Denver Real Estate Market Update November 2009

So, How’s the Market, November 2009
All data taken from Metrolist, Inc, on November 6, 2009. Denver, Colorado.

October was the first month to outperform the previous years sold data in 5 YEARS! In October 2009 there were 3708 closed units for single family and condos. Twelve months ago October had 3341 units closed and two years ago in October the number of closing was 3398. We have to go back to 2005 to see an October with more closed transactions. In fact, the increase year over year was a whopping 10.98% increase over last October. There are a couple very good reasons for this positive change. 1. Last October the financial world was in major disarray and 2. The First Time Home Buyers Tax Credit worked in 2008. The chart below will show you the sold data for October of each year.



• November Active Listing Inventory is currently at 15,076 units for single family homes and is down from 18,331 from one year ago.
• The number of Active listings for Condominiums in November is 4,685 compared to last November there were 5,366 units available.
• The current 19,761 active single family and condominiums is the lowest November inventory in more than 5 years.
• The number of sold properties from Sept to October 2009 increased by 4.01%. A normal September vs. October sold data would see approximately 3% reductions.



Listing inventory continues to decline as you can see over the last four years, which helps create opportunities for those on the market. Many predict an increase in single family homes to come on the market in 2010 which will increase competition. Normally, a seasonal increase will occur in March of each year and grow through the spring. Homeowners who are considering selling now should consider these factors:

• There are fewer properties to compete with today and serious buyers are buying now. The Tax Credit has been extended and expanded to include current homeowners, which will create several new waves of buyers throughout the winter months and into the spring when the tax credits end.
• The fourth quarter brings relocation buyers into town, which can create more opportunity for those on the market.
• Interest rates are currently 4.875% for conforming loans today and more than likely will be a little higher in 2010 causing buyers to make a buying decision now versus next year.

Under Contract data is still outperforming previous years for November 2009.

• The number of properties under contract is currently at 6,925 single family and condo units.
• The number of properties under contract today is 1,131 units higher than 12 months ago. Buyers have taken advantage of the $8,000 first time home buyer credit being offered as an incentive and will continue to do so through winter and into spring. The new wave of buyer’s looking to trade up and take advantage of the $6,500 tax credit should create a domino effect in most price ranges.
• The number of properties under contract in November of 2009 is the highest recorded November in 5 years.
• This increase also shows it is taking longer for homes to close due to the advent of short sales, pre-foreclosure transactions, loan modifications and foreclosed properties dealing with absentee owners.


What should sellers do in this market?

• Know the supply and demand numbers for your price range and area. If you have 3 months supply or 3 years supply in your area, that supply vs. demand should make a significant difference in how you price and market the home.
• Your home must be the best conditioned home on the market. Make it sparkle. Buyers are looking for the perfect house.
• Consider an Owner Will Carry scenario for upper end price homes with equity. This is a creative tool for those sellers who have the ability to carry the paper for the buyer buying their property and get a return on investment. Not for all sellers to use, but a tool to get you top dollar in today’s market, if you have the ability.
• Offer a holiday special price reduction if you need to sell quickly. Specials like “10% off the Price for Thanksgiving Weekend” can create some buzz. Many extended family members encourage the purchase of a new home and sometimes help with the down payment for first time buyers.

What should buyers do in this market?

• With the extended $8,000 dollar Tax Credit for First Time Buyers and the NEW $6,500 Tax Credit for existing homeowners who will buy a primary residence, get into the mode of buying now as there will be an increase in the buyer pool causing competition for homes.
• Consider a Multi Generational Model for buying a larger home, meaning combine several generations in one family to buy jointly into the upper price range homes. The discounts on homes above a million are plentiful and combining net incomes and down payments could be a very efficient way to get a great deal on a home that you may not have considered in the past.
• Become prequalified buyer before looking. The guidelines for lending changes daily and you want to be approved before moving forward.

Denver Real Estate Market Update October 2009

So, How’s the Market, October 2009
All data taken from Metrolist, Inc, on October 5, 2009. Denver, Colorado.

When was the last time Denver real estate had a sold month that outperformed a previous month in the last 4 years? Well it happened in September of 2009. September of 2007 had 3509 homes that closed that month. Many analysts suggest that 9-2007 was the 12th month of the housing downturn in the Denver market that started in mid 2006. September of 2009 had 3565 homes closed or 54 more than September of 2007. Future months will start to show this trend against 2008 sold data, so the turnaround is now happening to Denver real estate that is backed up by the numbers.


· October Active Listing Inventory is at 15,889 for single family homes.
· The number of Active listings for Condominiums in October is 4961.
· The current 20850 active single family and condominiums is the lowest October inventory in more than 5 years.
· The number of sold properties from Aug to Sept 2009 reduced by 1.4%. A normal September vs. August sold data would see 3-5% reductions.
· The current YTD sold figures are off 14.02% from the number of properties sold in 2008.
· October 2009 Active listing inventory is 34.3% lower today than in September of 2006.
· Average Days on the Market of Single Family homes is 94 days.
· Average Days on the Market for Condo’s are 98 days.
· The average sold price in Denver for single family homes is $273,972.
· The average sold price in Denver for condominiums is $167,090.
· The average list to sale price in Denver is 96.8% of current list price. This does not reflect price reductions that may have occurred before the new sale happened.


Listing inventory continues to decline as you can see over the last five years. Many predict an increase in single family homes to come on the market in 2010. Normally a seasonal increase will occur in March of 2010, however, we predict that the residential housing inventories for 2010 will be within 3% up or down of where 2009 inventories are for the following factors:

· People are still not secure in their job positions to make a move which will keep resale listing inventories lower
· Although an increase in foreclosed properties will enter the market in 2010 and 2011, these will be priced aggressively and be spread out over a longer period of time to maximize the REO lenders position.
· There has been insufficient equity increases to allow for normal resale of property to occur, hence fewer sellers not committing to sell in the short term.
· The buyer pool is smaller today keeping existing listings on the market longer, which tends to dissuade other sellers from becoming competitors.

Under Contract data is the surprising figure for October 2009.

· The number of properties under contract is at 7495 single family and condo units. That is a 2.4% increase over September 2009
· The number of properties under contract is 980 units higher than 12 months ago. Buyers have taken advantage of the $8000 first time home buyer credit being offered as an incentive.
· The number of properties under contract in October of 2009 is the highest recorded October in 5 years.
· This increase also shows it is taking longer for homes to close due to the advent or short sales, pre-foreclosure transactions, loan modifications and foreclosed properties dealing with absentee owners.
· In addition, mortgage guidelines have elongated the contract process in both the appraisal system and the funding of a new loan system. Both have new guidelines in the last 90 days making it harder for the process to move quickly.


What should sellers do in this market?

· Is your home an extraordinary home in a terrific price position? If not, revisit your market position and goals as buyers are scrutinizing every home to determine if this is a great deal for them to buy.
· If you, as a seller, were a buyer, what would you pay for your home today? Price does matter to buyers be honest with yourself.
· Consider the “Guarantee of a Buy Back”. This is a creative tool for those sellers who have the ability to guarantee a sale to the buyer buying their property and get a return on investment. Not for all sellers to use, but a tool to get you top dollar in today’s market, if you have the ability.
· Videos are the new rage of marketing homes. Consider this as a marketing option.
· Use a professional stager or a seasoned agent to make your home sparkle. Buyers want move in condition properties.

What should buyers do in this market?

· Understand the Pricing Model before making an offer. The model includes three components, price, terms and time. Which one is the most important to you to close the transaction?
· Have a game plan for how long you want to be in the home you are buying. Knowing the goals makes it easier to buy a home and get a great deal if you are convicted in your plan.
· Include environmental inspections of Radon, CO2, Lead Based Paint, and Electro Magnetic Field inspections where appropriate.

Stay Positive!

Denver Real Estate Market Update September 2009

So, How’s the Market, September 2009
All data taken from Metrolist, Inc, on September 7, 2009. Denver, Colorado.

September data for properties under contract are showing a 3% increase from August. There are currently 7322 single family and condominiums that are under contract as of this writing. For September, this is the highest under contract stat in 5 years. What this means is that it is taking longer to close a transaction and that buyers are becoming more comfortable in their decisions to make a home purchase. The $8000 First Time Home Buyer Tax credit has contributed to this level of confidence during the last 60 days, as this credit ends on November 30, 2009. Buyers will need to contract no later than approximately October 31, 2009 to really take advantage of this housing perk.


· September 2009 active listing inventory for Single Family and Condo’s decreased 2.2% from August to September. Two of the last 4 Septembers had increased inventory month over month.
· The current 21229 active single family and condominiums is the lowest September inventory in more than 5 years.
· August sold data of 3616 units is the lowest August in more than 5 years.
· The current YTD sold data for 2009 is 29.4% below 2005, which was the peak of sales performance in Denver.
· Year over Year the sold data is off 15%. This figure will start to change to a positive number as the 4th quarter approaches and into 2010. We have seen the bottom of the sold data figures and October 2009 should reflect a rise as a result of the number of under contract properties currently listed if they close on a normal basis.
· The Denver Metro area is poised to close over 35,418 single family and condo properties for the year 2009 based upon August sales figures.
· Single Family Homes priced from 0-$250,000 have a 3.569 month supply of homes as of September 7, 2009
· Single Family Homes priced from $250,000 to $500,000 have an 8.185 month supply as of September 7, 2009. This price range is starting to shrink slowly.
· Single Family Homes priced from $500,000 to $750,000 have a 19.127 month supply of inventory as of September 7, 2009.
· Single Family Home priced from $750,000 to $1 million have a 30.77 month supply of inventory.
· Single Family Homes priced above $1 million have a 58.269 month supply of inventory as of September 7, 2009.
· Condominiums below $250,000 have a monthly supply of 6.07 months.
· Condos above $250K to $500 have a supply of over 19.064 month of inventory.
· A six month supply of inventory typically creates equilibrium between buyers wanting to buyer and sellers wanting to sell in home sales in the Denver market.

