Colorado Real Estate

It’s a tale of two headlines during the month of September for the overall residential market in the greater Denver Metro area.

First headline “Residential market bounces back with 15% more closings this month” or the second headline reading “Average sale price of single family home drops by 15% to $260,118 in Metro Denver”.  Both headlines correct but paint two completely different pictures.  I think the real story is that closing are up because investors and barging hunters are out looking for deals which is reflected by a significant drop in average sold price.  Active listing (inventory) has reduced by 4,531 homes or 20% versus this time last year. This is due in part because home sellers are unable to compete with bank owned properties on price and tighter lending standards are making it more difficult to purchase homes. Higher priced homes that require buyers to obtain jumbo loans have been affected due to higher rates and tighter lending standards on these mortgage products. The reduction in absorption rate to 5.7 months versus 7.9 months a year ago has been affected not only by the number of closed transaction but also the reduction in inventory due to some sellers giving up.  7,509 new homes came on the market this September versus 8,693 last year at this time a reduction of 13.6% which should help the average sale price of homes start to rebound. 

Douglas County West (DCW) – Closings for the month of September ended up down 11% at 138 single family homes closed.  Year to date DCW is down 18% in closings.  The average sale price held strong at 494,670 an increase of 9.6%.  Inventory remained about the same at 1,520 homes on the market an increase of 3.1%

Douglas Elbert Parker (DEP) – Closings has a slight increase in closed sales in September 08 up by 3.5%.  Year to date DEP is down 17.3% in number of closings and averages sale priced dipped to $307,940 a decrease of 16.3% over this time last year.  Condo sales soared in September up 50% with 27 condo units closing in the month of September.  Inventory dropped by 141 homes a decrease of 10% compared to this time last year.

Douglas Highlands Ranch Lone Tree (DHL) – Closings ended up about the same as this time last year with 159 single family homes closing in September an increase of .6 %. Year to date DHL is down 19% in closed single family homes. Average sale price dipped to $335,768 a decrease of 11.7% compared to September of 2007.  Inventory decreased by 68 homes or 10% compared to this time last year.

For more information on the Denver Colorado Real Estate Markets visit; www.RichinsHomesTeam.com

All is not lost, remember the Denver Market and Colorado’s economy….

Colorado’s largest mortgage lender is making it easier for homebuyers to borrow money.  Wells Fargo Home Mortgage on Saturday upgraded the status of Denver metropolitan area’s real estate market from “distressed” to “stable”.  “The fundamentals in the Denver market are changing,” said Greg Osborne, regional vice president of the mortgage company.  “Inventory is being worked down, and as a result, prices are stabalizing.”  There were 24,648 homes on the market last month, a 20 percent drop from August 2007’s 30,827 homes, according to data released last week.  The improved status of the market means consumers can borrow 5 percent more than they previously could, Osborne said.  “I am hopeful that it will stimulate demand by increasing confidence in our market,” he said.  “We may have led the nation into the doldrums, but we’re again leading out of the doldrums.” Jim Theye, managing broker for Kentwood City Properties, said the move could signal that the market has hit bottom and is showing signs of improvement.  “This will really help buyer confidence, and it will really help rekindle a positive market,” Theye said.  “Our brokerage is definitely seeing increased activity.”  Dee Chirafisa, also of Kentwood City, said she expects other lenders to follow Wells Fargo’s lead.  “If they loosen up on some of the guidelines and make it easier for people to get loans, that will start activating the market,” she said.  Lou Barnes, owner of Boulder West Financial Services, said the negative perception of Denver’s market has been misplaced.  Barnes points to the PMI mortgage Insurance Co.’s risk index, which says Denver has a 1 percent chance of home prices falling.  That’s far better than the 35 percent chance of prices falling that PMI forecast the region in 2003.  “Despite Denver’s high foreclosure count, as a matter of price decline and underwriting risk, our greatest exposure was ast the moment the tech bubble blew back in 2002,” Barnes said.  Jerry Kaplan, vice president of capital markets for Cherry Creek Mortgage, said the Denver market has been stable since June.  “Fannie Mae and Freddie Mac removed Denver from their declining-market list several months ago,” Kaplan said.  “There are certain pockets around the area that have a higher concentration of foreclosures, which in that immediate area is driving prices down.” The Standard & Poor’s/Case-Shiller U.S. Home National Home Price Index dropped 15.4 percent for the one year period that ended in June.  Denver, however, was only down 4.7 percent for the period and has shown three straight months of price growth.  (Margaret Jackson, Denver Post)

Extra,  Extra,  the Fed stepped in and the rates are dropping along with 5883 Randolph Avenue, Castle Rock, Colorado 80104. Reduced to 310,000.00 this 4 bedroom 3 bath over 2600 sq foot finished home on a .25 of an acre. New Roof,  A/C & Exterior Paint. Ready to move in, Douglas County Colorado Schools, Parks, Trails and open space abound. Don’t miss a buying opportunity.

