Blog • For Buyers & Sellers • November 18, 2022

Bargaining Power

by Rondi duPont

Buyers (finally) have more bargaining power. For many, many months sellers had the distinct upper-hand and commanded above-list price offers. Bidding wars were the norm. Buyers had virtually no negotiating power.The numbers show that the dynamic has absolutely changed.The ratio of the final sales price to the list price is now at 98.1%.From April 2020 to July 2022, the ratio was at or higher than 100%.The peak was in April 2022 at 104.3%.In the span of just a few months, sellers have gone from multiple, over-list price offers to expecting to come off their list price.

Blog • Fun Facts • October 14, 2022

Halfway Check

by Rondi duPont

This is a market which is changing quickly. We are studying the numbers every day so we can be clear about where the market is heading.

Here is a check on the market halfway through October.

Compared to last October…

Available inventory is up 73% in Northern Colorado and up 112% in Metro Denver. This is significant for buyers who, for years, were challenged with limited selection.
Number of closed transactions is down 50% in Northern Colorado and 41% in Metro Denver. This reflects the fact that fewer buyers are active right now given higher interest rates.

Prices continue to be higher than last year. They are up 12% in Northern Colorado and 13% in Metro Denver. We don’t expect double-digit increases to continue, but don’t expect anything like a price crash.

Blog • Fun Facts • September 9, 2022

Best Places

by Rondi duPont

U.S. News & World Report just released their ‘Best Places to Live’ rankings and two Colorado cities made the top five list.

They rank the 150 most populated metropolitan areas on criteria such as employment, quality of life, and strength of the housing market.

Here are the top 5:

1. Huntsville, AL

2. Colorado Springs, CO

3. Green Bay, WI

4. Boulder, CO

5. San Jose, CA

Blog • Fun Facts • July 22, 2022

More Days

by Rondi duPont

A stat that we have expected to change is finally changing.

“Days on Market” measures how long it takes for new listings to sell.

Over the last two years this stat plummeted to levels we have never seen before.

In the height of the market frenzy a year ago, properties were taking 7 days or less to sell on average.

Now, with the market cooling, Days on Market is back into double-digits.

Northern Colorado is at 20 days, a 54% increase over last year.

Metro Denver is at 12 days which is a 50% increase.

Blog • June 17, 2022

What the Numbers Say

by Rondi duPont

During a time of varying opinions and heavy speculation about the Front Range real estate market, let’s see what the actual numbers are telling us:

Inventory is up significantly year over year:

Larimer County = +48%
Weld County = +52%
Metro Denver = +74%

However, supply is still low as measured by months of inventory:

Larimer County = 1.1 Months
Weld County = 1 Month
Metro Denver = 1 Month

Transaction count is down as the pace of sales is slowing:

Larimer County = -24%
Weld County = -15%
Metro Denver = -19%

Yet, average prices are still up versus last year:

Larimer County = +18%
Weld County = +10%
Metro Denver = +14%

Blog • June 13, 2022

The Best News

by Rondi duPont

The best news in a long time has finally arrived for buyers.

Inventory is up, frenzy is down.

Buyers who were frustrated, confused and disappointed by the market a few months ago are now coming back to find a much more reasonable environment.

Demand is still high for sure. However, the intense, frenzied competition has subsided.

There is now room to breathe because there is more selection.

Here is how inventory has increased along the Front Range versus the same time a year ago:

Larimer County = 28%

Weld County = 19%

Metro Denver = 35%

These are significant increases and a trend we expect to continue.

Blog • Fun Facts • June 3, 2022

Timber!

by Rondi duPont

A positive outcome of the cooling housing market is lower lumber prices.

Lumber is now priced at $605 per thousand board feet. This is a new low for 2022.

Prices for lumber are now down 47% for the year and are well below the 2021 peak of $1,733 per thousand board feet.

What’s causing this? Higher mortgage rates have slowed the pace of new home sales and remodeling projects.

