December 2023 Market Report

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This time of year, we enjoy reflecting on a closed chapter while holding optimism for what may transpire in the year ahead, says the Denver Metro Association of Realtors’ Market Trends Committee.

Last year, the Denver real estate market was challenging. We dealt with a lack of inventory and interest rates that seemed to go up daily. Despite these issues, buyers and sellers found a way to come together in a stabilizing market. Sellers said goodbye to multiple offers received in a weekend, and buyers were finally able to negotiate. As mortgage rates continue to decline, we all want to know what the Denver real estate market has in store this year.

If rates continue to decline, I expect to see more buyers enter the marketplace. There has been significant pent-up demand from both buyers and sellers over the last two years who have been interest rate adverse. If demand increases, this will ultimately provide some pressure on home prices. While I do not think we will see the same upward pressure on prices that we saw a few years ago, prices will continue to rise. If demand spikes, inventory will grow throughout the year as sellers find comfort in making a move with more reasonable financing options. Additionally, I expect the selling season to start earlier this year than last. With pent-up demand, more favorable lending terms and warmer temperatures than last year, there is nothing stopping buyers from getting out there.

Although interest rates started their descent in November, December numbers stayed consistent with Denver's seasonal rhythm. Month-over-month the median close price dropped 2.8 percent to $551,993, while closed sales dropped 7.65 percent to 2.620. Most notably, the median days in MLS jumped 31.82 percent from 22 to 29 davs.

However, the outlook is more positive if we compare the numbers to this time a year ago with the same seasonal factors. Year-over-year new listings declined by only nine homes from last year with 1,725 new homes for sale, and pending sales increased 10.87 percent to 2,471 homes. The median close price jumped a little over $1,000 and median days in MLS decreased slightly from 30 days last year to 29 days.

The performance was better for single-family homes year-over-year with new listinqs increasing 4.33 percent and pending sales rising 12.98 percent. The median close price increased 2.25 percent from $600,000 to $613,500, the close-price-to-list-price ratio increased to 99.55 percent, and median days in MLS declined from 32 to 29 days.

Conversely, attached homes were a bit more sluggish vear-over-year with new listings down 10.77 percent, closed sales declining by 10.57 percent, median days in MLS increasing to 30 days and the close-price-to-list-price ratio declining to 98.53 percent. However, interest rates helped pending sales with a 5.95 percent increase and the median close price rose 2.46 percent to $418,701

As previously noted, 2023 performed most similarly to a pre-pandemic 2019. While new listings and closed sales were both higher in 2019, a higher median close price of $580,000 last year kept sales volume similar with only a 0.76 percent decline. Similarly, while inventor continued to climb each month, active listings at month-end declined slightly by 1.31 percent while median days in the MLS landed at 12 days versus 13 days in 2019

National predictions indicate a slight increase in inventory with prices staving relatively stable. Historicallv, Denver does not follow national trends and predictions, often outperforming the rest of the country. Ultimately the traiectory of the vear is dependent upon interest rates and consumer confidence.

Learn more about the market from the Denver Metro Association of Realtors.

November 2023 Market Report

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With the holidays upon us, we are focusing on the gift of homeownership this season, says the Denver Metro Association of Realtors’ Market Trends Committee.

Owning a home provides stability and security for many families. It is also the single largest investment most people make in their lifetime, which serves as the single best vehicle to attain individual and generational wealth.

For buyers, the gift this season is growing inventory. Active listings at month's end increased 6.89 percent year-over-year to 6,684, new listings rose slightly by 1.04 percent to 2,717 and closed sales dropped 13.98 percent. During this time of year, I prefer to look at the month-over-month data as this holds more weight. If we look at the month-over-month data, active listings dropped 10.67 percent and new listings dropped 28.93 percent. However, that doesn't paint a true picture of our market as the Denver Metro Area is seasonally based, which means that we typically see a decline in inventory this time of year. As such, the increase in homes for sale provides the gift of choice.

Speaking of gifts, this is my absolute favorite time for buyers to get out and shop for homes. Sellers whose properties are on the market typically need to sell and are more willing to negotiate than in March or April when the market is at its peak. Additionally, the competition from other buyers drops considerably. As such, buyers who can see the beauty of buying a home right now have their choice of home and can negotiate their way into their dream home.

The opportunity for buyers continues as we look at the close-price-to-list-price ratio-which can be a bit deceiving. This number continues to hold strong at 98.56 percent; however, we do not track concessions in this report. What we know in the in-dustry, but don't publish here, is that sellers are currently negotiating significant amounts towards lender buy-downs to help buyers ride the wave of high interest rates while keeping the sales price fairly static. I received a marketing piece recently showcasing that a seller of a higher-priced property was willing to offer $100,000 in incentives.

Sellers aren't left in the cold this season as they have some gifts coming their way as well. They have time to prepare their homes and mindset for the marketplace as homes are taking longer to sell. The median days in the MLS has grown to 22 days, which is up an astounding 37.50 percent month-over-month. While December is typically overrun by the holidays, this is actually a great time to get some of the deferred maintenance items completed while vendors are slower. They can also set a new frame of reference for life once their home hits the market. If your home sells in one week, great. But if it takes three months, that's okay, because it's normal activity and can help alleviate concern.

Additionally, interest rates are starting a downward trend, and we as Realtors® know that if rates continue to drop then demand will increase. In fact, many agents saw a flurry of activity last month when rates dropped buoying end-of-year activity. Depending on where rates trend, we may see bidding wars back before we know it.

The gift I'm most excited about is the ability to slow down and find balance. The shifting market this year has thrown all of us off kilter but the 2023 data aligns similarly in many ways with the pre-pandemic real estate landscape of 2019. The market is finally finding a sense of equilibrium after three years of record-breaking stats. While we don't know what the New Year has in store for us, it's helpful to take a moment and appreciate the gifts available in our marketplace.

