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January's Market Snapshot

2012-01-29T20:29:00.000-07:00

So, what is happening in our local real estate market?

Inventory continues to dwindle. The number of houses currently on the market, are even lower than they were in November. The market is heating up....don't be left behind. For a more detailed report on your specific area, visit: Home Market Report or call 303-300-8989, to speak with us directly.

December Market Snapshot

2011-12-27T15:23:00.000-07:00

So, what is happening in our local real estate market? Well, with inventory down 30% in November, over November 2010, the market remains surprisingly consistent and is showing strong signs of recovery.

Denver Area Market Inventory Down 30%

2011-12-07T20:56:00.000-07:00

The number of unsold homes on the Denver-area market plummeted 30 percent in November from a year earlier, likely the biggest year-over-year drop in the metro area’s history.
“The headline is that the inventory is down 10 percent on a month-to-month basis and down 30 percent year-over-year,” said independent broker Gary Bauer who today released a housing report based on Metrolist data.

There were a mere 14,275 unsold homes on the market last month, compared with 20,392 in November 2010 and 15,794 in October.

“It is unbelievable,” said Peter Niederman, CEO of Kentwood Real Estate.

The last November there were fewer unsold homes in the market was in 2000, when there were only 10,282 homes listed by area Realtors.

The unsold inventory peaked at 31,989 in July 2006.

Bauer said he believes the 30 percent drop is the largest ever. Still, he said it is a good news-bad news story.

“The good news is that there are still buyers out there,” Bauer said. “The bad news is they have less to choose from. Long-term, if this trend continues, we may have some real concerns for the market. This might be a very good idea for people who were holding off putting their home on the market until next year to consider to do so now, because there is so little to choose from.”

By the numbers

Other than the drop in inventory, the other metrics were not too bad:

There were 3,365 homes placed under contract, a 12.5 percent drop from October, largely for seasonal reasons, but up 8.5 percent from the 3,101 in November 2010.
In the first 11 months of the year, 44,541 homes have been placed under contract, down 4.5 percent from the 46,621 during the same period last year.
Closings were even better. Some 3,068 homes closed in November, up 15 percent from the 2,666 in November 2010, and down 3.6 percent from October.
In the first 11 months of the year, 36,231 homes have sold, 1.2 percent more than the 35,794 during the same period in 2010.
Total sales volume is up slightly to $9.2 billion, compared with $9.1 billion in the first 11 months of 2010. Single-family homes accounted for $8.1 billion of the sales volume this year, while condo sales were unchanged at $1.1 billion from 2010.
The average price of a single family home that closed in November was $275,951, compared with $281,466 a year earlier and $269,503 in October.
The median price of a single-family home that closed in November was $230,300, compared with $233,990 in November 2010 and $226,021 in October. The median price of a condo was $125,000, unchanged from October of November 2010.

“Every metric, other than the inventory, is relatively stable,” Niederman said.

“I think we are seeing such a big drop in inventory is because a lot of people are saying they are going to take a wait-and-see attitude, before they put their home on the market,” Niederman said.

Niederman expects another big drop in the inventory in December, but more consumers may brave listing their homes in early 2012.

“It will be really interesting to see what happens in January,” Niederman said. “A lot of people will not put their homes on the market between now and the end of the year before the holiday season.”

Niederman said that he thinks that home prices are doing better than the numbers reflect.

The overall prices are being dragged down because of haircuts sellers of $1 million-plus homes are taking, as well as short-sales at the lower end, in which the bank agrees to accept less than the mortgage amount.

“There are also some REOs, that is foreclosures, also hurting the overall prices,” Niederman said. “I think if you look at homes with conventional loans, those at $417,000 are below – or typically homes that sell for $470,000 or less – you will find they are very stable or even appreciating a bit. We have even seen bidding wars, but probably only out of 1 out of every 10 sales.”

Bullish on 2012

Shannel Ryan, sales manager at Fuller Sotheby’s International Realty Denver, is quite bullish on the Denver-area housing market in 2012.

“We are starting to see a little increase in consumer confidence and that affects not only the buy side, but the mind-set of the seller as well,” Ryan said. “More and more, I think people are seeing that if they are a losing a little bit as a seller, they will more than make up for it by buying right. No offense, but part of the problem is that people read all of these negative reports in the media. But the overall market here in Denver and Colorado is not as bad as the picture being painted.”

Although since all real estate is local, different pockets of the market will out-perform others.

“On a micro-level, it makes a difference whether you are in Castle Pines Village or City Park,” Ryan said. “We can’t get enough homes to sell in Country Club and Hilltop, but in a gated community like Castle Pines Village, you need to expect that the days on market for a home will be quite a bit longer.”

New home market filling resale void

One silver lining to the dearth of supply of previously owned homes is that a lot of consumers appear gravitating to new homes.

“We are hearing a lot of comments from our builder members that there are just not a lot to choose from in the resale market,” said Jeff Whiton, CEO and President of the HBA of Metro Denver.

“I heard from a lot of our members in November that they were seeing a big increase in traffic from people considering new homes,” he added. “A lot of new homes being constructed by home builders are Built Green or Energy Star-designated homes and those are really gaining traction for in the market.”

It’s not just entry level new homes that are selling, as it has been during the past few years.

“I was talking to one builder last night who said he is seeing a lot of activity in the $450,000-plus market, which had been kind of the hardest-hit part of the market,” Whiton said.

The number of new homes being sold have been accounting for about 11 percent of all homes that have been sold, half of where they were at during the buying frenzy of the mid-2000s.

“I think we are going to start seeing the new housing market penetration pick up again,” Whiton said. “Our objective is to get it back up to 20 percent or 22 percent. I can’t really predict when that will happen, but I do see it climbing right now.”

Chris Mygatt, president of Coldwell Banker Residential in Colorado, called described the low inventory number as “remarkable.”

He said that a big part of the low number is a Denver-area economy that while not robust, is better than many places in the country.

“I think because of our relatively decent employment picture those who do not have to sell their homes are going to wait-out the market,” Mygatt said.

Meanwhile, the low inventory numbers are putting upward pressure on prices, he said.

“In that respect, a low-inventory is healthy,” he said.

Last year, he noted, the first half of the year was driven by “those amazing tax credits. The second half of the year was simply devastated,” he said.

He said is it is a testament to the Denver market that without tax credits, sales are slightly ahead of where they were at this time in 2010.

Niederman noted early in 2011, most observers were predicting an over-supply of homes on the market, not a shortage.

The only question was not if Denver and other markets were going to be enveloped by the shadow market – homes held by banks not yet on the market – but the magnitude of the shadow.

“It didn’t happen,” Niederman said. “And I hear that next year we will see a big drop in foreclosures, mostly replaced by short sales. Lenders are realizing that they lose less money in a short sale than in a foreclosure. They might get 75 cents on the dollar for a short-sale, compared with 65 cents for a foreclosure. And if they do a foreclosure, the house sits vacant and they have to hire a property management company. It’s better for banks to keep someone in that house.”

Early in the year, Niederman predicted that 2011 would be slightly better than 2010, at a time when many thought the market was heading off the cliff.

His prediction appears to be on the money, despite a number of unexpected events that have roiled the markets, primarily the economic turbulence in Europe.

“I’m glad that I took a contrarian point-of-view when there was so much doom and gloom in the market,” Niederman said.

Contact John Rebchook at JRCHOOK@gmail.com

Market Snapshot: November 2011

2011-11-28T18:12:00.000-07:00

Market Snapshot: November 2011

So what is happening in our local real estate market? The prime selling and buying season, finished strong with the inventory contining to dwindle. Home prices remain stable and show slight increases while Days on Market, DOM, remain stable as well.

For a more detailed report on your specific area, visit: Home Market Report or call 303-300-8989, to speak with us directly.

Denver, CO - Freshest New Home Sales Numbers Climb Year-Over-Year After Drop Last Month

2011-11-14T15:47:00.000-07:00

In the Denver, CO market, sales of new homes rose year-over-year in August, moving up after a decline in July 2011. Sales gained 13.4% from a year earlier to 331, relative to a 4.6% decline in July from the year earlier.
In the 12 months ending August 2011, there were 3,521 new home sales, up from an annualized 3,482 in July.
Of the total number of sales, new home sales made up 6.8%. A year earlier, new home sales accounted for 7.1% of total sales. Sales of new and existing homes increased year-over-year in August after also rising in July year-over-year.

Pricing and Mortgage Trends

In August, the average price for new home sales was $347,159, an 8.8% decline from last year. This decline is less significant than the 6.1% decline in July from a year earlier.
For newly sold homes, the average mortgage size saw a drop year-over-year along with new home prices. In August 2011, average mortgage size on new homes sold was $280,639, down 11.9% from a year earlier. In July 2011, average mortgage size on newly sold homes saw a 12.7% fall from a year earlier. The overall percentage of sale price that was being financed slipped 2.9 percentage points year-over-year to 80.8% in August 2011.

Source:Housing Intelligence

October Market Snapshot

2011-10-26T22:03:00.001-06:00

So what is happening in our local real estate market? With the first full year, with no artificial stimulous to prop up the housing market.. the news remains surprisingly consistent and strong.

MBA Shows Mortgage Applications Increase

2011-10-15T12:28:00.000-06:00

MBA Shows Mortgage Applications Increase

RISMEDIA, Saturday, October 15, 2011— Mortgage applications increased 1.3 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending October 7, 2011.

The Market Composite Index, a measure of mortgage loan application volume, increased 1.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 1.3 percent compared with the previous week. The Refinance Index increased 1.3 percent from the previous week. The seasonally adjusted Purchase Index increased 1.1 percent from one week earlier. The unadjusted Purchase Index increased 1.2 percent compared with the previous week and was 2.9 percent lower than the same week one year ago. The increases were driven mainly by the government loan category, with the Government Purchase index up 2.4 percent and Government Refinance index increasing 9.9 percent. The Conventional Purchase and Refinance indexes increased 0.1 percent and 0.2 percent, respectively.

The four week moving average for the seasonally adjusted Market Index is up 1.56 percent. The four week moving average is down 0.51 percent for the seasonally adjusted Purchase Index, while this average is up 2.15 percent for the Refinance Index.

The refinance share of mortgage activity remained unchanged at 79.1 percent of total applications from the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 6.0 percent from 6.4 percent of total applications from the previous week.

The average loan size of all loans for home purchase in the US was $210,863 in September 2011, down from $212,736 in August 2011. The average loan size for a refinance was $237,632, down from $241,323 in August. The largest purchase loans were made in the Pacific region at $ 302,110. The largest refinance loans were also made in the Pacific region at $ 339,592.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased to 4.25 percent from 4.18 percent, with points increasing to 0.47 from 0.44(including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate also increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) increased to 4.59 percent from 4.49 percent, with points increasing to 0.49 from 0.41 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate also increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 4.06 percent from 4.05 percent, with points decreasing to 0.58 from 0.69 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate also decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages increased to 3.53 percent from 3.49 percent, with points remaining unchanged from 0.45 (including the origination fee) for 80 percent LTV loans. The effective rate also increased from last week.

The average contract interest rate for 5/1 ARMs increased to 3.03 percent from 3.02 percent, with points increasing to 0.54 from 0.41 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate also increased from last week. For more information, visit www.mortgagebankers.org.

Dispelling the 20 Percent Downpayment Myth

2011-10-03T14:45:00.000-06:00

In my column last month, I discussed a government proposal that could have significant impact on the future of the housing industry: the QRM, or Qualified Residential Mortgage, as part of the Dodd-Frank Act. According to the proposed QRM definition, lenders must hold 5% of the risk of any given residential loan unless it is considered a QRM, which is a loan that has a 20% downpayment and meets other debt-to-income and borrower credit history requirements.

While QRM would not automatically preclude loans from being originated with less than a 20% downpayment, these loans will cost significantly more, as the lender will be required to hold a percentage of the risk.

It seems the speculation and debate surrounding QRM is causing some low-downpayment home buyers to believe they will not be able to obtain financing. These prospective home buyers are hearing that lenders will no longer approve them for a mortgage unless they have at least a 20% downpayment. It appears this belief stems from misinformation from recent media stories and even some loan officers and real estate agents.

This is simply not true. Mortgages are available for low downpayment buyers, both through the FHA and through conventional loans backed by private mortgage insurance.

While news stories continue to emphasize nothing but “doom and gloom” scenarios, the reality is that market conditions have changed for the better in recent months. While the housing crisis has led to an increase in underwriting risk considerations, a more “normal” lending environment has resumed in a majority of U.S. cities and mortgage rates are some of the lowest in years. These low rates, combined with good deals on home prices, equal a time of unprecedented opportunity for potential home buyers.

Although it can be difficult to keep up with rapidly changing lending practices, real estate agents must do their best to have, at a minimum, a general understanding of the lending options currently available to help keep as many qualified home buyers in the market as possible.

Potential home buyers need credible, reliable housing finance information and they can find this information through partnerships that you have established with mortgage loan professionals who are up-to-date on the best possible options for your buyers. As a real estate agent, you are one of the most powerful influencers in the home-buying process, with the ability to provide clarity on misconceptions surrounding the current market and to encourage potential home buyers who may have put their home purchase plans on hold to resume house hunting at full speed.

Otherwise, qualified buyers with low downpayments may turn away from the market based on a misconception, which is a lost opportunity for them to purchase a home at a time of high affordability and for you to make the sale. This is the last thing anyone wants at a time when new buyers are needed to help the market recover.

Brien McMahon is chief franchise officer of Radian Guaranty Inc. More information may be found at www.radian.biz .
RISMedia welcomes your comments and questions. Email realestatemagazinefeedback@rismedia.com

Market Snapshot: September 2011

2011-09-30T09:02:00.001-06:00

Market Snapshot: August 2011

2011-08-31T16:06:00.000-06:00

So what is happening in our local real estate market? This being prime selling and buying season, the inventory has continued to dwindle. Home prices remain stable and show slight increases while Days on Market, DOM, remain stable as well. The condominium market has taken a downturn for the month of July in price. DOM for condominiums is down over June's numbers, however.

For a more detailed report on your specific area, visit: Home Market Report or call 303-300-8989, to speak with us directly.

5 Inexpensive Home Updates to Complete before Listing Your Home

2011-08-17T08:06:00.001-06:00

5 Inexpensive Home Updates to Complete before Listing Your Home

RISMEDIA, August 11, 2011—There is no perfect formula for selling your home efficiently, but by following these five tips prior to listing you can increase your chances to close quickly at a higher price.

1.) Update your old garage door(s). Garage doors seem like a non-issue, but many times they make up a significant percentage of the front of a home. Because of this, they are one of the first things that buyers notice when they pull in the drive way. Replacing, or even just painting, these central fixtures will do wonders when it comes to instantly impressing perspective buyers and standing apart from your competition. The market has changed drastically since many of us purchased our homes here in town. I frequently hear buyers say that they have taken a house off their list because of the lack of curb appeal. This issue is especially important to people on busier streets, corner lots, or near a neighborhood eyesore.

2.) Replace old windows. Outdated windows age a home significantly, and you can often upgrade standard windows to vinyl for a reasonable $300 per window. The average home has 8 windows, so this upgrade doesn't cost nearly as much as you might think and it will make a huge difference to the value perceived by prospective buyers. Key point to remember is that when buyers view a home they love, if they see it has older windows, they consider it a time consuming and costly headache. First time buyers have never replaced windows and often dramatically overestimate the cost to cure this issue. By replacing pre-listing you an actually save money. A well priced, move-in condition home will sell for far more than one with windows in need of repair.

3.) Assess your floors . If you have hardwood flooring, it's worth the investment to have them refinished considering buyers put an extremely high value on them; you'll get the most bang for your buck if they are refurbished. Carpets should be shampooed and replaced if they are stained or look worn. You don't need to spend large amounts of money on the highest grade or most modern name but something inexpensive and neutral will certainly bring you a return on the investment. Even the smell of new carpet will make buyers set your home apart from the comparables.

4.) Paint the trim. If you can't afford the daunting task of painting your entire house, painting just the trim will still make a big difference when it comes to curb appeal. Painting the whole house can be expensive, time consuming, and delayed by weather conditions; painting just the trim will give your home a fresher look. Interior trim is equally as important.

5.) Update fixtures. Keep an eye out for sales at home improvement stores and replace outdated lighting, plumbing and hardware fixtures. Simple replacing lighting fixtures and knobs in the bathroom or kitchen can update the entire look of the room. You can find many modern brand name fixtures online on contractor supply websites by just searching for terms like sale faucets, sale plumbing fixtures etc.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.
Cynthia M. Parker, ABR®, SFR®, CDPE®
Broker Associate
"Marketing your home for all it's worth"!

RE/MAX Alliance
Office: (303) 757-7474
Mobile: (303) 563-9700
Fax: 866-673-0053
E-mail: cynthia@cynthiamparker.com
Web site: http://www.CynthiaMParker.com

BUYERS: "Find out how to buy a home for as little as $ 100 down"...visit: http://www.FreeCOHomeInfo.com
SELLERS: "Find out what the home down the street from you just sold for"... visit: http://www.HomePricesInYourArea.org

* Oh, by the way, if you know of someone who would appreciate the level of service I provide, please call me with their name and business number. I'll be happy to follow up and take great care of them.

Louisville, Colorado is # 1 on "MONEY's 100 Best Places to Live in America"

2011-08-16T12:51:00.000-06:00

MONEY Magazine Reveals Annual "MONEY's 100 Best Places to Live in America" RISMEDIA, Tuesday, August 16, 2011— “MONEY” magazine has revealed the 2011 list of "MONEY's 100 Best Places to Live in America," highlighting small towns across the country with populations of 50,000 or less. For the annual cover-story, on sale August 19, MONEY looked for places with the optimal combination of job opportunities, fiscal strength, top-notch schools, safe streets, good healthcare, cultural and outdoor activities, and even nice weather.

MONEY's editors write, "With the current state of the economy—and the dispiriting sight of the nation's leaders endlessly battling about how to fix it—the phrase 'small town' conjures up images of a happier time. When unemployment wasn't above 9%. When people didn't stress out about home values. When school budgets weren't under siege. Those were the days, right?"

Louisville, Colorado tops this year's list at number one. Twenty-three miles outside Denver, Louisville has a strong economy, stable housing and lots to do. Louisville has some of the lowest crime rates in Colorado and was also ranked No. 1 in 2009 when MONEY assessed places with populations of under 50,000. There are good jobs in Louisville in the tech, telecom, aerospace, clean energy, and healthcare space.

Additionally, MONEY editors report that businesses are flourishing in the historic downtown district writing, "This summer alone saw the opening of three restaurants, a rooftop bar, a coffee shop, a yoga studio, a gift shop, and two art galleries. And world-class outdoor recreation is a short drive away."

MONEY's 2011 top-ten list:
1. Louisville, CO http://cnnmon.ie/pZGV36
2. Milton, MA http://cnnmon.ie/pVK3gT
3. Solon, OH http://cnnmon.ie/njtiIa
4. Leesburg, VA http://cnnmon.ie/r2j6KD
5. Papillion, NE http://cnnmon.ie/nuHOEl
6. Hanover, NH http://cnnmon.ie/qIHOVD
7. Liberty, MO http://cnnmon.ie/pnxqf5
8. Middleton, WI http://cnnmon.ie/ntBOjr
9. Mukilteo, WA http://cnnmon.ie/nbZB6M
10. Chanhassen, MN http://cnnmon.ie/okTt1D

For more best places to live, visit www.Money.com/BestPlaces.
RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Copyright© 2011 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission.

