PAINT! Your best (and cheapest) friend
It's a pain, you have to move your furniture, and hire someone to remove your favorite colors all for the sake of your wonderful real estate broker's request. Is it worth it? Well, if you've ever watched a single episode of anything that's ever aired on HGTV, the answer is of course, YES. Attracting the largest possible audience to your home is critical, and as 95%+ buyers begin by an online search, making sure you have the best looking property can be the difference of thousands of dollars of unrealized equity. Still on the fence? See a few before and afters and let us know what you think....
Second Quarter Denver Metro Statistics
And here's the breakdown of how the Second Quarter Broke Down across the Metro Area....
Good Things Come to Those who Wait?
In this robust real estate market, have you considered purchasing new construction? Throughout the metro area and beyond, builders are taking advantage of Denver's growth spurt by providing every type of new home imaginable. Whether it be a new condo in Rino, a modern townhouse in one of Denver's established neighborhoods, a patio home , or purchasing a build to suit single family home with all the bells and whistles, you as a Buyer have a golden opportunity to get what you want in a new construction home. You can choose your own finishes and upgrades, pick your personalized layout, choose your own lot and find the ideal location . There are tremendous advantages to creating your own space, rather than settling on a home where you need to "undo" someone else's taste.
However, there are some cautions to consider if you choose new construction. Firstly, a "Builder's Contract" is focused on protecting the Builder rather than the Buyer. Many protective contingencies found in a standard Contract to Buy and Sell are not included in a Builder's Contract. Secondly, your Earnest Money funds "go hard" in as little as 30 days so you must do all due diligence and decision-making to move forward within that time period. Thirdly, there is the elongated building time frame to consider. If you are renting, you need to factor in several months of rent into the completion of the home. If you are selling your existing home, you need to gauge when to go on the market. Most construction takes longer than planned and usually requires at least 9-12 months from start to finish.
Now is certainly a great time to consider building your dream, as long as you do it with careful consideration!
The Neighborhood Breakdown
How did yours compare to others? We send this out bi annually, so if you'd like to start receiving this data delivered to your door, email us!
The Phases of the Real Estate Market
Well there's been a lot of press out there as we near the end of a traditional real estate "cycle"- basically a 10-12 period of growth or recession. What our market has in store for us has seen intense debate on both sides. While this article from the Denver Channel projects a pull back in our market, we're less bearish about our future. There's no question that real estate prices have moved on an unparalleled trajectory over the last 8 years, but then again, Denver has a lot to offer, especially to millenials moving for jobs and quality of life, and their parents- moving closer to the kids. This link is an interesting read on how markets can be quantified- and how to handle every stage of the market productively. After reading it, tell us- which phase do you think we are in?
Everything you know about Denver's Real Estate market is Wrong
5280 Magazine has written another fab article about how our market is functioning across many urban neighborhoods and every price range- buyer, seller or just interested in real estate, this article is a worthy read!
The Denver Real Estate Market: Monthly Stats
Who's Buying and Who's Selling?
This great chart explains both the larger trends of who is buying and selling real estate- an important perspective when getting your home ready for the market-- should you be catering to a Millenial or a Gen X'er? Making a home appeal to your most likely buyer can be an important consideration to get your highest return.
National Real Estate Trends - and Where we're Headed Next
We're constantly evaluating our own market - and how we stack up against other major cities. This report here from Schwab has evaluated a LOT of different metrics to anticipate where we're all headed next.
Kentwood Real Estate in the News
Kentwood's participation in the Leading Real Estate Companies of the World network has been a terrific asset to increase our market across the planet and provide resources for our clients relocating to over 60 countries. March of this year was their annual awards gala, where Kentwood picked up awards in the following categories:
. Award of Excellence for Outgoing Sales Production
. Pinnacle Award for Most Outgoing Broker-to-Broker Referral Closings
. Luxury Portfolio’s Best Newcomer Award
. Most Innovative Office Design Award
. Member Marketing Award for Consumer Materials
. Member Marketing Contest for Luxury Portfolio Marketing
When we will see more Inventory?
It's been a hard process out there for many of our buyers who are waiting for the right house to come along, so they can act quickly in the hopes of winning what in many cases turns out to be a multiple offer scenario. As we move into Spring, we want to remind you that inventory will pick up dramatically. There's enough demand to make the summer months just as competitive, but if you've been waiting, expect to see a lot more emails with new listings coming soon!
