Real Estate Buyers Facing Greater Lending Hurdles
June 27th, 2010 categories: Real Estate News, Relocation Tips
Denver, Colorado - Buyers who want to finance the purchase of their home should rethink carefully what they do financially in the time between obtaining their first conditional loan approval and the time they close on their new home.
Lenders are facing more regulations for underwriting mortgages. These standards will certainly ensure that buyers will need to do more than fog a mirror to get a loan.
If you’re considering purchasing a home, here’s what you’ll need to know:
- The lender will be pulling another credit score about three days before you close. If you opened a new credit card, bought the SUV you thought you had to have to live in Colorado or decided to max out a credit card with your new appliances, beware - your credit score could be negatively affected. Don’t let that happen. Put off your big purchases until after the closing and don’t open new credit.
- Employment verification - yes, the lender has to do this again too. Three days before closing. Don’t quit your job before you buy your house!
- As I said in a recent article about credit scores, buyers’ initial scores need to be higher than ever to get the best rates. Make sure you handle any credit repair issues in the months prior to applying for a home loan.
The best advice of all is to utilize a loan officer who clearly knows the guidelines, and who can advise you throughout the process. Use a loan officer in the community you’ll be buying in. Out-of-state lenders rarely know or understand the nuances of closing loans in another state. We see more delayed and messed up closings with out-of-state lenders than for any other reason. Now, buyers themselves may cause delays (and be at risk of losing their deposit) if they don’t heed the warning to leave well enough alone when it comes to their credit and employment.
Look for your new house here: www.GretchensDenver.com and click “contact me” to ask for references to great local Denver loan officers.
| Discussion: 2 Comments »
Denver is Most Improved in U.S. Real Estate
June 18th, 2010 categories: Real Estate News
Bloomberg BusinessWeek reported last week that Denver’s housing market is “most improved.”
I think we’ll settle for that. We’ve always said here in Denver that our economy is counter cyclical, setting the trend up or down. If Denver is improving, then much of the U.S. will follow. Our real estate market statistics showed a slowdown in May from April, but we were still up over 20% from last year. That’s a dramatic gain in sales and activity.
My Great Grandfather founded the Miss America Pageant in Atlantic City to promote a lengthened summer season at his beach resort. Did you ever wonder why the Pageant was in September? Advertising, positive spin on his city, hotel guest-counts, paying guests in September.
But to the contestants, it was more than hotel guest-counts, it was a lifetime dream. They wouldn’t want runner up or most improved. But being most improved is fine for us here in Denver - we’re happy about it! We want to be most improved! We don’t need to be Miss America.
Patty Silverstein, Chief Economist for the Denver Economic Development Corporation, said in a seminar yesterday that official employment figures don’t include the self-employed. We’re officially losing jobs, yet we added 89,535 new residents to Colorado in 2009. Adding people increases the likelihood that housing demand will increase as well.
It’s true that sales slowed from March and April to May. The tax credit had a lot to do with pushing the summer business forward. But with solid growth our improving real estate market will continue the positive momentum. Most improved means setting the trend. Crack open the Champagne!
Then search for your next home at www.GretchensDenver.com.
| Discussion: 1 Comment »
Homebuyer Tax Credit Ends in 30 Days. Buyers Get Off the Fence Today!
April 1st, 2010 categories: Real Estate News
This isn’t an April Fool joke. It’s a serious money matter.
Could you be at risk for losing out on an $8,000 tax credit, or a $6,500 tax credit? Could you be risking interest rate increases?
Those are your risks if you aren’t under contract for a property by the end of this month. Properties must be contracted for by the end of April and must close by the end of June to qualify for the tax credit. And the longer you wait, the more likely you’ll fall victim to rising mortgage rates and lose out on your own version of the white picket fence.
Spend some time researching Denver Real Estate on the internet, get pre-approved with a qualified and knowledgeable mortgage lender and then get a Buyer’s Agent to help you wade through the process of buying a home.
We are a nation of homeowners. Despite the recent hit real estate has taken, and the legions of homeowners who have lately become renters, buying a house is still the American Dream. Just don’t use your house as a cash-machine. It’s a place to hang your hat, kick off your boots and close out the world. It’s a place that if you’re frugal, you could own free and clear by retirement. Now wouldn’t that be the American Dream?
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The Case (Shiller) for Denver Real Estate
December 29th, 2009 categories: Real Estate News
The Avalanche aren’t number 1 this year. The Broncos certainly aren’t number 1. The Nuggets? Remains to be seen, but number 1 is unlikely.
