23 Gorgeous Places to Behold the Fall Glory

Maroon Bells - most photographed mountain scene in North America

 

One of my favorite joys in the world is BEAUTY. And there's a lot of it in Colorado at this time of year. We are blessed to be an actual "honey-moon destination" for many married couples from around the world! 

Are you ready to see Colorado's gives STUNNING nature shows with millions of leaves and Aspens about to show their glory?! That time of year of cooler weather to bundle up and watch football, go fruit picking, to fairs, and have super melancholic feelings!

I wanted to give you the prime spots to watch the short window of Aspen and other trees change color. By the second and third week of September, many aspen groves are well worth a day's drive. Usually the peak time to view aspen is around the last weekend of September. After that, early snows will knock down the leaves and others drop away by themselves. 

23 Gorgeous Places to 

Behold the Fall Glory:

1) Maroon Bells near Aspen, the most photographed mountain scene in North America!

2) Colorado 14 through the Poudre Canyon west of Fort Collins.

3) Trail Ridge Road (US 34) through Rocky Mountain National Park

4) Flat Tops country between Buford and Newcastle

5) Tennessee Pass, US 24, from Leadville to Vail

6) Boreas Pass between Como and Breckenridge, a 23-mile road cresting at 11,481 feet. 

7) Guanella Pass between Georgetown and Grant

8) Grand Mesa, Colorado 65 east of Grand Junction and north of Delta.

9) Steamboat Springs, Elk River country north on County Road 129.  Also check the view on Rabbit Ears Pass and Buffalo Pass east.

10) Independence Pass, Colorado 82 between Twins Lakes and Aspen.

11) Colorado 135 between Crested Butte and Gunnison. Also try Kebler Pass west of Crested Butte on Gunnison County Road 12! 

12) Cottonwood Pass, Colorado 306 between Buena Vista and Taylor Park

13) Monarch Pass, US 50 from Salida to Gunnison.

14) Cochetopa Pass between Saguache and Gunnison.

15) Gold Camp Road - Colorado 67 between Divide and Cripple Creek.

16) Lizard Head Pass, Colorado 145 between Dolores and Telluride.

17) Slumgullion Pass, Colorado 149 between Lake City, Creede and South Fork.

18) US 160, Navajo Trail, between Pagosa Springs and Cortez.

19) Platoro Reservoir, south of Del Norte and west of Conejos.

20) Cucharas Pass, Colorado 12, from Trinidad to Walsenburg.

21) CO 103 from Evergreen Parkway west to Echo Lake.

22) McClure Pass - This is a spectacular 8,755 foot pass south of Carbondale along Colorado 133 and the Crystal River.
23) And last but not least...the city of Denver! Wash Park, City Park, Cherry Creek & Bonnie Brae are all excellent neighborhoods with huge trees that become stunning!

Map (this map doesn't include Maroon Bells, so don't forget about Aspen!)

Enjoy the Colorado BEAUTY!!!

How to Improve Your Credit Score Quickly

With mortgage interest rates hovering near record lows, you may want to either refinance your mortgage or purchase a new home before rates go higher again.

The question is -- can you qualify for refinancing or a purchase loan?

Since the recession, lenders have tightened loan qualification standards and their most widely used tool to determine if you qualify for a loan and at what interest rate are your credit scores. Credit scores are determined by a software algorithm that analyzes your credit and payment history.

These "FICO" scores run between 300 and 850, with the highest numbers considered to be the best scores. The 47% of Americans with credit scores of 720 or higher receive the best interest rates, according to MyFICO.com.

Credit scores make a significant impact. For every 20-point credit score increase, according to Zillow, the average low APR declines 0.12 percent, a savings of $6,400 on a $300,000 home over 30 years.

Improve your credit scores

FICO scores are based on your credit history. Each credit reporting bureau, Experian, TransUnion, and Equifax calculates its own score, so you may have three scores.

The first thing you need to do is review your credit reports for errors and get them resolved as quickly as possible. Visit freeannualcreditreport.com to get copies. You can then purchase your credit scores for approximately $14.95 from each agency or all three at myfico.com.

