Home Remodeling - What pays off.....

Increasing your homes value

2010-04-22T06:56:00.000-07:00

Like most Americans, your home is probably your single largest investment. While the value of your home is largely determined by such things as location, size, condition and amenities, there are still steps you can take to maximize its worth.

First, you need to evaluate your plans carefully if you're improving your home to put it on the market. Cutting corners could hurt rather than help your prospects, but you don't want to go overboard either. Your home's value should be no more than 20% above the average. That means a $10,000 kitchen improvement project might be a better idea than a $10,000 hot tub, especially if no other homes in your area have hot tubs.

In other words, it's best to keep changes simple.
Here's a list of remodeled projects that buyers are likely to find valuable:

Add a bedroom: Three- and four-bedroom homes are most desirable.
Install a master bathroom: When a bedroom has a bathroom, it means extra value.
Install a new shower: A new shower says a modern home.
Change your fixtures: Get a faucet that adds a decorative element to the bathroom.
Re-grout the tile: If the tiles are in good shape a new grouting does wonders.

Install new kitchen cabinets: Even just a paint job and some new handles will give your cabinets a fresh look.
Improve functionality: If you've got the space, an island is the way to go. New appliances make a difference too.
Expose the floors: Remove old carpet and show off the original floor. If you don't have hardwood floors, consider new carpeting.
Install new doors: Doors set off a room and make a great difference.
Paint the interior: A new paint job speaks volumes. Good colors to use are white, off-white, and a light yellow.
Add new light fixtures: Replace any that are damaged or out-of-style.

Add a fireplace: Even if you don't plan on using it much, it adds great value.

Take advantage of unused or underused space: If you can convert a basement or attic into a useful room, do it.

Landscape: A few strategically located plants and a neat-looking yard will impress.

Add a deck: It's a great use of exterior space because it increases your total entertainment area.

Dress up your porch and entrance: A freshly painted door with a new door handle can make a great first impression.

Replace the windows: New windows not only give your home a new look, they can also lower your energy bill.

Remember, when it comes to your home, it's important to keep pace with your neighbors. Don't let your home become the most expensive on the block - but don't fall behind either. This is a case where it's best to be right in the middle!

Quick Home Improvements (Even You Can Do!)

Outside:
Sweep all walkways and sidewalks.
Remove newspapers, bikes and toys.
Park extra cars away from the property.
Trim back the shrubs.
Clean windows and window coverings.
Keep pet areas clean.
Make sure roof and gutters are in good condition.
Mow the lawn more frequently and plant flowers.

Inside:

Kitchen and bathroom should shine.
Put dishes away.
Clean and/or vacuum carpets and rugs.
Place fresh flowers in the main rooms.
Make beds and put all clothes away.
Open drapes and turn on lights for a brighter feel.
Straighten closets.

4 energy effiecient renovations Homeowners should consider

2010-04-22T06:52:00.000-07:00

HouseMaster, a home inspection organization, urges homeowners to be proactive in making energy-efficient home renovations in order to receive rebates outlined in President Obama's new "Home Star Retrofit Rebate" program, recently introduced in Congress. HouseMaster provides the following easy check-ups every homeowner can do to optimize the energy efficiency of their home:
Windows and Doors: Holes in windows and doors allow conditioned air to leak and outdoor air to infiltrate. Caulk around windows and doors. Also caulk areas where plumbing lines or electrical wiring extend to the exterior of home.
Floor and Wall Insulation: Insulation acts as a barrier to heat and helps keep homes cooler in summer and warmer in winter-all while using less energy. Make sure insulation is used at gaps around attic stairway or over attic access door
Shedding a Little Light on a Simple Solution: Replace traditional incandescent light bulbs with compact fluorescents which typically use up to 75% less energy
Appliances and HVAC Systems: Change HVAC filters regularly and consider upgrading older appliances to take advantage of newer more efficient designs
Buy a Programmable Thermostat: An energy-saving step that can have a positive and noticeable impact right away. Easily installed, programmable thermostats can be adjusted as the weather changes. For every degree a thermostat is set back, homeowners may realize a 1-3% savings on heating or cooling bills.
Source: RISMEDIA, (04/17/10)

Home Remodeling - What's your best return on investment?

2010-04-22T06:45:00.000-07:00

Do you remodel and stay....... or sell? How do you know if your remodeling dollars are well spent? How much can you expect to recoup from your investment?

