Colorado Real Estate

Sell your For Sale By Owner (FSBO) home fast, and save $1000's in Broker Commissions

2008-03-17T13:16:00.000-07:00

Sell your For Sale By Owner (FSBO) home fast, and save $1000's in Broker Commissions
It's simple. When a seller chooses to selling a home without a real estate agent, they significantly benefit from the elimination of the seller's agent commission. Because you're not paying the traditional high cost of a selling commission, you can now afford to price your home more aggressively. The lower the price, the more likely it will sell fast. You will still walk away with thousands in savings, but you'll just be doing it faster.
The required steps to selling your property or home without an expensive real estate broker is much easier than most people think. Nevertheless, it will require some modest work on the part of the seller. You'll be doing a lot of things that a real estate agent might normally do, but you'll later discover the work to be conveniently minimal.
Your home's presentation is everything when you desire for a fast and easy selling process. Home buyers are attracted to clean, spacious and attractive homes. Your goal is to impress each and every one of the prospective buyers. You should perform some basic maintenance to ensure your home is in ideal selling condition. Some of the more important areas to check when selling your home include:
Flooring
Plumbing fixtures
Lighting fixtures Heating and ventilation systems
Doors and windows
Interior paint
Exterior paint
Outdoor drainage systems
Driveway and walkway (for cracks)
Outdoor watering systems
Roof
Home Improvements
Make reasonable cosmetic improvements to better increase your ability to sell the home.
Make the entryway to your home as inviting as possible.
Consider even planting flowers in the front yard for a memorable appearance.
Remove any items that might potentially take away a room's natural appearance.
Touch up both the kitchen and bathrooms to help increase the home's value.
Make sure the home's interior and exterior paint is in good condition.
Make sure your address numbers are clearly legible to prospective buyers driving by. Repair if needed.
Check the working condition of all electrical features such as your home's doorbell, lights, and garage door.
Price your home effectively
It's imperative to set a realistic selling price. If you want your home to sell in a fast fashion, carefully set the price fairly and you'll most likely sell faster than anticipated.
Get an appraisal of your home.
Compare and evaluate home sales prices of comparable homes in your area.
Know precisely when it's a buyer's or a seller's market.
Settle on a appropriate selling price.
Advertise/Market Your Home
Obtain the necessary purchase contract forms, and if possible have an attorney professionally review all documents.
Be willing to provide an "Open House" for prospective home buyers.
Try to pre-qualify all prospective buyers.
Carefully negotiate with all serious buyers and avoid getting emotional with offers you consider low.
Consider listing in the Real Estate Agent's multiple listing service also known as the "MLS". Get a real estate lawyer
In most areas, title companies will handle all aspects of the transaction and have in-house legal departments that can assist you with legal issues that may arise. To locate a title company check your yellow pages, or call a realtor in your area.
If you are totally inexperienced at selling real estate, having a real estate lawyer at your side provides peace-of-mind. You know you've got someone looking out for your interests, not just the buyers.
Closing
When you happily reach the point of closing all that's left with is finishing a small amount of paperwork.
Sign your escrow instructions.
Carefully choose an escrow company or lawyer to help administer the closing.
Deliver the legally required disclosure documents to the buyer.
Pass required inspections.
Receive loan commitment letter from buyer.
Obtain title report through the Escrow Company or closing real estate agent.
Make arrangements to pay off the existing mortgage(s).
Pay the closing fees.
Review tax implications.
Celebrate your home purchase!
About the Author:
JC Ferguson is licensed Real Estate Broker, and regularly contributes to bloggs. More information on For Sale By Owner real estate sales can be found at http://www.denvercoloradorealestate.us

MORTGAGE RATES INCH UP

2008-02-02T11:20:00.000-08:00

Following four consecutive weekly declines, Freddie Mac reports a jump in the 30-year fixed mortgage rate to 5.68 percent during the week ended Jan. 31 from 5.48 percent the prior week. The 15-year fixed mortgage rate rose to 5.17 percent from 4.95 percent over the same time span.Meanwhile, the five-year adjustable mortgage rate edged up to 5.32 percent from 5.13 percent; and the one-year ARM climbed to 5.05 percent from 4.99 percent. Freddie Mac chief economist Frank Nothaft attributes the recent gains to an uptick in 10-year Treasury bonds. Source: San Jose Mercury News (Calif.), Martin Crutsinger (02/01/08)

Existing Home Sales to Hold Steady in Early 2008

2008-01-17T18:15:00.000-08:00

Over the next few months, existing-home sales are expected to hold fairly steady as indicated by pending sales activity, and then rise later in the year and continue to improve in 2009, according to the latest forecast by the National Association of REALTORS®.Lawrence Yun, NAR chief economist, says there is a pull and tug exerting itself on the market. “On the one hand, we have a pent-up demand from the four million jobs added to our economy over the past two years of sales decline,” he says. “On the other, consumers continue to wait for additional signs of market stabilization. There are more people with financial capacity now than in 2005, but many are trying to market-time their purchase. As a result, the exact timing and the strength of a home sales recovery is a bit uncertain. A meaningful recovery in existing-home sales could occur as early as this spring, or it may be further delayed toward late 2008.”The Pending Home Sales Index, a forward-looking indicator based on contracts signed in November, fell 2.6 percent to a reading of 87.6 from a strong upward revision of 89.9 in October, but remains above the August and September readings and indicates a broad stabilization. The index was 19.2 percent below the November 2006 level of 108.4. “Although there could be some minor slippage in the first quarter, existing-home sales should hold in a narrow range before trending up,” Yun says.Across the RegionRegionally, the PHSI showed the following:
South: rose 2.3 percent in November to 100.7 but is 19.8 percent below a year ago.
West: slipped 2.1 percent to 86.6 but is 18.5 percent lower than November 2006.
Midwest: fell 4.1 percent in November to 82.1 and is 18.6 percent below a year ago.
Northeast: dropped 13 percent in November to 70.1 from a spike in October, and is 19.1 percent below November 2006.Existing-Home Sales ForecastExisting-home sales for 2007 will probably total 5.66 million, the fifth highest on record, then edge up to 5.7 million this year and 5.91 million in 2009, compared with 6.48 million in 2006. Existing-home prices for 2007 are likely to be down 1.9 percent to a median of $217,600, hold even this year and then rise 3.1 percent in 2009 to $224,400.“Rising home prices in the affordable midsection of the country are likely to offset declines in some of the previously hot markets,” Yun says.There are wide variations in housing market conditions around the country, with nearly two-thirds of the metropolitan areas showing price gains. Healthy increases in metro prices are occurring in places such as Pittsburgh; Beaumont-Port Arthur, Texas; San Jose, Calif.; and Bismarck, N.D.“Our consumer survey shows buyers today are in it for the long-haul, planning to stay in their home for a median of 10 years,” Yun says. “This is a wise approach to housing because the data shows the longer you own, the better your investment.”New-home sales are projected at 773,000 for 2007, and declining to 669,000 this year before rising to 730,000 in 2009. However, that is well below the 1.05 million 2006. With an appropriate slowdown in production, housing starts — including multifamily units — are forecast at 1.36 million for 2007 and 1.09 million this year before edging up to 1.1 million in 2009. Starts totaled 1.8 million in 2006. The median new-home price should drop 2.1 percent to $241,400 for 2007, and then rise 0.4 percent to $242,200 this year and gain another 5.9 percent in 2009.Call for Legislative Action“Some policy changes, such as raising the loan limit on conventional mortgages, would provide a significant boost to home sales, increase liquidity, strengthen home prices and lessen foreclosures, but it is unclear as to if and when the measure will be implemented,” Yun says. NAR strongly supports raising the Government-Sponsored Enterprise loan limit to at least $625,000 from the current $417,000 so that more consumers will have access to lower interest rates on safe conforming mortgages. “NAR estimates that raising the GSE loan limit will result in interest rates savings for an additional 330,000 home owners,” Yun adds.NAR also encourages the Fed to make a single lump-sum cut in the Fed funds rate to 3.5 percent at the January Federal Open Market Committee meeting, rather than a series of modest cuts throughout the year. “Consumers are also looking to market-time interest rates, and the expectations of further rate cuts are pushing some home buyers to delay,” Yun says. “Monetary policy will be much more effective with a one-time large cut, rather than a series of small cuts.” The 30-year fixed-rate mortgage is expected to rise slowly to the 6.3 percent range by the end of this year, but an additional cut in the Fed funds rate would lower short-term interest rates.Meanwhile, growth in the U.S. gross domestic product (GDP) is seen at 2.1 percent in 2007, below the 2.9 percent growth rate in 2006; GDP growth will probably be 2 percent this year.After averaging 4.6 percent for both 2006 and 2007, the unemployment rate is estimated to rise to 5.3 percent in the second half of 2008. Inflation, as measured by the Consumer Price Index, is projected at 2.9 percent for 2007 and 3.1 percent this year; it was 3.2 percent in 2006. Inflation-adjusted disposable personal income is forecast to grow 3.1 percent for 2007, the same as in 2006, and then grow 1.6 percent this year.— REALTOR® Magazine Online

