Dan Polomino is back from vacation and ready to discuss July’s real estate trends and the approaching second selling season.
- The seasonal slowdown
- The second selling season is approaching
- September 3rd to Thanksgiving
- Sales in the month of July were down 20%
- New homes that came on in July were 6,300+
- Still at historic lows with active listings
- A foreclosure opporunity in need of “sweat equity”
Hi, everyone, and welcome to a new edition of Ask The Colorado Dream House Team. I’m Dan Polimino, coming to you live from Denver, Colorado. Some of you have been saying, “Dan, where have you been?” Well, I went on vacation, so sorry I’ve missed you for the last several weeks, but I am back. I’m refreshed, and I’m ready to tell you what’s happening in real estate.
Now, again, if you’re new to the show, welcome. We’re happy to have you here. You don’t have to live in Denver to get something out of this show. A lot of the questions that people submit are just good real estate questions that can help you wherever you are. You could be in New York, Florida, Los Angeles or Denver. It’s just good database driven information about real estate from the many, many years of experience we’ve had.
So welcome. As always, you can leave us a comment here on Facebook, and we’ll answer those questions, or we’ll use one of your questions in a future segment. You can email us, or you can call us. Of course, we’d always love to hear from you.
All right, so what’s happening in the market? Well, the July numbers came out a couple of days ago, and not surprisingly, everything is down. But again, if you’ve been watching this show for the entirety of this year, you know that I’ve been preparing you and getting you ready for what we call the seasonal slowdown.
Traditionally, right after the Fourth of July, people are on summer vacations, and the market slows down, and that’s exactly what happened again this year. How much? Quite a bit. Sales in the month of July were down 20%. That’s big. We [inaudible 00:01:40] usually see that big of a drop, but sales were down 20% from June to July.
Some other numbers to point you to. So what does that amount to? That’s about 1,200 less or fewer homes sold in July than in June, okay? Now, we’re already at pretty low record inventories. Remember in June, we were talking about homes for sale, active on the market, being in the 7,000 range. Now, we’re sitting at about the 6,200 range.
New listings that came on in July were 6,200-plus. Listings that went under contract in July were 5,500, so there’s a difference of inventory growing to the tune of about 700 homes. Not a lot. If you’re waiting for one particular month, where a lot of homes are going to come on the market, it’s not going to happen, all right? Inventory is going to continue to sit in the 5,000, 6,000 and 7,000 range, and it’s not going to get any higher.
Some other numbers to give you too, so we’re still at historic lows. Active inventory right now is at 6,400. Most active price range, not surprisingly, $300,000 to $500,000, right? That’s where most of the homes sold. So out of all of the homes that sold in July, half were in the $300,000 to $500,000 range. And the price for a single-family home in Denver and the surrounding suburbs fell 1%. It’s the first time home prices have decreased in quite some time. But it fell 1% from June to July, all right?
So what does this mean? Well, we’ve expected this. The question is will it last, and my answer is, it will not last because what we’ve got coming is the second selling season. In fact, the first question today to us is, “Dear Colorado Dream House Team, I’ve heard you talk about the second selling season. Can you tell me exactly what that is?”
And the answer is, yes I can tell you. The second selling season is the second-best time to sell a home in Colorado. Again, the first best time is the end of March through the end of May. Second best time to sell a home, right after Labor Day right to Thanksgiving.
So I think we’re going have one more good, big push. I think there’s going to be some buyers in the market. I think we’re going to see some brisk home sales in September, October, and November, and then I think it’s going to cool off again for a while. And I mean December, January, February, March, and we’ll find out whether or not this is a seasonal slowdown or this is kind of the slowdown in the market that we’ve been anticipating, all right?
So again, if you’re thinking about selling, some people have said this may be the last best chance at peak prices, meaning the second selling season, September to Thanksgiving, all right? We’ve been talking to people the whole month of August about getting their homes on the market right after Labor Day.
So all of our discussions are helping people get their homes prepped, ready and in the MLS for September 6th, 7th, somewhere around that neighborhood, 5th, 6th or 7th. If that’s you, and you’re thinking you want to sell, start talking to us right now so we’ve got three weeks or so to prepare, all right?
“I’ve heard the reports of the slowdown in the market. Does this mean we missed our opportunity?” Well, that’s kind of what we just covered. You didn’t miss our opportunity. I think you’ve got one more shot at it, and that’s September through November, so again, let’s talk.
“Dear Colorado Dream House Team, Which county had the highest average price for homes for sale?” Well, that’s a tie between Boulder and Douglas County. Both counties had the highest average home price for sale. They’re both very wealthy counties, particularly Boulder and Douglas County. Lots of homes for sale, really crazy statistic I saw today for a client of mine who lives in Castle Pines Village, was thinking about buying in Castle Pines Village.
But we were looking from $1.5 to $3 million, and there were 105 homes on the market for sale just in Castle Pines Village. That’s crazy that you’d see 105 homes, considering how low inventory is. So I don’t know what’s going on in Castle Pines Village, but there’s a lot for sale there right now, and that means that the leverage swings away from the seller and to the buyer. So the leverage is in the buyer’s corner. They’ve got an opportunity to make a deal in Castle Pines Village right now.
And that’s pretty much the wrap-up. A couple of weeks ago, I was doing this broadcast, and we told that we had a rare foreclosure. We don’t get a lot of foreclosures anymore to sell, but we had a rare foreclosure in Larkspur, and it went on the market and boom a week later, snapped up at full price. Foreclosures in this market can sometimes be really good deals, and lo and behold, we’ve got another one coming on.
So if you’re somebody likes to get a good deal, if you don’t mind putting in some sweat equity and giving the place a little facelift, contact us at The Colorado Dream House Team, 720 446 6325, and we’ll tell you about the foreclosure that’s coming on the market tomorrow.
Last but not least, don’t forget about our $250 marketing guarantee. What’s our $250 marketing guarantee? It simply states that our marketing is better for your home than any other real estate team or agent, and if it’s not, we’ll pay you $250. All you have to do is call us, meet with us, review our marketing plan, then go meet with our competition. And if theirs is better than ours, you can hire them, and we’ll pay you $250. It’s that simple.
All right, everybody. We packed a lot in today’s show. We had a lot to cover. I’ve been gone for a week. I had a lot to tell you. So let’s talk again on Tuesday with another episode of Ask The Colorado Dream House Team. Have a great weekend everybody. We’ll see you then.