Denver Colorado Real Estate

Hess Road to Connect Parker to I-25

From the Parker Chronicle:

The opening of another east-west road connection between Interstate 25 and Parker is expected to reduce the burden on the highway’s interchange with Lincoln Avenue.

After a nearly two-month delay, Hess Road will open to vehicle traffic around 11 a.m. Jan. 24 following a grand opening ceremony at the Castle Pines Community Center. The $19.3 million transportation project completes a link that will lead from Hess Road’s dead-end just west of Chambers Road to the existing Castle Pines Parkway interchange on I-25.

Read the entire article here.

Yes, I am excited.  Another option to get from Parker, Colorado to I-25 that does not include Lincoln.  I know Ridgegate Parkway is already open, but I think adding this other main east-west artery will really help alleviate the congestion that Lincoln can recieve during rush hour.  Glad to see it open here shortly. 

 

New Home Buyer Webinars Added for 2012 in the Metro Denver Area

Thinking about buying a home here in the metro Denver area in 2012 - check out a free home buying webinar so you are up to speed on how the process works.

Home Buyer Webinar

Sit back and relax from the comfort of your own home as I describe in detail the Home Buying Process - all you need is a computer and speakers. From "Thinking about Buying a Home" all the way to "The Closing Table", I will walk you through all the steps necessary to purchase your own home. Have a question during the webinar? Just ask it and I will address it in real time.*

Topics Discussed in the Webinar

• The different types of financing products and how to get the most out of them
• Why being pre-approved versus pre-qualified can make a big difference
• How to navigate your own IDX MLS site and effectively search for properties
• Learn about the new 2012 Colorado Real Estate Contracts
• Learn step by step how a Colorado Real Estate Contract works
• Learn what will be expected of you during the home buying process
• How to make offers on homes
• Who are the major sellers out there right now
• Learn how to save money by becoming savvy about buying a home

And much more....

January Home Buyer Webinars (See Below to Join Webinar)

Date	Time	Registration Link
Monday, January 23, 2012	7:00 – 8:00 PM (MST)	Register
Monday, January 30, 2012	7:00 – 8:00 PM (MST)	Register

 

February Home Buyer Webinars (See Below to Join Webinar)

Date	Time	Registration Link
Monday, February 06, 2012	7:00 – 8:00 PM (MST)	Register
Monday, February 13, 2010	7:00 – 8:00 PM (MST)	Register
Monday, February 27, 2012	7:00 – 8:00 PM (MST)	Register

 

March Home Buyer Webinars (See Below to Join Webinar)

Date	Time	Registration Link
Monday, March 05, 2012	7:00 – 8:00 PM (MST)	Register
Monday, March 12, 2012	7:00 – 8:00 PM (MST)	Register
Monday, March 26, 2012	7:00 – 8:00 PM (MST)	Register

 

April Home Buyer Webinars (See Below to Join Webinar)

Date	Time	Registration Link
Monday, April 02, 2012	7:00 – 8:00 PM (MST)	Register
Monday, April 09, 2012	7:00 – 8:00 PM (MST)	Register
Monday, April 23, 2012	7:00 – 8:00 PM (MST)	Register
Monday, April 30, 2012	7:00 – 8:00 PM (MST)	Register

 

If there are conflicts with times and/or dates, please do not hesitate to call me and I will set you up for a one-on-one Webinar.

To Register for a  Webinar:

1 . Click on "Register" to the right of the date / time that works best for you.
2.  Fill out the basic registration information.
3.  You will receive a confirmation e-mail with instructions on how to join the webinar.
4.  You will also receive an e-mail shortly before the webinar starts with the same instructions on how to join the webinar.

Any questions, please call me at 303.520.8700.

* I am not able to offer advice regarding real estate transactions that you presently may be in as that is a breach of agency law in Colorado. I will use hypothetical situations as the basis of my webinar.

Sean Patrick Reilly
Double Major - Real Estate and Construction Management - University of Denver '91
Cherry Creek Properties
seanre@msn.com
303.520.8700

Highlands Ranch Community Association (HRCA) Looking to Enhance Women's Sport Leagues

From the Highlands Ranch Community Association:

The HRCA is looking to enhance their women's sports leagues.  Like them on Facebook and vote in the women's sports poll. 

Here is a great chance to voice your opinion.  I have competed in many men's sports leagues with the HRCA over the years and they do a great job.  Take a moment and let them know what you'd like to see.

30-Year Mortgage Rates hit 3.88%

From MarketWatch.com:

WASHINGTON (MarketWatch) - The average rate on the 30-year fixed-rate mortgage ticked down to a record low of 3.88% in the week ended Jan. 19 from 3.89% in the prior week, Freddie Mac said Thursday in its weekly report. These data go back to 1971. A year ago, the 30-year rate was at 4.74%. "Mortgage rates were nearly unchanged this holiday week" amid mixed economic reports, said Frank Nothaft, Freddie's chief economist, in a statement.

