Colorado Real Estate

So, How’s the Market, March, 2010

All real estate data taken from Metrolist, Inc, on March 6, 2010.  Denver, Colorado. 

“Future Real Estate Markets can be predicted by three factors:  Inventory, Interest Rates and Job Stability.” 

March 2010 inventory is showing seasonal growth, but still remains low compared to previous years.  Inventory is at a 5 year low for March 2010.  Inventory in March of 2010 has grown by 1784 units or 9.53% over February.  This is higher than previous February to March inventory growths as the average growth is typically 2.87%. 

An interesting factor is happening in upper end properties for the first time in 3 years.  The inventory is shrinking.  We predicted last year that upper end inventories would come down primarily due to homeowner’s ability to ride out the economic downturn and that is what is happening.  February to March Inventory compared to February closing from $750,000 and above. 

The the sold data above $750,000 to show a slight increase in upper end properties selling in 2010 over 2009.  Watch this trend, as we would predict a higher inventory of upper end priced properties to hit the market in the spring and summer of this year and a slight increase in upper end properties selling over the previous year.  This does not indicate a full turnaround for upper end properties but a positive trend that should be watched to better predict the upper price range future.

 Single Family Homes priced above $750,000 make up 12.2% of total inventory which is higher than normal.

• Single Family Properties priced above $750,000 in the single family category that sold in February 2010 make up 2.7% of all sales in Denver.
• Inventories of single family homes in the 0-$250,000 make up 37.9% of the listing on the market for March.
• Properties priced from 0-$250,000 that sold in February 2010 made up 59.35% of all sales in the Denver area.
• Homes priced from $250,000 to $500,000 make up 38.35% of the sold inventory for March of 2010
• The sold data of homes closed in February 2010 priced between $250,000 and $500,000 represent 33.16% of single family homes sold.
• Single Family Homes constituted 78.37% of all February sales in the single family-condo markets in metro Denver.
• Condominiums priced from 0-$250,000 made up 84.55% of all the condo’s sold in February 2010.
• Condominiums priced above $750,000 represented 1.1% of all condo sales in February 2010.

 Historically Low Interest Rates are Allowing Buyers to Buy in Today’s Market

• First Time Homes Buyers can receive up to $8000 Tax Credit when buying a home this spring.
• Move up homeowners can receive up to a $6500 Tax Credit when buying a home before April 30, 2010.

Rates as of March 6, 2010:  What do these rates mean to buyers buying today? 

Conventional Conforming Rates are loans that are less then $417,000.  These loans may require a down payment of 5%, 10% to 20% in today’s market.  A buyer may be able to obtain a 5% down payment in certain circumstances so long the underwriters are not considering the market as a “declining market”, but for the most part, on a conventional loan the buyer must have very solid credit and a strong down payment and most of Denver has not been considered a declining market.

Job Stability Creates Confidence for Buyers to Buy Properties

 National Unemployment is running at 9.7%.

• Metro Denver Unemployment is approximately 7.5% or more than 2% better than the national average.
• Denver has a resurgent energy industry with both renewable energy and hubs for coal, oil and gas which will expand in 2010 and 2011.
• Service sector jobs have been a large segment of Denver workforce in the past, which has decreased over the last three years.  These jobs are construction, sales and retail.
• Health care is another emerging industry in the Denver metro area for the next two years.

As inventory decreases in lower price points, prices will continue to rise in 2010 in Denver.

• Short Sales will increase as a selling alternative for homeowners and lenders vs. foreclosure.
• The Colorado Foreclosure Protection Hotline provides consumers with excellent FREE information on the foreclosure process. Colorado Foreclosure Prevention Hotline 1-877-601-HOPE  www.coloradoforeclosurehotline.org
• Condominium sales are lagging behind single family homes and will not see the appreciation that entry level single family homes are experiencing.
• Interest rates will rise in the summer through the fall of 2010.
• Inventory in the upper price range will grow slightly from current levels in 2010.

What should buyers do in today’s market?

• Take advantage of the $6,500 dollar Tax Credit before April 30^th contract deadline.
• There are tremendous properties above $750,000 looking for offers.  This window will close in 12-18 months from now.
• Consider terms over price in some instances to move into your dream home.

What should sellers do in today’s market?

• Price your home to sell within 30-60 days.  Get moved now before inventories increase and interest rates increase.
• Offer terms to attract to discriminating buyers.

Know your competition before getting ready to sell.  Utilizing an Experienced Broker is not Expensive, It’s Priceless in today’s market

So, How’s the Market, January, 2010

All data taken from Metrolist, Inc, on January 4, 2010.  Denver, Colorado.

