Coldwell Banker Market Watch

We've Moved!

2009-12-17T10:24:00.001-08:00

Check out our new blog located at http://cbdenvermarketwatch.wordpress.com/.

Housing Stats and a Little Turkey Talk…Happy Thanksgiving!

2009-11-19T16:15:00.000-08:00

Some good news was released this week from Fannie and Freddie: maximum loan limits will remain unchanged for 2010. The Federal Housing Finance Agency announced that the maximum conforming loan limits for mortgages originated in 2010 will remain unchanged from their 2009 numbers. The maximum loan limits for counties across the United States can be found here (116 pages).

The news in the media over the last two weeks has largely been about the potential benefits of the new expanded and extended home buyer tax credit which opens the doors for existing homeowners to take advantage of a $6,500 tax credit. There have certainly been quite a few articles regarding the tax credit over the last two weeks. I did come across an interesting article on Reuters.com which stated, “Up to 400,000 people bought a home for the first time due to the credit, boosting first-time buyers to a record 47 percent of sales over the past year, the National Association of Realtors has said. With the help of the credit, existing home sales will rise 2 percent this year and 13.6 in 2010, the group estimates.”

To say the least, 2009 was a very challenging year in real estate. The good news is that after a very rough 2008 and early 2009, we started to see a positive turn in the housing market as the year wore on, thanks in part to the first-time home buyer stimulus and indications that the economy was starting to improve. So now the big question of the day is, what will 2010 bring?

With the improvement we are seeing on Wall Street and the economic improvements we are seeing on a global scale, things seem to be moving in the right direction, which makes prospective home buyers feel more confident about their future and the home they may choose to buy. So much of our business is affected by consumer confidence.

Also on a positive note, the default notices are actually declining in Colorado.

But I would caution that we probably aren’t out of the woods as it relates to foreclosures. With unemployment figures still frighteningly high, there are still quite a few homeowners out there who are struggling with their payments. And now there is a great deal of evidence that it isn’t just in the entry level arena; it is also hitting the mid-level and luxury market, too.

The big question is when is the “shadow” inventory of already foreclosed homes going to be released, now that the government has lifted the moratoriums on foreclosures. Once we start to move through those properties, we should begin to see a better, more solid grounding for the real estate market.

For real estate, this feels like more of a long “L” shaped recovery than a “U” shape.

The fact is, we live in one of the most desirable regions in the world. Certainly we’ve taken our fair share of hits over the last three years, but our region’s desirability, economic vitality, culture, weather and overall market conditions make it a sought-after place to live. We generally have a much healthier economy. This, I believe will help drive our long, slow, modest recovery.

I am encouraged by the progress we are making in the real estate market. As we track sales activity, we are seeing more encouraging signs. Based on what we’re seeing, we’re estimating that we can expect sales to moderate to a more sustainable pace and we will probably see a modest rise in housing prices. Will it be the double digit appreciation we saw in the earlier part of the decade? Probably not. But this new normal is much more sustainable and a much healthier foundation to build upon. It makes me excited about the future and gives us all hope for a relatively modest and productive 2010.

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

Boulder/Longmont—Longmont reported this was the week of waiting for buyers and sellers. Everyone was standing still, waiting to see if the buyer’s credit was going to be extended, and it was! Yahoo! The housing industry can continue on with its help in assisting the turnaround of our sellers calling our Agents, ready to list even at this traditionally "slow" time of year.
Evergreen/Conifer—Evergreen reported there was a total of one new listing for the week. Two listings went under contract during the week one, a single family home in Aurora on the market for one day before receiving the offer. One buyer went under contract on a HUD property. We had a total of 53 showings during the week. For the month of October, a total of eleven new listings were taken and a total of 269 showings. Ten listings went under contract with a total of 107 days on market.
Denver Central – No information reported.
Devonshire—This week in the Devonshire office we've seen a definite slowdown in showing activity. There are still homes going under contract & closing but showings are down & open houses are showing the same decline in attendees. On a great note, the tax incentives have been extended & expanded which has created quite a buzz. Now that we know the perameters are for this incentive package, it will bode well for a surge of activity going forward in 2010. Sellers should do repairs/renovations/updating in anticipation of getting their homes on the market. We all know that the homes that show well & are priced competitively will sell in a timely manner. On behalf of all the members of the Devonshire office, we thank you for your business in the past & look forward to working with you in the future. Please join us for a complementary photo with Santa in the office December 5th from 10:00AM to 4:30PM.
Douglas County—No information reported.
El Paso County— Colorado Springs reports the diminishing urgency of 1st time buyers after the extension of the tax credit was felt on all levels. Showing activity as well as sales activity has dropped significantly. The fast approaching holiday season & the changing weather has also caused some of the sellers to hold off on listing their home. On a positive note, we expect activity to pick up strong after the 1st of the year. We also expect a great turn out for our annual office Holiday Photo Event.
Larimer County— Showings are down as well as inventory since last week & winter is slowly making its way towards us. But not all is lost! The new home buyer tax credit offers a wonderful opportunity for not only the 1st time home buyers but also for the move-up buyer that have lived in their home for five or the last eight years. Keep in mind that you now have until April 30th to put your new home under contract and you must close by June 30th to receive the credit. Be sure to ask your local Coldwell Banker agent how you can take advantage of this opportunity before it's gone!
North Metro— The North Metro office has listed 35 new homes this month. The average price of our listings this month is $274,000 which is an increase of 4% from the past month. Of the 48 homes that are under contract with us this month, we're seeing most of them under $225,000. Homes are difficult to find in this price range at this time & when available go under contract quickly. Much excitement surrounding the extended tax credit with agents reaching out to buyers that were uncertain about the outcome of this initiative but are now looking to buy.
Parker— After a last rush to get buyers under contract before the looming tax credit deadline the news about the extension & expansion calmed some of the buyers down & caused & also caused a number of sellers to hold off on listing their property. Agents are preparing for a strong first part of 2010 and are contacting their sphere with updates about the new limitations of the tax credit. The office preparations for the Holiday Photo Event are in full force & we expect a high number of clients to take advantage of this great opportunity.
Southeast Metro— The surge of first time homebuyers continues! We are experiencing multiple offer situations in several price points and specifically homes over $250,000. Some of the homes that have been in multiple offer situations have been on the market for awhile and are a direct result of the time crunch for the tax credit. We have placed 120 properties under contract this month and we will close over 150 units. November is looking great with 100 units already scheduled to close! Despite the unpredictable weather, open house traffic continues to be strong and serious buyers are out there!
West Lakewood— We are very pleased that the extension and expansion of the tax incentive program has passed. We haven't felt the increase in activity yet but are anticipating it in the next weeks and months. We may not feel the change until after the holidays when move up buyers start to move.

I’ll leave you with a few interesting articles of note from the week:

Cheaper Prices—More Than Tax Credit—Motivating Home Buyers; U.S. News and World Report
Tax Credit Expands Home Buyer, Economic Opportunities; On Pace To Help 70% Of Potential Home Buyers; RISMedia
Housing Cooled In October; Tax Credit Extension Expected To Drive Improvements; RISMedia
Real Estate Outlook: Moving Towards Recovery; Realty Times

Finally, I’d like to take this opportunity to wish you and your families a very warm and blessed Thanksgiving. Despite the challenges in the market and the bumpy road we have taken to get here, we all have a great deal to be thankful for. Family. Friends. Health. Food. A roof over our heads. These are all things to hold close and cherish this special time of year. I for one am thankful for you and appreciate what you do each and every day. I feel so fortunate to be President of Coldwell Banker Residential Brokerage and am proud to be leading our team into 2010.

Happy Thanksgiving! Please enjoy the time with your family and friends and we’ll return the week of the 30^th with another exciting edition of Weekly Market Watch.

Warm regards,

Chris Mygatt

Exciting New Opportunities for Move-Up Buyers and First Time Home Buyers!

2009-11-05T14:20:00.000-08:00

I have some good news to share with you. The U.S. House of Representatives voted by an overwhelming 403-12 margin to approve the Unemployment Compensation Extension Act (H.R. 3548) that included, as an amendment, the extension and expansion of the Homebuyer Tax Credit. The bill already passed in the U.S. Senate yesterday by a vote of 98-0, so now it will advance from Congress to the White House for President Obama’s signature. It is one step away from being signed into law, and the Administration already has signaled its support of the Homebuyer Tax Credit amendment as well as the President’s intention to sign the bill.

This is an historic moment for our industry as well as the culmination of more than a year’s worth of hard work and meetings with elected officials and policy makers on the part of Realogy management. I am both proud and appreciative of how so many of our employees, franchisees and sales associates participated in various grass roots outreach efforts with Congress. Our Company’s efforts on Capitol Hill truly helped make a difference on this issue.

Again, this bill is now one step away from becoming law. Our voices were heard in Washington, D.C., and we should be proud that our government is taking strong action to help our industry and the economy. Having an extended and expanded Homebuyer Tax Credit available to qualified homebuyers through the first half of 2010 undoubtedly will benefit our business and the U.S. economy.

The new bill calls for an incentive for buyers who have owned their current homes at least five years, making them eligible for tax credits of up to $6,500. First time homebuyers – or anyone who hasn’t owned a home in the last three years – would still get up to $8,000. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010 and close by June 30.

The credit is available for the purchase of principal homes costing $800,000 or less, meaning vacation homes are ineligible. The credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000.

The credit would be extended an additional year, until June 30, 2011, for members of the military serving outside the United States for at least 90 days.

As an industry, we are certainly pleased that the tax credit may be extended and expanded. The key to returning stability to the economy lies within the housing market, and we have crafted a meaningful credit that will create a strong foundation for future growth and make a measurable difference over the next seven months in our economy.

Furthermore, tax credits like this only work by creating the sense of urgency to take advantage of them. This is said to be the last extension of the home buyer tax credit and I urge people – whether they’re first time home buyers who’ve always dreamed of having a home of their own or someone who has been gridlocked in the challenges of our move-up market to take advantage of this opportunity.

In other real estate news, NAR released its pending home sales report this week which showed that pending home sales rose again, making eight consecutive monthly gains—the longest streak since measurement began in 2001.

The report showed pending home sales rose 6.1 percent to 110.1 from a reading of 103.8 in August and is 21.2 percent higher than September 2008 when it stood at 90.9. The gain from a year ago is the largest annual increase on record, and the index is at the highest level since December 2006 when it was 112.8.

I agree with NAR’s assessment that the momentum is based on a rush of first-time home buyers trying to beat the expiration of the tax credit at the end of November. We’re feeling that rush in many of our offices.

As to keep things in perspective I would like to point out NAR’s Chief Economist Lawrence Yun’s comments that “We’re clearly not out of the woods because an excess of homes remain on the market despite recent improvements,” he said. “Although current inventory is getting closer to price equilibrium, foreclosures will continue to enter the pipeline. An extended and expanded tax credit would help absorb this income inventory.” That truly is why we are so pleased with the potential of the bill’s passing.

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

Boulder/Longmont—The 3 day snowstorm caused a real blip in the numbers last week, with sales, listings, and showings all down. The good news to be gleaned is that even though sales and listings were both down about 20%, showings were only down a little over 10%, so there is still real buyer activity out there.
Evergreen/Conifer— All activity negatively affected by two snowstorms during the reporting period. Our office closed for 2 days. Snow totals ranging from 2 to almost 4 feet in market area. Activity gradually returning to more normalized levels. Total of 108 showings during the prior month- 35% of activity in price range under $200M & 25% from $200M- $300M. Noticeable increase in activity in $400M-$500m range as well as $500M-$750M ranges
Denver Central – No information reported.
Devonshire—No information reported.
Douglas County—Our Southwest Metro office reports showings were down but this had a lot to do with our weather this past week. Agents are very busy showing buyers homes as the deadline is very near for the 8000 tax credit. We are seeing sellers gearing up to list their homes by the beginning of next year. We did have success in our open houses this past weekend and floor calls have been great. Our agents are very busy trying to find homes for first time buyers and are very excited about the news of the extension of the program as well as the new credit available for current owners.
El Paso County— Colorado Springs reports we have experienced a drastic slowdown in showing and sales activity. The listing inventory is steady and a high number of closings is scheduled for the end of the month. The expected extension/expansion of the home buyer tax credit is taking some urgency off the buyers as well of some sellers that have planned to put their homes on the market before the holidays.
Larimer County—No information reported.
North Metro—No information reported.
Parker— Although showing activity has slowed down again, the sales activity is was steady even with the approaching deadline of the tax credit. It seems that buyers are confident that the extension/expansion will be passed in the House as well. Power priced listings still sell very fast. If the tax credit extension is going to be passed, we expect some sellers to hold off putting their home on the market until after the holidays. We have 154 properties scheduled to close and sellers are enjoying an increase in buyer activity. Even with the colder weather, we're averaging over 500 showings a week so far for the month. The luxury home market is also seeing an uptick in traffic as 20% of our luxury home listings are currently under contract.
Southeast Metro— The surge of first time homebuyers continues! We are experiencing multiple offer situations in several price points and specifically homes over $250,000. Some of the homes that have been in multiple offer situations have been on the market for awhile and are a direct result of the time crunch for the tax credit. We have placed 120 properties under contract this month and we will close over 150 units. November is looking great with 100 units already scheduled to close! Despite the unpredictable weather, open house traffic continues to be strong and serious buyers are out there!
West Lakewood— No information reported.

I wanted to let you know that we are officially making Weekly Market Watch a once every other week publication. With the market changing very little from week to week we just felt it was an obvious choice. If news or the market warrants, we will return to once per week or we will simply provide you with special editions.

We will return with our next edition of Weekly Market Watch on November 19.

Until then,
Make it a great November,

Chris Mygatt
Coldwell Banker Residential Brokerage Colorado

It’s On The Table!

2009-10-30T09:15:00.000-07:00

There’s no question. The government’s first-time homebuyer tax credit has spurred a significant amount of sales this year and its positive impact on the hard-hit housing market warrants an extension. Latest estimates show that some 400,000 additional sales occurred this year due to the first time home buyer tax credit, which is about 8% of all sales this year.

The latest news in the saga, The Senate has reached a compromise on extending and expanding the $8,000 tax credit for first-time home buyers. While its passage remains uncertain, the agreement would extend the existing credit for first-time homebuyers, worth up to $8,000, while offering a new credit of up to $6,500 for some existing homeowners. The reduced credit would be available to all homeowners who have been in their current residence for a consecutive five-year period in the past eight years. Lawmakers in Washington also raised the qualifying income limits to $125,000 for single taxpayers and $250,000 for joint taxpayers, from the current $75,000 and $150,000. Under the Senate compromise, buyers must have sales agreements in hand by April 30, but they will have until June 30 to go to settlement, said the sources. The measure still faces votes in the full Senate and the House.

The U.S. Senate won’t vote until next week at the earliest. As soon as they do we intend to create a piece that will allow you to communicate the news to your clients.
Reports show that Senate action has been delayed by a Republican demand that a vote be allowed on an amendment to end the Treasury Department’s Troubled Asset Relief Program at the end of this year. But lawmakers say they want to prevent home sales from slipping as the economy struggles to recover. And as I mentioned in a previous edition of Weekly Market Watch, that is just what may happen if lawmakers choose to let the tax credit expire.

On the flip side, the Democrats, along with the Obama administration are backing it. “The success of the American economy is closely tied to the success of the housing market; by helping to stabilize the housing market, the homebuyer tax credit has helped to shore up the economy as it begins to recover,” said Baucus, a Montana Democrat. “This would enable an even greater number of potential homebuyers to take the credit.”

Thus far it seems to be doing its job. This week, Business Week reported “The broad improvement in the housing indicators in recent months leaves no doubt that the long-awaited housing recovery is finally under way.” The article went on to report: “Policy alone cannot explain the 24% gain in existing home sales since January, nor the 22% increase in new-home purchases, the 40% rise in single-family housing starts, and the recent upturn in home prices.
The primary driver is historically high affordability. Fixed 30-year mortgage rates are at 5%, a multi-decade low, and prices have plunged a total of 30% since May 2006, based on the Standard & Poor's Case-Shiller Home Price Index. By that price gauge, homes are well undervalued relative to both rents and aftertax income.”

Next week I hope to report some positive news on the home buyer tax credit front. Until then, let’s take a look at this week in real estate:

Boulder/Longmont—The Boulder office reported new listings in Boulder county remained steady this week, but sales fell 17% from last week. This caused available inventory to climb. Showings on our listings fell about 4% but our top ten listings averaged one showing per day over the past week. The sales to list ratio in the Boulder/Louisville market remains steady at 98% (not including the over $1,000,000 market). The Longmont office reported the push is on for the "$8000 tax credit buyer" to be under contract. Lenders are pushing to get buyers qualified. Entry level homes are being shown almost exclusively. Our listing inventory for move-up homes is stagnant. The Colorado weather is adding to the uncertainty. Snow and cold early this Fall season makes the buyers less likely to venture out. Colorado is still looking good for employment possibilities. Our rate of unemployment is not reaching the levels seen on both coasts. This is a great time to start a real estate portfolio.
Evergreen/Conifer—No information reported.
Denver Central – Our under contracts for October continue to remain high. There has been an increase in first time home buyers looking for property and wanting to take advantage of the $8,000 tax credit. With the deadline fast approaching and the possibility of an extension not occurring buyers have to act quickly. Congress did extend the deadline for military service individuals. We continue to see inventory shortages in the Denver market which has created offer situations in the lower end market. The inventory is substantially lower than its highpoint in 2007. Over 50% of the home sales in the Denver metro area are under $250,000. If you're looking to sell a home priced under $300,000 this is a great time & take advantage of one of the better markets to move up into a higher priced home. We've seen many move-up buyers entering the market recently. Overall, we are very encouraged and excited about the future of real estate in Denver.
Devonshire— No information reported.
Douglas County—No information reported.
El Paso County—No information reported.
Larimer County— Showings are steady and primarily at the first time buyer price point, $250,000 or less. We've seen a slight upswing in new inventory coming on the market since last week. Unfortunately the cold weather has kept some buyers at home, but this only allows inventory to build. A word to the wise, if you are still looking to take advantage of the 1st time home buyer tax credit you may want to stay away from short sale transactions. We've had several agents report that short sales are still taking longer to complete. With any luck, the tax credit will be extended & those who are under contract but in danger of not closing prior to the Nov 30th deadline will still have a chance to get in on this great opportunity.
North Metro— No information reported.
Parker –No information reported.
Southeast Metro— The surge of first time homebuyers continues! We're experiencing multiple offer situations in several price points and specifically homes over $250,000. Some of the homes that have been in multiple offer situations have been on the market for awhile & are a direct result of the time crunch for the tax credit. We've placed 120 properties under contract this month & we'll close over 150 units. November is looking great with 100 units already schedules to close! Despite the unpredictable weather, open house traffic continues to be strong & serious buyers are out there!
West Lakewood— Activity is starting to taper off. Listings are dropping off. Under contracts are still steady and showings are dropping off perhaps because of Halloween weekend coming up

Next week I will release the November edition of Reality Check. In it, we focus on the state of the market and include an interview with me. I think you’ll find it helpful and informative in educating your clients and prospects on the current state of the housing market.

