Denver Real Estate Market October 2022

Denver Real Estate Market Update October 2022!

Michael Kozlowski Ranked as high as the #1 Individual RE/MAX Agent in the State of Colorado! Selling Homes for as High as $250,000 Over Asking Price in 2022!

Fall Market Uncertainty and Expectations!

As we enter the fourth quarter of 2022, we see the Denver Metro Real Estate Market in a much different place than how we started this year! We started the year with approximately 1,500 Active Listings on the market, and we currently have close to 7,700 which is 93.5% higher than this time last year!!!

This shift in the market gives Buyers opportunities like they haven’t seen for over 10 years, as Denver is second only to Boise, ID in price reductions among 97 cities with 58% of homes experiencing a price drop.

- Seller education about Market Conditions that are quickly changing is so important right now as it is not 2021 anymore.

- Buyer education is equally important as some are confusing this market with 2008 and the Great Recession which is not the case!

The rise in Mortgage Interest Rates, coupled with mixed expectations from Buyers and Sellers was evident in September as we only had 3,848 homes go Pending and 4,113 homes Close which were about 28% below in both categories from September 2021.

- The Market is approaching 2.5-3 months of Inventory, which is feeling much more like a balanced market.

We are prepared to help you with the proper expectations in this shifting market!

- Sellers we will help you prepare and price your home for success, and help to offer the right finance incentives to attract the best Buyers. Remember, the good houses in good locations and that show well and priced correctly are still selling in 2-3 weeks.

- Buyers, we will help equip you with the best financing available, and the accurate data to assist in making Offers that will be accepted and help you get from where you are to where you dream about. This may be the best opportunity for Buyers that we have seen in a decade!

The Fall Market is one of the best times to be looking at homes at a great value, and help you get into your dream home by the Holidays.

Happy Halloween!

Denver Real Estate Market Update September 2022

 Denver Real Estate Market Update September 2022!

Michael Kozlowski Ranked as high as the #1 Individual RE/MAX Agent in the State of Colorado! Selling Homes for as High as $250,000 Over Asking Price in 2022!

THE FALL MARKET HAS ARRIVED!

We just celebrated the Labor Day Holiday, and the unofficial end to Summer and a return to more disciplined lives. Nearly all of the major categories in the Denver Metro Real Estate Market are pointing towards the market slowing down, as Price Reductions are on the rise and Seller Concessions for Buyers have increased.

- For the first time since July 2020 the Closed Price to List Price Ratio in under 100 percent!

The Chief Economist for the National Association of Realtors, Lawrence Yun said “We are witnessing a housing recession in terms of declining home sales and home building, but it’s not a recession in home prices.”

Let’s talk about the numbers at the end of August 2022!

- Active Inventory went down from last month to 6,939 Residential Homes, but is still 93% higher than a year ago and Single Family Home Inventory is 114% higher than this time last year.

- Closed Homes in August were down 30% from August 2021, and Closed Homes Year to date are down 14%.

- The Average Price of a Single Family Home was $780,704 and that is 13.47% higher than a year ago with Condos/Townhomes averaging $481,413 which is 12.10% higher than August 2021.

The rate of appreciation continues to decline slightly YTD, but is still holding steady.

Our sense of this market is the early Summer slowdown has created a small increase in Buyer demand, and we should see an increase in Buyer activity in September and early October. The impact on the market is Buyers are ready to buy again, but are being more patient while they look at homes, and the decision to make an Offer.

Buyers: please be ready to be decisive if you like the home, as you may be competing again soon.

Sellers: please take advantage of a potential uptick in Buyer activity and price and prepare your home properly.

Enjoy a Colorful Colorado Fall!

RE/MAX National Housing Report July 2022

RE/MAX National Housing Report July 2022!

Michael Kozlowski ranked as high as the #1 Individual RE/MAX Agent in the State of Colorado! Selling Homes for as High as $250,000 Over List Price in 2022!

DENVER — A double-digit drop in home sales from June to July fueled a double-digit increase in homes for sale, triggering the first decline in the Median Sales Price since January.

July’s Median Sales Price of $415,000 was down 2.9% from June and the lowest since April’s $406,000. The 16.6% decline in home sales was also the first since January. Year-over-year, sales were down 26.3% from July 2021.

Following a period of continual contraction in recent years, inventory jumped for the fourth consecutive month. There were 13.3% more homes for sale than in June and 30.4% more than a year ago. Months Supply of Inventory has doubled since May and is now at 1.8, while Days on Market was 24. New listings, however, dropped 7.8% compared to June and 7.2% compared to July 2021.

