We had an idea about rolloff dumpsters being a leading indicator of home sales. We discuss the early findings of that study in this post: Denver Rolloff Dumpsters: Parking Annoyance or Real Estate Beacon? However, in the collection of that data, even though we were focused on dumpsters, what we couldn’t ignore were all of the different real estate agencies with listings that we had never heard of. And how many there were.
New Extrants to the Market
Driving around Highlands, we expected to see Nostalgic Homes, Bradford, Coldwell, RE/MAX. Instead we saw A Better Way, TKH Realty, Peter Witulski, Envision It Sold, the list goes on. We weren’t really keeping track, but it felt high.
When we got back to the office on June 11, we pulled the listings notes and found there were 91 residential homes for sale in Highlands. And those 91 homes were represented by 66 different real estate agencies. Click here for a breakdown of June 2018 Highlands Listing Data.
Still Really Curious
But we were still curious to find out if this was a trend or just an anomaly. We pulled same month–June–but went back to 2010, and again, just in Highlands above 26th. This was before the market heated up, before pot was legalized. The market was good then, but it was more normal. We found what we had expected to find when driving around in June 2018. A lot of RE/MAX, Nostalgic, Live Urban, Coldwell, etc.
June 2010 – Highlands above 26th
236 homes sold
61 Agencies represented
22% biggest market share (RE/MAX Professionals)
(Full breakdown at the bottom.)
We then pulled June of 2017 to see if anything had changed, and here is where the pattern emerged.
June 2017 – Highlands above 26th
193 homes sold
103 Agencies represented
5.7% biggest market share (Your Castle Real Estate)
(Full June 2017 breakdown below 2010 at the bottom)
What is Happening?
For those keeping score at home, for this data select, the number of agencies selling homes in Highlands has expanded by 69% in seven years. The erstwhile biggest player–RE/MAX Professionals–has experienced a loss of market share by 85%, falling from 22% in 2010 to 3.1% in 2017. (This is just snapshot data of same month different years. Perhaps everything goes back to normal in different years or comparing different months, but we believe that the sheer number of listing agencies shows this is a trend, not an anomaly.)
Certainly some big things have happened in Colorado, in Denver, and in Highlands within that time frame, creating market dynamics that have led to a nearly 100% increase in real estate value. Yet the traditional commission rate has not fallen from ~6% as home prices have skyrocketed and inventory continues to be more constrained.
A Real Trends study of real estate commissions points out that, “when listings are scarce relative to the number of Realtors in almost every year the commission rate declines. When the ratio of listings to Realtors climbs (as in 2008-2010) the average commission rate increases. With few exceptions, these data establish a clear pattern.”
Yet commissions have not fallen even with so few homes in Highlands, and Denver more broadly, for so many buyers. In the case that Real Trends studies, when there are fewer homes, there is traditionally more competition, thus a lowering of agent commission rate as an enticement to earn those buyers. However, the case in Denver, and Highlands specifically it would seem, is that agents and agencies have risen because there is now twice as much money at stake.
When home prices double, real estate commissions also double. How many industries give every employee a 100% raise every seven years regardless of performance? Just real estate it seems. In Highlands, with the median home price over $500,000, that’s $30,000 in commissions for the taking on one sale. That is a number that would catch anyone’s attention. Traditional real estate agencies are being devoured by their own greed. Had traditional agencies reduced commissions or changed the structure of commissions from a rate to a fee or made commissions more transparent and negotiable, they might still be on top. Now they have to look over their shoulders at anyone who is willing to take the real estate licensing exam and has a few friends. And that’s a whole lot of people.
