Colorado REALTOR® Magazine February 2024 by Colorado Association of REALTORS

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FEBRUARY 2024

REALTOR Official Magazine of the Colorado Association of REALTORS®

MAGAZINE

The MLS Rule People SHOULD Be Talking About Page 10

PLUS:

We Are Not Just Leaders; We Are Servant Leaders Page 4

2024 Legislative Update Page 14

Short-Term Rentals Boost Colorado Mountain Economies Page 16

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The COLORADO REALTOR® is published by the Colorado Association of REALTORS® 309 Inverness Way South Englewood, CO 80112 (303) 790-7099 or 1-800-944-6550 FAX (303) 790-7299 or 1-800-317-3689

c o lo r a d o

REALTOR

MAGAZINE

FEBRUARY 2024:

EDITOR: Lisa Dryer-Hansmeier, VP of Member Engagement & Public Relations: lhansmeier@coloradorealtors.com DESIGNER: Monica Panczer, Creative Marketing Specialist: monica@coloradorealtors.com The Colorado Association of REALTORS® assumes no responsibility for return of unsolicited manu scripts, photographs or art. The acceptance of advertising by the Colorado REALTOR® does not indicate approval or endorsement of the advertiser or his product by the Colorado Association of REALTORS®. The Colorado Association of REALTORS® makes no warranties and assumes no responsibility for the accuracy or completeness of the information contained herein. The opinions expressed in articles are not necessarily the opinions of the Colorado Association of REALTORS®.

We Are Not Just Leaders; We Are Servant Leaders...................................................................... 4 CEO Update: Competition Is a Great Motivator... 6 The Work We Are Doing Will Have an Impact on Generations to Come............................................... 8 The MLS Rule People SHOULD Be Talking About....................................................................... 10 RPAC Update........................................................... 13 Legislative Update................................................. 14

SHORT-TERM RENTALS BOOST COLORADO MOUNTAIN ECONOMIES

This is a copyrighted issue. Permission to reprint or quote any material from this issue is hereby granted provided the Colorado REALTOR® is given proper credit in all articles or commentaries, and the Colorado Association of REALTORS® is given proper credit with two copies of any reprints.

Short-Term Rentals Boost Colorado Mountain Economies............................ 16 Colorado's Heart Award........................................ 18 What Are Your Plans to Grow Your Business in 2024?....................................................................... 20 Market Trends: House Sellers Re-engaged in January and Buyers Responded........................... 24 April is Fair Housing Month.................................. 33 Leadership Spotlight on Connie Tremblay.......... 34

The term “REALTOR®” is a national registered trademark for members of the National Association of REALTORS®. The term denotes both business competence and a pledge to observe and abide by a strict Code of Ethics. To reach a CAR director who represents you, call your local association/board.

RPAC Roadmap...................................................... 35 Top 5 Smartphone Tips for REALTORS®............... 36

WHAT ARE YOUR PLANS TO GROW YOUR BUSINESS IN 2024?

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FROM THE PRESIDENT

We Are Not Just Leaders; We Are Servant Leaders

Jason Witt 2024 President of the Colorado Association of REALTORS®

Greetings, Colorado REALTORS®! As your President for the Colorado Association of REALTORS® in 2024, I am thrilled to share my vision for the year ahead. Our chosen theme, "One Voice," extends beyond mere words; it symbolizes our collective dedication to unity, a shared vision, and a harmonious approach to our work. "One Voice" embodies a unanimous agreement among our leadership team, committees, and staff, aligning with our mission, vision, and Strategic Plan. Central to "One Voice" is the concept that, as a team, we will collaborate seamlessly, presenting a unified perspective and pooling efforts to achieve common objectives. It serves as a reminder that every leader and staff member, at National, State, and Local levels, plays a crucial role in our journey, and it is through unity that we can best serve our members. Crucially, we are not just leaders; we are servant leaders. This philosophy prioritizes the growth and well-being of people and the communities we serve. Unlike traditional leadership, which often revolves around the concentration of power at the top, servant leadership is about prioritizing the needs of others, and tirelessly working to help people reach their highest potential. As servant leaders, we put the needs of others first and work tirelessly to help people develop and perform at their highest potential. This approach isn't about command and control; it's about empowerment, support, and the selfless dedication to our members' success. It encapsulates our resolve to work as a cohesive force, a symphony of minds, united in our mission to serve you, the members of the Colorado Association of REALTORS®. In the upcoming year, as we unite under the banner of the “R” let's remember that our true strength lies in our unity. We are not isolated individuals; we are a team, a family, bound by a common purpose and a shared commitment to our communities and to excellence in the real estate profession.

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Together, we shall champion the cause of ethical and responsible real estate practices. As your leadership team, we strive to actively listen to you, ensuring that your concerns, aspirations, and needs are not just heard but actively addressed. Our leadership team is dedicated to ensuring that we provide the resources, support, and guidance necessary for our members to thrive. As I take on the role of President, I express deep gratitude for the outstanding leadership team surrounding me. They are individuals of unwavering dedication, compassion, and expertise, committed to serving our members and communities. Together, we form a united force, ready to face the challenges and opportunities ahead. Please remember that our journey is not about individual accomplishments or personal glory; it is about the collective impact we can make as a unified voice. "One Voice" is a call to action, a pledge to work together

harmoniously, and a commitment to put the needs of others first. I am excited to embark on this journey with all of you and have full faith that together, we will achieve great things in 2024. Let us move forward with purpose, passion, and unity. Together, we are one voice, one team, and one force for positive change in the world of real estate. “Let the Colorado Association of REALTORS® be a powerful vessel for REALTORS® that come after us.”

Jason Witt 2024 President of the Colorado Association of REALTORS®

FROM THE CEO

Tyrone Adams CEO of the Colorado Association of REALTORS®

Competition Is a Great Motivator REALTOR® Associations have been the leading force in the real estate industry at all levels for many years. We have set the standard for advocacy, professional development, and networking with over 1.5 million members nationwide, as well as close to 27,000 members in Colorado and 28 local REALTOR® associations. However, we are currently facing significant challenges. These challenges include mounting antitrust litigation, unstable volunteer leadership, and turnover among professional staff. As a result, our members are expressing frustration and concern about how we will continue to provide value to them. While many members still believe in the proven track record of national, state, and local associations of REALTORS® in shaping the real estate industry and providing services to professionals, others do not. We cannot simply rely on our past success. We need to adapt to the evolving needs of our members and consumers driven by new markets and technology. Now, it seems that REALTOR® Associations must adapt to a couple of new competitors who offer alternative approaches to real estate professionals. HERE ARE THE EMERGING COMPETITORS: 1. The Independent Real Estate Professionals Alliance (IREPA): IREPA focuses on empowering independent real estate professionals and creating a strong collaborative community. It addresses challenges faced by independent agents, such as limited resources, networking opportunities, and brand recognition. IREPA offers membership programs, access to shared resources, and marketing support to help its members thrive in a highly competitive market. 2. American Real Estate Association (AREA): AREA is a nationwide listings database that uses a private listing service owned by one of the founders. The platform, called the National Listing Service, allows member agents to set their own commission rates and does not require listing brokers and buyer's agents to cooperate. Member dues for AREA are half of what real estate brokers pay to be REALTORS®.

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While these are currently the only associations gaining attention, it would not be surprising to see more emerge in our society that tends to copy successful ideas. WHAT DOES THIS MEAN FOR REALTOR® ASSOCIATIONS? Competition exists in every profession. Is it a bad thing? The emergence of these competing associations offers real estate professionals more choices to meet their specific needs and encourages healthy competition. This competition will push REALTOR® Associations to reassess their offerings and adapt to a changing industry and market dynamics more quickly. I recently read a quote that said, “competition is the best form of motivation” - Cordae. I couldn't agree more. It is important to note that most state REALTOR® associations hold a significant market share of real estate licensees, with Colorado being no exception. How do we stay relevant as REALTOR® associations? We are urging our members to clearly communicate their value and what they do. As REALTOR® Associations, we must practice what we preach. We act as advocates, educators, community builders, provide networking platforms, and offer alternative dispute

resolution options for REALTORS® who voluntarily choose to be part of our association. We do not take for granted that our members have a choice each year; we must earn their trust by helping them succeed in their businesses. For over 100 years, the REALTOR® Association has worked to meet the needs of our members, local associations, the real estate communities, and current and future homeowners. If CAR, your local association, or NAR didn't exist, who would be able to replace us and tell our story of what we do for you? From my point of view, the REALTOR® Association remains the dominant and most influential organized real estate model, and we offer something that will be hard to match. These alternative models currently do not offer the same advocacy at the state capitol, business communities, and Division of Real Estate. In conclusion, the emergence of alternative models should not make us panic or be afraid. Instead, they should remind us that membership renewal is something we must continuously earn. We should always strive to be better for those who choose to identify themselves as REALTORS®. We are ready!

