Boulder-Denver Economy, OUR Nation and YOUR Real Estate - Part II

Any good real estate agent or relocation professional should stay on top of their local economic news as well as the news at the national level, and at Colorado Landmark, Realtors that's just what we try to do every week.  As I said in my previous post, last week I had the privelege of attending the Rocky Mountain Relocation Council's Fall Conference held at the Arvada Center.  My previous post was about national economic news conveyed to us by an economist from Wells Fargo Bank.

The second speaker of the morning was Cheryl Meyn from Denver's The Genesis Group.  Cheryl has an extensive background in Denver area real estate and spoke to us about economy in Colorado and specifically the 7-County Denver Metro Area.  Here are a few highlights from her presentation:

• Real estate overall:  If you look at the statistics, theoretically the Denver area real estate market bottomed out last year in 2009. 
• Unemployment:  Hovering around 8%, Colorado's unemployment rate is one of the lower rates in the nation.  We are experiencing a lessening of job losses which is giving the area economy some stability, but unfortunately not much in the way of job growth yet.  We have lost a net 45,000 jobs in this recession (at one point it was as high as 52,000) and it could take 3 years to recover from that.  Our area unemployment rate is not expected to go under 7% until late 2011.
• Mortgages and foreclosures:  18-20% of Coloradans are underwater on their mortgages, compared to 25-30% nationally, however foreclosure activity for 2010 is 10% below 2009 levels.  70% of all of the area's foreclosure activity is in Adams, Arapahoe and Denver counties.
• Housing inventory:  We have 3 years inventory of properties over $1M.  Local home builders have shown incredible restraint and we have little to no new construction inventory which has helped our resale market significantly
• Home Prices:  We have actually experienced a 3.6% increase in price activity in the last year.
• Housing Demand:  Pent up demand in our area is growing as we are seeing our population and # of households grow.  From 2005-2010 it was predicted that we would see a growth in households of 75,459 but the actual figure is 80,909.  From 2010 to 2015 we will see 80,952 additional households in our area.  Owner occupancy has declined from 66.7% in 2005 to 60.9% today and we have the lowest vacancy rates since 1994. 

So, what's in Colorado's future?  Housing will stay flat in 2010 and might improve somewhat in 2011.  Resales, which were down 8% in 2010 will see a rebound in 2011.  There are signs of improvement on the foreclosure front, and in-migration continues to be strong, with people still moving to Colorado.   All you have to do is check in with the national news media once in a while to hear various Colorado communities earning accolades for one thing or another, so it's no wonder people want to relocate here!

For Boulder County, the employment numbers are quite optimistic.  The most current numbers from the Bureau of Labor Statistics (for August 2010) put the Boulder Metropolitan area's unemployment at 6.4%.  Broomfield County recorded a 7.1% unemployment level for August 2010, so closer to the state level of 8.0% recorded for September 2010.

On the other hand, foreclosure activity is definitely catching up with our area.  According to RealtyTrac foreclosure filings in Boulder County were up in Sept 2010 with 234 filings, the highest number in 12 months.  The highest numbers were in Louisville (75) and Longmont (67).  Month-over-month price appreciation levelled out at 0.0%.  Only 29 foreclosure properties actually SOLD in Sept 2010 though.  Foreclosure activity is expected to rise, while the # of pre-foreclosure properties rose significantly last month from the single digits to over 60 properties.  The majority of the foreclosures are in the $100-300k range.  The foreclosures in our area don't necessarily translate to huge price savings for buyers -  10% in most of the county, with 20% in Longmont.

Broomfield County saw 52 new foreclosures in Sept 2010 and actiity is also expected to rise there.  Only 10 foreclosure properties actually SOLD in Sept 2010 though.  As in Boulder County, month-over-month price appreciation levelled out at 0.0%.  The majority of the foreclosures are also in the $100-300k range.

