The Double Comma Club

Get me off this COVID-19 rollercoaster! Cases are resurging closing businesses that just opened while risking the recent good news of job creations and lower unemployment we saw from economic reopenings in May and June. The Fed is poised to act to keep rates low and urged lawmakers to accelerate the fourth stimulus package before programs end July 31st. Locally, Denver's housing market remains strong with growing pending home sales, almost full recovery of closed homes compared to 2019, and appreciating values due to scarce inventory. 

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Here are some points covered:

Metro Denver’s Resilient Housing Market  

The resiliency of our Denver Metro buyers is the theme of July’s DMAR Market Trends Report. New Listings were gobbled up as Pending Home Sales show strength growing 16% month over month - on top of May’s 115% surge. We saw Closed homes recover to within 11% of 2019’s year to date numbers, resulting in a difference of only 3000 homes sold this year compared to last year. Considering we sell an average of 57,500 homes a year, we’ve recovered to within half a month’s sold homes. The Median Closed Home Price recovered from its slight dip last month, landing at a 4.53% gain for our homeowners.

The market gains came at a cost: inventory. We know prices go up when supply is scarce as Months of Inventory dropped from two to one month with the biggest drop in the $1M+ homes going from 9.5 months to 4.36. $300 and $400K’s priced homes also saw their months of inventory cut in half as sellers stayed on the sidelines as confident buyers engaged in bidding wars. 

To say Active Inventory became scarce is an understatement and with an 11% decline month over month and 33% year over year - after an almost 20% year over year drop last month from 2019.

As the virus rampages throughout the nation and the economy attempt to recover, the housing market will be its guiding light, strong, stable, and willing to provide financial security to those who participate.

Your partner building wealth through real estate,

Nicole Rueth

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Interest rates are at an all-time low which means a lower monthly payment. But how much? If you are thinking of purchasing a home for $400,000 with 15% down at 4.25%, between taxes, mortgage interest, insurance, and principal, your monthly payment would be around $2,125. BUT that same home purchased at 3.25%, that would lower your payment to about $1,900. What are you going to do with that saved $225/month? If you put that saving BACK into your home, you'd pay off your mortgage 6 years earlier. This would also save you $41,000 in interest. Listen to the rest of this 3-minute tip to get more information.

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Nicole Rueth

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It's 2020 and we are all being challenged to think outside of the box. You have to put the wide lens on to make sure your plan of action encompasses everything you value and what makes your company unique. And when it comes to real estate, an industry based on connections, it's even more important. This week we are spending time with Jana Miller, Managing Broker of Live Urban Real Estate.

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Jana has a background that helped her be a fantastic leader for her team during a challenging time. When quarantine began she knew Live Urban had to be a place for information, direction and community, supporting not only within but industry-wide. During our time together, Jana shared how Live Urban stepped up and found new ways to engage.. which included their fun side!

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Nicole's guest is redT Homes CEO, Nathan Adams. He brings a unique perspective to the real estate market in the Denver Metro area because his firm's sweet spot is new construction. First, they covered the growing popularity of townhomes over condos because of shared spaces, including elevators. A townhome is your own germs, your front door is your own. 

Closings for his firm have gone way up to give them their best month in the 15-year history of their company.

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He credits part of this to his firm's ability to track the hidden inventory. When new condos and townhomes and homes are built, they don't release all of them at once to the market. They trickle them out in phases.

Because rates continue to be lower, we will continue to see people able to afford 10% more in housing prices than they were before.

He says they are looking into meeting the new needs of home buyers. They are looking for a home with private space - an office, even 6 x 6 to give them a door, privacy for when they work from home. They are looking for a property where they can build 800 - 1400 square foot 2 bedroom homes that still have one or two-car garage, high-end appliances, counters, smart home features, and that private space.

He recommends that agents keep up on zoning changes in your area to know what's coming soon, and perhaps a couple of years down the road.

Be sure to subscribe at the right so you never miss an episode. Find us in your favorite podcast apps, too.

Nicole Rueth

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Nicole asked Rylan Pyciak for his advice for the first time investor. He says, 

He's putting this in practice while fulfilling the requirements by Freddie Mac and Fannie Mae before adding his next property. His goal is to own five or six properties. 

A New Investor Story | It Really Is That Easy

Want to learn more? Join our Building an Investment Empire Class at https://bit.ly/37CyD7C 

Get to know Lori Pace who is way more than an associate broker at Kentwood. This movement leader, compassionate, talented agent talks with Nicole on this Agent Talk episode on The Double Comma Club. Here's a taste, "What I did differently last year changed my business significantly. I stopped focusing on the revenue and started focusing on the relationship. And by me being me, my business almost doubled because I stopped pretending that I was just a Realtor because I am not just a Realtor. I think a lot of us do this, we pretend that we don't have families. We pretend that we don't have loss. We pretend that everything is okay. I stopped pretending and showing up and being real about it.

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When I started going after my passion, the revenue showed up. I don't think there was once that I had to advertise a listing or what I did. I was doing what I normally do in my life, and things started to change as I was doing more things business. I was doing life, and I was doing what was important to me, and somehow the power of attraction worked out. Whereas I was more excited about my mission in life and my relationship."

Nicole Rueth

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Nicole's guest today is Nilmini Hecox. She left us with an interesting perspective as an immigrant from Sri Lanka, turned real estate agent. Our real estate culture here stuns her. As she has become more vulnerable and personal with her clients, she's gained so many insights and stronger relationships. Nilmini says, "The service I offer is about safety and security, not bricks and sticks. We are in the midst of this wave of change that may never reach the shore." Please listen to this 10-minute episode of her story and what she has done to ride this wave of change for the benefit of her clients.

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Your partner in building wealth through Real Estate,

Nicole Rueth

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2020 has been a year of historical proportions (what else could possibly happen?) and it’s changed the real estate market. Buyers and sellers alike are no longer only asking, “Do we love this home,” but are now asking questions like, “Is it big enough to work from home?” “Does it provide opportunity and space for my children to play if schooling at home?” And, ultimately, “Is it safe?”

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These shifts reveal the new buyer psyche. For as much as the market remains a seller’s market, current events are changing buyer behavior which will impact limited inventories. Read the rest of the blog at https://theruethteam.com/Market-Trends 

Your partner in building wealth through Real Estate,

Nicole Rueth

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When everyone is looking for a shiny penny, the technology to bring in more business, Euan is focusing on the basics. "At the end of the day, you are your business." You've got to KNOW how you are approaching your business, the value you are bringing to your clients, and your differentiator. If you can't express the simple 'why' you do what you do; you can't serve the people you were meant to serve. This week we visit with Euan Graham, DMAR Chair, Realtor Madison and Company and get the simple perspective from an Immigrant.

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Nicole Rueth

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The economy is finding it's footing as people move from safer at home to back to work.. as restaurants and stores begin to open and some sort of new normal takes shape. Real estate is bouncing back with a resurgence in demand and opportunities ... even in this "recession". The nation as a whole is suffering shortages, and demand is ramping up so prices are going up and up! Key indicators suggested before pandemic there would be higher demand, but because unemployment has skyrocketed, the market dropped in April. But get the full story here.

Nicole Rueth