“Do You Wish You Would Have Bought More Residential Real Estate in 1988?  Don’t wish the same thing for 2010.”

2009-2010 will be the timeframe known as the bottom of the real estate market in Denver, Colorado and many will ask the question in the future, “Do you wish you would have bought more real estate in 2009-2010?”  We see the Denver marketplace improving slightly in 2010 over the 2009 and we do see prices starting to appreciate in the 4-6% levels for the entry price points for 2010.

There are Three Key Reasons why 2010 will be a more consistent year in residential real estate because of three major factors starting out the year in 2010 that was not the case the previous three years.

The First Reason 2010 will be improved over past years are inventories are at historical lows in Denver. 

Inventory in January of 2010 is the lowest level in 7 years.  With single family and condo units that are for sale totaling 16781, makes for a 15.4% decrease in the number of available properties over January of 2009 and a whopping 31.5% over January of 2008 

• Single family homes for sale are at a low of 12,637 total number of units
• Condominium homes for sale stands at 4144 units available as of January 4, 2010.
• The decrease in inventory from December of 2009 to January of 2010 represented an 11.15 decrease.  Normally you would expect decreases in the 8% range from Dec to Jan.
• Inventories in the 0-$250,000 range will see appreciation in 2010
• Inventories in the $250,000-$500,000 range will outperform 2009 in number of units sold.
• Inventories of homes priced above $1 million dollars have a large inventory, but this price range typically dwindles faster due to staying power of upper end price property homeowners’ financial ability to wait out the market.  Even though today there is lot of upper end inventory, we believe this will decrease at a faster pace than 2009. 

The Second Reason 2010 will be improved is that the market is moving from a buyers advantage to a sellers advantage in the starter price ranges.   

• When inventories dip below 6 months supply normally appreciation occurs.
• Be cautious with a January month supply ratio as a sole determining factor in predicting the future, because historically inventories are lower in January than any other time of the year.
• Different subdivisions will outperform or under perform the numbers below.  Real estate is localized to the subarea you are living within.  Make sure you know your neighborhood market conditions to predict where the market is going.
• The current supply of Homes in the Denver metro area per price range is as follows: 

 Condominiums are lagging behind single family homes in demand for 2009.

• As lower single family inventory continues to be absorbed, condo inventory will start to be absorbed at a faster pace in 2010.
• 2009 has experienced appreciation in the lower price ranges and the extension of the $8000 first time home buyer Tax Credit and the addition of the $6500 Tax Credit for existing home owners should continue to cause the lower price ranges to appreciate.
• 2010 will start to experience the move up buyer enter the market in the $250,000 to $500,000 range. 
• Conversely, 2009 also saw homes priced above $1 million struggle with holding their prices and experiencing a price declining market in 2009.  Overall the average price dropped 11.2% above 1 million in 2009. 
• There are fewer properties to compete with today and serious buyers are buying now, as the Tax Credit has been extended and expanded to include current homeowners.
• Interest rates are 5% for conforming loans today and more than likely will be a little higher in 2010 causing buyers to make a buying decision early in 2010 versus waiting till later in the year.
• We anticipate a slight rise in interest rates in the first half of 2010 to 5.75% to 6%.

 The Third Reason 2010 will be improved over previous years is Denver’s economic condition is more stable today than at any time over the last 36 months. 

• Job stability is stronger in Denver than other markets
• An increase in employment will start to occur in the second half of 2010, increasing the confidence of the consumers to buy a home.
• 2010 will see more stability in the employment sector providing for more buyers willing to buy. 

Sold Data is a Trailing Indicator of the Marketplace. 

• Sold data is the trailing indicator of market conditions.  We believe 2009 is the low point in number of transactions in 2010 month over month close transactions will be within 1% of 2009 or in some months exceed the previous year.
• The number of total sold units for 2009 was 13.8% less than 2008.
• Condo sales declined 10.2% from 2008.
• Residential sales declined 14.7% from 2008. 

Properties under Contract are the Leading Edge of Predicting the Market 

• The “Under Contract Homes” indicate we have a better pipeline of existing business to open the year versus the last 4 years.  More homes that are set to close is a trend of a market starting to move upwards.
• We anticipate the closing time frame to shorten in 2010 as banks and Realtors are better understanding the financing and short sales processes. 

What did 2009 bring to Real Estate in Denver? 

