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A Little Remodeling Or Furniture Update May Be In Order Home organization can be difficult, but there are things you can do which are simple, and make getting your home in order a lot less strenuous. First, consider the furniture paradigm you’ve got. Do you have proper storage throughout your house? How are things looking in the basement? How are things looking in the living areas, bedrooms, bathrooms, and kitchen? If you’ve got existing storage, is it adequate for your needs? Sometimes home organization has less to do with available storage, and more to do with how that storage is used. However, there are often situations where the problem lies in the storage options available. Buying New Storage Solutions When you’ve taken stock of all home areas and come to the conclusion you need more, one of your best moves in terms of an organization is to simply acquire that new furniture. This is easier to say than to do. Furniture can be expensive, oftentimes it isn’t built with your specific home in mind. This means you need to conduct a careful search to find the right options. You’re not only looking at storage capacity, you’re looking at coloration, materials, installation, shipping, and overall size. Sometimes what you want to do is find furniture that has a vertical construction behind it, sometimes you want to build out, or find some option that’s very wide and deep. The RTA Cabinetry Angle Additionally, it depends on the specific storage needs you determine after you’ve carefully examined what’s available. What is most ideal is finding furniture options that can be designed to match your specific needs. Along that line of reasoning, there are some considerable options in the areas of RTA cabinetry. RTA stands for “Ready To Assemble”. Essentially, these sorts of cabinets are designed to be shipped and assembled on your property. There is a similarity to “Ikea”, but the difference lies in the overall design. With RTA options, you can determine the exact specifications of your cabinetry before payment. So you’ll have a greater likelihood of an exact match for your needs. There are several different RTA options available, and from the right providers, you can get a combination of RTA cabinetry and traditional cabinetry. White shaker cabinets are well-known for their stylistic efficiency and storage capacity. As an example, take a look at this product at Best Online Cabinets, a business that additionally provides RTA options. Getting Rid Of The Things You Don’t Really Need Something else that makes space for storage maximization is the elimination of unnecessary clutter. Over time, everybody accumulates possessions that are either out of style, out of value, out of use, or broken beyond functionality. This furniture, appliance, entertainment, and artistic things build up over time and take away space from your home. Every year or so, you should spend a week going through your house from top to bottom, identifying the clutter, and either donating it, trashing it, or organizing it for a garage sale when the weather is amenable to such an undertaking. Certainly, you could throw everything in the garage or attic, but that just eliminates such spaces from use even while debris gathers dust. Vertical Storage Options Provide A Lot Of Space Another good strategy here is to store “vertically”. This was briefly touched on earlier, here’s the idea: most cabinets and storage options tend to be either waist-high or stretch down from the ceiling. However, a wardrobe can be floor-to-ceiling, take up approximately the same space, and have two to three times the available storage potential. Have You Considered Rearranging The Furniture? Beyond cleaning house, utilizing better cabinetry storage options, and incorporating vertical solutions, another thing you can do is rearrange the furniture. Sometimes you’re having storage issues owing to a poor layout in varying rooms of your home. “Flush” furniture makes more space available than “diagonal” furniture—for most situations. Consciously Downsizing Your Home In Terms Of Possessions It’s also considerable that beyond getting rid of things you no longer use, you might consciously downsize. Oftentimes there are possessions people cling to dearly which ultimately aren’t serving much of a purpose outside sentimental value. That’s certainly a very real and valuable thing. However, if things are very cluttered, it’s something “expendable”. How many people live in your home, and how often do you host gatherings? If you’ve got a house of five in a home with a basement, main level, bedroom level, and attic, why do you need fifty chairs and fifteen couches? Some of those may not have been used for years—especially when furniture rotation banishes a sofa to the basement, where dust and spiders predominate. Incorporating Multiple Strategies So downsize, eliminate clutter, get new cabinets, reorganize furniture, and try to find vertical storage options that provide greater storage capacity for the same footprint as regards available space. Storage strategies of this kind can facilitate more harmonious living arrangements that maximize your use of possessions without tending toward clutter.

