What’s happening with Denver builders right now?

It’s amazing to think that the Denver homebuilding industry, which was roaring only five years ago, has been so quiet recently. What is going on with the industry? Two recent reports by the Denver Post, along with our own observations, reveal a few new trends in the homebuilding arena.

New homebuyers are attracted to features, not size, right now. Smaller, simpler homes are selling, partly because of the new Homebuyer Tax Credit, which is attracting many first-time buyers. The recession has also taught people to analyze their finances and buy what they can afford versus the maximum approval price..

Like all current Denver sellers, builders are facing fierce competition from foreclosures, which has forced them to find creative ways to remain competitive. They are finding success with building smaller, less expensive homes. Shea Homes recently opened its first community at Reunion in four years, targeted at younger buyers, which features smaller and simpler designs

Regardless if you are a first-time homebuyer, or a move-up homebuyer, now is the time to jump into the Denver real estate market. For information on purchasing a Denver home, please contact TeamCox Realtors at 303-400-6060. We have extensive knowledge of all of the local Denver homebuilders, and we are here to share our insight with you.

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The Parade of Homes has gotten a facelift this year– it has a new name (Denver Luxury Home Tour), it is being held much earlier in the summer, and the homes are scattered throughout the Denver metro area, not just at one site.

The event will run from June 5th to July 5th – to be held on Fridays, Saturdays and Sundays from 11am to 6pm. The homes on the tour, priced between $1 million and $6 million, showcase multiple Denver-area luxury neighborhoods, including  Belcaro (Denver), Observatory Park  (Denver), South Bonnie Brae (Denver), The Timbers (Parker), Pradera (Parker),  Whisper Canyon (Castle Rock),  Escavera (Castle Rock), The Preserve (Greenwood Village), One Cherry Lane (Greenwood Village), Heritage Hills (Lone Tree),  Cherokee Ridge Estates (Littleton), and many more.

Tickets are priced at $15 for Adults, $12 for Seniors (65+), and Kids 12 and under. Tickets are only available online or at King Soopers – they are not available at the door.

We are truly excited about this event’s new format, since it will allow attendees to get a taste of so many different high-end neighborhoods in the Denver real estate market. For more information on the Denver Luxury Home Tour, please contact TeamCox Realtors at 303-400-6060. You can also visit the Tour’s website, which has detailed information.

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Denver-based M.D.C. Holdings Inc., a major player in the Denver real estate sector, is faring well in the current real estate downturn. Bloomberg reported last week that M.D.C. Holdings Inc., builder of Richmond Homes, is one of the few homebuilders “staying on top of things.” Richmond Homes primarily caters to first-time and move-up buyers. The average price of a Richmond Home was $301,700 in the third quarter, a 9 percent decrease from 2007. In addition to Colorado, Richmond Homes operates in Utah, Arizona, California, Nevada, Florida, and in the mid-Atlantic region.

The builder, which reportedly holds $1.4 billion in cash and investments, boasts the top-rated stock in the entire homebuilding industry. According to the Bloomberg article, M.D.C. Holdings avoided expanding too quickly during the housing boom by not loading up on land and assuming too much debt, like many other builders did.

Once the housing market rebounds, Richmond should be in a fabulous position in the Denver homebuilder market. Not only will it have the funds necessary to purchase cheap land, but it has also lost several of its competitors during the real estate downturn, including Centex and Beazer, which ceased operations in Colorado.

For more information on the Denver real estate market, or regarding Denver homebuilders, please contact TeamCox Realtors at 303-400-6060.

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What is available in the Denver housing market this autumn? Here is a rundown:

New Construction Before Year’s End: I received a list of Richmond American’s inventory yesterday, and wanted to share a few thoughts with my perspective homebuyers. There were many homes available in all price ranges. New construction in the Denver area is fresh on my mind, ever since we helped a young couple purchase a new D. R. Horton home last week. Homebuilders are compelled to bargain in this challenging market. We are able to negotiate bonuses, lot upgrades, decorator upgrades, closing costs and more!

Pre-Foreclosure and bank owned homes:  There is still an inventory of distressed sales in the Denver real estate market, but they are going fast. We do not expect them to be a huge factor in 2009, so act fast!