According to the 2009 / 2010 survey published by Remodeling magazine, here's how it breaks down:
For a mid-range priced home, you can expect the average cost and recoup for the following projects:
Average Cost vs Expected Return on your investment
Bathroom Remodel $19,000
Recoup 60% of your costs

Bathroom Addition $48,000
Recoup 56% of your costs

Garage Addition $72,000
Recoup 63% of your costs

Convert a Bedroom to a Home Office $32,000
Recoup 47% of your costs

Major Kitchen Remodel $65,000
Recoup 72% of your costs

Minor Kitchen Remodel $24,000
Recoup 76% of your costs

Window Replacement (vinyl) $13,000
Recoup 74% of your costs

Backup Power Generator $17,000
Recoup 75% of your costs

Case-Schiller Ranks Denver Number 3

2010-01-27T08:26:00.000-08:00

The Denver-area housing market ranked No. 3 of the 20 cities tracked in the closely watched S&P/Case-Shiller Home Price Indices report released today.

The Denver metropolitan statistical area was one of four cities that in November showed a year-over-year improvement, “something we really haven’t seen in at least two years in most markets,” said David M. Blitzer, chairman of the Index Committee at Standard & Poor’s.

The Denver housing market showed a 0.5 percent gain in the year ending in November, bested only by Dallas and San Francisco, which showed a 1.4 percent and a 1.0 percent gain, respectively. San Diego also was in positive territory, with a 0.4% improvement.

Overall, the 20 markets in the index showed a loss of 5.3 percent.

In October, Denver was ranked No. 1 by Case-Shiller, with a 0.1 percent loss. (Please visit this link for a blog on October’s results.)

Larry Hotz, a broker with the Kentwood Co., said that the Case-Shiller report reflects homes that went under contract in September and October, and closed in November.

“Back then, we did not know if the Congress and the Obama Administration were going to come out and extend the first-time home buyer tax credit,” Hotz said. “A lot of first-time home buyers were scrambling to get under what could have been the wire.”

Although the $8,000 tax-credit was extended, and a $6,500 tax credit for some current homeowners added, the increased demand put upward pressure on mostly lower-priced homes being sought by people who had been renting or living with their parents.

“It wasn’t uncommon for many homes under $250,000 being bid up,” Hotz said. “I know, because my daughter, who works with me, was taking advantage of the first-time home buyer credit and she had to pay full-price for her home. The lower-end of the market has strengthened, and that obviously is being reflected in the Case-Shiller report.”

But after the tax credit was extended in early November, a sense of urgency among buyers evaporated, and December sales fell sharply more than they do for seasonal reasons, he said.

“We’re still recovering from the holiday blues,” Hotz said.

As the new deadline of April 30 for the tax credits approaches, he said he thinks there will be another surge of people putting homes under contract.

“I think it will be a little less competitive to start looking to buy a home now, than the rush we’re likely going to see as we approach April,” he said.

Charles Roberts, a co-owner of Your Castle Real Estate and a real estate investor, said although it is always nice to have a high-ranking, in another way, he couldn’t care less.

“So we’re not No. 1 and we’re No. 3? So what? What I deal with, and what I care about, is what is going on in my backyard,” he said. “I don’t care that San Francisco appreciated more than us. They’ve been down 50 percent over the past three years, so they should be coming back.”

He said what he cares about is starting to see appreciation in his home and real estate investments, “and I believe that is how the normal person looks at it.”

Roberts, who also is a registered appraiser and a mortgage broker, noted that averages are also misleading, as no individual home is up exactly 0.5 percent.

“We don’t own options on the entire Denver market; we own individual homes,” he said.

And what has happened to individual homes are all across the map, he notes.

“We’re certainly past the downturn for properties under $300,000,” Roberts said. “There is no guarantee that will continue, of course. Maybe interest rates will rise, or the government will stop buying mortgage-backed bonds, or we will experience another wave of foreclosures.”

Still, last year, the Barnum neighborhood in Denver was up 29 percent, Arvada is up 1 percent or 2 percent, and the north Aurora area is up 12 to 15 percent, he said.

“But if you are sitting in a high-end home in Parker, you’re down and probably facing a couple of more years of devastation,” Roberts said. “If you have a $700,000 home in Parker, you would kill for a 0.5 percent improvement, just like I would have five years ago with my little (investment) houses in southwest Denver, when they were falling in value by 25 percent a year.”

Michael Clarkson, principal of Home Hunter Realty in Littleton, has some fundamental problems with Case-Shiller, but said its latest report seems on target.

“I’m happy to say that overall I agree with Shiller,” which ranks Denver as one of the top-performing markets in the country, he said.

“What we’re seeing in Denver right now is that a lot of people are buying down,” said Clarkson, who closely follows a variety of economic indicators that impact real estate, including obvious ones such as interest rates, as well as more arcane ones, such as the money supply.

“One thing I am seeing is that a lot of people are buying toward the median price point of the $200,000 range, which is causing a big feeding frenzy in getting homes in that price range,” Clarkson said. He said that is good for the market because it is taking a lot of houses in the under $300,000 range off the market.

But he said there is not “sufficient lending capacity” for the move-up market. “There is a paucity of financing for the self-employed.” He said that needs to be addressed, as it currently is curtailing a huge segment of the market.

Meanwhile, the latest Case-Shiller numbers, overall, show a mixed-bag.

