What do these numbers mean? To help understand what these numbers mean to our local markets we are now including the number of sold comps during the past 30 days or 1 month.  Looking at our sold numbers over the past month allows us to calculate a monthly absorption rate.  An absorption rate tells us how many months it would take to sell off our entire inventory should we have no new listings.  A balanced market is considered 6 months.

Buyer Activity Picked Up in October
November 8, 2023

High mortgage rates and elevated home prices continue to impact the Denver metro housing market. The national average 30-year mortgage rate spiked to a 23-year high at the end of October, according to Freddie Mac and the median price for a Denver area home inched up 2% to $580,000. As a result, home sales lagged for the second consecutive month. The number of home closings was down 6% from last year. Year to date, home sales in the 11-county metro area are down 19% from last year.

In October, Denver Metro sellers added 3,803 new listings to the market, 1% fewer than last year. The number of new listings was down 17% from last month.

On a positive note, buyer activity picked up in October. The number of listings that moved into Pending status in the MLS was 1% higher than last year and 5% higher than last month. Those listings moved off the market in a median of 17 days. Listings are staying on the market a bit longer, which is helping inventory levels inch up. At the close of the month, there were 7538 listings actively available for sale.

The rental market took a breather in October. Throughout the month, 294 properties were leased using REcolorado MLS, 4% less than last month and 1% less than this time last year. The median leased price for those properties remained relatively flat.

Special thanks to Denver Metro Association of Realtors for the market stats/narrative.

The post Denver Metro 6 County Inventory Count appeared first on NeXstep Real Estate Group.

Why NOW is the BEST Time to Buy

Housing appreciation remains strong with home prices continuing to rise. Even amidst the recent 8%+ interest rates, home values have continued appreciating. Q3 2023 showed all-time high readings in home values, with the annual appreciation rate on track for a 6% increase.

The post It’s never been a better time to buy! appeared first on NeXstep Real Estate Group.

Step One: Determine the subject properties jurisdiction.  To view an interactive map CLICK HERE…

Step Two: Determine the properties Occupancy Limits.  The maximum occupancy for a property is two people per bedroom plus two people. All reservations and advertising needs to comply with the maximum occupancy for the property. The number of bedrooms for a property is determined by the Summit County Assessor’s Office.  For example a two bedroom property would allow 6 people per stay.  To confirm the official bedroom count CLICK HERE…

Step Three: Research the local STR rules and license requirements.  Below is a summary and linked websites to help break down these different requirements:

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Breckenridge: Short Term Rental Caps and Zoning Restrictions.  A short-term rental property is defined as “a residential dwelling unit, or any room therein, available for lease for a term of less than thirty (30) consecutive days.”

• Contact Information: str@townofbreckenridge.com or by phone at 970-547-3101.
• Town of Breckenridge Short-Term Rental Complaint Line: 970-423-5334
• Contact:  Bela Del Valle, Short-term Rental Code Enforcement 970-547-3106 or Belad@townofbreckenridge.com
• Four Different Zones in Breckenridge:
  • Resort Zone:
  • Zone One: Tourism Zone
  • Zone Two: Downtown Core
  • Zone Three: Largest Area
• General Info on STR policies, Licensing and Taxes/Fees:  Click Here.
• STR Ordinances:  Click Here.
• Additional STR Ordinances:  Click Here.
• MAP of STR Areas:  Click Here.
• Searchable GIS Map of Zones:   Click Here.
• License Caps and available permits for each zone:  Click Here.

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Blue River: The Town of Blue River has required licenses for all short-term (less than 30 days) rentals since 2013.

• Information and Applications:  Click Here.
• Contact:   Michelle Eddy, Town Administrator 970-547-0545 or michelle@townofblueriver.org

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Dillon: Short term rental licenses took place on March 01, 2022.  If you are renting your residence or part of your residence for a period of less than 30 consecutive days, you are operating a short-term rental. Dillon town limits are not determined by your zip code. The subdivisions of Dillon Valley, Keystone, Summerwood or Summit Cove are NOT in the Town of Dillon. They are in unincorporated Summit County.

