CoreLogic produces one of the most respected and widely-used home price index reports in the United States.
They track home price appreciation in the largest markets across the Country.
Here are the highlights from their most recent report:
The following analysis of the Metro Denver & Northern Colorado real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere agent.
REGIONAL ECONOMIC OVERVIEW
The job recovery that appeared to be firmly in place in the summer has started to wane. Though Colorado has recovered more than 209,000 of the jobs lost due to COVID-19, employment levels remain almost 210,000 below the level seen last February. Even with employment growth stalling, the unemployment rate stands at a relatively respectable 6.4%, down from a peak of 12.2%. Regionally, unemployment levels range from a low of 5.4% in Boulder to a high of 6.9% in Greeley. Rising COVID-19 infection rates continue to impact the job recovery, and I do not see much in the way of palpable improvement until a vaccine becomes freely available, likely in the second half of this year.
❱ In the final quarter of 2020, 12,207 homes sold. This represents an increase of 21.8% compared to the fourth quarter of 2019, but 19% lower than in the third quarter. I am not concerned, though, because seasonal influences tend to impact sales in the winter.
❱ Sales rose in all markets other than El Paso compared to the fourth quarter of 2019. I believe sales are only limited by the number of homes on the market.
❱ Inventory levels remain well below what I would like to see. The average number of homes on the market in the fourth quarter was down 55% from the same period in 2019.
❱ Pending sales were 34% lower compared to the third quarter. Again, seasonality and a lack of homes to buy impact this figure. Pending sales are still 13% higher than a year ago.
❱ Home prices rose significantly in the fourth quarter, with the average price increasing 13.7% year-over-year to $532,492. Prices were up 1.8% compared to the third quarter of this year.
❱ Interest rates are unlikely to drop much further and this will lead price growth to slow as we move through 2021.
❱ Year-over-year, prices rose across all markets covered by this report, with significant appreciation in Clear Creek, Gilpin, Park, and El Paso counties. Every county but Arapahoe saw double-digit price gains.
❱ Affordability in many Colorado markets remains a concern as prices continue to rise at well-above-average rates. That said, I anticipate we will see price growth moderate in 2021.
❱ The average number of days it took to sell a home in the markets contained in this report dropped 15 days compared to the final quarter of 2019.
❱ The amount of time it took to sell a home dropped in every county contained in this report compared to the fourth quarter of 2019.
❱ It took an average of 26 days to sell a home in the region, down 3 days compared to the third quarter of 2020.
❱ The Colorado housing market continues to demonstrate solid demand, and buyers are clearly competitive as suggested by the short length of time it is taking to sell a home.
CONCLUSIONS
This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.
Home sales and prices are significantly higher than a year ago, and demand for housing is very much in place. Naturally, this favors home sellers who are still in control of the market. I do expect to see some improvement in listing activity this year, which, in concert with modestly rising interest rates, will likely start to take some of the steam out of the market. However, any moderation in the market has yet to appear. Even given the possible headwinds mentioned above, I am moving the needle a little more in favor of sellers, as demand is likely to exceed supply for the time being.
ABOUT MATTHEW GARDNER
As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.
In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.
“How could the real estate market be so strong in the middle of a pandemic?”
That is a fair question and one we hear frequently from our clients.
There are several reasons for this but two stand out.
Employment has bounced back much quicker than most people expected. When COVID first showed up, the expectation was that many industries would be hit hard for a prolonged period of time.
The reality is that only a few industries were severely impacted by COVID and the rest were able to get back to a near-normal level of business relatively fast.
Additionally, what we find along the Front Range is that our ‘job bounce’ is even better than the national average.
Here are the numbers…
The COVID-peak unemployment rate for the Front Range looked like this:
Today it looks like this:
Nationally, unemployment peaked at 14.8% and now stands at 6.7%.
So, a main reason why demand is high now is because jobs have bounced back, and the bounce is even higher than the average across the country.
Selling your home is a collaborative effort between you and your real estate agent. As you prepare to sell your home, it’s important to find an agent who not only can answer your questions throughout the selling process, but who also cares about the happiness and goals of you and your household, as well.
Once you’ve made the decision to sell, there are some things to consider before selecting an agent to work with.
Think about selling strategy
Finding the Right Agent for You
You and your agent will be communicating throughout the process of selling your home. You’ll be relying on them for updates and information each step of the way. Though your goal in working together is ultimately the sale of your home, your agent’s ability to connect with you on a human level through the emotional ups and downs of the selling process is just as important as their professional attributes. Accordingly, you’ll want to consider what qualities you’re looking for in an agent.
To set yourself up for identifying good candidates, talk to people you trust who know your personality and goals. Get referrals from your family, friends, colleagues, and neighbors. If they recommend someone, follow up with that agent to see if they are a good fit for you.
