Wednesday, March 30, 2011
Monday, March 28, 2011
Denver Real Estate Market Update March 2011
So How’s the Market, March 2011
Just like Spring, The Denver Real Estate Market is slowly waking up!
- Home re-sales in metro Denver ended up down 8.5% in February from a year earlier, following a similar year over-year decline in January, according to Metrolist Inc.
As the housing markets are finding their sea legs after being propped up by the first time buyers government stimulus in 2010, we see consumer confidence slowly increasing just as sure as the buds starting to appear on all of our trees and bushes.
- The number of homes Sold rose 3.4% in February to 2,229, compared with the 2,156 the previous month, according to an analysis of Metrolist data, a welcome seasonal trend.
Meanwhile, the Conference Board’s Consumer Confidence Index, which had increased in January, improved further in February. The index stands at 70.4, up from 64.8 in January.
The bright spot in the current market is that approximately 40 percent of the market this time last year was a result of the first time buyer tax credit. The decline in sales is a result of the tax credit going away with decreased demand as we expected. Looking at the current activity without the tax credit, and the numbers are fairly positive. We do have Activity in the market! Consumer confidence seems to be increasing across America as 68% of potential homebuyers and sellers in a recent survey, believe that the real estate market and property values will recover in the next year or two. In addition, 86% of Americans believe real estate is a good investment despite the market volatility of the past few years!
- Homes Sold last month were on the market an average of 124 days, versus 95 days in the same month a year earlier, about 30% longer, a fairly substantial increase as many have seen.
- The inventory of available homes in the Denver area fell by 3.4% last month from a year earlier, to 18,685 including single family homes and condos, a really positive sign moving into Spring
The potential Seller’s in the market seem to be more cautious and slow to come on the market, probably due to the fact that the average price also dropped last month by 2 percent for single family homes to $265,277 and condo re-sales were down 6 percent, to $155,656. The New home building activity was also down 43% from a year ago, with some caution to downward pressure in home prices from too much inventory. There is also the question of how much of a “shadow inventory” exists and how that will affect different segments of the market over the next few years. The shadow market is generally considered foreclosed homes owned by banks that have not yet hit the market, increasing the supply of unsold homes on the market. These distressed homes will eventually compete with other houses on the market!
Advice to Sellers:
Sellers in any real estate market are looking to get the best possible price. If you are looking to sell in the next year, today’s price may well be the best price. Home values stabilized somewhat in 2010. Many hoped that was a sign that values had bottomed out, but looking at a couple of recent reports it seems that a number of factors continue to dampen the recovery in the housing market. Negative equity, which limits the mobility of homeowners, weak demand and the overhang of shadow inventory all continue to exert downward pressure on prices. We are hoping that renewed demand in Spring and Summer activity will reduce the downward pressure, not that prices will start to stabilize or increase, but reduce the pressure to drive prices lower. Be the best positioned and best priced home in your market if possible and you will have the greatest opportunity to find your buyer sooner than later.
Advice to Buyers:
The buying power for Buyer’s today is almost unbelievable! As downward pressure is on the price of a home and value in the market is amazing, there is just as much upward pressure on mortgage interest rates and the potential for them to go up as the economy begins to grow. Home prices may lower a few thousand dollars still, but a small adjustment in interest rates may affect your buying power by tens of thousands. History has shown us as demand goes up, so do interest rates! Always remember that in any market the good homes will sell quickly, so if you like what you see, consider making that offer today before another buyer does.
AS OUR DAFODILS AND TULIPS BEGIN TO POP UP, SO WILL MORE BEAUTIFUL HOMES! JUST LIKE A SPRING FLOWER THAT DOESN’T LAST VERY LONG, THE GOOD HOMES WILL COME AND GO QUICKLY TOO! ALWAYS LOOK YOUR BEST TO HAVE THE GREATEST CHANCE FOR SUCCESS!
Just like Spring, The Denver Real Estate Market is slowly waking up!
- Home re-sales in metro Denver ended up down 8.5% in February from a year earlier, following a similar year over-year decline in January, according to Metrolist Inc.
As the housing markets are finding their sea legs after being propped up by the first time buyers government stimulus in 2010, we see consumer confidence slowly increasing just as sure as the buds starting to appear on all of our trees and bushes.
- The number of homes Sold rose 3.4% in February to 2,229, compared with the 2,156 the previous month, according to an analysis of Metrolist data, a welcome seasonal trend.
Meanwhile, the Conference Board’s Consumer Confidence Index, which had increased in January, improved further in February. The index stands at 70.4, up from 64.8 in January.
The bright spot in the current market is that approximately 40 percent of the market this time last year was a result of the first time buyer tax credit. The decline in sales is a result of the tax credit going away with decreased demand as we expected. Looking at the current activity without the tax credit, and the numbers are fairly positive. We do have Activity in the market! Consumer confidence seems to be increasing across America as 68% of potential homebuyers and sellers in a recent survey, believe that the real estate market and property values will recover in the next year or two. In addition, 86% of Americans believe real estate is a good investment despite the market volatility of the past few years!
- Homes Sold last month were on the market an average of 124 days, versus 95 days in the same month a year earlier, about 30% longer, a fairly substantial increase as many have seen.
- The inventory of available homes in the Denver area fell by 3.4% last month from a year earlier, to 18,685 including single family homes and condos, a really positive sign moving into Spring
The potential Seller’s in the market seem to be more cautious and slow to come on the market, probably due to the fact that the average price also dropped last month by 2 percent for single family homes to $265,277 and condo re-sales were down 6 percent, to $155,656. The New home building activity was also down 43% from a year ago, with some caution to downward pressure in home prices from too much inventory. There is also the question of how much of a “shadow inventory” exists and how that will affect different segments of the market over the next few years. The shadow market is generally considered foreclosed homes owned by banks that have not yet hit the market, increasing the supply of unsold homes on the market. These distressed homes will eventually compete with other houses on the market!
Advice to Sellers:
Sellers in any real estate market are looking to get the best possible price. If you are looking to sell in the next year, today’s price may well be the best price. Home values stabilized somewhat in 2010. Many hoped that was a sign that values had bottomed out, but looking at a couple of recent reports it seems that a number of factors continue to dampen the recovery in the housing market. Negative equity, which limits the mobility of homeowners, weak demand and the overhang of shadow inventory all continue to exert downward pressure on prices. We are hoping that renewed demand in Spring and Summer activity will reduce the downward pressure, not that prices will start to stabilize or increase, but reduce the pressure to drive prices lower. Be the best positioned and best priced home in your market if possible and you will have the greatest opportunity to find your buyer sooner than later.
Advice to Buyers:
The buying power for Buyer’s today is almost unbelievable! As downward pressure is on the price of a home and value in the market is amazing, there is just as much upward pressure on mortgage interest rates and the potential for them to go up as the economy begins to grow. Home prices may lower a few thousand dollars still, but a small adjustment in interest rates may affect your buying power by tens of thousands. History has shown us as demand goes up, so do interest rates! Always remember that in any market the good homes will sell quickly, so if you like what you see, consider making that offer today before another buyer does.
AS OUR DAFODILS AND TULIPS BEGIN TO POP UP, SO WILL MORE BEAUTIFUL HOMES! JUST LIKE A SPRING FLOWER THAT DOESN’T LAST VERY LONG, THE GOOD HOMES WILL COME AND GO QUICKLY TOO! ALWAYS LOOK YOUR BEST TO HAVE THE GREATEST CHANCE FOR SUCCESS!
Saturday, March 26, 2011
Wednesday, March 16, 2011
Thursday, March 3, 2011
Sunday, February 20, 2011
Denver Real Estate Market Update February 2011
Denver Real Estate Market Update February 2011 So, How’s the Market, February 19, 2011
The Denver Real Estate Market is Learning to “Fly Solo”!
The Real estate markets across America were being supported with Government Stimulus incentives in 2010! The markets in the early months of 2011 are learning to fly on their own, which in the long run will be healthier and give us a true picture of real values. Buyers and Sellers seemed to be on hold in January and the beginning of February after a small surge of activity the end of 2010.
