If you or someone you know has listed or purchased a home recently, it should come as no surprise that the Denver real estate market is one of the hottest in the country! The national and local media have caught on as well with recent reports of Denver ranked 2^nd only to Oakland for the best housing market in the U.S. (Denver Post). The average home in Denver is listed for a mere 33 days before it sells (the average for the rest of the country is 89 days)!

Digging into the numbers, we have seen a rapid and dramatic turn of events in our housing market compared to a year ago. Inventory is still very limited with only 10,325 active listings on the market at the end of March. And that number continues to fall. Last year at this same time we had nearly 18,000 active listings. Now, with over 7,400 properties in an Under Contract or Pending status, we are selling through our inventory of available homes and Denver lofts at an alarming rate. Home builders too have fallen behind with the current demand, with most builders 6+ months out on their availability of new homes.

Where is pricing headed?   I see homes and Denver condos continuing to appreciate at a good rate this year. The average home appreciated 3.7% from March 2011 to March 2012 and condos appreciated 1.25% from last year. Keep in mind that we haven't even hit the "high season" in real estate yet (typically June through August), so this bodes well for the local housing market and the overall economy along the Front Range. Rents have also continued rising with the average rent increasing 5-10% from a year ago, often making home ownership more affordable than renting in most metro areas, Denver included. Most Americans, have a much more positive outlook when it comes to home ownership and this will continue driving demand across price points. Recent studies indicate that over 73% of Americans believe now is a good time to buy a home!

As always, we are up-to-date on the latest market happenings. Please don't hesitate to contact me whenever you or someone you know is considering buying or selling a home!

New Era Realty is proud to announce the continued growth of our experienced realty team.  New Era Realty recently added a second agent Aaron Pearson to the Northern Colorado team and we are pleased to announce that Chris Behrens on our Downtown Denver real estate team has been brought on as the 3^rd full owner and partner of existing broker / owners Brian Lehnerz and John Stegner.

New Era Realty is currently seeking other qualified and customer driven brokers to join the city team which has continued to grow and develop.

New Era Realty has a strong focus on customer service in all forms, one of which is technology. Using mobility applications and IPads in the field to better serve our clients, New Era Realty agents are equipped with the tools and expertise to excel.  Our high traffic website is being updated to bring new search technology to make it easier for our clients to know about homes the moment they hit the market and search the MLS easily.

Better tools, better experience, and better agents are all part of how New Era continues to move forward in providing the highest level of customer service.

New Era Realty is on pace to again increase the company's production by as much as 30% this year.

We are also proud to announce a relationship with Guild Mortgage to enable New Era Realty Clients a full solution on both the lending and the real estate side.  The goal is to make sure our clients have outstanding transactions across the board and at every step of their dream home or investment transaction.

To learn more about New Era Realty, downtown Denver real estate, or our customer service advantage, please contact anyone on the New Era Realty team.

Agents interested in learning more about joining the New Era Team please contact us at 303-991-9878.

We never get tired of sharing great news with all of our clients and readers here at New Era Realty.

The latest bit of good news was reported in the Denver Business Journal Article “S&P: Denver home prices up from 2011; 1st year-over-year rise in 19 months” this week with some great numbers showing what we already knew…

The Denver market is going strong!

We aren’t talking about a huge market increase.  The Denver market showed a “0.2 percent increase since January”.  But out of the 20 cities that this report looked at in the United States Denver was one of only 3 that showed positive market recover.

This past year New Era Realty has found for our Denver loft and condo clients some incredible values in this market… but it takes a lot of work.

The Denver market is strong.  Downtown Denver real estate markets such as LoHi, LoDo, and the many Denver neighborhoods being connected by the new light rail system are extremely popular.    Many homes that come up on the market priced below market are snatched up instantly.  For this reason selecting a Downtown Denver loft and condo expert firm such as New Era Realty carries even more value.

Our New Era Realty team, located in the heart of LoHi just blocks from the New Union Station light rail hub, offers the experience, history, and technology tools to assist our Downtown Denver condo buyer and sellers with their real estate transactions.

It’s interesting to watch the market trends in the various neighborhoods and the pattern of development that is occurring in these markets.  Certainly, LoHi has become a favorite of both Downtown Denver residents and investors as new restaurants, shops, and amenities continue to open every month.

The new light rail developments at the Historic Union Station  including not just transportation, but also office buildings, restaurants and services are creating a new dynamic in the surrounding LoDo, Riverfront Park, Ball Park and Five Points neighborhoods.

What’s next for Denver… that’s what we focus on every day.  To learn more about the sub market trends in the different Downtown Denver neighborhoods or for your own home please contact anyone on the New Era Realty team.

