Loading...

Follow The Denver 100 on Feedspot

Continue with Google
Continue with Facebook
or

Valid
The Denver 100 by The Denver 100 - 5d ago
All data taken from ReColorado, on July 12, 2019.  Denver, Colorado.

How Does 2019 Denver Real Estate Compare to Denver Real Estate in 2018?

Eight County Denver Metro Area Current Trends through June 2019

  • Average Price of a Single Family Home Year over Year in June 2019 recorded an increase of price of 2.5% at $480,050. Prices are leveling off as inventory rises and fewer buyers are entering the market.
  • Inventory for June 2019 for both Detached Housing and Attached Housing is at 9,344 compared to June of 2018 at 6,274 or an increase of 48.9% year over year. This means the pace of sale will start to slow down as buyer have more choices.
  • The number of homes attached and detached that were Under Contract in June of 2018 was 7,476 and in June 2019 decreased to 7,196. This represents a significant decrease in the number of properties placed under contract. This is the future pipeline of closings to occur. Since this is a trend that is decreasing, the market will continue to show a slowing number of closings and although we do not see prices dropping, we also do not see prices rising very much.
  • We are on a pace to sell approximately 54,500 homes and condo’s in Denver for 2019. With 7569 total homes and condo’s on the market that is a 1.68 month supply of homes for the 8 county metro area. A 6 month supply would suggest an equal number of buyers and sellers.
  • Days on the Market to Sell a Home increased 26.15 year over year. More choices, with fewer buyers will have properties take longer to sell.
  • How to Navigate a Changing Real Estate Market!

      Depending upon whether you are buying or selling, you need to know how your price range is reacting to the new market trends and what your odds are in specific periods of marketing or buying times.

      Here’s a Month Supply Chart and the Odds of Selling a Home. These facts can tell buyers how to make offers and tell sellers how to price their home. Remember improving your odds of competing for homes or selling your home is the most important aspect of navigating in a changing real estate market. Talk to your Denver 100 Real Estate Broker for strategies and ideas to best navigate today’s Denver real estate market.

    What Should Buyers Do in Today’s Market?

    • Know the trends of the neighborhood you are considering. Each neighborhood has its own unique characteristics. Know the Data before buying.
    • How Long will you live in your Next Home? This is an important question in a growing inventory marketplace. If you plan on living in the home 5 years, you want to make sure there is still an upside of value and tax savings for you. If you are considering a shorter term in your home, consider an adjustable rate fixed for 5 years. If you plan on staying longer consider a 15 years amortized loan.
    • We are approaching a market where you, as buyers, will be able to include some terms as part of your purchase. Terms far outweigh price in most cases.

    What Should Sellers Do in Today’s Market?

    • Be positioned as the best conditioned home. You will get top dollar this way.
    • • As you will have more competition, now is the time to really know where to price your home. The best way to continue to attract buyers is by choosing a price position below other sales from the last 90 days. This will cause you to be in a high demand situation vs. sitting on the market with a price that may be too high in the eyes of the buyers.
    • It’s July, make your exterior sparkle and trim the trees with our very wet spring season causing everything to grow beyond normal limits.

The post So How’s The Market?-July appeared first on The Denver 100.

  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 
The Denver 100 by The Denver 100 - 2w ago
Denver Fourth of July Events! Rockies Firework Games

WHEN: July 2nd and July 3rd
WHERE: Coors Field
A Coors Field is a must-see for anyone who , visits Denver. Located in the heart of LoDo, this magnificent landmark provides the ultimate event space for groups looking for a unique venue. Coors Field is proud to offer amazing venues that boast casual elegance, breathtaking views of the Rocky Mountains. Whether it’s a gathering of 50 to an opening gala of 10,000, our culinary staff will create the perfect customized menu that will make your event a , grand slam!

Independence Eve

WHEN: July 3, 2019 4:00PM-9:30PM
WHERE: Civic Center Park 
Colorado’s largest free community fireworks event returns for its
10th Anniversary in Denver’s Civic Center Park and the Civic Center Conservancy is celebrating by bringing you the most exciting Indy Eve yet!
There will be more music with live acts starting at 5 pm and more craft beer & wine bars along with a delicious variety of food trucks. Plus, we’re thrilled to welcome back local favorite and international sensation Chris Daniels & The Kings along with the Colorado Symphony to our patriotic stage! And just as it’s been for a decade, the evening’s explosive finale will include a light show and fireworks from the atop the Denver City and County Building!

