DENVERS
DENVERS REAL ESTATE MARKET BROKER 16 RECORDS IN APRIL RELATED TO SALES OF SINGLE
FAMILY HOMES SOLD
AN
AN AVERAGE OF SIX HUNDRED AND TWENTY THOUSAND DOLLARS.
PREVIOUS RECORD WAS MARCH
OF TWENTY TWENTY ONE AT NEARLY
FIVE HUNDRED AND EIGHTY
THOUSAND AS THE HOUSING CRUNCH
CONTINUES TO REACH NEW
TERRITORY AND SHAPES INTO A
BUBBLE THAT IS NOT GOING TO
BURST ANYTIME SOON.
WE LIKE YOU ARE TRYING TO MAKE
SENSE OF THIS MARKET.
I SAT DOWN WITH AN ELITE PANEL
OF REAL ESTATE EXPERTS TO ASK
THEM YOUR QUESTIONS.
THE DENVER HOUSING MARKET IS
SIZZLING HOT AND LEAVING MANY
WOULD BE HOMEOWNERS OUT IN
THE COLD.
IT'S ALMOST LIKE THE LIST PRICE
IS CONSIDERED THE BASE PRICE
NOW IT'S LIKE THE STARTING
AUCTION PRICE AND SO SO LIKE
LIKE MAN SAID, YOU KNOW, IF YOU
CAN AFFORD SIX HUNDRED YOU'RE
STARTING FILE SO THAT YOU CAN
PLAY THE GAME AND YOU CAN BID.
WE GATHERED A GROUP OF REAL
ESTATE EXPERTS TO HELP US MAKE
SENSE OF THE HISTORIC
MILESTONES BEING REACHED IN
THE HEART OF A GLOBAL PANDEMIC
NO LESS.
A LOT OF THE DEMAND COMES FROM
COVID AND THE INCREDIBLE
MIGRATION THAT WE'VE HAD HERE
IN COLORADO FROM OTHER PLACES
WHERE PEOPLE CAN WORK REMOTELY
AND ARE CHOOSING THE LIFESTYLE
IN COLORADO TO LIVE.
THAT'S ABSOLUTELY RIGHT.
THE METRO AREA PRICE INCREASE
THE MEDIAN PRICE INCREASE JUST
THIS LAST YEAR WAS ABOUT
SIXTEEN PERCENT THE PREVIOUS
YEAR FROM NINETEEN TO TWENTY
WAS EIGHT PERCENT.
SO IT'S NOT JUST THE PRICES ARE
INCREASING, IT'S THAT THEY'RE
INCREASING FASTER AS THAT
SUPPLY THAT MIKE MENTIONED
THE PANDEMIC IS ONLY AMPLIFIED
THE HOUSING SHORTAGE.
MORE PEOPLE ARE MOVING TO
COLORADO THAN THOSE MOVING OUT.
SO THE SUPPLY AND DEMAND
BALANCE IS COMPLETELY OUT
OF WHACK AND THOSE FOLKS COMING
IN MILLENNIALS WITH MONEY
DENVERS HAS THE BIGGEST NET
MIGRATION OF MILLENNIAL
RESIDENTS MOVING TO THE CITY
FROM A DIFFERENT STATE IN 2019
RESULTING IN ABOUT 33 PERCENT
DENVERS POPULATION BEING
MILLENNIALS WE HAVE ABOUT ONE
HUNDRED AND EIGHTY THOUSAND
MORE HOUSEHOLDS THAN WE DID TEN
YEARS AGO AND YET WE HAVE
SIXTEEN THOUSAND LESS ACTIVE
HOMES FOR SALE.
WHEN YOU THINK ABOUT THIS NET
MIGRATION POOL OF PEOPLE COMING
IN TO COLORADO INTO DENVER TO
EXPERIENCE WHAT YOU GUYS ARE
TALKING ABOUT, ALL
THE GREATNESS OF DENVER HAS AND
LOOKING FOR A HOME AND THERE'S
MONEY THERE'S MONEY MOVING IN.