Until then,
Make it a great week,
Chris Mygatt
Coldwell Banker Residential Brokerage Colorado

“U.S. Economic Recovery on Track”

2009-10-22T12:02:00.000-07:00

While we await the results of the possible expiration, extension or expansion of the $8,000 first time home buyer tax credit, one thing is for sure, the economy is moving forward in full force—which is driving consumer confidence. Earlier this week, Reuters.com ran a very interesting story on the U.S. economic recovery and the result was very encouraging. Among the story’s highlights:

“The U.S. economy is firmly poised for a recovery from its deep recession but growth may be moderate and the job market will not revive immediately, senior White House aide Lawrence Summers predicted on Wednesday.”
“On the economy, Summers said the $787 billion stimulus package and inventory rebuilding by businesses were among the “dominant drivers” lifting the economy.”
“It will be some time before unemployment starts to decline. Once it declines it will take a long time to return to normal levels, given how elevated it is…The jobless rate is now at a 26-year high of 9.8 percent.”
“Most private economists think the recession, which began in December 2007, ended in the third quarter. But there is much disagreement about the path to recovery.”
“Some see above-average growth continuing through next year, arguing that deep recessions are typically followed by powerful recoveries, helped along by pent-up demand as consumers and companies resume spending.”

Obviously this is welcome news for the economy which ultimately benefits the local housing market. What I can tell you is that I am encouraged by the progress we are making in the real estate market. We’re beginning to see more days of progress than days of back stepping. We’re watching sales activity and consumer sentiment and we are expecting over the coming months a moderate to a more sustainable pace and we will probably see a modest rise in housing prices in the coming year. Will it be the double digit appreciation we saw in the earlier part of the decade? Probably not. But this new normal (as we’re calling it) is much more sustainable and a much healthier path to build upon. It makes me excited about the future and gives us all hope for a relatively modest and productive 2010.

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

Boulder/Longmont—The Boulder office reported Boulder county showed a small shift in the right direction over the past week. New listings were down by about 7% with sales up 9%, so we have inventory headed down again. Although most of this was in the lower price ranges, there was a small flurry of sales over $800,000 including one at $2,750,000! Our Agents report multiple offers on bank owned properties. Showings on our listings remain steady with a 1% increase over the past week.
Evergreen/Conifer—Evergreen reported we had a total of four new listings for the week. Three listings went under contract during the past week, two of these were out of state buyers. Two buyers went under contract, both on short sale properties. There were a total of 64 showings during the week. Conifer reported we had only one new listing during the week. Four of our current listings were put under contract, two were REO properties and one was a short sale. None of our buyers were put under contract. The number of showings decreased to 22 for the week.
Denver Central – No information reported.
Devonshire— No information reported.
Douglas County—Our Southwest Metro office reports showings increased a little this past week. We did have several successful open houses and three great floor calls. Our Agents are very busy working with buyers and the market continues to be picking up for sellers and buyers both. Inventory continues to be low especially in the $150,000 range. Most are first time buyers trying to take advantage of the tax credit and sellers are starting to realize that this is a good time to list their home. We're working hard to get our sellers to list their homes now and not wait until the beginning of the year.
El Paso County—Colorado Springs reports although the showing activity has decreased by 15% over the last week, the number of properties under contract has tripled mainly because of the looming deadline for the first time buyer tax credit program. Therefore our listing inventory has decreased slightly as well. With the changing weather we expect the sales activity to slow down drastically, especially if the tax credit program is not going to be extended. The number of multiple offers on Power Priced listings has gone down drastically, which is an indication that most of the "great deals" are off the market.
Larimer County— Showings are down significantly last week as well as under contract homes in Fort Collins/Loveland. This is most likely a seasonal decline and is to be expected. On the plus side, we had an increase of new inventory coming on to the market and several homes were subject to multiple offers. Multiple offer situations are a great sign for sellers, as this situation typically gets an above listing price contract. To create a multiple offer situation you need to have three primary things going for your listed property - price, condition and location. These three items make for a perfect storm that will entice buyers to compete for your home. Finally, don't forget, only 40 days until the 1st time home buyer tax credit runs out!
North Metro— Even though it is October and the weather has been quite cold, we've not seen a slow down in activity. The Agents continue to list properties with an increase in average sales price of $267,000. The buyers wanting to take advantage of the tax credit are out looking, but properties under $250,000 are going quickly with multiple offers. It is a great time for seller's to get their homes on the market. With inventory low, their will be less competition for buyers.
Parker –The seasonal changes are showing their signs in number of showings and transactions. The activity has slowed down some more over the last week however. Web traffic is very steady and the number of leads on our listings from the internet is increasing. Our affiliates (Title & Mortgage) are preparing for a peak of business during November because of the tax credit deadline on the 30th. Agents are preparing for our next Client Appreciation Event coming up on December 6th. Free Holiday Photo.
Southeast Metro— The heat is on! First time home buyers who are looking to take advantage of the $8000 tax credit are storming the market! We're seeing an increase in the already fierce competition for all properties priced below $225,000. Last week we had one listing that had 105 showings in six days! That has to be some kind of record! And by the way, that same property received 45 offers! It's still a great time to buy, whether or not a buyer qualifies for the tax credit. Open houses are still enjoying lots of traffic in several price ranges.
West Lakewood— No comments provided.

This week I’ll conclude with a few articles of interest:

What Housing Bust?; CNN Money
Housing Tax Credit Working, So Keep Momentum Going, NAR Urges Congress; Realtor.org
Shape Of The Housing Recovery; CNBC
Real Estate Outlook: Mixed Signals; Realty Times

Until next week,
Make it a great one,

Chris Mygatt
Coldwell Banker Residential Brokerage Colorado

Recent Housing Upturn Sparked By Buyer Leverage

2009-10-15T13:42:00.000-07:00

The latest S&P/Case-Shiller home price index reveals home price for 10 major cities rose 3.6 percent between April and July. So does this recent uptick in the housing market mean we are on the cusp of a housing boom?

I hate to burst your bubble but probably not. In all likelihood, the recent upturn in the housing market has been sparked by several competing factors:

· The impending expiration of the $8,000 first-time home buyer tax credit
· The recent uptick in the stock market
· Increased consumer confidence
· Continued low interest rates

Essentially, buyers are playing a leverage game. They’re watching the economic indicators and trying to determine the best time (for them) to buy. It seems many are now pulling the trigger which is causing sales figures and prices to go up.

Will it last? It’s tough to say. Right now we’re in a slightly unique position because some of the stimulus packages that the government instituted are working which may be causing a false front for the overall economy. The stock market is up. Consumer confidence is on the rise. The housing market is up. All of those are pointing to some current benefits in the market.
But, the fundamentals themselves haven’t changed. Foreclosures remain a major issue for our economy. And unemployment remains a major challenge. Until those two areas of the economy fully recovery, we may see continued economic volatility.

What I can say is I think the worst of the housing market’s problems are probably behind us. But the road ahead isn’t completely clear. One major factor that stands in our way is the impending expiration of the first time home buyer tax credit. This credit has helped to drive much of our recovery. But right now the debate on Capitol Hill continues and everyone is waiting to learn whether the credit will be extended, expanded or will it simply expire. Many on the opposing side believe it is too costly to finance. But NAR had this to say: “Each home sale pumps an additional $63,000 into the economy through related goods and services, so the benefits of extending and expanding the tax credit far outweigh the costs.”

If the opposing side gets their way and the credit simply expires, NAR had this to say: “All we can say for certain is sales will decline when the tax credit expires because we are not yet on a self-sustaining recovery path. It also raises a risk of a double-dip recession. Extending and expanding the tax credit is the best tool in our arsenal to encourage financially qualified buyers to stimulate the economy and help reduce the budget deficit.”

So there you have it. We’re in a state of flux as we await the results of the credit. As that debate continues, buyers seem to be leveraging today’s market advantages which is creating a welcome relief for our local market. Let’s just hope the leveraging opportunities continue.

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

Boulder/Longmont—The Boulder office reported sales and listing activity were up very slightly in Boulder County last week both about 3%. Showings were down slightly, about 5%. A check of inventory in Boulder County over the past three months shows a disturbing trend. 297 new listings in July, 362 new listings in August and 395 in September. We'll see if the upward trend continues in October.
Evergreen/Conifer—Evergreen reported we had two new listings for the week. Two of our listings went under contract. We had 61 showings during the week. Conifer reported there were no new listings during the week. No listings or buyers were put under contract. Showings decreased to 29 for the week.
Denver Central – There has been an increase in 1st time home buyers looking for property and wanting to take advantage of the tax credit. The deadline has been extended for military service individuals. Since there has been an increase in buyers taking advantage of this credit we've seen an inventory shortage for homes under $200,000. We have also seen an uptick in the average sales price and we attribute that to more move-up buyers entering the marketplace. We continue to have low inventory levels in the Denver Metro market. The inventory is substantially lower than its highpoint in 2007. We're very excited about the future of real estate in Denver. Showings are continuing to increase year over year.
Devonshire— We seem to be on the upward swing this week with showing activity picking up and buyers more active in the market. The cold weather seemed to motivate sellers to adjust their prices and for buyers to get down to business and put offers on the table. Perhaps that with the holidays fast approaching some momentum has been created. Sellers need to remember to keep their yards manicured so that buyers can see the landscaping under the leaves. Keeping gutters empty and leaves raked up makes the buyer feel that the home is well cared for & in good condition. Interest rates are still very appealing and there is still time to take advantage of the tax credit incentive. We're feeling optimistic about the rest of October and November.
Douglas County—Our Southwest Metro office reports showings were down this past week, though we did see an increase in listings and many of our Agents reported that they had listing appointments as well. We're seeing 1st time buyers ready to take advantage of the low interest rates and the $8000 credit before it expires. Several Agents have reported that buyers are not finding the inventory as high as it was a couple of months ago and the quality of the selection is not as good. We're working hard to have our potential sellers list now rather than wait until next year especially with inventory low.
El Paso County—Colorado Springs reports last week was the 1st sign of a slow market facing the upcoming Fall and Winter season. The last few buyers got under contract to close before the tax credit deadline of November 30th. A Coldwell Banker call for action was answered by countless real estate professionals from various companies in order to encourage our representatives to extend and expand the tax credit program. We hope that the call will be answered and atleast the deadline will be extended.
Larimer County—The Fort Collins/Loveland offices reported new listings are up in Northern Colorado and showings are also up nearly 10% from the previous week. We're seeing an increase of bank owned homes in the last month and there are certainly some good deals. These homes are priced as high as $1,500,000 all the way down to $65,000. The boost in home showings seem to be coming from 1st time buyers looking to take advantage of the tax credit. Many of these new lower priced bank owned properties are already under contract. The move up buyer that has been sitting on the sideline is also getting involved somewhat as undervalued homes are being purchased. For example the bank owned home referenced above for $1,500,000 was previously listed for $3,200,000!! There are good deals to be had, so get out and find a new home today!
North Metro—The overall activity for the North area has picked up again, which is important as we move into the fourth quarter. Our listings have continued to pick up as well. This last week we are averaging 6 to 7 listings per day. At the same time, the sales have increased from 3 to 4 per day to between 5 and 6.
Parker— The showing activity continues to be steady and the sales activity is stable as well. The listing inventory is also constant as supply and demand seem to be more balanced in most neighborhoods and price ranges. The high end market is still very slow and on some listings about $1,000,000 we see no traffic at all. We are very excited about a big food drive our Agents are organizing and we are overwhelmed by the participation of the entire community.
Southeast Metro— October is shaping up to be a great real estate month at our DTC office! We have 154 properties scheduled to close and sellers are enjoying an increase in buyer activity. Even with the colder weather, we're averaging over 500 showings a week so far for the month. The luxury home market is also seeing an uptick in traffic as 20% of our luxury home listings are currently under contract.
West Lakewood— As you can imagine, with the 1st time homebuyer tax credit deadline nearing, agents are extremely busy showing properties to these excited buyers. We see multiple offers on many homes. There were numerous under contracts in the past week on homes that have been on the market less than thirty days. We see that investors are still very active in the market as well.

This week I’ll conclude with a few story highlights:

USAA Praises Biggert Bill To Extend First-Time Homebuyers Tax Credit; Reuters
Hopes Run High For Tax-Credit Expansion; MarketWatch
Washington Report: $8,000 Home Buyer Tax Credit; Realty Times

Until next week,
Make it a great one,

Chris Mygatt
Coldwell Banker Residential Brokerage Colorado

The latest S&P/Case-Shiller home price index reveals home price for 10 major cities rose 3.6 percent between April and July. So does this recent uptick in the housing market mean we are on the cusp of a housing boom?
I hate to burst your bubble but probably not. In all likelihood, the recent upturn in the housing market has been sparked by several competing factors:
· The impending expiration of the $8,000 first-time home buyer tax credit
· The recent uptick in the stock market
· Increased consumer confidence
· Continued low interest rates
Essentially, buyers are playing a leverage game. They’re watching the economic indicators and trying to determine the best time (for them) to buy. It seems many are now pulling the trigger which is causing sales figures and prices to go up.
Will it last? It’s tough to say. Right now we’re in a slightly unique position because some of the stimulus packages that the government instituted are working which may be causing a false front for the overall economy. The stock market is up. Consumer confidence is on the rise. The housing market is up. All of those are pointing to some current benefits in the market.
But, the fundamentals themselves haven’t changed. Foreclosures remain a major issue for our economy. And unemployment remains a major challenge. Until those two areas of the economy fully recovery, we may see continued economic volatility.
What I can say is I think the worst of the housing market’s problems are probably behind us. But the road ahead isn’t completely clear. One major factor that stands in our way is the impending expiration of the first time home buyer tax credit. This credit has helped to drive much of our recovery. But right now the debate on Capitol Hill continues and everyone is waiting to learn whether the credit will be extended, expanded or will it simply expire. Many on the opposing side believe it is too costly to finance. But NAR had this to say: “Each home sale pumps an additional $63,000 into the economy through related goods and services, so the benefits of extending and expanding the tax credit far outweigh the costs.”
If the opposing side gets their way and the credit simply expires, NAR had this to say: “All we can say for certain is sales will decline when the tax credit expires because we are not yet on a self-sustaining recovery path. It also raises a risk of a double-dip recession. Extending and expanding the tax credit is the best tool in our arsenal to encourage financially qualified buyers to stimulate the economy and help reduce the budget deficit.”
So there you have it. We’re in a state of flux as we await the results of the credit. As that debate continues, buyers seem to be leveraging today’s market advantages which is creating a welcome relief for our local market. Let’s just hope the leveraging opportunities continue.
Now, let’s take a look at this week in real estate:
Boulder/Longmont—The Boulder office reported sales and listing activity were up very slightly in Boulder County last week both about 3%. Showings were down slightly, about 5%. A check of inventory in Boulder County over the past three months shows a disturbing trend. 297 new listings in July, 362 new listings in August and 395 in September. We'll see if the upward trend continues in October.
Evergreen/Conifer—Evergreen reported we had two new listings for the week. Two of our listings went under contract. We had 61 showings during the week. Conifer reported there were no new listings during the week. No listings or buyers were put under contract. Showings decreased to 29 for the week.
Denver Central – There has been an increase in 1st time home buyers looking for property and wanting to take advantage of the tax credit. The deadline has been extended for military service individuals. Since there has been an increase in buyers taking advantage of this credit we've seen an inventory shortage for homes under $200,000. We have also seen an uptick in the average sales price and we attribute that to more move-up buyers entering the marketplace. We continue to have low inventory levels in the Denver Metro market. The inventory is substantially lower than its highpoint in 2007. We're very excited about the future of real estate in Denver. Showings are continuing to increase year over year.
Devonshire— We seem to be on the upward swing this week with showing activity picking up and buyers more active in the market. The cold weather seemed to motivate sellers to adjust their prices and for buyers to get down to business and put offers on the table. Perhaps that with the holidays fast approaching some momentum has been created. Sellers need to remember to keep their yards manicured so that buyers can see the landscaping under the leaves. Keeping gutters empty and leaves raked up makes the buyer feel that the home is well cared for & in good condition. Interest rates are still very appealing and there is still time to take advantage of the tax credit incentive. We're feeling optimistic about the rest of October and November.
Douglas County—Our Southwest Metro office reports showings were down this past week, though we did see an increase in listings and many of our Agents reported that they had listing appointments as well. We're seeing 1st time buyers ready to take advantage of the low interest rates and the $8000 credit before it expires. Several Agents have reported that buyers are not finding the inventory as high as it was a couple of months ago and the quality of the selection is not as good. We're working hard to have our potential sellers list now rather than wait until next year especially with inventory low.
El Paso County—Colorado Springs reports last week was the 1st sign of a slow market facing the upcoming Fall and Winter season. The last few buyers got under contract to close before the tax credit deadline of November 30th. A Coldwell Banker call for action was answered by countless real estate professionals from various companies in order to encourage our representatives to extend and expand the tax credit program. We hope that the call will be answered and atleast the deadline will be extended.
Larimer County—The Fort Collins/Loveland offices reported new listings are up in Northern Colorado and showings are also up nearly 10% from the previous week. We're seeing an increase of bank owned homes in the last month and there are certainly some good deals. These homes are priced as high as $1,500,000 all the way down to $65,000. The boost in home showings seem to be coming from 1st time buyers looking to take advantage of the tax credit. Many of these new lower priced bank owned properties are already under contract. The move up buyer that has been sitting on the sideline is also getting involved somewhat as undervalued homes are being purchased. For example the bank owned home referenced above for $1,500,000 was previously listed for $3,200,000!! There are good deals to be had, so get out and find a new home today!
North Metro—The overall activity for the North area has picked up again, which is important as we move into the fourth quarter. Our listings have continued to pick up as well. This last week we are averaging 6 to 7 listings per day. At the same time, the sales have increased from 3 to 4 per day to between 5 and 6.
Parker— The showing activity continues to be steady and the sales activity is stable as well. The listing inventory is also constant as supply and demand seem to be more balanced in most neighborhoods and price ranges. The high end market is still very slow and on some listings about $1,000,000 we see no traffic at all. We are very excited about a big food drive our Agents are organizing and we are overwhelmed by the participation of the entire community.
Southeast Metro— October is shaping up to be a great real estate month at our DTC office! We have 154 properties scheduled to close and sellers are enjoying an increase in buyer activity. Even with the colder weather, we're averaging over 500 showings a week so far for the month. The luxury home market is also seeing an uptick in traffic as 20% of our luxury home listings are currently under contract.
West Lakewood— As you can imagine, with the 1st time homebuyer tax credit deadline nearing, agents are extremely busy showing properties to these excited buyers. We see multiple offers on many homes. There were numerous under contracts in the past week on homes that have been on the market less than thirty days. We see that investors are still very active in the market as well.

