Tripp Ranch is a 1990s subdivision located in South Golden between Heritage Dells and Stonebridge at Eagle Ridge. This home is located across from the Kinney Run trail and a short walk from the Apex Open Space trailhead. Shelton Elementary School is just a few blocks south. US Highway 6 and Interstate 70 are less than two miles away, providing convenient access to Denver, Boulder and the mountains. Inside, this home has some great improvements, including hardwood floors, a gourmet kitchen with slab granite countertops, and two offices. The backyard features a large deck with included hot tub. Best of all it’s super quiet here because of its setting behind a hogback. Homes here sell quickly, so check out the narrated video tour online at www.TrippRanchHome.info, then come to the open house this Sunday, October 4th, 11 a.m. to 2 p.m. Or call your agent or Jim Smith at 303-525-1851 for a private showing.
This ranch home has 5 bedrooms and 3 bathrooms. It is located between Denver and Boulder with easy access to mass transit. The basement is finished with a 37’x13’ carpeted room to use as you wish plus two bedrooms (non-conforming), a three-quarter bathroom and laundry room. On the main floor, the living room and three bedrooms are carpeted with hardwood floors underneath. The eat-in kitchen opens to a large deck and park-like backyard. The wood deck is 36’x19’ and is a great place to entertain. There is an oversized one-car garage and outside space for a camper, RV or another car. Take a narrated video tour at www.ArvadaRanch.info, then call your agent or David Dlugasch at 303-908-4835 for a private showing. Open this Saturday, October 3rd, 11am to 2pm.
An article I just read in the Colorado Sun, written by Shelly Miller, Professor of Mechanical Engineering at CU-Boulder, tells us something really important — that keeping the concentration of CO2 (generated by human breathing) under 600 ppm in indoor spaces has been shown to dramatically reduce the spread of Covid-19. Here’s a link to the source article:
Prof. Miller receives funding from the National Science Foundation, Environmental Protection Agency, Centers for Disease Control, National Institutes of Health, and additional nonprofit organizations. She is affiliated with American Association of Aerosol Research and the International Society of Indoor Air Quality and Climate.
Thanks to reader Jen Grauer for bringing this to my attention, and I’m happy to bring it to yours!
At Golden Real Estate it has been our practice since the beginning of the virus to keep our front doors open so that we and our visitors don’t have to touch them, but now we realize that this practice also makes our indoor air safer. We also have a CO2 monitor, which we’ll now plug in and display prominently in our office.
The fact that we’re still in a seller’s market puzzles many real estate professionals, but there are reasonable explanations, which Realtor.com did a good job of describing in a July 13th article by Clare Trapasso.
The headwinds in this market are strong and numerous. We have a lingering and maybe worsening pandemic, staggering unemployment numbers, and a contentious presidential campaign, made even more contentious because of our national reckoning about systemic racism. How does one account for such a strong real estate market, and when will that market soften?
First let’s look at our local numbers. In my July 9th column, I showed statistically how the market had surged in June. As I write this on Monday evening, there are 4,903 active listings within 20 miles of the State Capitol, but there are 7,720 listings under contract, 3,905 of which (or 50.6%) went under contract in 7 days or less. A total of 5,219 listings closed in the last 30 days, 2,679 of which (or 51.3%) went under contract in 7 days or less and 1,895 of which (or 36.3%) sold for above full price, likely with competing offers.
So, yes, we are still in a seller’s market — but how can that be, given all that’s going on?
To quote the realtor.com article, “The housing market is back — and then some.”
Nationally, according to realtor.com, median home prices rose 6.2% year-over-year for the week ending June 27th. According to REcolorado, the median sold price for listings within 20 miles of the State Capitol that same week was $440,000, with 49.9% of them selling in 7 days or less, compared to $418,000 for the same 7-day period a year ago, when 44.5% sold in 7 days or less. That’s a 5% increase in median price year-over-year.
To quote the realtor.com article, “Homes are selling faster than they did in 2019, when no one had heard of Covid-19. And bidding wars are back as first-time and trade-up buyers who have lost out on other homes slug it out.”
The contrast between this market and the market during the “Great Recession” of 2008 couldn’t be sharper. Back then, there was a glut of housing and few buyers. Today, the situation is reversed, with fewer listings and a glut of buyers. Because the 2008 crisis was caused by the subprime mortgage scandal, the glut of housing was made worse by a flood of foreclosures.
Quoting further from the realtor.com article, “To be sure, there are plenty of danger signs ahead in this economy, including continuing historic levels of unemployment and rising coronavirus infection rates in many parts of the country. But, for now, real estate is bouncing back much quicker than other bellwether industries. The reason: After months on hold, Americans are beginning to feel more confident about the idea of buying or selling a home.”
The article quoted a Fannie Mae survey of 1,000 participants, showing that 61% said it was a good time to buy and 41% said it was a good time to sell. And that survey was taken before mortgage rates dropped to under 3%, which happened just last week. As a result, we can expect the real estate market to be even more supercharged in the coming weeks. Already, mortgage applications for home purchases had risen 33.2% year over year in the week ending July 3rd, according to the Mortgage Bankers Association.