10 Most Expensive Cities for Renters

2008-01-11T10:51:00.000-08:00

It’s good news for landlords that mortgage applications fell to their lowest level in a year last month because people have to live somewhere and if they can’t or won’t buy, they’ll have to rent.Here are the nation’s 10-most-expensive cities for renters and the average rents. The data is provided by Marcus & Millichap.
New York, N.Y.: $2,922
San Francisco: $1,904
Boston: $1,658
San Jose, Calif.: $1,612
Los Angeles: $1,452
San Diego: $1,304
Washington, D.C.: $1,302
Miami: $1,080
Philadelphia: $1,014
Chicago: $1,010

LESSONS FOR BOOMERS FROM TODAY'S RETIREES

2007-12-20T06:54:00.000-08:00

https://www.oppenheimerfunds.com/digitalAssets/2064ce9cd6c1c010VgnVCM100000e82311ac____-0.pdf by OppenheimerFunds

WHAT IS YOUR FINANCIAL CONDITION POLL

2007-12-18T22:28:00.000-08:00

Take my financial condition poll -- http://htmlgear.tripod.com/poll/control.poll?u=jfergie01&i=1&a=render

The Rule of Unintended Consequences

2007-12-06T08:44:00.000-08:00

The Rule of Unintended Consequences...the natural result of
medaling in the free markets? As I start this, the White House
plan to freeze rates on some subprime mtgs for up to 5yrs will
be announced in about 30min. There will also be hearings today
on providing a litigation safeharbor for servicers that modify
loan terms. The implications are mind boggling...but we won't
know the real impact for a while. This a.m. mtg delinquencies
rose to a 20-yr high (and we haven't even gotten to the wave of
'08 mtg resets yet). WSJ story points out that auto loan
delinquencies are spiking higher too. The ripple effect
continues to expand. Meanwhile the BOE cut their benchmark rate,
joining Canada. The ECB chose to maintain a hawkish stance. USTs
are under some pressure, 10s - 3/16@ 3.98%Init Claims -15k/338k
Ronald New
Vice President
Stifel Nicolaus

HOMELESS RATE AMONG VETS 'UNACCEPTABLE' SAYS NAR

2007-11-10T13:32:00.000-08:00

NAR Says Military veterans represent more than 25 percent of the U.S. homeless population, although they comprise only 11 percent of the civilian adult population, according to the Homelessness Research Institute. The NATIONAL ASSOCIATION OF REALTORS® is seeking to do something to end this problem, donating money and time to help find housing for veterans. NAR on Friday is sponsoring the inaugural U.S. Veterans Day Golf Tournament in Washington, D.C., where there are an estimated 2,500 homeless veterans. All proceeds will benefit U.S. VETS–D.C., a unique residential community offering permanent housing and other supportive services for homeless veterans. Then on Monday, Nov. 12, during the 2007 REALTORS® Conference & Expo in Las Vegas, NAR leaders will visit the U.S. VETS facility to make a donation that will help house and educate homeless vets in the Las Vegas area. More than 5,000 veterans are homeless in Clark County, according to the U.S. Department of Veterans Affairs.“The homelessness rate among our veterans is unacceptable to REALTORS®, who believe in building safe, healthy communities,” says NAR President Pat V. Combs. “As the leading advocate for housing issues, NAR is proud to help in this important effort to end homelessness among our country’s veterans. Many of our members are veterans and active service personnel who know firsthand the struggles and sacrifices faced by those who have fought to protect our safety and freedom.”NAR supports of the VA Home Loan program and advocates revising the G.I. bill to make homeownership more attainable for vets, Combs said.“Thanks to NAR’s support, we can do more to give veterans in need the tools to rebuild their lives and realize their dreams,” said Stephanie Buckley, U.S. VETS regional director. “We are so appreciative of NAR’s contribution and efforts.”— REALTOR® Magazine Online

HOMELESS RATE AMONG VETS 'UNACCEPTABLE' SAYS NAR

2007-11-10T13:30:00.000-08:00

Fed Cuts Rate a Quarter Point, Banks Respond

2007-11-03T11:08:00.000-07:00

The Federal Reserve cut the federal funds rate by one-quarter percentage point to 4.5 percent Wednesday.In response, commercial banks, including Bank of America, Wells Fargo, and KeyCorp., announced that they were cutting their prime lending rate — for certain credit cards, home equity lines of credit, and other loans — by a corresponding amount, to 7.5 percent.The decline in these rates generally also pushes down first mortgage and refinance rates.The Fed policymakers supporting Wednesday's rate cut said the action was needed to "forestall some of the adverse effects on the broader economy" that might arise from the housing and credit troubles that have wreaked havoc on Wall Street over the past few months.But Fed policymakers said the current and the previous rate cut in September should be enough to “roughly balance” the risk to the economy from inflation.Most economists are taking that statement to mean that the Fed probably will leave the funds rate alone when it next meets on Dec. 11, the last session of the year.Source: The Associated Press, Jeannine Aversa (11/31/07)

Top 10 Best Rural Counties to Live

2007-10-19T18:50:00.000-07:00

Where's the best rural place to live? Progressive Farmer magazine, in partnership with the real estate research firm OnBoard, has compiled a top-10 list of desirable rural counties. The list takes into account several criteria, including home and land prices, crime rates, air quality, education, access to health care, and average household income. Before making these picks, the magazine's editors traveled to the top contenders and interviewed the residents and get the lay of the land. Here are their final selections:
Barren County, Ky.
Warren County, Pa.
Randolph County, Ill.
Gillespie County, Texas
Union County, S.D.
St. Lawrence County, N.Y.
Sac County, Iowa
Garfield County, Okla.
Amador County, Calif.
Polk County, N.C.Source: Progressive Farmer (October 2007)

