The Case (Shiller) for Denver Real Estate
December 29th, 2009 categories: Real Estate News
The Avalanche aren’t number 1 this year. The Broncos certainly aren’t number 1. The Nuggets? Remains to be seen, but number 1 is unlikely.
Denver real estate is number 1. According to today’s release of the latest S & P Case Shiller Report, Denver’s real estate market declined the least. We’re number 1 because housing values went down just .1% from October of 2008. The rest of the 20 cities monitored by the report declined more than Denver year-over-year. Not one monitored city increased values year-over-year.
Actually, if you break our market down further, there are some serious rays of sunshine in Denver. The condo market jumped 50% in number of sold properties since last year. The average sold price for single family homes in November was up 9.5% to $265,498. The starter home price point is so busy that buyers are competing for properties.
Our high end market is still languishing. Most days lately, I’m hearing stories about a high end sale here and there. That’s good news, but these sales are almost always coming with big price concessions from sellers. You can read more about a local perspective at John Rebchook’s Inside Real Estate News Blog.
We’ve been saying for awhile that Denver is turning a corner. Since I moved here in 1982, we’ve been a counter cyclical city. We’re ahead of the curve in recovery.
What does 2010 portend? The first half of the year will be very good for real estate sales here. But after the tax credits end, and when the U.S. stops buying Treasuries we may be in for a bumpier recovery. Let’s hope that we’ve laid good groundwork with increased job growth and a stable local economy to stand the test of time.
In the meantime, let’s go skiing!
| Discussion: 1 Comment »
Denver Colorado Real Estate | November 2009 Market Statistics
December 21st, 2009 categories: Market Trends, Real Estate News
Busiest December Ever!
That’s not an exaggeration. It’s December 21st and I just got an offer on a listing which went under contract today. Our office rocking. The contracts keep coming in.
And we all had a great time dancing to the King of Pop last week at our office party. The mood is light years away from the dreadful, scary, morose feeling everyone had a year ago.
Not to say that things can’t fall apart on a dime. We’ve learned that a few times in the past decade. But when the going’s good you need to embrace it.
The Denver real estate market is setting the tone for an excellent 2010. This will be a very different year and buyers and sellers should be prepared to adjust quickly.
Looking at November’s market statistics (Christmas cookies took over for timely posting) you can see that Denver’s inventory is extremely low. This is more than just a typical seasonal adjustment. It’s a reflection of sellers’ pricing reality and buyers’ pent-up demand.
Our market is up 23% from this time last year! That’s an incredible statistic. In the words of Steve Harney, “You have to be dumb or broke not to buy a house right now.” A new house, an investment home, a move up, a downsize - this is your time, baby.
The average price is also up just a shade from last month and over 5% from last year. Sellers - don’t expect this number to magically increase at a rapid rate. Prices will remain deflated for awhile, but as the market picks up steam, prices will too.
With average days on market at 81 days, inventory will continue to sell off quickly and buyers’ lament will be that there’s nothing to look at.
After January 15th -when the market breathes new life every year - we should see an increase in inventory, and an increase in sales. Properly priced and showcased homes will not languish on the market in 2010.
Happy Holidays to everyone! Thanks for reading LifeStyleDenver for two years. Keep coming back and let me know if you want to list your house or find a new home in 2010.
| Discussion: 6 Comments »
Denver Colorado Real Estate | October 2009 Market Statistics
November 13th, 2009 categories: Real Estate News
I’m a little late this month with the real estate market statistics for Denver. It’s been a busy month! Good news for buyers, sellers and real estate brokers.
Denver sales continue to show bifurcated results - low to mid range homes selling like crazy, higher end homes still languishing a bit.
Inventory numbers are down from September - over 18% down. Days on market is down too, indicating increased sales rates. Inventory naturally adjusts this time of year, but sales paces have increased for some segments of the market causing further inventory reductions.
Prices are up nearly 3% from a year ago, but still we’re down from last month. That’s likely a result of the mix of homes that are selling. In other words, it’s not so much that prices have come down nearly 5% since September, but more likely that number is influenced by lower priced home sales.
Look for inventory to stay low through the holidays, which will result in pent-up demand by buyers after the first of the year. Buyers are motivated by the tax credit and they’re looking for good inventory to hit the market.
