Denver, Colorado
Buying a home using a Denver buyer's agent, Denver real estate market conditions, relocation news, mortgage advice, general real estate commentary
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2007
Dec. 29, 2007
I just spent several hours trying to make sense of all the instructions on how to make an InmanWiki for myself. Whew! But it's up now. Take a look (click on the image above)! And if you have any ideas or suggestions, let me know.
Dec. 27, 2007
 The Case-Shiller Price Index, the 20-city composite index of real estate sales of the same house over time, reported a 1.8% price decline from October 2006 to October 2007 for Denver. Most local real estate experts fault the high number of foreclosures as one major cause of the decline, but because of the foreclosures prices in general have been dropping.
The drop from September 2007 to October 2007 was 1.7%. But in the higher price ranges above $322,018 the drop wasn’t as severe, only .7%. In the lower tier of prices under $217,146 the drop is 7.3% which reflects the most common foreclosure price range in Colorado. In the middle tier of prices from $217,146 to $322,018, the drop was 1.2%.
Higher priced homes in the Denver real estate market have stayed steady since June 2007. Middle priced homes rose in July and August of 2007, but then started to decline in September and October. Lower priced homes showed a price incline steadily through the spring and early summer months, but began a precipitous decline in August culminating with the steep decline in October.
Denver’s market remains good for buyers, especially with interest rates staying steady and even declining in the last month. Higher priced homes haven’t increased in price and remain a good buy.
For more information contact me at 303-587-3509 or email Judith@Buyers-Advantage.net.
Dec. 18, 2007
 If you’re thinking of buying a house that needs some remodeling, the top two projects that will recoup at least 75% of your outlay are an attic bedroom remodel (78.9%) and the addition of a wood deck (78.2%). A major upscale kitchen remodel on average will cost you $106,434 and you’ll recoup 69.6% of the cost when you sell. A basement remodel costs $56,476 and will yield $41,656 at sale, a 73.8% recovery.
Recovering remodeling costs isn’t the primary reason homeowners take on a remodeling project. But it’s a factor to be considered in today’s market. If you plan on staying in your home the cost can likely be recovered in a few years with Denver’s appreciation increasing every year from 1988 to 2005.[i] [2006 showed the first price drop in nearly 20 years, but 2007 is expected to show rising values, though slight.] If you’re planning to fix up your house and move within the next year then you probably don’t want to engage in a costly remodeling project. The best projects for resale are remodeling your kitchen or bathrooms, and adding a bathroom as long as it doesn’t reduce the number of bedrooms. In other words, you don’t want to convert a small bedroom into a bathroom. No matter how small the bedroom it’s still a bedroom, and buyers want bedrooms, at least three.
But for those who do want to remodel, which projects will be worthwhile to take on? According to the National Association of REALTORS® annual Profile of Buyers Home Feature Preferences 2007 the addition of whole house air conditioning is a top priority. If the house doesn’t have it, buyers want it. The cost runs about $2,000 to $4,000, depending on the size of the house. If the house doesn’t already have a forced air heating system, the cost to put in ductwork can be prohibitive. In Denver’s climate an acceptable alternative is evaporative cooling (“swamp” cooler).
A minor midrange kitchen remodel will cost $20,512. For a 200 sq. ft. dated kitchen, you’ll be able to reface your cabinets and drawers (30 linear ft.) with new raised wood doors and drawer fronts, replace old hardware, replace laminate countertops and vinyl floors, replace a wall oven and cooktop with energy efficient models, and install a new moderately priced sink and faucet. You’ll be able to paint the trim and add wall covering, which all should make for a modest improvement and a better kitchen.
An in-between midrange major kitchen remodel would give you semi-custom wood cabinets, a 3 by 5 island, laminate countertops, a standard double stainless steel sink with a standard single-lever faucet, an energy efficient wall oven, cooktop, ventilation system, built in microwave, dishwasher, garbage disposal and custom lighting. You’ll get new vinyl flooring and a new paint job, including trim. It will run you $52,816 and you’ll recoup 70.2% when you sell within a year.
If you want to go all out, you can have an upscale major kitchen remodel for $106,434 which will includetop of the line cherry cabinetry with built-in sliding shelves, stone countertops with glass tile backsplash, a built in refrigerator and cooktop and a 36” commercial grade range with a vent above and a built in warming drawer. A trash compactor, built in microwave/convection oven combo, a high end undermount sink with designer faucets and a built in water filtration system are included. New lighting including general, task and under cabinet lighting will be a plus, and the new cork floor will make standing while cooking or cleaning up a dream. The cost will be $106,434 and you’ll be able to recoup 69.6% of the cost if you have to sell within a year.