Forclosures Drop in September, Still up 99% for Year

2007-10-13T10:55:00.000-07:00

Foreclosures were down 8 percent in September compared with August when they hit a 32-month peak. However, foreclosures are still up 99 percent compared to September a year ago.There were 223,538 foreclosures in September — or one in every 557 households. California, Florida, and Nevada led the nation, according to RealtyTrac, an online market for foreclosure properties. Other states with foreclosure rates ranking among the nation's 10 highest were Michigan, Arizona, Georgia, Ohio, Colorado, Texas, and Indiana.In 39 states, foreclosures fell in September. "It's too early to tell if September's numbers represent a one-month lull or if they could signify that more buyers and investors are getting back in the market and snatching up discounted foreclosure properties," says James Saccacio, RealtyTrac's chief executive officer, in a statement.Foreclosure rates fell in Texas and Michigan, but both states still reported more than 14,000 foreclosure filings for the month. Georgia reported 11,926 foreclosure filings, down 14 percent from the previous month, but still the sixth highest state total.Illinois, which was No. 11 in total filings, was the only state to see an increase in foreclosures in September versus August.Source: Reuters News, Al Yoon, and RealTrac (10/11/07)

Mortgages for Illegal Immigrants Grow in Popularity

2007-10-13T09:33:00.000-07:00

Mortgages for Illegal Immigrants Grow in PopularityWhile the subprime market has taken a hit in recent months, lenders continue to report success with ITIN mortgages, or home loans given to illegal immigrants who use individual taxpayer identification numbers instead of Social Security numbers. Lenders say these borrowers are evaluated using different criteria than traditional borrowers — such as whether they have paid taxes for at least two years and made timely utility, rent, and cell phone bill payments. The amount of money sent to relatives in their homeland and their running tabs at local grocery stores also are assessed. The number of banks writing such loans has expanded since the Hispanic National Mortgage Association began purchasing the loans and bundling them into securities for sale to investors. Banks report a less than 1 percent delinquency rate for ITIN mortgages, but there are concerns that rising borrowing costs and a possible crackdown on illegal workers by the federal government will make it difficult for them to keep up with their monthly payments. Source: The Wall Street Journal, Miriam Jordan (10/09/07)

House Votes to Eliminate 'Phantom Tax'

2007-10-06T10:14:00.000-07:00

The U.S. House of Representatives voted on Thursday to get rid of a tax burden for home owners who have had a loan forgiven or foreclosed on their home because they were unable to make their mortgage payments. The Mortgage Cancellation Tax Relief Act, H.R. 3648, passed by a vote of 386 to 27. Similar legislation is making its way through the Senate.Since the early 1990s, NAR has supported such measures to eliminate the "phantom tax" on financially-strapped home owners. “Congress made a good decision that will affect many Americans who find themselves in a truly bad situation,” says NAR President Pat V. Combs. “Changing the IRS code is an issue of fundamental fairness. It would relieve a tax burden at a time when an individual or family has experienced a true economic loss arising from the sale or loss of their home. These families are already in financial distress and are most likely unable to pay additional taxes.” The current tax code requires a lender who forgives debt to provide a Form 1099 to the IRS stating the amount the borrower has been forgiven. This disclosure applies whether it is a short sale, foreclosure, deed in lieu of foreclosure or any similar arrangement that relieves the borrower of the obligation to pay some portion of their debt. If the property is sold at foreclosure or is sold for less than was borrowed, that difference is considered income and is subject to the tax.H.R. 3648 would ensure that any amount forgiven on mortgage debt secured by a principal residence will not be taxed. The legislation has a provision to safeguard against abuses. That provision is similar to one that already exists for commercial real estate owners and would treat commercial and residential property equally. "This is not only about the subprime turmoil we are currently experiencing," Combs says. "This is also about families who have lost their home or a need to sell that home for less than the amount owed on their home mortgage because of job loss, divorce, health issues, a decrease in the value of the home or other unfortunate circumstances. Clearly it is unfair to tax people on phantom income when they most likely have no cash with which to pay the tax."In other news, another bill has been sent to the House Judiciary Committee that would revise the bankruptcy code to allow judges to order mortgage lenders to ease terms for home owners in bankruptcy proceedings. Currently, mortgage lenders can foreclose against a home owner in default 90 days after the filing of bankruptcy.— REALTOR® Magazine Online