Read the entire article here.

Good news for those of you looking to buy a home in the Metro Denver area.  Hopefully these rates will hold steady at the lows for awhile.

The Week in Review (Ending January 13, 2012)

From Fidelity National Title:

The Week in Review

MONDAY, January 9th
Consumer credit outstanding increased by $20.4 billion in November compared to market expectations for a $7.0 billion gain. The increase was led by a $14.8 billion surge in non-revolving credit balances, like car loans though revolving credit balances such as credit cards increased by $5.6 billion as well. The heavy use of credit in November was consistent with strong retail and vehicle sales during the month. Pent up demand and the holidays coincided with consumers willingness to use credit to spend. The debt to disposable income ratio is now only slightly above its low point of May 2011.

TUESDAY, January 10th
The NFIB small business confidence index rose to 93.8% in December from a reading of 92.0% in November. This was the fourth monthly gain in the index which suggests small business owners are feeling a bit better about the economy and their prospects for expansion. Bear in mind that recent gains are from exceptionally low levels and that plans to hire and current job openings decreased on the month.

WEDNESDAY, January 11th
The MBA mortgage applications index rose 4.5% to 663.1% for the week ending January 6. Purchase applications were up 8.1% on the week but were 8.0% lower than their year ago level. Refinance applications were up 3.3% last week and were 60.4% higher than last year. Even with the gains, total mortgage application activity remains range bound as it has been for the past two years; it is now in the middle of that range. Application activity though improved remains weak.

The FOMC survey of economic activity in the 12 Federal Reserve banking districts, called the beige book showed that the economy continued to expand in November and December at a modest to moderate pace. Consumer spending, travel, tourism, nonfinancial services and manufacturing activity continued to improve while conditions in the housing market and commercial construction remained very weak. Loan demand improved slightly along with credit quality. Price pressures were mostly contained while a weak labor market kept wage pressures in check. This summary reaffirms stronger economic growth in the fourth quarter however, the Fed will continue to maintain an accommodative stance and keep the door open for additional measures to support the recovery as necessary.

THURSDAY, January 12th
Jobless claims rose 24k to 399k for the week ending January 7. The bump in initial filings was larger than estimated but expected after the temporary holiday hiring season. Claims remain under the 400k level indicating little net change overall, in labor market conditions.

Retail sales slowed in December, gaining just 0.1% but November sales were upwardly revised to a 0.4% gain from 0.2% originally. Some of December’s weakness was related to heavy discounting. Retail sales are now 6.5% above their year ago level. Auto dealers, furniture, building supply, drug, clothing and sporting goods stores all posted gains last month while sales declined at gas stations, electronics and general merchandise stores. The outlook is for consumers to continue to spend very modestly going forward with weak consumption possibly being a drag on Q1 GDP.

Foreclosure filings nationwide declined 8.4% in December and were down 20.5% from December one year ago according to RealtyTrac. Two of the three stages, pre-foreclosure and auction declined 18.6% and 11.6% respectively in December from November while bank REOs increased 10.1% on the month. The holiday season probably slowed processing at earlier stages of processing. Foreclosure activity is expected to pick up in the months ahead as servicers continue to work through documentation and procedural bottlenecks.

FRIDAY, January 13th
The international trade deficit on goods and services rose to $47.8 billion in November from a $43.3 billion shortfall in October. The wider trade gap in November was a result of a 1.3% increase in imports, related to higher petroleum prices and volumes while exports decreased 0.9% mainly due to weakness in Europe. Despite the widening, net exports will be largely neutral to Q4 growth after making a modest contribution to Q3 GDP.

So, two pretty solid weeks of decent/good news and this week kind of points to a slow down to me.  I knew jobless claims would rise, but we are now back to the 400K level again.  Will we hold a touch under, or are we going to see what we did in 2011?  Jobs are key to this recovery and while I know a lot of the hiring was seasonal, I had hoped that it was the start of a shoring up of the jobless claims under 400K.  Foreclosure are down, but has this really been caused by procedural bottlenecks?  I guess that we shall see in March or April if this was just a pause, or a trend?  The NFIB small business confidence index is good, but all of the good numbers seem to come with a caveat.  I'm still hopeful, but we need jobs!!!

30 Fixed Mortgage Rate Matches All Time Low

Read the article on Realty Times by clicking here.

Rates are still good.  How long will they remain here - that is the question?