See the virtual tour on our website or get signed up for Free Home Buyers Scouting Report.

David Richins, GRI, ABR, e-Pro

Direct: 303.882.7706

Fax: 303-597-5522

Email: derichins@yahoo.com

Web: www.RichinsHomesTeam.com

Blog: www.GoColoradoRealEstate.com

This morning the Wells Fargo Bank one of the nations biggest lenders came out with upgraded ratings for the Denver Market. The markets have moved to “Stable” with multiple other lenders and Real Estate brokers weighing in on the news being positive for the Colorado Real Estate Market. Many agreed this is a confirmed signal that the market in Colorado and the Denver area may have hit bottom. With the decline in inventory and coupled with the fact that Freddie Mac and Fannie Mae removed the Denver market from a declining market months ago the buyers in the market may start to see a greater uptick in seller movement and homes going faster and the “time to buy” being now.  This is fantastic news for the Denver Markets. Buyers should get off the sidelines and sellers should be excitied as the days on the market along with inventory should continue to drop.

David Richins, GRI, ABR, e-Pro

Direct: 303.882.7706

Fax: 303-597-5522

Email: derichins@yahoo.com

Web: www.RichinsHomesTeam.com

Blog: www.GoColoradoRealEstate.com

The overall residential real estate market in the greater Denver Metro area was off by 362 closing or 9.2% fewer closing in when comparing August 2008 to 2007.  Year to date the overall market has closed 5.2% fewer residential homes.  Average sale price is at $284,531 or 13.7% less than this time last year.  There has been a reduction in overall inventory with 19,050 residential homes, 18% reduction and 6,840 condos on the market, 26.3% reduction.  My guess is the reduction in inventory is the beginning of seeing average sold prices start to increase.  Then number of new listings coming on the market in Aug was off by 26.7% for residential homes and 30.1% for condos.  The overall Average Days on Market is 97 for residential and 104 for condos.

Douglas County West (DCW) – Closings where down in Aug off by 69 closings or 33.7% compared to Aug of 2007. Year to date the DCW is off by 18.8% in closings. Inventory is slightly up to 1,545 or 6.5% over Aug 2007. Absorption rate shot up to 11.6 months a dramatic change of 56.9%.

Douglas Elbert Parker (DEP) – Closings decrease by 138 homes or 17% compared to Aug 2007.  Year to date DEP is off by 19.6%.  Inventory decreased slightly to 1,285 or 4.2% and new homes coming on the market decrease by 28.6%.  Average sold price is currently at $344,397.

Douglas Highlands Ranch Lone Tree (DHL) – Closings decreased 85 homes or 33% compared to Aug 2007.  Year to date DHL is off by 21%. Inventory decreased slightly to 636 with 362 new homes on the market for Aug 2008.  Average sold price increased by 4.5% to 394,887.

I was looking at the following as part of due diligence being that I am Colorado Realtor as well as a Colorado Home Owner in the United States of America. The following points are things I think we need to be aware of from first time homeowners, to real estate investing and buying up or downsizing. The man who wins the White House could effect how we think about real estate and home ownership and how we do business. How does it effect you??

In addition we could be looking at other changes as well take a look:

In addition to those we should consider the following additions and brace ourselves…..

Obama Proposals:

New gasoline taxes (as if gas weren’t high enough already) New taxes on natural resources consumption (heating gas, water, electricity)  New taxes on retirement accounts, and last but not least….New taxes to pay for socialized medicine so we can receive the same level of medical care as other third-world countries!!!

As a small business owner how does one afford to business, invest, buy or sell a home let alone heat one on the economic plans above? If you think the current system and plan is not working and the foreclosure rates are high now. Wait until some of these changes are put into place.

