More homes went under contract in October than at any time in the last 20 years, partially attributable to the $8,000 federal tax credit for first time home buyers due to expire at the end of November. The tax credit extension signed into law that adds move-up buyers ($6,500) and extends income limits to $125,000 for a single person and $225,000 for a married couple, that figure is due to go up between now and June 30, 2010, when it’s scheduled to end.  Buyers will need to have a home under contract by the end of April in order to take advantage of the tax break. For more information about the extension email me at Judith@Buyers-Advantage.net.   

That should be good news for both buyers and sellers.  Buyers in recent months have had to face a decrease in housing inventory as lower priced homes were snapped up by first time home buyers and investors looking to make a profit.  And we’re heading into the real estate slow season for the holidays which won’t begin to pick up till after the first of the year.  But then I expect a steep hike in buyers and lots of sellers putting their homes on the market after a long dry spell.  We’re headed for a balanced market with good possibilities for a growing sellers’ market in the spring and summer months. If you’re planning to buy a home in the near future don’t wait too long or you’ll find yourself on the short end of a rising sellers’ market with prices heading higher.

Denver’s increasingly upbeat economy will likely fuel job growth later in 2010 after a bumpy fall and winter.  Increasing job growth will free up funds for house purchases and remodels, which will further fuel a growing economy.

October data show that lower priced homes under $200,000 are still selling at a higher rate than homes over $200,000.  But lower priced homes are becoming scarce as the market begins to narrow at the lower end due to high demand.  Buyers are making higher offers, and some desirable homes in good neighborhoods are commanding multiple offers.  Absorption rate (the number of months it takes to sell out the current inventory) dropped in October from 5.15 months at the end of September to 4.8 months at the end of October.  When it reaches 4 months it’s a sellers’ market.  Average days on market for October dropped from 96 to 93.  In July, the month with the highest number of sales this year, average days on market was 100. 

Average prices declined 4% from September and 2% from October 2008, while inventory was also down, 18% from a year ago, but just 4.5% from September.  Overall the number of days on market declined 3% from September and 2% from October 2008.  The number of condos/townhomes under contract (pending sales) rose significantly over last year, indicating a lot of activity in the attached dwelling market, while inventory declined showing a tightening market in that sector.  For single family dwellings the number of homes under contract increased 9% from last October, but declined about 6% from September.

The Denver metro area's cost of living makes it an easy choice over higher cost areas like both coasts. According to BankRate it costs 39.5%% less to live in Denver than in the Los Angeles area; 30.0% less than in San Diego; and 23.3% less than Seattle. If you live in the east, it will cost 35.7% less than in Washington, D.C.; 27.1% less than in Boston; 115.1% less than in New York (Manhattan); and 20.2% less than in Philadelphia.

For buyers coming from the south and the midwest, metro Denver could cost more. It costs 6.9% more in Denver than in Atlanta; 12.4% more than in Houston; 8.9% more than in Dallas; 8.5% more than in Dayton, Ohio; 3.7% more than in Rochester, MN, and 8.6% more than in Boise. But living in Denver still costs 11.3% less than in Chicago, 14.9% percent less than in Portland, and a whopping 61.8% less than in St. Francisco. If you’re moving from Florida, it will cost 7% more than in Jacksonville, 3.7% more than in Orlando, but 8.9% less than in Miami.

You'll need to do your due diligence to compare cost of living between your city and Denver at websites like Sperling's Best Places, Bank Rate or CNN/Money.

Having an Exclusive Buyers Agent to find the best buys will shore up your buying ability by representing your best interests - finding the best home at the lowest possible price, and saving you time and hassles. See client references on the Buyers-Advantage.net website. Phone numbers available upon request. Call Judith Clausen now at 303-587-3509 to help you find your next house.
 

Since my last blog entry I've had to take a break to cope with my husband's illness and death in September. It's been a difficult time over the last several months. But I'm ready to begin again. Thanks for the many messages of sympathy and hope.

In this entry I'd like to share with you an email I sent to some clients. You'll see what their needs are and how the market is (or isn't) meeting them.

Dear Jake and Sandra,

I got your email about your house hunt. You need a 2 car garage, 2+ bedrooms, 2+ bathrooms, a patio or small yard, HOA fees under $250, 1000+ square feet, a townhome not a condo, not on a busy street or less than desirable neighborhood, something that will likely hold value, and preferably move-in ready. That's from what you said in your email and what you and Jake have said during your house hunt. That's a tall order!

Here's the statistical data for September.

As you can see, inventory is down from last year this time 17.09% overall, 11.77% for condos (includes townhomes, patio homes, condos). Drop in inventory from June 2009 is 4.5%. Average sold prices are up 4.88% overall and 3.91% for condos. Average days on market is decreasing 1.02% for condos. The market absorption rate is currently 5.15 months, meaning we have a housing supply that will sell out in 5.15 months at the rate houses are now selling. A buyer's market is when you have 7+ months supply, and a seller's market is a 1-4 months supply. The picture is one of housing recovery, meaning it's moving from having been a strong buyer's market to more of a normal market and the direction expected is a slight seller's market in the spring.