If you’re a seller, use the next few weeks to get your house in perfect showing condition, and carefully price your house when you do hit the market. If you position your home to come in first place in buyers’ minds - looking beautiful and priced very competitively - you’ll be the house that sells.
We’re in the perfect storm for a huge real estate recovery. Denver has already been at the front end of the recovery and recognized nationally as a stable place to buy a house. With interest rates remaining extremely low, prices depressed after several down years, and a tax credit for many buyers, 2010 is shaping up to be a busy year.
Last month proves it. I’ve been happily busy - but never too busy to help you find your next dream home! Start your search on my search homes website.
| Discussion: 1 Comment »
Homebuyer Tax Credit Extended
November 5th, 2009 categories: Real Estate News
The “first-time” home buyer tax credit was extended and modified today by Congress.
While there has been much debate here among Denver real estate brokers about the cost of the credit, there is no doubt that this move will help to continue to stimulate the recovering real estate market.
Homebuyers will now have two tax credits available. The original $8,000 for first time buyers - actually for buyers who haven’t owned a home in the previous 3 years. As well as a second credit available to current homeowners of $6,500. To be eligible, buyers must have lived in their current home for 5 out of the past 8 years.
The income limits for eligibility will increase to $125,000 for a single buyer and $225,000 for married couples. The maximum home purchase price will be $800,000.
The newest version was passed out of the House and the Senate today, and the bill sits on President Obama’s desk, waiting for his signature.
While the bill might be waiting overnight - don’t you wait! Get on my home search site and start house hunting. We can find you a terrific home and you’ll get your tax credit as soon as you file!
| Discussion: 1 Comment »
Help ~ We Can’t Find A Good House!
October 23rd, 2009 categories: Market Trends, Real Estate News
I’m working with a lovely family who is relocating to Denver in a few weeks. We can’t find them the right house and their move date is looming. They want to be here and settled by December.
After a 4 1/2 day marathon of 56 houses, we kind of narrowed it down to two possibilities. These buyers are looking in a fairly significant price point. Not uber high-end, but enough to buy a very nice home in a very nice location.
Theirs is the price point that’s slow in Denver, and now we’ve seen everything on the market. Either the homes were location compromised, floor plan challenged or way over priced. There are two homes they would consider, if they were appropriately priced. As it stands, after a detailed market analysis, both houses are more than $100,000 off the mark. The sellers feel they’re “in the right” and their agents have said if we wrote an offer, we’d be unreasonably low.
So we’re back to square 1. If you know of a house coming on the market, or a For Sale By Owner (FSBO) that we could take a look at, please contact me. We’re looking in Cherry Hills Village, Greenwood Village and Littleton. Preferably under $1,000,000 with 4 bedrooms plus a study and a nice-sized lot.
Thanks for your assistance. They need the keys to their new house soon!
| Discussion: 4 Comments »
Denver Colorado Real Estate | September 2009 Market Statistics
October 12th, 2009 categories: Real Estate News
In August, Denver had 20,225 active listings available on the market. In September, we were down to 19,834.
With inventory naturally shrinking as we round into fourth quarter, Buyers are left with choosing a currently available home or waiting to see what might come on the market in coming months. It’s not likely that many new properties will be listed from Halloween through the new year, and many buyers are faced with choosing between buying a home they’ve seen or waiting until after the first of the year when inventory will begin to build.
Prices are up slightly from August, and up nearly 5% since last year. From August to September 2008 our average price went down 14%, and it kept trending down for months. We’ve now begun an upward swing just when our market typically begins to cool a little.
We’re likely in for a fairly quiet winter, but not likely to see prices precipitously dropping. By early 2010, we should be well into recovery and buyers will benefit from new inventory.
The big kicker will be mortgage rates, and if (when) they begin to rise, they will rise quickly. That could put a damper on buyers’ purchasing power. If you’re a home buyer, you may not have as much to choose from today, but you know that prices and rates are still low.
Based on the increasing average price trend and shrinking days on the market, you can’t know for sure how long you’ll be on this side of low rates and low prices.
| Discussion: 3 Comments »
What the Fed Wants Buyers to Do
September 24th, 2009 categories: Real Estate News
The Federal Reserve kept the Fed Funds Rate low again yesterday in their monthly meeting. This rate is used for banks as a benchmark for their overnight lending to each other, and is a short-term rate.
