Archive for September, 2010

10 Reasons to Buy a Home

{ September 21, 2010 @ 1:30 am } · { Parker, CO, Real Estate }
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I have to share this article with you.  I just came across this piece on WallStreetJournal.com entitled “10 Reasons to Buy a Home.”  It is awesome and exactly what the focus of my last several Weekly Market Watch editions have been.

Essentially what the reporter says is enough is enough with the doom and gloom – if the numbers work for you and you aren’t limited by financing constraints or other challenges – now truly is a great time to buy a house.

The reporter was inspired by a Time Magazine article which stated on its cover “Why owning a home may no longer make economic sense.”  What the WSJ reporter candidly points out is, Time Magazine was the same publication five years ago to run a story that said “We’re Going Gaga Over Real Estate.”

Why I like this so much is we’re finally seeing an article and a publication for that matter that is focused less on sensationalizing the real estate market and instead focusing on many of its benefits and how consumers can take advantage of today’s interest rates, inventory and of course, the overall benefits of homeownership.

Enough with the doom and gloom.  We shouldn’t be scared of buying a home.  If the math works for you, it’s probably a very good time to buy a home.  Be sure to view the reporter’s in-person interview shortly after the article was released.  It’s a good one.

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

  • Colorado Springs – Our showings have declined over the past few weeks and with the start of school and the holiday sales have also declined.  The low interest rates (4.25%) has kept some buyers in the market.  Listings have been steady but most listings turn out to be short sales.  Since our Agents are trained to deal with the short sale process, it’s ok.
  • Conifer – We have three new listings for the month to date in September, including a horse property listed @ $8,750,000.  One listing went under contract so far in September with one buyer put under contract.  There have been a total of  42 showings and I preview for the month to date.  Our showing activity is primarily in the mid $200,000 to $400,000 range.
  • Denver Central – Inventory continues to increase in the Denver Metro area and is just below 2008 levels but has increased 20% over 2009.  Inventory is still well below 2007 levels, when it was at its peak.  We continue to see home appreciation in the Denver metro area but that could be attributable to the recent tax credit.  The average sales price in August was $269,000 for the Denver Metro area.  We could see appreciation tail off in the coming months with inventory increases.  Under contracts seem to have stabilized after the drop that we had after the tax credit deadline.  The market is very neighborhood specific so it is important to be working with a professional that can educate and give you the proper advice to make the right real estate decisions. Over 50% of the homes sales in the Denver metro area continue to be under $250,000.  We’re seeing improvements in the higher-end market & sales have increased.  There was a 48% increase in the million plus home market in August 2010 vs 2009.
  • Devonshire – As we move into fall, we’re hoping for the after Labor Day surge that we’ve seen in recent years.  The showings at this time are not showing this momentum and we hope that a “short” week would make this justifiable.  We are encouraging sellers to allow open houses because we all know that consumers still like to walk through homes and get a true sense of the home itself as well as the neighborhood where the home is located.  Buyers still seem to be on the fence & may be waiting for that ultimate interest rate drop.  With economic indicators, like consumer spending being released this week, we’re anxious for good news & hope that this news will help to get the real estate market moving in a great direction into the fourth quarter of the year.
  • Evergreen – We have had a total of six new listings so far in September with three listings under contract and five buyers put under contract. There have been a total of 111 showings and six previews so far in the month which is a decrease from August activity.  Selling activity was predominately in the mid $300,000 to $500,000 range.
  • Parker – Our sales and showings have been steady and with interest rates still at an all time low (4.25%) sales should remain steady or increase throughout the remainder of the year.  Listings are up with 80% being real listings and not short sales.  That is very good news for buyers who need to close quickly as short sale listings can take 4 to 6 months to close.
  • SE Metro at DTC – “The Fall Flurry” of activity is up and running!  The SE Metro office is seeing increased activity in showings & contracts after the Labor Day weekend.  Open house activity has also increased & several buyers visiting our listings are unattended & ready to buy.  Although the Denver market reported a significant decrease in closings in August 2010 compared to August 2009, the SE Metro office posted a difference of only 5 closings for the same time frame.  A combination of pricing & condition for many listings continue to be the driving force for the buyers.  The average number of showings before a property is under contract continues to hold steady at 20. Homes listed above $300,000 are seeing the most activity and in several instances, multiple offers.  Homes listed at $200,000 & below do not have the activity reported in June and July. The luxury home market is enjoying a steady stream of activity & over 50% of those listings are currently under contract.
  • SW Metro – Showings are still down compared to this time last year.  We’re seeing better showings Monday through Friday compared to Saturdays and Sundays.  Open houses have been great in some areas & slow in others.  Buyers are still out there but they are taking their time to purchase.  We’ve seen an increase in investors starting to look & making offers on properties.  Most sellers are realistic in pricing their home however there are some who still think if they wait a year or two they can “get more money.”  We are working to educate our sellers that this is not the case.  Interest rates are great !
  • Denver West – Our numbers for listings, under contracts and showings have all slowed down.  Of course, we have to take into account that we had a long Labor Day weekend that may have affected things.  August numbers are more like a September, and September will be more like October this year.