FROM THE PAST PRESIDENT

Natalie Davis 2024 Immediate Past President of the Colorado Association of REALTORS®

The Work We Are Doing Will Have an Impact on Generations to Come A Farewell Message from Natalie Davis, 2024 Immediate Past President of the Colorado Association of REALTORS®

An entire year has come and gone! My how time flies when we're having fun. How can I manage to say that 2023 was a year filled with fun, given all of the challenges to the industry and profession that came our way? I am proud to say that on behalf of the Colorado Association of REALTORS®, the entire leadership team was able to step up and serve the membership only in a way that REALTORS® know how to do. The 2023 leadership team took every opportunity to meet, engage, and learn from the membership across the state. One tremendous accomplishment of the leadership team is having the opportunity to visit with members at all of our local associations. Throughout the year, members of the leadership team would travel to local associations and regional association events to connect with the membership so that we can have a better understanding of the wants and needs of the members and to also celebrate the victories of the local associations. I have to say this was my favorite part of volunteering for the Colorado members. Every conversation I had throughout the year with our membership created an opportunity for me to learn more about real estate in the state of Colorado. One thing that became clear to me was that wherever you are in the state, the challenges that you may be facing locally are challenges that other REALTORS® are also facing. It also created an opportunity for us to identify ways to continue to collaborate with one another and support and uplift one another. The challenges that our association faced and will continue to face in terms of how we practice real estate, how we can best serve our clients, and the fight for private property rights is one that will carry on beyond my time as President of the Colorado Association of REALTORS®. One thing I know for sure, is that the work of the Colorado REALTORS® is

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one that cannot be lost in distractions, challenges, or adversity. We must face these opportunities as a way to articulate our value, both internally and externally. And most importantly, that we do not miss the opportunity to be the warriors and advocates for our real estate industry. Accepting the charge to not only uphold the code of ethics, but to also band together with one another as warriors do to protect our industry, and the communities that we live, work, and play in. I would like to leave you with a quote that I have carried with me over the last few years, by Lao Tzu.

Colorado REALTORS®, it has been an absolute honor to serve you as your 2023 President, and I look forward to continuing to work alongside you in the real estate space for many years to come.

Cheers, Natalie Davis 2024 Immediate Past President of the Colorado Association of REALTORS®

Watch your thoughts; they become your words. Watch your words; they become your actions. Watch your actions; they become your habits. Watch your habits; they become your character. Watch your character; It becomes your destiny.

The REALTORS® of Colorado are the thought leaders of the real estate industry that can paint the destiny and future of homeownership and private property rights throughout the state. Let us all stand strong in knowing that the work that we are doing will have an impact on generations to come. And may that continue to drive us to be the best versions of ourselves every single day.

LEGAL UPDATE

Scott Peterson General Counsel, Colorado Association of REALTORS®

The MLS Rule People SHOULD Be Talking About While the current scrutiny on the real estate brokerage industry technically began in March of 2019 with the filing of the Moehrl lawsuit, the intensity of the scrutiny became white hot on October 31, 2023 with the newsworthy verdict in the Burnett/Sitzer trial. Even the most casual industry observer hasn’t been able to miss the headlines associated with a $1.8 billion dollar judgement for “collusion and conspiracy” of the industry. Accompanying the scrutiny of brokerage professionals has been a focus on the American MLS system and its “compensation” policy.

MLS COMPENSATION POLICY The origins of the American MLS system date to the late 1800s when real estate brokers would gather to market their respective property listings to each other. Inherent in those marketing sessions was an agreement to compensate other brokers who brought their buyers to assist the listing broker in selling the property. Throughout the 1900s, the MLS system evolved dramatically into an organized, tightly managed, and policy intensive data sharing platform that was primarily owned and administered by local REALTOR® associations throughout the country. Of course, the 21st Century internet technology era fostered an explosion of the MLS system and its incredibly valuable, accessible and coherent data for real estate brokerage professionals and consumers alike. Currently, access to the vast majority of all MLS data is freely available to anyone with an internet connection. Throughout the historical development of the American MLS, the National Association of REALTORS® (NAR) and local REALTOR® associations have invested immeasurable money, time, and other resources to develop, manage, and maintain what has become one of the most valuable and accurate data information sharing systems in the history of the world. NAR, through its strict MLS policies, has long insured accurate property data for real estate brokers and consumers. Obviously, MLS “compensation” continued on next page

policy has been thrust into the national spotlight as the various lawsuits and federal investigations weave their way through their respective processes. As a result, NAR has reevaluated its compensation policy and, effectively, ended any mandatory offer of compensation to a cooperating “buyer broker.”

information. Just like Netflix or cable TV or the Washington Post. If you want the content, you subscribe - and pay – to access the content. In the case of CoStar, the subscription is VERY expensive (generally several hundred dollars per month).

Another fundamental distinction between CoStar and a traditional MLS is who can “list” available properties. On an MLS you must be a paid participant to “list” available MLS PARTICIPATION POLICY property. On CoStar, listing a property is completely free to both subscribers and non-subscribers alike. As a data Another long-standing NAR MLS policy is the information provider, CoStar is interested in aggregating “participation” policy. Since the inception of the MLS, the as much data/listing information as possible for the threshold requirement for someone to join/subscribe/ benefit of their paid data subscribers. (CoStar does offer participate in an MLS is that the individual is an actively upgraded, paid “listing packages” to individuals and/or licensed real estate broker (or appraiser) AND “actively brokers who want additional property endeavors” to buy/sell real estate. In listing features beyond the free, basic other words, if you want to subscribe Without the “offer of listings.) to the MLS, you must be a licensed broker who is engaged in the brokerage business in a “continual and ongoing” basis.

compensation” it is

Due to NAR’s MLS “participation” policy, unlicensed individuals are not able to subscribe to an MLS. Therefore, acknowledge what particularly since the internet age, they Why does the “participation” policy they have become… have been precluded from accessing exist? Historically, due to the MLS information. Obviously, in the “compensation” policy as described property information early 2000s, this outright denial of above, the participation policy has exchanges. MLS information to consumers drew been necessary to insure that only significant anti-trust scrutiny. Access actively licensed real estate brokers are to MLS information was effectively participants so that they can legally only available to consumers through both “offer” and “accept” compensation REALTORS® (based on a policy promulgated BY for brokerage services (which require an active real estate REALTORS®) and this gave rise to concerns related to antilicense based on state/federal laws). Due to the recent trust. reanalysis of the “compensation” policy, I fail to see any

time for the MLSs to

remaining need for the “participation” policy.

COMPLETELY OPEN THE MLS Without the “offer of compensation” it is time for the MLSs to acknowledge what they have become…property information exchanges. The “information exchange” business model is not new. They exist across many industries, including real estate. Specifically, one of the most prominent and successful real estate information exchanges is CoStar, a commercial real estate listing information exchange. CoStar uses a classic data “subscriber” model and, while primarily comprised of professional commercial real estate brokers, literally ANYONE may subscribe to CoStar and access the

To overcome the anti-trust implications of the participation policy, MLSs essentially just started giving away all of the MLS data to everyone…FOR FREE! Through IDX and VOW feeds, this information “syndication” process – through multiple IDX and VOW feeds – effectively all relevant MLS data into the hands of, again, anyone an internet connection. The American MLS is the opposite of an information subscription service. The current MLS business model effectively requires the people loading it with their exceptionally valuable listing information to subscribe and pay, while everyone else can access the information for free. This would literally be the equivalent of opening a FREE grocery store for people to come in and take as many groceries as they’d like while CHARGING anyone continued on next page

who wants to stock up the grocery store’s shelves! The current MLS business model may have made sense in an era of mandatory cooperating compensation, but it unnecessary now that the compensation policy is essentially gone. Moreover, it is entirely inconsistent any other digital content subscription model I can think of. YOU PAY TO ACCESS CONTENT, NOT TO PROVIDE CONTENT.

If a paid MLS subscriber wants to run an individual property report or set up a specific, recurring parameter search for themselves or an individual client, that can be distributed directly by the MLS subscriber to themselves, a third-party/ client, or both. But a non-subscriber would have no direct, independent access to any information or data through either syndication or brokerage firm websites.

I believe that significant change is coming to the real estate brokerage industry as a result of the legal and regulatory scrutiny being given to REALTORS® and MLS policy. Kudos to NAR and REALTORS® for envisioning, IMPACT OF A TRULY OPEN MLS building, managing, and maintaining a data sharing The elimination of the “participation” platform that is one of the finest ever policy would certainly have significant created. REALTORS® care so much about impacts on real estate professionals their MLSs and the integrity of the The elimination of and consumers alike. Moving to a information. But in the modern, digital the “participation” conventional information “subscriber” age, CONTENT IS KING. Information and policy would certainly model would remove all anti-trust access to it is increasingly valuable… concerns from an information “access” and real estate information as cultivated have significant standpoint. Because literally ANYONE – by American MLSs is as valuable as impacts on real estate from a professional real estate broker to access to Breaking Bad, Yellowstone, an astronaut to an auto mechanic to a NFL Football, or an Inman news/opinion professionals and retired widow – could equally subscribe article. Eliminating the “participation” consumers alike. and access the information, the need for policy would unshackle American MLSs free syndication would be eliminated. to acknowledge the extraordinary Indeed, IDX and VOW feeds would value of their information and place completely go away to support the new the burden of the cost squarely where “subscriber centric” model. The “free” access to the data it belongs… on the individual accessing the information. ends immediately in exchange for the paid subscription “Open” the MLS and “close” the free grocery store to create available to anyone who wants to subscribe. a sustainable revenue model. Like CoStar, basic MLS listings could be entered by brokers or individual property owners for free. Obviously, stringent protocols must be in place to maintain information accuracy and data integrity (with listing/MLS access privileges at stake for offenders). Compensation may be offered if compliant with RESPA or applicable state law, but it would not be required. MLS subscription fees, just like Netflix, Inman News, cable TV, satellite radio or any other digital subscription service, would be based on a subscriber contract and cost whatever the individual market will bear.

