Sorry it has been a while since I last wrote one of these newsletters. It has been one busy summer! August is right around the corner and it’s going to be time for the kids to be back in school soon. Wait a minute, did I just say that?!? Summer’s always seem to go quick, and this one has been no different as time flies when you having fun (or working in this case). Let’s jump into this update and see what has been happening in the Denver market since our last communication:
Denver Metro Area Home Report: June
Back at the end of March, active listings were sitting around 4,921 homes available for sale in the Denver market. Through the end of June, they have ticked up to 7,059 homes which is very typical as the summer months slow down while people are on vacations and so forth. This stat also represents a 3.8% increase in a year over year comparison for active listings (more to follow on that below). Here are also some other interesting tidbits of information worth looking at:
- Piggybacking off of the stat above, I looked at comparing March of 2016 vs. March of 2017 and May of 2016 vs. May of 2017 with active listings. In both cases, we had an increase in the number of active listings year over year. The March 2016 vs. 2017 comparison showed a 9.7% increase and the May 2016 vs. 2017 comparison showed a 7.9% increase in active listings. What should we take from this? Maybe not a whole lot, but clearly inventory levels are starting to slowly tick back up with year over year comparisons. In other words, more inventory on the market. This may also be an indication that properties aren’t moving quite a fast as the last 2-3 years with elevated home prices.
- We are still well below historical norms with inventory levels, so while we may be starting to see some slight increases in inventory, we still have a ways to go to get back to historical norms. For example, the average number for active listings in June is 17,160 homes (1985-2016).
- The trend line since 2014 still looks almost identical with active listings and homes sold, with inventory levels bottoming out in January and peaking in July.
- Of those 7,059 active listings through the end of June, 72% of the current active inventory represents homes valued at $400k and higher. I’ve written about this several times and still shows that the hot price range still remains under $400k.
- Another thing I have noticed is that while we are in a building boom, new home builders are not addressing the price point demand for buyers in the $400k and lower price range. Most base prices for new homes start around $400k and go up from there, which also shows why homes move so quickly in the “hot” price range when they come on the market. Inventory levels are not being addressed with new home builders as labor costs, building materials, and so forth make it cost prohibitive for building less expensive homes.
- I have also been seeing lots of price reduction alerts popping in on the MLS in the higher end price range. My personal opinion is that higher end market ($500k and higher) is showing signs of cooling off. Of course, price, location, and condition will ultimately determine a lot when selling your home regardless of the price range.
- The Federal Reserve is expected to raise rates at least one more time this year, so the trend line should continue to slowly tick higher with interest rates. However, for comparison purposes 10 years ago the 30 year mortgage rate was at 6.125%, so we are still well below historical norms. If you are looking to make a change, taking advantage of these historically low interest rates is advisable.
We should see market activity pick back up as we head into the Fall and with the kids getting back into school. While activity is not as robust as in the Spring, we do see some good activity through late October. If you are thinking about selling or buying, please reach out to me as I would be more than happy to help with any questions or real estate needs you might have!
Wire Fraud is Real – VERY IMPORTANT: Be very aware, as this is real as I just had a close encounter with it myself last week. As sited in the recent DMAR newsletter, “Hackers continue to use phishing scams to steal home buyers closing funds. The Federal Trade Commission and the National Association of Realtors urge homebuyers to contact the title company or their agent through a number known for the company, to verbally confirm account or wire information even if the information was sent via a secure or encrypted email.” Needless to say I will be taking even greater steps to help ensure buyers and sellers are aware of this very real threat and to ALWAYS call and confirm before wiring any money to or from a title company.
These perpetrators were very sneaky and clever in my situation, but luckily I was able to catch on and react quickly as something didn’t look right and caught my buyer before any funds were wired. Sadly there are people out there with zero integrity and will not hesitate to defraud the public, so work with someone (like me) who has your best interest at heart with attention to detail!