“It’s an exciting time to be a homebuyer. For the first time in years, we’re seeing sustained inventory gains and the slowing of home price appreciation,” said Nick Bailey, President and CEO. “The market is rebalancing after favoring sellers for so long. There’s still ground to make up with new construction, but the change in recent months has brought some much needed relief to buyers. And sellers still have it good, too. A calming market doesn’t mean a stoppage – and there are plenty of benefits to being on that side of the equation.”

Added RE/MAX North Professionals real estate agent Rich Gardner, who is based in Colchester, VT, “The housing market in Vermont has stayed strong favoring sellers. Since January, we are still seeing values in Chittenden County rise for both single-family and townhouse-condo sales.”

The average Close-to-List Price Ratio in July was 101%, meaning that homes, in general, sold for 1% more than the asking price. That dropped from 102% in June 2022 and July 2021.

Highlights and the local markets leading various metrics for July include:

New Listings

Of the 53 metro areas surveyed in July 2022, the number of newly listed homes is down 7.8% compared to June 2022 and down 7.2% compared to July 2021. The markets with the biggest decrease in year-over-year new listings percentage were Kansas City, MO at -47.7%, St Louis, MO at -36.9%, and Burlington, VT at -32.2%. Leading the year-over-year new listings percentage increase were Dover, DE at +39.4%, Phoenix, AZ at +34.1%, and Trenton, NJ at +19.1%.

Closed Transactions

Of the 53 metro areas surveyed in July 2022, the overall number of home sales is down 16.6% compared to June 2022, and down 26.3% compared to July 2021. The markets with the biggest decrease in year-over-year sales percentage were Houston, TX at -45.1%, San Diego, CA at -42.1%, and Miami, FL at -40.9%. No metro area had a year-over-year sales percentage increase.

Median Sales Price – Median of 53 metro area prices

In July 2022, the median of all 53 metro area Sales Prices was $415,000, down 2.9% compared to June 2022, and up 8.1% from July 2021. One metro area saw a year-over-year decrease in Median Sales Price, Dallas, TX at -1.9%. Twenty-seven metro areas increased year-over-year by double-digit percentages, led by Tampa, FL at +23.7%, Fayetteville, AR at +21.6%, and Raleigh, NC at +19.1%.

Close-to-List Price Ratio – Average of 53 metro area prices

In July 2022, the average Close-to-List Price Ratio of all 53 metro areas in the report was 101%, down 1.3% compared to June 2022, and down 1.1% compared to July 2021. The Close-to-List Price Ratio is calculated by the average value of the sales price divided by the list price for each transaction. When the number is above 100%, the home closed for more than the list price. If it’s less than 100%, the home sold for less than the list price. The metro areas with the lowest Close-to-List Price Ratio were Coeur d’Alene, ID and Miami, FL, tied at 97%, followed by another tie between Bozeman, MT and New Orleans, LA at 98%. The highest Close-to-List Price Ratios were in Burlington, VT at 105%, followed by a five-way tie between Boston, MA, Hartford, CT, Manchester, NH, Richmond, VA, and San Francisco, CA at 104%.

Months’ Supply of Inventory – Average of 53 metro areas

The number of homes for sale in July 2022 was up 13.3% from June 2022 and up 30.4% from July 2021. Based on the rate of home sales in July 2022, the Months’ Supply of Inventory increased to 1.8 compared to 1.4 in June 2022, and increased compared to 1.2 in July 2021. In July 2022, the markets with the lowest Months’ Supply of Inventory were Albuquerque, NM at 0.7 followed by Manchester, NH at 0.8.

November is the beginning of a new Monthly Market Update format I hope you like it...

Michael Kozlowski ranked as high as the #1 Individual RE/MAX Agent in the State of Colorado!

Even though the weather has remained warmer for this time of year, the market has cooled down slightly. Current listings in the Denver metro and surrounding areas are 15% lower than last month, and 30% lower than this time last year. However new listings are still up 5%, and closings are almost break even with last year.

If you’re still looking to buy in this market, and have previously felt discouraged by the ups and downs, don’t give up hope as trends look optimistic approaching the new year. And If you are considering selling between the holidays, you know there’s plenty of demand. You can still close by the end of the year and probably delay possession into January if you want to spend one last holiday season in your home. Either way, I’m here to help.

Whether you’re traveling or hosting in the weeks to come, enjoy this thankful time of year with family, friends, and those that you love and are grateful for!

Happy Thanksgiving!

Denver Real Estate Market Update August 2022

Denver Real Estate Market Update August 2022

Michael Kozlowski ranked as high as the #1 Individual RE/MAX Agent in the State of Colorado! Selling homes in 2022 up to $250,000 Over Asking Price! Check us out at: www.team-koz.com

HOUSING INVENTORY CONTINUES TO GROW!!!

