Denver, CO’s Real Estate Did Not Surprise - It Delivered
Homes are safe places providing joy, safety, and stability. As the world spirals, real estate remains a rare silver lining. Demographics and record-low interest rates drive demand while the uncertainty of jobs and schools weigh heavy on sellers. Even as builders rush to fill the market gap between buyers and sellers, their efforts will be determined by the stock market’s resilience.
Last week’s devastating U.S. Bureau of Economic Analysis report documented of the worst U.S. economic contraction of 32.9% from April to June, wiping out five years of positive growth. Negative
economic indicators like high jobless claims and closing businesses are driven by the never-ending spread of COVID-19 cases.
Here’s what I see going on in the market.
Let’s start with the sellers. They’re not budging. Inventory continues to strain the market with 6,449 active listings at the end of July 2020, 31.1% less than July 2019. The uncertainty of the job market, the inability to find a replacement home, and the now the stress of homeschooling have sellers thinking twice about listing. Meanwhile, Denver saw New Home Pending Sales up 17.9% in June 2020 - 22.9% more than June 2019 – and builder confidence rallied in July to meet the suburban demand trend with smaller homes void of shared spaces.
Alternatively, buyers clamored for homes that are priced right and staged well, with 31% of detached homes selling for over asking and average days on market dropping 7.7% year over year and median dropping 36.4%. First-time homebuyers,
downsizers, and investors drove the demand for $300,000 and $500,000 valued homes to close at 100.6% of the list price. Buyer demand increased for mansions as homes valued $1M+ experienced 55% more homes sold in July 2020 than July 2019, pushing
the average single family detached average above $601,863 – a 10% increase over last year.
Speaking of McMansions, the two highest priced home sales in July were a $7-million-dollar home in Boulder and a $5.985-million-dollar home in Cherry Hills Village.
For each week in July, Denver ranked in the top six housing markets in the nation by Realtor.com’s weekly measure of market recovery - and we felt it! 6,664 homes closed in July which came from June’s record number of pending home sales, breaking the previous record of 6,230 homes closed in June 2017. Low-interest rates and pent-up COVID-19 demand pushed record-breaking, short-term stats. Demographic changes will benefit the long-term outlook by further increasing housing market demand.
Low-interest rates not only fueled demand, but gave buyers a Christmas present in July! As I noted, the average closed price for a single family detached rose to $601,863, up from $547,537 in July 2019. If I calculate a payment at today’s 2.99% interest rate with 20% down for the median home price compared to a year ago, home buyers are now saving $43/mo.
Now is the time to stop paying your landlord’s mortgage and move into a position of wealth and stability.
What keeps me up at night? The stock market. As CNN’s Fear & Greed Index moves further into Greed and Citigroup’s Panic/Euphoria Index points towards extreme Euphoria, both point to lower stock prices within a year.
All signs point to an excruciatingly long economic recovery as COVID-19’s death toll increased to 155,000, positive cases doubled with no hint of slowing down, high jobless numbers and unemployment claims, and Yelp’s business tracker shows another 15,742 businesses closed permanently in July.
Real estate, however, continues to show strength. Looking to September’s market trends report covering August’s data, July has a potential record-breaking 7,122 pending home sales - 27.47% higher than September 2019.
Now, that lets me sleep better at night!
Your Partner in Building Wealth through Real Estate,
The Rueth Team of Fairway Independent Mortgage Corporation
The Rueth Team is dedicated to our clients success. It is this driving mission that keeps our team constantly learning and pushing beyond our boundaries. We find the solutions other lenders simply can’t (or won’t). We make a commitment to each borrower, fulfilling it with hard work, constant communication and creative problem solving. When a referral partner gives our name, they are confident knowing they are giving their clients the best chance of a smooth, successful experience.Learn More
NO OBLIGATION TRAINING: Market Mastery & “Done for You” Marketing tools delivered every 3rd Thursday (occasionally Tues) of the Month so you MAKE MORE MONEY! Nicole Rueth with Fairway Independent Mortgage Corporation, together w/ guest speakers from a range of professional disciplines, will be presenting monthly updates on industry statistics and market news you can use to help educate and motivate your buyers and sellers. Walk away with talking points, slides & information to set yourself up as an industry expert.
Alison P. from Wheat Ridge, CO
Nicole was wonderful to work with! The experience was so much better and more personal than working with a large company where you might not have contact with the same person throughout the process. Nicole was extremely communicative, easy to reach and talk to, and went out of her way to make this the most positive experience for my family. She worked so hard to meet our tight deadlines and made the entire experience smooth and stress free. I would 100% recommend working with Nicole and the Rueth Team!
stacieandtomwedding from Denver, CO
Nicole and her team were responsive, professional, and supportive as they walked us through every step of the loan process. We highly recommend the Rueth Team and will reach out to them with any future needs!
Natalie W. from Idaho Springs, CO
We’ve used The Rueth team twice now and have had a seamless experience both times. She and her team are knowledgeable, friendly and helpful. When I contact them they are very quick to respond. I would continue to work with The Rueth team in the future!
Shelby from Denver, CO
I used Fairway and Rueth’s team when purchasing a home recently and they were outstanding throughout the entire process. One of the staff on the team was even out on leave for most of the process and you wouldn’t have even noticed. Everyone I worked with provided very friendly, personable and knowledgeable service. I knew what my options were and everything was done in a very timely fashion. They even were able to find me some closing clost assistance so that I was able to have some money in my pocket left at close to do some work on the house. This was the third home I’ve bought and Rueth’s team was by far the best mortgage company I’ve worked with and I would recommend them with my full confidence.
Andrew C. from Wheat Ridge, CO
Nicole was fantastic to work with. She's responsive, knowledgeable, and able to make last minute changes when necessary. Working with her was a nice change from big-box mortgage companies. When last minute things needed to be fixed she did them promptly, and made sure we made it to closing without a hitch!
Mr. and Mrs. Walls from Idaho Springs, CO
We were impressed with the professional, personable service we received from Nicole and would recommend her to other home buyers. She helped us get pre-qualified quickly, making our search more productive.
Kathleen Cain from Palmer Lake, CO
Excellent team! Would highly recommend! If I ever have to do this again I would call Nicole Rueth! Her response to any of my questions was answered immediately and with great accuracy! Couldn't have been any better!
Paige M from Morrison, CO
Nicole and her team did an amazing job not only in keeping me informed of all the processes that go into selling and buying a home, but they were professional and knowledgeable! They answered all my questions, and made it easy to understand! I will never use anyone else!
april3lynz from Colorado Springs, CO
Absolutely AMAZING group! I had a really rocky start with my home buying experience. I had a horrible realtor and I was going to go through a different lender. I dropped my horrible agent and found an amazing realtor who was just phenomenal, and she referred me to The Rueth Team. My experience with them was quick, painless and simply amazing. I had very little stress and their team was so helpful. I had a moment of panic and I called, they were able to explain everything to me without confusing me more and went over every detail of my process moving forward with me. They had no hidden fees and were straight up and up front with me the whole way. I'm extremely grateful to them. In less than a month I am moving into my new home!!
Jeff D. from Denver, CO
I've closed two mortgages prior to this one with The Rueth Team, and this was by far the smoothest lending process I've had. Nicole, Peter, Emily, and Robbin were terrific communicators, provided me with honest feedback, and were simply easy to work with. They're true professionals and I'd happily work with then again on my next loan.