Records Have to be Taken in Context: How the Resurgence of ‘Home’ is Impacting Denver-area Housing
It’s been quite a year, and despite all of it, or more accurately because of all of it, the metro-Denver housing market is coming out the winner.
Remember a time when we would get up, get ready for work and get out the door, returning only to have dinner, wind down and get to bed. Today, our home has become everything. It’s become infinitely more important as it’s our refuge, our workplace, classroom, meeting room, restaurant, escape and for some, our isolation.
The Denver Metro Association of REALTORS® (DMAR) October Market Trends Report highlights how this resurgence in our home has played out in the stats. Let me share a few to highlight how extreme this market is:
Denver’s real estate market has not only recovered from March and April’s loss; it has picked up the pace from January and February. As of the end of September, year-to-date closed homes were up 1.61% over last year and sales volume was up 7.53%. The median close price was up 6.9% - that’s an incredible equity win for our homeowners.
So the question is… when will this end? Or worse... will it POP?
The economy has been shaken for sure and, remember, we were heading towards a recession before COVID-19 hit our shores. But the fundamentals support our continued appreciation and strong housing market, giving buyers confidence to pay a little more to get the home of their dreams and sellers the opportunity to capitalize on their equity and move some desperately needed inventory.
On the economic front, consumer confidence posted its biggest gain in 17 years; with respondents indicating they were more likely to make big purchases in the month ahead. In fact, folks are already spending. Consumer spending was up 1.0% in August after increasing 1.5% in July. Remember, consumer spending is 70% of our GDP, which will be a strong measure of our recovery.
Personal income dropped 2.7% in August, but that reflected the expiration of unemployment insurance benefits. Wages and salaries actually increased with Denver seeing a strong 3.42% year-over-year gain. Personal savings decreased in September again due to the end of the unemployment insurance but overall personal savings is actually double what it was last year. Which makes sense given our inability to pull out our wallet for travel and entertainment.
This increase in savings and wages further support the stability of housing; the ability for homeowners to weather the current pandemic storm.
Current homeowners have another huge advantage: equity. With delinquency rates up and forbearance the topic for months now, it is no wonder people are worried about the housing bubble busting. But the equity numbers tell a different story, one of stability. The average Colorado homeowner gained $17,000 in equity last year, dropping the current percentage of homeowners who are under water to a low 1.5%. In fact, only 1.4% of Denverites are underwater. So, even if someone was at risk of losing their home, with our current above-asking close-to-list average, they can quickly sell their home on the open market and avoid foreclosure.
I am a huge fan of homeownership. I believe it gives us a place to get grounded, get involved and feel safe. But I also believe in the access it gives to build wealth. 2020 saw five of the stock market’s 50 most volatile days. As consumers, now is the time to take advantage of increased affordability through low interest rates and rising wages. As Realtors, it’s imperative to advocate the stability real estate provides our clients and identify those who need us most.
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.
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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.