What Came First, the Perception or the Reality?
July 27th, 2008 categories: Market Trends, Random Thoughts
Perception? Reality? What is it that drives human behavior?
One of my favorite Denver Post columnists, Al Lewis, wrote today about perception. He believes that reality came first, perception is based on the reality we’re experiencing. I’m paraphrasing, of course, so you may want to read it yourself. Al makes some compelling points, and it’s been a looong time since I took college economics, psychology or sociology. But I do feel that things aren’t as black and white as all that.
Realtors are often blamed for being Pollyanna, only wanting to put a positive spin on things.
We’ve all been griping about the media coverage of the real estate market over the past year or so. It’s the unbalanced nature of the coverage that gets me. I don’t dispute the facts when they’re reported - number of housing starts, amount of resale properties currently on the market. Where the media is guilty of influencing what Al calls a simple free market is when the coverage isn’t balanced. When reporters specifically print story after story of fear inducing coverage without finding out the balancing side of things. Reporters don’t write their own headlines, and some of those headline writers need their hands slapped! I’ve seen doom and gloom headlines that have nothing to do with what’s in the article.
I must point out that Al Lewis has not been guilty of reporting only from the dark side, and he’s very willing to cover interesting stories using a variety of sources. There are others, though… When people say that the media uses bad news to sell papers - face it media - that’s the perception! Just like the perception is that Realtors don’t work our a–es off for our clients, just take a bundle of money for nothing.
Here’s what I know for a fact - that I haven’t seen much press coverage on:
- Real Estate is local, and the national statistics are pretty much irrelevant to local housing markets.
- There are local banks on solid footing with money to lend. Here’s another Post article from today.
- Rates are still at historic lows.
- Rental properties are staying rented, and vacancy rates are low (not speaking to large apartment complexes).
- The price range from $300,000 to $800,000 has been selling well lately in Denver.
- Not everyone is in foreclosure, and actually most people aren’t.
So black and white or not you should buy a house to live in, raise your family in, entertain in, keep as a rental. Don’t over leverage to go on vacation. Pay your mortgage on time. Have 6 months payments in the bank. It’s elemental. It’s today’s reality.
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9276 East Vassar Avenue
July 23rd, 2008 categories: LifeStyle Listings, Real Estate News
Wood and tile floors, stunning mill-work and slab granite kitchen counters. The house backs to the 2nd fairway with views off the deck to the southwest and the mountains.
Visit the home’s custom website for specifics and interior photos.
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L’Asie Fusion Bistro
July 19th, 2008 categories: Life In Denver, Restaurant Reviews
Our newest favorite Asian restaurant is L’Asie Fusion Bistro.
We’ve tried it twice and both times it was wonderful. My husband like Aisan food better than I do, but I’ve been pleased and lucky with all of the dishes I’ve ordered at L’Asie. The restaurant is in the old Emma’s space and has been open for a little over a year. Menu items are a fusion of Vietnamese, Chinese and Thai. The eclectic blending of dishes and spices makes for an explosion on your palate.
They also have a fun and crazy drink menu of “fou fou” drinks that are sold two for one. You may want to consider splitting your drink order, they are large, sweet and for me had plenty of alcohol. Wine is two for one as well.
Order the appetizer sampler plate for a terrific variety of snacks, but remember to leave room for your main dish. The first time we went to L’Asie, I was so full I could hardly eat my fish, and it was delicious!
L’Asie is at 603 E. 6th Avenue heading out from downtown towards Cherry Creek. You can usually find parking on 6th or on one of the side streets. They say you don’t need reservations, but both times we went there we’d made them at the last minute, and were happy we did.
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Market Headlines - Are You Worried?
July 14th, 2008 categories: Market Trends, Real Estate News
Yesterday afternoon, I got a text alert from The New York Times about the federal government’s plan to shore up Fannie Mae and Freddie Mac. Strange to get a NYT alert on a Sunday, just after their big edition hit the doorstep.
Maybe Not so Strange
The government worries about markets all over the world, not just in the U.S. They often time announcements around the opening bell at the Hong Kong market. After Hong Kong opens, markets begin opening in succession. Clearly, the government wanted to send a signal - don’t sell off U.S. securities, we’re handling it.