June 2010 Data – Highlands above 26th
| List Office Name | Year | Month | # Sold | Market Share |
| RE/MAX PROFESSIONALS | 2010 | June | 52 | 22.0% |
| NOSTALGIC HOMES | 2010 | June | 18 | 7.6% |
| LIVE URBAN REAL ESTATE | 2010 | June | 15 | 6.4% |
| RE/MAX ALLIANCE | 2010 | June | 14 | 5.9% |
| COLDWELL BANKER DEVONSHIRE | 2010 | June | 9 | 3.8% |
| MB BINGHAM & CO | 2010 | June | 8 | 3.4% |
| COLDWELL BANKER RESIDENTIAL 54 | 2010 | June | 6 | 2.5% |
| KELLER WILLIAMS REALTY DOWNTWN | 2010 | June | 6 | 2.5% |
| KENTWOOD CITY PROPERTIES LLC | 2010 | June | 6 | 2.5% |
| JKM ASSOCIATES | 2010 | June | 5 | 2.1% |
| STERLING REAL ESTATE GROUP INC | 2010 | June | 5 | 2.1% |
| KELLER WILLIAMS DTC | 2010 | June | 4 | 1.7% |
| KELLER WILLIAMS RLTY PROF LLC | 2010 | June | 4 | 1.7% |
| KENTWOOD CO AT CHERRY CREEK | 2010 | June | 4 | 1.7% |
| MB WORKING BY REFERRAL INC | 2010 | June | 4 | 1.7% |
| PREFERRED PROPERTIES INC | 2010 | June | 4 | 1.7% |
| SAM BILLER & ASSOCIATES INC | 2010 | June | 4 | 1.7% |
| AVENUES UNLIMITED | 2010 | June | 3 | 1.3% |
| CREED SMITH & COMPANY | 2010 | June | 3 | 1.3% |
| DENVER HOMES | 2010 | June | 3 | 1.3% |
| MB INTEGRITY REAL ESTATE GROUP | 2010 | June | 3 | 1.3% |
| PAISANO REALTY, INC. | 2010 | June | 3 | 1.3% |
| PORCHLIGHT REAL ESTATE GROUP | 2010 | June | 3 | 1.3% |
| RE/MAX 100, INC. | 2010 | June | 3 | 1.3% |
| YOUR CASTLE REAL ESTATE, LLC | 2010 | June | 3 | 1.3% |
| BROKERS GUILD-CHERRY CREEK LTD | 2010 | June | 2 | 0.8% |
| COLO REAL ESTATE ASSOCIATES | 2010 | June | 2 | 0.8% |
| FULLER SOTHEBY’S INT’L REALTY | 2010 | June | 2 | 0.8% |
| HOME CHOICE REALTY | 2010 | June | 2 | 0.8% |
| JONES HOMES L.L.C. | 2010 | June | 2 | 0.8% |
| ONE REALTY, LLC | 2010 | June | 2 | 0.8% |
| RE/MAX MASTERS INC | 2010 | June | 2 | 0.8% |
| RINGSBY REALTY CORP | 2010 | June | 2 | 0.8% |
| 360 REAL ESTATE INC | 2010 | June | 1 | 0.4% |
| 8Z RYAN CARTER | 2010 | June | 1 | 0.4% |
| ASSIST2SELL RE PROFESSIONALS | 2010 | June | 1 | 0.4% |
| COLDWELL BANKER RESIDENTIAL 18 | 2010 | June | 1 | 0.4% |
| COLDWELL BANKER RESIDENTIAL 24 | 2010 | June | 1 | 0.4% |
| COLORADO FRONTGATE PROPERTIES | 2010 | June | 1 | 0.4% |
| DWELL ELITE HOMES REAL ESTATE | 2010 | June | 1 | 0.4% |
| HOME REAL ESTATE | 2010 | June | 1 | 0.4% |
| HOUSEPAD.COM REALTORS | 2010 | June | 1 | 0.4% |
| KELLER WILLIAMS DENVER CENTRAL | 2010 | June | 1 | 0.4% |
| KELLER WILLIAMS PREFERRED RLTY | 2010 | June | 1 | 0.4% |
| LT REAL ESTATE, LLC | 2010 | June | 1 | 0.4% |
| MB DAYN FOX & ASSOCIATES | 2010 | June | 1 | 0.4% |
| MB HOMESTEAD R E SERVICES, LLC | 2010 | June | 1 | 0.4% |
| MB REAL ESTATE PROFESSIONA1S | 2010 | June | 1 | 0.4% |
| NEW VISIONS REAL ESTATE | 2010 | June | 1 | 0.4% |
| NOUVELLE PROPERTIES, INC | 2010 | June | 1 | 0.4% |
| PRUDENTIAL R.E. OF THE ROCKIES | 2010 | June | 1 | 0.4% |
| RE/MAX LEADERS | 2010 | June | 1 | 0.4% |
| RE/MAX SOUTHEAST INC | 2010 | June | 1 | 0.4% |