Here are some of the latest stats:
- New listings/homes for sale only increased by about 100 from the previous month (good news)
- The number of Under Contract homes in January 2011 saw a major decrease down 43% from January 2010. (Again, the reminder that the tax stimulus was in full effect last year.)
- Homes Sold/Closed in January were also down approximately 24% year over year. All of the above comparisons include Single Family Homes and Condo/Townhomes.
The positive news is that It appears that the sleeping giant called a Denver Home Buyer is slowly waking up now that the Super Bowl is over, and the post Christmas blues have begun to wear off. The Groundhog saw his shadow, so officially Spring is nearby and the Spring Home Buying market should be close by as well.
Home prices seem to be bouncing along the bottom, so the best opportunities for Buyers is right now before the Spring rush begins and the low interest rates we are still seeing start to rise. Sellers should prepare their homes to the best condition as possible as time on the market has increased year over year!
HEADLINE: Timing Is Important!
If you’re considering listing a single family home or condo for sale in 2011, it’s time to stop thinking and start the process, those that are on the market now are ahead of the game and are already getting showings. Last year the average residential property was on the market for well over three months before selling – which doesn’t include the properties that were taken off the market prior to sale. Even if you list your home today, it will likely be nearly mid-year before you find a buyer and close.
Timing is important when listing a home. In 2010, almost as many residential properties were sold March through June as were sold during the other months combined. Waiting until later in the year to list your property may mean missing out on the hottest selling times of the year.
The following graph compares days on market over the past 2 years for the average home in the Denver market. Homes in the mid to upper price ranges, especially above $350,000 have had significantly longer marketing times depending on neighborhood and area.
Advice for Buyers!
No one knows exactly what’s going to happen to home prices. Today’s prices may be the most affordable for the foreseeable future. With both prices and interest rates low, now is a great time to buy. Begin your search before the Spring weather attracts more buying competition!
Advice for Sellers!
Based on the number of active listings, there is an inventory of well over 5 months for the average single family home currently. Make sure your home is on the market now to ensure it’s available to buyers during the peak shopping months of March through September. Your home has to shows as good as it can show so you don’t miss an opportunity.
The Denver Real Estate Market is Learning to “Fly Solo”!
The Real estate markets across America were being supported with Government Stimulus incentives in 2010! The markets in the early months of 2011 are learning to fly on their own, which in the long run will be healthier and give us a true picture of real values. Buyers and Sellers seemed to be on hold in January and the beginning of February after a small surge of activity the end of 2010.
Here are some of the latest stats:
- New listings/homes for sale only increased by about 100 from the previous month (good news)
- The number of Under Contract homes in January 2011 saw a major decrease down 43% from January 2010. (Again, the reminder that the tax stimulus was in full effect last year.)
- Homes Sold/Closed in January were also down approximately 24% year over year. All of the above comparisons include Single Family Homes and Condo/Townhomes.
The positive news is that It appears that the sleeping giant called a Denver Home Buyer is slowly waking up now that the Super Bowl is over, and the post Christmas blues have begun to wear off. The Groundhog saw his shadow, so officially Spring is nearby and the Spring Home Buying market should be close by as well.
Home prices seem to be bouncing along the bottom, so the best opportunities for Buyers is right now before the Spring rush begins and the low interest rates we are still seeing start to rise. Sellers should prepare their homes to the best condition as possible as time on the market has increased year over year!
HEADLINE: Timing Is Important!
If you’re considering listing a single family home or condo for sale in 2011, it’s time to stop thinking and start the process, those that are on the market now are ahead of the game and are already getting showings. Last year the average residential property was on the market for well over three months before selling – which doesn’t include the properties that were taken off the market prior to sale. Even if you list your home today, it will likely be nearly mid-year before you find a buyer and close.
Timing is important when listing a home. In 2010, almost as many residential properties were sold March through June as were sold during the other months combined. Waiting until later in the year to list your property may mean missing out on the hottest selling times of the year.
The following graph compares days on market over the past 2 years for the average home in the Denver market. Homes in the mid to upper price ranges, especially above $350,000 have had significantly longer marketing times depending on neighborhood and area.
Advice for Buyers!
No one knows exactly what’s going to happen to home prices. Today’s prices may be the most affordable for the foreseeable future. With both prices and interest rates low, now is a great time to buy. Begin your search before the Spring weather attracts more buying competition!
Advice for Sellers!
Based on the number of active listings, there is an inventory of well over 5 months for the average single family home currently. Make sure your home is on the market now to ensure it’s available to buyers during the peak shopping months of March through September. Your home has to shows as good as it can show so you don’t miss an opportunity.
Wednesday, February 16, 2011
Michael Kozlowski Receives Top Honors as the #1 Individual Agent at RE/MAX Professionals for 2010 at Awards Ceremony 2/16/2011.
Michael Kozlowski - Team Koz RE/MAX Professionals takes top honors at the RE/MAX Professionals awards ceremony at Pinehurst Country Club February 16, 2010.
Michael was recognized as the #1 Individual Agent at RE/MAX Professionals for 2010, as well as the #1 Individual Agent at the Dever Tech Center Office for 2010.
For more information please visit www.team-koz.com or contact Michael directly at team-koz@comcast.net
Saturday, February 5, 2011
Thursday, January 20, 2011
Saturday, January 15, 2011
Thursday, January 13, 2011
Denver Real Estate Market Update January 2011
So, How’s the Market, January 2011
The State of the Market in General described as “Choppy and Confused”!
Anyone who bought or sold a home in 2010 can tell you that it was a challenging year for Real Estate! Looking ahead, however, there are a couple of wild cards out there that could make the real estate market in 2011 look very different. First, if the job market improves, we will see an immediate improvement in the residential market which is good news for Sellers! Second, we would point out that the health of the Real Estate market is at least somewhat in the hands of the Media. The more that’s written about how terrible the housing market is, the more apt people are to sit back and do nothing.
A true recovery in home sales will not begin until the Government involvement in the housing market subsides and the private sector employment growth increases!!! Has the housing market hit bottom? Will we have to wait until sometime in 2011 or 2012 to see a bona fide recovery? While unemployment is the biggest drag on the Real Estate market, among major metro areas Denver is one of four that have seen supply and demand move back into some balance and also seen general economic conditions improve. The others include Boston, Central New Jersey and Dallas/Fort Worth.
A flurry of year-end buying in some price ranges caused home resales in Metro Denver to increase in December 2010
• The number of houses sold increased in December 2010 compared to December 2009, but the average sold price dipped.
• 2,422 Single family homes closed in December 2010 vs 2,328 in December 2009 a 4.0% increase.
• The average Sold Price was $274,625 in December 2010 vs $281,756 in December 2009 a 2.5% decrease.
• The December 2010 average days on the market was 111 vs 88 days in December 2009 a 26.1% increase.
• 602 Condos closed in December 2010 vs 631 in December 2009 down 4.6%
• The average Condo Sold Price was $166,841 in December 2010 vs $160,399 in the same month 2009 a 4.0% increase.
• The December 2010 Condo average days on the market was 132 vs 93 in December 2009 up 41.9%.
2010 Activity and a balance of Supply vs Demand shows some good signs for 2011 Market!
• Denver Metro Single family home sales totaled 30,777 in 2010, down 7 percent from the prior year.
• Condo sales also declined, with 8,041 properties sold in 2010, a drop of 10.2 percent from 2009.
• Current Active listings on the market began 2011 at 13,941 homes and 4,316 Condos up 13.7% and 2.9% respectively.
• Supply of inventory decreased to 4-8 months across most price ranges in Metro Denver, even up to $750,000, a welcome change
• The Luxury market improved late in the year, and when the upper end is moving, all price ranges generally benefit!
Advice for Buyers!
Of course anyone in this market with so many mixed signals is nervous about buying, but our advice would be not to wait! If there is one thing we’ve learned about this real estate market, it usually takes a long time to unwind but once it decides to turn around it is like someone turning on a light switch. Prices will move up very quickly, and you will be just like every other buyer bidding on the same house. Now is a great time to take advantage of low interest rates and better buying power. Just 5 years ago rates were closer to 8%, and now they are near 4.75%. That is a phenomenal savings and smart buyers will realize that now!
Advice for Sellers!