Here are some fun things going on in Denver this month! September 8th– 27th: Colorado Rockies Games “At this time, fans will not be allowed inside MLB parks for games, as COVID-19 continues to hamper live sporting events for spectators across the country. All games will be broadcast on AT&T Sportsnet.” Schedule! — September 10th– 20th: Film on the Rocks – Drive In With news that Red Rocks will be closed to the public later this month, don’t miss your chance to experience a favorite Colorado events venue in a new way. “A cinematic summer celebration at Colorado’s most iconic landmark (but make it a Drive-In). For 20 years, Film on the Rocks has brought together outstanding local bands and comedians, everyone’s favorite films, and enthusiastic audiences in the most affordable program hosted at Red Rocks Park & Amphitheatre. This year we are turning the summer favorite into a Drive-In movie theater!” Schedule & More Info! — September 14th: Denver Broncos v. Tennessee Titans The Broncos season opener will be the second game of the double header for the NFL’s first Monday night game of the 2020-21 season. You can watch the game live on ESPN September 14that 8:20pm MT.   — September 14thto 18th: Denver Startup Week (Virtual) “Denver Startup Week, founded in 2012, is a celebration of everything entrepreneurial in Denver. The weeklong event is intended to unite the entrepreneurial community in Denver and celebrate the great companies, innovation and ideas happening in the city and the people and inspiration behind them. The core programming is centered on the entrepreneurial community with an emphasis in technology, design, social entrepreneurship, manufacturing and business. Events throughout the week are organized by both the Denver Startup Week Organizing Committee and the community at-large and include sessions, presentations, panels, workshops, happy hours, social events, job fairs and more.” Registration & More Info! — September 15th– October 15th: National Hispanic Heritage Month “Each year, Americans observe National Hispanic Heritage Month from September 15 to October 15, by celebrating the histories, cultures and contributions of American citizens whose ancestors came from Spain, Mexico, the Caribbean and Central and South America. The observation started in 1968 as Hispanic Heritage Week under President Lyndon Johnson and was expanded by President Ronald Reagan in 1988 to cover a 30-day period starting on September 15 and ending on October 15. It was enacted into law on August 17, 1988, on the approval of Public Law 100-402. The day of September 15 is significant because it is the anniversary of independence for Latin American countries Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua. In addition, Mexico and Chile celebrate their independence days on September 16 and September18, respectively.” Ways to Celebrate! — September 24th– October 4th: Mile High Horror Film Festival (Virtual)                                                                                                                         “The Mile High Horror Film Festival (MHHFF) 2020 will launch virtually September 24th – October 4th! It will feature over 80 of the best horror, thriller and sci-fi films from around the world along with Q&A’s with filmmakers and special guests. Most films included in the festival are new films, giving fans a chance to see them before they are released to the general public.The co-writer/director of THE BLAIR WITCH PROJECT, Dan Myrick is the 2020 special guest judge of the feature film category.The festival has been extended 10 days in order to give fans more of a chance to stream everything.Scream Passes are now available for $75.” Tickets & More Info! *At the time of writing, this information is accurate. Due to the nature of the pandemic, changes and cancellations may occur. Please check the official event’s websites to confirm any details before attending or watching.   — Have fun and stay safe out there!

