Jessica Wilkie's (jnwilkie) Blog

Denver’s Real Estate Market and COVID-19

Jessica Wilkie, Referral Agent (Coldwell Banker) — Thu, 16 Apr 2020 09:02:55 -0700

It was shaping up to be a banner spring market… until March and the virus started to take hold. Many would-be sellers are waiting this out — we had a high number of withdrawn listings by the end of the month and many on hold. If homes are occupied, it’s probably the best way. So inventory is lower than it would be, but it’s still up about 4% over last year. While many buyers are on hold too, it appears that the new listings coming on are going under contract, many in 10 days or less. Demand is keeping up with supply. Some buyers may be taking advantage of the ridiculously low rates on home loans (and Fannie Mae’s recent increase on conventional loan limits, now up to $510,000 for non-jumbo terms). There’s great buying power in this market — and less competition. There’s no doubt a real estate closing these days will be stressful, with a lockdown in place — but it’s doable, with inspections and contingencies to protect both sides. As the fallout continues, we may lose some buyers due to economic uncertainty and insecurity. Many workers are out of work or short on work. No doubt landlords are feeling the effects too as renters struggle to come up with rent. And investors using the Airbnb model are certainly hurting right now, as demand for short-term stays has all but dried up. All that said, it’s hard to imagine a bubble or extreme loss of value in Denver’s real estate market like we saw in 2008. Most homeowners have good equity in their homes, and Denver is still a highly desirable location with a strong underlying workforce and economy. So in that respect we’re on solid footing. I’d expect spring’s market activity to get pushed back a few months, to when we return to a less “quarantine-y” world, or as we adjust to whatever the new normal will be. For most people, it’s probably a good time to make plans and prepare — do you have any real estate moves to make in the next year or two or even five? If you have any questions, feel free to reach out. I weathered the Great Recession (2007-2009) and have seen my share of up and down markets… and while I don’t have all the answers, I may be able to provide some perspective on your specific situation. Feel free to set up a time to chat. Or just give me a call at 720.514.9540. Here are some ideas and tips for DIY home improvement activities to do while waiting out the COVID crisis.

Denver Inventory Up in Summer 2019

Jessica Wilkie, Referral Agent (Coldwell Banker) — Mon, 29 Jul 2019 17:16:53 -0700

Buyers Have More Power in DenverPrice appreciation has slowed in Denver, but it’s still not a buyers’ market.Prices actually took a dip in January and February year over year, for the first time in a long time. By March we saw prices increasing again. I’d venture to guess the government shutdown, or maybe trade and tariff strife, caused some consumer confidence issues in January.In June of this year, Denver real estate prices reached a record median price of $454,900, up 3.5% year over year. Fortunately the inventory has come up significantly, by 35% in June year over year, which has given buyers some much needed relief, finally, after many years of multiple offers and competitive bidding. Will the election affect Denver real estate? Of course it’s hard to ignore national politics as we head into a big election year. We may see a slowdown as we get closer to November 2020 -- as we saw near the end of 2016 -- but the market should bounce back, barring any extreme circumstances.It’s a good market to sell, so if you're thinking of selling within the next five years, get in touch for a market snapshot and some educated projections. On the buyers' side, interest rates are still super low, and the increased inventory means it's a more friendly environment. Get in touch for a consultation or a quick chat.

Denver Real Estate Neighborhoods Shift to Favor Buyers

Jessica Wilkie, Referral Agent (Coldwell Banker) — Fri, 26 Apr 2019 14:35:51 -0700