Red, White and You Fireworks

WHEN: July 3rd, 2019 5:00PM-10:00PM
WHERE: Clement Park
Red White & You is the largest free community event in South Jefferson County. Geared toward all ages and designed to bring the community together, attendance is estimated at 35,000+ annually.

Park Hill 4th of July Parade

WHEN: July 4th, 2019 at 1:30PM
WHERE: Greater Park Hill Community
Welcome to the tenth annual Park Hill 4th of July Parade! This community-friendly event will again be marching along 23rd Avenue on Independence Day. Stretching from Dexter St. to Krameria St., this year’s parade will include more than 50 groups, including floats, marching bands, costumed characters, classic cars and more! The 2019 Park Hill 4th of July Parade starts at 1:30 p.m. on Thursday, July 4. The parade is held in northeast Denver’s historic Park Hill neighborhood, one of the city’s largest, oldest and most diverse areas.

Elitch Gardens Theme & Water Park

WHEN: July 4th, 2019
WHERE: Elitch Gardens
Located in the heart of Denver for over 125 years, Elitch Gardens is America’s only Downtown Theme and Water Park. The park is open April 28th through October 28th with something for everyone with 53 rides and attractions, including 14 pint-sized adventures, thrilling roller coasters, cool water slides, Dive-In Movies, free concerts, stunning fireworks extravaganzas, plus Fright Fest in October!

Englewood, CO Fireworks

WHEN: July 4th, 2019
WHERE: Cornerstone Park
The Annual Fourth of July Event brings together friends and families from four areas – Englewood, Littleton, Sheridan and the South Suburban Recreation District. Celebrate our National Holiday with friends and family at Cornerstone Park starting at 3PM. Enjoy kids activities, local business vendors and food trucks. Bring a picnic dinner and blankets to watch the fireworks! Park and activities will continue after the fireworks.

4th Fest

WHEN: July 4th, 2019 at 7:00PM
WHERE: Dick’s Sporting Good Park
The Colorado Rapids and Commerce City are excited to host the 24th annual 4thFest celebration on July 4th! Join us for a great soccer match, free community festival and Colorado’s largest public firework show!

The post Fourth of July Fireworks! appeared first on The Denver 100.

  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 
All data taken from ReColorado, on June 13, 2019.  Denver, Colorado.

Is Denver’s Real Estate Market Ready to Bust? Our Answer is: NOT YET!

Eight County Denver Metro Area Current Trends through May 2019

  • Average Price of both Single Family homes and Condominium homes Year over Year in May 2019 is $497,896 a 4.3% increase year over year. This price appreciation is slowing down.
  • Inventory for May 2019 increased by 39.3% year over year. The leading indicator of predicting the future market is the level of inventories currently for sale. Today the inventory is starting to rise as active listings for single family homes and condo’s is 7569 a large increase year over year, but historically still very low historically. When this number rises over 10,000 total homes for sale, we will see a slower, less aggressive market.
  • Days on the Market to Sell a Home increased by 29.2% from May of 2018.
  • We are on a pace to sell approximately 54,500 homes and condo’s in Denver for 2019. With 7569 total homes and condo’s on the market that is a 1.68 month supply of homes for the 8 county metro area. A 6 month supply would suggest an equal number of buyers and sellers.
  • With Steady employment, rising incomes and relatively low interest rates, we would see a very well-balanced market moving forward for 2019 and 2020.
  • N.A.R. United States Economic Outlook: NO RECESSION

    (as of May 2019)

      The National Association of Realtors provides monthly national data to be able to predict the future of the national real estate market. Here’s their data from May 2019 with 2020 predictions.

The post Is Denver’s Real Estate Market Ready to Bust? appeared first on The Denver 100.

  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 
April Events Around Town Animal Encounters

WHEN: Animal Interaction Ends June 2, 2019
WHERE: Downtown Aquarium
A Coors Field is a must-see for anyone who , visits Denver. Located in the heart of LoDo, this magnificent landmark provides the ultimate event space for groups looking for a unique venue. Coors Field is proud to offer amazing venues that boast casual elegance, breathtaking views of the Rocky Mountains. Whether it’s a gathering of 50 to an opening gala of 10,000, our culinary staff will create the perfect customized menu that will make your event a , grand slam!