The data continues to show an improving but fragile real estate market in Denver. Job insecurity is holding back a rush of buyers into the marketplace. As the inventory continues to decrease and job stability improves, Denver is poised for real estate to improve in value. We are seeing this happen below $250,000 and the next price point of $250,000 to $500,000 is starting to experience a decrease in inventory. It normally takes 6 months to see each.$250,000 of price catch up to the market.

The telling sign of the marketplace is the buyer that can buy an upper end property. They are able to secure a lot of home at an attractive price. Although each area is a little different in what a buyer can buy a million dollar property for, discounts of 25-30% are not abnormal. Although upper end price inventories are decreasing, there are still plenty of great buys above $750,000. Take a look at the listing inventory vs. the number of sold properties projected for 2009 above $500,000 for the Denver metro area.


What should sellers do in this market?

· Price per square foot is a number buyers use to determine value. Although this may be a flawed number, make sure you know what your price per square foot is compared to your competition.
· Why should a buyer buy your home in today’s marketplace? Know the why to create the proper position for your home.
· Be the best conditioned home on the market. The competition is weak against condition, so to differentiate your home, be the best looking.
· Showings increased in August over July. If your home is not getting enough showings, ask your RE/MAX Professionals broker to help you better position your home where the buyers are showing.
· Stage your home or make your home shine on the inside for successful positioning.
· Add an incentive to your package, like prepaying HOA dues for a period of time to attract the buyers.
· Add carbon monoxide detectors to your homes vs. waiting for buyers to ask for them.

What should buyers do in this market?

· Become a “cash buyer” meaning have your loan in place to get the best prices.
· Price should be secondary to the terms a buyer can get. Know your options on price and terms and you will be better leveraged and have a more financially secure loan when buying a home.
· Eliminate lots of inclusions into your loan, as lending practices have changed and this could delay your process.
· Ask for a Home Warranty Plan as part of your offer.
· Get a copy of your appraisal before your loan conditions deadline.
· Ask for Carbon Monoxide detectors that are wired into the home as your choice of detectors.

Denver Real Estate Market Update August 2009

So, How’s the Market, Aug 2009

All data taken from Metrolist, Inc, on August 7, 2009. Denver, Colorado.

July sales increased 2.89% over June of 2009, great news! Normally, sales for July are lower than sales for June.


· July 2009 Sold Properties for Single Family and Condo’s Increased 2.89% from June.
· This is a consistent sign that confidence in the real estate is increasing.
· July 2009 sold data of 4091 is 7.71.% lower than July 2008
· July 2006 data shows 4601 single family and condos closed which is 11.08% higher than July of 2009. The current sold data is moving closer to previous years data, which is a sign of positive growth.
· Once a year over year stat for a specific month outperforms that previous year and the trend continues for 3 months, historically real estate markets are considered an increasing market. Look for this to occur over the next 6 months.
· The Denver Metro area is poised to close over 37,000 single family and condo properties for the year 2009.
· The percentage of single family and condo homes sold under $1,000,000 compared to above $1,000,000 is 99.09% of the homes sold YTD. This percentage of sold indicates less than 1% of all homes sold are over 1 million dollars. The market indicates when selling a million dollar property the pricing strategy needs to be the most competitive in the marketplace.
· Single Family homes and Condominiums priced from $500,000 to $1 Million are showing 1202 homes sold the first 7 months of 2009. This represents a 5.492% of home sales in the entire Denver marketplace.
· Single Family homes priced from zero to $250,000 now have a 3.53 month supply of inventory from July’s figures
· Single Family Homes priced from $250,000 to $500,000 now have an 8.48 month supply of inventory from July’s figures
· Single Family Homes priced from $500,000 to $1 million now have a 23.09 month supply of inventory from July’s data.
· Single Family Homes priced above $1 million now have a 57.04 month supply of inventory from July. This number has dropped by 6 months of supply from the June data.
· Condominiums below $250,000 have a monthly supply of 6.35 months.
· Condos above $250K have a supply of over 25.52 months.
· A six month supply of inventory typically creates equilibrium between buyers wanting to buyer and sellers wanting to sell in home sales in the Denver market.

Overall, the data indicates a slowly improving market. We are seeing consistent showings, contracts, and sold data for the first seven months of the year slowly increasing in Denver each month.

The number of homes under contract has remained constant with 7110 single family and condo homes under contract for August 2009. Compared to the previous four years, August, 2009 has a higher under contract number over 2 of the previous three years.


· There are several reasons for these yearly numbers to be fluctuating the way they do, but primarily, lending guidelines, short term economic conditions and job stability affect under contract numbers and looking back on August of 2006, 2007 and 2008, the U.S. had a unique set of circumstance affecting the August to October Under Contract numbers of each year. Make yourself aware of the past history to predict the future of real estate and do not over react to a single number as that is a snap shot of the moment, not a trend.

Inventories in Denver are still the news. Currently there are 21706 single family and condo homes active on the market on August 7, 2009.

· This is a decrease in inventory of 18.84% from 12 months ago.
· The inventory from July to August showed a zero increase. Normally August inventory would rise from July, but it has not in 2009.
· Since April of 2009 until today, the single family inventory has grown less than 1% over a 5 month period. This lack of increase in inventory is the market correcting in front of our eyes.
· There are only 16,000+ single family units for the entire marketplace and some of those are distressed to the point they are not really active listings for the normal buyer.

What should sellers do in this market?

· Know what your supply and demand is on your home. Buyers are using this to justify their offers.
· Make sure you have a compelling story about your property that will cause a buyer to buy?
· Be the best conditioned home on the market. The competition is weak against condition, so to differentiate your home, be the best looking.
· Talk about today’s buyer mentality with your REMAX Professionals broker to best understand the psyche of the buyer buying. They are out there buying homes; you just need to attract them.
· Have Property Brochures better than your competition in your home. This will allow the buyer to remember your home instead of the competition.
· Add an incentive to your package, like paying for closing costs, rate buy-downs, or prepaying HOA dues for a period of time to attract the buyers.
· Price, Terms, and Time are all factors in providing a package for buyers. Are you sending clear message what that package is about your home?
· Add carbon monoxide detectors to your homes vs. waiting for buyers to ask for them.

What should buyers do in this market?

· With New Lending Guidelines that started August 1, 2009, each buyer needs to be better prepared by knowing the down payment and closing cost financial package they want. Delays in lending will occur if the buyer keeps making changes to their loan package.
· Price should be secondary to the terms a buyer can get. Know your options on price and terms and you will be better leveraged and have a more financially secure loan when buying a home.
· For those buyers who are owner occupied looking to build equity by fixing up a foreclosure property through a contractor, look to the FHA 203KS rehabilitation loan package as one to consider when needing repairs up to $35,000 of interior improvements.
· Ask for Carbon Monoxide detectors that are wired into the home as your choice of detectors.

Denver Real Estate Market Update July 2009

So, How’s the Market, July 2009

All data taken from Metrolist, Inc, on July 6, 2009. Denver, Colorado.

June 2009 had the Highest Increase in Sold Properties from May to June than any year in the last 5 years!

· June 2009 Sold Properties for Single Family and Condo’s Increased 15.01% from May to June.
· This is the single largest June increase over May in more than 5 years.
· In June 2005 the June over May increase was 14.24%, which represented the year with the most closings in Denver history.
· Although the June Sold data numbers are smaller than previous years, the increases are starting to catch up to earlier years totals and should surpass them later in 2009.
· The Denver Metro area is poised to close over 37,000 single family and condo properties for the year 2009.
· The percentage of single family homes sold under $500,000 compared to above $500K is 92.56% of the homes sold YTD. This percentage number is declining from the beginning of the year indicating some properties above $500,000 are starting to sell at a faster rate than earlier in 2009.
· Conversely, condo’s that are sold and closed below $500,000 make up 98.21% of all condo sales. This indicates the market is price sensitive above $500,000 for condominium units and the buyers are not buying this product at this time.
· Single Family homes priced from zero to $250,000 have a 3.44 month supply of inventory.
· Single Family Homes priced from $250,000 to $500,000 have an 8.5 month supply of inventory.
· Single Family Homes priced from $500,000 to $1 million have a 23.2 month supply of inventory
· Single Family Homes priced above $1 million have a 63.1 month supply of inventory.
· Condominiums below $250,000 have a monthly supply of 6.25 months. This indicates the buyers buying are looking to single family homes vs. condos within this price range. However, look for condo’s priced below $250,000 to be the next boom price range as buyers will not find what they are looking for in single family homes below $250,000.
· Condos above $250K have a supply of over 27 months.
· A six month supply of inventory typically creates equilibrium between buyers wanting to buyer and sellers wanting to sell in home sales in the Denver market.

What these numbers indicate for the first half of 2009 is that buyers are plentiful who are looking for single family homes priced below $500,000. Any properties outside of these price parameters need to position themselves aggressively now to take advantage of the peak selling time.

