Artificial Intelligence (AI) has made significant inroads into various industries, and real estate investing is no exception. Here are several ways AI is being utilized in real estate investing: Market Analysis and Predictive Analytics:AI algorithms can analyze large sets of data to identify trends and patterns in real estate markets. Investors can...
Now – December 24th: Camp Christmas
“Make merry and immerse yourself in a 15,000-square-foot, 360-degree kaleidoscope of yuletide cheer at this year’s Camp Christmas! It’s fun, it’s fleeting and just the right amount of camp; it’s everything you love about the holidays wrapped into one sparkling experience.
Despite a challenging market due to higher interest rates, homes continue to change hands. Typically, the Denver Metro experiences our lowest inventory within the last two months of the year. This year, however, end-of-year increased inventory is a welcome shift as we enter the holiday season.
Active listings are up just over 2.5% year-over-year. While this increased inventory is a relief to buyers, we still aren’t close to a balanced market. October closed out the month with active listings sitting at 7,482. For context, the average active listings for October are 14,755. We consider a balanced market one with 4-6 months of inventory. We are currently at 2.5 months of inventory.
Helping first-time homebuyers navigate the complex process of purchasing a home requires a combination of education, support, and guidance. Here are several ways to assist first-time homebuyers: Educate Them About the Process:Provide information about the entire homebuying process, from pre-approval to closing. Explain key terms, such as down payme...
November 11th-19th: Denver Fashion Week Fall 2023
“Denver Fashion Week (DFW) is Colorado’s largest fashion showcase featuring emerging designers, local boutiques, national brands, hairstylists, makeup artists, and models.
Denver’s real estate landscape is witnessing significant shifts amidst a challenging interest rate environment. A 20% decrease in sales in September from the month prior, coupled with a substantial rise in mortgage rates to an average of 8.04% as of 10/25, has marked a period of slowdown and uncertainty.
Despite these hurdles, September showed surprising resilience with an 11.2% increase in Active Listings from August, though housing inventory levels remain well below the 50-year average. Home prices continue to showcase their strength, with single-family homes holding a median price of $640,000 and condos & townhomes at $420,000. However, sellers are experiencing a longer time on the market – now averaging 30 days.
This dynamic is creating a nuanced market with sellers still in a favorable position. Despite this, the rising mortgage rates are having a noticeable impact, with new mortgage application activity plunging to a 28-year low, as reported by the Mortgage Bankers Association. Homebuying affordability is being significantly challenged, with 30-year-fixed-rate mortgages passing the 8% mark, making borrowing increasingly difficult for potential buyers.
Selling a hard-to-sell home can be a challenging endeavor, but with the right strategies and a bit of patience, you can increase your chances of finding a buyer. Here are some tips for selling a difficult property: Price it Right:The most critical factor in selling a challenging property is pricing it correctly. Overpricing a difficult-to-sell home...
Present – October 29th: Corn Maze at Chatfield Farms
“Get lost in our 7-acre Corn Maze at Chatfield Farms. It’s time to “seas” the day as you dive in to explore our seven-acre corn maze. The maze can be viewed from a 15-foot-tall bridge. Visitors under the age of 10 can explore the corn mini-maze.” Tickets & More Info!
In a departure from the typical August lull, the metro Denver market showed an 8% month-over-month surge in New Listings since July. That’s a shocking increase since historically we would never expect activity to speed up moving from summer into fall.
It’s too early to tell if this is an ongoing trend or just a blip, but Your Castle Founder Lon Welsh thinks it may be due to a recent rise in seller sentiment. Potentially, sellers have given up on waiting for rates to go down this year, and rate hikes have convinced some to cave into the pressure of life events that usually make people move (having kids, getting divorced, upsizing, downsizing, a death in the family, etc.) However, it’s still too early to tell why more new listings were added in August.
Despite fluctuating rates, which reached a peak of 7.5% in mid-August, the market seems to be holding steady. Homes are selling right at the asking price, as opposed to at a premium. With a mere 2 Months of Inventory (MOI), the market still leans in sellers’ favor, but the new listings give a glimmer of hope to buyers.
Using AI-generated images in real estate can be a valuable tool to enhance property listings and marketing materials. AI-generated images, often created through a process called generative adversarial networks (GANs), can help visualize properties more effectively. Here's how AI-generated images can be used in real estate: Virtual Staging: AI can d...
The Metro Denver real estate market remained slower in July, with an 18.5% decrease in sales. The number of Active Listings for sale also saw a notable decline of 14% as compared to last July. This decrease in activity can be attributed to the reduced attractiveness of moving for homeowners who locked in mortgage rates around 3% in 2020-2022. A recent Zillow® survey showed that homeowners with mortgages over 5% are twice as likely to consider selling within the next three years as those with rates under 5%.