Other projects have varying rates of cost recovery.[ii] The chart below shows projects many Buyers Advantage clients have expressed interest in. The highest value project across the country for the last few years is a minor kitchen remodel – best for resale and best for comfortable living.
|
Project - All Midrange
|
Cost
|
Cost Recovered
|
|
Basement Remodel
|
$56,476
|
73.8%
|
|
Bathroom Addition
|
35,409
|
56.6%
|
|
Bathroom Remodel
|
15,171
|
67.8%
|
|
Roof Replacement
|
14,238
|
55.1%
|
|
Window Replacement (vinyl)
|
9,669
|
72.4%
|
|
Window Replacement (wood)
|
10,578
|
75.9%
|
[i]THE REAL ESTATE CYCLE IN 2006: Evaluating Market Position, Identifying Turning Points and Constructing Scenarios Christopher L. Cagan, Ph.D., Director of Research and Analytics, First American Real Estate Solutions
[ii]All data from © 2007 Hanley Wood, LLC. Reproduced by permission. Complete city data from the Remodeling 2007 Cost vs. Value Report can be downloaded for free at www.costvsvalue.com
Dec. 6, 2007
 Denver real estate may have hit bottom, which means it's a really good time to buy. Interest rates have been dropping and so have prices. Buyers can virtually write their own ticket for seller concessions -- down payment help, closing cost contributions, buying down the interest rate, and even more creative assistance.
Buyers are getting houses at an average 3% discount, a figure which has stayed pretty steady over the last year. But the discount is much greater when considering the seller's original asking price. In both October and November sellers' original asking prices on average was 79-89% of what they got at closing. What that means is that sellers were having to discount their original asking price by 21 to 31% of what they originally thought they should realize. The year-to-date discount was an average of 10%. By the time sellers realized they had to lower prices their homes (and condos) had been on the market on average 100-103 days.
The median price for single family homes was $229,500, a drop of 4.38% from November 2006, while for condos was $139,000, a 10.8% drop from last November's $155,750. According to one local real estate expert, some homes are priced so high they'll never be sold in today's market, a discouraging thought for sellers. If you're a buyer and you run into one of these houses, don't be discouraged, there are plenty more out there to look at.
Nov. 7, 2007
Denver real estate prices fall in lower priced neighborhoods. High priced neighborhoods hold steady or gain.
Sep. 15, 2007
Try this
article and blog. If you're looking to buy, give me a
call. I don't list homes, only help buyers get the best
deals.
Sep. 7, 2007
 An article in today's Realty
Times makes it plain. Know what you're signing at
the closing table. No -- get that mortgage
broker/banker/lender to tell you in plain English what
"negative amortization" means and whether your loan has any.
And do it as soon as they tell you about the wondrous features of
the loan you're about to get saddled with. And always
remember, if it sounds too good to be true, it probably is.
Sep. 5, 2007
.jpg) If you're planning to buy a
home in Denver in the next 6 months you ought to be able to buy for
at least 97% off list price. If the house has just been listed it
will eventually sell, but on average at a price 93% less than the
original list price. It could take awhile for starry-eyed sellers
to realize their home may be priced too high. On the other hand,
good houses in good condition in good locations may even require an
offer of asking price or more. A good Buyer's Agent can help you
assess the many factors that go into arriving at a good offer
price.
Median prices for
detached single-family homes are up slightly from July by .98%.
(Median price is a better gauge of the market's strength than
average price which can be skewed by a few high priced sales.)
Average days on market has increased from 90 in July to 92 in
August, showing a slight seasonal shift. The highest days on market
was 125 in February, the lowest was 90 in July.
Condos fared worse,
dropping 3.48% in median price in August to $152,500 from $158,000
in July. The average price dropped even more by 5.26%. Days on
market improved to 102 in August from 112 in July. The highest
average days on market was in January with 131.
Percent of sale price
to list price dropped a percent in August to 97% from 98% in July
for detached single-family homes, and rose to 98% in August from
97% in July for condos. Neither shows much of a change. Overall
days on market for both condos and detached single-family homes was
94 for August compared to 120 in January and 125 in February.
Denver's unusually harsh winter took a toll both on how long it
took to sell and prices. Original list price for both condos and
single-family homes during January and February showed high hopes
by sellers, but a grimmer reality. Sellers were getting on average
87% of what they were asking in February. By August that figure had
improved to 93% of list price for both condos and detached
single-family homes.
A high number of short sales (where lenders take less than the
homeowner owes on the mortgage) and foreclosures have impacted the
lower priced neighborhoods. Home prices in higher priced
neighborhoods haven't been as negatively impacted. The Denver Post
cites the Stapleton neighborhood, a new urban retail/residential
area. Average prices in the Stapleton neighborhood are $449,000,
but in the last year only 2% of sales were short sales or
foreclosures. By contrast the Del Mar neighborhood in Aurora where
the average price is $117,000, 71% of all sales were short sales or
foreclosures. This once-attractive neighborhood now is laced with
run-down homes sitting empty either with a For Sale or For Rent
sign in the front yard.