The number of homes under contract has remained constant with 7502 single family and condo homes under contract for July 2009.

· Denver is still experiencing a bit of a fragile marketplace as July under contracts decreased from June by 90 units. Not a big concern, but one to watch to make sure the pipeline of buyers remains in an upward growth.
· Four out of the last 5 years has seen July under contracts decrease from June. This is an abnormality each year and typically August will be higher than July.
· The percentage of under contract properties for single family is shifting a little higher each month, indicating the buyers’ willingness to buy properties above $500,000. We may be seeing the first uptick of homes selling faster that are priced above the conforming loan rates of $417,000.

Inventories in Denver are still the news. Currently there are 21709 single family and condo homes active on the market.

· This is a decrease in inventory of 19.1% from 12 months ago.
· July inventory increased 162 units over June of this year or a minimal .752% over June. Again an indication that the Denver marketplace is already on the upswing of improving year over year as we typically see inventory increases in July of upwards of 4% or more over June of each year.
· Since April of 2009 till today the single family inventory has grown only 1.1% over a 4 month period. This is the smallest increase of spring inventory in 10 years in the Denver area.
· There are only 16,000+ single family units for the entire marketplace.

What should sellers do in this market?

· Clearly Understand the Pricing Strategy Model of Price, Terms and Time.
· Know what the supply and demand is on your home.
· Position your home as the first one to look at in your neighborhood.
· Do not reject low offers without a counter; reposition your home in the buyers’ eye.
· Make your home look like a model for every showing.
· Add an incentive to your package, buyer closing costs, bonuses, rate buy-downs, prepaying HOA dues for a period of time, etc. to attract the buyers.
· Take your equity later rather than now with owner carry terms that will attract buyers in a difficult lending market for upper end properties if you have the ability.
· Add carbon monoxide detectors to your homes vs. waiting for buyers to ask for them.

What should buyers do in this market?

· Know the Market you are buying within. If you are buying a more expensive home, the only competition may be you. This is where the significant deal making is occurring in Denver today.
· Get pre-approved for your loan. Make yourself look like a cash buyer with few contingencies to get the best deal.
· Terms are sometimes more important than a low price; have a pricing strategy to give you the best position.
· Lock in your rates as the market is volatile with rates moving around.
· Be prepared to be patient on certain available homes, as short sales, foreclosed properties or sellers with little or no equity have trouble getting buyers quick answers.
· Ask for Carbon Monoxide detectors that are wired into the home as your choice of detectors.

Here are the latest stats from RE/MAX Professionals, already starting to show the benefits our new merged company.

· In June 2009 the new combined company put 514 homes under contract and closed 614 transactions. The entire market closed 3976 homes, putting RE/MAX Professionals for the month of June at 7.7+% market share, a huge number for a single company.
· The company average closed price for June was $301,239. An increase of over $60K from the marketplace.

Denver Real Estate Market Update June 2009

So, How’s the Market, June 2009

All data taken from Metrolist, Inc, on June 4, 2009. Denver, Colorado.

Reducing housing inventories in the Denver local single family and condominium homes hits a nine year low!


· Since January 2009 single family home inventory priced between 0 and $250,000 has dropped 13.47%.
· This is 777 fewer units available in the starter price range today vs. January of 2009, when typically the marketplace would experience an increase in inventory this time of year.
· There is a 3.24 month supply of homes under $250,000.
· Prices have risen approximately 3% since the first of the year in the zero to $250,000 price range in the Denver Metro area.
· Conversely, single family homes priced above $750,000 in the entire Denver Metro area have a total active of 2,618 homes.
· There is upward of a 4 year supply of upper end homes as of today in the entire marketplace, but remember some neighborhoods outperform others and sellers need to check their local inventory.
· Upper end priced homes have more ability to stay the course and this inventory will start to decrease at a fast rate over the next 12 months than what the marketplace is currently experiencing the previous 12 months in the upper end price ranges.

The number of homes under contract has increased 7.28% in one month. The total number of single family and condos under contract stands at 7,592 total units. This represents the highest number of homes under contract since July of 2008.

· 92.77% of all the properties under contract were listed below $500,000.
· It currently is taking longer to process the entire transaction and this under contract number should continue to grow to even higher number over the summer due to more buyers and longer transaction periods.
· Homes going under contract are the leading indicator of the market.
· With the current totals of homes under contract, sold and closed properties will have an increase later in 2009 and into 2010.

Homes that have sold and closed for May of 2009 recorded an 11.8% increase over April of 2009. This represents a below average seasonal trend. In 2008 the increase of the number of closings from April to May was 17.8%, in 2007 it was 15.1% in 2006 it was 18.42%. Sold data is always a lagging indicator of the market and the Denver marketplace will experience a more aggressive percentage increase in the 3rd and 4th quarter of 2009 vs. 2008.

· Number of Sold Properties in May of 2009 was 22.01% lower than May of 2008.
· However, there has been a 71.39% increase in sold properties since January of 2009. This is substantially above average from past years because the number of sold properties started at a lower level. Good news though because every market place that rebounded in the past 30 years started with large increases in sold data of a six month period in the 70% range.
· This should not discount the fact that the Denver marketplace is taking hold and improving even though the number of sales is off from previous years.
· 94.08% of all properties sold in the first 5 months have been below $500,000 in our marketplace.
· Properties above $1.5 Million have had a total of 38 totals sales in the entire Denver market for both single family and condominiums in the first 5 months of 2009.
· On the starter price ranges there has been 9421 homes and condos sold in the first 5 months of the year.

What should sellers do in this market?

· Clearly Understand the Pricing Strategy Model and Be Priced Strategically.
· Know that sellers need to position their home with the understanding of the HVCC appraisal process.
· Buyers want compelling deals on homes; understand how to give them a deal without losing all your equity.
· Do not reject low offers without a counter; reposition your home in the buyers’ eye.
· Unattractive offers are not a personal attack; if you were buying you would make your wish list too.
· Make your home sparkle for every showing.
· Try making reverse offers to buyers who are on the fence.

Prestige Real Estate Group Market Update May 2009

Prestige Real Estate Market Update “So, How’s the Market, May 2009” All data taken from Metrolist, Inc. on May 5, 2009.

• Current active inventory is at a 6 year low with single family and condo active units totaling 21454 down from 22537 one month ago and a 21.26% reduction from May of 2008. This is also the first time in a decade that May inventory was lower than April inventory for any given year.
• Homes under contract are up 9.28% over April of 2009.
• The number of homes closed in April of 2009 was 3.48% increase over March of 2009.
• In 2009, 69.02% of all the homes sold in Denver have been priced from zero to $250,000.
• Home priced between $250,000 and $500,000 made up 25.13% of the homes sold in Denver.
• Conversely homes priced above $500,000 in the entire Denver metro area accounted for 5.85% of home sales in 2009.
• The market is seeing multiple offers in the lower price ranges indicating price appreciation is occurring now at the entry level prices which will translate to more sales in the spring and summer.
• $8000 Tax Credit for First Time Homebuyers will give a jump start to homes priced under $400,000.

This chart shows the number of homes that are on the market in the month of May for each year. Denver is experiencing a declining inventory market, especially in the starter price ranges. This means multiple offers and appreciation on starter homes.

When a seller can sell they move up. It takes about 6 months for every $250,000 in price increase to start to sell faster. Currently there is a 3.62 month supply of homes below $250,000 causing buyer to move faster on making offers and increasing prices.Inventory still drives real estate; look at the decrease from April to May of this year. First time in 10 years inventory has decreased from April to May.

Why should buyers buy in today’s real estate market?
• Become a pre-approved buyer. With lending guidelines changing daily, being approved will allow you to look like cash to sellers which helps you make a deal.
• Plenty of inventory in upper price ranges. This is where the largest discounts in prices are occurring.
• Real estate is a finite product that will rebound in value. Buy now and take advantage of your buy low, sell high ability today.
• Lock in your low interest rates that are available today.
• Ask for terms from sellers to meet your financing needs.
• Ask for a Carbon Monoxide detector with your inspections at the seller’s expense to install before closing. Make sure you ask for the detectors that are wired with the other ones in the home.
• If you are a patient buyer, short sales and foreclosures will afford you the lowest prices to buy homes, but you must be knowledgeable of the short sales process to really take advantage of this opportunity.

Why should sellers sell in today’s real estate marketplace?
• If you own a home priced below $300,000, your chances are improving daily to sell for the highest possible price in 3 years.
• Selling now gives you the ability to buy a home at a discount.
• Do not over react to any offer. Buyers are like any other commodity. When there are fewer of them, you must be open-minded to them all. Doesn’t mean you have to accept their offers, just be open to looking at all and countering them all if necessary.
• Hire a Professional Stager to help your home be the best conditioned home in your area.
• Appraisal guidelines have changed May 1, 2009. Consider getting your home appraised to allow you to best position the home and offer the buyers a sensible way to make an offer.
• Compare your homes to proven entities not listed entities. This will create less stress in the sales process, as that is what buyers are looking at to make an offer.

Prestige Real Estate Group Market Update April 2009

Prestige Real Estate Market Update “So, How’s the Market, April 2009” All data taken from Metrolist, Inc. on April 6, 2009.