Homes that need updating:  Homes with dated interiors, poor color choices, or neglected yards are usually the last to sell.  These homes can present a great opportunity for buyers who are willing to put some time and effort into repairs and upgrades.  One of our clients recently purchased a home for $167,000. While we knew this was a great deal, we didn’t realize how good of a buy it was until the appraisal came in at $180,000.  Even the lender’s appraiser was impressed!

Don’t wait. There are so many folks out there that lament the “could of,” “should of refrain,” so don’t be one of them!  If you have questions regarding inventory in the Denver real estate market, please contact a TeamCox member at 303-400-6060.

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TeamCox had the pleasure this week of helping a young couple with the U.S. State Department transfer to Denver from South Carolina.  All of the pieces were in place to make this one of the most fun transactions this year. The Thompsons are excited about their relocation, their South Carolina home sold in one week and best news of all, Cindy is pregnant with their first baby. 

After fully exploring the re-sale market, they wanted to see what the new construction market in Denver had to offer.  Yes, there is still a new construction market within the Denver real estate market.

 

The base price of their new 2,000 square foot home on an 8800 square foot lot included the following:

 

1. $10K in closing costs if they used D. R. Horton’s lender
2. Air conditioning
3. Full landscaping package
4. Full back yard fence
5. Structural concrete flooring in the basement
6. 3-car tandem garage

 

Acting as their buyer’s agent, Jim was able to negotiate:

 

1.      A $2500. G. E. stainless steel refrigerator

2.      $2400 in carpet and tile upgrades

3.      A $1000 referral fee to Cindy’s parents who live in Ft. Collins, CO.

 

The time could not be better to buy a home in Denver.  The time is especially good to be buying new construction.  Below is Mark Thompson’s unsolicited testimonial:

 

“Thanks!  And it was a pleasure to work with you and Jim.  I’m sure he’s heard it a million times, but he displays remarkable patience.   Also, we wouldn’t have been able to negotiate the free extras as well as he did.  He made it very difficult for Nancy to say no!”

Mark and Cindy Thompson

November 2, 2008

 

 

If buying a home, new or re-sale is in your future, please contact us, so we can help you find a great buy.  We are convinced the Denver market has bottomed out and we will even see rising home prices by mid to late spring 2009!

 

 

 

 

 

 

 

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Another Homebuilder Exits Denver Homebuilder Arena

Dallas-based Centex Homes is reportedly leaving Colorado. According to 9NEWS.com, the builder plans to cease operations by Spring 2009. The company, which builds in 10 communities from Castle Rock to Fort Collins, vows to complete all homes under construction in addition to unfinished homes. Denver-area Centex communities include: Highlands at Castle Oaks in Castle Rock, Carriage Hills Castle Rock Collection, Wheatlands in Aurora, Weaver Creek in Morrison, and several other communities north of Denver.

Centex’s departure is in response to Denver’s ultra-competitive homebuilding arena and difficult market conditions. Atlanta-based Beazer Homes has also announced plans to leave the Denver market by the end of the summer. Chicago-based Neumann Homes, who built homes at four Denver area communities, declared bankruptcy last year.

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The Parade of Homes, an annual event produced by the Home Builders Association of Metro Denver, showcases the cream of the crop of the Denver real estate market - construction, interior design, energy-efficiency technology and landscaping, etc. Past parade sites include: Southshore (Aurora), Reunion (Commerce City), Pradera (Douglas County), Vista Ridge (Erie), and Stapleton (Denver).

• The 2008 Parade of Homes runs July 26 through September 1 (Labor Day).
• Hours: Mondays through Fridays: 10am—7pm; and Saturdays, Sundays and Labor Day 9am—8pm.
• Tickets are $12 for adults; $8 for seniors 65+ and children 6-17; free for children 5 and under.
• Directions: Solterra is located a half-mile east of C-470 and the Alameda Parkway exit in Lakewood.
• The parade will auction select items, including furniture, bedding, a stained glass window, etc., on August 30 and 31. 
• This year’s event is “waste-free” (compostable paper products, corn or sugar-based flatware).

For more information on the 2008 Parade of Homes, or regarding purchasing a new home in Denver, please contact TeamCox Realtors at 303-400-6060.

Note: The pictured homes from this year’s parade, courtesy of The InterPro Group, Inc., are of one of the Tuscan style homes by Element Custom Builders and one of the French Provencal style homes by 9 One 5 Custom Homes.

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