Real Estate Stat Chart

Real Estate Stats

Important FHA Update

Important FHA Update

Loan limits have increased for the Denver Metro! HUD has announced on 02.25.09 the hi cost loan limits. For specific counties please see:

https://entp.hud.gov/idapp/html/hicostlook.cfm

The Denver Metro area is back up to $406,250 for a single family home. (this is up from previous 2009 limits)

2 Family: $520,050

3 Family: $628,650

4 Family: $781,250

To include, Denver, Jefferson, Adams, Broomfield counties. Boulder county is at $460,000

This is great news but these amounts are still being implemented at the investor level so as such are not yet available but definitely coming soon. This is great news for the purchase season! That coupled with the stimulus benefits equals NOW is a great time to buy.

For HUD’s complete release please see:

http://www.hud.gov/news/release.cfm?content=pr09-014.cfm

Avalanche Game March 4

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Facing Foreclosure

Many Homeowners Facing Foreclosure
Are Unaware They Have Options to Keep Their Home


It’s no secret that there are tens of thousands of families here in the Denver area who are facing foreclosure because they can’t afford their mortgage payments, or they owe far more than their home is currently worth. But what’s particularly sad is that many of those homeowners don’t realize that they have options that could very well let them stay in their homes.

Although Realtors are in the business of selling homes, right now we understand just how important it is to help our neighbors keep their homes. Foreclosures have been at the core of the current economic crisis, and the Obama administration has announced that is working on plans to help stem the number of foreclosures. In many cases, local homeowners are in danger of losing their property because of job losses or because their adjustable mortgage interest rate has increased sharply and they can’t afford the higher payments. But there are ways that they can avoid foreclosure.

If you are in this position, the very first thing you should do is reach out to your lender or a housing counseling agency to begin the process of exploring a loan workout that could help you keep your home. Lenders are often willing to try to work out repayment plans to avoid having to take on more foreclosed properties. But unfortunately many homeowners aren’t aware of this option. The Mortgage Bankers Association reports that fully half of all homeowners who end up losing their homes to foreclosure have never once contacted their lender.

In recent weeks, Coldwell Banker Residential Brokerage has launched a public education and community outreach program called “Save the Dream” to get the word out that there is help available to homeowners. We will be offering advice, information and resources to assist homeowners through community meetings, advertisements, news announcements and daily customer interactions.

If you are facing foreclosure, it’s critical that you don’t ignore the problem. As simple as it sounds, you should open and respond to all mail from your lender. The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems. Later mail may include important notices of pending legal action. The further behind you become in payments, the harder it will be to reinstate your loan and the more likely it becomes that you will lose your house.

Homeowners unable to make their mortgage payments might qualify for a loan workout option, according to the U.S. Department of Housing and Urban Development. HUD recommends that you check with your lender to see which options may be available. Some options may not apply to your loan if it is not insured by FHA. If your problem is temporary, call your lender to discuss the following possibilities:
o Reinstatement: Your lender is always willing to discuss accepting the total amount owed in a lump sum by a specific date.
o Forbearance: Your lender may allow you to reduce or suspend payments for a short period of time and then agree to another option to bring your loan current. A forbearance option is often combined with a reinstatement when you know you will have enough money to bring the account current at a specific time.
o Repayment plan: You may be able to get an agreement to resume making your regular monthly payments, plus a portion of the past due payments each month until you are caught up.
However, if your situation is long-term, such as a job loss, or will permanently affect your ability to bring your account current it’s important to talk to your lender about mortgage modification. If you can make payments on your loan, but don't have enough money to bring your account current or you can't afford your current payment, your lender may be able to change the terms of your original loan to make the payments more affordable.

Your loan could be permanently changed by adding the missed payments to the existing loan balance. The lender may also change the interest rate, including turning an adjustable rate mortgage into a fixed rate loan. And finally, many lenders are willing to extend the number of years you have to repay in order to make the monthly payments manageable.

If you’re facing foreclosure, there are lots of resources available to help you. A good place to start is HUD’s guide to avoiding foreclosure: http://www.hud.gov/foreclosure. HUD sponsors housing counseling agencies throughout the country that can provide advice on dealing with defaults and foreclosures. Contact information is available on the HUD Web site.

Another organization set up to help families facing foreclosure is HOPE NOW. This is an alliance between counselors, servicers, investors, and other mortgage market participants. HOPE NOW provides counseling and assistance to homeowners. The organization has a variety of information available on its Web site, www.hopenow.com. In addition, Consumer Hope Center, www.loanhopecenter.com, provides a loan modification guide and other valuable information to help consumers keep their homes.