• Current active inventory is at a 6 year low with single family and condo active units totaling 21537 up from 20884 one month ago and a 19% reduction from April of 2008.
• Month over month the inventory only increased 653 total units from March. A small number for spring time home inventory growth.
• Homes under contract are up 9.63% over March of 2009.
• The number of homes closed in March of 2009 was 31.98% better than February of 2009. This is the largest increase in number of homes closed from February to March since 2004.
• In 2009, 69.95% of all the homes sold in Denver have been priced from zero to $250,000.
• Homes priced between $250,000 and $500,000 made up 24.1% of the homes sold in Denver.
• Conversely homes priced above $500,000 in the entire Denver metro area accounted for 5.94% of home sales in 2009.
• The market is seeing multiple offers in the lower price ranges indicating price appreciation is occurring now at the entry level prices which will translate to more sales in the spring and summer.
• $8000 Tax Credit for First Time Homebuyers will give a jump start to homes priced under $400,000.

This chart shows the number of homes closed in the month of March for each year. Although 2009 shows a decline, look at the chart below indicating the increase from February to March of each year to see a trend that exceeds previous years.

In 2009, the number of closing increased by 31.98% from February to March.
Inventory still drives real estate; let’s see how it has decreased in April of each year.

What can buyers do to take advantage of today’s real estate market.

• Become a pre-approved buyer. With lending guidelines changing daily, become approved and look like cash to sellers.
• Sellers in upper price ranges are looking for buyers, this is where the deals are.
• Real estate is a finite product that will rebound in value. Buy now and take advantage of your buy low, sell high ability today.
• Lock in your low interest rates that are available today.
• Ask for terms from sellers to meet your financing needs.
• Ask for a Carbon Monoxide detector with your inspections at the seller’s expense to install before closing. Make sure you ask for the detectors that are wired with the other ones in the home.
• If you are a patient buyer, short sales and foreclosures will afford you the lowest prices to buy homes, but you must be knowledgeable of the short sales process to really take advantage of this opportunity.

What should sellers do in today’s market?

• Do not over react to any offer. Buyers are like any other commodity. When there are fewer of them, you must be open-minded to them all. Doesn’t mean you have to accept their offers, just be open to looking at all and countering them all if necessary.
• Be a serious seller and throw your bait to where the fish are biting. Pricing too high will cause delays for you to move on and get a terrific deal on your next purchase.
• Be the best conditioned home in your area.
• Create a financing package for the type of buyer that would consider your home. You do not always have to lower the price. Be creative in your financing package to sell your home.
• Compare your homes to proven entities not listed entities. This will create less stress in the sales process, as that is what buyers are looking at to make an offer. If you beat them to the punch and price your home accordingly, buyers will buy at your dollar versus negotiating down as they will fear losing your home to another buyer. Avoid the list high and negotiate down, as this will hurt your ability to sell and get offers.

So, How's The Market March 2009

So How’s the Market, March 2009 All data taken from Metrolist, Inc on 3.4.09

The difference between a Real Estate Number and a Real Estate Trend is a significant difference in reporting where the real estate market is and where it is going. Know the difference and it will help you help buyers and seller’s best understand how to take advantage of today’s Denver real estate market.

In the most recent past months and what will be reported for March of 2009 you will see people report a number to give their description of the current market. That number will be the number of sold properties is off 22.52% from February of 2008 to February of 2009. These are accurate numbers for the moment of time someone has taken the data to report.

A number is like taking a picture. Look back at a picture you have of yourself from the past. Has your looks changed? But what really has happened between the picture of yore and the present you? The space between the two is a trend. You didn’t get wrinkles over night or in some cases lose all your hair overnight. Trends help you project where the market is going, a picture can only tell you what happened at the time of the picture.

Do not let the statistic of the moment blind you of the trend the market is in?

Sold data is off 22% year over year. Why? What happened to the economy in the fall and early winter set a stage for home buyers to wait on the sidelines till something positive happened, which it didn’t. For many industries, sales in November, December and January stalled. Hence the lower number of home sales for February 2009 is a pure reflection of the previous 3 months, but not a trend in real estate.

The trend of sold data over the past 6 years is interesting to reflect upon to predict what 2009 will bring to Denver.

February sales have had a decline from 2006 to today. We look to 2006 as being the recipient of aggressive lending practices in 2005. As 2009 moves along you will see 2006 sold data to start to flatten out as those lending practices were recognized in August of 2006 as being inflationary in some markets. Denver, however, did not experience such inflationary housing numbers, causing national surveys, like Standard and Poors/Case-Shiller Report, to indicate Denver will be one of the leading metropolitan areas in the U.S. in housing for 2009 and 2010. The Denver real estate trends are as positive as any market reported in terms of stability and growth in real estate in these national surveys.

What this sold data trend tells us is that Denver is primed to experience an appreciation not necessarily enjoyed in Denver the early part of 2000 decade. This is actually a blessing in disguise for Denver. Sold data is the picture of today, but the trend of lower inventory, higher buyer confidence in homes being put under contract indicates a trend that the sold data will start to tick up this spring and summer.

The next trend to consider is where does the number of available inventory stand as of March of 2009. The picture of a gloomy market that is a result of a picture being displayed is not the trend in Denver.

In March of 2009, there are 15861 single family homes on the market and 5023 condo or attached homes on the market for a total of 20884. One year ago the total inventory for both single family and attached homes stood at 25416 units. So over one year the inventory dropped 20.54% and that inventory has trended lower the last 5 years. March inventory of homes in Denver is the lowest in 6 years.

This trend tells us that the number of available properties is at a lower current supply than previous years which will cause an increase in the demand for those fewer properties on the market. Hence, increasing buyer activity in the coming months for Denver is a very likely outlook based upon supply and demand of homes. Considering the current economic world, real estate in Denver has frankly performed pretty well against other products during the slowest of months.

The number of homes under contract stands at 5907 up from 5559 in March of 2008 or a 6.26% increase in the number of buyers putting homes under contract in 2009. Is this a trend or a picture? It’s a picture, but does help in seeing the trend.

In 2005, the year which recorded the highest March under contracts in the history of Denver, indicates something happened then that didn’t happen in other years. As we now know, fraudulent and mismanaged lender practices created more buyers than really should have been buying. This didn’t just happen in Denver, but nationwide lending practices caused homes sales to skyrocket and allowed the supply and demand to be artificially changed. The difference Denver experienced in 2004 to 2006 was that the average price of a home in Denver did not increase as rapidly as other markets around the U.S. giving Denver a different trend analysis than what is currently being pictured, portrayed or reported from the national media on housing.

Finally the trends indicate some very different predictions for the future based upon the price range you are trying to measure. Homes in the zero to $250,000 price range currently represent 41.72% of the total inventory available in Denver, but over the last 12 months made up 65.43% of homes sold. This makes for a monthly supply of 3.85 months supply of homes. This trend of monthly supply has decreased over the last 26 months in this price point indicating the trend should be to have an increase in price at the starter home prices. We are now seeing multiple offers on well priced starter homes, giving the owners of these properties more dollars than in the past. When that trend occurs in rolls up the price ranges and take 3 to 6 months for every $100,000 of price range to catch on fire. So by July, homes price below $500,000 will start to move at a faster pace then previous years. Once that occurs, price increase follows.

Conversely the upper price points of $1 million to $1.5 million, for example, tells of an inventory of 739 current single family and attached homes and the number of properties sold the last 12 months is 315 single family condo’s sold or a 28.15 month supply. Historically upper end priced property owners have more staying power in high inventory times causing the inventory to drop at more rapid rates than lower priced inventory supplies. Although some buyers bought McMansions when they shouldn’t have, this inventory will tend to level off at a faster rate than lower price ranges. With high loan balance financing being more available in the coming year, which has not been available for more than a year now, this upper end inventory from $750,000 and above offers the best discounts in the Denver market place in terms of price, but the opportunity will only exist at these higher inventory levels. Once the levels become more modest, the opportunities will disappear making today a perfect time to sell your existing home if you are priced below $400,000 and get a discount at an upper end priced home above $750,000.

What should buyers do today?

• Consider making a move up as the old adage buy low and sell high is met when selling below $400,000 and buying above $750,000.
• Keep your current residence and make an offer to lease option an upper end property. This will allow you to get in at today’s prices, and if for some reason the price you enter at today is not good enough for you at the end of your option, you haven’t lost anything.
• Get pre-approved if you are buying below $417,000. The competition for buyers is greater at this point and the sellers are scrutinizing the qualifications more than before.
• Look to alternative financing methods in upper price range homes. The pricing strategy you employ needs to consider, price, terms and time to make the entire transaction more advantageous to your situation.

What should sellers do today?

• If your home is in the starter price ranges and you want to move up, get it on the market now while the inventories are low.
• Homes that are at a market value of $500,000 or more need to consider alternative financing methods to attract buyers. You cannot keep dropping the price, but instead offer more attractive terms to capture today’s buyers.
• The information pipeline to buyers is enormous. Couple aggressive marketing with market experience to coordinate a negotiable price acceptable to you. Do not rely solely on dropping the price to be your defense in the market.
• Be the best conditioned home to get top dollar. There are too many deals out there for buyers who need to fix up the property themselves. You do not want to compete with that, but you want buyers to DESIRE your home, not TOLLERATE your home to get the best price.

Good Selling!.

2009 First Time Home Buyer Tax Credit FAQ's

2009 First Time Home Buyer Tax Credit FAQ's.

How could this effect my mortgage payment?