Most experts believe that lumber prices will fall even further during the remainder of the year.

Blog • Fun Facts • May 6, 2022

Delinquent Indicator

by Rondi duPont

A leading indicator of the health of any real estate market is Mortgage Delinquencies.

Specifically, the percentage of mortgages which are at least 30 days delinquent can foretell the amount of distressed properties that may hit the market in the future.

The most recent research shows that only 4.11% of all loans are delinquent.

This number has dropped for seven quarters in a row and is now at its lowest level since the fourth quarter of 2019 (which was the lowest ever in 20 years).

It is worth noting that the delinquency rate in the years leading up to the housing bubble hovered between 5.5% to 6.0%.

Based on this data, the likelihood of a foreclosure surge or a glut of distressed properties hitting the market is minimal.

Blog • February 24, 2022

5 Ways to Create a Sustainable Kitchen

by Rondi duPont

In many ways, the kitchen is the heart of a home. All the time spent making delicious food, sharing recipes, and enjoying meals with loved ones gives it a central role in home life. A consequence of the time spent in the kitchen is the creation of waste. But by adopting more sustainable practices in the kitchen, you can reduce waste and make your home more eco-friendly. Here are five ways you can create a sustainable kitchen.

5 Ways to Create a Sustainable Kitchen

1. Cut Down on Food Waste

It’s no secret that a certain portion of food always seems to go to waste, but how can you avoid throwing away perfectly edible food items? It starts with being intentional about your grocery shopping. This helps to prevent overbuying and will give you a better chance of cutting down your food waste. Food preservation is key, as well. Invest in high-quality, reusable containers to prevent food from rotting, wilting, or expiring before you intend to cook it.

2. Choose Energy-Efficient Appliances

Kitchen appliances generate a significant amount of power. By using an energy-efficient refrigerator, freezer, and/or dishwasher, you can reduce the overall energy consumption of your household. When deciding on which appliance to purchase, the most sustainable choice you can make is the one you plan on sticking with for a long time. When deciding on a gas versus an electric range, know the pros and cons of each option before making a final decision.

A young man and a woman take care of their kitchen herbs and houseplants.

Image Source: Getty Images – Image Credit: Pekic

3. Reusable Materials

Getting more uses out of the items in your kitchen will help make your household more environmentally conscious. Reusable kitchen towels are an eco-friendly replacement for paper towels when you’re cooking, wiping down your counters, or doing dishes. Using reusable grocery bags is an effective way to transport groceries sustainably. It will also help keep your kitchen organized by avoiding a plastic or paper bag pile-up under your sink. This line of reusable thinking in the kitchen can even extend to design. If you’re looking to give your kitchen a makeover while keeping sustainability in mind, consider incorporating reclaimed wood, sustainably-sourced countertops, or natural materials like bamboo.

4. Use Natural or Organic Cleaning Products

Creating a sustainable kitchen isn’t just about reducing food waste and choosing reusable materials. By using organic and/or natural cleaning products, you can ensure that your cleaning practices are sustainable as well. Using natural cleaners, like baking soda and vinegar, can also create less waste when you repurpose jars and bottles to create your preferred solution. Buy ingredients in bulk, then re-purpose old spray bottles and use towels instead of paper products to clean. Certain conventional cleaning products with synthetic chemicals can negatively impact the air quality in your home, which can have harmful effects on your health, especially if you have respiratory sensitivities.

5. Be Mindful About Water Usage

Neglecting to monitor your water usage is a slippery slope. Not only will using too much water increase the overall waste output of your home, but it will also increase your water bill. Be mindful about using only the required amount of water for cooking, do your best to avoid leaving the faucet running, and if there is a drip, fix it as quickly as you can. Using too much water can also strain your home’s water systems, putting your pipes at risk of bursting. Tempering your water usage can help to prevent water damage and the high costs that come with it.