Mr. Peterson is the General Counsel of the Colorado Association of REALTORS® (CAR), but the perspectives and opinions shared here are his own and are not expressed on behalf of CAR, any other REALTOR® association, or any MLS. CAR does not own, control or operate any MLS or other data information sharing platforms.

REALTORS® Political Action Committee Thank you for supporting RPAC in 2023! After a tough year with the market and housing affordability, we came close to meeting our goal for NAR. We appreciate the hard work of our RPAC Committee and all members who helped us get close to our goal. 1. Total Raised: $ 959,503.89 (Goal: $1,060,000) 2. Participation: 36.7% (Goal: 37%)

In 2023, CAR staff and RPAC Committee Co-Chairs, Janet Marlow and Matthew Hintermeister, traveled the state for the RPAC road show and had a great turn out. We are excited to continue the road tour this year and visit

3. Major Investors: 275 (Goal: 301) A HUGE congratulations to the 13 local associations on hitting NAR Triple Crown RPAC goals for the year (Amount Raised, Participation, and Major Investors). Your dedication and support help shape the political future for the real estate industry, and we couldn’t do it without each and every one of you. NAR Triple Crown Local Associations: • Delta County Board of REALTORS® • Durango Area Association of REALTORS® • Estes Valley Board of REALTORS® • Four Corners Board of REALTORS® • Glenwood Springs Association of REALTORS® • Grand County Board of REALTORS® • Grand Junction Area REALTOR® Association • Gunnison-Crested Butte Association of REALTORS® • Loveland/Berthoud Association of REALTORS® • Royal Gorge Association of REALTORS® • Steamboat Springs Board of REALTORS® • Telluride Association of REALTORS® • Vail Board of REALTORS®

2024 LEGISLATIVE

LEGISLATIVE UPDATE

Brian Tanner VP of Public Policy, Colorado Association of REALTORS®

Update

The state legislature convened on January 10th for the next 120 days under the dome to tackle a host of issues with housing leading the way. Both chambers remain in overwhelming Democratic control: • State House: 46 Democrats (supermajority) – 19 Republicans • State Senate: 23 Democrats (one seat short of supermajority) – 12 Republicans For our 2024 legislative priorities, the Colorado Association of REALTORS® is committed to policies that will increase available housing units for all Coloradans, but particularly for first-time homebuyers or those struggling to find housing close to their jobs. We will continue to challenge policies that intentionally or unintentionally drive up the cost of housing – an outcome we truly cannot afford. We look forward to the optimism of a new year and new opportunities to engage in public policy. Thank you to all our incoming Legislative Policy Committee members who have answered the call to serve. They will be helping CAR steer good public policy that supports a strong housing market for consumers of all walks of life. Don’t forget to check in with a LPC representative throughout the session to find out what the LPC is working on in 2024 and all LPC bill positions can be found on the CAR website under the “Political Advocacy” page using the “CAR Bill Sheet” button.

NEW BILL COMING SOON ON SHORT-TERM RENTALS (STRS) We expect a new bill on short-term rentals (STRs) to be introduced this week. The Colorado Association of REALTORS® (CAR) worked proactively with the bill sponsors, Rep. Bird and Sen. Mullica, to exempt a property owner’s primary and secondary residence from being defined as a “commercial short-term rental unit” and assessed at a significantly higher commercial lodging rate. This bill allows small investors to use one or both properties as a short-term rental at the residential property tax rate while allowing those that are running a business of STRs to be charged at the higher lodging rate. A number of Coloradans aspire to own a second home elsewhere in our state or are looking to purchase property for retirement. A number of these property owners who offer STRs to offset a mortgage or increased housing costs, while others may rent their property when not in use by the owners. Colorado should not discourage this level of home ownership or affect retirement plans.

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This bill runs counter to Senate Bill 33 that simply puts every property owner who uses their property for 90 or more nights as a STR on the same level as major hotel brands by assessing all of them at the commercial lodging rate for property taxes.

of litigation would result in more difficulty for settlements of disputes, significant impact on insurance claims and more costs for Colorado businesses. HB 1014 will lead to increased costs for Colorado consumers on a spectrum of goods and services, and perhaps most significantly… housing.

BILL UPDATES

Despite objections and concerns from a number of industries, HB 1014 passed the House on 3rd reading on February 12th mostly along party lines with a few House Democrats joining Republicans in voting against the bill.

(Amend) HB24-1098 Cause Required for Eviction of Residential Tenant Sponsors: Rep. Mabrey, Majority Leader Duran, Assistant Majority Leader Gonzales, and Sen. Hinrichsen HB 1098 will be heard in the House “Transportation, Housing and Local Government” Committee on Wednesday, February 14th at 1:30 PM MT. CAR has requested multiple amendments and expects the committee to vote to include amendments that will significantly change the bill. One of CAR’s most significant concerns and changes requested was the elimination of the requirement for housing providers to provide two or three months of relocation assistance, depending on the circumstance. HB1098 would require a “just cause” in order to evict a tenant. This proposed legislation would restrict the housing provider to keep a tenant in the property unless the situation met a “no-fault eviction”. Landlords could still evict tenants with cause based on current law.

(Oppose) HB24-1014 “Deceptive Trade Practice Significant Impact Standard” Sponsors: Rep. Weissman, Rep. Mabrey, and Assistant Majority Leader Sen. Gonzales HB 104 would remove the well-established “significant public impact” standard for a Colorado Consumer Protection Act (CCPA) claim to allow a single claimant standing for a CCPA claim. This would likely lead to a significant increase in the number of CCPA claims, exposing REALTORS to lawsuits without E&O insurance due to the deceptive trade practice of CCPA claims.

TESTIMONY TRAINING RECAP To hopefully engage more REALTORS® from a variety of backgrounds and experiences, this session we will hold at least one Testimony Training, one of which took place on Monday, January 29th. We had a great turn out of approximately 160 attendees. The training touched on the process of signing up to testify in the legislature, how to prepare your remarks and why it’s important. As we are currently experiencing, we are in another heavy housing focused legislative session and testifying as a unified voice on housing specific bills can help CAR amplify our message. If you weren’t able to attend and are interested in learning how to testify on your own behalf, please contact govaffairs@coloradorealtors.com for the recording to learn more.

REALTOR® DAY UNDER THE DOME We were excited to return to the Capitol for a REALTOR® Day Under the Dome on Tuesday, February 6th. It has been a few years since we have been back in the Capitol and despite Capitol room occupancy constraints, this initial Day Under the Dome was incredibly impactful with most of our participating REALTORS® successful in having housing policy-related discussions with their Senators and Representatives. Click here to see photos from the day.

CAR General Counsel Scott Peterson testified in opposition to HB 1014 on February 7th during the House Judiciary Committee hearing on it. The increased volume

Short-Term Rentals Boost Colorado Mountain Economies While Catering to Diverse Traveler Needs, New Study Finds A new study commissioned by the Western Mountain Resort Alliance (WMRA) and conducted by RRC Associates and Inntopia reveals the significant economic and social contributions of short-term rentals (STRs) in Colorado's mountain communities. Examining the impact in Summit County, the study highlights the positive role STRs play in supporting local businesses, creating jobs, and providing diverse accommodation options for visitors.

KEY FINDINGS: • Economic Engine: STRs generated $1.7 billion in visitor spending in Summit County in 2022, supporting nearly 7,693 jobs and $103.2 million in local and state tax revenue. • Small Business Boon: STR guests inject significant funds into local businesses, spending an average of $607 per stay on lodging, restaurants, shops, and activities. • Diverse Traveler Preferences: STRs offer a variety of accommodation options, catering to different budgets, group sizes, and travel styles, attracting visitors who might not otherwise visit the region. • Responsible Management: The study emphasizes the importance of responsible property management practices in ensuring STRs contribute positively to communities.

housing – than second homes that are not used as STRs.

POLICY RECOMMENDATIONS: The study acknowledges concerns about potential negative impacts of STRs, such as noise disturbances and impacts on affordable housing availability. However, it recommends balanced regulations that recognize the benefits of STRs while addressing community concerns. This includes: • Collaborative stakeholder engagement between property owners, residents, and visitors to develop responsible regulations. • Data-driven policymaking based on comprehensive research and analysis. • Fair and transparent permitting processes that are easy to navigate for property owners. • Focus on responsible management practices such as noise control, parking regulations, and guest vetting. • This study confirms that short-term rentals play a valuable role in sustaining our mountain communities,” says Scott Blackwood, President of WMRA. “We remain committed to working with stakeholders to ensure responsible growth and a vibrant tourism industry that benefits everyone.”

• Housing Market: The study found that STRs were unlikely to be a major cause of increased housing prices in 2018-2022. Additionally, STRs generate more economic activity – and more funding for affordable continued on next page

CALL TO ACTION: The WMRA encourages policymakers and the public to engage in constructive dialogue about short-term rentals, based on data and the specific needs of each community. By working together, we can ensure that STRs remain a valuable contributor to Colorado's economy and communities, while respecting the quality of life for residents and preserving the unique character of our mountain towns.