You can verify this information at;

http://money.cnn.com/news/specials/election/2008/index.html

http://www.cnn.com/ELECTION/2008/issues/issues.taxes.html

http://elections.foxnews.com/?s=proposed+taxes

http://bulletin.aarp.org/yourworld/politics/articles/mccain_obama_offer_different_visions_on_taxes.html

http://blog.washingtonpost.com/fact-checker/candidates/barack_obama/

http://blog.washingtonpost.com/fact-checker/candidates/john_mccain/

David Richins, GRI, ABR, e-Pro

Direct: 303.882.7706

Fax: 303-597-5522

Email: derichins@yahoo.com

Web: www.RichinsHomesTeam.com

Blog: www.GoColoradoRealEstate.com

11765 Crabapple Drive, Franktown, CO 80116 - Fabulous 5 acre horse property for sale. Property features 4 bedrooms, 2 bath, an oversize 2 car garage. New barn and horse lien to’s. The home is vinyl sided and has recently had new kitchen cabinets and carpet. Price just reduced and ready for sale.

David Richins, GRI, ABR, e-Pro

Direct: 303.882.7706

Fax: 303-597-5522

Email: derichins@yahoo.com

Web: www.RichinsHomesTeam.com

Blog: www.GoColoradoRealEstate.com

Terrific Castle Rock Colorado Home for sale. Located in the heart of Castlewood Ranch. This fantastic 2 story property is located at 5883 Randolph Avenue, Castle Rock, CO 80104. Features 4 bedrooms and 3 baths, on a 1/4 acre lot fully landscaped with a 3 car garage. This home features stone front exterior and new exterior paint. New roof and new a/c in Sept of 2007. The floor plan flows through out with high ceilings, niches and formal dining and living rooms. You will also find a huge eat in kitchen with center island and secretaries desk along with eat in breakfast nook.

Take a Free Virtual Tour of this property!

David Richins, GRI, ABR, e-Pro

Direct: 303.882.7706

Fax: 303-597-5522

Email: derichins@yahoo.com

Web: www.RichinsHomesTeam.com

Blog: www.GoColoradoRealEstate.com

NAR Chief Economist Lawrence Yun, The Housing Stimulus Bill passed in the Senate over the weekend.  President Bush said he will sign it into law.  That means housing recovery is on its way. There are many components in the bill, but the one that is the most exciting is the homebuyer tax credit. Up to $7,500 will be given to first-time home purchasers as they file their income tax returns.  The amount gets phased out above a certain income level and is to be no more than 10 percent of the home purchased price though most people will qualify for the full amount.  This is almost like a “credit”, which means that the amount is equivalent to cash on tax returns. Example: you do your normal tax return and find that you owe $1,000 next year.  You then apply the $7,500 credit and the government will send you a tax refund check for $6,500.  This credit has a time window and will not be available from July 9th, 2009 on.

 
It is not a full credit because you do have to pay back this amount over a 15 year time period from the second year.  The payback provisions also have many conditions, which we are further researching.  But in the worst case, you would need to pay back the $7,500 over a 15 year time span from 2010.  So in your 2010 tax filing, you would need to pay $500. 

 
Even in the worst case scenario of paying back the tax credit fully over a 15 year time span, the tax credit is still a huge benefit to homebuyers.  First, money today is worth more than money tomorrow - far more than money 15 years from now.  Money loses value over time due to inflation and from the interest income one would receive on that money before fully paying it back.  A smart consumer could pay off a high-interest credit card debt with the tax credit money and that would be the best winning strategy.
I am excited about the tax credit because it will have the biggest impact in getting the housing market moving again and in lessening the foreclosure pressure.  Hopefully homeowners across the country will benefit as they see home prices strengthen.  The economy will also improve - with higher aggregate income for U.S. workers and a lower unemployment rate.

There are many lending institutions out there quoting the government changes in the loan process and the fact that the “first time buyer” programs will be going away for good as of October 1, 2008. This is true to a certain extent. However, there are still several state governed programs that allow a first time home buyer to use grant monies and purchase a home. Even current home owners that sell there principle residence can use and qualifiy for these types of programs. The interest rate will be a little higher however if you need the funds it may be worth it. Don’t let a Real Estate agent or a Mortgage Broker or company fool you into thinking that if you don’t buy right now or sell right now you may not get these types of programs. They are still there and still alive. Buy with confidence and know that you are getting into the right program and the right home.

To find out more about buying or selling a home and using down payment assistance programs to purchase a home now or after October 1, 2008 contact the Richins Homes Team or visit my web site for a list of homes available and updated daily.

David Richins, GRI, ABR, e-Pro

Direct: 303.882.7706

Fax: 303-597-5522

Email: derichins@yahoo.com

Web: www.RichinsHomesTeam.com

Blog: www.GoColoradoRealEstate.com