“While we continue to see broad improvement in home prices as measured by the annual rate, the latest data show a far more mixed picture when you look at other details,” Blitzer said. “Only five of the markets saw price increases in November versus October. What is more interesting is that four of the markets – Charlotte, Las Vegas, Seattle and Tampa – posted new low index levels as measured by the past four years. In other words, any gains they might have seen in recent months have been erased and November is now considered their current trough value. On the flip side, there are still some markets that continue to improve month-over-month. Los Angeles, Phoenix, San Diego and San Francisco have seen prices increase for at least six consecutive months. Looking at the annual figures, four markets – Dallas, Denver, San Diego and San Francisco – have finally entered positive territory."

“To add more mixed signals, we are in a seasonally weak period for home prices, so the seasonally-adjusted data are generally more positive, with 14 of the markets and both composites showing improved prices in November. On balance, while these data do show that home prices are far more stable than they were a year ago, there is no clear sign of a sustained, broad-based recovery.”

Metropolitan Area October-November Change One-year change
Atlanta -0.8% -6.2%
Boston -0.5% -0.7%
Charlotte -0.3% -5.5%
Chicago -1.1% -8.5%
Cleveland -0.2% -2.5%
Dallas 0.0% 1.4%
DENVER -0.5% 0.5%
Detroit -0.7% -13.0%
Las Vegas -0.5% -24.5%
Los Angeles 0.8% -3.5%
Miami 0.0% -12.1%
Minneapolis -0.5% -6.8%
New York -1.0% -7.1%
Phoenix 1.1% -14.2%
Portland 0.3% -7.5%
San Diego 0.4% 0.4%
San Francisco 0.6% 1.0%
Seattle -0.5% -10.6%
Tampa -0.4% -13.2%
Washington, D.C. -0.5% -0.6%
Composite-10 -0.2% -4.5%
Composite-20 -0.2% -5.3%

Sources: Standard & Poor’s, Fiserv

Rebchook Reports: Denver's Housing Market Tops Case-Shiller

2009-12-31T07:38:00.000-08:00

Denver performed the best of the 20 major metropolitan housing market tracked in the closely watched S&P/Case-Shiller Home Price Indices report released today.

Denver's housing market showed only a only a 0.1 percent dip in housing prices in the year ending in October, compared with an overall drop of 7.3 percent for the 20 areas in the report. The 10-city index in the report fell overall by -6.4 percent.

"Once again, this shows the strength of the Denver market," said Gary Bauer, an independent Denver real estate broker. "We continue to lead the nation as far as recovering from the recession – the recession is not over yet – but we will be one of the first to emerge."

Bauer said that "two-thirds" of the Denver-area housing market "still moving," if not showing spectacular performance. Only the high-end market continues to be soft.

"The market has moved from the only activity being in the first-time buyer to what I call the "move" buyer," Bauer said.

Denver in Top 10 Cities to Earn a Living

2009-10-27T08:57:00.000-07:00

Top 10 Cities to Earn a Living

The best cities to earn a living are those that have plenty of companies doing business in high-paying, growth industries.
Combine that with a high-quality business environment, job growth, and a low cost of living and you get a select-few locations where the pay check is generous and the cost of necessities like food and housing is modest.
Here are the top 10 cities where Forbes magazine says this is the economic reality now and the conditions are likely to get even better as health care, technology, and energy draw more employees into their ranks:

1. Dallas
2. Houston
3. Minneapolis
4. Austin, Texas
5. Washington, D.C.
6. St. Louis
7. Seattle
8. Atlanta
9. Kansas City, Mo.
10. Denver
Source: Forbes, Francesca Levy (09/03/2009)

Skiing and Golfing in Colorado

2009-10-17T10:02:00.000-07:00

Both Evergreen and Conifer are great locations for easy access to the following events......

2009/2010 SKI SEASON DEBUT The 2009/2010 Colorado ski season has begun! See what areas are already open, and which are soon to follow. Find out more about the nation's most highly anticipated ski and riding destination.

WINTER GOLFING IN COLORADO Several of the best golf courses in Colorado are open year-round, and others stay open from late-winter through fall, making wintertime golf a welcome surprise.

Skiing and Golfing in Colorado

2009-10-17T10:00:00.000-07:00

About Conifer

2009-10-01T09:45:00.000-07:00

Nestled in the foothills of the Colorado Rockies, 15 miles southwest of Denver, we share a way of life in Conifer that is special.Groves of aspen trees, trademarks of the high country, with their brilliant displays of gold and blazing orange, inspire us each autumn. We are a diverse community, a melting pot of ideas and energies. It is this diversity which enables Conifer to be the vibrant, growing, dignified community it is today.