Healthy Outlook Continues for Commercial Real Estate

2007-09-21T19:00:00.000-07:00

Most commercial real estate markets are enjoying relatively low vacancy rates and healthy rent growth from a fundamentally sound economy, according to the latest Commercial Real Estate Outlook of the NATIONAL ASSOCIATION OF REALTORS®. “Commercial real estate responds to economic growth and job creation, which have been fairly strong over the past two years and have created the need for additional commercial space,” says NAR Senior Economist Lawrence Yun. “These fundamentals will continue to support commercial real estate markets in 2008. There has not been much overbuilding in the commercial sectors, and investors are more diverse.”Commercial Sector Hits Record HighsYun says pricing for some commercial real estate has been at a record high, and capitalization rates have been at historic lows. “Normalization of prices may be occurring, but it isn’t clear what the definition of normal might be in the current market given the repricing of risk in the capital market,” he notes. “In short, the difference between the cash flow on a typical property and its price is close to a maximum, indicating prices may even out.”A record $257 billion was invested in commercial real estate in the first seven months of 2007, up from $146.7 billion in same period in 2006 — that total does not include transactions valued at less than $5 million, or of investments in the hospitality sector.NAR ForecastCindy Chandler of Charlotte, N.C., chair of the REALTORS® Commercial Alliance, says there have been some problems recently regarding the availability of capital. “Overreaction to credit concerns in the financial markets could limit the availability of capital needed by private investors, but overall the situation does not appear to have significantly impacted institutional-grade commercial properties,” she says. “We're returning to the fundamentals and deal structuring of the mid '90s, and may see some dampening in investment activity, but there is a lot of momentum in commercial real estate. Chandler predicts the commercial sectors to hold at a healthy level of activity in most of the nation. “Although there could be some slowing as a result of postponed transactions and delays in decision making,” she says.The following is NAR's forecast for the four major commercial sectors, based on analyses of quarterly data for various tracked metro areas provided by Torto Wheaton Research and Real Capital Analytics.Office MarketThe office sector is the most favored by investors, with strong rent growth this year. The cost of steel and other factors have helped minimize speculative construction in most markets. The demand for space is expected to remain strong into 2008, and areas with strong job growth are benefiting the most. Older vacated space is lagging on the market in some cities. Here are some additional projections for the office market:
Vacancy rate: expected to edge up to an average of 12.9 percent in the fourth quarter from 12.5 percent in the fourth quarter of 2006, and then dip to 12.4 percent by the end of 2008. Projections for the third quarter show areas with the lowest office vacancies include New York City; Ventura County, Calif.; Seattle; Los Angeles; Honolulu; and Long Island, N.Y., all with vacancy rates of 9.4 percent or less.
Annual rent growth: forecast at 6.1 percent in 2007 and 3.1 percent next year, after rising 5.2 percent in 2006.
Net absorption of office space: 53.8 million square feet this year and 65.1 million in 2008, compared with 78 million last year. This projection is based on 57 markets and includes the leasing of new space coming on the market as well as space in existing properties.
Office building transaction volume in the first seven months of 2007: $147 billion, a record for the period, which is 53 percent higher than the same period in 2006. Equity funds accounted for 43 percent of office building purchases, followed by private investors at 21 percent.Industrial Market Although the main driver for the industrial market continues to be the need for warehouse and distribution space, particularly in ports and distribution hubs, the rebirth of the technology sector is fueling demand for flex space. A marked increase has occurred in markets such as San Jose, Calif.; Portland, Ore.; Seattle; and Phoenix.Much of the new industrial supply has been on a build-to-suit basis, and building obsolescence remains a factor for distribution facilities. With tightening availability in many primary markets, users are starting to show greater interest in secondary markets. Here are some more forecasts for the industrial market in the coming year:
Vacancy rates: likely to average 9.6 percent in the fourth quarter and 9.4 percent by the end of 2008, compared with 9.4 percent in the fourth quarter of 2006. The areas with the lowest industrial vacancies include Los Angeles; Albuquerque; Tucson; Orange County, Calif.; Portland, Ore.; and San Francisco, all with vacancy rates of 5.4 percent or less.
Annual rent growth: expected to more than double to 3.9 percent by the end of this year, and is estimated at 3.7 percent in the fourth quarter of 2008 — up from a 1.4 percent annual rise at the end of last year.
Net absorption of industrial space: (based on 58 markets tracked) will probably total 125 million square feet in 2007 and 165.6 million next year, down from 202.8 million in 2006.
Industrial transaction volume in the first seven months of 2007: $26.8 billion, up 13 percent from the same period in 2006. Private investors accounted for 36 percent of industrial purchases, followed by equity funds at 25 percent.Retail MarketRecovery in the retail market has been held back by high levels of new supply, but developers appear to have gotten the message. The majority of new space on the market today is in nonregional malls, but new available space should see marked declines in 2008. Credit problems have not yet impacted retail sales, but will be watched closely. NAR also made the following predictions for the retail market:
Vacancy rates: projected to rise to 9.3 percent in the fourth quarter from 8.1 percent at the end of 2006; vacancies are forecast at 8.9 percent by the end of next year. Retail markets with the lowest vacancies include San Francisco; Orange County, Calif.; San Jose, Calif.; Ventura County, Calif.; Washington, D.C.; and Las Vegas, all with vacancy rates of 5.1 percent or less.
Average retail rent: expected to rise 2.9 percent in 2007 and 1 percent next year, following a 3.9 percent increase in 2006.
Net absorption of retail space: (based on 53 tracked markets) 12.1 million square feet this year and 19 million in 2008, up from 10.7 million last year.
Retail transaction volume in the first seven months of 2007: $37.4 billion, up from $22.3 billion in same period in 2006. Private investors accounted for 35 percent of transaction volume, followed by institutional investors at 22 percent and foreign investors, 18 percent.Multifamily MarketThe apartment rental market — multifamily housing — anecdotally appears to be impacted by an influx of single-family homes being offered for rent, cutting into the demand for apartment rentals. In addition, condos are being converted into rental units, particularly in markets such as Washington, D.C., and several areas of Florida.At the same time, potential first-time home buyers are hesitant and staying in the rental market, supporting multifamily fundamentals until the lure of homeownership returns, the housing cycle changes, and more buyers enter the housing market. Other projections for the multifamily market include:
Vacancy rates: expected to average 5.9 percent in the fourth quarter, the same as the fourth quarter of 2006, and then ease to 5.6 percent by the end of next year. The areas with the lowest apartment vacancies include Northern New Jersey, Salt Lake City, Philadelphia, Pittsburgh, Los Angeles, Minneapolis, and Nashville, all with vacancy rates of 2.7 percent or less.
Average rent: projected to increase 2.9 percent this year and 3.8 percent in 2008, after a 4.1 percent rise last year.
Multifamily net absorption: expected to total 209,200 units in 59 tracked metro areas this year, down from 229,400 in 2006, but increase to 234,400 in 2008.
Multifamily transactions in the first seven months of 2007: $46.3 billion, compared with $41.5 billion in the same period in 2006. Half of the purchases were by private investors, while condo converters accounted for only three percent of acquisitions.— REALTOR® Magazine Online

How to Deal with Prospects Reluctant to Buy

2007-09-21T18:49:00.000-07:00

New real estate agents must understand that just 5 percent to 10 percent of prospects are ready to buy or sell right now, but it's still important for them to remain in contact with those who are thinking about moving but don't plan to within the next 90 days. But how do you know who will eventually buy and who may hold off on buying for years? To narrow down prospects to those most likely to use your services down the road, first ensure they are in their target market — whether first-time buyers, empty nesters, or those interested in downtown lifestyles or condominiums. Then, determine which prospects are considering a move due to job relocation, having children, or family downsizing. Understand that those with such reasons to move are most likely to proceed with their plans. So you can keep in touch with these buyers, ask permission to send them an electronic newsletter with information about home buying and selling; send holiday cards for the major holidays as well as St. Patrick's Day, Labor Day, and other less popular holidays; and make phone calls to inquire about their moving timelines. Source: Realty Times, Brian Hilliard (09/20/07)

FAQs on the Subprime Market

2007-08-23T17:12:00.000-07:00

You may have followed recent media coverage of the problems impacting the subprime sector of the mortgage market. Below is a basic overview of the issue and answers to frequently asked questions.
The Basics:
Subprime Mortgages are mortgages that have been made to homeowners with poor credit histories. These borrowers may be more likely to default on their loans than other homeowners since they already had financial problems before taking on their mortgages. After a subprime mortgage has been issued, the issuing bank often sells that loan to investors. Because subprime mortgages are higher risk, they typically pay higher yields to lenders (investors) in return for assuming that additional risk. Attracted by the higher yields, many mutual funds and hedge funds have invested in these loans often through CDOs (see below) or similar structures.
Collateralized Debt Obligations (CDOs) are structured products that pool multiple debt securities together, such as mortgages or bonds, and then issue debt collateralized by the pool. The debt issued by the CDO will vary by risk and credit rating. Investors in CDO debt can decide to purchase higher rated, less risky debt or lower rated, riskier debt.
The structure of the CDO may allow a pool of relatively low rated mortgages or bonds to produce higher rated debt. There are two primary ways this can occur: 1. The structure may require that higher rated debt has first call on incoming cash flows. Lower rated debt gets paid only after the higher rated portions are completely paid off. This means that almost all of the debt would have to default before investors in the high rated debt would take losses.2. CDOs are typically constructed so that the debt securities that they hold as collateral, such as bonds and mortgages, have low correlations to each other. This is designed to reduce the overall risk of the portfolio.
FAQs
What's the current situation?
Over the last 6 months many subprime mortgages have become delinquent as homeowners have run into financial difficulty. This has hurt hedge funds and others that have invested in these mortgages.
How does this activity impact the markets?
Higher defaults in the subprime part of the mortgage market may cause investors in other parts of the mortgage markets to demand higher risk premiums, which could drive down the prices of investment grade mortgages and bonds.
However, it is unlikely that defaults will actually rise in other parts of the mortgage market since credit-worthy borrowers should be able to service their loans as long as the economy remains strong and unemployment remains low. Higher defaults are likely to be limited to those who had financial weaknesses before they took out their mortgage. Therefore, it appears that investors in higher rated mortgages or CDOs have little cause for worry with regard to the current status of the subprime market.