Lower interest rates mean lower mortgage payments by hundreds of dollars, which instantly increases the affordability of homes, and buyers understandably believe they are smart to buy now before the rates rise again, as they surely will.
The low interest rates also make the decision to buy more compelling for renters burdened by the still high cost of renting in the Denver market. This is particularly compelling for white-collar workers who were not furloughed or laid off during the pandemic and may have money in the bank for a down payment.
Another factor which I mentioned in my earlier column is the number of workers who started telecommuting because of the pandemic and whose employers said they could keep telecommuting even after it’s safe to return to the office. These people are in a buying mood as they look to move further from the congestion of downtown apartments or condos where going outside involves a greater risk of Covid-19 infection. They also saved a lot of money (as Rita and I did) by eating more home cooked meals because restaurants were closed. And Netflix costs a lot less than going out to the movies or the theatre, to say nothing about the savings on popcorn made at home or purchased at the supermarket!
Yet another factor is the increase in divorces and separations resulting from forced home confinement. I was amused to note the increase in TV commercials by divorce attorneys during April and May.
This beautiful custom ranch-style home in Brighton was built in 2015. It has fabulous mountain views and sits on a 42-acre lot that is fenced & cross fenced. It features 4 bedrooms, 3½ baths, 4,744 total square feet, a 3-car oversized attached garage, a pull-through 40’ x 64’ detached barn (see below) with RV hookups and loft, a Baltic stone water feature, open floor plan, hardwood floors, granite and marble countertops, all stainless steel appliances, a finished garden-level basement with rec room, wet bar, and pool table (included). There is a tiny home used as a gardener’s shed, natural gas, private well and septic. It is zoned agricultural and there is no HOA. There’s a security system, gated driveway, and professional landscaping and lighting. There are simply too many features to list, so please call listing agent Carrie Lovingier at 303-907-1278 for a private showing. More pictures and a narrated video tour can be found at www.BrightonRanchHome.info. Showings begin on Friday, July 24th.
If you are 55 or older, this home in the Village at McCoy Jensen is meant for you. The subdivision’s 41 patio homes form a close-knit community built around a single circular street with a wide common area and gazebo in the middle. Come in the morning and meet many of the neighbors taking their morning walk around the circle. Afternoon get togethers are also common! Each homeowner gets a hand-out with everyone’s name and the phone numbers of those willing to share it! This home is perfectly located at the far right corner of the subdivision with an expansive back yard (maintained by the HOA, of course). It has three bedrooms and three full or 3/4 bathrooms and 2,195 finished square feet of living space, plus 678 unfinished square feet in the basement. To fully appreciate this great home, see more pictures and watch a 7½-minute narrated video tour at www.LakewoodPatioHome.info, then call your agent or Jim Smith at 303-525-1851 to arrange a private showing. More pictures below…
One of the reasons I enjoy showing homes to buyers is that I get to educate them about home systems and how they work, as well as identify the sustainable and not-so-sustainable features of each home.
The agents at Golden Real Estate have a thorough understanding of home systems as a result of our combined decades of experience and hundreds of transactions. In addition, we have taken classes on energy efficiency, insulation, solar power and home construction which allow us to serve buyers better when we show them homes.
Together, for example, we toured the model homes at Richards Farms when they were under construction, where we learned, among other things, about that builder’s foam insulation process.
There are so many aspects of energy efficiency and sustainability. Everyone by now knows about solar photovoltaics — creating electricity from the sun. Our office has 20 kW of solar panels, but having solar power is only the beginning. It’s how efficiently you use that power that makes the difference.
Heating and cooling is the biggest user of energy in any home, and the number and variety of HVAC systems have become more extensive and more complicated, and we understand and can explain them. They include: gas forced air heating and compressor-based air conditioning (most common in Colorado and much of the country), hot water baseboard heat, hot water radiant floor heating, wall-mounted heating panels or strips, heat pump mini-splits for both heating and cooling, hybrid heat-pump with gas forced air (which Rita and I have in our home), ground-source heat pump for both heating and cooling (the “gold standard” of efficient heating and cooling) — and let’s not forget heating with wood or wood pellets!
Windows can vary greatly. Double-pane windows may be standard now, but a Colorado company, Alpen, has made a name for itself with triple-pane windows and now quadruple-pane windows. Recently I wrote about John Avenson’s Westminster home, in which some of his south-facing Alpen windows have micro-etching to divert sunlight toward the ceiling of his kitchen, a high-tech alternative to reflective window shelving, which we saw when we toured a newer building at the National Renewable Energy Laboratory.
Skylights are so 20th Century. Today’s modern replacement are sun tunnels (Solatube is a leading brand), which are great for illuminating interior rooms. Just last week I showed a home with five Solatubes in it, lighting up the living room and an interior bathroom amazingly well from the mid-day sun. My buyer didn’t realize they weren’t ceiling light fixtures until I pointed them out. (We have two sun tunnels in our home illuminating our windowless garage and laundry room, and we have four sun tunnels in the Golden Real Estate office. We don’t have to turn on any lights on sunny days!)