This week I’ll conclude with a few story highlights:

USAA Praises Biggert Bill To Extend First-Time Homebuyers Tax Credit; Reuters
Hopes Run High For Tax-Credit Expansion; MarketWatch
Washington Report: $8,000 Home Buyer Tax Credit; Realty Times
Until next week,Make it a great one,Chris MygattColdwell Banker Residential Brokerage Colorado

Tax Credit: Expand? Extend? Expire?

2009-10-08T16:08:00.000-07:00

The question everyone is asking is, will the government expand, extend or simply let the $8,000 first time home buyer tax credit expire. With just over 50 days left until it is expires, the debate is on and everyone is waiting on pins and needles to hear the result.

Whichever side you take on the debate, what you can’t deny is the fact that nothing has done more in the past year to jumpstart our housing market more than the $8,000 first time home buyer credit. Will all of that come tumbling down if it isn’t extended or expanded on? It’s hard to say but I believe that if it isn’t expanded we will see a definite drop in first time home buyers in 2010 and probably a much larger emergence of investors in the entry level arena. While on the surface that may not seem troubling, it actually is. The fact is that investors purchase homes solely for net profit while first time home buyers purchase homes for lifestyle. When we have a balance between the two it keeps home prices relatively stable. If one of the two disappears, we’ll likely start to see drops in home prices which isn’t good for a market that has already taken its fair share of hits.

While Congress continues to debate the issue what we as Realtors are calling for is support of an expansion of the tax credit from first-time buyers to all homebuyers, increasing the maximum amount of the tax credit from $8,000 to $15,000, eliminating the existing income caps for eligibility purposes and extending this homebuyer tax credit for one year from the date of enactment.

We believe that stimulating demand for housing—particularly in the repeat buyer market—is the most effective way for Congress to help lead the U.S. economy into a recovery and back on the path to growth. Timing is critical and we hope that Congress will hear our voices.
While the clock ticks and we await the results of the debate on Capitol Hill, let’s take a look at this week in real estate:

Boulder/Longmont—The Boulder office reported the market stayed very steady last week with listing inventory moving by less than 1% and the amount of sales exactly even week to week. Our office showed a 10% increase in showings over the week before as agents report 1st time buyers scurrying to take advantage of the tax credit and lower interest rates. Multiple offers on lower priced short sales continues to be normal. The Longmont office reported showings have increased 10% week over week! Who knows what this fall will bring! Friday the 2nd was a recent record for showings here. I'm assuming that is the final push for the $8000 credit. This is the time to list your home especially if it's in the Longmont entry level, under $200,000. Buyers are scrambling to meet the deadline of November 30th. Lenders and title companies should be gearing up for mass closings that last week of November. Remember, that is also a "short work week.”
Evergreen/Conifer—Evergreen reported we had a total of nine new listings for the week. Five listings went under contract during the past two weeks. There were four local buyers plus one cash buyer from Texas. Four buyers went under contract. All were local. There were a total of 77 showings during the week. Conifer reported we had only one new listing during the week. Two listings went under contract, one bank REO and one private seller. No buyers were put under contract. Showing activity decreased to 27 during the week possibly due to the holiday weekend. The Conifer office reported there was one new listing during the week. Five listings went under contract including land in Evergreen (cash buyer), one private seller (1st time home buyer) and three bank owned homes. Two buyers were put under contract including one single family home in Lakewood, a multiple offer situation. Showing activity increased to thirty eight during the week.
Denver Central – There has been an increase in first time home buyers looking for property & wanting to take advantage of the tax credit. With the deadline (Nov 30) fast approaching and the possibility of an extension not occurring, buyers are going to have to select a property within the next 30 days to be able to close in time. Since there has been an increase in buyers taking advantage of this credit we've seen an inventory shortage for homes under $200,000. We've also seen an uptick in the average sales price which we attribute to more, move up buyers entering the marketplace. We continue to have low inventory levels in the Denver Metro market. Inventory is substantially lower than its highpoint in 2007. We continue to be excited and very encouraged about the future of the Denver real estate market.
Devonshire— Well, here we are looking at fall in full swing. The market for first time buyers is very active with a definite lack of inventory. Sellers in price ranges that would benefit from the first time buyer program should get their homes on the market immediately. November 30 is quickly approaching. Looking at our Previews division, our homes over $600,000 show a different story although we are seeing definite signs of movement in this area. Showing activity is increasing and we're now finally seeing contracts coming in on these houses. We're still optimistic for a good 2010 in the upper end market.
Douglas County—Our Southwest Metro office reports showings increased this past week over the previous three! Open houses were good and our Agents did acquire good leads. Our Agents do have sellers gearing up to list their homes and do have buyers starting to become worried about the deadline for the $8000 tax credit. We're seeing an increased number of buyers ready to move towards the purchase of a new home before the deadline. Our Agents feel that buyers do not want to miss this opportunity especially with low interest rates as well. Our mortgage rep is busy approving buyers and investors are wanting to take advantage of the low rates also.
El Paso County—Colorado Springs reports the listing inventory stays steady at the moment but both showings and sales activity have slowed down during the last week. The current sellers hope for an extension/expansion of the 1st Time Buyer Tax Credit which is scheduled to end Nov. 30. Our REO Agents see a slight increase of bank owned properties hit the market. We expect that trend to increase over the next few weeks.
Larimer County—The Fort Collins/Loveland offices reported steady as she goes - that should be the real estate motto for the Northern Colorado fall selling season. We're seeing a consistent number of homes sold at or above 98% of asking, a consistent number of homes coming onto the market and finally, a consistent number of showings. An agent with two listings put them both under contract in less than two weeks with competing offers. Both properties were priced below $250,000. There is still a significant amount of well priced inventory available so get online at www.coloradohomes.com or contact your local CB real estate professional and take a look at some great homes.
North Metro— The North office is buzzing with positive feedback from the CBC this week. Agents are very excited about the prospects for a good 4th quarter and beyond. The current activity level is steady. Inventories are being depleted in the "1st timer's" price range and the upper end of the market remains soft. Concern on the economy continues to affect the listing activity but as the economy improves in the 4th quarter we expect market activity to do the same. Bottom line, everyone is up to the challenge of the changing market and will do what it takes to continue to be successful.
Parker— After a drastic slowdown of showing and sales activity during August and September, the traffic is now steady again and the sales activity is stable as well. Our listing inventory has gone down slightly over the last two weeks. The traffic through open houses has increased as home buyers not only want to take advantage of the last few nice weekends, but are also in a time crunch with the ending of the Home Buyer Tax Credit.
Southeast Metro—No information reported.
West Lakewood—No information reported.

Here are a few informative links regarding the $8,000 tax credit that you may find helpful:

Update: Industry Makes Case For Home Buyer Tax-Credit Extension; Wall Street Journal
Builders Urge Congress To Act On Home Buyer Tax Credit, Appraisal And Lending Issues; National Association of Home Builders
Homebuyer Tax Credit Best Tool For Sustaining Housing Recovery, Says NAR; NAR
Make The Home Buyer Tax Credit More Easily Available At Closing; RISMedia
1.4 Million Families Have Taken Advantage Of First-Time Home Buyer Tax Credit, More Claims Expected; RISMedia

Until next week,
Make it a great one,

Chris Mygatt
Coldwell Banker Residential Brokerage Colorado

S&P Reports On The State of the Housing Market

2009-10-01T12:45:00.000-07:00

One of the founders of what has really become the industry’s (and media’s) bible for real estate statistics and forecasts, S&P Case Shiller, recently participated in a Q&A about the state of the housing market. Robert Shiller, a Yale University economist, discussed the housing market and the implications of lower interest rates. I found it quite conservative yet insightful and in my opinion, on target with what is going on in today’s market.

That is why for this edition of Weekly Market Watch, I am going to provide you with an excerpt from his interview:

Is the slump in U.S. home prices bottoming out?

Shiller: The situation has definitely changed. With our numbers — the S&P/Case Shiller home price index — going up sharply. It looks like a major turnaround. We’ve been watching that for three months now, and we have some concern that it could be an aberration and temporary. But, at this point, it seems to be evident in just about every city in the U.S. That suggests it’s real. But it probably isn’t the beginning of a major boom, just because the economy is in such bad shape. There’s also a chance that it will reverse. It’s still only three months old, so it’s very hard to be sure at this point. The most likely scenario is that it won’t continue at this high rate of increase, but that it will neither go down a lot, nor up a lot.

So the index will move sideways for a while?

Shiller: Yes, for a while, meaning five years.

What are the main factors driving U.S. house prices? What could push them up, or cause another slump?

Shiller: The main factor is the world economic crisis and the efforts of governments around the world to stimulate the economy. Parts of those efforts have been directed at the housing market. In the U.S., there is an 8,000 dollar first-time home buyer’s tax credit which expires at the end of November. That’s a reason for concern, as it comes to an end. Also, the Federal Reserve has a plan to buy $1.25 trillion worth of mortgage-backed securities to support the housing market. They are most of the way through the program and anticipate phasing it out at some time in 2010 - that’s another thing that will go away. We’ve yet to see how the housing market will continue. Part of the problem is that people are buying now rather than later. When later comes, there could be a downturn in the market.

Is there an oversupply of houses in the U.S.?

Shiller: That’s been a problem. The inventory of unsold houses has been high, but has come down a bit. On top of that, there will be more foreclosures, more homes are going to be dumped on the market as people default. Now, that may show down as home prices will start going up again. But I suspect that this isn’t going to happen. Also, banks have more REO, or real estate owned, that they’re holding on to for the time being. But eventually those REOs are going to be dumped on the market. So that’s why it doesn’t look particularly encouraging from a supply consideration.

Turning to interest rates, which are at exceptionally low levels: Is there a risk that this eventually will cause irrational exuberance?

Shiller: There is always a risk of that. Those things are hard to predict. However it seems like the present time is least conducive to bubbles of any time. We’re in what some people call “pretend-and-extend” economy, which means that banks that have commercial loans are often extending those loans and pretending that the property is worth something. That’s because they don’t face reality. This kind of economy isn’t really suited to a beginning of a real bubble. Now, everything could change… It’s surprising how strong the residential, single-family home market looks right now. It makes me think that it’s hard to predict animal spirits.

How long can central banks afford to keep expansive policies in place?

Shiller: In principle we can keep this in place for a long time. That’s what Japan did… But confidence is definitely coming back. The depression scare is over at the moment. So it would be plausible that central banks could be raising interest rates — both in the U.S. and Europe — [as early as next year]. But I just have a worry that this isn’t going to happen and that it’s not going to be so easy to extricate [themselves from the low-rate environment].

Will the sharp increase in global debt levels drive up inflation over the medium to long-term?

Shiller: My best guess is that we won’t have inflation, that central banks will pull it back as inflation starts to begin. But I think that there’s a chance of it; people have to be defensive in their investments. It always amazes me that people are so trusting and that they want nominal debt as much as they do… So a good long-term strategy is to invest a good part of one’s portfolio in inflation-indexed bonds, even though it doesn’t particularly look like the time to worry about inflation right now.

I tend to agree with Shiller on many of his statements, specifically that we are probably in the midst of a turnaround. Having said that, it is important to point out that this isn’t going to be a sharp “V” recovery with a sudden jump in prices or units. In all probability what we will see is a long “L” shaped broad recovery in which prices are relatively stagnant for some time before eventually inching up.

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

Boulder/Longmont—The Boulder office reported the biggest change in the Boulder County market over the past week was the big jump in showings for our office, up 18%. Listings and sales showed smaller changes, up 6% for listings, down 12% for sales. Increased showings seem to be the result of lower interest rates and Agents report more activity as first time buyers fear that the clock may run out on the $8000 incentive. The Longmont office reports showing activity is slowing just a bit. First time buyers and those in the lower price ranges are the main shoppers. Listings under $250,000 are being shown and sold. Right now, with the final push for the $8000 credit, any home under $250,000 that is NOT a short sales is snapped right up! Investors know that this is the time to buy. They are fine with the down payment. The rental market is strong. Now is the time to start your "Property Ladder"!
Evergreen/Conifer—Evergreen reported we had eight new listings for the week. Two listings went under contract including one single family home on the market for three years and one single family home from a floor call, both local buyers. Two buyers put under contract in the last week, one out of state buyer from MD and one local buyer purchase of single family home in Parker, a mid $200,000 property on the market for less than a week. There were 69 showings plus ten agent previews during the week. Conifer reported there were no new listings during the week. No listings went under contract and no buyers were put under contract. Our showing activity increased to thirty-four during the week.
Denver Central– There has been an increase in first time home buyers looking for properties and wanting to take advantage of the $8000 tax credit. With the deadline fast approaching and the possibility of an extension not occurring buyers are going to have to select a property within the next 30 days in order to close in time. The Denver real estate market continues to get positive national and local press on a weekly basis. We're very encouraged and excited about the future of real estate in Denver.
Devonshire— Now that our few days of cold, wet weather are over, we're excited about a good open house weekend. Our September was a little quiet as it usually is but October in the Devonshire office is always a busy month. Sellers are anxious to show their homes with fall decorations and turning leaves. Buyers this year are busy getting homes under contract and closed prior to the end of November. We're advising all buyers and sellers to close no later than November 15th if possible due to the rush to get homes closed by the 30th and it'll cause title and mortgage companies to be overloaded. Also, the 30th is the day after Thanksgiving holiday weekend and that in itself may cause backlogs and stress. We're excited to see the activity and energy that fall brings.
Douglas County—Our Southwest Metro office reports showings have been down the past three weeks especially this past weekend. Open houses were good and our Agents did acquire some good leads. Our Agents do have sellers gearing up to list their homes and do have buyers starting to become worried about the deadline for the $8000 credit. We feel that the public is in a holding pattern. They are waiting, especially buyers, to see if the $8000 credit will be extended or increased. We did have one Agent who had three of their listings go under contract in a week, one in 24 hours! We've had some great floor calls and also two walk-ins. Interest rates are good and we're seeing some buyers ready to start the process just in case the tax credit program is not extended.
El Paso County—Colorado Springs reports the listing inventory is still very steady, however buyer activity increased drastically last week. This could be an indication that more first time buyers are getting very motivated in order to take advantage of the tax credit which will expire on November 30th. For the same reason, we see a number of multiple offers on energy priced listings that are not short sales! We received twelve (!) offers on one bank owned listing!
Larimer County— New listings are up in both the Fort Collins and Loveland offices and the showing activity is also up from last week. Homes that went under contract this last week were listed as high as $637,000 down to $110,000 with most of the home sales in the mid-$200,000 range. There were also several homes priced in the $300,000 to $400,000 range. There are some great homes available and FHA rates are still at or near all time lows! More great news - There are still 70+ days to take advantage of the $8000 tax credit, but time is slipping away quickly. Realistically speaking, you need to be out looking at homes today if you hope to close prior to the November 30th deadline. You don't want to be closing at the end of November & risk having your closing pushed back past the deadline. Get out there and find your dream home at a great price and don't miss out on the $8000 tax credit!
North Metro— Overall business continues to be steady for the month of September. Listing inventories are decreasing as we move into the late summer. Buyers are continuing to take advantage of the buyer program and as a result we're seeing a lot of activity at the $100,000 to $225,000 part of the market. Average prices are edging up and we feel that this will stimulate the listing side of the business.
Parker— After a slowdown during August and early September, activity is picking up again. First time buyers are now very motivated to get under contract in order to close before November 30th to be able to take advantage of the $8000 tax credit. Power priced listings are still getting a lot of activity, multiple offers & some sell over asking price.
Southeast Metro— Showing activity has increased and we're back to 500 plus per week. Listing inventory is steadily decreasing and the number of new listings in the market is also on the decline. However, sales activity is busier than ever! We're scheduled to close over 150 properties this month, which is not our typical September. The luxury market continues to be sluggish, however homes in the $700,000 range are seeing more activity than the previous month.
West Lakewood— Appraisal problems still exist. An appraisal came in yesterday $55,000 below contract price. Anything under $250,000 is almost flying off the shelf on the west side of town. More $300,000 and up listings are selling. Buyers and sellers are calling our office for more information regarding current listings and to list their homes with Coldwell Banker.