Colorado Shakespeare Festival

WHEN: Starting June 7, 2019 through August 11, 2019
WHERE: University Of Colorado, Boulder 
For over 60 seasons, the Colorado Shakespeare Festival has delighted audiences with classic theatre under the stars. The Colorado Shakespeare Festival is a professional theatre company in association with the University of Colorado Boulder. Since 1958, the festival has celebrated and explored Shakespeare and his continuing influence and vitality through productions of superior artistic quality, education and community engagement.”

Union Station Farmers Market

WHEN: Every Saturday Through October 26, 2019
TIME: 9AM-2PM
WHERE: Union Station
Union Station Farmers Market,brings Denver locals to come support the growers. This year the Farmers Market Launched in May instead of June like the last two years. Now in its third season, the downtown Denver market has several vendors returning, displaying and selling produce along with other edible goods. Local farmers share what they’ve grown and local restaurateurs sell baked goods and warm to-go food items. While perusing each booth, market-goers may even get the chance to bump baskets with a chef or two — this is, after all, where many of Denver’s seasonal menus are inspired. The Union Station Farmers Market is open every Saturday from 9 a.m. to 2 p.m. through October 20. For a full list of farms and other vendors, check out the website.

The post June? What’re you bring to Denver? appeared first on The Denver 100.

  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 
The Denver 100 by The Denver 100 - 2M ago
All data taken from ReColorado, on May 15, 2019.  Denver, Colorado.

What Happened in April 2019?

  • May 2019 inventory of single family and condo rose 35.5% from a year ago. Total Active listings today is reporting 7,057 compared to 5,207 12 months ago.
  • Interest Rates will rise approximately 1% from current rates of 4.25% toward the end of the year causing housing inventory to increase.
  • Due to the shrinking of the buyer pool, the number of closed properties has decreased a modest .3% from April 2018. This is two consecutive years the number of sales has dropped year over year in April.
  • The average price of a home in Denver today is $487,996 compared to $481,109 one year ago. A 1.4% increase year over year.
  • The Days on the Market increase year over year as in April 0f 2019 is took 27 days to sell a home and one year ago was 20 days.
  • How Does 2019 Compare with 2018 through April?

    • The total number of sold properties in 2018 was 15,039 through April. In 2019 that number is 15,001 or a .3% decrease in Sales in 2019. Does this signify a buyer behavior pattern is starting to slow down their purchasing frenzy? Possibly, but watching this trend through the summer will most certainly give the prognosticators more data to predict the future.
    • Average Prices continue to rise per year, but at a significantly lower rate. Some neighborhoods have out-performed the average increase of 1.4% YOY by a significant amount, specifically in the lower or entry level price points. As of today, there are only 30 single family homes for sale in the entire Denver market place below $250,000. Buyers are getting priced out of the market, which will slow buyer behavior down.
    • Know the pricing of a neighborhood before getting into a bidding war
    • The number of properties placed under contract in April 2019 is 6.2% more than April 2018, as a reduction in interest rate this first 4 months of 2019 has given buyers a buying power that they did not have in the last half of 2018.
      • What We See Happening in 2019 Real Estate!

        • As buyer behavior buying patterns slow down, we will see inventory rise through the balance of 2019 and prices to level off. There is a sense in the market we are changing the market dynamics, but by all means, it remains favorable for sellers to sell their properties today and for buyers to be able to enter the market and still see normal appreciation levels of 3% per year for the next several years.

The post So How’s The Market? appeared first on The Denver 100.

  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 
The Denver 100 by The Denver 100 - 2M ago

First Quarter Real Estate Review

All data taken from ReColorado, on April 15, 2019.  Denver, Colorado.
  • The First Quarter of 2019 for Real Estate in Denver, CO experienced a more normal market with signs of the frenzy slowing down.
  • There are currently 5549 Active Single Family and Condominiums as of today. Twelve Months ago the market had 4,073 total active listings or a 36.2% increase in inventory.
  • For the 1st QTR of 2018 compared to 1st QTR 2019 the total number of listings taken is 2.9% less today suggesting we are seeing sellers not willing to enter the market. We believe the sellers hesitancy is because they have current lower interest rates on their current home and/or may find the buying process to difficult to navigate
  • At the end of 1st QTR 2018 the Average Price was $459,874 vs. the end of 1st QTR 2019 the Average Price is $469,160 at 2% increase in one year. Median price went from $405,000 to $410,000 or a 1.2% increase indicating there just are not many lower priced homes on the market today.
  • The Days on the Market in 1st QTR 2018 was 25. Today it’s 31 or a 24% increase in time on the market.