Sellers should consider a couple of things: First, they should be thinking about pricing their home for exactly what it’s worth. The strategy of pricing a home high and letting buyers make a lower offer can backfire! In today’s market, it could take several bids from buyers to get one acceptable price. So you want to price it right when you first enter the market, so buyers will be willing to make a bid and create competition between buyers. The second piece of advice for Sellers is to realize you are in competition with your neighbors. They are competing with you to sell their house, so we have to make sure that ours is prettier than theirs. Make the inexpensive improvements that buy you some fashion sense, and even consider staging the home if necessary. Do the little things and, “Win the Beauty Contest”!
Real Estate markets can recover much faster than they can fall. Let’s hope 2011 is the year that proves that theory again.
The State of the Market in General described as “Choppy and Confused”!
Anyone who bought or sold a home in 2010 can tell you that it was a challenging year for Real Estate! Looking ahead, however, there are a couple of wild cards out there that could make the real estate market in 2011 look very different. First, if the job market improves, we will see an immediate improvement in the residential market which is good news for Sellers! Second, we would point out that the health of the Real Estate market is at least somewhat in the hands of the Media. The more that’s written about how terrible the housing market is, the more apt people are to sit back and do nothing.
A true recovery in home sales will not begin until the Government involvement in the housing market subsides and the private sector employment growth increases!!! Has the housing market hit bottom? Will we have to wait until sometime in 2011 or 2012 to see a bona fide recovery? While unemployment is the biggest drag on the Real Estate market, among major metro areas Denver is one of four that have seen supply and demand move back into some balance and also seen general economic conditions improve. The others include Boston, Central New Jersey and Dallas/Fort Worth.
A flurry of year-end buying in some price ranges caused home resales in Metro Denver to increase in December 2010
• The number of houses sold increased in December 2010 compared to December 2009, but the average sold price dipped.
• 2,422 Single family homes closed in December 2010 vs 2,328 in December 2009 a 4.0% increase.
• The average Sold Price was $274,625 in December 2010 vs $281,756 in December 2009 a 2.5% decrease.
• The December 2010 average days on the market was 111 vs 88 days in December 2009 a 26.1% increase.
• 602 Condos closed in December 2010 vs 631 in December 2009 down 4.6%
• The average Condo Sold Price was $166,841 in December 2010 vs $160,399 in the same month 2009 a 4.0% increase.
• The December 2010 Condo average days on the market was 132 vs 93 in December 2009 up 41.9%.
2010 Activity and a balance of Supply vs Demand shows some good signs for 2011 Market!
• Denver Metro Single family home sales totaled 30,777 in 2010, down 7 percent from the prior year.
• Condo sales also declined, with 8,041 properties sold in 2010, a drop of 10.2 percent from 2009.
• Current Active listings on the market began 2011 at 13,941 homes and 4,316 Condos up 13.7% and 2.9% respectively.
• Supply of inventory decreased to 4-8 months across most price ranges in Metro Denver, even up to $750,000, a welcome change
• The Luxury market improved late in the year, and when the upper end is moving, all price ranges generally benefit!
Advice for Buyers!
Of course anyone in this market with so many mixed signals is nervous about buying, but our advice would be not to wait! If there is one thing we’ve learned about this real estate market, it usually takes a long time to unwind but once it decides to turn around it is like someone turning on a light switch. Prices will move up very quickly, and you will be just like every other buyer bidding on the same house. Now is a great time to take advantage of low interest rates and better buying power. Just 5 years ago rates were closer to 8%, and now they are near 4.75%. That is a phenomenal savings and smart buyers will realize that now!
Advice for Sellers!
Sellers should consider a couple of things: First, they should be thinking about pricing their home for exactly what it’s worth. The strategy of pricing a home high and letting buyers make a lower offer can backfire! In today’s market, it could take several bids from buyers to get one acceptable price. So you want to price it right when you first enter the market, so buyers will be willing to make a bid and create competition between buyers. The second piece of advice for Sellers is to realize you are in competition with your neighbors. They are competing with you to sell their house, so we have to make sure that ours is prettier than theirs. Make the inexpensive improvements that buy you some fashion sense, and even consider staging the home if necessary. Do the little things and, “Win the Beauty Contest”!
Real Estate markets can recover much faster than they can fall. Let’s hope 2011 is the year that proves that theory again.
Tuesday, January 11, 2011
Michael Kozlowski Moves Up to #2 Ranked RE/MAX Agent in Colorado as of November 2010 & #28 in the United States
Michael Kozlowski - Team Koz RE/MAX Professionals moves up the rankings to #2 Ranked RE/MAX agent Year to Date 2010 in the State of Colorado.
As of November 2010 Michael Kozlowski was Ranked #28 out of over 56,000 RE/MAX Agents in the entire United States.
As of November 2010 Michael Kozlowski was Ranked #28 out of over 56,000 RE/MAX Agents in the entire United States.
Tuesday, December 28, 2010
Saturday, December 11, 2010
Denver Real Estate Market Update December 2010
So, How’s the Market, December 2010
It’s Confirmed, The Housing Double Dip is Here!
How long will it last? Will the Denver Market Outperform as it has in the past?
The most recent Case-Shiller report shows in their 10 City and 20 City Composite index that we will see a double dip in housing prices nationally in 2011. Most of the gains we saw in pricing may be lost in the coming year according to their current statistics. The good news for the Denver Metro Market is that 12 of the 15 worst markets are in Florida and Arizona. This however does give us some guidance for the 2011 market.
The Denver Metro Market had higher than expected sold and under contract activity. The numbers of homes sold were down from November 2009, but the average prices were up which is good to see. The middle of the market started receiving contracts which allowed a lot of move up buyers to get some bargain prices with phenomenal interest rates in the upper price ranges. The key to preparing for 2011 is to be priced right coming out of the gate in the new year.
The Denver Metro Market should outperform the U.S. Market in 2011
• The current inventory continues to fall in a seasonal adjustment to 21,168 total residential units
• Foreclosure filings for 2010 are lower in all Counties, except Eagle County in the mountains
• Colorado’s unemployment numbers are lower than most of the United States
• A solid tax policy should encourage employers to start creating jobs again in Colorado
• Jobs creation is the formula for consumer confidence and home purchases
• Pent-up Demand from lackluster sales in Q3 & Q4 will bring buyers out early in 2011 as we saw in 2009 after the credit crisis and election.
Solid Under Contract Numbers In the Upper Price Ranges for November Will Help All Price Ranges
• Post election confidence will create new and exciting activity in most price ranges as we head into 2011
• A solid increase in the move up market should continue as middle price ranges continue to receive contracts
• Offers have increased in the $750,000+ market in November, a trend we haven’t seen in a long time which is encouraging
• Buyers are taking advantage of low prices and very low interest rates. Interest rates have started to rise and should continue to do so creating a sense of urgency to buy in the coming months
Enjoy the Holiday Season with Family and Friends!
All real estate data taken from Metrolist Inc. on December 4, 2010 Denver, Colorado
It’s Confirmed, The Housing Double Dip is Here!
How long will it last? Will the Denver Market Outperform as it has in the past?
The most recent Case-Shiller report shows in their 10 City and 20 City Composite index that we will see a double dip in housing prices nationally in 2011. Most of the gains we saw in pricing may be lost in the coming year according to their current statistics. The good news for the Denver Metro Market is that 12 of the 15 worst markets are in Florida and Arizona. This however does give us some guidance for the 2011 market.
The Denver Metro Market had higher than expected sold and under contract activity. The numbers of homes sold were down from November 2009, but the average prices were up which is good to see. The middle of the market started receiving contracts which allowed a lot of move up buyers to get some bargain prices with phenomenal interest rates in the upper price ranges. The key to preparing for 2011 is to be priced right coming out of the gate in the new year.
The Denver Metro Market should outperform the U.S. Market in 2011
• The current inventory continues to fall in a seasonal adjustment to 21,168 total residential units
• Foreclosure filings for 2010 are lower in all Counties, except Eagle County in the mountains
• Colorado’s unemployment numbers are lower than most of the United States
• A solid tax policy should encourage employers to start creating jobs again in Colorado
• Jobs creation is the formula for consumer confidence and home purchases
• Pent-up Demand from lackluster sales in Q3 & Q4 will bring buyers out early in 2011 as we saw in 2009 after the credit crisis and election.
