So Denver got rejected as Amazon's Headquarters.... now what?

Denver, and other Amazon HQ2 rejects, could see even higher home value growth in the next year, experts says

Denver didn't get Amazon's HQ2, but what it may end up getting is higher-than-normal home value growth.

In the next year, a handful of metro areas that competed for Amazon's second headquarters are expected to outperform the national rate of home value appreciation, according to 2018 Q4 Zillow Home Price Expectations Survey.

Denver, Washington, D.C., Atlanta and Dallas were named as the four markets most likely to see this, according to the survey. All four were among the 20 finalists for the Amazon (Nasdaq: AMZN) HQ2.

"The quarterly survey, sponsored by Zillow and conducted by Pulsenomics LLC, asked more than 100 real estate economists and investment experts for their predictions about the U.S. housing market, including which three markets they believe are most likely to outperform the U.S., and which three are most likely to underperform in 2019," a release from Zillow Tuesday said.

Denver got the second-most votes for over performance in the survey, second only to Washington, D.C., a winner of HQ2. In addition, VEROS Real Estate Solutions is predicting that metro Denver home prices will rise by 9.5% from Fall to September 2019.

Nationwide, home values have increased 7.7 percent through the first ten months of 2018, while Denver has only seen a 6.2 percent increase, according to Zillow. Boston, a finalist for HQ2 and Washington, D.C., also lagged behind the national average rate so far this year, according to Zillow.

"Many of the candidate cities that were not ultimately selected could see spillover gains in 2019," said Zillow senior economist Aaron Terrazas.

Commercial development opportunities that had been proposed as sites for Denver's bid to get Amazon's HQ2 also remain on the market in many of Denver's suburbs such as Sterling Ranch, Commerce City, Lone Tree, Thornton and Louisville.

-Denver Business Journal

Winter is Coming! Are you Winterizing?

Temps are about to drop again on Sunday.  I ran across this winter prep list that might be helpful.  I always try to equip my buyers with inside tips and tricks not only for the home buying process, but also for those first years as homeowners.  Home upkeep can bring some hard (and expensive!) lessons, so being prepared and educated is always a good thing.  
This list is a good start, but I see a few things missing...... for example, running out the gas in your lawnmower.  Any others that you guys think this list missed?  Any (God forbid) horror stories!??

Happy Winterizing!

RiNo in 4 Years, According to Developer Rendering

The River North neighborhood has gone from industrial corridor to hipster magnet, full of bars, restaurants and apartment buildings. And this week, developers of the area released a rendering of what the neighborhood will look like in four years (see the image above), when at least fifteen projects currently in the works are complete or will be near completion.

Responsible for much of the redevelopment is OZ Architecture, whose projects are highlighted in yellow above. More about a few of its RiNo projects below. (Full disclosure: OZ redesigned Westword's office space.)

The WTC will be located along 38th Street between Walnut and Blake streets. According to its website, OZ "will develop the master plan for the extensive campus, to be anchored by a flagship hotel. The development will also include approximately 250,000 square feet of best-in-class office space for both large and small businesses from around the world, an international business and conference center, a flex-work environment, an array of multicultural restaurants, diverse retail, an art gallery and a parking structure."

tial condominiums, an incubator office space, and plenty of retail and restaurant locations on the ground floor." DriveTrain will be walking distance to the Light Rail A Line station at 38th and Blake. Groundbreaking will happen sometime next year. OZ will also redevelop the old Gold Star Sausage processing plant at 2800 Walnut Street, which 1425 Market LLC bought in 2015 for $3.2 million. 

Source: Anna Campbell, Westword.com

Image Source: Westword.com

3 Colorado cities among Money 

Magazine's best places to live

by Caitlin Hendee, Denver Business Journal

There are three Colorado cities where residents have it made — they have low crime rates, top-notch schools and low unemployment.

And those three communities are Highlands Ranch, Centennial and Broomfield which landed the Nos. 6, 13 and 25 spots, respectively, on Money Magazine's annual "Best Places to Live" report.

Enlarge

photo credit: Kathleen Lavine

To compile its report, Money Magazine starts with all U.S. towns and cities with populations of between 50,000 to 300,000. It then analyzed cities based on a number of factors, including:

• Predicted job growth.
• Crime rates.
• Ethnic diversity.
• Home values.
• Economic performance/tax rates.
• Median household incomes.
• Accessibility to health care, culture, strong public schools and sports.
• Resident interviews (conducted by Money Magazine reporters).

