Vacancy Rate LOW, Avg Rent UP!

YCRE Price Change Map

The latest YCRE Price Change Map has just been published. 
Please let me know if you would like a larger copy or a map of an area that is not shown here!

Green are the neighborhoods that have seen an increase of over 15% in value over the past year.

October Market Update

Although the inventory in the Denver market continues to be low,
the average sold price for single family homes has increased 8% from last year.

Does it make sense to invest in Real Estate?

I attended a class earlier this week on investing in real estate for the long term.  This graphic quickly caught my attention:

A quick, simple comparison of investing $100,000 for 30 years in these 6 different ways. 

The red line below is purchasing a $100,000 condo/home with cash.

The grey line is using that same $100,000 to purchase 4 properties – financed.  For example - $25,000 down on each of 4  - $100,000 properties.

Graphic prepared by YCRE based on “conservative” assumptions and analysis of historical trends. 
For general information only.

Let me know if you have any questions or would like to see more details from this presentation. 

As an investor and real estate agent, this has confirmed (once again), that I will continue to look for great investment properties!.

YCRE Quarterly Meeting

I recently attend the YCRE Quarterly meeting where Charles Roberts presented the current trends in the Denver Real Estate market.  I found both of the charts below interesting and encouraging:

Inventory Levels are still low - the current levels for 2014 are labeled in the bottom right corner - still about 1/3 of what they should be for a "healthy" market.

Average home price in Denver continues to increase - the values for 2014 are plotted in pen ...

Note:  If you would like a complete copy of the YCRE Real Estate Trends booklet 

for the 2nd quarter, please let me know ...

A couple additional comments from the owners of YCRE:

• Although the local media is talking about the possibilities of a new "housing bubble", they feel strongly that this is not possible with such a low inventory of homes for sale.
• The price increase of single family homes over the past 12 months has been about 7% - just a little higher than the average over the past 45 years of 6% increase.
• Investors continue to purchase 25-30% of all real estate transactions in Denver ... this number has remained constant over the past several years.
• Both owners believe that there is most likely a strong market in Denver for atleast the next 2 years ... however, they are not willing to predict past that! 

August Market Update

What is happening in your neighborhood?

The above chart shows what is happening in the real estate world in many popular Denver neighborhoods.  The second column shows the change in the number of sold properties compared to a year ago - the third shows the difference in sales price.

Let me know if you have questions or would like the information on your neighborhood!

July Market Snapshot

5280 Magazine

The May issue of 5280 Magazine has a great summary of general information of

 Denver neighborhoods and the state of the RE market in each ... 

let me know if you would like a copy of the article!

June Market Update!

The single family home inventory in Denver continues to increase a little while the number of days a home stays on the market shows that the homes are continuing to sell quickly this season.

Note:  The information above was provided by YCRE.  The first "red" arrow should be "green" - there was a 14% increase in the amount of Active homes on the market compared to last month.

Is a home in Denver Affordable?

The Denver Single Family Housing Affordability Index is a great tool to understand our housing market from a historical perspective. 

This index combines the regional household income trends with interest rates and local housing prices to calculate the proportion of local households that can afford the median priced house. From a buyer’s perspective, the higher the index the more affordable homes are, the lower the index the less affordable homes are.

Here’s how movements in the three variables affect the Index:

• Interest rates - if interest rates rise, the Index falls
• Home prices - if home prices rise, the Index falls
• Average income - if the average income rises, the Index rises