Pam Metzger
Director of Relocation, Business Development and Finance
Colorado Landmark, Realtors
www.facebook.com/COLandmark
www.twitter.com/COLandmark 
www.facebook.com/365ThingsBoulder

Fall Maintenance Tips for Your Home

Fall is officially here in Boulder, with our first true chill in the air! October in Boulder is beautiful and there is always something going on - school events, sports activities, CU Buffs games, and Halloween to name a few things. Don't get so busy with the fall fun that you forget stay on top of a few important home maintenance "to do's". Whether you are staying put for the time being or you are sellling your home and trying to keep it comfortable and in great showing condition be sure to make time for the following:

• Trim trees and remove dead branches. Bad weather and the high winds we sometimes experience here in the Boulder area can cause weak limbs to break, damaging property or causing injury. Consult a professional tree service for large jobs.
• Reduce energy costs by lowering the thermostat on your hot water heater to 120 degrees F.
• Make sure caulking around windows and doors is adequate to reduce heat loss.
• Replace the filter on your furnace and schedule routine maintenance with a qualified heating contractor.
• Change the batteries in your smoke and carbon monoxide detectors - time this to correspond with switching your clocks back in the fall, and then forward in the spring so you won't forget!
• Clear out gutters and downspouts on the exterior of your home to prevent the build-up of leaves and debris that can impede the flow of rainwater and cause water damage.
• Check your chimney for birds nests or other debris especially if you have a wood burning fireplace, and make sure the chimney cap is in place. Call a chimney sweep to perform maintenance.
• Be aware that mice will try to start coming in from the cold, especially if you live in or near a rural area, field, park or open space. There are numerous ways to trap mice, humane or otherwise. You will find many choices and expert assistance at McGuckin Hardware, Boulder's go-to place for pretty much everything since 1955.
• Consider repainting or staining and sealing your exterior doors to protect them from rain, snow, ice and wind. A $10 can of paint or sealant could go a long way to prevent damage to an expensive door.
• Cover your patio furniture, outdoor grill, portable firepit, etc... or move into storage.
• Drain and store your garden hoses, and have your sprinkler system blown out to prevent damage to pipes in freezing weather.
• Pull your refrigerator away from the wall and vacuum the condensor coils to prevent damage to the motor.
• Check your dryer exhaust tube and vent for built up lint, debris, birds nests, etc...
• Clean out your whole house humidifier and replace filters before heating season starts.
• Be prepared for weather related emergencies such as high winds, tornados, blizzards, or flooding. Organize survival kits and review an emergency escape or protection plan with your household.
  

Have a wonderful fall and enjoy everything our beautiful area has to offer this season!

Pam Metzger
Director of Business Development and Relocation
Colorado Landmark, Realtors
pam@coloradolandmark.com
303-443-3377

Not Too Late - $8000 Free $ for your First Home!

69 Days and Counting! It is not too late to take advantage of the government $8000 tax credit for first-time homebuyers. The Boulder market continues to stay strong, and well priced homes in Louisville and Superior are going under contract in a matter of days. Interest rates have never been better, and Federal Reserve Chairman Ben Bernanke has announced that his findings indicate that the recession is "very likely over".

RealTrends reports that nearly 40% of first-time homebuyers said they would not have bought a home if the federal tax credit for first-time homebuyers was not offered, according to the California Association of REALTORS® (C.A.R.) "2009 First-time Home Buyers Tax Credit Survey." Supporting that theory, the IRS recently released a report indicating that approximately 1.4 million taxpayers have filed (or amended) their 2008 income tax returns claiming the $8,000 first-time homebuyer tax credit. This is basically in line with NAR's projections that about 1.8 million taxpayers will ultimately claim the credit during this first round.

Buyers have to close their home purchase transaction prior to December 1, 2009 but there is still time left if you can act quickly and have a knowledgeable real estate professional and a reputable lender. Associates at Colorado Landmark, Realtors can help you identify a suitable home quickly, help you find the right lender, and we will do everything we can to get the transaction to close before the December 1st deadline.

