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DMAR for August - Real Estate Did Not Surprise; It Delivered

DMAR report for August from The Rueth Team

Real estate has not only taken a position of favor because it’s now where we are spending most of our time, but it’s also giving homeowners stability in a shifting market.  What keeps me up at night?  The stock market.  As CNN’s Fear & Greed Index moves further into Greed and Citigroup’s Panic/Euphoria Index points towards extreme Euphoria; both point to lower stock prices within a year.  The recent news of COVID deaths breaking 155,000; COVID cases doubling in July; jobless numbers and continuing claims both breaking trend and increasing; and Yelp’s business tracker showing another 15,742 businesses closed permanently in July alone all point to a long recovery. Real estate, however, continues to show strength with a sneak peek into next month as pending home sales in July another big number of 7,122, 27.47 percent higher than last year. 

Home is a safe place, one which should provide joy, safety, and stability.  As the world around us is in a trying time; real estate continues to be the silver lining for those who can win the bid.  Jobless claims and COVID cases are up and businesses are closed. Demographics and rates continue to push demand, while the uncertainty of jobs and schools weigh heavily on sellers. Builders are rushing to make up what existing homes are not and all of this could change if the stock market turns.  Here’s what I see going on in the market.

Let’s start with the sellers. They aren’t moving. Inventory continues to strain the market with 6,449 active listings at month-end, 31.1% below last July. The uncertainty of the job market, the inability to find a replacement home, and the now the stress of homeschooling have sellers thinking twice. Meanwhile, builder confidence rallied in July to meet the suburban moving demand with smaller homes void of shared spaces. Denver saw New Home Pending Sales up 17.9% in June and 22.9% over last year.

Meanwhile, the buyers are clamoring for homes that are priced right and staged well, with 31% of detached homes selling for over asking and average days on market dropping 7.7% year over year and median dropping 36.4%. And not only is the demand hot for lower-priced homes as first-time homebuyers, downsizers, and investors push the close to list price for homes between $300,000 and $500,000 to 100.6%; homes over a million also gained favor in July. Are people finding well-being today in luxury homes?  55% more million dollar plus homes sold than last year driving the average closed price for single-family detached above $601,863. That’s almost 10 percent higher than July last year when it seemed the McMansion had all but lost favor.  Speaking of McMansions, what were the two highest-priced homes sold in July?  A $7-million-dollar home in Boulder and a $5.985-million-dollar home in Cherry Hills, of course.

 

Nicole Rueth
The Rueth Team of Fairway Independent Mortgage Corporation
750 W Hampden Avenue, Suite 500
Englewood, CO 80110
303-214-6393
www.TheRuethTeam.com

Connect on social media:
Follow me on FB: https://www.facebook.com/theruethteam/ 
Twitter: https://twitter.com/nicolerueth 
Linkedin: https://www.linkedin.com/company/the-rueth-team-fairway-independent-mortgage/ 
YouTube Channel: https://www.youtube.com/channel/UCPMdb94tUNMMsUTgdWRMDKw 

Denver Metro Market Trends July 2020 - Get Those Sellers Moving!

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Get me off this COVID-19 rollercoaster! Cases are resurging closing businesses that just opened while risking the recent good news of job creations and lower unemployment we saw from economic reopenings in May and June. The Fed is poised to act to keep rates low and urged lawmakers to accelerate the fourth stimulus package before programs end July 31st. Locally, Denver's housing market remains strong with growing pending home sales, almost full recovery of closed homes compared to 2019, and appreciating values due to scarce inventory. 

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Denver Metro Market Trends June 2020 - Whose Market Is It?

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2020 has been a year of historical proportions (what else could possibly happen?) and it’s changed the real estate market. Buyers and sellers alike are no longer only asking, “Do we love this home,” but are now asking questions like, “Is it big enough to work from home?” “Does it provide opportunity and space for my children to play if schooling at home?” And, ultimately, “Is it safe?”

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Buyers and Sellers are Ready, but on Their Terms

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We see red numbers on this month’s Market Trends Report and this is no surprise, but there are a few silver linings buried in there as well.  Let’s start at the top and what’s going on in the economic market, the consumer confidence, and then how it intersects Denver’s real estate market. COVID-19 has impacted us all, some more deeply than others. The loss of jobs and the requirement to stay at home forced many transactions and businesses to a screeching halt. 

