Denver Among Top 10 Healthiest Housing Markets
November 21st, 2011 categories: Real Estate News
Recently, Builder Magazine listed Denver as among the top 10 healthiest housing markets in their “Healthiest Housing Markets: Mid-2011 Update.”
We’ve been experiencing such low vacancy rates for rentals, that much of what’s driving home sales is investor interest. Investors are willing to take a risk on our market and are snapping up good rentals. With investors getting back in, more buyers will feel confident in the coming months.
Builder Magazine says permits for new construction look to double in 2012 and Denver has added 20,000 jobs this year. Our foreclosure crisis hit much earlier than much of the nation, and we’ve seen a large decline in foreclosure numbers.
Add to that, several large corporations have chosen to locate their headquarters in the Denver Metro area, including, DaVita, Arrow Electronics and Vestas. The announcement last week that the Niobrara Oil Field could contain 1.5 billion barrels of oil fueled speculation that growth will continue in our oil and gas industry (no pun intended).
The Denver real estate market is humming, and will continue to gain steam in 2012.
Gretchen Faber, LifeStyle Denver author, is a local Denver real estate broker. Contact Gretchen about listing your Denver area home for sale or looking for that perfect Denver home.
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Mother-In-Law Suites Gaining Favor
November 18th, 2011 categories: Market Trends
While showing homes this year to several of my clients, one new trend seemed to stand out.
Several people mentioned a need to have an accessible second master suite for their parents. Bloomberg News confirmed this trend today in their online post “Homebuilders Target In-Laws, Dogs as Extended Families Grow.” We joke about our 20-somethings moving home and whether we could live with our mothers-in-law, but the reality is that many families are consolidating and cohabiting.
That’s a great trend for families. Maybe not so good for unique household formations, which drive real estate sales. Some people look at it as a temporary solution to a financial situation, but others view it as supportive and an opportunity for bonding or free childcare.
Regardless, this trend hasn’t gone unnoticed by home builders. They are sensitive to market demands, and building to suit the needs of buyers.
Gretchen Faber, LifeStyle Denver author, is a local Denver real estate broker who has sold many new construction homes over the years. Contact Gretchen for information on local builders.
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Denver Residents Falling Back
November 5th, 2011 categories: Life In Denver
Everyone in Denver is falling back tonight. At least, those of us who remember to turn our clocks back an hour will.
So don’t get left behind. Change your clocks and sleep an extra hour on Sunday morning.
And if you’re having an open house, give your broker a break if she shows up an hour early.
You can search for Denver open houses on my GretchensDenver website every weekend!
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Denver Real Estate Statistics | September 2011
October 31st, 2011 categories: Market Trends
Real estate in Denver has picked up steam during September and October. The summer was hot and dry, the fall has been brisk. Under contracts are up over last year.
Inventory is still extremely low, and buyers are finding it difficult to get into the house of their dreams without making some concessions. But sellers with any sort of perceived flaw in their home are nonetheless finding themselves waiting for an elusive offer. The perceived flaws that hold today’s buyers back are location issues, lack of updates and price.
Those are just a few of the reasons why such a profound lack of inventory still isn’t translating into higher prices. We have 7,347 fewer homes on the market from the same time last year, yet prices are still down 2.63%.
Another factor is that showings are bulking up at the $200,000 to $400,000 price point. A reflection of investors buying up rental properties. With vacancy rates hovering at only about 1%, it’s a crazy good time to own rentals.
If you’re a seller, don’t even think about taking your house off the market for the holidays. The shortage of inventory plays to your favor, particularly if your house is priced between $200,000 and $400,000.
Buyers can use this time of year to negotiate. Just make sure you do your research. Not every listed home is over priced. And if you’re not finding what you’re looking for, you’ll see an increase in your choices by mid-January.
Search homes in all neighborhoods and research sales statistics at www.GretchensDenver.com. Gretchen Faber’s real estate web site.
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Bang for Your Buck – Top Home Updating Tips
September 7th, 2011 categories: Selling Strategies
As a Denver area real estate broker, I’m asked by homeowners where they should put their money when getting their house ready for sale. So many times, the Seller has put off updates and improvements they could have enjoyed and they’re now considering those same updates to benefit the next owner.
How can you keep on top of home improvements, keep on budget and enjoy before you sell? Focus on “bang for the buck.”
Bang for the Buck 1: Kitchen counter tops. Replace your laminate or tile counters with granite or quartz. One brand name for quartz counters is Silestone, and their look has come a long way in the past 15 years. If your cabinets are in decent shape, just a counter replacement and a fresh coat of paint on the walls can completely transform a kitchen.
Bang for the Buck 2: Keep it in the kitchen. Consider a new backsplash, adding pull-outs inside your cabinets and updating the appliances. A friend of mine recently had a professional cabinet painter change her cherry cabinets to a muted grey color and the kitchen looks amazing. The cherry was the rage when they built their home, but it never quite meshed with the granite. Painted cabinets may not sound like the way to go, but it did the trick in this kitchen.