Selling Your Home In Today’s Market ~ The Reality of Real Estate

{ September 20, 2010 @ 4:19 pm } · { Parker, CO, Real Estate }
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On paper, now may be a great time to buy a house. Interest rates are at historic lows. Many sellers are motivated and there is a substantial amount of inventory in many markets.

However, taking a property from “Just Listed” to “Just Sold” can be a difficult task in today’s market. As Realtors, we see that reality each and every day. Some buyers are having difficulties in securing financing. There are more challenges in getting properties to appraise. More effort is needed to get a listed property to stand out in a sea of available listings.

As a seller, how can you best position your property for sale in today’s market? We’ve put together a few tips to help:

Make Your Home More Marketable: As the saying goes, you only get one chance to make a good first impression. You can maximize curb appeal by trimming trees, planting flowers and even rolling out a new lawn if needed. A fresh exterior coat of paint might also improve the appearance of your house. And consider having a professional “stage” your home to make it even more attractive for buyers.

Choose a Realtor With a Proven Marketing Plan: Now more than ever, you need a professional Realtor who will help you merchandise and market your home. According to the National Association of Realtors® Profile of Home Buyers and Sellers 2009, 90% of buyers used the Internet to search for homes. You therefore need a Realtor who offers an aggressive online marketing campaign on the country’s most visited real estate websites. Just to give you an idea, as a Coldwell Banker Residential Brokerage Agent, my listings are marketed through the use of over 300 websites around the country to create more exposure for your listing. Other marketing techniques like “Just Listed” postcards, professional photography and brochures, virtual tours, property websites and more can also help generate more interest in your listing. It is important that you choose a Realtor, like myself, who will create an effective marketing campaign to help you sell your property.

Conduct a Full Home Inspection: If repairs are required, it is a good idea to go ahead and repair the problems. Potential buyers will cast an extremely critical eye over your home and, in when there are more houses to pick from, buyers may take a pass on a home that needs too many repairs. Be sure to have the home inspection report available for prospective buyers and disclose all of the repairs that have been made along with the cost of each repair.

Price Your Home According to the Current Market: Just because a house that may have been comparable to yours sold for a very high price last year does not mean that you will be able to realize the same price when selling your home now. According to Chris Mygatt, President of Coldwell Banker Residential Brokerage in Colorado, “It’s probably not a good idea in today’s market to simply pick a price to ‘test the water.’ Listing a home at a competitive price at the inception of the marketing period usually brings greater success to today’s sellers.” Work with a full-service real estate professional to help you determine an appropriate, competitive listing price for your home based on current market conditions.