To give yourself the best pool of potential agents, conduct your search both online and in-person. Exploring an agent’s social media profiles and reading reviews online can be useful in assessing whether they’re someone you want to work with. If in-person showings and open houses are occurring in your market, consider dropping by to get a chance to interact with the agent first-hand. After you have narrowed your agent search, ask for client references to get more insights into what it’s like to work with them.
Some agents choose to earn additional certifications or designations that showcase their commitment to additional training, coursework, and learning to help them specialize and advance their capabilities. Depending on your specific needs, certain designations may appeal to you as you go about finding the right agent to sell your home. The National Association of REALTORS® offers the largest number of professional designations. Explore them here: NAR Designations and Certifications
For help finding the right agent for you, we’re happy to connect you with an agent here.
A hot topic of conversation these days is the prospect of another real estate bubble. People wonder if prices can continue at their current pace and some fear a repeat of 2008.
Because we get asked about this topic so often from our clients, we thought it would make sense to ask our in-house expert, Matthew Gardner.
Matthew is our Chief Economist and was our Keynote Speaker at the Windermere Annual Market Forecast.
During the Forecast presentation, he discussed the bubble concerns and laid out his reasons why he sees no potential of prices bursting along the Front Range.
Quite the opposite actually, he sees that prices will continue to go up, but just not as fast as they have been.
His reasons for no bubble bursting are as follows:
So, we project a healthy real estate market in 2021.
To see a replay of the Forecast presentation, simply reach out to us, we would be happy to send you the recording.
Rate Heading
Where are interest rates headed?
This question was one of many which were addressed during our annual Market Forecast yesterday.
Our Chief Economist, Matthew Gardner, provided insight on rates, prices, inventory and many other fascinating topics.
Matthew’s prediction is for rates to creep up to 3.07% by the end of 2021. They are currently at 2.79%.
The image below shows how his prediction compares with predictions of his economist colleagues.
If you would like a recording of the presentation, simply reach out to your Windermere Broker or reply to this email.
For the second time ever, Pantone’s Color of the Year is actually two colors: Ultimate Gray and Illuminating Yellow. Ultimate Gray is emblematic of natural elements that stand the test of time, while Illuminating Yellow is a cheerful sunshine yellow, symbolizing energy and clarity.
Here are some ways you can harness this color harmony in your home.
With a foundation of Ultimate Gray, Illuminating yellow will brighten your bedroom, livening up the space and radiating positivity. Mix and match different furniture and accent wall combinations to get the right balance of sunny yellow and solid gray.
Home offices have become more important than ever. As working from home continues in 2021, your remote workspace is the perfect location to add in Pantone’s Color of the Year. We all could use some added stimulation to keep our workdays going smoothly and productively. Use Illuminating to add some colorful accents or to paint your wall, balance it out with some Ultimate Gray, and let the positivity fill your home office. 
Pantone’s Illuminating is a perfect accent color for your home. Incorporate this energetic sunshine yellow in your living room in the form of decorative throw pillows, blankets, and accent décor 
pieces like vases and curtains. Ultimate Gray is a perfect color for large furniture items and will help to balance out the tone of your living room. It provides a neutral backdrop, which gives you the freedom to decorate brightly.
Your front entrance plays a significant role in the first impressions of your home. What better way to use Pantone’s striking yellow than a front door makeover? Illuminating yellow presents an opportunity to bring a little sunshine to your family and guests every time they approach. Ultimate Gray as both a wall color and an accent color will help to solidify your new, strikingly optimistic front door. Accent pieces like house numbers, your mailbox, and plant pots will help create harmony between the two colors.
Read more about this year’s color trends and how you can incorporate them into your home here: 2021 Paint Color Trends
Typically, in the Front Range Market, the number of new listings will exceed the number of closings on a monthly basis.
Meaning, the amount of properties that hit the market in a given month will be higher than the amount of properties that sell in that month.
It is normal to have the ‘inflow’ exceed the ‘outflow’ because some properties never sell for a variety of reasons.
As a result, the market remains stocked with inventory.
Starting about 5 years ago, we saw months where the number of new listings was roughly the same as the number of closings.
Then, in late 2020, these numbers inverted. Closings started to exceed new listings.
This culminated in December 2020 when we saw the most drastic difference we have ever seen.
Here are the specific numbers for December:
What this means is the market needs new listings. This also means that your home is likely worth more than you might think. If you want to see your home’s current value, even if you aren’t thinking of selling soon, we would be happy to show you.
Contrary to popular belief, going green does not have to be hard or cost money, in fact it can even save you money. There are many small things that you and your family can do within your home to save money while reducing landfill waste and the use of natural resources. Discover a few ways to go green and save some money by choosing a green home.
