Is It Too Early to Call It a Trend?

Earlier this week, the National Association of Realtors reported that in December, existing home sales rose unexpectedly while inventory declined.

The national real estate organization reported, “Existing home sales – including single-family, townhomes, condominiums and co-ops – jumped 6.5 percent to a seasonally adjusted annual rate of 4.74 million units in December from a downwardly revised pace of 4.45 million units in November, but are 3.5 percent below the 4.91 million unit pace in December 2007.”

Total housing inventory at the end of December fell 11.7 percent to 3.68 million existing homes available for sale, which represents a 9.3-month supply at the current sales pace, down from a 11.2-month supply in November.

Here at home, the sales news only gets better. Earlier this week, we released our December luxury home sales release—which was picked up by countless news media outlets:

http://www.wilmington.dbusinessnews.com/shownews.php?newsid=175342&type_news=past

http://www.dailycamera.com/news/2009/jan/26/boulder-real-estate-denver-area-luxury-home-sales/

Among the top findings in the report:

• A total of 48 properties sold for more than $1 million last month, up from 35 in November


• At the same time, the median price of million-dollar property sales fell to $1.23 million, down more than 17 percent from November and more than 8 percent from the previous year

As the report notes, over the past few months we have started to see a gradual turnaround in home sales in our region, and that’s encouraging for an ultimate rebound in the housing market. Much of the sales increase has been focused on the lower end of the market rather than the move-up and luxury housing market. We have to work through this process and it’s going to take time, but ultimately I think you’ll see every segment of the market benefiting.

So why the sudden, so drastic surge in sales? There are a few reasons:

• A lot of people who were previously priced out of the housing market can finally buy


• With interest rates under 5%, a buyer’s purchasing power is at its best in more than three decades


• After months of increasing or stable inventory, we are finally starting to see the numbers fall


• Increased consumer confidence (of late) based on the new administration


• We’re seeing a lot more investors coming into the market in addition to first time buyers

So is it too early to call it a trend? Probably. In all honestly, we still have a lot of distressed properties to move through before we can begin to see prices stabilize. At least for the foreseeable future, buyers will probably have the edge but with an 84.9 percent increase in sales year over year and inventories on the decline, we’re finally moving in the right direction. The key to all of this: buyers are ready to buy when they perceive a good value. Until then, they wait.

Now let’s take a look at this week in real estate:

• Boulder County—Our Boulder office reports that it is a bit too early to tell how 2009 will fair. 2008 ended steady from the rest of the year and January appears to look the same. It appears our Agents are busy, largely in part to the new, lower interest rates. Our Longmont office shares that lenders are reporting increased activity, both applications for new loans and refinancing. Activity is in all price ranges not just lower end homes. Floor calls are picking up and Agents are having activity on listings.


• Clear Creek County—Our Evergreen office reports increases across the board with listing inventory, sales activity and showing activity all on the rise. We had 13 new listings during the week including a six lot subdivision plus a $1.8 million spec home. We also listed a $5.2 million estate in Soda Creek. We had 52 showings plus five Agent previews during the week compared to 44 last week.


• Denver Central—Our Denver Central office reports that we are seeing multiple offers on about 10% of our listings, largely thanks to bank owned and short sale properties. We saw some spikes in showings this week, including 102 on Friday. We are seeing an increase in qualified leads which hopefully will translate to solidified deals.


• Devonshire—We have seen a huge change over the last two weeks in showings and in contracts presented and accepted. We have a house in Washington Park that went on the market last Wednesday and had three offers by Friday, with an accepted offer by Friday night.


• El Paso County—Our Colorado Springs office notes that buyer activity is on the rise. We had six contracts written this week alone. Buyers are out there and inventory as a whole is starting to decrease in the market. There are still many short sale and bank-owned properties on the market that are driving down prices, however.


• Jefferson County—Our Conifer offices notes that listing inventory, sales activity and showing activity are all on the rise. We had two listings that went into multiple offers this week and we represented a buyer in a multiple offer situation. We saw a significant number of price reductions this week as sellers begin to realize the fact that properties that are selling are extremely competitively priced.


