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!

Denver Real Estate Market Update June 2022

 Denver Real Estate Market Update June 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

In January, we predicted that the first half of this year would look different than the second half!

This looks to be coming true as the Denver Metro Real Estate Market may be a story of two halves. The first of the year with unprecedented appreciation and the second half of the year returning to some normalization.

SHIFT HAPPENS, and here is some evidence as we analyze the housing data for May!

- The Active Listings were at 3,652 which is 76% higher than a year ago!

- New Listings in May were at 6,810 up almost 9% from a year ago, so the Inventory shortage is beginning to improve.

- For the first time in a couple of years, we had almost a thousand more New Listings than we had Pending Sales for a 7 day period and that trend may continue.

- We have seen more Price Reductions and a slight increase in Days on the Market.

- We have seen more emails from Brokers and Builders announcing they have standing Inventory right now, and you won’t have to wait for a home to be built or compete with as many Offers!

- We have even seen some Seller Concessions Offered!

Demand is still very strong, but Buyers have become more patient in their approach as the cost of money has increased, and Buyers are trying a new strategy to wait for homes that don’t have Offers the first weekend on the market.

Sellers are sometimes in a panic if they don’t see an Offer the first weekend or the Showings are lighter than expected.

Here is the Good News if you are a Buyer today! Please get out and look for your new home right away, and be patient. You have the best chance of getting into your dream home now than you have seen all year, and much of the last two years! You will want to get into your forever home now, even though you may not be in your forever loan right now. Interest rates may improve over the next few years, and you will have a chance to refinance but home prices rarely go down.

If you are a Seller today, please price your home correctly and do everything possible to make it show well! The homes that are in a good location and show well are still selling quickly and for Top Dollar!

The Summer months and market move quickly, so get going and enjoy a great Colorado Summer!

Denver Real Estate Market Update May 2022

 

Denver Real Estate Market Update May 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

It’s Springtime in the Rockies, and we finally have New Inventory worth noting in the Denver Metro Area!

- Active Listings at the end of April were at 3,204, which is 44% higher than March!

- New Listings came in at 6,881, which is 14% higher than March.

- Pending Homes in April were up 16% over March

- Closed homes were up 3% from the month before.

Keep in mind that our Closed data from April actually represents the state of the market 30-60 days prior with much lower Inventory and much lower Mortgage Interest rates. That data is evident in the Average Price of a Single Family Home closing at $825,000 and Condos/Townhomes at $495,000 in April!

However, the market seems to be showing signs of a shift as the increased inventory and rising Mortgage rates are slowing down the velocity of bidding wars in most price ranges and showings decreased per Listing in April. The suburbs seem to be feeling the cooling off in the $600,000 to $700,000 price range, as Showings have decreased.

The Luxury Market has not been as affected by rising interest rates, as many of the high end homes throughout the Metro area are still selling above their asking price with bidding wars!

The good news for Buyers is that any slowdown caused by higher mortgage rates should make the market a little easier for our patient buyers, however we may see signs of a mortgage trap as many homeowners may think twice about moving to get into their next home because of their current low interest rate. This can also create less inventory and more pressure on pricing.

For Sellers, this is still an amazing time to sell your home as the Buyer Demand is still very active and anxious to lock in their interest rates as soon as possible.

You will want to act sooner than later if you need to sell your home.

Denver Real Estate Market Update March 2022

Denver Real Estate Market Update March 2022! 

Michael Kozlowski ranked as high as the #1 Individual RE/MAX Agent in the State of Colorado! Selling homes in 2022 up to $151,000 Over Asking Price! Check us out at: www.team-koz.com

March Madness is always a College Basketball Theme this time of year, but this year it is more applicable to our Denver Metro Real Estate Market! We are surely living in a time of Global uncertainty, yet the Real Estate Market continues to be a pillar of strength throughout our Economy. 

What will it take to see a little slowdown in Buyer Activity? Currently, we have a War in Ukraine, historically high Inflation including Gasoline over $4.00 a gallon, and Interest rates at plus or minus 4% and the market is still moving right along! Typically, this would be enough to affect consumer confidence a little, but recently CoreLogic ranked Denver as the number one metro nationwide with 60 percent of all homes sold last month selling over the asking price! Denver’s average Showings/Listing Ratio was 25.15 showings! 

- Our Active Listings at the end of February were 1,226 which is -39% less than a year ago, but over the last couple of years our New Listing Inventory was about the same as the year before. 

- We have seen 7,671 New Listings this year, and that is down -12.44% from the same time last year! 

Buyers truly have less Inventory to look at this year, which is why our Closed Homes at the end of February is 6,241 also down -13% from the same time last year! 

This lower Inventory combined with the Hyperactive Buyer Activity this year has some economists predicting we will see a 19% Annual Appreciation. 

We believe that March will surely bring many more New Listings to the Market, and we may see some changes in consumer behavior from Buyers especially in the Luxury Markets as they use financial resources tied to the Stock and Cryptocurrency markets, which are volatile since the conflict in Ukraine. We may also see some relief with lower interest rates, as the Equities Markets move to the safer Bond markets that are tied to long term Mortgage Rates.