Price Trends Improve, Existing-Home Sales Lag

2007-08-17T17:28:00.000-07:00

During the second quarter, home prices improved in the majority of U.S. metro areas, but sales activity remained below year-ago levels in most states, according to research by the NATIONAL ASSOCIATION OF REALTORS®.Price increases were apparent in 97 of the 149 metropolitan statistical areas surveyed by NAR. That compares with just 83 metro areas that had price increases in the first quarter of 2007, and 68 areas in the fourth quarter of 2006.“Although home prices are relatively flat, more metro areas are showing price gains since bottoming-out in the fourth quarter of 2006,” says Lawrence Yun, NAR senior economist. “Recent mortgage disruptions will hold back sales temporarily, but the fundamental momentum clearly suggests stabilizing price trends in many local markets.”The national median existing single-family home price was $223,800 in the second quarter, down 1.5 percent from the year-earlier period, when the median price was $227,100. The median is a typical market price where half of the homes sold for more and half sold for less, but there has been a downward skew in the national comparison because sales have declined in many high-cost areas and risen in some lower cost markets.NAR President Pat V. Combs says homes continue to be good investments, especially since typical owners stay in their home for six years. “While local conditions vary greatly, a typical owner who bought six years ago is seeing a 45 percent increase in the value of their home,” she says. An analysis of all available data over the past six years shows almost every market experienced price gains from the second quarter of 2001 to the second quarter of this year.Sales Pace Down 11% Nationally Total state existing-home sales, including single-family and condo, were at a seasonally adjusted annual rate of 5.91 million units in the second quarter, down 10.8 percent from a 6.63 million-unit pace in the second quarter of 2006. Six states showed increases in the sales pace from a year ago; one was unchanged and complete data for two states were not available.According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage was 6.37 percent in the second quarter, up from 6.22 percent in the first quarter; the rate was 6.6 percent in the second quarter of 2006.Most, Least Affordable Areas in the U.S.During the second quarter, median single-family home prices ranged from a very affordable $71,700 in Elmira, N.Y., to 12 times that amount in the San Jose-Sunnyvale-Santa Clara area of California, where the median price was $865,000. The second most expensive area was San Francisco-Oakland-Fremont, at $846,800, followed by the Anaheim-Santa Ana-Irvine area (Orange County, Calif.), at $727,000. In addition to Elmira, other affordable markets include the Youngstown-Warren-Boardman area of Ohio and Pennsylvania, at $76,700, and the Saginaw-Saginaw Township North area of Michigan, with a second-quarter median price of $86,900. The biggest price gains were found in the Salt Lake City area, where the median price of $233,100 rose 21.9 percent from a year ago. Next was Binghamton, N.Y., at $111,200, up 19.8 percent from the second quarter of 2006, followed by Salem, Ore., where the second quarter median price rose 16.7 percent to $227,900. Most of the metros with price declines were modest, although four areas experienced double-digit drops.The best total sales performance was in Wyoming, where existing-home sales rose 10.8 percent from the second quarter of 2006. In Iowa, the second-quarter sales pace rose 4.1 percent from a year ago, while North Dakota experienced the third strongest gain, up 2.9 percent. Oklahoma, Indiana, and Nebraska also posted annual sales gains.A Closer Look at Regional Sales, Price DataNortheast: Existing-home sales fell 6.8 percent to an annual pace of 1.05 million units in the second quarter from the same period a year ago. The median existing single-family home price rose 0.7 percent to $298,000 in the second quarter from the same period 2006.After Binghamton, N.Y., the strongest price increase in the Northeast was in the Allentown-Bethlehem-Easton area of Pennsylvania and New Jersey, with a median price of $274,500, up 12.8 percent from the second quarter of last year, followed by the Reading, Penn., area, at $157,800, up 11.2 percent, and Glenn Falls, N.Y., which rose 10.7 percent to $175,500.Midwest: Existing-home sales dropped 8.4 percent to a 1.39 million-unit annual level in the second quarter compared with a year ago. The median existing single-family home price was $163,500, down 2.2 percent from the second quarter of 2006. The strongest metro price increase in the Midwest was Bismarck, N.D., area where the median price of $151,400 was 9.2 percent higher than a year ago. Next was Gary-Hammond, Ind., at $137,800, up 7.3 percent from the second quarter of 2006, and Bloomington-Normal, Ill., at $161,500, up 7 percent.South: Existing-home sales in the South were at an annual rate of 2.31 million units in the second quarter, down 10.7 percent from the second quarter of 2006. The median existing single-family home price was $185,000 in the second quarter, which is 1.6 percent below a year earlier. The strongest price increase in the South was in the Beaumont-Port Arthur area of Texas, at $127,700, up 11.8 percent from a year ago, followed by the Cumberland area of Maryland and West Virginia, with a 9.3 percent gain to $109,300, and Raleigh-Cary, N.C., at $225,100, up 8.4 percent.West: The existing-home sales pace of 1.16 million units was down16.9 percent from the second quarter of 2006. The median existing single-family home price was $349,400 in the second quarter, down 0.4 percent from a year ago.After Salt Lake City and Salem, the strongest metro price increase in the West was in Farmington, N.M., at $201,900, up 14.0 percent from a year ago, followed by the Spokane, Wash., area, at $197,700, up 10.4 percent from the second quarter of 2006.What’s Happening With Condos?In the condo sector, metro area condominium and cooperative prices – covering changes in 55 metro areas – show the national median existing condo price was $226,800 in the second quarter, up 1 percent from $224,500 in the second quarter of 2006. Thirty-seven metros showed annual increases in the median condo price, including seven areas with double-digit gains; one was unchanged and 17 areas had price declines.The strongest condo price gains were in the Salt Lake City area, where the second quarter price of $162,200 rose 25.2 percent from a year earlier, followed by Reno-Sparks, Nev., at $220,500, up 17 percent, and the Austin-Round Rock area of Texas, where the median condo price of $172,100 rose 14.9 percent from the second quarter of 2006.Metro area median existing-condo prices in the second quarter ranged from $116,400 in Greensboro-High Point, N.C., to $608,700 in the San Francisco-Oakland-Fremont area. The second most expensive condo market reported was Los Angeles-Long Beach-Santa Ana, at $413,400, followed by the San Diego-Carlsbad-San Marcos area at $368,600. Other affordable condo markets include Wichita, Kan., at $117,900 in the second quarter, and Rochester, N.Y., at $118,900.— REALTOR® Magazine Online

TOOLS FOR CONSUMERS FACING FORECLOSURE

2007-08-09T11:58:00.000-07:00

Go online to check out the latest NAR consumer mortgage education brochure--"Learn How to Avoid Foreclosure and Keep Your Home." The brochure alerts consumers that they can call a nationwide, toll-free assistance number--888-995-HOPE--to speak with a counselor, day or night, to help them get back on track financially. For more information visit --

http://www.realtor.org/subprime_lending.nsf/pages/subprime_lending?OpenDocument&WT.mc_t=LS080807&WT.mc_n=Curr

brought to you by JC @ http://www.denvercoloradorealestate.us/

Racing Fans, Start Your Engines and Head to Daytona!

