Market Update: COVID-19 Impact on Real Estate

1. COVID-19 will likely result in a temporary shock to the Real Estate market, which is healthy for all markets especially when they have been as frothy as our market has been in Denver. It will cause people to think critically about their decisions. It will likely influence buyers to more thoughtfully consider a house prior to making an offer whereas in the past we saw buyers being more flippant about an offer. We will see the number of terminated contracts fall through from what was as high as 55% to a more reasonable 15%.

2. We can expect a swift response from the market. Sellers will still put their house on the market keeping a healthy inventory available to buyers. It is likely that we will see more sellers choose to move out of their house prior to putting it on the market. Showings on occupied homes are currently down 50+/-. We are seeing more showings on vacant properties. So, with interest rates being very favorable, the buying power for buyers is high so prices will stay steady for the next year or so before they begin to increase again.
With the volatility of the stock market today, real estate will be a safe haven for money.

3. We can expect to see the second home and investment real estate market stay steady. Providing an effective way for people to own and operate a second home or a rental property will be a key factor for this market. Property management companies of both second homes and rental properties will see an increase in business over the next year.

Most importantly, stay safe and at home right now. We’re all in this together and here for you if you have any questions.

Sincerely,

Josh
STECK at Kentwood Real Estate DTC
303.885.3934
www.joshsteck.com

Corona Virus and the Real Estate Market

I am getting a lot of questions about the Corona Virus and the Real Estate market. The good news is the real estate market is still strong, but understandably there are valid concerns. I wanted to address these concerns for my clients.

Right now in real estate, extra precautions are being taken at live showings to ensure the safety of our clients. From disinfecting before and after all showings to requiring shoe coverings, hand-wipes, sanitizers, and hand soap at all times, we’re taking all precautions to keep our clients safe. I am also doing a lot of video previews for my clients as well to eliminate the need to go out.

All the while, the market is doing some interesting things right now. I am seeing an increase in online searches and showings as people are commuting less and staying home. Mortgage rates are extremely low, giving buyers a lot of advantages.

People are using money that has been pulled out of stocks and investing in second homes and investment properties with the extra cash they have on hand.

Please give me a call to discuss your questions. I am happy to talk.

Josh
STECK at Kentwood Real Estate DTC
303.885.3934
www.joshsteck.com

Big news…Steck Real Estate is now STECK at Kentwood Real Estate. 

I’m thrilled to announce that STECK Real Estate has joined Kentwood Real Estate DTC. I decided to join Kentwood this year because our core values are closely aligned. Kentwood and STECK are both rooted in the community and focused on providing a high level of professionalism and expertise in the ever-changing real estate market.
Steck Real Estate has been known for our high level of personal service. Being part of Kentwood Real Estate DTC will allow me to continue to provide that same level of service while also offering centralized support and access to marketing, staff and exclusive market data.
I would love to catch up with you. Please come visit me at Kentwood DTC at 4949 Niagara St #400, Denver, CO 80237.
Sincerely,
Josh Steck
Phone: 303.885.3934
Insta/FB: @steckrealestateco

 

 

About Kentwood Real Estate: 

From the beginning, Kentwood has been built on the foundation of broker excellence. Only the most professional, ethical and knowledgeable top-producing real estate agents are selected to be affiliated with the esteemed brand. Founded as The Kentwood Company in 1981 to represent a discerning clientele, the firm’s original office opened in the Denver Tech Center. In 1998, Kentwood opened its Cherry Creek office and then its downtown location the following year. In 2018, Kentwood expanded its footprint to Northern Colorado with the addition of their Fort Collins office.

 Kentwood Real Estate is the exclusive Colorado affiliate of Berkshire Hathaway’s HomeServices of America. In 2016, the organizations aligned given their shared core values of trust, integrity, stability and longevity. Kentwood is a member of Who’s Who in Luxury Real Estate, a compendium of the finest residential real estate firms from around the world, as well as Luxury Portfolio International® and Leading Real Estate Companies of the World®, the largest global network of premier locally branded companies dominated by many of the world’s most powerful top-tier independent brokerages. The organization’s network spans 70 countries and includes more than 130,000 real estate professionals who sell more property than any of the large national brands. Active and respected in the real estate industry, Kentwood Real Estate has a significant number of brokers who serve on committees and the Board of Directors for local, state and national associations including the Denver Metro Association of REALTORS®, Colorado Association of REALTORS®, and the National Association of REALTORS®.

