…Denver’s Country Club Real Estate Performance for 2011

It’s been a good year to buy and sell homes in Denver’s Country Club neighborhood. You may not believe it if your house is currently on the market, but to consider that houses over $1M are selling at all is pretty impressive. And for those sellers whose houses are currently on the market, keep reading.

Historically, Country Club has always boasted the highest Days on Market – there’s not even a  close second – of any central neighborhood in Denver. I referenced this mindset about three years ago when I talked about the sellers that don’t really have to sell. Times have changed, apparently. In 2009, a year after I wrote that article, homes took an average of 165 days to sell, 40 days over the city average. Last year, however, homes sold two months faster than the previous year. Plus, the average sales price was higher. As I reported yesterday, Driving Park Historic district saw an impressive volume of homes sell in that neighborhood this year, and Country Club performed similarly.

This year, Days on Market (DOM) floated back up to 144 days, but the neighborhood generated more sales than in the past three years. In 2011, 18 homes sold, compared to 14 in 2010 and 17 in 2009. Granted, the average sale price dipped from $1.8 million in 2010 to $1.5 million, but there were also a couple of reclamation projects that sold well below the $1M mark this year.

Here is the list of homes that sold in Country Club this year:

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The big news for homeowners in Country Club that are thinking of selling is that the average Days on Market for the existing inventory is at 206 days and counting! New listings in Country Club that priced correctly will get showings and, as evidenced by the volume of homes sold, they will likely get offers.

Congress Park tomorrow.

PS – These numbers don’t reflect the homes currently under contract. Currently, 130 Vine, and 100 and 140 Humboldt are under contract and will likely close in 2012. Also, here are the homes currently for sale in Country Club: 340 Lafayette, 127 Lafayette and 351 Lafayette; 103 Franklin; 141 Gilpin; 450 Race; 261 Vine; 100 Gaylord, 100 High and 101 High.

Karl Lueders is a residential Realtor with The Kentwood Company at Cherry Creek. He can be reached at 720.971.8267, email, Twitter or G+.

…Denver’s Driving Park Real Estate Performance for 2011

Those in CCN (which stands for Country Club Neighborhood) would prefer it if the folks in Driving Park Historic District wouldn’t call themselves Country Club North. They’re not. No fancy gates on 6th Avenue or big floral pots to mark the entrance. And no Do Not Enter signs, like the one off Jospehine, which are a welcoming touch.

What the CCN folks didn’t get in 2011 is the volume of sales that DPHD had. For a tiny 18-block neighborhood in the middle of CCN, 7th Avenue and Alamo Placita, DPHD sold 24 homes this year with an average sale price of $632,000 (median price $550,000).

The following homes sold in DPHD in 2011:

This list is courtesy of Metrolist Inc., and doesn’t reflect any quiet sales. Also, four homes are currently in negotiation: 542 Downing Street, 440 Lafayette and 561 Franklin. These may close before the end of the year, but they are likely to close in January.

Currently, there are four homes active in DPHD, a rarity for such a desirable neighborhood in Denver: 509 Marion, 467 Franklin, 541 High and 461 Humboldt Street. (Follow the link if you want more details on these homes.)

Last year, only 19 homes sold, although the average sale price was about 10% higher at $698,000. In 2009, the average sale price was $675,000, but only 11 homes sold.

The fact that more buyers have come into DPHD in the last 12 months than in year’s past shows a receptive balance of pricing, not to mention a stabilizing of other factors, such as Days on Market. In 2009, it took an average of 124 days to sell a house. That length has dropped approximately 10% since then, with 2010 DOM coming in at 107 and this year’s DOM averaging at 111 (this year’s figure includes two homes that sat on the market for more than a year, as well).

When inventory is low, demand goes up. And when demand goes up, prices tend to follow. Which then should give homeowners a reason to sell again.

Country Club tomorrow.

Karl Lueders is a residential Realtor with The Kentwood Company at Cherry Creek. He can be reached at 720.971.8267, email, Twitter or G+.

2011 Denver Real Estate in Review

It’s that time of year again where, now that Christmas is over, we hope that nothing crappy happens in the last week of the year and we can torch 2011 on our way out of town and into yet-to-be tainted 2012. And what better way to kick off the year in review than with some depressing real estate statistics?

Kidding!!! Actually, if you live in central Denver, it’s not that bad. Over the next few posts, I will be laying some better-than-expected news about the core Denver neighborhoods on you: Washington Park – East and West –  Congress Park, Park Hill, City Park (anything with a Park in the name, really), Country Club, Baker, Lohi, Highlands, and Cherry Creek North and East. If you would like to request a specific neighborhood – or street for that matter – drop me a line and I’ll be sure to include it (or just email you directly, depending on your pain tolerance… just kidding!).

My statistics will include number of houses sold, number of homes active and currently under contract, along with the addresses. We’ll compare 2011 to 2010 and 2009, and we’ll give a little forecast on what to expect based on historical data and what I’m hearing from banking and lending experts.

First off is my old neighborhood, Driving Park Historic District, bounded by Downing and High Streets and 4th and 6th Avenues. That’s today’s neighborhood. Tomorrow is Country Club, and from there, we’ll hit the Parks! Search for homes here, but stay tuned to this roll for your neighborhood news in the next few weeks!

Karl Lueders is a residential Realtor with The Kentwood Company at Cherry Creek. He can be reached at 720.971.8267, email, Twitter or G+.

 

 

…How to Positively Cash Flow a Kick-Ass Condo in Denver

Answer 1: Calculate the break-even point with principal, interest, taxes, insurance, HOA and utilities. Then put the appropriate amount down when you buy your Denver condo.

(Thanks, nerd.)

Answer 2: Pay cash for it. See also, You Can Be A Millionaire and Never Pay Taxes.

Thanks for stopping by. Now go out and find a kick-ass condo. I got a million of ‘em.

Actually, neither answer is especially snarky. Answer 2 is preferable, especially since cash allows you to bypass, in order of proctological discomfort, desktop underwriting, condo questionnaires and mortgage insurance companies. Plus, if the condo building has no laws against owner-occupancy ratios (which they all should, FYI), you can start collecting on your investment.

For example: a $200,000 condo, let’s say in the heart of one of Denver’s hottest neighborhoods, has monthly HOAs of $185 (heat included) and annual taxes of $1227. A $40,000 investment (not including your loan origination and closing costs) will also allow you to generally avoid the trio of discomfort, and, with rent going for $1300/month, you can positively cash flow $2,400/year, approximately 6%. Back out the closing costs and you’re still in the lead after Year 1. Pay cash and you get the same return but you can avoid closing costs. Plus, $1300/mo in Hipsterville is pretty reasonable.

Where can you find such a deal? Funny you should ask. I have just the place. And, coincidentally, it conforms to all these numbers. It’s located here:

Baker Commons - Center of the Universe

Plus, you can take a look at it here.

Not coincidentally, this is the same unit that I reported not too long ago that couldn’t be bought with 5% down, regardless of which angle the buyer tried to play. But, since the building has great reserves, is in a great location and is lien-free, there shouldn’t be any OTHER reason why an investor wouldn’t want to start cashflowing this tomorrow.

Until we find out you need to put 25% down.

Karl Lueders is a residential Realtor with The Kentwood Company at Cherry Creek. He can be reached at 720.971.8267, email, Twitter or G+.