I'm considering buying in Westminster, but I'm worried about the declining values, especially in the $400K-600K range. What are the trends?

Asked by now_a_buyer, Westminster, CO Mon Mar 26, 2012

Are values declining in neighborhoods such as Legacy Ridge?

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14
Agents for H…, Agent, Boulder, CO
Mon Mar 26, 2012
BEST ANSWER
We have lots of stats in various communities on our web site...and we do break out Westminster in those. Statements about what's happening in the Denver metro area won't give you much useful guidance, since averaging out what's happening across the metro area covers up the vast differences in what's happening within the submarkets...and that's really all that matters. I would also be cautious about any general statements about Westminster, since as you appear to presume, what's happening with basic homes is likely different than what's happening with more upscale properties. Our stats separate out various house sizes in each community. That's not quite the same as price ranges, but highly correlated.

If you take a look at the stats section of our web site, you can look at the long term trends for pricing in Westminster (http://www.agents4homebuyers.com/Statistics-Introduction.html). We also have some good info in our FAQ section on the local market (http://www.agents4homebuyers.com/FAQ-Real-Estate-Market.html).

We will be doing our stats for the first quarter of 2012 in a week or so. In general, I don't think trends for a particular year tend to become particularly apparent until we're in June or so, so I don't think anyone can really give you good info on trends for 2012.
0 votes
Suz A, Agent, Longmont, CO
Mon Mar 26, 2012
Hello Buyer,
They say trends are trends until they stop being trends.

We may be seeing the start of a new trend in the Denver metro area. If you have been paying attention to the local news, you have probably heard that inventory has dropped in the Denver metro area and sales are even lagging in some places (because so few are selling). You want to go to the rooftop and yell: "It's time someone built something!"

A Coldwell Banker agent in the southeast part of Denver remarked just yesterday that they can't hold enough open houses to suit other agents. There just isn't inventory to show.

If this is a trend, low inventory usually translates to higher prices. We're in an odd time, though. With foreclosures still coming, a rise in prices may be delayed. The good news is the Denver area is clearing the bank-owned properties. Up here in Longmont, some 40 percent of the homes on the market are foreclosures. Buying, meanwhile, has been getting stronger. One of the reasons Longmont is so active is agents from out of town are working Longmont more because inventory is so short in places like Louisville and Boulder.

Declining values? There may be places where prices are not responding - yet. An agent can spend some time with you if you want to get into the specifics you are asking for. Contact a local Realtor.

Best of luck to you.

SuZ
2 votes
The Kinslow…, Agent, Centennial, CO
Mon Mar 26, 2012
You need to pick a Realtor and give them the names of the neighborhoods and areas that you are concerned about. Let them run the stats on those neighborhoods for you. Some neighborhoods prices have started to pick back up, actually many neighborhoods prices are going back up. If you've been out shopping and making offers, you may be seeing multiple offers on many homes and find that you are getting out bid every time you make an offer. I personally am getting tired of writing contracts for the same Buyers over and over because we keep getting outbid even when we write the offers for over the asking prices. We are at the point with many of our Buyers that we have them set up on daily listing alerts, the second we see a new listing in the price range and area we run to see it and write the offer immediately until they finally get a house, but these are mostly buyers in the $200,000 to high $300,000's not in the $600,000 range yet. So what happens with the $600,000 range? The people that are selling their homes in the $200,000's to $300,000's are moving up and the $600,000 range is going to have the same problem for buyers as the lower ranges are seeing right now. You need to call a Realtor and look at the numbers, then decide if this is the time to buy your big house or if you should wait till the prices go up and the inventory goes down. If you have the statistics in front of you, you will be much better able to make your decision. The news is usually a few months behind what's really happening but the first time buyers and the relocation buyers have been buying up a lot of property over the last 3 or 4 months and the news is starting to report it. I hope you find your answers and make a good decision for you, of course non of us know if it will crash again or if we're definitely on our way back up, all we can do is get as much info as possible and make a decision. I hope you are able to Buy Low and Sell High, you don't want to wait until everybody else is doing something, when everyone else starts buying those high prices then it's too late for making a profit. Wow, I write too much, I hope it's helpful!