About Evergreen

2009-10-01T09:43:00.000-07:00

Evergreen, Colorado and the associated communities that make up Evergreen, including El Rancho and Bergen Park to the north, Marshdale to the south and Kittredge to the East, are cradled in the Rocky Mountains at about 7,000 feet elevation and just 30 miles west of Denver along the historic Lariat Loop. Evergreen is a place where city and mountain living come together – to a place where elk and buffalo roam. The best things in life thrive in this quaint mountain locale – friendly people, beautiful mountain vistas, thick pine forests, wildlife, an abundance of recreational, social and business opportunities, and housing. While the area offers a unique mountain lifestyle, the amenities and services of nearby metropolitan Denver are close by.
Evergreen encompasses about 130 square miles of pine and aspen-laden hills. It sprawls from the flanks of 14,260-foot Mount Evans on the west, to the edge of the high plains on the east; from its sister communities of Conifer and Aspen Park on the south, to Genesee and Lookout Mountain on the north. About 30,000 people call Evergreen home. Residents are artists, engineers, scientists, carpenters, retailers, homemakers and heads of corporations. Many work in nearby Denver and escape home to the high country at the end of what may have been an urban hectic day; many residents both live and work in the mountain community. In Evergreen, purchasing a quality home, supporting quality schools and paying taxes for quality government often costs less than in metropolitan areas on either coast. Other residents have chosen Evergreen because of its proximity to Denver. They enjoy all the big city has to offer – international museum exhibits, national sports competitions, world-class restaurants – but prefer to live in this tranquil mountain community. If Evergreen’s lifestyle appeals to you, come and visit us. Be assured, Evergreen will welcome you.

Arts & Entertainment

Talent blooms like wildflowers in Evergreen. Several longstanding organizations provide outlets for the talents of local artists, thespians, singers, and musicians.
For four decades, the Evergreen Players have performed musicals, comedies, and dramas. The amateur troupe, consisting primarily of local residents, stages eight plays each year.
The Evergreen Chorale, made up of 75 members, has performed locally for more than two decades. The chorale stages conventional and holiday concerts as well as two musical productions each year.
The 45 member Evergreen Chamber Orchestra performs to standing-room-only crowds at four concerts each year. The orchestra also breaks into ensembles to stage intimate musical events hosted in local homes.
The Evergreen Artists Association is the largest and best known arts group in the area. The association consists of painters, sculptors, photographers, and craftspeople from throughout the area. The association also sponsors the ever popular annual Fine Arts and Fine Crafts Fair, in addition to small exhibitions, and arts and crafts classes.
Evergreen also is home to the famed Little Bear nightclub, which regularly features national musical acts as well as talented local musicians.
Mountain Community Handbell Coalition is an organization of hand bell choirs from the areas of Genesee, Lookout Mountain, Bergen Park, Evergreen, Marshdale, Aspen Park, and Conifer. The group sponsors "bRing in the Holidays," an annual hand bell workshop and concert for the community. Hand bell choirs from mountain area schools and churches participate in this traditional musical event held in December. For more information, contact Marva Baldwin at 303-674-2460.

Lodging with Bed & Breakfast, Cabins, Hotel

The Evergreen area community is abundant with charming Bed & Breakfasts, cabins, and hotel/motels. Our lodging facilities are nestled within the pine forests and many are enjoy the rippling waters of the streams that flow from Mt. Evans and the continental divide.
Click here for lodging information

Parks

Denver Mountain Parks
Denver Mountain Parks were purchased in the early 1900's by the city and county of Denver. Several of them are located in the Evergreen area and are primarily used for picnicking for large or small groups.
Bergen Park, located just south of I-70 on Evergreen Parkway
Bison & Elk herd on both sides of I-70 at the Genesee exit (#252)
Corwina Park, located about 3 miles south of Evergreen on Hwy 74
Dedisse Park, north of Evergreen Lake on Evergreen Parkway
Dillon Park, in south Evergreen on Brook Forest Road
Fillius Park in north Evergreen at Evergreen Parkway and Bergen Parkway
O'Fallon Park, 2 miles south of Evergreen on Hwy 74 along Bear Creek
Pence Park, in Indian Hills on Parmalee Gulch
Red Rocks Park and natural amphitheater, 9 miles south of Evergreen, near Morrison.
Visit the Denver Mountain Parks website for more information.
Jefferson County Open Space Parks
Jefferson County Open Space Parks are areas of land set aside in Jefferson County for outdoor, day time recreation, including picnicking, hiking, biking, horseback riding, cross-country skiing and snow shoeing. The following are several of the parks in the Evergreen area:
Alderfer/Three Sisters near downtown Evergreen, on Buffalo Park Road
Elk Meadow located 5 miles south of I-70 on Evergreen Parkway
Meyer Ranch on Hwy 285 in Aspen Park/Conifer
Lair o' the Bear, along Bear Creek, about 4 miles south of Evergreen on Hwy 74
Mt. Falcon Park in Indian Hills, off Myers Gulch/Parmalee Gulch

Recreation

The focal point of the community is a sparkling blue mountain lake that offers year-round fishing, boating in the summer and ice skating in the winter. In addition to the lake, the Evergreen Park and Recreation District maintains a year-round swimming pool, gymnasium, racquetball and handball courts, and other recreational facilities both indoor and outdoor. Also available in the Evergreen area are numerous hiking and mountain biking trails and two golf courses. Several of Colorado's best ski areas are also available within a one hour drive.