The truth is that our market is heading into its holiday/winter hibernation. Inventory is limited. The bad news is that after you look at what I've sent today there are no more to consider. They'll come in by dribs and drabs after this till March when things begin to pick up again.

More data to look at is the average sold price. That includes all foreclosures, bank owned, and normal sale condos. Of what's been sold in the last month approximately 45% are townhomes and patio homes. The rest are condos. In September the average sold price for townhomes/patio homes was $211.420, with a net sold price after seller concessions of $209,169. For condos it was an average of $171,421 and a net sold after seller concessions of $169,454.

So you can see that your desired price is well below average, which will get you a below average townhome in terms of your needs. That's why I was so excited about the three places we saw earlier this week that were in your price range and had most of what you wanted.

Jake, you'd like to look at a few foreclosures or bank owned properties. You'll see a few in the places I've sent from the MLS. That's what's out there in your price range. The problem with foreclosures is what I said to you earlier.

They can take many months and even then often end up unraveling due to bank inaction or a late decision to let the home proceed to auction. Many folks believe that a buying a foreclosure is a good value. Good homes in good locations in good condition but also under the threat of foreclosure often command multiple offers at above the asking price. The remaining foreclosures on the market are usually substandard.

Bank owned properties, where the home has already gone through foreclosure, are a little better but because of the huge number of foreclosures across the country the banks, which more likely than not are large financial institutions throughout the world, are very slow to act, and again, it can take months. These institutions are not set up to deal with investment failures and don't have a smooth mechanism to deal with foreclosures. There are brokers out there who specialize in these REO sales, but I'm not one of them. If you need someone who does I can refer you to a great guy here in the area. Just let me know.

So that's the bottom line about the market in which you're looking for a place to live. If you have any questions, and I'm sure you will have, just ask away. I'll be happy to answer.

My advice is that you look over what I've sent today, decide if you want to see any of them, and then see those plus the three Sandra and I saw earlier this week that are possibilities. I don't mean at all to pressure you, but this is the best time to buy if you want to buy.

Best of luck,

Judith

Obviously they're looking for a townhome. But the market is similar for single-family homes. New statistics will be available for October sales in early November. Stay tuned for more news of what's happening in Denver real estate.

I haven't been able to write in my blog for the last few months. My husband has been having health issues and is currently in a rehab facility, most likely for the next several weeks. I spend a good bit of time with him. My clients over this period of time have been extremely patient and thoughtful and I have very much appreciated it.

I haven't lost touch with what's going on. One of Denver's best agents, Edie Marks, predicted in March that Denver's real estate market had bottomed out, and that it wouldn't be long before it started to recover. Local expert, Gary Bauer, disagreed, saying it was more like 60 days from then which would have put the beginning of recovery in June. We don't have June data yet, but my own experience bears Edie out. Since March I've seen greater buyer interest. Of course, my specialty is helping buyers find a home--I don't work with sellers at all--and buyers are beginning to realize that now is the time to buy.

More later after June figures are available.

The new American Recovery and Reinvestment Act (ARRA) included a new $8,000 first-time homebuyer tax credit for 2009 home purchases. If you've recently purchased a home or are thinking about buying a home you have several different ways you can receive this tax credit -- even if you've already filed your tax return.

Qualifying taxpayers who buy a home between January 1, 2009, and December 1, 2009 can claim up to $8,000 or $4,000 for married individuals filing separately. You can claim the credit either on your 2008 tax returns or 2009 tax return next year. The credit begins to phase out at a modified adjusted gross income of more than $75,000 or $150,000 for joint filers. But if you make less than that you can claim 10% of the purchase price up to the maximum credit.

The filing options to consider are listed below:

• File an extension.  If you haven't yet filed your 2008 return but are buying a home soon, you can request a six-month extension to October 15th. This step would be faster than waiting until next year to claim it on your 2009 tax return. Even with an extension, you could still file electronically, receiving your refund in as few as 10 days with direct deposit.

• File now, amend later.  If you're expecting a sizable refund on your 2008 tax return but you're also considering buying a house in the next few months, you can file your return now and claim the credit later. You would file your 2008 tax forms as usual, then follow up with an amended return later this year to claim the homebuyer credit.

• Amend your 2008 tax return.  If you're buying a home in the near future , but you've already filed your 2008 tax return, you can consider filing an amended tax return. The amended tax return will allow you to claim the homebuyer credit on your 2008 return without waiting until next year to claim it on the 2009 return.

• Claim the credit in 2009 rather than 2008. For some taxpayers, it may make more financial sense to wait and claim the homebuyer credit next year when you file your 2009 tax return rather than claiming it now on the 2008 tax return. This could include people who have less income in 2009 than 2008 because of factors such as a job loss or drop in investment income.

For more information on the new tax credit, see the IRS website.

Though still down considerably from 2008, Denver’s real estate market is picking up. February’s median price for a single family home is up 5.8% from January to $192,000, after the usual seasonal downturn in January. The average price of a single family home is $218,000, up 6% from January. For condos the news isn’t quite as bright. Sales were off 9.5% from January and the average price in February was down 7% to $138,2239, while median price rose 4.2% to $117,725.

