Homebuyers today can potentially save several times more money in interest costs than buyers who took out a mortgage in early April and claimed an $8,000 homebuyer tax credit. Someone taking out a $240,000 mortgage today at a 4.42% (and right now they're at 4.25%) interest rate could save $33,287 in interest costs over the life of a 30-year loan. That's four times the $8,000 credit used by a first-time homebuyer who financed at 5.21% in early April.
Read full article
Wednesday, August 25, 2010
Friday, August 20, 2010
Thursday, August 19, 2010
July 2010 vs July 2009 MLS Housing Market Stats
July 2010 combined MLS Residential Statistics had the following interesting changes compared to July of 2009:
- Decrease in the Number of Closed Sales to 2,632 (down 24.5%)
- Average Days on Market reduced 14.3% to 84 days
- Number of Active Listings increased 13.6% to 17,983
- Absorption Rate increased to 6.6 months (up 45.3%)
- Average Sold Price remains strong (up 7.4% from $276,654 to $297,218) compared to July, 2009.
Probably the most interesting thing to note about July 2010 was the number of listings that increased, thus also driving up the months of inventory('supply') drastically. Anything above 6 months of inventory is considered a buyer's market. So with the extra supply on the market, and the extremely low mortgage rates, now would be objectively speaking a great time to buy, and a bit more difficult time to sell. Although sellers who are on the market now want to sell before the winter hits.
Friday, August 13, 2010
30-year mortgage rates hit another low: 4.44%
USA Today reported that mortgage rates sank to the lowest level in decades this week, pushed down by the Federal Reserve's move to buy up government debt to help lift the economic recovery.
Mortgage buyer Freddie Mac said Thursday that the average rate for 30-year fixed loans this week was 4.44%, down from 4.49% last week. That's the lowest since Freddie Mac began tracking rates in 1971.
AID: Feds rethink policies that encourage home ownership
The average rate on the 15-year fixed loan dropped to 3.92% from 3.95%, also the lowest on record.
Rates have fallen since spring as investors sought the safety of Treasury bonds, lowering their yield. Mortgage rates tend to track those yields.
Thursday, August 12, 2010
Zillow: "Denver is the Best Market between the Coasts"
Denver’s ranking no surprise
Denver’s relative performance to most markets, ”does not surprise me,” said Lane Hornung, president of 8Z Real Estate and an owner of Cohomefinder.com. “Especially when you take out San Francisco, San Diego and Boston – where home prices have been fallen so much more, so now that they have started to recover, their increases are amplified so much more, Denver really is one of the better performing cities relative to other places in the country. Denver is starting to show nice, steady appreciation, without the huge amount of ups and downs as some other places.”
Tuesday, July 20, 2010
New Light-Rail Tracks are set!
RTD's FasTracks is one of the largest transit expansion programs in the country. This $6.5 billion regional transportation expansion program made up of nine rapid transit corridors, 31 new park-n-Rides, the redevelopment and reconfiguration of Denver Union Station (DUS) into a truly multimodal transit-oriented development, and the enhancement of the bus network and transit hubs across RTD’s district. The FasTracks program will include 122 miles of new light rail and commuter rail, 18 miles of bus rapid transit (BRT), 21,000 new parking spaces at rail and bus stations and enhanced bus service across the District.
Check out the map for an idea as to FasTracks’ reach.
Colorado #3 Top State for Business
For the second year in a row, Colorado ranks No. 3 on CNBC's latest list of "America's Top States for Business." Colorado placed in the top 10 in three of the categories among the 50 states: quality of life (No. 2), business friendliness (No. 4) and workforce (No. 10). It also ranks above the 50-state average in technology & innovation (No. 12) and access to capital (No. 15).
Denver Market Stats: June 2010 vs. June 2009
As a quick recap, June 2010 combined MLS Residential Statistics had the following changes compared to June of 2009.
- Slight decrease in the Number of Closed Sales to 3,227 (down 3%)
- Average Days on Market reduced 19.8% to 81 days
- Number of Active Listings increased 9.8% to 17,337
- Absorption Rate increased to 5.1 months (up 7.5%%)
- Average Sold Price remains strong (up 5.7% from $283,312 to $299,375) compared to June, 2009.
