How is the Real Estate Market in Denver?

By
Real Estate Broker/Owner with House to Home, Inc. - Denver Real Estate - 720-231-6373 DRE# ER40011786

 

 

The journalists sure do sensationalize our industry!    The sky IS NOT falling, and our market is still very strong.    The journalists like to create headlines and cause the public to panic, and there is no reason to, at least not yet.

 

Colorado's unemployment for July was 2.9%, compared to the national average of 3.7%.   We have been lower than the national average for quite some time.  The GDP in 2016 was 2.4, and in 2019 is 3.5, which is the largest increase in several years.   

 

Colorado relies on several industries for our good economy - 

1.  High technology

2.  Food processing

3.  Transportation equipment

4.  Machinery

5.  Chemical production

6.  Tourism

7.  Aerospace

 

Our ski areas do pray for abundant snowfall to have the tourists flock to Colorado every year, and also for camping, hiking and simply to enjoy everything Colorado has to offer.

 

I had a potential buyer come into town from Texas a few months ago, and they said they would buy next year, as they expect prices to decrease significantly next year.   I pointed out several factors that indicate Colorado is not going to see a significant drop in home values.  

 

This month's data shows the inventory is up 11%, which is finally good for the buyers, sales are down 2.2% over last year, under contracts increased 9.2% over last year, and our average sales price is up 3.4% over last year.   We did see a 10% average home increase each year for SEVEN YEARS.   That increase cannot be sustained for long term.   If rates drop again, I expect we shall see another spur of activity from buyers! 

 

Here is a chart indicating some facets of Colorado's fiscal ability - 

 

 

 The financial researcher that did this chart indicated Colorado is #28 for the fiscal condition.  She went on to say - "On the basis of its solvency in five separate categories, Colorado ranks 28th among the US states for fiscal health. Colorado has between 1.32 and 2.11 times the cash needed to cover short-term obligations. Revenues exceed expenses by 1 percent, with an improving net position of $40 per capita. In the long run, a net asset ratio of –0.02 indicates that Colorado does not have any assets remaining after debts have been paid. Long-term liabilities are lower than the national average, at 48 percent of total assets, or $3,175 per capita. Total unfunded pension liabilities that are guaranteed to be paid are $122.81 billion, or 43 percent of state personal income. OPEB are $1.85 billion, or 1 percent of state personal income."    By Eileen Norcross     This report was completed in 4th quarter 2018.

 

To answer the question Buyers & Sellers want to know --- our market has slowed (started in June 2018).    Homes are taking a bit longer to sell now, but if clean, shows well and above all, priced correctly, it will sell.    We are seeing more Sellers contributing to Buyer's closing costs too.   Buyers have more inventory to view and do not need to make immediate offers without thinking it through, even overnight.    There is no need to "fire sell" a home, unless foreclosure is imminent, or some other personal reason.

 

I have been educating my Sellers on the increased days on market, and their home won't necessarily sell in a weekend, but it will sell!    Extra advertising may need to be done, but I do that anyway for all my listings!    They may also see Buyers asking for closing costs, which we have not seen in a decade.

 

I don't have a crystal ball to foresee what the future holds for our real estate market, but know our lending practices have changed since the housing debacle in 2008, so would hope we never see our market fall as it did back then.

 

For the upcoming year, I will continue to market to buyers and sellers through my web site and other social media, and keep them educated if the market should shift in Denver.

 

 

 

 

 

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House to Home, Inc.House to Home

GRI, CRS, CNE, e-Pro  

Broker/Owner

Joan@JoanCox.com

720-231-6373

 

Denver Real Estate

Homes for Sale in Denver

Neighborhoods in Denver

 
  A Denver Metropolitan Realtor

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Rainmaker
1,253,574
Sheri Sperry - MCNE®
Coldwell Banker Residential Brokerage - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Joan Cox,

Great analysis for the Denver area. This shows why you are the local expert and go-to Realtor®.

I might disagree with the term "journalist".  Many are just talking heads looking for ratings. But then again...that is my opinion. 

