It seems that we have all been looking down quite a bit lately – everyone is looking for the bottom of the stock market, and for the bottom of the Denver real estate market. While I’m still looking for the bottom of the stock market (hopefully, it is almost here!), it certainly seems that we have already hit the bottom of the Denver real estate market. 

Metrolist released its monthly sales figures yesterday, which revealed that Denver home sales continue to increase, while inventory continues to decrease. The statistics indicated that there was a 14.1 percent increase in Denver home sales from September 2007 to September 2008. Inventory plummeted 21.1 percent from last year. The only blip was that the median Denver median home price of $216,150 is a 12 percent decrease from last year.

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Ever wonder where the good news is these days?  Well, here is some food for thought:
 
There are a handful of states causing the negative media coverage, including Ohio, Michigan, and Indiana. The other states causing problems are the previously booming housing markets of California, Florida, Nevada, Arizona, Utah, and Illinois - notice that COLORADO is not on the list! Analysts have stated that the problems in the formerly red-hot housing markets of California, Florida, Nevada, and Arizona, are stemming from speculators walking away from mortgages that they can no longer afford.
 
Here are some other interesting facts:

1. 35% of homes in the United States do not have a mortgage.
2. Approximately 94.88% of mortgage loans are performing.
3. Only 25% of all mortgages are subprime loans, and of these, 75% are performing.
4. The foreclosure problems are mainly in the nine states mentioned above. 
5. The biggest foreclosure problems are in Michigan, Ohio, Nevada, California, and Indiana. Some of these are manufacturing states that have had massive job losses. Since 2001, Michigan has lost over 400,000 jobs. These states would probably have had problems no matter what the market was doing. 
6. The other states experienced significant over building. 25% of the foreclosures in these states are on properties that are held by investors who were speculating.
7. In Colorado (and 42 other states), the number of foreclosures has declined in 2007 and 2008 from 2006.

Buyers waiting to purchase a home when the all-clear signal is flashed will be left sitting on the sidelines. There is no question that there is bad news in some markets. While Colorado isn’t in the top foreclosure list, we’re having our issues, too. What irks me is that there is also a lot of good news that is either being buried or not being reported at all. TeamCox Realtors will continue to post the positive and negative news regarding the Denver housing market.

For more information on the Denver real estate market, please contact TeamCox Realtors at 303-400-6060.

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Denver Home Prices Faring Better than Rest of the Country

Colorado is a wonderful place to live year-round, but it is especially glorious in the autumn. The Rocky Mountains are truly spectacular during the fall when the aspen trees transform into shimmering gold brilliance for a few short weeks.

Recommended Fall Events in Denver

If you have an established credit-worthy FICO score, there is definitely money available if you are looking to buy a home in the Denver real estate market. Yes, lending constraints have tightened, but we are confident in the working relationships that we have established with quality Denver lenders. Here is how I see it:

1. It is a fact that liquidity has tightened and some mortgage companies have had difficulties funding their loans. Correspondent lenders’ credit lines are shrinking, and mortgage brokers have less room to maneuver with wholesale lenders. If you are in the market to buy a home, you should work with an experienced real estate agent that has established relationships with well-capitalized lenders. It is essential that your funds will be there when needed at the closing.

2. As a borrower, you should always work with a lender that can accommodate all types of loans, including FHA, VA, Conforming and Non-Conforming loans. With the recent price increases with PMI (private mortgage insurance), FHA has become much more attractive than in years past. With recent MIP (FHA’s mortgage insurance premium) changes, higher credit score FHA buyers, even those with 10% down or more, may benefit by comparing an FHA loan with a similar conforming loan.

3. As a homebuyer you should get preapproved rather than just prequalified. With no assurances of what future mortgage industry changes will look like, many agents are insisting on a fully underwritten preapproval (subject to appraisal) before house hunting and presenting an offer. Likewise, sellers should always demand, before tying up their property for 30 days or more that a “preapproved” offer is being presented. Nobody benefits when a listing is “tied-up” to find out later that a “prequalified’ borrower’s underwriting terms have changed and, as a result, they no longer qualify for a loan.

4. Sellers, if mortgaging your next transaction, you should also get preapproved prior to listing your current home. With recent mortgage changes, you will want to know that you qualify for a new home loan before you sell your current residence.  We certainly would not want the experience of explaining to a home seller that you have to rent rather than buy and your current home is under contract!

If you have any questions concerning buying a home in the Denver metro area, please contact a TeamCox member at 303-400-6060.  We are always happy to answer your inquiries.

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Good news! IKEA announced today that it plans to build its first Colorado store in Centennial! The new store will be located between County Line Road and Dry Creek Road. The Denver Post reports that the new IKEA, which is slated to be more than 400,000 sq. ft. spread out on two different levels, will bring approximately 400 jobs to the South Denver area.

For those of you who don’t know of IKEA, it is not your everyday furniture store, but an international phenomenon. The successful Swedish company sells sleek and stylish home furnishings at very competitive prices. One common complaint about IKEA is that many of its products need to be assembled, but you’ll likely let that one slide once you see all of IKEA’s unique offerings!

TeamCox Realtors will let you know when IKEA announces the opening date for the new Centennial store.

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Reluctant Denver Homebuyers are Missing Out on a Great Opportunity!

The Rocky Mountain News recently published an interesting article that examines an epidemic currently plaguing the Denver real estate market. In Friday’s article, “Home buyers have cold feet in hot market,” RMN Reporter John Rebchook examines a trend plaguing the Denver real estate market– although home prices are low and inventory is plentiful, many prospective homebuyers are simply sitting on the sidelines, fearful that they will make a mistake. We don’t want our prospective homebuyers to miss out on one of the most optimal buyer’s markets in years, so TeamCox Realtors has been trying to cure for this epidemic for months. If you are a bargain hunter, now is the time to purchase a home in Denver.

We understand homebuyers’ uncertainty given the state of the national real estate market, but the Denver housing market is rebounding much faster than other cities’ markets. Last month’s S&P/Case-Shiller Home Price Index indicated that Denver home prices are faring the best out of the 20 metropolitan areas surveyed. Other strong indicators are that the pace of home sales is increasing, and the inventory of homes for sale has plummeted 15% from last year. A few more reasons to buy this fall include: mortgage rates are relatively low, sellers are willing to negotiate much more than they will next fall, and there are bargains to be found throughout the Denver metro area. One other thing to consider is that even if your home doesn’t sell for top dollar, you will easily make this amount up when you negotiate a fantastic deal on your new dream home. 

In addition, if you are first time Denver homebuyer, it is imperative that you understand all of the changes that will be taking effect on October 1st - please click here to read our blog on this subject. You will need to act very quickly to beat this deadline.

Warm up those cold feet, and start house hunting! If you are sitting on the sidelines, waiting for the Denver real estate market to rebound, someone else is going to snatch up your dream home at a fantastic price. For more information on purchasing a home in the Denver real estate market, please contact TeamCox Realtors at 303-400-6060.

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