FICO scores change with every new piece of information that comes into the credit reporting bureau, so the credit score you receive today can be improved quickly by following some dos and don'ts.

Don't close credit card accounts. FICO scores utilize a credit utilization ratio that turns against you because it appears that you might be overusing your available credit.

Don't max out or consolidate credit cards. Credit card companies like it if you only use about 30% of your available credit on your card. You're better off having small balances on multiple cards than a large balance on one card.

Don't apply for new revolving credit or transfer balances. If you're buying a new home, it's tempting to buy some new furniture, but don't open that account until after your loan closes. You don't want "inquiries" to be raised in the scoring algorithm.

Don't change jobs right before you apply for a home loan, although job changes within the same field are considered more favorably in scoring.

Do pay all bills on time and with at least the minimum payment due. Lenders like on time payment histories.

Do pay down your debt, as lower income-to-debt ratios are attractive to lenders. Start by reducing credit card balances first, beginning with the balances that generate the highest interest rates. Revolving credit is considered riskier debt than installment loans such as student loans or car payments.

Do shop lenders simultaneously. Credit score software takes into account several inquiries from mortgage lenders as normal, but if you space rate-shopping out over weeks or months, that could impact your credit score negatively.

Remember, mortgage lenders are most interested in your ability to repay their loan. The most important factors are job and debt payment history. Job security -- long-term employment in the same field and on-time

Homeowners Net Worth 40 Times that of Renters

Home owners are building net worth at a pace that is up to quadruple that of a renter. Check out these stats:

• In the past 15 years, the net worth of the typical homeowner has ranged between 31 and 46 times that of the net worth of the typical renter.
• Data shows that median homeowners had nearly $200,000 in net worth or 36 times that of the median renter who had just over $5,000. The median value of owners’ homes was $170,000.
• Many households own a primary residence (65.2 percent). It is the most commonly held non-financial assets after vehicles (86.3 percent).

Homeowner equity is a substantial component of homeowner wealth. The Federal Reserve’s Survey of Consumer Finances, conducted once every three years, provides a snapshot of family income and net worth along with basic demographic details and more detailed information on where families keep the wealth they have accumulated. The most recent survey, conducted in 2013, offers a picture of the situation as home and equity prices normalized for most household balance sheets.

Denver-area home prices exceed pre-recession peak, says Zillow

Home values in the Denver metro area have gone above and beyond their highest pre-recession levels, and are predicted to keep rising, according to the data released Monday by Zillow.com.

In addition to exceeding their previous peak, home values are expected to continue their upward trend, growing by 1.8 percent over the course of the next year, from first-quarter 2014 to the same period in 2015.

Nationally, home values are expected to increase by 4.2 percent over the next year.

Not only have home values in Denver returned to their peak, but only three other metro areas surveyed by Zillow Inc. (Nasdaq: Z) have done the same. Austin, Texas; San Jose, California; and Pittsburgh are the only other areas in the country that can make such a claim.

In June, the median home value rose 8.9 percent year-over year to $256,800, and rose by 0.6 percent between the first and second quarters, according to the Zillow Home Value Index. The index measures the value of all homes, not just those sold in a particular period.

Brighton, Commerce City and Wheat Ridge saw the largest gains in home values year-over-year in June, increasing by 14.4 percent, 13.2 percent and 11.7 percent, respectively.

On the other end of the spectrum, Littleton's home values increased 4 percent from June 2013 and Broomfield's increased by 5.2 percent.

The highest home values can be found in Evergreen, at $427,100, while Aurora's homes remain the least expensive at $181,600 in June.

This simply means that it is TIME TO SELL if a homeowner would like to make a nice bonus this year and move into a bigger (or smaller) home.

Colorado foreclosures down 43% from a year ago

The Denver Business Journal just reported that Colorado’s foreclosure filings dropped nearly 43 percent in the first half of this year compared with the same period last year, according to RealtyTrac’s mid-year foreclosure report.

Colorado had 6,416 properties with foreclosure filings from January to June, or one in every 345 household units, said RealtyTrac, an Irvine, Calif.-based private marketer of foreclosure properties.

