Denver Metro Real Estate Continues All-Time Records as Demand for Home in COVID-19 Increases

With months of inventory dropping to an even more historic low, the most coveted gift this holiday season is a new home.

In November, the Greater Denver Metro housing market continued to boost all-time records, with median days in MLS for detached single-family homes at a very speedy five days, representing a tie of the lowest number on record, having seen five days only five times ever before.  

Active listings for both attached and detached single-family homes came in at 3,415, surpassing the previous low set in December 2017 of 3,854. There was additionally a record-high for November average close price for combined single-family detached and attached properties, and detached single-family homes at $549,756 and $615,766 respectively. The previous record for combined single-family detached and attached properties was in 2019 at $486,012. 

While the holiday months do generally see a decline in inventory, months of inventory this particular November hit another record-low at just .71, easily beating October 2020’s former lowest record at .81. For the single-family detached market, Denver only had 1,755 houses currently available for sale, representing just .51 months of inventory. This means, in theory, if no houses were put on the market for two weeks, there would be nothing left to sell.

2 Colorado Cities Among Money's Best Places To Live In 2020

Colorado is once again home to two of the 50 best places in the United States to live, according to a new ranking by Money Magazine. The annual list, released last week, ranks communities based on factors such as safety, cost of living and diversity.

Out of communities on this year's list, Parker ranked No. 2, and Broomfield ranked No. 18.

To determine this year's Best Places To Live, Money analyzed a list of 1,890 communities with a population of at least 25,000. The publication then analyzed 115 separate data points on each community's economy, housing market, education system, employment, weather and more.

Reporters then researched each location to ensure the statistics were an accurate representation of each community. 

Here is the top 20 list:

1. Evans, Georgia
2. Parker, Colorado
3. Meridian, Idaho
4. Rockwall, Texas
5. Columbia, Maryland
6. Westfield, Indiana
7. Syracuse, Utah
8. Franklin, Tennessee
9. Woodbury, Minnesota
10. Morrisville, North Carolina
11. Ashburn, Virginia
12. South Windsor, Connecticut
13. St Peters, Missouri
14. Chelmsford, Massachusetts
15. Menomonee Falls, Wisconsin
16. Mount Laurel, New Jersey
17. Woodstock, Georgia
18. Broomfield, Colorado
19. Abington, Pennsylvania
20. Midlothian, Virginia

Summer Denver Metro Neighborhood Price Map!

This awesome Neighborhood Price Map tells you--by neighborhood--average sold prices, number of houses on the market, under contract, and sold, and months of inventory, so you can understand exactly how hot each neighborhood is and what activity is going on!

Click on the map and zoom in!

Jonathan Ghaly was #7 of 2,500 agents at HomeSmart in volume production!

Not all realtors are the same! 

Jonathan Ghaly was #7 of 2,500 agents at HomeSmart 

in volume production this June!

Denvernomics: 10 Fascinating Fast Facts That Show Denver is Not in a Bubble

1. In 2006 Metro Denver had 7 months of supply inventory, which means it would take 7 months for the amount of buyers then to buy all the homes that were for sale. Today there is 1.2 months of inventory. A balanced market is 6 months of inventory. 1.2 months means tons of demand, and scarce supply. Before the recession we had tons of supply, little demand. 
2. From 2000-2006 homebuilders built 47,000 too many homes based on population growth, but since 2007 because many builders stopped building during the recession, builders are behind by 67,000. Building and development take twice as long today as it did 10 years ago, so builders are not keeping up. The average household in Denver is 2.5 people. The population increase of 120,000 people in the last 2 years means 48,000 new units were needed to be built. Builders only built 30,000 new units in the last 2 years. Demand for new housing is 60% greater than the supply of new homes. 
3. The foreclosure filing rate today is 95% lower than it was a few years ago. There are very few distressed sales. 
4. Just last year 103,000 people moved to Metro Denver. There has been an average of 45,000 population increase in Denver since 1994. The Colorado state demography office has determined growth by at least 50,000 people per year for decades to come. 
5. The unemployment rate is under 3.5%. It is very easy and attractive to become an entrepreneur in Colorado, and many people are taking advantage of that and being successful. 
6. There has been an average income growth of 5% in last 2 years.
7. Rental rates have dramatically increased in the last 5 years, and have doubled in the last 10. An average of 1200-1500 people are moving to Denver each WEEK. 
8. Mortgage rates are at record lows, at 3.45% right now, at the lowest rates since banks started lending in 1900.
9. Lenders since 2010 have been extremely strict on qualification per new government and industry regulations caused by bad lending before the recession. The buyers who have bought since 2010 are very well qualified. 
10. There are 800,000 millennials and counting in metro Denver. And 350,000 of them are living with their parents! This is a whole wave of buyers and renters who are going to flood the market soon in the next few years, so even if 50,000-100,000 people stop moving here (which will not happen) millennials will be more than enough to absorb supply. 

Our Denver real estate market as like a teeter totter: imagine on the demand side is a huge hungry japanese sumo wrestler, and on the supply side a very skinny model. The sumo wrestler's diet is population growth and people moving to Denver, and economic growth. The skinny model's diet is essentially more housing supply and more vacancies. With Denver's economy right now the model is starving, and the sumo wrestler is gorging. For the teeter totter to balance or go the other way, the sumo wrestler has to stop eating his diet and the model has to start eating her diet. Until either or both events happen our real estate market will not change.

