Denver Colorado Real Estate

Ran Across this web-site....

www.whatyouown.org

This is a sleek, free program that allows you to catalog your belongings room by room.  You can even add pictures and receipts making for easy access if you ever need this information.

Mortgage Rates Beat Tax Credit?

From Aldo Svaldi w/ the Denver Post:

Homebuyers today can potentially save several times more money in interest costs than buyers who took out a mortgage in early April and claimed an $8,000 homebuyer tax credit.

Yet buyers, who rushed to meet the April 30 deadline for the federal tax credits, appear much less eager to borrow at the lowest interest rates in 60 years.

Mortgage applications for home purchases are 42 percent below the pace seen in April, according to the Mortgage Bankers Association. Home resales dropped 27.2 percent in July from June, according to a report Tuesday from the National Association of Realtors.

Read rest of article here...

View Tax Credit vs Mortgage Image here....

Take a look at the example at the bottom of the article or just view the image above, and don't get me wrong - getting $8,000 for buying a home is extremely nice, but with interest rates where they are presently, you could save well over that $8,000 in a fairly short period of time.

Some Energy Saving Tips...

• 

  5 Tips for Saving Energy in the Family Room

  Reduce your electricity bills by systematically purging your family room of wasteful energy practices. Read

• 

  12 Tips for Saving Energy in Your Home Office

  Cut your power consumption, lighting, and heating and cooling costs when you work from home. Read

• 

  7 Tips for Saving Energy with Home Lighting

  Lighting eats up as much as 20% of your annual electric bill, but using energy-efficient bulbs and making other simple changes can cut lighting costs dramatically. Read

• 

  10 Tips for Saving Energy in the Kitchen

  Maintain your large kitchen appliances is part of a smart home energy efficiency plan. Read

• 

  7 Tips for Saving Energy in the Laundry Room

  Understanding your laundry room appliances is part of a smart plan to help you save energy in your home. Read

Visit houselogic.com for more articles like this.

Copyright 2010 NATIONAL ASSOCIATION OF REALTORS®

Some Energy Saving Tips...

• 

  5 Tips for Saving Energy in the Family Room

  Reduce your electricity bills by systematically purging your family room of wasteful energy practices. Read
• 

  12 Tips for Saving Energy in Your Home Office

  Cut your power consumption, lighting, and heating and cooling costs when you work from home. Read
• 

  7 Tips for Saving Energy with Home Lighting

  Lighting eats up as much as 20% of your annual electric bill, but using energy-efficient bulbs and making other simple changes can cut lighting costs dramatically. Read
• 

  10 Tips for Saving Energy in the Kitchen

  Maintain your large kitchen appliances is part of a smart home energy efficiency plan. Read
• 

  7 Tips for Saving Energy in the Laundry Room

  Understanding your laundry room appliances is part of a smart plan to help you save energy in your home. Read

Visit houselogic.com for more articles like this.

Copyright 2010 NATIONAL ASSOCIATION OF REALTORS®

July Existing Home Sales

I had a pretty good idea that this was going to happen - the other shoe fell so to speak.  The "Tax Credit" was nice and it definitely helped the housing market in the first 5-6 months of this year, but now it's gone and it looks like the residential real estate market is drying up for the near term.  With interest rates flirting w/ all time lows, you'd expect that there would be a flurry of buying, but that is just not the case - even with the rates being so low, new regulations have made it much more difficult for people to get loans - even those who can afford to buy, just can't get qualified.

Will things change in the near future?  I hope so, but am not holding my breath.

Here is the article from NAR:

July Existing-Home Sales Fall, But Prices Rise

Existing-home sales were sharply lower in July following expiration of the home buyer tax credit but home prices continued to gain, according to the National Association of REALTORS®.

Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums, and co-ops, dropped 27.2 percent to a seasonally adjusted annual rate of 3.83 million units in July from a downwardly revised 5.26 million in June, and are 25.5 percent below the 5.14 million-unit level in July 2009. Sales are at the lowest level since the total existing-home sales series launched in 1999, and single family sales – accounting for the bulk of transactions – are at the lowest level since May of 1995.