Program Helps Military With A Grant Up to $5,000

2011-07-31T12:08:00.000-06:00

RISMEDIA, July 28, 2011—A nationally recognized nonprofit organization working to meet the unmet needs of military personnel and their families, is offering financial help to eligible first-time home buyers through its Dream Makers program.

Active duty personnel, veterans and retired members of the military, as well as employees of the U.S. Department of Defense and the Department of Homeland Security, qualify for a grant up to $5,000 to use on down payments and closing costs when buying their first home.

“Members of the military often put off buying a home earlier in their careers because they’re moving around the country a lot,” says Kate Kohler, former Army captain and chief operating officer for the PenFed Foundation. “We want to make sure they have resources to add immediate equity into their home when they decide to buy and the Dream Makers program helps make that possible.”

In today’s housing market, there has seen a slowdown in the number of veterans applying for the program, so it is redoubling its efforts to help both active duty members and veterans learn about the Dream Makers program.

For more information on the Program and see if you qualify, visit: http://www.cynthiamparker.com/zerodown.asp and in the details section, type "5k Grant Info"

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Federal Housing Finance Agency Reports Mortgage Interest Rates

2011-07-31T11:07:00.000-06:00

RISMEDIA, July 29, 2011— The Federal Housing Finance Agency recently reported that the National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders, used as an index in some ARM contracts, was 4.62 percent based on loans closed in June. This is a decrease of 0.12 percent from the previous month.

The average interest rate on conventional, 30-year, fixed-rate mortgage loans of $417,000 or less decreased 13 basis points to 4.79 percent in June. These rates are calculated from the FHFA’s Monthly Interest Rate Survey of purchase-money mortgages. These results reflect loans closed during the June 24-30 period. Typically, the interest rate is determined 30 to 45 days before the loan is closed. Thus, the reported rates depict market conditions prevailing in mid- to late-May.

The contract rate on the composite of all mortgage loans (fixed- and adjustable-rate) was 4.61 percent in June, down 14 basis points from 4.75 percent in May. The effective interest rate, which reflects the amortization of initial fees and charges, was 4.74 percent in June, down 13 basis points from 4.87 percent in May.

This report contains no data on adjustable-rate mortgages due to insufficient sample size. Initial fees and charges were 0.94 percent of the loan balance in June, up 0.09 percent from 0.85 in May. Twenty-eight percent of the purchase-money mortgage loans originated in June were “no-point” mortgages, matching the share in April and May. The average term was 28.2 years in June, up 0.3 years from 27.9 years in May. The average loan-to-price ratio in June was 76.3 percent, down 0.1 percent from 76.4 percent in May. The average loan amount was $219,100 in June, down $3,800 from $222,900 in May.

For more information, please visit www.fhfa.gov.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Market Snapshot.: July 2011

2011-07-27T12:07:00.004-06:00

As I stated in my appearance on The Denver Channel, properties currently under contract have had a year over year improvement of 22.5%. This is important because it is the first market data over the span over 1 full year, without any artificial market influences like federal tax incentives, etc. Denver is a market poised for great gains. Consistently making it's ranking in the top 10 markets according to the latest Case-Shiller Index and ranked number one of the cities between both coasts. While I remain cautiously optimistic, I think there are signs of life in the Denver Metro real estate market. With rental units at a vacancy rate below 5% (the lowest in more than a decade), the argument for potential buyers entering or reentering the market place becomes even more compelling.

For a more detailed report on your specific area, visit: Home Market Report or call 303-300-8989, to speak with us directly.

Want a chance to win $ 25???

2011-07-27T11:05:00.010-06:00

Want a chance to win $25?

All you have to do is be the first person to reply from our monthly newsletter (subscribe now) with the embedded 6-digit alpha-numeric, code (5 numbers 1 letter). The code is placed in the newsletter or links. That's it! Simple huh? One winner per month (subscribers only) but you can have as many consecutive wins (12 chances), in the year. The winner will be mailed a $25 gift card. Have a friend who wants a chance to win? Forward our newsletter or this blog to them and have them subscribe via the link at the bottom. Good Luck!! Who will the next winner be?

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Bankrate: Mortgage Rates Hit a 2-Month High

2011-07-11T06:10:00.000-06:00

Bankrate: Mortgage Rates Hit a 2-Month High

RISMEDIA, Monday, July 11, 2011— Mortgage rates increased for the second week in a row, with the benchmark conforming 30-year fixed mortgage rate now 4.79 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.32 discount and origination points.

The average 15-year fixed mortgage stepped up to 3.9 percent while the larger jumbo 30-year fixed rate climbed to 5.27 percent. Adjustable rate mortgages were higher also, with the average 5-year ARM rising to 3.49 percent and the 7-year ARM inching higher to 3.72 percent.

Mortgage rates increased for the second week in a row and the third time in the last four weeks. Better economic news and an easing of concerns about a potential Greek debt default spurred this week's move, pushing mortgage rates to a two-month high. Mortgage rate volatility could pick up in the coming weeks as investors grapple with the state of the U.S. economic recovery, quarterly corporate earnings, and a deadline for increasing the debt ceiling.

The last time mortgage rates were above 6 percent was Nov. 2008. At the time, the average 30-year fixed rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.79 percent, the monthly payment for the same size loan would be $1,048.12, a difference of $193 per month for anyone refinancing now.

For more information, please visit www.bankrate.com.
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Pending Home Sales Turn Around in May...

2011-07-05T17:19:00.000-06:00

Pending Home Sales Turn Around in May

RISMEDIA, Tuesday, July 05, 2011— Pending home sales rose strongly in May with all regions experiencing gains from a year ago, pointing to higher housing activity in the second half of the year, according to the National Association of REALTORS®.

The Pending Home Sales Index, a forward-looking indicator based on contract signings, rose 8.2 percent to 88.8 in May from an upwardly revised 82.1 in April and is 13.4 percent higher than the 78.3 reading in May 2010. The data reflects contracts but not closings, which normally occur with a lag time of one or two months.

This is the first time since April 2010 that contract activity was above year-ago levels, and the monthly gain was the strongest increase since last November when the index rose 10.6 percent.

Lawrence Yun, NAR chief economist, says the improvement bodes well for home prices. “Absorption of inventory is the key to price improvement, and this solid gain in contract signings implies that home values in many localities are or will soon be stabilizing as inventories get absorbed at a faster pace,” he says. “Some markets have made a rapid turnaround, going from soft activity to contract signings rising by more than 30 percent from a year ago, including areas such as Hartford, Conn.; Indianapolis; Minneapolis; Houston; and Seattle.”

For more information, please visit www.realtor.org.
RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com

Case-Shiller: Slight Increase in April

2011-07-04T12:57:00.000-06:00

Case-Shiller: Slight Increase in April

By Steve Cook

RISMEDIA, June 30, 2011—S&P/Case-Shiller’s 10- and 20-city composites rose less than one percent in April over March, the first price increase the indices have measured in eight months.
Data through April 2011, released recently by S&P Indices for its S&P/Case-Shiller Home Price Indices show a monthly increase in prices for the 10- and 20-City Composites for the first time in eight months.

Case-Shiller prices still are significantly lower than they were a year ago. The 10-City Composite fell 3.1 percent and the 20-City Composite is down 4.0 percent from April 2010 levels.
Six of the 20 MSAs showed new index lows in April—Charlotte, Chicago, Detroit, Las Vegas, Miami and Tampa. Thirteen of the cities and both composites posted positive monthly changes. With index levels of 152.51 and 138.84, respectively, both the 10- and 20-City Composites.
“In a welcome shift from recent months, this month is better than last —April’s numbers beat March,” says David M. Blitzer, Chairman of the Index Committee at S&P Indices. “However, the seasonally adjusted numbers show that much of the improvement reflects the beginning of the Spring-Summer home buying season. It is much too early to tell if this is a turning point or simply due to some warmer weather.

“Other housing statistics show the same trends. Single-family housing starts were up in May, but still well below their 2010 levels and still very close to their 30-year low. Existing home sales rose in May, but are still about 15 percent below last year’s pace and about 35 percent below their 2005 pace. While foreclosures remain a large factor in most parts of the country, the S&P/Experian Consumer Credit Default indices show a small decline in the pace of new defaults since last November. Other reports confirm that banks have tightened lending standards in the past year making it harder to qualify for a mortgage despite very low interest rates.

“In the monthly details, we saw home prices increase in April over March. The 10-City was up 0.8 percent and the 20-City rose 0.7 percent. Only seven cities experienced lower prices compared to 18 in March. However, the seasonally adjusted figures saw less dramatic improvement. The annual rate of change for the 10-City remained the same at -3.1 percent; whereas the 20-City fell further from -3.8 percent reported for March to -4.0 percent for April. For a real recovery we would need to see several months of increasing home prices, large enough to shift the annual momentum to the positive side. In short, better news, but still a lot of questions and a long way to go,” says Blitzer.
For more information please visit www.realestateeconomywatch.com.
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April Housing Scorecard Shows Growing Evidence of Economic Progress

2011-05-10T16:06:00.000-06:00

RISMEDIA, May 10, 2011—The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury recently released the April edition of the Obama Administration’s Housing Scorecard—a comprehensive report on the nation’s housing market. Officials caution that the latest housing figures underscore fragility in the housing market and highlight the importance of the Administration’s foreclosure-prevention programs, which continue to help tens of thousands of struggling homeowners each month and play a critical role in setting standards for the mortgage industry. “The housing data in this month’s Scorecard offer continued mixed signals and some signs of weakness in the market—despite growing evidence of progress in the broader economy,” says HUD Assistant Secretary Raphael Bostic. “The Administration has been consistently committed to helping American homeowners and borrowers who have been hit hard by the economic recession and housing crisis, and our efforts have helped millions to avoid foreclosure and gain a more stable footing. That said, we still have more work to do to reach the many households who still face trouble.”
“The numbers of homeowners both entering HAMP and converting from trial to permanent modifications each month are a powerful reminder of the role this program is playing in delivering much-needed assistance to families facing a housing market that is still very tough,” says Acting Assistant Secretary for Financial Stability Tim Massad. “And by providing modifications that are sustainable for homeowners over time, HAMP is setting standards for the industry that ultimately mean more options for more families to avoid foreclosure.”
The March Housing Scorecard features key data on the health of the housing market and the reach of the Administration’s foreclosure prevention programs, including:
• The Administration’s efforts have helped millions of families deal with the worst economic crisis since the Great Depression. More than 4.5 million modification arrangements were started between April 2009 and the end of March 2011—including more than 1.5 million trial modification starts through the Administration’s Home Affordable Modification Program (HAMP), more than 808,000 FHA loss mitigation and early delinquency interventions, and nearly 2.2 million proprietary modifications under HOPE Now. While some homeowners may have received help from more than one program, the total number of agreements offered more than doubled the number of foreclosure completions for the same period (1.9 million).
• Tens of thousands of new homeowners continue to receive real payment relief from HAMP every month—and are able to keep up those arrangements over time. In March, servicers reported more than 36,000 trial HAMP modifications and more than 36,000 permanent modifications with a median payment reduction of 37 percent—or over $500 every month. Since the start of the program, more than 670,000 homeowners have received a permanent HAMP modification, saving approximately $5.9 billion. More than 1.5 million homeowners have started a trial modification. With more than 84 percent of homeowners in their permanent HAMP modification after one year, HAMP modifications continue to perform well over time and are proving more sustainable for homeowners than traditional industry modifications.
• Housing market remains fragile as data through March paint a mixed picture of recovery. Home prices remain weak under continued strain from foreclosures and distressed homes. However, mortgage delinquencies continued a downward trend compared to early 2010 and foreclosure starts and completions remain below peak. As lenders continue to review internal procedures related to foreclosure processing, many foreclosure actions have been delayed. The decline in foreclosure processing is likely to be temporary as lenders eventually revise and resubmit paperwork in the coming months.

For more information visit www.HUD.gov.
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Sales of Existing-Homes Rose in March 2011

2011-04-21T07:51:00.000-06:00

RISMEDIA, April 21, 2011—Sales of existing-home sales rose in March 2011, continuing an uneven recovery that began after sales bottomed last July, according to the National Association of REALTORS®. Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 3.7% to a seasonally adjusted annual rate of 5.10 million in March from an upwardly revised 4.92 million in February, but are 6.3% below the 5.44 million pace in March 2010. Sales were at elevated levels from March through June of 2010 in response to the home buyer tax credit. Lawrence Yun, NAR chief economist, expects the improving sales pattern to continue. “Existing-home sales have risen in six of the past eight months, so we’re clearly on a recovery path,” he said. “With rising jobs and excellent affordability conditions, we project moderate improvements into 2012, but not every month will show a gain—primarily because some buyers are finding it too difficult to obtain a mortgage. For those fortunate enough to qualify for financing, monthly mortgage payments as a percent of income have been at record lows.”
NAR’s housing affordability index shows the typical monthly mortgage principal and interest payment for the purchase of a median-priced existing home is only 13% of gross household income, the lowest since records began in 1970.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 4.84% in March, down from 4.95% in February; the rate was 4.97% in March 2010.
Data from Freddie Mac and Fannie Mae show requirements to obtain conventional mortgages have been tightened, with the average credit score rising to about 760 in the current market from nearly 720 in 2007; for FHA loans the average credit score is around 700, up from just over 630 in 2007.
“Although home sales are coming back without a federal stimulus, sales would be notably stronger if mortgage lending would return to the normal, safe standards that were in place a decade ago—before the loose lending practices that created the unprecedented boom and bust cycle,” Yun explained.
“Given that FHA and VA government-backed loan programs turned a modest profit over to the U.S. Treasury last year, and have never required a taxpayer bailout, we believe low-downpayment loans should continue to be available for those consumers who have demonstrated financial responsibility and are willing to stay well within their budget. Raising the downpayment requirement would unnecessarily deny credit to many worthy middle-class families and veterans,” Yun said.
A parallel NAR practitioner survey shows first-time buyers purchased 33% of homes in March, compared with 34% of homes in February; they were 44% in March 2010.
All-cash sales were at a record market share of 35% in March, up from 33% in February; they were 27% in March 2010. Investors accounted for 22% of sales activity in March, up from 19% in February; they were 19% in March 2010. The balance of sales were to repeat buyers.
The national median existing-home price for all housing types was $159,600 in March, down 5.9% from March 2010. Distressed homes—typically sold at discounts in the vicinity of 20%—accounted for a 40% marketshare in March, up from 39% in February and 35% in March 2010.
NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I., said some renters are looking to homeownership as a hedge against inflation. “The typical buyer today plans to stay in a home for 10 years, while rents are projected to rise at faster rates over the next few years,” he said. “As buyers gain more financial security, the advantages of homeownership become more obvious. Rents will continue to trend up, especially in comparison with a fixed-rate loan which provides financial stability and gradual accumulation of equity over time.”
Total housing inventory at the end of March rose 1.5% to 3.55 million existing homes available for sale, which represents an 8.4-month supply at the current sales pace, compared with a 8.5-month supply in February.
Single-family home sales rose 4.0% to a seasonally adjusted annual rate of 4.45 million in March from 4.28 million in February, but are 6.5% below the 4.76 million level in March 2010. The median existing single-family home price was $160,500 in March, down 5.3% from a year ago.
Existing condominium and co-op sales increased 1.6% to a seasonally adjusted annual rate of 650,000 in March from 640,000 in February, but are 4.1% below the 678,000-unit pace one year ago. The median existing condo price was $153,100 in March, which is 10.1% below March 2010.
Regionally, existing-home sales in the Northeast rose 3.9% to an annual level of 800,000 in March, but are 12.1% below March 2010. The median price in the Northeast was $232,900, down 3.0% from a year ago.
Existing-home sales in the Midwest increased 1.0% in March to a pace of 1.06 million, but are 13.1% lower than a year ago. The median price in the Midwest was $126,100, which is 7.1% below March 2010.
In the South, existing-home sales rose 8.2% to an annual level of 1.99 million in March, but are 1.0% below March 2010. The median price in the South was $138,200, down 6.6% from a year ago.
Existing-home sales in the West slipped 0.8% to an annual pace of 1.25 million in March and are 3.1% below a year ago. The median price in the West was $192,100, which is 11.2% lower than March 2010.
For more information, visit www.realtor.org.
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Short video explaining HAFA... If you or someone you know is in distress with their home mortgage, it's good need to know...

2011-04-09T20:52:00.004-06:00

Short video explaining HAFA... If you or someone you know is in distress with their home mortgage, it's good need to know...

REALTORS Committed to Fair Housing throughout the Year

2011-04-05T08:47:00.000-06:00

REALTORS Committed to Fair Housing throughout the Year

RISMEDIA, April 5, 2011—The National Association of REALTORS® will join Americans across the country as they honor Fair Housing Month this April. As one of the leading advocates for homeownership, NAR strongly supports the Fair Housing Act and believes that anyone who is able and willing to assume the responsibilities of owning a home should have the opportunity to pursue that dream.

This April marks the 43rd anniversary of the 1968 landmark Fair Housing Act, which prohibits discrimination based on race, color, national origin, religion, sex, familial status or disability. NAR also supports equal opportunity on the basis of sexual orientation, incorporating that support into the REALTOR® Code of Ethics.

"REALTORS® work tirelessly to build communities and believe people have a right to live wherever they can afford to live," said NAR President Ron Phipps. "In this vein, REALTORS® believe it's imperative to recognize Fair Housing Month and reconfirm our commitment to upholding fair housing laws and our commitment to offer equal professional service to everyone."

NAR's Equal Opportunity and Cultural Diversity program offers REALTORS® education, grants, programs and events related to fair housing and diversity. Through the At Home with Diversity course, REALTORS® learn how to best work with and serve diverse consumers. Since its inception in 1998, At Home with Diversity has addressed the topics of diversity, fair housing and business planning development in a full-day certification course. NAR's Employer-Assisted Housing Class gives REALTORS® tools to work with local employers, helping them implement employer-assisted housing benefits to help employees become homeowners.

Extensive training, grants and resources are also available to help REALTOR® associations and their members reach out to better serve today's diverse clientele. One workshop for association staff and their leaders, Leading with Diversity: A Business Imperative in a Changing World, helps REALTORS® associations incorporate diversity initiatives into their business models. In addition, NAR awards Diversity Initiative Grants to local and state associations twice a year, and Housing Opportunity Program Grants are also available to help associations support activities that create and expand affordable housing opportunities.

The Ira Gribin Workforce Housing Grants program, which concluded in December 2010, awarded $4.93 million to 52 state associations and foundations with the goal of stimulating REALTORS®' efforts to address the ongoing need for affordable workforce housing. An end-of-program report will be available in May 2011.

NAR has successfully built partnerships with housing groups and professional real estate organizations representing the multicultural community. In May, NAR will join five real estate diversity partners in sponsoring the HOPE (Home Ownership Participation for Everyone) Awards. The awards recognize outstanding individuals and programs that are increasing minority homeownership, revitalizing communities and expanding affordable housing opportunities.

"NAR is committed to increasing awareness about fair housing laws and promoting inclusion and diversity in our nation's communities," said Phipps. "For REALTORS®, every month is fair housing month. With every transaction REALTORS® strive to promote inclusion, diversity and fairness in the housing industry."

For more information, visit www.realtor.org.

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Practice Good Hearth Health: Fireplace Safety Basics

2011-03-03T17:29:00.000-07:00

RISMEDIA, March 2, 2011—In the winter, there’s nothing as idyllic as sitting by a gently crackling fireplace with a cup of cider or hot cocoa, feeling the warmth from your toes to your soul. The essence of comfort and luxury, a fireplace is the focal point of a home. But, in order to ensure many more years of fireside moments—and to keep something beautiful from becoming potentially dangerous—some regular maintenance is required, as well as a keen eye toward safety.