Welcome to Denvernomics with The Denver House Guy :)

(Some of this material is taken from notes in economic trends classes I took from Lon Welsh and Lonnie Glessner)

Buyer Cheat Sheet for a Seller's Market

In a seller's market, home buyers need to be willing and able to act fast to snag the home they want. This spring, areas across the country are facing a limited number of homes for sale. Realtor.com® offers up a cheat sheet for surviving a seller's market.

• Be on call. "If you're only looking now and then when it's convenient, you're probably wasting your time," says James Malmberg, a real estate professional in Sherman Oaks, Calif. He suggests treating house hunting like job hunting. If someone calls with a lead, follow up promptly to gauge whether it could be a good fit and don't linger.

• Bring the paperwork. To be taken seriously, buyers would be wise to get a mortgage pre-approval letter as well as a "proof of funds" form from their bank to show they have enough to cover a down payment. They'll be able to act quicker when they do find the right house.

• Limit the contingencies. In a seller's market, buyers may need to drop some of the contingencies to score the house. Sellers prefer the fewest number of hurdles to closing as possible. If your buyers come in with several contingencies - such as "if" they secure financing - the sellers are more inclined to bypass their offer and take another with less hassle. Also, "don't waste your time lowballing a seller," advises Sean Kelley, a real estate professional with Howard Hannah in Pittsburgh, Pa. "Always put in an aggressive offer."

• Cast a wide net. Search for homes outside prime locations if faced with limited or high-priced choices. Buyers need to carefully consider what they're willing to compromise on. "Sometimes properties sit, even in a seller's market, because of a problem that is scaring other buyers away," such as some renovation work that may need to be done, Malmberg says. Those "flaws," however, might not be a big deal to your buyers. "Finding a house this way can also cut down on the amount of competition you will face," Malmberg adds.

Source: RealtorMag

5 Basement Renovations 

that Pay Off 

With homeowners using their basements for laundry, exercise and storage, aesthetics are usually a secondary concern. How can you update the looks of your basement? Here are a few ideas worth exploring:

#1 Enhance the Floor

Floors in busy areas eventually end up in bad shape. A new floor will tremendously enhance the appeal of your basement. The costs of a new floor are less expensive than most homeowners assume. Vinyl floors are affordable, tough and require little upkeep. Apply an epoxy coating for an even cheaper flooring option. Several coats of epoxy make even the roughest floors look new.

#2 Add Shelves

Clutter undermines the look of any basement. Adding shelvesto your basement walls will help organize clutter and contribute tremendously to its overall look. Varnished wood shelves add an additional shot of style to your basement.

#3 Utilize Waterproofing Strategies

The presence of water in your basement causes rotting wood and corroded plumbing fixtures. Cracks in your basement wall can also expand, potentially damaging your foundation. Call a waterproofing professional if you notice leaks in your basement. Failure to address a leak can result in major damage and costly repairs to your home.

#4 Improve the Stairs

Change the look of your basement staircase for a dramatic improvement in looks. If the stairway is enclosed, knock down the wall to create an open staircase. Replace the old stairs with newer wood and install a decorative banister for an added shot of style.

#5 Build a Small Kitchen

A basement has water, electrical and gas lines that are useful in a kitchen remodel. Generally, a kitchen by itself would seem odd in a basement. But, if your basement is already designed as an entertainment room, the addition of a kitchen makes perfect sense. A stove and a refrigerator will cut down on going upstairs for snacks.

Source: RealtyTimes

Five Smart 

Homebuyer Strategies

The National Association of REALTORS® has announced that there's a housing supply shortage. Homes are selling quickly and home prices are starting to inch up again. It's becoming a seller's market in many areas.

Any time the market changes, it's time to change strategies. During a buyer's market, buyers have the upper hand and can make more demands to sellers over their homes' price and condition. During a sellers' market, buyers concede the upper hand to sellers and are more willing to accept higher prices and terms.

When homes are in short supply, buyers don't have the luxury of taking their time, teasing sellers with lowball offers, demanding that every little thing be fixed, and shopping for homes with multiple real estate agents. Do these five steps instead.

Make a good first impression. Not only do you need to impress sellers, you need to impress real estate agents. Hire one agent and let him or her profile your needs to the marketplace. Be specific about your must-haves so you don't waste your agent's and your time viewing homes that lack what you want most. When you find the home you want, send the seller a letter along with your offer outlining why you love the home.

Get preapproved by a lender. Not only will you know how much home you can buy, you'll be ready to make an offer quickly. Your real estate agent can include the fact that you're financially preapproved by your lender in with the offer, which will carry weight with the seller.

Shop within your price range. In a seller's market, it's wise to shop for homes within or slightly below your price range. This will give you more room to make full-price offers or above in case the home you want is in a bidding war with other buyers. You'll be able to pay your own closing costs. Trying to buy a home out of your reach during a seller's market will only cause you and your agent frustration.

Be flexible.

No home is perfect. To get more home for your money, you might shop for an older home that needs renovation. Try to look past ugly wallpaper and stained carpet and visualize the home with more attractive finishes. You may be able to get more living space in an established neighborhood than with a newer home that is priced higher for similar square footage.

Be ready.

Be ready to see a new listing at a moment's notice. Be ready to make an offer when you believe this is the right home for your household. Once a seller has accepted your offer, proceed as if you're in a normal market. Set a reasonable closing date that accommodates the seller as much as possible. Confirm the offer with your lender. Schedule the inspections you'll need and don't nitpick the seller over small things.

Whether you're in a buyer's market or a seller's market, you should feel good about the home you choose, the deal you make, and the courteous way you treated all parties to the transaction.

Source: RealtyTimes

The Best Visual Guide for Buying a Home

The Best Visual Guide for Buying a Home on Prezi