Will 2021 mark the end of Denver real estate’s run?
Looking for a quick digest of what’s happening in real estate right now? We’ve got you covered:
National News
+ Colorado placed in the top 10 states people moved to during 2020, as ranked by U-Haul’s report of 1-way moves.
+ Pros predict that some of the next renovation trends will include a move away from open-concept living, a focus on outdoor space, and a rise in ADUs.
+ Whether you’re buying, selling, or staying put, Dave Ramsey offers his take on how the housing market will shake out in 2021.
Local News
+ 56% of economists think the Denver housing market will outperform the national average this year, hoisting our city to one of the top five hottest markets for 2021.
+ Some local economists believe the Denver housing market is running out of gas. They said, “while new home sales should match the pace of 2020, existing-home sales this year will fall and price increases in the months ahead will be more subdued.”
+ Our opinion? 2021 is likely going to be a fast-paced, appreciating market on all fronts.
+ Denver is the third hottest market for millennial homebuyers, ranking behind only San Jose and Boston. A whopping 59% of all Denver-area homebuyers in 2020 were from Gen Y.
Financial News
+ Freddie Mac forecasts moderate house price growth of 0.7-1.3% in 2021-2022 with mortgage rates expected to average around 2.9% until year-end.
+ The difference between second homes and investment properties is important when it comes to financing. Sarah Kuta of Realtor.com explains why it matters and how to keep yourself aboveboard.
The real estate market in 2021
Happy New Year! Looking for a quick digest of what’s happening in real estate right now? We’ve got you covered:
National News
+ 27 experts give their take on what the housing market will be like in 2021. Hint… most think prices will continue to climb.
+ Across the country, Generation Z will spending roughly $226,000 on rent before they can own a home, more than any previous generation. In Denver, this number balloons to $320,300. Time to capitalize on low interest rates, if you can!
+ The Case-Shiller U.S. National Home Price Index is showing that home prices have risen 8.4% in the last year, nationwide.
Local News
+ Renofi is projecting that the average price of a home in Colorado will reach $763,309 by 2030, making us the 4th most expensive state after California, Hawaii, and Washington.
+ Denver ranks 8th in cities with the highest inflow of new residents during the pandemic.
+ Local restaurant owner Josh Wolkon shares how you can help save local restaurants.
Financial News
+ Mortgage rates continue to remain near record lows at 2.67%, down from 3.72% a year ago.
+ Not looking to move, but wondering if it’s worthwhile to refinance? Check out Nerd Wallet’s refinance calculator to find how much you can save each month.
+ Forbearances rose for the third consecutive week, as roughly 2.83 million homeowners are currently suspending mortgage payments. Fannie and Freddie announced that multifamily property owners with existing forbearance agreements can extend their agreements for up to three months.
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Home prices see greatest gain in over 6 years as mortgage rates hit 50-year low
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National News
+ Home prices across the U.S. are seeing the greatest gain in over six years.
+ A report from the National Association of Realtors found that the pandemic has increased the percent of homebuyers looking for a multi-generational home, that the average purchase price jumped from $270,000 to $339,400, and that a growing percentage of buyers are headed to the suburbs, while less are heading to small towns.
+ Curbed came up with a list of 21 of the easiest home projects to tackle while you’re hunkered down at home this winter, without buying anything new.
+ With the continued presence of COVID-19, outdoor kitchens are growing in popularity.
Local News
+ 30% of Denver homes sold for more than list price (more than 22% nationally), adding nearly $16K to the sale price on average.
+ Josh Gould, VP of Stantec believes there are 5 reasons Denver will be a post-pandemic winner.
+ A new Stay In Place Program has been created to help West Denver homeowners that are struggling to pay their mortgages.
+ Pitbulls are getting a new lease on life in Denver, after voters passed Ballot Measure 2J to repeal the more than 30-year-old breed specific ban.
+ Rental platforms are facing fines as Denver cracks down on unlicensed short-term rentals.