Gary Bauer, independent real estate expert in Denver with the Genesis group, is optimistic for the rest of 2009, predicting a good spring market. Though many parts of the rest of the nation is looking at severe real estate price drops, since Denver’s market didn’t go through the highly inflated price bubble experienced elsewhere, Denver is one of the few places in the country where real estate is remarkably stable, particularly when looking at year over year data.

View Channel 9 interview with real estate expert, Gary Bauer .

The recently released Case Shiller Housing Index shows a year over year average price drop of 18.5% nationally. But of the 20 metropolitan areas measured, Denver showed the smallest decline, 4.0%, from 2007 to 2008.

The OFHEO (Federal Housing Finance Agency) report for 2008 shows that Denver's values decreased by only -0.71%, 111th of 292 Metropolitan Statistical Areas (Denver-Aurora). In the fourth quarter of 2008 values actually increased by 0.77%.

Foreclosure filings dropped by 2% in 2008 according to the Colorado Division of Housing. Completed foreclosures dropped 16% from 2007.

Denver's drop in values began in 2001, unlike most U.S. cities where the drop didn't begin until 2003, and then only in cities showing the greatest increase in prices during the early 2000s. Denver's increases took place in the 1990s and prices did not drop steeply from 2001 to late 2008.

More houses went under contract in February than in January by 9.2%, following a trend beginning in December. The mix of single family residences sold under $200,000 in February was 52.4% and over $200,000 was 47.5%. For condos the split was stark, indicating falling prices. Only 18.2% of sold condos were over $200,000 while 81.8% were under $200,000.

For buyers, the time is exceptionally opportune, especially given recent interest rate drops. And for first-time home buyers (buyers who haven’t owned a home for the last three years) an $8,000 federal tax credit should help sweeten the pot. You’ll have to buy before the end of the year though.

Single family homes priced well, in good condition, in good locations were staying on the market fewer days than the average of 107, and were selling in 30 days or less for 99.01% of list price. Homes staying on the market over 90 days sold at 94.87% of list price. If you're a seller you'll want to price your home well and make sure it's in good condition, attractively staged. If you're a buyer and you want to buy a move-in ready home in a good location, be prepared to pay close to list price. My experience over the last month to month and a half shows that premium homes are selling, many with more than one offer, and some even at above list price. Denver’s real estate market isn't uniformly declining, contrary to what you may hear on the news or read on the internet or in the newspaper.

According to the Denver Economic Development Council, the outlook for Denver's economy in 2009 is better than average. Denver's unemployment rate at the end of February was 6.6, considerably better than the national unemployment rate of 8.1%.

The jobs outlook is better, too, for the Denver Metro area. According to the most recent Manpower Employment Outlook Survey for the area issued on March 10th, 10% of employers expect to hire more employees, 13% expect to reduce their work force, 73% hope to maintain their current work force, and 4% are uncertain. Sectors hoping to hire include Information, Financial Activities, Professional and Business Services, and Leisure and Hospitality services. Sectors expecting job losses are manufacturing, leisure-hospitality, and government. Sectors where employers plan to reduce jobs are Construction, Durable Goods Manufacturing, Nondurable Goods Manufacturing, Transportation & Utilities and Education & Health Services. However, the recent American Recovery and Reinvestment Act will add jobs to Colorado’s Construction sector. 59,000 new jobs are expected in Colorado due to the measure.

The Denver metro area's cost of living makes it an easy choice over higher cost areas like both coasts. According to CNN/Money.com it costs 51.1%% less to live in Denver than in San Jose; 43.8% less than in San Diego; 66.6% less than in San Francisco; and 12.9% less than Seattle. If you live in the east, it will cost 37.6% less than in Washington, D.C.; 32.8% less than in Boston; 101.9% less than in New York; 22% less than in Philadelphia.

For buyers coming from the south and the midwest, metro Denver could cost more. It costs 4.9% more in Denver than in Atlanta; 12.8% more than in Houston; 8% more than in Dallas; 8.3% more than in Dayton, Ohio; 5.2% more than in Rochester, MN, and 10% more than in Boise. But living in Denver still costs 10.7% less than in Chicago, 15.1% percent less than in Portland, and a whopping 49.3% less than in Los Angeles.

You'll need to do your due diligence to compare cost of living between your city and Denver at websites like Sperling's Best Places, Bank Rate or CNN/Money.

Having an Exclusive Buyers Agent to find the best buys will shore up your buying ability by representing your best interests - finding the best home at the lowest possible price, and saving you time and hassles. See client references. Phone numbers available upon request. Call Judith Clausen now at 303-587-3509 to help you find your next house.
 

Asbestos Moving out of Colorado Homes
    
Purchasing a home can be filled with excitement and anticipation for homeowners. Regarded as one of the great American traditions, it can also be a time where additional responsibilities are acquired. There are many locations throughout the state of Colorado in which citizens have been exposed to asbestos. Asbestos is found in the ground as a naturally-occurring mineral and pollutant. Left behind by many industrial plants and military bases which are now abandoned, there are still dangers present which pose risks to citizens throughout the state.