At the core, Kentwood is built on the foundation of supporting local community. The company and individual brokers are passionate in their ongoing commitment to supporting organizations that aid those in need, such as HomeAid Colorado for which Kentwood CEO and president, Gretchen Rosenberg, sits on the Board of Directors. Kentwood brokers hold themselves to the highest standard in the real estate industry and remain committed to helping clients, and each other, successfully reach their goals. Kentwood brokers are family and, as soon as you work with one, so are you. Visit Kentwood: https://www.denverrealestate.com/

Steck Real Estate: 2020 Outlook

Money is cheap!
As we enter the new decade, interest rates are REALLY low and I expect they will be for the next few months. Your buying power today is as high as you can get. Mortgage rates fell three basis points to 3.90 percent, a helpful gift for homebuyers this holiday season, according to Bankrate’s weekly survey of large lenders. 

The lower interest rates coupled with recent leveling out of home prices give buyers an advantage right now. There has been a slight spike in affordability allowing buyers more purchasing power than last year at this time.

Lots of Buyers in the market!
December was the busiest December, Steck Real Estate has seen in years. Buyers and Sellers didn’t seem to take a holiday this year at Steck Real Estate. More recently, inventory has increased, and that’s resulted in increased price reductions and concessions, particularly on more expensive properties. However, market trends show the Denver Real Estate market will likely heat up for sellers this upcoming spring, but possibly even earlier…

January could be the New April.
According to a telling article from CNBC Real Estate, Jan. 2, 2020, “Competition for housing is so high, the spring market is starting now.” Historical data shows an increase in houses listed on the market in January 2019 as compared to 2015-2018. This year is the year to start early to beat the competition. 

Price is the name of the game.
It is important to price your home accurately. Buyers still aren’t making offers less than the asking price. Many Buyers are passing on a price that is above their price range rather than making an offer at a price that is out of their reach. It is important that your home isn’t overpriced. You only get one chance to make a first impression, so make sure the price tag has the right price.

Speaking of home prices, another important factor that comes to mind: appreciation. According to Mashvisor’s Denver’s 2020 Housing Market Outlook, “since the beginning of 2000, Denver’s real estate values have increased by 126 percent which exceeds both the state and national averages.” For those investors looking for long-term investments, the buy and hold strategy is a great way to make money over time and something to consider this spring.

 

 

Honored to be recognized by Denver’s Real Producers Magazine and 5280 Magazine!

I am very honored and grateful to be named a Top Denver Real Producer by Denver’s Real Producer Magazine. Real Producers tells the true stories of Real Estate industry titans throughout the U.S. My personal journey and career story is featured in the November issue of Denver Real Producer Magazine, which highlights top-producing real estate professionals and gives an inside look at their life as well as their business. 

I am equally honored and grateful also to be named a Top Real Producer by 5280 Magazine. Please be on the lookout for 5280’s March issue with more information about this honor. 5280 has assembled the FIRST EVER annual comprehensive list of Denver’s Top Real Estate Producers. To compile the Top Real Estate Producers list, 5280 surveyed the seven metro county brokerage firm leaders such as CEO and CFO’s and asked them to share the names of their top-selling agents and teams.  

 

Thank you so much for all of the support from my family, friends and clients.

Basics to Know When Buying an Investment Property in Denver

 

There are many different types of investment properties in Denver; from duplexes to condos to single-family houses, there is a wide variety of options in neighborhoods across the city. Before you buy, it’s important to narrow down the type of property you are looking for before you start your search. This will mean doing a lot of research about the type of project you are ready to undertake as well.

1:  The “fix and flip.” This is when the property is gutted, remodeled, and modernized with new interior design elements. You’ll most likely need to add furnishings, fixtures, appliances and take time to improve or add exterior landscaping. In most cases, this is going to take a substantial amount of money and time before you sell the property. Remember, if you didn’t pay for the house in cash, you’re going to have to cover the mortgage while renovations are happening. This is almost always a risky idea unless you are experienced with these types of projects. Watching HGTV makes it seem like it’s as simple as buying a fixer-upper, knocking down a few walls, and voila you sell a gorgeous home at a profit. Those people are professionals and they’re on television. 

2: Buying, deep cleaning and selling a property “as-is.” This is less-risk and less-reward. There are no home improvements being made, just cleaning. The benefits include limiting your financial exposure because hopefully, the property will be able to sell quickly. You should speak with a real estate professional who has experience finding listings that are perfect for this type of investment. There are still great areas in Denver that can be perfect for this type of investment.      