Our Newest Listings are Not Lasting Long! Check out some of our newest Inventory
2016 Year End Review
We mail this out bi-annually to our Clients, if you are interested in signing up, please email us at CoakleySacerdoti@Kentwood.com
First impressions last with Buyers. This "before" and "after' illustrate a completely different experience for the Buyer entering this gorgeous home. With a winning combination of great photography, professional staging, and attentive Brokers who are present at every photo shoot and direct the photographer, the results are stunning! Sellers, you only have one chance to impress and we want to ensure that we capitalize on that opportunity!
Real Estate in Review
The Denver Metro real estate market cooled a bit throughout the fall, as was expected. Although the average sales price in Denver was 2% lower than the previous month ($394,059), it was still 12% higher than the previous year, according to ReColorado.com. The chart below is an excellent review of how the market has behaved in relationship to the past two years. The first chart displays the entire metro market, while the second image depicts the luxury market (i.e. homes over $1 million) as that market often behaves slightly differently.
As we review the larger trends in the marketplace over the last year, we've found that the days on market has increased as the number of listings has increased, but the number of sales has inched down as we move into the holiday season. All things to be fully expected, and important for both Buyers and Sellers to be aware of when timing the purchases and sales of real estate.
Cherry Creek North
Maintenance Free Living in the Heart of Cherry Creek North- Move Right on into our Newest Listing! Priced at $1,250,000, this home has 3 beds, 4 baths and is 4,152 Sq. Ft.
Our market has experienced a steady transition in the last five months from a "Seller's Market" to a "Balanced Market." Because this trend is relatively new and is on the heels of a robust springtime "Seller's Market," it has taken some time for Seller's to grasp the notion that pricing is dynamically changing. We are in constant contact with our Sellers to systematically evaluate this fluid market. Pricing must be exact and routinely "tweaked." Perfect pricing has never been more important and it is well represented below. This image highlights the significant difference between being on target and being overpriced. As illustrated, pricing too high costs valuable time. Buyers are savvy and patient and they will overlook overpriced properties...that means more days on the market and stagnation. When listing your property, we will always offer you our professional guidance for appropriate pricing!
The Way We Were
A look back on the last 10 years of average sales price in Denver- a lot has changed as we continue to grow!
Kentwood Real Estate in the News
We've decided to change the format of our update to be emailed on a quarterly basis- we hope this will allow us to create the most valuable real estate data to you, and that you will continue to enjoy reading it! We're also sad to announce that Conner Piretti is leaving the Coakley Sacerdoti team in order to pursue a focus on commercial real estate. He'll remain a part of Kentwood Real Estate, so we'll still get to see him around the office and may be around to help us from time to time!
Our Current Listings
The Denver Market in Review
Summer started off with a robust June. Vigorous activity was evident for both Buyers and Sellers in all price ranges and in a variety of neighborhoods. In July, the pace of the market slowed a bit. We attribute this "change in tides" to the fact that our inventory in the month of June was up by almost 24% from the previous month. This increased inventory allowed for less frenzy and fewer bidding wars than we have seen in previous months. The market continued this pattern in August and as you can see in the chart below, we saw an increase in inventory, but fewer total homes sold. With people traveling, families vacationing and the usual summer distractions, August showing statistics were down compared to last year's activity although our team was able to capitalize on this and allow for greater negotiation for our Buyers.
In the last week to ten days, there has been an uptick. We are once again experiencing an elevated number of showings and our supply of homes on the market has remained steady. This upward trend makes for a promising Fall season ahead. So whether you are a Buyer or Seller, you may be well positioned to buy and/or sell your home in the next few months.
As we move into the second half of the year, we continue to note the subtle changes in pace of the Denver Metropolitan Real Estate market and use that knowledge to help our clients achieve their best price. We've pulled some data and graphs from the Metrolist to demonstrate some of the features of this marketplace.
The images below break down the greater trends we've seen over the course of the last few years or few months that help explain the combination of factors contributing to our real estate market. The first image is the last 5 years of active, detached single family residential listings in the city of Denver. As we've noted in many of our newsletters, lack of inventory remains one of the key reasons why our marketplace is as fast-paced as it has been.
This image below reflects the Average Sale Price of detached single family residential homes in the city of Denver over the past 5 years.
This chart below shows the last 5 years of Months of Inventory for detached single family homes in the City of Denver. You can see how when we emerged from the recession, we had a many months of inventory (and thus longer days on the Market). Most real estate professionals will agree that 6 months of inventory reflects a balanced market that benefits Buyer and Seller equally. Below 6 months of inventory is when Real Estate professionals will begin speaking to a 'Seller's Market."