Potential Denver, Colorado home buyers or those remodeling homes should be aware that homes built before 1980 may still harbor asbestos materials. This is not to make you alarmed because asbestos exposure is easily prevented by taking simple precautions. Typically found in attic insulation, piping, popcorn ceilings, roof shingles and flooring, many green, healthy options insulation options exist that make the use of asbestos obsolete.

Asbestos fibers are thin and strong, and when inhaled frequently, an individual can develop mesothelioma, a rare but severe lung ailment caused by asbestos exposure. Several mesothelioma treatments are available; however, patient prognosis is usually poor. There are a number of factors that can impact how a person reacts to the disease and how their life span and mesothelioma life expectancy will be affected. These factors include latency period, age of diagnosis and cigarette smoking.

If any asbestos is suspected in the home, the best thing to do is leave it un-disturbed until a home inspector can determine the best course of action. Disturbing asbestos in good condition may cause its fibers to be released into the air. It is important to meet with health or environmental professionals to properly examine your new property. Sometimes, the best action is no action. However, if removal is necessary, it must be performed by a licensed abatement contractor who is trained in handling hazardous substances. Organizations such as the Colorado Department of Public Health and Environment, assists businesses and schools to comply with laws regulating asbestos containing materials.

In Colorado, construction practices are upgrading methods to suit better lighting, heating, cooling systems and environmentally habitable insulation. Green options such as cotton fiber, cellulose and lcynene should be given consideration as replacements to asbestos. Not only will eco-friendly materials provide a healthy atmosphere, it can significantly reduce energy costs.

Current statistics demonstrates that the use of recycled building materials such as cotton fiber insulation can reduce energy use in the home by 25 percent. Alternatives to asbestos allow for you and your family to live in a healthy and safe home, free of health corroding materials.

Denver's housing market is beginning to reflect the deepening economic crisis, but with some bright spots that show continuing buyer activity and potential for 2009.

According to recently released housing reports Denver's market is stronger than elsewhere.  The Case Shiller Housing Index shows a year over year average price drop of 18.5% nationally.  Of the 20 metropolitan areas measured, Denver showed the smallest decline, 4.0%, from 2007 to 2008.

The new OFHEO (Federal Housing Finance Agency) report for 2008 shows that Denver's values decreased by only -0.71%, 111th of 292 Metropolitan Statistical Areas. In the fourth quarter of 2008 values actually increased by 0.77%.

Foreclosure filings dropped by 2% in 2008 according to the Colorado Division of Housing. Completed foreclosures dropped 16% from 2007.

Denver's drop in values began in 2001, unlike most U.S. cities where the drop didn't begin until 2003, and then only in cities showing the greatest increase in prices during the early 2000s. Denver's increases took place in the 1990s and prices did not drop steeply from 2001 to date.

More houses went under contract in January than in December by 16.59%, following a trend beginning in December. But average prices for all residential housing dropped significantly by 5.29% from December. The mix of single family residences sold under $200,000 in January was 56.19% and over $200,000 was 43.81% compared to December where the mix was evenly split. For condos the split was greater. Only 20.9% of sold condos were over $200,000 while 79.1% were under $200,000.

For buyers, the time is still opportune, especially given recent interest rate drops. Interest rates reached 4.875% on February 25th for a $300,000 loan from our preferred lender, Rate One, The Mortgage People. FHA rates were at 5.000% for a $140,000 loan and 5.000% for a $300,000 loan. Credit is still tight, but loans are still possible for buyers with good credit and a 10-20% down payment.

Single family homes priced well, in good condition, in good locations were staying on the market fewer than the average of 99, and were selling in 30 days or less for 98.73% of list price. Homes staying on the market over 90 days sold at 94.46% of list price. If you’re a seller you’ll want to price your home well and make sure it’s in good condition, attractively staged. If you’re a buyer and you want to buy a move-in ready home in a good location, be prepared to pay close to list price. My experience over the last month to month and a half shows that premium homes are selling, many with more than one offer, and some even at above list price. Denver’s real estate market isn’t uniformly declining, contrary to what you may hear on the news or read on the internet or in the newspaper.

According to the Denver Economic Development Council, the outlook for Denver’s economy in 2009 is better than average. Denver’s unemployment rate at the end of 2008 (the latest figures available) was 6.1, considerably better than the national unemployment rate of 7.6%. Jobs outlook is better, too, for the Denver Metro area. According to the Manpower Employment Outlook Survey for the area issued on February 6th, 15% of employers expect to hire more employees, 12% expect to reduce their work force, 70% hope to maintain their current work force, and 3% are uncertain. Sectors hoping to hire include construction, transportation and utilities, information, financial activities, education and health services, and other services. Sectors expecting job losses are manufacturing, leisure-hospitality, and government.

Of course, all this could change given the volatility in the economy, but for now the Denver metro area is plugging along and likely won’t be as hard hit as other metro areas in the country, partly due to Denver’s recession beginning in 2001 which tended to stop the real estate bubble earlier than other metro area. Prices have held relatively steady through the end of 2007, and only in the last two months have prices dropped significantly, which is good news for buyers.

