Realtors Encouraged by Signs that Economic Recovery Gaining Traction in New Year

With the holidays behind us and a brand new year underway, Realtors, home sellers and buyers are all wondering what 2011 will bring to the Colorado housing market. After a choppy 2010 that saw strong activity early in the year and a softening in the second half, Realtors are encouraged that recent improvement in the economy could bode well for the housing market.

The real estate market is so closely aligned with the fate of the overall economy, the stock market and consumer confidence. In general, all three of those economic indicators have been recovering in recent weeks. And this week in particular gave housing market professionals reason for encouragement.

In his first appearance before the new Congress, Fed Chairman Ben Bernanke gave a more upbeat assessment of the economy that he has in the past. “We have seen increased evidence that a self-sustaining recovery in consumer and business spending may be taking hold,” the central bank chief told lawmakers.

Bernanke and another senior Fed official, New York Fed President William Dudley, said today that leading indicators for the labor market are pointing to a likely pickup in the pace of employment gains over the course of the year.

At the same time, the financial markets have rallied in recent months.  The S&P 500 and the NASDAQ have risen 10% and 12%, respectively, over the past three months. Our local Denver area companies continue to report strong sales and profits over the past year. All of this undoubtedly is having a positive impact on consumer confidence.

Finally, this past year’s holiday season provided some welcome news for retailers. U.S. retailers posted the strongest revenue growth since 2006. A Thomson-Reuters index of 28 leading retailers showed sales rose 3.1% at stores open less than a year.

But in all likelihood, the road to recovery will continue to be slow and occasionally bumpy. Don’t be surprised to see extremely upbeat economic numbers one month and a small setback the next.

For example, the Labor Department reported that the nation’s economy added 103,000 jobs in December and the unemployment rate dropped to 9.4% last month, its lowest level in 19 months. But the job growth fell short of expectations based on a strengthening economy. And the drop in unemployment was partially due to people dropping out of the labor force.

Nonetheless, despite two steps forward and one back, the overall economy appears to be trending upward. I’m cautiously optimistic the same will be true for our housing market in 2011.

Below is a market-by-market report from our local offices:

• Boulder – All categories are down due to the timing of the Christmas Holidays.  Historically, this two week period sees a drastic reduction in all categories.  Both our Agent base and the public seemed to focus on the holidays and their families.
• Colorado Springs – Our showings have continued to be slow, partly because of the holidays.  Quite a few Realtors were off on vacation.  Our sales have followed suit by also being very slow with some buyers waiting to see if interest rates continue to go lower.  Listings have held steady with about 30% being short sales, needing lender approval before the property can be sold.
• Denver Central – Nothing to talk about really.  We had quite a few people that took a number of days off for the Holidays.  It was pretty slow around the office.  Everything here is looking forward to a better 2011!!
• Evergreen – We had only two new listings go on the market in December.  Our listing inventory has continued to decline as many unsuccessful sellers have withdrawn their homes from the market.  These homes will go back on the market in spring 2011 in hopes of doing better with improving market conditions.  Showing activity is declining due to seasonal variations although good weather this fall kept buyers out looking with 167 showings during the month.  Five listings went under contract in December along with five buyers that were put under contract.
• Longmont – The winter holidays are usually a quiet time for the Longmont market.  Not 2010!  In fact, the entire fourth quarter of 2010 was busier than usual.  What a nice way to end 2010 with lots of buying and selling activity.  Predictions are that the investors will continue to be active.  Interest rates will hold steady for the year and confidence in the real estate market is cautiously optimistic!
• North Metro – In November & December we saw a large increase in the number of homes going under contract. In December we saw a 25% increase from the month of October. The average selling price in our office is $267,000.  Listing inventory is slowly increasing as well.  The holidays did not seem to stop the buyers as they were out to open houses & meeting with our agents to look at homes.  We’re optimistic that the activity will continue throughout January.  The North Metro office is excited to have ended 2010 with the Market Share in Westminster, Broomfield, Thornton, Brighton & Erie.
• Parker – After the expected slowdown the last two weeks, we still closed a good number of transactions.  We are now seeing a spike of activity in theses first few days of the year.  Sellers are putting their homes on the market right away and we are having the highest number of buyer requests in months.  If the weather is cooperating we will have one of our largest property tours in the last three years.  That is the 2nd week of January!  We are looking forward to a great year!
• Southwest Metro – The last two weeks of the year showings were of course down.  There were however, great opportunities with buyers wanting to buy before year end.  Investors were out looking and ready to purchase.  Listings were down as most sellers wanted to wait until 2011 to list their homes.  Floor calls were great during the month and so were open houses.  We are seeing buyers wanting to take advantage of the low interest rates as we do not know how long they will stay at this great rate.  Several agents are gearing up for a good first quarter as they have listing appointments the first of the year and buyers ready and will to not only look but write.  The general opinion that we aren’t completely out of this market but things are starting to turn in the right direction.
• Denver West – Our Denver West Agents are very, very optimistic about the real estate market in the year 2011!  Our office finished strong in 2010 which was a good indicator of the upcoming year.  Everyone is very busy and selling homes.
• Conifer – We had one new listing for the month of December.  Our inventory is declining as unsuccessful sellers have withdrawn their homes from the market.  Two listings went under contract during December.  Our showing activity declined to 58 in December which is about 60% of the normal level during summer months.
• Loveland – Traditionally, the time period just before Christmas through New Years is a very quiet time for residential real estate.  Not so this season!  Showings continued during that period.  Well qualified buyers were looking for and making offers on homes.  It has been a good start to what we are predicting as a “better” year in real estate.

That’s it for now. Best wishes on a healthy and happy New Year, everyone!

Chris

 

Coldwell Banker Colorado Weekly Market Watch Blog – A Year in Review!

The stats helper monkeys at WordPress.com mulled over how this blog did in 2010, and here’s a high level summary of its overall blog health:

The Blog-Health-o-Meter™ reads This blog is doing awesome!.

Crunchy numbers

A Boeing 747-400 passenger jet can hold 416 passengers. This blog was viewed about 3,100 times in 2010. That’s about 7 full 747s.

 

In 2010, there were 33 new posts, growing the total archive of this blog to 34 posts. There were 87 pictures uploaded, taking up a total of 65mb. That’s about 2 pictures per week.

The busiest day of the year was January 8th with 108 views. The most popular post that day was It’s a New Year…But Is It a New Housing Market? .

Where did they come from?

The top referring sites in 2010 were cbmarketwatch-colorado.blogspot.com, cbagentinfo.com, mail.live.com, cbnorcalevents.com, and facebook.com.

Some visitors came searching, mostly for istock, happy memorial day, million luxury home, chris mygatt coldwell banker, and market quest and coldwell banker.

Attractions in 2010

These are the posts and pages that got the most views in 2010.

1

It’s a New Year…But Is It a New Housing Market? January 2010

2

Weighing Your ‘Personal Economy’ vs. Nation’s Economy When Deciding to Buy or Sell a Home October 2010
1 Like on WordPress.com,

3

About Chris Mygatt December 2009

4

Colorado Housing Market Coming Back to Life November 2010

5

Luxury Home Sales Come Back Down To Earth October 2010

Signs to look for in a housing market recovery

While the nation’s housing market has bounced back from the depths of the recession, the nascent recovery has been slow and sporadic in many parts of the country, including here in Colorado. The question on everyone’s mind is, “When will the market return to normal?”  No one knows for sure when that will happen  (the definition of “normal” is rather subjective  – it seems today’s market is the “new normal”), but there are a number of signs out there that we should be watching for – economic indicators that will point to a  more robust recovery in the market.

