Archive for November, 2018
Two of the biggest names in title insurance are joining together to bring blockchain to the title insurance industry. First American Financial announced Wednesday that it is launching a shared blockchain system to be used in the title insurance process. And the first company to sign on to use First American’s blockchain system is Old Republic Title Insurance Group, the nation’s third largest title insurance underwriter.
Read the full article: First American, Old Republic Title bringing blockchain to title insurance
Article is from Housingwire
The Eagle Examiner is in! The Eagle Examiner is in! This month I’m going to flip the formats so you don’t miss the Altos Stats. Below that you can find Denver Metro area stats and commentary from Jill Schafer, Chair of the DMAR Market Trends Committee. I’m working on the format of this and it’ll change next time as well, but I wanted to get this information out to everyone.
Thanks and I hope you all had a fabulous Thanksgiving
|Use the links below to view your Revised and Updated Colorado Statistics by city.|
You know when you go on a very long car ride and the passengers ask. “Are we there yet?” over and over That’s what I’ve been hearing this past month when talking to people about our current real estate market. They mostly mention two things when asking if we’ve shifted to a buyer’s market: one. houses don’t seem to be selling in the first weekend anymore and two, we’re seeing price reductions like we haven’t seen in years. Even with those two things in mind, my answer is NO, we aren’t there yet and it appears we still have a ways to go before we get to a buyer’s market. And that’s not just my opinion, that’s the story the statistics tell as well.
It’s going to take how long? Yes, it seems houses are taking a little longer to sell with an average of 29 days on market for single-family homes compared to the super-fast 19 days in June. We have been going at 100 miles an hour for so long that it started to feel normal and now going any slower seems painful. When you compare it to this same month last year, detached homes stayed on the market for the same amount of time and attached homes only took three more days to sell. In fact, the days on market overall was the same year to date as in 2015, 2016 and 2017. Anytime you go from 100 miles an hour to 65 miles an hour it feels like you’re crawling, but, remember. you’re still moving forward and the market always slows down when the leaves fall.
You have to pump the brakes. Yes, we are seeing price reductions and often there are more of those than under contracts, but sellers are still in the driver’s seat – they just need to slow down a bit. Some sellers have still been trying to go at breakneck paces with homes priced based on summer sales. Slow your roll and remember pricing is about recent similar sales and the amount of competition. We ended October with 8,539 homes to choose from, fewer than the end of September, but more than any other month since November 2017. Agents need to study comparable homes sold from the past 60 days and then look at the amount of competition, then price accordingly.
Remember what Ralph Waldo Emerson said... “Life is a journey, not a destination” and the journey for home owners in the 11 county metro area is a great one. Overall, prices are up. Year to date, the average attached home price was up 10.6 percent, ending October at $350,017 and the average detached home price was up 9.06 percent, ending the month at $523,306. People want to live here, the demand for homes is great and the Denver economy is strong and diverse. Interest rates are projected to go up again this year and next. So jump in the car now. Studying the statistics is like studying the map: it shows where you’ve been so you know where you’re going. Tell me about your real estate trip on social media using #dmarstats.
~Jill Schafer, Chair of the DMAR Market Trends Committee and Denver real estate agent
DMAR Market Trends, November 2018
2018 Copyright All rights reserved to Denver Metro Association of REALTORS
Give me a shout if you want to talk about anything you see here.
Let’s jump right in to the things I see in this months’ stats report. And to be honest, it’s nice to see things change a bit because it gives us something to talk about. This long, steady, upward march of prices and low inventory has been a little boring to write about for the past couple of years. It’s interesting to watch and participate in, but how many times can you stand hearing the same broken record? This month I may have a little different take on things.
First things first, click on one of the links to the stats report below so you can see what I’m writing about. The top one marked (.pdf) usually displays a little better. The graph in the middle has been updated from last year. It follows the monthly average sales price of single family homes in both Longmont and the Carbon Valley (Firestone, Frederick and Dacono) from January 1, 2015 until the end of October 2018. The upward arrows point to October of each of the past four years. Each October is preceded by a dip in the month or two before. That dip is the typical start of the Fall slowdown. I point this out because the current market shift, or slowdown, that many of you are feeling is normal market activity. The difference this year is that the fall dip was preceded by the highest of all-time highs, so it feels a little more severe. Additionally, this October has one of the narrowest recent year-over-year (YoY) differences in monthly average sales price (+1.1%). We aren’t used to measly 1.1% gains. Oddly enough we have become accustomed to the extraordinary. Last month our YoY monthly gain was 14.7%! So, is the market broken or is it our perception of the market?
Using this graph last year was to show the relative increases between two local markets. The gap is still widening. The trend line is a two-period logarithmic trend to flatten things out, but you can see it has kept on a steady upward pace in both Longmont and the Carbon Valley. The solid black line in the middle is simply a line connecting October 2015 with October 2018 and it’s nearly exactly parallel to the Carbon Valley average price line. I find that odd and coincidental but encouraging that it is still going in the right direction.
Look at the negative numbers that indicate a declining percentage next to each of the Average Days on Market section in all areas. Yes, it’s negative in all of them. There are very large negative numbers in three of the four areas. Total sales are way down as well in three of four areas. How are sales down AND Days on Market down at the same time? This goes a little against common sense, which would suggest that when sales drop, average days on market increases. Add to this October puzzle, the not so obvious fact that all average and median prices in the report are either slightly positive or slightly negative.
What do the three facts in the paragraph above tell us about the market? First, this information indicates that well priced properties are selling fast. Secondly, well priced homes (not low priced, well priced) make up a majority of those selling right now. In fact, a search of October sales shows two thirds of all sales last month were below the average days on market and priced from $260,000 to $977,000. In a shifting market, a listing cannot set the new high price in the neighborhood anymore. If your seller insists on playing this game, they need to realize all the buyer agents in town are reading this information too and their buyer will move on to the next available house that shows value in its pricing. The market is not rising like it was. It may again, possibly next summer, but not currently. This, my friends, is a good description of a flattening market.
First American Title Insurance Company