SEE THE REPORT About the Western Mountain Resort Alliance (WMRA): The Western Mountain Resort Alliance is a collective of REALTOR® associations in mountain resort communities across the western US. The mission of WMRA is to improve the quality of professionalism and performance of association members through collaboration, progression, education, and advocacy. WMRA promotes real property ownership and works to improve the quality of life within its unique communities.

About RRC Associates: Founded in 1983, RRC Associates is a leader in the tourism, travel, recreation, and hospitality industries. RRC Associates provides a broad range of market research, land use planning, real estate, customer satisfaction, and media and communications research services. Their focus is on providing high-quality, customized market research, planning, and analysis services to our clients. About Inntopia: Founded in 2001, Inntopia develops software for the resort and destination travel industries. Their marketing CRM, ecommerce platform, and business intelligence products are used by hundreds of resorts, hotels, and destinations across the world including Vail Resorts, Alterra Mountain Company, Grand America Hotels and Resorts, Palmetto Dunes Oceanfront Resort, and Big Cedar Lodge. Contact: Jack Greacen / Kelli Walker Starrett WMRA Government Affairs Directors jackg@aegpa.com / kellis@aegpa.com

Colorado Association of REALTORS® Foundation

COLORADO’S

HEART AWARD

Do you know a REALTOR® who’s a community champion in Colorado? Nominate them for the Colorado’s Heart Award! The award includes a $3,000 donation to the winner’s charity of choice, honoring their dedication to community service. Recognize someone who’s making a real difference today. For details on how to nominate, visit www.coloradorealtors.com/HeartAward. Let’s celebrate our community heroes!

PURPOSE

Do you volunteer? Make charitable contributions? Are you involved with a nonprofit operating in Colorado?

DEADLINE MARCH 22, 2024

The Colorado Association of REALTORS® wishes to recognize Colorado REALTORS® who positively impact their communities through volunteerism, charitable contributions, and community leadership by awarding the Colorado’s Heart Award.

The award process is intended to acknowledge REALTOR® community engagement across the state, to promote volunteerism amongst REALTORS®, and to cultivate positive public relations exposure for the real estate industry.

www.ColoradoREALTORS.com/HeartAward

What Are Your Plans to Grow Your Business in 2024? By Mathew Schulz, CVLS, CML President, Residential Loan Programs, CAR Foundation Board Member

Happy New Year! It’s 2024, the beginning of another year full of opportunities. Are you going to take advantage of them? As I write this article at the end of January, the gyms are already starting to get back to their regular pace from the New Year boom and most people have not made it through Dry January successfully. However, that does not need to be us. We are going to set our goals and action plans in place and FOLLOW THROUGH! It is what will make good agents, great, and what makes great agents rockstars. So where do we start?

START WITH THE BASICS Think of like this: it’s the start of a new football season. Everyone has put on some summer weight and last season didn’t end quite the way we wanted it to. What happens on the first day of practice? The team isn’t running fancy trick plays - they’re stretching, they’re doing calisthenics, they’re shaking off the dust. We must do the same thing. For me, back to basics means hitting the phones, getting back on top of thank you cards, cleaning up the email inbox and to-do’s lists, and making sure I AM following through on all of the small tasks that add up into a high performing loan officer or real estate agent. I use Outlook for my emails, tasks, contacts, calendar, and as my customer relationship management system.

I firmly believe that you do not need to pay for a fancy CRM system where you only end up using 25% of the capabilities. In contacts within Outlook, you can put in nearly every data point you might use in the fancier CRMs and you can still creatively find ways to further maximize functionality. As a loan officer, when I type in a client’s name, I will put it in as Jane 3.75% Doe. This way, whenever any client calls me, I know immediately what rate they have before answering the phone. I put in their birthdays and their loan/purchase anniversary. Each morning when I get into the office, on my calendar pops up every birthday and loan anniversary. They each receive either a phone call, video call, or email. There are automated services you can purchase to send these out for you; however, I believe a 30 second video message via email goes a lot further than a generic Happy Birthday email postcard. Part of these morning calls is also communicating with your business and referral partners. You may have noticed a theme in my business strategy - client retention. My number one source of business is repeat and referral business (we all say that, but I truly live it – and best of all, in general – it’s free!). Also, when I say referral, my number on referral sources are not agents or financial planners, they are the people I have already done loans for. They know firsthand my skill and service level and are happy to refer me. Again, that source of business does not cost a nickel. continued on next page

COMMUNICATION Next, and I know this will be difficult for many people, however, part of my getting back to basics is having an empty email inbox. While I live and die by my task list, I consider my email inbox as a secondary task list. If I have an email, it means there is something that needs to be addressed, or, if it cannot be addressed that day, it should be put in the task list. This ensures that you are caught up on your communications and no one is waiting on you for a returned message or call. In Outlook contacts, if you need to be reminded of a follow up phone call with a client or partner, you can put in a follow-up date that puts it directly on your daily task list, and you can even have an alarm reminder pop up. I will even prioritize my tasks and calls for each given day. There are many more tips that I can give about using Outlook as a CRM, however, I would like to share some other basics that are necessary. As always, feel free reach out to me and I am happy to share. The bottom line, whatever software you use, USE IT!

FIVE STAR SERVICE I’d like to share what I do on closing day to ensure each client receives Five Star service for the life of the loan/ property. It starts with me attending every closing. As real estate agents, I am certain that you each attend all of your closings, and I feel that it is very important that lenders attend as well. It is the culmination of the transaction and if I have done my job properly when the clients are the happiest. I have a seven-minute closing speech that I give that spells out how I will be there as their loan officer for life and go-to customer service contact, how I’ll be following up with them for a smooth transition to the new loan, and a few pitfalls to avoid. I believe real estate agents should do the same. Let each client know that you will be following up after 30 days, six months, and after. Let them know that they will be receiving monthly newsletters or value reports, and that they can reach out to you anytime for a market analysis. Let them know how you can help them with any warranty issues or post-closing issues. Ultimately, have them walking out of that closing thinking you are the best agent in the world so they can write that Five Star review. At each closing, our company gives an Amazon gift card, two Firelight branded Yeti’s, and a handwritten thank you

note thanking them for their business, asking them for referrals and guiding them to Google to leave a review. Each company has a different setup, but please do something, and something meaningful. Are you a bottle of wine at closing kind of agent (meh…), or are you an agent that is giving them a personalized gift that has meaning to them that is also a good reminder of you? I also must stress the handwritten note aspect. A long time ago, I did a home loan through my best friend at a time when we as loan officers couldn’t do our own loans. I received a preprinted thank you letter from his corporate bank a week later and nothing else. He’s still my best friend, but I was severely underwhelmed.

AFTER CLOSING When I get back to the office after closing, I am ensuring that all paperwork is buttoned up, I have made my closing notes in my conversation log, and few more key tasks. I will pull up their contact file again to ensure that all possible information is in the contact file. As a loan officer, I’m scheduling my next phone call for their first payment date as I always like to call to ensure that everything is going smoothly. They often haven’t received a billing statement for that first payment, rather, they have a payment coupon from their closing package. It is also a good time to remind them that you are always their customer service contact and there to support them as long as they have the home and thereafter as well. I am a big fan of holiday cards; I ensure that I have them added to my Holiday Card list (the holiday card with pictures of the family and updates). It humanizes us with our clients and helps build even more customer loyalty. This next one is a big one. What are you doing on a regular basis to stay in front of your clients without “harassing” them? For the longest time, I would send out a weekly newsletter (that I paid for the content) to all business and referral partners and a monthly newsletter that I would send to my past clients and prospects. The unsubscribe rate from the monthly newsletter was high, and those that did receive it, very rarely read it. It was okay as a way for them to see my name once a month, however, it was NOT a value add. Fortunately, there are many more services that have far more interesting content. Personally, I am a big fan of Homebot, a monthly digest that is sent to continued on next page

homeowners with great data points about value, equity, upgrading opportunities, rental (both short and long term) opportunities, cash out opportunities, and more. I have had far more positive feedback from my clients for their Homebot Digests vs. the previous “boring” monthly newsletters. Even better for real estate agents, the Homebot system is a very inexpensive tool. I am not here to push Homebot on you, rather to ensure that whatever you are doing, it is a meaningful value add and not something that gets thrown in the garbage with the coupon books without even looking at it. I have heard that some agents don’t like Homebot (or other value tool applications) as they receive complaints from their clients regarding the value. Well, clients are always going to find something to complain about, the key here is simply to prepare them. Let them know that they will be receiving this digest and that the value associated with the report is an estimate, a starting point, and a conversation starter. It isn’t perfect - it is designed to get conversations going when there is interest in finding out about how much more they could afford, or how they could take cash out to purchase a rental property, all points to get conversations going to drum you up business. Also, and possibly most importantly, if they are receiving this information from this sort of digest, they are not seeking it on Zillow or other sites designed to poach your clients from you.