Average prices demonstrated a modest
August 11th– 20th: Western Welcome Week
“Western Welcome Week started as a Homecoming event for the citizens of Littleton, Colorado. Now, it has grown to a multi-day celebration of the town, complete with parades, competitions, food, vendors, and plenty of other summery festival fun for the whole family! Join the Littleton locals as they celebrate 95 years of “Community and Friendship” through their Western Welcome Week. The 95th annual Western Welcome Week will be held from Friday to Sunday, August 11th to 2oth, 2023 in Littleton! There will be art exhibits, BBQ parties, book sales, children’s fishing derby, a live trivia challenge, cake contest, pottery class, flower and car show, swing dance, pig roast, jazz festival, western dance party, and outdoor concerts. The festival also aims to raise funds to help various organizations around Littleton.” More Info!
LOCAL MARKET UPDATE
The Denver real estate market in June continues to show resilience amidst ongoing challenges. Compared to the previous year, prices remained stable with a slight 0.3% dip. However, compared to May, prices rose by 2.5%. Normally spring is busy in residential real estate, and summer tapers off a bit. This year, spring was a bit slower, and now summer is a bit more active. In June, active listings rose to 6,070, reflecting a 16% increase from May. Condos performed impressively, with a 22% improvement in the listing count, while detached listings saw a 6% drop. The low level of sales volume we experienced in the first half of the year will likely continue until the end of the year.
As we move forward the market may face further challenges, like a mild recession, and it’s crucial to monitor the potential impact of mortgage rate fluctuations on your move. With mortgage rates remaining relatively high, buyer activity might experience a further slowdown. However, Denver’s market is expected to maintain a delicate balance of supply and demand throughout the year, with prices remaining stable within a range of +/- 3%.
(Info Source: June 2023 DMAR Market Report, Lon Welsh, CEO of Your Castle Real Estate)
The Fair Housing Act is enforced by several entities to ensure compliance and address instances of housing discrimination. Here are some key points regarding the enforcement of the Fair Housing Act: U.S. Department of Housing and Urban Development (HUD): HUD is the primary federal agency responsible for enforcing the Fair Housing Act. It investigat...
Under the Fair Housing Act, there are seven protected classes that are safeguarded against discrimination in housing. These protected classes include: Race: Discrimination based on a person's race, which refers to their physical characteristics, such as skin color, hair texture, and facial features, is strictly prohibited.Color: Discrimination base...
Under the Fair Housing Act, several practices are specifically prohibited to prevent housing discrimination. These practices include: Refusing to Rent or Sell: It is unlawful to refuse to rent or sell a dwelling to an individual based on their race, color, religion, sex, national origin, familial status, or disability.Setting Different Terms or Con...
Under the Fair Housing Act, housing providers are required to make reasonable accommodations and allow reasonable modifications for individuals with disabilities. Here's what you need to know about reasonable accommodations and modifications: Reasonable Accommodations: A reasonable accommodation is a change, exception, or adjustment to a housing pr...
The May Denver real estate market showed a 2% decrease in prices compared to last year. Many sellers are hesitant to list their homes due to their incredibly low mortgage rates, resulting in limited supply. The number of sales saw a significant drop of 29% compared to May 2022, partly due to discussions surrounding the debt ceiling, which caused mortgage rates to increase (more risk in the market) and slowed buyer activity. This slowed demand, coupled with limited supply, kept prices mostly stable. Mortgage applications in May remained at around 10-year lows.
The average Days on Market (DOM) increased by 144% from last May. Although that sounds dramatic, it really amounts to going from 9 days on the market last May to 22 days now, so, it’s just taking an extra couple of extra weeks to sell a home. Active listings surged by 43% from the previous year, with 5,228 available. However, this is not as much inventory as we need to balance the market, or even tip it in buyers’ favor. For your reference, May has historically seen around 14,900 listings on average! The number of properties under contract decreased by 23% compared to the previous year, which signals that June will also be slower than is typical. Buyers typically had to offer a 0.5% price premium, a significant decrease from the 5.25% average premium seen at this time last year. Notably, 60% of sellers had to provide concessions to close deals, with rate buydowns being a significant factor. The market is expected to maintain a delicate balance of supply and demand throughout the year. Prices overall should be in the range of +/- 3%
(Info Source: DMAR (The Denver Metro Association of Realtors, Your Castle Real Estate Analysis)
