As Yogi Berra has said, it's Deja Vu all over again regarding our Real Estate Market and variables. Colorado, and significantly for us in Denver Metro and our northern communities, continues to recognize rapid population growth and demand to live and work in these regions and the Front Range. In 2017, despite consumers encountering several economic variables that have historically proven to affect market trends-the recent presidential election and rising interest rates- Colorado's real estate market remained strong, showing increases in sales and pricing values throughout Denver Metro, Boulder, and Front Range.
MAKING YOUR REAL ESTATE GOALS A REALITY
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Kevin Chard New Certification
Congratulations to our own Kevin Chard on earning his National Association of REALTORS Pricing Strategy Advisor (PSA) Certification! Determining property values depends more than ever on professional expertise and competence, the best use of technology, and approaching the pricing assignment from various perspectives. Being PSA certified further enhances and reinforces Kevin's already impressive skills in pricing properties, creating Comparative Market Analyses reports (CMA's), working with appraisers, and guiding clients through the anxieties and misconceptions they often may have about home values.
Kevin works diligently throughout the year to constantly improve himself professionally, he's always looking for ways to provide exceptional value to his clients and partners. Targeting and earning specific certifications that assist his clients, further differentiates him as a dedicated professional and a State of Colorado top producer in Real Estate. His previous certifications are as follows:
- CNE: Certified Negotiation Expert - This designation is awarded by the Real Estate Negotiation Institute (RENI). An agent who carries the CNE (Certified Negotiation Expert) designation has been trained in professional negotiation skills by Negotiation Expertise, LLC, the leading negotiation training and coaching company for real estate professionals in North America. A CNE professional knows how to use leading edge negotiation practices and techniques for your benefit will be able to handle your real estate negotiations with skill and excellence.
- ABR: Accredited Buyer Representative - This designation is awarded by the Real Estate Buyer's Agent Council (REBAC). It denotes a Sales Associate who is qualified to provide buyer representation and is familiar with buyer brokerage and buyer agency issues. Earning the ABR requires attending a 12 hour course with a minimum passing final exam grade of 80%, active membership in REBAC, at least five documented transactions during the previous 18th month period where the Sales Associate acted as a buyer's representative, and the completion of an additional 8 hour elective course with a minimum passing grade of 80%.
OWNERS / INVESTORS / SELLERS
As Yogi Berra has said, it's Deja Vu all over again regarding our Real Estate Market and variables. Colorado, and significantly for us in Denver Metro and our northern communities, continues to recognize rapid population growth and demand to live and work in these regions and the Front Range. In 2017, despite consumers encountering several economic variables that have historically proven to affect market trends-the recent presidential election and rising interest rates- Colorado's real estate marker remained strong, showing increases in sales and pricing values throughout Denver Metro, Boulder, and Front Range. Colorado's economy continues to show robustness and growth. There is no single industry that is driving our economic engine which reduces any "bubble" speculation or possibility (i.e. the energy sector in the Dakota's for instance). Naturally a strong economy attracts people, especially when coupled with everything else Colorado has to offer. Hence continued strong demand for housing being driven strictly by high demand and low inventory.
Single Family Homes have historically always been in greater supply over Condo's/Townhomes. The above chart and graph provides great visual and numerical perspective on the seasonality of our market when variable properties are placed on the market and historically what their inventory position has been. We've been in a very strong Seller's Market for some time as we've experienced record lows of inventory coupled with high demand for property. As of now the chart shows us that Single Family Home inventory is starting it's seasonal ebb, while Condo/Townhome inventory is continuing to climb. A "Healthy Market" will have 5-6 months of supply. Anything less and we're in a "Seller's Market", anything more and we're in a "Buyers Market". Our chart notes were a little under 2 months for Single Family Homes and Condo's/Townhomes, so we're still in a strong Seller's Market; although over the last few months we're starting to show strength in year over year inventory increases, which is positive.
So, what does all of this mean to you, the owner? We'll likely continue our trend of slowly building out and increasing our inventory position while retaining our Seller's Market with strong demand for properties. Market pricing for selling and renting property will also remain strong with continued expectation of appreciation in real estate throughout the year and short term. The above chart notes our healthy Median Sales Price increase year over year that supports that appreciation trend. We also have more New Listings, Pending-Under Contract, and Sold Listings year over year, which help support our increasing appreciation rate as well since more properties are exchanging hands across all sectors of the real estate market.
If you're interested in establishing your home's market value or thinking about selling, let us know and Kevin Chard will provide you with a Comparative Market Analysis (CMA) and Estimated Net Seller's Sheet for your review and reference. When you decide to move forward with Kevin in selling your home, he'll work with you on recommendations to make your property more appealing to a buyer. He'll introduce and manage vendor relationships, proposed projects and quotes, project manage owner authorized projects, and facilitate all invoicing to work completion as part of his sales process with you.
So, for 2018 we expect a repeat of activity from 2017. Strong Seller's Market, still historically low lending rates (making it beneficial for buyers to seek new homes, although rates are slowly increasing), continued net positive influx of people moving into Colorado, high demand for Buyers to purchase homes, and our local economy continuing to outperform the unemployment national average. 2018 looks to be another great year to either:
- Add to your existing investment inventory
- Maximize your Return on Investment by selling your property, or
- Refresh your inventory portfolio by selling off/1031 Exchanging older properties or properties that are fully depreciated; and re-invest those proceeds into newer properties that feature less potential maintenance expectations and newer architectural look/feel over antiquated inventory.
If you'd like to consult with Kevin about your property or review your real estate scenario and strategy, please be sure to reach out to him on his cell 303-931-9468 or via email at kevin@phoenixrealtyinc.com so he can schedule time to consult with you. Additional information regarding selling property may be found on our Real Estate website here.