Market Recovery and a Return to Seasonal Trends The speed of the real estate market recovery is beginning to show signs of our normal seasonal slow down. In June and July, we collectively recaptured a good portion of listings not brought to the market due to the pandemic recession. Traffic reached higher levels than back in the summer of 2019 as people tried to make up for lost time in the spring. Now the numbers of newly added homes are slightly lower than this time last year. Even so, much has changed since last year.  One of the most glaring differences from 2019 to 2020 is even scarcer housing inventory. Some in the media are reporting this as an inexplicable 10% increase in the average home price in Denver since last year, despite the pandemic and high unemployment. However, that distorted average is most likely due to the mix of what is currently on the market.Since there are so few entry-level homes available, the average is being skewed closer to the higher price points. It is not that there is an excess of high-priced homes available, but rather a shortage of lower priced homes. Don’t be surprised if the media makes it seem like the sky is falling when the trend reverses – prices may “drop” in early 2021. It’s most likely not that the value of homes will go down dramatically, it’s that many sellers who opted out of selling lower priced homes in 2020 due to financial concerns will do so nextyear instead. We expect that by spring of next year many of the “missing listings” will be brought to the market. Buyers Even Tighter Inventory and a Flight to the Suburbs?There is currently close to one month of housing inventory available. This means that if no new listings were added, and the rate at which homes sold was constant based on the average of the last 12 months of sales, it would take only one month to run out of available inventory. For example, during this time in 2019 the M.O.I. was closer to two months, which is also low and makes for a strong sellers’ market. The demand for homes, especially entry level homes between $0-$500K, is very high due to a housing shortage exacerbated by the pandemic. So, is there a bright side of all of this? Thankfully, yes. Those that do secure a new home during this period are locking in record low interest rates. Lower interest rates can equate to a lower monthly payment and/or more purchasing power. Another positive note is that building permits are up, as developers are planning to cash in on the high demand for homes. Eventually these new permits will make up for some of the low inventory, although the process to build brand new housing can be very lengthy depending on the bureaucratic red tape in any given county. It may be more of a long-term solution than a silver bullet for our housing shortage.  Another recent phenomenon is being called a “Flight to the Suburbs” or an “Urban Exodus”. It is still too early to say if this is a long-term trend or a shorter-term effect of the pandemic, but millennials that had previously wanted to move to downtown areas for proximity to more jobs, night life, and other amenities are now buying further out in the suburbs. The current rationale is that people are working from home more than ever, so they are looking for properties with room for a home office, more living space, and a larger yard to relax in. Not to mention, they may no longer have to worry about a commute. Sellers Waiting Out the Market or Capitalizing on the Current Market?Although many sellers gave up selling their homes this spring because of the pandemic, those that are selling right now are in a prime position to cash out their equity and trade up into larger homes. Between historically low interest rates and a high demand for homes, all the drivers are in the seller’s favor. It is still a strong sellers’ market and should continue to remain so for the foreseeable future. Act now to take advantage of the current conditions before interest rates shift again.  Lending Mortgage Applications Remain at Record Highs New mortgage applications and refinances have skyrocketed. That said, there is a reason people are scrambling to get new home loans and refinance. The interest rates are at historic lows, and as a local lender shrewdly commented, “At this point there is more room for the rates to go up than go down.” These low rates are expected to jump up by at least half a percentage point after the presidential election, regardless of who wins, as this is the norm for any election year. If trading-up was ever a part of your future plans, and the finances are available, the time to do so is now – these near-zero rates will not last forever. As always, feel free to reach out to us with any questions.

With as hot as the real estate market in Colorado has been in recent years, it may not seem like you have to do much to see your property value go up besides sit and wait. After all, there have been some properties in Northern Colorado appraised at $100,000 more than what they were just five years ago, and with 20% projected growth in some areas by 2025, there appears to be no shortage of demand in this booming region. However, no matter how hot, the real estate market will always be competitive, so if you are looking into renovations that will make your property stand out and command a premium price on the market, consider some of the following projects. 1. Replace the Siding Quality home siding should provide a number of important benefits to your house, from protecting it from air and moisture to offering an aesthetically-pleasing aspect that enhances curb appeal.  As Colorado faces arguably a larger array of nature’s elements than any state in the country, such as bright sun, heavy snow, and intense winds, nowhere will your siding get put to the test harder than in the Centennial State. While traditional house siding, such as brick and wooden planks, must be treated with regularity in order for it to retain its pleasing appearance and protective properties, more innovative options, like fiber cement and steel log, maintain their integrity for many years with very little maintenance required by the homeowner. In addition, these modern siding options come in a variety of designs and colors, making them the perfect choice to pair with creative exterior door trim ideas to maximum curb appeal and hold a prominent place in the mind of buyers. 