The Pew Research Center cites Denver as THE top place to live! Just what I've always thought. And the recently-released Case Shiller Report shows a loss of value much less than in other cities, just 1.1% less in November than in October 2008 (the report lags by two months), and 4.3% lower than in November 2007.

A question asked by many of my buyers is "If I buy now, what about declining values? Will my home be worth less when it comes time to sell it?" The answer varies depending on how long you stay in your new home.

On average buyers stay in their homes about 5 years before selling according to independent real estate broker, Gary Bauer. (Bauer issues a monthly market report used by the Denver dailies and is widely regarded in Denver real estate circles as a market expert.) In an April 2008 report in the Rocky Mountain News by Rob Reuteman, Bauer is quoted on the issue. He says, "If I bought my home a year ago for $200,000, and I had to sell for $180,000, I'd be upset. If I'm staying in the Denver market I take $180,000 and buy a house that would have cost me $200,000 a year ago. But I'd still have a little feeling that I really didn't do so well. If I were that individual five years ago, my average appreciation would be 39 percent. Would I be concerned about a 10 percent drop in price today? I don't think so. I would have bought it for $130,000 and sold it for $180,000."

Denver's cost of living makes it an easy choice over higher cost areas like both coasts. According to CNN/Money.com it costs 51.1%% less to live in Denver than in San Jose; 43.8% less than in San Diego; 66.6% less than in San Francisco; and 12.9% less than Seattle. If you live in the east, it will cost 37.6% less than in Washington, D.C.; 32.8% less than in Boston; 101.9% less than in New York; 22% less than in Philadelphia.

For buyers coming from the south and the midwest, Denver could cost more. It costs 4.9% more in Denver than in Atlanta; 12.8% more than in Houston; 8% more than in Dallas; 8.3% more than in Dayton, Ohio; 5.2% more than in Rochester, MN, and 10% more than in Boise. But living in Denver still costs 10.7% less than in Chicago, 15.1% percent less than in Portland, and a whopping 49.3% less than in Los Angeles.

You'll need to do your due diligence to compare cost of living between your city and Denver at websites like Sperling's Best Places, Bank Rate or CNN/Money.

Having an Exclusive Buyers Agent to find the best buys will shore up your buying ability by representing your best interests - finding the best home at the lowest possible price, and saving you time and hassles. See client references. Phone numbers available upon request. Call Judith Clausen now at 303-587-3509 to help you find your next house.

If you're thinking about buying in an older neighborhood you may want to know that a sewer line inspection should be part of your high priority inspection items. It won't cost much--compared to what it could cost to repair a broken or damaged sewer line. Count on about $200. An article in the January 6, 2009, Denver Post describes the cost of a surprise visit from the city's inspector, Wastewater Management, which can run into thousands.

If you need a referral to a trustworthy sewer line inspection company, let me know. Could be an inspection will reveal a clean pipe, you never know. But wouldn't you rather know about a sewer line break before you negotiate inspection repairs with the seller rather than after? You know, a penny saved...

Buyers are in the catbird seat again this month, that is, if they can get a mortgage. Prices take a slide but credit is still tight even though rates are the best they've been in awhile.

Figures for the Denver real estate market for November 2008 show steep declines in prices, in number of homes sold versus last month and last year at this time, and number of homes currently on the market. Area economic experts predict that prices will continue to fall, possibly into 2010. But metro Denver is still in a better position economically than most.

Average single family home prices dropped the most, a whopping 18.55% from November 2007. Condos and townhomes fared better, experiencing only a 2.37% drop in average price from this time last year. The single family median sold price dropped below $200,000 to $195,000 for the first time since the 1990s. The average price was $242,557.

The average price for condos or townhomes was $161,615 compared to $165,533 in November 2007, while the median price was $130,000 compared to $139,000 in November last year, a drop of 6.48%.

The total number of homes sold in November 2008 as compared to November 2007 dropped 16.14%. But the biggest drop came when comparing the drop from October to November 2007, indicating a seasonal slide, to the drop from October to November 2008. The drop in 2007 was 9.51% while in 2008 it was 31.81%! Denver, like other major cities, has taken a hit in light of the general economic picture, particularly tightening credit.

But overall the year to date home sales number through November is trending only slightly under 2007 (4.22%), a good sign for the future, especially considering the local economy which is showing a slowdown in job hires rather than the steep drops seen elsewhere. And home foreclosures, which have been a drag on the Denver real estate market for the last few years, dropped 2% for the first ten months of this year compared to the same period last year. New building continues to slow down. In 2008 only half the number of homes were built than in 2007, reflecting the general economic slowdown.

But there are some sweet spots for sellers too. As I've said before, good homes in good shape in good neighborhoods sell quickly, even in this slow market. And if you're looking for a good deal on a foreclosure - either pre- (short sale) or post (bank owned), you may be competing with several other offers forcing you to pay above asking price if you really want the home. For either resale or distressed sale homes, the basic rules of economics still apply. Good houses in great shape in desirable locations command the attention of multiple buyers in good times and bad. What's in short supply these days is the total number of buyers. But take note that some may be looking at the very same house you want.

