3 Months of Price Decline in the Denver Metro Real Estate Market

3 Months of Price Decline in the Denver Metro Real Estate Market

Dan Polimino discusses 3 months of price decline in the Denver Metro Real Estate Market, the increase in home inventory, and the details of who watches over your home while it’s vacant and on the market. 

 

Full Transcript

00:01                                     Hi everyone and welcome to Ask the Colorado Dream House Team I'm your host Dan Polimino coming to you live from Denver Colorado and we're talking about everything that is. Real estate and it doesn't matter if you live in Denver or any other part of the country. All of the information we give you comes from hundreds of transactions and real estate experience over the years. It's all database driven information. So you can use this again wherever you are. We invite you to join the show ask questions leave comments right here on Facebook. We're looking forward to hearing from you. You can always call us at 7208973984 or a team at coloradodreamhouse.com and of course if we can help you buy sell or invest in real estate. We'd love to hear from you.

00:49                                     Two things we like to accomplish every show we want to give you some market information and we also want to answer your questions. All right. So let's start off with the market update. The September numbers came out and not surprisingly sales are down again. But what is surprising is that sales are down really big 21 percent. Sales are down from August to September. That was a big big jump. So now we've had three months of declining sales. July August and September. Most of you are going to say Dan what does that mean. And I say I don't know yet again up to this point. We had been calling it seasonal slowdown. We thought that sales would pick up in September. We've seen it out on the street. So anecdotally we're seeing sales pick up. I think we won't really know until we see the October numbers if we have another down month in October then I am confident in saying that the market has flattened out and the correction is potentially here.

01:53                                     All right. So that's just you know food for thought. In addition what do the numbers look like. Well the good news is that there's over 60 500 homes on the market. This is the most inventory on the market since June. So if you're one of those buyers that's been struggling to find that house if there's going to be a time where you're going to find it it's going to be now again the next highest month that we've seen all in 2017 was June when 6900 homes were on the market and now we've got sixty five hundred homes on the market. It's still not a lot of choice for a city of 3 million people but it is much, much better now how many homes came to the market.

02:36                                     About 1500 homes came to market in the month of September and about forty nine hundred went under contract. So that means that overall we had an increase of about 600 homes in inventory. Other piece of good news is that sales are on pace with previous years meaning the number of homes that we've sold through the end of September. We're sitting at about 41000. That's kind of on pace for what we've seen over the last two or three years. So that's a piece of good news. The median price of a home again fell. Not a lot but it's down to 425. That combines both single family and condos but it dropped again for the third month. So again if you're a buyer this is good news.

03:24                                     Prices are coming down. If you've been in the market and you're looking you know that you're getting alerts with price decrease price decrease price decrease. If you're a seller take this information to heart don't dig in your feet and say hey I'm not going to adjust the price of my house because the market is telling you something different. All right I hope that helps you guys with the September numbers if you want more about that. And you want to dig into a deeper. Contact us at the Colorado dream house two questions dear Colorado Dream House team what do you think about building new versus buying resale. I know why you're asking this question because you're frustrated. You've been looking and looking and looking and nothing's coming up on the market that you want to buy in the resale market.

04:10                                     And so now you're thinking about building. It's an excellent option obviously because you can maybe build where you want pick out the lot that you want. Obviously pick out the house the style the finishes. It's very appealing. What are the downsides the downsides is the first and foremost is the most expensive way to go. Right. The price of labor is at an all-time high. The cost of materials at an all-time high. It is costing builders an absolute fortune to build that house and then they got to make a profit. So if you're ok going the most expensive way then I'd say build. Obviously the other downside is the time. Right. Average build times with a shortage of labor is eight to 12 months. So you've got to be able to wait and you've got to be OK with waiting.

04:55                                     And again you're going to go the most expensive route. My thoughts on new versus resale. Obviously if you've got to do something sooner resale is the way to go. Obviously if you're looking to get a deal resale is the way to go. Dear Colorado Dream House team what do you recommend home sellers do to get ready for winter Well a couple of things. We were tackling this question today in the office because we have a number of homes that are on the market that are vacant. OK. The seller has moved out. They got a relocation they're living in a different place. And the question is who's watching that house. Well the answer is we are you know we take on that responsibility as your age and to take care of that house in cooperation with you of course.

05:43                                     And so what you want to make sure is if the house is vacant is the heat on and set to a temperature where at least the pipes aren't going to freeze and you don't want it bitterly cold in there you don't want it. Fifty 55 degrees in there when people are coming for a showing. I say set it for like 66. Is someone like your realtor or a handyman coming on and checking the house on a regular basis. Realtors have a tendency to leave doors open leave windows open leave whatever open you don't want that going on in the winter. So somebody better be checking the house. Third and foremost if it is vacant and we get some snow who's clearing the driveway here who's clearing the walkway. The last thing you want is some buyer coming up to look at your house and slip on your sidewalk fall and hurt themselves.

06:27                                     So these are all things to consider. If it's a fake it if it's not vacant and you're just getting ready for winter obviously blow out the sprinkler systems. Make sure you do the fall cleanup around the house get the bushes trimmed in the leaves picked up and make sure it's looking as nice as it can in the fall. All right. Hope that's helpful. Dear Colorado Dream House team if you're thinking about investing in real estate where is the most opportunity Well obviously it's in rentals right. Because the rental market is still pretty robust. The question is is where do you get a rental and you follow the same rules that you've always filed in real estate which is by location. Right.

07:09                                     And then you've got to buy price range because you've got to figure out what is that sweet spot in rent that rents pretty well rents consistently without a lot of issues or problems. And that's probably that three to 500 price range so if you're looking to buy you're looking to buy in that three to five hundred price range because chances are you'll get a good amount of rent the property will potentially cash flow and you've got the upside of selling it later on for some appreciation. The one thing I would advise you not to do is don't get into fix and flips. It's just not a good market in Colorado for fixing flips there's just not enough homes in order to buy and turn a profit other area I would point you to is look at new developments in other words if there's a builder like I know a friend of mine who's proposing to put up a new condo development of 90 units say 90 to 115 units you might want to be watching these new condo developments like the Coloradan that are going up.

08:12                                     And if they're in that three to five hundred price point then I would say absolutely get in early and buy a unit in one of those new developments at the right price point. Do the numbers make sure our cash flows. And that's a really good investment opportunity. In fact I think that might be one of your best. So think about that as well. If you want more information about investing in real estate obviously contact us at the number on the screen behind me at the Colorado Dreamhouse team. Last thing I want to tell you about as we've been telling you about all these properties coming on the market and I want you go to our Web site and go to coloradodreamhouse.com/Lisbon.

08:52                                     Lisbon is a great house out in Centennial priced at 425 it's right in that price point that a lot of people can afford. It is the average median price of currently what's going on in Denver but six bedrooms three baths finished basement great backyard terrific neighborhood. I think you're going to like it again. Colorado dream house dot com forward slash Lisbon. The link is right here on the post. All right everybody. That's it for this week. Have a great weekend and we'll talk to you again on Tuesday.

Leave a Comment

Your email address will not be published.