Colorado Real Estate News

Denver Market Trends

October 2021 Exhibits Consistency With Past Years

In a year of turbulence, October represented a month of ease in the bumpy Denver real estate market. Across the board, the majority of statistics were seasonally consistent with what Denver has seen in years past, boding well for more households.

In Month-End Active Inventory, Denver Saw When Lower Numbers Change, They Yield Higher Percentages

At the end of October, there were 3,376 properties on the market, a 14.98% decrease from the previous month. The amount of listings also decreased by 13.28%, showing minimal changes in the month-end inventory.

While Properties Are Still Closing Above Asking, Realities Caught Up With Expectations

At 101.82% of the list price, buyers can be grateful that the extreme bidding wars are less common, and those without 20% to put down have a fair shot at a house, and the continued low interest rates can keep monthly payments down.

In the Luxury Market, Sellers Also Had a Lot To Be Thankful for in October

With homes only taking 25 median days in MLS to sell and sellers receiving 101.77% of their list price, luxury sellers have great opportunities to sell quickly and for top dollar. New listings were down 19.51% from the prior month and down 5.94% from one year ago. As soon as a listing came on the market, it was under contract, with 421 homes moving to pending status, up 4.21% from last month. With fewer homes on the market, Denver saw a 17.01% decrease in our sales volume month-over-month and a 12.04% dip year-over-year.

October Ultimately Showed That Even Though the Homebuying And Selling Process Is Hard, There Is Still Hope

Realtors® have had to re-strategize as buyers have felt demoralized and sellers have had to move, but there have been more homes purchased year-to-date than years past, and seasonal effects have re-opened the door for those that had previously felt discouraged from the buying process.

Colorado Real Estate News

Top Reasons Why National Homeownership Month is Vital

Colorado Luxury Real Estate

June is National Homeownership Month in the U.S. which provides us a potent reminder that many people and families have built their wealth through homeownership.

Home is more than simply the house, more than the “sticks and bricks.” For many people, it’s now become their workplace, their children’s school, and a safe harbor against the pandemic. 65.6% of Americans own their homes, the highest rate in the past eight years. A recent Gallup survey ranked real estate as the best investment a person can make. In addition to the financial upside, there are also non-financial benefits. The financial benefits should not be overlooked though, as long as the homeowners can keep on top of their mortgage payments and upkeep.


Benefits of Owning 

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1. Civic Participation: Owning a home is owning a part of your neighborhood. Homeowners have a stronger connection to their neighborhoods and are more committed to volunteer work and other ways to be involved.

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2. Pride of Ownership: Owning a home means having a space that is uniquely yours. You can customize it to your liking and make it reflect your personality and values.

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3. A Safe Space: Owning a home gives you a sense of security and privacy – two things that have become even more valuable as we’ve tackled the challenges of the recent health crisis.

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4. Forced Savings: Owning a home builds equity. Your equity grows with each payment you make toward your mortgage. This form of forced savings can be used down the road to help you accomplish your most significant financial goals.

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5. Appreciation: Owning a home is making an investment that steadily gains value, and experts project home values will continue to rise in the years to come.

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6. Stability: Owning a home means having better control over your future housing payments. Over the years, a mortgage stays relatively steady, but rent costs continue to rise.

Kentwood Real Estate Can Help

Whether you’re moving up, down, from a rental into your first home, or looking to purchase an investment property, our team of professional real estate brokers from Denver to Fort Collins can help you. Search for your home at www.kentwood.com and look for your Prosperity Home Mortgage broker. We believe so strongly in homeownership that we’re in the business!

Colorado Real Estate News

Three Reasons to Sell Your Home TODAY!

wooden block house on snow

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

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

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

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

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

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

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

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

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

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

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

Colorado Real Estate News

Purchasing A Second Home In Colorado

photo showcasing a home at dusk surrounded by birch trees.

Be honest. How nice does a vacation sound right about now? You can’t deny that after all of these months cooped up in our homes, a change of scenery sounds irresistible. Let’s swap those one-time plane tickets and fancy dinners for the fresh Colorado air and a reason for adventure. Maybe you are looking to purchase a second home for pure enjoyment? Possibly for some additional income? A worthwhile investment? Or it could even be all three, but all in all, there are some undeniable short term and long-term benefits of purchasing a second home in Colorado. 