• Larimer County—Our Fort Collins/Loveland office reported an increase in showing activity. The market, however, seems to be in a holding patter. We had an up-tick in showings but nothing that we are confident that would support a trend. We have heard that some buyers are waiting for the 4.5%, 30 year fixed to appear long enough for folks to take advantage of it.


• North Metro—No information reported this week.


• Parker—Activity is still increasing throughout our region. However, there are still several areas with significantly declining values. Wherever we have a good portion of new construction, the values have decreased between 5% and 20% (Pradera 15%, Idyll Wild 20%). The established areas are stable in value right now. Bank-owned properties are still moving quicker (priced more aggressively = more energy!) and we are seeing more success with short sales.


• Southeast Metro—We had 12 multiple offers this week alone! The office is extremely busy with showings and Agents are having some difficulty actually finding properties in the under $350,000 range. Coldwell Banker Home Loans put into process $4.5 million in loans so far this month. We have listed 51 new properties as of today and we have 75 transactions scheduled to close this month.


• Southwest Metro—Our market is doing well for January. Showings have increased each week and listings are on the rise. Buyers seem to be ready to move. Our inventory in Highlands Ranch has been low and is growing at a steady pace.

The bottom line is that while sales are on the rise, we still have many distressed sales that must work their way through the system. With Wednesday’s controversial passing of the stimulus package (with a near party-line vote), we can only hope that the administration’s plan—in what we know is unchartered territory for our country—is successful. Read more at:

http://www.washingtonpost.com/wp-dyn/content/article/2009/01/28/AR2009012800196.html?hpid=topnews

The administration needs to move fast to stimulate a spring sales upturn and set the foundation for an economic recovery.

Until next week,

Chris Mygatt
President and Chief Operating Officer
Coldwell Banker Residential Brokerage Colorado

It’s Time to Pick Ourselves Up and Dust Ourselves Off…Yes We Can!

Regardless of your political persuasion, Tuesday’s inauguration of the 44th President of the United States was one for the history books and I think we all agree that we hope that the change President Obama has promised will come sooner rather than later.

In the words of our new President during his inaugural address, “Starting today, we must pick ourselves up, dust ourselves off and begin again the work of remaking America. For everywhere we look, there is work to be done. The state of the economy calls for action, bold and swift, and we will act—not only to create new jobs, but to lay a new foundation for growth.”

There’s no question, Obama has his work cut out for him. This week CNN reported, “The scope and intensity of problems facing President Obama are similar only to those that Franklin D. Roosevelt faced in 1933.”

Obama is expected to hit the ground running. History shows that the first year of a President’s term is most critical. At some point, he will own the problems he has inherited and so time is of the essence; he knows he must take immediate action.

In the short run, Obama has pledged to work with Congress to implement aggressive policies—including as I referenced last week, making better use of the TARP funds—to prevent foreclosures and strengthen existing home sales. With the second half of the TARP funds now available to him (totaling some $350 billion) we should see the beginning use of those dollars sometime within his first 100 days in office. Obama has promised to devote $50 billion to $100 billion to a new foreclosure prevention program, leaving him between $250 billion and $300 billion of TARP money to address the continuing credit crisis.

As Obama was being sworn in, the world as we know it continued. One of the current issues most affecting our market is the drop in mortgage loan limits for conventional financing as of the end of 2008. This is dramatically hurting home sales and trade-up activity in higher price ranges. According to NAR, “The latest existing home sales data shows transactions under $400,000 are 3 percent below a year ago. However, sales of homes priced at $750,000 or more have declined a whopping 47 percent.” Buyers who need jumbo mortgages must pay interest rates that are nearly 2 percentage points higher than conventional financing; as a result, the high-end market is very slow and buyers in higher price ranges are at a severe disadvantage.

Currently NAR is pushing for the permanent increase of mortgage loan limits to that $729,750 cap. According to a statement released this week by NAR, “To illustrate in dollar terms if mortgage limits are permanently raised to $729,750…the mortgage payment on such a loan would drop by $942 per month by lowering interest rates 2 percentage points. Over the life of a 30-year loan, the homeowner would save $338,000.”

Especially here in our market, we need the increased loan limits so people in all prices are able to purchase. I am a firm believer that every segment of the housing market needs a turnaround to spark an overall housing recovery.