October 2023 Market Report

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“While Halloween may be behind us, the unprecedented year of increasing interest rates has made this year feel a bit spooky”, said the Denver Metro Association of Realtors Market Stats Committee.

However, as we enter into the holiday season, the market experts remain grateful for the unique opportunities available for both buyers and sellers in this market.

Despite a shifting market and general uncertainty, people are still buying and selling homes. In the Denver Metro area, it is rare to see inventory rise toward the end of the year, as we tend to see the lowest inventory numbers within the last two months of the year. Of particular note, we've surpassed the inventory numbers year-over-year. New listings dropped 16.84 percent to 3,816 month-over-month; however, this drop is normal due to seasonality and, more im-portantly, is down 0.65 percent year-over-year. Active listings at month-end finished at 7,482, up slightly by 2.63 percent from this time last year. Pending sales are up slightly from this time last year, up 1.76 percent.

A helpful guiding principle is to look at historical data as opposed to getting hysterical. If you look at the year-to-date numbers on page 13, this year performed most closely to pre-pandemic levels of 2019. Sales volume is over $24 million, median days in the MLS is at 11 for 2023-which is just one day shy of the median in 2019-and the close-price-to-list-price ratios are both over 99 percent, while pandemic years were over 103 percent.
Ultimately, sellers need to get the pandemic years out of their minds. That time frame was a perfect storm of low interest rates, unprecedented demand while residents fell out of love with their homes working from home and the ability to literally work anywhere was a novel idea. As employees are called back to the office and interest rates hover around eight percent, the party is over. Sellers need to focus on value and put themselves in the buyer's shoes. Buyers are no longer willing to overpay and, as such, pricing is the number one key in this market to sell a home.

Buyers on the other hand are sitting in a unique position, and some know it. While overall mortgage applications are low, hard money loans are on the rise as well as gifted funds from loved ones to help bridge the gap towards home owner-ship. This may be surprising, but December is historically a busy time of year, and increasing inventory is finally providing buyers with the gift of choice. Many buyers tend to hibernate for the winter. But for those who continue to look through the holiday season, there is less competition and sellers are usually more motivated to sell before the end of the year.

For buyers who feel priced out of the housing market, an alternative tactic is to look at other markets that are within their budget. Non-owner-occupant rental properties are a great option to find a way into the housing market. Regardless of the path, buyers are gaining more control in this market as time goes on.

At the end of the day, properties will continue to trade hands for the right price and terms. Interest rates can be daunt-ing; however, the key is to get onto the escalator of homeownership and experience appreciation as it moves upwards over time.

Learn more about the market from the Denver Metro Association of Realtors.

September 2023 Market Report

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The Denver Metro Area historically leads National trends, according to DMAR's Market Trends Committee.

While the market was unpredictable this spring, we are seeing the traditional seasonal slowdown in residential sales as fall takes over.

This month's data indicates a shifting market. New listings dropped 5.92 percent to 4,589 homes, while active listings at month's end rose 11.24 percent to 7.629 listings. Pending sales also fell 9.29 percent, closed sales declined 20.88 percent and, as such, sales volume declined 20.88 percent. Months of inventory jumped 47.24 percent to 2.4, while median days in MLS jumped 27.27 percent to 14 up from 11 days last month, which notably is a 12.5 percent decline year-over-year. I want to point out, however, that while inventory is growing, the median price point also grew 0.69 percent up last month to $585,000, which is also an increase year-over-year of 0.86 percent. Additionally, the close-price-to-list-price ratio was up 0.31 percent year-over-year to 99.19 percent.

While these are marginal changes, this small indicator showcases that prices are still strong in the Denver Metro Area. Buyers aren't generally haggling on price; however, they are asking for concessions, which is a data point this report does not track. As most Realtors® know, concession requests from buyers have been on the rise since the beginning of the year as they have made it easier for buyers to navigate this market.

Buyers and sellers continue to find common ground and people are moving every day for a myriad of reasons. One group that is leading the charge with new loan applications is first-time homebuyers. They aren't tied to historically low interest rates and feel the freedom to move as the current interest rates are all they know. Additionally, they understand that purchasing a home is a faster way to build wealth and gain equity as opposed to paying their landlord's mortgage. They are keenly aware that properties are sitting on the market longer, and sellers are often making multiple price reductions, providing first-time homebuyers with the leverage to ask for concessions.

In many ways, this is the perfect market for first-time homebuyers to seize opportunities. While interest rates are high, these buyers can negotiate instead of jumping into bidding wars where they might pay 10 percent over the asking price to secure a property like many did over a year ago.

August 2023 Market Report

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The Denver Metro Area historically leads National trends, according to DMAR's Market Trends Committee.

We exited the Great Recession ahead of the rest of the country and experienced a surge in real estate sales during the early days of COVID-19 while the rest of the country tried to find its bearings. While we work to navigate this new landscape, it's important to note that Denver remains one of the Nation's strongest housing markets.

So, what does that mean locally? Simply put, inventory is slowly growing, inching us closer to a balanced market that gives buyers and sellers equal footing. New listings increased 1.74 percent, and pending sales increased by 0.76 percent month over month. More notably, active listings at month's end increased 8.87 percent month over month to 6,858, while pending sales declined 13 91 percent and closed volume declined 16.11 percent. Activity is slowing slightly with inventory increases. The median close price dropped 1.36 percent from $590,000 to $582,000 and median days on market increased 22.22 percent to 11 days.