The Dog Days of Summer are coming to a close. The Daylight hours are getting shorter, and The Pandemic Pricing has officially come to an end!

The Prime time for the Denver Metro Housing Market was cut short this year as consumers came to terms with rising inflation and mortgage rates, which caused record numbers of Contract Cancellations in the Resale and New Home markets in May and June, and Buyer traffic slowing down substantially during May, June and July.

The market caught the attention of many Sellers who have now listed their homes quickly over the last two months to try to catch the final innings of the Seller's Market. Recently listed homes have been met with reduced Buyer Showings, Price Reductions, and Seller Concessions to pay for Interest Rate Buy-downs for Buyers as incentives!

- Active Listings for Single Family Homes and Condos/Townhomes at the end of July were 7,361 which is 81% higher than July 2021!

- The number of Closed Homes was down 12.3% Year over Year.

- The number of Active Single Family Homes on the market in July was up 96% from July 2021

- The Days on Market in July increased 44% YoY.

Surprisingly, the Average Sold Prices are still up 14% Year over Year, which still proves the Supply and Demand metrics are prevailing as Supply has increased and demand remains relatively strong.

The Yellow Line has crossed back over the Blue Line! As you look at the very important Graph of “Month End Active Listings and Month End Closed Homes. We have more Active Listings on the Market than the number of Closed Homes for this month. This is normal and a much healthier characteristics of a good Housing Market. We haven’t seen this graph in this position since about May 2020 when the Market consistently Sold more homes each month than were available for Sale!

When the Housing Market slows down early in the Summer after a very active Spring Market, as has happened this year, we will usually have a rise in Buyer Activity in the early Fall! We should see an uptick in Home Sales after Labor Day through October!

If you are a Seller, please price and prepare your home properly for this Fall Market!

If you are a Buyer in this market, the Buying opportunities may be the best we have seen all year!

Enjoy the end of Summer!

RE/MAX National Housing Report June 2022

 🏡🔑RE/MAX National Housing Report June 2022!🏡🔑

Michael Kozlowski ranked as high as the #1 Individual RE/MAX Agent in the State of Colorado! Selling Homes for as High as $250,000 Over Asking Price in 2022!

DENVER — Halfway through the peak summer buying season, this year’s home sales are falling short of 2021’s, as signs of more balance in the market take hold.

• June posted the most home sales of any month thus far this year, topping May by 4.7% but falling 17.6% short of June 2021.

• Inventory grew for a third consecutive month by a whopping 34.1% over May and 27.5% year over year.

• While up 11% year over year, the Median Sales Price of $428,000 inched just 0.6% above May’s.

Bolstering the inventory was a 7.7% increase in new listings month over month, which was an increase of 1.6% over June 2021. Months Supply of Inventory jumped from 0.9 in May to 1.4 in June. A year ago, Months Supply of Inventory was 1.0.

“The market is moving toward greater balance, especially with inventory gains and the slowing of price appreciation. The past few years have been one of the most competitive times ever for buyers – and we’re finally seeing conditions ease up,” said Nick Bailey, President and CEO. “It’s due partly to the rise in interest rates – although buyers are also finding solutions in ARMs, FHA products and other financing – but even more significant is the increase in listings after several years of instant sales and low inventory. Markets like Nashville and Phoenix saw an increase in new listings of over 20 percent last month, bringing new options for buyers who may have sidelined themselves in the frenzy of last year."

Added RE/MAX Professionals Sales Associate/OwnerNate Martinez, who is based in Phoenix, AZ, “The Phoenix metro area is in the process of a market shift from a red-hot market to more of a balanced market. With inventory increasing, we’re seeing more opportunities for buyers, a leveling of home prices and a reduction in homes selling with multiple offers.”

The average Close-to-List Price Ratio in June was 102%, meaning that homes, in general, sold for 2% more than the asking price. That dropped from 103% in May and matched June 2021. Homes spent an average of 25 days on the market in June.

Highlights and the local markets leading various metrics for June include:

New Listings

Of the 53 metro areas surveyed in June 2022, the number of newly listed homes is up 7.7% compared to May 2022, and up 1.6% compared to June 2021. Leading the year-over-year new listings percentage increase were Phoenix, AZ at +34.1%, Nashville, TN at +22.8%, and Philadelphia, PA at +21.8%. The markets with the biggest decrease in year-over-year new listings percentage were Kansas City, MO at -18.5%, Honolulu, HI at -15.9%, and Hartford, CT at -15.6%.