| REAL LIVING CO PROPERTIES | 2010 | June | 1 | 0.4% |
| REALTY EXECUTIVES OF AURORA | 2010 | June | 1 | 0.4% |
| REALTY SOLUTIONS NETWORK | 2010 | June | 1 | 0.4% |
| RED CHAIR REALTY ADVISORS LLC | 2010 | June | 1 | 0.4% |
| SAM BARNES | 2010 | June | 1 | 0.4% |
| SELECT REALTY LLC | 2010 | June | 1 | 0.4% |
| THE KENTWOOD COMPANY | 2010 | June | 1 | 0.4% |
| VOLANTE REALTY LLC | 2010 | June | 1 | 0.4% |
June 2017 Data – Highlands above 26th
| List Office Name | Year | Month | # Sold | Market Share |
| Your Castle Real Estate Inc | 2017 | June | 11 | 5.7% |
| NOSTALGIC HOMES | 2017 | June | 7 | 3.6% |
| Keller Williams Realty Downtown LLC | 2017 | June | 6 | 3.1% |
| RE/MAX PROFESSIONALS | 2017 | June | 6 | 3.1% |
| TRELORA | 2017 | June | 6 | 3.1% |
| Kentwood City Properties | 2017 | June | 5 | 2.6% |
| Madison & Company Properties | 2017 | June | 5 | 2.6% |
| MODUS Real Estate | 2017 | June | 5 | 2.6% |
| BRADFORD REAL ESTATE | 2017 | June | 4 | 2.1% |
| Brokers Guild Classic | 2017 | June | 4 | 2.1% |
| LIV Sotheby’s International Realty | 2017 | June | 4 | 2.1% |
| Brixton Real Estate | 2017 | June | 3 | 1.6% |
| COLDWELL BANKER DEVONSHIRE | 2017 | June | 3 | 1.6% |
| PERRY & CO | 2017 | June | 3 | 1.6% |
| Porchlight Real Estate Group | 2017 | June | 3 | 1.6% |
| RE/MAX ALLIANCE | 2017 | June | 3 | 1.6% |
| RE/MAX Masters Millennium | 2017 | June | 3 | 1.6% |
| Redfin Corporation | 2017 | June | 3 | 1.6% |
| REDT LLC | 2017 | June | 3 | 1.6% |
| TRU Real Estate | 2017 | June | 3 | 1.6% |
| Coldwell Banker Residential 14 | 2017 | June | 2 | 1.0% |
| Coldwell Banker Residential 26 | 2017 | June | 2 | 1.0% |
| DISTINCTIVE FLATS LLC | 2017 | June | 2 | 1.0% |
| Feaster Realty | 2017 | June | 2 | 1.0% |
| FLATGRASS REALTY | 2017 | June | 2 | 1.0% |
| GREEN DOOR LIVING REAL ESTATE | 2017 | June | 2 | 1.0% |
| HomeSmart Cherry Creek | 2017 | June | 2 | 1.0% |
| HomeSmart Realty Group | 2017 | June | 2 | 1.0% |
| Keller Williams Advantage Realty LLC | 2017 | June | 2 | 1.0% |
| Kentwood Co at Cherry Creek | 2017 | June | 2 | 1.0% |
| LIVE URBAN REAL ESTATE | 2017 | June | 2 | 1.0% |
| MB MARKET MASTERS REAL ESTATE | 2017 | June | 2 | 1.0% |
| Metro Brokers / 5280 Homebuyers | 2017 | June | 2 | 1.0% |
| ONE REALTY LLC | 2017 | June | 2 | 1.0% |
| RE/MAX Cherry Creek | 2017 | June | 2 | 1.0% |
| RE/MAX Leaders | 2017 | June | 2 | 1.0% |
| RE/MAX of Boulder | 2017 | June | 2 | 1.0% |
| Realty One Group Premier | 2017 | June | 2 | 1.0% |
| RED CHAIR REALTY ADVISORS LLC | 2017 | June | 2 | 1.0% |
| Steps Real Estate 101 LLC | 2017 | June | 2 | 1.0% |
| 4% REALTY | 2017 | June | 1 | 0.5% |
| 8Z Real Estate | 2017 | June | 1 | 0.5% |
| Anthony Rench | 2017 | June | 1 | 0.5% |
| Aspen Grove Real Estate Group | 2017 | June | 1 | 0.5% |
| Atrium Realty LLC | 2017 | June | 1 | 0.5% |
| Avenue Realty & Mortgage | 2017 | June | 1 | 0.5% |
| Berkshire Hathaway Home Services, Rocky Mountain R | 2017 | June | 1 | 0.5% |