Active/Under Contract/Coming Soon:
Make sure and visit the site on occasion that will feature Upcoming and Active listings. Make sure and also explore the 3D interactive virtual tours, as this is cutting edge technology! If there is any interest in any of these please feel free to reach out and I’ll be more than happy to discuss these with you:
7938 Nile Court in Arvada (Active – MLS# 6350642) – 6 bed/5 bath with 4,400+ square feet. *** NEW CARPET/REFINISHED HARDWOOD FLOORS/GREAT PRICE *** Make sure and explore the interactive 3D virtual tour as this home has lot’s to offer throughout! Located in a cul-de-sac on a .50 acre corner lot, this semi-custom home speaks for itself offering lush trees and landscaping, large back deck for entertaining with views, sports court in backyard, close to the mountains, and nestled in a quiet neighborhood with great schools. This spacious, open floor plan features newly refinished hardwood floors on the main level, newly installed carpet on upper level and stairway, large family room opened to kitchen area featuring granite countertops/ gas stove/double oven, dining room with butler’s pantry, office/study, large master with fireplace and 5 piece master bath, recreation room in basement, exercise room, lots of storage throughout, 3 car ATTACHED and unique 2 car DETACHED garage, and the list continues. With so much to offer, come make this beautiful home on a great lot yours!
Virtual Tour: https://my.matterport.com/show/?m=vw18BsqTzy6
2421 Ranch Reserve Ridge in Westminster (Active – MLS# 4268092) – 6 bed/8 bath with 11,000+ square feet. This two story Coenen Homes custom masterpiece offers true elegance and uniqueness you will instantly fall in love with. Off the back of the deck the home offers extremely rare panoramic mountains views, coupled with fantastic golf course and lake views. Take in a movie in the theater room while enjoying a glass of wine from your well stocked wine cellar or maybe enjoy an indoor Jacuzzi in the exercise room. A perfect property for those that love to entertain, so use your imagination as this home is has it ALL and is definitely a one of a kind masterpiece!
Virtual Tour: https://my.matterport.com/show/?m=ctJjx8ohiRd
Property Video: https://www.youtube.com/watch?v=D73Xk7zIGhE&feature=youtu.be
321 Browns Pass in Fairplay (Active – MLS# 5477785) – 5 bed/4 bath with 4,000+ square feet. Only 23 miles to Breckenridge w/ lots of activities to do around the area like hiking, trout fishing in river and HOA stocked pond, 4 wheeling, mountain town activities, and so on. This home features a main floor master, open floor plan, 60ft*12ft deck for outside enjoyment w/ private decks off the main/upper bedrooms, 35 acre lot, and surrounded by an ancient Bristlecone forest with scenery galore! This home also has some great custom finishes to it like; hand crafted stairway rails built from Aspen trees on property, maple hardwood floors on main level, beetle killed pine flooring on upper level, kitchen island w/ prep sink, custom made tiles in bathrooms, hand milled Aspen trim throughout home, custom built bookcase and desk in basement, and check out the custom waterfall built with rocks from the property and more.
Virtual Tour: https://my.matterport.com/show/?m=f5TBUYLhNYM
Property Video: https://www.youtube.com/watch?v=58Qj2MdZ0oM&feature=youtu.be
540 S. Forest Street – Unit E in Denver (Under Contract – MLS# 9023404) – 4 bed/4 bath with 2,900+ square feet. Come check out one of the rare, highly coveted townhomes in the Four Mile Village community in Glendale. This beautifully remodeled home provides very close proximity to Cherry Creek complete with shopping, parks and recreation, restaurants, and nestled in a nice quiet area. This floor plan has been opened up with tastefully updated features throughout the home, beautiful kitchen with granite and wood countertops, gas stove, pull out shelving with cabinetry, new hardwoods floors/carpet, newly sodded yard with retractable awning, and the list continues. Pride of ownership and care will stand out once you’ve had a chance to visit this amazing property. Also don’t forget about the swimming pool, tennis courts, and other amenities this community has to offer. This is a spacious townhouse in every sense of the word in a great location, so come check it out today and make it yours!
Virtual Tour: https://my.matterport.com/show/?m=iJs3HTvVkVt
2700 E. Cherry Creek South Drive #413 in Denver (Coming Soon in August) – 2 bed/2 bath with over 1,200+ square feet.
5820 West 110th Place in Westminster (Coming Soon in August) – 3 bed/3 bath with over 2,200+ total square feet.
Here is a link to the Featured Properties page: http://fullerhomeoptions.com/featured-properties-for-sale-denver-real-estate-market/
Property Searches: If you have any interest in looking to see what is available in the Denver market, don’t forget to use the MLS property search feature we have set up on the website at: http://fullerhomeoptions.com/property-search/
Feel free to go in and play around with it and as always reach out if you should have any questions!
That should do it for this update. As always, if you or anyone you know should have any real estate needs, please consider using us as a resource as your business and referrals are GREATLY appreciated!