Information Regarding Mortgage Interest Deductions

From House Logic:

Deducting mortgage interest is a great tax benefit that can make home ownership more affordable. Your first mortgage isn’t the only loan that qualifies, either. In many cases, you can also deduct interest on home equity loans, second mortgages, and home equity lines of credit, or HELOCs.

If you want to deduct all of your mortgage interest, there are limits on both how much money you can borrow and on what you do with the money you get. You also need to itemize your return to reap the benefits of these deductions. Calculations can be complicated, so consult a tax adviser.

Read the entire article.

As always, when dealing with taxes, it is best to consult with a CPA before taking anything you read at face value.

The Week in Review (Ending January 06, 2012)

From Fidelity National Title:

The Week in Review


MONDAY, January 2nd

NEW YEARS DAY Observed
All Markets Closed

TUESDAY, January 3rd

Construction spending jumped 1.2% in November led by a 2.0% gain in private residential investment. Surprisingly, spending for public construction projects also rose 1.7% on the month. Private nonresidential construction spending was flat. Construction spending is now 0.5% above its year ago level, its first annual increase in 48 months. Recent gains suggest that construction spending will contribute positively to Q4 GDP, and if sustained, would signal better times ahead for the construction industry.

The ISM manufacturing index rose to 53.9% in December from a reading of 52.7% in November. The level of the index suggests that manufacturing activity continued to expand moderately last month. Details in the data showing stronger new orders, production and employment indicate some momentum in the sector heading into the New Year.

WEDNESDAY, January 4th

The MBA mortgage applications index fell 4.1% to 634.5% for the week ending December 30. The purchase index declined 9.6% on the week and is now 18.0% below its year ago level. The refinance index was down 2.5% last week but is up 63.0% from last year. Refinance activity is trending modestly higher as rates trend lower. Contract rates fell again last week, with the 30-year fixed down 3 bps to 4.07%.

Motor vehicle sales edged 0.5% lower in December to an annual rate of 13.6 million units. Despite the decline last month, vehicle sales were much stronger in Q4 over Q3 which will add significantly to fourth quarter growth. U.S. automakers posted strong sales results in 2011; Chrysler was up 24%, GM gained 13% while Ford rose 9% on the year.

THURSDAY, January 5th

Jobless claims fell 15k to 372k for the week ending December 31. After popping up in the prior week claims have now moved back to their mid-December lows. The level of claims indicates some minor improvement in labor market conditions. Initial claims averaged 459k a week in 2010 and 409k a week in 2011, a clear indication that the pace of layoffs has slowed. The missing piece in full labor market recovery of course remains the pace of hiring.

The ISM non-manufacturing survey rose to 52.8% in December from a reading of 52.0 in November. The current level of the index indicates that the service sectors of the economy are growing modestly, consistent with recent improvement in the broader economy.

FRIDAY, January 6th

Payroll employment increased by 200k in December better than economists expectations for a 150k gain. Strong private sector job creation of 212k was only mildly offset by government job losses of 12k during the month. The fairly upbeat jobs report is consistent with other data that showed that 2011 ended on a strong note. Over the past twelve months, the private sector has added 1.920 million jobs while state and local governments have shed 244k. That is an unofficial average of around 140k jobs a month for all of 2011, which is solid given the bumpy road to recovery. Separately, the unemployment rate fell to 8.5% from 8.7% previously due to continued declines in the labor force.

Could this be the start of something good?  I certainly hope so, but we'll need to see some continued improvement in the coming months before I start to feel like a recovery is on the way.  I do like the downward trend on the jobless claims, but really want to see if that is a seasonal blip, or something that can gain traction.  All in all, semi-good news which beats bad news any day.

Metro Denver Real Estate Market gets some Positive National Exposure

Greg Rand, CEO of Own America has some good words for the metro Denver Real Estate Market.

 

 

Nice to see Denver get a positive mention in the national news.  It truly is a beautiful place to live - yesterday, January 5th, 2012, the weather was in the low 60's without a cloud in the sky.  The perfect weather brought out all of the cyclists, runners and hikers.  A perfect day for January.

Good News in Home Sales

From Realtor Magazine:

NAR released its latest pending home sales index figure last week and for the second month in a row the index is up. But more than that, the index has broken 100. This is significant because the only time since the housing boom collapsed that the index has broken 100 is when the home owner tax credit was in effect. The fact that the index has returned to that level a year since the credit has been in effect means the housing market is strengthening completely on its own, without any stimulus.


Read the entire article here.

Some more good news - that is what we need to see to get this real estate market back to a healthy state.  This, coupled with the jobless number around 372K is good news for the economy as a whole.  I do hope it continues.  Also of note, as mentioned in the article, is that the real estate market is improving without any stimulus which is certainly good news.  I still think we need banks to loosen standards a little bit to allow responsible buyers to take advantage of all the bargain priced real estate out there.  Here's hoping that the good news continues and maybe we shall see a mini-recovery in the real estate market in 2012.