Solid Under Contract Numbers In the Upper Price Ranges for November Will Help All Price Ranges
• Post election confidence will create new and exciting activity in most price ranges as we head into 2011
• A solid increase in the move up market should continue as middle price ranges continue to receive contracts
• Offers have increased in the $750,000+ market in November, a trend we haven’t seen in a long time which is encouraging
• Buyers are taking advantage of low prices and very low interest rates. Interest rates have started to rise and should continue to do so creating a sense of urgency to buy in the coming months
Enjoy the Holiday Season with Family and Friends!
All real estate data taken from Metrolist Inc. on December 4, 2010 Denver, Colorado
Thursday, December 9, 2010
Friday, November 12, 2010
Thursday, November 11, 2010
Tuesday, November 9, 2010
Thursday, November 4, 2010
Monday, November 1, 2010
Tuesday, October 12, 2010
Friday, October 8, 2010
Denver Real Estate Market Update October 2010
So, How’s the Market, October, 2010
All real estate data taken from Metrolist Inc., on October 8, 2010 Denver, Colorado.
“The Sky Is Not Falling and Real Estate is Still a Good Investment”
There are 7 thoughts to consider why real estate is a Good Investment.
#1 September 2010 Sold Data for Single Family and Condos is 1% higher than August 2010.
• 2958 units sold in September vs. 2936 in August which typically would see a historical decline of 2%.
• 532 Condos sold between zero and $250,000 in September, a 9% increase over August.
• Overall, the number of condos sold in September increased 12.7% over August
• In the luxury market, 4 single family homes closed over $3,000,000 in price in September equaling the highest number of properties to be sold in a month at this price point.
#2 Total SF and Condo Properties that are Under Contract rose 1.2% in
September over August
• Properties that are under contract are the pipeline to future closings and there is a strong 2 month supply of closings in the pipeline.
• The number of single family properties priced between zero and $250,000 has 2616 homes under contract up from 2507 in August.
• Luxury Homes priced between $2 million and $2.5 million had a total of 6 properties placed under contract vs. 3 in August.
#3 Active Listing Inventory is seasonally decreasing which is a good sign
for current homeowners who are selling.
• Inventory for Single Family and Condos decreased by 3.4% in October
from September, 2010.
• Luxury properties priced above $1 million had an inventory decrease of
4.5%.
• The entire Denver marketplace has a 7.83 month supply of single family
homes.
• The entry price point up to $250,000 has a 5.89 supply of homes.
#4 Interest Rates are at Historical Lows
• 30 Year Fixed Rates are at 40 Year Lows
• 15 Year Mortgages help you build equity faster
• A 4.25% interest rate gives more buying power to keep low monthly payments.
#5 Economic Conditions are creating a new housing market for 2011.
• The lack of new homes being built will help resale prices in 2011
• The Job Market has stabilized allowing people the confidence to buy.
• Financing a new loan requires solid income and good credit, but money is available at all price points, which wasn’t the case earlier in 2010.
#6 Lack of Equity in Markets is Now Reversing the Trend
• Both financial and housing markets are seeing equity starting to increase in individual portfolios. Hence, people are saving money in 2010 that will be spent in 2011.
• There are over 100 homes per day selling in Denver as of October 8, 2010. Buyers are building wealth by purchasing now and getting an attractive equity position in their home.
• The Luxury Housing Market has an oversupply of homes above $1 million and buyers are able to capitalize on these attractive prices today. Buyers are buying at below building costs and this window will be smaller in 2011.
#7 Buyer Behavior for Housing will be more positive in 2011.
• As interest rates start to rise after the first of the year, buyers will jump on the low prices and low rates.
• Buyers will take shorter time buying because as rates rise, their buying windows change.
• Buyers are going to require more information about resale home conditions. Keep good records for your housing improvements.
What should sellers do in today’s market?
• Put your Home in Show Home Condition.
• Position Your Price aggressively against the competition.
• Consider offering unique and attractive financing terms.
What should buyers do in today’s market?
• Know the supply and demand of the neighborhood you are making purchase within. This helps your negotiations.
• Ask for HOA dues to be prepaid for a period of time as part of the negotiations.
• Work with a talented lender that understands today’s underwriting guidelines to make sure you can perform on the contract you enter.
All real estate data taken from Metrolist Inc., on October 8, 2010 Denver, Colorado.
“The Sky Is Not Falling and Real Estate is Still a Good Investment”
There are 7 thoughts to consider why real estate is a Good Investment.
#1 September 2010 Sold Data for Single Family and Condos is 1% higher than August 2010.
• 2958 units sold in September vs. 2936 in August which typically would see a historical decline of 2%.
• 532 Condos sold between zero and $250,000 in September, a 9% increase over August.
• Overall, the number of condos sold in September increased 12.7% over August
• In the luxury market, 4 single family homes closed over $3,000,000 in price in September equaling the highest number of properties to be sold in a month at this price point.
#2 Total SF and Condo Properties that are Under Contract rose 1.2% in
September over August
• Properties that are under contract are the pipeline to future closings and there is a strong 2 month supply of closings in the pipeline.
• The number of single family properties priced between zero and $250,000 has 2616 homes under contract up from 2507 in August.
• Luxury Homes priced between $2 million and $2.5 million had a total of 6 properties placed under contract vs. 3 in August.
#3 Active Listing Inventory is seasonally decreasing which is a good sign
for current homeowners who are selling.
• Inventory for Single Family and Condos decreased by 3.4% in October
from September, 2010.
• Luxury properties priced above $1 million had an inventory decrease of
4.5%.
• The entire Denver marketplace has a 7.83 month supply of single family
homes.
• The entry price point up to $250,000 has a 5.89 supply of homes.
#4 Interest Rates are at Historical Lows
• 30 Year Fixed Rates are at 40 Year Lows
• 15 Year Mortgages help you build equity faster
• A 4.25% interest rate gives more buying power to keep low monthly payments.
#5 Economic Conditions are creating a new housing market for 2011.
• The lack of new homes being built will help resale prices in 2011
• The Job Market has stabilized allowing people the confidence to buy.
• Financing a new loan requires solid income and good credit, but money is available at all price points, which wasn’t the case earlier in 2010.
#6 Lack of Equity in Markets is Now Reversing the Trend
• Both financial and housing markets are seeing equity starting to increase in individual portfolios. Hence, people are saving money in 2010 that will be spent in 2011.
• There are over 100 homes per day selling in Denver as of October 8, 2010. Buyers are building wealth by purchasing now and getting an attractive equity position in their home.
• The Luxury Housing Market has an oversupply of homes above $1 million and buyers are able to capitalize on these attractive prices today. Buyers are buying at below building costs and this window will be smaller in 2011.
#7 Buyer Behavior for Housing will be more positive in 2011.
• As interest rates start to rise after the first of the year, buyers will jump on the low prices and low rates.
• Buyers will take shorter time buying because as rates rise, their buying windows change.
• Buyers are going to require more information about resale home conditions. Keep good records for your housing improvements.
What should sellers do in today’s market?
• Put your Home in Show Home Condition.
• Position Your Price aggressively against the competition.
• Consider offering unique and attractive financing terms.
What should buyers do in today’s market?
• Know the supply and demand of the neighborhood you are making purchase within. This helps your negotiations.
• Ask for HOA dues to be prepaid for a period of time as part of the negotiations.
• Work with a talented lender that understands today’s underwriting guidelines to make sure you can perform on the contract you enter.
Wednesday, September 22, 2010
Friday, September 10, 2010
Denver Real Estate Market Update September 2010
So, How’s the Market, September, 2010
All real estate data taken from Metrolist Inc., on September 8, 2010 Denver, Colorado.
“Building Wealth in the Denver Real Estate Market?”
There are 3 considerations buyers and sellers should ask their Real Estate Professionals before buying or selling a home in today’s real estate marketplace to increase wealth positions.
Consideration #1 Have Home Prices Hit the Bottom?
Depending upon the price range and location some prices have risen in 2010.