I KNOW YOU GUYS ARE SAYING THAT
IT'S UNAFFORDABLE BUT IT'S IT'S
ALL ABOUT PERSPECTIVE.
IT'S IT MIGHT BE UNAFFORDABLE
TO SOMEBODY WHO'S LIVED IN
COLORADO FOR YEARS BUT IT'S
VASTLY MORE AFFORDABLE THAN
SOMEBODY WHO'S MOVING IN FROM
CALIFORNIA OR MOVING IN FROM
THE EAST COAST LIKE BOSTON OR
CHICAGO.
SO HOW CAN YOU COMPETE WITH
HOUSES SELLING FOR THOUSANDS
MORE THAN THEY'RE LISTED?
HOW CAN BUYERS KEEP FROM
GETTING IN OVER THEIR HEADS?
REALLY RUETH THE STARTING POINT
FOR ME NOW IS IS I UNDERSTAND
YOU'RE IN A FOUR FIFTY RANGE.
WE REALLY DO NEED TO BE LOOKING
THREE SEVENTY FIVE TO FOUR
HUNDRED YEAR PRICE RANGE YOU
WANT TO BE IN WE NEED TO START
BACKWARDS.
WE NEED TO KNOW YOU'RE GOING TO
GET TO THAT PRICE.
AND SO WHAT'S INTERESTING IS
I'M SEEING A LOT OF CLIENTS
THAT ARE ACTUALLY GOING FOR
LESS EXPENSIVE HOUSES THAN THEY
ORIGINALLY WERE BECAUSE IT'S
GOING TO GET UP TO THAT PRICE
THAT THEY WANT.
THAT CONVERSATION HAS TO BE HAD
IN THE VERY BEGINNING TO SAY
OK, THIS IS A FIVE HUNDRED
FIFTY THOUSAND DOLLAR HOME THAT
YOU'RE OFFERING SIX HUNDRED
FIFTY.
WHAT DOES IT LOOK LIKE IF THAT
APPRAISAL DOESN'T COME IN AND
YOU HAVE TO COME UP WITH
THE CASH?
THE LACK OF AFFORDABLE HOUSING
IS PRICING LOWER INCOME FOLKS
OUT AND COMPLETELY CHANGING
THE FABRIC OF NEIGHBORHOODS.
IT'S BECOMING AN ISSUE IS
DEFINITELY AN ISSUE WHEN YOU'RE
TALKING ABOUT THE MOST
MARGINALIZED NEIGHBORHOODS AND
INDIVIDUALS OUT THERE IN
THE MARKET IN THE HOUSING
MARKET.
A LOT OF THOSE ARE ACTUALLY
CLIENTS THAT I WORK WITH AND WE
ARE AT A TIME WHERE THE DECLINE
IN THE NUMBER OF BUILDERS THAT
HAVE ACTUALLY BEEN ABLE TO TAKE
ADVANTAGE OF BUILDING AND
THE AMOUNT OF ZONING CHANGES
AND HOW FAST THOSE THINGS ARE
ACTUALLY HAPPENING ARE
AFFECTING OUR MARKET RIGHT NOW
AND THEY'RE AFFECTING THOSE WHO
ARE ACTUALLY FROM CERTAIN AREAS
IN NORTH NORTH NORTHEAST DENVER
IS WHERE MOST TYPICALLY
MINORITY AREA AND THEN YOU HAVE
THOSE NOW THOSE CHILDREN AND
THOSE FOR THE AGING PARENTS
THAT ARE HAVING A HARD TIME
BEING ABLE TO NOW PURCHASE NEAR
BY THEIR PARENTS OR THEIR
FAMILIES.
SO THEY'RE HAVING TO GO FURTHER
AND FURTHER OUT I THINK TO THAT
WE YOU OTHERS IT'S ABSOLUTELY
SOMETHING THAT WE NEED TO
ADDRESS AND I THINK OUR OUR
GOVERNMENTS, OUR CITIES,
COUNTIES, STATE CAN LOOK AT
OPTIONS TO HELP SUPPLY MORE
AFFORDABLE HOUSING.