The National Association of Homebuilders has a great Frequently Asked Questions web link regarding this landmark government program. Check this out and then call me here at Colorado Landmark, Realtors and I will be happy to connect you with a real estate professional who can help you in the neighborhoods you are interested in. Good luck! 69 Days and Counting!

Pam Metzger

Director of Relocation

Colorado Landmark, Realtors

pam@coloradolandmark.com

303-443-3377

New Lending Regulations May Affect Your Boulder Area Home Sales

We all know that the real estate market and the mortgage industry has been going through many changes. With past mortgage fraud leading to an all-time high number of foreclosures, the government is taking measures to prevent deceptive lending practices and ensure that buyers are better protected and informed. In 2008, the Home Ownership and Equity Protection Act (HOEPA) and the Housing and Economic Recovery Act (HERA) were passed by Congress, and the Federal Reserve Board published new regulations under the Truth in Lending Act. In addition, Fannie Mae and Freddie Mac adopted the Home Valuation Code of Conduct (HVCC), which will take effect July 30, 2009. These new regulations will affect several aspects of real estate closings.

• Lenders are now required to use an appraiser from a national pool of independent appraisers from around the country. In the past, lenders maintained longstanding relationships with local appraisers, and were sometimes able to influence the values in order to secure financing, which led to some appraisals being inaccurate. The intention of this new regulation is to put more separation between the lender and the appraiser to ensure fair, accurate appraisals. In reality, it also means that the appraiser who is evaluating a property may not be experienced in that specific market. Before the appraiser is scheduled to come to appraise a house, Sellers should have any documentation about the house that might be helpful in the valuation – receipts for work they have had done, a list of improvements they have made and special features about the house. This will help an appraiser who is less familiar with that area deliver the most accurate evaluation possible.
  
• Buyers are now required to receive a copy of their appraisals no less than 3 business days prior to the closing of their loan. The intention of this rule is to make sure they have ample time to review the appraisal and fully understand the value of the property they are purchasing.
  
• The earliest any home purchase transaction can close is 7 business days after the homebuyer is issued his or her initial Truth in Lending disclosures from the lender. These documents are typically given to a buyer at the time of the application, but if the buyer and lender don’t meet in person, the requirement allows extra days for mailing (e-mailing isn’t currently an acceptable form of delivery). Again, this insures that Buyers have time to review all the documents.
  
• Upfront fees that have been typically collected at the time of application can no longer be collected until the Truth in Lending disclosures are received, and the same rules apply as stated above – there needs to be time built in to allow for mailing of these disclosures unless the buyer meets with the lender in person.
  
• And lastly, any increase in more than .125% in the APR from the initial Truth in Lending disclosures (which can happen for a number of reasons, including a change in the loan amount, an un-locked rate or a re-lock in a rate, changes to fees, etc.) requires the disclosures to be re-issued and received by the buyer at least 3 business days before closing.
  

Ultimately, what this all means for buyers and sellers is that parties need to allow ample time between contract and closing to address all these issues. Working with a knowledgeable, experienced Realtor who is up to date on the latest rules will ensure that your transaction is structured appropriately to avoid any closing delays due to these new regulations. At Colorado Landmark, Realtors we strive to be up to date on the latest industry issues to provide exceptional customer service to our clients.

This article contributed by:
Jennifer Fly, Broker Associate
Colorado Landmark, Realtors
303-302-8823 (office)
jenniferfly@coloradolandmark.com
www.twitter.com/JenFlyColorado

Got Kids? ...How to Keep your House in Showing Condition

I recently asked a client how the showing went and she enthusiastically replied, "Great! But...." But what? She went on, “my kids think I am “Crazy Mommy!” I yelled at them to 'finish the snack!' 'Clean up the mess!' 'Put the dog in the car!'" Her kids wanted to know what happened to Mommy? Let's take a moment to understand that while it is important to sell the house, we don't need to throw the kids under the bus to get it done! Here are some tips for managing showings in a household with kids:

• Morning Routine.