• There were more sold single family and condo properties in August 2010 then July of 2010 a 2.1% increase.
• Inventory for single family and condo homes is currently at 24,545 units, the second lowest inventory level in 5 years.
• In the price range of zero to $250,000 for single family homes there is a 5.827 month supply of homes.
• Conversely in the price range of $750,000 to $1,000,000 single family homes have a monthly supply of 23.92 months.
• Condos in the zero to $250,000 price range have a 7.599 month supply.
Prices are most affected by supply and demand. If you are in a price range or location that has less than an 8 month supply of homes, the prices are going to appreciate over the next 12 months.
Consideration # 2 Why should I sell my home in a market that has had little appreciation over the last couple of years?
The goal of selling any asset enables the seller to better position their wealth, especially for move up sellers.
• Selling in today’s market makes a seller feels like they are taking a set back in their financial position. However, moving to a higher priced home to improve their position of wealth is happening today when selling and buying real estate.
• Homes over a ten year period have appreciated 50% to 100% in any given decade since the 1950’s. This phenomenon is how a seller can gain wealth in today’s real estate world.
• If you sell your $450,000 home that would have appreciated at 3% your gain would be $13,500 per year.
• Assuming you held onto it and hoped to regain the loss in appreciation during the down market of the last 3 years you would have lost time in the world of appreciation because you bought this property at a higher value sometime in the past.
• In holding this $450,000 home for 10 years the value would be $585,000 or a gain of $135,000 in net worth.
• If you were to sell your home and move to a property that could be bought at a discounted price of 15% at $700,000 then get the same 3% appreciate over at 10 year period you would have gained $105,000 on the discount and $210,000 on the appreciation, representing a gain of wealth of $315,000 over the same period.
• The reason for selling today is to better position your future wealth, especially if you are moving up.
Selling your home right now may be one step backward to be able to take advantage of the five steps forward in buying your dream home and to obtain a very favorable appreciable position. Over the next 24 months a major shift in wealth will occur in real estate and putting yourself in this position will be a smart move.
Consideration #3 Do the low interest rates create opportunities for me as a buyer or seller?
Money is less expensive than at any time in the last 50 years. People build wealth by using money wisely.
• Both Fixed Rates and Jumbo Rates are at Historical Lows
• A $400,000 loan at 4% has a payment of $1903. The same loan amount at 7% has a payment of $2646. What would you do with $743 extra dollars per month, every month you live in the home?
• 15 year amortized loans are the vehicle to build wealth.
• Prepaying principal on loans is a way to build wealth.
• Refinancing your riskier loan types into more conventional loan types is the right step today, even if it requires putting money into the new loan.
What should sellers do in today’s market?
• Consider the Three Components of the Pricing Model, PRICE, TERMS and TIME, when placing your home on the market. Seek the advice of a professional to describe your options.
• Be the Best Positioned Home in Your Neighborhood.
• Utilize the Services of offered by RE/MAX Professionals to get more dollar for your home.
What should buyers do in today’s market?
• Get preapproved today to be a “Cash Buyer” when making an offer.
• Build wealth by getting a good price and low interest rate that can be prepaid.
• Know what the neighborhood supply and demand is to make an informed buying decision.
All real estate data taken from Metrolist Inc., on September 8, 2010 Denver, Colorado.
“Building Wealth in the Denver Real Estate Market?”
There are 3 considerations buyers and sellers should ask their Real Estate Professionals before buying or selling a home in today’s real estate marketplace to increase wealth positions.
Consideration #1 Have Home Prices Hit the Bottom?
Depending upon the price range and location some prices have risen in 2010.
• There were more sold single family and condo properties in August 2010 then July of 2010 a 2.1% increase.
• Inventory for single family and condo homes is currently at 24,545 units, the second lowest inventory level in 5 years.
• In the price range of zero to $250,000 for single family homes there is a 5.827 month supply of homes.
• Conversely in the price range of $750,000 to $1,000,000 single family homes have a monthly supply of 23.92 months.
• Condos in the zero to $250,000 price range have a 7.599 month supply.
Prices are most affected by supply and demand. If you are in a price range or location that has less than an 8 month supply of homes, the prices are going to appreciate over the next 12 months.
Consideration # 2 Why should I sell my home in a market that has had little appreciation over the last couple of years?
The goal of selling any asset enables the seller to better position their wealth, especially for move up sellers.
• Selling in today’s market makes a seller feels like they are taking a set back in their financial position. However, moving to a higher priced home to improve their position of wealth is happening today when selling and buying real estate.
• Homes over a ten year period have appreciated 50% to 100% in any given decade since the 1950’s. This phenomenon is how a seller can gain wealth in today’s real estate world.
• If you sell your $450,000 home that would have appreciated at 3% your gain would be $13,500 per year.
• Assuming you held onto it and hoped to regain the loss in appreciation during the down market of the last 3 years you would have lost time in the world of appreciation because you bought this property at a higher value sometime in the past.
• In holding this $450,000 home for 10 years the value would be $585,000 or a gain of $135,000 in net worth.
• If you were to sell your home and move to a property that could be bought at a discounted price of 15% at $700,000 then get the same 3% appreciate over at 10 year period you would have gained $105,000 on the discount and $210,000 on the appreciation, representing a gain of wealth of $315,000 over the same period.
• The reason for selling today is to better position your future wealth, especially if you are moving up.
Selling your home right now may be one step backward to be able to take advantage of the five steps forward in buying your dream home and to obtain a very favorable appreciable position. Over the next 24 months a major shift in wealth will occur in real estate and putting yourself in this position will be a smart move.
Consideration #3 Do the low interest rates create opportunities for me as a buyer or seller?
Money is less expensive than at any time in the last 50 years. People build wealth by using money wisely.
• Both Fixed Rates and Jumbo Rates are at Historical Lows
• A $400,000 loan at 4% has a payment of $1903. The same loan amount at 7% has a payment of $2646. What would you do with $743 extra dollars per month, every month you live in the home?
• 15 year amortized loans are the vehicle to build wealth.
• Prepaying principal on loans is a way to build wealth.
• Refinancing your riskier loan types into more conventional loan types is the right step today, even if it requires putting money into the new loan.
What should sellers do in today’s market?
• Consider the Three Components of the Pricing Model, PRICE, TERMS and TIME, when placing your home on the market. Seek the advice of a professional to describe your options.
• Be the Best Positioned Home in Your Neighborhood.
• Utilize the Services of offered by RE/MAX Professionals to get more dollar for your home.
What should buyers do in today’s market?
• Get preapproved today to be a “Cash Buyer” when making an offer.
• Build wealth by getting a good price and low interest rate that can be prepaid.
• Know what the neighborhood supply and demand is to make an informed buying decision.
Thursday, August 26, 2010
Thursday, August 19, 2010
Tuesday, August 10, 2010
Sunday, August 8, 2010
Denver Real Estate Market Update August 2010
So, How’s the Market, Aug, 2010
All real estate data taken from Metrolist, Inc, on Aug 5-8, 2010. Denver, Colorado.
“What are the Most Important Facts Buyers and Sellers want to know about Today’s Real Estate Market?”
There are 5 important questions posed to Real Estate Professionals from the buyers and sellers in today’s marketplace that help them decide about what to do in their real estate future.
Question 1 How will homes being foreclosed in my neighborhood affect my home value for the future?
Answer: Since foreclosed properties are typically sold, “As Is” buyers are purchasing at slightly below market values which will affect the value of homes in the same neighborhood for the short term. However, most neighborhoods have a small percentage of sales that are foreclosures. In fact, foreclosed sales average 7% of homes selling today and most neighborhoods have another 6% of short sales occurring. This leaves 87% of all sales in most neighborhoods selling at market value holding the value of your home closer to the current market conditions.
Rational Thought: Foreclosures sales or short sales do negatively affect value in the eyes of the homeowners living in the neighborhood. However, like any other non-arms length transaction the reduction in value will be dictated by the number of foreclosed properties in relationship to other sales over the last 90 days. Since most banking experts and foreclosure services are stating that any additional numbers of additional foreclosures entering the market are at the peak, the market will see less valuation fluctuations moving forward then we’ve seen the last 36 months.