When most people think of fireplaces, they recall traditional ones, found in older and classic homes. In a traditional fireplace, the fire is encased in a metal firebox lined with special firebrick. Smoke moves up a flue, which is typically a tile or metal liner inside a masonry chimney. A flue damper keeps air from escaping when the fireplace isn’t being used; and the smoke shelf, behind the damper, stops outside air from coming in and pushing harmful smoke into the living area.

Besides traditional fireplaces, though, there are plenty of other types. A heat-circulating fireplace produces some radiant heat, but mainly warms the air that circulates around the firebox; some have a fan that increases the air flow. A gas fireplace is mostly decorative and takes gas logs. By contrast, direct-vent fireplaces are like a wood-burning heat circulator—cool air enters at the bottom, is warmed, and rises out the vent at the top; the CO is expelled out the rear, so there is no need for a chimney. Finally, if you have a modern home or apartment, there’s a good chance you’ll have a modern wood stove—they’re desirable because they’re more efficient that a heat-circulating fireplace.

No matter what type of fireplace you have, maintenance is key to safety. First, before the winter, it’s essential to call in a professional to clean the chimney. Creosote can build up in the chimney and start fires. Typically, as soon as the creosote in the chimney is 1/8-inch thick, that’s an automatic sign to call in a professional who will also check the firebox and masonry and fill in potentially dangerous cracks.

Another important safety note: Chimneys must be lined with metal, or the appropriate tile. Older homes (especially those built before 1950) are typically not. If you have just moved to your home, this is something that a certified home inspector should have found during an inspection; but, if you’re not sure, call in a reputable, professional home inspector to assess the safety of the chimney. The inspector will give input on required repairs you need to have done.

Beyond professional maintenance, it’s essential for the homeowner to take safety precautions too. Here are some of the most important:
-Never burn pine or soft wood; it generally causes extremely fast creosote buildup.
-If you have a wood stove, make sure ashes don’t build up too much. One or two inches of ash is optimal; more than that, and you should remove some.
-Never burn pressure-treated or painted wood; it can cause noxious fumes.
-Never burn any kind of trash—paper, Christmas trees, anything at all—in a wood-burning fireplace. Only use logs made for wood-burning fireplaces.
-Never burn charcoal in a wood-burning fireplace.
-Even though it’s tempting to have as big a fire as possible, never overload a fireplace or wood stove; it can cause restricted air flow and dangerously high levels of combustion.
-Use logs specifically designated for your type of fireplace. If the label on the log’s packaging doesn’t detail this clear enough (which it should), ask a representative at the store you’re buying it from.
-If you have a direct-vent fireplace, make sure that it’s underwritten by Underwriters’ Laboratories (the “UL” symbol will be prominently listed on the packaging) or by the American Gas Association (AGA).
-Play it safe. If anything looks or smells out of the ordinary while you’re operating your fireplace, call a professional for servicing.

Charles Furlough is Vice President of Pillar To Post Professional Home Inspections.
For more information, visit www.pillartopost.com.
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Contract Chronicles...

2011-02-25T12:34:00.000-07:00

In section 8.2., of the Colorado Contract to Buy Sell, there is outlined a contingency for Matters Not Shown by the Public Records, or Off-Record Matters Deadline
The Contract Reads:
Seller shall deliver to Buyer, on or before Off-Record Matters Deadline true copies of all leases and surveys in Seller’s possession pertaining to the Property and shall disclose to Buyer all easements, liens (including, without limitation, governmental improvements approved, but not yet installed) or other title matters (including, without limitation, rights of first refusal and options) not shown by the public records of which Seller has actual knowledge. Buyer shall have the right to inspect the Property to investigate if any third party has any right in the Property not investigate if any third party has any right in the Property not shown by the public records (such as an unrecorded easement, unrecorded lease, boundary line discrepancy or water rights). Written notice to terminate based on any unsatisfactory condition (whether disclosed by Seller or revealed by such inspection, notwithstanding § 13), in Buyer’s sole subjective discretion, by or on behalf of Buyer shall be delivered to Seller on or before Off- Record Matters Objection Deadline (§ 3). If Seller does not receive Buyer’s written notice to terminate on or before Off-Record Matters Objection Deadline (§ 3), Buyer accepts title subject to such rights, if any, of third parties of which Buyer has actual knowledge.

So...long story short, any agreements you have with neighbor or leases you have established and not recorded, ANYTHING, that may affect the marketability or enjoyment of the new owner, you should surrender by the dates specified for Off-Record Matters Deadline.

FHA Raising Monthly Mortgage Insurance Premium

2011-02-22T16:45:00.001-07:00

FHA Raising Monthly Mortgage Insurance Premium and what that means to you...

FHA will be raising their monthly mortgage insurance premium on April 18, 2011 by 0.25%. What this means to you is that with a $200,000 FHA loan your monthly payment will increase by approximately $40. You will also need approximately $1,200 in additional income per year to qualify for this increased monthly payment. In order to avoid this increased mortgage insurance payment be sure that you have a property under contract and have your lender register an FHA 12964z case number prior to April 18, 2011. It is not necessary to close your loan before April 18, 2011. For additional information call Glen Holguin of Guild Mortgage at 303-253-4369 or email GlenH@GuildMortgage.net.

Around the Home: Get Rid of Electronic Waste the Right Way

2011-02-05T14:20:00.000-07:00

RISMEDIA, February 5, 2011—(MCT)—Electronic waste is on the rise in the United States at a startling rate. In fact, it is growing at nearly three times the rate of any other kind of trash. It is estimated that 85% of electronics that can be recycled or donated aren’t. Think about it. What really happens to all the cell phones, computer equipment, televisions, and other electronic devices we get rid of when they break or we upgrade? Many times, we just throw them out where they are sent to a landfill. Electronics contain toxic heavy metal components like lead, cadmium, beryllium, and mercury that can pollute the environment, but they also contain valuable metals like gold, silver and copper. Instead of leaving old or broken electronics in our landfills, get those metals disposed of safely or recycled back into the next generation of electronics. It’s cost-effective for the manufacturer and the customer. And, it’s easy.

Who doesn’t have a used computer, hard drive, printer or video game players stuck in a closet around the house? Consider donating them to a local non-profit, like Goodwill. They have a partnership with Dell called “Reconnect,” where nearly 2,000 participating Goodwill locations across the U.S. will accept any brand of computer equipment and certain Microsoft products such as Xbox and Zune.

Goodwill either sells or responsibly recycles the products and all the money made is used to create job training and employment opportunities for people in your community. Goodwill will wipe all of the personal information off of working hard drives. Non-working units will have a spike drilled through the hard drive to make sure your information stays safe.

If you have computer parts hanging around, you probably also have an old cell phone or two. Eighty percent of Americans own cell phones and upgrade, on average, every year to a year and a half. There are many ways you can give one of these millions of cell phones new life. Many cell phone providers will take back your old models and recycle them for you. And, AT&T, Verizon, Motorola and Sprint are some of the companies involved in the wireless recycling network of ReCellular, one of the world’s leading recyclers and resellers of cell phones. Cell Phones for Soldiers is another organization you can donate your old cell phone to. They provide prepaid calling cards for U.S. troops stationed overseas with every donated cell phone they receive. March of Dimes, Keep America Beautiful and Call To Protect are other non-profits that collect cell phones for their missions.

So go ahead, scour your closets, garage, kitchen drawers, and anywhere else that you stash old electronics that you and your family are no longer using. Then, do your part and make sure they do some good instead of being trashed.

(c) 2011 Terri Bennett Enterprises, LLC. ALL RIGHTS RESERVED.

Distributed by McClatchy-Tribune Information Services.

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Contract Chronicles...

2011-01-24T13:48:00.004-07:00

In the Colorado Contract to Buy Sell (revised for 2011), there are some changes that you should be aware of prior to inking a contract on your home of choice. One of the most significant changes is the verbiage regarding Inspection Objection and Inspection Resolution. The contract now reads:

10.2. Inspection Objection Deadline. Unless otherwise provided in this Contract, Buyer acknowledges that Seller is conveying the Property to Buyer in an “as is” condition, “where is” and “with all faults”. Seller shall disclose to Buyer, in writing, any latent defects actually known by Seller. Buyer, acting in good faith, shall have the right to have inspections (by a third party, personally or both) of the Property and Inclusions (Inspection), at Buyer’s expense. If (1) the physical condition of the Property, (2) the physical condition of the Inclusions, (3) service to the Property (including utilities and communication services), systems and components of the Property, e.g. heating and plumbing, (4) any proposed or existing transportation project, road, street or highway, or (5) any other activity, odor or noise (whether on or off the Property) and its effect or expected effect on the Property or its occupants is unsatisfactory in Buyer’s sole subjective discretion, Buyer shall, on or before Inspection Objection Deadline
10.2.1. Notice to Terminate. Notify Seller in writing that this Contract is terminated; or

10.2.2. Notice to Correct. Deliver to Seller a written description of any unsatisfactory physical condition which Buyer requires Seller to correct.

If written notice is not received by Seller on or before Inspection Objection Deadline (§ 3), the physical condition of the Property and Inclusions shall be deemed to be satisfactory to Buyer.

10.3. Inspection Resolution Deadline. If a Notice to Correct is received by Seller and if Buyer and Seller have not agreed in writing to a settlement thereof on or before Inspection Resolution Deadline (§ 3), this Contract shall terminate on Inspection Resolution Deadline (§ 3), unless Seller receives Buyer’s written withdrawal of the Notice to Correct before such termination, i.e., on or before expiration of Inspection Resolution Deadline (§ 3).

So what does this mean? Well, in previous versions of the contract there was no mention that a property would convey "as is, where is" proposed by the state document. This would be addressed in the additional provisions sections or 78230n addressed in the counter proposal by the seller. So now, all properties convey "as is" "where is" and the buyer, similar to times passed, would need to submit a Notice to Correct or Notice to Terminate if an unsatisfactory condition existed.
Furthermore, in previous versions of the contract, if issues were not mutually agreed upon by the Inspection Resolution Deadline, the contract would terminate 24 hours after that deadline. A good common sense change to make the deadline an actual deadline. As far as the presumption of "as is" goes...it has has always been up to the buyer to either request repairs or terminate the contract. Any buyer acting in "good faith" should always perform their due diligence when purchasing a home and consult with a real estate professional on their options.

Market Snapshot....

2011-01-23T21:12:00.000-07:00

News on the U.S. residential real estate market did not wane in 2010. The year was particularly noteworthy for what may be a reversal of the housing market turnaround that was occurring in late 2009 and early 2010, in spite of the November 2009 extension of tax credits for homebuyers into 2010.

The Worker, Homeownership, and Business Assistance Act created a tax credit of up to US$ 6,500 for qualified homebuyers for purchases after November 6, 2009 and up to April 30, 2010, or purchased by September 30, 2010 and under contract by April 30, 2010. Throughout most of 2010, there was much discussion and debate about whether such a credit would provide the needed stimulus to get the housing market permanently on the path of real recovery, or if it would prove to be just a temporary boost, benefiting a few at the expense of many.

After some signs of recovery in the spring, home sales, housing starts, and home price appreciation moved back to, or close to, record lows during the latter half of 2010. After moderating in late 2009/early 2010, inventories of unsold homes, as measured in both units and months’ supply, are back up at levels witnessed in 2008 when the housing market was in the midst of its crisis. Mortgage delinquency rates and new foreclosures continued to increase in both the prime and sub-prime loan markets and the national unemployment rate remains high, fueling further speculation about the strength or duration of any recovery in the housing market

The S&P/Case-Shiller Home Price Indices1 were a primary topic of discussion throughout the year. At both the national and regional levels, the indices clearly illustrate the historic declines in home prices beginning in mid-2006, the modest recovery that began in the early spring of 2009, and the recent reversal that seems to be occurring, as observed in the latest reported data.

In Denver, the non-seasonally adjusted figures show that home prices declined as well as number of homes on the market.

A very exciting announcement!!

2011-01-17T08:16:00.000-07:00

A very exciting announcement!!

Wells Fargo Home Mortgage and Colorado Mortgage Alliance (an affiliate of Well Fargo Home Mortgage) have made a policy change for FHA PURCHASE LOANS!!!
Effective January 15th, 2011, (purchase money only) credit scores down to 500!!

Their minimum credit score prior to January 15th was 600! This could open up financing options to many buyers that were previously denied due to credit scores.

The down payment requirements are increased.
500-579 == 10% down payment
580-600 == 5% down payment
600 and higher == 3.5% down payment
NO gift funds for required down payment
NO down payment assistance programs

Call me NOW so we can get you connected with the right mortgage professionals!

The More You Know: Energy-Efficiency Tax Incentives Extended

2011-01-08T11:08:00.000-07:00

The More You Know: Energy-Efficiency Tax Incentives Extended
By Keith Loria

RISMEDIA, January 6, 2011—In December Congress extended and modified energy-efficiency tax incentives for appliances, new homes and retrofits to existing homes. The tax legislation, signed into law by President Obama earlier this year, will continue to help raise the market share of efficient appliances, HVAC and insulation products, as well as new homes.

“For the last few weeks, the Alliance to Save Energy has urged policymakers to remember the pitfalls of not extending these tax incentives—namely, higher energy bills and less disposable income for American families, who are counting on Congress to turn around our still-struggling economy,” said Alliance President Kateri Callahan. “Congress will help Americans keep their homes comfortable and their energy bills low in an unpredictable economy.”

The bill provides several energy efficiency-related provisions and will be in effect for 2011.

Included is a federal income tax credit of up to $500 for homeowners who make certain energy-efficient improvements. This popular energy-efficient home retrofits credit has returned to pre-Recovery Act levels with strengthened eligibility criteria.

For dishwashers, a $25 credit is given for models using no more than 307 kilowatt hours/year and 5.0 gallons of water/cycle. It goes up to $50 for models using no more than 295 kilowatt hours/year and 4.25 gallons of water/cycle; and $75 for those using no more than 280 kWh kilowatt hours/year and 4 gallons of water/cycle.

Clothes washers can get a credit of $175 for top-loading models that meet/exceed 2.2 MEF, and does not exceed 4.5 WCF or $225 for top-loading models that meet/exceed 2.4 MEF, and does not exceed 4.2 WCF, or front-loading models that meet/exceed 2.8 MEF and do not exceed a 3.5 WCF.

For refrigerators, models that use 30 percent less energy relative to the federal standard will receive a $150 credit, while those with 35 percent less energy will receive $200.

There is also limited credit for building materials including insulation, sealing products, certain types of roof and energy-efficient windows at up to 10 percent of their cost. Windows also are subject to a flat $200 limit.

“These incentives have substantially raised the market share of efficient products and new homes, saving consumers money, creating jobs, and helping to make efficient products the long-term norm,” said Steven Nadel, Executive Director of the American Council for an Energy-Efficient Economy.

The bill also contained credits for manufacturers of energy-efficient appliances, a credit that could be claimed for installation of electric vehicle charging stations and an increased maximum value for pre-tax, employer-provided transit benefits.

“The tax incentives adopted are a welcome signal to U.S. consumers, who currently face rising energy costs in a still-uncertain economy, that Uncle Sam will help them pay for energy efficiency improvements to make their homes more comfortable and their energy bills more affordable for years to come,” Callahan said.

While Congress is expected to extend most of the expiring federal energy efficiency tax incentives, it is not extending the incentive for hybrid trucks and buses. This extension had been included in previous House and Senate bills, but was dropped from the final bill.

“While we are happy to see most of the energy efficiency incentives extended, we are disappointed that the hybrid truck incentive is not being extended; we hope Congress will rectify this omission in 2011,” Nadel said.

Congress is expected to consider further extensions of these incentives into 2012 and beyond next year.

For more information about energy efficiency tax incentives, contact us or visit the U.S. Department of Energy website at http://www.energy.gov/taxbreaks.htm.

Existing-Home Sales Resume Uptrend with Stable Prices

2010-12-30T19:39:00.000-07:00

RISMEDIA, December 23, 2010—Existing-home sales got back on an upward path in November 2010, resuming a growth trend since bottoming in July, according to the National Association of REALTORS®. Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, rose 5.6% to a seasonally adjusted annual rate of 4.68 million in November from 4.43 million in October, but are 27.9% below the cyclical peak of 6.49 million in November 2009, which was the initial deadline for the first-time buyer tax credit.

Lawrence Yun, NAR chief economist, is hopeful for 2011. “Continuing gains in home sales are encouraging, and the positive impact of steady job creation will more than trump some negative impact from a modest rise in mortgage interest rates, which remain historically favorable,” he said.

Yun added that home buyers are responding to improved affordability conditions.

“The relationship recently between mortgage interest rates, home prices and family income has been the most favorable on record for buying a home since we started measuring in 1970,” he said. “Therefore, the market is recovering and we should trend up to a healthy, sustainable level in 2011.”

The national median existing-home price for all housing types was $170,600 in November, up 0.4% from November 2009. Distressed homes have been a fairly stable market share, accounting for 33% of sales in November; they were 34% in October and 33% in November 2009.

Foreclosures, which accounted for two-thirds of the distressed sales share, sold at a median discount of 15% in November, while short sales were discounted 10% in comparison with traditional home sales.

Total housing inventory at the end of November fell 4.0% to 3.71 million existing homes available for sale, which represents a 9.5-month supply at the current sales pace, down from a 10.5-month supply in October.

NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I., said good buying opportunities will continue. “Traditionally there are far fewer buyers competing for properties at this time of the year, so serious buyers have a lot of opportunities during the winter months,” he said. “Buyers will enjoy favorable affordability conditions into the new year, although mortgage rates are expected to gradually rise as 2011 progresses.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 4.30% in November from a record low 4.23% in October; the rate was 4.88% in November 2009.

“In the short term, mortgage interest rates should hover just above recent record lows, while home prices have generally stabilized following declines from 2007 through 2009,” Yun said. “Although mortgage interest rates have ticked up in recent weeks, overall conditions remain extremely favorable for buyers who can obtain credit.”

A parallel NAR practitioner survey shows first-time buyers purchased 32% of homes in November, the same as in October, but are below a 51% share in November 2009 from the surge to beat the initial deadline for the first-time buyer tax credit.

Investors accounted for 19% of transactions in November, also unchanged from October, but are up from 12% in November 2009; the balance of sales were to repeat buyers. All-cash sales were at 31% in November, up from 29% in October and 19% a year ago. “The elevated level of all-cash transactions continues to reflect tight credit market conditions,” Yun said.

Single-family home sales rose 6.7% to a seasonally adjusted annual rate of 4.15 million in November from 3.89 million in October, but are 27.3% below a surge to a 5.71 million cyclical peak in November 2009. The median existing single-family home price was $171,300 in November, which is 1.2% above a year ago.

Existing condominium and co-op sales declined 1.9% to a seasonally adjusted annual rate of 530,000 in November from 540,000 in October, and are 32.2% below the 782,000-unit tax credit rush one year ago. The median existing condo price was $165,300 in November, down 5.5% from November 2009. “At the current stage of the housing cycle, condos are offering better deals for bargain hunters,” Yun said.

Regionally, existing-home sales in the Northeast rose 2.7% to an annual pace of 770,000 in November but are 33.0% below the cyclical peak in November 2009. The median price in the Northeast was $242,500, which is 9.2% higher than a year ago.