Add a 10 to 15 minute clean-up routine after breakfast; this way if you get a call to show the home anytime throughout the day, the house is relatively clean. Make sure surfaces are picked-up, beds are made, breakfast is put away and toys are in their rightful bin/closet/chest, etc

• Requesting Time.

Request a 2-hour prior notice to showing; 2 hours gives your family time to straighten up and exit the home.

• Ready ... Set ... Go!

Pack a "field trip" bag. It may contain excursion essentials such as snacks, diapers, wipes, sippy's, and sweat shirts. Having it ready by the front door or in the car means you can grab and go just before a showing.

• Excursion List.

Prior to placing your home on the market, develop a list of places to go and things to do. In good weather, you can head to the park, creeks, farmer's markets, trailheads, Pearl St, the reservoir and the like. In bad weather, you can easily spend time at Moe's Bagels, the libraries, Barnes & Noble and Border's, BMOCA (Boulder Museum of Contemporary Art), Boulder Book Store, The Parenting Place, Logan's or Vic's, Amante or Laughing Goat, rec center pools, the movies, etc.

• Your Village.

Nothing beats having a friend who will open their doors to you and the little ones during a showing. Be sure to ask for help and let friends know prior to listing your home you might need a place to lay low during showings.

• Sports Pitstop.

Keep a bin of basketballs, mitts, tennis rackets, Frisbees, kites and the like in the car; a quick jaunt to the courts or parks gives your little ones an opportunity to expend energy and have fun during a showing.

• Teamwork.

Give your little ones age-appropriate tasks to help the household get ready for a showing. A two year old may like to use a dustpan and sweeper to clean up the floors. A three year old may clean surfaces with a duster. A four year old may want to make their bed. Giving children a chore teaches teamwork, jump starts the learning of some important life skills, and keeps them out of trouble while you get the house ready.

• Containing Messes.

From art to popsicles, explain to little ones that certain items must be used or eaten in rooms where messes clean up easily. I can tell you from experience, a red magic marker + master bedroom curtains = disastrous mess.

• Donate It.

Your family may have an opportunity to clean-out closets, playrooms and the like when selling a house; cleaning out the home prior to placing a house on the market helps make the home feel organized and roomy. Groups such as Saver's, The Salvation Army, www.boulderfreecycle.com, There With Care, Lupus Foundation, etc appreciate the donation, offer tax write-offs and may pick up donations at your front door.

• You Are Not Alone.

If you are struggling with showings, contact your listing agent. He or she is your ally and may be able to adjust the showing instructions giving you more time to get ready, conduct fewer open houses, etc.

In the end, your house will sell and the whole family can say they helped make it happen!

This article contributed by:

Amy Zoldak, Broker Associate

Colorado Landmark, Realtors

720.841.2390 (cell phone)

amy_zoldak1@yahoo.com

Boulder Real Estate Firm on the Money with Leading RE affiliation

At Colorado Landmark, Realtors we are very proud to be members of Leading Real Estate Companies of the World. Leading Real Estate Companies of the World® is a global network of nearly 700 premier real estate firms with 5,500 offices and 170,000 sales associates in 38 countries around the world. Collectively, this group has sold over 1.2 million homes worth $370 billion in 2007, more than any national real estate brand. LeadingRE dominates the United States’ list of top 500 real estate firms, with more of the Number One market leaders in the top 90 markets than any network.

A recent study by Real Trends shows that the independent member companies that make up Leading RE close almost twice as many transactions when compared to ALL of the top franchise brands in real estate, with 50% less firms! (REAL Trends, Inc. is a publishing and communications company considered to be a leading source of analysis and information on the residential brokerage industry. REAL Trends is based in Denver, Colorado.)

This just confirms what we have known all along ... that independent real estate firms are entrenched in the hearts of their communities and therefore know their markets better than any large multi-state corporation could ever hope to.