Buyers feel the shift and think that we are no longer in a full-price market. Median days on market increasing to 11 days may seem benign, but it also means homes are sitting on the market for 70 days or more. As a result, buyers want to negotiate on price and receive a concession for a rate buydown. Close-price-to-list-price ratio remains in the 99th percentile, showcasing buyers and sellers are coming together to make sales happen without huge negotiation swings. Pricing in this market is a science. If a home is priced correctly, or even priced under market, it may still receive multiple offers. However, if the price is slightly high then das on market climb until you find the right buver, or the right price.

Even if there were a rapid decline in interest rates, I believe we are slowly inching towards a balanced market. The months of inventory for detached homes under $1 million are sitting at a month and a half to just shy of two months, while above a million dollars, the months of inventory sits at roughly two and a half months and increases to 5.79 months of inventory with $2 million plus. The best performing price band for both detached and attached homes was $750.000 - $999,999 with an increase in sales month to month of over three percent.

For serious buyers who have their financing buttoned up, there are a number of opportunities available. I recently spoke with an agent listing a townhome who was frustrated that she's been told by five separate buyer's agents that an offer is coming only to have the buyers hold off due to rate increases. The important message is that sellers are eager for qualified buyers to make an offer. It's critical to make sure buyers understand their buying power before they start looking at properties.

As the Denver market continues to adiust, there are was to make this market work for you. FHA loan applications are on the rise, there are first-time homebuyer down payment assistance programs and assumable loans are quickly becoming an advantageous marketing incentive. The key to success in real estate has always been to buy what you can afford and then hold it for as long as you can.

We don't know how long these current market conditions will hold, but at the end of the day, it's always a good time to buy. In my opinion, having the ability to negotiate on price and terms is a better place to sit than paying 10 percent or more on a home in a competitive scenario while waiving a litany of due diligence dates.

Everything You Need to Know About Buying

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Casually strolling through this ridiculously pretty kitchen to give you some of the most helpful info you’ll need if you’re thinking about buying a house soon! Swipe ⇢ and get more info ⇣

𝗣𝗿𝗲𝗽𝗮𝗿𝗮𝘁𝗶𝗼𝗻 𝗶𝘀 𝗞𝗲𝘆 | Denver’s market moves quick. if you wait til you find a house you love to jump in, you’re already behind the game…and it pretty much never works out. Get pre-approved, and update it later if you want to just casually search.

𝗧𝗶𝗺𝗲𝗳𝗿𝗮𝗺𝗲 | Contract to close is about 1 month. It takes my buyers on average 2 weeks to 2 months to find a house they love and get under contract. Start shopping at least 3 months before you want to move.

𝗖𝗼𝘀𝘁𝘀 | Earnest Money Deposit: 1-2% (deposit only, applied towards down payment + closing costs)
Down payment: 3%+
Closing Costs: 1-1.5%
Inspections: $500-$1,000

𝗧𝗵𝗲 𝗦𝗲𝗮𝗿𝗰𝗵 | Make a list of musts/wants…but be flexible. No house is perfect, and you’ll likely end up compromising on something. Your search will likely evolve and you’ll hone in on what’s most important to you.

𝗖𝗼𝗻𝘁𝗶𝗻𝗴𝗲𝗻𝗰𝗶𝗲𝘀 | Once under contract, you have several opportunities to negotiate with the seller if issues come up. If a resolution cannot be reached, the buyer may terminate the contract + get the earnest money back. Inspection is the biggest contingency to get past.

𝗬𝗼𝘂𝗿 𝗧𝗲𝗮𝗺 𝗠𝗮𝘁𝘁𝗲𝗿𝘀 | Your Realtor + Lender will be a huge part of guiding you through the process, getting your offer accepted + getting you the best deal possible. Do your research + find someone you trust, has a good reputation, experience + will go the extra mile to advocate for you.

Seasonal Buyer Opportunity - Nov 2023

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It’s the most wonderful time of the year…for homebuyers. I LOVE November + December for my buyers because that’s usually when we can get the absolute best deals of the year on homes. Why?

⪢ A lot of other buyers are taking their foot off the gas of house hunting with the holiday season (less competition)
⪢ A lot of sellers are ready to move on from the property before the new year (motivated sellers)
⪢ Average days on market are higher than the rest of the year (more negotiation power + more time to think)
⪢ Prices are steady before they historically rise during the busy spring season (great deals to be had)

Of course, buying a house is a big deal and definitely not a one size fits all situation - the BEST time to buy is when it makes sense for the individual buyer. However, if you have any interest in trying to “time the market” this is a great time.

And a few bonus notes:
⪢ Mortgage interest rates have gone down about 1% in the past month (that’s a big deal)
⪢ Inventory levels are great + higher than we typically see in the winter (a lot to choose from)
⪢ Seller credits are still being commonly negotiated (closing costs and/or rate buy downs paid for)
⪢ Now is a great opportunity for contingent, VA, or FHA buyers to purchase without competing

Home Inspection

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Aside from getting under contract, the home inspection is one of the biggest steps in the process for both buyers or sellers…here is the rundown on what that looks like!

The Colorado contract allows the buyer to do their due diligence on the home and conduct a home inspection. This usually occurs the first week of the under contract period. The buyer can ask the seller to repair issues prior to closing, ask for a credit to address issues after closing, or if any deal breakers come up, they may terminate the contract at their subjective discretion (and get their earnest money back).

How much a buyer can ask for from a negotiation standpoint really depends on how much leverage each party has in the specific transaction. If it is a competitive house, oftentimes buyers will limit their requests to major issues ahead of time in their offer…and if the seller has other buyers interested in the home, they’re going to be less inclined to do a bunch of repairs. If the buyer has more negotiation power, they can usually ask the seller for more in terms of repairs if the seller doesn’t want to risk losing the buyer and going back on the market.