What does it all mean? The Denver market isn't nearly as dismal
as the headlines would have you believe. Compared to the national
scene, Denver prices haven't shown as steep a drop, and in many
cases home values are appreciating significantly. In neighborhoods
where home prices on average are $250,000 or less, overall home
prices are dropping according to a September 4, 2007, article in
the Denver Post. But in higher priced neighborhoods prices are
steady or rising. Some neighborhoods have shown a healthy increase
over the last year. University Park, where the average price is
$718,777, has shown a 23.9% increase. Hilltop, another pricey
Denver neighborhood with an average price of $920,146 experienced a
24.4% increase, but homes in most Denver metro neighborhoods are
flat, either dropping slightly or appreciating slightly.
A single exception is Denver's Jefferson Park neighborhood with
an average price of $247,454. Jefferson Park is a mix of old and
new, an old neighborhood in the process of gentrification, with new
townhomes, new condos, just a few blocks from Invesco Field at Mile
High (to us oldtimers, it's still Mile High Stadium), LoDo,
Elitch's, the Pepsi Center, Coors Field, and other downtown
attractions. River Clay has one of the more interesting projects
going on in the private market in Denver. It's a green condo
building with a mix of affordable housing and luxury units. One of
my clients, returnng to Denver from the Pacific Northwest, bought
one of the nicest units for $543,600. When these condos are resold
(they're under construction now) the neighborhood's value will
increase. Other projects are scheduled for this newest of downtown
Denver's hottest neighborhoods.
Denver's cost of living makes it an easy choice over higher cost
areas like both coasts. It costs 40 percent less to live in Denver
than in San Jose; 34 per cent less than in San Diego; 43 per cent
less than in San Francisco; and 14 per cent less than Seattle. If
you live on the east coast, it will cost 15 per cent less than in
Baltimore; 28 per cent less than in Boston; 50 per cent less than
in New York; 14 percent less than in Miami
For buyers coming from the south and the midwest, Denver could
cost more. It costs 2 per cent more in Denver than in Atlanta; 14
per cent more than in Houston; 7 per cent more than in Dallas; 6
per cent more than in Dayton, Ohio; and 11 per cent more than in
Minneapolis. But living in Denver still costs 3 per cent less than
in Detroit; 20% less than in Philadelphia; 1.5 per cent less than
in Cleveland, and 1.5 per cent less than in Chicago.
You'll need to do your due diligence to compare cost of living
between your city and Denver at websites like
http://www.bestplaces.net,
http://www.bankrate.com/brm/movecalc.asp, or
http://cgi.money.cnn.com/tools/costofliving/costofliving.html.
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
http://www.buyers-advantage.net/happy-clients.html. Phone numbers
available upon request. Call Judith Clausen now at 303-587-3509 to
help you find your new home in Denver.
Aug. 20, 2007
Categorized in: Buying a home...
 An article in the Wall Street Journal points out a successful strategy for making a low offer in a stagnant market. During a hot market sellers were used to turning up their noses at lowball offers. But with the real estate slump affecting many parts of the country sellers should learn that a low offer isn't an insult. According to national real estate expert Danielle Kennedy, a low offer is "an expression of interest," and should start the ball rolling to a successful sale.
Making low offers is part of the stock in trade of Exclusive Buyer's Agents (EBAs). Not that it's a standard practice in every market. But we do want to make sure that our clients don't pay more than a property is worth. The secret is knowing market values and being able to demonstrate to a seller that the offer price is reasonable given sale prices of comparable properties in the neighborhood. EBAs have to give the seller strong justification for a low offer.
Denver's real estate market is uneven. Prices in some neighborhoods are stable, even appreciating, while in others are dropping slightly, and in still others are dropping drastically. This kind of a market suggests that buyers should be careful in who they choose to represent them. Buyer's Agents who don't work exclusively with buyers can be affected by their expertise in representing sellers, wanting to be fair to the seller, sometimes to the detriment of their buyer client. Exclusive Buyer's Agents don't have that kind of a mindset. Their mindset is on getting the best price for their buyer clients.
Aug. 14, 2007
 Denver’s market is beginning to show signs of recovery, but not in prices. The median price of a single family home dropped 3.1 percent from June to $255,000 and from $259,500 last July, a 1.8 percent drop. But fewer homes were on the market in July 2007 than in 2006 by 5.4 percent. July was the seventh consecutive month to show a drop in the number of homes left unsold.
5,951 homes were under contract in July, 7.5 percent higher than July 2006 when there were 5,538 under contract, showing growing demand. The number of homes sold and closed also increased, from 4,850 in July 2006 to 4,980.