With this information in tow, let’s take a look at this week in real estate, including the release of our January luxury home release—which will be distributed to Colorado media today: http://www.myrecafe.com/accessible/viewDocument.aspx?documentID=5560

• Boulder County—Our Boulder office reports that listing inventory and sales activity is steady though showing activity is on the rise. In fact, showings have tripled in our area. Buyers seem to be getting motivated to capitalize on the lower interest rates. We have had reports from Agents that their listings are going under contract if they are priced correctly and competitively for the market. The offers on over-priced homes are usually right at the true market values and those that are over-priced are still sitting with a few showings. Our Longmont office reports that listing inventory and showing activity is increasing while sales activity is decreasing. Specifically, floor calls are picking up. We are also finding that sellers are asking for help with decisions concerning short sales and bankruptcy. Buyers are still looking for the best values and it is common for negotiating of the final sales price to be 10-15 percent less than the list price on even the most well priced homes.
• Clear Creek County—Our Evergreen office is reporting steady listing inventory and increasing showing activity though sales activity has decreased. We haven’t seen a large number of multiple offers though we did represent two buyers in multiple offer situations this week. One home was priced at $150,000 in Lakewood and received 14 offers. One buyer offered $10,000 over the list price and lost. Another was a $340,000 Lakewood home that received two offers and we’re still waiting to hear an answer. We had 46 showings during the week with a total of 130 month to date.
• Denver Central—Our Denver Central office reports that though we are not seeing an increase in listings, we are seeing good activity. Our floor calls are up as well as leads generated directly through calls from our Agents to sphere, farm, etc. With interest rates at all time lows, many buyers are back in the market and actively looking. We believe the increase in contacts and appointments will correlate to an increase in sales and listings in the upcoming month. The energy is good and public perception is more positive than in the past. We are also seeing growth and interests from our higher-end buyers.
• Devonshire—Steady but sure is the rule of thumb in the Devonshire office. Having said that, we are anticipating change now that the inauguration is over and we can finally move forward into 2009. We saw good showing activity this week though contracts are a little slower to be accepted. This is largely in part due to so many short sales that need bank approval. The old real estate adage holds true in this market: If it shows well and is priced well, sales will follow.
• Douglas County—Our Southwest Metro office is reporting an increase in sales activity and showing activity along with continued signs of improvement. The buyers are very interested in either starting or restarting their search for a home. Sellers are calling to list their homes in the next month. Now that the new year has begun and the inauguration is over, the phones are ringing again.
• El Paso County—Our Colorado Springs team reports increases across the board including listing activity, sales activity and showing activity.
• Elbert County—Our Parker office reports some areas of Douglas County are beginning to see a reverse trend with decreasing inventory. We are seeing a steady increase in both showing activity and sales activity. Floor calls and walk-ins are on the rise.
• Jefferson County—Our Conifer office reports listing inventory is on the rise with three new listings taken this week. We had three offers on our listings including one multiple offer situation for a bank-owned home in Bailey. We also represented one buyer in a multiple offer situation. The Morrison home was priced at $175,000. We had 32 showings during the week with a total of 83 month to date.
• Larimer County—Our Fort Collins and Loveland offices share that Northern Colorado remains well-positioned to weather our current national economic woes. Because of the diversity of our industrial opportunities such as bio-tech, renewable fuels, solars, wind as well as increased natural gas exploration—we are an attractive and affordable solution for this next generation of primary job providers. That being said, we are also seeing comparatively flat sales in our market and have become highly attractive to out-of-state buyers as well as local residents looking to trade-up. One Agent recently told of a property in Water Valley (a resort style community with golf and water sports on site) that was a four bedroom, three bath home with an eight card garage. The property was under $350,000! Clearly the time to buy is right now. Available inventory levels dropped consistently throughout 2008—so when the Spring increase in demand hits, we may see prices start to creep upwards. With interest rates remaining low, qualified buyers have more purchasing power than at any other time in our community’s history.
• North Metro—Things are heating up! We have taken more listings recently and showings are way up. Having more properties for potential buyers means sales will increase even more than recently. Sales are rising steadily partly because of so many properties. We had six multiple offers this week—both listings and sales. It was a good week!
• Southeast Metro—Our Southeast Metro at DTC office reports listing inventory and showing activity are on the rise. Plus, we had 12 multiple offers this week! For its third consecutive week, our Southeast Metro at DTC office is reporting positive signs. A trend? Let’s hope. Plus, this week we officially have proof that homes under $250,000 that are in great condition (and aren’t even short sales or REOs) can sell fast. One Agent listed a home, put it on the market on late Wednesday afternoon and began showing it on Friday. By Friday evening we had our first offer and by Saturday afternoon we had a second offer. We also received calls from eight other Agents wanting to write offers. This is important anecdote for buyers and sellers to remember. Sellers consider the fact that pricing and showing your home are keys to success in this market. Buyers, this is a good reminder that you can’t get too complacent. Yes, there are a lot of homes on the market right now but if you find a home that you like, don’t delay. Take action and make an offer or that perfect home may just pass you by.