What Does Denver’s Future Hold For Real Estate?

  • Appreciation to continue at a slower rate moving through 2019.
  • Interest Rates will rise approximately 1% from current rates of 4.25% toward the end of the year causing housing inventory to increase.
  • The opportunity to move up to your dream home could not be at a better time than NOW!
  • What Should Buyers Do in Today’s Market?

    • Be Ready to Lock Your Interest Rate in During Your Contract to Closing Period.
    • Give incentives for sellers to accept your offer in the terms you offer.
    • Know the pricing of a neighborhood before getting into a bidding war

    What Should Sellers Do in Today’s Market?

    • Be positioned as the best conditioned home. You will get top dollar this way.
    • Appraisals are noticing the normalizing of prices and are not aggressive when the market slows. Have a strong strategy to get your home appraised before taking it off the market on the highest offer.
    • It’s April, make your home front sparkle from the street to attract the most traffic.

The post So, How’s The Market? appeared first on The Denver 100.

  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 
The Denver 100 by The Denver 100 - 2M ago
April Events Around Town The Colorado Rockies Baseball

WHEN: Open Daying April 5th, 2019
WHERE: Coors Field
A Coors Field is a must-see for anyone who , visits Denver. Located in the heart of LoDo, this magnificent landmark provides the ultimate event space for groups looking for a unique venue. Coors Field is proud to offer amazing venues that boast casual elegance, breathtaking views of the Rocky Mountains. Whether it’s a gathering of 50 to an opening gala of 10,000, our culinary staff will create the perfect customized menu that will make your event a , grand slam!

Maggie Rogers

WHEN: April 9, 2019
WHERE: Ogeden Theatre 
Maggie Rogers is banjo player from the Eastern Shore of Maryland, who is known for being in love with music. “The thing about songs is that no matter how far away I go, or how long I stay away, they always seem to keep coming. And as wild and unpredictable as they are, I’ve learned to trust them. I write to feel and sing ’til I feel a new way.”

Rodeo All- Stars Championship

WHEN: April 13, 2019 at 7:30PM
WHERE: National Western Complex
Rodeo All-Star Weekend  celebrates the sport and the athletes of rodeo with an All-Star festival feel. The weekend offers three All-Star rodeo performances, the popular Lunch with Champions, Mutton Bustin, mechanical bull and the all-star concert.

Dane Cook

WHEN: April 14th, 2019 at 7:00PM
WHERE: Bellco Theatre
Enjoy a good laugh with Dane Cook on his come back tour,  Tell it like it is. Dane is a “comedian phenom and icon” by Entertainment Weekly, Dane Cook has maintained his reputation as one of today’s most prolific stand-up comedians while simultaneously distinguishing himself as a charismatic and versatile actor in a variety of film and television projects.

The Tank

WHEN: April 30, 2019 at 3:30PM
WHERELone Tree Arts Center
“Shark Tank”inspired event for nonprofits to vie for funding for a unique program. Join us for The TANK – Local nonprofits will pitch their organization or a unique program idea in front of community business leaders, philanthropists and YOU! WHY “THE TANK”?There are many amazing nonprofits doing incredible work in our community, now is the time for our community members to support these local programs. Six local nonprofits will pitch their unique program to  ‘SHARKS’. This event brings the for-profit and not-for-profit sectors of the community together.

The post April 2019, Denver Events! appeared first on The Denver 100.

  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 

So How’s The Market, March 2019

All data taken from ReColorado, on March 18, 2019.  Denver, Colorado.
  • Average Price of both Single Family homes and Attached homes Year over Year in February has increased to $454,204 an 2.1% increase..
  • Inventory as of the start of March 2019 increased by 39.1% year over year. When supply goes up prices go……. And the market is leveling off as the number of new listings taken for single family homes in February was 4,703, a 7.6% increase over February 2018. Sellers in the price ranges below $600,000 are still experiencing a favorable market to sell within.  Days on the Market to Sell a Home increase by 25% from February of 2018 to 40 days on the market.
  • We are on a pace for smaller appreciation gains in Denver real estate for 2019.
  • Three Factors to Watch for 2019

    1. Interest rates for mortgages remain stable for the first two months of 2019. The Federal Reserve, FNMA, NAR and most economist would suggest rates will rise slightly in 2019 to 4.5% to 4.75%. This will slow the buying power a little. However, we encourage buyers to buy now, as interest rates rise, your buyer power decreases and there is little chance of prices reducing at this time.