Tuesday, July 13, 2010
Denver area’s apartment market continues improvement in 2nd Quarter
Metro Denver’s apartment market continued to improve in the second quarter, as the vacancy rate dropped and average rental rate increased, according to a Grubb & Ellis Co.report released Monday.
“Good news for the apartment sector keeps coming, despite a lack of significant job growth in the Denver region,” said the “Multi-Housing Trends Report,” produced by Grubb & Ellis’ Denver office. Apartments also are called multifamily housing and multi-housing.
In the second quarter, the metro area’s apartment vacancy rate dropped for the fourth quarter in a row — to 6 percent from 8.5 percent for the same quarter of 2009. “[That’s] the most prolonged positive growth for any Denver real estate sector,” the report said.
More than two-thirds of the area’s submarkets experienced a drop in vacancy.
As more vacant apartment units filled up, average rent rose to $862 per month from about $850 in last year’s second quarter. “The average rental rate of $862 per unit is now only 1.5 percent below the peak high set in mid-2008,” the report said.
Read more: http://www.bizjournals.com/
Million-dollar homes show life; most sales still below $300,000
Friday, June 25, 2010
Record-low mortgage rates boon for housing
Mortgage rates fell this week to the lowest level on record, motivating consumers to lock in low payments for home purchases and refinanced loans. It's the best news the market has seen since the tax credits expired. The average rate for 30-year fixed- rate loans dropped to 4.69%, Freddie Mac said Thursday. The high-end market is seeing a surge in sales as a result of the lower interest rates. A year ago, the rate for a jumbo loan ranged from 6.25% to 6.75%. Today, it's about 5.75% for a 30-year fixed-rate. Read full article:
http://www.denverpost.com/business/ci_15371813
http://www.denverpost.com/
Thursday, June 24, 2010
Credit Myths
Credit is a complex subject, and like most complex subjects it's often misunderstood. As a result, many people learn information about credit that simply isn't true. Our credit specialists are trained to help you navigate the myths and understand the truth about your credit.
The following list is a sample of the popular credit myths we can help you understand.
- Paying off your collections will help your credit score.
- Once you pay a collection, charge-off, judgment, or tax lien it no longer impacts your credit score.
- Using your credit cards a lot will increase your payment history and raise your score.
- Multiple credit inquiries pulled at one time in the same industry will not negatively impact your credit score.
- Consumers have just three credit scores.
- It is better if an account goes late occasionally than if it goes bad altogether.
- Paying off your auto loan, student loan, or mortgage loan will help improve your situation.
- Paying off your major credit cards and leaving the small store cards maxed is the better choice.
- You should pay off one revolving account at a time.
- Paying a large up-front credit repair fee will get you better service.
- After 7 years, a negative item on your report will disappear and will no longer lower your score.
- Having a third party, such as a consumer credit counseling firm, manage your finances will help improve your credit score more quickly.
- For corrections, the burden of proof lies with the consumer.
- My divorce decree states that my spouse is responsible for that debt, so any future negative items will not impact my credit score.
- Your collection was sold, so the original one will be erased.
- You need to contact your creditors rather than the bureaus every time you think there is a mistake on your credit report.
- The credit bureaus, creditors and lenders are your friends!
- You have only one credit score.
- A higher salary will improve your credit score.
Provided by Continental Credit Online
Fannie Mae gets tough on homeowners who walk away...
Fannie Mae is trying to encourage distressed homeowners to find alternatives to foreclosure by banning those who walk away from getting new loans for 7 years. Troubled borrowers who do not try in good faith to work out a deal, but have the capacity to pay, are targeted by the policy. "Walking away from a mortgage is bad for borrowers and bad for communities and our approach is meant to deter the disturbing trend toward strategic defaulting," said Terence Edwards, executive vice president for credit portfolio management.