Closed Transactions

Of the 53 metro areas surveyed in June 2022, the overall number of home sales is up 4.7% compared to May 2022, and down 17.6% compared to June 2021. The markets with the biggest decrease in year-over-year sales percentage were Miami, FL at -35.1%, San Diego, CA at -33.1%, and Coeur d’Alene, ID at -32.2%. No metro area had a year-over-year sales percentage increase.

Median Sales Price – Median of 53 metro area prices

In June 2022, the median of all 53 metro area Sales Prices was $428,000, up 0.6% compared to May 2022 and up 11.0% from June 2021. Only one metro area saw a year-over-year decrease in Median Sales Price – Trenton, NJ at -1.2%. Thirty-nine metro areas increased year-over-year by double-digit percentages, led by Dallas, TX at +29.3%, Tampa, FL at +27.9%, and Fayetteville, AR at +27.3%.

Close-to-List Price Ratio – Average of 53 metro area prices

In June 2022, the average Close-to-List Price Ratio of all 53 metro areas in the report was 102%, down from 103% compared to May 2022, and flat compared to June 2021. The Close-to-List Price Ratio is calculated by the average value of the sales price divided by the list price for each transaction. When the number is above 100%, the home closed for more than the list price. If it’s less than 100%, the home sold for less than the list price. The metro areas with the lowest Close-to-List Price Ratio were Coeur d’Alene, ID and Miami, FL, which tied at 97%, followed by Bozeman, MT and New Orleans, LA, which tied at 99%. The highest Close-to-List Price Ratios were in San Francisco, CA at 109%, and Burlington, VT at 107%, followed by a five-way tie between Boston, MA, Richmond, VA, Manchester, NH, Hartford, CT, and Trenton, NJ at 105%.

Months’ Supply of Inventory – Average of 53 metro areas

The number of homes for sale in June 2022 was up 34.1% from May 2022 and up 27.5% from June 2021. Based on the rate of home sales in June 2022, the Months’ Supply of Inventory increased to 1.4 compared to 0.9 in May 2022, and increased compared to 1.0 in June 2021. In June 2022, the markets with the lowest Months’ Supply of Inventory were Charlotte, NC and Manchester, NH, tied at 0.4, followed by Albuquerque, NM at 0.5.

Denver Real Estate Market Update July 2022

Denver Real Estate Market Update July 2022!

Michael Kozlowski ranked as high as the #1 Individual RE/MAX Agent in the State of Colorado! Selling homes in 2022 up to $250,000 Over Asking Price! Check us out at: www.team-koz.com

HOUSING INVENTORY GROWS!!!

In January, we predicted that we could see two very different halves of the year, and that Inflation would be the determining factor for much of our Market change! As we analyze the Housing data for the Denver Metro Area at the close of June, and the first half of the year for 2022 we are seeing some fairly major changes right before our eyes.

The Media is reminding us daily that the Stock Market had a miserable first 6 months, that Cryptocurrency has fallen dramatically, and that Inflation is at the highest numbers since 1971, and Mortgage Rates have risen quickly, but the media has not shared how resilient the Real Estate Market is and has been this year! The strongest indicators in Housing continue to be Supply and Demand, and those fundamentals have not changed.

Let’s talk about Supply! We have heard about the “Shift in the Market”, and supply definitely made the biggest Shift in the last month.

- We ended June with 6,057 Active Listings on the Market, and that is 94% higher than June of 2021!

- New Listings in 2022 are almost the same as this time last year, so the other Shift was a slight decrease in Demand over the last 30-60 days!

Buyers seem to be willing to take a little pause on the market, and time will tell if it’s from a temporary burnout from a very difficult to compete market earlier this year, or possibly higher Mortgage rates or maybe just that Buyers wanted to enjoy the month of June and beginning of Summer. It is probably a combination of all three!

If you are a Seller, it is not a time to panic! You may have missed the Peak of the Market this year, but the market demand remains strong as Buyers need a home and a roof over their heads! Sellers, Pricing is the single most important decision when listing your home and is also based on your condition and location. Please take the time to prepare your home for showings and expect to realign your expectations just a little! The homes that show well, are still selling quickly with a realistic price but remember your Sold Comps may not be the best from March or April.

If you are a Buyer in this market and have been frustrated by the process and competition you can celebrate and get busy now. You don’t want to procrastinate buying your next home, as prices are normalizing but probably not going down substantially. You will want to reengage or get started again soon, as we can’t predict what Mortgage rates will do in the future and could easily go up again!

We will have about 1-1.5 month's supply of Inventory over the Summer and haven’t seen that much Inventory since June 2020!