Existing-home sales in the Midwest increased 6.4% in November to a level of 1.00 million but are 35.1% below the year-ago surge. The median price in the Midwest was $138,900, down 1.1% from November 2009.

In the South, existing-home sales rose 2.9% to an annual pace of 1.76 million in November but are 26.1% below the tax credit surge in November 2009. The median price in the South was $148,000, down 2.6% from a year ago.

Existing-home sales in the West jumped 11.7% to an annual level of 1.15 million in November but are 19.0% below the sales peak in November 2009. The median price in the West was $212,500, up 0.4% from a year ago.

For more information, visit www.realtor.org.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

December 2010 Market Snapshot

2010-12-27T09:09:00.000-07:00

The end is near. Another year is about to hike over the horizon and a new year will magically make its presence known. The years seem to slip by more quickly these days as we try to keep pace with the newest cell phone, computer or television. Technology has made things smaller, more efficient and quicker. We would die of boredom waiting for an old IBM 286 to boot up; all fifty pounds of it.

Despite all the changes in technology over the past couple of decades, the purchase and sale of real estate has remained pretty much the same. It is still a hands-on business. Ultimately, all the final decisions are made by humans, not computers.

The pace of a real estate market isn’t defined by the human element, though. Statistics rule here. How many homes have sold this week, this month, and this year? How does that compare with last year or the year before that? Are home values going up or down? How many homes are on the market for sale? All questions requiring statistical answers.

Here are some statistics compliments of Metrolist (the Denver Metro MLS). The year 2005 is used as a benchmark, since that has been the most active year for sales activity for the past six years throughout the Denver Metro and Northern Colorado real estate markets.

Through November/2005, there were 13,841 single family sales and 6,212 attached unit sales in Metro Denver. That compares to 9,944 single family sales and 4,006 attached unit sales through November/2010; approximately a 30% reduction in the number of sales. When looking at 2009 figures, single family home sales for 2010 are down about 13% (9,944 vs. 11,452); attached unit sales are down about 10% (4,006 vs. 4,450).

The number of Metro Denver active listings in November/2010 (4,956 single family; 2,737 attached units) vs. November/2005 (6,110 single family homes; 4,336 attached units) is down approximately 26%. November/2009 active listings were down compared to November/2010 figures (4,325 single family; 2,762 attached units).

Statistics can be confusing at times. They can be manipulated to represent a specific position or point of view. If looked at solely from the perspective of what the numbers are, they don’t lie. So, what do the numbers above tell us?

• Sales are down noticeably from 2005. They have trended down every year since 2005 for the Metro Denver market area.

• The number of active listings has vacillated when comparing the three years noted above. Over the course of the past few years, the number of active listings in the market collectively as a whole has decreased. Sellers have decided to (a) stay where they are and not move; (b) wait for the market to improve and then move; or (c) rent their home and move.

Real estate market values haven’t improved since 2005. The upper end of the market has experienced the greatest negative impact from the economy. The lower end of the market has been able to sustain itself. The government’s foray into assisting the housing market through tax benefits created some short-lived positive energy. Historic lows for home mortgage interest rates have helped people to refinance out of adjustable rate and interest only mortgages, but haven’t provided a noticeable shot-in-the-arm for home sales.

"What the improving economy means to home shoppers…"

2010-12-18T12:38:00.005-07:00

"What the improving economy means to home shoppers…"

By Cynthia M. Parker, ABR®, SFR®, CDPE®

One plausible scenario….

Interest rates will increase…it’s not a matter of if, it’s a matter of when. Property values will rebound…again, not a matter of if, it’s when. Now, while a 3% uptick over the term of a year, (which historically, is the national average) may not seem like much an increase, this combined with an increase in interest rates, will certainly make a significant difference in your buying power…and here’s how.

Say that your current interest rate (rate that you have been approved for, at least) is 4.75% on a 30 year fixed loan. Right now, you would be able to purchase and your monthly payment, with interest, would be about $1,044.00 per month on a home with a loan amount of about $200,000. A modest increase to 5.75% , (which is quite plausible for a year of recovery) would mean an increase to $1,168.00 per month, as reflected below.

So what does this mean?

Well, for one, if you are approved for a loan today at $200,000, but believe that you will save more for a down payment or wait for better market conditions, you may actually be losing vital ground. An increase of merely 1.0% over one year could necessitate an additional $12,500.00 of down payment to offset the increase in interest rates, if you were not able to be approved for more. So, you would have to reduce your buying power by 12k…and if you add in a modest 3% increase in home prices over the course of that same year, it could mean nearly $20,000.00 …in less sales price of your new home!

In the Denver Metro area market, $20,000.00, give or take, makes a HUGE difference in the inventory available to you.

Example...

$ 150,000 200,000 250,000

4.75 % $783.00 $1044.00 $1305.00

5.25 % $828.00 $1104.00 $1380.00

5.75 % $876.00 $1168.00 $1460.00

6.25 % $924.00 $1232.00 $1540.00

6.75 % $973.00 $1298.00 $1622.00

* The table above displays current interest rates that are anecdotal for several common loan types for the purchase of a single family primary residence amortized for 30 years and only show principal plus interest, NOT CURRENT RATES. Many products are available. Refinance rates may vary from purchase rates. For additional information, please seek counsel from a licensed mortgage broker/banker, or call Cynthia: 303-300-8989 or email: Cynthia.Parker@remax.net for a list of top lending professionals, who will advise you accordingly.

If you or anyone you know has further questions or would like more info on taking advantage of the current market now, call me: 303-300-8989. I’d be more than happy to help!

Don't Blow Off Some Steam: 5 Steam Heating Maintenance Tips to Keep Your System in Good Shape

2010-12-08T12:46:00.001-07:00

RISMEDIA, December 7, 2010—You’re doing yet another Saturday open house tour, and, it seems, you’ve finally stumbled upon your dream house. The living room is perfect, the ceiling moldings have character, the kitchen practically begs you to bake an apple pie. Then, you look down, noticing something horrifying in the corner, making a subtle hissing sound. No, it’s not a rattlesnake—it’s a radiator.

Don’t walk out the door just yet: The radiator doesn’t have to be your enemy. While they’re typically found in older homes, and generally possess more service issues than modern heating systems, steam heating systems are perfectly easy to live with if you put in a little work and trust a qualified professional for regular maintenance.

In steam-heating systems, water is heated to its boiling point (212º Fahrenheit), and steam rises by convection through pipes to radiators located throughout the house. The steam releases heat into the air, then condenses; gravity sends the water back to the boiler for reheating. In a one-pipe system, the same pipe distributes steam to various radiators and carries the condensate back to the boiler. In a two-pipe system, one pipe supplies the steam, and the other returns the condensate to the boiler.

No matter what type of system, the boiler is the star of the show—a steam-heating system is only as good as its boiler. Luckily, a boiler can last 50 years—even longer given regular maintenance and care. Below are a list of key monthly and yearly maintenance issues—some you should call in a professional for, and others you can do yourself (depending, of course, on your level of comfort with the task). If your home has steam heat, chances are many others in the neighborhood do too, so if you’ve just moved to the area, ask your neighbors about the best boiler service people in town—then keep these five maintenance guidelines in mind:

1. Test the pressure-relief valve every month during the heating season by depressing the handle (located on top of the boiler, this valve allows steam to escape if the pressure in the boiler exceeds a preset safe level). If no steam comes out or the valve does not completely close, call a professional to have the valve replaced. It’s critical that this valve always be functioning properly.

2. Have a professional drain the boiler once a year. (To drain the boiler, a hose is typically attached to the boiler when it’s cold, and water is led into a floor drain, while the boiler’s interior is flushed with fresh water. This is best left to a professional).

3. Make sure the pressure of the boiler is always between two-10 psi. If the steam-pressure gauge indicator on the boiler is not in this range, call for service.

4. Open the boiler’s blowoff valve (at the bottom of the low-water cutoff) once a month when the system is off, to drain out all the sludgy water that could clog the whole system.

5. Open the valves at each end of the boiler’s steam-pressure gauge once a month. The water level should be in the middle of the valve. If water is not visible, shut off the boiler, let it cool, open the fill valve on the water inlet pipe and add water. If your system has an automatic water fill valve, call a service professional.

Finally: While the boiler needs the most maintenance and care, it’s important to keep the radiators in good shape too. In order to retain heat and operate efficiently, most steam pipes are covered with insulation (used as a heat shield, around and under the radiator cover).

Never tamper with this insulation. Visually check the condition of what you can see; if it looks excessively cracked, dry or crumbling, have it serviced or replaced. Never add, remove or change existing insulation yourself, as doing it wrong can present a severe fire hazard; always call a professional. If you’re in the home-buying process: when it’s time for the home-inspection, choose an experienced, professionally trained home inspector who is familiar with steam-heating systems and can accurately evaluate the condition of the existing boiler and radiators.

Charles Furlough is vice president, Pillar To Post Professional Home Inspections.

For more information, visit www.pillartopost.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Garage Fire Safety – Common Sense Minimizes Risk

2010-11-26T11:04:00.001-07:00

RISMEDIA, November 24, 2010—For many homeowners, a shiny new car is as integral a part of the home as the roof and the door—and it’s often right next to both. That’s because many people go to great lengths to protect the beloved car from the elements, chief of which is garaging it rather than leaving it out in the driveway. Garaging a car keeps it safe and snug—but, if the garage is attached to the home, some risks ensue. One major risk is fire. Most folks have plenty of combustible material in their garages, from gas and oil cans to cleaning products. Combine this with all the fuel and oil in your car, and one errant leak can ignite a devastating fire.

A less obvious, but just as dangerous, concern is carbon monoxide, which is potentially deadly. (In fact, now is the perfect time to check and make sure you have a CO2 alarm in your home and that it’s working). What makes carbon monoxide so scary is that it’s invisible—odorless, colorless, and tasteless—and it’s in your car’s exhaust. Always keep not only the exterior garage door open, but keep your car door open as well, when starting the car—the goal is to have as much ventilation directly to the outdoors as possible. Also, don’t idle the car in the garage; pull the car out of the garage as quickly as possible after starting the car. It sounds basic, but it’s easy to make mistakes and get distracted as soon as you get in the car.

Luckily, there’s no need to panic over these risks—you can minimize them. Just use common sense, and rest assured that you have a whole bunch of codes on your side. Those codes, and the builders who put them into practice, can help to greatly minimize the risk. Here’s a rundown of U.S. national fire codes for attached garages in single-family homes:

-Half-inch gypsum board is required on the garage side of any walls that the garage and house share, as well as any walls that support a ceiling in the garage that is connected to the house. This gypsum board helps prevent fire from igniting wall studs and quickly spreading to the house.

-Any garage ceilings common to the house must contain fire-resistant 5/8 Type X gypsum board.
-The door from the garage into the house must be fire-resistant; it must either have a 20-minute burn rating or, if not rated, must be solid and 1 3/8 inches thick. Lastly, this door must not open onto a room used for sleeping.
-The garage floor must be non-combustible.
-No supply or return air registers or ducts may be in the garage, under any circumstance. Any duct-work that passes through the garage with no openings (the only kind, as no openings are allowed) must be sealed with fire-stop caulking. The ducting material must be 26-gauge steel.

Note that these are national codes; many local codes, which usurp national codes where applicable, are even more stringent. And if you are worried about remembering the above when buying or selling a home, don’t worry—you don’t have to. Just choose a good home inspector, who will know all the rules regarding garage safety. Your only other job, besides exercising common sense, is to drive carefully and enjoy your new wheels.

Charles Furlough is vice president of Pillar To Post Professional Home Inspections.
For more information, visit www.pillartopost.com.
RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Cynthia M. Parker earns the coveted CDPE®, Certified Distressed Property Expert Designation

2010-11-26T10:33:00.001-07:00

Cynthia M. Parker, Broker Associate with RE/MAX Alliance, has been awarded the coveted CDPE ® designation.

Cynthia, who has been affiliated with RE/MAX for 4 years and licensed for over 6 years, has been helping buyers and sellers in her community, reach their goals. "I was helping people make sizable profits during the boom time and I feel an obligation to help distressed homeowners during the toughest times of their lives. I have been certified in other distressed courses and wanted to take my learning further so I could best be equipped to help. I believe you have to continuously be educating yourself in order to consult at your highest and best."

The Certified Distressed Property Expert®, or CDPE, designation is one of the premier designations for the REO and default industries. If you or someone you know are having a difficult time due to their home financing and experiencing economic hardships due to the home mortgage payment, give Cynthia M. Parker a call: 303-563-9700 or email: Cynthia.Parker@Remax.net.

Inspection Objection Deadline

2010-11-21T15:25:00.000-07:00

Inspection Objection Deadline is the contractual time line in the Colorado Contract to Buy Sell, in which the buyer has the right to conduct their inspections of the physical condition of the property and inclusions, at Buyer’s expense. This includes the physical condition of the property, the physical condition of the inclusions, any proposed or existing transportation project, road, street or highway, or any other activity, odor or noise (whether on or off the Property) and its effect or expected effect on the Property or it's occupants is unsatisfactory in Buyer’s subjective discretion.
And yes, subjective discretion means just that.

November 2010 Market Update

2010-11-20T14:30:00.000-07:00

Trend: The general direction followed by a road, river, coastline, or the like.

Real estate markets and economies are trend oriented. They have a tendency to follow specific paths. Sometimes those paths are a gently rolling road merrily going along. Other times those roads are fraught with hurdles i.e. rock slides, floods, snow storms, etc. When those occur, it takes time to clean-up the resulting mess.

That’s where the real estate market and economy are today; in a clean-up mode. Cleaning-up a financial market not fraught with rock slides, etc., but with fraudulent business practices, greed and stupidity. Many people have suffered. Others have prospered. There is always money to be made in difficult times.

The Federal Reserve has attempted to expedite the clean-up by pumping a gazillion dollars (that’s a lot) into the economy. All that is left for them to do now is to start giving money away. I would surmise the “free money” line would be slightly longer than the current unemployment line.

After the clean-up has occurred, life isn’t the same. Things have changed. People’s perceptions have changed. They have become more astute, more aware and more conscious of the circumstances of their lives. They are more analytical and patient. A knee-jerk reaction is no longer their immediate response. They attempt to think things through more clearly before they make a decision, be it to buy a home, buy a new car or even where to eat dinner.

In many ways, that is how the Metro Denver real estate market has evolved. It is a collective group of buyers and sellers attempting to make wise decisions. Is this the best time to sell my home? Is this the best time to buy a home? Will mortgage interest rates continue to improve or will they “trend” up? These are all legitimate questions.

Through October, the 2010 Metro Denver real estate market is trailing 2009 in the number of sold listings. Single family home sales are down about 11.86% (9,226 vs. 10,467). Attached units are off about 7.39% (3,722 vs. 4,019). Overall, the single family and attached unit market is down 10.62% year-to-date compared to 2009.

For October/2010, the number of active listings (single family homes and attached units) was down 6.75% from September figures (8,233 vs. 8,789). The 2010 year-to-date Absorption Rate for single family homes and attached units dropped from 202 days at the end of September to 193 days at the end of October.

As we enter the fall i.e. Indian summer and the winter, real estate activity typically begins to wane. Inventory levels should decrease as sellers decide to take their home off the market for the holiday season and regroup next spring. Buyers continue to look for bargains, but they have one foot in a hibernation mode.

There are some positives to consider in the road ahead for the Metro Denver real estate market. Although the number of sales for 2010 will be down compared to 2009, the Absorption Rate continues to remain relatively stable. It is possible the real estate market has reached a plateau; the final clean-up is in sight. That’s not to say there still aren’t some rock slides or snow storms out there waiting to wreak havoc, but the dark days appear to be less frequent as the national and local economies regain their footing.

Around the Home: Energy Saving Tips for Fall

2010-11-13T09:14:00.000-07:00

RISMEDIA, November 13, 2010—(MCT)—As autumn settles in and we set back the clock, rake the leaves and stoke the furnace, we have a lot of assumptions about the most environmentally friendly ways to proceed. But are those assumptions right? We’ve gathered a bushel of answers to some popular, autumn household eco questions.

Q: What is the most environmentally friendly way to dispose of my leaves?

A: The best option is to leave a coat of leaves on your lawn and chop them up with your lawn mower to create a layer of mulch that will break down and give your lawn nutrients. This is most easily done when the leaves are dry and crunchy rather than when they are thick and soggy.
Place the rest of the chopped leaves around outdoor plants as ground cover and in your compost heap.
Burning leaves creates undesirable emissions, and it’s illegal in most municipalities. Tossing them out in sealed non-biodegradable plastic bags sends them to landfills where they can’t decompose properly and will leak harmful greenhouse gases.
Blowing them around with a leaf blower creates carbon emissions and noise pollution while eating energy and stirring up allergens. A leaf blower can be useful to push foliage to the street or curbside in municipalities that offer street leaf sweeping. A rake also works just fine for this, however. Collected leaves are taken to farms or composting sites, according to local officials.
In municipalities that don’t have leaf-sweeping days, pushing leaves into the street, “can clog the drains in the street creating blockages and other problems,” Chicago Department of Streets and Sanitation spokesman Matt Smith said.

Q: What’s the best way to save electricity on lighting despite fewer hours of daylight?

A: In these darker months the No. 1 thing you can do to save money on your lighting bills, experts say, is switch from incandescent bulbs to compact fluorescent bulbs. CFL bulbs can reduce your lighting energy usage up to 75%. Still, some consumers worry about potential mercury exposure if the bulbs break and are bothered by the harsh white glow of fluorescent bulbs. Some of these concerns are allayed by widely available plastic-coated, shatterproof CFLs and bulbs on the lower end of the lighting spectrum that are designed to mimic the warmer tones of standard incandescent bulbs.
CFL bulbs, however, cannot be thrown out in the regular garbage. Instead, they must be recycled properly through municipal hazardous-waste collection programs or brought to participating stores that offer a recycling program.

Q: I like saving money by cooking cheaper cuts of meat in a slow-cooked stew. Are slow cookers the most energy efficient way to do this?

A: Slow cooker users may assume that because the appliance has a lower wattage (70-250) than a conventional electric oven (roughly 2,000), that they save energy. But Doug Cote (www.stretcher.com), a writer for the “Dollar Stretcher” website, notes that while slow cookers’ heating elements stay on continuously, electric ovens cycle their elements on and off as needed to maintain temperature, often only about one-fourth of the actual cooking time.
Assuming you would use a slow cooker on high for twice as many hours as you would use your electric oven, the energy usage could come out equal. Efficiency can also be affected by the number of other things you can cook simultaneously in your oven, how much heat you lose when you open it and how efficient and well-insulated the oven is. The short answer: there is no clear winner in this fight.
Even more energy efficient for cooking smaller dishes is the toaster oven. And most energy efficient of all, for things that it can cook well, is the microwave.
Still, as online energy adviser Michael Bluejay (aka Mr. Electricity) points out, in terms of preserving money, energy and the environment, what you eat matters much more than how you cook it. Meat and dairy require much more energy to produce than plant-based foods, and switching to a plant-based diet, even once a week, can make a significant impact on your pocketbook, energy usage and carbon footprint.

Q: I love using a fireplace but have heard that you actually lose more heat than you gain. How can I make my fireplace more efficient?