Highlands Ranch — at No. 6 nationally — was noted for its exceptionally low crime rates, high-ranking schools and plentiful jobs. The fact that Charles Schwab located its Denver-area offices nearby, as well as the planned, $315 million hospital being built by UCHealth, were also mentioned in the report.

"Highlands Ranch is a bedroom community where residents sleep very well at night. In fact, they affectionately refer to their hometown, about 15 miles south of downtown Denver, as 'the bubble,' " Money Magazine said. "The bad news is that the sizzling job market has attracted an influx of new residents, who in turn have driven up real estate costs."

Highlands Ranch, with a population of 105,143, has a median home price of $410,000, property taxes of $2,466, an unemployment rate of 3.4 percent and an average commute time of 26 minutes.

"On the plus side: Highlands Ranch, a planned community, was founded in 1981, so the housing stock is relatively new," the report noted.

With a population of 107,569, Centennial — at No. 13 on the list — ranked especially high because of its job market. Money Magazine called out the numerous companies that reside there, including major Comcast operations, United Launch Alliance and Innovation Pavilion, the 80,000-square-foot startup incubator that provides co-working space for entrepreneurs.

"Centennial also makes it easy for residents to take advantage of Colorado’s 300 days of sunshine," Money's report said. "The town offers more than 2,500 acres of open space and parks, including award-winning Center Park, with an amphitheater and kid-friendly splash pad."

Centennial's median home price is $374,500 with property taxes of $2,368. It's average commute time is 24 minutes and its unemployment rate is 3.8 percent. The city was also the first city selected to get a TopGolf, a 65,000-square-foot golf-themed entertainment complex.

Money Magazine said Broomfield — at No. 25 nationally — was an "enviable location for both living and work" because of its proximity to the mountains and its more than 8,000 acres of open space and 281 miles of trail, as well as its rapidly growing job market.

"With such a strong job market, Broomfield is attracting new residents and building homes rapidly, causing some areas of town to look more like construction zones than neighborhoods," Money's report said. "Also, while many of Broomfield’s schools receive top marks, overcrowding has become a problem in some locations."

Companies headquartered at the city's 963-acre business park Interlocken Advanced Technology Environment include Level 3 Communications and Vail Resorts.

Broomfield, with 63,676 residents, has a median home price of $365,000, property taxes of $2,590, a 26-minute average commute time and an unemployment rate of 3.6 percent.

Last week, San Francisco-based career information site Zippia said Highlands Ranch is the 7th "happiest" community in the nation based off similar metrics included in this report.

Neighborhood Spotlight: Parker, Colorado

Photocredit: http://www.parker-station.com

If you are thinking of moving to one of Denver’s suburbs, you should consider Parker, CO.  With easy access to I-25 and E-470, Parker is located to the Southeast of Denver-proper.  There is a lot to do in Parker, to include concerts, camps, classes, art exhibits, festivals, and recreational activities for kids and adults alike!  There are numerous recreational facilities around town, to include pools, field houses, gyms, rock climbing centers, facility centers, playing fields, equestrian trails and more.  Further, Parker has a large network of trails, to include the Cherry Creek Trail, Centennial Trail, Sulpher Gulch Trail, Tallman Gulch Trail, the Newlin Gulch Trail, and the future East/West Trail.

According to Trulia, Parker is exhibiting the current market trends:

Housing Market Trends

Market trends help you understand the movement of key price indicators. Trends in Parker show an 8% year-over-year rise in median sales price and a 2% rise in median rent per month.

Median Sales Price

The median sales price for homes in Parker for Apr 14 to Jul 13 was $402,450 based on 500 home sales.

Price Per Square Ft.

Average price per square foot for Parker was $202, an increase of 12% compared to the same period last year.

Median Rent Per Month

The median rent per month for apartments in Parker for Jun 14 to Jul 15 was $2,295.

Demographics

16%

SINGLE RESIDENTS

91%

HOME OWNERS

36

MEDIAN AGE

$100,647

MEDIAN HOUSEHOLD INCOME

57%

COLLEGE EDUCATED

Source: Trulia

Is now a good time to buy using a mortgage?

Is now a good time to buy using a mortgage? 

I am sure that you have heard over the past few months that interest rates are expected to rise as a result for the Fed’s anticipated rate hike.  However, with the global economy’s multiple crises, economic experts are expecting mortgage rates to stay the same, or to drop even further.

