I am seeing that too!! Median and averages account for the homes that are still going for 100k over and in 2 days vs the ones going for $25k under or having $90k price drops. This is a bifurcated market with opportunities for both buyers and sellers. Having said that. The second half of 2024 will be a buyers market until the election is over and inventory is absorbed.
@@TheRuethTeamsure, a certain small portion of the population is able to buy a ever dwindling supply of available homes. If your an existing home owner, it's never been better. If not, well, "screw them I got mine", right?
Currently living in the subs of Dallas, TX. Having lived in CO for years, we were/are trying to move back; however, only thing keeping us from moving is the housing market. Don't want to be house poor or downgrade from our current home.
Hi Shane, I completely understand! I moved here from Dallas having gone to UT Austin. The difference in what you can buy is real so you have to make sure you get the Colorado experience if making a sacrifice…like moving to Evergreen, Morrison, Castle Rock, etc. we should go thru your numbers together.
More fun than supply and prices is watching the rental market fall. Sellers switch to renting out their property then switch back to selling while holding a basket of risk.
What about new home sales? Builders are stagnated because the homes they have built (which need to be sold before they can build more). Because builders are struggling, sales of construction materials are way down. I get that the NAR wants people to get out and buy... but the world is getting ready to make a shift... and people can feel it.
I have these conversations with my Sellers daily. Thank you for putting it on video for me to share with them in a much better package than me rambling on and on about it 😅
@@TheRuethTeamthat sure is what realtors are telling themselves and everyone else And no realtor seems to realize that that is telling sellers to wait to list until after rate cuts. Probably more pent up sellers than buyers
I usually watch The Rueth Team updates but this one sounds super desperate as if people need to make moves?! Why would you, if you don’t need to? If you’re renting another year it won’t put you behind on equity gain after CO market gets cut in prices / equity. If anything it’s smarter to rent now until the markets adjust. They will! Don’t be pushed into buying or selling if you don’t need to. (You can make memories anywhere). Horrible take, she was good in the beginning, this was real bad.
Your take is a fair opinion. Having said that I have buyers who either need to move or are tired of waiting for rates to drop. And of course when they do demand and prices will increase. This isn’t about timing the market; it’s about making the best financial decisions for you and your family today.
Rebuild values in Denver are about $280/sf (square foot), yet prices are hitting in the zone of $500-800/sf. There’s a bubble in Denver … the question is what that bubble is made of? Is it made of soapy water and will pop without notice, or is it more like a lava dome and made of hot stone? 🤷♂️ Colorado wasn’t on the nation’s map as a destination until recently, hence the tripling of values in the last 10 years. I just looked at a house that sold in 2009 for $86k, and it’s listed for $750k … there //is// a bubble. 🫧
Do you think it is possible that the luxury market has more activity than usual vs entry level? I am concerned that the median and average sale prices are misleading us.
Hello @@JeremiahShafer Yes the $1M+ market is seeing more activity but that’s a result of more homes falling into that category over the years. The entry level market is absorbing inventory faster with 1.98 MOI/2.19 MOI vs. 2.92 for $1M-$1.5M or 4.20 for $1.5M - $2M and 6.97 MOI for $2M over. I would argue that the sub $750K market has been healthy while the $1M+ market/$2M+ has been slower due to interest rates. That would lean prices lower.
That might be true but…the regulation changes that is making it harder for landlords and builders will further restrict supply and only cause home prices and rents to go up further.
My mom and I are driving all over denver visiting open houses, after seeing prices dropping here and there we are reconsidering the decision of getting a home now, what if ppl get scared and panic selling after we buy and get locked in a high mortgage rate
You are seeing sellers dropping prices right now because we are in the slowest month when a lot of buyers are on vacation. Remember that you can refinance into the lower rates that are coming given Powells recent change of messaging. If you wait a little longer you might get a little lower price…but this excess inventory will get absorbed and lower inventory plus the upcoming lower rates will lead to more competition and multiple bids. Maximize your negotiating power now with a price reduction and closing costs paid or a rate buydown.
There isn’t anything special about Denver other than expensive housing. When a correction happens some areas will decline greater than others so the 600k 900 sq ft homes in depressed areas will become normal priced and desirable areas will fair better. Wash Park won’t be hit as bad as south federal.
