Real Estate News - August (copy 01)

Real Estate News and Market Report August 2020 

Dear ,

With so many uncertainties in 2020, the real estate market continues to march forward at a record pace. Take a few minutes and read my market report for the latest details about real estate sales in the Denver area.

On a personal note, my oldest daughter recently graduated from Grandview High School and is preparing to start her college education at Oregon State University. I'm proud of her accomplishments and excited to see what the future holds for the class of 2020. Congratulations to all of this year's graduates and good luck this Fall!

I always ask my clients for details about why they are moving to better understand their needs. Whether it is for a larger home, great schools and parks, or proximity to a job, taking the time learn about your personal situation is an important aspect of my job. 

If you or someone you know are planning a move, give me a call today. My professional and personal approach to real estate will not disappoint.

Best regards,

Todd Holmes

Broker Associate, Realtor®

RE/MAX Alliance

Mobile: (303) 570-3419

[email protected]

http://www.ToddHolmesRealEstate.com

⭐️⭐️⭐️⭐️⭐️ Five Star Agent

Inventory, Inventory! Wherefore Art Thou Inventory?

Is housing inventory ‘Social Distancing’? Are homes ready to sell hiding behind a mask?

Over the past few months as the economy has reopened, the local housing market has been on fire! Let me explain.

Before I get too far along, the following data was taken from the local Denver multiple listing service with the following parameters: seven counties (Denver, Adams, Arapahoe, Boulder, Broomfield, Douglas, and Jefferson), residential single family homes.

Simple Economics, Right?

Supply is REALLY low. Demand is REALLY high. Values are rising. Here are some facts based on reviewing the latest data:

Comparing July 2019 to July 2020, 

• Inventory is down 26.1%

• Months Supply of Inventory is down 63.2%

• Average Days on Market is down 27.5%

• Home Values are up 7.8%

Charts are at the bottom of this report.

What Does This Mean?

Experts continue to predict the housing market to continue to appreciate (but at a slower pace). New home construction has slowed following the pandemic putting more pressure on existing housing supply to meet buyer demand. Mortgage rates remain at ALL TIME LOWS allowing more buyers to qualify for more house.

In my professional opinion, the next few months are likely to see an increase in new listings (call if you are ready to sell) and a moderation in buyer demand. Home values are likely to remain at current levels through the rest of the year. 

With a renewed interest in owning real estate (home offices, zoom spaces, family time, etc.), the interest in owning your own home is expected to drive another strong year in 2021 and beyond!

So, What’s The Problem

Without enough housing inventory available, buyers have difficulty finding and purchasing homes. Many listings receive multiple offers (driving up the price) and only one buyer successfully purchases the home. The rest are still looking. 

The only fix to this problem is an increase in home inventory. This historically happens in the second half of the year in the Denver market. PITCH: Call if you are thinking about selling!

But, Will Home Values Decline With Increased Inventory?

Since the inventory numbers are so low, it would take a SIGNIFICANT increase in home inventory to drive down prices. Most experts predict an increase in home inventory and values to level off for the rest of the year. Historically, home values in the Denver area increase in the Spring buying season which is expected for 2021. 

This Is Helpful, But What About My Home?

Easy…

give me a call, text or email

and let’s talk about the market activity in your neighborhood. I am here to help you, your family, friends, neighbors, and coworkers.