April 2020: COVID-19 Impact On Real Estate
Surreal…How COVID-19 Impacted Our Denver Real Estate Market
Describing our real estate market’s last month is a little challenging. In April, activity certainly slowed down as clients’ health was our number one priority. Protecting our community from the spread of COVID-19 was critical. Yet even in a pandemic, people need to move, so Colorado permitted real estate services to continue. So our whole industry adapted to safely help people refinance and purchase homes using video conferencing, virtual tours, electronic file processing, and even curbside closings. All in all, it paid off (source: DMAR’s May Monthly Market Trends Report):
- 4,679 new listings still came on the market (about -30% month-over-month / -38% year-over-year)
- 3,280 homes went under contract (-29% month-over-month / -46% year-over-year)
- 3,603 properties successfully closed (-24% month-over-month / -31% year-over-year)
When the pandemic started in March, a surge of sellers took their homes off the market. It is encouraging to see more homes remained available April, as we finished the month with 6,855 listings (4,576 single-family homes, 2,279 condos/townhomes). After all, our Denver metro area remains a high-demand market. When showings were allowed again on April 27th, buyers scheduled roughly 3,500 appointments (a record-high for a Monday so far this year).
As Denver metro counties slowly lift restrictions and people settle into this “new norm,” we’ll likely see more activity and opportunities. If you are thinking about buying, I am ready to help you expertly navigate every step of the process.
If you have any questions or want to start discussing your plans, I’m available by text, phone, email, and video conferencing. Take care of yourself.
Michelle Oddo
Senior Mortgage Banker & Branch Manager
M (303) 961-6906
O (720) 738-1081
michelle.oddo@goluminate.com
March 2020 Market Snapshot
Real Estate Remains An Essential Service
What a surreal month it’s been for our market. As we geared up for another spring frenzy, our real estate industry contended with rapid changes and increased uncertainty.
If you haven’t heard, Governor Polis’ Stay-at-Home Order deemed real estate an ‘Essential Service.’ It was a massive relief for many of our buyers and homeowners wanting to refinance. Our clients’ health and safety is a primary focus, so we’ve adjusted our operations according to CDC’s guidelines:
- No-Contact Transactions – closings are being done by mail or curbside.
- Virtual tours, Zoom, and FaceTime are part of our everyday tools.
So across the metro area, real estate continued (source: DMAR Real Estate Market Trends Report):
- New Listings: 30% more homes came on the market than in February. While a portion of sellers withdrew their listings towards the end of the month, our inventory remained solid.
- Sold Homes: 8% more homes went under contract and 12% more homes sold.
- Average Days on Market: Sellers accepted buyers’ offers 24% faster (29 days vs. 38 in February).
- Sales Price was a record-breaking $513,526.
The demand for listings remains high and interest rates remain low. We in the industry are adjusting our processes to provide you the best care. After all, as real estate professionals, adaptability is one of our biggest strengths.
Virtual Tour Lender Credit
During this time of Coronavirus, if you are interested in buying a home but just want to do a virtual tour of a home and make an offer, we are making a special offer to you. We will pay for your appraisal ($610). It’s a new era and we have to adapt! View our coupon here.
Call the Oddo Group at Luminate Home Loans in Littleton, CO.
10 Ways to Get More Listings in a Low Inventory Market!
You’re invited to join us for brunch and learn 10 Ways to Get More Listings in a Low Inventory Market!
Hosted by Michelle Oddo at Luminate Home Loans and Pam Giarratano, Sr. Account Manager at First Integrity Title Company.
View event brochure by clicking here: BrunchandLearn
Register Here: https://events.r20.constantcontact.com/register/eventReg?oeidk=a07egvlfsoqa59b7360&oseq=&c=&ch=
Feb 2020 Market Snapshot
Our Denver Market Was Immune!
Well…we certainly are fortunate to live in the Metro Denver area, aren’t we? Amid the stock market’s performance, coronavirus fears, and February’s nearly record-breaking snowfall, buyers and sellers were determined to get moving:
– Homes flew off the market twice as fast as January (12 Days on the Market – wow)!
– More transactions closed thanks to early-bird buyers and sellers.
– On average, sellers got a slightly better return as the Sold Price increased (single-family homes bumped up to $544,054 – that’s +2.5%).
We had 5.5% more listings enter the market (over 5,000 homes) in February than January, but with so many buyers ready to purchase, homes were quickly snatched up. We actually finished the month with slightly fewer properties for sale.
These market trends + spring’s arrival = a strong, steady real estate market. The demand for homes will continue giving sellers the advantage (except in the $1 million+ market, which is quite balanced in supply and need). And with our record-low mortgage rates right now, buyers have an opportunity to save more money.
I’d love to answer your questions about the market and chat about your goals, plans, and needs. Feel free to shoot me a text, email, or call me anytime.
January 2020 Denver Real Estate Market Stats
Going, going, GONE!
Both sellers and buyers were ready for January! We had over 4,800 new listings come on the market (that’s 89% more than in December). However, you wouldn’t know this by our end-of-month stat: 4,900 homes went under contract by the end of the month, so we had slightly less inventory at the beginning of February.
With that big dip in transactions over the holidays, 34% fewer closings happened in January. No doubt that stat will see a big boost next month thanks to the surge of activity. Yet we were still short on inventory, so the average sales price remained steady for single-family homes and condos.
- Most of the single-family home sales in January were in the price range of $500k – $749,999 (our premier market).
- The largest selection of condos was priced between the $300k to $400k.