The Chicago Tribune reports that low mortgage rates will be something we can grow used to.  Most notably, the recent BREXIT situation has caused major players in the US to rethink their position on the state of our interest rates in the US due to an increasingly growing world economy on a macro-level.  For example, Freddie Mac’s chief economist has stated that "the turbulence abroad should continue to create demand for U.S. Treasuries and keep mortgage rates near historic lows; thereby, allowing home sales to have their best year in a decade, along with a boost in refinance activity."[1]

OK, so what does this mean for me?

Let’s compare interest rates using the annual averages for 2007, 2011, 2015, and June of 2016, assuming a 30-year fixed, $250,000 loan balance.  Rates are derived from Freddie Mac’s compiled data.[2]

Year	Average Int. Rate	P&I Payment	Savings compared to 2007 rates, annualized
2007	6.37%	$1,864.75	-
2011	4.45%	$1,511.16	$4,243.08
2015	3.85%	$1,406.42	$5,499.96
Jun-16	3.57%	$1,358.88	$6,070.44

So as you can see from this simplified chart, last month compared to the average rates in 2007 would yield homebuyers a savings in $6,070.44 in interest, each year!  This means that homebuyers can possibly qualify for homes that they wouldn’t have qualified for in 2007, or perhaps it will allow homebuyers to take that extra money that they are not spending on interest payments, and apply it to pay down debts or put it into investments for further growth.

Conclusion

As physics dictates, what goes up must come down (and in this case, the opposite- what goes down, will eventually go up!), so it is a great idea to reconsider your position.  Now is a great time to take advantage of the lower interest rates to buy your first home, or perhaps even move up to a bigger home.

---

[1] http://www.chicagotribune.com/business/ct-mortgage-rates-20160714-story.html

[2] http://www.freddiemac.com/pmms/pmms30.htm

13 Colorado cities ranked for their real estate markets

(Standley Lake, Westminster)

Colorado cities' residential real estate showed up strong on a new report that looks the nation's best housing markets.

Seven cities were in the top 25 nationally, with Thornton ranking No. 8, according to WalletHub's "Best Real Estate Market" report released Tuesday.

To compile the report, the Washington, D.C.-based financial analyst site looked at 16 metrics across three categories in 300 U.S. cities, ranging in population from fewer than 150,000 (small cities) to between 151,000 and 300,000 (midsize cities), to 301,000 or more (large cities).

Metrics measured included:

• Real estate market: percentage of homes underwater; average number of days until a house is sold; percentage of homes selling for a gain; median home-price appreciation; home sales turnover rate; rent-to-sale price ratio; foreclosure rate; mortgage delinquency rate; number of bank-held homes; vacancy rate; and building-permit activity.
• Affordability & economic environment: housing affordability (based on price as a percentage of the area's median income); maintenance affordability (based on costs as a percentage of income); population growth rate; job growth rate; and unemployment rate.

1. Thornton
2. Arvada
3. Denver
4. Greeley
5. Fort Collins
6. Aurora
7. Westminster
8. Longmont
9. Colorado Springs
10. Centennial
11. Lakewood
12. Boulder
13. Pueblo

Source: Caitlin Hendee, Aug 30 2016, bizjournals.com

Image Source: Materialicious

Survey: Real Estate is the Best Investment

Americans ranked real estate as the best long-term investment, even over stocks and gold, according to a recent Gallup Poll of about 1,000 U.S. adults. Real estate has been the top investment choice for the past two years, and it's lead is increasing over four other popular investment choices.

Thirty-five percent of Americans selected real estate as their top investment choice compared to 22 percent for stocks and mutual funds; 17 percent for gold; 15 percent for savings accounts/CDs; and 7 percent for bonds. By comparison, 34 percent of Americans said gold was their top long-term investment choice in 2011 while 19 percent said real estate.

"As the average sale price of new homes in the U.S. increased from $259,300 in August 2011 to $348,900 in February of this year, the percentage of Americans picking real estate as the best long-term investment almost doubled," according to Gallup. "During approximately the same time span-from August 2011 to April of this year-gold prices plunged from $1,910 to $1,254 per ounce, and the percentage thinking gold would be the best investment was cut in half."

The poll also revealed the following:

• Men are more likely than women to say gold is the best long-term investment. Women tend to favor savings accounts more so than men.
• Those surveyed who are younger than 30 years old were the least likely age group, at 26 percent, to think real estate is the top investing choice. They are most likely to choose savings as the top long-term investment choice.
• Renters (32%) and home owners (34%) are about equally as likely to choose real estate as their top long-term investment choice.

Source: RealtorMag