Financial News
+ 30-year mortgage rates have fallen to 2.72%, the lowest rate in the last 50 years. Average rates have been below 3% for 17 consecutive weeks.
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Real estate news: the pandemic is shaping real estate, but the Denver market keeps speeding along
Looking for a quick digest of what’s happening in real estate right now? We’ve got you covered:
National News
+ COVID-19 hasn’t kept people from moving this year: permanent moves are up 1.94% and temporary moves are up 26.73% since 2019.
+ Families with school-aged kids are increasingly heading to the ‘burbs for larger homes and yards amidst the pandemic.
+ COVID has fundamentally transformed our relationship to home. Seven months in, find out how the pandemic is reshaping interior design priorities and trends.
+ Nationally, new homes are bigger than a decade ago, but new homes in Denver lost 197 square feet in that same period.
Local News
+ Four Colorado cities are in the top five best places to live in the country according to U.S. News & World Report’s list of 150 best places to live in the U.S. in 2020-21.
+ Homes are selling nearly twice as fast compared to 2019. If you’re looking to buy now, be ready to act quickly!
+ Apartment rents in the Denver Metro area recovered in the third quarter after taking a hit in the early months of the pandemic.
+ Denver Restaurant Week is offering a surprise fall edition from November 13-22. Check out their lineup of dine-in and to-go options to help support one of the 150+ local restaurants participating.
+ Niche.com ranked the 25 best Denver neighborhoods for young professionals in 2020. They ranked the best neighborhoods for families, too.
+ Join us in supporting those affected by wildfires in Colorado by giving to these fundraisers.
Financial News
+ Mortgage rates are holding steady at historic lows. Housing continues to propel growth and is helping to lift construction, manufacturing, and transportation industries that build new homes.
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Colorado Wildfire Relief
Monetary Donations
+ Denver7 Gives is a fund that passes 100% of contributions to the Denver area community. Select “Help Colorado Wildfire Victims” from the dropdown.
+ Donate to the 2020 Fires Relief Fund through the Community Foundation Boulder County to support individuals, families, and nonprofit organizations affected by the Cal-Wood and Lefthand Canyon Fires.
+ Give to the Grand County Wildfire Emergency Fund. 100% of donations go to support the needs of Grand County residents who have been evacuated, displaced, or have lost their homes during the Grand County Wildfires.
+ Donate to the Larimer County Fire Recovery Fund by United Way to help provide financial assistance to displaced families as they rebuild their lives in the wake of the Larimer County wildfires.
+ Donate directly to families and first responders affected by the East Troublesome Fire on GoFundMe.
Material Donations
+ Grand County Outbreak of Kindness is connecting volunteers and services with those who need them. Please check their Facebook page to see what items are needed and where they can be delivered.
+ Help pets in need by donating to Grand County Pet Pals. They can be reached at 970-887-2988 to find what their specific needs are at any given time. Financial donations can be made on their website.
Fundraisers
+ Buy a t-shirt from Wild Fire Tees, created by Colorado-based designers and marketers. 100% of the profits benefit wildfire victims.
+ Buy a t-shirt from Bonfire to support Colorado wildland firefighters and wildfire relief.
Real estate news: low mortgage rates can’t compete with housing price increases
Looking for a quick digest of what’s happening in real estate right now? We’ve got you covered:
National News
+ The national median home price rose 11% since last year — the largest annual increase in over 6 years.
+ COVID-19 has caused lumber prices to skyrocket more than 160%. Home buyers can expect to add about $16,000 to the price of a new house.
+ The share of mortgages in forbearance decreases to 3.4 million homeowners — a drop of 6 basis points.
+ With 84% of parents considering a home education model for their kids, back to school is affecting home buying decisions.
+ Think an empty nest is looming? Think again. 52% of young Americans ages 18 to 29 are now living with at least one of their parents.
+ When COVID-19 changes education plans, here’s how to set up a homeschool space anywhere.