I DON'T AGREE WITH AFFORDABLE
HOUSING BECAUSE I THINK IT
TRAPS PEOPLE IN AN ASSET CLASS
THAT DOESN'T APPRECIATE BECAUSE
IT'S LOCKED DOWN AND IT DOESN'T
GIVE THOSE PEOPLE WHO NEED
THE ABILITY TO BUILD WEALTH SO
REAL THEY MIGHT BE FIRST
GENERATION BY HOMEBUYERS AND
THEY'RE BUYING INTO SOMETHING
THAT'S LOCKED DOWN AND IT'S NOT
GOING TO ALLOW THEM TO INCREASE
VALUE THE WAY THE WAY THE REST
OF THE HOMEOWNERS ARE
EXPERIENCING AFFORDABLE HOUSING
IS CLEARLY A HOT BUTTON ISSUE
WITH OUR PANEL.
SOME FEEL THE CITY'S CURRENT
AFFORDABLE HOUSING LAWS
PEPPERED WITH HIDDEN
RESTRICTIONS ARE FLAWED.
BUT THE RIGHT CHANGES COULD
CREATE OPPORTUNITIES THAT
CURRENTLY DON'T EXIST LIKE
TWEAKING THE LAW SO FAMILIES
AREN'T LOCKED IN AND UNABLE TO
SELL WITHOUT TAKING A LOSS.
WHEN THEY'RE READY TO MOVE YOU
MOVE TOMROROW IT UP A LITTLE
BIT AS OPPOSED TO MAKE THEM
STAY IN THERE AS LONG AS
SECURITY IS NOW AND GIVE HIM A
LITTLE SHORTER WINDOW WHERE
THEY HAVE TO STAY IN THEIR
HOUSE TO MAKE SURE THEY CAN
MEET ALL THE OTHER STUFF.
SO YOU HAVE YOUR TEACHER D501
GREASEMAN.
ARE YOU PEOPLE IN THOSE
COMMUNITIES THAT CAN STILL TURN
AROUND AND PUT THAT IN PLACE
THEN I THINK THERE'S WAYS WE
CAN DO IT BUT WE CAN'T UNDER
THE CURRENT LAWS IN A SYSTEM
RIGHT NOW A LOT OF THE THINGS
THE ELEMENTS THAT YOU HAVE IN
AFFORDABLE HOUSING PROGRAM IS
WHAT YOU'RE REFERRING TO
ACTUALLY DOES KEEP PEOPLE IN A
CYCLE OF POVERTY.
I AGREE WITH YOU BECAUSE YOU
ACTUALLY ARE REARING THIS IS A
VERY HOT BUTTON FOR ME.
THE AFFORDABLE HOUSING PROGRAM
ITSELF NEEDS TO BE NEEDS TO BE
CHANGED THOSE RESTRICTIONS THAT
ARE ACTUALLY ON THOSE HOMES
THAT ARE ACTUALLY EXCEEDING
RIGHT NOW THE FAMILY IS
ACTUALLY PAYING OFF THOSE
MORTGAGES.
IF THEY KEPT THAT MORTGAGE,
THAT 30 YEAR MORTGAGE FOR
THE DURATION, A LOT OF THEM ARE
STILL NOT ABLE TO ENJOY
THE BENEFITS OF PAYING OFF
THEIR HOME AND BEING A
HOMEOWNER BEYOND THAT 30 YEARS
.
THAT'S A PROBLEM.
THAT'S A BIG PROBLEM.
THE SOARING PRICES AND FRENZIED
PACE OF OUR CURRENT MARKET HAS
MANY WOULD-BE HOMEOWNERS
THINKING ABOUT WAITING TO DOVE
IN TO THE PURCHASING GAME.
A BIG MISTAKE ACCORDING TO OUR
EXPERTS.
I WAS HAVING A CONVERSATION
WITH SOMEBODY ABOUT THIS TODAY.
