School Has Started & The Housing Market is Normalizing

School Has Started & The Housing Market is Normalizing

  • Victoria Merchant
  • 08/25/22

Life Stuff

The first week of school is out of the way, and it could not have gone better! The kids are happy, loving their teachers and classes, and making new friends. Back to School Night at the middle school was last night, and we got some stellar feedback from the teachers about how this class seems to be very kind and anti-bullying. I mean, what more could a parent ask for?

Bridger already has a load of friends, which is helpful. Sterling just makes friends everywhere he goes, a built-in feature that comes with kids his age that I envy tremendously. 

I have a birthday coming up this weekend, and as you likely know about me, I’m one of those people who is ill-equipped to handle my birthdays. I don’t like ‘em. I think birthday cards should be replaced by sympathy cards, and celebrations should be spent watching depressing movies and crying. I’m being a bit dramatic, but you get the idea. I’ll actually be celebrating at Meow Wolf, and I can’t wait. Ever been? Thoughts? 

We were invited to a concert at Red Rocks too, but I just can’t do live music anymore. I’d prefer a dinner party. Or a brunch. You know, with talking and stuff. 

As far as work goes, right now, I have two properties under contract, and they're moving right along. I had a closing last week for an off-market house that we worked on for a year (due to some well/property line issues). My client was the seller, and although he’s thrilled the process has finally ended, he’s pretty sad because it was his family home. 

The client gifted me a grandfather’s clock that was in the house and that he had given to his dad. I mean, wow. That’s pretty cool. The sentimentality and emotion that come with selling and buying a house are always impactful, and I hope I never take it for granted. 

My Real Estate Status and Predictions

The market has slowed dramatically since this spring but I think we can all agree things were super unhealthy these past couple of years. There are double the listings and half the sales going on right now depending on the area and the price point but we are still not fully in a balanced or buyers market. Honestly, it’s a healthier, more stable market, so this leveling is good for all. 

I don’t consider this a crisis and don’t think homes will be depreciating. I think it will just take longer to sell a house, and that’s not horrible. If you own your house, it still has a lot of equity, so don’t panic… yet.

New Listing

Welcome to Chatfield Bluff South!! Chatfield Bluffs is a neighborhood in Littleton, Colorado located off C-470 and South Kipling Parkway, walking distance to the Botanical Gardens and Hildebrand Ranch Park, and minutes from Chatfield Reservoir, and Lockheed Martin. This 4 bedroom (plus office), 3 bathroom, 3,700 square foot ranch home is a true oasis. Enjoy your very private back yard with deck and hot tub or stay inside and enjoy your massive open concept living, kitchen, and dining room. New roof with a transferable warranty as of October 2021, all viking appliances, main floor primary suite, 3 car garage, tons of storage, and low HOA fees are just a few of this properties amazing features. Check out the video walk through and book your showing today. Showings start Thursday, August 25th at 9:00am and there will be an Open House on August, 27th from 11am-2pm.

Current Denver Area Real Estate Market

"For the first 4 months of 2022 median days on market was 4 and we knew that if a home was on the market longer than a week a price reduction was likely necessary. With the market shift, showings slowing and fewer buyers looking as kids head back to school we may need to adjust the rate at which we are making price reductions. These are overarching trends and it's important that you focus on your local market to make a decision as to when to reduce a property. Let's review the 3 strike rule. Based on data from last week average priced properties were receiving 2 showings per week. If you are not getting 2 showings per week it may be time to consider a price reduction.

We also track how many showings to go under contract, and based on data from last week it was an average of 13 showings should yield a contract. So if you've have a total of 13 showings and no offers you may need to consider a price reduction, which may be strike 2. Lastly, looking at median days on market or the point at which half of the homes are under contract for last week was 18 median days on market. If you hit strike 3 and are on the market longer than 18 days you may need to consider a price reduction. Download the weekly report to see how many price reductions and how much of a price reduction is being made by price range."

-Megan Aller

My Top 5 Reasons Why We Aren’t In The Middle Of A Housing Crash

  • Equity- Homeowners have way too much equity in their homes. If a homeowner finds themselves in a financial pickle right now, chances are they have quite a bit of equity in their home giving them the necessary buffer to sell their home, potentially making some money, and get out from under any financial issue they may be encountering. 
  • The Market- Regardless of what the talking heads are telling you, the truth is, we still don’t have enough inventory for the demand in the Denver metro area. Yes, homes are taking longer to sell but that’s only compared to the insanity that was the last 2 years. In a ‘normal’ healthy market (meaning an average of 4% appreciation per year) it should take anywhere from 6-12 weeks to sell a home that is priced right. It’s time to recalibrate, people.
  • Jobs- It’s safe to say at this moment that if you want a job you can or do have one. This is one of the best leading indicators of a fragile housing market. Watch this number closely.  
  • Inventory- Inventory is on the rise but builders are still behind. As long as people are having babies we are going to need more housing. 
  • Millennials- This is the largest demographic and they are just reaching home buying age so watch out. As soon as they realize 2-4% interest rates aren’t normal (average is closer to 8%) and that current rates aren’t that bad, game on. 

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