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Learning about the real estate market (both locally and nationally) is helpful in evaluating aspects of the U.S. economy, local economies, and to gauge how Denver compares to other metroareas.
Home sales temporarily slowed during the last 4-5 months of 2018. Interest rates rose nearly a point and national home values, which had been rising for four years (since 2012 in Denver), began to soften.
CNN Business ran an article “Fears of Housing Downtown may have been overblown,” stating the housing market was starting strong in 2019. The government shutdown, Brexit, Wall Street volatility and trade issues have kept the lid on long-term bond yields and mortgage rates, as evidenced by the Federal Reserve being patient in raising interest rates.
Local and national economies will experience moderate peaks and valleys but expect homes that are reasonably priced and show well to sell quickly. Sellers trying to squeeze too much out of their value will make noticeable price reductions…months later.
2018 saw prices rises in all 50 states with Nevada, Idaho, Washington and Utah leading the way with year-over-year gains eclipsing 10 percent. NYC, LA, and Aspen were among the elite cities boasting mega property sales world-wide, each having at least three transactions greater than $25 million during the past three years. Projections for the “hottest markets” in 2019 were announced by Zillow (the company that is occasionally or coincidentally correct). Zillow considered home values and rents, job opportunities, unemployment rates, and population growth. Ranking is as follows:
- San Jose 2. Orlando 3. Denver 4. Atlanta . 5. Minneapolis 6. San Francisco 7. Dallas 8. Nashville 9. Jacksonville 10. San Diego
Below is a selected variety of reported information from Zillow providing regional economic comparisons:
|Median Home Value||Avg. Market Rent||Household Income||Population Growth|
Affordability varies by location blended with income potential, job opportunities, weather, quality of life, and many other considerations.
Each and every sale impacts the economy quite significantly according to the National Association of Realtors (NAR). Take for instance a “median” priced home (not “average” which is $500K in Denver). Each sale typically generates 9% of the purchase price including commissions, insurance(s), bank fees, etc. When you add in furniture, remodeling costs, moving, landscaping, inspections and seller fix-up costs, appliances, etc., the total amount averages over $100,000 per house sale for many sectors of the economy.
If your home has not sold, or is new on the market, a good broker has ideas to revive or enhance your home to compete. They may not be expensive but will help homes from becoming “stale” on the market.
- Stage the exterior…people buy the outside first! Paint, landscape, add lighting, clean windows, … First impressions.
- Too much furniture and personal belongings? – Back up the truck and/or rearrange the furniture. Hire an appropriate stager. I’ve even helped sellers with providing fresh flowers and housekeeping help.
- Ask your broker to take you through a couple homes you are competing directly against…visual aids may help you position your home more favorably.
- Marketing – a broker should reposition your listing with the introductory description. For example, busy people put a premium on “move-in condition” or “move-in and just hang artwork”.
- New, “professional” photography! Over 90% of buyers shop first on the internet. If they pass on your house due to “cell phone” pictures – you have lost them.
- Keep it in front of buyers on social media. Make use of video. Use conventional media, which appeals to those in their 40s to 70s. Be everywhere online!
Did you know that before the Web existed people actually managed to buy and sell homes? Do you prefer – high tech or high touch? The answer is absolutely use both.
Many brokers rely way too much on automation and have lost the art of human communication. No matter how much a home may cost; it is expensive for the buyer and very important to the seller. When brokers understand the real needs and interests of our clients, we are better equipped to meet and exceed their expectations or demands. Now we’re talking “Customer Service”.