• Assuming you are eligible for the full $8,000 refund it would be like reducing your monthly payment by $667 dollars a month!

• Example: You purchase a home for $200,000 and use the FHA program to finance a $193,000 mortgage at 5% with a payment of principle and interest $1,036/month.
• In theory if you took the full $8,000 refund and put it towards your monthly mortgage payment it would be like paying $370 a month for the first year!


Who is Eligible?

• First-time home buyers purchasing any kind of home - new or resale - are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1, 2009.
• For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner.

How do you define a first time home buyer?

The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.

How is this different from the 2008 tax credit?

The most significant difference is that this tax credit does not have to be repaid. Because it had to be repaid, the previous "credit" was essentially an interest-free loan. This tax incentive is a true tax credit. However, home buyers must use the residence as a principal residence for at least three years or face recapture of the tax credit amount. Certain exceptions apply.

Is a tax credit the same as a tax deduction?

No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $8,000 in income taxes and who receives an $8,000 tax credit would owe nothing to the IRS.

A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $8,000 in income taxes. If the taxpayer receives an $8,000 deduction, the taxpayer’s tax liability would be reduced by $1,200 (15 percent of $8,000), or lowered from $8,000 to $6,800.

How much will I get back?

The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even the entire amount of the refundable tax credit.
For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that the taxpayer qualified for the $8,000 home buyer tax credit. As a result, the taxpayer would receive a check for $7,000 ($8,000 minus the $1,000 owed).

Are there income limitations?

The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.

Does new construction qualify?

Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been "purchased" on the date the owner first occupies the house. In this situation, the date of first occupancy must be on or after January 1, 2009 and before December 1, 2009.

Why should I buy now?

Mortgage rates are at historic lows.
Housing prices have come down over the past 2 years and it is a buyers market.
The government has never implemented a program like this - it is like giving you a check for up to $8000!
Who can assist me?

Let Prestige Real Estate Group and Affiliated Financial Group help you take advantage of this once in a lifetime program.

So How’s the Market, February 2009

All data taken from Metrolist, Inc. on February 5, 2009

Listing inventory is standing at 20492 single family and condo units for the Denver Metro area. This represents a 19% decrease from February of last year. Typically we would see inventory start to rise in the late winter and spring, but the growth from January to February of 2009 only increased 1659 units or an 8% increase when in past years we have seen double digit increases in the inventory from January to February.

Inventory and contracting are the leading indicators of where the marketplace is headed. Let’s take a look at the February inventories for the last six years to show where the trend has been.

As you can see, the current inventory is at a six year low for single family and condos.

What’s even more impressive is the inventory from zero to $250,000 currently stands at 5790 single family and 3026 condos active for a total number of 8816 total units. The last 12 months in this price range has experienced a total number of 27374 total units closed. This represents a meager 3.864 months supply of homes. Prices are rising in this price point as we write this and our estimate would be to suggest that prices will go up .15% per month or an average of $300 per month for the next 6 months or so on a $200,000 home. Denver will experience appreciation in lower prices for the first time in 4 years and buyers wanting to buy, now is a terrific time to capture the wave of appreciation that will start with recorded closed sales in March.

The inventory from $250,000 to $500,000 is also at a level that will ultimately cause prices to improve for the homeowners but will remain more at the current prices till June. The total inventory is 6627 units in this price point and the last 12 months have experienced 11,578 units closed or a 6.86 month supply. For prices to affectively rise, the supply will need to be between 4.5 month and 6 months to cause buyers to have a sense of urgency. Although on the cusp of doing so in this price point, buyers closer to the $500,000 range will experience more choices than those homes price below $300,000.

Homes priced above the $500,000 range are still competing with higher inventories and some sellers are continuing to discount their prices. With lower interest rates and seller assistance there are opportunities for buyers to move up into the higher ranges. The higher price ranges will gain little appreciation for the next 12-18 months but the opportunity for the move up buyer to buy more house than they thought was available is now here for the taking. These will be outstanding long term investments for a buyers financial future. Sellers will continue to compete for these buyers through price and incentives.

Know the inventory when buying a home, as that will give you a good looking glass into the future.

Know the inventory when selling your home also, so you don’t under price or over price your home based upon competing inventories and lose out on the wave.

The second leg of determining market conditions are those properties that are currently under contract.

As of today, 5337 single family condo homes are under contract in the Denver metro area. This represents a 15%+ increase over January. We would expect to see increases this time of year, but normally they would be in the 8% to 9% range. So 2009, appears to be breaking loose with buyers entering the market. We will watch this trend in future months to see if this continues and establishes a positive trend for the year.

February of 2009 is also the second highest under contract recorded month in the last 6 years. Last year the Denver area had 5559 homes under contract in February, up from 5216 in 2007, 5128 in 2006, 4192 in 2005 and 4274 in 2004.

Why are people buying in today’s market?

1. Interest Rates - The lowest in 41 years.
2. Foreclosure Advertisements – Brings buyers out because of the greed factor of getting a deal. Once a buyer sees the condition and sees a re-sale home in better condition at similar pricing, the choice becomes obvious.
3. Short Sale Advertisements – Brings buyers looking for the same deal as foreclosure.
4. Inventory is dwindling in lower price ranges and first time buyers do not want to get squeezed out of the potential investment gain.

Look for increased buyer activity putting homes under contract in upcoming months as interest rates continue to stabilize in the 4 to 5% range for conforming loans.

The sold data is the lagging indicator. In the Denver metro area in January, 2017 single family and condo homes closed. This is down 21.46% from one year ago. The main reason for this was the economic uncertainty that occurred in October through January. With new stimulus packages for the economy and housing, people’s confidence in the Denver market will allow them to start buying homes.

Here’s why.

1. Job stability in Denver has been steadier than the national economy. So long as jobs stay strong and Denver unemployment stays below 6.5%, housing in Denver will be a great buy this year.
2. It takes 90 days for under contract data to start to reflect into the sold data. What was written in January and February will close in March and April. The market will experience month over month gains rapidly the next four months and toward the middle of the year to outperform 2008. Once that news happens, markets turn fast and buyers do not want to miss the opportunity.
3. Denver’s economy is more stable than the nation by many economist predictions for 2009.

What does this mean for buyers and what could they do to improve their net worth today?

· Consider buying an investment home below $250,000. These will go up in value this year.
· Move up from your existing residence to a home in an upper price range. This will go up in value over the next 12-18 months and really make an impact on pricing in 3 years.
· Take advantage of low rates.
· Learn how a $15,000 tax deduction in the purchase of a home could save you thousands on your income taxes for 2009.

What does this mean for sellers or homeowners not selling to improve wealth?

· Consider refinancing your higher rate mortgage to a lower rate mortgage and shorten the amortization schedule to pay of the loan sooner. This builds equity, which builds wealth.
· When selling, make your home stand out from the rest by being the best conditioned and fairly priced on the market. buyers are looking for the perfect home at the right price.
· Lower priced homeowners are in the perfect position to sell high and buy a move up home.

Positive signs for 2009

How's the Market - January 2009

So How’s The Market, January 2009 All information taken from Metro list, Inc. 1.6.09

Great news…January listing inventory is at a low not seen in 6 years in the Denver Metro area. The current single family and condo total units that are active on the market as of 1.6.09 is 19,833. This represents a 19.03% reduction from January of 2008 and a 2438 unit decrease from just one month ago. This total active inventory represents a 5.57 month supply of homes.

This is the first time since January of 2006 that Denver has experienced a monthly supply lower than 6 months for the entire marketplace. However, the better way to look at this data is to break up the price ranges to show the difference in what is happening at lower end prices and upper end prices.

Looking at the price range between 0 and $250,000 there are 5707 active single family homes and 2886 condo units active on the market for a total of 8593 active homes in the 0-250K price range. There were 20303 single family homes closed in this price range and 7290 condos closed for a total number of sales of 27,593. Taking the 8593 actives divided by the 27593 sold properties = .31 X 12 = 3.74 month supply of homes between 0-$250K.

There is no question prices will rise in this lower level starting this month. Here’s the inventory of January for the past 6 years.


Let’s go to the price range of $250,000 to $500,000 to see the difference in the market conditions. The number of single family homes that are active between 250K and 500K are 5256 and active condo units are 1053 for a total active listing inventory in this price range of 6309. The total number of sales is 10769 SF and 1039 Condos for a total of 11808 homes sold. Doing the same formula we get a 6.41 supply of homes. This would indicate that this price point in the next 6 months will start to experience price increases as the inventory reduces below 6 month supply. If the market inventory increases in this price point for whatever the reasons, i.e. foreclosures, desperate sellers, etc, as this makes up the majority of the homes in the Denver area, it may take to the 3rd or 4th quarter of 2009 to see appreciation, but it is coming and now offers a great time to buy.

The price range from $500K to $750K is a little less active than below $500,000 as a lot of people have seen the past few months. This makes for a perfect time for buyers to move up as they can sell their home priced below $500k for closer to market value and be able to pick up an upper price range home with a really low interest rate. Here’s why?

The current single family inventory is 1891 and condo active units are at 371 in the $500K to $750K price range. The number of total sales in the price point is 2048 or a 13.25 month supply. This supply of over one year will start attracting buyers that can move up and get in at very low interest rates if they have the down payment to stay in a conventional loan.