If nothing else, this week’s change in executive leadership of the United States of America changed—even if it was slightly—consumer confidence at a time when we need it most. During his acceptance speech in November, Obama repeated in a rhetorically symbolic gesture, “Yes, we can.” If it provides any solace in this time of challenge, I would agree with the words of our now President and add:

• Yes, we can move past this challenging market.
• Yes, we can rebuild our market to its once robust roots.
• Yes, we can keep things in perspective and remember that we came from one of the hottest real estate markets of our time and today’s market is the economy and demand moving back into equilibrium.
• Yes, we can remember that with today’s low interest rates, motivated sellers and generous inventory, it’s a great time to buy!
• Yes, we can remain united and be reminded that this too shall pass.

It’s just a matter of time. So let’s collectively pick ourselves up, dust ourselves off and move forward as our future is bright.

Until next week,
Have a great one,

Chris Mygatt
President and Chief Operating Officer
Coldwell Banker Residential Brokerage Colorado

It Won't Happen Overnight...But We're On the Right Path

In continued display that the President-elect will hit the ground running when he takes office in just four days, Obama met with Congress on Tuesday to ensure he’ll have more than a trillion dollars at his disposal within weeks of his inauguration to begin rebuilding our ailing economy. Just two days later (on Thursday), the President-elect secured access to the second half of the $700 billion financial rescue package after the Senate voted 52-42 against a measure that would have blocked the funds’ release—many members of the Senate felt the Bush administration wasted the first half and were concerned that the Obama administration may do the same.

The President-elect says he hopes to have the ability to tap into a portion of that money within days of becoming President. His plans with the money as well as a stimulus package he hopes to see lawmakers approve, shortly, include:

• Creating more than three million jobs, many of them in construction and manufacturing
• A focus on helping homeowners avoid foreclosures
• Stimulate housing investment and help current homeowners
• Provide needed liquidity to commercial mortgage markets to ensure that financing is available
• Work more to help people get student loans and car loans
• Make sure that the taxpayers’ money didn’t go to high salaries or bonuses for Wall Street executives
• Requirement of continues reports on earning, repayments and lending practices from institutions that receive bailout funds

Obama’s economic aids assure that the incoming administration will be responsible with its spending of the Troubled Asset Relief Program (TARP) funds and pledged to commit some $50 billion to $100 billion to address foreclosures.

As we well know, one of the biggest challenges currently affecting our market is the difficulty of even the most qualified buyer to secure financing. The goal of TARP is to open the housing and financial system so buyers—especially those with good credit—are able to once again secure financing.

Several weeks ago in my Reality Check message I made reference to the fact that real estate was in probably one of the best positions—industry wise—for a correction. This is thanks to the fact that lawmakers realize that because housing makes up 20% of the GDP, our economy cannot be fixed without fixing the housing sector. With Obama’s recent outreach to Congress and the TARP funds now available, we’re starting to see the first in what I believe to be several outreach efforts to fix the hard hit housing industry.

Now don’t be fooled. This won’t happen overnight. We’ve got a long road ahead and depending on what forecast you are reading, some say we’ll start seeing a turnaround in mid-2009 and others say we may not see it until 2010, but the good news is that we are on track and our country is finally moving in the right direction.

