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!

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.