On a macro-economic level, consumer confidence and unemployment levels are crucial, along with overall economic growth figures such as the nation’s GDP. Buyers won’t take the chance on purchasing a home if they’re out of work, or concerned they may be before long. If they don’t have confidence that things will be getting better, they’re not likely to move forward with a major purchase.

Additionally, because real estate is such a local business, our local market indicators will also give us some clear signals. In addition to seeing overall sales rise in our local communities, we will be looking for inventory levels to fall, median prices to edge higher, the average days on market figure to drop, and the upper end of the market to heat up. Historically, it’s been the high-end market that comes out of a recession first because buyers have the means to take advantage of good values.

So are we seeing these signs yet? Nationally, it was a mixed bag this week.  We enjoyed a slew of positive economic data points early in the week – rising car sales, upward revisions to growth and productivity and a busy start to the holiday retail season. Private sector payrolls rose by the most in three years in November. And finally, the Conference Board reported Tuesday that the Consumer Confidence Index jumped to 54.1 in November, up from a level of 49.9 a month earlier. Although the index remains well below its prerecession levels (which were above 100), the boost provides an encouraging sign for the economy.

But as we took two steps forward with the positive economic data, we went one step backwards on Friday when the nation’s jobs report was released. November’s job growth came in far lower than expected and the unemployment rate rose to 9.8%. U.S. employers added 39,000 jobs to their payrolls in November, the Labor Department reported. That marks a major slowdown from October, when the economy added an upwardly revised 172,000 jobs. The number also fell short of the 150,000 jobs economists were generally expecting.  However, most economists are concluding by week’s end that the mixed bag of employment data was overall a bit more positive than negative.

The broader Colorado housing market, however, is still working to move back to normalcy. Sales in October were off sharply from year ago levels. Analysts believe much of the drop had to do with the fact that 2010 home sales were “front-loaded” earlier in the year as buyers rushed to take advantage of the tax credit before it expired. But certainly tighter credit and concerns over jobs played a role.

So where does this all leave us as we head toward year-end? Our local housing market recovery – like those in many regions – has been slow and choppy at times. Yet we are seeing enough positive signs overall to believe better days are ahead of us as we move into the new year. For those looking to buy a home, the stars are in perfect alignment. Interest rates are at historic lows in the low-4% level in 30-year fixed-rate loans. Home prices are very attractive. And housing affordability is at the highest point in years. Buyers need to examine their own “personal economy” and decide if they’re in a position to invest in a home. If they are, there may never be a better time.

Now, let’s take a look at this week in real estate:

Colorado Springs— Our showings have continued to decline which is not surprising considering the time of year (holiday season).  While sales volume remains lackluster, record low mortgage rates have helped stop the decline of home prices in most areas.  Listings are about normal for this time of year with short sales being about 35% of the inventory.

Denver Central— The Denver Central office is holding its own.  We have been steady on closings for the last three months and steady on our under contracts.  Sellers are starting to take their homes off the market for the holidays.

Devonshire— Well, here we are at the holiday season and it’s still quite busy at Devonshire.  With interest rates still at amazing levels, and the weather certainly cooperating, our showing activity remains very strong.  Surprisingly, our open houses were busy this weekend also.  With homes decorated for the holidays, feeling cheery and festive, buyers feel that the homes are cared for and seem to be less reticent about putting in offers.  Sellers, on the other hand seem to be a little more flexible on looking seriously at offers that are somewhat less than they had hope for.  All consumers are concerned about what could happen to interest rates in 2011.  Also of concern are the flat housing projections.  These two factors seem to be creating the perfect storm where all parties are more motivated than they’ve been for some time.  Let’s hope that 2011 continues to show growth in the real estate sectors.  All indicators show steady progress to a more stable market.  We wish you all a very happy holiday season and the best in 2011!

Evergreen— Seven new listings went on the market in November although listing inventory has begun to decline as many unsuccessful sellers are withdrawing their homes from the market & will go back on the market in spring 2011 in hopes of improving market conditions.  Showing activity is declining due to seasonal variations, however good weather this fall has kept buyers out looking longer. Seven listings went under contract in November including two homes in the $900,000 price range.  Consistent with prior years, the number of showings typically decreases in the 4th quarter.  The quality of showings improves as buyers still in the market are serious and motivated.

Larimer County— Tis the season!  The seasonal slow-down is in full swing as everyone prepares for the end of year holidays.  Interest rates have crept up to above 4 1/2 % for a 30 year fixed and inventory levels in our market are up year over year.  The average sales price continues to creep up as finance savvy buyers in the upper-end have picked through much of the below-market priced luxury homes, using the very attractive jumbo interest rates to their advantage.  Aggressive sellers should not dismay as buyers in the market right now are usually highly motivated to get moved in prior to the start of school following Christmas break. Jobs in Northern Colorado are still flat but our unemployment rate remains well below the national rate.  Ours, 6.4% in Larimer county compared to 9.8% nationally.  With the recent up tick in jobs created & a tick downward in first time unemployment claims – there is some cautious optimism about the job market getting better in the first part of 2011.

Longmont— Inventory is high for this time of the selling season.  Sellers are realizing that motivated buyers are indeed ready to purchase.  Builders are cautiously starting to build “spec” homes.  We have new homes available in very reasonable price ranges in & around the Longmont area.  Interest rates are bouncing around….Time to meet with your Coldwell Banker lender.  Short sales are still an issue to contend with for some sellers.  This is a great time to contact your agent for a current market analysis..for remodeling, refinancing or selling!

North Metro— The North Metro office had a great month in November as compared to October.  We increased the number of sales in the office by 30%.  The open house activity has increased as well as the number of floor calls coming in.  The agents put 54 new listings on the market with prices ranging from $109,000 to $850,000.  We are also beginning to see an increase in activity in the upper end market.  In December we’ve put 24 new homes on the market so far.  It’s a great time to take our buyers out to look for their new home, with the houses all decorated for the holidays.

Parker— Because of the approaching holidays, a good number of sellers are waiting to put their house on the market.  We still have a steady number of showings and we were able to put as many properties under contract as in the previous weeks.  Therefore the listing inventory is declining.  This is an opportunity for Sellers that have planned to wait.  The buyers that are looking right now are very motivated.

Southeast Metro at DTC— There has been a surge of activity in the SE Metro market right after the Thanksgiving holiday!  We are still averaging over 400 showings per week.  Open house traffic has also increased in the energy areas of the city.  One of our open houses had over 20 visitors on a single Saturday afternoon.  Many homes show very well during the holiday season & several of our listings are now under contract & scheduled to close in December and early January.  Interest rates remain at record lows & buyers are taking advantage of current rates and average home prices.

Southwest Metro— Showings continue to increase and we are hearing now from the first time buyers.  These buyers are ready to go out and see what is available while interest rates are still good.  Open house activity was very good as well as the leads generated.  We’re seeing activity in properties ranging from $270,000 and above.  We are seeing an increase in buyers not just first time but those wanting to move up, ready to take the leap & start the process.  Most of our agents feel that December is becoming a busy month and look forward to next year.

Denver West— We see seasonal adjustments taking place.  Fewer listings coming on the market, fewer showings, fewer under contracts. Buyers do know that it is a “buyers market” & they want to see an excessive number of homes before making a decision. In addition, oftentimes they are making ridiculous, low offers which often offend the sellers.  It appears that sellers are studying the market analysis and making good decisions with regards the initial sales price of their home.

Conifer— We had five new listings for the month of November although inventory is declining as unsuccessful sellers are withdrawing their homes from the market.  Three listings went under contract in November.  Showing activity held up well in November primarily due to good weather although the quantity of showings is expected to decrease as we move into the holiday season.