Car prices are in the process of CRASHING! What is so special about homes that then? Of course you're going to say that home prices will keep going up!
Cars are a depreciating asset not appreciating. We have seen home values decrease in some metros. Denver for example is 3.5% under the peak in May 2022. Homes can lose value. But long term they always appreciate if they own land, as its resource is finite
@@TheRuethTeam And you think most home buyers are that financially enlightened to understand the difference between appreciating assets and depreciating ones? I doubt it. That's an oversimplification. Texas and Florida has gone down.
Everyone needs a place to live, but people have other options for transportation. Owning a car is just the most convenient. And when rent is just as, or more expensive than owning, people will always be in the market to buy real estate.
@@chiplangowski3298 After the pandemic, real estate doubled in price. DOUBLED! That isn't a natural progression because of the need to find a house. lol You ignore 2008 when real estate crashed hard. It seems that you ignore reality when it is inconvenient. 2 words "asset bubble".
It’s not a silly option. It’s simply an option that creates no future … unless during the period of renting, the renter is saving and investing their excess.
Have you seen all the new inventory coming to the Aurora area hundreds of brand new being built starting at 400 thousand to 750 actually there's only couple in 400 who's moving there? Everyone dumping there homes in Denver to get out if not who's moving here that can afford those
I have! It’s being built for first time home buyers or people moving here for work wanting to be in Denver and this is their first buyin. It’s a good solution for affordability
To purchase? Rates will be lower which will help affordability. Make sure you are fully pre approved. Even fully underwritten so you can put in a strong offer given the uptick in demand then
@@TheRuethTeam Because to qualify for a loan, every one of your income sources has to be verified. I will have to buy in cash. Same as my brother. The last time I tried qualifying for a loan all they did was upset our accountant and financial advisors. I already own a 1400-acre farm, 2 homes, and our family mansion built in the 1890s in eastern Nebraska.
What area are you in? TX and FL are seeing the most increased inventory. Denver is a top inventory growth area too but our prices aren’t coming down but 1-2% in some areas
@@jmssxy here in the denver metro we have as much inventory as we did in October 2013. Having said that we hit our peak in inventory 2 weeks ago. It will start slowing going down between now and the end of the year.
@@TheRuethTeam well I know many who are selling too, and I am not even considering buying, despite well to do career and funding. One thing that is very apparent to me is how many condos and townhomes are being built still, with new developments all over. The finished condos etc seem to have very few buyers too. Most are empty. Some of them are even now saying “leasing” and used to say available for purchase. Not a good sign I would guess. Smells like 2008 a bit. I have also noticed all sorts of deals on Air BnB as well. What are your thoughts?
House market goes up and down. So, buy it when the price is down and sell it at high. You feel good when you have no more mortgage to pay! There are many ways to pay off your mortgage ahead of time without paying more per month. Eventually, you have a "home" for your retirement.
I'm about to close, I hope it doesn't burst too bad. I hope it wasn't a dumb move. I was totally expecting a bidding war and everything people have warned me about. But we offered the asking price and the seller took it the same day. It was sitting on the market for 91 days.
@@TheErikBallew right now is a time to negotiate. Certain homes are still having bidding wars but those homes are well prices and well staged in great neighborhoods.
When you have millions of legal and illegal immigrants entering the country and Denver being a sanctuary city, as well as a favorite destination, of course this outside demand will cause a shortage of housing. These people have to live somewhere, and will drive prices up from the lower end of the market.
@@donaldphelps8626 there are homes going for multiple bids and over asking! And others sitting on the market. Buyers are picky right now. Yet…nationally home prices hit another record high
@@SigFigNewtonwhat data tells you that? We have as much inventory as 2013, sellers are coming out. However, buyer demand is as low as 1995 with 75 million more people in the US than 1995. Rates drop and demand will spike
@@TheRuethTeam used house salesmen have been insisting since 2022 that soon rate cuts will send demand soaring. News flash: people listen to used house salesmen. People are waiting to sell. Huge amounts of pent up selling.
In 2008 the crisis didn’t come from over supply, it came from the deleveraging of the financial system. High interest rates. The thing is high rates are like inflation in that it works on a lag. We haven’t felt the impacts of the rates on the economy yet. It’s like inflation being transitory then it takes a year before we find out it wasn’t. The flip side is true if they drop rates it takes a while to take effect. Like 2008 didn’t end till 2012. Even though they dropped rates to 0 after the market crashed. This is the intended outcome of rate hikes btw.