With vacancy rates running at all-time lows in the Metro area, both seasoned and rookie investors are taking advantage of the Downtown Denver real estate opportunity and snapping up rental properties as quickly as they can.  For the fortunate few, they find a hidden gem that produces a double digit return on their money.  For many others, a 7% capitalization (CAP) rate (aka, return on their investment) is far better than the return they are getting from their investments elsewhere.  Of course there are plenty of landlords who are asking a premium for their rental properties right now and sometimes finding a “deal” on a rental in the current market has become less and less commonplace.

Every investor has his/her own priorities when it comes to their investments, real estate and otherwise.  To keep things simple, let’s assume you are looking at purchasing any rental property that will yield the best return on your money. I believe the following considerations are most important in your analysis of a potential property:

1) What deferred maintenance exists at the property? Are the major mechanical systems in good working order or will they need replacement in the near future?  A good inspection will reveal any major problems here and then it’s just a matter of getting estimates for the work and sometimes negotiating further with the seller.

2) What are the ongoing operating expenses for the property? Does the tenant or landlord pay all or some of the utilities?  What are the total annual expenses including utilities, maintenance, HOA’s, legal fees, property management fees, etc.?   Many listing agents and their landlord clients don’t report expense data accurately, so make sure you know exactly what you are getting into and ask for accurate financial records.  If the property isn’t rented or the rents don’t appear to be in line with the market, there are resources available to find going rental rates for specific areas and help with your analysis.

2) What are the gross monthly and annual rents over the past 2-5 years?  It is always good to ask for rent rolls here from the seller/landlord.  What are the current leases and does the property have good tenants?  What has the vacancy rate been over the past few years?  Is there potential to increase rents as tenants leave or renew their leases?

4) Once we have answers to 2) and 3) above, we can calculate the Capitalization (CAP) rate (a high level way of saying the return you collect on your investment):

CAP rate = Net Operating Income (i.e., Gross Rental Income – Expenses) / Cost (purchase price).

For example, a property generates $12K in gross rental income in a year, with $4K in expenses and you purchase it for $125K.  Your CAP rate is 6.4%...far better than that savings bond of yours!

5) What is the “Cash on Cash” return for the property? Some investors believe cash flow is king and many look for a 20% +  return here.  For instance, you purchase a rental property for $200K, with $40K down (20% down is the norm for non-owner occupied properties).  Assume the net rental income is $12K per year after all expenses.  Your Cash on Cash return is $12,000 (net rental income)/$40,000 (down payment) or 30 %!  It will take you just over 3 years to pay yourself back on your initial investment.

So what makes a good rental property? It depends what your objectives are.  Look for minimum deferred maintenance (unless you are getting a really good price), accurate income, expense and rent roll data which allow for a 6%+ CAP rate (realistic but not always easy to find) or a 20% Cash on Cash return if you are simply looking at paying yourself back on your initial capital investment (down payment) as quickly as possible.  A good rental property can be a small one bedroom Denver condo in a hot neighborhood such as LoDo, LoHi or a 50 unit apartment building near DU.  Sometimes a higher priced, longer term hold at a lower CAP rate can pay you back nicely over time and appreciate at a rapid rate in a strong rental market.  At the end of the day, it all depends on how much you want to spend and the return you want!

There are other considerations I haven’t discussed here including location, competition, tax implications/benefits and more.  We can continue those discussions in-person!  Shoot me an email and I will send you our rental investment calculator.  It is a great way to analyze potential rental opportunities accurately and quickly.

Spring in Denver has kicked off with great news for both investors and residents in the Downtown Denver condo and Downtown Denver loft market.

The first great news was the Denver Post’s reporting of “IMA Financial Group's new headquarters marks milestone in rebirth of Denver's historic Union Station”.  While light rail and RTD construction has been moving quickly real estate investors have been keeping watch to see when construction would begin on one of the many blocks of office, commercial, and residential land that will be the Union Station neighborhood.

IMA’s choice to move their headquarters to Denver and in the heart of the Downtown Denver loft and condo means an increase in jobs for our growing city.  Not only will the IMA headquarters building be employing their own team members but that construction of the project will mean the financial strength of the construction project and a spark to grow other blocks in this exciting area.

For residents of Riverfront Park, LoHi, andLoDothe Union Station Neighborhood isn’t just an exciting new neighborhood of dining, entertainment, and shopping retailers.  It is also the hub of the new RTD system including the much anticipated light rail to Denver International Airport, Grocery store at 20^th and Chestnut, and Hotel located in the historic Union Station terminal.

But it’s not just the investors who are happy with the news this spring.  Denver loft and codoresidents in LoHi are adding another craft brewery to their suite of excellent dining and entertaining choices.

At the base of LoHi just a block from the I25 exit is a sign on the old (and very large) furniture building announcing a Spring 2012 opening of the Prost Brewing Company.