Loveland— Showing activity bounced up 50% since the last report.  The price range of listings shown also took a nice price increase.  We are seeing an influx of cash buyers for the upper end properties.  Investors are eager to get into the Loveland market.  They seem to be looking for distressed homes that are candidates for fix & flips.  These investors are also working with cash most of the time.  Loveland is a beautiful city this time of the year…..come and visit us.

Please note this is our final edition of Weekly Market Watch for 2010.  We will return on January 6, 2011 with the first edition of the New Year!  Until then, I wish you and yours a very warm, safe and happy holiday season.

 

Colorado Housing Market Coming Back to Life

‘Smart Money’ Moving Back into Luxury Market

The Colorado housing market continued to rebound in 2010 from its recessionary lows, although strong economic headwinds and the end of the federal homebuyer tax credit combined to slow the pace of recovery in the latter months of the year.

Both home sales and the median sale price of all housing – single family and condominiums – rose steadily throughout the first half of the year as buyers took advantage of bargain home prices.  As summer turned to fall, sales began to ease but the median sale price continued to climb in most parts of the Denver Metro region.

According to Metrolist*, home prices in the six county Denver Metro area **rallied from about $202,000 as of October 31, 2009 versus $212,000 as of October 31, 2010, resulting in a 4.9% increase in home prices for the region.  Sold listings year over year showed a reasonable decline with 2009 figures reporting 3,715 listings sold versus a total 2,658 listings sold as of October 31, 2010, resulting in a 39% decrease in sold listings.  We believe the dramatic decline in sold listings has much to do with the mid-year expiration of the federal first time home buyer tax credit as well as a stabilization of home prices.

Year over year (October 31, 2009 vs. October 31, 2010) the average days on market went from 49 to 54, respectively, resulting in a 10% increase.

An encouraging sign for the local housing market is that the upper end of the market has steadily been gaining momentum this year, though we have seen an ease in recent weeks. Luxury homebuyers, including a number of relocating buyers, are becoming much more active and are occasionally buying the homes with all-cash offers.  One point of distinction for Coldwell Banker Residential Brokerage, too, is that we were once again recognized as the luxury home leader.  According to Metrolist, Coldwell Banker Residential Brokerage is the leading real estate broker*** in home sales $500,000 and above, accounting for 11.2% of all home sales in this arena.  Our nearest competitor earned just 7.8% or a commanding 43.5% difference.

What’s causing the high-end to rally? Local agents tell us that there has been incredible pent-up demand among the moneyed class looking to buy. They’ve been out there scouting the market for quite some time but holding off until the time was right. Now that prices on luxury homes have come down sharply to levels we haven’t seen in a decade or more, they’re making the move. There is greater confidence among high-end buyers that we’ve seen the bottom of the market and prices will only rise from here.

Luxury buyers can hardly be blamed for thinking the market is offering more relative bargains than the Nordstrom’s half-yearly sale.  We have seen the luxury sector of local markets in Colorado stabilize and rebound off their recessionary lows.  Coldwell Banker Residential Brokerage’s latest luxury housing reports show:

• A total of 36 homes sold for more than $1 million in the Denver Metro area in September, down from 46 a year ago and 71 last month.
• However, the median sale price did climb more than 14% from August to reach $1,422,500 in September.
• The median price was off 2.9% from a year ago.
• The most expensive sale in the Denver Metro area in September was a six-bedroom, seven-bath 10,473 square foot home in Cherry Hills Village that sold for $7 million.
• Denver boasted the most million-dollar sales with 11, followed by Boulder with 5, Greenwood Village with four and Cherry Hills village with three.

In the past, luxury homebuyers – the so-called smart money – are often the first to declare a market bottom and jump back in because they have the cash and the means to do so once they are convinced the time is right. These buyers are astute observers of real estate trends and financial markets, and are often the first to see turnarounds in the macro economy.  Their confidence in the market often leads overall consumer confidence.

It will be interesting to see if the rest of the market follows suit again this time.  While the economy here in the Denver Metro area and across the country certainly has been sluggish and unemployment levels remain stubbornly high, it is encouraging to see solid improvement in the upper end of the real estate market. Only time will tell if it catches on to the rest of the market.

Now, let’s take a look at local real estate:

Boulder: Buyer showings and listing activity has increased in the Boulder office and is a reflection of the current marketplace.  The closings are up due mainly to the end of the month time frame that this period resides in, however, active taking backups and pendings while lower than the previous two week period are actually at a high level for this time in the month of November.  The office and the local market appear to be lining up for a strong November closing and listing month when compared to previous Novembers.

Colorado Springs: Showings have shown a steady decline over the past few weeks.  Listings have also slowed down about 20% over the past two weeks, with under contracts holding steady probably as a result of the continued low interest rates.  With rates dropping back to historic lows (4%) it is a good time to check with your Coldwell Banker Realtor about buying or refinancing your current loan.

Denver Central: We are actually steady in all categories compared to the last four weeks.  I’ve been having agents asking about lease options.  We have some desperate sellers as well as some shaky buyers.

Devonshire: With the warm weather that we are experiencing, it has helped to bring out buyers again.  We’ve had a slow few weeks and now seem to be in activity mode again.  The elections are over and that, together with the low interest rates, has created a burst of activity in showings & at open houses.  Most open houses last weekend had much better attendance than in the last few weeks.  Buyers still seem to be waiting for that “perfect deal” while sellers are not willing to move too much off of their list price.  Sellers right now are frustrated because even if their hoems seem to be priced right, some of them are not being shown.  It’s a challenging market to say the least but signs are out there that things will be steady in 2011.

Evergreen: Our listing inventory has begun to decline as many unsuccessful sellers are withdrawing their homes from the market during the holidays.  Many will go back on the market in the spring of 2011 in hopes of having better success with improving market conditions.  Show9ing activity is declining due to seasonal variations although good weather in the fall has kept many buyers out looking.  Several listings have gone under contract in the first part of November including two homes in the $900,000 price range.  Consistant with prior years, th enumber of showings typically decreases in the 4th quarter although the quality of showings improves as buyers still in the market are serious and motivated.

Larimer County: Oh the weather outside is frightful……..Well, Winter has arrived with our first accumulation of snow & with it a somewhat chilly activity outlook.  That being said, from what we see at the national level, the FED is apparently going to continue with plans for another infusion of cash to the system whereby interest rates will remain at unbelievably low levels. The increased buying power for folks looking to purchase has NEVER been better.  Prices in the mid-range seem to have stabilized & aren’t likely to drop substantially & are proving to be great values & popular sale items.  The high-end market has reached a level where mostly cash offers seem more common as the jumbo interest rates have come down substantially.  With prices of some million-dollar homes at more than 50% of what they were valued just a couple of years ago, there has been more robust activity in that arena than we’ve seen in quite a while.  Showings have dropped from the Summer highs – but remain steady as we creep toward Thanksgiving & have put the mid-term elections behind us.  For those still sitting on the fence – now is the time to take advantage; including Sellers looking to trade up.

Longmont: Buyers for upper end homes ($550,000+) are in the market to purchase.  Homes that are listed at a good value are experiencing multiple offers which means some Buyers must continue the process of looking.  Most Buyers are looking for great deals and are cautiously optimistic about this market.  Now is the time to find that move-up home.  Our inventory is holding steady.  Refinancing is very attractive right now.  Time to call your Realtor to ask about refinancing. You will need to know an idea of the current value of your property, and finding out about the feasibility of any remodel or looking at buying that dream home.