Without a doubt, locally what continues to push our market in the right direction is the $8,000 first time home buyer tax credit. Currently in Washington D.C., real estate industry representatives and government officials are lobbying for either a $15,000 all home buyer tax credit or at minimum, an extension of the $8,000 first time home buyer tax credit but the result of that debate is still in the air. If the tax credit does disappear we are likely going to see an emergence of investors in the first time home buyer arena which may cause problems with housing prices and a continued erosion of the first time home buyer market. Please contact your local representative to call upon his/her support of this important initiative.

Next week I will release the October edition of Reality Check. This month’s edition will feature a Q&A from me on the local housing market and what we may expect for 2010.

Until then,
Make it a great week,

Chris Mygatt
Coldwell Banker Residential Brokerage Colorado

“The patient is out of intensive care, but still has a very long road ahead to a clean bill of health.”

2009-09-17T12:29:00.000-07:00

Those were the words last week from Fannie Mae Chief Executive Officer Michael Williams. The CEO went on to say, “Anyone looking objectively at the economy and the housing market sees hope.”

Another good solid indicator of what I’ve been saying in my weekly updates. The U.S. housing market still has a long road ahead but we are making some definite moves towards a housing recovery. So what’s the challenge? Well for starters, rising unemployment numbers aren’t helping. The United States Department of Labor reported in its September 4 Economic Situation Summary that the number of unemployed persons increased by 466,000 to 14.9 million and the unemployment rate rose by 0.3 percentage point to 9.7%. Just to give you an idea, since the recession began in December 2007, the number of unemployed persons has risen by 7.4 million, and the unemployment rate has grown by 4.8 percentage points.

We also need to couple that with the challenges in the mortgage industry. Bloomberg reported, “The mortgage market is still dependent on government-affiliated programs, with private banks providing just 10 percent of loan liquidity, down from about 60 percent in 2006. Fannie Mae and Freddie Mac are responsible for about 70 percent of all new mortgages, while the Federal Housing Administration accounts for about 20 percent.”

Before we can be truly reformed, we need to get into a position where there is more of a balance between private bank loans and Fannie Mae and Freddie Mac loans. In all actuality, we probably won’t see that for some time.

Having said that, U.S. mortgage applications surged last week with demanding rising to its highest level since late-May as consumers sought to take advantage of the lowest interest rates in months, according to Reuters.

The Reuters article reported, “While home refinancing loans dominated demand, the appetite for applications to buy a home, a tentative early indicator of sales, hit its highest level since early January. The overall trend bodes well for the hard-hit U.S. housing market, which has been showing signs of stabilization.”

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications which includes both purchase and refinance loans, for the week ended September 4 increased 17.0 percent to 648.3, the highest level since the week ended May 29.

These are all very positive indicators that showcase that we are on the right track…it’ll probably be a slow track…but we’re on the right one.

Now let’s take a look at this week in real estate—please excuse the light reporting week—many of us are Riding the Range in support of Coldwell Banker’s Community Fund!

Boulder/Longmont—The Boulder office reported only minor changes in the Boulder County market over the past week. New listings were down a little (about 5%), under contracts and closed down a little (about 6%), probably due to end of month closings in August , more than a market shift. Showings for our office down 12% for the week, well within normal weekly fluctuations. The week's good news is for the year through August our listings have sold at 98.35% of asking price versus 96.34% for the MLS average. Since our average price for that period was $435,000, sellers in Boulder County put $8,734 more in their pockets when they listed with us!
Evergreen/Conifer—No information reported.
Denver Central – No information reported.
Devonshire— No information reported.
Douglas County—Our Southwest Metro office reports s showings were down this past week. We did have several successful open houses and we had several listings that went under contract within three days. Agents are busy with buyers and sellers. One of our Agents had three listings go under contract in one week and we are seeing listings moving. The majority of the buyers are looking at homes $300,000 and less and we are seeing buyers ready to take advantage of the $8000 credit before the deadline.
El Paso County—Colorado Springs reports activity is still very steady with showings increasing only slightly. First time buyers are getting more serious since they have to close before Nov. 30th in order to take advantage of the tax credit. We're also watching the possibility of changes in the tax credit deadline and terms as well as the lifting of the moratorium on bank owned properties.
Larimer County—The Fort Collins/Loveland offices reported showings are down pretty significantly and it looks as though there are not a lot of homes coming onto the market currently. Recent stats from Weld & Larimer counties report that over 80% of the year to date home sales are below the $300,000 price point. This lower price point allows for excellent rates on FHA financing with as little as 3.5% down & many 1st time home buyers are taking advantage of these great rates. The super hot price point in Fort Collins & Loveland are homes priced around $200,000. We are seeing homes in good condition and in near this price selling relatively quickly and many are selling at list price with competing offers.
North Metro—No information reported.
Parker— After a very active summer, we are now seeing a decline in activity on the sales and showings as well as new listings coming on the market. Great effort is put into the initiative to extend and expand the tax credit for home buyers.
Southeast Metro—As we move into the fall, business is steady and we have seen an increase in the number of properties selling. Our average number of showings before a listing goes under contract has dropped from 26 to 22. This is a great indicator that there are serious buyers out there! We're seeing fierce competition for homes under $225,000, with many selling above list price. Luxury homes are seeing a slight increase in traffic as 10% of our Previews homes are currently under contract. We'll close over 140 transactions this month and are confident about a strong 4th quarter.
West Lakewood—No information reported.

I did want to let you all know that I will be taking next week off of Weekly Market Watch but I will return the following week with another robust edition.

Until then,
Chris Mygatt
Coldwell Banker Residential Brokerage Colorado

“Yes, the housing market has rarely looked better.”

2009-09-10T13:38:00.000-07:00

That was the headline in a September 2 The Wall Street Journal article. Click here to access it: http://online.wsj.com/article/SB10001424052970204047504574386802310702622.html. This was a really interesting piece which looked at numbers from Standard & Poor’s and NAR.

Following is an excerpt from the article:

“Last week, Standard & Poor's reported that its S&P/Case-Shiller U.S. National Home Price index of real-estate values increased this past quarter over the first quarter of 2009, the first quarter-on-quarter increase in three years. Its index of 20 major cities also rose for the three months ended June 30 over the three months ended May 31, with only hard-hit Detroit and Las Vegas experiencing declines. The week before that, the National Association of Realtors reported that sales volume of existing homes was up 7.2% in July from June.

In short, the data suggest that real-estate prices hit a bottom some time during the second quarter, and have now begun to rise. There's no way to be certain that this marks the end of the long, painful correction that followed the real-estate bubble, but clearly prices are no longer in free-fall. That means if you've been sitting on the fence, it's time to act.

Ordinarily I'd never try to time the real-estate market, but I can understand why buyers have been cautious. Few want to buy in down markets, just as stock buyers avoid bear markets. And for most people, of course, buying a house is a much bigger decision than buying a stock. But with real-estate prices nationally now down about 30% from their 2006 peak and showing signs of turning up, the prices aren't likely to go much lower. Every real-estate market is local, and so there may be a few exceptions. Overall, though, I can't imagine a better time to buy than now.”
This of course is what I’ve been saying for some time and it is nice to see it in black and white in a reputable publication like The Wall Street Journal. The fact is, while we may have a long road ahead, we probably have hit bottom and if you were considering buying you probably should consider acting now before it is too late.

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

Boulder/Longmont—The Boulder office reported the big dip in Boulder county numbers didn't last long, with sales now up 16% during the first week of September over the last week in August. New listings were up by 14% so there's a win in the lower inventory department. No sign of a big end of slowdown either. Showings were up 6.5% week over week too. Still, lots of confusion amongst Agents out there about when to use the foreclosure contract & the meaning of MEC vs SSA. We just keep hammering home the difference, one deal at a time. The Longmont office reported showing activity is very steady week over week. A good sign considering the weeks involved were a part of the Labor Day holiday. Homes that went under contract were up 33% over last week and that a yearly high for "under-contracts" in a single week. The price is still a huge indicator of activity. Most homes shown are under $250,000. Higher priced homes are seeing a slower increase in activity. Slower is better than faster. The final push for the $8000 credit for 1st time buyers.
Evergreen/Conifer—Evergreen reported we had a total of nine new listings for the week. Five listings went under contract during the past two weeks. There were four local buyers plus one cash buyer from Texas. Four buyers went under contract. All were local. There were a total of 77 showings during the week. Conifer reported we had only one new listing during the week. Two listings went under contract, one bank REO and one private seller. No buyers were put under contract. Showing activity decreased to 27 during the week possibly due to the holiday weekend.
Denver Central – There has been an increase in first time home buyers looking for property and wanting to take advantage of the $8000 tax credit. With the deadline (November 30th) fast approaching, the possibility of an extension not occurring buyers are going to have to select a property within the next 30 days to take advantage of the credit. The Denver real estate market continues to get positive national and local press on a weekly basis. We are very encouraged and excited about the future of real estate in Denver. Showings are continuing to increase which is a positive sign for this time of year. We are seeing appreciation of home prices in several neighborhoods. The lower-end market has certainly shifted to a seller's market with properties moving quickly. Properties that are priced aggressively are seeing multiple offer situations. We're also seeing an increase in cash offers on homes in the area. Many properties in the lower end go under contract within days of being put on the market.
Devonshire— As we have seen in recent years, August was a bit slower than July. We're looking forwrad to the September rebound as kids are back in school and parents can concentrate on the business of finding the right home and getting settled before the holiday season. There are buyers just waiting as seen by the two homes that we were able to put under contract just by talking about new listings in our weekly business meeting. Any sellers who are thinking about getting their homes on the market should act now. Don't miss this window of opportunity. We're still seeing the upper end home sector not seeing too much activity but we're confident that this well change within the next several months & most certainly as we move into 2010. At Devonshire, we are looking forward to a busy and successful future.
Douglas County—Our Southwest Metro office reports showings have been steady even during the long holiday weekend. We had three listings with multiple offers and several of our Agents on the buy side. Open houses were good this week & we also had two clients walk in to our office needing help in finding a home. The homes again are selling in the $250,000 to $300,000 range & we're seeing activity from buyers wanting to take advantage of the $8000 credit before November 30th. We're seeing good results from all of the positive news regarding the Denver market.
El Paso County—Colorado Springs reports sales and showing activity has decreased slightly and we expect this trend to continue for the next several weeks. We still see a good number of new listings come on the market, therefore causing an increase in listing inventory. The currently low interest rates help to keep the sales activity on a good level.
Larimer County—The Fort Collins/Loveland offices reported summer is coming to a close, kids are starting school & real estate is settling down. Showings saw a slight bump up from the end of last month, but nothing substantial. The good news is that there are fewer homes on the market and this means less competition for sellers in this already tough market. We have had a few bright spots this last week. Two agents put homes under contract in less than a week & sellers are motivated are motivated to look at quality offers from buyers. In addition, investor clients are realizing we may be near the end of the road on really good investment deals. They are looking to make a move before the end of the year. Finally, we have less than 90 days left to take advantage of the $8000 1st time home buyer tax credit. Get out there and get that new home before this money goes away for good!!
North Metro—No information reported.
Parker— It looks as if these are the last weeks of high sales activity before the seasonal slowdown during the fall. The number of new listings as well as showings have decreased already. For the serious seller the time to list homes and get them sold quickly for top dollar is running out!
Southeast Metro—No information reported.
West Lakewood—Our Agents are excited about this market. Two listings, one on the market for eight days and another on the market for 42 days both received full-price offers. The price ranges were $250,000 and $375,000. Show condition is very important. If the home doesn't show well, it is much less likely to receive an offer. Sellers need to spend the money & take the time to update their home, stage it & spend some time doing so. Out of state buyers take longer to make a decision. Sometimes it takes tens of homes before they understand our current market.

This week I’ll leave you all with the reminder that the $8,000 federal tax credit for first-time homebuyers is scheduled to expire on December 1. However, in order to qualify, the transaction must be closed on or before November 30, essentially leaving first-time buyers with less than three months to complete the process.

While the urgency of trying to find and close on a home before the deadline may seem stressful, it doesn't have to be. Just contact your Realtor today and they can walk you through the process or visit us online at ColoradoHomes.com.

Until next week,
Chris Mygatt
Coldwell Banker Residential Brokerage Colorado

So Much for a Sleepy Summer

2009-08-28T14:07:00.000-07:00

Generally speaking the Colorado real estate market has seen a bit of a bounce this summer with sales increasing in all categories—from the entry level homes and condos to the high-end market.

National figures showed June with an 11% increase in home sales. But, realizing that a majority of the spring home inventory has been introduced, we may start to see a little slowdown in August/September as old inventory is taken off the market and a smaller surge of inventory arrives.

In other words, there is still much recovery that needs to be taking place. Sellers still need to get a bit more realistic about price and buyers need to recognize a good bargain when they see it.

In general, most homes are on the market longer with discerning buyers waiting for the optimal home at the optimal price. A well-priced, well-presented home can still fetch multiple offers, but it’s got to look appealing to the savvy buyers who are doing their homework. There is no sense in overpricing a listing – a buyer won’t even give a home the time of day if they sense the seller is being unrealistic. Yet at the same time, there seems to be no better time to snatch up bargains in Colorado at all price points. We’re seeing five to 10 percent reductions in properties that are sitting on the market and in many cases the final offers are coming in below those reductions. That’s not to say buyers should throw out ridiculous numbers. Some sellers who don’t have to sell are holding firm, but time is running out for others. So, while it may take longer to get the buyer and seller to agree to terms, deals are happening and with open minds on both sides, we might start to see more positive movement for all.

For cash buyers or those with large (over 25%) down payments, now is a great time to pick up bargains in luxury homes. Sellers are still not giving away property but there are great deals available.

This week the National Association of Realtors released its monthly existing home sales report (http://www.realtor.org/press_room/news_releases/2009/08/strong_uptrend?LID=RONav0021) noting “For the first time in five years, existing-home sales have increased for four months in a row, according to the National Association of Realtors®.” The report went on to note, “Existing home sales – including single-family, townhomes, condominiums and co-ops – rose 7.2 percent to a seasonally adjusted rate of 5.24 million units in July from a level of 4.89 million in June, and are 5.0 percent above the 4.99 million-unit pace in July 2008. The last time sales rose for four consecutive months was in June 2004, and the last time sales were higher than a year earlier was November 2005.”

Lawrence Yun, NAR chief economist, said he was encouraged. “The housing market has decisively turned for the better. A combination of first-time buyers taking advantage of the housing stimulus tax credit and greatly improved affordability conditions are contributing to higher sales,” he said.

Ultimately these are all very positive signs for our market and are a strong sign that we are moving in the right direction towards a housing recovery. Having said that, it’s important to keep things in perspective and not celebrate too soon. We all need to be realistic with our pricing, buyers and sellers.

A few other interesting articles of note for the week:

· Home Prices On An Upswing In The Second Quarter Of 2009 According To The S&P/Case-Shiller Home Price Indices; Case-Shiller
· New Home Sales Blast Past Expectations; CNNMoney.com
· The Housing Market: Has It Turned the Corner?; TIME Magazine
· Mortgage Applications Increase In Latest MBA Weekly Survey; Mortgage Bankers Association
· Home Market Shows Signs of Life as Declines Slow; Bloomberg

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

Boulder/Longmont—The Boulder office reported new listings in the Boulder County market took a 3% dip last week and new sales fell by a substantial 19%. Despite that, showings were up 25% last week so there is still a tremendous amount of buyer activity. Agents at the Boulder office report a sharp rise in creative and complex offers over the past week with a number of buyers asking for things like some degree of owner carry, right of refusal or extremely delayed closings. Some offers on listings as low as 70% of the asking price have been seen as well. This, in an area where the average sale price to list price ratio averages 96% in the under $1,000,000 market. The Longmont office reported once again, the showing activity is increasing. This "week over week" the mid week are the ones that had the highest increase. Weekend showings were off just a bit. Buyers are seriously looking. The start of school usually brings a brief decline in showings and contracts. Not this year! Some of the good press about the Denver area is filtering to Longmont. Our employment situation here is holding steady. Colorado has become a more affordable place to live. More companies are realizing our affordability makes this a great place to relocate their business.
Evergreen/Conifer—No information reported.
Denver Central –We are seeing an increase in the higher priced homes going on the market and receiving offers, which is a positive sign. The Denver real estate market continues to get positive national and local press on a weekly basis. We've seen an increase in showings for August and our August 2009 numbers are outpacing August 2008. More buyers are taking advantage of the $8000 tax credit with the November 30th deadline approaching fast. We are also seeing appreciation of home prices in several neighborhoods. The lower end market has certainly shifted to s seller's market with properties moving quickly.
Devonshire— No information reported.
Douglas County—Our Southwest Metro office reports showings were down this past week especially over the weekend. Agents attribute this to school starting and last minute vacations. Open houses were very successful and we had two walk-ins. We are seeing sellers ready to list their properties in September and this is a good thing as inventory is low at this time. We're also seeing buyers wanting to take advantage of the $8000 tax break before it goes away. Our mortgage rep is very busy and this is always a good sign. Properties are still not moving quickly above the $350,000 level. We're encouraged with the local and national news about the real estate market.
El Paso County—Colorado Springs reports our listing inventory and sales activity have been steady for a while now. Showings went down slightly last week and we need to watch if this is a sign of reduced activity because the end of summer is approaching. It seems like banks are starting to approve more short sales as we were able to get some prepared for closing. Prices in most neighborhoods are stable for now.
Larimer County—The Fort Collins/Loveland offices reported she summer season has nearly passed us by, but that doesn't mean that real estate sales have come to a halt. There's still some good inventory available in the Northern Colorado market. Both buyers & sellers need to be realistic about price & be willing to negotiate terms and conditions in order to put a sale together. Home prices are stable & recently Freddie Mac & Fannie Mae declared all the markets in Colorado stable. This should loosen some of the restrictions on conventional loan financing for buyers. Finally, time is running out to take advantage of the $8000 tax credit. Only a little over 90 days left to take advantage of this great opportunity.
North Metro—The North Metro office is experiencing increased activity with regards to new contracts. This is due largely to the urgency created by the first time buyer tax credit program. In addition, listing inventory should be picking up as some of the terms in the office are in the process of closing on some larger opportunities. The Agents are doing a great job of staying in front of their clients and working every lead. This is reflected in the increased dividends as we move into the 4th quarter.
Parker—What an incredible increase in showing activity last week - almost double from the week before! Our sales activity has increased as well and the listing inventory is going down. We are confident that this trend will hold past the end of summer and start of most schools.
Southeast Metro—The SE Metro office is experiencing a slight decrease in showing activity which can be attributed to the start of the school year for the surrounding districts. Our average days on market for listings is steady at 79 days and we are averaging 25 showings before a property is selling. Inventory continues to drop and there continues to be a shortage of desirable properties below $250,000. Luxury properties are seeing additional traffic as 10% of our Previews properties are currently under contract.
West Lakewood—The West Lakewood office is reporting "skinny" inventory by all price points. Buyers have more clarification and realize that the inventory is more limited than it has been. The reduction of inventory is making buyers more focused on their choices.