Denver real estate is number 1. According to today’s release of the latest S & P Case Shiller Report, Denver’s real estate market declined the least. We’re number 1 because housing values went down just .1% from October of 2008. The rest of the 20 cities monitored by the report declined more than Denver year-over-year. Not one monitored city increased values year-over-year.
Actually, if you break our market down further, there are some serious rays of sunshine in Denver. The condo market jumped 50% in number of sold properties since last year. The average sold price for single family homes in November was up 9.5% to $265,498. The starter home price point is so busy that buyers are competing for properties.
Our high end market is still languishing. Most days lately, I’m hearing stories about a high end sale here and there. That’s good news, but these sales are almost always coming with big price concessions from sellers. You can read more about a local perspective at John Rebchook’s Inside Real Estate News Blog.
We’ve been saying for awhile that Denver is turning a corner. Since I moved here in 1982, we’ve been a counter cyclical city. We’re ahead of the curve in recovery.
What does 2010 portend? The first half of the year will be very good for real estate sales here. But after the tax credits end, and when the U.S. stops buying Treasuries we may be in for a bumpier recovery. Let’s hope that we’ve laid good groundwork with increased job growth and a stable local economy to stand the test of time.
In the meantime, let’s go skiing!
| Discussion: 1 Comment »
Denver Colorado Real Estate | November 2009 Market Statistics
December 21st, 2009 categories: Market Trends, Real Estate News
Busiest December Ever!
That’s not an exaggeration. It’s December 21st and I just got an offer on a listing which went under contract today. Our office rocking. The contracts keep coming in.
And we all had a great time dancing to the King of Pop last week at our office party. The mood is light years away from the dreadful, scary, morose feeling everyone had a year ago.
Not to say that things can’t fall apart on a dime. We’ve learned that a few times in the past decade. But when the going’s good you need to embrace it.
The Denver real estate market is setting the tone for an excellent 2010. This will be a very different year and buyers and sellers should be prepared to adjust quickly.
Looking at November’s market statistics (Christmas cookies took over for timely posting) you can see that Denver’s inventory is extremely low. This is more than just a typical seasonal adjustment. It’s a reflection of sellers’ pricing reality and buyers’ pent-up demand.
Our market is up 23% from this time last year! That’s an incredible statistic. In the words of Steve Harney, “You have to be dumb or broke not to buy a house right now.” A new house, an investment home, a move up, a downsize - this is your time, baby.
The average price is also up just a shade from last month and over 5% from last year. Sellers - don’t expect this number to magically increase at a rapid rate. Prices will remain deflated for awhile, but as the market picks up steam, prices will too.
With average days on market at 81 days, inventory will continue to sell off quickly and buyers’ lament will be that there’s nothing to look at.
After January 15th -when the market breathes new life every year - we should see an increase in inventory, and an increase in sales. Properly priced and showcased homes will not languish on the market in 2010.
Happy Holidays to everyone! Thanks for reading LifeStyleDenver for two years. Keep coming back and let me know if you want to list your house or find a new home in 2010.
| Discussion: 6 Comments »
Denver Colorado Real Estate | October 2009 Market Statistics
November 13th, 2009 categories: Real Estate News
I’m a little late this month with the real estate market statistics for Denver. It’s been a busy month! Good news for buyers, sellers and real estate brokers.
Denver sales continue to show bifurcated results - low to mid range homes selling like crazy, higher end homes still languishing a bit.
Inventory numbers are down from September - over 18% down. Days on market is down too, indicating increased sales rates. Inventory naturally adjusts this time of year, but sales paces have increased for some segments of the market causing further inventory reductions.
Prices are up nearly 3% from a year ago, but still we’re down from last month. That’s likely a result of the mix of homes that are selling. In other words, it’s not so much that prices have come down nearly 5% since September, but more likely that number is influenced by lower priced home sales.
Look for inventory to stay low through the holidays, which will result in pent-up demand by buyers after the first of the year. Buyers are motivated by the tax credit and they’re looking for good inventory to hit the market.
If you’re a seller, use the next few weeks to get your house in perfect showing condition, and carefully price your house when you do hit the market. If you position your home to come in first place in buyers’ minds - looking beautiful and priced very competitively - you’ll be the house that sells.
We’re in the perfect storm for a huge real estate recovery. Denver has already been at the front end of the recovery and recognized nationally as a stable place to buy a house. With interest rates remaining extremely low, prices depressed after several down years, and a tax credit for many buyers, 2010 is shaping up to be a busy year.