A: While fireplaces can be aesthetically pleasing, they are one of the most inefficient heat sources available, according to the EPA. Because most of your warm air goes up the chimney, experts have typically seen only a 10-20% heat return from wood logs, in the best-case scenario. Burning traditional logs can also greatly diminish indoor air quality with unhealthy gases and particulate matter, even when the fireplace is properly maintained.
Better options: If you choose to build a fire in your home, make sure your fireplace is in good shape and equipped with heat-retaining features (including blowers, intake tubes and radiant grates and inserts). And use fake logs. Now that many artificial logs have gone “green,” turning from petroleum-based binders to vegetable paraffin, they release 75% less carbon monoxide and 80% less particulate matter than real wood, according to the EPA. Plus they burn hotter, giving you a better chance of deriving some heat from them.
If you want to use recycled material, consider buying so-called “java” logs made out of used coffee grounds. Or roll your own logs using old newspapers, a broom handle and some water, as recommended by the EPA. But be sure to first remove glossy inserts that can emit unhealthy fumes.

Q: What’s the best way to stay warm in my house while saving money?

A: Other than closing leaks, changing air filters once a month, insulating well and sealing your doors and windows, the best and most efficient way to stay warm, experts say, is by keeping the heat local. Set your programmable overall thermostat very low—especially at night while you are sleeping and during the day when you are out of the house—and keep your personal space cozy with space heaters, warming bricks, hot water bottles, heating blankets and heated slippers.

That said, space heaters should be used with extreme caution—especially around small children—and you should opt for those with the latest safety features, such as automatic shut-off when they tip. Keep them away from combustible materials and high-traffic areas of your home, and plug them directly into the wall instead of using an extension cord. Oil-fueled radiant heaters are considered to be some of the safest because they never get hot enough to ignite a fire. If used properly, the energy used by space heaters will amount to far less than it would cost to heat an entire home.

This doesn’t mean you should shut off central air registers in certain parts of the house. That can damage your HVAC system by creating too much pressure and overheating your furnace. If you want to close off some rooms, consult a specialist to see what works best for your particular system.
If you think it’s cheaper to maintain a constant temperature rather than letting your house cool when you’re out and then warming it up when you’re home, think again. The U.S. Department of Energy estimates that for every degree you turn down your thermostat for an eight-hour period in the winter, you can expect a correlating percentage of energy savings.

(c) 2010, Chicago Tribune.
Distributed by McClatchy-Tribune Information Services.
RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Maximizing Space-How Much Do You Really Need?

2010-11-08T07:56:00.000-07:00

When planning your home décor, it is vitally important to understand your space needs. Do you have enough room to open any doors? Can you walk from one side of the room to the other without climbing over the furniture? Here are some rules to keep in mind when you plan your room update:

1. Living Room – Keep in mind that for good conversational and traffic flow, keep at least 4-10 feet between sofa and chairs. Place your coffee table between 14-18 inches from the sofa (although I would only use 18 inches if you have long arms!).

2. Family Room – To the above rules about sofa and chair placement, add the viewing area needed for a television. To view a 30 inch TV screen, the sofa or chair should be at least 90 inches away (but not so far that you have to change your glasses prescription to view!). To create an easy flow in any room, there should be traffic lanes which are at least three feet wide.

3. Dining Room - A seated adult at a round or square table usually occupies a depth of about 20 inches with at least 12-16 inches more to pull back a chair. Rectangular tables need at least 24 inches per person and about 32-36 inches clearance between table and walls. On the serving side, the table to wall distance should be at least 44 inches.

4. Bedroom – For maximum comfort, the distance from the bed to the wall should be at least 24 inches. To allow any door to open easily, there should be 36 inches between the bed and the door.

Knowing how much space you really need in a room can make planning your
space much easier. Be sure to measure your room height and length, the size of
windows and check to see of your room is “true” or square before you place your
furniture. Doing so will help avert a potential disaster like buying a king-size bed
for a queen-size room!

Pamela Cole Harris
http://www.homeandgardenmakeover.com
http://www.diy-homedecor.com.

Renovations Halted by Recession Leave Homes in Limbo

2010-11-04T12:57:00.000-06:00

RISMEDIA, November 4, 2010—(MCT)—Ralph and Gloria Dickerson began a $150,000 expansion of their Englewood, N.J., house in 2004. But the work dwindled to a halt several years ago, and foreclosure proceedings were started on the house last year. The property now sits empty, with exposed insulation wrap outside, peeling paint inside and signs on the lawn announcing: “For sale by owner.” When home renovations stall, properties like this turn into white elephants. If they go on the market, their unkempt state scares off many potential buyers. And in the meantime, neighbors fume at the eyesore in their midst.

“Are the neighbors upset? That’s the understatement of the year,” said Charles Klatskin, an industrial real estate broker who lives near the Dickersons’ house, in a neighborhood of large, graceful homes assessed at $1 million and up.

Municipal building codes generally require that home additions and renovations be completed within a certain period, and building officials typically fine homeowners who don’t comply. But enforcement can be tricky.

“How can you make someone spend money on their homes if they don’t have it?” asked Gary Montroy, construction official for Mahwah, N.J. In the most extreme cases, involving safety issues, the town can levy fines of up to $2,000 a day, he said. In one such case, Montroy is dealing with a homeowner who left a big job incomplete—including a pool that is not properly protected by a fence. After several years of fines, the homeowner now owes the town more than $350,000. The house is worth about $800,000, Montroy said. “We sent him violation notices; he ignored them,” Montroy said. “He has financial issues; I understand that. But all he needs to do is put up a chain-link fence. I don’t care about ‘pretty.’ I care about ‘safe.’”

Montroy says that if the homeowner puts up the fence, he will negotiate the fine to a more affordable level—probably around $10,000, he said. If this homeowner doesn’t comply, he said, the town could foreclose on the property to pay the fine, or the Municipal Court could order him jailed.

Some owners try to sell their unfinished homes. But that’s also complicated. Barbara Ostroth of Coldwell Banker in Oradell, N.J., for example, has a listing for a half-renovated house. The owners started an ambitious updating project more than 10 years ago, but the work stalled when the couple split up. Though the house has central air conditioning and three renovated bathrooms, some of the rooms remain stripped to the framework.

Now the three-bedroom house is on the market for $307,000. A contractor estimated completing the job would cost $80,000-$90,000, Ostroth said. “The buyer for this house is not someone who’s in the $300,000-$325,000 price range,” she said. “The buyer is in the upper-300s price range, with the imagination to see how it can be completed. The buyer has to be willing to take that on.”
Some half-finished renovations end up so badly damaged by rain and snow that they can’t be salvaged, building officials say. Beyond that, many buyers just don’t want the trouble of completing a renovation when there are plenty of move-in-ready houses on the market.

“Most buyers do not have the vision to see a partially finished home become a reality,” said Jay Shapiro, an agent with Prominent Properties Sotheby’s International Realty in Tenafly, N.J. He has worked with buyers who considered, and rejected, such homes. “Many buyers today do not have the time, skills or inclination to finish a home on their own,” Shapiro said. “If the buyer is neither a professional nor skilled in home improvement, trying to get the right contractor to price, execute and finish the job both on time and to the buyers’ satisfaction is fraught with danger.”
While these homes wait for a buyer, neighbors can feel exasperated by the lack of progress on the reconstruction. That’s certainly the case near the Dickerson house.
According to public records, the Dickersons got a building permit in June 2004 for a second-story addition, expansion of the kitchen and dining room and addition of a “hearth room” and deck on the first floor. They estimated the cost at $150,000, and started work.

Scott Mager and his wife bought the house next door to the Dickerson house in December 2005, and have seen no progress on the renovation since then. In fact, he said that he got the city to reduce the assessed value of his home, based on the condition of the Dickerson house. His home is currently assessed at $2.4 million, down from $2.5 million in 2009. “The fact that I have this thing next to my house is reducing its value significantly,” said Mager, CEO of a New York building-maintenance company.
The city Building Department has issued violation notices on the property and is continuing to investigate, according to Englewood Mayor Frank Huttle. “These situations shouldn’t arise, but obviously they’re there for a reason; obviously, the property owners must have some issues,” he said. “Action needs to be taken, because the property can’t stay in the state it’s in.”

The house, which is assessed at $1.66 million, was on the market for just under $2.5 million in 2007 and 2008, according to the former listing agent, Mary Lenk of Prominent Properties Sotheby’s International Realty in Alpine, N.J. Its current asking price could not be determined, because calls to the phone number listed on the “for sale by owner” sign were not returned.
Ridgeview Builders of Kearny, N.J., worked on the addition, but owner Jose Abreu said the Dickersons failed to pay all they owed him.

Abreu went to court and got a judgment against them for $13,400 in early 2008, but is not optimistic about his chances of collecting. “It looks like they don’t have anything for us to go after,” he said. His lawyer, James Cleary, said that since the home is in foreclosure, the lender’s claim would come before the builder’s.
The foreclosure proceedings were started in March 2009 by Merrill Lynch Credit Corp., which wrote a $1.2 million mortgage on the property in 2004. The law office representing Merrill Lynch said the case has not been resolved yet.

(c) 2010, North Jersey Media Group Inc.
Distributed by McClatchy-Tribune Information Services.
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Around the Home: Heating Bills Predicted to Rise 2.5 Percent This Winter

2010-10-30T14:03:00.000-06:00


By Ruth Mantell
RISMEDIA, October 30, 2010—(MCT)—U.S. households will spend 2.5% more on heating fuels this winter than last year, with fuel prices rising "moderately," even as slightly milder weather is expected, the Energy Information Administration (EIA) said recently. Average household spending for space-heating fuels from Oct. 1 to March 31 is expected to total $986, up $24 from last year. Households heating primarily with natural gas are expected to spend an average of $27 more this winter, up 4%. The gain in spending represents a 6% increase in prices, with a decline of 2% in consumption. Natural gas is the primary heating fuel for about half of U.S. households, the agency said. Meanwhile, households who heat their homes with electricity can expect to spend an average of $18 less, or 2%. The spending decline reflects a 4% dip in consumption, partially offset by 2% growth in prices. Electricity is the second most common heating source and is especially common in the South. Those consumers primarily using heating oil will spend $220 more, a 12% increase, the agency projects. Those heating with propane are expected to spend an average of $136 more, or 8%. Henry Margusity, senior meteorologist for AccuWeather.com, said overall temperatures are projected to be milder from about Dec. 1 to March 31. "It's going to add up more on the mild side, which is good news for consumers," Margusity said. "There won't be a big, deep freeze over the country for an extended period of time. We are probably not going to see weeks of brutally cold weather." On a regional basis, temperature projections vary widely, EIA noted. The Northeast is projected to be 5% colder than last year, but the South is expected to be 15% warmer. (c) 2010, MarketWatch.com Inc. Distributed by McClatchy-Tribune Information Services. RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

6 Reasons Why It's Smart to Buy a Vacation Rental Home Now

2010-10-23T12:33:00.000-06:00

RISMEDIA, October 23, 2010—Lately, you've been thinking a lot about investing strategies. You have a small nest egg that needs to grow, but frankly you don't trust the stock market. And while real estate has been somewhat of a rocky road in recent years, it's still a solid long-term investment strategy—and clearly we're in a buyer's market. But you aren't really interested in being a landlord. So what can you do?

Christine Karpinski has a suggestion: Purchase a vacation home and rent it out to travelers.

"Vacation homes are almost always a good investment," says Karpinski, director of Owner Community for HomeAway—one of the world's leading vacation rental marketplaces—and author of How to Rent Vacation Properties by Owner, 2nd Edition: The Complete Guide to Buy, Manage, Furnish, Rent, Maintain and Advertise Your Vacation Rental Investment.

"First, if you're looking for a good long-term investment, real estate tends to be a good bet," she adds. "Second, vacation properties have the ability to pay for themselves, and owners often earn a profit in rental income. Third, the investment comes with the desirable perk of having a place at the beach or in the mountains to call your own. And finally, there has never been a better time to buy a vacation home—it's like the planets have all lined up perfectly."

If you are interested in purchasing a vacation home, Karpinski describes why there's never been a better time to go vacation rental house hunting:

There have never been so many properties on the market. For potential home buyers, there is a silver lining to the slow economy and the housing crisis: Most vacation markets are chock-full of buying opportunities. Once you've pinpointed the vacation rental market that is right for you—The coast? The mountains? A ski resort area?—you will likely have a lot of properties to choose from.

Prices aren't going to get much better. In fact, they're the lowest they've been in five to ten years. If you're pretty sure you want to buy a vacation home "someday," you might want to quit procrastinating and pull the trigger, says Karpinski.

Interest rates are very favorable for purchasing. Today, mortgage interest rates are low. Bottom line: Take advantage of them while they last.

You have access to the best real estate professionals. Anyone connected to the housing market who managed to survive the housing crash had to be at the top of his or her game. That means the agents left standing today—including the ones you'll be working with in your search for the perfect vacation home—are possibly the best of the best.

It's never been easier to rent your vacation home. As mentioned earlier, vacation home rentals have never been more popular. More and more consumers are choosing to stay in cozy condos, cabins, and chalets instead of cramped, impersonal hotel rooms when they travel. And as market demand has surged, organizations have sprung up to help connect vacation homeowners with these potential renters.

If you buy now, you can be ready for the 2011 peak season. It's true that the longer you wait to buy, the likelier it is that interest rates could rise. But there's another reason not to procrastinate: If you buy now, you'll have time to get your property ready for peak rental season. Experienced vacation homeowners often find that the rental fees generated during the twelve weeks between Memorial Day and Labor Day pay their mortgages for an entire year—and most inquiries come in between January and March.

"Even turnkey properties aren't really turnkey," notes Karpinski. "To get your property up to your standards, there will very likely be things you will want to spruce up. Rooms might need repainting. Decorating will need to be done. And the yard might need some work. Buying now will provide you with a cushion of time to get the home ready for your guests, take great photos for your property listing, and start marketing it to potential renters."

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Single-Family Housing Starts Rise 4.4 Percent in September 2010

2010-10-21T20:48:00.000-06:00

RISMEDIA, October 21, 2010—Nationwide housing starts edged up 0.3% to a seasonally adjusted annual rate of 610,000 units in September, due entirely to a 4.4% gain in the single-family sector, according to U.S. Commerce Department figures.

"Builders are cautiously responding to the small improvement they are seeing in interest among potential home buyers," noted Bob Jones, chairman of the National Association of Home Builders (NAHB) and a home builder from Bloomfield Hills, Mich. "However, as consumer demand for new homes rises, a major limiting factor for a housing recovery continues to be builders' inability to access credit for new construction."

"Today's numbers are in line with our latest builder surveys, which indicate that stability is slowly returning to the new-homes market following the declines we saw upon expiration of the home buyer tax credits and the slowing of economic growth this summer," added NAHB Chief Economist David Crowe. "Builders are receiving more inquiries from potential customers and are carefully responding to renewed consumer interest, although their limited access to credit for new housing production is definitely hampering this process."

All of the increase in housing production in September was due to improvement on the single-family side, which posted a 4.4% gain to a seasonally adjusted annual rate of 452,000 units—the strongest level since May of this year. Multifamily starts, which tend to exhibit greater volatility on a month-to-month basis, recorded a 9.7% decline to a 158,000-unit rate following a big increase in August.

On a regional basis, starts activity was mixed, with two regions posting gains and two posting declines for September. The Northeast and South registered gains of 2.9% and 4.8%, respectively, while the Midwest and West registered declines of 8.2% and 3.6%, respectively.

Permit issuance, which can be an indicator of future building activity, declined 5.5% to a seasonally adjusted annual rate of 539,000 units in September. This dip was due entirely to a 20.2% decline to a 134,000-unit rate on the more volatile multifamily side, while single-family permits remained virtually unchanged, edging up 0.5% to a 405,000-unit rate.

Regionally, permits fell across the board in September, with the Northeast posting a 1.5% decline, the Midwest a 4.3% decline, the South a 4.7% decline, and the West a 10.6% decline.

For more information, visit www.nahb.org.

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Alternative Earnest Money Deadline

2010-10-20T19:05:00.000-06:00

In the Colorado Contract to Buy Sell, the Alternative Earnest Money Deadline is the time that you have to deliver Earnest Money, to the Seller, Seller's Agent, of Title Company. In order to have a "contract", consideration has to be rendered. Earnest Money is that consideration. Allowing for a contingent delivery date of earnest money (the consideration), enables the buyers and sellers to deliver contracts via electronic deliver and still have an enforceable contract.

October Economic Snapshot

2010-10-20T18:30:00.000-06:00

Over the course of the past eighteen months, the Federal Government implemented the Homeowner Tax Credit Program. The Federal Reserve lowered the Federal Funds Rate for member banks to borrow funds to nearly zero percent. Home mortgage interest rates have fallen to the lowest level in more than fifty years. Now, members of the banking industry are taking a sabbatical by not foreclosing on homes. All of these factors were/are designed to stabilize and stimulate the housing industry. Despite all these efforts, the housing market continues to quietly drift along.

There have been spurts of activity. The Metro Denver real estate market was UP in sales activity at the end of June/2010 as compared to the end of June/2009 for attached units (+16%) and UP for single family homes (+8%). But those numbers have dropped since the Homeowner Tax Credit Program ended in late April/2010. Through September/2010, single family home sales are down about 5% Y.T.D. compared to Y.T.D. 2009; and down around 4% for attached units. Thus, the Metro Denver real estate market hasn’t sustained itself.

One of the best indicators of real estate market activity is the time it takes for the market to absorb itself. A healthy real estate market is thought to be around six months of available inventory. That time frame provides buyers with an adequate selection of homes and sellers with a reasonable amount of time to sell. The current “absorption rate” for the Metro Denver real estate market stands at approximately 198 days. The absorption rate in September/2009 was at 154 days. As we enter the fall and winter, the absorption rate should be around the same level as inventory levels and sales dwindle.

The question now becomes, “What’s next?” What magic elixir can the Federal Government and banking community pull from their proverbial hat? The answer isn’t putting more lipstick on the pig, because you still have a pig. The answer always comes back to one four-letter word; the word that drives the economy and fosters the housing industry. That word is “jobs”. Jobs are the Holy Grail; the path to redemption; the pot of gold at the end of the rainbow. Without them, you have a stagnant economy, which naturally leads to a declining housing market.

Bank of America Moratorium to End in State Soon

2010-10-19T11:14:00.000-06:00

InsideRealEstateNews- October 18, 2010-Bank of America has begun processing foreclosures in 23 states, but Colorado is not one of them.

“Colorado is one the 27 states,” in which the foreclosure moratorium is still in effect, BofA spokeswoman Jumana Bauwens told InsideRealEstateNews today in an e-mail. However, the moratorium in Colorado likely will not be in effect much longer. ”We have no specific date yet, but likely (it will end) in the next few weeks,” Bauwens added, regarding resuming foreclosures in Colorado.

BofA halted foreclosure actions in all 50 states on Oct. 8, in the wake of allegations that foreclosure applications by it and other banks were not handled properly. One problem was the wide-use of “robo signers,” that automatically signed documents, instead of properly reviewing them.

BofA, in a press release released on Monday, said that that it has reviewed its process for resubmitting “foreclosure affidavits in the 23 judicial states with key stakeholders, including our largest investors. Accordingly, Bank of America today began the process of preparing foreclosure affidavits for submission in 102,000 foreclosure actions in which judgment is pending.”
Colorado, unlike the majority of states, exclusively uses the public trustee system for processing foreclosures, as opposed to a court system.

State by state review

Next Monday, BofA anticipates “affidavits will be resubmitted to the courts. Upon judgment, foreclosure dates will be set and Bank of America will resume foreclosure sales in such proceedings in the 23 judicial states. We will continue to delay foreclosure sales in the remaining 27 states until our review is complete on a state by state basis. We anticipate over the course of this pause, less than 30,000 foreclosure sales will have been delayed. As was the case for our judicial state review, our initial assessment findings show the basis for our foreclosure decisions is accurate. Our decision to review our process and later, to extend our review to all 50 states, has been an important step to give customers confidence they are being treated fairly.”