Buyers, please stay the course as New Inventory is on the way and you may see one home sell for $10,000 under asking price and another sell for $100,000’s over asking price! The difference between the two is usually Location and Condition. Be flexible with your search parameters! Sellers, we will not only counsel you on the Sold Comps in your area, but also give you guidance on what they really mean. 

Our goal is to give you options for how to increase your value in the market, and sometimes increase it a lot! The market is very emotional, but the data still matters and we have the knowledge and experience to help you make great decisions!

Enjoy the snowy month of March with the wonderful anticipation of the warm Spring and Spring Market ahead!

#realestate #luxury #mortgage #interestrates #markets

 

Denver Real Estate Market Update February 2022

Denver Real Estate Market Update February 2022!

Michael Kozlowski ranked as high as the #1 Individual RE/MAX Agent in the State of Colorado! Selling homes in 2021 up to $125,000 Over Asking Price! Check us out at: www.team-koz.com

The Denver Metro Real Estate Market started January with a Bang, and we can still hear the echoes as Buyer Demand continues at a very Hot Pace!

The market needs more Listings and I believe we will see that begin to happen as we see Mask Mandates coming to an end and relieve some of the fear and concerns of this Covid Era. Home Sellers will plan for their Real Estate needs this year and begin to capitalize on the best Seller’s Market in the history of the Denver Metro Area! The Superbowl will be complete, and unofficially that seems to be the time that many Sellers start to make their move!

- We broke another record, as we ended January with only 1,184 total Active Listings on the market, which is down -20% from last month, and -49% from this time last year!

- The Pending Contracts were at 3,825 which is a 20% increase from the month before.

This explains our market in a nutshell, as the Buyer Demand is gobbling up almost every New Listing that arrives on the market!

- Closed Residential Homes were at 2,847 which is down 40% from last month.

This downturn in Closings is simply because Buyers just didn’t have enough homes to make offers on, and many tried to make Offers and were not accepted!

Buyers, please keep trying as help and Inventory is on the way and the urgency to beat an increase in Interest Rates will continue!

Sellers, if you need to sell NOW IS THE TIME!

We see so much Good News and Bad News in our large scale economic picture with Jobs, the Stock and Bond Markets and Inflation that it’s impossible to predict anything, but this much we are very confident in! Real Estate will continue to be one of the best, if not the best long term Investment for a very long time.

Enjoy February, as we all anticipate the exciting Spring Market!

#realestate #denverrealestate #homesforsale #househunting #housingmarket2022 #realtor #interestrates #homeowners

RE/MAX National Housing Report December 2021

RE/MAX National Housing Report December 2021!

Michael Kozlowski ranked as high as the #1 Individual RE/MAX Agent in the State of Colorado! Selling Homes up to $125,000 Over Asking Price!

Buyers finally saw relief in this scorching market as November’s median sales price dropped 2.9%. While the month followed general seasonal trends, it still set many records, such as the average number of days homes were listed before selling. At 29 days, November’s average is only the sixth month in report history with an average below 30. Here’s a look at other highlights from November’s National Housing Report:

• The five-year average for October-to-November home sales is a decline of 12.0%, more than twice the drop of 4.9% in November 2021.

• The five-year average for October-to-November inventory is a decline of 8.9%, slightly more than half of the drop of 17.7% in November 2021.

• Despite declining month over month, November’s median home price was 11.9% higher than November 2020’s $295,000 and marks the 35th consecutive month that home prices have risen year over year.

With prices dropping and demand for homes still high there are plenty of reasons for optimism as we head in 2022.

Feel free to reach out by email or phone with any questions, I’m here to help. Happy holidays. 

Denver Real Estate Market Update December 2021!

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

Selling homes from $30,000-$105,000 Over Asking Price in 2021! 

Don't Miss Your Opportunity Call or Text Today! 303-949-2755

The prediction by our own Chief Economist at NAR, Lawrence Yun is that this Winter Market is expected to be unseasonably hot!  If the warm Fall Weather is any sign, and compared to other past Winter Markets, we do predict that this normally slower Season will experience stronger sales activity.  

Buyer demand continues to be the strongest indicator of this current market, and confidence in another strong market in 2022.  

We have a couple of interesting trend lines happening:

• From October to November, we saw a 33.41% decrease in month-end Active Inventory dropping to 2,248 Residential properties.

• Throughout the entire Denver Metro area, there are only 1,444 Single Family detached properties, and only 804 attached properties to buy!  

• The Average Active Listings in November is 14,180 from 1985-2020. 
• The Record-high November was in 2006 at 27,530
• The record-low was set this year at our current 2,248 

We have been setting a few records in 2021 as Year-to-date, there have been more houses purchased than in any other previous five years, and the Median sales prices for Single-Family and Attached Properties set records this year!  

We absolutely encourage Buyers to enjoy all of the festivities of this Holiday Season, but it may also be the time to stay focused on finding the right home as the market takes a Seasonal breath, and interest rates remain low.  Sellers, if you need to sell your home soon, you can absolutely go active on the market and you will get showings throughout the Holiday Season.  

We do predict that the New Year Homebuying activity will start early, so be prepared to bring in the New Year with a strong Resolution.