Is the Market Turning Over a New Leaf?

September 2021 Newsletter

From the shifting colors of the leaves to the crisp morning air, October is traditionally a period of change. It also can be one of the very best times to buy a home, as it falls right in between back-to-school season and the holidays. This season usually ushers in a slowdown to overall market activity, when sellers may be more apt to negotiate and buyers may find more inventory than previous months. For instance, in 2018, Denver County’s median sale price for single-family homes went from $500k in May to $440k by September, and in 2019 that number went from $515k in June to $480k in October.

 

Make no mistake - our Colorado market is still very hot compared to historical averages. Many homes continue to sell quickly and for over list price. But the most recent data points to trends that, once again, October is an ideal buying time.

 

In most markets along the Front Range, the past few months have seen median sale prices slide from their peak between May and July. For instance, Denver County’s median sale price was $660,000 in June for a single-family home, but in August had dropped to $629,000. Another key data point is the percentage of closed price to list price. In Boulder County, the median percentage of closed to list price was 106.5% in May, but dropped to 100.0% by the end of August. And in Colorado Springs, we saw this percentage go from 105.1% in May to 103.0% at the end of August.

 

Again, the market still has plenty of demand, boasting double-digit appreciation year-over-year in most areas. However, this seasonal dip in prices and competition creates a window of opportunity for buyers. Compared to the sizzling rise we’ve seen over the past year in Colorado’s real estate market, these past couple of months have cooled down slightly to create sort of a ‘discount’ buying period.

 

If you’ve been thinking about buying, please give one of our 8z agents a call! It’s the perfect time to move before the first snow falls. Now let’s take a look at your local market stats compared to last year.

 

How NFTs Could Change Real Estate

Blockchain technology and cryptocurrency. These have been trending topics of late, especially because of the potential changes they represent for major industries today, and real estate is the next to be impacted.

 

You may have heard of NFTs, or non-fungible tokens. These are ‘tokens’ issued on a blockchain, much like a cryptocurrency such as Bitcoin. The difference is that these are not ‘fungible’, which means they are unique instead of being identical and interchangeable with each other, like cryptocurrency. As of now, they’re mainly used for selling digital forms of art - preventing fraud because that form of art is so easily copied.

 

Now, NFTs are also being utilized in real estate to represent ownership of physical items, like property. With fractional ownership, for example, property owners can divide and sell off part of their property to a large number of small investors by issuing tokens on the blockchain. Then those investors would hold the tokens, and in return, receive a rental income for doing so - profit split on capital appreciation upon sale or both.

 

This allows people to buy and sell fractional ownership in rental properties, which opens up the world of real estate investing to a lot more people. In turn, this creates more options for those that need to unlock equity without borrowing or moving.

 

But like all new technologies, there is a level of risk involved and a lot of questions. Where would the legal right to control the property lie if it’s split up into 1,000 NFTs? Could one holder force others to sell if they owned enough tokens? There’s a lot of variables and unknowns, but also potential. NFTs in the real estate space may be a thing of the future, but it’s important to be aware of them and how they may impact the industry.

The Fall Colors Have Arrived

It's officially October, and that means leaf-peeping season. Here in Colorado, this is a magical time as the changing leaves illuminate our green mountain valleys. And while there’s no shortage of amazing places to view the fall colors, we wanted to make sure that you know the most scenic spots. Below you’ll find a list of the highest-rated destinations to capture the beauty of Colorado fall, enjoy! Also, if you’re concerned about dealing with the crowds of fellow foliage enthusiasts, consider going on a weekday evening - there will be less traffic, and better viewing opportunities.

Scenic Million dollar high way in San Juan mountains

Within 1 Hour of Denver

  • Guanella Pass
  • Peak to Peak Highway
  • Rocky Mountain National Park
  • Winter Park
  • Kenosha Pass

 

Within 2 Hours of Denver

  • Vail
  • Tennessee Pass
  • Breckenridge
  • Hoosier Pass
  • Fairplay
  • Grand Lake

 

Within 3-4 Hours of Denver

  • Steamboat
  • Rabbit Ears Pass
  • Buena Vista
  • Aspen
  • Independence Pass
  • Monarch Pass

 

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