From the Heart, Hearth, & Home of Liz Richards
Well, if there is one thing I love about real estate is that it is NEVER, EVER boring! Just when you settle into a rhythm with the market, it changes. Sometimes the changes are much anticipated and sometimes they come out of nowhere and slap you in the face or kiss your cheek, depending on your perspective. Never, in my history of selling real estate, have I experienced such a massive lack of inventory. The proof is in the pudding…
The numbers say it all i.e.
- In February 2020, there were 1,989 active listings in Denver. In February 2021, there are only 788 (as of today).
- Economists are predicting an 8-10% rise in values in Denver this year.
- LIV Sotheby’s International Realty saw an average sales price of $960,600 in 2020, up 14.28% from $842,850 in 2019.
According to the Denver Metro Association of Realtors Market Trends Report:
- In January, closed home sales were down 42% month-over-month.
- The average closed price for attached & detached dwellings was $550k in January – up almost 2% from December.
*Statistics provided by REcolorado®, Denver Metro Association of Realtors, and LIV Sotheby’s International Realty.
So what does this mean? Clearly, it’s an excellent time to sell. So far this year, every contract I have written on behalf of a Buyer has been a multiple offer situation. EVERY. CONTRACT. WOW… Never has there been a more defining moment for the importance of having an experienced real estate agent on both sides of a transaction. I cringe at some of the ineptness I see with listing agents leaving money on the table for their clients and buyer’s agents missing the mark when trying to secure a home. Aside from exceeding asking prices, we are seeing appraisal gaps being filled, inspections being waived with only the right of termination, and extra earnest money being offered. I’m employing some guerilla tactics on behalf of my buyers: 1) reaching out to past sales and expired listings to see if the homeowners are interested in selling 2) reaching out to my network of agents, clients, friends , and referral partners consistently with my buyer’s “wants and needs” and 3) good old fashioned letter writing to homeowners with homes that match my buyers’ needs. At one time in my 20s, I had considered a career as a private investigator and now feel that I get to scratch this itch with my ability to track down properties. With such a lack of inventory, the thrill of the hunt is alive and well.
A common question and concern I often hear:
“Are we now in a bubble??”
My simple answer is emphatically, “NO.” As I wrote in my last newsletter, Colorado is indeed the Belle of the Ball. The mass exodus from the coasts to Colorado continues. People yearning for sunshine and the playground of the mountains paired with less density keeps them coming. The ability for buyers to work from home and Zoom to meetings has opened the flood gates for relocation to Colorado. The majority of my buyers this year and last are from out of state – looking to set up roots in an environment tied to healthy living, decent tax structure, and healthy employment numbers. In a nutshell, we are all very lucky to be in Colorado!
As a side note, I am selling quite a bit in Summit County. This has been a natural result of me spending more time in the mountains and buying and selling real estate of my own. Ping me if you are interested in learning more about the mountain markets… I have great connections in Aspen, Vail, Steamboat , Crested Butte, Winter Park, and Telluride to boot!