Senior Services

Support services for the senior citizens in the mountain area are provided by the Seniors' Resource Center, 5120 Hwy 73, 303-674-2844. The center offers social and educational programs as well as legal aid, health screening, tax and energy assistance, transportation, counseling, and home visiting and referral. SRC/Mountain Services Web Site: www.srcaging.org/mountainservices.html

2009 Fall Wine Tasting Event

2009-09-14T10:56:00.000-07:00

The 2009 Fall Wine Tasting is taking place on
Saturday, November 7, 2009 at The Meadows at
Marshdale, 6851 Hwy 73, Evergreen, Co.
from 6 to 9 p.m.
The Event’s Organizing Committee has begun to
meet regularly and still seeks interested volunteers,
sponsors, door prizes and silent auction items.
2009 Fall Wine Tasting Sponsor Levels
Presenting Sponsor
Champagne Level $1,000
Presenting Sponsor acknowledgement on all promotional
material
Prominent Logo included on all promotional material
8 Tickets
“Hosting” signage on site, provided by sponsor
Table Sponsor Status
Bordeaux Level $500
Prominent Logo included on all promotional materials
6 tickets
Table Sponsor Status
Chardonnay Level $250
Printed Name included on all promotional materials
4 tickets
Table Sponsor Status
Merlot Level $100
2 tickets
Name Inclusion on promotional materials
Ticket Prices
From now until October 1st: $20 each or 2 for $35
October 2nd until November 6: $25 each or 2 for $40
At the Door: $30 each or $45 for two
If you would like to sponsor, donate, or volunteer please
call the office at 303-838-5711

Denver ranks third in June, shows Case-Shiller

2009-08-26T13:44:00.000-07:00

The Denver metro area’s housing market ranked third in the nation, with homes losing 3.6 percent of their value in the year ending in June, according to the S&P/Case-Shiller Home Price Indices released today.
The Case-Shiller report, perhaps the most most closely followed and most influential real estate index, showed that once again, Denver did far better than the top 20 metropolitan areas in the index, which overall showed a one year dive of 15.4 percent. That, however, is an improvement, too.
Only Dallas, with a 2.2 percent decline, and Cleveland, with a 3 percent drop, showed smaller one year changes than Denver. Since January 2000, overall Denver-area home prices have appreciated almost 27 percent. You can see how Denver stacks up to the other 19 cities in a subsequent blog I wrote today.
The S&P/Case-Shiller U.S. National Home Price Index – which covers all nine U.S. Census divisions – recorded a 14.9% decline in the 2nd quarter of 2009 versus the 2nd quarter of 2008.
“While still a substantial negative annual rate of return, this is an improvement over the record decline of 19.1% reported in the 1st quarter of the year,” the report notes. “The 10-City and 20-City Composites recorded annual declines of 15.1% and 15.4%, respectively. These are also improvements from their recent respective record losses of -19.4% and -19.1%.”
“For the second month in a row, we’re seeing some positive signs,” says David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s. “The U.S. National Composite rose in the 2nd quarter compared to the 1st quarter of 2009. This is the first time we have seen a positive quarter-over-quarter
Both the 10-City and 20-City Composites posted monthly increases, as did most of the cities. there are hints of an upward turn from a bottom. ..However, some of the hardest hit cities, especially in the Sun Belt, show continued weakness.”
As of the 2nd quarter of 2009, average home prices across the United States are at similar levels to what they were in early 2003, according to the report. From the peak in the second quarter of 2006, average home prices are down 30.2%.
The 10-City and 20-City Composites posted their second consecutive monthly increases.
Both indices were up 1.4% in June over May, and up 0.5% in May over April. Eighteen of the 20 metro areas saw improvement in their annual returns compared to those of May. Looking at the monthly data, the same 18 metro areas reported positive returns in June.
In spite of the recent positive data, the overall numbers remain weak, with all metro areas and the two composites posting negative annual returns, and 15 out of the 20 metro areas reporting double digit annual declines.
While not alone, Las Vegas and Detroit continue to be two markets that are struggling severely.
These are the only two markets that fell in June and saw deterioration in their annual rates of return.
Since their relative peaks they have fallen 54.3% and 45.3%, respectively.
More upbeat news is seen in the monthly data across other markets; Dallas and Denver have reported four consecutive months of positive returns. In June, Denver showed a 2.5 percent gain, compared to a 1.4 percent overall gain for the 20 cities. Six cities in the index out-performed Denver and 13 improved less.
In addition to the two composites, 13 of the MSAs reported positive monthly returns for June that were greater than +1.0%.

