Hot or Not?

Here's Your Market Pulse
from Denver Metro Association of Realtors

While the headlines are correct saying the market is slowing and housing is softening.. I have a better headline, one that in the context of the DMAR Market Trends Data released December 5th is still correct.  That headline is WIN-WIN. This is a great market, in fact a winning market for both sellers and buyers.   

Sellers have been blessed with strong appreciation since 2012.  Some years double digit appreciation.  So if you are considering selling that home and moving into the home of your dreams or cashing out and optimizing your equity, now is the time.  We are starting to see a seasonal slowdown, a move towards a balanced market.

So as the market shifts (month over month median home prices slowed slightly by 1.25%, average home prices down by 1.64%) now is a great time to sell and take advantage of the equity in your home.  Year to date 2018 we have gained 8.68% on average; this is incredible wealth gain for any investment.

Sellers: there are still buyers out there!  In fact, last month 3,964 homes went under contract compared to 3,909 new homes listed.

Buyers: As a perspective, the current Freddie Mac average rate is 4.81.  One year ago, it was .91% lower.  That change in rates costs an average borrower 11% more every month in their monthly payment.  Freddie Mac is estimating rates will go up to 5.5% next year.  This in turn will cost a borrower 8% more every month.With future appreciation opportunities at today’s interest rates and prices, buyers have the opportunity to gain incredible wealth.  

This is not the time to sit on the sidelines; but jump in as buyer, seller, or both as we edge into a balanced market.

Need help figuring out where to take friends and family this holiday season?

Check out these great DECEMBER WINTER EVENTS!  DENVER CHRISTKINDL MARKET WHEN: Nov. 16–Dec. 23, 2018 WHERE: Skyline Park The Christkindl Market includes vendors from Germany and other countries, as well as local artisans, offering high-quality, handcrafted gifts such as traditional hand-carved wooden figurines, handmade candles and ornaments. Traditional German food will tempt your taste buds. Sip on warm Glühwein (hot spiced wine) as you listen to traditional Christmas carols and live German music. Entry is free and the entire family is invited to enjoy this great tradition!    ICE SKATING AT DOWNTOWN DENVER RINK AT SKYLINE PARK  WHEN: Nov. 20, 2018–Feb. 3, 2019 WHERE: Corner of 16th and Arapahoe Take a spin on the ice — for free! Grab your family and friends and head to 16th and Arapahoe in downtown Denver to the Downtown Denver Rink at Skyline Park in Downtown Denver! Skate rentals are $6-$8, or bring your own pair and skate for free. Free days for kids will take place throughout the season. Look for regularly scheduled entertainment and activities each week, including: Friday night DJs; Saturday morning skating lessons; Saturday night concerts; and Sunday afternoon family entertainment.   SANTA'S VILLAGE AT CHATFIELD FARMS WHEN: Nov. 23–Dec. 23, 2018 WHERE: Chatfield Farms Botanic Gardens Explore Chatfield Farms as it is transformed into a magical village. Santa's Village is a family-friendly holiday event including hayrides, holiday gifts, Santa’s Workshop and so much more.   A HUDSON CHRISTMAS WHEN: Dec. 7–9, 14–24 and 26–31, 2018 WHERE: Hudson Gardens & Events Center Bundle up for a visit with Santa at Hudson Gardens in Littleton. After sharing your list with Ol' Saint Nick, sip hot chocolate as you stroll the outdoor paths lined with trees decked with more than a million twinkling lights.   BLOSSOMS OF LIGHT WHEN: Nov. 23, 2018–Jan. 1, 2019 (includes Dec. 24, 25 and 31) WHERE: Denver Botanic Gardens Embrace the holidays with thousands of colorful lights draped in elegant designs at Blossoms of Light. The 2018 event will be brighter and bigger than ever before, with sound-reactive LED lights and carolers on select evenings. Warm drinks and tasty treats and seasonal entertainment will be available, and thousands of lights in the gardens' amphitheater are synchronized to your favorite holiday tunes.   ICE SKATING RINK WHEN: Nov. 23, 2018–Jan. 6, 2019 WHERE: Denver International Airport Got a flight to catch? Head to Denver International Airport a little early and enjoy a free spin around the airport's ice skating rink!   ZOO LIGHTS WHEN: Nov. 30, 2018–Jan. 6, 2019 WHERE: Denver Zoo Zoo Lights will span 70 acres of Denver Zoo's campus with nightly entertainment, animal encounters, Santa meet-and-greets and, of course, illuminated animal sculptures that swing through trees, jump across lawns, hide in bushes and appear in places where they’re least expected.   SCRAMBLIN' SCROOGE 1M/5K/10K & YOUTH FUN RUN 2018 WHEN: Dec. 15, 2018 WHERE: City Park Scramble along with Ebenezer Scrooge at this professionally timed race, which benefits Denver Children's Home. There's even a Scrooge costume contest to crown the best worst humbug of them all.

Did you know that the Denver Christkindl Market has been going strong for 14 years?  It is definitely a staple tradition that should not be missed.  I always feature it on my seasonal magnet mailer that goes out to past (and future!) clients.  Fun Fact: German Christmas markets date back to the 14th century. Originally, the fairs provided only food and practical supplies for the cold winter season, but soon the markets became a beloved holiday tradition and a great way to get into the holiday spirit.  If you're a Colorado resident and don't currently get my magnets, shoot me a quick email with your address and I will put you on the list!

So Denver got rejected as Amazon's Headquarters.... now what?

Denver, and other Amazon HQ2 rejects, could see even higher home value growth in the next year, experts says

Denver didn't get Amazon's HQ2, but what it may end up getting is higher-than-normal home value growth.

In the next year, a handful of metro areas that competed for Amazon's second headquarters are expected to outperform the national rate of home value appreciation, according to 2018 Q4 Zillow Home Price Expectations Survey.

Denver, Washington, D.C., Atlanta and Dallas were named as the four markets most likely to see this, according to the survey. All four were among the 20 finalists for the Amazon (Nasdaq: AMZN) HQ2.

"The quarterly survey, sponsored by Zillow and conducted by Pulsenomics LLC, asked more than 100 real estate economists and investment experts for their predictions about the U.S. housing market, including which three markets they believe are most likely to outperform the U.S., and which three are most likely to underperform in 2019," a release from Zillow Tuesday said.

Denver got the second-most votes for over performance in the survey, second only to Washington, D.C., a winner of HQ2. In addition, VEROS Real Estate Solutions is predicting that metro Denver home prices will rise by 9.5% from Fall to September 2019.

Nationwide, home values have increased 7.7 percent through the first ten months of 2018, while Denver has only seen a 6.2 percent increase, according to Zillow. Boston, a finalist for HQ2 and Washington, D.C., also lagged behind the national average rate so far this year, according to Zillow.

"Many of the candidate cities that were not ultimately selected could see spillover gains in 2019," said Zillow senior economist Aaron Terrazas.

Commercial development opportunities that had been proposed as sites for Denver's bid to get Amazon's HQ2 also remain on the market in many of Denver's suburbs such as Sterling Ranch, Commerce City, Lone Tree, Thornton and Louisville.

-Denver Business Journal