A second home provides the perfect reason to escape. Whether it’s for personal leisure or family bonding, the memories you create are invaluable, and you can’t put a price tag on memories. Not only will you bond with your loved ones, but a sense of community will also form as you explore your new neighborhood. Creating a sense of belonging as you discover new restaurants and meet the local grocery store owner is the perfect way to become a local. However, since this is a second home, you may not be a permanent local. But do not fret! With such high tourism rates in mountain towns like Telluride and Vail, wannabe locals will be knocking at your door for a little staycation of their own. 

As the real estate market continues to skyrocket, this is the perfect time to consider purchasing a second home in Colorado. Let’s look at Telluride, for example. There was $125 million in sales in August alone, which shattered their December 2019 one-month sales record of $96.9 million. In fact, Telluride is on track to beat the all-time annual sales record of $760 million, which was set in 2007. Not only are mortgage rates low, but purchasing an additional home, particularly in a mountain town, turns your disposable income into financial safety. The National Ski Areas Association reported a record-breaking 24 million visits in the 2018-19 year, further proving a desire for the mountains. While purchasing an additional home is an investment, it has its benefits. For instance, a second home is considered a personal residence. This means when tax day comes around, you can deduct both property taxes and mortgage interests from your taxes. I am not a qualified tax professional, but that sure sounds enticing.

Acquiring another home is a big commitment and a purchase that would benefit from a professional’s advice. Finding a Realtor® whom you trust is crucial in the success of your second home. Our brokers at Kentwood will provide you with the expertise and insights into the Colorado real estate market to assure you that you made a rewarding investment. Feel free to contact our Kentwood professionals today and take your first step in creating priceless memories.

Colorado Real Estate News

Why 4th Quarter is a Great Season for Real Estate

Written by Kentwood Real Estate President and CEO Gretchen Rosenberg

The seasons are changing and it’s time to finish raking leaves; time to make sure you enjoy the great Colorado Outdoors while it’s still semi-summer and time to consider making a move.

Before stepping into management, I spent 22 years in real estate sales. It never failed that September through November were among my best months every year.

Odds of Selling

As a homeowner considering putting your house on the market or up for lease, your “odds of selling” are among the highest at this moment. It’s not typical to see a jump in inventory during the final quarter of the year and home buyers are left to sift through what little inventory there is. Anything new on the market is usually hotly contested. By choosing to get your house on the market soon, you know the buyer pool is at the highest it’s been in years.

Buying Power

Mortgage rates remain historically, breathtakingly low. The current odds of selling your home in Metro Denver rests at 73.4%. The ratio of buyers to sellers is out of balance in the Colorado real estate market. Those are some great odds! The pool of buyers has maximum affordability at current prices because of low mortgage rates.

In the Northern Colorado market, affordability is greater, with more to choose from in mid-tier price ranges. With similar inventory issues in the communities surrounding Fort Collins, buyers are left struggling to win the day among competitive bids. Having an experienced real estate broker in your corner can help you wade through a complex and sometimes frustrating process.

Craving Space 

Buyers are craving space with another COVID winter in our future. Many people are hoping that a move to a larger property will afford them the ability to weather the storm, literally. If you are thinking of listing your home for sale, consider your location’s appeal and price carefully. The odds of selling are high, but buyers are looking for updated and move-in-ready in most cases.

It’s the season for selling! Contact any Kentwood Real Estate broker for more information on listing or buying residential or commercial property in Metro Denver, the foothills, up the I-25 corridor, and areas surrounding Fort Collins in Northern Colorado. We’re here to provide you the information you need to make an informed decision. Tis the season!

Colorado Real Estate News

Why Pricing Your House Right Is Essential

In today’s real estate market, setting the right price for your house is one of the most valuable things you can do.

According to the U.S. Economic Outlook by the National Association of Realtors (NAR), existing home prices nationwide are forecasted to increase 4.7% in 2020 and 4.1% in 2021. This means experts anticipate home values will continue climbing into next year. Today, low inventory is largely keeping prices from depreciating. Danielle Hale, Chief Economist at realtor.com, notes:

“Looking at the sheer number of buyers, low mortgage rates, and limited sellers, the strength of home prices–which are now growing at the highest pace since January 2018–makes sense.”

When it comes to pricing your home, the goal is to increase visibility and drive more buyers your way. Instead of trying to win the negotiation with one buyer, you should price your house so that demand is maximized and more buyers want to take a look.

