The Stonegate Village 2020 Real Estate Market Update is sure to surprise. I don’t think anyone believed that 2020 would have been so productive or expected a 4.87% price appreciation.
This real estate market update does not include new build homes. The stats below are specifically for resale single family homes within the Stonegate Village Neighborhood in Parker, Colorado. I pulled all of tis data from the Denver MLS. Off market sales are not used in this data.
Siting in my house in March during lockdown I never thought I would see 150 homes sold and closed and the average sale price up 4.87% in Stonegate for 2020. For 2019 the same search criteria had an average sale price of $508,190 and for 2020 it was $532,959. In 2019 there were 174 homes sold and closed versus 150 for 2020. Pretty amazing since we couldn’t even show homes for 10 days during the lockdown.
Here is a quick link to a spreadsheet with all of the homes that sold in Stonegate in 2020.
The months of lockdowns and restrictions only brought the need for good housing to the forefront of everyone’s mind. Some wanted bigger, some wanted newer and many just wanted a home that fit their current lifestyle better. Once the all clear was given both sellers and buyers were scrambling. I saw panic selling early on. Sellers thought the market was crashing and buyers were eager to pounce. If you listened to the NEWS Media you would have thought we would all be living in cardboard boxes by now and standing in soup lines.
I had several buyers that were patient but steady with their search and it paid off huge. With a little strategy my home buyers picked up several homes at almost distressed level prices significantly below true market value. For about 30 days there were sellers that were very willing to negotiate and other sellers that held the line and wouldn’t budge. The sellers that needed to sell and wanted to negotiate were our target and we got the homes at great prices.
I had a few buyers that were able to pick up substantial homes in the $1.5 million to $3.2 million range. They made so much money on the sale of their longtime residences and the super low interest rates helped their buying power significantly. Million dollar homes around Parker, Colorado used to be a rare item. Now they are a dime a dozen and buyers don’t seem to blink at a million dollar price tag. I think years of saving, a great economy and learning hard lessons about debt in the last crash have put most homeowners in a super strong financial position.
I have a several sellers pull their homes from the market during the lockdowns. Some of it was panic, some was for medical reasons and others were just waiting it out. Many of the homes that were pulled from the market were eventually sold in 2020 however some will be coming back onto the market in 2021. I don’t think there was any right or wrong way to play the 2020 market. I think we all just went with the flow of what felt right at that time and everything seems to have worked out.
Going forward for 2021? I believe interest rates will stay low and inventory is going to be tight. I’ve been on a dozen different economic Zoom meetings over the past month and not one of the leading economist said we’ll have a down market in 2021. They predict full steam ahead and business as usual…whatever that is now days.
If you have lived in your home for several years it might be time to ring the cash register and capture those gains and move on. Many sellers for 2020 gave up on the idea of trying to remodel their outdated homes and decided to look for something newer, bigger and better. If you’re happy where you are then stay put. No matter whether you stay or go you need to update your home. Updated homes sell better and preserve your asset going forward. With the tight inventory many sellers decided not to update or fix deferred maintenance instead they left it for the new homeowner. In this market you can sometimes get away with that but when the market changes it won’t be so easy.
New build homes will help with inventory but you better have a plan when you go to buy a new build home. Remember that the sales person you meet onsite works strictly for the builder and they represent the builder. They are not your “buddy” after you sign the contract and they give you little or no guidance during the build process outside of what is being done to build the home.
Steven Beam is a Realtor in Parker, Colorado. 303-941-4663
Current homes for sale in Stonegate