Friday, June 11, 2010
27 Reasons to Love Colorado in the Summer! - 5280
5280- "Colorado's white-washed winters are the stuff great travel brochures are made of: rosy-cheeked skiers schussing down powdery runs, frosted pine trees swaying in the wind, frozen lakes glistening in the afternoon sun. But Denverites know that our state's glorious summer is every bit the equal of those famous winters—and, dare we say it, maybe even a little bit sweeter. For 12 weeks (and sometimes well into late September), the thermometer hovers somewhere around perfectly comfortable; the air smells of forsythia, lilac, and freshly cut grass; and we revel in an all-too-short season full of hiking, camping, fishing, cycling, patio dining, festival-going, and flat-out sun worshipping. So sit back, kick your feet up with one of Breckenridge Brewery's 471 IPAs (#6)—or lace up your hiking boots (#13)—and enjoy."
Thursday, June 10, 2010
May 2010 MLS Stats vs. 2009
Here is a quick high-level recap of the May 2010 combined MLS Residential Statistics compared to May of 2009. Even after the expiration of the tax credit, the Denver area market is showing excellent signs:
- Increase in the Number of Closed Sales to 3,416 (up 19.6% for the month)
- Average Days on Market reduced 27.9% to 75 days
- Number of Active Listings increased 4.2% to 16,333
- Absorption Rate dropped to 4.6 months (down 15.3%)
- Average Sold Price remains strong (up 4.3% from $262,066 to $273,285) compared to May, 2009.
These are all very good signs for the market in the Metro Denver area and surrounding cities.
Friday, May 28, 2010
5280's Annual Guide to the Hottest Neighborhoods in Denver
In normal years, assessing Denver's hottest neighborhoods is pretty predictable business. Of course, 2010 is, and 2009 was, anything but normal. As the Mile High City—and the nation—begins the slow recovery from the housing crisis, many of the city's most desirable neighborhoods have seen marked corrections. That's not a bad thing, per se, as these communities (think East Wash Park, University Park, and Country Club) are still highly sought after, even if the sales data aren't quite as rosy as they've been in the past. The good news, though, is that the benefactors of these micro-market corrections are, mostly, the areas around the city's classic neighborhoods—and the long-term effect of this phenomenon will be to expand Denver's overall livability. Whether you're buying, selling, or staying put this year, these are the places to be in Denver right now.
Belcaro
One of the few neighborhoods in this exclusive part of town where prices actually appreciated in the past year. This lush oasis (think ranch-style homes and quiet streets that don't conform to the city's grid) in central Denver draws a higher-end dweller—primarily families and empty-nesters with the taste and income for the finer things. Still, Belcaro offers relative bargains to luxury-market homebuyers, although sellers should be patient: Listed homes spent 183 days on market (DOM) last year, compared to a citywide average of 97. Average sale price $845,000
+8% over 2009
+8% over 2009
Washington Park West
This slightly hipper, grittier alternative to Wash Park East (average sale price: $654,000) has all the access to its neighbor's amenities, but at a far lower cost. This primarily residential neighborhood is surrounded by numerous retail districts, whether new (Pearl Street, north of I-25) or revitalizing (South Broadway). Lately, more young couples and families have been landing in the area to take advantage of its leafy streets, reasonably priced housing that hasn't been as overwhelmed by scrapes and duplexes as have some of its neighbors, and, of course, the neighborhood's biggest draw, Wash Park itself, which teems with activity even during the chilly winter months. Average sale price $395,000
+1% over 2009
+1% over 2009
Berkeley West/Regis
The Highland boom spreads north and west as Denverites take advantage of the area's easy access to I-70 and the mountains, along with the ongoing development of the Tennyson Street corridor. The Regis University campus, the funky-cool old-school Lakeside Amusement Park, and lots of green space and architecturally interesting new or remodeled homes make these adjacent 'hoods most attractive to couples and young families who might be priced out of Highland but still want to be close to the action of Highlands Square and the 32nd Avenue and Zuni intersection. Average sale price (Berkeley) $283,000, +8% over 2009
Average sale price (Regis) $212,000, +11% over 2009
Average sale price (Regis) $212,000, +11% over 2009
Park Hill East
