Winter Real Estate Update

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.

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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.

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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.

549 Fillmore Street

Target Pricing

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!  

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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

Fall Real Estate Update

Dear Friends,

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.

May/June Real Estate Update

Coming Soon

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.

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Appraisals

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!

Washington Post Article: American's Great Housing Divide

 

 

March/April Real Estate Update

New Listings

4805 West 28th Avenue

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.

389 East Bayaud Avenue

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!

Colorado Update

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).

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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.

 

Local Reminders

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!

January/February Real Estate Update

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!

October/November Real Estate Update

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.

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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.

August/September Real Estate Update

Loan Changes

In our last e-newsletter, we mentioned the major changes coming to loan disclosures that will have a significant impact on the timeline to close a loan.  Since that post, the Consumer Financial Protection Bureau announced it will delay this law, called the "Know Before you Owe Law"  until October 2015.   Click Here to link to  the CFPB website with more information about exactly what will be changing.  This is an important read for Buyers looking to purchase in the next few months.

Price Changes and Inventory Across the United States

There are many metrics people are using to analyze data about the price changes of real estate markets across the United States.  I've included this one provided from FHFA below.

A 'balanced' real estate market is based on the premise that, at any given time, there is a 6 month supply of inventory.  Nationwide, our inventory falls below that number, and this chart demonstrates how significant a dip we've had over the last few months in the Denver metropolitain area.

Now, when you break down the inventory across various price points, you can see further how the price range you're considering may be significantly more or less competitive than another one.  This important chart clarifies the notable disparity between the luxury market and all other price ranges.

What's Going on with Mortgages Right Now?

There's been some fluctuation recently as global markets and domestic reports have triggered both small increases and decreases in the interest rates our Buyers are able to lock with their lenders.  While there appears to be no doubt that, on a larger scale, interest rates have nowhere to go but up, here's a chart that highlights how low they still remain and will continue to be for the next few years compared to historic rates over the last 40 years.

 

Worried We're in A Bubble?  Don't Be....

The Chief Economist for Realtor.Com, Jonathan Smoke, was recently asked if he was concerned real estate was headed towards another "bubble" market.  He responded by saying, that no we aren't, this is merely, "what happens when demand increases faster than supply."  Backing that statement was David Blitzer, the managing director and Chairman of the Index Committee for S&P Dow Jones Indices, who said, " Given the long stretch of strong reports, its no surprise that people are asking if we are in a new home price bubble...I would describe this as a rebound in home prices, not a bubble and not a reason to be fearful."

 

 

June/July Real Estate Update

Major Changes to Closing a Loan and What it Means to you

With the acronym of The TILA RESPA Rule and the lack of publicity to consumers, most people are not aware of the significance of the changes coming to the real estate industry nationwide on August 1st. You may be familiar with a document called the Truth in Lending Disclosure or the Good Faith Estimate that a lender will provide to you to clarify fees associated with a real estate purchase.  Starting August 1st, both of these documents will be completely replaced with the Loan Estimate Disclosure and the New Closing Disclosure designed to elucidate the fees and provide a mandatory timeline when documents are delivered to Buyers.  Further guidelines include mandatory three day waiting periods between when a consumer receives documents and when they can close on a property.  As a result of these changes, there is widespread speculation on how much longer it will take to close on a real estate transaction secured by a loan.  The reality is that until Lenders, Real Estate Brokers and Consumers start to employ these forms, we really don't know the full impact of this change.  In any scenario, if you plan to purchase or sell Real Estate after August 1st of this year, expect the possibility of delays and extended timelines for closing until the system is more fully in place.

Denver and the Nation 

Once again, Denver has been listed as the hottest real estate market in the country based on our current supply of inventory.  Here's a link to the full article from RisMedia.  Here are a few graphs from the Metrolist to provide greater emphasis of how the Denver Market has performed.

Percentage of List Price vs. Sold Price in Denver for Single Family Homes between $300,000-$500,000.  This is one of the most competitive price points in the city.

List Price to Sold Price in Denver, Single Family Homes between $300,000-$500,000

Active Number of Listings Between 0-$500,000 of Detached Single Family Homes in Denver

Active Listings 0-500k for DSF in Denver

Number of Sales of Detached Single Family Homes in Denver Priced Between 0-$500,000

Sales of DSF in Denver 0-500k

COMING SOON SIGNS

There's so much competition in the marketplace, that the "Coming Soon" signs you often see in front of houses have started generating controversy.  The major concern among many Real Estate Brokers is that by pre-advertising the house, the listing agent is attempting to capture both sides of the transaction and limit exposure to the open real estate market.  The Colorado Real Estate Commission has recently clarified the broker's obligations to a seller because a coming soon rider has both advantages and disadvantages as a marketing tool.  As a result, a coming soon sign should be specifically addressed in a listing contract.  Buyers- keep your eyes peeled for those signs, they can often be the first indication before a house hits the market!  If you like the house, take a picture of the sign and address and send to us so we can find out all of the details and set up a showing!