Finally, try not to worry. Properly priced homes that can stand out from the competition are selling. Feel free to ask me how long properly priced homes may remain on the market in your area. This information will enable you to better understand the marketing process.

If you are ready to make an informed decision about buying or selling your home, please contact me. I’d be happy to walk you through the realities of today’s market and help you determine if now may be the best time to buy or sell.

Luxury Home Sales Dip in July But Price Niche Continues to Be Among the Market’s Strongest

{ September 8, 2010 @ 6:23 pm } · { Parker, CO, Real Estate }
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Earlier this week we released our Denver Metro area luxury home sales report, one of our company’s best and most influential indicators of the current state of the luxury housing market.  If you haven’t seen it, I encourage you to visit our Table Talk blog as we post them monthly and they truly provide a good understanding of what’s going on in the million dollar plus arena.

To recap, luxury home sales in the Denver metro area last month dipped four percent over the same period in 2009 while prices were flat year over year.  A total of 50 homes sold for more than $1 million in the Denver metro area last month, down slightly from the 52 sales in July 2009.  The median sale price of million-dollar homes remained at $1.22 million, the same as a year ago.

Both sales and prices in July declined from June’s numbers, when sales reached their highest level in nearly two years. Sales in June totaled 67 properties, 17 more than July, while the median sale price in June stood at $1.34 million, 8.9 percent higher than the July level.

The figures were derived from Multiple Listing Service data of all homes sold for more than $1 million in the Denver metro area.

July’s sales decline in luxury homes was far less than the general market, which saw sales of all homes and condos drop 26.6 percent last month from July 2009, according to Metrolist. Sales also fell 19.5 percent from June of this year.

My analysis?  Quite frankly we’re pleased to see the strengthening of the upper end of the housing market despite the softening of the lower end after the federal tax credit expired.  We are carefully tracking the upper-end market’s success so far this year to see if the positive trend continues into the fall.

July’s slight year-over-year decline in luxury home sales followed five consecutive monthly gains. In fact, million-dollar sales year to date in 2010 are actually up nearly 18 percent compared to the same period last year.

We’re seeing an improving level of consumer confidence among buyers in the upper end that we haven’t seen in three years.  One reason may be Colorado’s relatively low unemployment rate of 7.6 percent, two full percentage points below the nation’s jobless level. The numbers suggest a slow but steady economic recovery, which in turn in helping bolster consumer confidence.

The high-end buyers who have been on the sidelines for the past couple of years are starting to jump back into the market.  They’ve been waiting and waiting, and seem to have decided that both prices and interest rates are about as low as they’re going to get, so they’re moving ahead their plans to invest in real estate again.

Some key findings from this month’s Coldwell Banker Residential Brokerage luxury report:

  • The most expensive sale in the Denver metro area in July was a nine-bedroom, eight-bath 11,000-square foot home in Denver that sold for $4.5 million;
  • Denver boasted the most million-dollar sales with 12, followed by Boulder with nine, Castle Rock with seven, and Greenwood Village with five;
  • It took an average of 124 days to sell a million-dollar home in the region, up from 116 days in June and 83 days a year ago.

As you can see, on the surface, these numbers may be seen as a negative but honestly, I see quite the contrary.  We’re finally seeing some great movement in the upper end and buyers are acting which is a good sign for the overall economy.

