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GOOD NEWS for the Colorado Market… act now before it’s too late

For Colorado as a whole, prices rose by 1.82% in the past year and by 0.32% in the second quarter please see the attached article from the Denver Business Journal for more detail.

As a mortgage professional in the industry I have the opportunity to talk with all parties involved in the transaction- both buyers and sellers and Realtors. The vibe is positive out there. People are feeling good about the inventory going down and the increased number of “SOLD” signs in their neighborhoods.

As rates remain in the low 6’s for a 30 year fixed mortgage it is a wonderful time to take advantage of Real Estate in Denver. Consult your Realtor and your Mortgage Professional on how to buy with 0% down before the down payment assistance programs are no longer available.

Seller funded down payment assistance programs

will be available until September 30, 2008.

YES- we can close the loan this fast!

First-time buyers and people who have not owned a home in the past three years may get a $7,500 tax credit if they purchase a home on or after April 9, 2008 or if they purchase one before July 1, 2009.

Please feel free to contact me with any additional questions you might have.

Happy house hunting.

Rebecca’s Email

The latest results from the Case-Shiller Home price indices show that Denver is the TOP PERFORMING area of the 20 cities studied. The Denver Housing market showed a 1.5 percent gain, from May to June, to lead the way!

The Rocky Mountain News reported,

The Denver area showed a 1.5 percent gain in that period. Boston, with a 1.2 percent increase, was the only other metropolitan area to show an increase.

The average percentage change in that one-month period was a loss of 0.5 percent for all 20 cities, and a loss of 0.6 percent for 10 of them.

Denver and Boston have shown three consecutive months of positive returns.

To view the full RMN article, click here.

I saw this video, laughed out loud, and immediately though that this is what I feel like dealing with the incompetence among the countries big lenders.

Stonewalled and ran around, day after day, their actions and attitudes communicate an overwhelming aire of indifference! [Read examples from previous posts here and here ]

If you are considering the purchase of a foreclosure or short sale, please bring your patience. It will be needed, I promise!

If you are an exec at one of these mortgage companines, Please get your act together and try and make the process easier for everyone (it will become more profitable for you!)  Plus, my head hurts!

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If you are a regular subscriber to BlogHomeDenver than this is old news to you; for everyone else, The Denver Post recently published an article touching on some of the incredible deals for investment buyers in the current real estate market.  The current credit crisis and difficulties in the national real estate market are providing opportunities for investors to take advantage of the banking industries misfortunes and missteps.

The newspaper article highlights an active investor who is jumping on this market.  The take-home message for Denver investors is the spike in properties for sale under $100,000.  There are currently over 2000 properties priced under $100,000.  The majority of these are single family residences that make ideal rentals with easy cash flow in the extremely tight rental market (under 3% vacancy).  Denver investors can pick up a detached residence at the same price as a condo and rent it without the HOA fees.  The condo and townhome values have been hit the last few years.  Buyers can avoid the uncertainty of Home Owner Associations (HOA) fees rising due to depleted reserves, or delayed maintenance, or unpaid monthly fees due to foreclosed units.  The HOA is the weak link in condominium investing because it directly cuts into profits by taking a portion of the tenant paid monthly rent.

As an example, one of our investors purchased a rental this year for $65,000.  Compare this to the previous sale price of $147,000 and that is a 66% sale on income property.  It gets even better.  Let’s assume it’s a 25%, or $16,250.00, down payment since it’s an investor loan.  Let’s add on $10,000 for closing costs and immediate repairs or updating for a $26,000 total investment on an asset that is worth almost 3 times that value, at a minimum.  If we look at the previous sale price compared to the initial investment (only 17%), the asset value is over 5 times the investment cost!

This Leverage (not to mention the Tax Advantages) is the TRUE STRENGTH of Real Estate Investment!

So you have to ask yourself if you want to begin to diversify your investments with real estate now, or wait for the market to recover and the prices to begin to climb.  If you don’t want to step up all by yourself, look to form a small group of willing investors to take a first step towards building your own real estate empire.  Now is the time, Denver is the place.

photo credit: hackshaven

Excessive loans against your credit card might result in loss of your car insurance as well as putting up your homes for sale.

