and leaders are Jim Nussbaum, John Fitzpatrick, Jerry Weigand, Bill Moore and Peter Niederman, Julie Hummel, Dee Chirafisi, Jim Theye, and Chris Vuletich. 

Our original office remains the DTC flagship. In 1998 we added Cherry Creek, in 1999, City Properties, and in 2018 we expanded to Northern Colorado. We added Denver Rental in 2011. Kentwood Commercial and Prosperity Home Mortgage were both launched in 2017.

Our previous owners sold the company to HomeServices of America in 2016, beginning the adventure of our Berkshire Hathaway affiliation.

To our brokers, our staff, and the management team – thank you for your ideas, collaboration, and professionalism. YOU make this company admired, productive and competitive.

To our clients, we say thank you for 40 years of working with the best brokers in the business, for your business, and your support. A focus on clients fostered our success over these 40 years. That laser focus on client experience and market knowledge keeps traditional brokerage relevant into the 21st Century.

Our brokers, loan officers, and support staff make our company special. An organization, no matter how well designed, is only as good as the people who live and work in it. We celebrate all who have contributed to 40 years at the pinnacle of real estate.

We have so much to be proud of at Kentwood Real Estate, Kentwood Commercial, Denver Rental, and Prosperity Home Mortgage, and much more to look forward to. 

At Kentwood Real Estate 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.

Cheers to 40 years!

Colorado Real Estate News

Real Estate Market Trends

February 2021 Depicts an Icy-Hot Spring Market With Buyer Demand on Fire.

The Greater Denver Metro housing market proved that the underlying theme of this market is speed: the speed at which buyers are purchasing relative to the number of sellers listing, and the speed at which active properties are going under contract while prices are accelerating. 

The Gap for Detached Properties Over Attached Properties Shrank in February. 

While many metrics still show that detached properties are in higher demand than attached, that gap decreased in February. There were 3,641 closed properties, up 3.70 percent from last year at this time, and in part because attached properties were on the rise. Attached properties saw a 16.29 percent increase in closings relative to last year at this time. The increased demand for attached properties propelled the market to an average close price of $401,552. Meanwhile, detached properties saw a 1.80 percent decrease in closed properties relative to last year.

Competition Remains Incredibly High. 

The report confirms that with median days in the MLS at five, close-price-to-list-price ratio at 101.90 percent and months of inventory at 0.55, competition remains exhaustive. With properties frequently going over asking price, full appraisal gap waiver appreciation continues to rise. Savviness, creativity, knowledge and guts are all components that will help buyers move towards a path of homeownership in this market.  

The Luxury Market Shows Interesting Trends. 

Last month, DMAR reported that the luxury detached market alone closed on 206 homes, a 10.75 percent increase in this category from last month and a 46.10 percent improvement from last year. More buyers are ready to purchase property over $1 million than the market saw in 2020 and single-family home sellers are enjoying a more crowded and hotter marketplace. While less competitive than other market segments, it remains high with February’s close-price-to-list-price ratio at 97.63 percent.  

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

Colorado Real Estate News

Top 3 Reasons We’re Watching Inflation

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

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

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

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

3 Metrics to Watch

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

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

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

Good News for Real Estate

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

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

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

Colorado Real Estate News

Three Ways to Protect Yourself When Buying New Construction

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

When you’re looking to purchase a brand-new home, it’s wise to hire a real estate broker as your trusted advisor. Homebuilders are in the business of building and selling properties and maximizing profit. As any business would be. They’re not fiduciaries to buyers and will not give you the clear-eyed advice you need as you move through the process.

When I was actively selling real estate, I was fortunate to represent many homebuyers when they purchased new construction. It was a privilege to help them wend their way through the complex process. I learned the ins and outs of a typical builder’s contract language and the important questions to ask.