The number of foreclosures has dropped overall, likely due to high numbers of homes being sold at auction. During the first weekend in August 300 homes were taken off the market from auction activity, reducing the number that had been flooding the market. It will still be some time before foreclosures are fully absorbed. Together with resale homes not under foreclosure, the total number is some 30,000 on the market, a far cry from the 9,000 inventory in 1999 at the height of Denver’s double-digit increases in sales prices. Of course, population increase has contributed to the increase in number of unsold homes on the market, but nowhere near the contribution by foreclosures.
Fewer buyers are looking for homes which impacts inventory and prices, and those who are looking want bargains. Buyers still have many choices of homes available to them, and don’t have to be in a hurry to buy. This week I showed homes in Aurora’s Hoffman Town to a couple relocating from California. This is a neighborhood changing rapidly with a disproportionate amount of “fix and flip” homes emptied by borrowers adversely affected by the sub-prime mortgage meltdown. Investors have stepped in and swooped up these low-priced homes close to the Denver metro area’s newest medical center complex at the former Fitzsimons Army base. Many are still available for sale, so many that I told my buyers if they weren’t quite ready yet to buy, they could be assured of a steady stream of these spacious remodeled homes so close to a major medical redevelopment.
In contrast to single family homes prices, condo sold prices (which include townhomes) rose to $192,885 from $186,328 in June, a 3.6 percent increase, but dropped slightly from last year’s July price of $194,705.
Average prices for single family homes in July 2007 dropped from $334,833 in June and $328,721 in July 2006 to $316,024.
Jul. 10, 2007
 It’s still a terrific buyer’s market in Denver, plenty of homes on the market to choose from. Prices are rising, but slowly. The median price for a single family home in May was $251,155. In June it had risen 4.72% to $263,000. Last year this time the median price was $261,750 for a 4.78% rise in 2007. The average for June was $304,055. A big factor in rising prices is the number of high-priced luxury homes selling for $1+ million. More sold in June than in May.
For condos the price rise was lower, 1.90% over May and a 1.23% drop from last year this time. The median price in June was $157,950, down from $159,900 in 2006. Luxury homes had little impact on the condo market.
Total inventory dropped from June 2006 by 5.2%. Experts speculate that sellers are keeping their homes off the market in order to lessen competition with foreclosures, thus creating a lower supply.
Average days on market for single family homes has dropped to 94 in June from a high of 125 in February. As has been true throughout Denver’s stagnant market, good homes in good locations in good conditions are being snapped up quickly, while overpriced homes and homes in need of routine maintenance are still languishing on the market. Days on market for condos is higher at 108 in June, showing the difficulty of selling condos in a buyer’s market.
Sellers were more realistic in June in terms of list price. Homes sold on average at 97% of list price at the time of sale and at 94% of original list price. Last month it was 97% of list price contrasted with 87% of original price. Maybe agents are more able now to convince sellers to list their homes closer to market value than they had been in past months.
Denver’s economy is predicted to be bright the last half of 2007 according to a mid-year report by the University of Colorado Leeds School of Business published July 5, 2007. Unemployment is low at 3.6% in May. The information and professional and business services sectors are as healthy as they’ve been in years. In December 2006 job growth was predicted to rise by 1.9% in 2007. While growth during the first half of the year is lower than expected spokesman Richard Wobbekind, a Leeds economist, expressed optimism for the last half of 2007, noting strength in the mining, health care, natural resources, and tourism sectors. A cloud over the economy continues to be the low number of new housing starts leading to a lessening number of jobs in the construction sector.
Jun. 5, 2007
|
Courtesy of Denver Metrolist (MLS) 6/5/07
|
Change vs
|
|
May-07
|
Prior Month
|
Year Ago
|
|
%
|
%
|
|
Single Family (Res + Cond)
|
|
Active
|
29,110
|
4.49
|
-4.42
|
|
Under Contract
|
6,353
|
2.92
|
-1.64
|
|
Sold
|
5,081
|
15.5
|
1.42
|
|
Avg DOM
|
102
|
-6.01
|
6.07
|
|
Avg Sold Price
|
$288,905
|
-1.4
|
0.55
|
|
Residential
|
|
Active
|
21,505
|
5.02
|
-2.56
|
|
Under Contract
|
5,045
|
3
|
-1.66
|
|
Sold
|
3,952
|
13.82
|
1.52
|
|
Avg DOM
|
98
|
-9.26
|
10.11
|
|
Avg Sold Price
|
$318,904
|
-1.12
|
1.16
|
|
Condominium
|
|
Active
|
7,605
|
3.03
|
-9.33
|
|
Under Contract
|
1,308
|
2.59
|
-1.58
|
|
Sold
|
1,129
|
21.79
|
1.07
|
|
Avg DOM
|
118
|
0.85
|
-4.07
|
|
Avg Sold Price
|
$183,896
|
0.74
|
-3.21
|
Following on the heels of the OFHEO report a week ago which showed lower values during the first quarter of 2007, average prices for single family residential homes decreased in May slightly (1.12%) from April, but increased slightly over May 2006 by 1.16%. Median prices for single family residential homes (a better indicator of real prices) increased in May by 1.27% over April.