Bang for the Buck 3: Update Flooring. Your wood floors will wear out over time, and refinishing them when you live in the house is a royal nuisance. But it has to be done, so plan ahead. It’s less expensive than replacing the floor when it’s too worn to refinish. If you have tile, carpet or vinyl then budget for updating every 7-9 years. That’s how long it takes to begin showing wear and tear, and to look a bit dated. “Carpet allowances” never work. Get the new stuff and enjoy it, but keep it new looking if you’re planning on selling in less than 7 years. Removing shoes at the door goes a long way toward limiting wear and tear.
Bang for the Buck 4: Paint the interior and exterior. You’ll need to paint every 5 to 7 years. More often if you have children or pets. Fresh paint makes a house shine. Paint with color for yourself, and when you’re ready to sell paint neutrally (but not white) to ensure a broad appeal. I love the Devine Paint web site. It’s truly a feast for the eyes.
Bang for the Buck 5: Landscaping. Give your yard a fresh look by cutting back overgrown bushes and trees. Plant blooming flowers, and make sure to pull weeds. Good landscaping adds tremendous value to your curb appeal. This is something you can do yourself, or hire out on an hourly basis. A true bang for the buck if you shop wisely and prune the existing landscape without adding too many new items. It’s fall, so add some bulbs if you’re in a bulb-growing area. You can order beautiful bulbs at White Flower Farm. If you’re in the Denver area, buy locally at Country Fair Garden or City Floral.
Bang for the Buck 6: Easy Bathroom Remodel. Bathrooms are small enough that you can usually find remnants to do an easy renovation. Small lots of tile at mark-down prices, resurfacing tubs and sinks instead of replacing them, and shiny new fixtures on sale at Lowe’s or Home Depot are great ways to give your bathroom an updated look and getting bang for your buck.
Check out the gorgeous homes for sale at GretchensDenver. The photos may give you more bang for the buck ideas.
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Denver Colorado Real Estate Statistics | June 2011
July 19th, 2011 categories: Market Trends
June 2011 was the month we were waiting for. Real estate professionals all over the U.S. were predicting that year-over-year sales from June 2010 would rise in June 2011.
In 2010, the Homebuyer Tax Credit ended in April, and at the time all under contract or pending properties were required to close by the end of June to qualify. The closing date was later pushed out to September, but in April everyone thought June 30 was the final date for the credit.
Which makes June and July 2011 interesting months to observe trends. In Denver, Colorado real estate, the trend is that closings are up, Pending and under contract properties are up and inventory is down.
Since May, 2011 our local Denver area residential real estate inventory has increased a little – just shy of 1%. But we’re still seeing a much lower number of homes on the market from this time last year.
Less available inventory theoretically translates to increasing prices. Historically low interest rates also historically work to firm up real estate markets. But since last year, prices are still dramatically down. From May, 2011 prices to see to be firming a little, increasing 3.62%.
The market is stable, sales continue, but prices will not increase as fast as Sellers would like. It will take many months to make back any losses, but if your goal is to buy or sell a home, there could be worse times. Last summer was much slower than this year, and Buyers seem enthusiastic about the prospects of owning a home in Denver!
To search for your next Denver home, go to www.GretchensDenver.com. Gretchen Faber’s real estate and relocation web site.
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Denver Colorado Real Estate Statistics | May 2011
June 9th, 2011 categories: Market Trends
We’re finally comparing Denver real estate sales this year with the time after the tax credit ended last year (for under contract properties.)
The number of homes under contract jumped 23% from May of 2010. This is the first month in 2011 where we’re not comparing under contract data to the tax credit time of 2010.
The average sale price for both single family and condo are up over 3%, reflecting stability in the market. While the recent Case Shiller numbers for March indicated a potential “double dip” housing recession, the Denver real estate market is truly hanging in there.
Sellers are realistically pricing their homes, Buyers are taking advantage of the drop in interest rates to incredible lows, and more investors are entering the market and snapping up properties for their portfolios.
Inventory continues to fall, which is one reason prices are steady, even rising. Buyers aren’t finding as many homes to choose from, so the great ones are going fast. The number of days on market fell nearly 3% from April. Days on market were dramatically less a year ago, perhaps an overhang from the tax credit frenzy that was wrapping up at the end of April 2010.
The Denver real estate market may be contracting in terms of number of available listings, it’s not contracting based on the buyers making offers on homes. With a 23% increase in under contract properties, we should see the number of June closings rise considerably. Stay tuned!
Consider an investment property. With prices and rates at an all time low, it’s a great time to buy a rental. Search Gretchen Faber’s web site at www.GretchensDenver.com.
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Denver Real Estate – Double Dip, Single Dip?
