August Newsletter!

"Listen with the intent to understand, not the intent to reply."~ Stephen Covey

August Newsletter

Back to School we go! 

I hope you had an amazing summer!  As is true every year, the summer went way too fast and it's hard to believe we're heading into fall.  Leo started 2nd grade, Grace is embracing her upper teeth arriving, and the 4 of us traveled back to my home state (Upstate New York).  A common assumption is that everybody from NY must be from the city, but I grew up in a small town, hours north of NYC out in farm country.  Amanda and the kids enjoyed experiencing the farming life and learning about how cows are milked!  

Market Update

Let's take a quick look at some numbers and then I'd like to jump into buyer/seller psychology.  

To begin with, per the updated numbers above, we see the typical slowing of the market as we enter into the second half of the year.  This is normal, once we get beyond July, things start to slow down a bit.  Occasionally, we see a push upward after school starts and end-of-the-summer vacations have concluded, but we really aren't seeing anything incredibly abnormal compared to expectations at this time. 

I was anticipating a higher number of 'Active Listings' as we ended July, but it only crept up by about 3.5%.  One factor to consider here is which day of the month the market ended, in this case it was a Wednesday.  The largest majority of homes are listed on Thursdays, which means our Active Listings number may be slightly artifically lower than expectations, meaning that August 1st would be a better day to list (Thursday) compared to July 31st. 

What you DON'T see in this graphic is that the 'average' (not median) Days On Market for listings is 30 days.  We've lived in fantasyland here in Denver for far too long and grown accustom to the average home selling in 24 hours with multiple offers and substancially over asking price.  While it may seem weird or odd, to see houses stay on the market for longer, it's actually much closer to normal and would offer a perspective of a more balanced market with the stats we're seeing now.  

I've included a graphic below that was produced for the Denver/Metro market by RE Colorado reflecting the balance in the market for July 2024.  When you've been in fantacyland for over a decade, it's easy to scream panic, but in reality we're just fine and things are normalizing/balancing.

Moving On...

Planes, Trains, and Automobiles 

What do John Candy & Steve Martin have to do with Real Estate?  Let me explain...

To begin with, if you don't know this movie then you're younger than me.  My favorite John Candy movie is Uncle Buck, but let me get back to connecting these dots.

I was traveling back to NY at the beginning of this month, our plane experienced quite a bit of turbulence and the 'fasten seatbelt' light was on for most of the trip (that's fun with an 8-month old...).  

I want to bring your attention to Mr. Warren Buffet to help illustrate this point.  I'm well versed and reminded of his famous quote: 'Be fearful when others are Greedy, and be Greedy when others are Fearful.'  What creates fear?  Turbulence!

We have a lot of turbulence taking place right now; inflation, interest rates, a significant market correct to begin the month, higher number of Active Listings (most since 2013), and that last one that happens every 4 years: Presidential Elections! 

There are headwinds in the market, fear has gripped many people.  Every news outlet know that: Fear sells, so during an election year, all you're going to hear for the next 3 months is how if the OTHER person gets elected, chaos will ensue.  

One of my favorite investing and psychological reminders  is rooting in know that: negative elements tend to have a 3x impact in comparison to positive news.  In other words, a positive has to be 3x greater than the negative in order for our brains to feel balanced.  We're designed to protect ourselves from hurting (or negative factors harming us).  If an investment loses 10K in value, that hurts equivalently to a 30K gain in value. 

So, how to you beat this?  Awareness is a start.  Over the last 15 years the market has continued to go up (as every. single. person. is well aware of).  In the past 10 years, I've continued hearing 'we're waiting for the market to come down before we invest in a home.'  That's completly fine.  However, you need to also be prepared that the market only comes down with Turbulence.  

Turbulence creates the opportunity, but the opportunity only exists when you're prepared to overcome the fear.  To illustrate this point, look at the volume of stock investments at the lowest  point of the 2020 covid drop in the market.  We saw record numbers invested at the very point that the fear guage was highest.  

I digress on this topic, but would love to continue a conversation with you if you're thinking of buying or selling your house.  There are opportunities ALWAYS, it just depends on how you position and prepare yourself for those opportunities.

714 S Depew St. & 1815 S Meade St.

A Double-Congratulations to Kelsi and Johnathan!  I loved helping you get into your new home and finding a buyer to sell your old home.  This house was so unique and fun to work together on.  My only advice now is to make sure the cold plunge isn't too close to the beehive.  Enjoy your new place together as you welcome in your new addition to the family this month! 

1697 S Cole St. Lakewood Co

Here's another Double-Congratulations, but not how you may think.  Believe it or not, purchasing a condo was the second biggest accomplishement for Stephen this past month.  While under contract and awaiting closing, Stephen decided to go for a 101 mile run and complete a 34-hour journey to the finishline of the High Lonesome 100.  Oh, and the elevation gain was approximatly 23,500 feet with parts that stretched over 13,000 ft.  Incredible!  You now have a new place to recover and get ready for the next race.

PS: Stephen, after you completed 100 miles, was the last mile the hardest or easiest? 

1019 S Osage St., Denver Co.

Check out one of my favorite Active Listings in Denver.  This beautiful ranch home sits on a big, fenced in, lot.  It's complete with all major updates completed and welcomes hardwood floors throughout.  The AC, Furnace, Water Heater, Roof, Exterior/Interior Paint, Radon Mitigation, Galvanized Pipe replacement, and so much more have all been updated.  If there's a house that fits the 'turn-key' definition, it's this one!  Click on the photo above to learn more and reach out to me if you, or somebody you know, may be interested! 

7408 S Alkire St., Littleton Co. 

A special congratulation to Ethan for finding and getting under contract on your first home!  This place is in such a great location in southwest Littleton, located right in the heart of the Ken-Caryl neighborhood.  The only question I have is whether it's Ken 'Carol' or Ken 'Carl'? 

As we close out the summer months, I hope you've enjoyed all that Colorado has to offer and had plenty of time with friends and family this summer.  It always seems to fly by, but there are adventures in every season.  Wishing you all a Wonderful and Blessed fall ahead! 

Travis Carey

Broker Assoc.
M: 607.435.5113
travis.carey@compass.com

Compass is a licensed real estate broker. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.