The low prices and proximity to City Park, bike trails, and the rest of Park Hill have made this neighborhood of well-kept, single-family Tudors and bungalows an attractive, affordable alternative to other east-side areas such as Hale and Hilltop. PHE is dotted with small shopping districts and a variety of quaint restaurants serving Italian, Thai, soul food, breakfast—you name it. With quick access to shopping in Stapleton, this neighborhood will appeal to anyone looking for an entry- or mid-level home that's bound to appreciate over the next several years. Average sale price $204,000
+5% over 2009
+5% over 2009
Sunnyside East
We've been touting this neighborhood for years as an up-and-comer, and it's finally arriving as a focal point for homebuyers who want to get in on the northwest Denver boom. True, it's a bit grittier than its more expensive neighbors, but it lures cutting-edge types who are willing to endure the "refinement" process rather than wait until everything has been upgraded (and potentially overpriced). Sunnyside's unusually affordable homes—lots of modest bungalows—mean inventory is low, so buyers must be prepared to act fast. Average sale price $181,000
+13% over 2009
+13% over 2009
Sloan's Lake West
Between the burgeoning Edgewater commercial district, Sloan's Lake East, and Highland, the area around Denver's biggest lake is fast becoming the go-to 'hood for people who want quiet surroundings with easy access to downtown, northwest Denver's shopping and nightlife, or quick mountain getaways. The lake itself—which not long ago was a place to avoid after dark—has become a landing spot for joggers, boaters, and water skiers, and the sleepy surrounding streets make the neighborhood attractive to families with children. Average sale price $341,000
+9% over 2009
+9% over 2009
Jefferson Park
This cozy enclave still has a rich Latino heritage and provides a lower-cost option—with equal access to northwest Denver's amenities and striking views of downtown—than the more established Highland neighborhood to the north. The Speer and I-25 borders funnel traffic around the area rather than through it, which makes the streets surprisingly quiet, day and night, and many of the modest homes are ripe for remodeling or flipping. Despite the area's proximity to Invesco, the chaos is minimal on football Sundays thanks to a well-run traffic-management plan, and JP's average of 46 DOM shows how quickly its properties are moving. Average sale price $260,000
+9% over 2009
+9% over 2009
Congress Park South
Along with its neighbor Congress Park North, this was one of the few areas in central Denver where values appreciated last year. One of downtown Denver's first "suburbs," CPS is now one of the oldest and most desirable and vibrant neighborhoods in the city, with many remodeled Victorian-era homes. It has become a vortex around which couples, families young and old, hipsters, and yuppie singletons revolve. The 'hood is also near the quietly luxurious Cheesman Park and Denver Botanic Gardens, giving the whole area a neighborly, walkable—yet still urban—feel. Average sale price $445,000
+9% over 2009
+9% over 2009
(Source: 5280)
Thursday, May 27, 2010
Demystifying the Home Buying Process
Buying a house can be an overwhelming, and even exhausting process. I want to make it as easy as possible for you so that you have a headache-free, and even fun experience! These are the 9 steps we'll follow to ensure you have a smooth and enjoyable purchase:
1)Needs Analysis: You’ll fill out a Home Preference Profile to help me understand both your wants and your needs, and to help you get a clearer picture of your perfect home.
2)Pre-Approval: You’ll then get pre-approved by a recommended loan officer or lender who will use your credit and qualification status.
3)Target Neighborhood Information: I'll create a broad neighborhood search profile matching your desired area and price-range using my market trends and access tools.
4)Home Search: I’ll run a search according to your criteria, and you will select the available homes of your interest and we will set up a time to take a tour to see them. Before we go on tour, we’ll have to sign the Buyer-Agency contract to make our agency-relationship explicit.
5)Make an Offer: I’ll run comps on the home(s) that you like and are ready to write an offer on to get an idea of what the neighborhood is selling for. I will write the offer contract for you, and advise you on the terms and numbers for the offer. You’ll sign the offer, and I’ll present it to the listing agent.
6)Negotiation: If they submit a counter-proposal, I’ll present it to you and advise you on what I think, and you can either accept it or make a counter-proposal.
7)Under Contract: I’ll guide you through all the dates & deadlines of the contract (title, inspection, appraisal, survey, loan conditions deadline, etc.) and recommend trusted vendors like an inspector, sewer scoper, etc., and make sure things run as smoothly as possible!
8)Pre-Closing: We’ll be in touch with the loan officer and make sure everything is approved for the loan, and all documents are prepared and any monies are ready for closing.