• A short-term rental property is required to provide permitted or designated parking spaces at a rate of one space per bedroom plus 1 additional space. If a short-term rental property does not meet the parking requirement, then the property owner will be subject to a STR parking fee of $300 for each space the property is deficient. The parking fee is an annual fee.
• If you have a complaint, call the Short Term Rental Complaint Line (Town of Dillon ONLY): 970-368-7482
• General information & Licensing:  Click Here.
• Lodging Tax Information:  Click Here.
• Contact:  str@townofdillon.com

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Frisco: Anyone renting their Frisco property, or seeking to rent a property in Frisco, for less than a consecutive thirty-day period, is required to have a Short-Term Rental License and should be aware of the town’s regulations for Short-Term Rentals (STR). These regulations apply regardless of how the properties are marketed – through a management company, online through sites like Vrbo and Airbnb, newspaper, or word of mouth.

• License Application & wait-list registration:  Click Here.
• STR Guide & FAQ’s:  Click Here.
• STR Ordinance:  Click Here.
• Town Map: Click Here.
• Contact:  Sarah Schwartz, Short-term Rental/Housing Specialist Sarahs@townoffrisco.gov or 970-668-2571

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Keystone: Keystone is currently transitioning from Unincorporated Summit County to its own Town. Currently licenses are unlimited. It is unknown what Keystone as a Town will implement for STR’s.

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Montezuma – Rentals Not Allowed Under 180 Days

• STR ordinance:  Click Here.
• Town Map:  Click Here.
• Contact:  Sandra Lerner, Town Clerk at townclerkmontezuma@gmail.com

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Summit County (Unincorporated) – Short-Term Rentals Restricted.  Unlimited STR Licenses in Copper Mountain, Keystone *, Tiger Run, and 4 O’Clock and Sawmill Subs in Breckenridge in the Resort Overlay Zone (ROZ). There is a cap on STR’s in all other Neighborhood residential Overlay Zones (NOZ) by Basin in the County. There are two types of Permits: Type I for locals and Type II for STR’s. Type I licenses are available. No new Type II Licenses are available in residential areas of unincorporated Summit County at this time and there is not a waitlist available.

• General Information & Links:  Click Here.
• Current Caps & Available Permits:  Click Here.
• Basin Locator:  Click Here.
• Ordinance:  Click Here.
• Accessory Apartment/ADU Regulations (At the bottom of the Page): Click Here.
• Contact:  str@summitcountyco.gov or 970-668-4186

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Silverthorne: Town of Silverthorne short-term rentals are capped at 10% of the number of units in the majority of Town neighborhoods, Area 1, and 50% of the number of units within the Town Core and Riverfront areas, Area 2. Short-term rentals are not allowed within deed restricted neighborhoods, Area 3. Permits are currently available in Areas 1 & 2.

• General Information: Click Here.
• Map of Zones:  Click Here.
• List of Subdivisions by STR area:  Click Here.
• STR Ordinance:  Click Here.
• Contact:  Mark Leidel, Community Development Manager at str@silverthorne.org

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Park County: The County does not limit STR’s but requires licenses and other items as defined in the ordinance linked below.

• General information: Click Here.
• Ordinance: Click Here.
• Contact: str@parkco.us

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Alma: The maximum number of STR’s in Alma is capped.  Typically there is a waitlist.

• Municipal Code with STR requirements (pages 65-67):  Click Here.
• Municipal Code with maximum of STR units:  Click Here.
• Contact: Any town staff at 719-836-2712

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Fairplay: Short-term rental licenses are capped within the Town of Fairplay. A waitlist could apply.

• General Information and Available Permits:  Click Here.
• Ordinance:  Click Here.
• Contact:  Janell Sciacca, Town Administrator at 719-836-2622 x-102

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Lake County (Unincorporated): Lake County is under a STR moratorium and will not allow any new STR permits for 2023.

• General Info:  Click Here.
• Ordinance:  Click Here.
• Contact:  719-486-2875 or buildingpermits@co.lake.us

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Leadville: STR’s limited to 12% of residential properties in the City. There are 2 classes of licenses. Class 1 is for owner occupied units and Class 2 is for non-owner occupied units. Class 1 permits do not fall under the 12% maximum licenses.

• General info:  Click Here.
• Ordinance:  Click Here.
• Contact:  cityclerk@leadville-co.gov

*How to know if the property is in Leadville or Lake County jurisdiction:
https://lccgis.maps.arcgis.com/apps/webappviewer/index.html?id=b5d103f931524e319cfc7888528119d6

Note: Special thanks to Summit Association of Realtors for providing this information…

The post Summit County Short Term Rental Guidelines appeared first on NeXstep Real Estate Group.

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Our annual shoe drive was a huge success in 2023.  With your help we are proud to have collected 698 pairs of shoes.  Thanks to all our great clients and wonderful neighbors who helped us collect shoes for Soles4Souls! Thank you so much for your support.  We will be back in 2024 and will once again look for your help to support this great cause!  Contact your favorite NeXstep Realtor if you have any questions.  Thanks again!!

