60 Percent or More Increase in Home Values

Study Shows Housing Values Have Climbed 

News reports have been packed with stories about declining home values, but a recent government report shows that the situation is not nearly so dire as some reports make it sound.

Despite big loses in some areas of the country, the majority of markets continue to show growth in home value over the last five years.

According to the third-quarter survey released by the Federal Housing Finance Agency, out of 292 metropolitan markets, 273 showed positive net home values in the last five years. Only 19 percent were negative. 

While home values declined 4 percent on average in the last year, values were up nearly 29 percent over the past five years.

According to the Federal Housing Finance Agency, markets that gained the most over the last five years were:

• Honolulu: up 78.7 percent
• Virginia Beach: 72.6 percent
• Flagstaff, Ariz.: 66.5 percent
• Bellingham, Wash.: 65.6 percent
• Wilmington, N.C.: 62.1 percent
• Baltimore: 60.6 percent

Source: The Washington Post Writers Group, Kenneth R. Harney, (12/06/08)

Real Estate Hot Spots in CO, TX, ND, NM and More

Top 10 Most Promising Housing Markets

Housing Predictor, which provides housing forecasts in 250 markets, has identified 10 markets where the regional economies are healthy and have strong potential for increasing prosperity.

These housing markets have bucked the national trend in 2008 and avoided the subprime crisis, the consultancy says.

Whatever the future holds for the housing market as a whole, Housing Predictor forecasts that these cities will continue to see steady, dependable growth.

Top cities and the percentage sales prices have increased so far in 2008.

Biloxi, Miss., 4.9 percent
Salem, Ore., 4.7 percent
Bismarck, N.D., 4.6 percent
Spokane, Wash., 4.4 percent
Yakima, Wash., 4.1 percent
Austin, Texas, 4.0 percent
Grand Junction, Colo., 4.0 percent
Fargo, N.D., 4.0 percent
Mobile, Ala., 3.9 percent
Albuquerque, N.M., 3.5 percent

Source: Housing Predictor (11/15/08)

First-time Homeowner Tax Credit

FIRST-TIME HOMEOWNER TAX CREDIT

It is a good time to re-familiarize people with the $7500 tax “credit” for first-time
homebuyers that all of us real-estate professionals will be asked about this spring.

Here are the highlights:

1. The $7500 tax credit is applicable to your 2008 or 2009 tax year.

2. It is for 1st-time homebuyers (people who have not owned a primary residence in three or more years)

3. The full benefit is for available for single taxpayers with incomes up to $75,000, and married couples with incomes up to $150,000

 4. The $7500 is repaid to the federal government, interest-free, in $500 increments over 15 years. These payments are part of your future tax liability.

5. The credit is for home purchased between April 9th, 2008 and July 1st, 2009

For more info, call Eric Peltier or visit: www.FederalHousingTaxCredit.com

SOURCE:

Eric S. Peltier
Dovetail Lending LLC
ericpeltier@dovetaillending.com 
Boulder, CO 80302
Phone: 303-449-0343
Mobile : 303-579-6386
Colorado License #MB100008090
NAMB Member

Is your lender Carbon Neutral, Zero Waste, Wind Powered, Locally Owned, and providing Paperless Originations?  Could Your Mortgage Be Organic?   TM

JEN’S NOTE:

This Tax Credit is essentially an INTEREST FREE loan from the government. If you are currently strapped for cash or your tax situation warrants it, this may be a good option for you.

However, if paying an additional $500 over the next FIFTEEN YEARS is going to be a struggle or annoy you severely, you may want to forego this government loan. 

Another spin on this program.

HOT Pre-Thanksgiving Interest Rate Sale

The mortgage industry just received a nice boost!  The Fed is going to buy Mortgage Bonds.  The Federal Reserve just announced that it would purchase $600B of Mortgage-Backed Securities (MBS) backed by Fannie Mae, Freddie Mac, and Ginnie Mae.  This brilliant move by the Fed is designed to help increase the availability of credit, while lowering fixed mortgage rates.