I have recently seen prices being cut on some homes and others sitting longer before being bought.
I am seeing that too!! Median and averages account for the homes that are still going for 100k over and in 2 days vs the ones going for $25k under or having $90k price drops. This is a bifurcated market with opportunities for both buyers and sellers. Having said that. The second half of 2024 will be a buyers market until the election is over and inventory is absorbed.
@@TheRuethTeam I definitely agree with that for sure.
I wouldn't put too much weight on listing prices. It's all about the selling price.
Ridiculous. Bottom line, if people can’t afford it they can’t buy it. Prices have to fall or we’re all renting. It’s a house of cards.
30% of our market buys in cash. prices can be permanently higher and people will still buy
@@TheRuethTeamsure, a certain small portion of the population is able to buy a ever dwindling supply of available homes. If your an existing home owner, it's never been better. If not, well, "screw them I got mine", right?
Excellent market summary, Nicole! I think we've all forgotten what a "normal, balanced" real estate market is. Great advice!
Thank you!
😂
Currently living in the subs of Dallas, TX. Having lived in CO for years, we were/are trying to move back; however, only thing keeping us from moving is the housing market. Don't want to be house poor or downgrade from our current home.
Hi Shane, I completely understand! I moved here from Dallas having gone to UT Austin. The difference in what you can buy is real so you have to make sure you get the Colorado experience if making a sacrifice…like moving to Evergreen, Morrison, Castle Rock, etc. we should go thru your numbers together.
Please please pleeeaase be a customer for her
@@SigFigNewtonhe should ..it would be one more human in a stronger financial position!
@@TheRuethTeam used house sale are a dime a dozen
You never should have left Colorado. Sounds like a bad decision you can’t come back from
More fun than supply and prices is watching the rental market fall. Sellers switch to renting out their property then switch back to selling while holding a basket of risk.
What about new home sales? Builders are stagnated because the homes they have built (which need to be sold before they can build more). Because builders are struggling, sales of construction materials are way down. I get that the NAR wants people to get out and buy... but the world is getting ready to make a shift... and people can feel it.
I have these conversations with my Sellers daily. Thank you for putting it on video for me to share with them in a much better package than me rambling on and on about it 😅
Absolutely! The power comes in knowing the market.
Buyers, your opportunity is better next year
Next year with lower rates will push buyers back into bidding wars.
@@TheRuethTeamthat sure is what realtors are telling themselves and everyone else
And no realtor seems to realize that that is telling sellers to wait to list until after rate cuts. Probably more pent up sellers than buyers
@@njerseydavid in New Jersey? Sure, that could be
I’m talking about the region this video was about
@@njerseydavid supply and demand matter
@TheRuethTeam Haha! Don't think so! People have less money than before.
I usually watch The Rueth Team updates but this one sounds super desperate as if people need to make moves?! Why would you, if you don’t need to? If you’re renting another year it won’t put you behind on equity gain after CO market gets cut in prices / equity. If anything it’s smarter to rent now until the markets adjust. They will! Don’t be pushed into buying or selling if you don’t need to. (You can make memories anywhere). Horrible take, she was good in the beginning, this was real bad.
Your take is a fair opinion. Having said that I have buyers who either need to move or are tired of waiting for rates to drop. And of course when they do demand and prices will increase. This isn’t about timing the market; it’s about making the best financial decisions for you and your family today.
I agree. This is not the sort of realtor I would want to hire as a buyer. Trying to foment the FOMO
@@geoffbruno it’s not fomo. It’s reality and it’s a choice. One that gives you more negotiating but certainly not the only choice.
Rebuild values in Denver are about $280/sf (square foot), yet prices are hitting in the zone of $500-800/sf. There’s a bubble in Denver … the question is what that bubble is made of? Is it made of soapy water and will pop without notice, or is it more like a lava dome and made of hot stone? 🤷♂️ Colorado wasn’t on the nation’s map as a destination until recently, hence the tripling of values in the last 10 years. I just looked at a house that sold in 2009 for $86k, and it’s listed for $750k … there //is// a bubble. 🫧
I completely disagree. Housing can be permanently more expensive and lower price per square foot’s can be found in other US Metro’s.