Louisville - Best Place to Live

2009-07-20T13:26:00.000-07:00

Louisville, Colorado Named CNNMoney.com’s Best Places to Live
And Superior wasn’t too far behind…

Well not to brag, but we all know Colorado is an amazing place to live. Our sports. Our activities. Our beautiful scenery. Our thriving economy. Tourism. It’s rare that you find such a remarkable combination but once again, Colorado is making its place on the national map.

Earlier this week, CNNMoney.com released its top 100 list of best places to live and topping the list in the number one position was Louisville, Colorado. Check out this link: http://money.cnn.com/magazines/moneymag/bplive/2009/snapshots/PL0846355.html. The article reported, “It's also weathering the economic downturn well. Robust industries in the area, such as high tech, energy, and health care, make county unemployment among the lowest in the state.”

Superior, Colorado wasn’t too far behind in the number 13 position. Check out this link: http://money.cnn.com/magazines/moneymag/bplive/2009/snapshots/PL0875640.html.

Also interesting to note this week if a Realty Times article which provided some insight into a rebounding market. Here are the highlights:

Pending home sales rose sharply, by nearly 7 percent, in the last month measured by the National Association of Realtors.
Pending sales were up in all four major regions of the country—and that caught the attention of some key industry economists.
Orawin Velz, economic forecaster for the Mortgage Bankers Association, said in a commentary that "the steady improvements in pending home sales are encouraging," and confirm the view that existing home sales hit their cyclical bottom in January and are likely to continue to rise in the coming months.
Since the January low point, she noted, the Realtors' pending sale index is up by 13 percent.
Mortgage rates continue to be favorable, an average of 5.3 percent last week for 30 year fixed rate loans, 4. 8 percent for 15 year fixed, and those rates are pulling in growing numbers of home purchase loan applications.
According to the Mortgage Bankers Association's weekly survey, new applications to buy houses increased by nearly 7 percent in the week ending July 3rd.

The Birds and the Bees "Buyer Talk"

2009-07-08T06:54:00.001-07:00

I recently referred a buyer out to my partner. She has been calling me for about a year. I would hear from her every couple of months when she would have a question on real estate. She was back and forth with her decision to buy a home and decided a couple of months ago to take the dive. I was happy for her that she had finally made her choice. BUT, my plate was full. I was working with quite a few buyers at the time she called me and I knew I wouldn't be able to give her the attention and care she needed so I decided to refer her to my right hand man in real estate because I knew he would take good care of her.
My partner would call me on updates on what they were doing and I'd check in with her from time to time to see how she was doing. Her road has been an emotional one. She found a home pretty quickly, submitted an offer, and it was accepted. Problem: the listing was a short sale and shortly after the agreement was signed, the seller decided she wanted to keep her home and her bank granted her a loan modification.
A few days passed by and she found another home, an offer was submitted and rejected because the seller accepted a higher offer.
After a couple more disappointments, she calls me and tells me how discouraged she was getting with this process and how it was so emotionally draining. Then I had an "Ah haaaaaa" moment. I referred out but hadn't had "THE TALK" with her.
*I make sure to have "THE TALK" with all of my buyers.*
I told her that since we hadn't gone out together, I hadn't had the chance to have "THE TALK" with her like I have with all of my other client's on our first outing. She says to me, "Well what's that?" Then I began to give her the talk:
"Ok, I'm just going to give it to you real here. This is not meant to scare you but to prepare you. This process can be a bitch at times and at times it can be your best friend. I tell this to everyone so when these ups and downs come, you're well prepared and you're expecting it. This search can get on your nerves. What you're going through is typical and honey, you ain't seen NOTHIN' yet. I've seen worse. I sometimes like to liken this process to labor. It can suck and take you through all types of pain and the best part about it is the birth at the closing table. You get anxious. You get emotional. No matter how thorough and proactive we are, a wrench can come from any direction and knock you off your square. You can have your eyes set on a house and your offer can get rejected. You can have your eyes set on a house and be in contract and then the inspection comes and unveils a bunch of issues that you never expected. And while we can simply ask the seller to make repairs, they can and sometimes will give us hell about them. There can be issues with the title. And let's not talk about the bank who can wait until the last minute to drop a bomb that that you may or may not be able to recover from which is why I always give the advice to always have more money than is expected for closing costs for those little "just in case moments". Now once, again, I don't mean to scare you but I need to make sure to prepare you."
Her reply, "Wow, I never knew. So what I am going through is typical?" "Yes ma'am," I said to her.
A couple weeks later when she started to get discouraged because she hadn't found anything else to her liking yet, she called me and thanked me for "THE TALK" because had she hadn't heard my brutally honest talk, she would've thrown in the towel in her search.
What I find is that my talk, though brutal, is effective. Every time a buyer faces a challenge, I get the same response, "You told me to be prepared for these things. I'm glad you did."
So, back to my original question, do you have "THE TALK" with your buyers?