In the Denver area, there are only 415 homeowners with BofA loans facing foreclosure, according to an analysis by SKLD Information Systems. A poll on InsideRealEstateNews found that those who voted were about equally divided on whether BofA made the correct decision by temporarily halting foreclosure actions. Some experts feel that it only delayed the inevitable, threatens to worsen the foreclosure crisis, is is a slippery ethical slope, as it not fair to owners still making their mortgage payments, and it was a politically motivated decision. Others, however, believe that banks that helped to create the collapse of the housing market by making irresponsible loans, must follow the letter of the law when undertaking something as serious as foreclosing on a home. Also, some argue that a moratorium on foreclosures will give banks and borrowers more time to find an alternative to returning their home to the lender.

Contact John Rebchook at JRCHOOK@gmail.com.

What Foreclosure Freeze Means for First-Time and Move-Up Buyers

2010-10-14T19:56:00.000-06:00

RISMEDIA, October 14, 2010—Thousands of first-time and move-up buyers who hoped to make a foreclosed property their new home now face uncertainty, anxiety and possibly remorse as they worry that closing on their desired property could be in jeopardy. For many, the dream of homeownership could turn into agony if their home purchase is indefinitely delayed by a moratorium on foreclosures declared by some banks, the National Association of Realtors said. The moratoriums are needed, banks say, to review all of the foreclosures in their portfolios to make sure they’re in compliance with the law and that titles are clear.

NAR warned that a prolonged review process would have a damaging impact on many communities and hinder the nation’s economic recovery.

“As the leading advocate for homeownership issues, we understand that many lenders need a time-out to review their actions to ensure that homeowners are not improperly foreclosed on and that the lenders are following regulations and state laws. After that, the foreclosure process must resume quickly to return stability to families, the housing market and the economy,” said NAR President Vicki Cox Golder.

Over the past few months, NAR has met with officials of top banks to discuss market issues. NAR urged banking leaders to seek resolution quickly through loan modifications and the short sale process rather than through foreclosure. “We stand ready to help lenders develop better short sale procedures,” Golder said.

“There are valid foreclosures that should move ahead quickly, and we shouldn’t lump them in with mortgages that are suspect. That would cause deep problems in an already fragile market and throw many families into uncertainty,” Golder said.

Golder said that she is receiving reports from Realtors that the moratorium is already creating some anxiety among purchasers as transactions are being delayed and that some foreclosure listings are being removed from the market.

Compounding the problem is that the requirements for foreclosure vary by state, and practices to meet these requirements vary by firm. NAR is working with regulators, such as the Federal Housing Finance Agency; and encouraging them to identify and quickly address process problems.

In a letter to the U.S Treasury Department, the U.S. Department of Housing and Urban Development, and the Federal Housing Finance Agency, NAR stated the hope that banks would complete their foreclosure review expeditiously to assure that the rights of borrowers are protected and remove doubt that buyers will receive clear title to their purchase.

“NAR has long urged the lending industry to take every feasible action to keep families in their homes with a loan modification and, if that is not possible, to give them a ‘graceful exit’ through a short sale. These options are far better than a foreclosure, and nothing has driven this point home more clearly than the questions being raised about foreclosures. Lenders should place additional resources into processing loan modifications and short sales,” NAR wrote.

A year ago, NAR instituted a special short sale training program for its Realtor members to work more closely with banks in expediting mortgages at risk by resolving them through short sales and loan modifications. More than 51,000 Realtors have been certified in the program.

For more information, visit www.realtor.org.

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Homeowners Insurance: Winter Prep to Keep Costs Down

2010-10-11T18:53:00.000-06:00

RISMEDIA, October 11, 2010—Fall is the perfect time for homeowners to ensure their house is prepared for winter weather. A home should be winterized so it will be able to sustain damage severe weather may bring for those living in these climates. Additionally, if a house is winterized and damages do occur, the homeowners insurance policy will cover the house against the weather damage. HomeownersInsurance.net offers advice so people can prepare for winter weather and help avoid potential costly issues.

Homeowners must first inspect their house thoroughly so that possible issues can be avoided. The most important interior areas are the furnace and fireplace. HVAC professionals can inspect the furnace and clean out the ducts. Furnace filters should be replaced on a monthly basis to keep ducts clean.

Any flammable materials around the furnace should be removed.

If there is a hot-water radiator, the valves need to be opened slightly to bleed. When water is seen, they can be closed. If propane is used in the home, the tank will need to be filled. These should all be inspected to be sure they are working properly.

If there is a fireplace in the house, the screen or cap on the top of the chimney should be secure to keep out any birds, squirrels or rodents. The chimney should be cleaned by a professional occasionally because buildup of soot can cause fires. The damper should open and close properly and the mortar between the bricks should not be cracked. Any cracks should be fixed so heat does not seep into areas it should not be in, creating a fire hazard.

The next step in preparing for winter for safety and insurance purposes is to examine the exterior. Damage may not be evident immediately during winter months, and may only be noticed with the first spring rain. The doors and windows should be checked for cracks, and then fixed. If the homeowner has a basement, shields can be placed over the window wells for protection from snow melt. Any worn shingles or roof tiles should be replaced so melted snow does not seep into weak areas. Gutters and downspouts should also be unclogged and leaf guards should be installed.

Debris should then be cleared from the foundation to look for further cracks to repair.

For more information visit www.homeownersinsurance.net.

RISMedia welcomes your comments and questions. Email realestatemagazinefeedback@rismedia.com

Will Foreclosure Freezes Fix the Housing Market?

2010-10-07T09:16:00.000-06:00

RISMEDIA, October 6, 2010—(CBS MoneyWatch)—On Friday, Bank of America announced that it would suspend foreclosures in 23 states while it amended filed paperwork. That makes B of A the third major bank in two weeks to put its foreclosure process in limbo. Two days earlier J.P. Morgan Chase announced it would freeze foreclosures on more than 50,000 homes currently in receipt of a foreclosure filing. Last week, Ally Financial Inc. (the former GMAC Mortgage) also froze foreclosures.
All three banks have admitted to problems in the processing of foreclosures, including the use of so-called “robo-signatures,” employees who job it is to solely sign foreclosure docs without reviewing the paperwork.

Today, Ohio’s Secretary of State Jennifer Brunner asked federal prosecutors to investigate foreclosure irregularities in her state. Ohio has been pushing lenders to do better. On September 17, Ohio Attorney General Richard Cordray announced that the state court had affirmed its case and legal strategy of holding loan servicers accountable in the foreclosure crisis.
So will Chase’s and Ally’s foreclosure freeze ultimately fix the housing market? That’s one theory put forth in today’s New York Times. But, I’m not so sure. What will happen in the short run is that all of the banks will put a moratorium on the foreclosures. Law firms that have become foreclosures processing machines in places like Florida, will have a lot of extra time on their hands.
I suppose, in the best of all worlds, slowing down or freezing foreclosures might actually force lenders to take a harder look at ways they might keep folks in their homes, like doing more loan modifications. That would reduce the so-called “shadow inventory” and keep housing values from crashing again.

Again, that’s the best possible scenario. I think it’s too soon to tell. And, there’s a lot that’s going wrong with the economy right now (jobs, anyone?) which could complicate the view in any rose-colored glasses.
Right now, those who have Chase and GMAC on the top of their loans are getting a reprieve.
Ilyce R. Glink is the author of several books, including 100 Questions Every First-Time Home Buyer Should Ask and Buy, Close, Move In!. She blogs about money and real estate at ThinkGlink.com and The Equifax Personal Finance Blog, and is Chief Content Strategist at RealtyJoin.com, a community for real estate investors.
RISMedia welcomes your comments and questions. Email realestatemagazinefeedback@rismedia.com.

The Short Sales Pipeline: What’s Being Done to Get Them to the Table

2010-10-04T21:54:00.000-06:00

RISMEDIA, October 2, 2010—(MCT)—Despite industry and government efforts to make short sales—transactions in which the lender agrees to accept less than the mortgage amount owed by the homeowner—easier and more quickly accomplished, improvements are coming up, well, short. In some cases, the difference between the two numbers is being forgiven by the mortgage lender. In others, the homeowner must arrange with the lender to settle the rest of the debt.

Theoretically, short sales are less costly to a lender than foreclosures. There are fewer legal costs involved, for example. But the chief attraction of a short sale is that there is a buyer for the house, while a foreclosed property can sit in a lender’s portfolio for months.

That’s why the Obama administration in March appended short sales to its efforts to reduce foreclosures for homeowners who fail to make the grade for the federal Home Affordable Modification Program.

The new program, known as Home Affordable Foreclosure Alternative, is set to end December 31, 2012. Under its terms, a lender must offer a short sale in writing to a borrower within 30 days after the borrower is either ruled ineligible for mortgage modification or has been deemed unable to sustain payments in a trial plan.

Lenders are offered incentives for each completed sale. So far, the results have been less than definitive.

“We haven’t heard of any noticeable shifts” in the process that would indicate an improvement, said National Association of Realtors spokesman Walt Molony.

Anecdotally, the association has received fewer complaints about delays, he said, but there are no data to back that up.

Twenty-three percent of residential property owners nationally are “underwater” on their mortgages—that is, they owe more than their homes are now worth, according to CoreLogic Inc., of Santa Ana, Calif., which tracks foreclosure information.

For such homeowners, a short sale can also be the best option, real estate experts say, because it may not hurt their credit history as much as a foreclosure would.
As a result, the homeowner may be able to qualify for another mortgage sooner once they get back on their feet financially.

Yet real estate agents continue to have problems getting short sales through the pipeline.

Carolyn Sabatelli, an agent in Media, Pa., with 37 years’ experience, said she had so much trouble bringing short sales to the settlement table, she thought she was doing something wrong. Then she attended a short-sale seminar sponsored by Wells Fargo & Co., “and after listening to the complaints of about 200 agents, I realized that it was not me, but the system.” Recently, Sabatelli said, she wrote a $299,000 offer from a qualified buyer for a $289,000 short sale. The lender rejected it.

Difficulties aside, short sales can be great opportunities, said real estate agent Cheryl Miller. “Listings have to be priced attractively in order to generate activity; otherwise, buyers pass over them,” said Miller.

Even as short sales continue to lag, the number of agents with special credentials for handling such transactions is building.

“There’s been a rapid growth in the number of Realtors with the ‘Short Sales and Foreclosures Resource’ certification,” Molony said.

Though the certification was launched at the Realtors association’s November convention, by the end of February, 20,000 members had received it, he said.

By August 31, he added, that number exceeded 50,000, making it the “fastest-growing and most popular NAR certification.”

(c) 2010, The Philadelphia Inquirer.

Distributed by McClatchy-Tribune Information Services.

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Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

Foreclosure Homes Account for 24 Percent of All 2010 Second Quarter Residential Sales, According to RealtyTrac

2010-09-30T09:34:00.001-06:00

RISMEDIA, September 30, 2010—RealtyTrac, a leading online marketplace for foreclosure properties released its Q2 2010 U.S. Foreclosure Sales Report, which shows that foreclosure homes accounted for 24% of all residential sales in the second quarter of 2010 and that the average sales price of properties that sold while in some stage of foreclosure was more than 26% below the average sales price of properties not in the foreclosure process—down slightly from a 27% average discount in the first quarter.

A total of 248,534 U.S. properties in some stage of foreclosure—default, scheduled for auction or bank-owned (REO)—sold to third parties in the second quarter, an increase of nearly 5% from the previous quarter, but still down 20% from the second quarter of 2009.

“While foreclosure sales increased in the second quarter, non-foreclosure sales increased even more, spurred on by the home buyer tax credit that expired during the quarter,” said James J. Saccacio, chief executive officer of RealtyTrac. “That had the net effect of lowering foreclosure sales as a percentage of total sales during the quarter, but that may be a temporary dip as the removal of the tax credit could drive more buyers back to discounted short sales and REOs.”

Foreclosure sales by type in second quarter

A total of 151,290 bank-owned (REO) properties sold to third parties in the second quarter, up 3% from the previous quarter but down 28% from the second quarter of 2009. REO sales accounted for nearly 15% of all sales in the second quarter, down from nearly 19% of all sales in the previous quarter and down from nearly 20% of sales in the second quarter of 2009. REOs sold for an average discount of nearly 35%, close to the average discount of 34% in the previous quarter and also to the average discount of just over 35% in the second quarter of 2009.

A total of 97,244 pre-foreclosure properties—in default or scheduled for auction—sold to third parties in the second quarter, up nearly 8% from the previous quarter but down 3% from the second quarter of 2009. Pre-foreclosure sales accounted for 9% of all sales, down from nearly 12% of all sales in the previous quarter but nearly identical to the 9% of all sales in the second quarter of 2009. Pre-foreclosure sales, which are often short sales, sold for an average discount of nearly 13%, down from an average discount of nearly 16% in the previous quarter and down from an average discount of 19% in the second quarter of 2009.

Nevada, Arizona, California post highest percentage of foreclosure sales in second quarter

Foreclosure sales accounted for nearly 56% of all sales in Nevada in the second quarter, the highest percentage of any state despite a decrease in foreclosure sales from the previous quarter and from the second quarter of 2009. Nevada pre-foreclosure sales jumped 29% from the previous quarter and were up 2% from the second quarter of 2009, but Nevada REO sales decreased 14% from the previous quarter and were down 43% from the second quarter of 2009.

Arizona foreclosure sales accounted for 47% of all sales in the second quarter, the second highest percentage of any state. Pre-foreclosure sales in Arizona increased 9% from the previous quarter and 15% from the second quarter of 2009 while REO sales increased 15% from the previous quarter but were down nearly 34% from the second quarter of 2009.

Foreclosure sales accounted for 43% of all sales in California in the second quarter, the third highest percentage among the states. California pre-foreclosure sales increased nearly 8% from the previous quarter but were down 4% from the second quarter of 2009. California REO sales increased 1% from the previous quarter but were down 45% from the second quarter of 2009.

Other states where foreclosure sales accounted for at least one-quarter of all sales were Rhode Island (37%), Massachusetts (35%), Florida (34%), Michigan (33%), Georgia (27%), Idaho (27%), and Oregon (25%).

Ohio, Kentucky, California post highest foreclosure discounts

Ohio foreclosures sold for an average discount of nearly 43% in the second quarter, the biggest discount of any state. Ohio pre-foreclosures sold for an average discount of nearly 24% while the average discount on Ohio REOs was double that at nearly 48%.

With foreclosures selling at an average price that was 41% below the average sales price of non-foreclosure properties, Kentucky posted the nation’s second highest average foreclosure discount in the second quarter. Kentucky pre-foreclosures sold for an average discount of 27%, and Kentucky REOs sold for an average discount of 48%.

California foreclosures sold for an average discount of 39% in the second quarter, the third-highest discount among the states. California pre-foreclosures sold for an average discount of 29% and California REOs sold for an average discount of 46%.

Other states with average foreclosure discounts of more than 35% were Michigan, Tennessee, Pennsylvania, Georgia, Illinois and Iowa, along with the District of Columbia.

For more information, visit www.realtytrac.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

Median Sales Price and Days on Market: August 2010

2010-09-26T17:14:00.000-06:00

Economic Snapshot: September 2010

2010-09-26T17:03:00.000-06:00

As the announcer in baseball likes to say when one of the Rockies hits a home run: “You can kiss it goodbye!” Well, that’s about all that can be said about this summer of 2010. Poof! It was over before we even knew it. Now comes the fall; filled with football games, warm days and cool nights. Change is in the air.

The Metro Denver real estate market limped along through the summer months. No longer bolstered by the Federal government’s tax payer incentive program, home buyers and sellers were left to survive on their own. Mortgage interest rates dropped to historic lows, which spawned a plethora of homeowners interested in refinancing. Problem was, home values had slipped and appraisals were coming-in low; leaving many homeowners on the sidelines (or in the dugout) unable to take advantage of lower rates.

Year to date sales of single family homes in Metro Denver are down 7.12% through August/2010 (7,646 sold) as compared to August/2009 (8,232 sold).

On the surface, Metro Denver single family home values have stabilized and are improving. At this time last year, through August/2009, home values were down approximately 6.98% as compared to through August/2008 (average sales price was $279,639). Based on those numbers, average home value sales in Metro Denver have increased about 2.67% over the course of the past two years.

Real estate markets are composed of peaks and valleys; ups and downs. Between the peaks and valleys are plateaus. This is where a calmness normally prevails. People aren’t fighting the currents of change. They have become more accepting; more realistic. This may be where the Metro Denver real estate market is today.

From a real estate perspective, we may never again see the past in the future i.e. annual double digit appreciation of home values followed by annual double digit depreciation of home values. We now live in a more cautious and rational economic environment.

In real estate, there will always be opportunities to be profitable. They exist today, but they are predicated on a person’s willingness to either wait or take some degree of risk. How long the wait will be is unknown. How great the risk is also uncertain. But for some, the willingness to roll the dice will eventually be rewarded. They’ll hit a home run!

A look at the current real estate market. An information source provided by RE/MAX Alliance.

© 2010 RE/MAX Alliance. All rights reserved.

Contract Chronicles: What does Quick Possession Mean?

2010-09-26T16:11:00.003-06:00

In the multiple listing service, or MLS, there is frequently displayed, under the property description, the term "quick possession". This has been of concern to some of my clients because they believe "quick possession" to be synonymous with "short sale" (when the seller negotiates with their lien holders to accept less than what is owed on the home).

Quick possession, is a term used by the seller to denote that the home will be immediately available after close of escrow. In other words, there should be no "rent back scenario" from the seller or "seller finding home of choice, contingency". You should be able to take possession right after leaving the closing table.

If you have any questions about the MLS or other real estate questions, feel free to contact me. I'd be more than happy to help.

Obama Administration September Housing Scorecard Shows Continued Advances in Housing Market; Challenges Remain

2010-09-24T20:39:00.000-06:00

RISMEDIA, September 24, 2010—The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury recently released the September edition of the Obama Administration’s Housing Scorecard (www.hud.gov/scorecard), a comprehensive report on the nation’s housing market. The latest housing figures show continued signs of stabilization in house prices. Although existing and new home sales declined in July, recent data shows housing starts rebounded in August.

“Over the last 17 months, the Obama Administration has taken comprehensive action to keep interest rates at record lows, provide incentives to responsible home buyers, and help millions of families stay in their homes,” said HUD Assistant Secretary Raphael Bostic. “But we’re certainly not going to stop fighting to turn things around. That’s why we are focusing on successfully implementing the programs we have put in place, such as additional assistance on refinancing and helping unemployed homeowners stay in their homes, and will continue to monitor the market closely in case more is needed.”

“We’ve been steadily enhancing our programs to help struggling homeowners avoid foreclosure,” said Treasury Assistant Secretary for Financial Stability Herb Allison. “We understand that the foreclosure crisis can be highly localized and some regions have seen severe home price declines and faced severe unemployment. As a result, we have announced more than $4 billion for states hit hardest by this crisis. Our goal is to help build a sustainable, long-term housing recovery. As part of that effort, we have delivered critical support to struggling homeowners while the market continues to heal.”

The September Housing Scorecard features key data on the health of the housing market including:

-Families continued to benefit from the lowest rates in history on 30-year fixed mortgages. Since April 2009, record low rates have helped more than 7.1 million homeowners to refinance, resulting in more stable home prices and $12.7 billion in total borrower savings.