Metro Denver November 2011 Residential Real Estate Update

Please click on the video below to view my November 2011 Monthly Residential Real Estate update for the Denver Metro Area. 

Also, if you would like to receive the update in the mail, please send an e-mail to seanre@msn.com - include the address where you would like this sent and your name.

To view the video in it's larger size, click the 4 arrows in the bottom of the right hand corner of the video to bring it to full size.  It is easier to read the numbers when it is enlarged.

Below is a static page of the November 2011 Metro Denver Monthly Real Estate Update.  Double click on the image to increase the size and make it easier to read.

 

Pulte Sells Anthem Community to Wheelock Street Capital

From the Broomfield Enterprise:

After building more than 1,3000 homes in the Anthem Highlands and the nearby 55-and-older age-restricted Anthem Ranch community, PulteGroup Inc. last week announced it has sold its remaining interest in the northern Broomfield development to private real estate firm Wheelock Street Capital LLC.

The all-cash transaction was announced Dec. 29. It was for all of the remaining developed lots and undeveloped land in Anthem, a 1,700-acre master-planned community, which Pulte first announced in 2005. Terms and conditions of the transaction were not disclosed.

Deputy City and County Manager Kevin Standbridge last week told the Denver Post he met with PulteGroup and Wheelock before Christmas and learned of the transaction.

Read the entire article here.

I have sold up in the Anthem community before and had a great experience with the Pulte's sales staff.  Anthem is a great community with a lot of phenomenal amenities.  I don't get the impression that this sale will effect the community.

2 Ways to Boost Home's Energy Efficiency

From INMAN news:

Even in these days of belt tightening, installing replacement windows remains a virtual mania among homeowners. Take a walk through any suburb built before 1980, and you may find that half the houses no longer have their original windows. Alas, the usual replacements -- extruded PVC or "vinyl" windows -- are dismayingly easy to spot, what with their wavy, cellophane-like glass and glaring white plastic frames.

Read the entire article here.

I do agree that attic insulation is key in havng an energy efficient home as well as a solid performing furnace.  Windows can be nice, but are expensive and probably will not save you the money you thought they would.  Unless, you are upgrading from an extrememly sub-par single pane window.  But, the other factor that helps windows out is if they just don't open, or leave gaps when closed - there could be some good savings from upgrading these, not to mention how nice it is to be able to open a window that had been previously painted shut, or just would not function anymore.

Pending Home Sales Rise in November 2011

From Realtor Magazine:

Pending home sales continued to gain in November and reached the highest level in 19 months, according to the National Association of REALTORS®.

The Pending Home Sales Index, a forward-looking indicator based on contract signings, increased 7.3 percent to 100.1 in November from an upwardly revised 93.3 in October and is 5.9 percent above November 2010 when it stood at 94.5. The October upward revision resulted in a 10.4 percent monthly gain.

The last time the index was higher was in April 2010 when it reached 111.5 as buyers rushed to beat the deadline for the home buyer tax credit. The data reflects contracts but not closings.

Read the entire article here.

While it's great to see good news, I'd like to see a trend of good news that forms a solid base and gives us a jumping off point to start healing this real estate market.  Are we on the way?  I'm not sure yet, but if banks start lending again and jobs are created, it's a possibility.

Some Good Signs for the Real Estate Market

From Realtor Magazine:

Daily Real Estate News | Tuesday, December 27, 2011

Sales ticked up for existing homes and new homes, several real estate market indicators revealed last week, pointing to a housing market that may finally be entering recovery mode.

In the most recent report, the Census Bureau reported that the new-home market continued its rebound, with sales of new houses once again inching up last month. New-home sales rose 1.6 percent from October to November to an annualized rate of 315,000, and sales were up nearly 10 percent compared to November 2010.

The median sales price of a new home in November was $214,100, the Census Bureau reported, and the inventory of new houses nationwide decreased to a six-month supply at the current sales pace.

Read the entire article here.

Some good news.  I am hopeful this will continue as we enter 2012, but I am just not certain.  There is still a lot of bank inventory that we will need to deal with before we can start to see some decent appreciation.  We need to economy to stabalize and we need good solid jobs to become available.  Then, I think we have a chance to start moving forward and healing this real estate market.  But, I will take and/all good news I can get at this point.

Great News for Underwater Homeowners

From Chad Martin w/ Pinnacle Mortgage:

Great News For Underwater Homeowners - Changes to HARP Program Announced

You may have heard that President Obama plans to open up refinancing to more homeowners who are underwater. If you are wondering what this means...and if you can benefit...here are some facts to consider.