By considering obtaining a loan at $400,000 today a buyer will be offered a 4.5% interest rate. This would create a payment of principal and interest of 2,026. When the rates were 6% the monthly payment would have been $2398 per month or a difference of $372 dollars per month. What this means in terms of qualifying for a loan is that the monthly income could be reduced by $1200 dollars to qualify for a loan under today’s lower rates. This only creates a larger savings spread as you go up in price.

Another reason for a buyer to buy now is that even though a home priced at $800,000 may not appreciate much in 2009 and their current resident at $400,000 may appreciate at 3% the potential appreciation in the $800,000 home will be better over a 5 year period. Take $400,000 times 3% or $12,000 grand and do simple interest to equal $60,000 increase over 5 years. The same home at $800,000 at 3% = $24,000 and do simple interest for only 3 years since the next two might not give the buyer the appreciation in the early years due to the inventory, but still equals $72,000 of appreciation. It is a much better time to move up now, then before the $800,000 home starts to appreciate. Pass this simple idea around and in 5 years buyers who buy today will have built wealth into their portfolio.

The next price point of $750K to $1 million will expand a buyer’s ability for future appreciation. Total inventory in this price point is 1077 SF and condo homes available and there were 656 homes closed for a 19.7 month supply

Homes above $1 million will continue to lag, but you will see this inventory decrease a little faster than you would expect because people who currently reside in this price point have different financial options and typically will ride out the market versus stay on the market. Watch for this price point in 2009 to decrease a slow but deliberate rate.

The number of homes under contract in January of 2009 is 3.96% higher than January of 2008. The total number of 4652 homes under contract is moving in the right direction, but will still need to catch up before we can call the market to be on fire. Once the number of homes under contract reaches 6500 units, Denver will exhibit appreciation starting with the lower price ranges first.

Finally, the sold data for 2008 was off 6.47% from 2007. An interesting piece of data to consider is that December of 2008 had 2772 homes closed and November 2008 had 2602 homes closed. This is the first time in 6 years that December outperformed November and that December of 2008 was only 22 units shy of the 2794 closed units in December of 2007. The real trend to watch is when a year over year sold data increase for each month. The Denver market will be able to blow the whistle on a resurging market when you have a current month outperform the sold data from a previous year. A trend is a full 3 months in a row before we can really toot the horn, but we suspect the number of sales for 2009 will start to outperform the number of sales for 2008 each month starting early in the year. Here’s the last 5 years of total sales for single family and condos for each year.


What should sellers be doing now to make this a successful market for them?

· Consider pricing your home at or right below market value to attract the most attention. Do not worry about the low ball offers that may come in, but consider the number of buyers that will consider your home to be a deal which allow you to sell in 2009 and look for other opportunities.
· Make your home the best kept property in your price range and market.
· Price your home on the search numbers, zero, 25, 50 and 75. What this means is the buyers search properties in computer numbers like 200,000 to 225,000. This pricing strategy allows for multiple search criteria. So if your home is priced at $300,000 the buyers searching $275,000 to $300,000 pick it up and the buyers searching $300,000 to $325,000 pick it up. When interest rates drop buyers tend to search one price level above their qualification price to see what they can get. Get your home positioned correctly.

What should buyers be doing now?

· Move up to a home you really want, but have been hesitant to move due to the uncertainty of the marketplace.
· Take advantage of the lowest interest rates in 40 years
· Consider asking the seller to pay for your closing costs to assist in your purchase. The seller can pay up to 3% of the closing costs on most loans.

How's The Market December 2008?

So, How’s The Market? December 2008. All Data taken from Metrolist, Inc. on December 3, 2008

You could not pick a better time to buy a home than right now. There is a perfect housing storm brewing and here are the parts of the equation to focus on.

1. Inventory. The inventory on December 3, 2008 for single family homes and condominiums is standing at 22,271 homes available to buy. This represents a 19.12% decline in inventory over December of 2007.

2. Housing Interests hit a low of 5.25% for a 30 year conforming fixed rate mortgage this past week. The rate will fluctuate between this low number and 5.75% for the short term. These are extremely attractive rates for buyers.

3. Job growth in the Denver metropolitan area for 2008 was up over 2007 and will again grow in 2009.

These three factors are a clear indication that the price of homes in Denver will cause more buyers to enter the market resulting in home appreciation for 2009.

The decline in inventory is the big story. Here are the December inventory figures for the last 5 years.


You can follow the chart to show that we are at a 5 year low for inventory for this time of year, which will result in buyers having fewer choices in their housing search. At any time buyers do not have sufficient choices they tend to move faster toward buying the first house that fits their needs. This increase in activity causes properties to move faster, hence having prices rise because of the increased demand.

The second number to consider is the properties currently under contract. The economic woes of the past 90 days would make you think that buyers are no longer buying homes. The current number of properties under contract in the Denver Metro area do not reflect a position of economic concern. In fact, the number of homes that are under contract this December is 6.96% higher than it was 12 months ago. That increase supports the fact buyers in the Denver marketplace are secure in moving forward with their housing needs and not waiting for some economic bailout. Currently there are 5,396 homes placed under contract and 12 months ago it was 5045 or a 351 unit increase year over year.

The lagging sold data is one area that has not yet responded in a positive fashion. We see that it will be March before the Denver market starts to consistently outperform the previous years’ data.

In November of 2007 there were 3008 single family and condo units closed. In November of 2008 there were 2602 units closed. This 13.5% reduction in sold data year over year can be attributed to three factors.

1. In September and early October when these contracts were first written, the financing hurdles were harder to leap then they are today. In fact, interest rates hovered in the mid 6% range in September and October, which caused buyers to slow their buying process down for 30-45 days. This is reflected in the lack of closings for this November and will more than likely follow the same trend in December. The more flexible mortgage market today will show some positive closing results in 2009.

2. We did not see a reduction in gas prices till October. November closings are written in September and October. Outlying housing areas were hurt because buyers were overly concerned about the distance to cover to get to work and what the cost of their trips might be. Gas is now at a 4 year low in the fastest drop of that commodity in US history. Buyers are now starting to explore the suburban markets more as the prices are more attractive than the urban markets and the buyer pool who avoided those markets while gas prices hit astronomical levels are now revisiting these properties, but have not yet purchased causing the closings to drop off.

3. Consumer confidence in September and October was at an all time low for all products, not just housing. When people were having their retirement funds and stock portfolios reduced by tens of thousands of dollars, their desire to purchase a home became less attractive. However, what the Denver marketplace is now experiencing is a higher level of confidence than the national markets allowing buyers more willingness to buy, but this lack of willingness to move hurt the short term closing numbers at a more than seasonal drop.

The sold data year over year is down 6.83%. This is an expected reduction and although 2008 has not been a banner year for sold data, the trend of lack of inventory, increased buyer confidence and improved job growth will cause this lower sold statistic to be a thing of the past in 2009.
What should sellers do in this marketplace?

1. If your single family home is below $500,000, you are more than likely in a good position to sell faster than you think. Currently under $500,000 there is a 4.89 month supply of homes. When the supply is below a 6 month range, there typically are more buyers than there are listings causing homes to move faster.

2. If your single family home is between $500K and 1 Million, there currently is a 16.8 month supply of homes. This is a rather dramatic increase over the lower price range. Our recommendation would be to be the first positioned priced home in your market. Your home will need to show better than others, and offering terms to buy down interest rates would be something to attract buyers. The supply should continue to decrease bringing the opportunities from $500,000 up to the higher ranges as well.

3. If your single family home is above $1 million, there is a 37+ month supply. This might be misleading as some of the homes priced at this price point really aren’t worth $1 million but the sellers have chosen to position their homes at that level. The facts are that with that type of supply you must be the most aggressively priced home in the best condition. We typically see this price range supply drop faster than others because the homeowners have choices to take the home off the market and wait. We would anticipate this inventory to drop at a more rapid pace in 2009 than it has in 2008.

4. If you own a condo there is a 7.6 month supply of condos for all price ranges. You can assume that the entry level price range would have a lower supply than the upper.

How's The Market November 2008?

So, How’s The Market: November 2008

All data is taken from Metrolist, Inc on November 3, 2008.

Inventory drops below 24,000 units. This is the first time since March of 2005 that single family and condo units have totaled less than 24,000 units in a given month. As of today the inventory for the Denver Metro area in single family and condo units is at 23,697. In March of 2005 the inventory stood at 23,647. It has been 43 months since the inventory for residential real estate hit this low of a number. Take a look at the inventory totals for the past 3 ½ years!


The good news indicator of this chart is Denver is absorbing more real estate than most national markets. The lower price points are really becoming a hot commodity. Looking at prices between zero and $250,000, the inventory for past November months until this November shows a dramatic drop in available housing this year.


And here’s the condo inventory in November of each year between zero and $250,000.


As you can see, the inventory for November for both single family and condos has decreased to their lowest levels in five years by a significant amount in the lower price ranges. This leads us to conclude that the inventory will continue to drop at a faster rate, increasing the probability of prices rising in the lower price ranges in 2009 and 2010 at a faster pace then previously predicted. Appreciation of these lower price ranges might increase as much as 6% in 2009 based upon the decreasing inventory.

Let’s look at the upper price ranges to see a comparison of inventories in Denver.


The numbers clearly indicate inventory in the upper price ranges of $750,000 to $2 million have not decreased at all and have increased in November of each of the previous 5 years.

We can conclude that the price ranges below $500,000 in the Denver metro area will continue to sell briskly, with homes priced $500,000-$750,000 somewhere in between and most likely it will take through 2009 before upper end properties will see any real appreciation.