KEEP IT SIMPLE There are so many more marketing ideas and suggestions we could discuss and will down the road. Yet, here at the beginning of the year, I cannot encourage you enough to get back to those basics. There is no need to be holding fancy seminars and expensive parties (but if you are and it’s an open bar, please still invite me) if we are not taking advantage of the simple and mainly free opportunities your companies provide you that people seldom use. In conclusion, keep it simple. Pick up the phone, send a video message, stay on top of your database, cultivate your database, keep your CRM needs simple and not overwhelming, establish yourselves not only as professionals but customer service experts, do your follow ups, give meaningful and personal thank you gifts, provide true value-add follow up communications and again, whatever you do, just do it. If you have liked anything you have read here, please feel free to make a contribution to my GoFundMe page for my trip to Europe this year, so far I am at $0 out of $15,000 raised.

Mathew Schulz, CML, is the President of Firelight Mortgage Consultants in Greenwood Village, Colo., a mortgage company that he has owned for 15 years. He is also a board member of the CAR Foundation. You can reach him at mschulz@FirelightMortgage.com.

MARKET TRENDS

House Sellers Re-engaged in January and Buyers Responded Conditions set the stage for a busy, competitive spring market With the turn of the calendar and a dip in interest rates improving both attitude and buying power, sellers re-engaged, and buyers responded, according to the latest Market Trends Housing Report from the Colorado Association of REALTORS® (CAR) and analysis from the Association’s spokespersons across the state. The near immediate reaction from both sides of the transaction leaves REALTORS® feeling optimistic about the spring housing season as a spark for the year ahead. January’s 3,028 new single-family listings represented a nearly 80% jump from December in the seven-county Denver metro area, while the 1,128 new townhome/ condo listings represented a more than 88% increase in the same time period. Statewide, the 5,355 new singlefamily listings represent a more than 75% increase from January with the 1,703 new townhome/condo listings are up 73.2% in the past month. The pent-up demand and lower interest rates once again combined to push inventory of active listings down both month-over-month (-16.6% for single family and -9.5% for townhome/condos) and year-over-year (-18.5% for single family and -10.4% for townhome/condos) in the Denvermetro area. Statewide, active listings of single family homes fell 12.3% from December to January and are off 10% from a year prior while townhome/condo actives fell 7% from December to January but remain flat compared to a year prior. Inventory continues to impact pricing movement as well with the single-family median creeping back up to just shy of $600,000, up 1.7% in the past month and up 5.3% over a year prior. For townhome/condos, median pricing

fell nearly 5% from December to January at $400,000, basically flat (+0.3%) over January 2023. Statewide, the $548,950 median pricie for single-family homes was flat from December to January but reflects a 5.6% increase from January 2023. In the townhome/condo market, the statewide median price fell 4.3% in the past month however, at $405,000, it is still up 1.3% from a year prior. Overall, higher median prices continue to be a defining challenge to homebuyers as the Housing Affordability Index (HAI), a measure of how affordable a region’s housing is for consumers based on interest rates, median sales price, and median income by county, continues to hover at or near its lows since CAR began tracking the data in 2010.

STATEWIDE SUMMARY Taking a more in-depth look at some of the state’s local market data and conditions, the Colorado Association of REALTORS® Market Trends spokespersons provided the following assessments:

AURORA “January is always an interesting month. With the snow and cold weather we endured, one would think a slower market. Not so much in Aurora where the cold and snow did not stop buyers looking for a good deal before the spring market heats up. Across all zip codes, the theme was the same. Inventory was lower than January 2023 and pricing was higher, in most cases by 10% or more. Average days on market was about the same as a year prior. “Taking a more in-depth look at specific zip codes, the median price in 80011 rose to $450,000 as the neighborhood experiences rapid change due to the easy

access to the CU Health Sciences Center and Children's Hospital. Average days on market was actually down in that zip code as demand is high and inventory low. Looking to 80013, inventory was down 33% compared to last January as prices moved up 10.5% to a median of $525,000. This area is the central Aurora location with easy access to Buckley Space Force, and the feeder highways to Denver International Airport and DTC. In southeast Aurora, the median price in zip code 80015 rose to $605,000, a 10.4% increase compared to January 2023. Also in the southeast area, 80016 boasts a median price of $769,000, up 5% over Jan. 2023. Take a look at 80019 and you will see significant growth in new builders and perhaps even some new builder inventory. This is a great area to secure a new home under $650,000 in many cases. In the 80111 Greenwood Village area, we see a median price of $945,000 and a 50% inventory reduction over Jan. 2023. Homes in this zip code are flying off the market despite the high median price.

From a boots-on-the-ground perspective, we are seeing houses sell much quicker than that but if they started in November or December, they aren’t seeing real activity until just now. February numbers should give a more accurate feel as to how long it is taking house to sell in this new, 2024 market.

“If the spring buying season is anything like past spring markets, we will most likely see multiple offers and shrinking average days on market as our housing shortage continues,” said Aurora-area REALTOR® Sunny Banka.

“We began the year with a marginal increase in values across all properties. Active listings dipped 2.2% and we were down 8.8% year over year in sold units. This inventory strangulation continues to keep prices elevated. Mortgage rates softened a bit in January, but then started to work themselves back up as we hit the end of the month and began February. You can feel the shift when rates begin up. It has an almost immediate effect on showings.

BOULDER/BROOMFIELD “In Boulder and Broomfield counties, the real estate market woke up on January 2. The combination of lower interest rates and general optimism of a new year brought buyers out to look and sellers ready to list. In Boulder, we saw 41% more new listings in January than we had the year before. It is worth noting however, that there was pent up inventory from sellers who wanted to move but waited through 2023 to see if the rates would change or if the market would improve. Those sellers, who either just needed to move or saw a glimmer of light at the end of the tunnel, decided to pull the trigger. Many of those listings were gobbled up quickly with 32% more sales than the prior January. The prices even went up a bit (1.4%) but the days on market remain the same at about 76 days.

“Broomfield also saw a boost in inventory with 25% more listings and the median price jumped a surprising 13% since last January. Sellers are getting close to their list price and, as we head into February, we are starting to see bidding wars start up again. The quiet end of 2023 seems to be in the rearview mirror as we navigate a market with pent-up demand as buyers as sellers finally decide to move regardless of the interest rates,” said Boulder/ Broomfield-area REALTOR® Kelly Moye.

COLORADO SPRINGS

“I often wonder if we have mis-defined a housing recession to only be about pricing, not units sold. We continually talk about how prices are staying up across the region, but we typically don’t talk about how much business has been removed from the region. With real estate being 20% of GDP, when does that number start to reflect in the national numbers? And at some point, when/if rates fall will we see sellers come back to the market? What seems like a strong economy can be overshadowed quickly when we begin to see owners underwater, short selling or selling to investors leaving tens of thousands of dollars on the table. Is a good economy one in which a middle class American must work three jobs to get by? Or one where

credit card debt is at all-time highs? People just scraping by to make it each month?

homes active listings in the Pikes Peak MLS having price reductions.

“One area of relief is the rental market. We are seeing more rentals staying on the market for longer amounts of time and tenants having a chance at softening rents. Locally, property managers are all talking about the softening of the rental market. Can home prices stay elevated in a market where rents are dropping, and more inventory is coming online each day? I personally don’t believe so, and I think we will see home prices start to follow rents. I’m one of few that believe that.

“Last month, the average sales price was $522,379 compared to $519,961 in December 2023 and $525,254 in January last year, representing an increase of 0.5% month-over-month and a drop of 0.5% year-over-year. The median sales price was $450,000 compared to $455,000 in December 2023 and 445,000 last year in January, representing a drop of 1.1% month-over-month and an increase of 1.1% year-over-year.

“From a 30,000-foot view, it looks as if everything is fine. At this time, you are able to sell a home in the Pikes Peak region if it is priced right, and well kept. But, when you dig in to some of the numbers and you see builders offering 8% concessions, and you chat with appraisers who admit they are having issues hitting values in some areas, it raises questions. We’re also seeing home prices stay elevated and, in some price points and with some homes, a buyer may even find themselves competing. For now, we will sit back and wait for the spring rush and see how we do moving forward,” said Colorado Springs-area REALTOR® Patrick Muldoon.

COLORADO SPRINGS “Analyzing the single-family/patio homes market for January 2024 in the Colorado Springs area, there were 1,749 active listings, representing the highest level in January since January 2017 and a 6.7% increase year-overyear. The months’ supply of active listings was 2.0 months for homes priced under $400,000, 2.2 months for homes priced between $400,000 and $600,000, 3.7 months for homes priced between $600,000 and $1 million, and 6.9 months for homes priced over $1 million. “There were 668 sales in January 2024, representing the lowest level in January since January 2016, compared to 777 in December 2023 and 739 in January last year, representing a decrease of 14% month-over-month and 9.6% year-over-year. The monthly and the year-to-date sales volumes were down 13.6% month-over-month and 10.1% year-over-year, respectively. The 54 average days on market compared to 46 days in December 2023 and 50 days a year prior. Unsurprisingly, the sluggish sales led to 26.1% of the El Paso County single-family/patio

“From the analysis of the single-family/patio homes sold by price range, last month, 30.8% of the homes sold were priced under $400,000, 46.6% between $400,000 and $600,000, 18.0% between $600,000 and $1 million, and 4.6% over $1 million. Year-over-year in January 2023, there was an 18.3% drop in the sale of single-family homes priced under $400,000, a 2.0% drop in homes priced between $400,000 and $600,000, a 14.9% drop in homes priced between $600,000 and $1 million, and a 22.5% drop in homes priced over $1 million. “Devastatingly, inconceivable affordability challenges due to a staggering combination of high-interest rates, record-high home prices, and inflated cost of living remain the most daunting barriers for the Colorado Springs-area homebuyers,” said Colorado Springs-area REALTOR® Jay Gupta.