THEY'RE SAYING WELL I CAN'T
IT'S NOT AFFORDABLE BY AND
I SAID GOSH, BUT THINK ABOUT
WHEN WE'RE SAYING THAT HOUSE IS
ONLY SEVEN HUNDRED THOUSAND.
WHAT A BARGAIN.
A COUPLE OF YEARS FROM NOW
BECAUSE THAT WILL HAPPEN EVERY
DAY THAT YOU WAIT EVERY YEAR
THAT WAY YOU'RE KICKING
YOURSELF BECAUSE THAT HOUSE IS
SO MUCH MORE AND ESPECIALLY
WHEN YOU'RE TALKING ABOUT NEEED
RECORD LOW INTEREST RATES.
I MEAN WE'RE EXPECTING
THE INTEREST RATES TO CLIMB
INTO FOUR PERCENT OVER THE NEXT
YEAR AND FIVE PERCENT IN TWENTY
TWENTY FOUR.
REAL ESTATE IS A LONG GAME AND
IF YOU'RE IN IT FOR THE LONG
HAUL IT WILL CONTINUE TO
DEPRECIATE.
WE ALL KNOW THAT THAT
THE APPRECIATION LEVELS THEY
THEY RISE AND THEY WANE LIKE
STOCK MARKETS IT COMES AND IT
GOES BUT OVER THE LONG HAULS IT
ALWAYS GOES UP ONE HUNDRED
PERCENT OF THE TIME IT ALWAYS
GOES UP SO GETTING INTO
THE GAME AND TAKING ADVANTAGE
OF THAT OPPORTUNITY TO SET
YOURSELF UP IN YOUR FAMILY FOR
FINANCIAL SUCCESS, IT'S ALMOST
LIKE CAN YOU AFFORD NOT TO GET
IN THE GAME?
I MEAN IF YOU'RE OUT THERE ON
THE FENCE AND YOU CAN AFFORD
THE CANAPY I MEAN BECAUSE YOU
WERE PROBABLY THE SAME PERSON
LAST YEAR THAT SAME THE SAME
THING WHEN YOU COULD HAVE HAD
THAT HOUSE FOR LESS THAN WHAT
IT IS NOW.
SO WHO'S TO SAY NEXT YEAR WILL
BE ANOTHER ONE THE MORE YOU SIT
BACK ON THE SIDELINES NOT BEING
IN THE GAME COULD END UP
HURTING EVEN MORE.
SO IF YOU ARE READY TO DOVE IN
LIKE OUR PANEL SUGGEST, NOW IS
THE TIME.
IT'S INTERESTING TO HEAR
I THINK SEASONGAMES VETRAN TALK
ABOUT THAT THE IDEA THAT IF YOU
IF YOU'RE ON CUSP OF IT, YOU
KNOW IS WAITING THE BEST IDEA
AND THEN YOU THINK ABOUT ALL
THE PEOPLE WHO ARE NOT ON
THE CUSP OF HOMEOWNERSHIP WHO
HEAR HIM SAY THAT AND WHO SAY
WHY ISN'T CLOSE A YEAR AGO I'M
NOT CLOSE THIS YEAR AND YOU'RE
TELLING ME I'M GOING FURTHER
AND FURTHER AND FURTHER AWAY IN
THE YEAH, ABSOLUTELY.
SO HISTORICALLY GOT MORE HOMES
ARE LISTED IN THE SUMMERTIME.
PURCHASING TOWARDS THE END
OF SUMMER CAN SOMETIMES ALLOW
BUYERS BETTER SELECTION
OF INVENTORY, MORE HOMES OUT
THERE WHICH MEANS POSSIBLY
POSSIBLY GETTING A BETTER DEAL
.
WELL, YOU CAN WATCH THE ENTIRE
CONVERSATION.
THESE GUYS WERE GREAT.
THESE LOCAL REAL ESTATE EXPERTS
ON OUR STATE OF HOUSING MARKET
ON OUR WEBSITE TEXT THE WORD