Oh What a Winter We’ve Had!
With the sun shining and spring in bloom, it’s hard to imagine that things haven’t always looked this rosy. But, oh what a winter we’ve had! The cold weather seemed to be a constant in Colorado over the past few months as the housing market decided in which direction it wanted to go.
Well, it may still be deciding, but the good news for Colorado is that the usual flurry of spring activity is back, and actually back a little early. We’re seeing a lot of buyers out there kicking the tires and poking around, but with a little more reserve and caution. The lack of inventory in some markets isn’t helping. They are waiting for their ideal house and, in some cases, what they are seeing may not be doing the trick.
While sellers are not giving their properties away, in many cases they are succumbing to buyer’s demands and reducing their offer prices (especially if they’ve been lingering on the market). We are hoping to reach that happy medium point where sellers are more realistic about their prices and buyers are recognizing the deals. What doesn’t work is when the sellers refuse to reduce to the market price, and when buyers try to get sellers to sell way below market price – this is not a time to be greedy. That only results in one party getting angry and walking away from the deal.
So, for us in the real estate world, this spring is about finding that happy medium. Working with our buyers and sellers so that everyone is getting what they want. The deals may be a little more involved than they have in the past, but at the end of the day if we can get people into or out of their home with a smile on their face, we will have done our job!
Now, let’s take a look at this week in real estate:
- Boulder/Longmont—Boulder reported everything’s up in Boulder county during the first 2 weeks of March, including a few early crocuses. No count on the flowers, but sales are up by 7% from the last 2 weeks of February, showings have increased by 13% and new listings are up a hefty 25%. Agents report that many sellers who could not sell during the last part of 2009 are trying again and expired listings seem receptive to prospecting efforts. Longmont reported spring has come to the Rocky Mountain Front range. Showings are up 54% week over week. The price of homes being shown is also consistently including homes priced in the mid-$300,000 price range. Current homeowners are talking to listing agents and looking at move-up possibilities in their market. Investors are trying to purchase. Investor financing is requiring a sizeable down payment causing issues for some would-be investors. We still have a large number of buyers waiting for notification from banks on short sale approval. HUD prpoperties are a great opportunity right now.
- Evergreen/Conifer—Evergreen reported our showing activity continues to increase with 180 showings during the prior two week period. There was a total of 13 new listings put on the market so far in March with 3 listings put under contract during the same period including one developed lot in a cash deal and one short sale. Four buyers were put under contract in the 2 week period, with one out of state buyer. We’re seeing continued strengh in the mid-range of $400,000 to $800,000. Conifer reported we had a total of 64 showings for the month to date which is on pace with last month. Two new listings during the last two weeks with four listings going under contract. There was a total of 5 buyers put under contract including 3 first time home buyers and one HUD deal. Good activity in new listing appointments as well as showing new buyers.
- Denver Central – In January and part of February we had a little bit of a lull with first time home buyers but we’ve had a significant increase in activity during the last two weeks of February. The first two weeks of March have been great and sales continue to increase. We’ve seen a year over year increase for under contracts in Denver. Appreciation is neighborhood specific & there are some hot areas in the Denver metro area. It’s important to be working with a professional that can educate and give you the proper advice to make the right real estate decisions. The April 30th under contract deadline for the tax credit is fast approaching & buyers are realizing that with low inventory they need to start the process of looking for property now. The inventory shortages in the lower end market has created multiple offer situations for most homes in that market. It might take a couple of offers before buyers find the right property.
- Denver West— Denver West Agents have commented that not all of their activity is related to the tax credits. Sellers are selling and buyers are buying and they don’t qualify for the credits. We have sold several homes in the past two weeks in a range that exceeds $600,000. Properties listed above $400,000 are getting a sizeable number of showings and activity remains very brisk in the $280,000 and below range.
- Devonshire— We are so happy to report a very nice surge in the market place which we’re all excited about! One of the biggest changes for us at Devonshire is the activity at our Open Houses. Our listings are getting great traffic. Several consumers are saying that they were attending the open houses as a direct result of our newspaper ads & TV shows advertising them. Sellers sitting on the fence would be well advised to get their houses on the market right now. These homes need to have great curb appeal & show well to attract the attention of the excited buyers who are out in the marketplace. Sellers would be well advised to work with real estate professionals who are experts on pricing and marketing of their homes. Pricing is crucial. Buyers are very knowledgeable and looking for the right opportunity. Now is the time and spring will be exciting for both buyers and sellers.
- Douglas County— Our Southwest Metro office reports our showings continue to increase every week. We’re seeing great activity at our open houses and with our agents working with buyers and sellers. The problem we’re seeing is that there isn’t sufficient inventory in the Highlands Ranch, Castle Rock, Centennial and Littleton areas for buyers. Many sellers are still waiting to list in April and our Agents are telling them, do not wait. Now is the time to list. We’re seeing an increase in first time buyers looking at HUD homes more so than short sale properties due to the tax benefit deadline. Our agents are busy and our phones are ringing!
- El Paso County— Colorado Springs reports business is a buzz in the Spring! Buyers are looking for the great deals and many are still looking for the incredible tax credit that will expire soon. Sellers are hearing of this flurry of buyer activity and are finally getting the homes on the market. Everest College is expanding into Colorado Springs and will be hiring more staff. The College will be housed in the former Intel complex on Garden of the Gods Road. This building has been vacant since 2008.
- Larimer County—Our Fort Collins/Loveland offices report, “Can you believe it? The first quarter is nearly complete!!” It didn’t start off with a bang, but we are gaining momentum as the quarter nears an end and we expect to see a very busy second quarter. Some great news for single family home sellers is that the median purchase price is up nearly 2% so far compared to the end of last year. In addition, we are seeing a huge jump in showings this last two weeks – up an astonishing 16%! Several agents have reported homes going under contract in just a few days and very near the asking price. Tax credit, tax credit, tax credit, get it before it’s gone! Get out & find your new home today. You can move up, move on or move out!
- North Metro— Comparing March to February (the first 15 days of the month), the North Metro has twice as many listings as this time last month and twice as many under contract. There is an urgency to take advantage of the tax credit before it’s too late. The average sales price out of our office is $250,000. The average list price is up to $275,000. We continue to see low inventory on homes under $200,000 & multiple offers. With the nice weather, activity at open houses and sign calls is picking up. We have even been experiencing walk-ins to our office, people ready to get their homes on the market to beat the spring rush.
- Parker— The activity continues on a high level. The number of under contracts this week is still up and the number of showings has increased yet again! The main reason of course is the upcoming deadline for the tax credit, where properties need to be under contract by April 30th. The fact that interest rates are still very low helps as well. Since there are still a lot of bank owned properties not released into the market, this is the time for sellers to list if they are still on the fence. Home values have been stable for a few months now and are even increasing in some areas.
- Southeast Metro— The market is on the move! The SE Metro office is currently holding over 500 active listings. Properties are selling just as fast as the Agents can place new homes on the market. One of our brokers had two listings this week go under contract within 5 days! One property is listed around $400,000 & the other is just under $250,000. We are approaching an average of 700 showings per week & open house traffic is at an all time high. We’re seeing 30+ visitors per open house in many areas in Greenwood Village, Highlands Ranch and Aurora. Our REO brokers are seeing an increase in listings being released by the banks and Fannie Mae. This should provide the much needed inventory below $250,000 for the first time home buyers. Spring has sprung early in the SE market!