2007-08-09T11:29:00.000-07:00

International Speedway Corporation recently entered into a 50/50 joint venture
with one of the largest developers in the country, Cordish, "to explore a mixed-use entertainment destination development to be named Daytona Live! on the 71 acres ISC owns across from the Daytona International Speedway."
Preliminary designs for the 200,000-square-foot mixed-use entertainment project include a 2,500-seat multi-screen movie theatre, retail, dining, as well as a 160-room hotel and a residential component. According to an ISC spokesperson, the company saw "a strong opportunity to solve office space issues and leverage the unique assets with the Daytona USA museum and speedway across the street."

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Cooling Housing Activity Keeps Long-term Yields Low

2006-09-26T14:33:00.000-07:00

Title:
Cooling Housing Activity Keeps Long-term Yields Low
Source:-->
Date:
8/28/2006
Overview:
This week's economic data provided further evidence of a cooling of the housing market and the economy. Existing home sales declined for the fifth time this year to a seasonally-adjusted annualized rate (SAAR) of 6.33 million -- the slowest pace since January 2004. New home sales declined in July for the second consecutive month to 1.07 million (SAAR). Year-to-date total home sales (new plus existing) through July were 7.4 percent below levels in the first seven months of 2005. The decline in the new home market has been more pronounced than that for the existing home market, with year-to-date sales down by 14.3 percent, compared with a 6.0 percent decline for existing home sales.
Inventories for all types of homes continue to build up, especially for existing homes. The months' supply (inventory-sales ratio) for single-family homes rose to 7.2 months -- the highest level since May 1993. For new homes, the months' supply was the highest since November 1995 at 6.5 months.
Sharply rising unsold home inventories are putting an increasing downward pressure on home prices. The median price for new homes increased 0.4 percent in July from a year ago, compared with a 1.5 percent increase for single-family existing homes. Median prices for condo properties declined on a year-over-year basis for the third time in the past four months.
Leading indicators suggest a further slowdown in home sales. The Purchase Index in the Mortgage Bankers Association weekly survey of mortgage applications declined in five of the past six weeks. The average monthly index fell below 400 in July for the first time since October 2003. It has remained below that level over the past six weeks.
Housing and Mortgage Indicators:
Existing home sales decreased 4.1 percent in July to a seasonally-adjusted annualized rate of 6.33 million. Single-family home sales decreased 5.0 percent while condo sales increased 2.8 percent.
From a year ago, existing home sales declined 11.2 percent. The inventory of single-family homes escalated sharply in July, increasing 40.4 percent from last July to 3.3 million units. Condo inventory rose to 556,000 units -- a 36.9 percent increase from a year ago.
New homes sales decreased 4.3 percent in July to a seasonally-adjusted annualized pace of 1.07 million. Sales decreased 21.6 percent from last July. The number of homes available for sale increased to a record to 568,000 units -- a 22.4 percent increase from last July.
The Mortgage Bankers Association Weekly Survey of Mortgage Applications for the week ending August 19 showed that mortgage demand was little changed, with the Market Index increasing 0.1 percent to 561.5. The increase was due to refinance activity, which increased 1.3 percent -- the fifth consecutive increase.
The 30-year fixed mortgage rate decreased 15 basis points to 6.38 percent, while the 1-year adjustable rate decreased 6 basis points to 5.91 percent. The spread between fixed and adjustable mortgage rates narrowed 10 basis points to 57 basis points. The ARM share of mortgage applications was 26.4 percent of the number and 39.6 percent of the dollar volume of new applications -- declining by 0.8 and 1.6 percentage points, respectively, from the previous week.
Economic Indicators:
Durable goods orders fell 2.4 percent in July, following an increase of 3.5 percent in June. The weakness was concentrated in both autos and civilian aircraft orders. Nondefense capital goods excluding aircraft orders -- a proxy for business investment -- posted a solid 1.5 percent, the second straight month of acceleration. This suggests that, as residential investment declines, business investment will remain a positive contributor to economic growth through the rest of the year.
Interest Rate Outlook:
The combination of signs of slowing economic growth and moderating inflation has brought the Treasury yields steadily down over the past two weeks. The financial market has significantly reduced its expectation for another Fed's rate hike next month. The yield on the 10-year Treasury note was around 4.80 percent by mid Friday afternoon -- 4 basis points lower than the rate on the previous Friday.
Next Week:
Next week is a busy week for economic calendar, with releases of major economic indicators for August, including the employment report and the Institute of Supply Management (ISM) manufacturing survey (both on Friday). The Fed's favored measure of inflation -- the core personal consumption expenditure -- for July will also be available. Finally, the Fed will release the minutes from the Federal Open Market Committee (FOMC) August 8 meeting. Past releases of the minutes had significant market-moving effects.
Tuesday - The Conference Board Consumer Conference for August and Federal Open Market Committee minutes from August 8 meeting;Wednesday - The preliminary estimate for the second quarter gross domestic product;Thursday - Personal income and personal consumption for July and July factory orders;Friday - July employment report; the final estimate of the July University of Michigan Consumer Sentiment; July construction spending; the Institute of Supply Management (ISM) manufacturing survey for August.
Orawin VelzDirector, Economic ForecastingAugust 25, 2006
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RESIDENTIAL MORTGAGE FORECLOSURES DOWN AND DELINQUENCIES UP SLIGHTLY, ACCORDING TO MBA NATIONAL DELINQUENCY SURVEY