• The $8000 Tax Credit did create more sales in the 4^th quarter of 2009 and will enhance the sales the first 4 months of 2010.
• The number of properties under contract remained at higher levels which indicated a longer closing period and increased buyer confidence to stay with the elongated process of short sales and financing challenges.
• A reduction of upward of 20% of the number of real estate brokers in the Denver Metro decreased in 2009.   Work with a professional to protect your position.
• The average price of a home declined 2.3% in the Denver Metro area.  Lower priced properties went up and higher priced properties declined.  Know your neighborhood before just assuming the trend affects you and your home. 

Overall 2010 will bring compelling reasons to buy real estate in Denver. 

• The $8000 tax credit for first time homebuyers and the $6500 dollar tax credit for existing home buyers will increase demand the first half of 2010.
• Interest rates are at historical lows and will rise.  Once that occurs, buyers will move more quickly to obtain the home of their choice.
• Continued fewer new home starts will create less competition for resale homes and allow them to be absorbed at a quicker pace than in 2005, 2006, 2007 and 2008.
• Alternative marketing methods will be used to move real estate including short sales, loan modifications, pre-foreclosure programs and property auctions.
• Prices for the upper end market continue to offer extraordinary concessions making for a perfect time to acquire the home of your dreams. 

What should buyers do in today’s market?

• Take advantage of your “Move-up Power” by exploring what it would take to rent your existing home and get an exceptional deal on your next home.
• Get qualified before starting your search to become more attractive to sellers.
• Be creative in your offers to add closing costs, HOA dues or points to make the monthly payment more attractive to you short term. 

What should sellers do in today’s market?

• Know your individual sub area statistics to best position your home.
• Have your home professionally staged to capture the eye of today’s buyers.
• In the lower price ranges, be the best conditioned to get multiple offers.
• In the upper price ranges, offer extraordinary terms to attract the buyers to your home. 

Press Release

Centura Health Announces Phase One of its $23.6 Million Castle Rock Medical Campus

Establishing Itself as Castle Rock’s Health Expert and Health Care Partner
Castle Rock, Colo. (Jan. 13, 2010) — Delivering advanced care to more than half a million people each year, Centura Health today announced its $23.6 million Castle Rock expansion plans. Centura Health – Colorado’s largest health care system – plans to build a new 40,000- square-foot medical office building, 20,000-square-foot emergency room and imaging center in Castle Rock to offer full emergency medical services. In partnership with the Castle Rock community, the Centura Health Castle Rock project will bring advanced, specialized health care to the growing population of 42,000-plus in Castle Rock who must currently travel outside of their community to get medical care. Residents will now have direct access to programs and services in the Centura Health network, recognized nationally for its treatment of cancer and stroke, along with the most extensive network of health care anywhere in Colorado.
CREATING SYSTEMS OF CARE IN CASTLE ROCK:
Slated to break ground in summer 2010, the first of two-phases include a new facility that will boast a state-of-the-art emergency department open 24-hours a day, seven days a week, providing emergency care for everything from fevers to bumps and bruises, and major medical events.
The emergency department will be staffed by board certified emergency physicians and nurses who specialize in emergency care and will offer the same resources as a hospital’s main emergency department including: laboratory services; radiology and CAT scan.
Ten percent of patients are admitted into the hospital following an emergency department visit. If a patient is in need of an additional level of care, they will be transferred to another hospital in the Centura Health network.
In 2007, the faith-based, non-profit hospital and health care provider purchased 50 acres in The Meadows at Historic Castle Rock on the northeast corner of Meadows Parkway and Prairie Hawk Drive. The Meadows, a planned community, borders to the west and includes a town center and various residential units, with convenient access provided by I-25. With 12 hospitals, seven senior living communities, medical clinics, Flight For Life®
Colorado, and home care and hospice services, Centura Health will be able to offer a team of connected networks and shared resources to deliver ccessible, reliable and costeffective health care to Castle Rock and across the state. Funding for the $23.6 million project is provided by Adventist Health System.
CASTLE ROCK RESEARCH INITIATIVE:
According to the Colorado Department of Public Health and Environment, Castle Rock’s general physical and mental health exceeds Colorado’s averages, yet there are higher incidents of breast cancer, prostate cancer and stroke.As of 2009, the population in Castle Rock was 42,447 people, with families (non-single residences) representing 76.7 percent of the population, giving Castle Rock a higher than average concentration of families.Since 2000, Castle Rock has had a population growth of 96.21 percent. Approximately 65 percent of Castle Rock residents are under the age of 44, with only seven percent above the age of 65. In February 2010, Centura Health will engage residents, physicians, community leaders and major employers to identify local hospital services, market challenges and community health care preferences. Through intensive community research and community collaboration, Centura Health will develop programs that address the current and future needs of the Castle Rock community.
Beginning in 2011, with the addition of the emergency room, imaging center and medical office building, the majority of health needs will be provided directly in the homes, schools, churches, places of work, places of leisure and Centura Health facilities in and around Castle Rock.
QUOTES:
“As we approach the development of our Castle Rock-focused health services and facilities, we are very excited about the opportunity of being trusted partners for life with the residents of Castle Rock,” said Gary Campbell, president and CEO, Centura Health.
“We would not be able to embark on this project without the strong partnerships and support from local officials, business and civic leaders and the residents. It’s our commitment to deliver specialized expertise and quality health care in a facility designed on behalf of the Castle Rock community.” Campbell adds, “Through direct linkages to the Centura Health network, the Castle Rock community will have access to the best and most extensive system of health care anywhere in Colorado, but even more importantly, programs and services specifically tailored to the needs of the residents of Castle Rock.” “Later this month, we’ll undergo an extensive research project to further engage the community to help us identify local hospital services, and opportunities for us to collaborate and continuously improve the health status of the community,” said Brian Moore, administrator of the Centura Health Castle Rock Project.
“We look forward to partnering with the Castle Rock community to chart the course for the future of health care in Colorado.”
“Our partnership with Centura Health is a win-win for the Town of Castle Rock and the region,” said Frank Gray, president and CEO of the Castle Rock Economic Development Council. “Not only is the project bringing tailor-made health care to our community, it will create numerous primary and secondary jobs for our community and further bolster the area’s strong health services sector.”
About Centura Health Centura Health is Colorado’s largest hospital and health care network and we are charting the course for the future of health care. Approximately 13,000 of the health care industry’s best and brightest deliver advanced care to more than half a million people each year, across 12 hospitals, seven senior living communities, medical clinics, Flight For Life® Colorado, and home care and hospice services. Our strength lies in our ability to offer a team of connected networks and shared resources to deliver accessible, reliable and cost-effective health care across the state.