A question asked by many of my buyers is "If I buy now, what about declining values? Will my home be worth less when it comes time to sell it?" The answer varies depending on how long you stay in your new home.

On average buyers stay in their homes about 5 years before selling according to independent real estate broker, Gary Bauer. (Bauer issues a monthly market report used by the Denver dailies and is widely regarded in Denver real estate circles as a market expert.) In an April 2008 report in the Rocky Mountain News by Rob Reuteman, Bauer is quoted on the issue. He says, "If I bought my home a year ago for $200,000, and I had to sell for $180,000, I'd be upset. If I'm staying in the Denver market I take $180,000 and buy a house that would have cost me $200,000 a year ago. But I'd still have a little feeling that I really didn't do so well. If I were that individual five years ago, my average appreciation would be 39 percent. Would I be concerned about a 10 percent drop in price today? I don't think so. I would have bought it for $130,000 and sold it for $180,000."

The Denver Post has a very useful interactive map of home values across the metro area. You can look at values by neighborhood, discover whether values are rising or declining and much more. (The map hasn't been updated to include the third quarter 2008.)

Interest rates have dropped significantly in the last few days. Conventional loans were an astonishing 4.5% for a loan value of $300,000, and 4.625% for a loan value of $140,000; FHA loans of $140,000 were 5.000% and $300,000 were 5.000% for well-qualified buyers as of December 17, 2008, from our preferred lender, Rate One, The Mortgage People. Homes are much more affordable. Denver's economy is steadier than the rest of the nation, and while unemployment has risen to 5.7%, jobs are still expected to increase this year.

Denver's cost of living makes it an easy choice over higher cost areas like both coasts. According to CNN/Money.com it costs 51.1%% less to live in Denver than in San Jose; 43.8% less than in San Diego; 66.6% less than in San Francisco; and 12.9% less than Seattle. If you live in the east, it will cost 37.6% less than in Washington, D.C.; 32.8% less than in Boston; 101.9% less than in New York; 22% less than in Philadelphia.

For buyers coming from the south and the midwest, Denver could cost more. It costs 4.9% more in Denver than in Atlanta; 12.8% more than in Houston; 8% more than in Dallas; 8.3% more than in Dayton, Ohio; 5.2% more than in Rochester, MN, and 10% more than in Boise. But living in Denver still costs 10.7% less than in Chicago, 15.1% percent less than in Portland, and a whopping 49.3% less than in Los Angeles.

You'll need to do your due diligence to compare cost of living between your city and Denver at websites like Sperling's Best Places, Bank Rate or CNN/Money.

Having an Exclusive Buyers Agent to find the best buys will shore up your buying ability by representing your best interests - finding the best home at the lowest possible price, and saving you time and hassles. See client references. Phone numbers available upon request. Call Judith Clausen now at 303-587-3509 to help you find your next house.

Judith Clausen, Exclusive Buyer's Agent

Buyers continue to snap up Denver homes at bargain prices. 4,282 homes (both single family and condo/townhome) were sold in October compared with 4,265 in September, 4,542 in August, and 5,123 in July. Median prices for October were $206,000 for single family homes, a drop of $10,000 from September, and $130,300 for condos/townhomes a drop of $9,000 from September.

Home prices were 12.2% lower in October 2008 than in October 2007, which in turn was 2.67% lower than October 2006. The average price for single family homes and condo/townhomes combined was $232,284 compared to $265,232 in October of 2007.

Housing inventory continues to slide as sellers keep homes off the market. Prices of current listings continue to fall because buyers are in short supply. The recent global financial crisis and credit crunch has affected what looked to be a stable market in September, the first hopeful sign of a housing recovery in the Denver metro area. The area's real estate market is now expected to bottom out sometime in the future, perhaps as far out as a year or 18 months from now.

That leaves an incredible opportunity for buyers looking for Denver homes. Interest rates have steadily fallen, making more homes affordable. The only glitch is that buyers may have to come up with more cash down and have excellent credit in order to qualify for financing.

Denver is in a much better position than many U. S. cities. The S & P/Case-Shiller report for August 2008 (published October 28th) showed a very slight decrease in home prices from July, the first decrease in five months. In July Denver was one of only two cities out of 20 measured nationally that showed any increase. Only Minneapolis showed a greater increase (1.8%).

But the continuing loss in value from last year is striking. After the economic meltdown earlier this year local economists are predicting a continuing slide in prices for at least another year.

On the whole Denver's economy is showing a slow-down, but is still in better shape than many other U. S. cities. Job growth is stable, and unemployment through September was 5.4%, less than the U. S. rate of 6.1%. Governor Bill Ritter predicts that unemployment will slowly drop through 2009, and believes the Denver economy is relatively strong. A report issued by the Governor's office on September 19th shows that "Colorado's economy…is more resilient and perhaps better poised to rebound from the current national financial turmoil than the national economy," noting that "Colorado has lower unemployment, greater job growth and lower inflation than the nation overall."