    2. Inventory is growing but at a slow enough level as to not create a buyers market very soon. This problem is compounded by several factors:

      a. Current Homeowners are enjoying their low interest rate payments and will not move.

      b. The lower level of inventory keeps sellers off the market because they cannot find a home to move into at a price they can afford.

      c. Personal Incomes are starting to rise but are not close to the home appreciation pricing Denver has enjoyed for 5 years.

    3. Employment growth and stability in the overall economy bodes well for Denver housing to continue at a strong pace for units sold for 2019 albeit lower than 2018. Sellers will have the upper hand in the lower price ranges with inventory levels below 2 months of supply.
    4. What Should Buyers Do in Today’s Market?

    • Be Ready To Buy! Homes below $750,000 are moving quickly.
    • Know you will not have much room for negotiations during inspections. Understand the condition of your new purchase very well.
    • Real estate is a very localized product to neighborhoods. Study the data from the area you want to live and compare the research for that neighborhood over time to understand the trends.

    What Should Sellers Do in Today’s Market?

    • Be positioned as the best conditioned home. You will get top dollar this way.
    • Appraisers are finding it hard to stretch the market as inventory grows and days on the market increases. Have a strong strategy to get your home appraised before taking it off the market on the highest offer.
    • It’s Springtime, make your home front sparkle from the street to attract the most traffic as best you can.

    The post So How’s The Market, March 2019 appeared first on The Denver 100.

  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 

Dear Friends of The Denver 100:

The Denver 100 provides this Annual Real Estate Report as a service to our clientele and friends to give the current trends in the Denver residential real estate market and a resource to predict the future housing direction in our marketplace.

The Denver 100 Residential Real Estate Report

Denver Metro Area Single Family Housing

  • 51,848 single family and condominiums sold in 2018 compared to 54,736 that sold in 2017 or a 3% decrease in the number of homes closed.
  • At Year End 2018 there were 5,254 active homes for sale compared to the beginning of 2018 which had 3,444 an increase of 6% in inventory over last year this time. This increase should not suggest a market correction or crash.  The reason is the inventory was so low that increase by 53% is bringing the market to more normal conditions.
  • The average price of a home in the Denver Metro Area ending 2018 is $463,946 compared to $428,489 ending 2017 year, which is an 8.3% increase in price for the mix of properties sold. By comparison, 2006 had a single family average price in Denver of $317,112.
  • The average days on the market for 2018 is 25 compared to 24 one year ago.
  • The selling price obtained compared to List price is 99%. What this means is that buyers were willing to pay full price or more to buy a home in 2018, but this figure most certainly lowered as the year went by and most of that gain was early in 2018.
  • The absorption rate for single family homes in the Denver Metro Area with 2018 year-end inventories is 1.32 months. As the inventory increases so does the absorption rate.  This inventory month supply will rise during the spring and summer seasons.
  • The $250,000 to $500,000 price range had the most detached home sales with 23,607 homes closed in 2018 creating an absorption rate of 25 days of inventory. Below 6 months of inventory typically indicates prices will continue to increase.
  • Conversely the $1 million and above price range had a total of 1833 homes closed in 2018, creating a current absorption rate of 39 months of supply. This is an increase in supply from 12 months ago, and moving in the direction to have luxury properties start to flatten out in price.