First, it's important to realize that the president's proposal is not a new program, but a revision to the current Home Affordable Refinance Program (HARP). However there is a big change: Now homeowners can refinance no matter how underwater they are! Before homeowners could only refinance if they were 25% or less underwater, and even then many banks only let people who were 5% or less underwater refinance.

Also, with the revision it's possible that an appraisal won't have to be performed, which is great news as this will save time and money. But this is only the case if Fannie Mae or Freddie Mac can electronically estimate the value through their valuation models.

Keep in mind that these updates to HARP apply only to people whose mortgage is currently secured by Fannie Mae or Freddie Mac...and whose loan was securitized by Fannie Mae or Freddie Mac prior to May 31, 2009. So the chances are that people who have refinanced since May 2009 will not qualify to refinance under the HARP revision.

As of now, the revisions to HARP have been proposed by President Obama and the Federal Housing Finance Agency (FHFA), which regulates Fannie Mae and Freddie Mac. This directive has been given to Fannie Mae and Freddie Mac and they now have until November 15, 2011 to give guidance and details regarding how these changes will be run.

To read more details, you can visit the FHFA Web site. And if you have any questions at all about what these changes mean or how they could impact you, call Chad @ 303.996.3116 or cmartin@pinnacle-mortgage.com .

Chad is a great mortgage broker and this program may be able to help some people out who are in a dire situation at this point.  Give Chad a call if you think this may be of benefit to you.

Bargains Abound - What Are You Waiting For?

From Realtor Magazine:

With low home prices and ultra-low interest rates, the housing market is offering “perhaps the best deals of a generation,” notes a recent article by Bloomberg Businessweek.

Since the housing boom of 2006, home prices have fallen about 31 percent. Also, mortgage rates have been hovering at record lows for the past few weeks (4 percent range or even lower on 30-year fixed-rate mortgages, according to Freddie Mac’s mortgage market survey).

“It’s hard to see the possibility of losing on a home purchase right now, with these mortgage rates,” says economist Dean Baker. “Prices may go lower, but not by much.”

Read the entire article here.

The basic question here and the one that I have been asking is "can you pick the bottom?"  And, that is really can you pick the bottom of the real estate market and also the bottom of the interest rate market.  Even if you do get lucky enough to buy your home at the bottom, are interest rates going to be at their bottom as well?  If you are paying say 1 point higher on your interest rate even at the bottom of the real estate market, are you getting the best deal?  On a $250,000 loan @ 4%, you will pay $1,194 per month.  At 5%, that same $250,000 is now $1,342 per month, or $148/ month higher.  Much like people have a tough time picking the bottom of the stock market, I think we are going to have the same problem with the real estate market.  I wish I had a crystal ball and could tell you the exact time to buy, but I just don't.  The bottom line, though, is that prices are low and interest rates are near historic lows right now, so what are you waiting for?

It's Time to Buy that House

From the Wall Street Journal:

Is it?  Jack Hough who wrote this article seems to think so.

U.S. house prices have plunged by nearly a third since 2006, and homeownership rates are falling at the fastest pace since the Great Depression.

The good news? Two key measures now suggest it's an excellent time to buy a house, either to live in for the long term or for investment income (but not for a quick flip). First, the nation's ratio of house prices to yearly rents is nearly restored to its prebubble average. Second, when mortgage rates are taken into consideration, houses are the most affordable they have been in decades.

Two of the silliest mantras during the real-estate bubble were that a house is the best investment you will ever make and that a renter "throws money down the drain." Whether buying is a better deal than renting isn't a stagnant fact but a changing condition that depends on the relationship between prices and rents, the cost of financing and other factors.

Read the entire article here.

Housing is now more affordable than it has been in years here in the Metro Denver area.  Prices have been beaten down and we have not seen interest rates this low in forever.  The biggest concern out there is whether or not prices will fall even more?  It's possible, but can you call the bottom?  You are not going to buy a home and make tons of money right out of the gate.  You are buying a home - a place to live for 3, 5, 7+ years, not a stock you can sell tomorrow or in 6 months.  If you are looking at buying a home now, you should get a phenomenal interest rate.  What if you can't sell in 5 years?  Rent that home out and buy another.  Based on what has happened here recently, there should still be a high demand for rental properties for the foreseeable future and why not have someone else pay your mortgage.  You will be locked into a very low payment and should be able to profit from renting down the road.  If you have any questions, call me at 303.520.8700, or start your search here.

Home Builder Sentiment Increases

From Business Week:

Oct. 18 (Bloomberg) -- Homebuilders in the U.S. were less pessimistic than forecast in October as near record-low borrowing costs and price decreases raised hopes the market will turn for the better over the next six months.