Question 2 What is the current supply/demand of homes?
Answer: Knowing the supply and demand of any product predicts what the opportunities are in the market. For example, there is a 5.45 month supply of homes below $250,000 which means prices are going up in the lower price ranges. Conversely, homes priced between $1 million and $1.5 million have a 26 month supply. What do you think is happening to prices in that price range? Let me get a specific buyer supply/demand number for your home?
Rational Thought: Residential real estate is a very local market condition better measured down to specific neighborhoods. One neighborhood could have a different supply and demand dynamic than the entire market. When a homeowner asks the question of supply and demand they are trying to “time” the market to maximize their investment.
Metro Area Denver Single Family Supply and Demand for August 2010
SF Homes
Price Active Listings 8.5.10 Sold SF YTD 7.31.10 Annualized SF Sold Data for 2010 Months Supply
0-250K 7943 10146 16364 5.45
250-500K 7415 6450 10403 8.55
500-750K 2141 1098 1771 14.5
750-1M 1002 298 481 24.99
1-1.5M 617 174 281 26.35
1.5-2M 293 48 78 45.07
2-2.5M 122 23 37 39.56
2.5-3M 108 5 8 162
3M+ 145 13 21 82.85
Question 3 Is it a Good Time to Buy?
Answer: Prices have stabilized and interest rates are at 45 year lows. You couldn’t have more buying power than today. In fact with rates at 4.25% today you will typically save more than $30,000 over your ownership period if you buy today!
Rational Thought: A buyer buying today has tremendous buying power. If you take a $300,000 mortgage at 4.25%, the PI payment is $1,471 per month. If the rate were to increase to 6.25% in 2011, which is still considered a historically low interest rate, the PI payment is $1,838 per month or $367 more dollars! If the average person lives in their home 7 years, that extra amount would equal $30,828 more money in payments over the life of living in the home. What could a homeowner do with an extra $30K+ in their pocket? They could save it, pay down principal, or invest in other instruments.
Question 4 What’s a Short Sale?
Answer: This will be home sale that will sell for less than the mortgage amounts owed against the property. This can help the homeowner sell when they are distressed vs. waiting for a foreclosure. The shorter the marketing period or smaller reduction in value helps maintain higher property values in the neighborhood vs. a foreclosure and eliminates a vacant property on the street. Although nobody wants to see someone be financially distressed, if a homeowner has a legitimate hardship, this is an avenue banks and sellers of properties are using to solve the problem of not be able to pay the mortgage.
Rational Thought: Short sales do help homeowners get out from the large payment with dignity. Although the homeowner could be responsible for the deficiency of money not paid, this amount typically is smaller than if a foreclosure occurred. Short sales help the lien holders garner some dollars now vs. trying to secure money via foreclosure, which takes time. Short sales help other homeowners in the neighborhood because the values do not drop as much. Many banks have figured the loss is less on a short sale than a foreclosure, so the lending institutions have gotten better systems to accept short sales.
Question 5 How do I best protect my investment dollars in my home?
Answer: Part of my role as your real estate professional is to help you improve the equity in your home. There are several ways to create a stronger equity position and we can create a personalized Real Estate Financial Plan that I am versed in to help you better improve the equity of your home.
Rational Thought: Equity in future home ownership will be successfully achieved by positively altering the principal payments of a loan, not just waiting for appreciation to occur. Prepaying an equal principal amount per month reduces a 30 year amortized loan by more than half the time. By adding just one full payment per year to prepay the principal each year will reduce a 30 year loan to 22.4 months. Of course utilizing a 15 year amortized loan achieves a similar type of savings to the homeowner. Paying principal not interest is the secret to achieve higher equity positions. Equity gives the homeowner lots of options for the future.
What should sellers do in today’s market?
• Consider Alternative financing methods if you have a property valued above $500,000. Seek the advice of a professional to describe your options.
• Position the pricing strategy of your home so it becomes attractive to buyers.
• Have the best conditioned property on the market.
What should buyers do in today’s market?
• Lock your interest rate in to a low rate now if you plan on closing within 45 days. Buyers should not have an extra fee to lock the rate.
• There are different financing packages. Pick the one that gives you the best way to increase your equity position, like a 15 year mortgage or flexible prepay principal type loans.
• Know what the neighborhood supply and demand is to make an informed buying decision.
All real estate data taken from Metrolist, Inc, on Aug 5-8, 2010. Denver, Colorado.
“What are the Most Important Facts Buyers and Sellers want to know about Today’s Real Estate Market?”
There are 5 important questions posed to Real Estate Professionals from the buyers and sellers in today’s marketplace that help them decide about what to do in their real estate future.
Question 1 How will homes being foreclosed in my neighborhood affect my home value for the future?
Answer: Since foreclosed properties are typically sold, “As Is” buyers are purchasing at slightly below market values which will affect the value of homes in the same neighborhood for the short term. However, most neighborhoods have a small percentage of sales that are foreclosures. In fact, foreclosed sales average 7% of homes selling today and most neighborhoods have another 6% of short sales occurring. This leaves 87% of all sales in most neighborhoods selling at market value holding the value of your home closer to the current market conditions.
Rational Thought: Foreclosures sales or short sales do negatively affect value in the eyes of the homeowners living in the neighborhood. However, like any other non-arms length transaction the reduction in value will be dictated by the number of foreclosed properties in relationship to other sales over the last 90 days. Since most banking experts and foreclosure services are stating that any additional numbers of additional foreclosures entering the market are at the peak, the market will see less valuation fluctuations moving forward then we’ve seen the last 36 months.
Question 2 What is the current supply/demand of homes?
Answer: Knowing the supply and demand of any product predicts what the opportunities are in the market. For example, there is a 5.45 month supply of homes below $250,000 which means prices are going up in the lower price ranges. Conversely, homes priced between $1 million and $1.5 million have a 26 month supply. What do you think is happening to prices in that price range? Let me get a specific buyer supply/demand number for your home?
Rational Thought: Residential real estate is a very local market condition better measured down to specific neighborhoods. One neighborhood could have a different supply and demand dynamic than the entire market. When a homeowner asks the question of supply and demand they are trying to “time” the market to maximize their investment.
Metro Area Denver Single Family Supply and Demand for August 2010
SF Homes
Price Active Listings 8.5.10 Sold SF YTD 7.31.10 Annualized SF Sold Data for 2010 Months Supply
0-250K 7943 10146 16364 5.45
250-500K 7415 6450 10403 8.55
500-750K 2141 1098 1771 14.5
750-1M 1002 298 481 24.99
1-1.5M 617 174 281 26.35
1.5-2M 293 48 78 45.07
2-2.5M 122 23 37 39.56
2.5-3M 108 5 8 162
3M+ 145 13 21 82.85
Question 3 Is it a Good Time to Buy?
Answer: Prices have stabilized and interest rates are at 45 year lows. You couldn’t have more buying power than today. In fact with rates at 4.25% today you will typically save more than $30,000 over your ownership period if you buy today!
Rational Thought: A buyer buying today has tremendous buying power. If you take a $300,000 mortgage at 4.25%, the PI payment is $1,471 per month. If the rate were to increase to 6.25% in 2011, which is still considered a historically low interest rate, the PI payment is $1,838 per month or $367 more dollars! If the average person lives in their home 7 years, that extra amount would equal $30,828 more money in payments over the life of living in the home. What could a homeowner do with an extra $30K+ in their pocket? They could save it, pay down principal, or invest in other instruments.
Question 4 What’s a Short Sale?
Answer: This will be home sale that will sell for less than the mortgage amounts owed against the property. This can help the homeowner sell when they are distressed vs. waiting for a foreclosure. The shorter the marketing period or smaller reduction in value helps maintain higher property values in the neighborhood vs. a foreclosure and eliminates a vacant property on the street. Although nobody wants to see someone be financially distressed, if a homeowner has a legitimate hardship, this is an avenue banks and sellers of properties are using to solve the problem of not be able to pay the mortgage.