Join us for this episode covering Unemployment, GDP and Consumer Confidence Rates, In Person Showings, Appreciation, Demand is Strong, Time to Navigate. These insights will help you respond to the current market and prepare for what's coming up.

Your partner,

Nicole Rueth
The Rueth Team of Fairway Independent Mortgage Corporation
750 W Hampden Avenue, Suite 500
Englewood, CO 80110

303-214-6393

www.TheRuethTeam.com

Connect on social media:

Follow me on FB: https://www.facebook.com/theruethteam/
Twitter: https://twitter.com/nicolerueth
Linkedin: https://www.linkedin.com/company/the-rueth-team-fairway-independent-mortgage/
YouTube Channel: https://www.youtube.com/channel/UCPMdb94tUNMMsUTgdWRMDKw

Housing Was, Is and Will be Strong -DMAR April 2020

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DMAR’s April Market Trends Report highlights the strength of the overall housing and economic market going into what will be known as one of the most surreal experiences you and I have – and, likely, will ever have - in our lifetimes.

Let me first acknowledge the human tragedy of COVID-19.

To those who lost loved ones, jobs, financial stability, and so much more; I hope you find the strength to help us all move past this dark chapter in history.

As optimistic I am about the future long-term future of our economy, the significant downturn and its effects will be felt throughout every industry throughout the short-term. The effects will be felt for the long-term in some industries, but I stand convinced the economy will race to normalcy once COVID-19 withdraws and we fully reopen the economy from social isolation.

Read the rest of the blog at https://theruethteam.com/Market-Trends

Your partner in building wealth through Real Estate,

The Rueth Team of Fairway Independent Mortgage Corporation
750 W Hampden Avenue, Suite 500
Englewood, CO 80110
303-214-6393
www.TheRuethTeam.com

Connect on social media:

Follow me on FB:https://www.facebook.com/theruethteam/ 
Twitter:https://twitter.com/nicolerueth 
Linkedin:https://www.linkedin.com/company/theruethteam/
YouTube Channel:https://www.youtube.com/channel/UCPMdb94tUNMMsUTgdWRMDKw

DMAR Market Trend 0320 - Housing Gain, Recession Fears

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Denver Housing to Gain Despite Coronavirus, Recession Fears

Low Inventory, Again Out of the 5,122 new listings that came on the market in February, 5,083 homes were under contract in DMAR’s 11 county area, highlighting the metro area’s low inventory market dynamics. The low inventory trend seems to continue as we ended February with just 4,835 active listings, down 2.15% from January. Just what do you think is going to happen to home prices in a metro area of about 2.8 million people? Where is the Inventory? My hunch is 2020 might bring the biggest housing inventory shortage in US history.

Currently, 55.2% of all owner-occupied homes are owned by people age 50 or older. An increasing number of Baby Boomers are aging in place, unlike their parents who sold their homes to downsize or move ahead of retirement. It’s not just Baby Boomers. Homeownership tenures have reached new highs at an average of 13 years - the highest average in 18 years! Nationally, new construction just hit a 12 year high but only caters to the upper tier of housing, which leaves an estimated gap of 3.8M homes needed to meet market demand across the United States.

In Colorado, housing permits are down year-over-year as builders try to shift from large homes to smaller, more affordable homes, townhomes and condos. The lack of inventory is creating appreciation. Metro Denver’s February year to date is already 6.25% and primed to continue, whereas median home prices in metro Denver increased only 2.46% in 2019. A recent CoreLogic report shows 4% year over year gains and homes reported by FHFA showed a 5.2% increase year over year.

Coronavirus to Slow Down U.S. Economy

The Coronavirus is a threat not just to public health, but to the global economy. As China scrambles to contain the outbreak, we’re already seeing effects on global trade, supply chains, and manufacturing. In China, workers and truck drivers are being ordered to stay at home to limit the virus’ spread, grinding manufacturing and logistics to a halt. Shipping companies are also canceling routes from China to the U.S., further limiting the number of Chinese products reaching the U.S. Read the rest of the article at https://theruethteam.com/Market-Trends

This podcast is sponsored and produced by The Rueth Team

Your home purchase has a long term impact on your ability to build financial wealth. We at the Rueth Team will continue to be alongside you well beyond the closing table. Whether helping to refinance a loan,  transitioning to your next home, or building multigenerational wealth through investments, we are committed to finding YOU solutions other lenders can’t… or simply won’t.

We look forward to helping you build wealth through real estate by generating passive income for a more financially secure future.

Get started by visiting theRuethTeam.com 

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