The National Association of Home Builders/Wells Fargo sentiment index climbed to 18, the highest level since May 2010, from 14 in the prior month, data from the Washington-based group showed today. Economists surveyed by Bloomberg News projected the measure would rise to 15, according to the median forecast. Readings below 50 mean more respondents said conditions were poor.

The Federal Reserve’s unconventional measures to boost demand and spur job growth combined with concern over the European debt crises have helped reduce mortgage rates, making buying more affordable. At the same time, the prospect more foreclosures will enter the market and unemployment hovering above 9 percent mean it will take a long time for any recovery to develop.

Read the entire story here.

A blip?  A bottom?  The start of something?  I still think we are a ways out for saying that we are recovered and only going up.  While it's good to see a bounce in new home builders, I am not convinced as of yet that anything significant has happened to really start turning things around.  I do hope that I am wrong, though.  Time will tell.

* Just Reduced Another $10,000 - Now $204,900 * Great Starter in Highlands Ranch *

New Price - Reduced $29,000!!! - Now $204,900. New roof  September 2011.  Brand new gutted kitchen with new stainless appliances including a built-in microwave.  Also, a new solid surface countertop and new maple cabinets w/ pull-out drawers.  New 3/4" brazilian oak hardwood floors thru-out main floor.  3 bedroom, 3 bathroom home. Kitchen is open to family room.  Nice, relaxing yard.  Quiet street with minimal traffic.  Access to all 4 Highlands Ranch recreation centers.  New carpet and much more.

 

www.549Arden.com

 

Search Metro Denver Area Real Estate Foreclosures Easily

Search all Metro Denver Area Real Estate for Sale

 

 

Sean Patrick Reilly

Cherry Creek Properties

303.520.8700

The New Real Estate Boom?

From an Opinion piece at Inman News:

Home prices and sales may be flat, but the rental industry is booming. The percentage of renters is on the rise, the number of households is increasing, and more Americans are downsizing, all of which point in a single direction: rents are on the rise.

At the peak of the housing boom, homeownership in America reached an all-time high at 69.2 percent. Today that number has plummeted to fewer than 67 percent, which may not sound like a huge drop, but that represents roughly 3 million households that were owner-occupied and are now tenant-occupied.

The high foreclosure rate has accelerated the transition toward leasing, but there are a myriad of other trends coalescing to boost demand for rental housing.

Read the entire article here.

This trend is true in the Metro Denver Real Estate Market as well.  There seems to be a plethora of investors out there with cash to spend on low to moderately priced homes in just about all pockets of the metro area.  With banks pricing many of their homes so well, it creates a bidding war on homes that you wouldn't expect in this depressed market.  But, it is happening and on a regular basis.  Some of these homes are turnkey and others need in the ballpark of $10-$20,000 to fix up and make rentable.  The upside of all this for investors is that they are seeing $300-$500 month profits on homes with 80% LTV.  The unfortuate side effect here is that potential first time home buyers looking for a bargain are now competing w/ cash investors, or extremely well qualified investors.  I don't see this ending anytime soon and with market being beaten up as they have been and interest rates at/near historic lows, payments on these homes haven't been lower in years.  Start your search for an investment property here and then give me a call at 303.520.8700 with any questions.

August Existing-Home Sales Leap Despite Headwinds

From Realtor Magazine:

Existing-home sales increased in August, even with ongoing tight credit and appraisal problems, along with regional disruptions created by Hurricane Irene, according to the NATIONAL ASSOCIATION OF REALTORS®. Monthly gains were seen in all regions.

Total existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, rose 7.7 percent to a seasonally adjusted annual rate of 5.03 million in August from an upwardly revised 4.67 million in July, and are 18.6 percent higher than the 4.24 million unit level in August 2010.

Lawrence Yun, NAR chief economist, said there are some positive market fundamentals. “Some of the improvement in August may result from sales that were delayed in preceding months, but favorable affordability conditions and rising rents are underlying motivations,” he said. “Investors were more active in absorbing foreclosed properties. In additional to bargain hunting, some investors are in the market to hedge against higher inflation.”

Investors accounted for 22 percent of purchase activity in August, up from 18 percent in July and 21 percent in August 2010. First-time buyers purchased 32 percent of homes in August, unchanged from July; they were 31 percent in August 2010.

Read the entire article here.