When our clients ask us what our favorite Downtown Denver condo and loft neighborhoods are to live, play, and invest in LoHi seems to be the top topic of discussion.

LoHi is BOOMING!  In the past few years you can hardly keep track of the rapid growth of great restaurants and businesses moving into this area.  The list includes some of the best Denver has to offer including Linger, Lola, LoHi Steak Bar, Ale House at Amato’s, Vita, Sushi Sasa, Denver Beer Company, and Williams and Graham to just name a few.

Learn more about why these Downtown Denver neighborhoods are getting so much attention.  Contactanyone on the New Era Team today.

One word sums up the local real estate market right now – exciting!  If you have recently listed your home, condo, or Denver loft, you are likely excited about the amount of showing activity you’ve seen so far (assuming you aren’t under contract already). If you are a buyer, the idea of home ownership is exciting once again (finally, after how many years?).  You are purchasing in a market that has bottomed out and from all signs, appears to be in a full recovery.  With rents as high as they are and mortgage rates a rock-bottom lows, it is simply a good time to buy a home for many buyers right  now. Although “Exciting” can also mean competing with other buyers for the same property!  Don’t worry too much though, there are always new listings hitting the market, you just need to act quickly on them.

For those of you who read the Market Update regularly, you’ve heard the following from me time and time again over the past few months and could tell the story yourself.  Inventory remains at lows we haven’t seen in many, many years and sales are increasing at a rapid rate (a 12% increase from 2011).  Considering we haven’t hit the high season yet, I believe the inventory of homes will continue to remain flat if not fall as more buyers start shopping for homes in the summer.  The average price of single family homes rose 2.2% from the previous year and the price of Denver condos rose 3.5%.  At the same time, the average days on market fell over 15% from the same time last year.  I believe these trends will continue.  Certainly some of the upward move in pricing can be attributed to more higher priced homes selling in the current market, but the fact remains, homes and condos are selling across price points. We are finding it competitive even in the $600K+ range right now!  If you are considering selling your home, NOW is the time contact me!

When does the media start reporting about Denver’s robust housing market?  The positive news is slowly trickling out and word is getting around.  Denver is quickly becoming one of the best housing markets in the nation!  Recently Case Schiller ranked Denver the 2^nd best metropolitan area for housing, only behind Detroit (values fell so low in Detroit, they had no where to go but up!).   Positive employment news has trickled out as well, such as the ManpowerGroup ranking Denver as the 5^thbest hiring outlook in the nation.

Denver IS the place to be!  And how about Peyton Manning?  Denver will find itself in the spotlight because of our new quarterback and the resulting free press and nationally televised football games.  This must have some positive impact on our downtown Denver real estate market as well.

Two Bedrooms, one bath and listed for only $379,000 make this residence an amazing opportunity to own in the much sought after Glass House in Riverfront Park.

In the Downtown Denver condo and Denver loft market, the Glass House is consistently one of the most popular.   Here are the reasons why…

1. Location, Location, Location…. The Glass House is located in the beautiful Riverfront Park neighborhood nestled between LoDo and LoHi and an easy walk to both.  Riverfront Park enjoys access to the Cherry Creek Bike trails, the green spaces of Commons Park, and surrounded by restaurants, shops and amenities.
2. With a great walkscore the Glass House offers access to the Downtown via bike, foot, and public transportation.  Riverfront Park enjoys three pedestrian bridges into the surrounding neighborhoods, bike and running trails connecting at Confluence Park, and just a block away from the new Union Station light rail station (and light rail system hub under construction).
3. The Glass House offers one of the best amenity offerings of any Downtown Denver loft or condo tower.  The Glass House amenity list includes a swimming pool, fitness center, club lounge, outdoor grill, media center, and even a continental breakfast every Friday Saturday and Sunday.
4. The pool is worth mentioning again.  The Glass House pool and pool deck offers a huge space with ample outdoor seating and lap lanes.  For those seeking more than a dipping pool the Glass House pool may be the best in Denver.
5. The Architecture of the Glass House offers floor to ceiling glass, high ceilings, and beautiful views of both the city and mountains.  This particular residence is on the 11^th floor which is unique with 11 foot ceilings instead of the regular 10 foot ceilings
6. Restaurants within walking distance of the Glass House include Zengo and their new wine bar, Sushi Sasa, Ale House at Amatos, Lola, Vista, Linger, LoHi Steak Bar, Protos, Denver Beer Co., Williams and Graham, Wynkoop Brewery, and so many more.
7. Glass House residents are centrally located between all three sporting arenas.  Just a short walk from the front door residents can enjoy Rockies Games at Coors Field, Broncos games at Sports Authority Field, and your choice of Nuggets or Avalanche games at the Pepsi Center.
8. Combine everything and you have all the enjoyment of Downtown Denver living within walking distance.  It just might be the perfect opportunity to live car free.