The Denver real estate market has favored sellers for many years now, but it's been showing signs of cooling in some areas since last fall. The number of active listings is up overall, we've seen price drops on more listings, and the median number of "days on market" is up -- meaning it takes longer to get to a contract.Higher days on market is occurring in particular for listings that are priced too high. Buyers are savvy and have gotten more selective, and many of them won't offer if they feel it's overvalued. Buyer Markets in Denver and Across the WestThis nifty map published by the housing economists at Trulia shows that many zip codes in Denver are expecting a shift to favor buyers this coming year. They used "days on market" and price cuts as primary indicators to determine which way the market is going.We still have a few areas favoring sellers, mostly on the west side of the metro area, including Evergreen, Sedalia and 80403, which includes Golden and Arvada. Of course, conditions can vary from neighborhood to neighborhood within a ZIP code, but these are the big picture trends happening in the Denver Metro area -- and also across the west side of the country.Seattle has seen the strongest shift to buyers, probably because people realized they were paying too much to live in such a dreary climate.Is Denver Real Estate Still a Good Investment?This is healthy. Denver has gotten popular, but it also got expensive quickly, and affordability has become an issue for many. Right now, it's good to see that demand is keeping up with the higher inventory, which is up 54% in Denver over last year's first quarter. Buyer's still have to move quickly, but things area little less hectic than they were a year ago. In another good sign for Denver housing and the health of the real estate market, this study reports that the rate of new homes construction is up, though builders are being careful not to overbuild, which cost them dearly in past markets. They're also building more for first-time home buyers and lower price points, where supply is most needed.So builders have confidence but are not overbuilding, and median prices are still increasing, but less dramatically. Denver has good fundamentals, with a healthy, diversified economy and a strong job market. While the market may be shifting to favor buyers, I expect we'll see a stabilization rather than decline. We should continue to see appreciation, but perhaps not in the double-digits that we'd gotten used to since 2013. And as the market adjusts, Denver's many advantages will continue to draw young professionals and families, while many older folks choose to stay for the long haul and age in place in Denver. TakeawaysBuyers have a little more leverage. Interest rates are low and supply is picking up. I've seen some really nice listings out there and they're taking just a little longer to go under contract, so while buyers must still have urgency, they have a little more room to negotiate. Ready to jump in the Denver real estate market? Get in touch and let's chat. Sellers want to be careful with pricing. If a property is overpriced, it'll sit, and if it languishes for too long, it can be hard to recover. Simply put, the place should look right and be priced correctly from the start in order to attract the right buyers the first time around. Have a question about your home's value or are you considering selling? Get in touch or call 720.514.9540.Need help with your next real estate move?Agents at A Better Way Realty help you look at the big picture, to help you achieve the best financial results from your real estate moves. Email or call 720.514.9540 and let's talk soon!

The Skinny on Carriage Houses, or ADUs in Denver

Jessica Wilkie, Referral Agent (Coldwell Banker) — Sun, 28 Apr 2019 09:33:00 -0700

An ADU, or accessory dwelling unit, is a small, habitable structure situated on a residential lot, usually behind the “primary” house. Utilities are tied in, making it easier and cheaper to build than a house. It’s a place where another person can live on the property with a little breathing space — they have their own bathroom and usually a small kitchen.The setup can be ideal for multigenerational living, allowing an older parent or relative to live close. And an owner who wishes can rent out the place and take in income on the property.ADUs are popular in many cities as a way to increase housing options and allow folks to “get more” out of their property, in a time when high real estate costs are a challenge for many.ADUs are Great Because... Conservationists like ADUs because this type of infill building allows for increased density without really taxing the infrastructure. Community and housing organizations like them because it’s good for families and communities - making child care easier for younger families and allowing relatives to live together, share expenses, and hold onto their real estate. The use is flexible, so it can be great for a boomerang child for a few years and then might allow for rental income later on.ADUs in Denver In 2010 the city of Denver revised its zoning code to allow for the construction of Accessory Dwellings (they had been banned since the 1950s). Interestingly, the trend hasn’t really take off yet, and fewer than 200 units have been built as of 2018. While ADUs won’t cure the housing shortage in Denver, it seems that more of them would help alleviate some of the demand. So while the city has “unbanned” ADU construction, the zoning code is cumbersome, as many lots are still only zoned for a single structure. It’s possible to file for rezoning if the lot size is large enough, but it may take a long time, cost money and be an arduous process to get through the neighborhood and city red tape. ADUs Can cost from $90-$150K or more. Most commonly, people will use a new construction loan or a home equity loan to pay for it. The plus side to taking a loan: if the accessory dwelling is going to earn income, it’s like an investment in your backyard. West Denver Renaissance Collaborative Neighborhoods in West Denver, like Athmar Park, Barnum, Sun Valley, West Colfax and others, have seen steep home price increases and, as a result, steep property tax increases. This has caused strain for some longtime residents in these traditionally Latino communities. Fortunately many of the properties in West Denver have smaller houses and larger lots, and are zoned for ADU or tandem house construction.The organization was formed to promote ADUs and help residents build them, which in turn helps them live more affordably and stay in their properties. The program offers guidance throughout the process by helping with financing, providing ready-made designs to build, and connecting homeowners with contractors to do the work. Whether or not you live in West Denver, this handout offers some extremely helpful insight and information on the process of building an accessory dwelling in Denver. If only there were more such programs! Now You Want an ADU in Denver, right? With home prices in Denver at record highs and the rising popularity of “house hacking,” there’s new buzz about ADUs in Denver. To find out if you can build on a lot, enter the property address on the Zoning Map here to check your zoning code. If you need help, just call 720.514.9540 and we can help you through it. If your place is not compliant, it may be possible to rezone and we can connect you with experts who can do a feasibility study. If you are looking to buy Denver real estate zoned for an ADU, tandem or duplex, let us know here now and we’ll set you up with a customized search based on zoning codes. Build Your Wealth and Cash Flow with Smart Real Estate Investing! Agents at A Better Way Realty are trained to offer a comprehensive, wealth-building approach to real estate while helping clients. Please connect with us on your favorite social media platform, or email or call with any real estate questions. We look forward to staying in touch!