Eye on the Media
Today was a day we all kept our eyes on the market. What would happen to stocks? Bonds? Banks? Indy Mac was taken over by the FDIC, Fannie and Freddie needed government intervention and predictions of more bank failures followed.
As I said in my recent post The Good News and the Bad, I’m not so sure I always trust what the media has to say regarding the housing market. They do seem to have a bad news ax to grind. Today was an important day to pay attention though. Ax or not, when George Soros speaks, people listen. Soros was interviewed by CNBC and clearly believes that our economy is faltering. While times are definitely uncertain, remember that the more bad news we hear and read, the more likely it will become a self-fulfilling prophecy. Isn’t that what a bank run is? If you see 3 people lining up to withdraw their funds, don’t you line up too? Then there are four in line, then there are five. No one (understandably) wants to be the last one in line - and thinks, “I might as well be safe as sorry.”
The public good is served by the Fannie Freddie handout today. These quasi-public institutions bolster nearly all of the mortgage and housing markets. Left to falter, there would certainly be a crisis of unpredictable proportions. I read one article today stating that some home buyers are rushing to lock their loans thinking that mortgage rates will be going up soon. Put into perspective - I bought my first home for 9.5% and thought that was great - rates will probably tick up rather than race up. And hopefully won’t hit the highs of the 70’s and 80’s anytime soon. That will depend on the Fed’s reaction to inflation along with this banking crisis.
At the risk of sounding Pollyanna and head-in-the-sand, I’ll repeat what I’ve written here several times. Real estate is local and Denver’s market is out pacing most of the U.S. Our days on market are shrinking for certain segments of the market, and there have been several instances where I’ve heard of multiple offers.
People need a place to live, to call home. Worry too much and you may make uninformed decisions. Let the headlines inform you, not paralyze you.
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Denver Real Estate Stats - June ‘08
July 11th, 2008 categories: Market Trends, Real Estate News
Where is the Denver real estate market headed?
We’re asked this on a daily basis, and with the frenetic pace of the news reports, it’s sometimes a moving target. What I can tell you is that in my office, we’re processing more under contract files in the $300,000 to $800,000 range these days. Last year, it seemed like the high end properties were sustaining us. This year, the mid-range properties are selling best. Perhaps the jumbo loan rates has slowed down the high end market a bit, perhaps some people are electing to stay in their homes and remodel them.
That’s not to say high end isn’t selling at all, just that the more mid-range homes are the properties that are getting multiple offers and are moving more quickly.
In-town residences are still selling more strongly than suburban homes - In the medium and entry prices.
If you’re interested in finding out the walkability of any address just go to the Walk Score web site and enter an address. Central Denver residences are more walkable, and the price of oil will undoubtedly continue to influence the home buying decision.
The Metrolist market stats are out for June and you can see that we’ve shaken out a lot of the inventory we were carrying last year with actively marketed properties dropping 13.72%. With prices adjusting downward, numbers of pending sales are improving.
The number of closed properties increased from May, but decreased from this time last year. I’m betting the decrease year-over-year is due to a lesser amount of inventory. With the rising number of pending sales, we’ll likely see that number go back up next month.
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Colorado in Top 5!
July 9th, 2008 categories: Market Trends, Real Estate News
America’s Top States for Business
CNBC announced this morning that Colorado ranks #5 for top states doing business. This is the first time ever that Colorado has been in the top five. We love our state, our lifestyle and those of us who sell real estate here can tell you that we feel the optimism and enthusiasm in the market.
Colorado’s ranking qualifications were:
- Business friendly
- Energy economy
- Wind and solar
- Unemployment 4.9% compared to the national average of 5.5%
- Corporate tax rate 4.63%
- Largest industry - corporate and professional services (even without Arthur Andersen)
- Largest employers - Allstate Insurance and Lockheed Martin (Space Systems Divisions)
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The Good News and The Bad
July 6th, 2008 categories: Market Trends, Real Estate News
My husband is fond of saying, “I’ve got good news and bad news, which one do you want first?” Now, I tell him it’s all news to me, just deliver!
I think the Denver real estate market is full of good news and bad news too. About a week ago, I was asked to appear on ABC’s World News Tonight in a story about the real estate market. They told me it was a story stemming from the Case Shiller Report issued earlier that day. Denver was up nearly 1%, so they wanted a broker from Denver in their story.