How to Price Your Home

As a seller, you might be thinking about pricing your house on the high end while so many of today’s buyers are searching harder than ever just to find a home to purchase. You’re thinking, higher price, greater profit, right? But here’s the thing – a high price tag does not mean you’re going to cash in big on the sale. It’s actually more likely to deter buyers and have them looking at the houses your neighbors are selling instead.

Even today, when the advantage tips toward sellers because there are so few houses for sale, your house is more likely to sit on the market longer or require a price drop that can send buyers running in the other direction if it isn’t priced just right.

Our Trusted Real Estate Professionals Will Help

It’s important to make sure your house is priced correctly by working in partnership with a trusted real estate professional. When you price it competitively, you won’t be negotiating with one buyer over the price. Instead, you’ll have multiple buyers competing for the home, and that’s what ultimately increases the final sale price.

The key is making sure your house is priced to sell immediately. That way, it will be seen by the most buyers. More than one of them may be interested, and your house will be more likely to sell at a competitive price.

Bottom Line

If you’re thinking about listing your house this fall, connect with a Kentwood broker, to discuss how to price it right so you can maximize your exposure and your return. Find a broker at www.Kentwood.com

Colorado Real Estate News

Top 5 Reasons Why Real Estate Won’t “Fall Back” in 2020

Written by Kentwood Real Estate President and CEO Gretchen Rosenberg

2020 has been a year like no other. At Kentwood Real Estate, our hearts go out to the families impacted by COVID-19 due to the loss of a loved one, a personal illness, or the loss of employment or housing.

An unexpected outcome from this massive disruption is the roaring housing market. Who could have predicted in March, when we fell off a cliff and couldn’t show homes or safely put new listings on the market, that we’d be booming in September? Now that we’ve figured out how to safely work in this environment, we’re helping countless consumers find a home or sell their current one. We’ve also been helping landlords re-lease their properties and tenants find a place to rest their head. Kentwood Commercial closed the largest office lease since COVID-19 began at the end of August.

Why is all of this happening and how long will it last?

Here are 5 reasons I believe Fall 2020 will continue to be a robust market:

  1. Homeschooling. Families with school-age children are coping with working from home and learning from home. Some homeowners need to relocate closer to daycare or family so the parents can go to work while the children are still at home. Others want more space.
  2. Financing. Mortgage rates are insanely low and are projected to stay this way through at least the first quarter of 2021. Currently, a 30-year fixed rate is bouncing between the high 2%’s and low 3%’s.
  3. Pent up demand. We have a lot of buyers living in Colorado and coming to Colorado, and not enough inventory. Universally in every price point except the very high end, we’re selling around 50% of new listings in 7 days or less.
  4. First-time home-buyers. The millennials are of home buying age. Those that aren’t laden with student debt and have a bit of savings or help from family are launching into home-ownership. They understand what a boon to their futures home-ownership at 3% means.
  5. Spring delay. We got a late start this year. In Colorado, we like to say the spring home sales market starts in early January unless the Broncos are in the playoffs. Then it starts in early February and lasts through the end of May or mid-June. This year, our spring market was delayed until early May. We still have a large number of buyers hoping to find their next home by year-end. We’ll have a shorter gap between the selling season lull in 2020 and the spring market in 2021. We may not even see much of a lull at all this year.

What does this mean for you if you’re considering buying or selling a home? That you should proceed with the help of an experienced broker who can help you wade through the myriad complexities of the housing market, or the commercial real estate market, in this day and age. Buyers may be able to find more deals in the coming months, but there’s every likelihood that in many price ranges bidding wars will continue. Homeowners who are thinking of selling will need to carefully assess pricing, marketing plans, and whether to stage the property.

We’ll be “falling back” to standard time on November 1st, but these times are anything but standard.

Colorado Real Estate News

Real Estate Market Trends

Record-home Sales in July in Metro Denver

Homebuyers in metro Denver were not slowed by the pandemic in July as June’s record number of pending sales converted to an all-time high in the number of closings in any month on record.

Average Single-family Home Price Catapulted to Over $600,000

While record-home sales was predicted, no one could have predicted the significant jump in prices. Pent-up demand from the COVID-19 home-showing shutdown and the continued lack of choices forced homebuyers to bid against each other. Many sellers collected multiple offers at or above asking price. That competition catapulted the average single-family home price to $601,863, which is 7.7% higher than June and 10% percent higher than July 2019. The median closed price was also a record high for any month at $460,140.

