From 2000 to 2006, all you heard about in the real estate headlines was about the suburban sprawl. People were moving out of the city in droves to find wide open spaces, amazing views, space between your neighbors and a slower, suburban type of life. Cities like Parker, Castle Rock, and Sedalia took off and became boomtown cities overnight. Builders seized the opportunity, giving people massive homes for a fraction of the price they would pay in the city. Moreover, for the first time, many people had land or at least an enormous backyard with a three- and a four-car garage.
I am sure you have heard the old saying, “What goes up must come down!” That’s exactly what happened in the boomtowns. The rise and appreciation was too quick and too soon and when the real estate crash came, these cities took the hardest hit. The good news is that the value in the neighborhoods recovered from the crash, but now they are facing an entirely new problem.
The suburban sprawl that birthed these cities has now reversed. The trend 10 years after the sprawl began has taken a complete 180. People are no longer interested in living in the suburbs and are moving en masse back to the city. Let me give you an example of what’s going on. As I am writing this column, there are 97 active homes for sale in Castle Pines Village. Compare that with the City of Cherry Hills Village where there are only 40 homes for the sale in the entire city! There is very little demand to live in Castle Pines Village right now because people perceive it to be too far from the city. We have a 1.4 million-dollar listing in Castle Pines Village that has had about five showings in 5 months. Now put that same 1.4 million-dollar home in the City and County of Denver and it will be sold in about a week. That’s how much of a difference there is right now between the two areas. Denver is hot, people want to live there, the taxes are low, and it’s close to everything. I cannot explain it, but client after client we speak with either wants to live in Denver or as close as possible to Denver. In 2015, it’s all about moving back into the city, and the suburban sprawl is over.
Does this mean that if you have a house to sell in Parker, Castle Pines Village, or Sedalia you have no hope? No, it doesn’t mean that at all; in fact, in certain price ranges, homes are selling just fine in those areas. If you have a luxury property that is a large home, or has acreage or is far out, you are going to have difficulty selling it. You will need to be extremely aggressive with the price, and you’ll need a well thought out strategy on the pricing adjustments, specifically when and how much. You’ll need a real estate team with a heck of a marketing plan that can cast a broad net and reach a large number of people in Colorado and around the United States. Finally, a real estate agent with some imagination and not afraid to think outside the box or try new marketing techniques is a must.
If you would like to speak with us about your home, buying, selling or investing in Colorado you can reach us at firstname.lastname@example.org or 720-446-6325.
Dan Polimino is a Broker/Owner with the Colorado Dream House Team, Keller Williams Realty DTC. Contact the Colorado Dream House Team at 720-446-6325, Follow us on Twitter, Like us on Facebook, Watch us on YouTube, Questions?