2. Give the Kitchen a Faclift Kitchen renovations are some of the most exciting, and potentially profitable, home remodeling projects. After all, nowhere are good feelings and quality communication shared quite like at the dinner table, so anytime a kitchen renovation is mentioned, the creative wheels get spinning in the minds of homeowners. However, not all kitchen remodels are created equal. For example, if you try an overly elaborate remodel that effectively leads to “too much kitchen,” you can have difficulty recouping investment dollars. Furthermore, large-scale remodels can sometimes leave your kitchen inaccessible for months at a time, creating a terrible inconvenience and leading to secondary costs of having to eat out all of the time. Therefore, if you are looking to be assured of a simple project that will lead to a solid increase in value to your property, look no further than adding quartz surfaces to your kitchen. Not only are they among the most durable countertops on the market, but quartz is nonporous, meaning that cleaning is as easy as a wipe of the rag. With most installations being possible in three days or less, high-quality quartz surfaces will be a major asset to buyers who want a classy appearance with little future investment required for cleaning, maintenance, and replacement.  3. Include Aging in Place Features While Colorado may have a younger than average population, the continued migration of the Baby Boom generation to retirement could see an increase in demand for houses equipped with aging in place features. Very simply, aging in place features allow residents to enjoy full comfort and functionality of their home as they move through their retirement years. Some renovation ideas that will appeal to this market and lead to increases in your property value include: Shower seats and removable showerheads to increase comfort while cleaning Custom handrails in the bathroom and kitchen to aid in crouching and rising Shallow kitchen sinks to limit reaching and lifting of heavy cookware 4. Add Solar Panels Society, in general, is becoming more aware of living a sustainable lifestyle, with Coloradans being some of the leaders in this regard. Therefore, any renovations that can make your home more energy efficient are highly desirable to a forward thinking clientele. While solar panels are a great way of powering your home with renewable energy, some other eco-friendly ideas include: Installing large windows to allow for the flow of natural light Choosing energy-efficient appliances for the kitchen Using polyiso roof insulation to regulate interior temperature 5. Put in a New Driveway The Colorado snow commonly melts into porous concrete driveways, only to freeze and cause cracks that form a haven for weeds to spring out of in the summertime. Instead of concrete, a better alternative for Colorado driveways may be gravel held in place with innovative permeable paver grids. These grids allow for optimal drainage of melting snow and keep the gravel evenly dispersed in the face of traffic, making for much greater curb appeal than an old and cracked concrete driveway. Conclusion Although there is no denying that the Colorado real estate market has been hot in recent years, trendy remodeling projects are necessary to ensure that your home can maximize its value on the market. Modern concepts such as classy, low-maintenance siding; durable, nonporous countertops; and features to accommodate an aging market are just a few of the ideas that can help your home appeal to a wide range of buyers and command top dollar. Thanks to Matt Lee for his input on this piece. He is the owner of the Innovative Building Materials blog and a content writer for the building materials industry. He is focused on helping fellow homeowners, contractors, and architects discover materials and methods of construction that save money, improve energy efficiency, and increase property value. 

THE LOST CONTRACTS, A RELATIVE RECOVERY There is no denying the pandemic shutdown resulted in many lost home sales. Some sellers and buyers scrapped their plans altogether, while others put them on hold. Can these “lost” home sales be found again? The strength of the recovery will largely depend on price point. Despite a quick rebound in traffic once showings resumed, the Denver metro sold count was down around 24% year-over-year between March and June. For this same period, there were 4,820 fewer closings than in 2019. One encouraging detail is that more contracts have been written since showings resumed than had been written in the same timeframe last year. This suggests the market will recover at least some of the lost sales from the spring as these contracts finalize. The recovered home sales have not affected each price point proportionately. Of the new contracts aforementioned, around 49% of them fall into the $0-300K and $300-500K price segments, despite these segments having together made up around 67% of the overall market share back in 2019. ENTRY LEVEL HOMES — TOUGH TIMES AND LOW INVENTORY Inventory is still at historic lows relative to the past 40 years. Developers have not been as active in 2020. Strong demand for affordable housing has not gone anywhere. Further compounding these issues, every level of government is bound to have budget shortfalls due to COVID, which may set back affordable housing measures. For entry-level buyers lucky enough to have held their current jobs through the crisis, it is highly competitive. By choosing a great agent, acting quickly, writing strong offers, and giving sellers plenty of leeway, there are still homes to be found if you can be patient. MID-RANGE HOMES — HOMES PRICED $500-900K LEAD THE RECOVERY The $500-900K price point is leading the recovery of the local real estate market. This price segment managed to recover better than any other, with around 43% of the recovered contracts falling into this price point despite making up only 27% of the overall market share back in 2019. This trend is largely driven by a continuing surge of demand for lower-priced homes that are lacking inventory, coupled with a greater variety of higher-priced inventory. Many trade-up buyers are cashing in on the equity they have been sitting on and using it to trade-up to larger and more expensive homes. For many trade-up buyers, recent events have been advantageous to their home buying goals. The record low-interest rates are providing them significantly more buying power! LUXURY HOMES — THEY ARE JUST THAT, A LUXURY Homes from $900K and up have been slower to recover than the lower price segments. These homes tend to sit on the market longer since there is a smaller customer base that can afford them. During recession years, any luxury product tends to suffer since everyone tightens their belts. The bottom line is that people do not need to move into a $900K+ home… they want to. Considering recent uncertainty in the stock market and a typically more volatile market during election years, many of these buyers are content to wait out the pandemic until things are calmer.  Feel free to come talk to us if you need any assistance navigating this unprecedented real estate market.