CRESTED BUTTE/GUNNISON “If you just look at the basic number, the Gunnison Crested Butte market area looks busier than it was in 2023. However, the main areas near Crested Butte and the City of Gunnison are actually statistically flat from 2023 to 2024. January sales were up from 26 last year, to 34 this year but, all eight of those sales were in areas outside of the main Crested Butte and Gunnison areas. The dollar volume was more than double. However, this is mostly attributable to two ranch sales on the outskirts of our area – one for $11.98 million and one for more than $5.4 million. If you remove these two sales, the dollar volume is only up $5.5 million which isn’t a lot considering that our average prices continue to increase. “On a positive note, we continue to see more properties come on the market and currently have 20% more

properties for sale than we did at this time last year. The number of existing contracts is down slightly from last year at this time, but we are entering the busy part of the ski season so it will be good to see how the rest of the first quarter stacks up. The first quarter of 2023 was pretty dismal, so it shouldn’t take much to come out ahead in 2024, but with January statistically even for the main sale areas, February and March will need to pick up the pace,” said Crested Butte -area REALTOR® Molly Eldridge.

DENVER COUNTY “The turn of the new year marked a quick change of pace for the real estate market. After a quiet Q4 2023, Denver saw 838 new listings come to market this January, indicating a newfound confidence in sellers. The singlefamily segment experienced a 22.8% increase in new listings compared to January last year. The combination of more new listings and, on average, homes taking a bit longer to sell, has resulted in an increased inventory of 1.7 months (+7.7% YOY), providing buyers with more options and less pressure to move fast. “The median single-family home in Denver closed for just under $640,000 last month, an 8.4% increase over January 2023. However, the townhouse/condo market has proved to be slightly more challenging entering the new year. Increasing carrying costs such as insurance, maintenance, and property taxes have continued to uphold barriers to entry-level housing. Affordability remains at the forefront of buyer concerns, especially as average 30-year mortgage rates sustained levels in the high-6% range. “Despite affordability obstacles, the negotiation dynamic has begun to change as buyers have more inventory to choose from, driving sellers towards moderate pricing. Homes don’t quite sell themselves anymore, and employing a competent marketing strategy is the key to a successful transaction this year. Looking forward, I anticipate inventory to begin to decrease and stabilize in the coming months. The spike in activity last month is evidence of a large backlog of buyer and seller demand, and we can expect to see a strong, competitive market as we move into the spring season,” said Denver Countyarea REALTOR® Cooper Thayer.

DOUGLAS COUNTY “While patience was essential for buyers in the Douglas County market last year, we’re starting to see the return of quick transactions and massive activity in the top tier of desirable listings. Nearly 500 new listings went active in January, similar to the levels experienced just before the hyperactive 2021 and 2022 spring markets. Just 282 single-family homes sold in January, leaving about 587 homes of inventory, or about 1.4 months, entering February. Last year, inventory did not dip below 1.5 months at any point in the year. “The townhouse/condo segment continues to tell a different story in the suburban market. Median sales prices fell to $399,000, approximately a 7.9% decline from December and a 7.2% decline from January 2023. The historically thin multifamily inventory has climbed to higher levels over the past year, and as of January, there were 54 more townhouse/condo homes for sale in Douglas County than single-family homes. “Year to date, closed transactions are tracking last year within a 5% margin. However, with the spike in activity we’ve seen since the new year, I’m anticipating we will see an increase in sales volume this spring. Buyers are becoming acclimatized to the new interest rate baseline in the 6% range, and sellers are shifting their mindset away from trying to time the market and back towards acting based on wants and desires rather than needs,” said Douglas County-area REALTOR® Cooper Thayer.

DURANGO/LA PLATA COUNTY “The Durango/La Plata County housing market didn’t see significant changes in several metrics compared to January 2023. The median home price remained exactly as it was a year prior at $750,000. Days on market increased just two days to 116. The current inventory of homes decreased just two units to 122 active listings, and months supply of inventory increased slightly from 2.2 months to 2.5 months. The number of new listings fell to 24 compared to 29 in January of 2023, while the number of sold units increased from 17 to 25 due to a brief surge in activity in the fourth quarter of 2023. “The big story for January was in the condo/townhome

segment, where we saw a whopping increase in the number of new listings, from 10 units in January 2023 to 26 in January 2024, a 160% increase. The demand did not follow suit, with sold units staying virtually unchanged at 14. The glut of new inventory has pushed prices downward from a median price of $565,000 to $486,000. The inventory in this segment has increased by 50%, and the number of months of inventory has also doubled to just over three months compared to 1.7 last January. The change in inventory is partially due to newly constructed units coming to market. In addition, owners engaging in short-term rentals are witnessing decreased occupancy rates, making their units less attractive as investments, and prompting more units to be listed for sale. The prices are being affected by unprecedented increases in HOA dues at some of the larger condominium communities due to skyrocketing insurance premiums. One community in particular saw their rates increase tenfold, tripling monthly HOA dues. “Affordability continues to be a pressing concern for homebuyers in La Plata County, exacerbated by higher taxes, escalating insurance premiums, and rising HOA fees. The current landscape indicates no immediate relief for these affordability challenges,” said Durango-area REALTOR® Jarrod Nixon.

amount. The average seller concession for those 117 sales was nearly $11,000 or 1.65% of the purchase price. Looking at the published ‘percent of list price received’, you’ll see that it is 98.6% of the last published list price. If you pull out the 1.65% in concessions (which isn’t reported as a reduction in purchase price but has the same net effect on seller proceeds) that list-price-to-seller net price ratio is more like 96.95%. In several of the transactions reviewed for this report, buyers received in excess of 3% of the purchase price in interest rate reduction assistance from the seller. “Interest rates have stabilized over the last several weeks in the mid to high 6 percent range. This is bringing more buyers out of hibernation and creating pressure within an already inventory-challenged environment. That being said, more sellers are seeing advantages of putting their homes on the market with prices inching upward and using the seller concession strategy for their own replacement property that eases the pain of giving up an existing mortgage with a sub-three percent interest rate. Should interest rates slide even slightly lower as we get closer to spring, activity in the real estate market will heat up quickly,” said Fort Collins-area REALTOR® Chris Hardy.

FREMONT COUNTY FORT COLLINS “The San Francisco 49ers did not easily concede their loss to the Kansas City Chiefs however, the same cannot be said for today’s home sellers in this interest-rate constrained market. Seller concessions, in the form of cash given by the seller to help a buyer reduce their mortgage interest rate, has been an increasingly popular strategy ever since interest rates nearly tripled between January 2021 and November 2023. Yes, median prices have continued to creep up, topping out at $605,000 for the month of January in the Fort Collins market which is 10% higher than January 2023 and 3.4% higher than last month. That doesn’t necessarily mean that sellers are walking away with more cash in their pockets. “For the month of January in the greater Fort Collins area (northern Larimer County) there were a total of 196 single family detached home sales (excluding new construction). Of those sales, 60% involved a seller concession of some

“Fremont County’s January start is slightly lower than in 2023 with 2.7% fewer new listings and 9.3% less sales. The median price residential property remained stable at $310,000. We are showing days on the market prior to sale lower by approximately 17%. Total inventory of available residential properties is down 13.2% with a total inventory of 217 units. Months supply of inventory is up 0.1% showing a total supply of 3.4 months. The average days on the market is down 16.9% which indicates that properties are selling a bit quicker. A typical listing took 74 days to market and close this past month as compared to 89 days in January 2023. New listings and sales in Fremont County see an increase in units available for sale beginning in March and lasting through September of each year,” said Fremont County-area REALTOR® David Madone.

GLENWOOD SPRINGS

PAGOSA SPRINGS

“The housing market in the Roaring Fork and Colorado River valleys remained stable this January compared to the same month last year. The single-family market had a 13% decrease in new listings for a difference of 6 homes (40). Pending sales were down 10.9% or 5 homes (41) and sold listings showed a decrease of 20.6% (27). Singlefamily homes were on the market an average of 55 days which is a decrease of 6.8% or 4 less days on market (55). January ended with a total of 143 homes listed, a decline of 14.9% over last January’s 168 homes. The one statistic that continues to increase is the median sale price. The median sales price increased 12.2% rising from $557,225 in January 2023 to $625,000 at the end of this month.

“As of January 2, locals and out of town buyers were not as distracted as they were in 2023 from home buying and fun such as skiing and other snow sports. Their 2023 hesitation to wait-see- sell-buy ambitions are moving forward to buy and sell. No surprise January new listings were up 60% at 24 new listings. Listings sold in January 2024 were up 9.5% and pending sales were also up 52.9% in January, compared to last year. Pricing indications show prices are softening and stabilizing:

“The townhome-condo sector also experienced similar statistics this January compared to last year. New listings were up 2 or 12.5% for a total of 18, pending sales had the same numbers, up 2 over last year at 18 units. The sold category lost 1 home for a reduction of 7.7% equaling 12 sales. Days on market increased 20% to 42 up from 35. January ended with a total of 31 active multi-family units, a decline of 38% or 31 listings vs. 50 last January leaving buyers to choose from a 1.9-month supply. This sector did experience a 16.6% reduction in the median sale price coming in at $415,000. Overall, sales activity in the MLS was low, with only 39 sales out of more than 1200 participants,” said Glenwood Springs-area REALTOR® Erin Bassett.

