“New California Laws Will Make It Easier To Build Granny Flats”

Here’s What You Need to Know:

It’s back. This expression was big in Denver during the ’70s. “Don’t Californicate Colorado.”

You may see nothing wrong with these three new bills as good, bad, or indifferent. Guaranteed there will be unintended consequences. Do you want your neighbor to put a “Nanny Flat” in their backyard? How cute, Granny is coming to live with them; Oops, Granny never shows, and now it’s an ABnB unit with a revolving door. That intersection you pass every day on the way to work is now covered with very high-density residential units with easy access to the train. That intersection is now gridlock. Finally, where are those cars going to park. This is the West, just because you live in a multistory building, does this mean you will give up your car? Maybe we will be riding in autonomous self driving shuttle to Vail on the weekends, who knows? These are the new pieces of COLORADO Legislation ready for signature right now.

HB24-1313 (Transit Density Goals): This bill requires Front Range local governments to establish density goals near transit-rich areas. It has passed the Senate and House with amendments, including removal of certain provisions. The bill is awaiting Governor Polis’s approval. Learn more about HB24-1313.

HB24-1152 (Accessory Dwelling Units): This bill allows accessory-dwelling units on single-family properties in Front Range cities. It has passed the Senate and House with amendments. This bill is awaiting Governor Polis’s approval. Learn more about HB24-1152.

HB24-1304 (Parking Requirements): This bill limits parking requirements for multi-family developments near certain public transit corridors. It has passed the Senate and House with amendments. This bill is awaiting Governor Polis’s approval. Learn more about HB24-1304.

The incremental changes hidden in the dark rooms of representation seldom return virtuous legislation without Unintended Consequences now does it? All sarcasm aside, here’s this week’s Denver MLS numbers.

This week’s Denver Market Watch below gives us some new parameters with which to appraise this market.

Denver Market Watch

New Listing – A significant decline in New Listings compared to last week? Why?
879
Coming Soon
228
Back On Market
174
Price Increase
51
Price Decrease
885
Pending – Once again, a significant reduction from last week’s number. Why?
949
Withdrawn
100
Leased
0
Closed – Now this is way down from last week, what’s happening?
735
Expired
105

So, what’s happening? In just a week, activity is off about 50% from last week. Are we only going to have a Spring Market of one week? I’m putting my thinking cap on here. I am going back and double-checking, seeking anecdotal support from our market participants, and looking deep into our own business, and I am not finding any immediate explanations. By next week, hopefully, I’ll have a Clear, Concise, and Cogent description of what’s happening.

Now, let’s take a look at where the number of total Active Listings has gone.

We have increased from 4,591 in January to 4,960 in February to 5,039 in March to 5,669 im April and now 5,812 in May. Last year at this same time, we had about 4,800 Active Listings.

These numbers show substantial increases, but at the same time, we are nowhere near the numbers of 2008 – 2012. It is my belief, that we will remain in this “balanced market” for the foreseeable future. There is still substantial demand albeit less than what we would have with lower rates, but markets eb and flow. We need to remain nimble, prepared, and work our plan. Successful closings don’t happen on their own, Failure to Plan is a Plan for Failure. We’ve all heard it, but we need to live it when investing in a home. A home sale or purchase is still one of the largest investments any family will ever make. We will be there for you every step of the way.

TheCryerTeam@Kentwood.com