Locally, we are also heading in the right direction. Just this week, Relocation.com named Denver the second most popular destination in the country for people looking to make a long distance state-to-state move—reinforcing what we already know—that though we’ve all been hit hard by the recession, people are still drawn to our market due to our remarkable weather, scenery, infrastructure, jobs and of course, lifestyle.

And I hope none of you missed the fact that Men’s Fitness Magazine just named two Colorado cities (Colorado Springs [2] and Denver [4]) as the top five most fit cities in the country. Gosh, we live in a beautiful place! Doesn’t it make you proud?

Now, on that positive note, let’s take a look at this week in real estate:

• Boulder County— Our Boulder office reports that 2008 ended steady and early January is about the same. Agents seem to be busy and the office is predicting that new, lower rates should help the year start fair. Our Longmont office notes that lenders are telling of increased activity—both appointments for new loans and refinancing. We are starting to see activity in all price ranges—not just lower-end homes. Floor calls are also picking up and many Agents are seeing activity on listings.
• Clear Creek County—We’re seeing the word “Increasing” across the board from our Evergreen office with increases in listing inventory, sales activity and showing activity. Our Evergreen office reports 13 new listings during the week including a six lot subdivision plus a $1.8 million spec home. We also listed a $5.2 million estate in Soda Creek. The Agents in Evergreen have been very busy, too, with 52 showings (plus five Agent previews) during the week compared to just 44 last week. Floor activity is increasing with two walk-ins and four floor calls during the week. Activity is picking up so buyers and sellers be aware!
• Denver Central—Our Denver Central office is reporting decreased listing inventory and steady activity in sales and showings. We are seeing multiple offers on about 10% of deals—most of which are bank owned and short sales. The city of Denver is enjoying a relatively balanced market with about a 5-6 month supply. We’re also seeing an increase in the amount of listing appointments—a good sign of good things to come over the next several weeks. This week we did see some spikes including 102 showings on Friday but the market has been a bit slower—probably due to the 3-5” of snow we received.
• Devonshire—We have seen a huge change over the last two weeks in showings and in contracts presented and accepted. We have a house in Washington Park that went on the market last Wednesday and had three offers by Friday—with an accepted offer by Friday night. Now that the holidays are over, the market is picking up some steam.
• Douglas County—Another market in which we are seeing increases across the board, our Southwest Metro office is reporting that it is doing well for January. Showings have increased each week and listings are increasing. Buyers seem to be ready to move. Our inventory in Highlands Ranch has been low and is growing at a steady pace.
• El Paso County—Our Colorado Springs office reports increasing sales activity and showing activity. Buyer activity is picking up. This week we had six contracts written by our Colorado Springs team. The office reports that buyers are out there and inventory as a whole is starting to decrease in the market. There are still many short sale and bank owned properties on the market that are driving prices down but as we push through that inventory we will begin to see prices stabilize.
• Elbert County— Our Parker office is noting increases in activity, showings and listings as well as five multiple offers. Activity is still increasing throughout our market. However there are still several areas with some significantly declining values. Wherever we have a good portion of new construction, the values have decreased between 5% and 20% (Pradera 15%, Idyll Wild 20%). The established areas are stable right now. Bank owned properties are still moving quicker and homes that are priced more aggressively are getting more energy and we are seeing more success with short sales.
• Jefferson County—Our Conifer office is reporting new listing this week and multiple offers on two of our listings. We also saw a significant number of price reductions during the week and the office reports 34 showings this week bringing us to a total of 54 month to date. Our West Lakewood office notes that listing inventory and showing activity is increasing and sales activity is steady.
• Larimer County—Our Fort Collins and Loveland offices are reporting steady listing inventory and sales activity though showing activity is on the rise. The market remains in a seeming holding pattern. We have seen an uptick in showings but nothing that would support a trend. We have heard that some buyers are waiting for the 4.5% 30-year fixed to appear long enough for folks to take advantage of it.
• North Metro—Sales activity is down but showing activity and new listings are up which are good signs of great things to come over the next several weeks. We expect to see some good contract activity over the next few weeks.
• Southeast Metro—Last week we reported that the office was abuzz with activity. Well good news, nothing’s changed! Listing inventory and showing activity is on the rise and this week our Southeast Metro @ DTC office is reporting 12 multiple offers. The office is extremely busy with showings and Agents are having some difficulty in the market below $350,000 actually finding homes for buyers. We have listed 51 new properties as of today and we have 75 transactions scheduled to close this month. Wow, hang on folks!