Inventory Up in Denver in Q1 2019

Jessica Wilkie, Referral Agent (Coldwell Banker) — Wed, 24 Apr 2019 08:28:44 -0700

Median home prices in Denver are up to $428,000, an increase of about 3% over last March. That's down a good bit from the 10+% appreciation we've been seeing over the past few years.In the first quarter of 2019 we also saw a pretty dramatic rise in inventory, with the number of active listings up 54% over last year.The number of new contracts has stayed about the same for the same period. Rising inventory and steady contracts would indicate that the market may be tilting to favor buyers. In addition, interest rates have taken a recent dip, so it's a great time for buyers to take advantage of the market now before they go up again.Questions about the market? Want to make a real estate move? Get in touch now to talk to an experienced agent who's been through the ups and downs.

How to Find the Right Contractor for Your Home Renovations

Jessica Wilkie, Referral Agent (Coldwell Banker) — Mon, 28 Jan 2019 22:06:02 -0800

Finding a contractor in a high-growth city like Denver can be the opposite of easy. Many of them have jobs booked well in advance, so it’s essential to do your research and start gathering bids as early as possible. Knowing what’s in store will help you go in with a plan. Here are some things to consider when hiring a contractor.Dos/Don’ts for Working with a Contractor Get three separate bids. This may be difficult because everyone’s so busy, but it’s worth it, especially on larger or more complicated jobs. You’ll learn a lot and get a more thorough understanding of the work by talking with different people. And chances are you’ll get a better deal by making the extra effort.Consider the work and the services you need. Contractors are not designers, but some of them offer the service in-house. But you may want to hire an architect or a designer to help you develop the plans for your vision. Here’s a nice writeup on the differences and factors you’ll want to consider when you decide who to hire.Check references. This is an easy step to skip, but you’ll be better off hearing from other homeowners who’ve had experience with your contractor, and most people are happy to talk and give you insight.Ensure Your Contractor is licensed, bonded, insured -- and current. They should be able to provide you with a copy of their license, and you can check the state’s website here. Ask for receipts and keep records of your communications. Start a file.Check their rep. Consumer Reports provides a few good sites to find out more and you can check with the Better Business Bureau to make sure no complaints. Yelp is always helpful too.Ask about a backup plan in case something goes awry. For example, what if they can’t finish the job for some reason? Understanding the risks up front is better than living through a Denver winter with a giant hole in your kitchen.Permits should be in their name. If they balk at this, it’s a red flag.Agree to a payment schedule. Don’t pay for all the work up front, obviously.Include a termination clause in your contract. If they’re awful, or if something goes wrong, you can cut ties more easily.Check in and visit them frequently to make sure things are headed in the right direction and details are being addressed to your understanding and liking.Be a good collaborator! This is important! Don’t make them wait too long on your decisions, and try to avoid significant changes in the plans when things are underway. This will help them do their job right and keep on schedule -- and will help you maintain positive relations with your contractor by not driving them crazy.Need a referral or a second opinion? Please feel free to get in touch. I keep a roster of service people to call upon and am happy to make introductions. Or if you just have questions about the return on investment for a particular job when it comes time to sell your Denver house, I’m happy to address that too. Contact me now and we’ll set up a time to talk.Have fun and happy renovating! Renovations can be fun, but they are disruptive, so it pays to do your research, have a plan, and work with good people so you can avoid the many pitfalls and headaches that can come up.