HERE’S HOW YOU CAN HELP:
Collect your used shoes for our 2024 shoe drive and help support people in need,  both locally and internationally. All sizes, styles & types of shoes are needed for men, women & children.  For more information on Soles4Souls and to learn more about this great organization CLICK HERE…

CONTACT US FOR SHOE PICKUP
Simply contact us and schedule a pick up during the month of April 2024.  Leave your donated shoes on your front porch and we will come pick them up!  It’s that easy…

The post Thank You 2023 Soles4Souls Shoe Drive! appeared first on NeXstep Real Estate Group.

Realtor Group Holds Eleventh Annual Diamond Circle Awards Celebration, March 31^st at the Hyatt Regency DTC!

Centennial, Colo. – March, 31, 2023 – Carolyn Erickson,  a leading REALTOR® with NeXstep Real Estate of Denver, has been recognized by the South Metro Denver REALTOR® Association (SMDRA) with the 2022 Diamond Circle Club Award for Individual Residential Sales – Two Carat. SMDRA hosted its eleventh annual Diamond Circle Awards at the Hyatt Regency DTC on Friday, March 31, 2023.

In order to become a Two Carat – Individual Member of the Diamond Circle Club, a REALTOR® must have produced between $7-$11,999,999 million in volume or completed between 20-29 transactions.

“We are pleased to present Carolyn Erickson with the Diamond Circle Club Two Carat Membership for 2022,” said Janet Marlow, 2023 President of SMDRA.  “She has demonstrated a sincere dedication to the real estate industry during unprecedented times through dedication, perseverance, and selfless customer service, achieving success regardless of market conditions.  We are proud to have Carolyn as a member of our association.”

SMDRA is a non-profit trade association that provides real estate professionals with the resources they need to help them grow and prosper in the highly competitive real estate business.

A real estate agent is a REALTOR® when he or she is a member of the local, state, and National Association of Realtors, NAR, The Voice for Real Estate and the world’s largest professional association.  The term “REALTOR®” is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS®,  subscribes to its strict Code of Ethics, and holds themselves to a higher standard of business from other licensed agents in the real estate industry. Only real estate licensees who are members of the REALTOR® Association are properly called REALTORS®.

Master of Ceremonies for the Diamond Circle Awards was Scott Peterson, General Council with Colorado Association of REALTORS®.  This event also featured a mobile platform Silent Auction with items donated by SMDRA members and local businesses, with proceeds going to benefit SMDRA REALTORS® Care Foundation.

For more information on real estate services from Carolyn Erickson call 720-470-9069 or email at carolyn@nexsteprealestate.com.  For more information on SMDRA, visit www.smdra.com.

The post Carolyn Receives 2 Carat Diamond Circle Award for 2022 from SMDRA! appeared first on NeXstep Real Estate Group.

Our annual shoe drive is back and we are looking for your help to support this great cause!  Contact your favorite NeXstep Realtor before April 28th and give your old “Soles” a new life.

HERE’S HOW YOU CAN HELP:
Donate Your used shoes to people in need,  both locally and internationally. All sizes, styles & types of shoes are needed for men, women & children.

CONTACT US FOR SHOE PICKUP
Simply contact us and schedule a pick up.  Leave your donated shoes on your front porch and we will come pick them up!  It’s that easy…

About Soles4Souls
Donating your used shoes can make a world of difference.  Whether they’re new or gently-loved, donate your shoes to protect the planet and help lift people out of poverty.  To learn more CLICK HERE…

DEADLINE: WED, APRIL 28TH

The post Give Your Old “Soles” A New Life! appeared first on NeXstep Real Estate Group.

The South Metro Advanced REALTOR(r) Training Designation (SMART) is designed to reward and provide recognition to SMDRA REALTOR(r) members who exceed continuing education requirements as set forth by the Colorado Real Estate Commission.

Available exclusively to SMDRA REALTOR(r) members, the SMART designation is awarded to those who have earned at least 24 SMART points over a calendar year.  Points were awarded to SMDRA classes, including those that did not qualify for Continuing Education credit, and attendance was tracked throughout the year.

You are part of an elite group of REALTORS(r) who are committed to constantly improving their industry knowledge and growing their professional skill set. You are truly dedicated to providing the highest possible level of care and service for your clients. SMDRA is proud to have such diligent and educated agents as members, and encourages other REALTOR(r) agents to follow the shining example set by the SMART designees.