Lawrence Yun, NAR chief economist, said a soft sales pace likely will continue for a few additional months. “Consumers rationally jumped into the market before the deadline for the home buyer tax credit expired. Since May, after the deadline, contract signings have been notably lower and a pause period for home sales is likely to last through September,” he said. “However, given the rock-bottom mortgage interest rates and historically high housing affordability conditions, the pace of a sales recovery could pick up quickly, provided the economy consistently adds jobs.

“Even with sales pausing for a few months, annual sales are expected to reach 5 million in 2010 because of healthy activity in the first half of the year. To place in perspective, annual sales averaged 4.9 million in the past 20 years, and 4.4 million over the past 30 years,” Yun added.

Mortgage Rates Dip
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.56 percent in July from 4.74 percent in June; the rate was 5.22 percent in July 2009. Last week, Freddie Mac reported the 30-year fixed was down to 4.42 percent.

The national median existing-home price for all housing types was $182,600 in July, up 0.7 percent from a year ago. Distressed home sales are unchanged from June, accounting for 32 percent of transactions in July; they were 31 percent in July 2009.

“Thanks to the home buyer tax credit, home values have been stable for the past 18 months despite heavy job losses,” Yun said. “Over the short term, high supply in relation to demand clearly favors buyers. However, given that home values are back in line relative to income, and from very low new-home construction, there is not likely to be any measurable change in home prices going forward.”

Inventory Rises
Total housing inventory at the end of July increased 2.5 percent to 3.98 million existing homes available for sale, which represents a 12.5-month supply at the current sales pace, up from an 8.9-month supply in June. Raw unsold inventory is still 12.9 percent below the record of 4.58 million in July 2008.

NAR President Vicki Cox Golder said there are great opportunities now for buyers who weren’t able to take advantage of the tax credit. “Mortgage interest rates are at record lows, home prices have firmed and there is good selection of property in most areas, so buyers with good jobs and favorable credit ratings find themselves in a fortunate position,” she said.

A parallel NAR practitioner survey shows first-time buyers purchased 38 percent of homes in July, down from 43 percent in June. Investors accounted for 19 percent of sales in July, up from 13 percent in June; the balance were to repeat buyers. All-cash sales rose to 30 percent in July from 24 percent in June.

Breakdown of the Numbers
• Single-family home sales dropped 27.1 percent to a seasonally adjusted annual rate of 3.37 million in July from a pace of 4.62 million in June, and are 25.6 percent below the 4.53 million level in July 2009; they were the lowest since May 1995 when the sales rate was 3.34 million.
• The median existing single-family home price was $183,400 in July, which is 0.9 percent above a year ago.
• Single-family median existing-home prices were higher in 11 out of 19 metropolitan statistical areas reported in July in comparison with July 2009 (the price in one of 20 tracked markets was not available). However, existing single-family home sales fell in all 20 areas from a year ago.
• Existing condominium and co-op sales fell 28.1 percent to a seasonally adjusted annual rate of 460,000 in July from 640,000 in June, and are 24.0 percent below the 605,000-unit level in July 2009. The median existing condo price was $176,800 in July, down 1.7 percent from a year ago.

By Region
• Existing-home sales in the Northeast dropped 29.5 percent to an annual pace of 620,000 in July and are 30.3 percent lower than a year ago. The median price in the Northeast was $263,800, up 4.8 percent from July 2009.
• Existing-home sales in the Midwest fell 35.0 percent in July to a level of 800,000 and are 33.3 percent below July 2009. The median price in the Midwest was $151,600, down 2.8 percent from a year ago.
• In the South, existing-home sales dropped 22.6 percent to an annual pace of 1.54 million in July and are 19.8 percent below a year ago. The median price in the South was $156,300, down 3.3 percent from July 2009.
• Existing-home sales in the West fell 25.0 percent to an annual level of 870,000 in July and are 23.0 percent below a year ago. The median price in the West was $224,800, up 3.3 percent from July 2009.

June 2010 Monthly Real Estate Update

    June numbers have been released by Metrolist and they look okay, but not phenomenal.  With the tax credit in the first quarter and amazingly low interest rates, you'd sort of expect that the number 0f sales to date versus last year to be up big over last year, but even though they are up, they are not up that big.   Average home sale prices do seem to be up in all counties, save for Douglas.