In general, the goal is to reach an agreement that is fair to both parties as no resale home is perfect. The buyer shouldn’t have to inherit big problems, but they also shouldn’t nit-pick the seller on a million fixes or try to just rack up a big seller credit.

My go-to rule of thumb in determining the reasonableness of a request is to consider if the problem is an issue for any buyer…or just a specific buyer. If any buyer would have an objection to the issue, it should probably be addressed…and if a specific buyer is just asking for a lot, then maybe the seller will push back a bit or the house just isn’t the best fit for them.

Here are some basic inspection objection guidelines on what (imo) typical requests look like in Denver’s market:
✅ structural issues, dysfunctional sewer lines, active water leaks, safety issues (gas leaks, high radon levels)
❌ cosmetic fixes, upgrades, general homeowner maintenance tasks

Before Selling, Do This

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𝗪𝗮𝗻𝘁 𝘁𝗼 𝘀𝗲𝗹𝗹 𝘆𝗼𝘂𝗿 𝗵𝗼𝗺𝗲?

𝗛𝗲𝗿𝗲’𝘀 𝘄𝗵𝗮𝘁 𝘆𝗼𝘂 𝗻𝗲𝗲𝗱 𝘁𝗼 𝗱𝗼:
𝗗𝗲𝗰𝗹𝘂𝘁𝘁𝗲𝗿 | Pack, donate, discard. Your house will look empty compared to what you’re used to, but that’s okay
𝗗𝗲𝗽𝗲𝗿𝘀𝗼𝗻𝗮𝗹𝗶𝘇𝗲 | Take down all personal photos + items. You want buyers to envision living in your house, not to feel like they’re in someone else’s space
𝗠𝗮𝗸𝗲 𝗥𝗲𝗽𝗮𝗶𝗿𝘀 | Take care of any issues you’re aware of that might arise at inspection, wrap up any unfinished projects, and touch up any general wear + tear

𝗔𝗻𝗱 𝗵𝗲𝗿𝗲’𝘀 𝘄𝗵𝗲𝗿𝗲 𝗜 𝗰𝗼𝗺𝗲 𝗶𝗻…
𝗔𝗱𝘃𝗶𝘀𝗲 𝗼𝗻 𝗨𝗽𝗱𝗮𝘁𝗲𝘀 | Smaller cosmetic updates that are inexpensive + make your home more marketable can go a long way
𝗗𝗲𝗲𝗽 𝗖𝗹𝗲𝗮𝗻 | I bring my professional cleaners in to deep clean your home
𝗦𝘁𝗮𝗴𝗲 | If the home will be vacant when we list, I will do a full stage, bringing in a designer + furniture. If sellers will still be living in the home when we list, I can partially stage by sprucing up the space with decor, or work with the seller’s furniture + decor, depending on preference
𝗣𝗿𝗼𝗳𝗲𝘀𝘀𝗶𝗼𝗻𝗮𝗹 𝗣𝗵𝗼𝘁𝗼𝗴𝗿𝗮𝗽𝗵𝘆 | High-end, bright, natural light, editorial style photos + a 3D interactive walk-through
𝗠𝗮𝗿𝗸𝗲𝘁𝗶𝗻𝗴 | Our in-house marketing team makes some gorgeous collateral + I use a great combo of traditional and new age marketing techniques to reach the most people possible

The Agent You Work With Matters

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As someone who works in this industry + sees what happens behind the scenes, this thought crosses my mind all the time. However, for buyers or sellers who are just excited to get started, they probably don’t give it enough credit: 𝘁𝗵𝗲 𝗮𝗴𝗲𝗻𝘁 𝘆𝗼𝘂 𝗰𝗵𝗼𝗼𝘀𝗲 𝘁𝗼 𝘄𝗼𝗿𝗸 𝘄𝗶𝘁𝗵 + 𝗿𝗲𝗽𝗿𝗲𝘀𝗲𝗻𝘁 𝘆𝗼𝘂 𝗺𝗮𝘁𝘁𝗲𝗿𝘀. 𝗔 𝗹𝗼𝘁. It will be one of the most important decisions you make, and can often mean the difference of getting the house you want or losing it…or potentially earning or losing tens of thousands of dollars.

There are a wide variety of characters when it comes to Real Estate Agents. Tbh it’s not that hard to take the classes + get licensed…then they can run their businesses however they want. As a result, you get a lot of people who practice real estate as a hobby, do the bare minimum when it comes to presenting or getting offers for clients, and have terrible communication skills.

Of course you should you find someone that you get along with personally + trust, but here are some things you should look for when choosing an agent.

𝗘𝘅𝗽𝗲𝗿𝗶𝗲𝗻𝗰𝗲 - They should be active in the market, meaning if they haven’t sold a house for several months they probably aren’t aware of what’s happening in the current market or what types of offers + terms are being written. They should be familiar not only with competitive offer strategies, but what options may be when the buyer has more negotiation power.

𝗥𝗲𝘃𝗶𝗲𝘄𝘀 - If an agent has done a good job for clients they have worked with in the past, they will have testimonials to show for it. Find some online, and don’t be afraid to ask for references.

𝗘𝘅𝗰𝗲𝗹𝗹𝗲𝗻𝘁 𝗖𝗼𝗺𝗺𝘂𝗻𝗶𝗰𝗮𝘁𝗶𝗼𝗻 - Do they call the other agent to find out what a great offer would be for the seller + put in the extra effort to build some rapport with the other agent, do they present your offer in the best light possible with a cover letter + lender communication, do they FOLLOW-UP multiple times after submitting an offer to ensure you’re in the best position possible? On a listing, is the agent conveying your priorities + wants…are they even answering their phone? Ask these questions.

