WEEKLY MARKET WATCH

Colorado Housing Market Heating up Along with Summer Temps

Maybe we just had a late spring. That’s one possible explanation for what we’re seeing in the Colorado housing market. Normally, the real estate market picks up in March, April and May and then takes a breather over the summer for vacations, graduations, weddings and other activities. But this year it seems like that’s being reversed.

After a modest spring, the local housing market has been heating up this summer with strong sales in June and even into July in many areas. Sales activity has been especially robust in the higher end of our markets.  But even the mid-level market was surprisingly active (more on that below).

As I was combing through last month’s sales figures, I noticed an interesting trend: In most of our Colorado markets in June we saw a higher number of million-dollar home sales, in some cases the highest since 2008. You might recall that was just weeks before the collapse of Lehman Brothers sent the financial markets into a tailspin and pushed our economy into the “Great Recession.” Now, three full years later, we’re seeing a much brighter picture for the local housing market.

The high-end of the market is not the only segment doing well. The entry level and mid-level markets have shown solid signs of improvement as summer rolls along.

The only thing holding back the lower end of the Colorado market in many cases has been a lack of inventory. Inventory remains elusive in many markets. Because of the shortage of good, well-priced homes, multiple offers are picking up in many communities. In nearly every one of our regional markets, you can almost be assured of multiple offers for a well-priced, well-located, and nicely staged home in the entry price level for that market.

Clearly, Colorado’s relatively strong economy, is playing a key role in our housing market.

This all is not to suggest the housing market is completely out of the woods. Real estate is very much a local business. And while many of our markets are on the mend, others are still softer than they were a few years ago. And there still is an overhang of distressed properties that will continue to come on the market as bank owned REO sales in the months ahead.

While we take quite serious the nation’s fragile economy, and most recently the stalled talks to come to terms with our national debt limit, we can be thankful for the Colorado real estate activity that continues to move forward.  We are fortunate to live and work where we do.  The limited housing stock, diverse job base, incredible universities, and great weather are all factors that help homebuyers focus on these terrific home values and low mortgage rates.

Should I Use a Home Stager? YES!!! and here's why...

According to statistics, 93% of properties that used home stagers sold, on average, in one month or less. Perhaps it’s time to consider hiring a home stager.

If that’s not enough to convince you, consider this: In 2009, over 98% of buyers stated that they created their “short-list” of homes to view solely on the internet.

Here are some more reasons why enlisting the help of a home stager is ideal.

Home stagers see your home as a buyer

The problem with most homeowners is that they are unable to see their homes from a buyer’s point of view. This keeps them from optimizing their homes and placing them in a light that is attractive to potential buyers.

And considering that 95% of buyers buy on emotion, a home stager can offer some valuable insights on what it would take to make someone fall in love with your home.

Home stagers can use your furniture strategically

A 2007 Home Gain survey of 2,000 practitioners found that the return on investment from home staging was as much as 343%, so it would be ideal to leave your furniture in the hands of a home stager so that they can place your items strategically and use your space in the most optimal way.

Sometimes a simple furniture cover or moving the couch to the corner of the room can open a room up and give the illusion that it’s incredibly spacious.

Home stagers can bring useful additions to your home

If your furniture lacks a bit of, say, lustre, a home stager may have items in inventory or has the connections to rent the appropriate items to stage your home.

Home stager can get you more money

Statistically, staged homes tend to sell faster and for more money.

How much do home stagers cost?

It really depends on if you're staging a vacant home with all new furnishings, or simply updating and rearranging your existing home furnishings. Some companies charge a monthly rental fee, others a percentage of the sale and some just a flat hourly fee. Although I am not a professional designer, I have training and experience in home staging and offer my services to all of my client who hire me to market and sell their home. Contact me for more details.  

BROADLANDS OPEN HOUSE - FRIDAY 7/22

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Still Sitting on the Fence about Buying or Selling? Great article to read.

6 tips for timing a real estate purchase

How fence-sitters can get a jump on the competition

By Dian Hymer
Inman News™

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In mid-June, interest rates on home loans were lower than they were a year ago. However, this failed to ignite the housing market. Many buyers and homeowners would like to make a move, but some find it impossible to make a decision. They are commonly referred to as fence-sitters, poised to make a move when the time seems right.

The housing market is unlikely to turn around soon, but this doesn't mean that now is not a good time to buy or sell. It depends on your personal situation and market conditions in the area where you plan to buy or sell.

Become an expert on your local market. Knowing a good deal when you see it or what price to ask if you decide to sell depends on having a good understanding of how much properties are selling for in your neighborhood.

While you're trying to decide what to do, line up a team that can help you accomplish your goal when you decide to move ahead. You can do this by researching online, attending open houses in the area and asking a real estate agent to keep you on top of market fluctuations.

Your decision to buy should be based on your personal financial situation, not on the national or global economy. For example, if you bought during the bubble market and are now getting divorced, you'll probably sell for less than you paid.

But, if the house is too expensive for one to support, it may be cheaper in the long run to cut your losses and sell now. No one knows how long the housing downturn will last. Prices could move lower before rebounding. This is not an ordinary recession.