- Buyers with the most negotiation power were purchasing properties over $1 million (our luxury market).
- It remained a strong seller’s market for all of the price ranges under $1 million.
But buyers are hoping the early bird gets the worm. With such low mortgage interest rates and our occasionally warm days, the Denver-area housing market has heated up well before spring. So homeowners can prepare to list their homes as soon as possible. We are more than ready for you!
Please contact me with all of your real estate questions. It’s my pleasure to strategize plans for my clients. I’d love to hear about your needs so we can craft the best real estate experience for you!
Michelle Oddo
Senior Mortgage Banker & Branch Manager
M (303) 961-6906
O (720) 738-1081
michelle.oddo@goluminate.com
*Source: DMAR monthly market trends report.
Reverse Mortgage 101
Reverse Mortgages have suffered from misconceptions for far too long. Tim Oddo would like to dispel a few of those myths today.
What is a Reverse Mortgage? A HECM Reverse Mortgage is a federally regulated program for homeowners, aged 62 and older. It allows the equity in your home to pay you rather than you paying for the home.
H…E…C…M or HECM stands for Home Equity Conversion Mortgage. It is a federally insured and guaranteed program. The HECM Reverse Mortgage is a safe way for you to access a portion of the equity in your home without ever making a MONTHLY mortgage payment.
Why is this safe for Senior Homeowners? No matter what happens in the economy, how much money you receive, or how long you live in your home you will never be required to make a monthly mortgage payment. In addition, no matter what happens to the value of your home, you have guaranteed access to your money.
A frequent question I get is…what happens if years into the future your loan amount exceeds the value of your home? Answer, your Reverse Mortgage will continue – thanks to the FHA federal insurance. The line of credit will still be available and monthly disbursements you may have set up, will still be sent to you.
Probably the biggest misconception surrounding Reverse Mortgages is who owns my home if I take out a Reverse Mortgage? You own your home, and you remain on title, not the lender. However you do pledge the home as collateral just as you do on a traditional forward mortgage.
Furthermore, upon your passing, the home goes to your estate – not to the bank. And then your estate decides what to do with your home.
Reverse Mortgages still conjure up negative feelings for many, but today’s Reverse Mortgages are highly regulated by state and Federal laws to make them safe and to protect you!
Reverse Mortgage 101:
• You always retain title to your home
• A HECM Reverse Mortgage Loan creates more monthly cash flow
• Fees and costs are federally regulated
A Reverse Mortgage simply stated allows a Senior to use their home to stay in their home and is a tool if used responsibly that can actually enhance an overall retirement income plan.
Finally, a Reverse Mortgage should be viewed as a method for responsible retirees to create liquidity from AN OTHERWISE ill-liquid asset, which in turn can create new options that support a more efficient and enhanced retirement income strategy.
Visit the No Monthly Mortgage website to learn more or contact Tim Oddo.
Certified Divorce Lending Professional
Divorce, Real Estate & Mortgage Financing is an issue when you are separating or getting a divorce. Whether refinancing your home after a divorce, or you are going to to purchase a new home, involving a Certified Divorce Lending Professional is important.
As a Certified Divorce Lending Professional in Littleton Colorado, I specialize in working with clients that are separating or going through a divorce situation as well as family law attorneys and financial planners.
I bring expertise of the connection between Law, Tax, and Mortgage Financing Strategies as they all relate to real estate and divorce.
If you have questions about alimony, child support, divorce buyouts or any other divorce or legal separation concerns, please give me a call.
Michelle Oddo is a top mortgage producer at Luminate Home Loans in Littleton Colorado with a proven track record. She’s like to help you in this time of transition.
Michelle Oddo: 303-961-6906
michelle.oddo@goluminate.com
Are You Home Equity Rich?
Equity is the market value of your home minus what you owe. Denver home prices are shooting up , boosting overall home equity levels. Rising home prices have Denver homeowners sitting on potential cash. That’s good news for homeowners. And it’s another good reason to become one. Tap into your home equity for the right reasons. Pay for a remodel that reinvests money back into your home and increases your resale value. Use the equity to move into a home which better meets your needs.
Give us a call and let’s discuss your situation.
Michelle Oddo: 303-961-6906
michelle.oddo@goluminate.com
Real Estate Market Seasonal Shifts with Some Surprises!
Our Denver real estate market certainly keeps us on our mistle-toes!
This time last year, we had a nice increase in residential listings. While we were (still are) hoping for more housing inventory, we’ve seen a decline for the third month in a row. It’s not unusual for our market to take a “holiday slumber.” I just know several home buyers hunting for a new home – even now!
But while our seasonal decline has impacted last month’s closings and transactions, we still discovered some surprises under the tree:
– Days on the Market slowed: Even in a tighter market, on average, buyers took their time to find the right home.
– Sold Price increased: Many sellers got a slightly higher return in November. The average single-family home closed at $537,624 and the average condo was $365,856.
Yes, a few months of lighter inventory does shift our market more in favor of our sellers, but the larger, annual picture reveals our market’s “balancing:”
– We still have over 2% more homes sold for all of 2019 than we did in 2018.
– It took homes 9% more time to go under contract last month than this time last year.
– Our average home price is up by almost 7%, year-over-year ( Source: DMAR Monthly Report).
Buyers wanting to purchase a new home in the new year need an excellent strategy and team of professionals. The new year may be the right time for you to get the ball rolling.
Happy holidays everyone! Text, call or email me during the holidays with any of your questions.
michelle.oddo@goluminate.com