So why would it be a good time to buy an upper end property? The best value for value today will be in the price ranges above $750,000. Getting a property at bargain values will be a good long term investment. If you wait until the market turns you might miss out on the upside if you are a buyer.

For example, if you take a 1 million dollar property that is appreciating at 4% per year, that is a $40,000 increase in one short year. If you take a $250,000 dollar property, appreciating at 4%, that will equal $10,000. Even if an upper end property does not start to appreciate till 2010, you will still be substantially ahead when buying an upper price range property today versus holding onto a lower priced property. The real deals in today’s market are at the upper end price ranges. You can build into the home a terrific price and terms to favor the buyer and take advantage of buying at the lowest point of the market. The inventory does not lie.

If you are thinking long term for your housing needs, you can really buy properties in the upper price ranges at a discount and get some good terms. If you ask the seller to buy your interest rate down you can get a discounted sales price and lower interest rates. These types of buying windows, where you can obtain discounted sales prices and still get terms, do not last forever. Those looking to move in the next year as well as those that have been sitting on the fence, now is the time to buy the home of your dreams and best take advantage of the market.

Sold data for 2008 is lagging behind previous years, but this indicator is starting to flatten out. In September of 2008 we reported that the sold data outperformed the previous year’s data. In October of 2008 the number of single family and condos closed was 3341 units. This was down 57 units from the previous year, but we have not seen two months in a row that the sold data has approached past years levels. With the current economic conditions for that blitzed the country in October, the sold data being almost level to one year ago is a very strong sign the real estate market in Denver is starting to outperform previous years.

The number of homes under contract is having a seasonal decrease to 5794 single family and condo units as of this writing. Twelve months ago there were 5566 units under contract or a 4.1% increase over last year. The confidence in Denver real estate is very good compared to most national markets and we would anticipate this to continue into 2009.

What should you do if you are a buyer today?

· Get qualified to buy the home of your dreams today. That home can be had a great price.
· If you are an investor that is looking long term, buy an upper end property for a rental. There are few rental properties in the upper end market and you will be able to find a tenant quickly.
· If you are a first time home buyer, the more suburban markets have more inventory then the City and County of Denver. Expand your search parameters, as you should buy now to take advantage of next years appreciation.

What should you do if you are seller?

· Try to be the entry price point for your product and location.
· Add terms to attract buyers to your home.
· Be the best conditioned and buyer friendly home, meaning fix the little things before selling.

For more information, statistics, or how these numbers affect the value of your property contact Michael Kozlowski.


Michael Kozlowski
TEAM-KOZ
Broker Associate/Owner
Prestige Real Estate Group
9200 E. Panorama Circle, Suite 140
Englewood, CO 80112
303.949.2755 Cellular
303.328.2951 Facsimile
team-koz@comcast.net
www.team-koz.com

How's The Market October 2008?

So, How’s the Market, October 2008. All statistics are taken from Metrolist on 10.3.08

For the first time since April of 2007 the sold data for one month outperformed the same month the previous year. September of 2008 recorded 3941 single family and condo units closed. This represented a 12.31% increase over September of 2007 which recorded 3509 single family and condo’s closed.

Sold data always lags behind other indicators of market condition and one month hardly makes a trend, but to put this increase in perspective the last time Denver experienced a month over month improvement was April of 2007. April 2007 outperformed April of 2006 with the next earlier time being May 2006/May 2005. For this September to outperform the previous year is a good sign of the Denver market improving. We anticipate this trend to continue and really take hold by March of 2009.

Year to date sold data is still lagging previous years, with 33,951 single family and condo units closed through September 30th. Here’s the previous 5 years sold results through September of each year.

The year to date reduction over the previous year is 6.76% down 2465 units from last year through September. The year to date number is also coming closer to a year over year increase and we predict 2009 will have more properties sell than 2008.

Another good sign for the closed data is the difference between August and September of each year. The chart below shows that in 2008 the sold data difference this year is much improved over the last 4 years. Again, we caution this may be a one month abnormality, but we believe that the sold data will start to outperform previous by the end of 2008. It is starting just a little earlier, which is good news for homeowners. We will watch this trend over the next 4 months to see if the positive nature of the sold data continues.

The actual difference from August to September in 2008 is down 3% as compared to 19.2% for 2007, 18.01% in 2006, 21.7% in 2005 and 6.56% in 2004. The data shows that September of 2008 has the makings of a turning market.

The winner of the statistical data is the listing inventory numbers that are showing up in our market. The single family and condo home inventory continues to decrease at a rapid pace. From October of 2007 to October of 2008 the inventory decreased 19.68%. The total market inventory is as low as it’s been for an October in more than 5 years! Remember the adage, when inventory decreases, prices will…… Let’s not get too euphoric over the data, but real estate numbers for Denver are starting to really look better and better.

Finally, the homes under contract are still holding a higher level than the previous two years. Currently in October there are 6515 single family and condo units under contract. In October of 2007 there were 5566 and in October of 2006 there were 6086. 2008 appears to be holding its own with properties continuing to close over the next 4 months.

Our predictions for the market are:

· The current economic conditions will have most industries in a holding pattern for the next 90-120 days, so we do not see real estate being any different, making for a modest fourth quarter for sales in 2008.
· 2009 will outperform 2008 by more than 8% more closed properties
· 2009 will see homes appreciate in Denver by 3-4%. Some neighborhoods more than others, but all homes will be affected positively in value
· 2009 will see a little higher interest rate for homes than we are experiencing today.
· Foreclosures and short sales will be down by 25% in 2009 over 2008
· The number of homes that will close this year will be less than the previous 5 years.
· The number of homes available for sale will be less than the previous 5 years.

With this said, the next 90 days would be a great opportunity to buy a home before homes start to see appreciation occurring next year.

Wells Fargo relaxes loan rules along Front Range

Wells Fargo relaxes loan rules along Front Range

By Jeff Smith, Tuesday, September 16, 2008
Wells Fargo Home Mortgage, one of the state's largest lenders, has relaxed its loan requirements along the Front Range in recognition of a healthier housing market.

It's unclear how many other lenders will follow suit. And with credit overall tight and consumers concerned about the national economy, home- buying activity may continue to be tepid until next spring, experts say.

Liz Brown, retail division sales manager for Wells Fargo Home Mortgage, said the company upgraded the ratings for all counties surrounding Denver and most of northern Colorado from "distressed" to "stable."

"We've basically expanded our lending guidelines, in most cases giving 5 percent more in terms of the loan amount or requiring 5 percent less down for the home," she said of guidelines that took effect Monday.

But Bryant stressed the company assesses the risk of each loan so individual cases could vary.
"I think this is great news for Denver, great news for Colorado," Bryant said. "We had challenges earlier than many of the other real-estate markets in the country, and it appears our recovery is happening before others."

Only Weld County is still considered "distressed," she said. A number of other Colorado counties, including those south of Denver, already were considered stable.
Denver's market has strengthened in part because of a 20 percent drop in home inventory over the past year, according to August data from Metrolist.

"It's about time" Wells Fargo upgraded the area, said Thomas Thibodeau, academic director for the CU Real Estate Center in Boulder. "The fact of the matter is that the housing market here is vastly different than the rest of the U.S. I think the Denver housing market has turned the corner and is on the way to recovery."

Thibodeau, professor at CU's Leeds School of Business, cited Standard & Poor's Case-Shiller home price index, which shows the Denver market to be healthier than the nation as a whole.

Mortgage rates drop sharply after bailout plan - Stocks & economy- msnbc.com

Mortgage rates drop sharply after bailout plan - Stocks & economy- msnbc.com

U.S. Seizes Mortgage Giants; Government Ousts CEOs of Fannie, Freddie; Promises Up to $200 Billion in Capital -- Wall Street Journal