Great summary and so many nuggets to use with current clients. Thank you!
Glad it was helpful!
Do you think it is possible that the luxury market has more activity than usual vs entry level? I am concerned that the median and average sale prices are misleading us.
Hello @@JeremiahShafer
Yes the $1M+ market is seeing more activity but that’s a result of more homes falling into that category over the years. The entry level market is absorbing inventory faster with 1.98 MOI/2.19 MOI vs. 2.92 for $1M-$1.5M or 4.20 for $1.5M - $2M and 6.97 MOI for $2M over.
I would argue that the sub $750K market has been healthy while the $1M+ market/$2M+ has been slower due to interest rates.
That would lean prices lower.
With these gov policies the trend is down. Our city council lacks competence on a whole
That might be true but…the regulation changes that is making it harder for landlords and builders will further restrict supply and only cause home prices and rents to go up further.
My mom and I are driving all over denver visiting open houses, after seeing prices dropping here and there we are reconsidering the decision of getting a home now, what if ppl get scared and panic selling after we buy and get locked in a high mortgage rate
You are seeing sellers dropping prices right now because we are in the slowest month when a lot of buyers are on vacation. Remember that you can refinance into the lower rates that are coming given Powells recent change of messaging. If you wait a little longer you might get a little lower price…but this excess inventory will get absorbed and lower inventory plus the upcoming lower rates will lead to more competition and multiple bids. Maximize your negotiating power now with a price reduction and closing costs paid or a rate buydown.
Highest prices, and highest interest. I’m not buying till I have to. Something has to give, or I’m out of Denver
There isn’t anything special about Denver other than expensive housing. When a correction happens some areas will decline greater than others so the 600k 900 sq ft homes in depressed areas will become normal priced and desirable areas will fair better. Wash Park won’t be hit as bad as south federal.
@@TheRuethTeam That's also what I'm told, we did a lot of negotiation during the process and will move to our new home in like a week
@@TheJester134 we ended up buying cuz we really have to relocate, but we will be refinancing
Car prices are in the process of CRASHING! What is so special about homes that then? Of course you're going to say that home prices will keep going up!
Cars are a depreciating asset not appreciating. We have seen home values decrease in some metros. Denver for example is 3.5% under the peak in May 2022. Homes can lose value. But long term they always appreciate if they own land, as its resource is finite
@@TheRuethTeam And you think most home buyers are that financially enlightened to understand the difference between appreciating assets and depreciating ones? I doubt it. That's an oversimplification. Texas and Florida has gone down.
Everyone needs a place to live, but people have other options for transportation. Owning a car is just the most convenient. And when rent is just as, or more expensive than owning, people will always be in the market to buy real estate.
@@chiplangowski3298 After the pandemic, real estate doubled in price. DOUBLED! That isn't a natural progression because of the need to find a house. lol
You ignore 2008 when real estate crashed hard. It seems that you ignore reality when it is inconvenient. 2 words "asset bubble".
@@chiplangowski3298 You deleted my comment, why? Just because you lack a rebuttal?
Subbed for the info on Denver, thank you!
"You'll own nothing and be happy"
Renting is also much cheaper right now - I don’t know why it’s passed off as a silly option.
It’s not a silly option. It’s simply an option that creates no future … unless during the period of renting, the renter is saving and investing their excess.
There is nothing conflicting in my thoughts of the actual prices on the market.
Nailed it!!
Mic drop.
Well done!
Thank you!
Thanks Nicole. Thumbs up.
You are so welcome!
Not a chance. Demand is very high here. If prices crashed, there'd just be a covid style buying spree all over again.
@@adventuremanintheclouds8968 totally agree!
Have you seen all the new inventory coming to the Aurora area hundreds of brand new being built starting at 400 thousand to 750 actually there's only couple in 400 who's moving there? Everyone dumping there homes in Denver to get out if not who's moving here that can afford those
I have! It’s being built for first time home buyers or people moving here for work wanting to be in Denver and this is their first buyin. It’s a good solution for affordability
Demand Side economics. . .
I currently live in the Glendale/Denver area 2 blocks away from Infinity Park. I'm targeting the Summer of 2025.
