Category Archives: Current Events

Foreclosure Status Distribution for Colorado

Buyers looking for a good deal always want to know about Foreclosures.  Whether they are a good deal or not depends on many things.  Typically the best deals are found when the market is flooded with houses, both from “normal” sellers and bank inventory.

Once our market was flooded with inventory, but that’s not true of late!

Colorado Foreclosure filings are down when compared to last year.  Each month the filings for foreclosures decreases from the month prior.  This is a trend, as our market improves the number of foreclosure filings will decrease.

WHY? Because when people want/need to sell their homes, they will have sufficient equity in them thanks to the raising values in the neighborhood.

The tide will rise the underwater homeowners benefitting them with equity. They won’t have to default to get out of their homes.

The Top 5 Cities with # of foreclosures to population (August 2014):

Byers 1 in every 236

Aurora ~ 1 in every 572

Littleton ~ 1 in every 791

Englewood ~ 1 in every 858

Denver ~ 1 in every 2493

National vs Denver Homes for Sale

Denver real estate is getting rare, rarer by the minute!  Take a look at how we measure up to the rest of the U.S.

Denver Real Estate Inventory vs the U.S.

Months of Inventory

The rest of the country had about 6 months before they would run out of homes to sell, that is assuming no other homes came on the market.  Denver has about 6 weeks before it runs out of  homes to sell.  Thankfully we never run completely out, because home owners are constantly putting their homes on the market for sale.

If you are a buyer you are probably watching the market very closely for a  new listing to appear.  Sometimes that wait seems like an eternity!

Here’s what happened in Denver over the past 24 hours…

What is happening in Denver real estate today

24 Hours of Denver Real Estate Activity

Each day I take a glance at the statistics and they continue to indicate a very strong seller’s market.  If you are a seller, now is a good time to put your home on the market.

We Realtors have buyers waiting. It’s sorta like the old saying on TV, “operators are stranding by!”

The Economic Impact of Selling a House

EconomicImpact-DenverRealEstate-KristalKraft

When a home gets sold the impact goes far beyond the buyer and the seller.  The local economy is stimulated by the sale.  A few of those who are impacted are:

  • Home Builders and/or General Contractors
  • Real Estate Brokerages
  • Mortgage Lending
  • Title Insurance
  • Rental and leasing
  • Home appraisers
  • Moving companies/rental truck agencies
  • Home inspectors
  • Home stagers

Home ownership provides stability for the country.  Locally the economy is impacted at macro level, where local business people can continue to operate their businesses, pay for their kid’s soccer/swim/dance lessons, buy groceries, pay their mortgage, take vacations and contribute to their own neighborhoods.

Homeowners create financial security by paying their mortgage and over time developing equity in a home rather than renting and creating equity for a landlord.

How does Colorado rank ?

In Colorado the impact of a home sale is $67,000, well above the country’s average of $52,205.  Why?  I like to think it’s because people love living in Colorado as much as I do.

I know, it’s hard to be humble when you live at the foot of the Rocky Mountains.

A Comparison of Denver Real Estate vs. National Inventory

OK so this week I’ve been raging on and on about the lack of housing inventory in the Metro Denver Real Estate Market.  Sorry, but the fact remains we are selling more homes than we are listing!

Across the Nation there is an inventory shortage, but Denver’s shortage is even more severe.

Interesting comparison!

Market Watch Metro Denver

This past weekend I worked with 4 separate buyers.  Sounds exhausting?  Well it was, but not how you would think.

Typically when working with a buyer you set appointments, probably 5-7 on homes that might fit their budget and other criteria.  Well those days are past.  Now we are lucky to see that many homes in one outing.  The most homes I showed to one buyer this weekend was 4!  That’s because that’s all there were!

Buyers are Soaking up the Housing Inventory!

What’s happening in the Denver market?  We have a shortage in inventory and an abundance of buyers.  Our inventory is getting soaked up by anxious buyers wanting to become home owners before the interest rates go up.

Take a look at the 7-day stats for these Metro Denver Counties, look at the number of listings taken vs. the number of Under Contract.  That should explain why finding homes to look at is so difficult right now.

Sales Activity in Metro Denver Counties over the last 7-Days

MarketWatch-Denver

City and County of Denver

Jefferson County

Jefferson County

Elbert County

Elbert County

Broomfield County

Broomfield County

MarketWatch-Arapahoe County

Arapahoe County

Adams County

Adams County

 What Does This Mean for Buyers?

If you are in the market to purchase a home, you will need to be ready.  Many homes are receiving multiple bids that means buyers who are qualified to buy and can prove it will win the bid.  Bidding wars can be brutal but have become a fact of life in the Denver real estate market, so be ready to bid over list price.  If you are a buyer who has a contingency ( a house to sell) sell your home and remove that contingency.  The reality is, the home owner is going to pick the BEST bidder from all the offers. The best may or may not be the highest net to them.  Sellers want to be assured their home will sell, so they look at many factors, including the buyer’s ability to sell, contingencies and net proceeds.

What Does This Mean for Sellers?

After many years of getting beaten up sellers are finally in the driver’s seat when it comes to negotiation.  Sellers are enjoying the luxury of very few days on market, multiple offers, over list price offers and quick closings.

Still sellers need to beware that many buyers will over bid your home knowing it won’t appraise.  If the buyer doesn’t have the means to pay the difference you won’t be enjoying that extra cash from the sale of your home.  If this is the case be sure your buyer has the ability and is WILLING to pay the difference. If they aren’t able and not willing their offer is just a cloud of wishful dust.  All you will have to show from this contract is wasted time!

What Does the Future Hold?

At this rate I am wondering if in April we will reach a point where there are ZERO listings to sell?  Is it possible?  I certainly hope not.

What do you think? Will we run out of properties to sell or will sellers decide to get into the market?

By the way out of my 4 buyers I found homes and went under contract for two of them.  The other two are still in the market.  We will continue our search!

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