Denver Real Estate Market Update February 2023

 🏡 Denver Real Estate Market Update February 2023 🏡

Michael Kozlowski Ranked as High as The #1 Individual Agent in the State of Colorado! Already Selling Homes for Above Asking Price with Multiple Offers in 2023!

February is known as the month of Love, and as we examine the behaviors of the Denver Metro Housing Market, there are a lot of indications that Buyers and Sellers might Love the opportunities in the market in 2023!

For starters, buyers are coming right back into the market! Inventory is falling, while demand is rising and home prices remain soft, but for how long?

Buyers seem anxious to get under contract before the Spring rush, and are paying attention to the favorable data on Inflation slowing down. The Federal Reserve announcing a slowdown on their battle with Inflation and Wall Street celebrating helped Mortgage Interest Rates fall below 6% for a 30-year fixed rate loan. Mortgage Applications were up 15% in January!

Here are some numbers to show the January Activity:

- Active Listings are at 4,120 which is down 13% from December, mostly because of increased Buyer activity.

- New Listings in January were up 65% and Pending Sales were also up 51% over December.

The market is waking up from the late 2022 declines, and the typical Holiday Season distractions. The Average prices for Single Family detached and attached homes were both down a combined 1.5% from December, but this may change sooner than we expected.

Buyers will want to start looking sooner than later to take advantage of the current lower prices and interest rates, and beat the Spring activity that begins very soon!

Sellers will want to re-engage and prepare your homes quickly if you need to sell this year! You will want to be realistic in preparing and pricing, but don’t need to break the bank in preparing your home. Buyers are active now and looking for New Inventory to come on the market! A well prepared, priced and marketed property can still expect to sell in 2-3 weeks with the possibility of small bidding wars again.

Denver Real Estate Market Update January 2023

Denver Real Estate Market Update January 2023

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!

Happy New Year!

As we predicted last January, we saw two very different markets in 2022!

The first half had very low Inventory, very high demand, and low Mortgage Interest Rates! We felt a market tailwind that pushed prices up with extremely high demand, and multiple offer activity with an appreciation pace close to 20% annually! We predicted that Inflation would change everything, and it did with the help of government involvement to fight inflation!

The Housing market went into recession mode about June 16, 2022 with Interest rates rising quickly, Inventory growing and buyer demand began to wane because affordability was hard to find. Housing was trying to figure out how to handle high prices and higher interest rates. The headwinds came with full force the second half of the year, and the market ended the year with 21% fewer homes Sold, and the Average price for all residential homes for the year was $681,000 which is still remarkably 11.2% higher than the 2021 average. As we balance out the positives with the negatives, 2022 was actually still a decent year for housing!

Now, let’s talk about 2023 as it will be a year full of surprises, with challenges and hurdles to navigate! The good news! At RE/MAX Professionals, we have the experience, wisdom and track record to be successful in this type of market! We have done this market before!

Our Top 10 Predictions for 2023!

1) There is No Housing Bubble: The fundamentals of this market are very different from The Great Recession, and while we expect some year over year price declines in 2023, we don’t believe there will be a systemic drop in home values!

2) Inflation has seen it’s Peak: The rate of personal consumption over the last 2 years is unsustainable given the combination of a low personal saving rate and an elevated ratio of debt-to-personal disposable income among consumers. The worst should be behind us!

3) 2023 Market will be a Mirror Image of 2022: The first half of the year will have the greatest challenges, as prices remain flat or decline. Higher interest rates and affordability may pause affordability for buyers and hesitancy for Sellers to sell with their current lower mortgage rate. The second half of the year may see a substantial increase in activity!

4) Mortgage Rates Will Drop: As economic data is released this year, interest rates will be on a Roller Coaster for a while, but as we enter a mild recession rates will improve. Recessions are almost always good for lower interest rates and affordability. Real Estate is one of the most interest rate sensitive sectors of the Economy.

5) Inventory Will Not Grow Significantly: Demographics of our population entering their prime home buying years will continue to drive demand, and Seller hesitancy to List their homes along with builders under building for almost 15 years will keep Inventory at reasonable levels.

6) No Buyer’s Market, But a More Balanced Market: Historically, we have defined a Buyer’s Market as 6 months of Inventory, but with the lower inventory and buyer demands over the past 10 years, the new definition is closer to 2-3 months of Inventory. The market will be close to that in 2023, and that will create more balance for buyers and sellers.

7) Sellers must become more Realistic: The time of selling a homes As-Is or just throwing a price out there and see what happens are over! Sellers will need to be much more realistic on pricing, and when possible make their homes as presentable and updated as possible. Listings that price correctly, and don’t have to reduce the price are selling in less than half the time of those that do.

New Construction Activity Will Not Increase: Permits for New home construction are down by over 17%, and Builder Sentiment or Confidence is down 54 points. We will see more aggressive pricing and incentives from Builders as they hate to sit on a finished home. May be some great Buyer opportunities, especially the first half of the year!

9) Employment and The Labor Markets Can Change Everything: All of the Recession Flags are up right now signaling a Recession in our future. This may be mild if the growth rate of Inflation falls, but the key data line will be 2023 Jobless Claims. The critical level is over 300,000 on the four week moving average. Expect more layoffs in the coming months, and some iBuyer Companies will close their doors in 2023!

10) Affordability Will Be The Biggest Issue: We will likely see price declines the first half of the year, but this will not be enough to make housing more affordable. If Interest rates remain above 6% in 2023 this will make it challenging for Buyers, especially First Time Buyers as rents will begin to decline as well. We believe interest rates will drop into the mid 5% range, and possibly lower 5% if the recession takes hold and inflation slows down. This would help affordability tremendously, and we will see a mini boom of Buyer Activity the second half of the year!

For more information or to plan your home Sale or Purchase in 2023 call, text or email anytime!

Denver Real Estate Market Update December 2022

Denver Real Estate Market Update December 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!

Wishing everyone a very Merry Christmas, Happy Hanukkah, Happy Kwanzaa and the entire Holiday Season!

We are witnessing the normal Seasonal shifts and slowdowns in the Real Estate marketplace during this Winter and Holiday Season, however we are also getting a front row seat to a general shift in the Real Estate market back to some normalization and balance after the Pandemic pricing and demand in the market over the last two years.

We have seen more homes go Under Contract in the last 7 days as we have seen New Homes Listed which shows us that the market is stabilizing. The market has been changing, but good houses, in good locations that show well and are priced correctly are still selling relatively fast!

Here are some stats at the end of November:

- There are currently 6,253 Active Listings, which is 178% higher than last year at this time.

- New Listings are down -8% YOY, and Closings are down -19.5% YOY, which is the biggest reason we have more Inventory.

- The Average Price of a Single Family Home is $771,000 YTD, and Condos/Townhomes are at $480,745 which is just over 11% Appreciation for the year!

- The main reason for the slowdown in Closings has been the rapid increase in Mortgage Rates that peaked above 7% a couple of months ago.

- The slight decrease for Inflation recently has given us a Christmas Gift with Mortgage Rates declining to plus or minus 6%!

Buyers, some of the best values and housing inventory you will see are right now! Please take advantage of this unique time.

Sellers, if you need to sell, your homes always look fantastic over the Holiday Season and if marketed properly by your RE/MAX Professional, it will sell!

Please stay tuned next month as we share our Top 10 Predictions for 2023!

Again, thank you so much for your trust and confidence and we wish each of you a very Merry Christmas and a Happy Holiday Season!

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.