METRO DENVER REAL ESTATE MARKET UPDATE!
WELCOME. I want to personally welcome you as a prospective Metro Denver real estate buyer or seller, to use my website to hopefully achieve some of your real estate goals. As the co-owner of Sterling Real Estate, I work tirelessly to provide my clients with a level of service that goes well beyond their expectations. Besides being the Top Producer in Sales within the office, I also take the time to provide instruction and guidance to the many agents who work at Sterling. I am familiar with nearly every community throughout the Denver Metro area, whether it be Aurora, Littleton, Commerce City, Parker or Highlands Ranch. My many years of experience in the real estate industry, provides me with the knowledge and expertise to effectively represent any home buyer or seller throughout the entire real estate process.
Denver Colorado Home Trends
Seller Trends: The market is definitely changing for Denver area sellers. In the *Seven County Greater Denver Metro Area, the number of active Detached Single Family homes for the month of January was 3,372. That was an increase of 34% over the number of available homes in January of 2018. The number of condos and townhomes that were actively listed was 1,660. That too, was an increase of 66% year over year. Combined, the total number of Actively listed homes increased substantially with a total inventory of 5,032, which is 43% higher than this same time last year. However, this increase in active listings, although giving buyers a little more bargaining power, still shows a monthly inventory supply (MSI) of only 1.45 months, which still indicates a seller's market. A typical market would require that there be 24,774 Active units, or a six month supply. On average, the number of days on market for January was 41, which was nine more than the same time last year, but still relatively low.
For the past several years, home prices in the Denver Metro Area, have increased an average of 10%, year over year. In 2018, the average sales price for a Detached Single Family home was $493,755, which was a yearly increase of only 3.5%. For Detached Single Family homes, it increased only 1.2% with the average sales price being $342,543. For single family homes the top average sales price peaked in April of 2018 at $536,794. For attached homes, the top price was $358,302 and that came in July of 2018. So despite the limited inventory, prices still leveled off considerably in 2018. The two main reasons for this were the increase in mortgage interest rates (nearly 1%) and we reached the tipping point in price for the Denver market. Most consumers couldn't justify spending so much of their annual income on homes that still either needed considerable updating, or weren't exactly what they were looking for. No longer was it cheaper to buy than it was to rent. Although the Colorado economy was humming along, incomes had not kept up with the pace of home appreciation. But despite prices leveling off, the number of homes sold in 2018 still decreased 5.33%, to 51,818 units. Prices in January of 2019 increased only 1.11% year over year for detached homes. For attached homes, prices remained strong, with a year over year increase of 4.15%. The average sold price for a condo or townhome now sits at $490,674.
*Greater Metro Denver Area includes the following counties: Denver, Douglas, Elbert, Jefferson, Adams, Arapahoe and Broomfield.
Good news for Buyers: For Buyers, there is finally some good news, with inventory up and prices leveling off. The need to bid way over asking, remove your right for an inspection, or the need to waive your appraisal requirements, are gone. Also, with homes sitting on the market a little longer, there are fewer instances of multiple offer situations, although depending on price point and condition, there are still instances where you have to deal with that. The good news is that interest rates have leveled off and in some instances decreased and average now around 4.41%. So, as a buyer, your bargaining power has definitely increased. Also, according to Federal Reserve Chairman Powell, interest rates will hopefully only adjust based on inflation (or lack thereof) and other economic indicators in 2019. So hopefully, that will keep interest rates steady throughout the year. However, that doesn't change the fact that the housing market is still cyclical based on the weather and school breaks. As a buyer, the best time to purchase a home is now through early March and then again after mid-July, when kids start getting ready to go back to school. April through the end of June is always the most competitive and has the highest prices. So, if you can purchase a home when it's most advantageous as a buyer, you should plan accordingly and contact one of our Sterling agents to help you through the process!