Mortgage rates track with the bond market, and not the Fed Funds Rate, however, conventional wisdom suggests that the Federal Reserve governors feel that inflation isn’t yet a risk, and that rates should remain low to keep the recovery moving forward.
With rates low for, “an extended period,” there should be no doubt in buyers’ minds that now is a good time to buy. When rates begin to rise, which may be as early as the beginning of next year, they will probably rise rapidly.
Your buying power will be quickly eroded if the rates go up even 1% and they will likely end up quite a bit higher than they are today. I remember buying my first house and assuming a 9% loan - we thought that was great relative to where rates had been!
Get into you lender’s office soon and find out what you could pre-qualify for. You may be surprised, and this is a great opportunity to take advantage of low housing prices.
| Discussion: No Comments »
Gretchen Faber Named 2009 REALTOR of the Year at the Denver Board of REALTORS
September 14th, 2009 categories: Real Estate News
DENVER – Gretchen Faber, managing broker of The Kentwood Company at Cherry Creek, has garnered the prestigious “Realtor of the Year” award from the Denver Board of Realtors (DBR). Faber was honored during the DBR’s 121st Annual Inaugural Celebration held September 11th at Coors Field. The recipient of the coveted award must exemplify sincere dedication to the real estate profession, possess strong leadership skills that are reflected in his or her business achievements, be actively involved in civic endeavors, and show a sincere devotion to local, state, and national Realtor associations.
Gretchen Faber earned her real estate license in 1996 and was among the original brokers at The Kentwood Company at Cherry Creek in 1998. She has served in numerous positions with the DBR, including chairman of the organization’s International Roundtable, and member of the India Ambassador Trade Missions planning committee, grievance committee, and board of directors. Faber is a Certified International Property Specialist, a trustee of the Metro Denver Realtor Foundation, a member of the National Association of Realtors’ (NAR) board of directors, and she is a Colorado Association of Realtors and NAR approved course instructor.
“Gretchen is much more than a top-producing broker and outstanding manager,” said Peter Niederman, chief operating officer of The Kentwood Companies. “She is one of the most ethical, professional and seasoned brokers in the industry. Gretchen is among the most trusted and admired real estate agents in metro Denver and her accomplishments are impressive by any standard. We are extremely proud of her and there is no one more deserving of the Realtor of the Year honor. We are fortunate to have her as a member of the Kentwood family. On behalf of our owners, managers, staff, and broker associates, I wish to extend a sincere ‘congratulations’ to a very deserving award recipient and friend.”
Faber’s community involvement is extensive. She is a sponsor and participant in Camp Experience, a member of Women for Women International, and has served on the silent auction committee for the Children’s Hospital Foundation. Past activities have included membership in World Trade Center Denver, chairman of Kentwood’s Adopt-a-Family committee, Center for Hearing, Speech and Language fundraising committee, and the Junior League of Denver.
Faber became managing broker of Kentwood’s Cherry Creek office in 2006. She is responsible for recruiting, supervising new and current broker associates, and directing a staff of seven while providing support for nearly 70 top-producing broker associates. Faber earned her B.A. and MBA degrees from the University of Denver and has served as adjunct instructor at the Community College of Denver. She is known for her expertise in relocation, international real estate, foreign national clients, and Denver’s most desirable and historic neighborhoods. Faber has traveled with broker associate Julie Hummel to India to learn and to assist Indian colleagues as they struggled to build a real estate profession based on the prototype of the NAR.
The DBR’s 121st Inaugural Celebration was hosted by Vic Lombardi of CBS4 Sports. The “Baseball Formal Event” included dinner and cocktails, a live performance by Robert Johnson of the 17th Street All-Stars, installation of new DBR president Mark Trenka, and much more.
| Discussion: 7 Comments »
Denver Colorado Real Estate | August 2009 Market Statistics
September 9th, 2009 categories: Market Trends, Real Estate News
When looking at trends in anything, you want to take in the big picture, and then boil it down as necessary.
Real Estate in Denver is certainly showing a definite trend in the amount of inventory available. Month after month this year, we’ve experienced a depletion in homes for sale. In August, we’re at a low we haven’t seen since at least 2004, (my reporting doesn’t go back any further than 1/05.) There are only 3 months in these past 5 years where our inventory was less than today’s 20,225 and that was December 2008 with 19,600 available properties, Jan’09 with 19,748 and February ‘09 20,059. I would call that a normal seasonal adjustment, as well as an adjustment to the immediate economic cliff we’d just fallen off.