Please note that next week I will be taking a brief hiatus from Weekly Market Watch but I will return the following week.

Until then,
Make it a good one,

Chris Mygatt
Coldwell Banker Residential Brokerage Colorado

Good News On Wall Street Doesn’t (Necessarily) Mean Higher Housing Prices on Main Street

2009-08-20T16:45:00.000-07:00

I had an interesting chat with one of our Agents recently. She mentioned that many of our sellers in the upper-tier price point are seeing the current strength of the Dow as a sign that their home will probably fetch more in the early part of next year. Academically speaking, there is a belief that there is a direct correlation between the housing market and the stock market. But from an analytical standpoint, although the stock market and the housing market correlate well, there is a variable time lag. The time lag between housing underperformance and stock market performance can vary widely. The average is 18 months.

What we’re seeing, in some instances, is that some of the upper-tier clients are saying no to potential deals as they think if they wait another four to six months (thanks to the stock market’s recent gains) they may get more for their home. And while I understand the reasoning, I would caution sellers on this strategy. First, what we know is that in a “normal” market (of which this market is anything but), the average lag time between the two is 18 months (not four to six months). It’s also important to point out that we probably aren’t out of the woods as it relates to the volatility in the stock market. Many analysts are suggesting that our recovery will be “W” shaped rather than “V” so we may be looking at more changes ahead.

So while I understand the logic, I would caution sellers on this strategy and would ask them to focus less on the stock market and more on the level of supply and demand in their market and in their neighborhoods. In most markets, the upper-tier price point remains relatively soft so sellers should consider most deals that are presented to them. That’s not to say buyers should be throwing out unrealistic offers. The real story here is that across the board we’re starting to see increases in interest and buyer activity so sellers may want to consider taking advantage of that interest…before it’s too late.

For those who are focused on the stock market, my best advice to you is to look at it more as an indicator for the economy as a whole. With the DOW closing Thursday at just over 9,300, it may not be making housing prices go up, but it may mean that the recession is subsiding which is good news for us all.

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

Boulder/Longmont—The Boulder office reported small but steady increases in all the Boulder county market numbers last week. Listings were up by 12%, under contracts up by 17% (not bad) and showings up by 15%. Two good things to note here, although showings are up, under contracts are up by a higher number. Agents are also seeing no "end of summer" drop off of buyers yet. It's very unusual to see showings increasing as we approach September. The Longmont office reports showing activity continues to increase. The large increase in showing activity did translate into deals being written. Twice as many offers were accepted this week over last week. Listings also took a big rise. We are seeing some good listings going on the market that are not short sales or foreclosures. The upper end market still needs help. The $8000 credit for 1st time buyers needs to have a matching program for the upper end market to get it moving too. Loan issues continue to bring problems. We need at least 30 days to make it happen - 45 days to close is much more realistic for all.
Evergreen/Conifer—Evergreen reported we had a total of two new listings for the week. Three listings went under contract including one builder spec. One local buyer, one from Denver and one Texas. Three buyers went under contract, two local one one from Oregon. Three were a total of 81 showings during the week. The week was close to normal level for peak season. The majority of activity in three different price points - $200,000 to $250,000 for 1st time buyers and investors. The $300,000 to $500,000 is strong and recent strong activity in the $500,000 to $1,000,000 range. Conifer reports we had two new listings during the week. One listing went under contract - short sale pending bank approval. Showing activity increased to thirty-three during the week although that's still below normal levels for this time of year.
Denver Central – We are seeing an increase in higher priced homes going on the market and receiving offers which is a positive sign. The Denver real estate market continues to get positive national and local press each week. We're encouraged and excited about the future of real estate in Denver. We've seen an increase in showings the first two weeks of August and it's tracking better than July for showings. Our August 2009 numbers are outpacing those of last year. More buyers are taking advantage of the $8000 tax credit with the deadline fast approaching. We're seeing appreciation of home prices in several neighborhoods. The lower-end market has certainly shifted to s sellers market with properties moving quickly. Those that are priced aggressively are seeing multiple offer situations. We're also seeing an increase in cash offers on homes in the area. Many in the lower end go under contract within days of being placed on the market. The high-end market continues to be sluggish.
Devonshire— We seem to be in the August "hurry and take a family vacation" or "get ready for school" days. Showing activity is steady but both sellers and buyers are distracted with other activities. We are encouraging reevaluation of home prices, making price adjustments as necessary & freshening up both the interior & exterior of homes. September is always a good month for us at Devonshire as our clients are ready to move forward with purchases so they can be settled before the holidays. Mortgage rates are still attractive and consumer confidence seems to be sending somewhat of a positive message. We are feeling very positive about the remainder of 2009 and look forward to 2010.
Douglas County—Our Southwest Metro office reports we had a great week of showings. Open houses were very good this past week and we're seeing a steady increase of sellers ready to list their homes. Buyers, especially first time ones are looking to buy but the inventory is very low in the $250,000 range. There has been steady activity in homes priced below $350,000. We're experiencing a slight increase in the $350,000 to $450,000 range. We feel as an office that the public is ready to move forward to either purchase or sell a home. The Agents are getting the message to their clients/sphere that the $8000 tax credit needs to be used before December 1, 2009. The news on local TV channels has been positive and this has been a good tool to use on sellers & buyers.
El Paso County—Colorado Springs reports although sales activity has slowed down slightly, we still see a lot of activity on our listings which is also reflected by the strong increase in showings. There is some uncertainty about some military personal relocating from Texas to Ft. Carson. This relocation has been approved but now delayed after intervention from politicians in Texas.
Larimer County—The Fort Collins/Loveland offices reported the end of summer lull is here and families are getting the kids ready for school and the college students are rolling in from a nice summer break. Showings were down dramatically last week and this is to be expected based on the time of year. The good news is that there are still plenty of great homes to choose from and well priced homes are moving. Ft. Collins currently has over 1500 single family homes and Loveland offers 1000 plus homes. Come out and see the inventory. You won't be disappointed. It's hard to believe but we only have about 3 1/2 months left to take advantage of the $8000 tax credit. It is unclear whether or not this program will be extended so take advantage of it while you can!
North Metro—The North Metro office is humming with activity. We just received a letter from Bruce Zipf, President & CEO of NRT, that our office is in the Top 20% of offices for the 2nd quarter of this year. The Agents deserve this recognition as their activity continues to be very high. In the past month we've seen the price of our new listings increase from $275,000 to a current average of $325,000. Showings are picking up on homes priced over $250,000. We've put several homes under contract in the $400,000 to $650,000 range which is a recent change in our market.
Parker—Our listing inventory stays steady and although the showing activity has dropped slightly over the last week, sales activity has gone up consistently over the last few months. Our closed transactions were up over 50% last month year over year and we are up 15% year to date compared to last year. Douglas County was just rated #5 in the country for job growth and the towns of Parker and Castle Rock are #3 & #4 in most desirable places to live!
Southeast Metro—The SE Metro office is experiencing a slight decrease in showing activity which can be attributed to the start of the school year for the surrounding districts. Our average days on market for listings is steady at 79 days and we are averaging 25 showings before a property goes under contract. Inventory continues to drop and there continues to be a shortage of desirable properties below $250,000. Luxury properties are seeing additional traffic as 10% of our Previews properties are currently under contract.
West Lakewood—The West office is seeing more sales in the over $300,000 price range. Low appraisals are becoming less of a problem. If a buyer wants to take advantage of the $8,000 tax credit, they should act now! Do not wait! There is a shortage of inventory in these price ranges.

This week I’ll leave you with a few good articles of note:

Mortgage Applications Increase In Latest MBA Weekly Survey; Mortgage Bankers Association
Optimism Grips Homeowners: 81% Think Home’s Value Will Increase Or Stay Same In Next 6 Months; RISMedia
Are New Home Prices, Starts And Sales Rates Nearing Bottom?; RISMedia

Until next week,

Chris Mygatt
Coldwell Banker Residential Brokerage Colorado

They’re Saying The Worst is Behind Us…But Is It Too Soon to Celebrate?

2009-08-13T19:04:00.000-07:00

I was driving home from an office meeting this week and was listening to NPR. During the drive, an interesting update came on which mentioned that the Federal Reserve was reporting that the recession is ending and that it would take a step back toward normal policy.

When I got home I decided to Google the news and I found this article on the NYTimes.com website: http://www.nytimes.com/2009/08/13/business/economy/13fed.html?_r=2&partner=rss&emc=rss&src=igw. The article reports, “Almost exactly two years after it embarked on what was the biggest financial rescue in American history, the Federal Reserve said on Wednesday that the recession is ending and that it would take a step back toward normal policy.”

The article goes on to note “Though the central bank stopped well short of declaring victory, policy makers issue their most upbeat assessment in more than a year by saying that the downturn appears to have hit bottom and that consumer spending, financial markets and inventory building by corporations all continued to stabilize.”

Well never one to solely rely on just one institution’s opinion, nor that of just one article, I decided to put my feelers out. I reached out to a loan officer colleague to get his take and to learn more about what our mortgage colleagues are seeing in relation to the current state of the economy. He had some comments that I tend to agree with noting that “Many are concerned we’re going to have a ‘W’ shaped recovery versus a ‘V’ shaped recovery. We don’t want to proclaim the recession is over, only to see the economy struggle for another year. It’s going to be a long, slow recovery. One month we may have positive economic news and the next, poor economic news.”

Having said that, here is what we tend to be seeing about the market:

It does appear that the worst of the recession may be behind us.
In all likelihood, the Fed is going to keep rates relatively low well into next year by continuing to purchase mortgage backed securities and keep the Federal Funds Rate close to zero. It is currently at .25%.
In terms of conforming loan limits, as of right now, the higher conforming loan limits will end at the end of this year. There is some legislation that is pending to renew the higher loan amount through until November 2010 but as of right now, that is pending. The same holds true for the first-time home buyer tax credit.

Knowing this, what lies ahead? Well I would say it’s positive to know that the worst may be behind us, but in all likelihood there are still challenges ahead. There is still much recovery that needs to take place, so neither sellers nor buyers should be getting too excited with the news. Sellers still need to get a bit more realistic about price and buyers need to recognize a bargain when they see it.

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

Boulder/Longmont—The Boulder office reported our market has shown stable numbers in new listings taken annd sales. We continue to receive numerous calls having to do with the $8000 credit and how it works. Louisville is still showing strong sales and quick to go under contract compared to other areas. The financial market still limits us to lower price ranges to go under contract which is a much different trend in this area than usual. The Longmont office reported there has been a huge improvement in showing activity. We are are up 48% week over week. The activity was mainly in the $250,000 and under range however homes under $500,000 were also being shown! The favorable news about Colorado markets seems to be reaching the buying public. The summer weather has been stellar as long as you are not a hay farmer. Eastern Colorado is beautiful and green. This is a great time to become a homeowner in Longmont, Colorado.
Evergreen/Conifer—Evergreen reported we had six new listings for the week. One listing, a vacant land parcel in Pine went under contract reflecting the continued improvement in land sales in the recent few weeks. There were 88 showings during the week representing a slight increase over the prior week. Conifer reported we had two new vacant land listings during the week.
Denver Central The Denver real estate market continues to get positive national and local press on a weekly basis. We are very encouraged and excited about the future of real estate in Denver. July was another great month for sales in the Denver area. We continue to have substantial drops in housing inventory and we see an increase in the number of existing homes sold. We had an average of 83 days on market for listings (all price points) that went under contract in July. We've seen an increase in showings for the first two weeks of August. More buyers are taking advantage of the $8,000 tax credit with the December 1st deadline fast approaching. We are also seeing appreciation of home prices in several neighborhoods. The lower-end market has certainly shifted to a seller's market with properties moving quickly. Properties that are priced aggressively are seeing multiple offer situations and an increase in cash offers on homes in the area.
Devonshire— No information reported.
Douglas County—Our Southwest Metro office reports showings were great this past week. We're seeing an increase in listings as well as buyer contracts. Sellers are feeling that it's a good time to sell their homes and buyers want to take advantage of the tax break and low interest rates. The agents feel that the good news regarding the housing market in Denver has helped sellers and buyers start to move forward. Open houses were very good this past week. Floor calls were good as we had several agents obtain leads. The office is very busy and Agents as well as their clients are feeling good about the market, especially in the price range below $350,000.
El Paso County—Colorado Springs reports both our listing and sales activity are steady at the moment. Although showings have decreased slightly, we have a steady number of under contracts. As in previous weeks, we have received multiple offers (eight on one property) on the power priced listings.
Larimer County—No information reported.
North Metro— We are experiencing a little slower start in August with homes under contract than we experienced in July.
Parker—The activity has slowed down and the inventory built up slightly last week. However, we still see a good number of multiple offers on energy priced listings & values have been steady for a while now in most neighborhoods. More than half of all resale listings are in a short sale situation.
Southeast Metro—The SE Metro office reports our inventory has decreased by 7% since the first of the month and new inventory coming on the market is steady. First time home buyers are challenged with competing offers and desirable properties selling at well over the original list price. We're experiencing a slight increase in offers on properties priced above $700,000 and even some movement in the million dollar range. Overall there is a lot of energy in the real estate market right now and some brokers are experiencing a significant increase in business.
West Lakewood—Buyers are quite frustrated with the current lending climate. In one instance, the buyer used a lender from MD which meant the appraiser was also from MD. Needless to say, the appraisal came in much below expected. Fortunately the buyer moved to a Colorado lender to resolve these issues. Our Agents are optimistic and are seeing signs of recovery.

In terms of marketing activity, in general, depending on the price range, most homes are on the market longer with discerning buyers waiting for the optimal home at the optimal price. A well-priced, well-presented home can still fetch multiple offers (especially if it is in the entry-level market), but it’s got to look appealing to the savvy buyers who are doing their homework. There is no sense in overpricing a listing – a buyer won’t even give a home the time of day if they sense the seller is being unrealistic.

Yet at the same time, there seems to be no better time to snatch up bargains in Colorado at all price points. We’re seeing five to 10 percent reductions in properties that are sitting on the market and in many cases the final offers are coming in below those reductions. That’s not to say buyers should throw out ridiculous numbers. Certain parts of Colorado, after all, have still held their value better than most of the country. Some sellers who don’t have to sell are holding firm, but time is running out for others. So, while it may take longer to get the buyer and seller to agree to terms, deals are happening and with open minds on both sides, we might start to see more positive movement for all.

Finally, I’ll leave you with this. Business Week released its “Strongest U.S. Housing Markets” list this week and Boulder was listed as the nation’s No. 1 safest housing market. Here’s a link to the story: http://finance.yahoo.com/real-estate/article/107509/the-strongest-us-housing-markets.html?mod=realestate-buy.

Until next week,
Chris Mygatt
Coldwell Banker Residential Brokerage Colorado

One Good Week of News Leads to Another

2009-08-06T14:55:00.000-07:00

Following last week’s breaking housing news which revealed that based on the Standard & Poor’s/Case-Schiller 20-city index, home prices in May posted their first monthly increase since the summer of 2006.

The news followed reports showing sales of newly built and existing homes rose in June for the third consecutive month. New home construction, though still weak, is the best it has been since the fall.

Well this week the good news continued. The Mortgage Bankers Association (MBA) released its Weekly Mortgage Applications Survey for the week ending July 31, 2009 showcasing an increase in mortgage loan application volume of 4.4 percent from the week earlier. On an adjusted basis, the Index increased 4.1 percent compared with the previous week and 18 percent compared with the same week one year earlier.

The Refinance Index increased 7.2 percent from the previous week. The Index has climbed about 35 percent above its recent low at the end of June. The seasonally adjusted Purchase Index increased 0.9 percent from one week earlier.

Also interesting to note is this week’s release of the National Association of Realtors’ Pending Home Sales Index in which it revealed an increase of 3.6% during the month. That was 6.7% higher than June 2008. It was the fifth straight month of increases, the first time that has happened since July 2003. The jump was much higher than expected with a consensus of industry experts put together by Briefing.com forecasting an increase of just 0.7%.