Parker: After a very strong September the activity has slowed down in October.  In Parker, sales decreased by 15% compared to October of last year and the inventory increased at the same rate from 689 to 810 homes. November however, looks strong again and we should exceed the number of sales from last month by a wide margin.  Our short sale and REO specialists report that it still requires additional time to close.

Southeast Metro: The market is buzzing with ready, willing & able buyers and the low, low interest rates make it a perfect time to buy.  The SE Metro office scheduled over 500 showings for our listings last week and we have over 90 properties scheduled to close in November.  This month our office successfully closed a Penthouse Condominium at a sales price of $1.4 million.  Houses priced in the $300,000 to $500,000 price range are seeing steady traffic & successful closings.  Properties priced below $200,000 are slow to move.  The luxury market is also experiencing steady traffic but longer days on the market.  It has never been more important for homes to be in excellent condition and priced at the current market value.

Southwest Metro: Showings have increased over the last three weeks.  We’ve had good results with our open houses as well as floor calls.  We’re also seeing an increase in our listing and buyers are starting to not only look but are becoming serious buyers.  The activity on our listings especially in the $350,000 to $500,000 price range has been very good.  There is a sense that sellers and buyers are ready to move forward and list their homes, get them sold and find something new.  Interest rates are great and at an all time low.  Buyers are finally coming to the realization that thus us the time to purchase.  There also seems to be an increase in the number of investors wanting to start buying homes.  Some are for fix & flip and some to use as rental properties.  This increased activity with sellers, buyers and investors is a very positive movement in the right direction.

Denver West: Activity has picked up.  Attendance at open houses is up substantially.  The $250,000 price range & below, open houses are flooded.  Buyers are seemingly getting off the fence, although some trepidation still exists at the higher price point.  On the other hand, we’ve placed several higher priced homes on the market and the activity has increased in the million dollar market.

Conifer: We’ve had two new listings for the month to date in November although inventory is declining as unsuccessful sellers are withdrawing their homes for the holidays.  Showing activity has held up well through October into early November primarily due to good weather although the quantity of showings is expected to decrease as we move into the holiday season.

Loveland: Beautiful fall weather has kept the Buyers looking.  Showings are stabilizing at the current level.  Good news, showings in the $400,000+ price range have increased.  Lenders are extremely busy with refinancing business, appraisers are busy with the same business.  Short sales continue to be a large part of the business in Loveland.  Listings seem to be holding steady….Sellers are pricing properties more competitively.

*Based on information from Metrolist and Information & Real Estate Services, LLC for the period LTM October 31, 2009 through October 31, 2010.  Specific comparison dates are October 31, 2009 versus October 31, 2010.  Data represents homes priced $0 to $99,999,999.  Due to MLS reporting methods and allowable reporting policy, this data is only informational and may not be completely accurate.  Therefore, Coldwell Banker Residential Brokerage does not guarantee the data accuracy.  Data maintained by the MLSs may not reflect all real estate activity in the market.  Owned and Operated by NRT LLC.

**Six county Denver Metro area includes: Adams, Arapahoe, Boulder, Denver, Douglas and Jefferson.

***Based on information from Metrolist and Information & Real Estate Services, LLC for the period 1/1/10 through 10/31/10.  Data represents homes priced $500,000 to $99,999,999.  Due to MLS reporting methods and allowable reporting policy, this data is only informational and may not be completely accurate.  Therefore, Coldwell Banker Residential Brokerage does not guarantee the data accuracy.  Data maintained by the MLSs may not reflect all real estate activity in the market.  Owned and operated by NRT LLC.

 

 

Luxury Home Sales Come Back Down To Earth

Earlier this week, we released our Denver Metro Area Luxury Home Sales Report*, a monthly look at luxury home sales $1 million and above.  What we found is that after hitting a two-year high in August, luxury home sales in the Denver metro area came back down to Earth in September. Million-dollar property sales fell from the previous month and a year ago.

A total of 36 homes sold for more than $1 million in the Denver Metro Area in September, down from 46 a year ago and 71 last month. However, the median sale price did climb more than 14 percent from August to reach $1,422,500 in September. The median price was off 2.9 percent from a year ago.

The figures were derived from Multiple Listing Service data of all homes sold for more than $1 million last month in the Denver Metro Area.

The luxury end of the Denver Metro Area housing market, like the overall market, experienced an adjustment downward last month.  We’ll be looking to the next month or two to see if this was an anomaly or part of a trend.

Although the local housing market has improved overall from the depths of the recession, it still faces challenges. There are still economic headwinds the market has to contend with, both in terms of the job market and consumer sentiment.  We’re moving in the right direction I think, but improvement in the housing market will probably come in fits and starts until more of the macro economic issues improve.

However, despite the drop in sales last month, there are still buyers looking for high-end properties. Luxury properties that are priced appropriately, are well maintained and in desirable areas are still selling in a reasonable amount of time.

Some key findings from this month’s Coldwell Banker Residential Brokerage luxury report:

• The most expensive sale in the Denver Metro Area in September was a six-bedroom, seven-bath 10,473-square foot home in Cherry Hills Village that sold for $7 million;
• Denver boasted the most million-dollar sales with 11, followed by Boulder with 5, Greenwood Village with four and Cherry Hills Village with three;
• It took an average of 157 days to sell a million-dollar home in the area, down from 124 days a year ago and 98 days the previous month.

Now, let’s take a look at our local markets:

• Boulder—October listings recorded over the last four months indicate a very good listing month for Boulder county when compared to the same period in 2009.  While the current two week period is down the last four week total for Boulder county only is roughly 50% of the 1450 listings taken for the entire MLS database for October 2009.  Under contracts indicate a robust month for closings in November with active backups increasing to 168 units from the previous week period of 90 units (87%).  Showings have remained flat.
• Colorado Springs—Our showings have continued to decline the past few weeks and that has caused sales to show a slow decline as well.  Listings have held steady but 35% of new listings are short sale listings and one must get Mortgage Holders approval before the sale can close.
• Evergreen—We’ve had a total of 15 new listings so far in October with eight listings under contract and six buyers put under contract.  There have been a total of 269 showings and 20 previews so far in the month which is similar to October of 2009.  We’ve seen significant selling activity in homes priced from $500,000 to $1,100,000 during October which is the most activity that we’ve seen so far in the luxury market for 2010.
• Larimer County—The temperature is dropping, leaves are falling – and so are the interest rates!  30 year fixed rate loans in the low 4% range are simply astounding.  15 years fixed rates are under 4%!  The market seems to be stabilizing yet the relatively high inventory levels are still suppressing values and buyers remain in the driver’s seat on most transactions.  Showings have dropped off a bit, but no more than we typically see at this time of year.  Open houses remain consistent as buyers are still out there looking & looking.  Aggressively priced, well staged homes remain the best avenues for quick closings.  One side note, we just had one of our clients close an FHA loan in just under 3 weeks using CB Home Loans.  There are amazing opportunities in the marketplace right now – so be sure to get out & take advantage of what is likely the perfect combination of low rates & great prices!
• Longmont— Showings have rebounded with a strong 38% increase.  The listing price of homes shown has also increased.  Short sales are still very prevalent in this market.  Sellers are becoming more reasonable in pricing their homes to sell.  Longmont continues to be one of the most reasonably priced locations in Boulder county.  Buyers are taking advantage of the low interest rates and the value of home ownership.
• North Metro—With the coming of “fall” we have seen a slight increase in the number of showings we’re having on our listings & activity at our open houses.  This office put 45 new homes on the market in October, which is down from September.  Prices range from $70,000 to $1,000,000.  The agents that were the higher end market are seeing an increase in activity, finally & actually are beginning to get some of the million dollar homes sold.  Homes that are priced correctly are selling within 60 days.  It is extremely important to make certain you have the home priced correctly so that buyers will be interested & “anxious” to get in and see the home and hopefully write a contract.
• Parker—Our showing numbers have declined along with listings.  Sales however, have stayed strong because of the very low interest rates (below 5%).  This trend should stay this way for the remained of the year.
• Denver West—Agents continue to struggle with sellers regarding price.  Sellers need to realize that if they are not selling, they need to seriously consider a price adjustment.  Showings remain slow.  The media should focus on the low interest rates & how this is the very best time to buy.  Short sale negotiations continue to remain on a case by case basis.  Nothing has been streamlined when presenting short sale offers to the bank.  If a buyer wants to purchase a short sale property, they should be prepared to wait, sometimes in excess of a year, but with no guarantee they will be able to buy the house.
• Conifer—We’ve added four new listings for the month to date in October.  Four of our listing went under contract, including a property listed for $925,000.  Three buyers were also put under contract.  There have been a total of 87 showings and four previews for the month, which is up slightly from the prior month.
• Loveland— Showings have increased by 23%.  We see this as a nice indicator of sales to come.  The list price of homes being shown is still holding under the $250,000 range.  Loveland continues to deal with short sales and foreclosure properties.  Financing is still a major hurdle for most buyers these days.  The loan process is not an easy one but with today’s interest rates, the hard work of obtaining a loan can potentially reap many benefits for the buyer.

