July Newsletter!

"Life begins at the end of your comfort zone"
~ Neale Donald Walsh

July Newsletter

Happy Independence Day!

I hope you had a fantastic holiday celebrating Independence Day.  Amanda and I celebrated our anniversary and watched fireworks with the kids.  If you've never been to the show in Thornton, I encourage you to give it a shot next year.  The fireworks kickoff with 4 skydivers parachuting in with a giant American flag, followed by a pretty intense firework display! 

Market Update

Data has continued to roll in showing an increase in Active Listings for the Denver Metro market.  While we see increased intentory every summer in Denver, this year is a little different in the respect that inventory has pushed over 10,000 for the first time since 2013!

As a reminder; to begin 2024, many media outlets expressed that we could see up to 6 interest rate cuts this year.  We also had approximately half as many homes listed For Sale to begin 2024.  

Why is this important?  Supply and Demand.  On an annual basis we typically see the highest amount of active inventory (houses listed on the MLS) in the month of August/September.  It would be reasonable to say that this year we may see the number of active listings continue to climb for the next 30-60 days into the 11,000-12,000 range.   

The chart above shows a brief illustration of how rare it's been to see Active Inventory above 10,000 in the past 12 years. 

AUGUST 17

If you've been staying up-to-date on the changes coming this fall then you know what August 17th represents.  But, if this is new to you, let me give a brief overview of what our new reality is about to look like: 

The resolution of a landmark lawsuit known as “Sitzer-Burnett” is about to usher in the largest set of changes to the real estate industry in several generations.

Effective August 17, 2024, buyers will now be responsible for compensating (or ensuring compensation for) their agents directly - sellers will no longer be required to offer compensation to buyer agents as a condition of selling their home through the MLS.  Buyers will also need signed agency agreements (including compensation details) with their buyer-side representatives spelled out and in place BEFORE touring any homes.

Going forward, should a buyer choose to be represented, there will be two ways for that agent to get paid.

* In the purchase offer, buyers may request a “seller concession” (perhaps 2.0% - 2.5% of the purchase price, for example) and then use those funds (which are credited to the buyer at closing) to compensate their agent.

* Or buyers may pay their agents directly, per whatever terms have been negotiated in the buyer agency agreement.  This can include an hourly rate, a flat fee or some percentage of the sales price.  This fee may be paid at time of service (per showing, for example) or at closing (more commonly).

We understand that buyers are going to have questions about these new rules and we also understand these rules are going to be disruptive.  I anticipate some buyers may drop out of the market entirely while others will attempt to “self-represent”, which is almost certain to lead to increased frustration and risk for individuals trying to self-navigate their way through one of the complex and important financials transactions of their lifetime.

I am standing by and ready to talk further with you about these changes. I anticipate there is going to be a steep adjustment curve and I believe it will take some time for buyers and sellers to adjust to this “new normal.”

I am confident agents and buyers/sellers will work together to find solutions that work for everyone while navigating these new realities.

Congratulations!

A special Congratulations to Johnathan and Kelsi on being under contract to sell a townhome AND under contract to purchase a beautiful new home, great work!  

Denver

Keep your eyes on the lookout for this beautiful ranch-style, single family home hitting the market at the end of this month!  This house has a beautiful addition to the back giving it extra living space and a big, fenced in backyard featuring an oversized garage.  Walk through and you'll notice hardwood floors throughout and all major systems completely updated and/or new within the last few years.  This house is ready for a smooth transition into homeownership for its' new future owner(s).   

This beautiful home in Castle Rock is a custom gem.  You'll find 5 bedrooms, 3 bathrooms, and almost 4,400 sq ft. located in a quiet neighborhood down in Castle Rock.  Basement is complete with a kitchenette and surround sound for movie nights while the main floor welcomes 9' foot ceilings and custom built-ins throughout!  

Wishing you all a Wonderful and Blessed July!

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.