9)Closing: Congrats! Sign the papers and move into your new home!!!
Friday, May 21, 2010
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Wednesday, May 12, 2010
April 2010 vs. April 2009 Residential Stats
While individual areas vary, April 2010 combined MLS Residential Statistics had a number of positive indicators compared to April of 2009.
- Increase in the Number of Closed Sales to 3,308 (up 22.2% for the month)
- Average Days on Market reduced 22.5% to 79 days
- Number of Active Listings increased 1.3% to 15,843
- Absorption Rate dropped to 4.5 months (down 21.3%)
- Average Sold Price remains strong (up 7.8% from $254,442 to $274,253) compared to April 2009.
April 2010 stats are affected by the tax credit, however April 2009 was also during the tax credit.
Monday, May 10, 2010
Updated Denver Neighborhood Price Change Map!
If you would like to see other maps - Lakewood, Golden, Centennial, Arvada, Aurora, Littleton, Broomfield, Castle Rock, Thornton, Westminster, or Parker, send me an email at JonathanGhaly@TheDenverHouseGuy.com
Monday, April 19, 2010
HAFA: Revolutionizing Short Sales
Short sales has become synonomous to some 4-letter words in the English language. But this may soon be changing. The federal government is backing a new directive which should speed up the usually crucially slow and stressful process of a 'short' sale. It's also offering the seller $1500! Read the details below!
HAFA Details
HAFA Details
Tuesday, March 23, 2010
Monday, March 8, 2010
Thursday, February 25, 2010
Short Sales EVERYWHERE in Metro Denver
Right now there are over 500 active short sale listings in Denver alone. There are over 400 in Aurora. And hundreds more all around Metro Denver. Each week in Metro Denver alone there are 600-700 new filings of home-owners who are in default of their mortgage. We've all heard about short sales and know the major reasons for them: bad loans (adjustable rates, refinances, stated-income qualifications, etc.), drop in values, and financial hardships of the sellers.
(To understand what a short sale is, click here)
But many people don't know that short sales can be a major win-win situation for them - either as sellers of their own home, or as buyers. If you own a house that you can no longer afford because of financial hardships, you should NOT be scared or ashamed to look into the possibility of selling it as a short sale. If you have a legitimate hardship, you can sell your home as a short sale, AND possibly get the entire deficiency amount forgiven by the bank. It is a much better option than foreclosing.
On the buyer's side, IF you have the time and patience of a 3-7 month bank-approval process, you will enjoy a home with lots of equity at an under market-value price.
Call me if you are considering a short sale. We have an entire team that will help you through every step of the process.
Is a Short Sale Right for You?
(To understand what a short sale is, click here)
But many people don't know that short sales can be a major win-win situation for them - either as sellers of their own home, or as buyers. If you own a house that you can no longer afford because of financial hardships, you should NOT be scared or ashamed to look into the possibility of selling it as a short sale. If you have a legitimate hardship, you can sell your home as a short sale, AND possibly get the entire deficiency amount forgiven by the bank. It is a much better option than foreclosing.
On the buyer's side, IF you have the time and patience of a 3-7 month bank-approval process, you will enjoy a home with lots of equity at an under market-value price.
Call me if you are considering a short sale. We have an entire team that will help you through every step of the process.
Is a Short Sale Right for You?
Friday, February 12, 2010
January 2010 Denver Market Statistics
Prices in January of 2010 vs. 2009 continue to show the trend upwards, as they did in December. Average sold price out of the 1,841 single-family home closings in January 2010 was $260,530, $30,000 higher than the average sold price in January of '09, which was $230,878. This is a great trend for Denver and continues to show that prices are giong up all over the board (exceptions are Broomfield, Douglas, Lafayette, and snippets of Jefferson County North Central).
Total MLS Stats
All MLS Stats
Total MLS Stats
All MLS Stats
Wednesday, February 10, 2010
North Aurora - Competition and Appreciation
North Aurora has experienced appreciation over the last year. As youll see, many neighborhoods are green (appreciation), and months of inventory are very low. Many investors tell me how difficult it is to get a property even under $100K in North Aurora, especially because it's still a highly sought after area for cash-flow and a solid rental.