| BLUE OLIVE PROPERTIES | 2017 | June | 1 | 0.5% |
| Brokers Guild-Cherry Creek Ltd. | 2017 | June | 1 | 0.5% |
| Buyers’ Slice Realty | 2017 | June | 1 | 0.5% |
| COLDWELL BANKER RESIDENTIAL 24 | 2017 | June | 1 | 0.5% |
| Colorado First Real Estate Ltd | 2017 | June | 1 | 0.5% |
| Colorado Home Realty | 2017 | June | 1 | 0.5% |
| COLORADO LANDMARK REALTORS | 2017 | June | 1 | 0.5% |
| COLORADO PROPERTIES INC | 2017 | June | 1 | 0.5% |
| Colorado Realty Pros | 2017 | June | 1 | 0.5% |
| COMPLETE REAL ESTATE INC | 2017 | June | 1 | 0.5% |
| CS & ASSOCIATES | 2017 | June | 1 | 0.5% |
| Ecospace, Inc | 2017 | June | 1 | 0.5% |
| Exit Realty Cherry Creek | 2017 | June | 1 | 0.5% |
| Focus Real Estate | 2017 | June | 1 | 0.5% |
| FOLLOW REAL ESTATE INC | 2017 | June | 1 | 0.5% |
| Fresco Real Estate | 2017 | June | 1 | 0.5% |
| Generator Real Estate, LLC | 2017 | June | 1 | 0.5% |
| Great Way RE Exclusive Properties | 2017 | June | 1 | 0.5% |
| Home Team Advantage | 2017 | June | 1 | 0.5% |
| HOMES ACROSS COLORADO | 2017 | June | 1 | 0.5% |
| HomeSmart Cherry Creek Properties | 2017 | June | 1 | 0.5% |
| HomeSmart Realty Group of Colorado | 2017 | June | 1 | 0.5% |
| HOMESTAR PROPERTIES | 2017 | June | 1 | 0.5% |
| In Balance Real Estate | 2017 | June | 1 | 0.5% |
| Independent | 2017 | June | 1 | 0.5% |
| Iron Works Realty | 2017 | June | 1 | 0.5% |
| JERICHO PROPERTIES | 2017 | June | 1 | 0.5% |
| Keller Williams DTC | 2017 | June | 1 | 0.5% |
| Keller Williams Executives | 2017 | June | 1 | 0.5% |
| Keller Williams Realty Success | 2017 | June | 1 | 0.5% |
| MANCHEGO PROPERTIES | 2017 | June | 1 | 0.5% |
| MB ANNHOMES & ASSOCIATES | 2017 | June | 1 | 0.5% |
| MB Krier Real Estate | 2017 | June | 1 | 0.5% |
| MB Properties by Catherine, LLC | 2017 | June | 1 | 0.5% |
| MB SUMMERS REALTY | 2017 | June | 1 | 0.5% |
| Metro Denver 1 Realtors | 2017 | June | 1 | 0.5% |
| MyCore Properties | 2017 | June | 1 | 0.5% |
| Peak Denver Properties LLC | 2017 | June | 1 | 0.5% |
| Preferred Properties Inc | 2017 | June | 1 | 0.5% |
| Private Label Realty | 2017 | June | 1 | 0.5% |
| RE/MAX Alliance – Olde Town | 2017 | June | 1 | 0.5% |
| RE/MAX Unlimited Inc | 2017 | June | 1 | 0.5% |
| Real Estate Denver Team | 2017 | June | 1 | 0.5% |
| REAL LIVING CO PROPERTIES | 2017 | June | 1 | 0.5% |
| Realty One Group Premier Colorado | 2017 | June | 1 | 0.5% |
| Resident Realty Colorado | 2017 | June | 1 | 0.5% |
| REVOLUTIONARY REALTY LLC | 2017 | June | 1 | 0.5% |
| SLIFER SMITH & FRAMPTON DENV | 2017 | June | 1 | 0.5% |
| STATE WIDE REALTY | 2017 | June | 1 | 0.5% |
| STOREY REAL ESTATE & CONSTR | 2017 | June | 1 | 0.5% |
| Taylor Realty Group | 2017 | June | 1 | 0.5% |
| TRANS WESTERN REALTY | 2017 | June | 1 | 0.5% |
| Urban Luxe Real Estate | 2017 | June | 1 | 0.5% |
| West and Main LLC | 2017 | June | 1 | 0.5% |
| Windermere Metro Denver Real Estate | 2017 | June | 1 | 0.5% |
| WK Real Estate | 2017 | June | 1 | 0.5% |