Facing foreclosure or mortgage problems. There are solutions and options out there to get help. Get your free report. Foreclosure and Mortgage Options 

Did you know that 1 in 10 homes currently face these challenges?

Get a a report on Deed in Lieu of Foreclosure

H.R. 2454 American Clean Energy and Security Act -2009. How does this zinger effect you. Stand up and take notice, it will effect us all;

Imagine the cost and the impact to the economy,
Cap & Trade Bill – Proposed….one year after the bill passes you WOULD NOT be able to sell your home unless you retrofit it to comply with energy and water efficiency standards. If passed, it would be the largest tax increase we’ve ever seen. To date, although not official, the residential piece has been taken out of this bill. Commercial is still in tact.
NAR has written the White House and various federal agencies and is following up with meetings to reinforce our strong concerns about the stigmatizing effects of these labels on real estate at one of the most critical moments in the nation’s economic recovery.
Contact these congressmen, let your voice be HEARD!
Legislative Contact:Austin Perez, APerez@realtors.org, 202-383-1046

Regulatory Contact:Russell Riggs, rriggs@realtors.org, 202-383-1259

Legislative Contact:Helen Devlin, hdevlin@realtors.org, 202-383-7559

In Castle Rock, CO many homes are in in danger or foreclosure or in need of financial assistance to the homeowner. Recently, Real Estate agents across the country, combined with efforts of congress and lenders to help struggling homeowners streamline the process for getting homes sold and helping homeowners back on there feet again. Less than 15,ooo agents across the country hold the CDPE designation and have  figured out how the move the process forward. Those who have are helping countless homeowners back to the road of recovery and banks and lenders are actually working with them to get properties sold and closed. Yes I said it they are working with us to get the properties moved and homeowners back on the road to recovery.

If yolou or someone you know is struggling with your home, lender or in danger of foreclosure, contact us today. There are options!

David Richins, CDPE, SFR, GRI, ABR, e-Pro

Re/Max Professionals

303.882.7706

So, How’s the Market, December, 2009

All data taken from Metrolist, Inc, on December 5, 2009.  Denver, Colorado.

November sold data outperformed, 2008, 2007 and 2006 in number of single family and condo units closed for the month.  This is the first time in four years we have seen a Month outperform several years prior for the same period.  The $8000 Tax Credit, low interest rates and increased consumer confidence because of low housing prices fueled this years November closings.   The November sold data showed 3289 closed units and in 2008 it was 3056 units closed or 233 more units closed this year for a 7.08% increase over last November.

 We have had a seasonal slow down from October to November with closings slipping from 3708 units in single family and condo homes in October to 3289 units in November or an 11.3% reduction in closings from October 2009 to November 2009.  Normally a reduction of 10% occurs between October and November, so watching this trend of increased sales year over year and normal seasonal downward sales can help us predict the 2010 real estate year in Denver. 