PENT UP DEMAND LEADS TO A FAST RECOVERY Post-Coronavirus shutdown, people looking to move in March and April have since returned to the market in full force. Recent trends data shows a strong V-shaped recovery since showing restrictions have eased. Property showings and under contract listings have even recovered to levels above this time last year. The number of closings should soon follow, as listings generally take about four weeks to close once under contract. Based on the current data, the spring selling season has just shifted a few months forward into the summer, albeit a slightly weaker summer than in recent years. This sudden influx of real estate traffic is a strong sign of the continued strength of the local real estate market. The local government has indicated that property showings can continue if real estate professionals adhere to strict safety measures. Some of these safety measures include wearing masks and gloves during showings, not carpooling to properties, and disinfecting homes in between each showing. BUYERS Looking to buy in the current market? One positive note is that interest rates are still at historic lows. If you lock in a low rate on your purchase it goes a long way towards the long-term affordability of your investment. The Fed plans to keep rates low as long as they feel the economy needs propping up. Given the spike in unemployment during the pandemic (although making a positive recovery in recent news) and the heavy blows to industries like hospitality and tourism, these rates will most likely remain this low for the near future. When shopping for a home in the Denver metro today, your odds at success could depend heavily on your budget – and your patience level. In the lower price points (0-$500K) you can expect continued competition and multiple buyer situations, e.g., bidding wars. However, if you can stick it out through multiple rounds of offers there are still great homes out there. If you are a trade-up buyer looking to move to a larger home, this could be a golden opportunity. The large inventory of higher-priced homes coupled with the strong demand for lower-priced homes makes for a perfect chance to trade-up. SELLERS The pandemic affected all of us, but there is something it didn’t change – this is still a strong seller’s market. Despite all the virus-related pandemonium, low housing inventory continues to keep home prices high. However, the pandemic did further slow new home construction. Although construction was still considered an essential service during the shutdown, builders and investors slowed way down on new home starts. What does that mean for you? It means this is a still great time to sell a home in the Denver metro. As long as housing inventory stays low and demand remains high, you can expect to do well in most selling situations. Be sure to talk with your agent to price your home correctly from the onset, as that is a major factor in selling your home quickly and for the most money. INVESTORS At Your Castle, we pride ourselves on our local market research. We recently updated our Gross Rent Multiplier Maps, called GRM Maps. This data shows which neighborhoods are the most appealing for investors. The lower the GRM, the better cash flow for your rental property (usually.) We pulled rent estimates for Denver metro neighborhoods for 1, 2, 3 and 4 bedroom properties and created a map for each. These maps show the typical rent range for the neighborhood. To pull the raw data we used Rentometer, which is a great rental comparison tool. Curious to learn more? Reach out to us today!We can help you go over your best options for buying and/or selling in our current real estate market.