NAR’s Chief Economist Lawrence Yun had this to say, “Historically low mortgage interest rates, affordable home prices and large selection are encouraging buyers who’ve been on the sidelines.” It seems all of these incentives, much like the Cash for Clunkers program, is finally pushing people off of the fence.

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

Boulder/Longmont—The Boulder office reported new listings in the Boulder County market showed a decrease of over 18% last week, the first significant decline in a month. Meanwhile, new under contracts were up by over 16% so both numbers are moving in the right direction. Showings in the county also increased by whopping 35% last week. Side note about July - County wide, there were 739 price reductions in July. Longmont reported showings are down for the third week in a row. Homes going under contract are steady and new listings came up more than double week over week. The good news about the general Denver area is big. We are anticipating that the price of homes in general Longmont area will follow the Denver increase. Homes in the $300,000 to $400,000 were shown more this last week. Maybe the start of a good trend for the move-up market inventory. Appraisals are still a problem for the buying process. Agents are watching whole purchasing process with great detail to make sure the glitches are smoothed out for everyone.
Evergreen/Conifer—Evergreen reported five listings went under contract during the past week. Two were vacant land parcels in Idaho Springs/Dumont. Land sales have been quite slow over the past year and these contracts represent the first land sales in six months. One contract, a single family home in Arvada went under contract on the first day after only one showing. Two contracts were single family homes in Conifer, one with three offers and one after only 31 DOM. Five buyers represented by our Agents also went under contract for the week; one buyer was the first showing of the property and submitted an offer which was accepted. We had 86 showings during the week and a total of 378 for the month. Five new listings during the week and a total of 17 for the month of July. Conifer reported we had three new listings during the week totaling $1,300,000. Two listings went under contract one of which was a single family home in Bailey with multiple offers which went under contract at higher than list price. Two buyers put under contract for single family homes in Conifer & Pine. Showing activity decreased to 31 during the week.
Denver Central - This past week Denver was ranked #1 in the country for biking and hiking trails by the National Park & Rec Association. Forbes magazine recently ranked Denver as the #1 place to buy real estate and #13 in coolness factor in the country. The Denver real estate market continues to get positive national and local press on a weekly basis. We are very encouraged and excited about the future of real estate in Denver. We continue to have substantial drops in housing inventory in the Denver area and we have seen an increase in the number of existing homes sold. The lower-end market has certainly shifted to a sellers market with properties moving quickly. Properties that are priced aggressively are seeing multiple offer situations. Many properties in the lower end go under contract within days of being put on the market. The high-end market continues to be tough but we're seeing improvement.
Devonshire— Activity is good here at Devonshire. We're working hard on getting our sellers to allow us to do open houses as we know that there are now more buyers out there looking for homes. We've had a very busy July with many homes going under contract. As buyers are missing homes that have sold to others because they waited, we see more activity. Why would buyers who are really serious about moving wait & miss the perfect home? We think that this is why the open houses are getting more traffic. Lending restrictions are creating delays in some closings - all the more crucial for the public to be working with full time, knowledgeable professionals. We're looking forward to a busy August with lots of homes coming on the market & many buyers finding that perfect home.
Douglas County—Our Southwest Metro office reports our Agents were very, very busy this past week listing homes. We are seeing sellers ready to list their properties especially after local news stations were reporting an increase in the price of homes with some areas showing the same price as in 2003. Our showing activity was very good this past weekend. Open houses had great traffic and our Agents received some solid leads. We are seeing some buyers ready to move but there are some that are still waiting for the "deal.” We feel good about the market at this time & hopefully it will continue to turn upward.
El Paso County—Colorado Springs reports sales activity was steady and showings increased slightly last week. We have received a good number of relocation leads, both buyers and listings. As a result, our listing inventory has increased and we expect it to continue increasing slightly for the next few weeks. Banks remain slow on negotiating short sales.
Larimer County—Our Fort Collins/Loveland office reports the market is very steady right now in Northern Colorado. We are seeing consistent numbers across the board the last two weeks in showings, closings, under contracts and new listings coming on to the market. Investors who are cash heavy are taking advantage of the flat market and purchasing properties for the same price they could have four years ago. This trend will likely continue the next six to nine months with the low interest rates and good deals to be had. One Agent recently put her clients under contract for a fix and flip property that is protected to make approximately $40,000 once repairs and upgrades are made. There are still good deals to be had if you know where to look.
North Metro—The office continues to be very active and aggressive as we all continue to meet the challenge of the dynamic market. We see strong listing opportunities and our month end activity reflects signs of a stronger market. Sales in the office are steady despite the challenge of short sale, REO and multiple offer transactions. Our average sale price indicates that we must continue to deal with these issues and our Agents continued success is what separates them from our competitors. Good solid indicators that the market's improving are found in the mood of the customers that seems to be changing from total retreat to cautious optimism.
Parker—Sales activity has increased which caused our listing inventory to decline. It looks like we are experiencing a little spike towards the end of summer. News came out that the moratorium on Bank-Owned properties has been extended until November 30th, which will help our sellers over the next four months.
Southeast Metro—The SE Metro office reports showings have increased and are back to over 500 per week. Open house activity is strong and the luxury market is experiencing a definite increase in both broker viewings and buyer traffic. Inventory is decreasing and buyers are having a difficult time finding homes in desirable neighborhoods.
West Lakewood—We had multiple offers on almost everything below $250,000. Sellers who take the time to stage their homes are having amazing results.

My overall synopsis of the market this week is much like it has been over the last several. Low-end sales have been the strongest segment of the market, an indication that the first-time homebuyers tax credit is contributing to the rise. The clock, however, is ticking on this credit and it may have buyers stepping up their shopping to get their purchases in under the wire. Because it may take as long as two months to close on a home after signing a contract, first time home buyers must act fairly soon to take advantage of the credit. To qualify, they must close on the sale by November 30.

Until next week,
Make it a great one,

Chris Mygatt
Coldwell Banker Residential Brokerage Colorado

It Was a Week of Good News for Real Estate

2009-07-30T12:56:00.000-07:00

I have to say, it was a positive week for our industry. It seemed everywhere you looked, the media was reporting on some sort of positive indicator relating to the real estate market rebound. Last week I posed the question, is it a blip on the screen or are we finally out of the woods. It seems this week, the answer to the question is much clearer.

For starters, Good Morning America ran a very good interview on Tuesday about the state of the housing market. Liz Ann Sanders, the Chief Investment Strategist for Charles Schwab was interviewed. Essentially what she said was that we are in the process of bottoming out and “you have to go through less bad on your way to good.” As I’ve said in my weekly updates, we’re seeing pockets of significant strength and the housing market is really showing signs of recovery.

Our industry was the first to be hit by the market downturn and if all continues on this path, we will be the first out.

Now if I’ve said it once, I’ve said it a million times. The turnaround won’t be happening overnight. We probably won’t see housing numbers start to appreciate anytime soon. But what we can relish in is Sanders’ conservative viewpoint that “we have to see less bad for a while before we start to see some real positive gains.” What we have right now is the bottoming out of our market. Speculators and investors are competing with first time home buyers. Those individuals are going to continue to gobble up the inventory—both REOs and regular, now much more affordable starter homes. As we see this inventory deteriorate (again, over time), we will continue to see that trickle into our mid-level and upper-end price ranges.

Also interesting to note this week was the Standard & Poor’s/Case-Schiller 20-city index was released and in it, home prices in May posted their first monthly increase since the summer of 2006. Prices rose from April in 13 of the metro areas tracked, notably Cleveland, Dallas, Boston and the Bay Area.

The news followed reports showing sales of newly built and existing homes rose in June for the third consecutive month. New home construction, though still weak, is the best it’s been since the fall.

Although the index is rising nationally and locally, I would caution that this doesn’t necessarily apply to homes across the board. For the most part, the local gains are reflected more in the low-end side of the market, though we are showing signs of improvement in the mid and upper end.

The 20-city home price index rose 0.5 percent from April to a reading of 139.8, but it was still 17.1 percent below the reading of 168.6 in May a year ago. It was the fourth consecutive month that the index indicated prices have turned the corner and are heading back toward positive territory.

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

Boulder/Longmont—The Boulder County market showed a marked decrease in properties under contract, down by over 26%. At the same time, showings increased by 16%. Listings countywide remained steady again, not varying by more than three per week over the past month. Agents report more and more first time buyers determined to get bargains in the short sale and foreclosure markets. Many understand that there is fierce competition for the better properties and are willing to try multiple times until they are able to get a property under contract. Longmont reports the word "normal" has many definitions these days. Normal means that interest rates are holding for a while..Normal means that buyers want to buy. Normal means that 15% of all deals written will not close. Normal means that 30% of all deals written are for short sales whose acceptance can be as long as 2-4 months out. Normal means that the appraiser will not appraise that property for the contract price. Normal means the loan process is like negotiating a mine field with last minute conditions added to the buyer. The real estate industry is doing its part for the recovery of our economy handling all the NORMAL issues and getting buyers into homes quickly.
Evergreen/Conifer—Four listings went under contract during the past week. Showing activity continues to be strong with heavy activity in the $300,000 to $400,000 range. In addition, showing activity in the $1,000,000 plus category is experiencing an increase over prior months. Conifer reports we had one new listing during the week totaling $550,000. Two of our listings went under contract one of which was a single family home in Bailey on 40 acres with S. Platte river access. Two buyers put under contract for a townhome in Evergreen and a patio home in Denver . Showing activity decreased to thirty-five during the week.
Denver Central—No information reported.
Devonshire—We're hoping that the activity this past week is an indication of things to come as we continue through the summer. It seems that buyers are out there looking at homes, making buying decisions and getting settled in their new homes. Although appraisals are still an issue, transactions are getting done. Sellers are now getting off the fence, staging their homes and getting them on the market. We're seeing some movement in the upper end - a good sign. It is still all about the price on houses and we have seen many price adjustments in the market-many of those houses are getting both activity and offers. Once again, we are feeling positive and looking forward to a very busy August.
Douglas County—Our Southwest Metro office reports showing activity has increased since the 4th. We are hearing success stories from floor as well as open houses. Lead Router has been very good this past week. We are seeing increased activity in the homes priced below $400,000. There are still a lot of first time home buyers looking for "the deal.” The short sales seem to be taking as long as 90 or more days to close and some listings are seeking short sale approval. We are hearing from buyers that they are waiting for the new crop of foreclosures that are coming in August/September.
El Paso County—Colorado Springs reports sales activity has increased over the last week and the amount of new listings was steady which will help reduce the listing inventory that has built up in July. Not only are we expecting a number of bank owned properties to be released into the market within the next weeks, we also expect more short sales to be approved by the banks starting this fall.
Larimer County—Our Fort Collins/Loveland office reports our market looks flat, not down, not up, we are flat. One area of increase has been our listings taken. We had a huge week last week and brought twenty-eight new listings to the market. This was the largest bump we've seen in one week since early June. Interest rates are still low and homes priced below $350,000 are moving. Buyers at the lower price points are competing hard for short sale & bank owned properties. Some homes that were under contract via short sale are back on the market because it is taking longer and longer due to backups at the banks. Keep in mind that today's buyers are highly educated on the market & well priced homes sell quickly, usually for the most money the market will bear. This is why you are seeing so many competing offers on homes. Buyers know a good deal when they see it.
North Metro—No information reported.
Parker— Activity is slowing down slightly. We have to see if this is already the trend towards the end of the summer or if we will experience another surge towards the end of August. The REO Agents are waiting anxiously for the lift of the moratorium and the release of many bank owned listings.
Southeast Metro—The SE Metro office hosted a very successful Open House Blitz last weekend. We advertised 60 Open Houses in both the Denver Post and on several online sites. Traffic through the open houses was strong and we even put some deals together. The general consensus is that there are lots of buyers out there not only looking to purchase a home but who are not being represented by a Realtor. Our office is set to close 200 transactions this month & our listing inventory continues to decrease.
West Lakewood—Our Agents are busy listing and showing properties. Consumer confidence has most definitely increased. Our first time home buyers now have somewhat a sense of urgency to purchase and close to be eligible for the $8000 tax credit and to get under contract without multiple offers on any property that is somewhat acceptable.

This week I’ll leave you with a few interesting articles from the week:

http://www.bloomberg.com/apps/quote?ticker=SPCS20%3AIND
http://sbk.online.wsj.com/article/SB124878477560186517.html
http://www.usatoday.com/money/economy/housing/2009-07-28-home-prices_N.htm

Until next week,
Make it a great one,

Chris Mygatt
Coldwell Banker Residential Brokerage Colorado

Existing Home Sales Up For Third Straight Month...The Question of the Day: Have We Bottomed Out?

2009-07-23T13:59:00.000-07:00

Some are calling it the sign that we have hit bottom and are on our way back up. Others are calling it a blip on the screen. Whatever your take, NAR released Thursday its existing home sales report which showed three key, positive indicators regarding the housing sector:

For the third consecutive month, existing home sales rose
Inventory is easing
Home prices declined less sharply in June

The report noted, “Existing home sales…increased 3.6 percent to a seasonally adjusted annual rate of 4.89 million units in June from a downwardly revised pace of 4.72 million in May, but are 0.2 percent lower than the 4.9 million-unit level in June 2008.

The report also revealed, “Total housing inventory at the end of June fell 0.7 percent to 3.82 million existing homes available for sale, which represents a 9.4 month supply at the current sales pace, down from a 9.8 month supply in May. Raw inventory totals are 14.9 percent below a year ago.”

The Wall Street Journal reported Thursday a look at 28 major real estate markets and where they are headed. The results (http://online.wsj.com/public/resources/documents/retro-HAGERTY.html) were interesting for Denver:

A 19.6% decline in housing inventory (from a year ago)
We are currently at a 6.1 month supply
We’ve seen an 8.3% drop in price since the peak

Also interesting to note this week is the fact that Denver was named the No. 1 city where Americans are relocating, according to Forbes.com (http://www.forbes.com/2009/03/30/americans-moving-cities-lifestyle-real-estate-relocating.html?partner=email).

Among the highlights of the story:

Population increased by 2.17% in 2008; it increased 2.09% in 2007
Denver was the 10th fastest growing metro area in the United States
Denver is the most popular city in America; people like it for its skiing, culture and vibrant nightlife as well as its business opportunities
As of January 2009, the metro area’s unemployment rate was 6.5%; that’s high but still two percentage points below the national average of 8.5% for the same month

What all of this leads us to believe is despite some of the challenges we continue to face nationally and globally, the domestic housing market continues to demonstrate signs of recovery. The temporary first-time home buyer tax credit is clearly helping people make a decision and is contributing to the overall stimulus impact.

Are we out of the woods yet? It’s tough to say but the signs are encouraging and three months of continued increases in home sales are a positive sign that we may be on the road to recovery.

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

Boulder/Longmont—The Boulder County market showed an increase in properties under contract of about 15% last week, the first significant move in several weeks. New listings were exactly the same as the week before. Centralized showings reports a steady, upward trend in showings over the past month, averaging about a 10% increase each week. Agents continue to report frustration with short sales. Our Agents are all on the same page, but other brokerages have either different policies or no policies about how short sales should be accomplished. Longmont reports the Boulder County Fair is coming to town and the fairground is located in Longmont, so no excuses about attending! It is a community event and it brings people and revenue to Longmont. Showings were up 14% week over week. Sales and listings are holding steady. The lending process is still quirky at best. Patience is still needed by all for most every transaction. Clean, well priced homes are selling. Buyers with good credit and some money for a down payment are buying. Good Agents are keeping their deals together with some very trying times for all parties. We are still seeing homes under $250,000 moving quickly.
Evergreen/Conifer—We had two new listings during the week totaling $772,000. Three listings went under contract of which one was bank owned and we had six offers. Two buyers put under contract including one out-of-state buyer from Texas. Our showings increased to fifty one during the week.
Denver Central—The Denver real estate market continues to get positive national and local press. We continue to have substantial drops in housing inventory in the Denver area and we have seen an increase in the number of existing homes sold. This could indicate that the market has bottomed out and is very encouraging for the future of real estate in Denver. We have had an average 71 days on the market for listings that have gone under contract in July. The lower-end market has certainly shifted to a seller's market with properties moving quickly. Properties that are priced aggressively are seeing multiple offer situations. We had a couple of listings this past week below $200,000 that received 10 plus offers and went under contract for way above list price. Many properties in the lower end go under contract within days of being put on the market. The high end market continues to be tough and we are not seeing as much activity.
Devonshire—Happy Summer! It is truly a busy market here at Devonshire. Our homes are getting more showings and the homes that are going under contract are the ones that show picture perfect. We are encouraging sellers with "tired" plants to refresh them with new ones so that they have welcoming curb appeal. Buyers are seeing homes go under contract that they would have liked so there is more motivation to get moving. With the school year approaching, buyers & sellers want to get settled in their new homes soon. It is still an issue getting some houses appraised so correct pricing is essential. This type of market makes it especially important for the consumer to deal with experienced professionals in both the real estate and mortage sectors. We are looking forward to an even better August.
Douglas County—Showings were great this past week and very, very good this past weekend. We had two Agents convert floor calls to buyers. Our lead router Agents are receiving great activity and they are pleased. We are seeing sellers pricing their homes more aggressively in this market and as a result these listings are moving quickly. We are still seeing more activity in the $300,000 and below properties. Open houses were good this past weekend. Several Agents reported that they were able to obtain good leads. Our mortgage rep is busy and that is always a good sign.
El Paso County—We are anticipating the return of a number of troops to Fort Carson. Although we don't yet know the impact on the demand level yet, this certainly should boost sales later in the year. We are still receiving multiple offers on power priced listings in the lower price range (up to $150,000). About 66% of all listings are either short sales or foreclosures!
Larimer County—Our Fort Collins/Loveland office reports showings have been slowing the last week, but inventory is starting to build again. Several competing offer situations have been reported as well priced, clean and ready to move homes are selling. We are seeing movement at the lower price point as jumbo loan interest rates are still higher than conventional. This is likely the reason we are seeing home sales at the lower price bands moving as buyers can take advantage of the lower interest rates. CB Home Loan FHA rates are still the best in town.
North Metro—The average sales price is around $250,000. We continue to see multiple offers on lower priced homes. Inventory in the $200,000 and under market is shrinking and going under contract quickly. Homes listed for over $350,000 have shown a slight reduction in showings in the past few weeks. Our Agents continue to report great turn outs at their Open Houses.
Parker—After a short slowdown last week, activities have increased on all levels again. We still see a high number of buyers losing properties because of multiple offers as well as multiple offers on our power priced listings. Since the government is trying to implement a new loan structure on Fannie Mae and Freddie Mac loans, and holding back on releasing many bank owned properties into the market for now, we are anticipating a high number of new bank owned listings by the end of August or early September. Sellers are advised to put their homes on the market aggressively very soon in order to avoid competition with bank owned listings.
Southeast Metro—The SE Metro office is experiencing a steady increase in properties going under contract within the first couple of weeks on the market. We are averaging six showings during the 1st week on all new listings. This weekend, we are hosting an open house blitz with Agents holding over 60 houses open between Saturday and Sunday. All open houses are being advertised in the Denver Post and all Internet sites! Stay tuned for the exciting results of our Open House Blitz.
West Lakewood—No information reported.