Last month proves it. I’ve been happily busy - but never too busy to help you find your next dream home! Start your search on my search homes website.
| Discussion: 1 Comment »
Homebuyer Tax Credit Extended
November 5th, 2009 categories: Real Estate News
The “first-time” home buyer tax credit was extended and modified today by Congress.
While there has been much debate here among Denver real estate brokers about the cost of the credit, there is no doubt that this move will help to continue to stimulate the recovering real estate market.
Homebuyers will now have two tax credits available. The original $8,000 for first time buyers - actually for buyers who haven’t owned a home in the previous 3 years. As well as a second credit available to current homeowners of $6,500. To be eligible, buyers must have lived in their current home for 5 out of the past 8 years.
The income limits for eligibility will increase to $125,000 for a single buyer and $225,000 for married couples. The maximum home purchase price will be $800,000.
The newest version was passed out of the House and the Senate today, and the bill sits on President Obama’s desk, waiting for his signature.
While the bill might be waiting overnight - don’t you wait! Get on my home search site and start house hunting. We can find you a terrific home and you’ll get your tax credit as soon as you file!
| Discussion: 3 Comments »
Help ~ We Can’t Find A Good House!
October 23rd, 2009 categories: Market Trends, Real Estate News
I’m working with a lovely family who is relocating to Denver in a few weeks. We can’t find them the right house and their move date is looming. They want to be here and settled by December.
After a 4 1/2 day marathon of 56 houses, we kind of narrowed it down to two possibilities. These buyers are looking in a fairly significant price point. Not uber high-end, but enough to buy a very nice home in a very nice location.
Theirs is the price point that’s slow in Denver, and now we’ve seen everything on the market. Either the homes were location compromised, floor plan challenged or way over priced. There are two homes they would consider, if they were appropriately priced. As it stands, after a detailed market analysis, both houses are more than $100,000 off the mark. The sellers feel they’re “in the right” and their agents have said if we wrote an offer, we’d be unreasonably low.
So we’re back to square 1. If you know of a house coming on the market, or a For Sale By Owner (FSBO) that we could take a look at, please contact me. We’re looking in Cherry Hills Village, Greenwood Village and Littleton. Preferably under $1,000,000 with 4 bedrooms plus a study and a nice-sized lot.
Thanks for your assistance. They need the keys to their new house soon!
| Discussion: 4 Comments »
Denver Colorado Real Estate | September 2009 Market Statistics
October 12th, 2009 categories: Real Estate News
In August, Denver had 20,225 active listings available on the market. In September, we were down to 19,834.
With inventory naturally shrinking as we round into fourth quarter, Buyers are left with choosing a currently available home or waiting to see what might come on the market in coming months. It’s not likely that many new properties will be listed from Halloween through the new year, and many buyers are faced with choosing between buying a home they’ve seen or waiting until after the first of the year when inventory will begin to build.
Prices are up slightly from August, and up nearly 5% since last year. From August to September 2008 our average price went down 14%, and it kept trending down for months. We’ve now begun an upward swing just when our market typically begins to cool a little.
We’re likely in for a fairly quiet winter, but not likely to see prices precipitously dropping. By early 2010, we should be well into recovery and buyers will benefit from new inventory.
The big kicker will be mortgage rates, and if (when) they begin to rise, they will rise quickly. That could put a damper on buyers’ purchasing power. If you’re a home buyer, you may not have as much to choose from today, but you know that prices and rates are still low.
Based on the increasing average price trend and shrinking days on the market, you can’t know for sure how long you’ll be on this side of low rates and low prices.
| Discussion: 3 Comments »
What the Fed Wants Buyers to Do
September 24th, 2009 categories: Real Estate News
The Federal Reserve kept the Fed Funds Rate low again yesterday in their monthly meeting. This rate is used for banks as a benchmark for their overnight lending to each other, and is a short-term rate.
Mortgage rates track with the bond market, and not the Fed Funds Rate, however, conventional wisdom suggests that the Federal Reserve governors feel that inflation isn’t yet a risk, and that rates should remain low to keep the recovery moving forward.
With rates low for, “an extended period,” there should be no doubt in buyers’ minds that now is a good time to buy. When rates begin to rise, which may be as early as the beginning of next year, they will probably rise rapidly.
Your buying power will be quickly eroded if the rates go up even 1% and they will likely end up quite a bit higher than they are today. I remember buying my first house and assuming a 9% loan - we thought that was great relative to where rates had been!
Get into you lender’s office soon and find out what you could pre-qualify for. You may be surprised, and this is a great opportunity to take advantage of low housing prices.
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