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.

Happy New Year! It’s time to look back and ponder what happened over the past year and look ahead to set goals and make predictions for the new year. Let’s start by looking at the top three things we know about the Denver metro real estate market in 2019:

1. Inventory continued to be scarce. The Denver metro area saw a significant increase in homes for sale in 2018, up 44.71 percent from 2017. That prompted talk of recession and fears of another housing crash. But at the end of 2019, that pile of inventory shrunk. We ended the year with 9.68 percent fewer homes to choose from year over year. The main reason we saw fewer choices was not because more were going under contract or selling, but because 29.94 percent fewer new listings came on the market in December compared to the month prior.
2. Considering the average rate of sales, it would take only 1.13 months to sell all detached homes and 1.37 months to sell all attached homes in the Denver area. For perspective, in January 2010 we had 9.8 months of attached home inventory and 9.8 months of detached home inventory. Anything under four months means sellers have the power in negotiations, while more than five months means buyers have control. We have started 2020 with sellers firmly in control.
3. There was an increase in the average number of days it took to sell a home in 2019. For three years it took an average of 26 days to sell. This past year it jumped up 19.23 percent to 31 days. That spooked a lot of sellers who had been hearing about their neighbors’ homes getting multiple offers in the first few days on the market. When that didn’t hap­pen, sellers started dropping their prices.
4. Despite more price reductions, home values continued to go up. Not at eight to nine percent like we saw earlier in the 2010s, but up nonetheless. The average close price in 2019 was $486,695 – that’s 2.85 percent higher than in 2018. If you take a longer look back to get more perspective, you’ll see what a fabulous investment real estate is in the Denver metro area. The average residential close price increased 87.82 percent from 2010 when it was only $259,084.

2020 Predictions…

The great thing about sales data is that it looks at what we know happened and then we can compare it to years past to get perspective. We hope by doing that we can come up with a prediction of what will happen in the future. But when we look at the future, even if the data helps us make an educated guess, it is still a guess.

Affordability will continue to be an issue in the Denver metro area as the cost of land and new construction increased with our home prices and most salaries didn’t keep pace. Buyers will continue to want more and more as they pay more and more. Sellers are going to have to do more to get their homes in tip-top shape to get top dollar. And  we are starting the new year with low inventory, low interest rates, a strong job market and a steady economy, we predict we will see continued long-term gains in real estate. Bring it on 2020!

2020 Copyright All rights reserved to Denver Metro Association of REALTORS

Click Here To View Full Reports

The post Greater Metro Denver Market Review appeared first on NeXstep Real Estate Group.

Lots of exciting news in the world of Real Estate.  Below is a great article published on January 9th by Thomas Gounley in the BusinessDen about a new proposed Seven-story hostel-like development in RiNo.  This is not your typical hotel development project.  Enjoy the BusinessDen article below…

A lodging property that would offer hostel-like shared bunkrooms along with private rooms has been proposed for a site a block off RiNo’s Brighton Boulevard.

Katz Development submitted a project concept this week proposing the seven-story project at 3495 Wynkoop St.

Project concepts are an early-stage development proposal, the precursor to a more formal site-development plan.

Katz Development is led by Andrew Katz, who said his family regularly visited Colorado to ski while he grew up in Ohio and came to love Denver. In 2015, after graduating from Ohio State, he moved out and took a job as a retail broker at SullivanHayes.

Katz, 26, said he loved the feel of RiNo. In Ohio, his father worked in real estate, developing retail and multifamily properties in that and neighboring states. The family — including Katz’s younger brother, who goes to the University of Colorado Boulder — decided to look for a development opportunity in the district.

They paid $1.81 million for the 0.29-acre 3495 Wynkoop St. lot in June 2017, according to public records. The industrial building currently on the site is primarily used for storage. Katz said his family didn’t have a firm development plan when they bought it.

“We thought it was a well-located site and decided to just go for it,” Katz said.

“Throughout that whole process, the neighborhood just kind of did its thing,” Katz said. “And we saw hospitality as a really interesting use for our site.”

The only lodging option now along Brighton is Zeppelin Development’s Source Hotel. But two more are in the works, at 3560 and 3660 Brighton Blvd.