Overall, we are seeing a lot of variances in the market—depending on the region.

There is still the public perception that the market is not good which is a good reminder for Agents, buyers and sellers alike that they should focus less on what the media is saying and more on their desire to purchase or sell their home. One important note to consider, especially, is that most media outlets are reporting on national and/or regional data and as we well know, real estate, like politics, is local. Every community and neighborhood is different and relying on regional and/or national data—often which is outdated by at least six weeks—may be a big mistake especially as we grow closer to a real estate turnaround. Remember, now is a great time to buy—but that won’t last forever!

Have a great week!

Chris Mygatt
President and Chief Operating Officer
Coldwell Banker Residential Brokerage Colorado

Welcome to Weekly Market Watch

Happy New Year! It certainly is nice to be back and full swing into work. The holidays of course are great but oh how I miss the energy, enthusiasm, excitement—and who could forget the 200 e-mails a day—that our day-to-day business brings.

Now that 2009 has begun, by far the most common questions I get are: “When will this recession be over?” and “When will the housing market begin to rebound?” Now as much as I would love to, I don’t own a crystal ball but what I can offer is my own personal weigh in on what I see as the future for our market.

First, let’s look at the economy. Anyone who believes that the economy will completely rebound in 2009 is probably in a fantasyland. Without a doubt, President-elect Obama has his work cut out for him when he enters office in less than two weeks. Many experts agree that the year ahead will bring an increased jobless rate, a contraction in the economy, a dip in consumption and (in some areas of the country) a drop in sales prices.

The picture seems bleak, doesn’t it?

Well, without sounding too much like I’m wearing rose colored glasses, there are a lot of positive signs that our market is heading in the right direction.

For starters, our new administration is committed to fixing the economy. President-elect Obama and his economic team are in the process of developing an economic recovery plan designed to help Main Street and Wall Street with an ultimate goal of creating 2.5-3 million jobs while rebuilding our infrastructure, improving our schools, reducing our dependence on oil and saving billions of dollars. Speaking to a group to George Mason University in Fairfax, Va. Thursday, President-elect Obama said, “It’s a plan that recognizes both the paradox and the promise of this moment—the fact that there are millions of Americans trying to find work even as, all around the country, there so much work to be done,” he said.

Of course it won’t happen overnight and I think we all anticipate that much of 2009 will be focused on creating and implementing this recovery plan, but the positive news is that we are heading in the right direction for growth and prosperity with some experts predicting that by 2010 we could see as much as a 1.5% growth in our economy.

In terms of the immediate, one current positive aspect to our economy is that gas prices are relatively low right now which, according to National Public Radio, means that consumers who have seen their incomes go down over the past year due to layoffs, less hours worked or cuts in wages, are actually benefiting in a 4% boost in their income thanks to the recent drop in crude oil. This is positive news in the short term as it allows consumers to put that money directly back into the economy and while it won’t fix the recession, it certainly should help to moderate it.

Additionally, recently there has been much discussion that before long we will see mortgage rates at 4.5% which could spur a great deal of positive attention for our industry. If the Treasury does in fact lower the rate, present homeowners who want to refinance would be able to do so at a historically low rate. According to the Wall Street Journal, “up to 34 million households would be able to do so, at an average monthly savings of $428—or a total reduction in mortgage payments of $174 billion. This is a permanent reduction in payments and is thus likely to spur appreciable increases in consumption.”

In terms of the local real estate market, the timing of our price recovery may depend on how quickly the government takes steps to mitigate foreclosures, but looking forward to 2009, many experts agree that the financial system will begin to show signs of stabilization in early 2009 and we may begin to see a real estate turnaround by the summer. Our industry was one of the first to be hit by this recession and in all likelihood will be the first to overcome it.