Three Important Questions

  1. Where is the Earnest Money Held? Did you know that builders like to hold your earnest money in their operating accounts? Wouldn’t it be better to request they hold your earnest money at a title company in a trust account? 
  2. When Can we Schedule an Inspection? Did you know that most builders will permit you to have a home inspection? You should absolutely do a full-blown inspection. One time, we discovered the sewer line from the house hadn’t been connected to the city main. Another time, the builder had forgotten to spray insulation into the attic. And another time we found that a roof truss had been dropped through the living room sub-floor and punched a hole through it! We were standing in the basement looking up at a hole in the wooden floor and saw they’d covered it with carpet and pad.
  3. Can I use a Broker? A real estate professional is your expert and your advocate. They will work on your behalf throughout the process of building or buying new construction. Brokers help you understand the contracts, the key steps, manage negotiations (you may not get much off the price in these heady days, but you might get a few freebies.) Do not walk through the door or sign in without bringing your broker in the first time. Commercial projects require pre-set appointments so this would be more difficult than residential where the showrooms beckon.

Bottom Line for New Construction

Don’t go it alone when choosing new construction. Builders factor in the cost of commission and they don’t back it out if you’re unrepresented. They pocket the difference. So use that money to your benefit.

At Kentwood Real Estate we have both residential and commercial brokers who understand first-generation space. Contact us for all of your Denver and Fort Collins, Colorado real estate needs!

Colorado Real Estate News

Snowshoe Trails in Colorado

Are you anxiously awaiting adventure this winter, tired of watching the snow fall outside your window? If skiing isn’t your thing, why not try snowshoeing? For those looking for fun in the sun and snow, here are some snowshoeing trails so you can get up and go.      

Mills Lake, located in Rocky Mountain National park, is a scenic five-mile hike around a gorgeous frozen lake against a backdrop of snow-sprinkled Pagoda peak and Longs peak. While Rocky Mountain National Park is not exactly an isolated locale, this trail is known for being a little less crowded due to its length. For those feeling particularly motivated, Mills Lake is the perfect mountain trail to test your skills. 

Also located in Rocky Mountain National Park, Sprague Lake is the perfect destination for those donning their snowshoes for the first time. This hike around an idyllic lake is both short and flat, ideal for those looking for a quick adventure before cozying up with some hot chocolate. If you’re seeking a brief snowshoeing experience, look no further than this spectacular Sprague Lake hike. 

Brainard Lake in The Brainard Lake Recreation Area is the best place for those feeling indecisive about how long they want their winter wonderland experience to last. The trail circles beautiful Brainard Lake and connects to other charming trails such as Lake Isabelle in case you’re feeling more ambitious than you originally thought. While the Brainard Lake Recreation Area is bustling in the summer, the crowds dim during the winter months, offering you a serene snowshoeing experience.    

Located in Golden Colorado, you can find Clear Creek Trail in Lions Park. This trail requires a bit of snowfall before you can use it for snowshoeing, but the wait is more than worth it. Clear Creek Trail offers a chance for an exciting urban experience where you can enjoy the small-town charm of Golden painted against a picturesque Front Range background. So, when you’re done spending time in the snow, you can slide right into a fun night of snacking and shopping.  

Quandary Peak is the place to be if you’re looking for a challenging fourteener hike near Breckenridge, Colorado. This seven-mile trek is not for the faint of heart (make sure to read the guidance and warnings before you head out!), but the view from the top makes the climb worth the effort. If you are looking to annihilate a fourteener this winter while snowshoeing, Quandary Peak Trail is the best quest for you.    

Zimmerman Lake in Cameron Pass is an ideal location for snowshoeing all winter long due to the Pass’ excellent ability to retain snowfall. The lake is just one mile away from the parking lot and allows you to admire the Never Summer Mountains. This hike connects to other relatively flat trails if you want to explore more of this perpetually snowy pass.

You don’t have to stay inside and wait for sunny weather to chase adventure. Winter in Colorado means lots of chances to make spectacular memories in the snow. This winter, try strapping on a new pair of snowshoes, follow your feet and find a whole new climb to conquer.