For the full report, click HERE

2018 Highlights and 2019 Predictions for Denver Real Estate for the 8 county Denver Metro Areas
  1. Sellers continue to be in the drivers’ seat in the sale negotiations of homes especially priced below $500,000. However, the bidding wars are slowing and in most parts of Denver are now not happening.  Sellers’ need to be aware of this shift in the market and not get too aggressive in price, terms or a lack of move in condition in your home.
  2. The briskness of sales and the number of buyers buying started to slow down in 2018 and a more normal trend of homes taking a little time to sell is now happening vs. the last 3 years. The inventory continues to remain at lower levels even though expectation of higher inventories are on the horizon, we are still at record level low inventory.  The buyer behavior is that the buyers are not as willing to jump into the bidding war process and are taking a little longer to buy.  This will elongate market periods for sellers.
  3. The increase in home prices across the metro area for 2018 has helped people feel a little wealthier as more homes have more equity than they have had over the last 10 years.
    1. 2018 sold data for the 8 county Denver Metro Area reflects 38,179 single family homes closed this year compared to 41,071 homes in 2017. This 7% decrease indicates sales for the Denver Metro area are stabilizing and does indicate a more conservative growth moving forward into 2019.
    2. The number of attached units closed data for 2018 is 15,663 This is a 5% decrease over 2017 which recorded closed units of 16,637.  Clearly this decrease in attached unit sales suggests that the mix of inventory and the buyers willingness to pay top dollar for condos/townhomes is changing.  For first time buyers, condos/townhomes will be the alternative choice as there are few single family homes priced below $300,000 in the Denver market.
    3. The number of sold properties in Denver for 2018 priced below $500,000 is 37,725. Homes priced below $500,000 make up 73% of all the sales in Denver.
    4. All Properties priced above $500,000 that sold in 2018 is 14,123 homes/condo’s compared to 2017 which had homes/condo’s sold of 14,101, or a Small increase in sales of this price   This indicates that the upper price range market remained strong in 2018.
    5. Attached Home sales in 2018 recorded 15,663 units sold.  Most of the sales of condos were under $500,000 making up 86% of all the condo’s sold.
  4. Average Price is the another star in the Denver real estate market hat in 2018 marking the strongest equity position in Denver’s real estate market.
    1. The median price of detached homes and attached homes by the end of 2018 is $405,000 compared to $375,000 at the end of 2016 or an 8%
    2. Price rises when days on the market shortens because buyers are making a more aggressive buying position. The Days on the market in 2017 was 24 days for a home and today it is 25 Days or virtually no change in Days on the Market.  However, we have notice in the 4th quarter of 2018 that the days on the market increased to 39 days, indicating buyers are taking longer to make a buyer decision and the trend most certainly is elongating the days on the market.
2019 Housing Market Projections:
  1. The number of available properties to buy will continue to rise over 2018 levels on a gradual basis through the spring and summer. As the market normalizes with higher supplies of homes, appreciation of home prices will slow down, plus the time to market the home to a contract will elongate to 40-60 days vs. 25 days.
  2. Today’s home Prices have more than offset the negative adjustments made during the 2008 to 2012 years. There are a sufficient number of homes with substantial equity that can take advantage of refinancing to remove some of that equity that has been gained over the last 5 years. This refinance phenomena does bring sellers to the market to sell and those sellers may consider selling now due to the fact they have a chance to get out with a large equity position.
  3. Unemployment for 2019 is going to continue to be lower than the national average as we anticipate unemployment to be in the high 3% to 4% range for the upcoming year which brings some additional buyers to the buyer pool, creating a situation for sellers to continue capture the Right Buyer for their home.
  4. Sales will decrease slightly for 2019 with total closed sales to be approximately 50,000 single family and condos sold for the upcoming year. The first half of 2018 experienced an abnormal amount of buyers entering the market due to low interest rates, stability in their personal economic situation and housing prices that were rising and the buyers didn’t want to miss their opportunities.   As the inventory of single family and condo homes closed in 2018 decreased year over year, 2019 will be 2-3% less in number of units closed, which would still make 2019 one of the highest number of sales in a decade.
    1. The primary reason the housing market will see fewer buyers in 2019 is that
      1. Interest rates will be higher than today and we predict 4.75% to 5.5%.
      2. Secondly, the easing of the borrowing guidelines still requires such rigid proof of ability to buy that self-employed or newly employed workers do not meet most of the guidelines causing the buyer pool to retreat some in 2016.
      3. The inventory of properties continues to grow to more normal levels, causing buyers to have more choices. The more choices, the less likely the buyers are to “rush” to a purchase.
      4. These three reasons are the “why” of the number of units predicted to close to be less than 2018.
  1. Prices of homes below $500,000 will increase approximately 3% in 2019 depending upon the location. We do not see any prices of homes below $500,000 reducing in 2019 unless a major job loss occurred in one area, like the airport causing the housing in that particular sub area was affected by an economic occurrence.
  2. Prices above $500,000 had a good year in 2018. We see the number of units sold in 2019 to remain constant with 2018 up to $1.4M depending upon the geographic location of a home.
  3. Location will always dictate the pricing of homes For example, a $750,000 home in Cherry Creek is liable to go up and sell at a faster rate than the same $750,000 in suburbs of Douglas County.  Why would this be?   It goes back to the comfort level of the buyer pool who will pay more for location than worry about value.  With interest rates, even for jumbo loans at low levels, some buyers who have economic stability in their life can see a bargain even at higher prices due to location.   Hence housing in Denver moves faster than Castle Rock due to location and newer styles of homes.
  4. The Luxury Market is stable and in the new luxury home market, the product price is increasing faster than the resale homes. Buyer behavior has changed as to what the buyers utilize in a luxury home and the buyers are more interested in convenience than mega mansion size.  This has been proven in 2018 as new product luxury sold data is at record prices, while resale homes have sold at approximately 70% of new product sales across the suburban markets.  The spread in price between the two types of product is significant and luxury buyers, looking at suburban sub areas will find very reasonable price points in the resale market compared to newly built homes.
  5. The First Time Home Buyer Pool will increase in 2019 and make up 35% of the entire market for Denver, as Millenniums find stability in jobs, relationships and reduce personal debt, they will be the purchasers of homes in 2019. This will mean about 17,000 sold units will be to first time buyers. What will they buy?  Attached homes will be the first choice for this group, as the prices are more attractive than the entry level detached or single family home.
  6. Multi-Family buyer pools are emerging in Denver. This buyer group has proven successful in buying homes in other U.S. cities and is now a target group that is emerging within our communities of the suburbs of Denver.  This group is made up of grandparents, parents and children buying together.  When you have a downsizing “Baby Boomer” population that has equity in their home and wealth in portfolios, that want a more mobile lifestyle added to a growing buyer pool of Gen X to Millennials population that have working income but no equity, this combination fits a select group of today’s population.  Homes offering multiple housing options within a singular property, such as homes with lower level full living spaces, i.e. second kitchens etc. will be attractive to this group.