As a real estate professional and a long-time resident of the Denver area, I believe that we have both an opportunity and an obligation to help our neighbors and our local communities by trying to prevent as many foreclosures from occurring as possible. By helping to spread the word that homeowners do have options to keep their homes, we’ll be going a long ways to helping keep all of our neighborhoods strong and vibrant.

Rovena Flores

Time to get off the Fence

Now is the time to buy, mortgage rates are low.
Call Rovena today 303-204-7992

Economic Stimulus Package

Economic Stimulus Package Could Bring Big Benefits For Real Estate Sector

If you tuned into CNN, Fox News or any of the other major news media outlets this week, you likely watched the drama unfold regarding the new Economic Stimulus Package which is currently making its way through the Senate. This controversial package has many speculating as to its legitimacy but is being driven by President Obama in an effort to jump-start our ailing economy.

To learn more about the status of the Economic Stimulus Package, click here: http://www.reuters.com/article/politicsNews/idUSTRE5136U320090204?virtualBrandChannel=10112
As of now, the Economic Stimulus bill is winding its way through the U.S. government, pushed by Demographic leaders who want to present President Obama with legislation he can sign by-mid February.

From a real estate perspective one of the biggest potential benefits of this Economic Stimulus Plan is special Amendment #353 to the Plan, a provision for the Federal Government to buy-down mortgage rates to 4.5% or less for a 30-year fixed rate loan for the purchase of a primary resident. Without question, a 4.5% or lower, 30-year fixed rate mortgage would help stimulate housing sales and would also open the door to hundreds of thousands of new potential buyers by greatly improving housing affordability.

While the Economic Stimulus Package makes its way through Washington, real estate sales continue to show new signs of life. Just this week, NAR released its pending home sales report noting that pending home sales rose 6.3 percent nationally to 87.7 from an upwardly revised reading of 82.5 in November and is 2.1 percent higher than December 2007 when it was 85.9.

Also noteworthy this week was an article I came across on Reuters.com http://www.reuters.com/article/newsOne/idUSTRE5140H420090205 which points out that housing markets across the country may be nearing bottom and we should begin to see signs of new life by the 4th quarter of this year. Among the highlights of the article:

• "More than three years since the market began correcting, inventories are flattening, prices are coming back down to earth, and sales are approaching stability," the report said.
• “The outlook, however, assumes stronger action by U.S. policymakers and says that even with further government intervention, the recession will keep the housing market from fully recovering until the end of this year.”
• “With this help, sales are probably at bottom, stabilized by foreclosure sales, while construction will hit bottom in the first half of this year, although the pace of housing starts will remain very depressed until 2011.”
The coming week will likely be an interesting one in Washington, D.C. as lawmakers make the final decisions on the Economic Stimulus Package. It will be exciting to see the details unfold and the plan take shape as lawmakers work to quickly restore our ailing economy.

Locally, we’re seeing some interesting trends. As we continue to work through our bank owned properties, it is a welcome sight to finally see banks responding to short sale offers. Couple that with the fact that with interest rates so low, buyers—especially first time home buyers and some investors—are finally beginning to feel the need to come off the fence and take action. The hardest hit markets are new construction and the upper end. Both are nearly at a stand still though as prices begin to stabilize and we finally weed through the bank owned properties (later this year), we should begin to see a domino effect that ultimately benefits all price ranges.

Now let’s take a look at this week in real estate:

• Boulder County—The Boulder office reports that listing inventory, sales activity and showing activity are all steady, though activity in the below $500,000 range has been much more active than the higher price ranges. Well-priced foreclosures are commonly drawing multiple offers and we’ve seen a notable uptick in first time home buyer interest.
• Colorado Springs—The Colorado Springs office is reporting an interesting trend noting that military are returning at a steady pace. The Space Command Center at Schriever Air Force Base continues to expand bringing more transfers from California. Since the closing of John Lang Homes, new development in the area is now very quiet.
• Conifer—The Conifer office reports increases across the board including listing inventory, sales activity and showing activity. This week we listed a new subdivision in Conifer with six lots priced at $250,000 each. We saw some good sales activity including four offers on our listings, three are short sales and we are awaiting bank approval. We also submitted two offers on behalf of buyers and are awaiting responses from the sellers. Showing activity continues to be strong with 29 showings and four Agent previews during the week.
• Denver Central—The Denver market is still holding steady. We are seeing 5-7% of our deals going into multiple offers, thanks in large part to REOs and short sales. With interest rates at all time lows, many buyers are making their move. Listings are up but we are still seeing more buyers. Last week we had one non bank owned property that had three multiple offers. The lesson: when priced right, they sell.
• Devonshire—The market is positive right now. There is good energy with lots of showings. Buyers are beginning to realize that with interest rates at such great levels and inventory decreasing, it’s time to get out and find a home. Open houses are busy. In this market it is especially beneficial for sellers to work with full-time, knowledgeable professionals who are on top of trends and current market conditions.
• Evergreen—Our Evergreen office reports a good, solid week with four new listings. We also had two of our listings go under contract. There were 36 showings plus seven Agent previews for the week making a total of 180 showings for the month.
• Larimer County—Our Fort Collins/Loveland office is reporting decreasing inventory along with steady sales activity. The Loveland market remains slower but steady given the season. In Fort Collins, showings are heading upward and many home owners are taking advantage of ultra low interest rates and the opportunity to refinance. Inventory levels continue to fall as fewer listings are taken. We are anticipating a very strong Spring selling season when demand for move-in ready homes that can close quickly increase substantially. The new construction market is at a stand still. There are very few new permits being issued. This will assist in keeping inventory levels reduced and will keep a balance between supply and demand.
• North Metro—The North Metro office is noting huge leaps in listing inventory and showing activity. Many of our Agents are currently in multiple offer situations with their buyers. The reason contracts are down this week is that we are waiting on banks. Once these break loose we should see a real spike in sales. We had over 80 properties come on the market. Showings are way up. We expect many contracts in the coming weeks. It’s an exciting time at the North Metro office!
• Parker—The Parker office is reporting a temporary slight drop in sales activity, mainly because many of the bank owned properties have sold. Showings are still increasing. Activity is up throughout the lower and mid price range as well as on investment properties. Upper price range inventory ($600,000 and up) is still increasing about 10% per month. This effects total inventory numbers. Short sales are still on the rise and we have formed a short sale expert team to help those needing assistance in that area.
• Southeast Metro—The office is busy with showings and Agents are reporting great activity at open houses. One Agent had more than 30 visitors at a single open house. We have taken 92 new listings this month and many of our current sellers are repositioning their properties as a result of experiencing increased activity. We are seeing multiple offers though typically on bank owned properties.
• Southwest Metro—Our Southwest Metro office is reporting steady listing inventory and sales activity despite the fact that some buyers are weary due to big layoffs that were announced this week. But these announcements haven’t really slowed down interest level. Showing activity is up. One Agent had three successful buyers and one is closing next month. Another had three buyers who called this week saying they are finally ready.

My overall assessment of the market this week is that buyer interest is up. It seems buyers are finally realizing that with today’s low interest rates and generous amount of inventory—including a large number of bank owned properties—they may be in a very strong position and in all likelihood, can afford a lot more home than they could’ve a year ago, or even six months ago for that matter.

Next week I will release my February Reality Check which will focus on interest rates and how they may affect a buyer’s purchasing power. I trust this will be helpful in educating our clients on why now truly may be the best time to buy.

Until next week, make it a great one,

Chris Mygatt
President and Chief Operating Officer
Coldwell Banker Residential Brokerage Colorado

Real Estate Stats 07 vs 08

Home Staging is Recommended

Home Staging will help get your home sold faster!

Top 10 Reasons to work with a Realtor

National Association of Realtors

Call your Realtor Today! Rovena Flores 303-204-7992

Ski Train to Winter Park

All Aboard...2009 COLDWELL BANKER
SKI TRAIN to Winter Park
Friday March 13, 2009

Weekly Market Watch

Is It Too Early to Call It a Trend?

Earlier this week, the National Association of Realtors reported that in December, existing home sales rose unexpectedly while inventory declined.

The national real estate organization reported, “Existing home sales – including single-family, townhomes, condominiums and co-ops – jumped 6.5 percent to a seasonally adjusted annual rate of 4.74 million units in December from a downwardly revised pace of 4.45 million units in November, but are 3.5 percent below the 4.91 million unit pace in December 2007.”

Total housing inventory at the end of December fell 11.7 percent to 3.68 million existing homes available for sale, which represents a 9.3-month supply at the current sales pace, down from a 11.2-month supply in November.

Here at home, the sales news only gets better. Earlier this week, we released our December luxury home sales release—which was picked up by countless news media outlets:
http://www.wilmington.dbusinessnews.com/shownews.php?newsid=175342&type_news=past/

http://www.dailycamera.com/news/2009/jan/26/boulder-real-estate-denver-area-luxury-home-sales/

Among the top findings in the report:

• A total of 48 properties sold for more than $1 million last month, up from 35 in November
• At the same time, the median price of million-dollar property sales fell to $1.23 million, down more than 17 percent from November and more than 8 percent from the previous year

As the report notes, over the past few months we have started to see a gradual turnaround in home sales in our region, and that’s encouraging for an ultimate rebound in the housing market. Much of the sales increase has been focused on the lower end of the market rather than the move-up and luxury housing market. We have to work through this process and it’s going to take time, but ultimately I think you’ll see every segment of the market benefiting.