It is a great time to buy a home right now with prices and interest rates at their lowest points in decades. If you do decide to take the plunge the smartest thing you can do is pick up the phone, or click that mouse, and find the best local independent firm that also has worldwide affiliations.

If you are interested in moving to Boulder, Longmont, Broomfield, Denver or any points in between of course we would love to talk to you, so check us out at http://www.coloradolandmark.com/. If you are moving elsewhere in the country or in the world, our relocation department has would be happy to refer you to one of our affiliates, many of whom we have successfully referred clients to. If you prefer to "do-it-yourself" you can easily find a company in your location by going to Leading Real Estate Companies of the World then click on "Member Directory". To search community information and Leading RE listings worldwide go to RELO HomeSearch.

What Does it Mean to be in a “Buyer’s Market”?

It is best to return to basic economics. A buyer’s market is when there is more supply than demand. Some say it is when the inventory rises above a six month supply and there are more homes for sale than there are buyers for these homes. All agree that a buyer’s market has more inventory than demand for this inventory and so buyers are in control. So what this means is that there are typically more homes for sale for buyers to choose from. What it doesn’t mean is that a buyer has total control and can make unrealistic demands on the seller.

If you are a buyer looking to buy in Boulder, you may have your pick of several homes that meet your criteria..and you may not. Revisiting the simple economics and understanding how Boulder’s sustainable growth or housing cap works is an important piece of this equation. Boulder has its own limited supply by historical and ongoing scrutiny with new building permits. This plan started in the 1960s when the City implemented a sales tax increase and purchased greenbelts to remain as such; surrounding the city instead of issuing developers building permits for this space. Currently the idea of quality over quantity is still evident in the “Comprehensive Rezoning Proposal” which addresses both commercial and residential development within the City of Boulder.

I found a very well written case study based on Eben Fodor’s Better Not Bigger if you would like to read more about Boulder’s sustainable growth plan. So even if the national news is telling you it’s a “buyer’s market,” it is best to examine real estate city by city or even better: block to block. Some areas within Boulder and price ranges are definitely taking a hit. The upper end of the market (above $1,000,000) has seen longer days on market and fewer sales in the past 12 months. At the same time, single family homes under $400,000 have continued to sell in less than 80 days on average, some even going under contract the same day they are listed. It just goes to show that homes will sell and not every market is the same.

How about foreclosures or short sales? Buying from a bank has its own set of rules and if you are someone that likes to control situations then this is not for you. It is a game of "hurry-up and wait". When I was first starting my real estate career, all I did was buy foreclosures and pre-foreclosures. I know from experience it can be a long process. It can take a month or more for a bank to decide whether or not to accept a short pay offer and 80% don't get accepted. There is no one to call and push along, the person that answers the phone at the bank doesn't care much if the property sells or not and the listing agent has no control over the speed at which the bank responds. What’s more is because the market is moving in Boulder, there are little to no foreclosures available, even right now.

What else does a “buyer’s market” mean? Currently it means that buyers still have choices and incentives to buy. One of the most popular loan products I have seen is an FHA loan where the buyer only needs to bring 3.5% to the table. You can bring more of a down payment, but 3.5% is pretty stellar. This loan has been a 30 yr fixed with a rate around 5%, depending on the borrower. Also, the federal government has implemented a non-repayable $8,000.00 tax credit to first time home buyers. The terms “first time” are pretty loose as the definition according to the federal housing tax credit website says first time also means that you haven’t owned in the past 3 years. Visit the site to find out if the tax buyer credit will work for you.

And what about if you are a seller? Well, the above incentives for buyers are great because it keeps buyers buying. But sellers are not off the hook yet. Price your home right, stage it

properly and market it effectively. Look for a follow-up post from me on how sellers can reach their goals in a buyer’s market.

This post contributed by:

Sheila Mudd-Roberts

boulderrealtor@gmail.com

720-628-8454