SELLER REPRESENTATION. I love selling homes. I enjoy preparing a home and getting it ready to sell quickly and for the best possible price. My "Sterling Service Guaranty" includes items such as professional staging, an in-depth market analysis, color flyers, virtual tours, open house campaigns, Showcased Listings on Realtor.com, just to name a few. I also can provide you with names of reliable and competent vendors, for those remodeling jobs that may need to get done, or even small ones, you simply don't want to do yourself. Another part of my service, that sets me apart from so many others, is that I make sure the home is professionally cleaned prior to putting it on the market, as well as once you've moved out, so you can just think about the exciting move ahead of you!
BUYER REPRESENTATION. My goal is to provide my home buyers with friendly, knowledgeable and personal service. I am highly trained and experienced in assisting buyers in a wide variety of purchases, from HUD homes, foreclosures, short sales, new construction, as well as your standard listing. I also specialize in the purchase of property through Self-Directed IRA's and when applicable, through the use of Reverse Mortgages. Whether your are looking to do fix&flips or fix&holds through your IRA, or use a Reverse Mortgage to purchase a home without making monthly mortgage payments, I can help guide you through the process. I have a comprehensive understanding of the various neighborhoods and market conditions within those areas and enthusiastically relay that knowledge and expertise to my buyers, making the home buying experience a pleasant and informative one.
SELF-DIRECTED IRA'S. Besides owning several rental properties personally in my IRA and using my IRA to purchase homes that I "fixed and flipped", I have also represented numerous clients with the purchase of property through their Self-Directed IRA's. Using the funds out of your IRA to purchase either rental properties or fix and flips is an investment strategy that not many people know about. The reason is simple, most brokerage houses, bankers, financial planners, etc., are not allowed to perform these transactions, so are not informing their clients of this opportunity. To take advantage of this tax deferred investment, there are numerous guidelines that must be adhered to. I have experienced first hand what needs to be done as both a buyer, seller and Realtor. If you are tired of the risk involved in the stock market or the nearly non-existent interest earned in CD's, owning real estate through your self-directed IRA can be a fabulous investment alternative. Please feel free to contact me to see how this can benefit you and how my relationships with general contractors, property management companies and New Direction IRA. Inc., a local leading provider of Self Directed IRA's since 2003 can make this a simple and successful investment for you. Please feel free to call or email me for additional information, or click on this link at: http://www.newdirectionira.com to learn more about self-directed IRA's and to find out when their next webinar will be offered.
Sterling Real Estate Group, co-owned by me, is is an independently owned real estate company, located in Lakewood, Colorado. My real estate agents bring years of experience in real estate, business and customer service. We specialize in serving many of the Metro Area Denver and Aurora neighborhoods, as well as the cities of Lakewood, Littleton, Golden, Highlands Ranch, Centennial, Parker and Castle Rock. My agents focus on the sale and purchase of residential properties as well as multi-family, rentals and fix&flip investments. Several of our agents too have purchased investment properties through their Self-Directed IRA's, as well as assisting clients to use Reverse Mortgages to purchase a new home. My goal as the owner of Sterling is simple: To provide superior service to my clients while promoting a positive atmosphere for my Realtors.
SPECTRA MORTGAGE. Besides having a competent real estate agent to help guide you through the home buying process, the next most important person throughout the transaction is a lender. Spectra Mortgage is a highly specialized boutique firm that was founded with the philosophy that a mortgage company should provide sound financial advice in the area of mortgage financing and that the people providing this service should be professionals. They believe that the key attributes that distinguish Spectra Mortgage from the others are Financial Expertise, Integrity, and Service. Founded by Wayne Tucker, CPA, Spectra Mortgage originates loans and provides mortgage services throughout Colorado. For additional information check out their website at: www.spectramortgage.com.
REVERSE MORTGAGES. Reverse mortgages are not understood by many homeowners, financial planners, investment advisors, accountants or even attorneys. As a result, these same people do not understand that Reverse mortgages can provide many benefits, such as supplementing income, increasing liquid assets, extending the life of your assets, minimizing income taxes and gaining additional financial flexibility in retirement. What's really exciting is that you can actually use a reverse mortgage to PURCHASE a new home, if you meet the necessary requirements with regard to age and equity. The reverse mortgage from 10 to 15 years ago, is not the same as the Reverse mortgage of today. Check out this link to find out the Facts vs. Myths of Reverse mortgages and feel free to give me a call if you want any additional information.