Today’s low inventory is more than just a seasonal slow-down for the winter. It’s still 90 degrees here, and I had 45 people through an open house last weekend.
And look how many condos went under contract this past month! Up nearly 5% from July. That’s a reflection of most condos’ price-points being lower than single family, and condos are great starter homes for many people.
We have a number of contributing factors:
- Pent-up demand. Buyers are off the fence.
- Rates are still at historical lows.
- Great looking and well-priced houses are selling pretty quickly (average days-on-market is only 3 months.)
- Denver’s economy is beginning to pick up steam. The City and County of Denver has to balance a difficult budget, as does the state, but overall in-migration is on an upswing.
- Investors are swooping in and buying up property.
While our average price is down from this year’s high in June of $258,000, it’s the mix of properties that are selling which is skewing this number low. Homes priced from $100,000 to $300,000 are getting multiple bids, making it increasingly difficult for first-time home buyers to compete. Homes priced from $300,000 to $500,000 are taking a little longer, but are still in that sweet spot of a likely sale. Homes above $500,000 and especially over $1,000,000 are taking much longer and homes in the very high-end are competing against several years’ worth of inventory.
The take-away this month? If you’re thinking about buying a home soon, better get looking right away. Not only is the first-time home buyer tax credit set to expire at the end of November, but with fall and winter upon us soon, we’ll probably not see inventory (and your choice of houses) increase until after the first of the year.
Sellers? Your take-away is to continue to react to what the market is telling you. If you’ve been on the market more than 30 days and/or 30 showings then you need to adjust. What’s your feedback telling you? How do you compare with the houses currently on the market and most-importantly with the homes that sold while yours has been on the market? If you’re not willing to remodel the kitchen, replace the carpet or finish the basement then you need to adjust the price. If you’re in a compromised location like a busy street, you haven’t quantified that enough yet. And if you’re not getting any showings and no feedback, then you need to drastically reduce the price until feet begin walking through the door. If you aren’t willing or able to, then your house isn’t really on the market yet so consider taking it off (if you can) and waiting a little longer for better timing.
| Discussion: 1 Comment »
Mortgage Caution - Delays in Closings Will Happen!
September 3rd, 2009 categories: Real Estate News, Relocation Tips
A broker in my office came to me yesterday with some questions about a seller’s recourse if the loan doesn’t fund at closing.
Colorado is a “table closing” state, and our contract expressly states that the buyer must attend the closing with all moneys and documents. This means that if a closing is at 4 p.m. on a Wednesday, as this broker’s closing was, the buyer and the buyer’s lender must perform under the terms of the contract at 4 p.m.
This lender had a lackadaisical attitude, ignored the new HERA/HOEPA regulations and essentially didn’t do his job. He was told on August 23rd that there was a slight change in the final figures, but he failed to disclose the change to the buyer.
Under the new regulations, any change upward to the buyer’s APR (over 1/8%) must be disclosed in writing to that buyer and the closing can’t happen until 3 days after the disclosure is made.
The loan broker did not disclose the resulting change in APR to the buyer until yesterday, the day of the closing. Actually, it was the second date for the closing, since this lender also didn’t order the appraisal on time (another story.)
Real Estate Buyers - Caution!
You are at risk to lose your earnest money in Colorado if you aren’t prepared to close at the date and time the closing is scheduled in the contract. In this case, the earnest money was $8,000. You lender and your real estate broker must be watching out for you and advising you. How could you possibly keep up with the changes in our industry? It’s obvious that many lenders and real estate brokers aren’t even keeping up. If the real estate broker in this instance had been on top of her game, she would have hounded the loan broker to get his disclosures out.
Her managing broker is helping her out, and using this as a “teaching moment” by paying the sellers’ damages. This equates to their loan per diem until the closing and various other pro-rations and charges. He’s a good broker and stepped up to the plate immediately because he understood that we must not stand in the way of a buyer and seller finalizing the transaction, or risk our clients’ earnest money. I’m sure he’ll also go after that lender for leaving him hanging in the wind like that.
This added level of complexity makes it more essential than ever that you hire a professional and seasoned real estate broker and that you listen when they tell you what to look for in your lender.
Don’t leave your earnest money to chance.
| Discussion: 3 Comments »