That’s it for this week!  I hope you all have a wonderful Halloween.  Enjoy trick-or-treating with your families.

Regards,

Chris

*The Denver Metro Area Luxury Home Report is produced by Coldwell Banker Residential Brokerage, a specialist in high-end real estate sales. Through its internationally renowned Coldwell Banker Previews® program, the company is recognized around the world for its expertise in the luxury housing market.

 

Weighing Your ‘Personal Economy’ vs. Nation’s Economy When Deciding to Buy or Sell a Home

I was at a luncheon recently and asked several of the Agents I was with what they were hearing out in the trenches. We heard the usual stories of buyers holding off due to fears of the slow economy or they were waiting for that perfect “screaming buy” to come along before purchasing.   And we heard about sellers not listing their homes because they wouldn’t get as much in this challenging market as their neighbors did a few years ago.  Then one Agent shared with us an intriguing philosophy that got her potential buyers and sellers to look at the market in an entirely different way – and ultimately take advantage of some great opportunities out there.

After her clients wrung their hands about the nation’s high unemployment rate, the fragile economic recovery, and other economic  stories they had seen on CNBC or read in this morning’s paper, this Agent replied with a simple question: “Ok, but how is your personal economy doing?”  After a puzzling look from her clients, she would explain that while the nation’s economy is important, it’s not nearly as relevant to them as their own personal circumstances when it comes to buying or selling a home.

In many cases, the Agent’s buyers had secure jobs with good incomes and strong savings and investments. With home prices easing and mortgage rates near record lows, they were personally in a good position to afford the home of their dreams – perhaps in a better position than they will be in the future when interest rates rise and home prices rebound.  Conversely, many of her sellers had a great deal of equity in the home that they had owned for years and would walk away with a good profit. She reminded them why they wanted to sell in the first place – to move up to a larger home, or maybe downsize in retirement, or perhaps relocate to be closer to their grandkids.   Her “personal economy” approach must have had an impact on her clients because she’s already sold 17 homes this year.

This story reminds us that it’s important for consumers to weigh their own “personal economy” against the nation’s economy when deciding whether to purchase or sell a home. It’s easy to get caught up in the daily drumbeat of economic news. You can’t turn on the TV or the radio, or read a paper without the latest economic minutia. While most experts agree that the U.S. economy is recovering and the risk of a “double-dip recession” appears over, some days it still feels like we’re taking two steps forward and one back.  But we can’t lose sight that what really matters in our investment decision isn’t the latest jobless figures or manufacturing orders or even the Case-Shiller index, it’s our own personal circumstances. Assuming your “personal economy” is reasonably good, it may be time to swallow your fears and take advantage of this window of opportunity to buy a home.

I’m reminded of the old saying that you make your profit on real estate when you buy, not when you sell. It’s a lot like the “buy low, sell high” philosophy of investing in stocks. While no one questions that there are economic challenges out there in the market, there are also tremendous opportunities. By the time all of those macro economic concerns have been lifted – when the “all clear” bell rings again – it’s doubtful the same opportunities will be around in terms of prices and mortgage rates. Your “personal economy” may just be the best indicator you have when considering whether to make a real estate move now rather than later.

Below is a market-by-market report from our local offices:

• Boulder—Sales continue to decrease another 10% when compared to a very slow previous two week period.  Showings have decreased by 14% over the previous two weeks & agents are reporting a reduction in Buyers who are attending open houses.  Boulder County has seen a 21% increase in listings with an increase from 350 units up to 425 units.  This fluctuation indicates a short term future increase in showings and buyer activity in the marketplace.  The third quarter for the entire IRES MLS system reported a 20% reduction in the total units sold when compared to the same quarter in 2009.  We expect to see a flat fourth quarter.
• Colorado Springs—Showings have continued to decline down about 10% from previous weeks.  Our listing inventory has also declined about 20%.  Sales have remained steady with low interest rates (under 5%) still a big factor for first time home buyers.
• Conifer—We had two new listings for the month to date in October and two listings went under contract so far with one buyer put under contract.  There have been a total of 42 showings and one preview for the month to date which is down slightly from the prior month.  Selling activity is primarily in the mid-$200,000 to $400,000 range.
• Denver Central—Inventory in the Denver Metro area is just below 2008 levels but has increased 20% over 2009.  Inventory is still well below 2007 levels when it was at its peak.  We continue to see home appreciation in the Denver metro area but that could be attributable to the recent tax credit.  Under contracts seem to have stabilized after the drop that we had after the tax credit deadline.  Closings are down September 2010 over September 2009 but we also had the Tax Credit last fall which pushed sales up.  The first 10 days of October have remained steady with last year’s numbers.  The market is very neighborhood specific so it’s important to be working with a professional that can educate & give you the proper advice to make the correct real estate decisions. We’re seeing improvement in the higher end market & sales have increased.  Total inventory continues to hover around 24,000 homes for the Denver Metro area.
• Denver West—Recently we’ve acquired numerous land listings.  In two cases, the builders are selling rather than starting construction for a speculation home.  The office has sold several properties above $500,000, and one for $1,600,000 which indicates there is still good movement in this price range.  Buyers seem to have a wait & see attitude.  Their new mode of thinking is that the market has not reached the bottom yet.  They’re waiting for that day to get the best bargain.
• Devonshire—Well, here we are in October and after a soft September, we’re very glad to see the leaves turning & the consumer back to thinking about & acting on real estate activities.  Showings are up & attendance at Open Houses is increasing too.  With interest rates so very good right now, we’re finally seeing an increase in momentum.  Sellers need to be sure that their homes are in premier showing condition, free of clutter & with all maintenance items taken care of.  Buyers are now in a situation where they are finding that “perfect” home & battling to get their offer accepted when there are other buyers waiting in the wings.  It will be an interesting winter with elections in the offing, with consumer confidence shaky and  with jobs reports uncertain.  The fact remains that sellers still set for a multitude of reasons & there are buyers waiting and ready to “move” on and into that perfect home.
• Evergreen—We’ve had a total of nine new listings so far in October with seven listings under contract and two buyers put under contract.  There have been a total of 110 showings and ten previews so far in the month which is on track to exceed September activity.  Selling activity included homes priced at $700,000, $875,000, $950,000 and $1,100,000 which is the most significant activity that we’ve seen in the luxury market so far in 2010.
• Larimer County—The Fort Collins market is enjoying a glorious Autumn with warm weather, sunny skies & lots of great deals on housing. Interest rates are outrageously attractive & homes under $280,000 continue to move quickly.  Uncertainty in the banking industry with regard to foreclosure procedures will likely result in a slow down in the number of bank owned properties coming on the marketplace. With inventories continuing to creep up even during this typically slower sales cycle, condition & pricing will remain the key components of getting homes sold to the pool of buyers that are pre-approved & ready to buy.  That being said, never before has there been such an opportunity to ‘buy-up’ in a down market.  Even if a seller’s net is lower than they would like, the upside potential on obtaining their next home at a super attractive price with equally attractive interest rates- qualified buyers have dramatically more purchase power than ever before.
• Longmont—Open houses are bringing in the lookers and the buyers!  Showings are up very slightly.  The great Colorado Fall weather is holding, no sight of snow so far. Inventory is steady and hopefully sellers will realize this is not the time to take any un-sold inventory off the market.  Can interest rates go any lower??  Why wait?
• Loveland—The market in Loveland stalled this last two weeks. Showings were down about 50% for one of the weeks in this report.  The good news is that contracts on our listings are being written and our Agents are writing contracts for their buyers.  The city of Loveland continues to be beautiful this fall…the trees in town are turning their wonderful fall colors and are making Loveland look lovely!
• North Metro—In the North Metro office we are averaging two new listings a day on the market.  Price ranges are from $96,000 up to $1,000,000.  We’ve seen an increase in under contracts in the upper end markets which is great news for our Sellers. Open house traffic is picking up but our showings on properties remain slightly lower than what we’re used to.  Getting your home ready for Fall showings is so very important at this time.  With a lot of inventory on the market, the home must present the best it possibly can.  It continues to be a great time for buyers to buy their dream home.  Interest rates remain low & there is a great deal of inventory to pick from at this time.
• Parker—Listings are down about 20% from previous weeks and that has a lot to do with our showings declining about 25% from previous weeks.  Our sales are down but still strong as the low interest rate (under 5%) still has buyers in the market.
• Southwest Metro—Showings are still very slow no matter what the price range.  We’re seeing a complete shutdown as far as buyers. They are waiting for interest rates to bottom out for the election.  We continue to educate our buyers that this is the time to buy.  Interest rates are great & after the election they could possibly start to increase.  We’re seeing a short sales increasing & banks are responding quicker.  Our open houses have been great & generating leads.  Our floor this past two weeks has also been very good generating three buyers for our floor person.  Agents are busy trying to educate not only sellers but buyers that this is a great time to list as well as buy.