HOUSE-HUNTING TIP: Don't get caught up following the herd. Just because most people in your area aren't buying or are having difficulty selling doesn't mean that you shouldn't make a move. Just make sure if you're a buyer that you have job security, a relatively healthy economy in your local area and a plan to stay put for at least 10 years.

The housing market will be volatile going forward. Good economic news will help fence-sitters make the decision to get serious about moving. Bad news of any sort can cause the market to stall. To take advantage of the upticks in the market, you need to be prepared in advance.

Find a good local real estate agent to work with who understands your needs, and wait to buy or sell until the time is right for you. It could take you a year or so to make the final decision. Some agents don't have the patience to stick it out.

Select an agent who will educate you about the market and the idiosyncrasies of the home-sale business in your area. Ask to be kept informed about sales in the area. Many agents are set up to do this electronically, which is an easy way to keep you informed without taking up a lot of the agent's time.

One of the most difficult aspects of the current home-sale business is financing the transaction. Find a loan agent or mortgage broker who is a real professional, has been in the business for years and who understands what current underwriters will require from you to process your loan.

Assemble all the financial documents you'll need for loan approval even before you start looking. Ask your agent or broker to have your loan package previewed by an underwriter so that you know beforehand if there are any problems.

THE CLOSING: Remedy these in advance so that they don't cause last-minute delays in closing.

Dian Hymer, a real estate broker with more than 30 years' experience, is a nationally syndicated real estate columnist and author of "House Hunting: The Take-Along Workbook for Home Buyers" and "Starting Out, The Complete Home Buyer's Guide."

Coldwell Banker Represents the Highest Known Sale in Los Angeles History!

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Rather Than Sitting on the Fence…

 Why Not Own It? 

• Homes are More Affordable – Current housing prices are down 27% on average across the nation from peak values five years ago,1 and the national housing affordability index continues to hover at record levels. 
• Rates are Low – At 4.6%, 30-year fixed mortgage interest rates remain near historical lows.2 
• Timing is Everything – Conforming loan limits will be reduced on Oct. 1, 2011, which will decrease the availability and affordability of mortgage credit for many home buyers in 42 states.3 
• Homeownership is Still the American Dream – Nearly nine in 10 Americans say homeownership is an important part of the American Dream.4 
• Financing is Available – Today’s borrower needs to have stable employment of at least two years; sufficient income to cover the monthly mortgage payment and living expenses; adequate savings to make at least a 3.5% down payment; and, in general, a credit score of at least 620.5 If you meet these basic requirements and plan to live in the home, you may be well on your way. 

Now is the Time to Make Your Move 

Now may be the time for you to act. There is ample inventory on the market for you to capture that “dream” home you have always wanted at a price and terms you can handle. But don’t wait too long, because mortgage rates and home prices won’t stay this low forever. Find your perfect home along with a mortgage that meets your needs with the help of one of our more than 250,000 outstanding affiliated sales professionals. Please call me today: 

[1] According to Freddie Mac House Price Index (June 2006 to March 2011). [2] Primary Mortgage Market Survey® data according to Freddie Mac as of July 7, 2011. Based on average 30-year fixed mortgage rate with an average 0.7 point. [3] New loan limits published by FHFA and HUD. [4] New York Times/CBS News poll, June 24-28, 2011. [5] FHA requires a minimum 3.5% down payment; conventional mortgages will require a down payment of 5% or more, FICO score minimums may be higher or lower depending on loan type, income history, property type and other factors. 

©2011 Coldwell Banker Real Estate LLC. All Rights Reserved. Coldwell Banker® is a registered trademark licensed to Coldwell Banker Real Estate LLC. An Equal Opportunity Company. Equal Housing Opportunity. Each Coldwell Banker Residential Brokerage Office Is Owned And Operated by NRT LLC. DRE License # 00313415 

©2011 Realogy Corporation. All Rights Reserved. Each office is independently owned and operated except offices owned and operated by NRT LLC. For a complete listing of Realogy companies, visit our corporate website, www. realogy.com. 

Interview with Jim Gillespie, President and CEO of Coldwell Banker

Jim Gillespie, President and CEO of Coldwell Banker shares his viewpoint on the economy, housing, and what may be the future of real estate. LINK TO ARTICLE 

OPEN HOUSE - Tuesday 7/12 3-6 @ 2825 S Monroe St Denver, CO

Update - WATCH VIRTUAL OPEN HOUSE TOUR 

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Denver #9 Forbes' best places for business 2011

Forbes' best places for business 2011 | LinkedIn

Another big metro that made the top 10, in addition to the three Texas locales, is Denver, which ranks No. 9. U.S. economic growth has been tepid since the recession ended, but Denver’s economy grew 3.9 percent last year and is expected to grow 3.9 percent annually through 2013 according to Economy.com. Denver’s great quality of life and educated workforce make it a favorite with companies in industries from aerospace and bioscience to energy, financial services and information technology. Major employers include IBM, Lockheed Martin and Wells Fargo.

2011 Coldwell Banker Summer Activity Guide

2011 Coldwell Banker Summer Activity Guide - visit the link for more details about upcoming concerts, venues, sporting events, arts, entertainment, festivals and recreation. 

Dobson's New Home

Congrats to John & Bev Dobson on purchasing their new home! And...Welcome to Colorado!!!!