A good value has become a Great Value!

Check out 6180 E. Yale Ave.  This great townhome is priced to move at $284,000!  Originally priced at $324,900 this is a $41,000 savings.

The only other home on the market in the sub-division is priced at $345,000!

Click HERE to view property details and on-line presentation!

How we choose to live in our homes is our business…right? WRONG! If you are selling your home, you may have to make some lifestyle adjustments. For instance, that pool table you have in your living room might make sense to you, but, to a buyer, it can just be confusing. If you have a room with a chandelier hanging down, you should probably have it furnished as a dining room, even if you have not been using it that way.

Quite often, we have rooms in our homes that have to do double duty, or even triple duty. The room that functions as an office, guest, and exercise room, is sending a message to buyers that there are not enough rooms in your home. It is best to choose one function, and move the other items out.

I went on a staging consultation one time, and the homeowners had a bookcase in front of the fireplace. I asked them why, and they said they never used the fireplace and it was the only place the bookcase would fit. You can imagine how confounded buyers would be. A large TV placed in front of a window because that is the only spot where glare is not a problem, is fine for you and your family. But, when your home is for sale, there should be nothing in front of the windows. When buyers open your coat closet, it is best for them to see coats, not boxes of cereal or rolls of paper towel. The fax machine you keep on your kitchen counter will only raise questions as to why it is there.

Take the time to put your home in order, an order that will make sense to buyers. A little inconvenience is a small price to pay for getting your home sold quickly.

Protestors beware, the Denver Police department is ready for “Mass” arrests if needed.  I find the comments by the a few getting ready to protest funny.  If you’re so worried about the way you will be treated in custody, DON’T BREAK THE LAW!

Using personal loans for the purpose of debt consolidation is silly, especially if you have no pending mortgage or expenses like a travel insurance.

I have just added a little widget showing off the latest medal count for the Olympics.  If you’ll notice on the right hand side of the homepage, you can see the Medal Counts for the top performing teams.

Stop by often to check up on how the USA is doing!

For the record, Michael Phelps is a STUD!

The long term outlook for rates in the Denver Real Estate market, is so unstable it is tough to predict what we may be in for.  The US Dollar has strengthened lately, oil prices are coming down (which is good, but stability is more important)  I’m still worried that the price is too easily manipulated, and that it can go up, just as easy as it did for the previous few months.

Now for the mortgage market.  There is volatility, and that makes for uneasy buyer’s.  Rates have been swinging up and down lately.  So if you are in the process of getting a loan, make sure you find a comfortable point, and LOCK IN!

The good news is, RATES ARE STILL VERY GOOD!

The Federal Reserve held the line on Tuesday–leaving the Fed Funds Rate at 2.00% for the third straight meeting. The decision, however, was anything but cut-and-dry.

Earlier in the week, the Personal Consumption Expenditure data indicated that inflation climbed 0.8% overall in June, which is the highest inflation jump in 27 years. In addition, the report indicated that inflation now sits at 2.3%–above the Fed’s desired range of 1-2%.

Although the Fed ultimately left interest rates unchanged, inflation obviously remains a concern and the recent rise may lead to an interest rate hike by the Fed in the near future.

What Does This Mean to You? 
Many experts believe the housing market is nearing the bottom and may even be set to bounce back up. For now, home prices remain low, personal incomes are high, and interest rates are still very attractive.

If you have been weighing your options and waiting to see how things shake out, this is the ideal time to act–especially when we consider the new Housing and Economic Recovery Act benefits for home buyers:

Tax credits. First-time home buyers who purchase their primary residence between April 9, 2008 and July 1, 2009 are eligible for up to $7,500 in tax credit, as long as they haven’t owned a home in the last three years.

Down Payment Assistance…going, going, not gone yet. Another provision of the legislation eliminates some down payment assistance programs Oct 1, 2008…but they are still available right now. 

Bottom line…now is the ideal time to put together a home purchase strategy based on your unique situation.  Contact me if I can be of assistance.