Great news! We have been recognized as the number one producing team in Colorado again by REAL Trends in both categories of sales volume and transaction sides. This award is a credit to our hard-working agents who consistently get it done for their clients. This was also a banner year as nationally, we ranked 40th in sales volume and 43rd overall in transaction sides. This prestigious national ranking, conducted annually by REAL Trends, puts New Era Group in the top one percent of the more than 1.4 million REALTORS® nationwide. Consistent Results for Our Clients A big thank you also goes out to our clients who put their trust in us this last year. We know what a big decision buying or selling a home is and believe that every successful real estate deal is proof of the hard work we put in for our clients. We understand that buying and selling a home is not just a transaction but a significant personal and financial event in each of our client’s lives. We are Stronger Together What sets us apart is our community of agents that support each other so that when a client hires one of us, they effectively get the collective expertise of all of us. “With the number of different situations that can transpire in a real estate transaction, being able to tap into the large pool of experience and knowledge in the team is truly invaluable,” commented John Stegner, New Era Group owner. How Do these Rankings Work? REAL Trends looks at the top real estate teams and individuals in the country and ranks them according to the number of deals and sales volume they close. Then, in partnership with The Wall Street Journal, they publish this into a list that they call “The Thousand”. So, to be ranked #40 and #43 in the nation is something we are very proud of. And we could not have done it without our great clients we’ve worked with this last year so we share this award with all of you. We also share this award with our awesome brokerage, Your Castle Real Estate. Your Castle was recognized by Real Trends this year as the largest independent brokerage in Colorado. The resources Your Castle brings to the table are invaluable for our team. Steve Murray, president of REAL Trends, which compiled the list added, “The best individual agents and teams — including the New Era Group — continue to produce impressive sales, which is really top-notch considering the competition in the real estate market.” We are Here for You! We are proud to be your Realtor so feel free to contact us if you need any assistance. Thank you! Sincerely, The New Era Group @ Your Castle Real Estate

Just as we approached our spring peak selling season, the virus struck and completely disrupted the economy in an unprecedented way. The stock market tumbled, people were forced to stay home to avoid exposure, and unemployment spiked to record highs. As real estate agents, we went from preparing for our busiest showing time of the year to being cloistered at home, trying to navigate our businesses to a fully virtual format while coping with ever-changing updates from state officials. Although it is impossible to say what the full effect of the pandemic will be on real estate since it is ongoing, we are gingerly optimistic based on a few key details, below. Stay-at-Home Moves to Safer-at-Home Much caution is warranted since there is still an active pandemic, but one reason for our optimism is the progress made recently to kick start our local economy. Colorado moved from the “Stay-at-Home Order” to the “Safer-at-Home Order” as of April 27th. The order was later amended as recently as May 8th. This allowed many businesses to reopen that were previously shuttered and more workers to return to their jobs. The influx of workers has already begun to ease record unemployment applications. Hopefully, this will bolster the start of a recovery to local Consumer Confidence as people have more income and more options for what to do with their time.     Showings Make a Strong Comeback It is still far from business as usual for the real estate industry, but showing restrictions have begun to ease in many counties. Denver County is one of many areas currently allowing property showings if they conform to strict safety restrictions. Some of these showing restrictions include disinfecting homes in between each showing, requirements to wear masks, gloves, and shoe booties, and adhering to the 6 ft. social distancing guidelines as outlined by the CDC. Open houses are still off-limits, but many have turned to virtual open houses or virtual showings to safely build engagement with prospective buyers. We expected showings to recover quite dramatically sometime during the Summer or early Fall due to pent up demand, but almost the moment the showing restrictions lifted, showing traffic exploded. At least in terms of local real estate, this is a strong indicator of what economists refer to as a “V” shaped recovery, where the economy dips quickly into a trough and then shoots back up nearly as fast into a recovery. You can see a strong “V” pattern emerging in the following trends graphs. Below are more details broken down by price point: Homes Under $300K Showings have returned to last year’s rates! New listings doubled from numbers seen over the last few weeks. The number of under contract homes more than doubled, bringing it closer to last year’s levels. Homes $300K-$500K Showings are above last year’s rates. New listings are up 2.5x from the last few weeks and there are plenty of homes to look at! The number of under contract homes more than doubled and is getting close to last year’s run rate. Homes $500K-$900K Showings are above last year’s rates and tripled overnight!!! New listings also tripled from the last few weeks and there are plenty of homes to look at. The under contact count more than doubled, getting close to last year’s run rate. Homes $900K and Over Showings are up 70% from a lackluster performance last month. They are still below last year but improving. New listings about tripled from the last few weeks! There are many homes to look at. The under contract count more than doubled but is still below last year’s run rate.       Low Inventory and Interest Rates One more key factor in our optimism about the real estate market is the low housing inventory. Despite the unprecedented health crisis, it is still a seller’s market. New construction has been anemic for years. Without enough new supply, active inventory is being driven down by strong demand, continuing to keep home prices strong until more supply can be added to the market. Given the broader scope of the current economy, we do not see that happening any time soon. It’s a great time for many trade-up buyers to capitalize on low-interest rates and move up to a higher price point, and for new buyers secure in their jobs to lock in low rates if they are able to. Contact Us Today For more on the local real estate market, feel free to reach out. At the New Era Group at Your Castle Real Estate, we have all the latest trends data to help you accurately price your home, navigate a home purchase, or make an investment!  

