Category Archives: Current Events

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!

Call direct 720-279-4599

Metro Denver Named among Best-Performing Cities

October Sunrise ~ Kristal Kraft

October Sunrise ~ Kristal Kraft

The Milken Institute December report for the Best-Performing Cities where jobs are created and sustained included Denver-Aurora-Broomfield, Colorado.

Milken measures many factors to compile the list. They gauge the metrics of job, wage, and technology trends shaping both the current and future economy.

The good news is, Colorado is home to four cities that made the list. In addition to Denver-Aurora-Broomfield, Boulder, Greeley andFort Collins-Loveland received a positive nod.  All cities moved up in rank over their positions from 2012.

The report quotes  Denver-Aurora-Broomfield Assets as:

Assets:

  • Attractive business climate, skilled workforce, and strong international links.
  • Diverse high-tech industry mix triggering high growth.

Liabilities:

  • Weakening global economy could restrain growth of high-tech products such as semiconductors.

The report stated Denver-Aurora-Broomfield has a “relatively diverse mix in the high-tech industry.”  The key industries in Metro Denver are telecommunications, aerospace, and manufacturing.

The economy is Metro Denver is healthy not just because our industries are doing well, but because our residents WANT to live here.

Colorado ~ Best Places to Live

Best Places to Live - Colorado by CNN Money Magazine

Best Places to Live – Colorado by CNN Money Magazine

CNN Money Magazine compiled a list of the Best Small Cities to Live in the U.S.  Colorado scored on 5 places out of 100.  Two of those were in Douglas County, Highlands Ranch and Castle Rock are great “small cities” with lots of amenities, including being part of Metro Denver.

Also noted was Highlands Ranch as a “top earning town” with an average income of $117,523 which is well above the Best Places overall average.

Highlands Ranch Real Estate

Demographic Statistics for Highlands Ranch, Colorado

Castle Rock Colorado Real Estate

Demographics for Castle Rock, Colorado

Centennial which is located in Arapahoe County Colorado was also recognized as having an excellent quality of life.  Centennial is known for being in the Cherry Creek School District and having one of the busiest private jet airports, Centennial Airport in the country.

Demographics for Centennial, Colorado

Demographics for Centennial, Colorado

Also on the list were Ft. Collins and Boulder, both college towns worthy of mentioning.

 

Population of Metro Denver Small Cities

Population of Metro Denver Small Cities

 

 

Craigslist Scammers are Alive and Very Busy!

The popularity of Craigslist is well known. It is a wonderful place to buy and sell a wide variety of items.  I’ve used it myself on many occasion with much success.  Sadly not everyone who uses Craigslist to promote items for sale or rent is honest and trustworthy. CraigslistScammer1 There’s no shortage of warnings on the site.  If you follow the link at the bottom of every ad posted on Craigslist, it will warn you of all the things you need to be careful doing! House rental ads on Craigslist are suspect.  Sadly, many are real but many are not.

Let me share a story with you that happened to me very recently.

I listed a home for sale.  A couple days later I received a call from a woman wanting to know if the property was “for sale or rent.” The minute she asked I knew exactly what happened.  It happens with great regularity, it’s very predictable.

The lady went on to explain to me how she became suspicious.  She found the ad on Craigslist, the rental rate was really great so she responded to the ad.  She received an email back explaining the circumstances of the rental.  Some of the language was suspect, so she decided to drive by the property. 

As she was parked out front she noted there was a dog inside the home.  This is when the story didn’t mesh.

Read the Craigslist Scammer’s letter:

Hello,

Thanks for your interest and inquiries about my house. Yes the house is still available for rent and we are looking for a responsible person/family to occupy and maintain the house now that we are not around. My wife and I just traveled to West Africa for a program called SERVING IN MISSION (SIM), you can view the link for more info: (http://www.sim.org/index.php/content/our-purpose).

We will be away for 2 to 3 years or more that is why I have made up my mind to put up my house for rent to whom ever that will take good care of it. However, my initial plan was to sell the house but it was not successful because the Realtor raised the price which made it difficult for me to sell before leaving the States so never mind if you see the for sale sign in front of the house, It has already been taken off the market as for sale so there is no need to contact any Realtor.

Also how long do you intend to stay? How soon do you intend to move in?

FEATURES: Laundry, Electric Range, Electric Heat, Master Bedroom, Playground, Car Park.
AMENITIES: Air Conditioning, Patio/Party Deck, Cable TV, Ceiling Fans, 24 hours Internet service, Dishwasher, Fireplace, Garbage Disposal, Microwave, security alarm, Pets Friendly, Refrigerator, Washer / Dryer.

DETAILS ABOUT THE HOUSE..
Number of bedrooms: 2
Number of bathrooms: 1
Date Available: Asap
Sq-Ft : 1640ft² 
Rental Price: $700 per month and security Deposit is $700 (Security Deposit is Refundable) Utilities included in monthly rent.
Total Move In Cost: $1,400
Pets are Welcome.
Below is the address to the house:
(1(redacted)S St, Denver CO 80210)

Get back to me so I can forward you the rent questionnaire I would like you to fill out.

You can call or text me on (011-234-812-357-9910 or +234-812-357-9910)

Regards.
Mr & Mrs B(redacted for privacy)

The email sounds very sincere, the writer took the time to illustrate all the amenities in the house, sadly for him/her he wasn’t using American English terms.  Even at that, it’s still somewhat believable.

The amount of rent is very low, probably 1/3 of what this house would rent for in this neighborhood.  It was low enough that the actual owners would like that deal!

The comment about the “Realtor raised the price making it difficult to sell.”  A sophisticated person would know that Realtors are not able to “raise the price” without seller authorization!

He/she next invalidates the fact their is a sign in the yard.  Basically created mistrust of the listing agent, because he/she knows most people will drive by the house if possible.

To further evoke trust the scammer took the time to look up ownership records, they used the actual owner’s name.  In addition they created an email account with Yahoo using this name again.  Anyone checking ownership (which is a matter of public record) would think this must be the real thing!

It’s not.

The barking dog left behind by the couple who moved to Africa, just didn’t jive.

I appreciate the lady who initially called, sharing with me her email from the Scammer.  She and I were outraged.  So were the 40 or 50 others (I lost count) who called over the course of the next few days.

Everyone I spoke to would flag the Craigslist ad, but as soon as they did, another would pop up.

Obviously this is a scam that works, sometimes.  If it doesn’t work, why would the scammers spend so much time trying to scam innocent people?

When it comes to deals on Craigslist, it is best to remember what your Mother probably said, “If it seems to good to be true, it usually is.”

Call direct 720-279-4599