Homes sold for an average of 97% of list price, but 87% of original list price, showing that sellers are having to lower prices to get their houses sold. For too long sellers were setting unrealistic prices, having been used to price rises a decade ago when prices were rising by double digits every month.
For condo/townhomes the increase in median prices was greater, 4.73% from $148,000 in April to $155,000 in May.
Overall the Denver real estate market is stable, showing little growth, but little decline. Numbers of homes for sale has increased from April, but decreased from May last year, showing a lessening of the housing glut.
More houses sold in May than in April by 13.82%, and were up slightly (1.52%) over May a year ago.
Days on market decreased to 98 from 108 in April, but were still higher than in 2006. Values for single family residential homes declined slightly by 1.12% from April, but rose 1.16% from May 2006.
Condominium/townhouse sales were up by 21.79%, a significant jump over April, but just a slight increase over May 2006. Days on market for May were unchanged from April, but down from May of last year. Average price was up just slightly over April, but down 3.21% from last year this time.
What may have an impact on the Denver real estate market is the threat of higher interest rates. Rates increased during May from 6.125% for an “A” borrower to 6.375% at the end of May, limiting buyer affordability. If interest rates rise significantly, as they did in the 1980s, then the pool of buyers will shrink and sellers will experience a longer time on market and a decrease in value. Peter G. Miller, in an article in Realty Times, worries that the increase in foreign ownership of American debt may one day reach a point where foreign investors will be much more cautious, lending at higher rates of return, meaning higher interest rates in the U. S. If that occurs (and it’s more or less likely depending on which economist you read!), then mortgage interest rates like the ones we had in the 1980s could shoot up.
May. 31, 2007
 The Denver metro area ranks 221st out of 285 in rate of appreciation for the first quarter of 2007 at .34%, according to the Office of Federal Housing Enterprise Oversight (OFHEO). The one-year rate is slightly better at 1.09%, and the five-year rate is a mediocre 14.78%. By comparison, the top rated MSA (Metropolitan Statistical Area according to the U. S. Census Bureau) is Wenatchee, Washington, with a first-quarter appreciation rate of 25.6%, a one-year appreciation rate of 5.96% and a five-year increase of 70.56.
The lowest MSA is Punta Gordon, Florida, with a net loss in the first quarter of 4.57%, a one-year loss of 2.81%, but in the last five years Punta Gorda showed a gain of an astonishing 94.81%.
The lowest 20 MSAs show first-quarter losses from 1.93% in the San Diego-Carlsbad-San Marcos, California area to the 4.57% loss in Punta Gorda. Among the lowest 20 MSAs, the range of appreciation for the last five years is Cape Coral-Fort Myers, Florida metro area with a 108.07% gain to an 8.55% gain in the Detroit-Livonia-Dearborn, Michigan metro area. Some areas, like Cape Coral-Fort Myers show the results of the so-called "real estate bubble" bursting in the last year to 18 months, while Detroit shows a slighter decline.
The upshot is that while Denver showed remarkable appreciation in the 90s, there is NO bubble-burst effect from those years with a precipitous loss in market value. Instead the market remains flat but steady. Good news for buyers.
If you want to find out what YOUR house is worth, check out OFHEO's calculator.
And if you'd like to be updated on Denver's market conditions, sign up for the Denver Real Estate Update at the Buyers Advantage website.
May. 16, 2007
Categorized in: Buying a home...
 When you first start thinking about buying a home -- whether you're moving up or buying your first home -- you'll be offered all kinds of advice from friends, family and co-workers. Their one purchase (maybe two or three) makes them an expert on home-buying. They'll recommend inspectors, lenders, insurance agents they've used.
But wait! They've only had one (okay, maybe two or three) experience. But any REALTOR® has had experience with hundreds, maybe thousands of transactions. That does make them an expert! And they've had a lot of experience with the professionals they recommend.
I've had ten years of experience working with home buyers to buy the home of their dreams. I've learned a thing or two about what it takes to get the job done. Here's what makes me different from your advisors.
I work hard for my clients to save them money. If I can negotiate $5.000 off the price of a home, that doesn't include the additional build-up of equity amortization for paying less for the original loan amount, and that's much more than the original $5,000.