Local News
+ Increases in home prices around Denver are wiping out savings from lower mortgage rates. Expect bigger monthly payments on single-family homes compared to a year ago.
+ Home prices in around Denver have increased 7% since January (6% for condos) — and they’re selling 10 days faster compared to this time last year.
+ RiNo is getting a new look and feel to help tame traffic.
Financial News
+ Violating the 30/30/3 rule may find some homebuyers overextended, unless they consider a few ways to get around it.
+ The average 30-year mortgage rate hit an all-time low of 2.86 percent in September, according to data released by Freddie Mac.
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Real Estate News: August 2020
Looking for a quick digest of what’s happening in real estate right now? We’ve got you covered:
National News
+ Think it’s cheaper in the ‘burbs? New interest from city dwellers is raising home prices in rural areas.
+ Looking for additional income or a place for family to stay long-term? COVID sparks renewed interest in ADUs.
+ Real estate markets defy the norms as homes are selling unseasonably fast.
+ Airbnb CEO Brian Chesky thinks international travel will never be the same. How have domestic vacation rentals fared?
+ Covid is reshaping what buyers prioritize in their home search. Here are 6 things buyers are now looking for in their next place.
Local News
+ Love hitting the trails? These are the 10 best neighborhoods for hiking enthusiasts.
+ Homes are selling in half the time for 15% more than they were at this time last year.
+ Denver is continuing to decline in housing affordability, but it could be worse.
+ How creating a safer, people-oriented space has helped Larimer Square get back on its feet.
Financial News
+ Mortgage rates are beginning to inch up as housing demand continues to accelerate.
+ Outcry from industry groups and lawmakers push Fannie and Freddie to delay the mortgage refinance surcharge until December 1st.
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Colorado’s population growth is slowing, and that could spell economic trouble down the road
Source: Aldo Svaldi of the Denver Post
While Colorado leads the country in some areas (like housing prices), the birth rate isn’t one of them. While the national birth rate is hovering around 1.8 births per woman, Colorado women are falling behind at 1.7. Why does this matter? To keep the population stable (and prevent things like labor shortages in the future), the birth rate needs to be closer to 2.1 births per woman. Colorado ladies, if you’re on the fence about adding another little one to your brood, here’s a reason for the “just do it” column.
Denver Real Estate Market is Warming to Buyers
Although the market remains in the favor of sellers, it’s not all bad news for buyers. Lower interest rates and a higher number of listings mean it’s a good time for buyers to talk to their lender and start their hunt! Good news for sellers comes in the form of the highest median price for a detached single family home, ever!
Days on the Market
In June 2018, homes in Denver lasted an average of just 18 days on the market. Buyers who aren’t quite ready to make a decision have a slight advantage over last year, with an average of 24 days before a home is sold in June 2019. However, the summer is certainly heating up as this is the shortest time on the market we’ve seen homes sitting in 2019 thus far.
And while the market is speeding up this summer, on a year-over-year basis, it’s starting to slow since it’s fastest pace in 2015.
Inventory
Denver remains a seller’s market for the seventh year in a row, with an average just shy of 2 months housing inventory as we head into July. The news isn’t all bad for buyers, though – the city was up to 2,451 active listings in June. The last time buyers had this many options was back in October of 2013!
Denver Home Sales are Up, as Housing Inventory Grows
Last month we watched housing prices jump above $500k, just as they did for the first time in April 2018. Yet, even though prices are still sky-high, we’re living in a market that is stronger than last year and also friendlier to both buyers and sellers. How so?
Buyers are benefitting from lower interest rates (down .5 percentage points from last May), more housing inventory (36% more homes for sale), and a smidge more time (roughly half a week more) to see properties before they’re snatched up.
Sellers are benefitting from — wait for it — prices staying high.
Excluding a national event that would radically change the housing market, the demand to live in Denver continues to keep housing prices high. The U.S. Census reported Denver among America’s top 10 cities in overall population growth between 2017-18, with an increase of 1.5%.