To learn more about this amazing NEW Downtown Denver condo listing contact anyone on the New Era team to schedule a showing today.  At this price, this residence won’t last long.

A group of real estate investors were recently visiting to learn more about the real estate market that is being discussed from coast to coast.

The list of reasons why the downtown Denver real estate market is so popular continues to grow.  From a local’s perspective it is easy to understand.  Denver offers one of the best climates of any city with over 300 days of sunshine and four seasons to enjoy.

The list continues to include the hundreds of restaurants, the new transportation network, the miles of biking and hiking trails, and of course our great urban plan with beautiful Denver lofts and condos.

Now the most recent news from the Denver Business Journal reported that Denver is also in the top 5 markets for hiring.

Many investors consider employment the single most important local factor driving housing demand.   Employment enables home ownership.  Communities with low unemployment are adding jobs that create strong demand for both home purchases and rentals. Local workers can afford to switch from renting to homeownership. Newcomers are attracted by employment opportunities, and they need housing, which strengthens demand and improves prices. Better prices encourage Local residents to sell their homes and buy new ones, which creates even more demand.

Every month the Bureau of Labor Statistics issues unemployment rates for every metropolitan area in the nation. Looking at how your community stacks up against others across the country can be one factor when considering the market strength.

Denver’s growing employment base and the hiring of new workers is driving some of the growth we are seeing across the downtown Denver loft and condo markets.

Positive job growth isn’t just helping the housing market.  It is also driving the creation of new restaurants, shops and amenities.  Walking through the Lower Highlands (LoHi) neighborhood one can easily see the growth of this great hip and popular neighborhood.

Contact any of us at New Era Realty to learn more about the great downtown Denver real estate market or Denver relocation.

March is approaching and Spring will bring warmer weather soon! Make sure to get those last snow packed ski trips in at any of the local ski resorts before it's too late. For those of you who are looking to have fun and stay in the metro area, you can take your kids to the 9th Colorado Baby and Kidz Expo at the National Western Complex on the 25th or stop by Comedy Works on the 26th for the Ultimate Family Game Show Challenge to play some of your favorite game shows live on stage. Denver Restaurant Week starts February 25th and goes through March 9th. Enjoy multi-course meals at some of Denver's best restaurants for just $52.80 for two. Make your reservations now, before it's too late! March 2nd is Denver Savor the Flavors Walking Tour downtown. Radio Disney will host All About Kids March 10th and 11th at the Colorado Convention Center and the World's Largest Connect Four Tournament will be help at Stoney's Bar and Grill on the 11th. The Pepsi Center will have Nuggets, Av's and Mammoth games all month long in March and the Rapids return on March 10th at Dick's Sporting Goods Park. Upcoming concerts include Radiohead, Kelly Clarkson and Miranda Lambert at the 1stBank Center, Flogging Molly and G. Love and the Special Sauce at the Ogden Theatre and Korn and Snoop Dogg at the Fillmore Auditorium. For tickets to any of these events click here. Boulder events include the Boulder Top Restaurant Tour, and the Boulder Savor the Flavors Walking Tour.

With there being so much to do in Denver, it’s no wonder why this city is so attractive.  As always, contact us to learn more about Denver lofts and condos for sale.

Many current home owners and past clients of ours are wondering whether now is a good time to list and sell their home? The answer in most cases is a resounding, "YES!" Many of you have probably considered selling your home over the past few years but didn't want to "lose" any money or maybe didn't have the equity to make the numbers work. Because of the uncertainty in the housing market and overall economy, many homeowners just didn't believe the timing was right to upgrade to a new home either.

If you own a Denver condo or house that you are considering selling and can answer "yes" to most of these questions, it's time to pick up the phone and call me!

1. Do you have a reason to sell your home? Upgrading, downsizing, relocating, can't afford your home, or otherwise? Testing the market still isn't a good idea; you need to have a motivation to sell.
2. Did you purchase your home more than 3 years ago? If not, did you put at least some money down when you bought it? You should have some equity at this point and possibly realize some appreciation on top of that.
3. Are you willing to make minor improvements to your home to prepare it for sale? This may include some basic staging and other low-cost items that will help it sell faster and at a higher price. The homes that sell in the current market are not only priced competitively but also sparkling clean and updated.
4. Do you have an idea where you want to move and the requirements for your next home? If your home sells quickly, what happens? I can help you here too, of course.

Depending on what city you live in and the value of your current home, your competition is likely scarce at this moment in time. Own a home in Aurora? Over 96% of the properties listed on the market are under contract right now! Denver? Over 68% are under contract!

Again, if you are considering selling your home or Denver loft this year, NOW is the time to contact me!

To read more about rising Denver area rental rates click here.