-Existing and new home sales shifted downward in July, though stabilizing housing prices drove improving expectations in some regions. As expected with the expiration of the Home Buyer Tax Credit, new and existing home sales showed a dip in July. At the same time, home prices have leveled off in the past year after 30 straight months of decline and homeowners added $95 billion in home equity in the second quarter.

-More than twice as many modification arrangements have begun compared to foreclosure completions. More than 3.35 million modification arrangements were started between April 2009 and the end of July 2010. These included more than 1.3 million trial Home Affordable Modification Program (HAMP) modification starts, more than 510,000 Federal Housing Administration (FHA) loss mitigation and early delinquency interventions, and nearly 1.6 million proprietary modifications under HOPE Now. The number of agreements offered continued to more than double foreclosure completions for the same period (1.24 million).

-More than 468,000 permanent modifications granted to homeowners; more than 33,000 homeowners received a HAMP permanent modification in August. In addition, servicers continue to work aggressively through their backlog of pending modifications, which is expected to decline in coming months. Homeowners in permanent HAMP modifications have a median monthly payment reduction of 36%, or more than $500 per month. Homeowners in permanent modifications saw their median first-lien housing expenses fall from nearly 45% of their monthly household income to 31%.

For more information, visit www.hud.gov.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

NAR Hails Bill to Hasten Lender Response to Short Sale Requests

2010-09-20T07:57:00.000-06:00

RISMEDIA, September 20, 2010—Homeowners who are underwater with their mortgage may find that relief is on the way from a bill strongly supported by the National Association of Realtors that would impose a deadline on lenders to respond to short sale requests.

The legislation, H.R. 6133, “Prompt Decision for Qualification of Short Sale Act of 2010,” was offered recently in Congress by U.S. Reps. Robert Andrews (D-N.J.) and Tom Rooney (R-Fla.). The bill would require lenders to respond to consumer short sale requests within 45 days.

“The short sale, which requires lender approval, is an important instrument for homeowners who owe more than their home is worth,” said NAR President Vicki Cox Golder, owner of a real estate company in Tucson, Ariz. “While the lending community has worked to improve the size and training of their short sales staffs, they still have a long way to go on improving response times.”

“As the leading advocate for homeownership issues, NAR believes that quicker attention to the short sale process is vital to help homeowners who are underwater and their communities, as well as the nation’s economy,” said Golder.

“Unfortunately, homeowners who need to execute a short sale are severely hampered because lenders (loan servicers) are unable to decide whether to approve a short sale within a reasonable amount of time. Potential home buyers are walking away from purchasing short sale property because the lender has taken many months and still not responded to their request for an approval of a proposed short sale price. Many consumers have mentioned that the delay in short sale price approval exceeds 90 days, and in many cases never arrives,” Golder said.

She commended Reps. Andrews and Rooney for their efforts on the bill and urged Congress to pass the bill quickly.

For more information, visit www.realtor.org.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Cynthia M. Parker recognized as a "Five Star Real Estate Agent " for 2010 by Denver's 5280 Magazine

2010-09-09T21:16:00.000-06:00

RE/MAX Alliance, the 3rd largest RE/MAX Franchise in the world, is pleased to recognize several real estate agents that have been nominated as a “Five Star Real Estate Agent” for 2010 by Denver’s 5280 Magazine.

5280 Magazine contracted with Crescendo Business Services, an independent market research company, to identify exceptional real estate agents in the Denver area. More than 92,200 recent home buyers, readers of 5280 Magazine, mortgage lenders and title companies were asked to submit an evaluation. Following a review of the information by a panel of local real estate experts, fewer than seven percent of all licensed real estate agents in the Denver area were chosen to be recognized as a FIVE STAR Real Estate Agent for 2010. Cynthia M. Parker, was one of the elite finalists.

This year’s list of real estate agents was published in a special section of the September issue of 5280 Magazine.

“We are very proud of all of our hard working agents," said Chad Ochsner, Broker Owner of RE/MAX Alliance. "This acknowledgement is of special importance as it is based on feedback from the consumer, and indicates the level of service provided. It is a true testament to the power of quality service and professionalism ALL RE/MAX Alliance agents provide and display for their clients.”

FHFA Establishes New Housing Goals for Fannie Mae and Freddie Mac

2010-09-08T17:27:00.000-06:00

RISMEDIA, September 8, 2010—The Federal Housing Finance Agency (FHFA) has sent a final rule to the Federal Register establishing new housing goals for Fannie Mae and Freddie Mac (the Enterprises) for 2010-2011. The Housing and Economic Recovery Act of 2008 (HERA) required FHFA to establish housing goals for the Enterprises for targeted segments of the mortgage market.

In previous years, the Department of Housing and Urban Development (HUD) set overall goals that measured the combined performance of single-family and multifamily mortgages. In contrast, the new goals required by HERA target specific segments of those markets. The new goals also reflect essential conservatorship requirements to ensure the Enterprises focus on core business activities to support the mortgage market while minimizing losses on their existing mortgages.

The final rule establishes three single-family, owner-occupied home purchase mortgage goals for low-income families, very low-income families and families living in geographical areas with lower-income populations, areas with high concentrations of minority residents and federally-declared disaster areas. The latter goal also includes a specialized subgoal to ensure that the Enterprises address housing needs in lower-income and minority areas. The final rule also contains a goal for single-family, owner-occupied refinance mortgages for low-income families.

The home purchase and refinance goals are expressed as minimum goal-qualifying mortgage shares of home purchase or refinance mortgages acquired by the Enterprises. The benchmark goal levels for the low-income and very low-income home purchase goals did not change from the proposed housing goals rule, however, the final rule adjusts the low-income refinance goal downward reflecting recent market conditions.

The benchmarks for the four single-family goals are:

-27% for the low-income home purchase goal;

-8% for the very low-income family home purchase goal;

-A percentage to be set annually by FHFA for the low-income/high minority/disaster areas home purchase goal (with a subgoal of 13% to measure acquisitions in low-income/high minority areas only); and

-21% for the low-income family refinance goal. The final multifamily goals reflect the current market conditions and are lower than those proposed initially:

-Fannie Mae’ s goal is to acquire mortgages that finance at least 177,750 low-income rental units and 42,750 very low-income rental units.

-Freddie Mac’s goal is to acquire mortgages that finance at least 161,250 low-income rental units and 21,000 very low-income rental units.

-The Enterprises must also report on their acquisition of mortgages involving low-income units in small (5- to 50-unit) multifamily properties.

Consistent with the FHFA proposed housing goals rule, the final rule offers two measures for goal compliance. The final rule sets a prospective or benchmark measure as well as a retrospective market-based measure to assess each Enterprise’s performance relative to the actual goals-qualifying share of the primary mortgage market. An Enterprise can satisfy a particular goal if it meets either of these measures. Previously, the Enterprises’ housing goal levels were set only prospectively.

Consistent with the proposed rule, the final rule prohibits housing goals credit for purchases of mortgages in private-label securities, including commercial mortgage-backed securities. The final rule revises the counting treatment in the proposed rule for loan modifications by allowing credit under the low-income refinance goal for permanent Making Home Affordable loan modifications.

FHFA does not intend for the Enterprises to undertake economically adverse or high-risk activities in support of the goals, nor does it intend for the Enterprises’ state of conservatorship to be a justification for withdrawing support from these important market segments.

As noted in the final rule, FHFA expects to take future regulatory action to address the housing goals treatment of purchases of multifamily loans that aid the conversion of properties that have affordable rents to properties that have less affordable, market rate rents. FHFA also may solicit further comments on how the housing goals can further promote sustainable homeownership and how multifamily subordinate liens can be structured to benefit low-income residents. The final rule is effective 30 days after publication in the Federal Register.

For more information, visit http://www.fhfa.gov/.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

Refinancings Soar as Mortgage Rates Remain Low

2010-09-03T10:15:00.000-06:00

RISMEDIA, September 3, 2010—(MCT)—For anyone under the age of 57, mortgage rates are now the lowest they’ve been during your life. This fact isn’t lost on a growing number of homeowners who have started a new wave of refinancings.

The Mortgage Bankers Association reported this month that refinancing applications are up 26% during the past four weeks and account for about 82% of all mortgage applications. Not since May 2009 has the volume of refinancing applications been higher.
“We are extremely busy, and it feels good,” said Charles DiPino, Jr., a senior vice president at New Penn Financial, a mortgage banker in Columbia, Md. “The phones are ringing off the hook.”

The calls started coming during the past month or so as rates continued to drop week after week. Mortgage giant Freddie Mac last week reported the average 30-year fixed-rate loan dropped to an average of 4.36%, a rate not seen since March 1953. (Harry S. Truman was president then, and the Academy Awards was shown on TV for the first time.)

Meanwhile, the 15-year fixed-rate mortgage hit a record low of 3.86% last week; while a one-year adjustable-rate mortgage averaged 3.52%, more than a percentage point lower than a year ago, according to Freddie Mac.
“Rates continue to hit new lows because of the weak U.S. economic recovery and the concern that it could fizzle altogether,” said Greg McBride, senior financial analyst with Bankrate.com.

But McBride and others advise against waiting to refinance in hopes that rates will fall further. If they do keep falling, that means the economy is getting even more anemic.

“You can win the battle and lose the war,” McBride said. “You might lose your job and not qualify for the lower rate.”

Refinancing to a lower rate, of course, can reduce your monthly payment. But some homeowners are refinancing to shorten the term of their loan, particularly baby boomers who don’t want this debt hanging over them in retirement, McBride said. And some want to trade in the uncertainty of an adjustable-rate mortgage for the dependability of a fixed-rate loan, he says.

Amy Crews Cutts, Freddie Mac’s deputy chief economist, said despite the uptick in refinancing applications, the numbers still aren’t as high as they should be, given the record-low rates.

Homeowners could be having difficulty qualifying, Cutts said. It could be their creditworthiness has deteriorated. Or their income dropped because of a loss of overtime or they were forced to take a new job that pays less, she says.

So who can qualify for these great rates?

“We’re still in a very tight credit market,” DiPino said. Homeowners with credit scores of 660 or 680 can qualify for refinancing, but the best rates are reserved for those with scores above 700, he says.

Also, generally if you don’t have a certain amount of equity in your home—20% for the very best rates—you might have to pony up more cash to get a new loan, McBride said. Homeowners’ equity has fallen along with a drop in home prices or because they took money out of their house the last time they refinanced, he says.

Some homeowners, though, won’t need that much equity in their homes to get super-low rates if they qualify for a streamlined refinancing program for loans owned by Freddie Mac or Fannie Mae, said DiPino, the mortgage banker. The program, which requires passing a credit check, is designed for those seeking a lower monthly payment, he says. In other words, you can’t refinance to tap the equity in your home.

Of course, there are other factors to consider, such as how long you’ll remain in the house before determining whether refinancing is for you. But with rates these low, it’s worth taking a look.

Should you refinance?

Mortgage rates hitting the lowest levels in decades have caused a rush of refinancing. Check out calculators at Bankrate.com to see if refinancing is worthwhile. The refinance calculator can tell you how much you’ll save and how long you must live in the house to recoup refinancing costs. The FICO score estimator will give you an idea of your credit score. To qualify for the best terms, you’ll need a score in the 700s.

(c) 2010, The Baltimore Sun.

Distributed by McClatchy-Tribune Information Services.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

Home Buyers Are Ready to Move from the Sidelines: Survey

2010-08-30T07:19:00.000-06:00

RISMEDIA, August 30, 2010—Are more Americans positioning themselves for home purchase? Although May’s data showed that home sales were down 26.8% as the home buyer tax credit concluded, a new survey conducted by Relocation.com suggests some families are opting for renting while they research—cash in hand—for deals on a new, more desirable home in their area.

Among the key findings of the survey: Of the 60% of individuals moving into rentals, 24% were previous homeowners who are renting temporarily while they look for a new home to purchase. Underscoring this finding is the fact that for many of these families, foreclosure was not the reason for moving—in fact, the number of consumers who moved due to foreclosure dropped by 70%.

Furthermore, many of these families stayed in the area (one in three made a short distance move of 100 miles or less), opting to remain in a location where they already know their schools, shopping districts and prime neighborhoods.

“While the housing market continues to flux from month to month, we’re seeing strong, continued interest as consumers looking to move start their research with us,” said Relocation.com Chairman and Founder Sharon Asher. “These findings suggest that more Americans may be poised to re-enter the housing market this year.”

The Relocation.com survey was conducted in early June 2010 and is a continuation of consumer surveys conducted since March 2009 to gauge moving and relocation attitudes and behaviors.
For more information, visit http://www.relocation.com/.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

MEDIAN SALES PRICE AND DAYS ON MARKET: DENVER JULY 2010

2010-08-25T14:28:00.000-06:00

Reverse Mortgages Pros and Cons

2010-08-23T09:43:00.000-06:00

RISMEDIA, August 23, 2010—(Real Estate Center) — Some parents are warning their kids not to bank on inheriting the homestead. Why? Because some parents are considering a reverse mortgage. Such mortgages may not be beneficial for everyone, but their popularity is definitely on the rise.

“Reverse mortgages are based on the home’s current value, borrower’s age and existing interest rates,.” said Dr. James Gaines, research economist for the Real Estate Center at Texas A&M University. “Borrowers can choose to receive loan proceeds in a single, lump-sum payment, as periodic predetermined payments, a line of credit or both.

Writing in the July issue of Tierra Grande magazine, the Center’s flagship periodical, Gaines explained the pros and cons of reverse mortgages.

Pros of a Reverse Mortgage

• A reverse mortgage has no fixed due date.

• No repayment is required as long as the home remains the borrower’s principal residence.

• Loans become payable upon death, sale, ceasing to live in the home or failure to keep taxes, insurance or maintenance current.

• Borrowers cannot be foreclosed on.

• Reverse mortgages are non-recourse loans. The amount owed can never exceed the selling price.

• Borrowers continue to hold title to the property.

• There are flexible payment options.

• Loan proceeds are not taxable.

• Underwriting and approval do not depend on the borrower’s current income or employment status.

• Would-be borrowers are required to meet with an independent financial counselor prior to getting a loan.

• The lender’s lien on the property is removed if the lender fails to make loan advances according to the agreement.

Cons of a Reverse Mortgage

• Homeowners must be at least 62 years old, own their home outright or have high home equity.

• Reverse mortgages provide around 65 percent of the home’s value. Loan-to-value ratios as high as 80 percent may be available to older homeowners, but higher closing costs and fees and shorter life expectancy offset some of this advantage.

• When the borrower dies, the loan and all accrued interest and costs become due and payable, typically necessitating the sale of the home. Heirs wanting the house must repay the entire amount due, which could be greater than the home’s value at the time. Inheritance planning is tricky.

• Relatively high up-front costs mean borrowers need to stay in the home longer (at least ten years) to make the loan financially attractive. This disadvantage has been offset by some lenders eliminating origination fees, setting aside service fees or both.

• Borrowers are responsible for all other ownership costs.

• Homes can be foreclosed on if borrowers cease to live in them for 12 consecutive months or default on any obligation, such as maintenance, taxes or insurance.

• Borrowers may be targets for aggressive sales pitches for other expensive and potentially inappropriate products or services.

• Reverse mortgages are fundamentally different than forward purchase mortgages or home equity loans. Generally, reverse mortgages have more complicated terms and conditions.

For a comprehensive explanation, read “Reverse Mortgages: Alternative Home Equity Funding” by Gaines and former Center research assistant Beth Thomas. It can be found online at http://recenter.tamu.edu/pdf/1939.pdf.

David S. Jones is the senior editor for the Real Estate Center at Texas A&M University.

RISMedia welcomes your comments and questions. Email realestatemagazinefeedback@rismedia.com.

Homeownership and Stable Communities Go Hand-in-Hand

2010-08-16T18:13:00.000-06:00

RISMEDIA, August 16, 2010—Homeowners who are more active in their communities benefit from improved education opportunities and report higher levels of self-esteem and happiness when compared to renters, according to leading research. A new report from the National Association of Realtors, Social Benefits of Homeownership and Stable Housing, explores the impact of stable housing and the positive social outcomes resulting from homeownership.
“Homeownership is in investment in your future—home is where we make memories, build our lives and feel comfortable and secure,” said Vicki Cox Golder, owner of a Tucson, Ariz.-based firm. “Owning a home has long-standing government support in this country because homeownership benefits individuals and families, strengthens our communities and is integral to our nation’s economy.”

NAR’s study identifies research from government, industry and academia that identified the relationship between homeownership and stable communities. Homeowners move far less frequently than renters, and therefore are embedded into the same neighborhood and community for longer. This allows for social cohesion, ultimately resulting in social benefits and stronger communities.

“Realtors care as much about keeping families in their homes as they do about helping them find the home of their dreams,” said Golder. “Social benefits do not arise solely from ownership, but also from greater housing stability and social ties associated with less frequent moves among homeowners.”

Several research studies cited in the NAR report have found that homeownership has a significant impact on educational achievement. For instance, the decision by teenage students to stay in school is higher for those raised by parents who are homeowners compared to those whose parents are renters. Access to economic and educational opportunities are also more prevalent in neighborhoods with high rates of homeownership. Furthermore, studies have shown that changing schools frequently due to moving impacts a child’s educational outcome negatively.

Civic participation is another social benefit resulting from homeownership and stable housing. Homeowners are proven to be more politically active and are more likely to vote in local elections compared to renters. In addition, homeowners have a higher membership in voluntary organizations.

Studies have shown that homeowners are more likely to believe that they can do things as well as anyone else, and they self-report higher ratings on their physical health. “The research shows that homeowners report higher self-esteem and happiness than renters, resulting in better overall health, both physically and psychologically,” said Golder.

When it comes to property, homeowners have more invested both financially and emotionally. Property crimes affect homeowners directly, but nonviolent property crimes can impact the property values of the entire neighborhood. Therefore, homeowners are more motivated to deter crime by forming and implementing voluntary crime prevention programs. In addition, it is easier for homeowners to recognize perpetrators in stable neighborhoods because of extensive social ties. Unstable neighborhoods often display social disorganization which can lead to higher levels of crime.

Along with protecting their home and neighborhood from crime, homeowners spend more time and money maintaining their home than renters. Neighbors also influence other homeowners to improve their property, resulting in a better overall quality of the community.

“Homeownership certainly contributes to positive social outcomes, but those outcomes are truly a result of stable housing communities,” said Golder. “With strong social ties and a cohesive community, homeowners can enjoy not only the long-term financial benefit of owning a home, but also a more satisfying life—which is what’s really at the heart of the American Dream.”

For more information, visit www.realtor.org.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Beware of Foundation Problems When Getting Your Home In Shape for the Market

2010-08-14T10:50:00.000-06:00

Beware of Foundation Problems When Getting Your Home Ready for the Market

RISMEDIA, August 14, 2010—Selling a house isn’t easy these days. There are a huge number homes on the market, and buyers are easily scared off if they encounter problems that may negatively impact resale value. Among the many issues that need to be addressed in order to make a house more marketable, foundation problems rank near the top of the list, according to Walter Molony, an expert in statistics and research at the National Association of Realtors.

“Before a house is listed for sale, the real estate agent will work with the homeowners to make sure that the property is competitive with similar properties in the area,” Molony explains. “A little dampness in the basement or a small drywall crack are flaws that a potential buyer may be willing to overlook,” says Molony, “but a cracked or bowed foundation wall will be a major red flag. Since most home sales are contingent on a satisfactory home inspection, foundation problems are very likely to stop a home sale dead in its tracks.”