Why would I do this when I'm paid by commission and a higher price would mean a higher commission for me? First, as an Exclusive Buyer's Agent I'm legally obligated to represent the best interests of my clients above any other interests, including my own! And -- the difference in commission for negotiating $5,000 off the price of the house is only $140! I want my clients to be satisfied. Their good will and word of mouth are good advertising, worth much more than whatever I save them. My goal is to save my clients as much money as possible when making what may be the biggest purchase of a lifetime.
I save clients liability and pitfalls they may not be able to avoid simply because they don't have the knowledge and experience to know what those issues might be.
I work with a virtual team. Markelle Harden in Arizona is my Online Transaction Coordinator. She uses Settlement Room to help clients through the final process of final loan approval, appraisal, home inspection, and a host of other details that must be attended to.
Lynn Payge Hoppe maintains my website from Texas. Ed Robisheaux in Virginia helps to maintain my position on the internet. Kathleen Allardyce helps with web search engine optimzation.
My team helps me keep my business on track so that I have more time to work with you when you're considering making the largest purchase of a lifetime. Your advisors, though well-meaning, have no financial stake in making sure your best interests are served. I do. Helping people make their dreams come true is my business.
So listen to the advisors, but let a REALTOR® put her or his expertise to work for you when you buy a home in Denver, Colorado.
May. 11, 2007
 It's that time of year again when people start freaking out about their lawns. Climate change and global warming don't seem to worry homeowners as much as having the best lawn on the block. Xeriscaping -- well, someday, maybe, but not this year. So out come the Scotts products, the fertilizer, the sprayers, the crabgrass patrol.
There's another way this year to help with the quest for the greenest lawn this side of the British Isles. Colorado State University Cooperative Extension has come out with a program that will put expert eyeballs on homeowners' lawns, CSU Lawncheck. A memer of the Cooperative Extension horticultural staff will come out to your home and do a diagnosis plus recommendations.
It's not available everywhere in Colorado. It will begin in the metro Denver counties of Arapahoe, Boulder, Denver, El Paso and Jefferson, and in Mesa, Delta, Montrose and Ouray counties on the Western Slope. Just call the Cooperative Extension office in your county and make a date with an expert. It does cost. But $75 (plus mileage) hardly seems like a lot of money to pay for a personal visit.
Check out the CSU Extension website, and be on your way to a blue-ribbon, or shall we say green-ribbon lawn.
May. 10, 2007
 Denver's Five Points, the once great jazz mecca of the West is undergoing a renaissance. Crossroads at Five Points, a multi-cultural entertainment venue which seeks to bring live theater, dance, music, live poetry, art, film, classes and lectures to the neighborhood will present its first theater production, "Bold Girls," (an Irish play) opening May 11th. Crossroad's mission is "to create a convergence of diverse cultures and art forms that promote learning and mutual understanding in the community." The once posh Hotel Rossonian which in its glory days hosted jazz greats like Duke Ellington, Ella Fitzgerald, Dinah Washington and Billie Holliday, is being renovated and plans to open as a live jazz club and "upscale restaurant" by summer of 2008 according to the Denver Post.
The Five Points neighborhood, still the heart of the African-American community, had been in decline and was considered a "scary" place to visit in recent decades. The renaissance began in earnest in 1994 when light rail came to the community. A station was  built at 30th and Downing, and lofts and condos soon followed. Before long homeowners were renovating their old Victorian homes, and prices began to rise attracting a new generation of gentrifiers.
Is it still scary to visit or live in Five Points? Not according to Elbra Wedgeworth, former Denver City Council member and President, and chief architect of bringing the 2008 Democratic Convention to Denver. She thinks what's really scary is Douglas County!
Prices over the last 24 months for condos, townhomes and single family homes in Five Points range from about $140,000 to $375,000.
May. 9, 2007
 In March desirable homes in good locations were still languishing on the market, while in April these same homes were being snapped up quickly. One of my clients saw half a dozen homes go under contract before she was able to see them.
The average price for a single family home in April was $322,510, while the median price (a better indicator of value which excludes the highest and lowest prices) $248,000. For condos the average price was $182,549, and the median was $148,900.
The number of Denver homes and condos sold in April increased by 2.92% over last month and 2.3% over April 2006, reflecting an active buying season. Average sold prices for single family homes increased 6.76% over last month and 1.12% over last year this time. The exception in activity and value was in the condo/townhouse market which saw a drop of 3.34% over last month and 7.02% from 2006 in the number of condos sold, and a drop in value (average price) over last month of .49% and over last year of 2.97%. Experts attribute the drop to overbuilding in the condo market, and predict it will continue throughout 2007.
Homes were selling faster than they had during March 2007, largely due to warmer weather and the beginning of the traditional spring selling season. Average days on market for single family homes dropped from 117 in March to 106 in April. For condos the drop was from 127 to 117 days on market.
If you're thinking of buying, now would be a good time. It could well be that the Denver housing market has hit bottom and values will continue to rise. Interest rates are still low, 6.125% (as of this writing) for an A borrower on a 30 year fixed loan.