My Three Biggest Tips for Homeowners

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In this job it should come as no surprise that I see a lot of houses. I get to help sellers prep their homes to get them in the best shape to list + I get to go shopping with buyers and see first hand what they look for in a home (and what some of the biggest issues come inspection time are). All of my clients will be 𝗛𝗢𝗠𝗘𝗢𝗪𝗡𝗘𝗥𝗦 for longer than they were buyers + sellers, and these tips might be helpful for those who don’t have plans of moving any time soon too!

1. 𝗗𝗼𝗻’𝘁 𝗹𝗲𝘁 𝗹𝗶𝘁𝘁𝗹𝗲 𝘁𝗵𝗶𝗻𝗴𝘀 𝗯𝗲𝗰𝗼𝗺𝗲 𝗯𝗶𝗴 𝘁𝗵𝗶𝗻𝗴𝘀. A small leak could turn into major water damage or mold if not addressed. Neglecting cleaning, servicing, or changing filters on major systems could lead to early repair/replacement. Letting exterior paint/caulking chip or deteriorate could lead to big ticket siding or soffit problems. A little maintenance goes a long way.

2. 𝗠𝗮𝗸𝗲 𝘀𝗼𝗺𝗲 𝘂𝗽𝗱𝗮𝘁𝗲𝘀. You don’t have to jump on the bandwagon for every new trend, but ditching some outdated features + making some cosmetic upgrades or making the bones of the house stronger can not only make your home more comfortable while you live there, but it can help make your home more marketable whenever you sell it down the road. Pick a project or two a year to tackle, whether you make it a fun DIY project or save some money up to hire a contractor.

3. 𝗣𝗮𝘆 𝗮𝘁𝘁𝗲𝗻𝘁𝗶𝗼𝗻 𝘁𝗼 𝗲𝘅𝘁𝗲𝗿𝗶𝗼𝗿 𝘄𝗮𝘁𝗲𝗿 + 𝗱𝗿𝗮𝗶𝗻𝗮𝗴𝗲. If I had a dime for every time this issue came up on inspections I’d have…𝗔 𝗟𝗢𝗧 of dimes. Colorado’s soil has high clay content, making it expansive when it gets wet. It is extremely important to ensure downspouts divert water away from the home, that landscaping around the perimeter of the house is properly graded so water flows away from foundation walls, and any gaps or cracks are sealed to prevent moisture intrusion. Over time if not addressed, bad drainage can cause major structural issues, settlement, and cracks in foundations or concrete work.

Timeline to Purchase

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It’s almost the 𝗡𝗘𝗪 𝗬𝗘𝗔𝗥, which means… people are starting to think about those 2023 goals that involve making a move + getting into a new home ✨🏡

Here is what the basic timeframe of a home purchase looks like so you can figure out when it’s best for you to start preparing:

𝗟𝗲𝗮𝗿𝗻 𝗮𝗯𝗼𝘂𝘁 𝘁𝗵𝗲 𝗽𝗿𝗼𝗰𝗲𝘀𝘀 𝘄𝗶𝘁𝗵 𝗮 𝗯𝘂𝘆𝗲𝗿𝘀 𝗺𝗲𝗲𝘁𝗶𝗻𝗴 + 𝗺𝗼𝗿𝘁𝗴𝗮𝗴𝗲 𝗽𝗿𝗲-𝗮𝗽𝗽𝗿𝗼𝘃𝗮𝗹: Less than a week
𝗦𝗵𝗼𝗽𝗽𝗶𝗻𝗴 𝗳𝗼𝗿 𝗮 𝗵𝗼𝗺𝗲: Average for my buyers is about 2 weeks to 2 months, but it totally depends on personal motivation, amount of inventory that matches search criteria + level of competition with the homes interested in
𝗨𝗻𝗱𝗲𝗿 𝗰𝗼𝗻𝘁𝗿𝗮𝗰𝘁 𝗽𝗲𝗿𝗶𝗼𝗱: Average is about 4 weeks, but could be shorter or longer depending on buyer/seller preference + contract negotiation

𝗦𝗼, 𝗶𝗳 𝘆𝗼𝘂𝗿 𝗴𝗼𝗮𝗹 𝗶𝘀 𝘁𝗼 𝗯𝗲 𝗶𝗻 𝗮 𝗻𝗲𝘄 𝗵𝗼𝗺𝗲 𝘁𝗵𝗶𝘀 𝘀𝗽𝗿𝗶𝗻𝗴, 𝘁𝗵𝗲 𝘁𝗶𝗺𝗲 𝘁𝗼 𝘀𝘁𝗮𝗿𝘁 𝗽𝗿𝗲𝗽𝗮𝗿𝗶𝗻𝗴 𝗶𝘀 𝗿𝗶𝗴𝗵𝘁 𝗮𝗯𝗼𝘂𝘁 𝗻𝗼𝘄!

And, here is a fantastic bonus tip - you don’t make your first mortgage payment until the month following the month after you close, which can be super helpful when determining financial comfort level with any overlap in a current lease + a new home, or you could even go a month or two without a house payment!

𝗛𝗲𝗿𝗲’𝘀 𝗮 𝗽𝗿𝗮𝗰𝘁𝗶𝗰𝗮𝗹 𝘁𝗶𝗺𝗲𝗹𝗶𝗻𝗲 𝘁𝗼 𝗰𝗵𝗲𝗰𝗸 𝗼𝘂𝘁:
🤓Dec • Schedule a new buyers meeting + get pre-approved
🏡Jan • Start house hunting
📑March • Make an offer + go under contract
🔑April • Close on your new home
💵June • Make your first mortgage payment

Price Reductions + Seller Credits

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The most recent Denver market stats report shows that average days on market are up to 20 and the list to sales price ratio has dropped below 100 for the first time since July 2020 and currently sits at 99.41%…these numbers are a little 🤓 but basically mean it’s a great time to buy a home compared to the 3 DOM and 110%+ we frequently saw this spring and over the past couple years.