Realtor.Com has a new Look

Realtor.com is making some dramatic changes in order to better serve Buyers looking at listings.  They've just released some great new commercials with Elizabeth Banks about their new systems, check it out: Realtor.com Commercial.  Commercial #2

Fitness Across the US

Once again, Denver remains one of the fittest cities in the Nation- here are some of the details provided by AmericanFitnessIndex.com

April/May Real Estate Update

New Highlands Beauty for Sale

This newly listed home represents the best of old world charm and modern living.  It is located in the heart of the Highlands, close to shops, restaurants, and  easily accessible to downtown and the highway.  New steps and landscaping lead you to a renovated front porch. The living room feels fresh and modern, opening into a spacious dining room.  A light filled kitchen is larger than most and has been newly renovated.  Two bedrooms (one being used as a study) and a newly updated bathroom complete this floor.  Downstairs, a family room and gorgeous, oversized bedroom await complete with  a built in closet, and additional cedar closet and a huge newer bathroom. There is also a laundry room.

Outside there is a lovely patio, a nice sized yard and a one car garage.  This house has it all on an amazing block!

Do I Sell First or Buy First?

The single hardest decision facing current homeowners is how to best plan for their next move.  The dilemma regarding identifying the next home has led many sellers to wait to list until inventory increases so they feel more secure when looking for their next investment.  Fortunately, as we move toward the Spring, we have begun to see a seasonal uptick in the number of active listings that will continue through Summer.  This chart demonstrates just how few listings there have been for sale among detached single family homes in the city of Denver:

Historic Count of Active Listings over 5 Years in Denver for Single Family Homes

 

The best news for sellers is that you can make a great return on your investment now.  You can almost guarantee a quick sale, with excellent terms, and you have more control over the transaction than in almost any other market.    We have begun to see some Sellers place terms in the contract requesting an additional 30 days to identify a home to which they can move.  There are multiple negotiating points in a contract as Buyers and Sellers work out the best possible arrangement for both sides, so don't rule out selling even if you don't have all the details worked out yet-- Instead- take advantage of this great time to be a Seller!  This chart demonstrates the Average Days on Market and Average List Price for a single family home in the city of Denver over the last five years:

Average DOM vs List Price for Single Family Homes in the City of Denver for Last 5 Years

In the News: Denver Real Estate

The reality of being a purchaser in a hot market like this one is that you absolutely have to have everything lined up and ready to go before you step foot inside a house.  There are many ways to be competitive with your offer, and usually a combination of several techniques creates the most dynamic and successful offer.  The Denver Post has been writing extensively on this subject and provides a great perspective well worth sharing.

http://www.denverpost.com/business/ci_27780191/denver-buyers-up-their-game-be-last-bidder-standing-real-estate-deals

 

Rental Rates

A lot of clients ask us about how rental rates have been affected.  In our business, as rental rates have also climbed at unprecedented rates- even overtaking appreciation rates of housing, we have seen many renters become buyers.  There are many first time buyers in this market, which makes the hottest markets under about $450,000.  

http://www.denverpost.com/business/ci_27707997/soaring-rents-denver-have-tenants-thinking-more-about

 

Reminder

Street Sweeping in Denver Has Begun April 1st!  Don't Forget to Move your Cars if you Park on a city street!

Beautiful Textiles- Special Offer

Elizabeth's Mother in Law is a very talented Fabric Designer who has been featured in homes and magazines around the world.  She is currently offering a special discount to our clients!


February/March Real Estate

Wrapping up 2014

The Coakley Sacerdoti team has remained one of the highest producing teams at Kentwood Cherry Creek for 2014.  With nearly $20 Million in Sales Volume, we had the second highest production volume and the second highest number of Closed Sales.  We are thrilled that through our years of  experience and diligent efforts, we have remained committed to the highest level of service and knowledge about our ever-changing marketplace.

Going into 2015, Courtesy of Gretchen Rosenberg

The Denver area residential real estate market continues to both amaze and frustrate.  Buyers are frustrated and sellers are often amazed.  The main issue we’re struggling with is that homeowners are afraid to list their home because they’re afraid of being sold out of it.  They have nowhere to go, they reason, so they can’t sell.  Can you see the circular logic here?

Here are 5 Reasons to List your Home this Spring

  1. Depending on your area of Denver and price point of your home, you may well have multiple offers within days.  No more dreadful vacuuming your way out the door. This phase of the sale goes quickly in our current market.  Your broker will be there to help manage the complex back-end of negotiations, inspections, appraisal, title and closing.
  2. You’ll be in a much better financial position when you’re the buyer competing for your replacement home.  There’s practically no way you’ll get an offer contingent on the sale of your home even glanced at when sellers have multiple cash offers waiving an inspection, appraisal or loan objection.
  3. While you may be camping in your parents’ basement at 45, or living in a Residence Inn for awhile, you’ll be nimble.  This goes back to being able to position yourself to look like the absolute dream of a buyer.  Seller wants to move quickly?  No problem!  Seller wants to rent back for 3 weeks?  No problem!  The Marriott has a pool anyway and the bellhop walks Fido every morning.
  4. You’ll benefit from our fantastic price appreciation of the past two years while interest rates are still low.  Imagine selling your house for a tidy profit, and buying your next home at an even lower interest rate!  Price appreciation will slow down eventually – even though this summer is shaping up to continue in a positive trend.  Interest rates will begin a slow rise at some point.  They’re still low for the foreseeable future which is a great advantage in being able to buy more house.
  5. Counter intuitive as it may sound, the real estate market in Denver tends to slow down a bit during mid to late summer.  Spring is always the best real estate market here and if you need time to spruce, spiff and stage you need to get going.

Homeowners – would you love to move?  Do you need to move?  List your house this spring, Denver’s historically best real estate season.  Help yourself and help all those other wanna be sellers by filling in the blanks on that for sale sign.