Easy DIY Home Renovation in Denver

Jessica Wilkie, Referral Agent (Coldwell Banker) — Thu, 24 Jan 2019 05:00:01 -0800

Home renovations are usually expensive, and good contractors in Denver can be hard to track down or hire -- especially for the smaller jobs. In some cases, it may make sense to do the work yourself, if you are so inclined and if you are handy. Here’s how to go about a DIY renovation job in Denver the right way.Which Jobs Should I DIY? Obviously your skills (or lack thereof) will help you decide what kind of job you can take on. If it requires a permit, you should probably get one. The city will require you take a test to demonstrate your proficiency based on your proposed scope of work before they give you the permit. This goes for electrical work, HVAC, water heater installs, and similar jobs. Here’s a list of common household projects you might conceive of when planning your Denver home renovation. Not all of them require permits.Do Your Research. If you need guidance, there are tons of resources online. I like Bob Vila's site. It offers How-To videos for nearly every kind of job and it's really well done. Home Depot and your local hardware store often host DIY classes too, so you can gain some knowledge there.Talk with a Contractor and Get an Estimate. It’s valuable to get an estimate or two from a legitimate contractor before you start, especially if the job is a tad more complicated. They may point out things you hadn’t considered, and at the very least you’ll be able to formulate a better plan by talking it through with an expert. And when they give you a price, you’ll truly have an idea of the cost-savings you’re going to get by doing it yourself. (Tell that to your significant other!). If you might want to hire a contractor, read this post for a few tips on how to go about it.Be Prepared for Surprises/Mistakes. Houses, especially older ones, can be "quirky" and surprises may come up. Maybe there’s a pipe behind that wall in the bathroom, so you can’t install a storage medicine cabinet. And now that you know, you have to put drywall back up and patch and paint. Believe it or not, mistakes can happen on a DIY job, so make sure to budget more time than you think you need, for that extra trip (or three) to the store.What About Permits? Permitting allows to the city some oversight to ensure that work gets done properly and safely. If you want to sell your Denver house in the future, potential future buyers may check with the city for the permits to find out more on the house. They’ll get a “warm and fuzzy” if they see everything done right. More particular buyers may balk if they don’t see permits on recent work done. (But in my experience, I’ve never seen anyone cancel a contract over missing permits).The more “cosmetic” work – like flooring and cabinetry – tends to be exempt from permitting. Here's a list of some more common jobs.Denver Home Improvement Jobs Exempt from PermittingCounters and cabinetsPaint, wallpaperCarpet, flooringPlumbing fixturesGeneral plumbing repairsUncovered DecksSwings, playground equipmentSingle-story detached accessory buildings, not to exceed 200 square feetMost fencesPlease check Denver’s Residential Permitting Guide for the most up-to-date information as this list is subject to change.Watch Out for Lead and Asbestos. Before disrupting possible lead-based paint, or an odd popcorn ceiling that may have asbestos, it’s a good idea to get it tested for hazardous materials so you can take the proper precautions. Find out more about common household environmental hazards here.Will I Make it Back When I Sell? If you want some perspective on the return on investment for your project, I’ve sold many homes and am happy to share ideas on what’ll be most attractive for resale. Get in touch here now.Are You Ready Now? If you have a solid plan, budget, and time allotted to complete the work, a DIY job can work out beautifully and save you hundreds or even thousands of dollars.

Signs of Buyer Fatigue in Denver Real Estate

Jessica Wilkie, Referral Agent (Coldwell Banker) — Fri, 18 Jan 2019 14:08:59 -0800

There’s been talk of a market slowdown and I’ve been waiting to see if the last quarter of 2018 would confirm it. Our stats show that the market has cooled off – but just a tiny bit. The chart below shows that supply is a bit higher in 2018's last quarter over 2017. In December we had 1.4 months of supply, up from only three weeks in December 2017. Note that less than 2 months of supply is still very low, and favorable to sellers. Another slight but visible indicator can be seen here – the number of active listings is higher than last year. And here we see that the number of days on market has crept up to 20 days in December – higher than it’s been in many years! (But still pretty low). These numbers show that Buyers have gotten pickier. And with 2018's higher interest rates, they’re probably feeling tapped out on prices. Or they don’t have the capacity to buy a home that needs a little work. We're still seeing multiple offer scenarios in the Denver real estate market, but they’re fewer and farther between.Here we see Seller’s “sold” prices compared to original “list” prices. Near the end of 2018, sellers were forced to come down on their pricing a bit more than in previous years, closing at an average of just over 98% "sold price" to original listing price. Since lending standards are so much stricter than they were leading up to the 2008 crisis, I’d say we shouldn't be worried about a bubble or any extreme "correction" like we saw back then. The Denver real estate market is stable and secure. People are still moving here and demand is expected to remain high for the long term. Denver real estate prices are expected to continue appreciating, up 5-6.8% in 2019, depending on who you ask.Sellers will have to price a bit more aggressively this year to find a buyer, and they’ll want their property to be “show ready” right off the bat to avoid sitting.It may only be January but the spring market is here! Thinking about selling? Get in touch now to find out how to make the most money on your house.Want to buy real estate in Denver? Greater supply means there are more houses to look at! Click here to get in touch now and we can get started.