May 31st, 2011 categories: Real Estate News
Today’s S & P Case Shiller Report proved interesting to more than just real estate junkies. The highly-watched, monthly index of housing prices showed a double dip housing recession in many U.S. housing markets.
Denver bucked the trend. Barely. We’re not in a double dip – this month. At least not with this most recent report (showing data from March 2011.) Denver prices were down 3.8% over March of 2010. In February 2009, our low point, prices had fallen 5.7% over the prior year.
The S & P Case Shiller is a composite index of 20 MSA’s (Metropolitan Statistical Areas.) There are thousands of cities, towns and neighborhoods that are not factored into this report. Real estate is so specific, that your neighborhood could be up 2-5% from the low, and it could be down 50% from the high. These reports are informative because they give you a gauge of where Denver (or your area) fares against other cities.
The Case Shiller is two months behind, and our MLS usually publishes their data by the 10th day of the following month. That also gives us a good, broad spectrum assessment of the market, but again isn’t specific to your neighborhood.
It will be interesting to see how Denver stacks up in the next Case Shiller. We’ll have to wait until the last Tuesday of June to see if we remain ahead of the “double dip.”
This is a great time to be a Buyer! Don’t miss out on terrific housing affordability. Check out available homes at www.GretchensDenver.com – Gretchen Faber’s Denver housing web site.
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Denver Colorado Real Estate Statistics | April 2011
May 24th, 2011 categories: Market Trends
Denver real estate is always interesting. With April statistics out a little later in the month than usual, and a recent business trip, the April report is finally here!
And… what do we see?
- Inventory is unusually low for the Spring. This could impact prices in future months, if Buyer demand improves and inventory stays low, prices will improve.
- Prices are flat and down from last year. Not a surprise since we’re still recovering and last year’s tax credit generated high demand.
- Under contract properties jumped in a big way over March 2011. A good reflection that Buyers are finding what they’re looking for and executing contracts.
- Home closings dropped from April 2010. That tax credit frenzy last year. Closings are up from March 2011, which shows we’re in a more typical Spring market.
The year 2011 is proving to be pretty much as we thought. Steady. There are no surprises. The well-priced homes in great condition are selling, and often in under 90 days. Buyers are conservative and still want bargains. Mortgage rates are extremely favorable, and jumbo loans are easier to obtain than a few years ago.
All in all, it’s a more normal-feeling Spring than it has been in a few years. Except for the buckets of rain coming down for weeks. Some of us are wondering if we’ve woken up in Seattle!
Enjoy your Memorial Day weekend. Have some ice cream!
Search for your next Denver home at www.GretchensDenver.com.
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Denver Colorado Real Estate Statistics | March 2011
April 20th, 2011 categories: Market Trends
Real Estate is like a box of chocolates. Sometimes you get nuts.
- The nuts have been our foreclosures, our short sales, our underwriting issues and our tough appraisals.
Real Estate is like a roller coaster. Sometimes you go up, and then you fall fast. It takes longer to go up than come down.
- Interestingly, last year’s tax credit made our first half of the year incredibly busy. Then third quarter we fell off a cliff. It was so quiet! We all went to the pool.
- Prices have fallen across the nation since 2008. In some areas, they fell fast. Now, they’ll take longer to creep back up. Appreciation won’t be crazy fast like it was. It will be slower, more rational. This is the new normal.
Real Estate is like babies and teenagers.
- If you own your home, you need to baby it. Feed it with updates to keep it current. Clothe it in great curb appeal, lovely landscaping, an occasional fresh coat of paint and new carpet.
- Some days owning a house is like having teenagers. Temperamental (notice the word “mental” is in there?) Keep your mechanicals, appliances and roof in good working condition so you don’t have to use your mattress money to bail them out of jail.
Whatever your real estate is like, Denver real estate is always interesting. And the homes for sale are the bargain of a decade right now, with prices on the rise again.
In March 2010, the tax credit was just about to end. Buyers were in a tizzy to get their new homes under contract by the deadline. This was driving the market and the main price-point was the lower end, or starter homes.
This year, you can see in the chart that prices are moving back up. We don’t have much appreciation yet, if at all. We have a more normalized market, with the higher end finally coming back. In 2008-2010, jumbo loans were nearly impossible to get. Luxury homes were purchased with cash, so fewer luxury homes were selling. This resulted in significant price reductions by Sellers who wanted to compete and sell. Now that jumbo lending is back, rates are low and prices are low – the high-end is off of life support.
So Real Estate is like life. Ups and downs, ins and outs and always interesting. If you’re interested in searching for a Denver home or listing your fine property, call on Gretchen Faber and The Kentwood Company for assistance. Our company was ranked the #1 residential real estate company in the United States for per-agent sales volume in 2009, with 2010 results posted soon. We’re a dedicated team of professionals, looking forward to helping you find your next dream home.
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