2006-09-26T14:23:00.000-07:00

Washington, D.C. (September 15, 2005) — The second-quarter 2005 National Delinquency Survey (NDS), released today by the Mortgage Bankers Association (MBA), shows that the percentage of loans in the foreclosure process was 1.00 percent at the end of the second quarter, a drop of 18 basis points from the previous year and a drop of 8 basis points from the first quarter of 2005. The seasonally adjusted (SA) rate of loans entering the foreclosure process was 0.39 percent in the second quarter, down 1 basis point from the previous year and down 3 basis points from the first quarter of 2005.
The SA delinquency rate for mortgage loans on one-to-four-unit residential properties stood at 4.34 percent at the end of the second quarter, down 22 basis points from the second quarter of 2004 but up 3 basis points from the first quarter of 2005. This quarter's NDS results cover approximately 39.9 million loans (29.7 million prime loans, 5.3 million subprime loans, and 4.9 million government loans).
“The U.S. economy grew at almost 3.3 percent in annualized real terms during the second quarter of 2005, adding 205,000 payroll jobs per month. Combined with the low interest rate environment, consumers improved their household finances and the percentage of homeowners making their mortgage payments on time increased to nearly 96 percent,” said Doug Duncan, MBA's chief economist and senior vice president. “We expect an uptick in delinquency rates over the next few quarters in the states impacted by Hurricane Katrina, especially Louisiana and Mississippi. The first effects of Katrina on delinquencies should be seen in the 30 to 59 days delinquent category reported in the third quarter, with more complete impacts reflected in the fourth quarter numbers. In addition, higher energy costs may exacerbate delinquency rates starting in the fourth quarter“.
The SA delinquencies for adjustable rate (ARM) and fixed rate (FRM) products are generally down from last year and last quarter. Over the year, the SA delinquency rate for prime ARM products is down 7 basis points (from 2.26 percent to 2.19 percent), while the percentage among prime FRM products decreased 9 basis points (from 2.11 percent to 2.02 percent). Since the second quarter of 2004, the SA delinquency rate for subprime ARM products has decreased 8 basis points (from 10.12 percent to 10.04 percent), while the rate for subprime FRM products dropped 72 basis points (from 9.78 percent to 9.06 percent).
Since last quarter, the SA delinquency rate for prime ARM loans increased 13 basis points (from 2.06 percent to 2.19 percent), whereas the rate for prime FRM products remained unchanged at 2.02 percent. Compared with first quarter of 2005, the SA delinquency percentage among subprime ARM products decreased 21 basis points (from 10.25 percent to 10.04 percent), while the rate for subprime FRM loans decreased 4 basis points (from 9.10 percent to 9.06 percent).
Since the second quarter of 2004, the SA delinquency rate decreased 20 basis points for prime loans (from 2.40 percent to 2.20 percent), 14 basis points for subprime loans (from 10.47 percent to 10.33 percent), 17 basis points for FHA loans (from 12.54 percent to 12.37 percent) and 66 basis points for VA loans (from 7.57 percent to 6.91 percent). Since first quarter of 2005, the SA delinquency rate decreased 29 basis points for subprime loans and 25 basis points for VA loans, whereas the rate increased 3 basis points for prime loans and 64 basis points for FHA loans.
The foreclosure inventory percentage decreased for all loan types over the year: 7 basis points for prime loans (from 0.49 percent to 0.42 percent), 111 basis points for subprime loans (from 4.40 percent to 3.29 percent), 30 basis points for FHA loans (from 2.59 percent to 2.29 percent) and 20 basis points for VA loans (from 1.45 percent to 1.25 percent). In addition, the foreclosure inventory percentage declined from last quarter among all loan types: 4 basis points for prime loans, 20 basis points for subprime loans, 27 basis points for FHA loans, and 13 basis points for VA loans.
Over the last year, the SA percentage of new foreclosures was down 1 basis point for prime loans (from 0.19 percent to 0.18 percent), 19 basis points for FHA loans (from 0.95 percent to 0.76 percent), and 11 basis points for VA loans (from 0.50 percent to 0.39 percent), while increasing 8 basis points among subprime loans (from 1.18 percent to 1.26 percent). Since the last quarter, the percent of new foreclosures decreased 28 basis points for subprime loans, 10 basis points for FHA loans, and 1 basis point for VA loans, while remaining unchanged for prime loans (0.18 percent).
The seriously delinquent rate, defined as the non-seasonally adjusted percentage of loans that are 90 days or more delinquent or in the process of foreclosure, was down from last year and last quarter. This additional measure conforms with a number of standard definitions and is designed to account for inter-company differences on when a loan enters the foreclosure process. In the second quarter of 2005, the percent of loans that were seriously delinquent was 1.83 percent, 20 basis points lower than second quarter of 2004 and 6 basis points lower than first quarter 2005.
If you are a member of the media and would like a copy of the survey, please contact Susan Besaw at (202) 557-2871 or sbesaw@mortgagebankers.org, or Teresa Dingboom at (202) 557-2924 or tdingboom@mortgagebankers.org. If you not a member of the media and would like to purchase the survey, please call (800) 348-8653.
Note: One issue still apparent in the subprime data is the lack of sufficient historical data for the calculation of seasonal adjustment factors. Seasonal adjustment factors are used to remove the seasonality in the numbers, revealing true quarter-to-quarter trends. For example, the unadjusted delinquency rate for subprime loans increased 93 basis points (from 9.48 percent to 10.41 percent), while on a seasonally-adjusted basis the delinquency rate has decreased 29 basis points (from 10.62 percent to 10.33 percent).
The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 500,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation`s residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,900 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA`s Web site: http://www.mortgagebankers.org/.
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Denver Rental Rates

2006-09-25T15:55:00.000-07:00

Vacancy rate up for area rentals, an article from Rocky Mountain News, reports that the home rental vacancy rate for the second quarter was 7.1%, down from 9.5% a year ago. However, it's a fairly dramatic climb from the first quarter, when it was 4.9%. A primary reason for the rise is likely the overall supply of housing. The foreclosure market is also a contributing factor, as many of these homes end up on the rental market if they can't be sold. Findings show there is a 95% chance of getting a home rented if it is priced right. This is pretty favorable. Median monthly rent for a two-bedroom home (Q2) was $795 and $1,050 for a three bedroom.

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Colorado Mortgage Rates

2006-09-25T15:36:00.000-07:00

Wells Fargo Home Mortgage
877-937-9357

Today's Rates: SEPTEMBER 25, 2006

$

Conforming - loan amount less than or equal to $417,000 ($625,500 in AK and HI)
Product Interest Rate APR Total Points
-----------------------------------------------------------------
40-year fixed(1) 6.250% 6.353% 1
30-year fixed(1) 6.125% 6.353% 1
15-year fixed(1) 5.750% 6.126% 1
5-year ARM(1) 5.875% 7.076% 1
3-year ARM(1) 6.125% 7.373% 1

-----------------------------------------------------------------

FHA - Loan limits vary by county.
Product Interest Rate APR Total Points
-----------------------------------------------------------------
1-year ARM(1) 5.125% 7.916% 1
-----------------------------------------------------------------
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Weekly Blog on Colorado Real Estate

2006-09-22T12:38:00.000-07:00

Family-friendly touted as core for city centers, an article from The Denver Post, reports that Denver's core business area had only 3,000 residents 20 years ago. It now has 9,000. However, the number of workers downtown is now 110,000, down slightly from 113,000 in 1986. Of the downtown residents, children number only 300. Susan Gotsman, a national environmental design expert and principal with Moore Iacofano Goltsman, recently spoke before a group of business leaders about ways to build a family-friendly city center. She explained that "urban planners and developers must pay attention to what parents want - a feeling of safety and security; good schools, parks and recreation; and housing that is affordable and appropriate for families."http://www.denverpost.com/business/ci_4377623

Luxury senior tower unveiled, an article from Rocky Mountain News, reports that plans for a $109 million, luxury senior citizen retirement tower were revealed yesterday. The Cosmopolitan Club will be constructed in the Riverfront Park development at 15th and Little Raven streets. Balfour Senior Care, a Louisville-based company, plans to begin construction in February. The seven-story building will have 240 units and a 160-car parking garage. The site was purchased from Archstone Smith. Most retirement homes find that 73% of their residents come from within a 10-mile radius. However, retirement homes in Denver and Atlanta find that 50% of their residents come from out of state. A one-time fee of $10,000 will be charged. Monthly rents will fall between $3,500 and $6,500 for independent living units. The project will also include renovating the Moffatt train station into a community center.http://www.rockymountainnews.com/drmn/real_estate/article/0,1299,DRMN_414_5012248,00.html

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Colorado Real Estate Market Information

2006-09-11T11:40:00.000-07:00

Housing market still all about location, an article from The Denver Post, reports that homes in urban neighborhoods, high-end homes and properties in popular school districts are very marketable. However, homes in neighborhoods with long commutes (i.e., mountain and fringe suburban developments), entry-level condos and outdated homes aren't selling very well. Homes in the following areas are selling quickly: Highlands Ranch, Capitol Hill, Green Valley Ranch, downtown Littleton, Lowry, Polo Grounds, Belcaro, Bonnie Brae, West Highland, Jefferson Park, Chaffee Park, Sunnyside, Niwot and South Boulder. Homes in the following areas take the longest to sell: Byers and Watkins (Eastern Plains) and Pike National Forest, Bailey, Idledale and Nederland. Homes priced on the lower end and upper middle of the market are sitting on the market longer. While homes priced in the middle of the market are doing alright and those on the very high end are doing very well. Another factor in whether or not a home sells quickly on today's market is the condition of the home. Buyers want hardwood floors, granite counter tops and finished basements. Homes with uncompleted improvements can be expected to take longer to sell.http://www.denverpost.com/business/ci_4310423
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Sales center now puts on the ritz for condos, an article from The Denver Post, reports that a sales center has opened for Denver's Ritz-Carlton project. The facility showcases the standard bathrooms and kitchens for 25 residences that will make up the project. The units range in price from $800,000 to $4.5 million with 1,100 to 5,000 square feet. Twelve residences have already been reserved, six by oil and gas executives in Wyoming.
http://www.denverpost.com/business/ci_4316068
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Additional articles that you may find of interest:

Infill projects boost Birch Street Grouphttp://www.bizjournals.com/denver/stories/2006/09/11/story11.html?b=1157947200^1343128
Brought to you by: www.denvercoloradorealestate.us .