The final chart below is the Median Original List Price versus Median Sale Price Compare- i.e. how close Sellers get to the original price for which their home is marketed. July is the first month this year where the Median Sale price actually exceed the Median List price- an indication of the number of over-asking price offers and bidding wars have occurred this summer.
Two Listings Hitting the Market on June 2nd- They Will Go Fast!
3200 S Elm Street- $335,000 9,390 Sq. Ft. Corner Lot for Sale in University Hills- Aerial Photo featured above. This ideal development site, 3 Blocks from the Highline Canal will go fast!
1434 Willow Street - $300,000 Rare 4 Bed, 2 Bath home with Master Suite on a 6,250 Lot in Denver! Ideally located between Mayfair, Lowry and Stapleton, this home offers tons of value and future potential!
Denver VS Other Cities
Denver continues to be one of the hottest real estate markets in the country in 2016. With projected home sale price increases of 5% this year, buyers are still finding value in a very competitive market. Realtors attribute our strong market to a lack of inventory, low unemployment and a continued population growth fueled largely by Millennials. This chart demonstrates the Metrolist's YTD changes in our marketplace- notably the decrease in inventory with a market increase in Sales price.
Although price points in Denver are historically higher than ever before, many recent transplants to Denver find that homes are more affordable than where they came from. Compared to most coastal cities, Denver’s pricing is only a fraction of many major markets. This affordability combined with a healthy job market and close proximity to year round outdoor activities make Denver an appealing destination for thousands of new residents each year. Even with the recent boom in real estate prices, Denver continues to outpace the rest of the country in population growth and does not show signs of slowing down. Here's a look at how Denver County and Boulder County have specifically fared from April of 2015 to April of 2016.
The topic of Appraisals is coming to the forefront for both Sellers and Buyers in this current market. For Sellers, although today's market is robust, it is more critical than ever that their Listing Broker present them with viable comps for pricing so that at the time of Buyer's Appraisal, Seller has confident knowledge and data to support the Contract price. For Buyers, please ensure you are using a lender who has a qualified pool of Appraisers. Because the lender actually orders the Appraisal from a third party, the Buyer does not get to choose the Appraiser. We have seen conflicts arise whereby an Appraiser may be qualified, but not specifically in the property neighborhood. As we all know there can be a significant influx of price differential between a Washington Park property and a Whittier property. In addition, a qualified Appraiser will be able to accurately value a "one of a kind" property where "like" properties don't exist. An inexperienced Appraiser does not have that capability. There is nothing more diasappointing on both the Seller and Buyer side than when an Appraisal does not substantiate a contract price. We want you to take steps to avoid this situation before it occurs.
Winners and Losers in America's Housing Markets
The Washington Post recently featured an interesting interactive article on how your zip code has fared since 2004. Sent by a few clients, it's worth a look! Always feel free to send us what you find interesting in the news!
Featured in the photograph above, this remarkable ranch home is like none other! Due to its well-designed layout, terrific lot and high-end upgrades, this home is a stand out. Situated a stone's throw from Sloan's Lake, this house boasts unbelievable renovations, including a new addition that creates a spacious third bedroom and attached bath. Attention to detail is apparent; including new molding, fresh paint, updated hardware, light fixtures and spectacular landscaping. This home has it all.
Built in the Rowhome style, 389 E Bayaud has a classic exterior facade with a modern interior. The unique townhome layout features a central stairwell below a large skylight which fills each room with natural sunlight. Upgrades like hardwood floors, granite countertops and stainless steel appliances are outdone only by the balcony and large rooftop deck with stunning mountain views. Southern exposure allows for use of the roofdeck almost year round. This home is a rare find in West Wash Park and is sure to please even the most discerning buyer!
Click here for an experiential video of the home!
Denver, Boulder and Colorado Springs remain some of the hottest markets in the country according to Realtor.Com. We've witnessed fast changes to how brokers are handling the market and negotiating contracts for their Clients. Almost every price range is seeing incredible momentum. Although many Buyers are experiencing the frustration of writing more than one offer to get a house, the good news is that the number of listings is starting to increase - the change we've been waiting for! See chart below (pulled from the MLS statistics archive).
Additionally, as expected, the price increases have come along with the demand for new inventory. The average sold price across the MLS has gone up significantly Year over Year.
The Long-awaited light rail to the airport, "Train to the Plane" is still slated to open on April 22nd. Here are the Details.
Street Sweeping Begins April 1st!
The City of Denver has expanded their Composting Program across the city. Click Here to see if your home qualifies for this new service.