Going zero waste doesn’t have to be expensive. Try first to extend the life of the things you already have like plastic bottles and textiles. For more information on how you can adopt sustainable practices at home, read our guide to going low-to-zero waste:

A Guide to Going Low-to-Zero Waste

Blog • For Sellers • February 14, 2022

Should I Remodel or Sell My Home As Is?

by Rondi duPont

Homeowners who are preparing to sell are often faced with a dilemma about whether to remodel or sell their home in its current state. Each approach has its respective advantages and disadvantages. If you decide to remodel your home, it will likely sell for more; but the increased selling price will come at the cost of financing the remodeling projects. If you decide to sell without remodeling, you won’t spend as much money putting your home on the market, but the concern is whether you’re leaving money on the table.

Should I Remodel or Sell My Home As Is?

To answer this question, it’s important to understand the factors that could influence your decision and to work closely with your agent throughout the process.

Cost Analysis: Home Remodel vs. Selling Your Home As Is

Home Remodel

When you remodel your home before selling, you’re basically making a commitment to spend money to make money. So, it’s important to consider the kind of ROI you can expect from different remodeling projects and how much money you’re willing to spend. Start by discussing these questions with your agent. They can provide you with information on what kinds of remodels other sellers in your area are making and the returns they’re seeing as a result of those upgrades. This will help you determine the price of your home once your remodel is complete.

Then, there’s the question of whether you can complete you remodeling projects DIY or if you’ll need to hire a contractor. If hiring a contractor seems expensive, know that those costs come with the assurance that they will perform quality work and that they have the skill required to complete highly technical projects.

According to the Remodeling 2021 Cost vs. Value Report (www.costvsvalue.com¹), on average, homeowners paid roughly $24,000 for a midrange bathroom remodel and about $26,000 for a minor kitchen remodel nationwide, with a 60.1% and 72.2% ROI respectively. This data shows that, for these projects, you can recoup a chunk of your costs, but they may not be the most cost-effective for you. A more budget-friendly approach to upgrading these spaces may look like repainting your kitchen cabinets, swapping out your old kitchen backsplash for a new one, refinishing your bathroom tub, or installing a new showerhead. Other high-ROI remodeling projects may allow you to get more bang for your buck, such as a garage door replacement or installing stone veneer. To appeal to sustainable-minded buyers, consider these 5 Green Upgrades that Increase Your Home Value.

A man and woman look at blueprint plans with a contractor inside a room that’s being remodeled.

Image Source: Getty Images – Image Source: stevecoleimages

Selling Your Home As Is

Deciding not to remodel your home will come with its own pros and cons. By selling as is, you may sell your home for less, but you also won’t incur the cost and headache of dealing with a remodel. And since you’ve decided to sell, you won’t be able to enjoy the fruits of the remodel, anyway. If you sell your home without remodeling, you may forego the ability to pay down the costs of buying a new home with the extra money you would have made from making those upgrades.

Market Conditions: Home Remodel vs. Selling Your Home As Is

Local market conditions may influence your decision of whether to remodel before selling your home. If you live in a seller’s market, there will be high competition amongst buyers due to a lack of inventory. You may want to capitalize on the status of the market by selling before investing time in a remodel since prices are being driven up, anyway. If you take this approach, you’ll want to strategize with your agent, since your home may lack certain features that buyers can find in comparable listings. In a seller’s market, it is still important to make necessary repairs and to stage your home.

In a buyer’s market, there are more homes on the market than active buyers. If you live in a buyer’s market, you may be more inclined to remodel your home before selling to help it stand out amongst the competition.

Timing: Home Remodel vs. Selling Your Home As Is

Don’t forget that there is a third option: to wait. For all the number crunching and market analysis, it simply may not be the right time to sell your home. Knowing that you’ll sell your home at some point in the future—but not right now—will allow you to plan your remodeling projects with more time on your hands which could make it more financially feasible to complete them.

For more information on how you can prepare to sell your home, reach out to me. We can schedule a meeting to walk through your home and discuss next steps based on today’s real estate market!