GRAND JUNCTION/MESA COUNTY “Grand Junction has a little glimmer of positive news with an increase in new listings over the same time last year of 11.3%. We are still behind in active listings, with only 595, so we are hopeful the trend may continue. Sold listings this January were only 121, which is down 20% from January 2023. However, it is not dampening the prices, as median is up to $370,000 and average is up to $422,369. The spring market usually is the busiest listing time here in Mesa County so it will be interesting to see if we get a good bump in inventory February through April,” said Grand Junction-Area REALTOR® Ann Hayes

Median Sales Price $505,000, down 2.9% from January 2023 at $520,000 Average Sales Price $635,239, down 10% from January 2023 at $705,773 “Buyers may be settling with the new norm of somewhat stabilizing interest rates. Unfortunately, their buying decisions still struggle against higher home prices and when financing coupled with higher mortgage payments. Cash buyers have no issues with purchases and driving the 2024 Pagosa Springs market. Sellers are realizing their real estate wealth window may be now narrowing and the time to place properties on the market. “Homes priced under $425,000 (condos and manufactured homes) show the least inventory. Condo price appreciation is also strong and less days on market due to shortages of inventory. The reality shows about 70% of current homes for sale are priced higher than $500,000. Most inventory is $700,000 and higher. Land sales were also lower in January due to an abundance of snow. Land inventory is climbing better than last year, but at higher prices presenting the same challenges to land buyers as home buyers. New construction still has the same challenges as last year with work force, materials pricing, and shorter building months (due to snow). Additionally, those homes built requiring septic and water systems are experiencing higher prices. “Overall, if you can find an existing home or condo close to your needs- buy it now and make some updates. Sellers should consider the right updates before selling or aggressively pricing the home to sell and expect longer days on the market as indicated by January 2024 days on market increased to 4.3 months. If you are considering

selling, review what updates will give you the most bang for your buck. Historically, April and May bring more land and housing inventory with the melting snow. With current pricing, buyers and sellers are evaluating their pricing expectations. It will be fascinating to see the real estate market as it evolves from winter hibernation to the vibrance of Spring and meeting those expectations,” said Pagosa Springs-area REALTOR® Wen Saunders.

PUEBLO “Although a new year for the Pueblo real estate market, the conditions and activity are similar to the end of 2023. New listings in January were down 5.4% 2023, pending sales fell 16.8% and sold listings were down 19.4%, as the slowdown from November and December continues. In January 2024, only 129 homes sold with the median price still strong at $322,500, up 10.4%. Although we have three-plus months of inventory in our market, the overall lack of inventory is keeping home prices up. New home building permits doubled from January 2023 numbers, which is a good sign. Looking back, permits in 2023 were down 200 from 2022. “On the buyer side, we see a group waiting for rates to drop. The Pueblo Association of REALTORS® is holding a county wide open house weekend February 17 and 18 to encourage buyers to get out and see homes and learn about the interest rates. At least 185 homes will be open for buyers to explore,” said Pueblo-area REALTOR® David Anderson.

SAN LUIS VALLEY In Alamosa County, new listings increased from 0 in January 2023 to 6 in January 2024. Closed sales surged 300%. The median sales price rose 2%, moving from $255,000 to $260,000, while the average price showed a slight decrease from $255,000 to $254,750.

from the previous year, but closed sales decreased by 60% from January 2023 to January 2024. The median sales price increased by 25%, from $160,000 to $200,000, while the average fell from $256,580 to $200,000. In Rio Grande County, new listings increased by 50% in January 2024 compared to January 2023, while closed sales decreased 50%. Both the median and sales price declined, with the previous price in January 2023 at $211,250 and the new price in January 2024 at $105,000.00. Saguache County saw a 100% increase in new listings from January 2023 to January 2024. Closed listings remained unchanged. The median sales price increased 18.6%, from $360,975 to $405,000, and the average rose 49.6%, moving from $360,000 to $540,000. • Buena Vista experienced an 8.3% decrease in new listings from January 2023 to January 2024, with stable sales. The median sales price grew 16.3%, from $490,000 to $570,000. However, the average sales price fell 8.4%, from $603,314 to $552,714. • Fremont/Custer County witnessed a 19% increase in new listings and a 14% rise in closed sales from January 2023 to January 2024. The median sales price fell 35%, from $517,500 to $332,750, and the average sales price dropped even further 44.7%, from $637,714 to $352,641. • Lake County had a 33.3% increase in new listings and no change in closed sales from January 2023 to January 2024. The median sales price fell 6.1%, from $505,750 to $475,000. The average sales price grew 13.9%, from $464,417 to $529,000. • Mineral County experienced 100% growth in new listings from January 2023 to January 2024, accompanied by a 66.7% drop in closed sales. The median sales price fell 49.9%, from $799,000 to $400,000, and the average sales price dropped from $672,667 to $400,000.

Conejos County experienced a 66.7% rise in new listings from January 2023 to January 2024. The area maintained a steady median/average sales price of $211,500.

• Nathrop had no change in new listings or closed sales from January 2023 to January 2024. The median sales price and average sales price both increased 14.1%, from $700,000 to $799,000.

Costilla County witnessed a 33.3% increase in listings

• Park County saw a 6.3% increase in new listings and a

slight 4.2% decline in closed sales from January 2023 to January 2024. The median sales price increased 2.2%, from $460,000 to $470,000. The average sales price fell 7.5%, from $557,819 to $515,722. • Salida experienced a 26.7% decrease in new listings from January 2023 to January 2024, along with a 58.8% decrease in closed sales. The median sales price increased 42.9%, from $525,000 to $750,000, and the average sales price grew 18.6%, from $651,013 to $772,254,” said San Luis Valley-area REALTOR® Megan Fuller.

STEAMBOAT SPRINGS AND ROUTT COUNTY “January may bring a lot of snow in Routt County, but it does not bring a lot of new listings; single-family homes saw one new listing over January 2023 while multi-family homes saw a decrease from 21 to 12. Even with the number of active listings down 15.2%, pending sales for homes were slightly more than the same period last year and sold listings doubled; condos/townhomes realized a 35% decrease both for pending sales and sold listings with almost 47% less active listings. Median and average home prices rang in the New Year at $2.6 million and $3.14 million, respectively, and $900,000 and $1.1 million for multi-family. Seventy percent of the sales for houses and 100% of the condo/townhome sales occurred in Steamboat vs. the towns of Hayden, Oak Creek (Stagecoach) and Clark. Sellers received 96.3% of their list price for homes and 97.7% for condos and townhomes, which was slightly less than a year ago. Properties remained on the market for about 60 days with singlefamily having a less than three-month supply (same as last January), and multi-family slightly less than last year at about five weeks. “May-August typically brings the most new listings to the Routt County market however, buyers seeking luxury condominiums will see a new development of 42 luxury condominiums come to market around mid-March which will more than double the current active listings for multifamily,” said Steamboat Springs-area REALTOR® Marci Valicenti.

SUMMIT, PARK, AND LAKE COUNTIES “While the economic principle of supply and demand maintained its stronghold in preventing a price downturn throughout 2023, the lingering question looms over whether the same scarcity of inventory will exert a similar influence in 2024. Despite a slight uptick in listings, it remains a drop in the bucket, with inventory levels still historically low. “In comparison to January of the previous year, new listings saw a notable 28% increase for multi-family homes and 20% for single-family homes. Additionally, the number of sales surged nearly 40%, indicating heightened activity in the market. Single-family homes and townhouse-condo prices experienced an uptick. Properties sold faster than a year ago as well. “Data from Summit in January 2024 compared to the same period in 2023 reveals the average sale price for single-family homes is up to $2,354,823, an increase of 27%. Townhouse-condo properties also experienced a price hike of 6%, with an average of $861,171. Sellers, on average, received about 98% of their list price. Park County’s 2024 average single-family home price fell to $568,850, while Lake County’s increased to $633,000. “Out of the 432 active listings, the least expensive property is a mobile home in Grand County for $64,500 and the most expensive is a single-family home in Breckenridge for $19.4 million (on the market for 1,255 days). Out of the 90 January sales, the lowest was a singlefamily home in Park County for $280,000 and the highest was a single-family home in Breckenridge for $5.25 million. Thirty-seven percent of the sales were cash. These numbers exclude deed restricted, affordable housing,” said Summit-area REALTOR® Dana Cottrell.

TELLURIDE “The dollar amount of sales for the Telluride regional market was $83 million in January 2024, an 85% increase over the dollar amount of sales compared to January 2023. The 29 sales were the lowest number of sales in our market area since January 2014. This anomaly is driven by high-priced homes selling in three areas: the Mountain Village, the town of Telluride and on our surrounding

mesas 15 minutes from downtown Telluride. “The number of homes sales over $5 million doubled to six as compared to only three in January 2023. We toured three Mountain Village homes during the first week of February, two listed at $21.5 million, and a third asking $19 million. The wealthy are able to buy whatever they want and yet there are fewer and fewer homes to pick from in our entire region above $5 million,” said Telluride-area REALTOR® George Harvey.