To purchase? Rates will be lower which will help affordability. Make sure you are fully pre approved. Even fully underwritten so you can put in a strong offer given the uptick in demand then
@@TheRuethTeam Because to qualify for a loan, every one of your income sources has to be verified. I will have to buy in cash. Same as my brother. The last time I tried qualifying for a loan all they did was upset our accountant and financial advisors. I already own a 1400-acre farm, 2 homes, and our family mansion built in the 1890s in eastern Nebraska.
@@Ospery157those sound beautiful!
We have no ratio loans with a minimum of 20-30% down if you ever want/need to get a loan. But I get it.
Not sure what she is talking about I'm a homeowner in denver and my property value went down 30k over the last year
Appreciation is extremely location specific. The denver metro grew 2.59% for a median priced home.
I guess in my area I see empty condos/townhomes, houses perpetually onsale, and I receive emails every week for discounted homes?
What area are you in? TX and FL are seeing the most increased inventory. Denver is a top inventory growth area too but our prices aren’t coming down but 1-2% in some areas
@@TheRuethTeam I am in Arvada CO
@@jmssxy here in the denver metro we have as much inventory as we did in October 2013. Having said that we hit our peak in inventory 2 weeks ago. It will start slowing going down between now and the end of the year.
@@TheRuethTeam well I know many who are selling too, and I am not even considering buying, despite well to do career and funding. One thing that is very apparent to me is how many condos and townhomes are being built still, with new developments all over. The finished condos etc seem to have very few buyers too. Most are empty. Some of them are even now saying “leasing” and used to say available for purchase. Not a good sign I would guess. Smells like 2008 a bit. I have also noticed all sorts of deals on Air BnB as well. What are your thoughts?
@@TheRuethTeam also, I have noticed many empty rental Apts too in my area? In my building, that no keeps rising via the available units
Rates have crashed.
They have definitely dropped!!
House market goes up and down. So, buy it when the price is down and sell it at high. You feel good when you have no more mortgage to pay! There are many ways to pay off your mortgage ahead of time without paying more per month. Eventually, you have a "home" for your retirement.
I'm about to close, I hope it doesn't burst too bad. I hope it wasn't a dumb move. I was totally expecting a bidding war and everything people have warned me about. But we offered the asking price and the seller took it the same day. It was sitting on the market for 91 days.
@@TheErikBallew right now is a time to negotiate. Certain homes are still having bidding wars but those homes are well prices and well staged in great neighborhoods.
You overpaid. Sorry bud
Half lie half Truth
so which is it?
They are only up because they use the garbage median statistic instead of the MEAN/AVERAGE, which is misleading!
The average year over year is up even higher. Nationwide home price index hit another record high. Home prices are permanently more expensive
Hahaha nope
When you have millions of legal and illegal immigrants entering the country and Denver being a sanctuary city, as well as a favorite destination, of course this outside demand will cause a shortage of housing. These people have to live somewhere, and will drive prices up from the lower end of the market.
my neighbor just sold for all time high last month. get a house and quit screwing around with you house...
@@donaldphelps8626 there are homes going for multiple bids and over asking! And others sitting on the market. Buyers are picky right now. Yet…nationally home prices hit another record high
Buyers, your opportunity is better next year
not if rates go down bringing in more buyers, hotter competition on dwindled supply
@@TheRuethTeam sellers are awaiting lower rates
@@SigFigNewtonwhat data tells you that? We have as much inventory as 2013, sellers are coming out. However, buyer demand is as low as 1995 with 75 million more people in the US than 1995. Rates drop and demand will spike
@@TheRuethTeam used house salesmen have been insisting since 2022 that soon rate cuts will send demand soaring.
News flash: people listen to used house salesmen.
People are waiting to sell. Huge amounts of pent up selling.
In 2008 the crisis didn’t come from over supply, it came from the deleveraging of the financial system. High interest rates. The thing is high rates are like inflation in that it works on a lag. We haven’t felt the impacts of the rates on the economy yet. It’s like inflation being transitory then it takes a year before we find out it wasn’t. The flip side is true if they drop rates it takes a while to take effect. Like 2008 didn’t end till 2012. Even though they dropped rates to 0 after the market crashed. This is the intended outcome of rate hikes btw.