That’s it for now. Have a great week!

Chris

 

 

10 Reasons to Buy a Home

I have to share this article with you.  I just came across this piece on WallStreetJournal.com entitled “10 Reasons to Buy a Home.”  It is awesome and exactly what the focus of my last several Weekly Market Watch editions have been.

Essentially what the reporter says is enough is enough with the doom and gloom – if the numbers work for you and you aren’t limited by financing constraints or other challenges – now truly is a great time to buy a house.

The reporter was inspired by a Time Magazine article which stated on its cover “Why owning a home may no longer make economic sense.”  What the WSJ reporter candidly points out is, Time Magazine was the same publication five years ago to run a story that said “We’re Going Gaga Over Real Estate.”

Why I like this so much is we’re finally seeing an article and a publication for that matter that is focused less on sensationalizing the real estate market and instead focusing on many of its benefits and how consumers can take advantage of today’s interest rates, inventory and of course, the overall benefits of homeownership.

Enough with the doom and gloom.  We shouldn’t be scared of buying a home.  If the math works for you, it’s probably a very good time to buy a home.  Be sure to view the reporter’s in-person interview shortly after the article was released.  It’s a good one.

For my Agents, I love this article so much that I’ve turned it into a piece that you can share with your own clients.  Please just click here and be sure to personalize and print it for your clients.

Now, let’s take a look at this week in real estate:

• Colorado Springs – Our showings have declined over the past few weeks and with the start of school and the holiday sales have also declined.  The low interest rates (4.25%) has kept some buyers in the market.  Listings have been steady but most listings turn out to be short sales.  Since our Agents are trained to deal with the short sale process, it’s ok.
• Conifer – We have three new listings for the month to date in September, including a horse property listed @ $8,750,000.  One listing went under contract so far in September with one buyer put under contract.  There have been a total of  42 showings and I preview for the month to date.  Our showing activity is primarily in the mid $200,000 to $400,000 range.
• Denver Central – Inventory continues to increase in the Denver Metro area and is just below 2008 levels but has increased 20% over 2009.  Inventory is still well below 2007 levels, when it was at its peak.  We continue to see home appreciation in the Denver metro area but that could be attributable to the recent tax credit.  The average sales price in August was $269,000 for the Denver Metro area.  We could see appreciation tail off in the coming months with inventory increases.  Under contracts seem to have stabilized after the drop that we had after the tax credit deadline.  The market is very neighborhood specific so it is important to be working with a professional that can educate and give you the proper advice to make the right real estate decisions. Over 50% of the homes sales in the Denver metro area continue to be under $250,000.  We’re seeing improvements in the higher-end market & sales have increased.  There was a 48% increase in the million plus home market in August 2010 vs 2009.
• Devonshire – As we move into fall, we’re hoping for the after Labor Day surge that we’ve seen in recent years.  The showings at this time are not showing this momentum and we hope that a “short” week would make this justifiable.  We are encouraging sellers to allow open houses because we all know that consumers still like to walk through homes and get a true sense of the home itself as well as the neighborhood where the home is located.  Buyers still seem to be on the fence & may be waiting for that ultimate interest rate drop.  With economic indicators, like consumer spending being released this week, we’re anxious for good news & hope that this news will help to get the real estate market moving in a great direction into the fourth quarter of the year.
• Evergreen – We have had a total of six new listings so far in September with three listings under contract and five buyers put under contract. There have been a total of 111 showings and six previews so far in the month which is a decrease from August activity.  Selling activity was predominately in the mid $300,000 to $500,000 range.
• Parker – Our sales and showings have been steady and with interest rates still at an all time low (4.25%) sales should remain steady or increase throughout the remainder of the year.  Listings are up with 80% being real listings and not short sales.  That is very good news for buyers who need to close quickly as short sale listings can take 4 to 6 months to close.
• SE Metro at DTC – “The Fall Flurry” of activity is up and running!  The SE Metro office is seeing increased activity in showings & contracts after the Labor Day weekend.  Open house activity has also increased & several buyers visiting our listings are unattended & ready to buy.  Although the Denver market reported a significant decrease in closings in August 2010 compared to August 2009, the SE Metro office posted a difference of only 5 closings for the same time frame.  A combination of pricing & condition for many listings continue to be the driving force for the buyers.  The average number of showings before a property is under contract continues to hold steady at 20. Homes listed above $300,000 are seeing the most activity and in several instances, multiple offers.  Homes listed at $200,000 & below do not have the activity reported in June and July. The luxury home market is enjoying a steady stream of activity & over 50% of those listings are currently under contract.
• SW Metro – Showings are still down compared to this time last year.  We’re seeing better showings Monday through Friday compared to Saturdays and Sundays.  Open houses have been great in some areas & slow in others.  Buyers are still out there but they are taking their time to purchase.  We’ve seen an increase in investors starting to look & making offers on properties.  Most sellers are realistic in pricing their home however there are some who still think if they wait a year or two they can “get more money.”  We are working to educate our sellers that this is not the case.  Interest rates are great !
• Denver West – Our numbers for listings, under contracts and showings have all slowed down.  Of course, we have to take into account that we had a long Labor Day weekend that may have affected things.  August numbers are more like a September, and September will be more like October this year.