Sold Data;

• December Active Listing Inventory is at 14259 for single family home’s is down from 17176 from one year ago.
• The number of Active listings for Condominiums in December is 4620 and last December there were 5095 units available. 
• The current 18879 active single family and condominiums is the lowest December inventory in more than 5 years. 

Listing inventory continues to decline as you can see over the last five years.  A little abnormality occurred in December of 2009 for homes priced from zero to $250,000.  Normally we would see a decrease in inventory, but this price range actually went up from November 2009 to December 2009 from 4963 Single Family units to 5080 single family units.  We want to watch this over the next several months to determine if a market shift is occurring in the lower price ranges.  2009 has experienced the largest price increase on average in the lower price ranges and the extension of the $8000 first time home buyer Tax Credit and the addition of the $6500 Tax Credit for existing home owners should continue to cause the lower price ranges to appreciate, but watching the inventory in the upcoming months will tell us more about where we are going. 

• There are fewer properties to compete with today and serious buyers are buying now, as the Tax Credit has been extended and expanded to include current homeowners.
• Interest rates are 4.875% for conforming loans today and more than likely will be a little higher in 2010 causing buyers to make a buying decision now versus next year.
• We anticipate a slight rise in interest rates in the first half of 2010.
• We are seeing investors creating loans have more competitive jumbo rates in small doses.  Watch as these are in and out of the market quickly. 

Under Contract data is still outperforming pervious years for December 2009.

 The number of properties under contract is at 5694 single family and condo units. 

• The number of properties under contract today is 298 units higher than 12 months ago. 
• Job stability in Denver will allow more buyers after the first of the year to take advantage of the Tax Credits being offered.
• The number of properties under contract in December of 2009 is the highest recorded December in 4 years. 

What should sellers do in this market? 

• Today’s real estate market for sellers is a choice of your home being a beauty contest or a fire sale.  You must be the best looking home or the lowest priced property to attract today’s buyer pool
• Although inventories are decreasing, know your specific price range, as each price range affords a different amount of buyers buying today.
• Consider an Owner Will Carry scenario for upper end price homes with equity.  This is a creative tool for those sellers who have the ability to carry the paper for the buyer buying their property and get a return on investment.
• Offer a holiday special price reduction, like “10% off the Price for Christmas to New Years Week”. 

What should buyers do in this market? 

• With the extended $8000 dollar Tax Credit for First Time Buyers and the NEW $6500 Tax Credit for existing homeowners who will buy a primary residence, get into the system of being pre-qualified now as there will be an increase in the buyer pool causing competition for homes in January and February.
• Have you considered using your Retirement Account IRA to purchase an investment property in 2010?  You can do that with a good upside for returns compared to other investment vehicles.
• Become a pre-qualified buyer before looking.  The guidelines for lending changes daily and you want to be approved before moving forward. 

Vital Stats from RE/MAX Professionals:

REMAX Professionals has already closed greater than $1.301 BILLION in sales in Denver for 2009 through November.

• REMAX Professionals closed 411 units in November 2009 against the market that closed 3289 units.
• REMAX Professionals put 304 homes under contract in November 2009.
• REMAX Professionals introduces Voice Pad to our Clients. Search all actives listings by dialing one number and get all information from your phone!

As of March 6, 2009 the Denver Real Estate market avg sale price was 235,542. The average days on the market were right around 95 days. As of December 4, 2009 the average sales price had risen to 263,923 and the average days on the market had declined to around 85 days.

What does this tell us about Denver. We have made the turn and that Real Estate in the Greater Denver Metro area is on the upswing and starting to trend back up. The so called declining market at least for this state has turned and properties are beginning to appreciate.

Take a look at the the $8000.00 first time home buyer credit, use the buy up credit of $6500.00 get on board use it this year for your taxes or the first part of next year. If you are looking to buy now don’t delay the advantages for the tax credit are huge and will most likely will not be seen again.

Check out the home search feature to the right and find that next property!

Just listed!

Virtual Tour It Now!

3511 Sawgrass Trail, Castle Rock, Colorado 80109. The terrific 4 bedroom 4 bath fully finished basement shows model perfect. Many custom touches and upgrades are featured in this former model. The home sits on 1/4 acre lot and is fully fenced. Located in the Meadows at Castle Rock this perfect home will enchant your every need! Priced at 279,900 this home will not last long!

Today, the Senate and Congress finally got the Homebuyer Tax credit extension passed into early 2010.  This should help continue the home buying frenzy and the continued appreciation of homes and home sales in the Denver Metro area.