Another interesting fact indicating the strength of Denver's economy is that its credit rating was recently upgraded to AAA from Standard & Poor's Rating Service, citing its "role as the economic center for the Colorado Front Range — with a diverse economy and reliant per-capita property values" (Denver Post, 9/9/08). And Wells Fargo, one of Colorado's largest lenders has just upgraded their ratings for Denver housing from "distressed" to "stable." In an article in Denver's Rocky Mountain News (9/16/08) Thomas Thibodeau, academic director for the CU Real Estate Center in Boulder was quoted as saying that "The housing market here is vastly different than the rest of the U.S. I think the Denver housing market has turned the corner and is on the way to recovery."

Two large renewable energy projects are slated for the metro area. Rentech recently opened a demonstration plant in Commerce City to produce synthetic jet and diesel fuel. And Vesta Wind Systems announced plans to build a wind turbine blade manufacturing plant in Brighton. The two projects combined could bring as many as 1,800 new jobs to the Brighton/Commerce City area. Colorado is becoming internationally known as a center for renewable energy and aerospace development activity. "Metro Denver's dynamic and innovative industry base continues to support the region's economy through challenging times," stated Tom Clark, executive vice president of the Metro Denver Economic Development Corporation.

A question asked by many of my buyers is "If I buy now, what about declining values? Will my home be worth less when it comes time to sell it?" The answer varies depending on how long you stay in your new home.

On average buyers stay in their homes about 5 years before selling according to independent real estate broker, Gary Bauer. (Bauer issues a monthly market report used by the Denver dailies and is widely regarded in Denver real estate circles as a market expert.) In an April 2008 report in the Rocky Mountain News by Rob Reuteman, Bauer is quoted on the issue. He says, "If I bought my home a year ago for $200,000, and I had to sell for $180,000, I'd be upset. If I'm staying in the Denver market I take $180,000 and buy a house that would have cost me $200,000 a year ago. But I'd still have a little feeling that I really didn't do so well. If I were that individual five years ago, my average appreciation would be 39 percent. Would I be concerned about a 10 percent drop in price today? I don't think so. I would have bought it for $130,000 and sold it for $180,000."

The Denver Post has updated their very useful interactive map of home values across the metro area. You can look at values by neighborhood, discover whether values are rising or declining and much more.

Interest rates are still low (conventional loans were at 6.125% for well-qualified buyers as of November 10, 2008 from our preferred lender, Rate One, The Mortgage People). Homes are more affordable. Denver's economy is steady and jobs are expected to increase this year.

Denver's cost of living makes it an easy choice over higher cost areas like both coasts. According to CNN/Money.com it costs 51.1%% less to live in Denver than in San Jose; 43.8% less than in San Diego; 66.6% less than in San Francisco; and 12.9% less than Seattle. If you live in the east, it will cost 37.6% less than in Washington, D.C.; 32.8% less than in Boston; 101.9% less than in New York; 22% less than in Philadelphia.

For buyers coming from the south and the midwest, Denver could cost more. It costs 4.9% more in Denver than in Atlanta; 12.8% more than in Houston; 8% more than in Dallas; 8.3% more than in Dayton, Ohio; 5.2% more than in Rochester, MN, and 10% more than in Boise. But living in Denver still costs 10.7% less than in Chicago, 15.1% percent less than in Portland, and a whopping 49.3% less than in Los Angeles.

You'll need to do your due diligence to compare cost of living between your city and Denver at websites like Sperling's Best Places, Bank Rate or CNN/Money.

Having an Exclusive Buyers Agent to find the best buys will shore up your buying ability by representing your best interests - finding the best home at the lowest possible price, and saving you time and hassles. See client references. Phone numbers available upon request. Call Judith Clausen now at 303-587-3509 to help you find your next house.


Approximate Location Boundaries: Denver Metro Area

Location Characteristics: Denver's an exciting place to live. Winter, summer, spring or fall -- there's always something special to do in the Denver area. Cultural amenities include the Denver Center for the Performing Arts which houses the Colorado Ballet, the Denver Symphony, and the Denver Center Theater. Art galleries, the Denver Museum of Science and Nature, over 90 golf courses, sophisticated shopping centers, the Denver Zoo -- the list goes on and on. Denver is a large urban area close at hand to some of the most beautiful country in the U.S. Ski areas are just hours away. Fly fishing, hiking, mountain climbing and much more offer spring, summer and fall recreation in the nearby Rocky Mountains. Quality of life in the Denver area is its biggest draw.

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About Judith Clausen, Broker/Owner:
I represent Buyers only. My hallmark in assisting buyers is to provide timely, energetic and honest service. Check out my website at www.Buyers-Advantage.net for client feedback. When asked to fill out a Customer Satisfaction Survey one recent client, "I'll give you all tens because you're worth it!!"

If you're planning to buy in the next six months go to my website (www.Buyers-Advantage.net) and click on Home Search to look for homes in the Denver area. You can save your searches, and return as often as you want. And I'm always available to answer any of your real estate questions. Just email me at Judith@Buyers-Advantage.net or call direct at 303-587-3509.