The state had the 28th highest foreclosure-filing rate in the nation for the first half of the year among the 50 states. It was consistently in the top 10 states in 2011 and 2012.

In June, Colorado had 564 foreclosure filings, or one in every 3,921 housing units, a drop of 57 percent from June of 2013. The state had 195 completed foreclosures in June, according to RealtyTrac.

Nationwide, a total of 613,874 properties had foreclosure filings in the first half of the year, down 23 percent from the same period a year earlier.

This is essentially yet another sign that this real estate market in 2014 is completely different than the beginning of the recession in 2008, the bottom of the market in early 2011, and even the bounce back of last year 2013. This is a different animal folks, but still good for both sellers (who can sell very high right now with little competition), and buyers (who can still get great interest rates and pay less than renting for a mortgage, which can also be their investment and ticket to wealth). 

Average Interest Rates over the Decades

5 Reasons to Sell Now in Metro Denver

Many sellers are still hesitant about putting their house up for sale. Where are prices headed? Where are interest rates headed? Can buyers qualify for a mortgage?  These are all valid questions. However, there are several reasons to sell your home sooner rather than later. Here are five of those reasons.

1. Demand is Strong

There is currently a serious pent-up demand of purchasers as many home buyers pushed off their search this past winter & early spring because of extreme weather. According to the National Association of Realtors (NAR), the number of buyers in the market, which feel off dramatically in December, January and February, has begun to increase again over the last few months. These buyers are ready, willing and able to buy…and are in the market right now!

2. There Is Less Competition Now

Housing supply is still at record lows in Metro Denver. This means that there are not enough homes for sale to satisfy the number of buyers in that market. This is good news for home prices. However, additional inventory is about to come to market.

There is a pent-up desire for many homeowners to move as they were unable to sell over the last few years because of a negative equity situation. Homeowners are now seeing a return to positive equity as prices increased over the last eighteen months. Many of these homes will be coming to the market in the near future. Also, new construction of single-family homes is again beginning to increase. A recent study by Harris Poll revealed that 41% of buyers would prefer to buy a new home while only 21% prefer an existing home (38% had no preference).

The choices buyers have will continue to increase over the next few months. Don’t wait until all this other inventory of homes comes to market before you sell.

3. The Process Will Be Quicker

Sellers are receiving multiple offers within 24 hours of putting their homes on the market! Denver is the fastest market in the country with the whole process taking 25 days! The rest of the country averages about 83 days from putting the house on the market to closing. 

One of the biggest challenges of the 2014 housing market has been the length of time it takes from contract to closing. Banks are requiring more and more paperwork before approving a mortgage. As the market heats up, banks will be inundated with loan inquiries causing closing timelines to lengthen.  Selling now will make the process quicker and simpler.

4. There Will Never Be a Better Time to Move-Up

If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by over 19% from now to 2018. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30 year housing expense with an interest rate in the low 4’s right now. Rates are projected to be over 5% by this time next year.

5. It’s Time to Move On with Your Life

Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?

Only you know the answers to the questions above. You have the power to take back control of the situation by putting your home on the market and pricing it so it sells. Perhaps, the time has come for you and your family to move on and start living the life you desire.

That is what is truly important. Email me to get a free valuation of your home!

Spring Sellers Still Absent

Denver Post: Spring was expected to bring out Denver metro home sellers, lured by high prices and shorter sales time.

The April home-sales numbers for the area, however, show that wasn't the case — leaving buyers to struggle with a barren inventory ahead of the peak home-shopping season.

"We are at the mercy of inventory. Higher prices aren't bringing the sellers out," said Chris Mygatt, president and CEO of Coldwell Bankers Residential Brokerage in Denver, which Thursday released a compilation of last month's housing numbers.

There were 5,572 homes for sale in metro Denver at the end of April, compared with 8,716 a year earlier, a number considered unnaturally tight even back then.

There were 4,092 homes sold in April, up 15.1 percent from the 3,556 sold in March but down 6.3 percent from the number sold in April 2013.

Condos were especially hit hard. Only 331 sold last month, compared with the 892 that sold in April 2013, a collapse of 62.9 percent, according to Coldwell.