What was selling easily for $65,000 in 2007 now you couldnt get for $100,000 (and in 2003-05 was $150,000). But Aurora is still a safe and cheaper place to invest in Denver. It has Fitzsimmons to the East, Lowry to the West, Stapleton to the North, and South Aurora just south. Investors continue to try to get a hold of properties here.
Tuesday, January 19, 2010
December '09 Sold Prices Sky-Rocket over Dec '08 in Denver
Houses sold just last month sold at an average price of 17% higher than prices last December of '08 (from $240,900 to $281,700). This is yet more evidence that Denver, unlike other cities in the nation, is way passed bottom.
Some neighborhoods did even better than this, such as Denver Northeast and Southeast. Denver Northeast sold at 33% higher December of '09 than December of '08! And Denver Southeast sold at 22.4% higher. Denver Southwest was even higher at 24.7%!
These are significant numbers. That 22% in Denver Southeast actually means houses are selling for $80,000 MORE this December than last December! And thats 175 sales in Dec '09 vs 168 in Dec '08, so if anything Dec '09 is a more precise average with the more number of sales. Who says prices are still going down in Denver? These numbers are all across the board except for Broomfield(down 9% Dec '09 vs Dec '08) and Brighton(-2.8%).
Click here for MLS All Area Stats for December '09
Some neighborhoods did even better than this, such as Denver Northeast and Southeast. Denver Northeast sold at 33% higher December of '09 than December of '08! And Denver Southeast sold at 22.4% higher. Denver Southwest was even higher at 24.7%!
These are significant numbers. That 22% in Denver Southeast actually means houses are selling for $80,000 MORE this December than last December! And thats 175 sales in Dec '09 vs 168 in Dec '08, so if anything Dec '09 is a more precise average with the more number of sales. Who says prices are still going down in Denver? These numbers are all across the board except for Broomfield(down 9% Dec '09 vs Dec '08) and Brighton(-2.8%).
Click here for MLS All Area Stats for December '09
2010 Denver Price Change Map!!
Here is the 4th Quarter '09 Denver neighborhood price change map. Not only does it show you average home price changes from the most recent 12 months to the previous 12 months (per neighborhood), along with the average days on market per neighborhood, it also shows you the number of solds, number of active short sales(which can significantly drive down average sold prices), and months of inventory per neighborhood. A good measure for months of inventory is 6 months: below 6 months usually means seller's have the advantage (less inventory, more competition), and above 6 months usually means a buyer's market (more inventory, more leverage for the buyer). Notice that many of the neighborhoods are below 6 months of inventory, meaning a SELLER'S, not buyer's, market.
Give me a call if you'd like to see different area maps! 720.987.8998
Thursday, November 12, 2009
October Market Stats: '09 Better than '08
October 2009 surprisingly (or not so surprisingly, depending on how much you want to blame the tax credit expiring) outperformed October 2008 in average sold prices being higher ($261,771 in '09 up from $250,172 in '08) AND the better absorption rate (4.9 months in '09 vs. 5.5 months in '08). Although there were a bit more than 300 more closings in October of '08, there were also over 3,500 more listings in '08, making for much more choice and much less competition (it's competitive today, believe it or not!).
Check out the stats:
Thursday, November 5, 2009
Tax Credit is EXTENDED!!
To: All REALTORS® Date: November 5, 2009 Dear Fellow REALTOR®, I am VERY excited to report that Congress has answered our call to extend and expand the homebuyer tax credit!
Both the House and the Senate have passed an unemployment insurance bill, which includes an amendment that expands and extends the tax credit. That bill will be sent to President Obama for his signature in the next day or so.
I have recorded a special edition of my President’s Podcast, with details on the new tax credit and when it takes effect. Please take just a couple of minutes to listen.
We also have posted a comparison chart on Realtor.org. This can be a helpful resource as you work with buyers to take advantage of the credit in the months ahead.
On behalf of NAR, I thank you all for your participation in our advocacy efforts on this issue. Not only did we set a new record on responses to Calls for Action, but we helped move another step closer to a brighter future for America’s families and our economy.
Sincerely,
Charles McMillan, CIPS, GRI | |
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