The Denver Post and the Rocky Mountain News have slightly different slants on April performance. Have a look.
Mar. 13, 2007
Carl Brahe is a Denver home inspector my clients have done business with who has a lot to offer in his newsletter every month. I'm printing it in full because the subject is timely and the information important. Everything we can do to cope with the climate change already upon us may not be enough, but we have to try. Here are some things you should know.
Small Energy - Big Opportunity
Carl Brahe, Inspection Perfection Inc
Times of great change bring great opportunities. We are at the beginning of a time of change in the way we build, and the way we generate and use power. In the next few years, new materials and technology may change some aspects of our daily living in ways currently beyond our imaginations.
There are a growing number of low voltage, DC fixtures and appliances coming on the market. Low voltage radiant heat is available. It comes in plastic sheets that can be cut to fit any shape. Power can come directly from solar panels, wind generator, storage battery or can be powered by a transformer connected to the public electrical system.
Low voltage lighting is already commonplace. Higher voltage AC electricity is converted by transformers to power LCD and other types of lighting. Powering these features directly with solar/wind produced low voltage electricity is more efficient.
Electricity is 100% efficient energy, but there is a great amount of waste in the transmission over power lines and through transformers. Harvesting our own electricity and using it at home increases efficiency. Nothing is lost in transportation.
A compact florescent light that works in traditional light fixtures cleans the air and saves electricity. According to the manufacturer, Bioizer Technologies Inc: “This proven process safely eliminates airborne microorganisms, mold, mildew and fungi, germs, smoke, pollution, industrial solvents, and odors while using less energy than traditional lighting technologies.”
There has been a lot of resistance to solar power because it has come in unattractive packages. New photovoltaic (produces electricity from sun light) solar products may change that. There are already shingles that extract electricity from sun that look like regular composite shingles and last about 20 years. There are new, higher efficiency, thin film solar materials that can be molded to any surface. Spray-on solar panels are in the works.
The way we supply energy to our homes in the near future could defy traditional thinking. Advances in small-scale energy generation has advanced enough that most Coloradans no longer need to pay for electricity. We have an abundance of sun and/or wind in every part of the state. We have the resources and the technology is available to allow us to harvest energy for our own use and maybe a little left over to sell.
Systems in development will use electricity from solar or wind sources to make hydrogen and oxygen from water. The hydrogen could be stored and reconverted into electricity for household use with a byproduct of water. The hydrogen might also be used to drive a car. Hydrogen powered fuel cell cars are currently available in Japan.
National Renewable Energy Lab in Golden, CO, is working on even more passive, and environmentally harmless, ways to produce electricity, like energy towers that are essentially nothing more than chimneys. A solar collector of some sort, such as a greenhouse, is connected to the bottom of the tower. The sun heats the air inside. As it rises, it creates currents that drive an electric generator. The process can be reversed by spraying a mist of water into the top of the chimney. The falling mist creates air current at the bottom of chimney that can drive a generator.
The great opportunity that comes with efficient small-scale generation of power is that it is small-scale. Net metering laws that require power companies to buy power produced by individual users creates opportunity. Power companies are required to supply net metering devices to feed home produced power into the grid. Individual homeowners can harvest and sell small amounts of energy to the power company.
Maybe the next self-made billionaires will come from the ranks of entrepreneurs leasing solar panels to homeowners, or leasing space from homeowner to harvest energy. Co-op or HOA owned private generation facilities, that produce and sell excess power, could become common. This assumes no legislation to define small generation systems as power supply plants subject to federal regulations and bureaucracy.
There are many proposals in the state legislature that deal with promoting the use of renewable, clean energy. Thinking big, these proposals mainly focus on power generated by large power companies. Focus has been on the lack of transmission lines preventing large-scale use of solar and wind energy. Thinking small, a system is already in place that delivers electricity to nearly every spot in the country. This system may not allow for huge amounts of electricity being fed into it by large wind or solar farms, but it carries electricity to nearly all homes and businesses in the state. At least an equal amount of electricity could flow back into the grid from small energy harvesters.
If all Colorado homes and businesses harvested their own electricity from wind and sun and fed the excess power to the grid, electricity production would be increased greatly with no new transmission lines. Theoretically, each home or business could eliminate its own need for power from the grid. The power grid, relieved of the burden of transporting that amount of energy, could accept at least that much back. We could provide electricity for our own needs and the needs of another home or business in a less sunny/windy state.
New ways of thinking combined with new technology will provide new solutions for satisfying consumer demand. Colorado farmers and ranchers may find that energy harvesting is more profitable per acre than livestock, produce or grain. Electricity harvested from sun or wind can be converted to hydrogen and oxygen. These gases can then be piped or trucked to market.