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

  • Boulder/Longmont— The Longmont market has been erratic.  Showings were steady for the week of 8/2/2010, then showings were cut in half for the next week!  The good news, we are seeing an increase in the price of our listings being shown.  The move-up market is getting some good showings which we hope translates to confidence in our Longmont market place.  We hope so.  With local schools starting earlier than usual this year we’re attributing the decrease in showings to families making the transition into Fall.  Short sales continue to be a long and uncomfortable process.  Homes that are priced to sell are seeing multiple offers and they are not on the market long.
  • Colorado Springs— Sales have been increasing for the past few weeks as buyers are taking advantage of low interest rates (under 5%).  Listings have also been increasing as sellers know if they can get their homes sold they can become buyers and take advantage of low rates, then move up to a larger home.  Overall, showings are down, about 25% from last week.
  • Evergreen/Conifer— No information reported.
  • Fort Collins— The Fort Collins market is in “Back to School” mode which typically occurs during the first 2 or 3 weeks in August.  Families and university students are focused on getting ready for the school year illustrated by a drop in showings and overall contract activity.  CNN/MONEY’S recent ranking of Ft. Collins as #6 in their Best Places to Live survey of mid-size cities as well as US News & World Report’s ranking of CSU as a top school continues to generate more inquires from out of state buyers.  With interest rates in the mid 4% range we’re seeing a continuation of elevated refinance activity too.  While this doesn’t necessarily boost sales, it does help to keep inventory levels in check.  Well priced, well-maintained homes are still moving relatively quickly in the under $300,000 price range. There’s also increased showing activity in the $300,000 to $500,000 ranges, further demonstrating the increased buying power that low interest rates are creating.  Distressed properties are still prevalent and contributing to a relatively flat appreciation rate.  The hope is that low interest rates, refinancing opportunities as well as loan modification programs will help  keep the so-called ‘shadow inventory’ at bay.
  • Denver Central – Inventory continues to increase in the Denver Metro area and is just below 2008 levels but has increased 20% over 2009.  Inventory is still well below 2007 levels when it was at its peak.  We continue to see home appreciation in the Denver Metro area. We continue to have a drop in under contracts and closings after the tax credit deadline passed.  The market is very neighborhood specific so it is important to be working with a professional that can educate and give the proper advice to make the right real estate decisions.  Over 50% of the home sales in the Denver metro area continue to be priced under $250,000.  If you are looking to sell a home that is priced under $300,000 this remains a great time to sell.  We’re seeing improvement in the higher-end market and sales have increased.  This is definitely a great market in which to move up to a higher priced home.  Your financial gain in getting a higher priced home for less should be a big reason to make a move now.
  • Denver West – The Denver West Agents remain quite busy even though the number of showings on our listings have reduced by half.  Buyers are active in the market due to the low interest rates.  Sellers now realize that it will take many years to see appreciation rates of the past.  As a result of this, they are listing their homes and pricing at fair market value (not aggressively).
  • Devonshire— Once again we see the angst in the general public reflected in real estate activity.  What should be the perfect time to buy a new home seems to be stalled with uncertain news on the job front.  We do see listing inventory increasing which will put us in a good position as we come out of the hot summer months and kids are back in school.  Listings that are priced fairly & show well are certainly selling.  We’re encouraging our people not to wait and to get their homes on the market as soon as possible.  Showings in the luxury sector of the market are increasing as are contracts on those homes.  Sellers are feeling more optimistic about getting their homes under contract & closed.  We’re optimistic at Devonshire about a better fall season than we’ve seen in recent years.  With good news on the job front, even if it’s seasonal we’ll have a great story to tell.
  • Loveland—The Loveland market saw a 30% increase in showings week over week.  The price point of the homes being shown has been on a gradual increase since the beginning of the summer.  Short sales and foreclosures are still impacting some areas of town.  More conventional resales are being listed.  This is a good that not all sellers are in distress buyers.  The loan process for buyers can be a lengthy ordeal with documentation being requested on what seems the most minor point.  We are anticipating a wonderful fall for buyers and sellers.
  • North Metro— We have felt a slight slowing of the market following the tax credit expiration.  Buyers are a little more selective now & not making decisions as quickly as in the first 4 months of the year.  We continue to have the market share of listings in Adams & Broomfield counties and put new homes on the market every week.  Our calls into the office from people not represented by an agent have increased.  Most of these people are looking to sell their homes versus buying.  It is a great time to purchase a home with interest rates around 4.5% and good inventory to pick from.
  • Parker— The number of listings and the number of showings are both down the past week as families return from vacations.  Our market is still strong with buyers as the low interest rates (under 5%) make it likely that this trend will continue for a while.
  • Southeast Metro— Interest rates have never been this low!  It’s absolutely the best time to buy real estate!  The SE Metro office is experiencing a steady flow of new listings coming on the market.  We currently have over 520 listings with the average days on market being 90 days.  Weekly showings are steady & open houses in high energy areas continue to enjoy buyer traffic.  The luxury market has seen an increase in buyer traffic & the number of homes sold in this price range has increased in the last two months.
  • Southwest Metro – We’re seeing an increase in buyer activity with interest rates so great.  Sellers are listing their homes, however showings have increased over the last 4 weeks, but are still down from a couple of months ago.  We’re seeing success at open houses.  Our listings & buyers are around the $300,000 to $500,000 range & the activity in the price range below $300,000 has been slow.  With the best interest rates in years, we’re encouraging our buyers to buy now.  We compared a home purchased & closed in April/May with the $8000 tax credit & what it would cost if they closed with today’s rates, the buyer would save more due to the low rates.