So why the sudden, so drastic surge in sales? There are a few reasons:

• A lot of people who were previously priced out of the housing market can finally buy
• With interest rates under 5%, a buyer’s purchasing power is at its best in more than three decades
• After months of increasing or stable inventory, we are finally starting to see the numbers fall
• Increased consumer confidence (of late) based on the new administration
• We’re seeing a lot more investors coming into the market in addition to first time buyers

So is it too early to call it a trend? Probably. In all honestly, we still have a lot of distressed properties to move through before we can begin to see prices stabilize. At least for the foreseeable future, buyers will probably have the edge but with an 84.9 percent increase in sales year over year and inventories on the decline, we’re finally moving in the right direction. The key to all of this: buyers are ready to buy when they perceive a good value. Until then, they wait.

Now let’s take a look at this week in real estate:

• Boulder County—Our Boulder office reports that it is a bit too early to tell how 2009 will fair. 2008 ended steady from the rest of the year and January appears to look the same. It appears our Agents are busy, largely in part to the new, lower interest rates. Our Longmont office shares that lenders are reporting increased activity, both applications for new loans and refinancing. Activity is in all price ranges not just lower end homes. Floor calls are picking up and Agents are having activity on listings.
• Clear Creek County—Our Evergreen office reports increases across the board with listing inventory, sales activity and showing activity all on the rise. We had 13 new listings during the week including a six lot subdivision plus a $1.8 million spec home. We also listed a $5.2 million estate in Soda Creek. We had 52 showings plus five Agent previews during the week compared to 44 last week.
• Denver Central—Our Denver Central office reports that we are seeing multiple offers on about 10% of our listings, largely thanks to bank owned and short sale properties. We saw some spikes in showings this week, including 102 on Friday. We are seeing an increase in qualified leads which hopefully will translate to solidified deals.
• Devonshire—We have seen a huge change over the last two weeks in showings and in contracts presented and accepted. We have a house in Washington Park that went on the market last Wednesday and had three offers by Friday, with an accepted offer by Friday night.
• El Paso County—Our Colorado Springs office notes that buyer activity is on the rise. We had six contracts written this week alone. Buyers are out there and inventory as a whole is starting to decrease in the market. There are still many short sale and bank-owned properties on the market that are driving down prices, however.
• Jefferson County—Our Conifer offices notes that listing inventory, sales activity and showing activity are all on the rise. We had two listings that went into multiple offers this week and we represented a buyer in a multiple offer situation. We saw a significant number of price reductions this week as sellers begin to realize the fact that properties that are selling are extremely competitively priced.
• Larimer County—Our Fort Collins/Loveland office reported an increase in showing activity. The market, however, seems to be in a holding patter. We had an up-tick in showings but nothing that we are confident that would support a trend. We have heard that some buyers are waiting for the 4.5%, 30 year fixed to appear long enough for folks to take advantage of it.
• North Metro—No information reported this week.
• Parker—Activity is still increasing throughout our region. However, there are still several areas with significantly declining values. Wherever we have a good portion of new construction, the values have decreased between 5% and 20% (Pradera 15%, Idyll Wild 20%). The established areas are stable in value right now. Bank-owned properties are still moving quicker (priced more aggressively = more energy!) and we are seeing more success with short sales.
• Southeast Metro—We had 12 multiple offers this week alone! The office is extremely busy with showings and Agents are having some difficulty actually finding properties in the under $350,000 range. Coldwell Banker Home Loans put into process $4.5 million in loans so far this month. We have listed 51 new properties as of today and we have 75 transactions scheduled to close this month.
• Southwest Metro—Our market is doing well for January. Showings have increased each week and listings are on the rise. Buyers seem to be ready to move. Our inventory in Highlands Ranch has been low and is growing at a steady pace.

The bottom line is that while sales are on the rise, we still have many distressed sales that must work their way through the system. With Wednesday’s controversial passing of the stimulus package (with a near party-line vote), we can only hope that the administration’s plan—in what we know is unchartered territory for our country—is successful.
Read more at: http://www.washingtonpost.com/wp-dyn/content/article/2009/01/28/AR2009012800196.html?hpid=topnews/

The administration needs to move fast to stimulate a spring sales upturn and set the foundation for an economic recovery.

Until next week,

Chris Mygatt
President and Chief Operating Officer
Coldwell Banker Residential Brokerage Colorado