Home improvements vs. home repairs

In today’s tight economy, it’s understandable for homeowners to put off home improvements until they feel more financially secure. But it’s important to make a distinction between basic “feel-good” improvements (like painting a room or installing shelving) and repairs that correct safety issues or prevent a problem from getting worse. Fixing a damaged foundation definitely falls into this latter “must-do” category.

“It’s risky to put off fixing a damaged foundation,” says Dave Thrasher, of Nebraska-based Foundation Supportworks. “If a crack starts to enlarge or a wall starts to buckle, you’re seeing a failure that is probably going to get worse,” Thrasher continues. “The longer you wait, the more extensive the problem becomes and the more expensive the repair is going to be.”

Foundation problems follow the building boom

Some foundation problems are obvious—cracks, tilting chimneys and bowing basement walls, for example. But there are other symptoms that may signal a settling or shifting foundation. For example, windows or doors can be racked by a shifting foundation and become difficult to open and close. Drywall cracks that extend from the corners of windows and doors are another telltale sign.

As surprising as it seems, a newer home may be just as likely to have foundation problems as an older one. A Wall Street Journal article (8/13/2009) reported on an entire housing development in California with numerous foundation problems.

According to journalist M.P. McQueen, the decade-long building boom that began in the late 1990s “caused shortages of both skilled construction workers and quality materials. Many municipalities also fell behind inspecting and certifying new homes.” This perfect storm of poor quality control definitely took its toll. Research conducted by Criterium Engineers, a national building-inspection company, confirmed an uptick in the percentage of new homes with major construction defects.

Specialty foundation repair contractors have the right solutions

The good news about foundation problems is that most of them can be corrected, as long as the contractor has the training, tools and materials to do so. “We certainly get our share of calls from panicked homeowners,” says Thrasher. “By the time people call us, they’ve probably realized that local remodeling contractors can only temporarily fix cosmetic problems, but are unable to permanently solve the problem.

For more information, visit www.foundationsupportworks.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Tips to Keep Your Central Air Running Well

2010-08-11T11:43:00.001-06:00

RISMEDIA, August 11, 2010—As the summer sun continues to heat up the country, homeowners are taking full advantage of their central air conditioner units. Charles Furlough, vice president, Pillar To Post Home Inspections offers the following tips to keep your air conditioner running smoothly this summer.

Keep It Clear:

The big AC unit outside your house is called the condenser. This equipment actually cools the liquid in the coils of your AC. Cooler coils mean cooler air in your house.

You’ll want to keep the area around the condenser clear of grass, bushes, leaves and just about everything else so that the fan gets the maximum amount of airflow. Ensure there is nothing blocking the vents or around the unit for one or two feet in every direction.

Keep It Clean:

Turn off the power to the unit before cleaning. Check that the interior is free of debris on the inside and outside. Most units can be cleaned with a hose sprayed from the top down, washing any dirt or debris from the inside. Remove one side panel of the outside unit and then take a broom or rake and remove any leftover debris or leaves that have been washed down to the bottom.

Coils can be damaged fairly easily, so spraying them down with water usually is sufficient.

Keep It Cool:

The U.S. Department of Energy recommends shading your central AC unit so that it doesn’t have to work as hard to cool the coils inside the unit. Planting a shade tree near (but not too close) the unit can help keep the unit cool and running efficiently. According to the U.S. Department of Energy, this one action could save you up to 10% on your cooling bill.

Keep It Consistent:

Turning the AC unit on and off can wear down interior switches and potentially damage the thermostat. Instead, set the thermostat temperature and let the air conditioning catch up and do its job without interference.

An automatic thermostat can be programmed to change the temperature when the home is typically empty during the day. This money-saving idea also saves energy, since the house won’t be as cool when no one is at home.

Keep the central air conditioner fan on AUTO and not ON all the time. These systems are meant to cycle on their own terms and keeping the furnace fan ON all the time could actually blow warm air back into the home.

Keep It Maintained:

Check the air filter and replace it a little more often than usual. In addition to the filter, look around for any leaks in the hoses or air ducts. Loose ducts with small gaps and tiny air leaks around older duct work can severely diminish the AC’s efficiency.

Keep It Charged and Serviced:

A professional technician can tell if the refrigerant should be recharged or if other system elements need replacing. Consider having a full service on your AC unit every year or two. The money recovered in energy savings and peace of mind during those hot summer days will easily compensate for the incremental cost.

For more information, visit www.pillartopost.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

How Important Changes to Mortgage Underwriting May Affect Many Buyers

2010-08-09T15:40:00.000-06:00

RISMEDIA, August 9, 2010—

The real estate industry and especially the mortgage industry have been overwhelmed with changes, regulations and consolidations recently. In the last couple of months, many transactions nationally have experienced delayed closings or worse as a result of the application of new guidelines affecting APR, Good Faith Estimates (GFE), Truth in Lending (TILA) and condo project approvals to name a few.

There is one more issue that is critical for real estate agents, loan officers, and anyone else who deals with consumers purchasing a home or obtaining a refinance. Effective with applications on or after June 1, 2010, Fannie Mae has issued new lender mandates (FNMA LL-2010-03 Loan Quality Initiative) on a national basis that, if not understood properly, could have devastating consequences for many buyers and sellers. We want to be certain that everyone understands the implications of the new rules and ensure that all interested parties know what they need to know to minimize negative repercussions.

The intent of this initiative is to assure that all applicant information is disclosed and is honest and accurate as of the moment of closing. Lenders will now be required to re-pull credit report information just prior to closing, re-verify employment, validate Social Security numbers, verify intent to occupy and verify that all parties to the transaction have been checked against the national “excluded party” list, which is managed by HUD and by the General Services Administration. Changes in any of these factors are likely to result in a re-underwrite, the need for additional documentation, or suspension of loan closing.

The most onerous of these is the credit re-pull. It is important that this is done as a “soft pull” so it does not show as an inquiry, which could potentially change the borrower’s credit score. Firms will, however, have to match the outstanding debts and inquiries with the report used to approve the loan. Additional credit or increased balances that change the debt-to-income ratio more than 2% (or less if it now exceeds guidelines) will require the loan to be suspended and re-submitted to underwriting.

Any additional delinquencies will result in a new, full credit re-pull and re-underwriting, utilizing the new credit. Any and all inquiries from other lenders or credit suppliers must be verified by the credit bureau and certified that new debt did not occur. If new credit has been extended, the new debt must be included in the borrower’s debt-to-income ratio and the loan must be re-underwritten.

Other considerations are W-2 employees that may own more than 25% of a business, mandating business returns and cash flow analysis and full disclosure of child support and alimony. Changes could render the applicant unqualified or could delay the closing. As a result of TILA, GFE and risk-based pricing changes, additional debt could result in re-pricing the loan due to a change in credit score, which even if approvable, would delay the closing three business days as re-disclosure would be required.

So How Do We Manage the New Process?
Real estate agents and lenders must impress upon the applicants the need for full and honest disclosure at the time of application, during the loan process and at closing. Buyers must be cautioned against applying for new credit during the process, changing jobs (30-day pay stub requirements are being enforced), and charging to their credit cards. It is imperative that they notify the lender if anything changes from application to closing.

We must all be aware that an applicant that signs an erroneous initial or final closing application could be committing fraud. Lenders choosing to approve loans without the proper loan quality processes and documentation are only endangering the buyer. Any lender or real estate agent that encourages someone to falsify information could be equally responsible. It is noteworthy to mention that many loans go through an immediate quality control audit post closing, so this could affect highly qualified applicants as well. Identified fraud of this nature could be investigated by the FBI.

While this new policy was implemented first by Fannie Mae, it is already a mandate of all national lenders and, based on experience, will soon be required on every loan. It is important to keep this in mind on every deal, not just ones that may involve Fannie Mae.

Jim Dinkel is vice president of FM Lending in Raleigh, North Carolina.

Ken Trepeta is director of Real Estate Services for the National Association of REALTORS®.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Denver Metro Market Update

2010-08-05T18:51:00.000-06:00

We are over halfway through this new year. Into the bowels of summer we drift with Fall peeking at us from just around the corner. Before we know it,
school buses will once again populate the roadways. Friday night football games will echo across the landscape. Summer will have become a distant memory.

Life appears to move more quickly these days in this age of information. There is so much more to occupy our minds; more stuff to sift through; more options. At times, there can be too much. We are on overflow. Fortunately, for those of us who call Metro Denver home, we can escape to the mountains, to the neighborhood park or simply take the time to relax and reflect on the fact we live in such a beautiful place. During these times of economic upheaval and personal stress, the Metro Denver real estate market has retained some semblance of sanity. While parts of California, Nevada, Texas and Florida have seen property values plummet, our market area has held its own. It’s not the “good old days” when double digit appreciation was the norm, but it definitely hasn’t been the “bad new days” with double digit depreciation. Thus, there are some things to be thankful for.

Home mortgage interest rates, those purveyors of doom and gloom in the past, have been our friend recently. The traditional thirty-year fixed rate mortgage has trickled down below 5%, making the home buying process more affordable. Despite the fact the government’s Home Buyer Tax Credit Program terminated on April 30, 2010 (contracts written on or before that date must now close no later than September 30, 2010) it is a great time to buy.
There are a number of reasons why NOW is the time to think seriously about purchasing a first home or moving-up.

1. Home mortgage interest rates don’t stay down forever. Once the economy stabilizes and shows
signs of sustained growth, interest rates will rise. It’s a given.

2. Homeowners are still motivated to sell. There are nearly 5,600 single family homes available for sale now throughout the Metro Denver area. I would surmise all of those owners would like to sell their home this year.

3. New home construction, especially in the custom home arena, has been extremely limited the past couple of years as builders worked to rid themselves of standing inventory. Banks weren’t overly excited about lending to builders to build spec homes. Production builders have been gearing-up the past six months offering buyer incentives for landscaping, basement finish, financing, etc.

4. Investors have reentered the marketplace. Not to describe them as vultures, that would be unfair, they are “opportunists”. They could be the little old lady who plays the organ Sunday’s at the community church who wants an investment property to an organized investment group looking to purchase tracks of land or large apartment complexes. In times of economic crisis, there are always opportunities for those who are proactive.

5. Finally, this is an excellent time to consider building a new custom home. Custom home builders have been sitting on the sidelines for the past couple of years, surviving on basement finishes and kitchen remodels. Building material costs are more reasonable today than they were two or three years ago. Subcontractors are looking for work. Developers want to “jump-start” their subdivisions and may be more willing to work with a presale buyer on the value of their lots.

For more information on how to take care of this great buying market, call Cynthia today: 303-563-9700.

Did You Know?

2010-07-28T13:54:00.001-06:00

Did You Know: July 27, 2010

July 27, 2010

By Jessica Lautz, Research Economist

Did you know the percent of home financed has shifted?
Credit standards have tightened in the last two years. As a result, the portion of the home financed has changed however it is not entirely intuitive how it changed.
In 2005, the typical repeat buyer financed 79 percent of their recent home purchase. In 2009, the typical repeat buyer financed 85 percent of their recent home purchase.
First-time buyers had a slight shift to financing less of their home purchase. In 2005, the typical first-time buyer financed 98 percent of their home purchase. In 2009, 96 percent of the home purchase was financed by first-time buyers.
Among all buyers, the percent of home financed was stable at 91 percent for 2008, 2007, and 2006, but rose to 92 percent in 2009. In 2005 among all recent home buyers 87 percent of the home was financed.

This is one in a series of commentaries by the Research staff of the National Association of REALTORS®. Read more commentaries

Cynthia M. Parker, ABR®, SFR®
Broker Associate
"Marketing your home for all it's worth"!

RE/MAX Alliance
Office: (303) 757-7474
Mobile: (303) 563-9700
Fax: 866-673-0053
E-mail: cynthia@cynthiamparker.com
Web site: http://www.CynthiaMParker.com

BUYERS: "Find out how to buy a home for as little as $ 100 down"...visit: http://www.FreeCOHomeInfo.com
SELLERS: "Find out what the home down the street from you just sold for"... visit: http://www.HomePricesInYourArea.org

* Oh, by the way, if you know of someone who would appreciate the level of service I provide, please call me with their name and business number. I'll be happy to follow up and take great care of them.

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Existing-Home Sales Slow in June but Remain Above Year-Ago Levels

2010-07-24T14:17:00.000-06:00

Washington, July 22, 2010

With the scheduled closing deadline for the home buyer tax credits, existing-home sales slowed in June but remained at relatively elevated levels, according to the National Association of Realtors®.
Existing-home sales¹, which are completed transactions that include single-family, townhomes, condominiums and co-ops, fell 5.1 percent to a seasonally adjusted annual rate of 5.37 million units in June from 5.66 million in May, but are 9.8 percent higher than the 4.89 million-unit pace in June 2009.
Lawrence Yun, NAR chief economist, said the market shows uncharacteristic yet understandable swings as buyers responded to the tax credits. “June home sales still reflect a tax credit impact with some sales not closed due to delays, which will show up in the next two months,” he said.
“Broadly speaking, sales closed after the home buyer tax credit will be significantly lower compared to the credit-induced spring surge. Only when jobs are created at a sufficient pace will home sales return to sustainable healthy levels.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.74 percent in June from 4.89 percent in May; the rate was 5.42 percent in June 2009.
The national median existing-home price² for all housing types was $183,700 in June, which is 1.0 percent higher than a year ago. Distressed homes were at 32 percent of sales last month, compared with 31 percent in May; it was also 31 percent in June 2009.
NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz., said softer home sales expected this summer don’t tell the whole story. “Despite these market swings, total annual home sales are rising above 2009 and we’re looking for overall gains again this year as well as in 2011,” she said. “Conditions have become more balanced in much of the country, which is good for both buyers and sellers. However, consumers find it even more challenging to navigate the transaction process, especially for distressed properties, which only underscores the value Realtors® bring to buyers and sellers in this market.”
A parallel NAR practitioner survey³ shows first-time buyers purchased 43 percent of homes in June, down from 46 percent in May. Investors accounted for 13 percent of sales in June, little changed from 14 percent in May; the remaining purchases were by repeat buyers. All-cash sales were at 24 percent in June compared with 25 percent in May.
Total housing inventory at the end of June rose 2.5 percent to 3.99 million existing homes available for sale, which represents an 8.9-month supply⁴ at the current sales pace, up from an 8.3-month supply in May.
“The supply of homes on the market is higher than we’d like to see. But home prices are still holding their ground because prices had already overcorrected in many local markets,” Yun said. Raw unsold inventory remains 12.7 percent below the record of 4.58 million in July 2008.
Single-family home sales fell 5.6 percent to a seasonally adjusted annual rate of 4.70 million in June from a level of 4.98 million in May, but are 8.5 percent above the 4.33 million pace in June 2009. The median existing single-family home price was $184,200 in June, up 1.3 percent from a year ago.
Single-family median existing-home prices were higher in 10 out of 19 metropolitan statistical areas reported in June in comparison with June 2009. In addition, existing single-family home sales rose in 12 of the 19 areas from a year ago while two were unchanged.
Existing condominium and co-op sales slipped 1.5 percent to a seasonally adjusted annual rate of 670,000 in June from 680,000 in May, but are 20.5 percent higher than the 556,000-unit pace in June 2009. The median existing condo price⁵ was $180,100 in June, which is 1.4 percent below a year ago.
Regionally, existing-home sales in the Northeast rose 7.9 percent to an annual level of 960,000 in June and are 17.1 percent above June 2009. The median price in the Northeast was $244,300, down 1.2 percent from a year ago.
Existing-home sales in the Midwest dropped 7.5 percent in June to a pace of 1.23 million but are 11.8 percent higher than a year ago. The median price in the Midwest was $155,900, down 0.1 percent from June 2009.
In the South, existing-home sales fell 6.5 percent to an annual level of 2.01 million in June but are 11.0 percent above June 2009. The median price in the South was $163,600, unchanged from a year ago.
Existing-home sales in the West dropped 9.3 percent to an annual pace of 1.17 million in June but are 0.9 percent higher than a year ago. The median price in the West was $221,800, up 1.5 percent from June 2009.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.

"Why I choose to work by referral"...

2010-07-10T16:44:00.000-06:00

Denver Days On Market

2010-06-22T08:45:00.001-06:00

The 9 Most Important Questions To Ask Your Mortgage Loan Originator..

2010-05-21T10:04:00.000-06:00

The 9 Most Important Questions To Ask Your Mortgage Loan Originator

One of the most frequent questions I get asked is: What questions do I ask when looking for the best loan?

In this post financial melt-down environment, many people are hesitant to originate a home loan or refinance. You may be confused about what to believe when sitting in front of your loan originator and reviewing the many loan options. So to help you make sense of it, I have prepared, a list with the MOST important questions you SHOULD be asking whomever you have handling your home mortgage loan. Remember, you WILL be responsible for your loan and it is IMPERATIVE that you fully understand what you are getting. Feel free to print this out and take this with you to your loan originator's/refinance officer's office:

1) What will the monthly payment be for every month of the loan and could it increase?

2) When would it increase, what would it increase to, and how many times would it increase?

3) Does my monthly payment include an escrow amount to pay for my property taxes and homeowners insurance or must I pay these on my own?

4) Can you give me a monthly budget for escrows and insurance if I am responsible for paying these separately?

5) What is the term of the loan, how many payments will I have to make and will the loan be paid at the end of the term or will I have a "balloon" payment?

6) Will I have any "prepayment" penalties to refinance and pay off the loan and if so how much and when will they apply?

7) If the loan has an "introductory rate", can I refinance without any penalties before the rate resets and before my payment increases?

8) Are you a State of Colorado, licensed, loan originator?

9) Where can I go and verify that you are licensed and bonded in the State of Colorado?

I hope this list was helpful. Feel free to call on me with any additional questions you may have regarding shopping for a home loan or your refinance options...

Pending Home Sales on an Upswing

2010-05-04T20:05:00.000-06:00

Pending home sales increased again in March, affirming that a surge of home sales is unfolding for the spring home buying season, according to the National Association of Realtors®.

The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in March, rose 5.3 percent to 102.9 from 97.7 in February, and is 21.1 percent above March 2009 when it was 85.0; this follows an 8.3 percent increase in February. The data reflects contracts and not closings, which usually occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, said favorable affordability conditions have been working with the tax credit. “Clearly the home buyer tax credit has helped stabilize the market. In the months immediately following the expiration of the tax credit, we expect measurably lower sales,” he said. “Later in the second half of the year, and into 2011, home sales will likely become self-sustaining if the economy can add jobs at a respectable pace, and from a return of buyer demand as they see home values stabilizing.”

The PHSI in the Northeast declined 3.3 percent to 75.1 in March but remains 27.2 percent higher than March 2009. In the Midwest the index increased 1.2 percent to 98.9 and is 18.5 percent above a year ago. Pending home sales in the South jumped 12.7 percent to an index of 121.2, which is 28.3 percent higher than March 2009. In the West the index rose 1.9 percent to 99.9 and is 8.8 percent above a year ago.

“Another encouraging sign is the improvement in the availability for jumbo and second-home mortgages,” Yun said. “As bank balance sheets strengthen, it is just a matter of time before lending of non-government-backed mortgages steadily opens up.”

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.

*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months. There is a closer relationship between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than with month-to-month comparisons.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales.

First quarter metropolitan area home prices and state home sales will be released May 11. Existing-home sales for April will be reported May 24 and the next Pending Home Sales Index will be on June 2; release times are 10 a.m. EDT.

Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section. Statistical data, tables and surveys also may be found by clicking on Research.