If a house has been on the market for a bit and is not competitive, buyers have a great opportunity to try and get a ✨𝗗𝗘𝗔𝗟 The first assumption people make is that they should negotiate down the purchase price. However there are several options to consider depending on what is most important to the specific buyer:

𝗣𝗿𝗶𝗰𝗲 𝗥𝗲𝗱𝘂𝗰𝘁𝗶𝗼𝗻: If you buy a house for a lower price, this is great in the long term because you’ll have more equity in the home. However, every 10k in purchase price only makes about a $50 difference in your monthly payment

𝗦𝗲𝗹𝗹𝗲𝗿 𝗖𝗼𝗻𝗰𝗲𝘀𝘀𝗶𝗼𝗻 𝗮𝗽𝗽𝗹𝗶𝗲𝗱 𝘁𝗼𝘄𝗮𝗿𝗱𝘀 𝗰𝗹𝗼𝘀𝗶𝗻𝗴 𝗰𝗼𝘀𝘁𝘀: The seller can credit the buyer up to the amount of closing costs and pre-paid items, which is usually about 1-1.5% of the purchase price. The buyer in turn can keep this amount of cash in their pocket instead of using it at closing…and could save it or use it for immediate updates, new furniture, etc.

𝗦𝗲𝗹𝗹𝗲𝗿 𝗖𝗿𝗲𝗱𝗶𝘁 𝘁𝗼 𝗹𝗼𝘄𝗲𝗿 𝘁𝗵𝗲 𝗶𝗻𝘁𝗲𝗿𝗲𝘀𝘁 𝗿𝗮𝘁𝗲: A buyer has the option to lower their interest rate by purchasing points. Points are pre-paid interest on the loan, and by having the seller give a credit to purchase them, a buyer can lower their interest rate over the life of the loan, and in turn lower their monthly payment.

Of course price is just one aspect of an offer - we’re also seeing buyers having the power to negotiate some good inspection items + having their appraisals come in high (𝗜𝗻𝘀𝘁𝗮𝗻𝘁 𝗘𝗾𝘂𝗶𝘁𝘆!), which are also fantastic!

Market Opportunity - July 2022

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I wrote a post a couple months ago as mortgage rates started to tick up, and how that actually might have a positive impact on our market. Here’s a little update and a 𝗵𝘂𝗴𝗲 𝗣𝗦𝗔 𝗜 𝗵𝗮𝘃𝗲 𝗳𝗼𝗿 𝘄𝗮𝗻𝘁-𝘁𝗼-𝗯𝗲 𝗗𝗲𝗻𝘃𝗲𝗿 𝗵𝗼𝗺𝗲 𝗯𝘂𝘆𝗲𝗿𝘀.

Now that we’re in the middle of the sweet summertime and I’ve had a chance to relax over a few margaritas, I’ll shoot you straight - the recent spring real estate market in Denver was BRUTAL. Fierce competition and offers 10/50/100k+ over list price, full appraisal gap coverage, as-is purchases with no inspection repairs, and several other tricks to net the seller just a bit more money were the norm. Most buyers wrote a handful of offers before getting one accepted, searched way under max budgets, and ultimately made a lot of sacrifices to get a home. I wrote SO MANY offers that never got accepted. The buyers I worked with had no choice but to be extremely determined and so resilient. Denver’s market was uncontrollably on fire and to be honest, for the long-term health of it, we needed something to cool it down.

𝗦𝗼 𝘄𝗵𝗲𝗿𝗲 𝗮𝗿𝗲 𝘄𝗲 𝗮𝘁 𝗻𝗼𝘄? The combination of a little more inventory and slightly higher interest rates have put a damper on buyer demand. Some buyers are priced out, some are “waiting for rates to get better,” some are resigning leases and will give away tens of thousands of dollars for another year. I’m very adverse to sounding salesy, but I just want scream from the rooftops the amazing 𝗢𝗣𝗣𝗢𝗥𝗧𝗨𝗡𝗜𝗧𝗬 that is happening right now. Buyers are getting houses for list price or under, appraisal waivers, inspection requests, walking into instant equity…and even getting seller credits for their closing costs or to 𝗯𝘂𝘆 𝗱𝗼𝘄𝗻 𝘁𝗵𝗲𝗶𝗿 𝗶𝗻𝘁𝗲𝗿𝗲𝘀𝘁 𝗿𝗮𝘁𝗲 to lower their monthly payment.

Those wanting to take advantage of an FHA or VA loan, get an offer accepted contingent on selling a current home, first-time buyers without a ton of extra cash…or really anyone who wants to get a 𝗚𝗢𝗢𝗗 𝗗𝗘𝗔𝗟, now is the time. There are so many great houses out there + this is the most buyer-friendly market we’ve seen in years.

Interest Rates are High...But Calm Down

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As if people’s love for telling Denver home buying horror stories wasn’t enough, now we have rising interest rates adding fuel to the fire.

Obviously no one loves paying interest, and the biggest downside is that a higher interest rate will affect your monthly mortgage payment and the total amount you can qualify for. But, most people buy a home because it’s the right time for them personally, and not because they’re trying to time the market…so don’t let it deter you from making an amazing long term investment sooner than later. Here’s my two cents on current mortgage rates + a few things to consider…

• It’s more important now than ever to work with an experienced + honest lender who will keep you informed of changes throughout the buying process and not try to bait and hook you by promising a low rate at the pre-approval stage just to give you an accurate market rate once you’re under contract.