Rational Thought: Short sales do help homeowners get out from the large payment with dignity. Although the homeowner could be responsible for the deficiency of money not paid, this amount typically is smaller than if a foreclosure occurred. Short sales help the lien holders garner some dollars now vs. trying to secure money via foreclosure, which takes time. Short sales help other homeowners in the neighborhood because the values do not drop as much. Many banks have figured the loss is less on a short sale than a foreclosure, so the lending institutions have gotten better systems to accept short sales.
Question 5 How do I best protect my investment dollars in my home?
Answer: Part of my role as your real estate professional is to help you improve the equity in your home. There are several ways to create a stronger equity position and we can create a personalized Real Estate Financial Plan that I am versed in to help you better improve the equity of your home.
Rational Thought: Equity in future home ownership will be successfully achieved by positively altering the principal payments of a loan, not just waiting for appreciation to occur. Prepaying an equal principal amount per month reduces a 30 year amortized loan by more than half the time. By adding just one full payment per year to prepay the principal each year will reduce a 30 year loan to 22.4 months. Of course utilizing a 15 year amortized loan achieves a similar type of savings to the homeowner. Paying principal not interest is the secret to achieve higher equity positions. Equity gives the homeowner lots of options for the future.
What should sellers do in today’s market?
• Consider Alternative financing methods if you have a property valued above $500,000. Seek the advice of a professional to describe your options.
• Position the pricing strategy of your home so it becomes attractive to buyers.
• Have the best conditioned property on the market.
What should buyers do in today’s market?
• Lock your interest rate in to a low rate now if you plan on closing within 45 days. Buyers should not have an extra fee to lock the rate.
• There are different financing packages. Pick the one that gives you the best way to increase your equity position, like a 15 year mortgage or flexible prepay principal type loans.
• Know what the neighborhood supply and demand is to make an informed buying decision.
Saturday, July 24, 2010
Friday, July 16, 2010
Friday, July 9, 2010
Thursday, July 8, 2010
Michael Kozlowski -Team Koz RE/MAX Professionals Ranked (#2 May 2010) (#5 YTD 2010) RE/MAX Mountain States Region (CO,UT,WY,ND,SD)
Michael Kozlowski -Team Koz RE/MAX Professionals Ranked (#2 May 2010) (#5 YTD 2010) RE/MAX Mountain States Region (CO,UT,WY,ND,SD)
Denver Real Estate Market Update July 2010
So, How’s the Market, July, 2010
All real estate data taken from Metrolist, Inc, on July 5-7, 2010. Denver, Colorado.
“Why Should I Buy or Sell Real Estate in July?”
Market Reason 1: Low Interest Rates Attract Buyers!
Your buying power today is very strong with interest rates at 40 year lows, with rates in the 4.25% - 4.5% range for 30 year fixed conforming loans. A principal and interest loan of $300,000 at 4.5% interest rate has a payment of $1514 per month. If the same rate were at 6.5%, which is a good prediction for one year from now, the payment would increase to $1886 per month or $372 more times 12 = $4,464 extra dollars in payment. Since the average buyer lives in their home 7 years the total savings in payment for buying today is $31,248 over the course of living in the home. What would you do with $31,248 dollars?
Sellers are positioned well in the lower price ranges today as well. If you own a home between $250,000 and $500,000 the monthly supply of homes in your price range is 7.7 months supply of homes with an absorption rate of 933 homes per month. Homes that show well and are priced at the entry level for comparable prices in your area are selling.
Market Reason 2: Upper Price Range Inventories are slightly decreasing.
It’s a good time for buyers who are looking above $500,000 as the inventory is creating opportunities to purchase at or below building costs. The monthly supply of homes between $500,000 and $2,000,000 is 21.68 months with an absorption rate of 188 homes per month. The odds of selling a property priced between $500,000 and $2,000,000 over the next three months is 13.84%. This puts the buyer in the driver seat when negotiating on a property.
A seller on the market in this price range can count on 6 homes per day selling in Denver between $500,000 and $2,000,000. Seller’s that have homes that are in move-in condition and priced appropriately will sell.
Market Reason 3: Terms will drive the market for the balance of 2010.
Buyers can create terms not normally found in the marketplace. Every purchase has three components to the transaction, Price, Terms and Time. Knowing how to negotiate all three components makes for a “Perfect Storm” for buyers getting not only a good price, but terms that will not be available in future markets.
A seller knowing the buyers, especially in upper price ranges, can have the upper hand. Learn to position the terms of your home based upon buyer needs. For example, in lower price ranges, prepay 2 years of HOA dues, as a low payment is the most important buying decision for First Time Home Buyers. In upper price ranges, buy down the rate from a current jumbo rate of 5.0% - 5.5% to 2.5%. When you supply an interest rate of 2.5% on a 1,000,000 loan amount, the payment is $3,943 per month for the first year. This term will cost the seller money, but less than dropping the price every two weeks.
What should sellers do in today’s market?
• Be the entry price point in your neighborhood or geographic area.
• Offer extraordinary terms to attract buyers.
• Consider alternative financing methods of utilizing your current loan to help a buyer buy that may not have the qualifications to do under today’s lending guidelines. Seek the advice of a professional to describe your options.
• Make your home stand out from the competition.
What should buyers do in today’s market?
• Leverage your buying power with the low rates currently available.
• Investigate financing terms that could make an offer very attractive for you.
• Get Pre-Approved to buy like a Cash Buyer.
All real estate data taken from Metrolist, Inc, on July 5-7, 2010. Denver, Colorado.
“Why Should I Buy or Sell Real Estate in July?”
Market Reason 1: Low Interest Rates Attract Buyers!
Your buying power today is very strong with interest rates at 40 year lows, with rates in the 4.25% - 4.5% range for 30 year fixed conforming loans. A principal and interest loan of $300,000 at 4.5% interest rate has a payment of $1514 per month. If the same rate were at 6.5%, which is a good prediction for one year from now, the payment would increase to $1886 per month or $372 more times 12 = $4,464 extra dollars in payment. Since the average buyer lives in their home 7 years the total savings in payment for buying today is $31,248 over the course of living in the home. What would you do with $31,248 dollars?
Sellers are positioned well in the lower price ranges today as well. If you own a home between $250,000 and $500,000 the monthly supply of homes in your price range is 7.7 months supply of homes with an absorption rate of 933 homes per month. Homes that show well and are priced at the entry level for comparable prices in your area are selling.
Market Reason 2: Upper Price Range Inventories are slightly decreasing.
It’s a good time for buyers who are looking above $500,000 as the inventory is creating opportunities to purchase at or below building costs. The monthly supply of homes between $500,000 and $2,000,000 is 21.68 months with an absorption rate of 188 homes per month. The odds of selling a property priced between $500,000 and $2,000,000 over the next three months is 13.84%. This puts the buyer in the driver seat when negotiating on a property.
A seller on the market in this price range can count on 6 homes per day selling in Denver between $500,000 and $2,000,000. Seller’s that have homes that are in move-in condition and priced appropriately will sell.
Market Reason 3: Terms will drive the market for the balance of 2010.
Buyers can create terms not normally found in the marketplace. Every purchase has three components to the transaction, Price, Terms and Time. Knowing how to negotiate all three components makes for a “Perfect Storm” for buyers getting not only a good price, but terms that will not be available in future markets.
A seller knowing the buyers, especially in upper price ranges, can have the upper hand. Learn to position the terms of your home based upon buyer needs. For example, in lower price ranges, prepay 2 years of HOA dues, as a low payment is the most important buying decision for First Time Home Buyers. In upper price ranges, buy down the rate from a current jumbo rate of 5.0% - 5.5% to 2.5%. When you supply an interest rate of 2.5% on a 1,000,000 loan amount, the payment is $3,943 per month for the first year. This term will cost the seller money, but less than dropping the price every two weeks.
What should sellers do in today’s market?
• Be the entry price point in your neighborhood or geographic area.
• Offer extraordinary terms to attract buyers.
• Consider alternative financing methods of utilizing your current loan to help a buyer buy that may not have the qualifications to do under today’s lending guidelines. Seek the advice of a professional to describe your options.
• Make your home stand out from the competition.
What should buyers do in today’s market?
• Leverage your buying power with the low rates currently available.
• Investigate financing terms that could make an offer very attractive for you.
• Get Pre-Approved to buy like a Cash Buyer.