Paying Union Station's tabhttp://www.rockymountainnews.com/drmn/real_estate/article/0,1299,DRMN_414_4980016,00.html
Brought to you by: www.denvercoloradorealestate.us .

Hines plans spec building in LoDohttp://www.rockymountainnews.com/drmn/real_estate/article/0,1299,DRMN_414_4980042,00.html
Brought to you by: www.denvercoloradorealestate.us .

Stronger building codes emerge after attackshttp://www.bizjournals.com/denver/stories/2006/09/11/story7.html?b=1157947200^1343119
Brought to you by: www.denvercoloradorealestate.us .

Fed: Minorities pay higher rateshttp://www.rockymountainnews.com/drmn/real_estate/article/0,1299,DRMN_414_4979449,00.html
Brought to you by: www.denvercoloradorealestate.us .

Firm brokers no-moan family loanshttp://www.denverpost.com/business/ci_4312613
Brought to you by: www.denvercoloradorealestate.us .

Town gets shopping money (Lone Tree to include Park Meadows)http://www.denverpost.com/business/ci_4316085
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Colorado Real Estate Market Information

2006-09-11T11:36:00.000-07:00

CONSUMER BORROWING SLOWS IN JULY

2006-09-09T16:32:00.000-07:00

By MARTIN CRUTSINGER, AP Economics Writer
WASHINGTON - Americans increased their borrowing in July at the slowest pace in four months as the gain in credit card debt fell off sharply.
The Federal Reserve reported Friday that consumer borrowing rose at an annual rate of 2.8 percent in July, down from an increase of 7.3 percent in June.
The slowdown was led by a sharp deceleration in credit card debt, which rose by just 3.4 percent in July after gains of 13.2 percent in June and 13 percent in May.
Borrowing to buy autos also slowed in July to an annual rate of gain of just 2.5 percent after an increase of 4 percent in June.
All of the increases pushed debt up by $5.5 billion after a much larger increase of $14.1 billion in June, which had been originally reported as a gain of $10.3 billion. The July increase was slightly below the $6.5 billion advance economists had been forecasting.
The increases left consumer credit at a record level of $2.35 trillion. The Fed's measure of consumer credit does not include mortgages and other loans secured by property.
Consumer spending, which accounts for two-thirds of the total economy, slowed abruptly in the spring, pushing overall economic growth down to a 2.9 percent rate of increase.
Analysts believe consumer spending will remain sluggish in coming months as Americans struggle with high energy prices and interest rates and a cooling housing market.
Copyright 2006 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Brought to you by: www.denvercoloradorealestate.us .

Mortgage Rates Decline For Third Straight Week

2006-09-09T00:13:00.000-07:00

Mortgage rates around the country dipped for a third week in a row, pushing 30-year mortgages to their lowest level since April.Mortgage giant Freddie Mac said today that 30-year, fixed-rate mortgages fell to 6.55 percent this week, down from 6.63 percent last week.That was the lowest level for 30-year mortgages since they averaged 6.53 percent the week of April 20. Since that time, mortgages have been rising, hitting a more than four-year high of 6.80 percent the week of July 20.Analysts attributed the latest decline to continued evidence that the economy is slowing, which should ease pressure on interest rates, and the decision by the Federal Reserve this week to call a temporary halt to its two-year campaign to push short-term rates higher.Analysts said that the report last week that job growth was weak in July for a fourth straight month was just the latest evidence that the economy is slowing.“The weaker than expected jobs report combined with the Fed’s decision to pass on raising rates at its last meeting led directly to lower rates this week,” said Frank Nothaft, chief economist for Freddie Mac.Home sales, which set record highs for five-years running, have slowed this year as higher mortgage rates and still solid home prices have made it too expensive for some people to buy a home.Rates on 15-year, fixed-rate mortgages, a popular choice for refinancing, averaged 6.20 percent this week, down from 6.27 percent last week.For one-year adjustable-rate mortgages, rates held steady at 5.69 percent, the same as last week, after having been at 5.78 percent the week of July 27.Rates on five-year adjustable-rate mortgages fell to 6.21 percent this week, from 6.27 percent last week.The mortgage rates do not include add-on fees known as points. One-year ARMS carried a nationwide average fee of 0.8 point while the other three mortgage categories carried average fees of 0.4 point.A year ago, 30-year mortgages averaged 5.89 percent, 15-year mortgages stood at 5.47 percent, one-year ARMs were at 4.57 percent and five-year ARMs averaged 5.40 percent. Courtesy of: www.denvercoloradorealestate.us .

Colorado Residential Real Estate Sales Flatten

2006-09-08T11:44:00.000-07:00

Colorado Front Range 2006 Residential Real Estate Sales have flattened; with days on market increasing to 150. Sale prices have remained at 2005 levels. For more information contact www.denvercoloradorealestate.us .

Affordable Disaster Insurance Essential To Protect American Dream of Homeownership

2006-07-01T11:41:00.000-07:00

According to National Association of Realtors (NAR)
WASHINGTON (June 28, 2006 )– Recent natural disasters have raised concerns that the cost of homeownership can easily spiral out of reach for the average consumer during times of catastrophe if homeowner insurance isn’t made affordable, the National Association of Realtors® said today in written testimony to the House Subcommittee on Housing and Community Opportunity.“Options for obtaining and maintaining coverage for natural disasters are dwindling,” said Thomas M. Stevens of Vienna, Va., president of NAR. “America’s hard-working families deserve a comprehensive federal natural disaster policy that makes natural disaster insurance available and affordable and reduces the circumstances under which insurance companies cancel these insurance policies.”Recent research conducted by NAR in the state of Florida concluded that the lack of affordable or available homeowners’ insurance contributed to a slowdown in Florida real estate markets, which can contribute to a slowdown in overall economic activity in the region. “When buyers and sellers in high-risk states cannot obtain or retain homeowners insurance, which is necessary for a mortgage, it can slow home sales in those areas,” said Stevens. “A strong housing market is the foundation of a healthy economy, and as a nation, we must safeguard the vitality of the residential and commercial real estate markets.”As Congress addresses the need for a comprehensive natural disaster insurance policy, NAR stands ready to assist in formulating solutions to this problem. “If the ‘big one’ hits, and people are not insured, then the American taxpayer will pay the price,” said Stevens.The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.

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2006-06-28T17:45:00.000-07:00

The First of the First.