A knowledgeable agent can also point out passive solar features of a home, which others might not recognize. These include proper window configuration, wide overhangs above south-facing windows, thermal masses in south-facing sunrooms, and deciduous trees providing strategically positioned shade in the summer but allowing more sunlight in the winter. I like to see (and point out) cellular shades, especially vertical ones covering patio doors for cold-weather insulation.
Often I notice that the listing agent didn’t mention the features (such as the Solatubes) that my buyers and I recognize as selling points. Of course, when doing the narrated video tours of our own listings, my broker associates and I don’t miss the opportunity to point out those features. And, of course, we are sure to mention those features in the MLS listing.
Many agents miss the opportunity to write a separate description on the MLS for each individual room. It’s not a mandatory field, but it’s the best place to mention a room’s Solatube, heated floor, porcelain tile, hardwood or other feature.
A home inspection is the best investment that any home buyer can make, providing you base your decision on the qualifications of the inspector and not by cost alone. In Colorado, home inspectors are not licensed, so look for one like Jim Camp of Metropolitan Home Inspections, who is ASHI-certified. Not only might you find a problem that you could get the seller to fix, but you’ll also learn things you need to know about as the future owner of that home.
The inspector will also show you where the utility shut-offs are located and how to operate them, which can be important during an emergency.
The cost of an inspection varies from one inspector to the next and depends on the size of the home or possibly the purchase price. Expect to spend between $300 and $500 for the basic or standard inspection. Add-on services which I recommend include a test for radon gas ($100 to $150) and a sewer scope (also $100 to $150).
If a high level of radon gas (over 4.0 picocuries per liter) is detected, the buyer should demand that it be mitigated, which costs a minimum of $900 and as much as $2,000 if there is both a basement and a crawl space.
A sewer scope involves sending a camera through the piping from the house to where it enters the sewer line under your street. Sewer lines in older homes were built with clay pipes which are prone to root intrusion and collapse. If root intrusion is discovered, the seller will usually agree to have the sewer line cleaned and rescoped, and if there is a collapse or other break, the repair could cost several thousand dollars, so both tests are money well spent.
The general inspection should be scheduled as soon as possible to allow time for additional inspections as indicated. For example, the inspector may discover evidence of mold or mildew, termite infestation or structural issues, and you’ll need time to arrange those inspections.
In older (pre-1985) homes, it’s common to encounter a Federal Pacific Electric or Zinsco panel, which can cost $1,500 or more to replace. The inspector should recommend further evaluation and certification by a licensed electrician and recommend its replacement since FPE and Zinsco lost their UL endorsement due to breaker failures resulting in electrical fires. An inspector will test electrical outlets for correct polarity and will also check for ground-fault protection on outlets located within six feet of any water source, such as kitchens, bathrooms, unfinished basements, outdoors or in the garage, etc.
He (or she) will walk the roof if possible (even though it’s not required) to look for hail damage as well as proper sealing around chimneys, etc.
In this article, I have touched on only some of the many tests and inspections which make the money a buyer spends on professional inspection the best money he or she will spend.
Nothing has surprised us real estate professionals quite as much as how hot the market has been during the Covid-19 pandemic. Redfin, the brokerage with what I consider misleading TV ads, did an analysis of offers written by their own agents on MLS listings and found that over half of those offers faced competing offers from other agents.
Nationwide, the percentage of Redfin offers facing competition was 53.7% in June, up from 51.8% in May and 44% in April. Boston led the pack with 72.4% of offers facing competition during June, up from 67.2% in May.
The Denver market came in 12th nationally in terms of bidding wars, with 53% of offers facing competition, down from 55.6% in May. Of the top 12 metro areas, only Denver and Portland had lower percentages in June than in May.
If you’ve been wondering how Denver’s real estate market would make it through the pandemic, here’s an early answer: it’s doing great.
The chart below shows the record surge in contracts and sales. Contracts, which surged in May, surged further in June, along with a large jump in closings. (Statistics are for listings within a 25-mile radius of the state capitol building.)
The following table shows how the first six months of the past five years compare with each other in several key metrics, demonstrating among other things that the median days on the MLS has dropped as it has done in previous years from January through June, and that the average price per finished square foot has continued to rise year over year.
At Golden Real Estate, we have detected increased interest in relocating to Colorado from both coasts. The pandemic put apartment dwellers, in particular, in more fear of catching the virus, especially those dependent on elevators. Of course, we have apartment buildings in Denver, too, and we’re seeing people from there as well wanting to be “on the ground,” able to get outside without coming in close contact with others.
Not content with simply buying a detached single-family home, some buyers are looking to buy homes on acreage. Some are moving to the western slope.
All the after-effects of the pandemic are yet to be fully understood, so it should be an interesting rest of 2020. For example, permanent implementation of working from home could trigger an increased migration from city to countryside.
One thing is clear for now — that the real estate market is going to stay active and that it will be a seller’s market, although we have observed that overpriced homes are sitting on the market more than ever. When a home doesn’t sell within the first week, it’s important to lower the price right away instead of letting the listing languish on the MLS at its original listing price.