The median price for condos sold in April was $160,000 versus $157,000 in March and $168,000 a year earlier.

Sales of detached single-family homes were up 15.1 percent month over month and 8.2 percent year over year in April.

The median price for a single-family home sold in April was $268,000, up from $264,000 in March and down from $280,000 in April 2013, according to Coldwell.

Metro Denver homes are selling within an average of 37 days of listing, one of fastest turnover times anywhere. But that number masks several mispriced homes in poor condition or undesirable locations that just aren't moving.

The notion that a person can put their home on the market at any price is a mistake, Mygatt said.

So why haven't higher prices drawn more sellers? One theory is that homeowners who aren't leaving the area realize they will have to replace any property they sell. The slim prospects make them more inclined to stay put.

"The Denver real estate story is an inventory story," Mygatt said.

CNN Money & Forbes: Denver #6 in U.S. for Fastest Growing Cities

If you look at the Rockies to the West, consider the influx of tech jobs and take into account that Denver has a fast-growing "live-work-play" environment, then this isn't going to surprise you too much:

Denver ranks No. 6 on a recent CNNMoney AND Forbes ranking of the top 10 fastest growing cities. 

University of Colorado Denver business school dean Sueann Ambron said that people are drawn to Colorado because of jobs, upward mobility and entrepreneurship.

"They can move here, get a good education, get a job, start a business, buy a house and have a life," she said.

 President and CEO of the Denver Metro Chamber of Commerce Kelly Brough agrees.

"The combination of good job opportunities with a great lifestyle no doubt attracts people to our region," she said. 

CNNMoney compiled  the report by comparing population gain between July 2012 and July 2013 according to data recently released by the U.S. Department of Labor.

According to the ranking, Denver's population gain went up 1.9 percent, bringing it to 2.7 million residents. Plus, area employment grew in that time period 3 percent. And last month,  Colorado added 6,200 jobs, while the  Denver metro unemployment rate dropped. 

"We're home to one of the smartest, most productive and healthiest workforces in the nation, we have a strong economy with room for professional growth and our economic and business opportunities are diverse in industry and size," Brough said.

"To top it all off, our natural environment and active outdoor lifestyle is one of the best in the U.S." Brough added. "With our strong economy, regional cooperation, environmental and educational assets and impressive workforce, I think it's safe to say that the Denver metro area will continue to be an attractive region."

Denver: Fastest Real Estate Market in the U.S.

Denver tops the list of more than 140 metros where homes are on the market for the fewest number of days, unseating Oakland, Calif., for that top spot, according to realtor.com^®’s National Housing Trend Report for March. Oakland had occupied the top spot for the fewest days on the market on realtor.com^®’s report since November 2013.

The national average for days on the market is 102 days, but in some markets, listings are typically on the market for a month or even less.

Realtor.com^®’s report shows the following 10 metro areas with the lowest median days on the market:

1. Denver: 25 days
2. Oakland, Calif.: 27 days
3. San Jose, Calif.: 31 days
4. San Francisco: 33 days
5. Seattle-Bellevue-Everett, Wash.: 38 days
6. Boulder-Longmont, Colo.: 42 days
7. Anchorage, Alaska: 43 days
8. Stockton-Lodi, Calif.: 48 days
9. San Diego: 51 days
10. Austin-San Marcos, Texas: 52 days

5 Decades of Mortgage Rate Comparisons

While mortgage rates have been rising the last few months, they are still extremely historically low compared to the trend over the last four decades, Freddie Mac said.

But rates as low as they were in November 2012 — when the 30-year fixed-rate mortgage reached an all-time low of 3.31 percent — aren’t likely to return any time soon, the mortgage giant says. Still, Freddie assures borrowers that the all-time record high of 18.63 percent reached in October 1981 isn’t on the horizon either. (At 18.63 percent, monthly mortgage payments on a $200,000 loan would be $3,117, compared to $992 a month at today’s 4.32 percent average!)

With mortgage rates at 4.32 percent, 123 of the 157 metros that Freddie Mac tracks remain very affordable to households earning the median income. In order for affordability to be hampered in the majority of markets, interest rates would have to reach 7 percent, according to Freddie Mac.