• In reality, most homebuyers live in their homes for 3-7 years, so try to stop looking at mortgages like you’re going to pay it for a full 30 years. If you’re there a handful of years, or longer, chances are rates will dip at some point and you’ll be able to refinance at an opportune time to lower your monthly payment.

• The impact on buyer affordability could help offset some of the demand in our market, which would be so welcomed by many. We’ll see how this plays out in the upcoming months, but I’d 100% rather buy with a higher rate for a better purchase price…than pay 100k more for a house just because rates are low and the monthly payment is fine (*ahem* 2020).

• Regardless of where rates are at, prices are anticipated to continue to rise (albeit hopefully at a lower more sustainable level than we’ve seen the past two years), so the cost of waiting is substantial, and it’s important to take the big number of your purchase price into consideration from a long term investment point of view.

Buyer Fatigue

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Let’s talk 𝗯𝘂𝘆𝗲𝗿 𝗳𝗮𝘁𝗶𝗴𝘂𝗲

The Denver market is always tough…but the early spring frenzy of new year excitement, high buyer demand, trying to beat rising interest rates, and sellers who aren’t quite ready to list have made things more challenging…and we’re all feeling it.

This is what we’re seeing ➡️
• Double digit offers
• Places selling 10%+ over list price
• Buyers offering appraisal gap coverage, limiting inspection repairs, free post-occupancy agreements, paying seller costs, etc

So if you want to buy, what’s the solution…Wait for things to “calm down?” Sign a lease for a year and watch values to go up 10%+, disregard basic rules of supply and demand + think somehow prices are going to drop despite the fact that there are dozens of buyers willing to pay a premium for the same house?

My advice ➡️ 𝘀𝘁𝗮𝘆 𝘁𝗵𝗲 𝗰𝗼𝘂𝗿𝘀𝗲. Yes, it might be hard…but so are most things in life that are worthwhile.

Here are a few tips on finding a house this spring, and not burning out in the process:

𝗦𝘂𝗯𝗺𝗶𝘁 𝗼𝗳𝗳𝗲𝗿𝘀 𝘁𝗵𝗮𝘁 𝘆𝗼𝘂 𝗵𝗮𝘃𝗲 𝗮 𝘀𝗵𝗼𝘁 𝗮𝘁 𝗯𝗲𝗶𝗻𝗴 𝗰𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝘃𝗲 𝗼𝗻. If other offers are tens of thousands higher or have aggressive terms you don’t want to play with, let it go
𝗕𝗲 𝗿𝗲𝗮𝗹𝗶𝘀𝘁𝗶𝗰 𝘄𝗶𝘁𝗵 𝘆𝗼𝘂𝗿 𝗽𝗿𝗶𝗰𝗲 𝗿𝗮𝗻𝗴𝗲 + 𝗲𝘅𝗽𝗲𝗰𝘁𝗮𝘁𝗶𝗼𝗻𝘀. If houses you like are starting in your budget and skyrocketing out of it, adjust your price point focus + reconsider expectations on the type of house you can afford
𝗥𝗲𝗲𝘃𝗮𝗹𝘂𝗮𝘁𝗲 𝘆𝗼𝘂𝗿 𝗻𝗲𝗲𝗱𝘀/𝘄𝗮𝗻𝘁𝘀. Can you broaden locations? Do you have to have a 2nd bathroom? Could a TH/condo be a good fit? Can you do updates yourself?
𝗔𝗽𝗽𝗿𝗼𝗮𝗰𝗵 𝘆𝗼𝘂𝗿 𝘀𝗲𝗮𝗿𝗰𝗵 𝗱𝗶𝗳𝗳𝗲𝗿𝗲𝗻𝘁𝗹𝘆. Instead of looking at the hot new listings, browse places that have made it through the first weekend or have been sitting with no movement
𝗕𝗲 𝗮𝗴𝗴𝗿𝗲𝘀𝘀𝗶𝘃𝗲 𝘄𝗵𝗲𝗻 𝘆𝗼𝘂 𝗳𝗶𝗻𝗱 𝗮 𝗽𝗹𝗮𝗰𝗲 𝘆𝗼𝘂 𝗹𝗼𝘃𝗲. If you want to play the competitive house game, you’re not going to feel like you’re getting a deal, you're going to feel like you’re giving up a lot. Come to terms with that + determine your comfort level with crafting competitive offers

Selling + Buying

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The approach you take when it comes to selling your current home + buying a new one during the same time frame comes down to your flexibility in regards to finances + convenience, knowing the options for your specific situation, and deciding which approach makes sense for you. Here are some common options:

𝗕𝗨𝗬 𝗕𝗘𝗙𝗢𝗥𝗘 𝗦𝗘𝗟𝗟 | If you’re able to carry the mortgage on your current home + qualify for a new mortgage, and have funds available for the down payment on your new home without needing to utilize proceeds from your sale, this option offers the most convenience. You can shop without being on a time frame, then list your current home as soon as you get UC so you don’t have an overlap in mortgage payments or later after you move into your new place.

𝗦𝗘𝗟𝗟, 𝗧𝗛𝗘𝗡 𝗕𝗨𝗬 | If you want to use proceeds from your sale towards the down payment on your new home or want to maximize purchasing power by qualifying for one mortgage, this option offers the most financial flexibility, but puts pressure on you to find a new home. You could request a post-occupancy agreement to give yourself an extra couple months to house-hunt, or have a short-term plan to stay somewhere else while you’re in between homes.