Covid-19, and its Impact On Real Estate So Far   At the time of writing this newsletter, Colorado is under a statewide Safer-at-Home order. Coloradans are no longer ordered to stay home but are strongly advised to stay at home. According to the State of Colorado’s website, “People should be prepared for state and local public health orders to be extended, amended, or changed as needed to protect public health. This means we may move between the different levels during this pandemic.” Some counties have elected to extend the Level 1 (Stay-At-Home) order until May 8th. In counties that have moved on to the Level 2 (Safer-At-Home) order, critical businesses are open and non-critical businesses are operating with restrictions. The number one priority is to stay safe and to stay healthy. In uncertain economic times, people become anxious. Along with that comes a lack of consumer confidence, which can obviously impact the housing market. Real estate has been listed as an essential business in the statewide executive order but it is not business as usual. Much caution is warranted. However even in a crisis, people need a place to live, and in some situations they have a critical need and find themselves in between homes due to circumstances out of their control. We began March with record-high numbers. Showings were up compared to March of 2019. We had about a one-month supply of single-family homes on the market (a balanced market is a 4-6 month supply). That means we only had 25% of the inventory needed. Sellers were getting multiple offers and buyers were getting outbid. This continued through the third week of March. In the final week of March, showings and under contract listings began to slow down. Closings within our brokerage finished at about 7% less than 2019. Given the state of current affairs, this was much better than anticipated.     In April, we saw many sellers take their homes off the market with the plan to re-list in the next few months. Many sellers who had originally planned to list their homes in March and April decided they would hold off on their plans for a few months as well. Despite this, there were still many buyers in the market. Even if half of the buyers in the market dropped their plans to buy, there still would have been more buyers than sellers. The buyer demand would have to drop by 75% to create balance in the market, and we have yet to come anywhere close to this.   Real estate is a supply and demand market, just like all financial markets. Even with fewer buyers in the market, there was still a shortage of inventory. Homes that were priced right and in good condition continued to sell quickly. We did see buyers being more cautious and spending more time researching homes online. Homes that showed well online continued to have in-person showings. Buyers tended to pass on in-person showings for the homes that did not show well online. The best homes still received multiple offers. Overpriced listings still sit on the market longer, which is the case under any market condition.   THE FUTURE How Will All Of This Impact The Real Estate Market?   What does this mean for the future? No one has a crystal ball; however, we remain optimistic. Most agents in our company have a packed pipeline of buyers and sellers that still want to buy or sell, they just want to wait a month or two. We are anticipating that transactions that might otherwise have closed in April, May or June, might now close in July and August, artificially extending the selling season. Of course there will be buyers that are out of the market due to job loss, fear, etc. There may also be some sellers that decide not to sell either out of fear or financial hardship. The April 6th – April 26th suspension we had on in-person showings will most likely create an even larger backlog in housing demand. We anticipate everyone will jump in at the same time. It is safe to bet that 2020 will have fewer closings than 2019, but will it be enough to drastically impact real estate prices in a negative way? Time will tell, but unless we see a significant increase in inventory… our guess is no.