So, with all the bad news out there, we finally get a nationwide flurry of activity in the residential real estate market.  I do like that, but I need to see some follow through.  And now that we are heading into the fall months, I am not certain that we will see that - I do hope I'm wrong.  Properties do sell and sometimes there is a flurry at the end of the year, but nothing has really changed in the economy.  Mortgages are still tough to get regardless of how low the rates are and that just makes buying / selling of homes that much tougher.  Investors still remain out there in full force and are scooping up properties at bargain basement prices.  It's good to see a decent amount of first time buyers hit the market as real estate has historically been a great investment - it just may take a little longer to start realizing decent appreciation, but you need a place to live, right?  So, like I said, I like this, but really need to see some follow through before I start to jump on any bandwagons.  There are great deals out there still and I don't see that going away anytime soon.  Thinking about buying - start here.

Interest Rates Reach New Record-Lows Again

From Realtor Magazine:

For the second straight week, mortgage rates reached another milestone, with 30-year and 15-year fixed-rate mortgages hitting record lows again, Freddie Mac reports in its weekly mortgage market survey.

"Continued investor concerns over the state of the European debt markets kept U.S. Treasury bond yields low and allowed mortgage rates to ease once more this week,” says Frank Nothaft, Freddie Mac’s chief economist.

For example, home owners who refinanced at today’s 30-year fixed-mortgage rate could trim nearly $1,715 a year in interest payments on a $200,000 loan, Nothaft says.

Here’s a closer look at rates for the week ending Sept. 15.

30-year fixed-rate mortgages: averaged 4.09 percent this week, down from last week’s previous record of 4.12 percent. Last year at this time, 30-year rates averaged 4.37 percent.

15-year fixed-rate mortgages: averaged 3.30 percent, dropping from last week’s record low of 3.33 percent. Last year at this time, 15-year rates averaged 3.82 percent.

5-year adjustable-rate mortgages: averaged 2.99 percent this week, up slightly from last week’s 2.96 percent average. A year ago at this time, the 5-year ARM averaged 3.55 percent.

1-year ARMs: averaged 2.81 percent, down from last week’s 2.84 percent average. A year ago, the 1-year ARM averaged 3.40 percent.

By REALTOR® Magazine Daily News

One would expect that the refinancing world would be on fire at these rates, but even though business is up, we are not seeing record setting refinances.  Mortgage standards need to be relaxed a bit to allow people who are being left out to refinance.  It's just my two cents, but if people were able to save money on their mortgage and others were able to buy homes, this economy would be in a lot better position than it is right now.

The Week in Review (Ending September 16, 2011)

From Fidelity National Title:

The Week in Review

MONDAY, September 12th
The focus this week will be on inflation figures for August. Higher inflation of course erodes the return on Treasuries usually resulting in lower prices and higher yields. It will also be worth noting if the Fed has to contend with rising inflation at next week's policy setting session; if so, it would likely forestall another round of quantitative easing.

TUESDAY, September 13th
The government ran a budget deficit of $134.2 billion in August compared with a budget shortfall of $90.5 billion in August 2010. Calendar effects increased outlays by 19.2% last month. Receipts were up by 3.2% from their year ago level. Fiscal year to date the cumulative budget deficit totaled $1.234 trillion vs. a budget deficit of $1.260 trillion for the same period last year. With one month to go in this fiscal year, it looks like the deficit will total about $1.3 trillion roughly in line with FY2010.

WEDNESDAY, September 14th
The MBA mortgage applications index rose 6.3% to 638.7% for the week ending September 9. The purchase index increased 7.0% last week but remains down 7.0% on the year. The refinance index was up 6.0% on the week but is 23.5% lower than its year ago level. The gain in the index last week was probably related to another drop in rates. Contract mortgage rates fell with the 30-year fixed down 6 bps to 4.17%. Even with the gains last week, mortgage application activity remains relatively subdued.

Retail sales were unchanged in August less than an expected gain of 0.2%. Retail sales are now 7.2% above their year ago level but have slowed dramatically in recent months as spending appears to have hit a wall. Weakness was broad based across most categories except for an anomalous 2.4% sales gain at sporting goods and hobby stores. Consumer spending hit a soft patch in April and has yet to emerge from it. Although spending is not robust, consumers do continue to spend and provide modest support to the overall economy.

The producer price index was unchanged in August as food prices rose 1.1% and energy prices declined 1.0%. Excluding food and energy prices from the index the core PPI was up 0.1% on the week with a 2.5% gain on the year. Core producer inflation, while still within a moderate range, has been trending higher in the last year or two as higher costs at earlier stages of production are passed through to finished goods.

THURSDAY, September 15th
Jobless claims rose 1k to 428k for the week ending September 10. The data may have been impacted and could be impacted in coming weeks by the effects of Hurricane Irene. Regardless, the level of claims at just over 400k suggests that the pace of layoffs may have slowed since last year but that there is little new hiring going on. Labor market conditions remain stagnant.