Again, congratulations!

Barbara Snowdon

Education Director

The post Carolyn Receives SMART Designation for 2022 appeared first on NeXstep Real Estate Group.

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Special Thanks to Nicole Rueth with her recent article posted by the Denver Metro Association of Realtors

Did you see the smirk on the face of 2022 as she gave us one last gift on her way out the door? During the last 15 days of the year, rates jumped from 6.125 percent to 6.54 percent. An opening China, a hawkish Japan, confident Americans, a strong workforce, and light holiday trading were all to blame. But I saw the smirk as the door clipped her heels. It is a year that will go down in history as the worst year for mortgage rates in terms of the pace of the rate spike, but maybe it was just the bill coming due, the housing and mortgage market party coming to an end. If you add it to the previous two years and divide it by three, some might argue it was a fair price to pay.

The average Denver home appreciated 44.6 percent, reaching its peak in May 2022. Since then, it has given back 4.95 percent of the gains. Home sales exploded to levels well above anything we’ve seen in the past decade, with 64,000 homes sold in 2020 and 2021 dropping to an average of 60,000 homes sold in the last three years, still well above a Denver 2012-2019 average of 55,194. Rates plummeted well into new all-time lows and stayed there for much longer than any previous period in history. Even if we look outside housing to the stock market, there were gains of almost 50 percent. Add in 2022, and we are still up 20 percent from pre-covid levels.

So, where do we go from here? Well, it’s not going to get worse.

Rates hit their high and came down, inventory locked up, sales dropped, and demand is still pent up. There is a path from here. News cycles in quarter one will pick up year-over-year comparisons, which will look worse, but watch the trends, feel the boots on the ground, and pay attention to inflation, job loss, and rates. The Fed is moving towards raising the fed rate two more times by 0.25 percent each. This is already baked into the market. So it’s on inflation and jobs. When inflation drops further (which it will as supply has loosened up) and when wage inflation is curtailed by job loss, rates will drop below 6 percent, and the mood will change. 2023 will be a renormalizing year. Let’s break down what to expect for home prices, inventory, rates, and demand.

Home Prices

Those markets which appreciated the most, along with an abundance of new construction, will see the biggest corrections. As you know, Denver saw incredible appreciation adding us to the list of least affordable metros to buy. New construction in Denver has also not been scarce, yet as of November, Denver single-family home permits dropped 64 percent from their cycle peak in March 2022. The last time we saw these low permit numbers was in 2014.

This drop-off in new construction, in addition to low existing home inventory, mortgage rate stabilization, and demand recovery, will all support home prices. If you believe that inflation will go back up, the Fed will have to get more aggressive in raising the fed rate, and mortgage rates will increase, slowing demand again, thereby dropping home prices. I don’t believe that. I believe inflation has seen its peak, both locally and globally. Rates will stabilize, and demand will pick back up. But not quite yet. Through the first quarter of 2023, we will see some buyers come out and take advantage of seller credits and discounts, further lowering respective home prices. Quarter two will see prices flatten out from their descent, then turn slightly upwards in the second half. All that assumes inflation will be curtailed, and rates will start their move into the 5’s. 2023 overall appreciation will be in the low single digits by year-end. Remember appreciation was only 2.5 percent in 2019, and it was a good year.

Inventory

While mortgage rates were the conversation for 2022, I believe inventory will take a front seat in 2023. This is the topic that gives me pause. Inventory ended the year with 4,757 homes for sale. While still lower than in 2019, this number is more in line with 2014-2019. The difference from then to now is that the average mortgage rate from 2014 to 2019 was 4 percent, not the 2.75 percent lows we saw in 2020-2021. 24 percent of all mortgages are now locked in below 3 percent. Another 41 percent are between 3 and 4 percent. Keep in mind that 38 percent of homes don’t even have a mortgage. That means 65 percent of all homes have a rate below the ones we see this year. This “rate lock” in addition to the rapidly declining permits and starts; will further support stable home prices.

As rates drop, sellers, i.e., “would-be buyers,” will put their houses on the market. If they choose to test the market by overpricing, Days on Market will continue to increase from December’s 30 median days in the MLS. However, if they come out aggressive, understanding the market shift, they will see multiple bids and quick sales. On average, homes that had to drop their price stayed on the market twice as long as homes priced right.