Download June Monthly Mailer 2010

Would you like to receive the Monthly Mailer in the Mail?  Click here and scroll to the bottom of the page.

    I am actually more interested to see July numbers as that will be the first mainly non-tax credit influenced month.  To me, that will be more tell tale than these first 6 months.  Yes, I know that the tax credit was extended, but I truly don't think that the numbers from here on out will be that influenced by the tax credit.

CSU-CAR study draws skepticism, disdain

Interesting article by John Rebchook with Inside Real Estate News....read the article here.

For the record, I did go back and took a look at the homes I sold in 1999, and maybe 2 or 3 of the 30 homes I sold that year might be up only 7 or so percent since that time, but they are all condos and my feeling is that the condo market has been hit much harder than the single family residential homes.   I did not dig deep into all my transactions, but have gone off my knowledge of the market and where I believe these homes would be priced at presently.

Anyway, interesting article - I guess you can work numbers any way you wish.

5 Costly Mistakes for 1st Time Home Buyers

Definitely has some validity....

From CNNMoney.com - by Les Christie:

Buying a first home can be a daunting experience. Here are five common and costly mistakes that novice home buyers make:

1. Ignoring the costs of having a low credit score. Lower-score borrowers pay thousands of dollars in increased interest rates over the life of the loan.

Absolutely - the higher the credit score, the better the rate - simple as that.  The one thing that is excluded here is that if you absolutely had to buy and can afford a higher payment in the beginning, as long as you make your payments on time, your credit score will dramatically improve (as long as you are paying your other obligations) and after 1-2 years, you should be able to refinance to a much better rate.

2. Muddying the waters by shopping for other things before closing. Lenders continue to check credit scores right up until the time of closing. Too much shopping could cause the lender to take back the loan.

If you are buying, that has to be your focus - no spending over and above your normal expenditures until after you have closed, or you run the risk of not qualifying, or having the bank increase your rate days before closing.

 3. Scrimping on an inspection. Being surprised by the need for expensive repairs can be financially devastating.

Could be huge here.  In Colorado, a top quality inspector is a must.  Plus, if you plan to spend any time in the basement, or if the kids are going to  be in the basement, you should pay to have a radon test done.  Also, even on newer homes, you should have the sewer line scoped.  All totaled, could run $500-$700 for inspections, but a new sewer line could run $7,500, plus the sky is the limit if there are issues with the foundation.

4. Buying without contingencies. Buyers should give themselves an out if the inspection turns up problems or the bank raises the interest rates.

Unless you are an experienced flipper, there really is no reason to forgo any contingencies.  They are there for a reason and regardless of what you are told, you are only begging for trouble if you forgo contingencies.

5. No money for insurance. Insurance can be surprisingly pricey. Buyers who don’t budget for it can face a nasty surprise.

True on this one, but if you are using a decent mortgage lender, you should have a very good idea up front on what your insurance costs will be.   Keep this in mind though - if you have made any claims in the past on homeowners insurance, your rates could be outrageous.  In Colorado, there is a Property Insurance contingency which allows you to get out of the contract should your insurance payments be out of line from what you expected.  Always call shortly after you go under contract so as to minimize any surprises later in the transaction.

Mortgage rates dip below 4 pct. on 15-year loans

9NEWS.com | Denver | Colorado's Online News Leader | Mortgage rates dip below 4 pct. on 15-year loans.

Pretty incredible rates at this point.

Exciting News for Colorado

The Quiznos Pro Challenge is slated to bring a professional cycling stage event back to Colorado in August of 2011.  While no real details on stages, or routes have been released, it will definitely be a great event to attend next summer.

I had the chance to hit a couple of stages of the Tour of California this year and it was pretty cool to get up and close with some of the elite riders of this era.   Also, with the crowds that I saw in smaller towns like Grass Valley, Nevada City and Santa Rosa, this should also benefit the Colorado economy as well.

Lance Armstrong prior to the start of the Tour of California in Nevada City