This week I’ll end with a few words of wisdom to our clients:

Pricing and presentation is vital in today’s market. Buyers are paying attention to new inventory and current price reductions so if you want your home to remain competitive in today’s market, you need to consider this fact. I urge you not to test the waters when you place your home on the market. You will prevail if you price your home competitively from the beginning and present it in its best light possible. Listen to your Agent! Once you do this, great opportunities abound.

Until next week,

Chris Mygatt
Coldwell Banker Residential Brokerage Colorado

Louisville, Colorado Named CNNMoney.com’s Best Places to Live

2009-07-17T08:25:00.000-07:00

And Superior wasn’t too far behind…

Well not to brag, but we all know Colorado is an amazing place to live. Our sports. Our activities. Our beautiful scenery. Our thriving economy. Tourism. It’s rare that you find such a remarkable combination but once again, Colorado is making its place on the national map.

Earlier this week, CNNMoney.com released its top 100 list of best places to live and topping the list in the number one position was Louisville, Colorado. Check out this link: http://money.cnn.com/magazines/moneymag/bplive/2009/snapshots/PL0846355.html. The article reported, “It's also weathering the economic downturn well. Robust industries in the area, such as high tech, energy, and health care, make county unemployment among the lowest in the state.”

Superior, Colorado wasn’t too far behind in the number 13 position. Check out this link: http://money.cnn.com/magazines/moneymag/bplive/2009/snapshots/PL0875640.html.

Also interesting to note this week if a Realty Times article which provided some insight into a rebounding market. Here are the highlights:

Pending home sales rose sharply, by nearly 7 percent, in the last month measured by the National Association of Realtors.
Pending sales were up in all four major regions of the country—and that caught the attention of some key industry economists.
Orawin Velz, economic forecaster for the Mortgage Bankers Association, said in a commentary that "the steady improvements in pending home sales are encouraging," and confirm the view that existing home sales hit their cyclical bottom in January and are likely to continue to rise in the coming months.
Since the January low point, she noted, the Realtors' pending sale index is up by 13 percent.
Mortgage rates continue to be favorable, an average of 5.3 percent last week for 30 year fixed rate loans, 4. 8 percent for 15 year fixed, and those rates are pulling in growing numbers of home purchase loan applications.
According to the Mortgage Bankers Association's weekly survey, new applications to buy houses increased by nearly 7 percent in the week ending July 3rd.

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

Boulder/Longmont—Our Boulder office reports new listings took a jump of over 20% in the Boulder county market last week. Sales have been very steady for several weeks, seldom varying by more than 2% for the entire Boulder market. Agents continue to report that the ongoing problem of late and inaccurate appraisals continues to cause headaches. Showing activity on our office listings picked up by more than 10% last week. Longmont reports Colorado looks beautiful and green right now. Some neighborhoods are experiencing a seller’s market. Appraisers are having a hard time keeping up with the prices that are offered. Bidding situations are happening. The loan process is not for the faint of heart. Underwriters are asking for lots of supporting documentation and they are asking for it more than once. Patience is being tested at every turn. The benefit is that most buyers are getting some wonderful homes at great prices. Agents are working harder than ever for their buyers and sellers. Good Agents are keeping the deals together with some very trying times for all parties. We are still seeing homes under $250,000 move quickly.
Evergreen/Conifer—No information reported.
Denver Central—No information reported.
Devonshire— As we move into the heat of the summer, we also see the real estate market heating up and moving. There is still lots of activity in the price point below $400,000 with multiple offers more common than ever. While open houses seemed a little slow last weekend, buyer activity is still good. With July family vacations and people out of town, the open house slowdown was predictable. Finally, we are seeing the upper end market moving. Sellers are getting their homes on the market & we are seeing offers coming in on those houses. Price is crucial, as well as staging, in order to get top dollar in this market.
Douglas County—Our Southwest Metro office reported showings were up but not as good as the weekend before the 4th. We are seeing more listings and many more buyer contracts. Open houses were good this past week. We had several Agents who had picked up potential listings and buyers from their open houses. We had great floor last week. We are seeing activity in the homes priced below $300,000. We had over five listings that went under contract within 2-3 days.
El Paso County—No information reported.
Larimer County—Our Fort Collins/Loveland office reports showings and under contracts are strong. Well priced inventory is moving very quickly and even the condo market is picking up steadily. We are still seeing issues with appraisals and underwriting is taking a significant amount of time to review buyer's credit history and clear loan conditions. The Northern Colorado real estate market is relatively strong in comparison to much of the state. Larimer County in particular is fairing better than surrounding counties. It is still a great time to buy & I really don't think we will be in the doom and gloom for much longer. We're already seeing signs of life in the Northern Colorado market and it is only a matter of time until those buyers sitting on the fence will be kicking themselves for not making a move in what was a declining market.
North Metro—No information reported.
Parker—We have seen a positive trend this week as our listings continue to increase. Our showings and sales were down this week due in part to the beautiful weather we have been enjoying. We are increasing our market share & our agents are picking up many new buyers. With the interest rates low and inventory increasing, we expect to see our sales increase throughout the remainder of July.
Southeast Metro—No information reported.
West Lakewood—Short sales are becoming more streamlined and we continue to have multiple offer situations on bank owned properties. We are hearing back from banks more expeditiously. It seems that sellers are listening to their Agents. They are becoming more realistic and are often adjusting their listing price.

Regardless of the market or the reason behind the recent upswing, things are starting to pick up throughout Colorado. It seems buyers are finally starting to get the message that we may have hit bottom and, as buyers take action, we’re slowly but surely working our way into a transitioning market.

It’s been a challenging ride but what we have to look forward to is exciting. Prepare. The coming months and into 2010 are going to be an exciting ride.

Make it a great week,

Chris Mygatt
Coldwell Banker Residential Brokerage Colorado

Realtor.com Survey Tells A Lot About Today’s Housing Market

2009-07-09T13:01:00.000-07:00

Earlier this week, Realtor.com released a survey discussing what is motivating buyers in today’s market. It was an interesting read and I thought I’d share the highlights:

“Price declines and low interest rates are motivating millions of home buyers to shop for bargains in the most affordable housing market in 28 years, yet at the same time only one in ten of today’s home owners say they have delayed selling their home due to those same market conditions.”
“Affordability is clearly driving more than two thirds (65.2%) of potential buyers back into today’s housing market. Nearly one of five prospective buyers (19.6%) say foreclosure bargains in their communities would motivate them to purchase a home, the most important reason they’re interested in buying in the near future.”
“An additional 15.5 percent said they’re motivated to buy soon because they think prices are as low as they will go and another 15.5 percent said they were motivated to buy before interest rates rise. For 14.6 percent of first time home buyers, the Federal $8,000 tax credit is the impetus to purchase a new home in the future.”
“The survey also found most Americans are not aware of how affordable homes are becoming in today's fast-changing housing market. More than three-quarters (76.4%) of consumers think a median income family can afford only 50 percent or fewer of the homes for sale in their area. However, in reality, a family earning the national median income of $53,182 can afford nearly 75 percent of the current homes for sale on Realtor.com.”
“In the past year, the Housing Affordability Index maintained by the National Association of Realtors has increased 29 percent overall and 19 percent for first-time homebuyers, and is higher now than at any time in the 28 year history of the index.”

"Value is clearly motivating potential home buyers, and today's new level of affordability is still an under-appreciated reality that needs to be explored," said REALTOR.com President, Errol Samuelson. "The variety and quality of homes currently within reach of the average American family is much greater than most people realize. Making credit available to responsible borrowers and building consumer confidence in the economy are now key factors in restoring vitality to the nation's housing market."

In other interesting news this week, for the second consecutive month, Denver fared the best among 20 U.S. cities reporting drops in home prices, according to Standard & Poor’s/Case home-price index for 20 major cities dropped 18.1 percent in April compared with April 2008.

Denver reported a 4.9 percent decline, better than Dallas and Boston, which were down 5 percent and 7.7 percent, respectively.

"This was the least painful decline in the last six or seven months," said economist Jeff Thredgold of Vectra Bank Colorado. "There is still some additional weakness to come, but most of the pain is behind us."

Also interesting to note, as the Denver Business Journal reported, “Home prices in Denver increased for the second consecutive month and show the lowest year-over-year decline of the 20 cities included in the closely watched S&P/Case-Schiller index.”

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

Boulder/Longmont—Our Boulder office reports sold activity in the Boulder area market has been very steady over the last few weeks despite the holiday weekend. New listings fell by about 15% week over week, but still remain fairly high. Agents report that the ongoing problem of late and inaccurate appraisals continues to be a problem and buyers and sellers are both wanting to negotiate price and terms more than ever. Buyers want huge price reductions, yet sellers point to the continued strength in many sectors of the Boulder County market. As a result, 4-5 offers and counteroffers are more common than ever. The Longmont office reports seasonality hit our market this last week. Showings were down, but the good news is that homes put under contract were down very slightly. New inventory (listings) are coming on the market very slowly. Short sales and foreclosure homes do dominate the end of our market. Many buyers are waiting for "bank approval" on homes they hope to buy. The process of purchasing a short sale is not user friendly. Be prepared to wait and wait and then hurry up to close. Showings on homes priced from $400,000 to $650,000 are slowly picking up. Now is the time if you want to be situated before school starts in the fall.
Evergreen/Conifer—We had two listings go under contract the past week including one short sale which had been under several times but failed due to delays in the bank approval-short sale approval finally obtained. We had a total of 62 showings on that property since original list date. There was a total of six buyers put under contract during the week including a 1st time home buyer in Denver, single family in Lakewood after only three days on market and a single family in Elizabeth after two years on the market. One client was the successful buyer among five potential purchasers of bank-owned property in Evergreen. During June, we had a total of 390 showings of our listings, approaching levels we typically experience during the summer season. Our Conifer office reports one new listing during the week at $5,250,000. Total of nine listings in June totaling $3,500,000. Two listings went under contract including one bank owned that went under contract after the first showing. Two buyers put under contract including one second home buyer, a cash deal that closed in four days. There was a slight decrease in showings during the week due to the holiday. Showings during June totaled 160 with the majority of activity in the $300,000 to $400,000 range.
Denver Central— The Denver real estate market continues to get positive national and local press. Recently Forbes magazine ranked Denver as the best city to buy real estate in America. The Denver Post ran an article on July 1 that Denver is fairing the best nationally out of 20 major cities based on the most recent Standard & Poor's Case-Shiller report. You can view the article at http://www.denverpost.com/business. Housing inventory continues to drop in the Denver area for the fourth consecutive month. We have seen an increase in the number of existing homes sold. This could indicate that the market has bottomed out and it is very encouraging for the future of real estate in Denver. Our office listings averaged 71 days on the market for the month of June. The lower-end market has certainly shifted to a seller's market with properties moving quickly. Properties that are priced aggressively are seeing multiple offer situations.
Devonshire—No information reported.
Douglas County—Our Southwest Metro office reported showings have really increased this past week. Our open houses were very successful. Several Agents picked up buyers and three potential listings. We had two Agents who converted their floor calls and wrote offers for them. We are seeing listings that are priced right receiving offers after only 1-3 days on the market. Agents are also reporting that there is an increased interest in the $8,000 credit. We are seeing properties over $400,000 not seeing as much activity as those below this price range. Our mortgage rep continues approving buyers which is a good sign. Agents are feeling that the market is starting to turn little by little. Showings were not as great as they have been over the weekend due to the 4th. We did see a good increase in listings & in buyer contracts. We had one home that sold in one day in Highlands Ranch and good traffic in our open houses that were held open during the week as opposed to the weekend. We are seeing multiple offers on our listings and many of our buyers are seeing themselves in multiple offer situations. The market mood seems very good right now and our Agents are very busy. We still are seeing homes above $400,000 on the market longer than the ones priced below.
El Paso County—No information reported.
Larimer County—Our Fort Collins/Loveland office reports the market has been relatively steady but we have seen a slight bump in sales this last week. However, this figures to be a seasonal "bump" but the inventory turnover is a positive sign for our market. Our under contracts for a single week were the highest they have been this year and our inventory coming onto the market is steady. Showings for June were the highest they have been for any single month of the year so far, again this may be seasonal but hopefully home sellers will see rewards in the coming months. The market is flat, but that's better than down!
North Metro—No information reported.
Parker—No information reported.
Southeast Metro—There has been a huge surge in buyer activity! In June we placed 170 properties under contract. Activity continues to hold at open houses & we are seeing multiple offers in all price ranges below $350,000. As in every area in the city, sellers are challenged by the appraised value of their homes. Luxury homes are seeing a slight increase in traffic.
West Lakewood— Properties priced $250,000 or below are flying off the shelf! Buyers who want to take advantage of the $8000 tax credit should be actively working to purchase now rather than in the fall when it will be even more difficult to find available properties.

I hope you all had a wonderful 4th of July. The summer selling months are abuzz with activity and this certainly is an exciting time to be in real estate. But, isn’t it always?

Until next week,
Make it a great one,

Chris Mygatt
Coldwell Banker Residential Brokerage Colorado

Denver Named One of the Best Places to Buy a Home…Now!

2009-06-25T16:18:00.000-07:00

Forbes Magazine released this week its “In Depth: Best Cities to Buy a Home” feature in which the magazine highlights cities with the best real estate deals. Click here to access the article: http://www.forbes.com/2009/06/22/cities-deals-home-lifestyle-real-estate-home-buying.html. Among other large cities, Denver was listed with the magazine noting that “While the majority of the nation’s housing markets are still working toward a bottom, some cities are boasting fundamentals that make them good places to buy a home now.” In addition to Denver, Los Angeles, Boston, Phoenix and San Diego were listed.

To determine which cities feature the best real estate deals, the magazine “looked at three sets of data in the March 2009 RPX Monthly Housing Market Report, distributed by Radar Logic Incorporated, a New York-based derivatives firm. It looks at the market fundamentals in the country’s 25 most populated metropolitan statistical areas (MSAs or metros), geographic entities defined by the U.S. Office of Management and Budget used by federal agencies in collecting, tabulating and publishing federal statistics. First, we examined the number of ZIP codes with 25% of the area's sales to determine those in which activity is most evenly distributed. Next, we examined increase and decrease in price per square footage to determine where market value is the highest. Last, we looked at transaction rates in each city to determine where the housing markets are most active. We scored each city by category, and then combined the scores to determine the final ranking.”

Here’s what the article reported:

“1. Denver, Colo.
PPSF Increase or Decrease
March 2009 vs. Feb. 2009: 5.7%
Transaction Increase or Decrease
March 2009 vs. March 2008: -8.4%
Percentage of ZIP Codes with 25% of Sales: 25%”

Also this week, the National Association of Realtors released its existing home sales report which noted that existing home sales rose for the second straight month in May, signaling low prices and incentives are attracting buyers.

NAR says existing home sales, including single family homes, condos and coops rose 2.4 percent in May. It was the first back-to-back monthly gain in existing home sales since September 2005.

Sales of existing homes rose for the second straight month in May, signaling low prices and incentives are attracting buyers.
NAR chief economist Lawrence Yun had this to say, “Historically low mortgage rates clearly drew buyers into the market, and housing remains very affordable even with a recent uptick in rates. First time buyers are also being drawn off the sidelines by the $8,000 tax credit which is helping to absorb inventory.”

The numbers could be even better if it weren’t for poor appraisals. While pending sales of existing homes—those with signed contracts but not closed—indicate stronger activity, some contracts are falling through from faulty valuations that keep buyers from getting a loan, said Yun.

Locally we made some great headlines this week, especially with the Denver Business Journal’s story headlined “Home prices in mountain states up 1.3% outpacing nation.”

The article reported, “Housing prices in Colorado and other mountain states rose 1.3 percent in April from the previous month, the biggest increase of any region of the nation, the Federal Housing Finance Agency reported Tuesday.”