“Stubbornly high unemployment over the last several years coupled with stagnant income growth exacerbates declining affordability in a rising interest rate environment,” according to Freddie's blog post. “More jobs and income growth would help blunt the effects of higher interest rates and make buying a home more accessible. While jobs and income have shown some improvement in recent months, they continue to be challenged.”

Mortgage Rates Through the Years

Here’s an overview of mortgage rates in the past four decades, as well as the approximate payment on a $200,000 mortgage and how it changes with the rise and fall of rates, according to Freddie Mac.

• 1970s:
  Average 30-year fixed-rate mortgage: 8.86%
  Approximate payment on a $200,000 mortgage: $1,589
• 1980s:
  Average 30-year fixed-rate mortgage: 12.70%
  Approximate payment on a $200,000 mortgage: $2,166
• 1990s:
  Average 30-year fixed-rate mortgage: 8.12%
  Approximate payment on a $200,000 mortgage: $1,484
• 2000s:
  Average 30-year fixed-rate mortgage: 6.29%
  Approximate payment on a $200,000 mortgage: $1,237
• 2014:
  Average 30-year fixed-rate mortgage: 4.36%
  Approximate payment on a $200,000 mortgage: $997

Metro Denver #7 Top Sellers' Markets in U.S.

Metro Denver metro area ranks No. 7 nationally on the list of top U.S. sellers' markets for homes, according to the Zillow February Real Estate Market Reports.

Northglenn was the was the top sellers' market and Evergreen the top buyers' market within the metro area, according to Alexa Fiander of Zillow.

Fiander said top buyers' markets tend to have substantial inventory, homes that languish on the market and then sell after steep price cuts.

Top sellers' markets tend to have low home inventory and the quick sale of homes selling at higher than the asking price.

Fiander said that Zillow's February Real Estate Market Reports showed that home values rose 7 percent year-over-year in February in metro Denver, which exceeded the national increase of 5.6 percent over the same period.

She said that Denver metro home values are expected to increase 1.6 percent during the next 12 months, according to the Zillow Home Value Forecast.

In the Denver metro area, the top five sellers' markets are Northglenn, Thornton, Ken Caryl, Westminster and Arvada.

The top five buyers' markets are Evergreen, Denver, Lakewood, Broomfield and Centennial.

Overall, Zillow said that prices and availability of homes will vary across the nation with the West Coast more favorable for sellers and the East and Midwest for buyers.

Reflecting the analysis is the fact that the top sellers' markets are primarily on the West Coast: San Jose, Calif., San Francisco, San Antonio, Los Angeles, Seattle, Riverside, Calif., and Denver.

The top buyers' markets tend to be on the East Coast and Midwest: Cleveland, Philadelphia, Tampa, Fla., Chicago, Pittsburgh and Cincinnati.

Neighborhood Scout: Great tool to find your ideal neighborhood

Neighborhood Scout is one of the best tools to learn about neighborhoods (not just cities) and find the best one for you! It gives you great info on schools, crime rates, values, appreciation, demographics and more. Check it out!

Trulia's 2014 Rent vs. Buy Interactive Map

Is it cheaper to buy or to rent in your area? Trulia did an extensive research all across the country, and came up with this 2014 Rent vs. Buy interactive map! Check out which is cheaper in your area!

They're Back: Downpayment Assistance Programs!

If you are paying higher rents than mortgage payments, but can't buy a house because you don't have the downpayment, then you are IN LUCK! Downpayment assistance programs are BACK! Everything from grants which will pay your entire downpayment and even closing costs, to programs that will wrap the downpayment in the loan for only an extra $30-$40/month! It will still be cheaper than renting!

There are so many different programs, so email me and I can send you the best ones for you! There are even low and high income limits, so most everyone can qualify!

No more excuses! Trulia's Rent vs Buy study says it is 43% CHEAPER to buy than to rent right now in the Denver area! Email me to see if you qualify!