Reality Check is Hot Off the Presses!

Check it out!

New Figures Underscore Continued Modest Recovery

Figures released today by the National Association of Realtors are a good indicator that the market continues to improve – though at very modest levels.  I’ve been saying for months that the market is, in this post recessionary period, improving though will continue to do so with minor bumps in the road along the way.

Last month’s lower than expected sales figures were just that, a bump in the road.  We saw the slip partly due to seasonality and partly due to the expiration of the tax credit.

Now, one month later, we’re seeing numbers rise.  According to the National Association of Realtors’ Pending Home Sales Index, pending home sales rose 5.2 percent to 79.4 based on contracts signed in July from a downwardly revised 75.5 in June.

According to Lawrence Yun, NAR chief economist, “Home sales will remain soft in the months ahead, but improved affordability conditions should help with a recovery,” he said.  “But the recovery looks to be a long process.  Home buyers over the past year got a great deal and buyers for the balance of this year have an edge over sellers.  For those who bought at or near the peak several years ago, particularly in markets experiencing big bubbles, it may take over a decade to fully recover lost equity.”

Now of course this is a national perspective and we all know that real estate is local.  Locally we’re seeing some pockets of strength.  Some of the most sought after neighborhoods continue to see strong sales while those that may be challenged due to proximity to jobs and commerce, are seeing bigger lags.

Overall what we’re seeing most is buyers want to take advantage of the low interest rates and realize that thanks to those rates, they have particularly higher purchasing power right now.  From a move-up buyer perspective, we’re seeing a lot of sellers consider selling right now.  Yes, they realize they may take a hit from the flurry days of the early part of the decade but when they compare it to what they can purchase on the move-up side and what their monthly payment will be, they truly see a benefit.  These indicators are really helping to drive our market right now.

The bottom line is, we are on a good recovery path.  And an interesting report this week underscores that.  Bankrate revealed numbers that provided a good look at consumer confidence. An overwhelming 90 percent of homeowners say they don’t regret buying their current home.  That is even in the face of stagnant – or sliding – home prices home owners have suffered.  It is comforting to see this number because regardless of where market conditions currently are, consumers continue to understand that real estate is a good, long term investment.

Now, let’s hear what our local offices have to say:

• Boulder—New listings are up almost 12%, but sales activity is down almost 10%.  It looks as though there is an excess of properties and not as many buyers for them.  This is very noticeable in the amount of showings.  Showings are down over 20%.  This means that the market is saturated with homes for sale but the demand for these properties has dropped off in this period.  The showings reflect the sales activity in this case.
• Colorado Springs—Sales have been increasing for the past few weeks as buyers are taking advantage of low interest rates (under 5%).  Listings have also been increasing as sellers know that if they can get their homes sold they can become buyers & take advantage of low rates & move up to a larger home.  Overall, showings are down about 35% from last week.
• Conifer—There were three new listings in the Conifer office for the month of August. We also had three listings go under contract in August with five buyers put under contract.  A total of 117 showings and 5 previews for the month reflects a 60% improvement from the prior month.  Our showing activity is primarily in the mid-$200,000 to $400,000 range.
• Denver Central—Inventory continues to increase in the Denver Metro area and is just below 2008 levels but has increased 20% over 2009.  Inventory is still well below 2007 levels when it was at it’s peak.  We continue to see home appreciation in the Denver metro area but that could be attributable to the recent tax credit.  We could see appreciation tail off in the coming months with inventory increases.  Under contracts seem to have stabilized after the drop that we had after the tax credit deadline. The market is very neighborhood specific so it is important to be working with a professional that can educate & give you the proper advice to make the correct real estate decisions.  Over 50% of the home sales in the Denver metro area continue to be under $250,000.  If you’re looking to sell a home that is priced under $300,000, this is a great time.  We’re seeing improvement in the higher-end market & sales have increased.  This is definitely a great market to move up to a higher priced home.
• Denver West—Denver West has enjoyed closings in the $600,000, the $700,000 and even the $800,000 sales point. Many buyers are motivated & are taking advantage of these low interest rates. We’re experiencing many sellers buying up, yet renting out their current home since they can’t achieve the price they want. We’re also seeing a high desire to rent from former homeowners who lost their homes through short sales & foreclosures.
• Devonshire—Here we are at the end of summer & it seems that many people are out enjoying the last days before all of the fall activities get into full gear.  We can feel the angst in our buyers as they are struggling with proceeding to find that new home and take advantage of the wonderful low interest rates.  Inventory in some price points is slim. It seems that many buyers have decided to hold on until they feel that the economy is a little more stable.  A bright light seems to be in the upper price points where we have had more activity and actual closings than in the last few months.  We had the highest sale in the metro office in 2010, in the Devonshire office & we’re proud of Kelly Westergren for representing the buyer on that transaction.  Fall is historically a good time of year for us and we’re looking forward with excitement to see all the successes that fall will bring.
• Evergreen—We had a total of 19 new listings in August, with 9 listings under contract and 7 buyers put under contract.  Both are very similar to our July totals.  There was a total of 320 showings and 24 previews in the month which is a 30% improvement over July activity but still 7% below levels from Aug 2009.  Selling activity was predominately in the mid-$300,000 to $500,000 range.
• Longmont—Showings are holding very steady.  Homes being shown are still in a wide range of price points.  Move up buyers are in our market looking.  Financing is still an issue for buyers. Self employed buyers are having difficulties securing loans.  New homes in all price ranges are coming on the market & sellers are realizing that keeping their homes on the market longer will be necessary.
• North Metro—Fall is in the air, the kids are back in school and now is the perfect time to purchase a home.  We are seeing increased activity at Open Houses and in the number of floor calls coming to our office.  The average sales price has increased to $275,000 for homes sold.  We have 73 new homes listed this month as compared to 70 for last month and we’ve helped buyers and sellers close on 74 properties.
• Parker—Our listings and showings are down from the past week as families return from vacations.  Our market is still strong with buyers as the low interest rates (under 5%) make it likely that this trend will continue for a while.
• Southwest Metro—Showings have been steady but they’re still significantly down from June of this year as well as this time last year.  The buyer pool is waiting and we do not understand what they are waiting for as the interest rates are so great. We’re seeing good activity in homes over $300,000 & less activity in those below that amount. The first time buyers are not moving but are waiting.  Sellers are still ready to list their properties but are not realistic as to the value.  Everyone seems to be in a holding pattern waiting to see what is going to happen.  We’re sending out newsletters showing that this is a great time to finance a home.  Open houses have been good & a couple of agents did have several good buyer leads in the past two weeks.

Luxury Home Sales Dip in July But Price Niche Continues to Be Among the Market’s Strongest

Earlier this week we released our Denver Metro area luxury home sales report, one of our company’s best and most influential indicators of the current state of the luxury housing market.  If you haven’t seen it, I encourage you to visit our Table Talk blog as we post them monthly and they truly provide a good understanding of what’s going on in the million dollar plus arena.

To recap, luxury home sales in the Denver metro area last month dipped four percent over the same period in 2009 while prices were flat year over year.  A total of 50 homes sold for more than $1 million in the Denver metro area last month, down slightly from the 52 sales in July 2009.  The median sale price of million-dollar homes remained at $1.22 million, the same as a year ago.