Silly me, I thought it was going to be about the “turning” real estate market. That’s even what the assistant producer said to me on the phone. I gladly participated, and submitted to a lengthy interview. Fun and nerve wracking! Yes, it’s true, the camera does put on an extra 10 lbs. Or maybe those extras were already on…
They talked to me in front of one of my listings that had just received two offers, and then they followed me around another home nearby with a buyer in tow. 15 - 20 minutes of camera time was boiled down to 15 seconds in the story. My son and I sat down to watch - it was the lead story. In the intro they said, “Worst Real Estate Market Ever!”
My heart sank, “what have I done?” I asked. I’ve participated in prolonging the media obsession with how terrible the market is. The silver lining to the entire story is that I was the “silver lining”. Denver’s real estate market isn’t as unhealthy as other areas and buyers are making offers. The well priced, well located and beautifully staged homes are even getting multiple offers.
The media is going to pick up on the bad news and gloss over the good. Ask your Realtor what the true lowdown is, and get to know your own particular market. There’s good news and bad, but the truth lies somewhere in the middle.
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Gretchen Faber’s Top 10
July 1st, 2008 categories: Life In Denver, Random Thoughts
Hi there! My name is Gretchen Faber, the author of LifeStyle Denver.
In case you haven’t had the opportunity to view my bio yet, I thought I’d give you a little background and tell you about my favorite things to do in Denver for the Fourth of July.
I sell Denver real estate, a profession I’ve loved for over 12 years. Denver is a fabulous city, with so many great neighborhoods. If you’re around Denver this coming weekend - here are a few of my favorite things to do over Independence Day:
1. Cherry Creek Arts Festival: Our central Denver neighborhood of Cherry Creek hosts the annual Arts Festival every Fourth of July. It’s a three day event with hundreds of booths and exhibits. This is no craft fair, it’s a juried show of some top artists throughout the U.S. You can also enjoy the Culinary Arts demonstrations, the kids’ creation area and several outdoor concerts.
2. Colorado Rockies: Every year the Rockies host a fireworks exhibit after the July 4th game, and this year is no exception. My son loves going to this game with his dad. We’re playing the Marlins, and the games with fireworks are on the 3rd and 4th at 6:05 pm. We need a couple of wins!
3. Four Mile Historic Park: Pioneer exhibits and Denver’s oldest standing structure. This place is a blast for the little kids, and interesting for adults with an appetite for history. Don’t miss the horse-drawn carriage rides!
4. Red Rocks: Looking for more adult entertainment? Blues Traveler/Live/Collective Soul are playing at Red Rocks. What a night! I just checked, and tickets are still available.
5. Santa Fe Arts First Friday: It’s First Friday again at the Santa Fe Arts District! Go there first on Friday evening to sample the terrific local artists, and then check out the CC Arts Fest over the weekend. An art-lover’s heaven of a weekend.
6. Pro Lacrosse: Lacrosse fan? Head over to Invesco Field (Mile Hi to locals) and watch the Outlaws play the San Francisco Dragons. Fireworks follow.
7. Symphony On the Rocks: The Colorado Symphony Orchestra will be playing at Red Rocks on Sunday evening at 7:30. Doesn’t this sound like a perfectly wonderful evening after all of the special events you’ve gone to for the past 3 days?
8. Colorado Renaissance Festival: Who needs to cook when you can get a big-a– turkey leg and carry it around with you? The Renaissance Festival is perennially a family favorite. It’s running weekends through early August.
9. Colorado History Museum: This is the last weekend for their exhibit called “The Italians” illustrating the impact that Italian Immigrants have had on our state.
10. Fireworks! Did you think I’d forget? The Glendale city fireworks display is Saturday, July 5th at dusk. Lannie Garrett is playing a concert there too. You can catch fireworks after the Rockies and the Outlaws games. Macy’s will be hosting a fireworks show on July 5th at the Cherry Creek shopping center - best viewing is from the Fillmore Plaza in Cherry Creek North.
Have a fun and safe weekend. If you’re thinking of buying, selling or relocating ~ think of me and click on the “contact me” button. I’ll send you customized information on real estate. Me~Gretchen Faber 
an agent who loves her job!
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