Also, do not expect any pop in inventory from distressed sales. Short sales and foreclosures will remain limited. Suppose we see a massive 15 percent decline in home prices nationwide. In that case, we will still only see 3.7 percent of our mortgaged properties dip into negative equity territory, with the majority purchased just last year. Low locked-in mortgage rates and monthly payments will support even those who lose their job from losing their home.

Rates

Lower rates might not be everyone’s cure-all, but it sure is ours. Seeing rates rise above 7.25 percent sank the hearts of would-be buyers putting both buyers and sellers at a standstill in 2022. Rates have since dropped back to the low to mid 6’s. Lower inflation and a slower economy will continue to give bonds the relief they need, dropping yields and lowering our rates. We have now had two lower inflationary reports, with the next Consumer Price Index report due on January 12th. In addition, December’s unemployment report will also be released on Friday, January 6th. If we see the core CPI drop from 6 percent and unemployment increase from 3.7 percent, we will see mortgage rates drop again. While I would love to see them drop straight to 5 percent, realistically, it will not be a straight line, nor will it be fast. Rates will continue to react to global economies, GDP, employment, and inflation. Nevertheless, I am hopeful that we will see rates drop into the mid 5’s consistently by late Spring or early Summer.

Demand

Having seen the calendar turn over, the largest borrower age group is now 32 years old. We have years of pent-up demand, with first-time home buyers still at an average age of 34. They were priced out for years, then feared out. Many want to own, creating long-term wealth only real estate provides most Americans. But affordability will continue to be the limiting factor, especially in the Denver market. As rates fluctuate, we will continue to see buyers react. As rates dipped in November/early December, we saw seven weeks of slowly returning buyers through increasing mortgage purchase applications. Then, during the last two weeks of December, rates moved back up above 6.5 percent, and so went the buyers, with applications dropping 12.2 percent from just two weeks earlier.

Buyers today have the advantage of less competition and more negotiating power. That opportunity will evaporate as rates drop below 6 percent and more buyers come back into the market. While I would advise all buyers to jump in now, I also want to express caution. A buyer today is looking at the long-term benefits of owning a home: the lifestyle, stability, and protection a home provides. Yes, real estate will always go up in value, but short term, we could be in for a little more price instability.

So my advice? Buy when it’s the right time in your life. Make sure you have job stability and a little money in the bank. Then, go in with confidence knowing the Denver Metro continues to provide long-term appreciation and a beautiful place to live.

Well, that’s a wrap. Until next time, this is Nicole Rueth with the Rueth Team, powered by OneTrust Home Loans. It’s my pleasure to keep you updated…and say farewell to 2022!

The views, opinions and positions expressed within this guest post are those of the author alone and do not necessarily represent those of the Denver Metro Association of Realtors®. The accuracy, completeness and validity of any statements made within this article are not guaranteed. We accept no liability for any errors, omissions or representations. The copyright of this content belongs to the author and any liability with regards to infringement of intellectual property rights remains with them.

The post It’s Not Going to Get Worse appeared first on NeXstep Real Estate Group.

How did they do it?  Per the article 5280 magazine looked at a variety of data points including: crime, school rankings, and home prices.  They looked at all 73 neighborhoods and weighted is category to come up with their top 25.   To see a map of the Denver Neighborhoods: CLICK HERE…

“Our ranking is based on four variables: home prices, crime data, school rankings, and an X factor score that accounts for things that can’t be easily quantified, such as access to open space, public transportation, and restaurants and shops. Each category is weighted: 30 percent for year-over-year percentage change in home values; 25 percent for safety; 15 percent for neighborhood school ratings; and 30 percent for the X factor. Our initial list of 78 neighborhoods (which was whittled down to 73, as you’ll read below) is based on the city of Denver’s official map. That explains why you won’t see areas like LoHi or RiNo mentioned; officially, they’re not considered their own neighborhoods—even though locals would probably disagree.

Here is a summary of 5280 Magazines top 25 Neighborhoods

1-5                                     6-10                      11-15                                    16-20                         21-25

1. Wellshire                   6.  Speer                  11. Country Club                   16. Central Park       21. Whittier

2. Belcaro                      7.  S. Park Hill        12.  University Park             17. N Park Hill          22. Berkeley

3. Washington Park    8.  Sloan Lake        13. Hale                                  18. Skyland               23. Mar Lee

4. Platt Park                 9.  Hill Top              14. Congress Park                19. Cherry Creek      24. W. Highland

5. City Park                  10.  Union Station  15. Gateway/Green Valley  20. Hampden S.      25. Highland

The post 25 Best Neighborhoods In Denver appeared first on NeXstep Real Estate Group.