Thank you for allowing The Denver 100 to be your resource for The Denver Housing Market.  We are grateful for the opportunity to serve your real estate needs in 2019.

Photo by Thomas Kelley on Unsplash

The post The Denver 100 Residential Real Estate Report 2019 appeared first on The Denver 100.

  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 
2018 Real Estate in Denver. Normalizing to Equalization. All data taken from ReColorado, on December 15, 2018.  Denver, Colorado.
  • Average Price of both Single-Family homes and Condominium Homes Year over Year To Date was $464,950 vs. $427,886 in 2017. We are starting see prices flattening as there was a rise of 6.4% increase year over year which is slower than the previous year and still somewhat unsustainable moving into 2019.
  • Inventory for December 2018 decreased 38.7% over December 2017. The number seems more shocking, but to better understand the increase it went from 4589 total units to 6367 total units, which historically is a very low number as it indicates a 1.5 month supply of homes through the 8 county Denver metro area.  Six months supply would be an equilibrium of inventory.
  • The number of homes closed in November 2018 was 3,724 compared to 4,441 in November 2017 or a 16% decrease in closings. This signifies the buyer pool has started to shrink creating a more normal cycle of buying vs. the frenzy of the past three years.
  • Days on the Market is 31 days which is about the same as 12 months earlier. However, the number of homes placed under contract in November 2018 is down over 2017 by 9.2%.  This means December and January closings will be less than the previous years.
  • The median price of a single-family home in Denver has risen 8% year over year to $405,000. This is an unsustainable number and prices will slow down moving forward.

The anticipated slowdown of housing sales in the 4th quarter is happening as predicted earlier in the year.  With the warm weather in Denver in November and December and the potential of very slight increases in mortgage interest rates for the early part of 2019, the real estate market is liable to continue with the slower number of sales as exhibited in 2018.  Also, the availability of lending options for people is growing and although we do not see money getting cheaper, we most certainly will see more financing options for self-employed and entrepreneurs in 2019 for obtaining financing for residential real estate.

As we finish the 2018 calendar year we wish you and your families a very Happy Holidays and prosperous new year.  Our 2018 Year End Review will be out approximately January 25th, 2019.

The post So, How’s the Market, December, 2018 – Normalizing to Equalization. appeared first on The Denver 100.

Read for later

Articles marked as Favorite are saved for later viewing.
close
  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 

Separate tags by commas
To access this feature, please upgrade your account.
Start your free month
Free Preview