Excel Energy has proposed changes to charging their customers, including new solar customers. If you're considering adding Solar Panels to your home, read here.
Best Places to Live
The US News and World Report released its latest report on the top 100 best places to live in the United States. Many polls come out on this topic annually, but we liked this one as it was a far more comprehensive survey to address all facets of life in a city. We also really liked that Denver is their Number One choice! Click here to see how other cities your friends and family live in may have fared!
Welcome Conner Piretti to the Team!
We are thrilled to welcome Conner Piretti to the Coakley Sacerdoti team. Conner joined us in January of 2016 and we couldn't be happier to add his expertise and professionalism to our team. Connor started his real estate career in Massachusetts as a tradesman, learning all facets of construction from pouring foundations all the way to roofing homes. His professional life in Denver began at Cornerstone Apartment Services where he managed over 20 apartment buildings and provided oversight of building finances, maintenance and tenant relations. After almost six years in his position as a Portfolio Manager with Cornerstone, Conner moved on to become a Project Manager for a new home development in northern Denver with Lennar Homes. Conner has vast knowledge of "new-build" real estate, navigating Buyers through the process of negotiating "upgrades" and understanding contractor contracts. In addition, his time in Boston enabled him to expand his experience in metropolitan real estate including both the rentals and sales of condominiums and commercial property. Conner's wide-ranging background in Real Estate and negotiating skills have proven invaluable to his clients and made him a valuable part of the Coakley-Sacerdoti team.
2015 In Review
As we close the books on 2015, we wanted to share a break down of the market over the past 12 months. This demonstrates the strength of the Denver marketplace, and provides some insights into how the market has shifted over a 12-month cycle. In every market, we have a variety of tools that we employ in our contracts to negotiate harder and smarter in order to best serve our clients.
Kentwood Real Estate News
Once again, Kentwood Real Estate has performed exceptionally well and we are constantly raising the bar for Real Estate. Please take a look below at our production, our new affiliation with Luxury Portfolio and the location of our newest offices!
5280 Magazine - 5 Star Real Estate Agent
The Coakley Sacerdoti team was again featured in 5280 Magazine's September Edition on 5 Star Real Estate Agents. This distinction is awarded to brokers who receive high marks from a survey sent to recent home purchasers. Brokers must meet both production standards and customer satisfaction. This is awarded to less than 7% of Real Estate brokers in the Denver area. Thank you for your support!
New Listings All Over Denver!
UNDER CONTRACT: Washington Park: $515,000 3 Bed/2 Bath Victorian: Virtual Tour
Mayfair/Montclair: $475,000 3 Bed / 2 Bath Tudor Virtual Tour
Congress Park: $550,000 3 Bed / 2 Bath Bungalow: Virtual Tour
New TRID Is now in Effect!
The Loan Disclosures changes were formally put into effect this past Saturday, October 3rd! There will be some unforeseen delays as lenders, title companies and realtors work together to understand the ramifications of the new laws, but the consumer has the largest impact on if/when there are delays. As the new disclosures stem from confirmation of receipt from the borrower on documentation, YOU the borrower must check that you have provided your lender with a response on all of their emails ASAP in order to keep your loan on track!
Your Home Equity
Understanding what your home's equity may be is one of the most important ways home owners can fully realize the investment potential of owning a home. Paying down a mortgage, making improvements to your home and price increase are the three principal ways this number increases over time. To gain some perspective on how much equity you have the potential to realize, the Home Price Expectation Survey put together this chart to demonstrate what you may have to gain by buying now versus later.
Are Mortgages Easier or Harder to Get Post-Recession?
The world of getting a mortgage is a complicated one for many borrowers as the factors relevant to qualifying for a mortgage may not necessarily be in line with a borrower's actual ability to perform the terms of the loan. After the recession, mortgages were much more challenging to qualify for and it's been a slow progression to loosen lines of credit again to enable both borrowers and unique property to be approved for a loan. This chart from the Mortgage Bankers Association demonstrates the availability of mortgage credit to consumers since 2013.
Want to Keep your First Home as a Rental and Buy a New One? It just got easier....
Fannie Mae has recently updated some of their guidelines which make it easier to hold on to that first home as an investment property and still qualify for a new loan on a principal residence. Historically, you needed about 30% equity in the first home. Now, borrowers can use the rental income from their first property to help qualify, which is a huge help to many Buyers. Another helpful change includes the fact that 100% of a borrowers vested stocks, bonds and mutual funds can be considered as available reserves.