 3: Buying a rental property. This is essentially “buying, renting and holding,” a property. For example, buying a duplex, four-plex, or multiplex property and renting it out. They can be a great investment. There are plenty of these types of properties in Denver with varied locations serving the rental market. You can also buy a house or an apartment with the plan to hold onto it as a rental property. Becoming a landlord can be one of the best financial decisions you can do because of the chance of a good return on your investment. Just remember that you’re either going to have to manage the property yourself, or pay a company to manage it for a fee. 

Regardless of which option is best for you, there are a ton of reasons to utilize real estate as an investment vehicle. Find a qualified agent who can help you find the perfect investment property. 

Thinking of selling your home? The pros to selling your home now in the snowy fourth quarter.

The weather is cooling and so is the Denver Metro real estate market. This typical seasonal cool down means opportunities are high for home buyers. Homeowners may also be wondering if this is a good time to sell. Here are some benefits:

Less Competition

Q4 can be a good time to sell, despite what people think about the traditional selling season being in spring. There is less inventory for buyers to choose from, giving the seller an advantage. For buyers, there are fewer bidding wars.

All-time Low Interest Rates

There is also a sense of urgency because mortgage rates are at an all-time low — the lowest since 2012. According to Lending Tree, over the past 48 years, interest rates on the 30-year fixed-rate mortgage have ranged from as high as 18.63% in 1981 to as low as 3.31% in 2012.

The lower interest rates coupled with recent leveling out of home prices give buyers an advantage right now. There has been a slight spike in affordability allowing buyers more purchasing power than last year at this time.

You’re Ahead of Your Competition

The process for selling a home can be strenuous, from finding the right real estate agent, applying for a loan to buy another property, getting the house ready for buyers — which all takes time and planning. Starting now in the winter months will give homeowners an advantage when spring comes along. You’ll be one of the first on the market if you don’t make it in time during the winter. If you do get your home on the market this winter, you’ll be celebrating the new year in a new home!

Everybody Wants to Buy a Rental Property, But Not Manage It. If you’re buying rental property in Denver, keep these four tips in mind.

Rental Property Investment The Denver rental market is not slowing down. The current market conditions in Denver are showing that there is going to be a need for rental properties for a long time. There are currently some great tax benefits both on the federal level and on the state level to renting a property. If you’ve been thinking about investing in a rental property, there has never been a better time. And, if you’re buying a rental property in Denver, keep these four tips in mind.

Tip No. 1

Don’t overcomplicate it.

Buying a property to rent does not have to be as complicated as you think. A lot of people get stuck with analysis paralysis and never end up taking the plunge. If you think you don’t have the time and resources to handle a rental property yourself, you can hire a property management company.

Property management companies will typically charge 10% of the rental price to handle everything from the transaction, finding renters and property maintenance. This can be a great option to take the headache away.

Tip No. 2

Have a strategy.

For example, are you looking for immediate cash flow or appreciation over time? Think about your financial needs, such as the immediate benefit of having cash flow. Or do you want a more long-term investment? Being aware of your strategy and goals upfront will help you with your search and satisfy your end game.

Tip No.3  

Choose a realtor that specializes and has experience in buying and selling rental properties.

Not all real estate agents are created equal. Some have more experience in the Denver rental market than others. If your agent has experience finding rental properties in Denver, their advice can be golden. Interview several real estate agents and ask questions. Do they have a track record of buying and selling rental properties in the Denver market? Do they know what to look for and avoid? Your realtor should be able to help guide you on what it means to own a rental property, not just the transaction and finding the property.

Tip No. 4

Buying a rental property makes you a business owner.

You’ll need to set up a business entity for tax reasons. To help with the on-going management, you can enlist the help of a qualified tax consultant or get familiar with accounting software like QuickBooks. You will be able to write off any repairs on the property including the purchase of appliances. In addition, you can deduct the depreciation expense of the property. There are some tax benefits available for would-be landlords.

 

Thank you ColoradoBiz Magazine for publishing this article as seen here: http://bit.ly/joshsteck

Market Highlights: Commercial Sales

 

We took a look at the top priciest commercial sales in 2018. Coming in at the top is 1801 California St. which sold for $285,600,000 to a Baltimore based investment firm. The firm purchased 51% of the building.