𝗠𝗔𝗞𝗘 𝗔𝗡 𝗢𝗙𝗙𝗘𝗥 𝗖𝗢𝗡𝗧𝗜𝗡𝗚𝗘𝗡𝗧 𝗢𝗡 𝗬𝗢𝗨𝗥 𝗛𝗢𝗠𝗘 𝗦𝗘𝗟𝗟𝗜𝗡𝗚 | This sounds like a great idea, but it’s very difficult to get a contingent offer accepted in the current market if the house you want is a new competitive first-weekend listing. There are various degrees of this contingency:
•Your house isn’t even on the market and still needs to be listed
•Your house is listed but not UC
•Your house is UC but isn’t past inspection
•Your house is UC and closer to closing.
The further you are in this sequence, the stronger your contingent offer will be…however a contingency is sometimes a deal-breaker for sellers looking for a quick close or a high degree of certainty, and most sellers will likely want a significantly higher offer price and/or aggressive contract terms to take on the risk of a contingency due to the domino effect it creates in everything going right in the multiple transactions.

Costs of Buying

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So, you want to buy a house…the first expense that likely comes to mind is your down payment. And while that is a big chunk of change, there are other costs to account for when saving money for a new home search. My philosophy has always been for buyers to be as prepared as possible before diving in and a huge aspect of that is accurate + realistic expectations on the financing side of things…so here is what you can plan on:

+ 𝗘𝗮𝗿𝗻𝗲𝘀𝘁 𝗠𝗼𝗻𝗲𝘆. Typically 1-2% of the purchase price, and the minimum amount is set by the seller/listing agent. This is due within a few days of going under contract, and is a good faith deposit to show that you are serious about the purchase and have some skin in the game. This is not any additional cost, as it is applied towards your down payment + closing costs at closing.

+ 𝗜𝗻𝘀𝗽𝗲𝗰𝘁𝗶𝗼𝗻𝘀. Inspection fees are paid directly to the Inspector at the time of the service. The cost will depend on the square footage of the home, and any additional inspections you choose to add on (sewer, radon, structure, etc). Expect to be in the ballpark of $500-$600 on average.

+ 𝗗𝗼𝘄𝗻 𝗣𝗮𝘆𝗺𝗲𝗻𝘁. Minimum DP on a conventional loan is 3%…but many buyers choose to do more. Your down payment will affect your monthly payment, interest rate + mortgage insurance. In addition to those considerations, evaluate how important it is to have cash in hand vs invested in a home. Your lender should show you several options so you can make the best decision for your specific situation.

+ 𝗖𝗹𝗼𝘀𝗶𝗻𝗴 𝗖𝗼𝘀𝘁𝘀. The majority of this amount will be setting up an escrow account to pay for your annual taxes and homeowners insurance. You will also have various fees like an appraisal fee, a loan origination fee, a title closing fee, county deed recording, etc. Your lender should give you a very close estimation for this so there are no surprises, but generally they total about 1-2% of the purchase price.

My recommendation is to chat with a lender sooner than later so you can find out what your options are and save money + plan accordingly!

Choosing Your Listing Agent

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A house will be the most expensive thing you ever sell, which is why the agent you choose to help guide you through and manage the process for you is so important. It’s no secret that Denver is a seller’s market, but that definitely doesn’t mean that that corners should be cut when prepping a house for sale, maximizing marketing + listing a home!

It makes me cringe 𝗦𝗢 𝗕𝗔𝗗 when I see a house listed for half a million dollars plus with crappy iPhone photos that an agent took themselves…
or show a house that has had zero prep work done and it’s dirty or full of clutter…
or try to get in touch with an agent because my buyer wants to give their sellers an amazing offer and get no answer.

𝗡𝗼𝘁 𝗮𝗹𝗹 𝗥𝗲𝗮𝗹𝘁𝗼𝗿𝘀 𝗮𝗿𝗲 𝘁𝗵𝗲 𝘀𝗮𝗺𝗲. Did you know that individual agents can pick and choose which investments they make to market your home + have a different approach with how they manage inquiries and offers once your house is listed?

I’ve thought a lot about how I can provide the most value to the sellers I work with. Here are a few things I do for all of my listings to help ensure my seller’s homes reach the most buyers, are presented at their best + sell for the highest price:

+ 𝗣𝗿𝗲-𝗹𝗶𝘀𝘁𝗶𝗻𝗴 𝗰𝗼𝗻𝘀𝘂𝗹𝘁 to discuss recommended updates, repairs, or to-dos
+ 𝗦𝘁𝗮𝗴𝗶𝗻𝗴. Worthy of it’s own post, but we don’t live in our homes the same way as we should show them
+ 𝗣𝗿𝗼𝗳𝗲𝘀𝘀𝗶𝗼𝗻𝗮𝗹 𝗱𝗲𝗲𝗽 𝗰𝗹𝗲𝗮𝗻. Moving is stressful enough without devoting hours to cleaning
+ 𝗣𝗿𝗼𝗳𝗲𝘀𝘀𝗶𝗼𝗻𝗮𝗹 𝗲𝗱𝗶𝘁𝗼𝗿𝗶𝗮𝗹 𝘀𝘁𝘆𝗹𝗲 𝗽𝗵𝗼𝘁𝗼𝘀 to make a home stand out and show it in it’s best light
+ 𝗘𝘅𝘁𝗿𝗮𝘀 to cater to the digital world we live in like a 3D walk-through, floorplans + neighborhood photos
+ 𝗧𝗮𝗿𝗴𝗲𝘁𝗲𝗱 𝘀𝗼𝗰𝗶𝗮𝗹 𝗺𝗲𝗱𝗶𝗮 𝗮𝗱𝘀. I have a great proven strategy to reach buyers and generate interest outside of the MLS and housing websites
+ 𝗔𝘃𝗮𝗶𝗹𝗮𝗯𝗶𝗹𝗶𝘁𝘆 to both agents and prospective buyers to convey the seller’s needs/wants and negotiate to get them an offer they love