Happy Thanksgiving! What We at Golden Real Estate Are Grateful for

Thanksgiving has always been my favorite holiday. I’ve long known the value of practicing gratitude, and Thanksgiving reminds each of us to reflect on our blessings, both individually and as members of our larger communities.

And since these columns are published on Thursdays, it has become a tradition for me to pause on this particular Thursday  to write about my sincere gratitude as an individual, as a husband and step-father, as a Realtor, and as an American.

So, first of all, I’m grateful for having this platform to share with fellow real estate professionals and the general public what I know (and continue to learn) about real estate. Yes, I pay for it, but I have been rewarded greatly for the effort, both in terms of financial gain from the business it generates for me and my broker associates, and by the satisfaction it gives me from indulging in my first and favorite profession, journalism.

To be political for just a moment — and it’s sad to think this is political — I’m grateful for the mainstream media which has weathered four years of assault without forsaking journalistic standards. A free press is essential to our democracy, speaking truth to power unflinchingly.

Naturally, all of us at Golden Real Estate are grateful for those buyers and sellers who have entrusted us with their real estate needs. We know that the sale or purchase of a home is often our clients’ biggest single financial transaction, and we don’t take that responsibility lightly.

Real estate is an interesting profession. For most of us, it was not our first profession. In my case, I didn’t even think of becoming a real estate agent until my 50s. When I earned my license, I discovered several interesting facts about the profession, including that the median age of licensees was my age at the time, 54.

I also learned that it takes several years to become successful in real estate and that the average real estate agent has only two or three closings a year, not enough to make a good living. The majority of new agents give up in their first or second year, having wasted money they could ill afford to lose on software, signs, advertising, licensing and association fees, errors and omissions insurance and more.

I’m grateful when I have the opportunity to educate prospective agents about the difficulty of breaking into this profession and can save them the heartbreak of a lost year or two. But I’m also grateful when I am able to help our own broker associates succeed through the leads this column, our website, and our social media attract for us. As broker/owner, I also serve as a mentor and advisor to them, which I find quite satisfying.

I’m grateful for our MLS (Multiple Listing Service), REcolorado, which has made terrific strides toward being one of the best MLSs in the nation. I’m privileged to represent the Denver Metro Association of Realtors (DMAR) on the Rules & Regulations Committee, providing me with insights I’m then able to share in this space.

DMAR, too, has made great strides under its long-time executive director, Ann Turner. I’m grateful to her and the many Realtors who volunteer on DMAR committees, contributing to the high ethics and professionalism of our industry.

Not all real estate agents are members of the Realtor association, but they all benefit from the work that these associations do. We can all be grateful for the work of the National Association of Realtors, to which all the local Realtor associations belong. From its Washington, DC, office, it lobbies Congress to protect property rights and to fend off legislation that is harmful to our profession and in turn to all property owners.

Denver’s Realtor Association Reports That October Listings & Sales Broke 22 Records

     The Denver Metro Realtor Association (DMAR) has just released a report by its Market Trends Committee which noted that 22 different records were broken during October. Below is their summary, which is based on statistics from REcolorado, the Denver MLS. These statistics are for the entire MLS which lists property statewide but primarily the Denver metro area. Below is my own analysis limited to the Jeffco statistics from the same MLS.

ACTIVE LISTINGS

     (All Residential) 4,821 represents the lowest October on record. The previous low for October was 6,731 in 2016.

     (Detached) 2,643 represents the lowest October on record. The previous low for October was 4,720 in 2017.

CLOSE PRICE — MEDIAN

(All Residential) $475,000 represents the highest amount on record. The previous record was $460,000 recorded in July, August and September of this year.

(Detached) $519,900 represents the highest amount on record. The previous record was $510,000 in September of this year.

(Attached) $339,425 represents the highest amount on record. The previous record was $335,000 in September of this year.

CLOSE PRICE — AVERAGE 

(All Residential) $561,999 represents the highest amount on record. The previous record was $540,890 recorded in July 2020.

(Detached) $625,100 represents the highest amount on record. The previous record was $602,264 in August 2020.

(Attached) $393,733 represents the highest amount on record. The previous record was $384,902 in September 2020.

DAYS IN MLS — MEDIAN

(All Residential) 6 days represents the lowest October on record. The previous low for October was in 2015 of 10 days.

(Detached) 6 days represents the lowest October on record. The previous low for October was in 2015 of 11 days.

DAYS IN MLS — AVERAGE

(All Residential) 24 days represents the lowest October on record. The previous low for October was in 2015 of 25 days.

(Detached) 23 days represents the lowest October on record. The previous low for October was in 2015 of 27 days.

NEW LISTINGS

(Attached) 2,022 represents the highest October on record. The previous high for October was 1,657 in 2019.

CLOSED LISTINGS

(All Residential) 5,984 closed transactions represent the highest October on record. The previous high for October was 5,144 in 2019.

(Detached) 4,352 closed transactions represent the highest October on record. The previous high was 3,709 in 2019.

(Attached) 1,639 closed transactions represent the highest October on record. The previous high was 1,461 in 2017.

MONTHS OF INVENTORY

(All Residential) 0.81 months represents the lowest number on record. The previous record low was 0.91 months of inventory in September 2020.

(Detached) 0.61 months represents the lowest amount on record. The previous record was 0.72 months of inventory in September 2020.

PENDING

(All Residential) 6,141 pending transactions represent the highest October on record. The previous high for October was 6,062 in 2017.

(Detached) 4,337 pending transactions represent the highest October on record. The previous high was 4,330 in 2017.

(Attached) 1,804 pending transactions represent the highest October on record. The previous high was 1,732 in 2017.

SALES VOLUME

(All Residential) $3,363,002,016 sales volume represents the highest October on record. The previous high for October was $2,487,936,752 in 2019. July 2020 holds the all-time record of $3,965,805,480.

Of particular interest, in my opinion, is the difference between the median and average “Days in MLS.” While half the listings went under contract in 6 days or less, the average was 23 or 24 days. That  gap is a reflection of how many homes are overpriced and linger on the market a long time, raising the average DIM when they finally go under contract. A search of currently pending MLS listings shows that 983 of them were “Active” for 100 days or longer before finally going under contract. Compare that to 4,097 listings that went under contract in 1 to 6 days.