The consumer price index jumped 0.4% in August, higher than an expected 0.2% gain. Price gains were seen for food, shelter, gasoline and apparel. Excluding food and energy prices, the core CPI was up 0.2% on the month and gained 2.0% on the year. Price gains have been persistent recently but are expected to ease in coming months as commodity or input prices soften in response to a weakened economy.

FRIDAY, September 16th
After tumbling 8 points in August in the aftermath of the debt ceiling debate in Washington, consumer sentiment rose 2.1points in early September to a reading of 57.8%. The gain came entirely from better current conditions assessments. Expectations slipped by less than a point. It was a small bounce however it does imply that consumers are resilient and feeling a bit better about the economy.

I keep looking for a glimmer of hope in this economy, but I just don't see it.  Something has to be done that will get people to hire again.  More people working equals more people spending, but this is just not happening.  Also, something needs to be done to help people refinance.  With rates as low as they are (literally, we've had historic lows a couple times recently), the mortgage applications should be way up.  If hundreds of thousands of people can save $200+ per month, how much extra money would they have to spend?  Right now, lending standards are so stringent that people who are easily worthy of refinancing are being denied.  Also, people who would like to buy homes can't due to not being able to get a loan.  I am not saying that we need to go back to the "if you had a pulse, you could get a loan" days, but standards need to be eased if we are going to get this economy rolling again.  The bottom line is that we are trudging at the bottom and I really hope that bottom does not fall out from underneath us.

The Week in Review (Ending September 09, 2011)

From Fidelity National Title:

The Week in Review

MONDAY, September 5th
LABOR DAY
All Markets Closed

TUESDAY, September 6th
The ISM non-manufacturing index increased to 53.3% in August from a reading of 52.7% in July. The gain was led by a modest uptick in new orders and suggests continued, moderate expansion in the service sectors of the economy. Details in the data showed a decline in employment which is consistent with weakness in the broader economy. Business activity in the service industries remains soft but does not raise any warning flags of recession at this time.

WEDNESDAY, September 7th
The MBA mortgage applications index fell 4.9% to 601.0% for the week ending September 2. The index has declined by 16.1% over the past three weeks and is now 31.7% below its year ago level. The purchase index edged 0.2% higher on the week but remains 13.5% lower than its year ago level. The refinance index dropped 6.3% last week and remains 35.7% below its year ago level despite lower rates. Contract mortgage rates fell again in the past week with the 30-year fixed down 9 bps to 4.23%. Application activity remains range-bound and weak amid slow economic conditions, stagnant labor market activity and lack of confidence anything is going to change for the better anytime soon.

The Fed's round up of economic activity in the 12 Federal Reserve Banking Districts, known as the beige book showed modest economic activity in most districts with some noting mixed or weakened activity from mid-July through August. Economic conditions were disrupted in part by Hurricane Irene in late August and characterized as mostly stable but weak. Recent economic data such as last week's disappointing employment report were not taken into account when this survey was compiled suggesting perhaps a more positive tone than would have been otherwise. The September 20-21 FOMC meeting takes on added importance at this juncture to more fully understand the Fed's outlook, given more recent information and what actions if any the FOMC decides to take.

THURSDAY, September 8th
Jobless claims rose 2k to 414k for the week ending September 3. After averaging 459k per week in 2010, initial claims have averaged 415k a week this year, a clear indication that the pace of layoffs has slowed over the last year. Weakness in the labor market is due to lack of hiring as opposed to high job losses. The aftermath of the recent hurricane on the East Coast will likely drive unemployment claims higher over the next several weeks or more, pushing labor market improvement even farther down the road.

The international trade deficit on goods and services narrowed in July to $44.8 billion from a trade gap of $51.6 billion in June. The improvement in the trade picture was a result of a 3.6% gain in exports. Imports slipped 0.2% on the month. If net exports maintain gains through the end of this quarter, they will contribute positively to third quarter economic growth.

Consumer credit outstanding rose by $12.0 billion in July led by a surge in non-revolving credit balances. Non-revolving credit including car loans increased by $15.4 billion as revolving credit balances mainly in the form of credit cards fell $3.4 billion. Household deleveraging continues as consumer move toward improving their debt to income ratio during tough economic times.

FRIDAY, September 9th
No news.

Not terrible this week, but the jobless claims still seems to be hanging on above 400,000.  This is a number that I belive needs to drop and then stay down.  This economy will get better, but only when there are jobs out there for people.  It is just my opinion, but if people have jobs and feel like those jobs are not going to go away, then they will spend and spending will get the economy going again.  Spending from people, not band-aid spending from the government.  At least we seem to be somewhat stable down here, but who knows if the other shoe is going to drop, or if we are going to start clawing out of the basement.  I'd love to see this country start clawing out of the basement sooner rather than later, but I just don't see any indication of that at this point.