2009-02-17T07:53:00.000-08:00

We are all worried about the real estate market if we listen to the national news. I thought it best to let the people in our local area Pine, Conifer, Morrison, Bailey and Evergreen know that it is not so grim for us. Our sales have remained stable on the lower end and on the higher end sales are being effected by the mortgage market and the unavailability of jumbo loans for most people. Also, first time home buyers are now eligilble for a credit of 10% of the purchase price up to $8000 on their taxes as long as they buy a home between 1/1/09 and 12/31/09. This should help those buyers out there who are unsure whether or not to buy a home. Take a look at what is available on our website www.early-group.com.

IT"S PASSED!! NOW WHAT?

2009-02-16T08:59:00.001-08:00

A compromise on the Economic Stimulus Package has been reached. The new price tag: $787 billion. That’s below both the $820 billion House-passed version and the $838 billion Senate-passed version.

Just like with anything in life, the final package is all about compromise. Real estate advocates from NAR and Realogy President Richard Smith lobbied well on our behalf but in the end only a portion of the requests we had of lawmakers were made part of the final Economic Stimulus Package.

I am encouraged that lawmakers have now reached an agreement and we can finally move forward with some direct action.

The goal of the highly controversial Economic Stimulus Package is to create or save some 3.5 million jobs while helping to rebuild our nation’s economy which has been in a recession since December 2007. Although, at the writing of this piece, the details of the legislation had not been finalized we do anticipate a number of important housing provisions, including (as reported by NAR):

“Homebuyer Tax Credit – a $8000 tax credit that will be available for qualified purchase of a principal residence by a first time homebuyer between January 1, 2009 and December 1, 2009. The credit does not require repayment. Individuals who purchase in 2009 using financing assistance from state and local mortgage bonds will be permitted to use the credit, as well. Click here for a chart with details on the first-time home buyer tax credit: http://www.realtor.org/wps/wcm/connect/b32db1004d05f6338052c5fd73e5610f/government_affairs_tax_credit_chart_021308.pdf?MOD=AJPERES&CACHEID=b32db1004d05f6338052c5fd73e5610f
FHA, Fannie and Freddie Loan Limits – Revised loan limits for FHA, Freddie Mac, and Fannie Mae. Specifics have not been released but reports indicate that the 2008 limits have been reinstated for 2009 except in those communities where the 2009 limits are higher. Additional increases in individual communities may also be available at the discretion of the HUD Secretary.
Foreclosure Mitigation & Neighborhood Stabilization – Funding for states and local communities to be used for neighborhood stabilization activities for the redevelopment of abandoned and foreclosed homes are authorized.”

In addition to these new elements, NAR continues to work with the Department of Treasury to implement a mortgage buy-down program. The details on that will surface over the next several weeks.

To view all of the housing provisions, click here: http://www.realtor.org/government_affairs/gapublic/uae_hr1_additional_provisions

So what’s next? President Obama is pushing to get quick approval of the emergency package so he can sign it into law before the end of this three-day holiday weekend.

Once it is signed into action, Washington is eager to get the funds into the local state governments and ultimately the local economies so they begin to directly affect Main Street. Consider reading this article from CNN with more details on the package itself: http://money.cnn.com/2009/02/13/news/economy/stimulus_individuals/index.htm?postversion=2009021308

There’s no question, it will take several weeks—if not months—before we begin to see some patterns or trends and for this package to have a full impact on our economy. But I am gratified that the government recognized the importance of passing the Economic Stimulus Package. The health of the nation’s housing market is critical to the financial well being of every household in the country and that, of course, is front and center right here at home. I believe the legislation will help to stabilize the housing market, at a time when our country needs it most.

IT"S PASSED!! NOW WHAT?

2009-02-16T08:59:00.000-08:00

Economic Stimulus Package Could Bring Big Benefits For Real Estate Sector

2009-02-06T08:51:00.001-08:00

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

To learn more about the status of the Economic Stimulus Package, click here: http://www.reuters.com/article/politicsNews/idUSTRE5136U320090204?virtualBrandChannel=10112

As of now, the Economic Stimulus bill is winding its way through the U.S. government, pushed by Demographic leaders who want to present President Obama with legislation he can sign by-mid February.

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

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

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

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

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

Is it too early to Call It a Trend?

2009-01-30T12:06:00.000-08:00

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

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

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

Here at home, the sales news only gets better. Earlier this week, we released our December luxury home sales release—which was picked up by countless news media outlets:

http://www.wilmington.dbusinessnews.com/shownews.php?newsid=175342&type_news=past

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

Among the top findings in the report:

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

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

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

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

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

Conifer, Colorado Real Estate is up this week. If you are looking for Conifer, Pine, Bailey, Morrison or Evergreen Real Estate see us at www.Early-Group.com.