Denver #6 on Forbes Fastest Growing Cities in America

Forbes wrote, "To cull our list, we began with the 100 most populous Metropolitan Statistical Areas (MSAs) in the U.S., geographic areas designated by the U.S. Office of Management and Budget that include cities and their surrounding suburbs. We rated these places based on six metrics. Using data from Moody’s Analytics, we assessed the estimated rates of population growth for 2013 and 2014, year-over-year job growth for 2013, and the rate of gross metro product growth—a.k.a. the economic growth rate--for 2013. We also considered federal unemployment data and median salaries for local college-educated workers, courtesy of Payscale.com. The result is a list of the 20 fastest growing metro areas in America in terms of population and economy."

Denver came in at #6 in the entire country! Here are the stats:

Median Pay: $64,900
2013 Population Growth Rate: 1.75%
Unemployment Rate: 5.95%  

Fed: By End of 2014, Stimulus Will Be Over

The Federal Reserve announced on Wednesday that it would begin gradually winding down its bond-buying stimulus program next month. 

The Fed has been purchasing $85 billion per month in Treasury and mortgage-backed securities. In January, it will reduce its purchases by $10 billion to $75 billion, and then curtail purchases each month afterward. By the end of next year, the Fed plans to end the monthly purchases completely. 

In the last year, the Fed has purchased more than $1 trillion in Treasury and mortgage-backed securities. Fed officials have said the purchases have helped to reduce borrowing costs, and it credits the program for helping to contribute to an improving housing market. 

The Fed said that it plans to hold short-term interest rates near zero, and any rises likely would not come until the the end of 2015. 

Both policies are aimed at holding down borrowing costs. 

Previously, the Fed had said it would keep short-term interest rates near zero until the unemployment rate fell to a certain level. But the Fed announced Wednesday that short-term interest rates would stay near zero “well past the time that the unemployment rate declines below 6.5 percent.”

4 Staging Tips for Sellers During Winter

Winter is here! Be prepared to put a bit more effort in selling your home given the unpredictable weather. Good news is that most buyers looking in the winter are serious enough about finding a new home at a time most people would rather stay inside. And anyway, you can heat up the chances of selling your home in winter with smart staging strategies. Here are a few tips to make your home sparkle in the snow:

1) Start with the exterior and clear a path

This will be the first tip an agent can give you. As with any time of the year, make sure that your home looks well maintained and cared for. Just like trimming the lawn in the summer, you should keep the snow and ice at bay in the winter. If a potential buyer can’t get easily (or if he even falls), then expect that the house won’t sell. Always, always make sure that the walkways are safe. Curb appeal is very important, first impressions last!

2) Take advantage of the holiday season – DECORATE!

Make it festive but don’t go overboard! Elegant holiday decorations can add festivity to your home. A simple wreath, twinkling lights, or lightly scented holiday candles can make buyers feel welcome and lift up their spirits. Your home should be as inviting as possible so buyers can envision living in your home.

3) Warm it up

Warm and cozy is the key! Before the buyer sees your home, adjust the thermostat to a comfortable level – between 67 and 70 degrees. Do not light candles and start the fireplace for obvious safety reasons. Instead, you can highlight a functional fireplace. If possible, turn on all the lights.  Even during the day – winter days can provide dim lighting.  Pull back the drapes to let as much natural light as possible.  Let’s face it – nice natural light and warmth will help your home make a better presentation.  

4) Make it festive

Lastly, winter is the prime time for festive parties. Showcase the entertaining possibilities of your home by setting the dinner table with good china and silver. You would want to reflect the possibilities your home has for entertaining guests. Have a plate of cookies ready for your guests, or even some warm cider and hot coffee if the weather is cold.

There’s no reason to wait until spring before you sell your home.  As an expert, I can help you sell your home even on the grayest days. Call me so I can discuss my marketing strategies and how we can take advantage of the holiday season to get you a premium price for your house.

7 Pre-Winter Maintenance Tips!

1. Replace your furnace filter.

 You don't want you and your family to be breathing old dust and other bad stuff throughout the Winter. It will also make your furnace more efficient. Also have your heating system serviced by a professional, to make sure it's operating efficiently!