There are currently mortgage programs that will add in the cost of energy improvements that pay for themselves. The cost of the improvements can be rolled into a first mortgage or added as a second. Tax incentives exist at federal and local levels for solar and wind energy. Power companies are offering rebates for systems installed and are paying premium prices for the energy produced.
The legislators talk about the cost of change and who will pay it. There is only one answer. We will pay the cost of change. It may come through spending tax dollars to subsidize the powers companies, or from increases in energy costs. We will pay for it. We should we own it.
There are an abundance of new opportunities for small businesses and homeowners. As new technology becomes more widely used the costs will come down. Rebates are available from power companies that can pay for up to half of a solar photovoltaic system or a wind generator. Tax incentives cover more of the cost. There is a demand and there is the capital to drive it.
Opportunities seem to abound in energy related fields, yet at a recent home remodeling show in Denver these technologies were almost unrepresented. I saw only a single, bulky, low efficiency solar panel.
Small businesses can drive big changes and unforeseen fortunes can be made in times of shifting paradigms. A few years ago in India, a man started a microbank with a few hundred dollars. He made loans for small amounts of money, mostly under $100, to entrepreneurs in poor places. In only a few years, the bank now has billions of dollars to loan. The default rate on these micro loans is almost zero and many borrowers have risen from poverty to wealth. Sometimes small is huge.
Energy technology is starting to grow at a rate similar to personal computer technology in the 1990s. Opportunity is great now for delivering renewable energy and energy saving products. Incentives exist to enhance these opportunities and more incentives from the government and the energy industry are in the works. Demand for this technology is growing in response to environmental concerns.
Now the advantage in this field belongs to small, innovative companies. Microsoft, Apple and HP had their time of golden opportunity. That time is here for personal energy production and related products and services. What’s your Apple?
Additional Resources:
Copyright 2007 All rights reserved.
Mar. 10, 2007
It's still a great buyer's market in Denver, and interest rates are still low. Sales were down from January, a drop of nearly 13%. The drop likely reflects snow on the ground in January when offers are made for February closings. Denver's snow on city streets has just melted in the last two weeks. Prior to that, rutted "ice" streets put a damper on buying.
Prices were down slightly for single family homes. The drop for condos/townhomes was much steeper, from $154,900 to $144,950, a drop of 6%. Median price for a single family home was $235,000. A year ago the price was $238,500 a 1.5% drop.
Metro Denver's high rate of foreclosures is having a slight impact on prices. It's having a greater impact on how long a house stays on the market before it sells. Average days on market this year is up by 19.05% to 125.
Homes in great shape in good locations priced properly will sell much more quickly. But many sellers are still pricing their homes too high to readily sell. That makes it a buyer's dream -- unless the home hasn't been on the market very long. If it's only been on the market a week, the seller still has "pie in the sky" ideas about what their home should sell for. But if it's been on the market awhile, reality does begin to set in and the price begins to come down.
I've had several buyers lately who have bought at the beginning of the listing period, and they've paid higher prices than buyers who find houses that have been on the market awhile. So unless you're willing to walk away when a seller demands a price higher than comparable sales in the neighborhood, be prepared to pay the higher price. Home buying is not for sissies!
Denver’s cost of living makes it an easy choice over higher cost areas like both coasts. It costs 40 percent less to live in Denver than in San Jose; 34 per cent less than in San Diego; 43 per cent less than in San Francisco; and 14 per cent less than Seattle. If you live on the east coast, it will cost 15 per cent less than in Baltimore; 28 per cent less than in Boston; 50 per cent less than in New York; 14 percent less than in Miami
For buyers coming from the south and the midwest, Denver could cost more. It costs 2 per cent more in Denver than in Atlanta; 14 per cent more than in Houston; 7 per cent more than in Dallas; 6 per cent more than in Dayton, Ohio; and 11 per cent more than in Minneapolis. But living in Denver still costs 3 per cent less than in Detroit; 20% less than in Philadelphia; 1.5 per cent less than in Cleveland, and 1.5 per cent less than in Chicago.
You’ll need to do your due diligence to compare cost of living between your city and Denver at websites like http://www.bestplaces.net, http://www.bankrate.com/brm/movecalc.asp, or http://cgi.money.cnn.com/tools/costofliving/costofliving.html.
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 http://www.buyers-advantage.net/happy-clients.html. Phone numbers available upon request. Call Judith Clausen now at 303-587-3509 to help you find your new home in Denver.
Mar. 10, 2007
If you're looking for real estate information in a place other than Denver, here's the place for you. A great list of real estate and real estate related blogs, generously donated by the Bloodhound Blog. Some of the links are a different color. These are ones I've added. If you'd like to add a blog, post a comment about it and include the name and the web address, and I'll review it. If it's a good blog, I'll add it.
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