And with that good news in tow, let’s take a look at this week in real estate:

• Boulder County—Our Boulder office reports that 2008 ended steady and early January is about the same. Agents seem to be busy and the office is predicting that new, lower rates should help the year start fair. The Longmont office concurs noting that buyers seem to be in the market and are much more active than they have been in the recent past. Open house activity is good and buyers seem to be much more serious than they have been over the past few months. We are still experiencing deals that are falling through due to last minute lender issues. The most successful sellers in today’s market? Those who price their homes extremely competitively from the beginning. Homes that are priced well and show well are moving. The buyers are out there but are looking for the best deals. It is important for sellers to consider this as they position their homes on the market.
• Clear Creek County—Our Evergreen office is seeing some positive news with listing inventory increasing, sales activity steady and showing activity increasing. Several of our Agents are reporting increased interest in their listings and floor activity, walk-ins and buyer prospects are all on the rise. This will be a market to watch as we continue on through the days and weeks ahead.
• Denver Central—We are seeing a lot of positive signs in the Denver market as we head into the new year. For starters, 10% of our deals are earning multiple offers—largely due to bank owned properties and short sales. The city of Denver is enjoying a relatively balanced market with about a 5-6 month supply. We’re also seeing an increasing in the amount of listing appointments—a good sign of things to come over the next several weeks. In a sign of the times, we are getting a lot of listing appointments due to sellers who must sell due to their financial situation. Currently, REOs and short sales are making up about 60% of the Denver Central office’s business.
• Devonshire—We’re seeing some positive news from our Devonshire office with a dramatic increase in showing activity. After coming out of dormancy over the holidays, buyers are writing offers to take advantage of the current interest rates and their increased purchasing power.
• El Paso County—Sales activity and showing activity are on the rise and our Colorado Springs office reported five multiple offers within the last week.
• Elbert County—Now that the holidays are over we’re seeing an increase across the board—in listing inventory, sales activity and showing activity. It’s nice to see activity picking up and buyer interest restored.
• Jefferson County—Another market to watch, our Conifer office is reporting an increase in showing activity with showings up to 23 from seven during the holidays. We had two multiple offers this week which is a positive sign that the buyers are out there. Our West Lakewood office concurs noting that sales activity and showing activity are both on the rise. We are seeing multiple offers though typically only on bank-owned properties.
• Larimer County—Our Fort Collins and Loveland offices are reporting that though there was a flurry of activity toward the end of December, the market has grown a bit sluggish as we enter the new year. We are seeing frequent multiple offers on REO properties and short sales and the entry level market—when properties are priced competitively and show well—are moving. Others tend to sit.
• North Metro—With listing inventory and sales activity decreasing, the North Metro area is seeing very limited activity in the marketplace.
• Southeast Metro—The office is a abuzz with activity. We had seven multiple offers over the last week and are seeing a dramatic increase in showing activity. Couple that with the news that we have taken 17 new listings, five new contracts and 57 closings currently scheduled for January—and its only the first week of the new year. Wow, let’s hang on for a wild ride.
• Southwest Metro—We’re seeing a definite increase in sales activity and showing activity. Though we aren’t seeing multiple offers, homes are holding their value and we are seeing a number of sellers listing now that we have entered the new year. Buyers seem interested now that the holidays are over.

As you can see, activity in nearly every market is picking up now that the holidays are over. Buyer—and seller activity for that matter—are restored and it seems many buyers are finding great comfort in the fact that interest rates are low, inventory is strong and many sellers are motivated.

President-elect Obama has a grand vision for the country once he takes over later this month and I think all of us are waiting to see if he is able to fill his promises.

It seems we are all excited about what 2009 has in store and are feeling pretty positive about the future of real estate in our market.

Until then, I’d like to leave you with this. Today’s market is not for the weary. Today’s market is for the serious buyer and seller. Buyers who are looking for a home right now—in today’s economic conditions—are serious and typically, are ready to make a move. Sellers who are selling right now—again, in this market—tend to be serious and motivated. The key is to bring the two together on level playing fields to gain a positive result.

Right now remains one of the greatest opportunities in decades to purchase a home so my best recommendation to buyers is to take advantage of this opportunity before the window of opportunity is gone.

Have a great week!

Chris Mygatt
President and Chief Operating Officer
Coldwell Banker Residential Brokerage Colorado