In addition to purchasing debt  backed by Fannie and Freddie, the Fed will set up a $200B program to support consumer and small-business loans.  The Fed looks for the plan to create liquidity in the auto, student and small business loan market.

I usually don’t send rates out on Tuesday but they look phenomenal.  Great time for purchasers or for past clients who may want to refi. If you have purchased in the last 6 months to a year , this may be a great time for them to consider refinancing.  

Conforming / Conventional
30 year fixed – 5.25%
15 year fixed – 5.125%

FHA
30 year fixed – 5.25%

Analysts do not expect these rates to last through the Thanksgiving holiday because preliminary retail sales will be coming out and as we all know, that is not going to be a pretty number.

Source:

Michael Delzer
First Class Financial Services
(720) 904-9048, www.fcfsdenver.com
Home Mortgages with Honesty, Integrity, Service & Trust

Interest Rate Update and Market Report

Interest Rates as of November 21, 2008

30 Yr   5.5%
15 Yr   5.375

ARMS
3 Yr   4.90%
5 Yr   5.20
7 Yr   5.70

JUMBO
30 Yr   6.40%
15 Yr   6.15
3 Yr ARM  5.30%
5 Yr ARM  5.5

FHA/VA
30 Yr   5.5%
15 Yr   5.375
3 Yr ARM  5.875
5 Yr ARM  6.0

Mike Delzer’s Report of the Mortgage Market:

The stock market has experienced a wild day. Stocks rallied hard during the last hour of trading, including a 530 point swing higher in the Dow, following several news reports that President-elect Barack Obama will appoint present New York Fed President Timothy Geithner as his Treasury secretary. This removed a degree of uncertainty for the stock market over who the new Treasury Secretary would be and helped divert focus from the implosion that has been taking place in financial services giant Citigroup. 

Fed Reserve member Jeffrey “The Dissenter” Lacker spoke this morning and said the economy could begin a recovery in 2009 as low interest rates, low energy prices, and less drag from the  housing sector may shore up spending.  He also noted “Many analysts expect the US economy to regain positive momentum sometime in 2009.  That strikes me as a reasonable expectation.”   This is somewhat comforting news amidst all the negativity we are seeing in economic reports as well as from the media.

Source: 
Michael Delzer
First Class Financial Services
(720) 904-9048, www.fcfsdenver.com
Home Mortgages with Honesty, Integrity, Service & Trust

Jen’s Thoughts:

Holy Cow! 5.5% interest rate? If you are thinking of buying, now is the time!

Anywhere or Texas?

Houston, Texas was my latest travel conquest. 

Over a long weekend Josh and I went to visit his sister and her family in Houston, Texas. This was my very first trip to Texas and I was excited to experience new territory. 

“Hey, that looks like the new strip mall in South Denver.” 

“Ya, lets sit outside for lunch. The weather is great!”

“A salsa bar and fresh tortillas? We need one of these in Denver!”

“Good Lord! This frontage road is actually a second highway that parallels the “main” highway. These 24 lane highways make it difficult to see if there is any scenery.”

“Where are the sidewalks? Walking to school with the kids–as ginormous SUVs (saw a yellow hummer twice… the full size type) barrel down the neighborhood roads–would be much safer with sidewalks.”

Mostly Houston looks like any other mid-sized city with surrounding suburbs. Something about Houston was just a little different. But what?! 

Houston’s strange uniqueness is that it combines all the concrete of NY with the flatness of Kansas and the Palm Trees and Plumerias of California. Now that isn’t just anywhere, that is Houston.