With the nation's financial markets in turmoil people want to know if it's a good idea, or even a doable idea, to buy a house. Paraphrasing Richard Nixon in 1970, "Frankly, if I had any money, I'd be buying a house right now." If you have good credit and a good source of financing, buying a house in Denver right now is a solid choice. The market is either at bottom, or just slightly on the rise.

Two large renewable energy projects are slated for the metro area. Rentech recently opened a demonstration plant in Commerce City to produce synthetic jet and diesel fuel. And Vesta Wind Systems announced plans to build a wind turbine blade manufacturing plant in Brighton. The two projects combined could bring as many as 1,800 new jobs to the Brighton/Commerce City area. Colorado is becoming internationally known as a center for renewable energy and aerospace development activity. "Metro Denver's dynamic and innovative industry base continues to support the region's economy through challenging times," stated Tom Clark, executive vice president of the Metro Denver Economic Development Corporation.

Denver’s real estate market just got better for buyers. We thought that June prices had bottomed out, but in July median prices dropped even lower. The drop for residential single-home properties was 3.48% from June to July, but was even steeper from July 2007, a startling 10.1%. 

For the first time since August 2007, average days on market dropped to 94 in June, three days fewer than May and 17 days fewer than January and February. Housing inventory dropped by 8.7% from May, and average prices increased from May by 4.32% to $267,005. Prices still are down by 12.19% from last year this time . But decreasing days on market, decreasing inventory, and rising prices in June indicate buyers' growing interest in purchasing as prices bottomed out in May.

Foreclosures were down in the second quarter from the first quarter of 2008 by 7.5%, though still higher than last year this time by 15.6%.

June median prices for single family homes rose slightly by 1.5% over May to $230,000. Condo median prices rose by 2.3% to

$148,345. Year over year median prices dipped by 12.5% for single family homes, and by 6.1% for condos.

Denver's economy is still outpacing the nation, with job growth predicted at 1.5% for the remainder of 2008 compared to the national average of from .5% to 1%. It's still a good time to buy Denver real estate.

A question asked by many of my buyers is "If I buy now, what about declining values? Will my home be worth less when it comes time to sell it?" The answer varies depending on how long you stay in your new home.
 
On average buyers stay in their homes about 5 years before selling according to independent real estate broker, Gary Bauer (Bauer issues a monthly market report used by the Denver dailies) is widely regarded in Denver real estate circles as a market expert. In a report in the Rocky Mountain News by Rob Reuteman (4/19/08), Bauer is quoted on the issue. He says, "If I bought my home a year ago for $200,000, and I had to sell for $180,000, I'd be upset. If I'm staying in the Denver market I take $180,000 and buy a house that would have cost me $200,000 a year ago. But I'd still have a little feeling that I really didn't do so well. If I were that individual five years ago, my average appreciation would be 39 percent. Would I be concerned about a 10 percent drop in price today? I don't think so. I would have bought it for $130,000 and sold it for $180,000."

The Denver Post has a very useful interactive map of home values across the metro area. You'll be able to look at values by neighborhood, discover whether values are rising or declining and much more.

Interest rates are still low (conventional loans were at 6.500% for well-qualified buyers as of July 8, 2008 from our preferred lender, Rate One, The Mortgage People). Homes are more affordable.

The Denver market is not in the same situation as many cities. We're still riding out the effects of the mortgage crisis which led to so many foreclosures, but values haven't dropped nearly as much as the rest of the country.

Many parts of the country have suffered a double whammy with the real estate bubble bursting together with the number of foreclosures rising which put a downward push on prices. Denver's bubble burst in 2001, but values remained steady until 2007 when they began to drop. 2006 values increased an average of 2.7%, while values at the end of 2007 had dropped by 2%, a difference of 4.7%.

Denver's cost of living makes it an easy choice over higher cost areas like both coasts. According to CNNMoney.com it costs 51.1%% less to live in Denver than in San Jose; 43.8% less than in San Diego; 66.6% less than in San Francisco; and 12.9% less than Seattle. If you live in the east, it will cost 37.6% less than in Washington, D.C.; 32.8% less than in Boston; 101.9% less than in New York; 22% less than in Philadelphia.

For buyers coming from the south and the midwest, Denver could cost more. It costs 4.9% more in Denver than in Atlanta; 12.8% more than in Houston; 8% more than in Dallas; 8.3% more than in Dayton, Ohio; 5.2% more than in Rochester, MN, and 10% more than in Boise. But living in Denver still costs 10.7% less than in Chicago, 15.1% percent less than in Portland, and a whopping 49.3% less than in Los Angeles.

You'll need to do your due diligence to compare cost of living between your city and Denver at websites like Sperling's Best Places, BankRate's moving calculator,  or CNNMoney's Cost of Living calculator.

Having an Exclusive Buyers Agent to find the best buys will shore up your buying ability by representing your best interests - finding the best home at the lowest possible price, and saving you time and hassles. See client references at the Buyers Advantage website. Phone numbers available upon request. Call Judith Clausen now at 303-587-3509 to help you find your next house.