Both sales and prices in July declined from June’s numbers, when sales reached their highest level in nearly two years. Sales in June totaled 67 properties, 17 more than July, while the median sale price in June stood at $1.34 million, 8.9 percent higher than the July level.

The figures were derived from Multiple Listing Service data of all homes sold for more than $1 million in the Denver metro area.

July’s sales decline in luxury homes was far less than the general market, which saw sales of all homes and condos drop 26.6 percent last month from July 2009, according to Metrolist. Sales also fell 19.5 percent from June of this year.

My analysis?  Quite frankly we’re pleased to see the strengthening of the upper end of the housing market despite the softening of the lower end after the federal tax credit expired.  We are carefully tracking the upper-end market’s success so far this year to see if the positive trend continues into the fall.

July’s slight year-over-year decline in luxury home sales followed five consecutive monthly gains. In fact, million-dollar sales year to date in 2010 are actually up nearly 18 percent compared to the same period last year.

We’re seeing an improving level of consumer confidence among buyers in the upper end that we haven’t seen in three years.  One reason may be Colorado’s relatively low unemployment rate of 7.6 percent, two full percentage points below the nation’s jobless level. The numbers suggest a slow but steady economic recovery, which in turn in helping bolster consumer confidence.

The high-end buyers who have been on the sidelines for the past couple of years are starting to jump back into the market.  They’ve been waiting and waiting, and seem to have decided that both prices and interest rates are about as low as they’re going to get, so they’re moving ahead their plans to invest in real estate again.

Some key findings from this month’s Coldwell Banker Residential Brokerage luxury report:

• The most expensive sale in the Denver metro area in July was a nine-bedroom, eight-bath 11,000-square foot home in Denver that sold for $4.5 million;
• Denver boasted the most million-dollar sales with 12, followed by Boulder with nine, Castle Rock with seven, and Greenwood Village with five;
• It took an average of 124 days to sell a million-dollar home in the region, up from 116 days in June and 83 days a year ago.

As you can see, on the surface, these numbers may be seen as a negative but honestly, I see quite the contrary.  We’re finally seeing some great movement in the upper end and buyers are acting which is a good sign for the overall economy.

Now, let’s take a look at this week in real estate:

• Boulder/Longmont— The Longmont market has been erratic.  Showings were steady for the week of 8/2/2010, then showings were cut in half for the next week!  The good news, we are seeing an increase in the price of our listings being shown.  The move-up market is getting some good showings which we hope translates to confidence in our Longmont market place.  We hope so.  With local schools starting earlier than usual this year we’re attributing the decrease in showings to families making the transition into Fall.  Short sales continue to be a long and uncomfortable process.  Homes that are priced to sell are seeing multiple offers and they are not on the market long.
• Colorado Springs— Sales have been increasing for the past few weeks as buyers are taking advantage of low interest rates (under 5%).  Listings have also been increasing as sellers know if they can get their homes sold they can become buyers and take advantage of low rates, then move up to a larger home.  Overall, showings are down, about 25% from last week.
• Evergreen/Conifer— No information reported.
• Fort Collins— The Fort Collins market is in “Back to School” mode which typically occurs during the first 2 or 3 weeks in August.  Families and university students are focused on getting ready for the school year illustrated by a drop in showings and overall contract activity.  CNN/MONEY’S recent ranking of Ft. Collins as #6 in their Best Places to Live survey of mid-size cities as well as US News & World Report’s ranking of CSU as a top school continues to generate more inquires from out of state buyers.  With interest rates in the mid 4% range we’re seeing a continuation of elevated refinance activity too.  While this doesn’t necessarily boost sales, it does help to keep inventory levels in check.  Well priced, well-maintained homes are still moving relatively quickly in the under $300,000 price range. There’s also increased showing activity in the $300,000 to $500,000 ranges, further demonstrating the increased buying power that low interest rates are creating.  Distressed properties are still prevalent and contributing to a relatively flat appreciation rate.  The hope is that low interest rates, refinancing opportunities as well as loan modification programs will help  keep the so-called ‘shadow inventory’ at bay.
• Denver Central – Inventory continues to increase in the Denver Metro area and is just below 2008 levels but has increased 20% over 2009.  Inventory is still well below 2007 levels when it was at its peak.  We continue to see home appreciation in the Denver Metro area. We continue to have a drop in under contracts and closings after the tax credit deadline passed.  The market is very neighborhood specific so it is important to be working with a professional that can educate and give the proper advice to make the right real estate decisions.  Over 50% of the home sales in the Denver metro area continue to be priced under $250,000.  If you are looking to sell a home that is priced under $300,000 this remains a great time to sell.  We’re seeing improvement in the higher-end market and sales have increased.  This is definitely a great market in which to move up to a higher priced home.  Your financial gain in getting a higher priced home for less should be a big reason to make a move now.
• Denver West – The Denver West Agents remain quite busy even though the number of showings on our listings have reduced by half.  Buyers are active in the market due to the low interest rates.  Sellers now realize that it will take many years to see appreciation rates of the past.  As a result of this, they are listing their homes and pricing at fair market value (not aggressively).
• Devonshire— Once again we see the angst in the general public reflected in real estate activity.  What should be the perfect time to buy a new home seems to be stalled with uncertain news on the job front.  We do see listing inventory increasing which will put us in a good position as we come out of the hot summer months and kids are back in school.  Listings that are priced fairly & show well are certainly selling.  We’re encouraging our people not to wait and to get their homes on the market as soon as possible.  Showings in the luxury sector of the market are increasing as are contracts on those homes.  Sellers are feeling more optimistic about getting their homes under contract & closed.  We’re optimistic at Devonshire about a better fall season than we’ve seen in recent years.  With good news on the job front, even if it’s seasonal we’ll have a great story to tell.
• Loveland—The Loveland market saw a 30% increase in showings week over week.  The price point of the homes being shown has been on a gradual increase since the beginning of the summer.  Short sales and foreclosures are still impacting some areas of town.  More conventional resales are being listed.  This is a good that not all sellers are in distress buyers.  The loan process for buyers can be a lengthy ordeal with documentation being requested on what seems the most minor point.  We are anticipating a wonderful fall for buyers and sellers.
• North Metro— We have felt a slight slowing of the market following the tax credit expiration.  Buyers are a little more selective now & not making decisions as quickly as in the first 4 months of the year.  We continue to have the market share of listings in Adams & Broomfield counties and put new homes on the market every week.  Our calls into the office from people not represented by an agent have increased.  Most of these people are looking to sell their homes versus buying.  It is a great time to purchase a home with interest rates around 4.5% and good inventory to pick from.
• Parker— The number of listings and the number of showings are both down the past week as families return from vacations.  Our market is still strong with buyers as the low interest rates (under 5%) make it likely that this trend will continue for a while.
• Southeast Metro— Interest rates have never been this low!  It’s absolutely the best time to buy real estate!  The SE Metro office is experiencing a steady flow of new listings coming on the market.  We currently have over 520 listings with the average days on market being 90 days.  Weekly showings are steady & open houses in high energy areas continue to enjoy buyer traffic.  The luxury market has seen an increase in buyer traffic & the number of homes sold in this price range has increased in the last two months.
• Southwest Metro – We’re seeing an increase in buyer activity with interest rates so great.  Sellers are listing their homes, however showings have increased over the last 4 weeks, but are still down from a couple of months ago.  We’re seeing success at open houses.  Our listings & buyers are around the $300,000 to $500,000 range & the activity in the price range below $300,000 has been slow.  With the best interest rates in years, we’re encouraging our buyers to buy now.  We compared a home purchased & closed in April/May with the $8000 tax credit & what it would cost if they closed with today’s rates, the buyer would save more due to the low rates.