New Year, New Inventory?

New Year, New Inventory?

January 2022 Newsletter

A Community in Need

A Community in Need

It’s hard to put into words, the level of devastation caused by the Marshall Fire last week. Some people lost everything, and the road to recovery has just begun. Our friends and family in the affected communities need our support, our thoughts, and our prayers. The Boulder Office of Emergency Management is one of the best resources to stay up-to-date on everything that’s going on, as well as information about immediate needs and relief for those affected. Please forward this information to anyone of whom it may be of assistance.

New Year, New Inventory?

New Year, New Inventory?

2021 is finally behind us, and what a year it was. We saw home prices spike to amazing heights as a result of historically low interest rates and a frenzy of buyers entering the market. But as inventory continues to dwindle in most areas, will 2022 continue those trends?

 

Many experts are saying 2022 will be just as unpredictable as 2021 on a national scale – let’s take a look at the factors. A major influence on activity will be mortgage rates. Lawrence Yun, Chief Economist for the National Association of Realtors, says rates will likely climb to 3.7% by the end of 2022. While that’s still historically low, it will make a difference for some buyers as home prices are also predicted to rise. Why will prices likely rise? Buyer demand is going nowhere, especially in hot markets like Colorado. Combine that with persistently low inventory and lack of new construction, and there’s a chance we may see homes selling for way over asking, similar to what we saw this past spring and summer.

 

Between March and July last year, most areas in the Denver Metro saw incredible surges in the number of homes selling over list price, anywhere from 4% to almost 7% over asking price on average. The same goes for areas in Northern Colorado as well as Colorado Springs. This followed a very low inventory dip that occurred from December 2020 - April 2021. Then as inventory ticked up to the end of the year, we saw the percentage of closed to list price level-out. 

 

That same pattern may be repeating this year. As of last month, the month’s supply of inventory (how long in months it would take for all current inventory to sell at the current pace of the market) dipped lower than ever before, and has been steadily decreasing since September. Again, demand is going nowhere, and with a lagging supply of new builds coming into the market, 2022 could turn out very similar to 2021.

Monthly Market Snapshots

Monthly Market Snapshots

Denver-Metro---Dec-2021
Boulder-County---Dec-2021
Northern-Colorado---Dec-2021
Colorado-Springs---Dec-2021

Innovation that Gives Back

Innovation that Gives Back

You’ve probably heard the buzz around NFTs this past year. Most are seen as computer-generated images and characters that are selling for thousands, even hundreds of thousands of dollars. But the potential with NFTs is much greater. 

 

One amazing example comes from a company called New Story. This charity organization builds houses for families in need in countries like Mexico, El Salvdor, Haiti, and Bolivia, while also pioneering the 3D printing of homes. They’ve started their own NFT project called ‘House One Family Forever’. You can find them on one of the most commonly used trading platforms for NFTs: Open Sea. Each NFT/home is listed for 2 Ethereum, or around $8,000 USD. When purchased, one real home will be built for a family in need using 3D printing technology. 

 

New Story Charity

The applications for Blockchain and NFTs in real estate are endless, but this is a shining example that also blends in sustainability and giving back.

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