Composting is free and can provide you with rich soil to garden with. You will never have to buy soil and can easily grow plants and vegetables. To create your own bin, get a large trashcan with a locking lid, then drill about 25 holes all around the bin and attach the bin to small platform (allows it to drain). Once you start putting approved items in the bin go outside and roll it around in the grass every few days.
You can save approximately $75 dollars a year by replacing your traditional incandescent with energy efficient light bulbs. On average energy efficient light bulbs typically use way less energy and can last much longer, not needing to be replaced as much.
There are quite a few options to save money and energy when it comes to laundry. Here are a few: wait till you have a full load of laundry to wash, line dry your clothes, wash your clothes in cold water and when it comes time to get a new washer and dryer buy an energy efficient one.
One of the main ways we use a lot of energy, especially in hot and cold climates, is through air-conditioning and heating. One way to reduce the use of heating and air-conditioning is to properly weather strip and caulk all windows and doors keeping your home cool and warm when needed.
Use items more than once when you can to avoid throwing them out; this might mean buying quantity over quality. Another way is to join The Freecycle Network or Buy Nothing group on Facebook you can swap used goods with neighbors for free and also keeping more waste out of landfills.
Start making your own cleaning products. Not only can you customize, make them eco-friendlier but you will also save money buying products. On average, most DIY cleaners cost less than a $1 to make per bottle compared to $5-$15 per store bought bottle.
Put all your major electronics on a power strip and shut off when they are not in use. Even if your electronics are shut off, they still will continue to draw electricity thought out the day. Another tip is to make sure you unplug your cellphone when completely charged and always power everything down while not in use to save on battery life.
There is an extremely easy way to make your toilet a low flow toilet. Simply add a brick, wrapped in a waterproof bag or take a plastic water bottle and fill it with sand putting it into your tank. This will reduce the amount of water with every flush. Once you are ready for a new toilet purchase a low-flush toilet.
Change up your shower head with an energy-efficient shower head that will use half the amount of water. These shower heads are low flow but will significantly cut your water bill down. Another option is to install a tap aerator which will also cut down water usage without changing the water pressure.
After a weary 2020, expect to see a return to prominence for nostalgic, neutral colors. The resurgence of neutrals signals a focus on simple comfort, healing, a return towards wellness, and is representative of a lifestyle with a slower pace. Colors to look for include oatmeal hues, cerulean and Aegean blues, and earthy tones.
Comforting colors
More than ever we are looking to our homes to provide us the chance to relax and recharge. Accordingly, serene, warm colors and soft pastels are making a strong comeback. They set the mood by providing a calm foundation, leaving room to add colorful decorations. Keep your eye out for rejuvenating colors including soft reds and creamy off-whites.
To build upon your neutral palette, add touches of vibrant colors for an exciting contrast. This coming spring, you can expect to see nature-based hues on the rise. In 2021, these nature colors will reflect a return to vibrance after homeowners have spent most of 2020—and, in some places, remain—cooped up due to the COVID-19 pandemic. Colors to look for include rust tones and hues in the gold-to-orange range.
Color trends in your home
The calm, soothing presence of neutrals is best delivered when given ample space, so look to use the neutral palette on large surface areas. Good use cases in your home include painting whole walls, as well as furniture and carpeting choices. For vibrant colors, sprinkle them throughout the home in your décor and through smaller accents.
60-30-10 Rule
After you’ve chosen your colors, follow the 60-30-10 color design rule. It states that 60% of a room’s color should be the dominant color, 30% should be the secondary color, and 10% should be the accent color.
Here are three 2021 paint colors that will deliver the serene home environment you’re looking for while providing a solid foundation to add decorations.
Benjamin Moore’s 2021 color of the year is Aegean Teal. It combines a calming blue, a natural green, and a soothing grey. Its qualities make it a sound choice for bedroom or living room walls, as well as cabinets and other large surface areas. Aegean Teal is the perfect choice for homeowners looking to incorporate a bluish hue into their home without the melancholy undertones that come with blue.
Say hello to Urbane Bronze—Sherwin Williams’ 2021 color of the year. Their selection is founded in the desire to create a sense of calm at home. Urbane Bronze helps to deliver the sense of a sanctuary at home, given its organic appeal. Use this color to give your home a relaxed feel by painting your trim or accent walls. Urbane Bronze pairs nicely with greys and modern greens.
PPG has selected Big Cypress as part of their “Be Well” 2021 Palette of the Year. This ginger orange pairs well with cherry and mahogany woods, as well as touches of gold. Homeowners looking to create a soothing feeling without missing a sense of warmth can depend on Big Cypress to do the job. Another earthy tone, this color is the perfect choice to create what PPG calls a “huggable” room.
2020 has been a unique year, changing how we perceive and live in our homes. The new year presents an opportunity for a fresh start, so consider exploring these colors and trends to find the right combination for your home in 2021.
Facebook
X
Pinterest
Copy Link