 

2. Replace the batteries in your smoke detectors and carbon monoxide detectors, to make sure they are actively working & safe. 

 

3. Consider having a fire extinguisher available in your kitchen. There are many fires during Winter 

 

4. Want to save 20% on utility bills AND stay warm? Put weather stripping on outside doors, and caulk all windows and frames to cut down on drafts.

 

5. Roof check: Make sure your roof is in good shape by looking for any missing or loose shingles - you don't want a leak from ice and snow! 

6. Blow out your sprinklers, and drain garden hoses and store them inside. Also shut off outdoor water valves in cold weather. Any water left in exterior pipes and faucets can freeze and expand breaking the pipes.

7. Porches & decks: Check the supports, stairs, and railings. Make sure the handrails can support someone slipping on snow or ice! 

 

 

Send me an email for more maintenance tips or handyman referrals in case you don't have the time to do this kind of stuff!

Homes over $500,000 selling like 'hotcakes'

                                                     Home on 2925 4TH St, Boulder,  
                                                       sold for $1.46MM last month

In the last 30 days, 268 homes and 35 luxury condos sold over $500,000 to buyers in the metro Denver and Boulder area. According to MLS data, 

40 of these sales were over $1 million!In the last 30 days, 268 homes and 35 luxury condos sold over $500,000 to buyers in the metro Denver and Boulder area. According to MLS data, 40 of these sales were over $1 million!

What is interesting is that several of these recent sales had buyers walking away with purchases $20,000-$100,000 less than asking prices. Buyers feel that they are getting great deals, and sellers are happy their homes are selling!

When Rent is High, Time to Buy: Renting vs. Buying, Objections & a Case Study

Vacancy rates have never been lower in the history Denver, which simply means that landlords are having a heyday increasing rents on tenants. 

Some people still have fears about home-buying, such as, "What if the roof falls in? What if the furnace breaks? I have to pay for everything!" Or simply, "What if I can't pay my mortgage one month?!" These objections and fears are normal. But to really answer them, we have to get the big picture, and look at renting vs. buying.

1) "What if the roof falls in? What if the furnace breaks?!"

Easy: we get a home inspection. Buyers get a home inspection while they are under contract, which inspects the home from top to bottom--from roof down to the furnace--and everything in between. If anything comes up, we can ask the seller to fix it, or even give you a homebuyer's warranty, which covers everything in the home for the first year (and can be renewed). If we cannot come to an agreement with the seller, we can simply exit the contract and look for another home in better condition. PS - there is also roof insurance!

2) "What if I can't pay my mortgage one month?"

That would mean you can't pay rent for one month either. Believe me, landlords are much stricter than banks. If a tenant is 1 week late on rent, most landlords file for eviction, which can end up on your criminal record. Banks often give 15 days or more grace period for a payment, and charge a relatively small late fee if you are late. But the truth is, renters still have to pay monthly rent, which is more expensive than a mortgage right now.

3) "I don't want more debt!" 

Distinction: There is such thing between good debt and bad debt. Bad debt, like credit cards, only buries you more in the hole. Good debt, like a home loan actually puts you in a situation where you can leverage "other people's money"(bank) to make money for yourself. How? 

Case Study:

Say you rent a house for 5 years at $1200/month. In 5 years you will spend $72,000 in rent paying your landlord's mortgage, and never ever see that money again. 

But say you buy a house for 5 years. If you spend $7,000 on a downpayment (sidenote: 0% downpayment programs for qualified buyers are back!), and say your total payment is also $1200/month. And let's say, to play really conservative, your house goes down in value by $20,000 in 5 years (which is just about impossible if you buy smart!). You can still sell it, get your $7,000 downpayment back, and pay off the mortgage and closing fees. Basically you just saved $72,000 you would have paid in rent. And if your house goes up in value, you make even more money. You can also rent it out and have passive income. The options are endless!

Real estate is one of the easiest ways to financial security and wealth simply because you are ALREADY paying rent, so it is not an extra investment. 

Check out Trulia's Rent vs. Buy Calculator to see how much you would be saving if you bought a home!

Let me run some numbers for your neighborhood! Just email me!