Change in Mortgage Limits

2009-01-29T10:48:00.000-08:00

It’s Time to Pick Ourselves Up and Dust Ourselves Off…Yes We Can!

Regardless of your political persuasion, Tuesday’s inauguration of the 44th President of the United States was one for the history books and I think we all agree that we hope that the change President Obama has promised will come sooner rather than later.

In the words of our new President during his inaugural address, “Starting today, we must pick ourselves up, dust ourselves off and begin again the work of remaking America. For everywhere we look, there is work to be done. The state of the economy calls for action, bold and swift, and we will act—not only to create new jobs, but to lay a new foundation for growth.”

There’s no question, Obama has his work cut out for him. This week CNN reported, “The scope and intensity of problems facing President Obama are similar only to those that Franklin D. Roosevelt faced in 1933.”

Obama is expected to hit the ground running. History shows that the first year of a President’s term is most critical. At some point, he will own the problems he has inherited and so time is of the essence; he knows he must take immediate action.

In the short run, Obama has pledged to work with Congress to implement aggressive policies—including as I referenced last week, making better use of the TARP funds—to prevent foreclosures and strengthen existing home sales. With the second half of the TARP funds now available to him (totaling some $350 billion) we should see the beginning use of those dollars sometime within his first 100 days in office. Obama has promised to devote $50 billion to $100 billion to a new foreclosure prevention program, leaving him between $250 billion and $300 billion of TARP money to address the continuing credit crisis.

As Obama was being sworn in, the world as we know it continued. One of the current issues most affecting our market is the drop in mortgage loan limits for conventional financing as of the end of 2008. This is dramatically hurting home sales and trade-up activity in higher price ranges. According to NAR, “The latest existing home sales data shows transactions under $400,000 are 3 percent below a year ago. However, sales of homes priced at $750,000 or more have declined a whopping 47 percent.” Buyers who need jumbo mortgages must pay interest rates that are nearly 2 percentage points higher than conventional financing; as a result, the high-end market is very slow and buyers in higher price ranges are at a severe disadvantage.

Currently NAR is pushing for the permanent increase of mortgage loan limits to that $729,750 cap. According to a statement released this week by NAR, “To illustrate in dollar terms if mortgage limits are permanently raised to $729,750…the mortgage payment on such a loan would drop by $942 per month by lowering interest rates 2 percentage points. Over the life of a 30-year loan, the homeowner would save $338,000.”

Especially here in our market, we need the increased loan limits so people in all prices are able to purchase. I am a firm believer that every segment of the housing market needs a turnaround to spark an overall housing recovery.

With this information in tow, let’s take a look at this week in real estate, including the release of our January luxury home release—which will be distributed to Colorado media today: http://www.myrecafe.com/accessible/viewDocument.aspx?documentID=5560.

You can see our selection of homes at www.early-group.com.....

2009-01-14T15:29:00.001-08:00

Happy New Year! It certainly is nice to be back and full swing into work. The holidays of course are great but oh how I miss the energy, enthusiasm, excitement—and who could forget the 200 e-mails a day—that our day-to-day business brings.

Now that 2009 has begun, by far the most common questions I get are: “When will this recession be over?” and “When will the housing market begin to rebound?” Now as much as I would love to, I don’t own a crystal ball but what I can offer is my own personal weigh in on what I see as the future for our market.

First, let’s look at the economy. Anyone who believes that the economy will completely rebound in 2009 is probably in a fantasyland. Without a doubt, President-elect Obama has his work cut out for him when he enters office in less than two weeks. Many experts agree that the year ahead will bring an increased jobless rate, a contraction in the economy, a dip in consumption and (in some areas of the country) a drop in sales prices.

The picture seems bleak, doesn’t it?

Well, without sounding too much like I’m wearing rose colored glasses, there are a lot of positive signs that our market is heading in the right direction.

For starters, our new administration is committed to fixing the economy. President-elect Obama and his economic team are in the process of developing an economic recovery plan designed to help Main Street and Wall Street with an ultimate goal of creating 2.5-3 million jobs while rebuilding our infrastructure, improving our schools, reducing our dependence on oil and saving billions of dollars. Speaking to a group to George Mason University in Fairfax, Va. Thursday, President-elect Obama said, “It’s a plan that recognizes both the paradox and the promise of this moment—the fact that there are millions of Americans trying to find work even as, all around the country, there so much work to be done,” he said.

Of course it won’t happen overnight and I think we all anticipate that much of 2009 will be focused on creating and implementing this recovery plan, but the positive news is that we are heading in the right direction for growth and prosperity with some experts predicting that by 2010 we could see as much as a 1.5% growth in our economy.

Cyndi Early
www.early-group.com
303-748-3838