New Figures Underscore Continued Modest Recovery

{ September 8, 2010 @ 6:07 pm } · { Parker, CO, Real Estate }
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Figures released today by the National Association of Realtors are a good indicator that the market continues to improve – though at very modest levels.  I’ve been saying for months that the market is, in this post recessionary period, improving though will continue to do so with minor bumps in the road along the way.

Last month’s lower than expected sales figures were just that, a bump in the road.  We saw the slip partly due to seasonality and partly due to the expiration of the tax credit.

Now, one month later, we’re seeing numbers rise.  According to the National Association of Realtors’ Pending Home Sales Index, pending home sales rose 5.2 percent to 79.4 based on contracts signed in July from a downwardly revised 75.5 in June.

According to Lawrence Yun, NAR chief economist, “Home sales will remain soft in the months ahead, but improved affordability conditions should help with a recovery,” he said.  “But the recovery looks to be a long process.  Home buyers over the past year got a great deal and buyers for the balance of this year have an edge over sellers.  For those who bought at or near the peak several years ago, particularly in markets experiencing big bubbles, it may take over a decade to fully recover lost equity.”

Now of course this is a national perspective and we all know that real estate is local.  Locally we’re seeing some pockets of strength.  Some of the most sought after neighborhoods continue to see strong sales while those that may be challenged due to proximity to jobs and commerce, are seeing bigger lags.

Overall what we’re seeing most is buyers want to take advantage of the low interest rates and realize that thanks to those rates, they have particularly higher purchasing power right now.  From a move-up buyer perspective, we’re seeing a lot of sellers consider selling right now.  Yes, they realize they may take a hit from the flurry days of the early part of the decade but when they compare it to what they can purchase on the move-up side and what their monthly payment will be, they truly see a benefit.  These indicators are really helping to drive our market right now.

The bottom line is, we are on a good recovery path.  And an interesting report this week underscores that.  Bankrate revealed numbers that provided a good look at consumer confidence. An overwhelming 90 percent of homeowners say they don’t regret buying their current home.  That is even in the face of stagnant – or sliding – home prices home owners have suffered.  It is comforting to see this number because regardless of where market conditions currently are, consumers continue to understand that real estate is a good, long term investment.

Now, let’s hear what our local offices have to say:

  • Boulder—New listings are up almost 12%, but sales activity is down almost 10%.  It looks as though there is an excess of properties and not as many buyers for them.  This is very noticeable in the amount of showings.  Showings are down over 20%.  This means that the market is saturated with homes for sale but the demand for these properties has dropped off in this period.  The showings reflect the sales activity in this case.
  • Colorado Springs—Sales have been increasing for the past few weeks as buyers are taking advantage of low interest rates (under 5%).  Listings have also been increasing as sellers know that if they can get their homes sold they can become buyers & take advantage of low rates & move up to a larger home.  Overall, showings are down about 35% from last week.
  • Conifer—There were three new listings in the Conifer office for the month of August. We also had three listings go under contract in August with five buyers put under contract.  A total of 117 showings and 5 previews for the month reflects a 60% improvement from the prior month.  Our showing activity is primarily in the mid-$200,000 to $400,000 range.
  • Denver Central—Inventory continues to increase in the Denver Metro area and is just below 2008 levels but has increased 20% over 2009.  Inventory is still well below 2007 levels when it was at it’s peak.  We continue to see home appreciation in the Denver metro area but that could be attributable to the recent tax credit.  We could see appreciation tail off in the coming months with inventory increases.  Under contracts seem to have stabilized after the drop that we had after the tax credit deadline. The market is very neighborhood specific so it is important to be working with a professional that can educate & give you the proper advice to make the correct real estate decisions.  Over 50% of the home sales in the Denver metro area continue to be under $250,000.  If you’re looking to sell a home that is priced under $300,000, this is a great time.  We’re seeing improvement in the higher-end market & sales have increased.  This is definitely a great market to move up to a higher priced home.
  • Denver West—Denver West has enjoyed closings in the $600,000, the $700,000 and even the $800,000 sales point. Many buyers are motivated & are taking advantage of these low interest rates. We’re experiencing many sellers buying up, yet renting out their current home since they can’t achieve the price they want. We’re also seeing a high desire to rent from former homeowners who lost their homes through short sales & foreclosures.
  • Devonshire—Here we are at the end of summer & it seems that many people are out enjoying the last days before all of the fall activities get into full gear.  We can feel the angst in our buyers as they are struggling with proceeding to find that new home and take advantage of the wonderful low interest rates.  Inventory in some price points is slim. It seems that many buyers have decided to hold on until they feel that the economy is a little more stable.  A bright light seems to be in the upper price points where we have had more activity and actual closings than in the last few months.  We had the highest sale in the metro office in 2010, in the Devonshire office & we’re proud of Kelly Westergren for representing the buyer on that transaction.  Fall is historically a good time of year for us and we’re looking forward with excitement to see all the successes that fall will bring.
  • Evergreen—We had a total of 19 new listings in August, with 9 listings under contract and 7 buyers put under contract.  Both are very similar to our July totals.  There was a total of 320 showings and 24 previews in the month which is a 30% improvement over July activity but still 7% below levels from Aug 2009.  Selling activity was predominately in the mid-$300,000 to $500,000 range.
  • Longmont—Showings are holding very steady.  Homes being shown are still in a wide range of price points.  Move up buyers are in our market looking.  Financing is still an issue for buyers. Self employed buyers are having difficulties securing loans.  New homes in all price ranges are coming on the market & sellers are realizing that keeping their homes on the market longer will be necessary.
  • North Metro—Fall is in the air, the kids are back in school and now is the perfect time to purchase a home.  We are seeing increased activity at Open Houses and in the number of floor calls coming to our office.  The average sales price has increased to $275,000 for homes sold.  We have 73 new homes listed this month as compared to 70 for last month and we’ve helped buyers and sellers close on 74 properties.
  • Parker—Our listings and showings are down from the past week as families return from vacations.  Our market is still strong with buyers as the low interest rates (under 5%) make it likely that this trend will continue for a while.
  • Southwest Metro—Showings have been steady but they’re still significantly down from June of this year as well as this time last year.  The buyer pool is waiting and we do not understand what they are waiting for as the interest rates are so great. We’re seeing good activity in homes over $300,000 & less activity in those below that amount. The first time buyers are not moving but are waiting.  Sellers are still ready to list their properties but are not realistic as to the value.  Everyone seems to be in a holding pattern waiting to see what is going to happen.  We’re sending out newsletters showing that this is a great time to finance a home.  Open houses have been good & a couple of agents did have several good buyer leads in the past two weeks.

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