Ask the Colorado Dream House Team with broker/owner Dan Polimino. June’s Denver real estate market statistics are in and Dan discusses the changes in our current market.
- June real estate market stats
- The first thing buyers do when they’re about to pull the trigger on a home
- An interesting foreclosure investment opportunity in Larkspur, Colorado
- Our $250.00 marketing guarantee
Hi everybody, and welcome to this edition of Ask The Colorado Dream House Team. I’m Dan Polimino, live from Denver, Colorado on a beautiful summer day. I hope you are enjoying July. Can you believe it’s already mid-July? Where is the spring/summer selling season going? Today we’ve got some information about the first six months of the year and the June numbers. We’ll also, obviously, take your questions.
If you’re new to the program, welcome. Every Tuesday and Thursday, right here, we give you good data base driven real estate information that you can use anywhere in the country, whether you’re in Denver or you’re in Kansas. A lot of this information comes from our many years of experience and our thousands of transactions. Again, we hope we can help you. You’re welcome to chime in at any time. You can leave comments right here on Facebook, you can email us at firstname.lastname@example.org, or you can call us at 720-446-6325. We’re glad you’re here.
Alright. Let’s talk about the market update. The June numbers came out and it shows that the market is slowing a little bit. I actually didn’t need the June numbers to tell me that. Remember a couple of times on Ask The Colorado Dream House Team I was telling you that I kind of felt it in my bones? It was like the weather changing. When you’re in this business, and you’re doing as many transactions as we are every month, you really do have your finger on the pulse of what’s happening in the marketplace, so we could kind of feel it. It wasn’t that frenzy that we saw in March and April and early May. We could see that that frenzy was slowing down and the market was slowing down.
That, listen, is not necessarily a bad thing because the frenzy that was March and April couldn’t continue. We knew that that wasn’t sustainable and wasn’t going to be sustainable. What I think we’re getting to right now is a more realistic and a more balanced market. What do I mean by that? Houses shouldn’t sell in two days. Houses should sell in 30, 60, or 90 days. That is a normal, balanced market, and I think we’re headed that way. That’s what the numbers are saying.
The number of solds in June was down 4% from the number of solds in May. Again, not surprising. As you get later into the summer, there are fewer solds. On the flip side, the number of active homes, the number of homes that came to market in June, jumped. It almost hit 7,000 active homes. However, 6,200 went under contract. The inventory only increased by about 800 homes. 7,000 came on, 6,200 went under contract. Inventory increases about 800. Again, this is kind of normal, about what we see this time of year, and it’s not necessarily a bad thing. It just means we’re getting to a balanced market.
Other news on that front. The price of a single family home in Denver has hit a record high. It is $450,000. That’s both for a detached single family and a condo. Those combined, that average price is $450,000. If we’re talking about a single family home detached, no condos, the average price in Denver is now $500,000. Again, a record all time high. One of the reasons why I like to see the market slowing is because that’s not sustainable. You can’t have that type of growth year after year without some type of bubble occurring, so the fact that that’s slowing a little bit is a good thing.
I gave you a lot of information today about the market. If you didn’t get it all, feel free to call us or email us. We’re happy to help you. Alright. Let’s get to today’s questions.
“Dear Colorado Dream House Team,
Why are we having a hard time finding … We are having a hard time finding a home to buy. Is there anything we’re doing wrong or could be doing better?”
The answer is you’re probably not doing anything wrong, but if you’re not finding your home, you’ve got to ask yourself, “Am I not sure about my criteria?” Meaning, are you all over the board? Are you in like all kinds of different price points and all over the city? Are you sure about where you want to be and exactly what your criteria is? That’s what I would ask, number one.
Number two. The agent that you’re working with, are they listening to what you’re saying, are you communicating it well, and are they showing you properties that match your criteria? Let’s just say the first two points are spot on. You know exactly where you want to be and your agent’s a rock star. Let’s just say thatm and you still can’t find a home. Then you’ve got to ask yourself, are you being realistic? Does the house that you have, or the house that you’re looking for, does it even exist? It may not even exist. In which case, the next step would be to maybe start having your agent look for off market homes.
The other thing you can do is you could probably change your area, you could increase your price point, and you could sacrifice some of your criteria. I hope all that helps.
“Dear Colorado Dream House Team,
How do I know if a buyer will make an offer on my home?”
Here’s what a buyer has to do. A buyer has to come into your home and they have to answer three questions for themselves. They have to say A, “Do I love the location?”, B, “Do I like the layout and the finishes?”, and C, “Do I think it’s appropriately priced for both A and B?” If they answer yes to all three of those questions, you’re getting an offer, but if they answer no to even one of those, you are not getting an offer. I know that sounds overly simplistic, but that’s really what it is. That’s what it boils down to. They got to love the location, they have to love the layout and finishes, and they have to think it’s appropriately priced.
“Dear Colorado Dream House Team,
What do buyers do first when they decide to buy a home?”
That’s easy. They get on the internet. Husband and wife sitting at the table. They say, “Hey, what do you think about upgrading or downgrading or all of the above?” They get online, and the first thing they do is they start searching areas and neighborhoods and they start looking at what they can buy for that price point.
Second thing they do is actually go drive some of those areas and neighborhoods. They may even stop into an open house. Third thing they do is they usually call a real estate professional, somebody that they know or were referred to. The fourth thing they do is actually call a lender. Probably should call the lender first to find what you can afford, but they actually do that fourth. I hope that helps.
Listen, we’ve got a foreclosure opportunity for you. That doesn’t happen very often. As you know, there are very few foreclosures in the state of Colorado, but we’ve got one listed down in Larkspur, Colorado, which is just a little south of Castle Rock. House has great bones. It’s a walk out ranch, but like many foreclosures, it needs some work. It needs some tender love and care. It needs a little bit of a facelift, so to speak. If you don’t mind about the cosmetic stuff and you’re just looking for a good house with good bones on a great sized lot, wooded, beautiful, gorgeous area, then check out this house. Go to coloradodreamhouse.com/cinnamon. It’s 1905 Cinnamon Court in Larkspur, Colorado. Again, it’s a foreclosure, bank owned property. You might be able to get a good deal. Check it out.
Don’t forget about our $250 marketing guarantee. If you don’t know what that’s all about, go to our website, coloradodreamhouse.com/250, and read about how you potentially could have $250 in your pocket just for meeting with us.
That’s it for today’s show. We’re back again on Thursday. Thanks everybody. Have a great week.