Denver News Online July 2019

Page 14

R e a l E state

Looking at the urban neighborhood map below, it shows the market is moving in a positive direction in sold price and in average price per square foot. Sales are a little less for1143 June. 1590 Little Raven Street #904 Auraria Street #204 1 Bed • 2 Baths • 1,260 SF • $650,000

Contact Steve Blank, Managing Broker at 303-520-5558

38th Ave

Sold data gathered per MLS RES and COND databases avg price

avg psf

median DOM

avg % sold price to list

243 212 -13%

$554,247 $565,506 +2%

$410 $439 +7%

10 12 +20%

99% 98% -1%

Courtesy of John Ludwig, Broker, LIV Sotheby’s International in Writer’s Square 303-601-1792

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Golden Triangle

Whittier

Five Points

Colfax Ave

“SPREADING THE WORD” FOR COMMUNIT Y BUSINESSES & NEIGHBORHOODS IN DENVER

Cole

Curtis Park

N

Riverfront LoDo Downtown er Spe

# of sales

RiNo

Highlands LoHi

Uptown

Capitol Hill

York St.

Sold Price Analysis Stats for June 2018 vs June 2019 Month June 2018 June 2019 % change

1 Bed • 1 Bath • 1,046 SF • $350,000

Broadway

Denver’s inventory of homes available for sale remains below National averages and is lower than most Metropolitan cities. The good news “for buyers” is that inventories are growing and it is taking a little longer for homes to sell. Inventory levels traditionally rise over the summer months and are currently the highest since 2013 with over 9,500 active listings. That said, there is still only about two months of inventory available as we approach mid-July. For the sellers pricing their homes at the top of this evolving market thinking there is no ceiling; and to the buyers waiting for some bubble to burst so they can buy their dream home in a “foreclosure sale”… neither scenario is a reality. Currently with Denver only having two months of available homes on the market (Nationally the home “For Sale” inventory is around a four-month supply) the foreseeable future of real estate looks to be nicer and easier. According to the National Association of Realtors (NAR), a seller’s market is when there is a 3 month supply of available homes on the market. NAR considers a good balanced market to carry a 4-6 month supply of homes, and a buyer’s market kicks in at greater than a 6-month supply of available homes to be absorbed. Our metro-Denver market has been exceptional since the second half of 2012 and remains very good. When you read or hear about prices dropping, it is not a bubble bursting but much more a seasonal shift. The greatest level of price appreciation takes place between February and June, ever since 2012. Supply of “for sale” homes increases during the spring season and continues into the summer. Sellers tend to hope and believe that values will continue climbing when in fact they have level off as supply increases, amplifying the season trend of softening demand. Megan Aller of First American Title said it best in a recent article, “buyers looking for increased affordability will be rewarded in July-October with more frequent price reductions. For a bubble to burst, there must be rising prices and rising inventory well beyond the point of balance.” Cities like Phoenix, Miami, and Las Vegas were experiencing 25-35% annual appreciation and were highly overbuilt…Denver is not in that world.

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By Steve Blank, Managing Broker Liv Sotheby’s International Realty in Writer Square

properties

WITH wait for the Make decisions that are right for you now. Don’t extraordinary market to be perfectly ripe because you can almost never find that lives and will miss out on many personal and financial rewards over months or even years. Another current and future reality for invenCONSIDERED ONE OF DENVER'S TOP PRODUCERS, tory levels is, we have entered a “Homebody Era”. Homeowners are FEW PEOPLE KNOW DOWNTOWN DENVER REAL ESTATE holding onto low interest rates andTHAN paid-off mortgages BETTER DENA PASTORINI.as they age-in-place, resulting in fewer people moving. As a long time resident of Riverfront Park, Dena serves as a For about 20 years prior to Sotheby's the recession, the average tenure broker at LIV International Realty, working with Sellers and Buyers throughout all of central of a homeowner averaged between seven and nine years. Denver. During, and just after the recession, that time frame was about six years. 720.233.9096 • dena.pastorini@sothebysrealty.com As of May 2019, that number became eleven years as reported by Inman.com. Very low rates and accrued home equity, as well as technology and healthcare improvements have made aging-inplace more possible. Plus they enjoy a sense of pride in owning their home while growing personal wealth. In response to questions asked by some of my sellers about current buyers’ desires and trends, the following observations may be helpful: 1590 Little Raven Street #507 1401 Wewatta Street #PH4 - Buyers who find “move-in homes with desired 4 Beds • 5 Baths • 4,071 SF •ready” $3,250,000 2 Beds • 3 Baths • 2,678 SF •ame$2,000,000 nities and décor will pay a premium. - There are still buyers looking for homes in “original” condition hoping to pay a fair value and improve the home with sweat equity. This buyer used to represent a large percentage of the market but is now diminishing in favor of homes they can just move into and hang artwork. They will pay more for finished 1590 Little Raven Street #302 1720 Wynkoop Street #212 3 Bedsthey’ve • 3 Baths • 2,484 SF •on $1,400,000 2 Beds • are 2 Baths • 2,456 SF • $1,189,000 properties like what seen HGTV. They less willing or capable - of fixing up a home, but know exactly what they like when they see it. - The last group are contractors and flippers looking for distressed property that are profitable when fixed-up. Homes in the middle category are being forced into the last category and need to be priced accordingly,2210 making it frustrating 1022 Pearl Street #101 Blake Street #402 Beds •a3 Baths • 2,771experienced SF • $950,000 2 Beds • 2 Baths • 1,793 SF • $869,000 for sellers. If you 3hire smart, broker to help weave through the nuances of the market, many opportunities are available to you.

Federal Blvd.

Cocktail Chattables 7.15.2019

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Cheesman Park

JULY 2019


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