Sandy Kinslow
The Kinslow Team LLC
Codlwell Banker
kinslowteam@aol.com
1 vote
Mark C Munro, , Westminster, CO
Mon Mar 26, 2012
The key to buying in this price range is subject to the going Market Value. Over priced homes will not sell, but those priced with the current Market in mind and motivation will sell. Homes in Legacy Ridge have been selling at a brisk pace. Joe Gallo in my office specializes in Legacy Ridge and has seen high numbers of Buyers from out of state coming to Colorado to escape high taxes in their home states and to pursue Colorado Lifestyle and climate. Retirees and new hires.
All this being said, if this demand continues, will see the inventory reduce and prices will be driven up by market demand. Multiple offers are becoming common place in the price range of $250-500K
in Broomfield, Boulder County, Thornton, Jefferson County and Westminster. Add to that increasing interest rates, hang on we're in for a Seller's Market by Summer!
1 vote
Brandon Seib…, Agent, Westminster, CO
Mon Mar 26, 2012
Property values are stable in this price range in Westminster. With fewer homes on the market, it is just a matter of time before prices begin to rise again. Now is a great time to buy...before the prices start to rise again. If you are interested in learning more, please feel free to call us at 720-323-5839 or 303-667-0455 or stop by our office at 118th & Pecos at The Ranch.
Thank you,
Brandon
1 vote
Ritchy Haynes, , Denver, CO
Wed Oct 23, 2013
I have been seeing a fair amount of price reductions out there. All lenders will appraise the home and prevent you from overpaying for a home, however no one can predict the market and depending on your intended time in a home this is a real risk no matter where you buy!
0 votes
Jonathan Gha…, Agent, Denver, CO
Fri Oct 18, 2013
Just for an update on this question: It looks like Legacy Ridge has had no problems appreciating in the last year (along with most other neighborhoods). There are houses very recently sold even in the $800k's, and houses under contract right now ranging from $420k to $974k. It's not only held its value but appreciated, and there is strong demand for Legacy Ridge. To get a house there in the $400k's right now would be an achievement...but it is possible!
0 votes
Caleb Johnson, Agent, Arvada, CO
Tue Oct 15, 2013
To counter the declining value just keep in mind two things: We are now in the slower time of the year because people tend to not want to move in the winter and the other thing is that we have not yet hit the housing boom. We are still in an upward trend even though the inventory is less than that of July. If you are brave I would house hunt in the winter. It paid off dividends for me in my home purchase last December. Feel free to contact me for any questions as I know this is a dated response.

Caleb
cljohnsonhomes@gmail.com
0 votes
Keelan McCam…, Agent, Broomfield, CO
Sun May 6, 2012
Hello,

Here's a link to a chart outlining Westminster sales for your price point (last 12 mos):

http://charts.altosresearch.com/altos/app?c=WESTMINSTER&…

It's a seller's market at most price points in Denver metro. Within the past year we've seen an increasing trend toward luxury homes selling more quickly as well.

Hope this little chart helps. I've got lots more data if you're interested.

In my humble opinion, it's an excellent time to buy. Consider this: how long do you think that interest rates will continue to stay this low, with the recent increases in home prices in Westminster? I don't know the answer for certain (no one does), yet I'll go out on a limb and say the total cost of home ownership will go UP over the next year....with increased home prices typically increases in interest rates follow, over time.

Take care! :)
Keelan McCamey, Realtor
303-709-8778
0 votes
inventory at your price point is almost 1/2 now of what it was a year ago...supply & demand at work here...prices are simply on the way up, generally speaking. if/when you find a home you're interested in, of course you'd want your agent to pull comps for the last six months to see if a particular area is following the general trend here, or is doing something different.
Flag Sun May 6, 2012
Kathleen Nol…, Agent, Broomfield, CO
Tue Mar 27, 2012
Prices and values are rapidly changing through the Denver Metro area. It is critically important to pull recent comps whenever and wherever you buy. Reduced inventory, such as Legacy Ridge has, certainly will put an upwards price pressure on homes in that area due to pure supply and demand economics.

Good luck in your search. Please let me know if I can be of help. I love to work with buyers as a Buyer's Agent..
Web Reference:  http://NolanSells.com
0 votes
Lillian Live…, Agent, Lakewood, CO
Mon Mar 26, 2012
The trend, metro-wide, on properties in the $400K plus range has been that they are declining in value, as demand dropped. Houses in the up to $250 range have been holding steady and in some neighborhoods gaining ground.
It is a particularly good time to be buying in the $400+ range, as inventory is available and demand is relatively low.
0 votes
J. David Lam…, Agent, Denver, CO
Mon Mar 26, 2012
Although home values went down in Legacy Ridge over the past year, sales activity is picking up in this price range and inventory is down. I would expect for prices to begin going up again soon but there is no way to know for certain. See the link below for a blog post I wrote in February about Legacy Ridge market trends. Please let me know if I can be of any further assistance.
J. David Lampe
Your Castle Real Estate
303.550.8563
0 votes
Sally Grenier, Agent, Boulder, CO
Mon Mar 26, 2012
I can't comment specifically on Legacy Ridge, but generally throughout the Denver metro area, I'm seeing low inventory and high demand. I'm seeing properties go under contract quickly, sometimes with multiple offers. It's suddenly a sellers market in many areas If you're thinking of buying, I wouldn't wait, thinking you can "time the market". If you want to buy a house, you can afford it and it's the right time for you and your family, then do it!
0 votes
Chris Eisenh…, Agent, Broomfield, CO
Mon Mar 26, 2012
I think you answered your own question about the trends and declining home values in that price range. My office is at 120th and Federal in Westminster - give me a call and I would be happy to discuss specifics. Chris 303-349-5035
0 votes
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