Is the Market Slowing Down?

I've gotten this question quite a bit in the last few weeks. And it's a great question that is relevant to both buyers and sellers. If the market is "slowing down" (meaning less sales, which cause prices to go down), buyers could have an advantage and get good deals. Sellers on the other hand might have to reduce their prices or wait longer for buyers. This is basically what happened from 2008 to 2011. Lots of homes for sale, and very few buyers wanting to buy (though it was the bottom of the market! Hindsight is always 20/20). 

The best way to gauge a market is to find out how many homes have sold in the most recent month, and how many homes are currently available on the market (this is called Absorption Rate). Right now there are about 11,288 homes and condos on the market according to the MLS - which is more than in September. Last month 4,730 homes and condos sold.  This means that it would only take 2.3 months for all the current inventory to be sold, and that is still what would be called a "fast" market, but with more inventory. The average days a home is on the market in September was 39, which is also still blazing speed. 

The market was so hot from January to August that almost anything seems "cold" compared to it - the speed of sound seems "slow" compared to the speed of light. We never reached higher home prices in Metro Denver than we did around June.

Let me say that again: Home prices in Metro Denver a few months ago were even higher than the bubble in 2004! Wow! (Note: interest rates were around 6% in 2004, so the affordability was still much better in 2013.)  So though it's "slowing down" from a few months ago, it's still a pretty hot market.

This plays well for both buyers and sellers:

Looking to Buy? Things are "slowing down" right now compared to how blazing fast the market was from January to August. This means less competition, a bit more bargaining room on prices, and more options of homes for sale. Interest rates also went back down to 3.75% again, after getting close to 5% last month!

Looking to Sell? The market is still historically high, but isn't as blazing hot is it was earlier this year, which means that though you may not sell your home in 2 days, according to the numbers you'll still get about 8% more in price than if you sold this time last year, and about 17% more than in 2011. The average days on market are also still only 39 days, which is historically lightning fast.  

-The Denver House Guy

Government Shutdown Pushes Mortgage Rates Down

As a result of the federal government shutdown, fixed mortgage rates fell for the third consecutive week, Freddie Mac reports, ending at their lowest averages in nearly 4 months.

Freddie Mac reports the following national averages with mortgage rates for the week ending Oct. 3: 

• 30-year fixed-rate mortgages: averaged 4.22 percent, with an average 0.7 point, dropping from last week’s 4.32 percent average. Last year at this time, 30-year rates averaged 3.36 percent. 
• 15-year fixed-rate mortgages: averaged 3.29 percent, with an average 0.7 point, dropping from last week’s 3.37 percent average. Last year at this time, 15-year rates averaged 2.69 percent. 
• 5-year hybrid adjustable-rate mortgages: averaged 3.03 percent, with an average 0.6 point, dropping from last week’s 3.07 percent average. Last year at this time, 5-year ARMs averaged 2.72 percent. 
• 1-year ARMs: averaged 2.63 percent, with an average 0.4 point, holding the same as last week. A year ago at this time, 1-year ARMs averaged 2.57 percent.

Don't wait for rates to go back up!

Mortgage Rates Take a Dip!

Mortgage rates took another dip this week thanks to the Federal Reserve's decision to stay the course on the stimulus bond-purchasing program.

The benchmark 30-year fixed-rate mortgage fell to 4.25 percent from 4.66 percent last week, according to the Bankrate.com national survey of large lenders. That is GREAT news! The mortgages in this week's survey had an average total of 0.33 discount and origination points. One year ago, that rate stood at 3.55 percent. Four weeks ago, it was 4.62 percent.

The benchmark 15-year fixed-rate mortgage fell to 3.53 percent this week, compared to 3.7 percent last week, and the benchmark 5/1 adjustable-rate mortgage fell to 3.41 from 3.55 percent. The benchmark 30-year fixed-rate jumbo fell to 4.125 percent from 4.77 percent!

This is great news for buyers needing a  loan, but also for sellers since higher mortgage rates can affect the speed and price at which their home sells. Don't hesitate to take advantage of these amazing rates. You may regret it if rates go up!