Karl Lueders Presents… The Market is Hot, But Nobody is Selling.

From the June 10 LA Times:

The much-predicted foreclosure wave that was expected to dump more homes onto the market has not materialized. Fewer borrowers are entering default, and banks are better managing the properties they do have on their books.
The inventory problem has been exacerbated by the plunge in home prices since the go-go years. Many people who bought at the top of the cycle are so deeply underwater, they can’t get the price they need to sell and are therefore not bothering to put their homes on the market.

 

On the other hand, if you plan to break even or come out ahead on your house when you sell it, things couldn’t be better in Denver real estate. Hell, Denver condos are selling… quickly. Stupid negative equity.

Actually, it’s negative equity that helped create this amazing over-demand climate in today’s Denver real estate market. Inventory across the country is at 2006 lows, which has essentially created a market where fairly-priced homes are receiving multiple offers (more on this later). But it ain’t 2006. There are plenty of sellers out there who think the market has actually rebounded and are trying to gouge well-educated buyers into overpaying. You can spot those homes on the market; they’ve been listed for longer than 30 days and haven’t reduced their prices yet.

But real estate isn’t fair; it’s not designed that way. It’s an organic process – on micro and macro levels – that went toxic after Wall Street monetized it. If you bought at the height of the market, you aren’t fired up about the proposition that all this demand isn’t creating a spike in values to recover your paper losses. It’s doubtful that even if this breakneck pace of home sales continues into next year, it’ll be a while before price follow.

the Kentwood Company has been enjoying record sales volume through the first half of 2012, and there is no evidence that this market is tapering off anytime soon. But if low inventory is a result of homeowners refusing to take a loss on their home, it stands to reason that the only houses on the market are those sellers who either have to sell or expect to make money in the process. But once this positive equity inventory shrivels up, it’ll be even harder to find good homes to buy in 2013 unless you plan to work the bank angles.

Who has the most to gain from the frantic market? Homeowners that don’t want to sell because they’re afraid they won’t break even on their home. There is enough demand to create bidding wars on properties – especially in good neighborhoods – where the return of your initial investment is more likely now than ever before.

Call your local Realtor – if you’re in Denver, your local Realtor is Karl Lueders – to find out what your home is worth. And, as much as I hate to say it, you might be able to “get” a little more than you thought.

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+.

 

Karl Lueders Presents: 2525 15th Street #3A… LoHi Loft Living


 

Dial into Denver’s hottest neighborhood from this amazing LoHi loft! 2 bedrooms (w/master suite on the main level), 2 bathrooms, washer/dryer in unit, open kitchen and ceilings the way a city loft should be! The only deck in LoHi with better views of the city and mountains is at Linger, but yours is private with plenty of room to entertain just as well! No more parking next to your neighbors; this unit comes with a private 2-car garage and entry into the building. Extra large storage unit, central AC, end unit, island kitchen, tons of closet space, in-unit storage and built-in cabinets. Check out the crowd at Forest Room 5 from your living room windows, get a sandwich from Jays or Masterpiece or go to Cellar for amazing wine and antipasti. And those are only the hot spots on your block. Go a little further and youre at Lola, Vita, Shangri-la, Little Man, the list goes on. The Overlook is also FHA approved so we welcome low down-payment buyers! Get here quick!

Karl Lueders Presents… Another Home Sold in the Highlands!

If it has the word Highland in it, I’m selling it. Yesterday it was Highlands Ranch, today it’s three blocks from Highland Square. This two-bedroom bungalow (also won in a bidding war) spent very little time on the market but is withing striking distance of 32nd and Lowell, 32nd and Zuni, Mile High and LoHi!

Another Home Sold in the Highlands

Karl Lueders Presents 3111 W 28th... Just Sold!

The buyers have already installed a bathroom in the basement, central AC, underground sprinklers and expanded the master bedroom! And that’s how you build equity in a house.

The rule of thumb these days is that if you’re interested in buying a house, so is someone else. So, it pays to work with a Realtor that has extensive relationships with other brokers around town so they know when houses are coming on the market… before your competition does. I guess I wouldn’t have written that last sentence if I didn’t think I was that guy.

 

 

Karl Lueders Presents… Another Home Sold in Highlands Ranch!

I’ve been a little busy lately, so patting myself on the back usually takes a back seat to working with home buyers and sellers in the Denver area. But, I have a few satisfied clients to talk about. One client just bought her second home with me, this one located at 10629 Wildhurst in Highlands Ranch, Colorado.

Karl Lueders Presents 10629 Wildhurst. Just Sold!

This is an amazing, well-kept 4-bedroom two-story home, with views of the mountains from the bedroom. Built in 2003, the seller of this home kept the house and the landscaping in show condition, much to the delight of my buyer!

All for less than $300,000. Not surprisingly, my buyer had to compete with other buyers for this house, as is the case with metro Denver real estate this year. However, prices are holding steady and there is even increasing real estate values in neighborhoods you wouldn’t believe.

This is a great home for an amazing client!

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+.