Sep 19, 2019 06:54 AM #11
Rainmaker
2,618,402
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

It sounds like everything is fine in your market and just because things slow down from an insanely hot market does not signify a recession to me.

Sep 19, 2019 07:45 AM #12
Rainmaker
1,403,707
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes

Joan, the bad mouthing of all real estate markets is a strategy by the news media. If they can cause a recession, they can get an election outcome they want.

Sep 19, 2019 07:52 AM #13
Rainmaker
1,500,994
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

I'm surprised that Cannabis/Marijuana isn't a big part of the economy there.  They sure make it sound like a big deal on the news.

Sep 19, 2019 08:28 AM #14
Rainmaker
1,966,779
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning Joan Cox - people who look into crystal ball are not seeing the big picture.  They are similar to day traders.

Sep 19, 2019 08:29 AM #15
Rainmaker
4,134,583
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Nina, I so agree, and the media says it has shifted to favor the buyers - so wrong.

Sep 19, 2019 02:31 PM #16
Rainmaker
4,134,583
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Barbara, I agree with you.

Sep 19, 2019 02:31 PM #17
Rainmaker
4,134,583
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Sheri Sperry - MCNE® should have said the MEDIA versus journalists.   Talking heads is a good one too! 

Sep 19, 2019 02:32 PM #18
Rainmaker
4,134,583
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Brian, absolutely it isn't.

Sep 19, 2019 02:32 PM #19
Rainmaker
4,134,583
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Jeff, that seems to be the consensus of many here, just for political purposes.

Sep 19, 2019 02:33 PM #20
Rainmaker
4,134,583
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Georgie Hunter R(S) 58089 we do have lots of revenue from the sales tax, but goes to fund other areas that are not earmarked by the government.

Sep 19, 2019 02:33 PM #21
Rainmaker
4,134,583
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Grant, that is a great analogy too.

Sep 19, 2019 02:33 PM #22
Rainmaker
2,509,807
Rebecca Gaujot, Realtor®
Vision Quest Realty - Lewisburg, WV
Lewisburg WV, the go to agent for all real estate

Joan, we have some talking about a recession and people will not buy houses...blame it on the media!!

Sep 19, 2019 03:57 PM #23
Rainmaker
4,134,583
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Exactly Rebecca, and giving the REAL deal to our clients, so they know what the market is really doing.

Sep 19, 2019 06:13 PM #24
Ambassador
1,884,290
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

Good common sense outlook, Joan. People need to stop listening to the doomsayers and listen to reality. Markets as we know, are local. Ours has slowed and softened a bit, but it's still going strong.

Sep 20, 2019 08:28 AM #25
Rainmaker
4,134,583
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Debb, there are many naysayers predicting the market to shift dramatically, and just don't see it here in Denver.    Slowing down does not mean crashing.

Sep 21, 2019 06:09 AM #26
Ambassador
4,046,608
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Hi Joan:

This is a well-done overview of the state of the market for Denver with specifics that will help buyers and sellers understand the realities of the housing market, and the impact on prices, inventory, and time on market.

Jeff

Sep 21, 2019 04:00 PM #27
Rainmaker
4,134,583
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Jeff Dowler, CRS thank you for your kind words, and love sharing the data for buyers and sellers to make good decisions.

Sep 22, 2019 02:19 PM #28
Rainmaker
1,323,870
Nick T Pappas
Assoc. Broker/Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, @HomesBirmingham & Providence Property Mgmnt, LLC Hun... - Huntsville, AL
Madison & Huntsville Alabama Real Estate Resource

Joan, yes, the journalists need something to sensationalize or generalize. Every market and region is different. as for my area, the overall state average unemployment rate is 5%, but here in Huntsville it's 2.3%. 

Oct 02, 2019 12:14 PM #29
Rainmaker
4,134,583
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Nick, nice to see your smiling face, and Huntsville's unemployment rate is really low.  Good job! 

Oct 18, 2019 10:24 AM #30
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