One of the Strongest Months for Single-family Luxury Home Market

In the luxury housing market, there were two different perspectives depending on if you had single-family or condo homes.

The single-family Luxury Market, homes priced $1 million+, had one of its strongest months in almost every statistical category. Compared to last year, there was a 53% increase in new listings, pending transactions jumped 105% from 195 to 399, the amount of closed deals in July increased 61% and both the median and average days in MLS decreased from the previous year.

The lack of housing inventory puts the advantage in the sellers’ hands in all price ranges except for condos priced above $1 million. Even though the number of closed sales of luxury condos was up 50% month over month, it is still the softest segment of the market and homebuyers have the upper hand in negotiating.

While the luxury condo market had a relatively strong month compared to that of the previous year, it is clear that the demand for condos was not nearly as strong in July. People have spent more time in their homes than they are accustomed and there is a growing trend of wanting more space.

*Written August 7, 2020. Updates may be available after this date.

Colorado Real Estate News

Transformation and Resilience: U.S. Real Estate Markets Thriving Despite Pandemic

Click here to read the article by Bristol Global

Jason Exley, the Director of Relocation at Kentwood Real Estate, discusses the current state of the real estate market during the COVID-19 pandemic. Check out the article on Bristol Global to learn more about how real estate is thriving and the resilience of many major markets in the last several months.

Jason discusses how real estate continually adapted, and what the future of conducting business may look like in this new virtual landscape.

Colorado Real Estate News

5 Things to Know When Buying a House in 2018

Buying A House in 2018Buying a house in 2018 is a big commitment. Knowing when to dive into the real estate market can be intimidating, especially when there is low inventory, high prices, and it feels like the rules keep changing. Even if you have purchased a home before and think you know the process, what worked back then might not be what works now. To help prepare you for what may come, here are a few things to know before diving head first into the 2018 real estate market.

Learn How the Tax Code Will Effect You

The recent tax reforms have caused some concern that they will put home-ownership even further out of reach for many Americans, while also decreasing the tax benefits for owning a home. But that shouldn’t be reason to deter you from making your move. For example – starting this year, home-owners can deduct mortgage interest on loans up to $750,000, that’s down from $1 million. This change is expect to affect 1.3% – 2% of mortgages. The bottom line is to educate yourself on this new tax plan and how it will effect you.

Buying A House in 2018

Mortgage Rates Are on The Rise

For the past several years, homeowners have benefited from historically low interest rates – around 3% – 3.90%. But the Fed has recently begun to make some noticeable increases. Last year, the rate for a 30-year fixed mortgage broke 4%. With economic growth gaining momentum, we could see between two to four more rate hikes this year. Rates could end up closing out the year at 5%. First time home buyers should keep an eye on these trends and forecasts.

Buying A House in 2018

Debt Limits Have Increased

In mid-2017, Frannie Mae announced that they would now be purchasing loans with borrowers who have debt-to-income ratios up to 50%. That’s up from their previous limit of 45%. This is a good bit of information for first time home buyers to know because it could make mortgage loans easier to obtain, especially for those who have a higher level of debt.

Buying A House in 2018

Home Prices Are Rising More Slowly

Home prices have soared over the last few years, forcing other-wise qualified buyers out of high priced areas. But in 2018, price increases are expected to slow and become more moderate. Economists expect prices to rise by 3.5% – 5% nationwide this year. But it all depends on where you live. Some cities, where economic momentum has been steady, could see larger gains. While red-hot markets are predicted to finally lose a little steam.

Buying A House in 2018

Prepare for Competition

Housing inventory continues to be at a record low across the country, meaning that the days of multiple offers won’t be subsiding anytime soon. Because of this we have seen the all cash buyer willing to pay full price or more. According to the National Association of Realtors, 23% of all homes purchased in January of last year were cash buyers. And some experts believe that number will rise this year.

Since these types of buyers don’t need to secure financing, they not only have an edge on the competition but they’re also more appealing to the seller. That doesn’t mean all hope is lost. There are plenty of creative ways to appeal to a seller, such as writing a letter about yourself, your family, and your situation. Learn more about surviving a seller’s market.

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