VAIL “January 2024 was an interesting month to kick off the new year with interesting happenings on many different fronts. We experienced the gamut of weather conditions from snow and bitter cold to unseasonably mild temperatures. A couple of weekends when the snow was epic followed by mild sunny days. “The real estate market in the valley was one area that maintained a positive trend which bodes well as we are positive despite some macro-economic factors. Buyers are optimistic and looking for their opportunity to enjoy the lifestyle,” said Vail-area REALTOR® Mike Budd. The following are points of data that bode well for 2024: • New listings are +27% versus January 2023. Albeit inventory is still low by historic numbers it appears to be finding a new normal. • Pending sales are plus 44.4% which reflects the positive response and increase inventory options. • Months supply is up to 3.9 months which is still below the 6 months considered stable. However, the improvement has been dramatic. • Days on market increased to 62 days which is getting closer to a more stable trend and reflects the mix in price niches. • Closed unit sales were positive 32.7% and dollar sales increased 41.7%. “The trend in price niches obviously is aligned with

the available inventory by the same price niches. The pending sales are higher than the closed sales for January and align with the price niches which looks positive again for February. A positive real estate market and good snow conditions bode well for 2024,” added Budd.

The Colorado Association of REALTORS® Monthly Market Statistical Reports are prepared by Showing Time, a leading showing software and market stats service provider to the residential real estate industry and are based upon data provided by Multiple Listing Services (MLS) in Colorado. The January 2024 reports represent all MLS-listed residential real estate transactions in the state. The metrics do not include “For Sale by Owner” transactions or all new construction. CAR’s Housing Affordability Index, a measure of how affordable a region’s housing is to its consumers, is based on interest rates, median sales prices and median income by county. The complete reports cited in this press release, as well as county reports are available online at: http://www. coloradorealtors.com/market-trends/

APRIL 2024

Fair Housing MONTH Join us Online!

Virtual Courses 01

HISTORY AND RISK MANAGEMENT April 2, 2024, 9:00am – 11:00am, 2 CE

Join us as we journey through the history of Fair Housing in Colorado and refresh your knowledge of the Fair Housing laws.

NAR FAIRHAVEN CHALLENGE Online - All Month This innovative training platform is available to all 1.4 million NAR members at no additional cost. Be an advocate for fair housing and the future of our industry.

THE PEOPLE BEHIND DIVERSITY April 16, 2024, 1:00pm – 2:30pm CAR will be hosting a panel of individuals who represent a community that is often thought of when discussing diversity.

PRIVILEGE WALK EXERCISE April 23, 2024, 11:00am-12:00pm Participants will explore the complex concept of privilege with a virtual privilege walk. The privilege walk exercise examines the intricacies of privilege in our society.

fairhaven.realtor

April 2024 Come celebrate Fair Housing Month with us! The Colorado Association of REALTORS’® Diversity & Inclusion Committee is hosting four great activities in the month of April to educate and celebrate Fair Housing Month.

Be a Fair Housing champion and participate in all four activities to receive a free NAR Fair Housing merch item!

Learn more: ColoradoRealtors.com/fairhousing/

LEADERSHIP SPOTLIGHT Connie Tremblay Broker & Instructor, The Van Gundy Group, Legal and Risk Division Vice President, Colorado Association of REALTORS® What was your first job? At 6 years old, I was selling greeting cards door-to-door. At 12, I spent the summer hoeing a bean field for a local farmer with my brother. How long have you been a REALTOR® and how did you get your start? I started in 1995, in Fort Morgan, Colorado, where I was 4th generation born & raised. I was 23 and a single mom, attending college with the goal of becoming a math teacher. A local broker was married to the advisor of the honor society, and he approached me about getting my real estate license. Back in the day when I would try anything, at least once. What do you love most about being a REALTOR®? The advocacy we bring to private property rights and our adherence to a higher commitment in the Code of Ethics.

Connie with her Dog Mr Grüber.

Tell us briefly about one of your most memorable listings? There are so many memorable stories. The first installation banquet that I attended, I was jealous of all the cool stories I overheard the other brokers sharing. Little did I know how many stories I would gather as the years passed. Probably the most memorable was a listing appointment I went on and while talking to the parents at the kitchen table, the four little girls snagged my purse from under my chair without any of us noticing. They took it to the basement where they sprayed my pepper spray. What is one thing you recently learned or are learning? I am currently learning that moving is unpleasant! In all seriousness though, learning and growing is ever present, when I am willing to see an area needing improvement. What’s your favorite comfort media (book, show, movie, music)? Although it is not “media”, my favorite comfort is a beautiful vista when camping. My favorite media pastime would be playing video games: currently enjoying Civ VI and Divinity 2. I love taking my metal Fall Out lunch box wherever I teach! What three words would your friends use to describe you? Bold, transparent, and nerdy.

Connie with son Bailey

2024 RPAC Major Investor WAYS TO FULFILL YOUR $1,000 INVESTMENT

RPAC’s Major Investors are an elite and passionate group of REALTORS® whose investments shape the political future of the real estate industry. Major Investors are eligible to participate in the RPAC Recognition Program, with specific benefits and accolades that acknowledge their support.

Early Bird RAFFLE INVEST $1,000 THROUGHOUT THE YEAR

JAN-FEB $100 = 1 Ticket $300 + Major Investor Pledge = 5 Tickets

3 RPAC PHONE BANK

SPRING SUMMIT RECEPTION & LIVE AUCTION

MAY Dial for RPAC Dollars

RPAC ROAD TOUR PART I DENVER AREA 4

APRIL $50/Ticket to Attend

5 SILENT VIRTUAL AUCTION

RPAC PHONE BANK 8 & RAFFLE

Questions? Contact kBRENZEL@colorado realtors.com

JULY

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6 RPAC ROAD TOUR PART II MOUNTAIN WEST

INVEST BY

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FALL FORUM RPAC RECEPTION OCTOBER $25/TICKET

FINISH LINE

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Contributions to RPAC are not deductible for federal income tax purposes. Contributions are voluntary and are used for political purposes. The amounts indicated are merely guidelines and you may contribute more or less than the suggested amounts. The National Association of REALTORS® and its state and local associations will not favor or disadvantage any member because of the amount contributed or a decision not to contribute. You may refuse to contribute without reprisal. Your contribution is split between National RPAC and the State PAC in your state. Contact your State Association or PAC for information about the percentages of your contribution provided to National RPAC and to the State PAC. The National RPAC portion is used to support federal candidates and is charged against your limits under 52 U.S.C. 30116. Federal election law prohibits RPAC from soliciting contributions from persons outside the restricted class. Any contributions received from outside the restricted class will be returned.

Top Smartphone Tips for REALTORS® TECH CORNER

D. Jonathan Griggs VP of Internal Operations, Colorado Association of REALTORS®

In today's fast-paced real estate market, REALTORS® needs to leverage every tool at their disposal to stay ahead of the game. Smartphones, being at the forefront of technology, offer a myriad of features and apps that can significantly enhance REALTORS® productivity and client interaction. Here are the top five smartphone tips that every REALTORS® should utilize:

1. OPTIMIZE YOUR SOCIAL MEDIA PRESENCE

2. UTILIZE CRM APPS

Smartphones make it incredibly easy to manage social media profiles. As a REALTOR®, harnessing platforms like Instagram, Facebook, and LinkedIn can help you showcase properties, share market insights, and connect with potential clients. Use your smartphone to:

• Access client information on the go.

• Post high-quality images and virtual tours of your listings.

• Set reminders for meetings and follow-ups.

• Engage with your followers through comments and direct messages.

• Organize leads and track communication history.

• Stay updated with real estate trends and network with other professionals.

Customer Relationship Management (CRM) apps are crucial for managing client information and interactions. These apps can help you keep track of client details, appointments, and follow-ups. On your smartphone, you can:

3. LEVERAGE MOBILE DOCUMENT MANAGEMENT The ability to view, edit, and share documents from a smartphone is a game-changer for REALTORS®. Use document management apps to: • Instantly access contracts, forms, and reports. • Use e-signature features for quick and secure document signing. • Share documents with clients and colleagues seamlessly.

4. VIRTUAL TOURS AND VIDEO CONFERENCING

5. STAY INFORMED AND ORGANIZED

With high-quality cameras on smartphones, REALTORS® can easily create virtual tours of properties. Additionally, video conferencing apps allow for virtual meetings with clients who can’t be physically present. You can:

Lastly, smartphones are a great tool for staying informed and organized. Use your smartphone to:

• Conduct live virtual showings. • Use video conferencing for consultations and negotiations.

• Set up news alerts for real estate market updates. • Use calendar apps to manage your schedule. • Employ task management apps to prioritize daily activities.

• Create and upload video content for marketing purposes.

CONCLUSION Incorporating these smartphone tips into your real estate practice can significantly boost efficiency, enhance client interaction, and keep you ahead in the competitive market. Embrace the power of technology and see how it transforms your real estate business.