Top Performing Denver Neighborhoods in 2007

Metro Denver Neighborhoods that have seen a 6% or greater increase in average home prices sales over the last year (condos not included), from Jan 1, 2006 to Dec 31, 2007 are listed below.**

 

Neighborhoods (approx. location): 

avg home price/price increase

 

NORTH

Wadley Farms (N 1-25/E-470): $325K/6%

Quail Crossing (136th/Zuni): $242K/7%

Legacy Ridge (112th/Federal): $436K/16%

Hidden Lake (64th/Federal): $191K/16%

1 Alkire Estates (72nd/Alkire): $423K/13%

WEST

Green Mountain (Alameda/S Alkire St): $316K/7%

Jefferson Green (Kipling/285): $255K/6%

Ken Caryl Ranch Plains (Sims/C-470): $349K/10%

Chatfield Bluffs North (Kipling/C-470): $313K/9%

CENTRAL

West Highland (29th/Sheridan): $330K/7%

Jefferson Park (26th/I-25): $252K/6%)

Five Points (19th/Larimer): $313K/9%

Wash Park West (Lincoln/Alameda): $432K/10%

Wash Park East (S. Downing St/Alameda): $654K/9%

(Wash Park home pictured above is across from the park and listed at $719K)

Belcaro (University/Alameda): $1059K/17%

Rosedale (Broadway/Evans): $307K/11%

University (Downing/Evans): $347K/10%

University Park (University/Evans): $750K/12%

Welshire (University/Yale): $504K/13%

EAST

Hilltop (Colorado/Alameda): $961K/15%

Lowry Field (Quebec/Alameda): $666K/12%

Hampden (I-25/Hampden): $321K/6%

SOUTH

Glenmoor of Cherry Hills (University/Belview): $227/19% *Zero percent foreclosure rate!

Meadow Hills (Parker/Hampden): $403K/13%

Woodgate (Parker/Quincy): $413K/7% *45% foreclosure rate

Ridgeview Hills (University/Arapahoe): $302k/11%

Plum Creek Acres (Santa Fe/C-470): $602K/9%

Wildcat Ridge (Grigs Rd/McArthur Ranch Rd): $414K/7%

** Source: Your Castle Analysis, MLS

A Bust Denver Economy?

The cost of living index for Denver in 2006/2007

(nat’l avg = 100) / Denver Consumer Avg Expenditures

all items = 103.2 / $49,996

grocery = 102.2 / $6,251

housing = 110.4 / $15,772

utilities = 104.4 / $3,013

transportation = 95.9 / $8,646

health care = 105.8 / $2,724 

entertainment = ? / $3,227

Population in Denver County

Total = 566,974

Male = 50.9%

Female = 49.1%

Owner-occupied housing units = 55.6% (Colorado 68.7%)

Median household income = $40,900 (Colorado $52,015)

Jobs gained in Colorado between Nov 2006 and Nov 2007 = 34,375

Denver Median Home Price (current US Median $210,200)

December 2006 = $247,500

December 2007 = $220,000

Carlon Index

In the month of October, each job in Colorado generated an average of $4,402 in retail expenditures. That is a 9% increase from October 2006.

Definitions to remember from high school…

Median: the midpoint in a series of numbers; half the data values are above the median, and half are below. For example, in the odd series 1, 4, 9, 12 and 33, 9 is the median. In the even series 1, 4, 10, 12, 33 and 88, 11 is the median (halfway between 9 and 12). …

Average: The average is the total of all pieces added up and divided by the number of pieces. 

Are you a 720?

Picture: Grauer Real Estate, an eco-conscious company, yard sign on custom crafted post made of recycled beetle kill lumber. 

Took a mortgage info class this morning. Here’s the scoop…
 

* Sub-prime loans are loans given to people with poor credit (less than 680 credit score) 

* Approx 50% of home loans in 2005-2006 were sub-prime type

* Sub-prime loans account for 76 out of every million mortgages in the US

* If your credit score is lower than 720 you’ll now have a more difficult time securing a loan

* The next 6-12 months will be an EXCELLENT time to buy in the Denver/Boulder area… low interest rates and low home prices