Wall Street Journal, By James R. Hagerty, Ruth Simon and Damian Paletta
September 8, 2008
In its most dramatic market intervention in years, the U.S. government seized two of the nation's largest financial companies, taking direct responsibility for firms that provide funding for around three-quarters of new home mortgages.
Treasury Secretary Henry Paulson announced plans Sunday to take control of troubled mortgage giants Fannie Mae and Freddie Mac and replace the companies' chief executives. The Treasury will acquire $1 billion of preferred shares in each company without providing immediate cash, and has pledged to provide as much as $200 billion to the companies as they cope with heavy losses on mortgage defaults. The Treasury's plan puts the two companies under a conservatorship, giving management control to their regulator, the Federal Housing Finance Agency, or FHFA.
With that, the U.S. mortgage crisis entered a new and uncharted phase, potentially saddling American taxpayers with billions of dollars in losses from home loans made by the private sector.
Bush administration officials argued that the cost of doing nothing would be far greater because of the toll on the economy of falling home prices and defaults in the $11 trillion U.S. mortgage market.
Mr. Paulson noted that more than $5 trillion of debt and mortgage-backed securities issued by Fannie and Freddie is owned by central banks and other investors world-wide. "Failure of either of them would cause great turmoil in our financial markets here at home and around the globe," Mr. Paulson said.
By taking this action, the government has seized control of the vast bulk of the secondary market for home mortgages and will have a more direct responsibility than ever for solving the housing crisis. The intervention also marks the failure of the public-private experiment that was created to boost home ownership among Americans. Fannie and Freddie were created by Congress to help prop up the housing market, and investors have long believed the government would bail the companies out in a crisis. But the companies have long been owned by private shareholders seeking to maximize profits.
The federal takeover was initially welcomed by banks and market watchers outside the U.S. who saw it as a way to dispel some of the uncertainty roiling the world's financial markets. The intervention could eventually be a boon for Wall Street, by providing a boost to the moribund mortgage industry and by perhaps diminishing the influence of Wall Street's two largest competitors in the market of packaging and reselling mortgage-backed bonds.
Markets across Asia rallied early Monday morning on the news, with financial shares leading the way.
Japan's Nikkei Stock Average of 225 companies soared more than 3%, and Hong Kong's Hang Seng Index opened 4.5% higher.
The move is also likely to nudge down mortgage rates for consumers, who are facing the worst housing bust since the 1930s. Despite steep interest-rate cuts by the Federal Reserve, the cost of a typical 30-year fixed-rate mortgage has remained well over 6% for most of the past year. To bolster the mortgage market, Treasury said it will buy, on the open market, at least $5 billion of new mortgage-backed securities issued by Fannie and Freddie.
The government rescue of Fannie and Freddie is likely to leave a trail of billions of dollars in losses for stockholders, including some major banks. But it protects the investments of bondholders, including mutual funds, foreign central banks and government investment funds that own huge amounts of debt issued by the two companies. Investors that have loaded up recently on mortgage-backed bonds -- such as Pacific Investment Management Co., the large Newport Beach, Calif., bond manager -- could benefit as Treasury purchases of such securities drive up their values.
It is unclear how much the government's intervention will ultimately cost taxpayers. In addition to its initial acquisition of preferred shares, the government receives warrants giving it the right to a stake of 79.9% of each company for a nominal sum. The Treasury's preferred shares, which carry an annual dividend yield of 10%, will be senior to those earlier issued, meaning the government will have the first right to receive dividends.
Existing shareholders won't fare so well. The new overseers will eliminate dividends on billions of dollars of common and preferred stock, moves that are expected to further drive down the price of those shares. If the government exercises its warrants, existing common shares will be drastically diluted. Common shareholders are expected to see the value of their investment, which has already fallen, shrivel further, say analysts. Even preferred stockholders are expected to see a significant decline.
That prospect is especially problematic for some of the commercial banks and thrifts that hold high concentrations of Fannie and Freddie preferred shares. The Office of Thrift Supervision, a government agency that supervises savings and loans, said that roughly 2% of the 829 companies it regulates -- or around 17 banks -- had a concentration in common or preferred shares of Fannie Mae and Freddie Mac that surpassed 10% of their Tier 1 capital. Regulators said Sunday they would work with banks that hold large exposures to Fannie and Freddie "to develop capital-restoration plans" if necessary.
The Treasury's move doesn't answer the question of what ultimately happens to Fannie and Freddie. Under the conservatorship of their regulator, the companies will still have their shares listed on the New York Stock Exchange. But management control goes to the regulator until it deems the companies financially healthy. Congress ultimately will have to decide in what form Fannie and Freddie will be relaunched or whether they will be replaced by different types of entities.
Mr. Paulson signaled that he wants to remake the U.S. housing-finance system in the longer term, ditching the "flawed business model" of government-sponsored enterprises like Fannie and Freddie. The Treasury plan limits the size of each company's mortgage portfolios to a maximum of $850 billion as of the end of 2009. (Fannie currently owns about $758 billion of mortgages and related securities, while Freddie's total is about $798 billion.) After that, the Treasury intends for the mortgage holdings to shrink about 10% a year until they reach about $250 billion at each company.
Wrangling over the future shape of Freddie and Fannie will likely be kicked to the next Congress.
Already the majority Democrats are pushing back on elements of Treasury's plan. "Good luck on that," said Massachusetts Rep. Barney Frank, chairman of the House Financial Services Committee, when asked about the Treasury's plan to start reducing the firms' portfolios beginning in 2010. Mr. Frank called it "more of a sop to the right" than a real policy prescription and said it wasn't going to happen.
Many economists and analysts believe the government had to wade deeper into the mortgage market because for now "private markets are just not willing to put up the capital" for home mortgages at prices U.S. consumers could afford, said Susan Wachter, a professor of real estate and finance at the University of Pennsylvania's Wharton School. Without government support for the mortgage market, home prices would fall much further, exposing the country as a whole to greater economic strain, Ms. Wachter says.
The turn of events for Fannie and Freddie is remarkable considering the two companies for so long shunned the riskiest type of mortgages, only to embrace those mortgages late in the game in an effort to regain market share from Wall Street rivals.
As early as 2005, Fannie executives publicly expressed concerns about growing risks in the mortgage market. In May of that year, Thomas Lund, a Fannie Mae executive vice president, said that lenders should be concerned if borrowers straining to afford homes were given loans allowing for low payments in the early years but storing up much higher ones for later. "In many cases the consumers may not understand all the risks," he said.
Yet both companies expanded their exposure to riskier loans. At both Fannie and Freddie, so-called Alt-A loans, a category between prime and subprime, accounted for roughly 50% of credit losses in the second quarter, even though such loans accounted for only about 10% of the companies' business. Alt-A mortgages include loans made with less than full documentation of borrowers' income or assets.
As these and other loans -- including many in areas such as California and Florida that are among the hardest hit by the housing crisis -- started to go bad, the companies failed to raise enough capital late last year, when investors were still fairly bullish on their prospects, to see them through the current storm. The companies have recorded combined losses totaling about $14 billion over the past four quarters, eating deeply into their meager capital holdings. Most analysts expect them to report sizable losses for at least another couple of years as the costs of foreclosures mount.
Fannie and Freddie's credit problems are largely a reflection of the overall weakness in the housing market.
Some 9.2% of mortgages on one- to four-family homes were at least a month overdue or in the foreclosure process in the second quarter, according to the latest survey of the Mortgage Bankers Association. That is the highest percentage in the 39 years that the trade group has been doing the surveys.
"Make no mistake, anybody in the mortgage business is going to see much higher losses than they thought they would a year ago because we've had the worst housing market and the largest home price declines that anybody has seen," said Thomas Lawler, a housing economist in Leesburg, Va., who formerly worked for Fannie.
Both companies are also exposed to some of the mortgage industry's most troubled players. Countrywide Financial Corp., now part of Bank of America Corp., was the largest provider of loans purchased by Fannie Mae, accounting for 29% of its business in 2007, according to Inside Mortgage Finance, and was the second largest source of loans for Freddie Mac, with a 16% share. IndyMac Financial Corp., which previously had focused its business on Alt-A loans that didn't meet Fannie and Freddie guidelines, switched to a policy of making loans that could meet their standards in 2007. IndyMac was taken over by the Federal Deposit Insurance Corp. this summer.
At Fannie, Herb Allison, who formerly served as chairman of the investment company TIAA-CREF, succeeds Daniel Mudd. Freddie's chief executive, Richard Syron, was succeeded by David Moffett, who has been vice chairman and chief financial officer of U.S. Bancorp.
Potentially, Mr. Syron could walk away with an exit package totaling as much as $15 million, said David Schmidt, a senior consultant at James F. Reda & Associates LLC, a compensation consulting concern in New York. That includes a pension and deferred compensation, about $3.7 million in severance pay and a possible payment of $8.8 million to compensate for forfeiting recent equity grants. A Freddie spokesman said Mr. Syron had said he doesn't "anticipate receiving nearly that much."
Mr. Mudd's exit package, including stock he already owns, could total $14 million, Mr. Schmidt estimates.
That includes $5 million in pension and deferred compensation, $4.2 million in severance pay and $3.4 million of restricted stock, based on Friday's closing price. The value of that stock could fall sharply, however.
Key Players
-- Henry Paulson, Treasury Secretary: Known mostly as a pragmatist when he was sworn in July 2006, the 62-year-old former chief executive of Goldman Sachs has sought, and won, authority for unprecedented government involvement in the nation's financial markets.
-- Ben Bernanke, Chairman of the U.S. Federal Reserve: A career academic focused on the interaction of the financial system and economy, especially during the Depression, Mr. Bernanke, 54, has formed close working relationship with Mr. Paulson in the last two years.
-- Daniel H. Mudd, Former Fannie Mae Chief executive: A former Marine officer, Mr. Mudd was promoted from his job as Fannie Mae's chief operating officer when predecessor Franklin Raines was ousted in December 2004.
-- Richard Syron, Former Freddie Mac Chairman and Chief executive: Mr. Syron, 64, a former senior Federal Reserve official, came to Freddie in December 2003 with a mandate to clean up after that company's accounting scandal.
-- James Lockhart, Federal Housing Finance Agency director: As head of the Office of Federal Housing Enterprise Oversight, Mr. Lockhart pushed for more power to regulate Fannie and Freddie. At the helm of the newly created FHFA, he has it.
-- Barney Frank, House Financial Services Committee chairman: With Democrats in control of Congress, the 14-term congressman from Massachusetts has an even louder voice to support a bigger role for government in solving the housing slump.
-- Herb Allison, Incoming CEO of Fannie Mae: As Merrill Lynch's president and chief operating officer, Mr. Allison presented the initial proposal for a Wall Street bailout of high-flying hedge fund Long-Term Capital Management LP in 1998. He recently retired as chief executive of pension fund TIAA-CREF.
-- David Moffett, Incoming CEO of Freddie Mac: The former chief financial officer of U.S. Bancorp, Mr. Moffett has been working in private equity for the Carlyle Group.