Tuesday, June 29, 2010
Monday, June 28, 2010
Friday, June 25, 2010
Thursday, June 17, 2010
Sunday, June 13, 2010
Thursday, June 10, 2010
Tuesday, June 8, 2010
Denver Real Estate Market Update June 2010
So, How’s the Market, June, 2010
All real estate data taken from Metrolist, Inc, on June 7, 2010. Denver, Colorado.
“Five Reasons to Sell and Buy a Home in June of 2010!”
REASON Number One! The buyer competition is lower than in earlier spring months, which benefits buyers. Sellers have an opportunity to capture the buyers with creative terms. Buyers will not compete with as many buyers as the previous month giving them a better negotiating position. This looks to be a short term opportunity for buyers, as we would project more buyers entering the market as rates rise.
The tax credit pushed the buyer pool into buying in March and April and the lack of properties currently under contract in one month decreased by 2001 units. This means that the pace of buyers buying has slowed down giving a buyer the buying opportunity in June 2010. Each price range and location offers different data, but if you are a buyer today you have fewer buyers as competition this month.
REASON Number Two: Interest rates hit historical lows in June in the mid 4.5% range for a conforming loan rate. The buying power is off the charts for a buyer to really maximize their housing investment. A $300,000 loan at 4.5% = $1514 dollars principle and interest per month. That same $300,000 at 7% = $1984 dollars principle and interest per month or $470 dollars more payment per month or $5640 dollars per year more. The average person lives in their home 5-7 years meaning the savings in payments over 7 years would be $39,480! Although rates are expected to rise slowly through 2010, we suggest buying now to lock in historically low rates and avoid the rush of buyers who enter the market when rates to start to rise. Is it worth it to you to save thousands of dollars in payments when you buy today?
REASON Number Three: Sellers in entry level single family price ranges which is below $350,000, can position their home against fewer properties this year than previous years. The tax credit absorbed quite a few entry level properties making for a unique “Move Up” opportunity for sellers. Sell at close to list price on the entry level home and become a buyer in the upper price range and look for a discount. The absorption rate for a single family home priced in Denver from zero to $500,000 is 5.1 months supply. This makes the lower priced range homes a sellers market. Conversely properties from $750K to 1 million and above have an absorption rate of 30 months with 2250 homes on the market and an annualize number of sold single family homes above $750K to be a projected 892 homes. This upper end phenomenon creates a buyers opportunity not normally seen in the last 50 years.
REASON Number Four: The last time the Denver market had 3 consecutive months of sold data that exceeded the previous year was 2005.
Historically, 3 straight months of increased sold data would signal the market is on an upswing. Since the Tax Credit artificially increased sales in April, watching this data over the next 3 months will be good indicators if Denver is on the rebound for appreciation or if we are still bouncing along the bottom of the market. Either way, buying now assures you of buying at the bottom of the market.
REASON Number Five: Denver is considered by numerous experts as the city that will out perform the national market in job growth and job stability for the next several years. When there is a pool of jobs, people move to the city with the jobs. When people move to a town it will lower inventory and when inventory reduces, prices go up. There are three parts to a buyer making a buying decision: 1. Average Price. 2. Interest Rates and 3. Job Stability. When all three are aligned in favor of the buyer, like June of 2010 is, properties start to move and appreciation occurs.
CONCLUSIONS:
Why Should You Considering Selling and Buying in June 2010?
• Excellent Opportunity to Buy an Appreciable Asset at the lowest prices in years.
• Low Interest Rates Make Your Buying Power Exceptional.
• Building Costs are low for those who want to build their dream home.
• Sellers are more realistic to the market conditions and their Odds of Selling.
• The future of real estate will continue to be a solid investment and buying at the lower end of the market is Smart. Do you wish you would have bought more real estate in 1988? Don’t wish the same thing in 2028 about 2010.
What should sellers do in today’s market?
• Only put your home on the market if you understand the Odds of Selling and Positioning Your Home where buyers are buying.
• Become a motivated seller by offering attractive terms to buyers
• Make your home a STAR Home! Shows Terrific And Realistically positioned.
What should buyers do in today’s market?
• Leverage your buying power with the low rates.
• Financing Terms could make an offer very attractive for you.
• Get Pre-Approved to Buy like a Cash Buyer.
All real estate data taken from Metrolist, Inc, on June 7, 2010. Denver, Colorado.
“Five Reasons to Sell and Buy a Home in June of 2010!”
REASON Number One! The buyer competition is lower than in earlier spring months, which benefits buyers. Sellers have an opportunity to capture the buyers with creative terms. Buyers will not compete with as many buyers as the previous month giving them a better negotiating position. This looks to be a short term opportunity for buyers, as we would project more buyers entering the market as rates rise.
The tax credit pushed the buyer pool into buying in March and April and the lack of properties currently under contract in one month decreased by 2001 units. This means that the pace of buyers buying has slowed down giving a buyer the buying opportunity in June 2010. Each price range and location offers different data, but if you are a buyer today you have fewer buyers as competition this month.
REASON Number Two: Interest rates hit historical lows in June in the mid 4.5% range for a conforming loan rate. The buying power is off the charts for a buyer to really maximize their housing investment. A $300,000 loan at 4.5% = $1514 dollars principle and interest per month. That same $300,000 at 7% = $1984 dollars principle and interest per month or $470 dollars more payment per month or $5640 dollars per year more. The average person lives in their home 5-7 years meaning the savings in payments over 7 years would be $39,480! Although rates are expected to rise slowly through 2010, we suggest buying now to lock in historically low rates and avoid the rush of buyers who enter the market when rates to start to rise. Is it worth it to you to save thousands of dollars in payments when you buy today?
REASON Number Three: Sellers in entry level single family price ranges which is below $350,000, can position their home against fewer properties this year than previous years. The tax credit absorbed quite a few entry level properties making for a unique “Move Up” opportunity for sellers. Sell at close to list price on the entry level home and become a buyer in the upper price range and look for a discount. The absorption rate for a single family home priced in Denver from zero to $500,000 is 5.1 months supply. This makes the lower priced range homes a sellers market. Conversely properties from $750K to 1 million and above have an absorption rate of 30 months with 2250 homes on the market and an annualize number of sold single family homes above $750K to be a projected 892 homes. This upper end phenomenon creates a buyers opportunity not normally seen in the last 50 years.
REASON Number Four: The last time the Denver market had 3 consecutive months of sold data that exceeded the previous year was 2005.
Historically, 3 straight months of increased sold data would signal the market is on an upswing. Since the Tax Credit artificially increased sales in April, watching this data over the next 3 months will be good indicators if Denver is on the rebound for appreciation or if we are still bouncing along the bottom of the market. Either way, buying now assures you of buying at the bottom of the market.
REASON Number Five: Denver is considered by numerous experts as the city that will out perform the national market in job growth and job stability for the next several years. When there is a pool of jobs, people move to the city with the jobs. When people move to a town it will lower inventory and when inventory reduces, prices go up. There are three parts to a buyer making a buying decision: 1. Average Price. 2. Interest Rates and 3. Job Stability. When all three are aligned in favor of the buyer, like June of 2010 is, properties start to move and appreciation occurs.
CONCLUSIONS:
Why Should You Considering Selling and Buying in June 2010?
• Excellent Opportunity to Buy an Appreciable Asset at the lowest prices in years.
• Low Interest Rates Make Your Buying Power Exceptional.
• Building Costs are low for those who want to build their dream home.
• Sellers are more realistic to the market conditions and their Odds of Selling.
• The future of real estate will continue to be a solid investment and buying at the lower end of the market is Smart. Do you wish you would have bought more real estate in 1988? Don’t wish the same thing in 2028 about 2010.
What should sellers do in today’s market?
• Only put your home on the market if you understand the Odds of Selling and Positioning Your Home where buyers are buying.
• Become a motivated seller by offering attractive terms to buyers
• Make your home a STAR Home! Shows Terrific And Realistically positioned.
What should buyers do in today’s market?
• Leverage your buying power with the low rates.
• Financing Terms could make an offer very attractive for you.
• Get Pre-Approved to Buy like a Cash Buyer.
Saturday, June 5, 2010
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