The development plans for Katz’s project show the project facing 35th Street. The first floor would have the lobby and a restaurant, and the seventh floor would be a bar opening out onto the rooftop. Rooms would be on floors two through six.

The development plans do not include any parking.

“We hope our target demographic is going to take advantage of the light rail,” Katz said, noting there are also parking garages in the area.

Katz said the goal is to develop something that will add to the neighborhood, and incorporating shared bunkrooms was a way to make the project unique. While bunkrooms are a common feature at hostels — like the one planned for a site in Arapahoe Square — Katz indicated he isn’t too focused on how his project is described for now.  “It’s a hostel, it’s lodging, it’s a hotel,” he said. “It’s a way to experience the neighborhood.”

Katz declined to detail the expected number of beds or rooms, noting the early stage of the project. And he said he hasn’t determined whether the lodging would be managed in-house or by an outside company.

The post Seven-story project proposed a block off Brighton in RiNo appeared first on NeXstep Real Estate Group.

A Colorado Association of REALTOR^® was recently awarded the Graduate, REALTOR^® Institute (GRI) designation.

The SMDRA member who completed the curriculum required to achieve the highly acclaimed designation is Carolyn Erickson with NeXstep Real Estate Group.  She joins other top producers in the residential real estate industry who hold the designation across the nation.

Carolyn earned the “Graduate, REALTOR^® Institute” (GRI) Designation by attending a minimum of 60 hours of classroom instruction, covering a variety of subjects including: contract law, professional standards, sales and marketing, finance, and risk reduction.

In addition, they have learned the fundamentals of brokerage and other areas of real estate specialization. With this designation and through increased awareness of current topics important to the real estate professional, such as legal issues, these REALTORS^® can better serve prospective clients and customers.

The GRI designation sets the individuals who have attained it, apart from other practitioners because it indicates to the public that the individual has obtained a professional educational foundation on which to base the services they provide and that they are a member of the NATIONAL ASSOCIATION OF REALTORS^®.

Obtaining the GRI designation is a beneficial way for a REALTOR^® to advance their professional image. The extra measure of knowledge and prestige achieved by completing this course work is a tool that will advance a career in real estate on attracting and building new business.

The REALTOR^® Institute has been in existence for more than twenty-five years and has graduated thousands of REALTORS^®.

REALTORS^Ò or consumers interested in learning more about the program may visit www.Realtor.org/GRI.

The post FOR IMMEDIATE RELEASE: Carolyn Erickson Earns GRI Designation appeared first on NeXstep Real Estate Group.

April 6^th at the Hyatt Regency DTC

DENVER, Colo. – April 6, 2018 – Carolyn Erickson, a leading REALTOR  with NeXstep Real Estate Group, has been recognized by the South Metro Denver REALTOR® Association (SMDRA) with the 2017 Diamond Circle Club Award for Top Individual Residential Sales – Two Carat for 2017. SMDRA held its sixth annual Diamond Circle Awards celebration on Friday, April 6, 2018 at the Hyatt Regency Denver Tech Center.

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 30-39 transactions.

“We are pleased to present Carolyn with the Diamond Circle Award for 2017,” said Todd Schuster, 2018 Chairman of SMDRA.  “She has demonstrated a sincere dedication to the real estate business, old-fashioned hard work, and superior customer service to achieve 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 NAR and subscribes to its strict Code of Ethics and they hold 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 Tom Salomone, the 2016 President of the National Association of REALTORS®.  He chaired the 2009 Economic Issues & Residential REALTOR® Business Trends Forum and the 2008 Meeting and Conference Committee. While President, Salomone partnered the National Association of REALTORS with the Boys and Girls Clubs of American to help provide a ‘home away from home’ for children in need.

Musical entertainment for the night was provided by Denver’s own Phat Daddy. The night also featured a Silent Auction with items donated by SMDRA members and local businesses, with proceeds going to benefit Brothers Redevelopment Inc.

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

# # #

The post Carolyn Erickson of NeXstep Real Estate Group Garners Prestigious Sales Production Award for 2017 from South Metro Denver REALTOR® Association appeared first on NeXstep Real Estate Group.