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

Boulder/Longmont—The Boulder/Broomfield county markets continue to show a drop in new listings, with numbers down about 20% from the week before. Sales, however have shown a slight increase this week, about 2%. A quick check of price reductions in the area show 572 so far this month in Broomfield and Boulder counties! Expired listings only totaled 47 and that includes the last day of May. Great new stats for our side: If you sold a house under $750,000 with CBRB in Boulder county this year compared to the rest of the MLS, you averaged 13 fewer days before contract and $7989 more in your pocket! Our Longmont office reports buyers seem to be confused these days. Some are waiting for interest rates to drop and some are waiting for prices to drop. News that the housing market is local seems to be getting out but it might be adding to the overall confusion in the market. First time buyers are the main thrust of our sales. We have had some higher priced homes sell but homes under $250,000 are still selling fast. Now is a great time to get into the investor market. Investors are not looking to "flip" the homes but are looking for the longer term. The rental market is strong in Longmont. Summer weather has finally arrived, making it pleasant to show homes in the evenings.
Evergreen/Conifer—Our Evergreen office reported we had a total of five new listings for the week. Seven listings went under contract and one buyer went under contract. There was one multiple offer situation for a $208,000 SFH in Wheat Ridge. One listing went under contract in five days after only two showings, a $425,000 SFH in Evergreen. We had a total of 81 showings during the week which is close to normal level for peak season. The majority of activity occurred in three different price points, $200,000 to $250,000 (mostly first time buyers and investors), $300,000 to $350,000 and some recent strong activity in the $500,000 to $750,000 range. Our Conifer office reports we had four listings go under contract during the week, one of which was a bank REO. One buyer went under contract during the week. There were a total of 42 showings for the week and activity continues to improve.
Denver Central—Housing inventory continues to drop in the Denver area and for the fourth consecutive month homes sold in the metro area went for less than $200,000 and 28% were in the $200,000 to $300,000 range with those under $200,00 selling very quickly.
Devonshire—Showings have been very consistent this week. There is a definite feeling of increased activity and lots of contracts being written and accepted. Appraisal issues are still rampant, with multiple appraisals being asked for at the last minute before closing. We are advising Agents to write contracts with 45 day closings where possible to allow for a smooth transaction. Buyers are excited to get into their new homes and open houses are busy in many areas. Activity may slow down a bit with the 4th of July upon us.
Douglas County—Our Southwest Metro office reports we had another week of great showings. Father's Day was our only slow day. We had six properties with multiple contracts and our Agents are finding they are competing with multiple offers on properties they are writing on for their buyers. Open houses were slow this past weekend however floor was very good. Two Agents picked up buyers from their floor calls. We are still seeing very good activity on homes priced under $350,000. We have lots of buyers wanting to take advantage of the $8000.00 tax credit and I believe that the interest rates going up has also helped get buyers off the fence.
El Paso County—No information reported.
Larimer County—Our Fort Collins/Loveland office reports things are looking good in the Northern Colorado real estate market. We are seeing homes moving pretty quickly that are priced at market and multiple offers on short sale and bank owned properties that are priced 5-10% below market. Summer began on Sunday and inventory has increased this week as the summer selling season starts to collect steam. First time home buyers are still the primary home shoppers in the market and are gobbling up the lower priced inventory in search of the American dream. Appraisals are still an issue as Agents, lenders and appraisers learn to work together within the confines of the HVCC. It is still an amazing time to buy and interest rates are still near the lowest they've been in the last 50 years.
North Metro—Activity abounds in the North Metro area. We have put 53 homes on the market this month so far. Average days on market is less than 60 when the property is well priced. The average sales price is around $273,000. The upper end market (million plus) continues to show slow movement unless the home is located in a new build subdivision. Numerous floor calls are coming into the office on our listings and appointments from these calls are increasing. We're beginning to experience buyer calls on floor looking for homes in the $600,000+ range. Relocation buyers are also abundant & increasing in our area. We continue to see a lot of short sale situations.
Parker—After two very busy weeks, activity has slowed down slightly. The listing inventory specifically in the lower to mid price range keeps decreasing steadily which indicates that the trend for declining values could reverse soon. The upper end market (above $600,000) is still very slow and it will take a while to recover. Agents are very busy staying in touch and keeping clients informed about current market conditions while their business is up year over year!
Southeast Metro—Traffic continues to increase at our listings. Multiple offer situations are almost a guaranteed with properties priced below $250,000. Luxury properties are also seeing increased traffic and we currently have nine luxury homes under contract. Our success story of the week: One of our Agents had a listing for three years that went under contract and closed in June!
West Lakewood—Numerous sales are having appraisal problems. Closed short sales and bank owned properties are affecting the appraised prices. We are seeing increased activity in the above $400,000 price range.

One potential challenge that may begin affecting our market is the rise in interest rates. I came across this CNNMoney.com article which explains why interest rates are on the rise: http://money.cnn.com/2009/06/19/news/economy/higher_inflation.fortune/index.htm. At this point, what we are seeing is the recent uptick is causing many fence sitting buyers to get off the fence and get in the market and in all likelihood that is a very good idea. We probably won’t see interest rates as low as they have been for at least another 20-30 years.

I also recently sat down with our friends at Coldwell Banker Mortgage to discuss interest rates, the future and what we can expect and based on that conversation, I will be focusing my July edition of Reality Check on this very subject.

Watch for it after the 4th of July holiday.

Until then, make it a great week.

Chris Mygatt
Coldwell Banker Residential Brokerage Colorado

Reinvigorating the Housing Market…And Loveland Is One of the Nation’s Best Places to Live!

2009-06-11T14:02:00.000-07:00

This week there were some exciting change of events going on with the government. Realogy (Coldwell Banker Residential Brokerage’s parent company) President Richard Smith met with legislators regarding a positive development for the real estate industry. Specifically, the Business Roundtable (an association of chief executive officers of leading U.S. corporations)— of which Richard is the chair—issued a set of recommendations for the White House and Congress that are aimed at jump starting the housing market in order to stimulate a broader economic recovery.

The Business Roundtable’s recommendations are as follows:

· Keep mortgage interest rates at historically low levels (below 5 percent) for at least one year;
· Expand the current First-Time Homebuyer Tax Credit incentive from the lesser of 10 percent of the purchase price of the home or $8,000 to a higher limit of either 10 percent or $15,000 for all homebuyers, remove the income restrictions and include all primary residence purchases for one full year;
· Conduct a thorough review of current foreclosure mitigation and loan-modification programs in light of rising loan-modification re-default rates;
· Make permanent the current temporary conforming loan limits; and
· Continue to review and strengthen government efforts already underway to review and refine mortgage lending practices.

We believe targeted, demand-side solutions—such as the ones Business Roundtable is recommending—will provide a critical next step for a housing recovery that will help create jobs and boost the economy as a whole. To obtain a copy of the Business Roundtable press release and its Housing Working Group’s detailed recommendations, click here. To read an article that appeared in today’s online edition of The Wall Street Journal containing an interview about the Business Roundtable’s recommendations and why they are crucial to jumpstarting the housing market, click here.

Please understand that the legislative process is often a long and winding road that is hard to predict, but at some point in the future, we expect to call on you to make your voices heard in support of any new legislation in Congress that would advance these recommendations. We will communicate with you as these legislative opportunities occur—but for now, just know that we appreciate your support and are proud to be part of this initiative.

In other news this week, RealtyTrac released its foreclosure findings with positive news that foreclosure filings dipped 6% in May compared with April. But the news wasn’t all positive as the number is still 18% above this time last year. Essentially one in ever 398 homes receive a foreclosure filing last month.

Here in Colorado, the picture is a bit brighter than the nation as a whole. We are ranked No. 8 out of 50 states in foreclosure filings with 4,876 total filings or one in ever 436 households. Our numbers, however, are on the decline with a decline from April 2009 to May 2009 earning an 11.3% drop and from May 2008 t o May 2009 earning a 15% decline. For a complete look at the USA Today story that ran on the figures, click here: http://www.usatoday.com/money/economy/housing/2009-06-10-may-home-foreclosures_N.htm#chart.

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

Boulder/Longmont—Our Boulder office reports after pausing to take a break during the last week of May, both sales and listings jumped by over 20% in the Boulder County market last week. This was fueled by tremendous activity in the under $225,000 price range. Numerous Agents reported having to write several offers for first time buyers because of multiple offer situations. Getting appraisals done on time still remains a problem. Inventory on lower priced homes continues to shrink dramatically even with the uptick in listings overall. The Longmont office reported showings increased 13% week over week. It was a steady increase with showings up each day of the week. Part of the buyer pool is made up of financially prudent individuals who did not over extend themselves during the "give-away" period. They are now seeing the selling of existing home and the purchase of the new home as one transaction. They are seeing that the percentage of loss is outweighed by the percentage of gain with the new purchase. Appraisals are a big hurdle in any transaction right now. The are coming in very conservative.
Evergreen/Conifer—Our Evergreen office reports we had a total of six new listings for the week. Only one listing went under contract. Also, one buyer went under contract on new construction along the Hwy. 285 corridor. Property listed @ $799,000. Sales activity has slowed, which may be the normal seasonal slowdown from mid-May to mid-June. We had a total of 88 showings during the week; close to normal levels for peak season. The majority of activity in two different price points, $200,00 to $250,000 for first time buyers, investors and the $500,000 to $700,000 range. We had four new listings during the week totaling $1,200,000. Four listings went under contract including one short sale and one buyer went under contract. We had 33 showings for the week. The majority of the showings were in the $300,000 to $400,000 range, with good activity in the $400,000 to $500,000 range.
Denver Central—For the fourth consecutive month we have seen an increase in the number of existing homes sold. In the month of May 42% of the homes sold went for less than $200,000 and 28% were in the $200,000 to $300,000 range. Inventory continues to drop and we had 20,734 unsold homes in the month of May 09 which is a drop of 21.3% compared to May 2008. First time home buyers are taking advantage of the $8,000 tax credit.
Devonshire—Although the weather has not been the best, market activity is great. Showings are up and activity at some open houses indicates that buyers are out there! We had some visitors at open houses talking about the fact that they are looking at houses to decide if it is the right time to get their own homes on the market. We are seeing houses that are priced competitively going under contract quickly. Lenders are bogged down right now so it is taking a little longer to get to the closing table. Appraisals are slow to come in as the work load for appraisers is heavy. We are optimistic that we'll have a strong summer selling season.
Douglas County—Our Southwest Metro office reported showings have really increased this past week. Our open houses were very successful. Several Agents picked up buyers and three potential listings. We had two Agents who converted their floor calls and wrote offers for them. We are seeing listings that are priced right receiving offers after only 1-3 days on the market. Agents are also reporting that there is an increased interest in the $8,000 credit. We are seeing properties over $400,000 not seeing as much activity as those below this price range. Our mortgage rep continues approving buyers which is a good sign. Agents are feeling that the market is starting to turn little by little.
El Paso County—Colorado Springs reports our listings have slowed considerably but sales remain steady. The under $250,000 remains the hot market for buyers with an average time on market of less than 30 days. High end properties slowed the past month as did showings in the high end. Employment reports uneasy as several shopping centers have reported worst sales quarter ever. Agents have slowed their jumping around from office to office and board number of active agents continues to drop.
Larimer County—Our Fort Collins/Loveland office reports showing activity is going through the roof! We had nearly 90 more showings this week than the prior week. Our listings going under contract nearly doubled from the previous week. Many sellers who have found themselves over priced have dramatically reduced their prices to reflect market value and this has begun drawing more buyers into the market. Interest rates are climbing and are above 5% and are approaching 5.5% very quickly. Most lenders think that we will hit 6% by the end of the summer. If you are looking to take advantage of the low, low rate you had better do it soon. I think the days of the low 5s and high 4s for interest rates are behind us. Plus, check out my reference below regarding Loveland!
North Metro—No information reported.
Parker—For the third month in a row, we see a trend that after it being very busy last week, the first week of the month slows down a little. However, after that, activity picks up right away and our sales and showings have increased by high numbers. Just like last week, we are seeing multiple offers and a bidding process on power priced listings in all price ranges.
Southeast Metro—No information reported.
West Lakewood—Our Agents are very busy listing and selling property. There are very few bank owned listings entering our inventory. Short sale listings are still quite predominate. It's obvious that consumers are gaining confidence.

Finally, I’d like to leave you with this great news. Loveland, CO was this week named one of the United States best places to live in 2009, based on U.S. News’ look at areas with strong economies, low living costs and plenty of fun things to do.

Here’s what the article had to say about Loveland:

Located just outside the breathtaking Rocky Mountain National Park, Loveland, Colo., is considered the "Gateway to the Rockies." But while it has 27 public parks and nearly 16 miles of recreation trails, it's Loveland's affection for man-made beauty that sets this community of 56,000 residents apart.

Thanks to its Art in Public Places program, more than 300 pieces of sculpture and two-dimensional works are on display throughout the community. And with a 2008 median home sale price of $186,000, the area's real estate market is relatively affordable.

Loveland has also achieved acclaim for its Valentine remailing program, in which 200,000 cards are sent to the city to receive a special cachet stamp. "We've got a waiting list of over 50 people that are waiting to be stampers," says Kathryn Roth of the Loveland Chamber of Commerce.

It’s just a great reminder of why we call this special place home.

I did want to let you all know that I will take a brief hiatus from Weekly Market Watch next week but will return the following week with another robust edition.

Until next week,
Make it a great one,

Chris Mygatt
Coldwell Banker Residential Brokerage Colorado

Showing Activity In the Entry Level and Mid-Level Markets Continues to Rise…For the Entry Level Buyer, Are Bidding Wars Back?

2009-06-04T13:56:00.000-07:00

Now that school is almost out, we’re finding many families are starting to look at homes in anticipation of getting settled prior to next school year. Showing activity, in many markets, has increased considerably.

Sellers are now getting their homes on the market and, in general, seem to be quite knowledgeable regarding staging and pricing. The homes in the entry-level market, for the most part, are moving well if they are in good condition and fairly and competitively priced. Several Agents whose clients’ listings are in the entry level market are reporting that they have had buyers lose out on homes in bidding wars. Could they be back? The competition for well priced homes in good condition is heating up and we are seeing multiple offer situations in most of our first time home buyer markets.

Though we have seen sporadic increases in the upper end market, it is still relatively slow on showings and closings but we do anticipate that that sector will loosen somewhat if the economic news continues to show some stabilization and an upswing.

Before I get into the week’s top news, what I would like to share is that LORE Magazine and The Wall Street Journal this week released their Top 400 list. You may view it online at http://online.wsj.com/ad/top400-articlecontinued.html. Many of our own Coldwell Banker Residential Brokerage colleagues we’re recognized within this coveted ranking and for that—along with all of their hard work and dedication—I salute them.

The most notable news this week was The Mortgage Bankers Association’s (MBA) release of is Weekly Mortgage Applications Survey for the week ending May 29, 2009. The Market Composite Index, a measure of mortgage loan application volume, was 658.7, a decrease of 16.2 percent on a seasonally adjusted basis from 786.0 one week earlier but was 14.4% higher than the same week a year ago. This increase is due, largely in part to the first time home buyer market which, as we know, has been vastly stimulated by a triple threat combination of low interest rates, the $8,000 first time home buyer tax credit and increased affordability. Together these incentives are finally getting buyers in the first time home buyer market off the fence and into the market which—once we get through the large number of REOs on the market—we should finally start to see some price stabilization.

But for those of you who are waiting for your homes to come back to their pre-recession values, be prepared to wait. A recent study that I read notes that real estate is now as affordable as its has been in the past 38 years (this of course relates to median homes when compared to median mortgage rates and incomes).

The fact is, the peak of unaffordability was in 2006, when an average family in the United States needed to spend 44% of their income to purchase an average single family home. Today, housing affordability in the United States is up to 73%. This means 73% of all new and existing homes sold in the first quarter of 2009 were affordable to families earning the national median income of $64,000.

A couple of other interesting articles of note this week:

- RISMedia’s First Time Home Buyers Grabbing Houses and Tax Credit (http://rismedia.com/2009-06-03/first-time-home-buyers-grabbing-houses-and-tax-credit/)
- Realty Times Multifamily Builder Confidence Up From Record Lows; Interest From Prospective Renters and Buyers Rises (http://realtytimes.com/rtpages/20090603_confidenceup.htm)
- Realtor.org Pending Home Sales Up For Three Months in a Row (http://www.realtor.org/press_room/news_releases/2009/06/phs_up)

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

Boulder/Longmont—Our Boulder office reports Boulder county has been pretty steady for the last two weeks, despite a slight slowdown over the Memorial Day weekend. The large jump in both sales and listings that started the second week in May has continued. Agents continue to report tremendous activity in the first time buyer market with multiple offers on properties under $200,000 being very common, especially short sales. We're seeing more and more lender problems-deadlines missed, late and inaccurate appraisals and poor communications, so we are urging Agents to leave more time for closings. One agent reported a new listing (with future purchase) solely because he got a Facebook page! Our Longmont office reports we had a nice rebound on our showing activity for the last week. The number of homes under contract is holding steady. We have all heard the great news about the Denver area being one of the first areas to rebound. This news will help with confidence in our market. First time buyers are helping to make the rebound possible and Longmont has a good inventory for those buyers.
Evergreen/Conifer—Our Evergreen office reports we had two new listings during the week for a total of 17 for the month, totaling $7,500,000. Four listings went under contract including one for $2,200,000 in Evergreen. There were a total of 19 homes under contract for the month. Showing activity showed some improvement following the holiday weekend. There were sixty-four showings for a total of 324 for the month. We continue to experience an excessive number of contracts that fall due to a combination of factors including lender and appraisal issues and inspection problems. Our Conifer office reports we had one new listing during the week for a total of eight for the month totaling $1,200,000. Three listings went under contract including one bank owned. A total of eleven homes under contract for the month. Showing activity showed some improvement following the holiday weekend; 33 showinngs for the week for a total of 226 for the month.
Denver Central—Inventory continues to drop in the Denver area. We have several neighborhoods that continue to see some appreciation in home values. The Denver area is recovering a lot faster than other parts of the country this past week. The Today show talked about Denver being the #1 city for real estate recovery in the country.
Devonshire—The summer season has definitely arrive at Devonshire. The children are about to be out of school and parents are looking at homes in anticipation of getting settled prior to next school year. Showing activity has increased considerably. Sellers are now getting their homes on the market & are quite knowledgeable regarding staging and pricing. The homes below the $400,000 price point are moving well if they are in good condition & fairly priced. We are still seeing the upper end of the market is still slow on showings and closings but anticipate that that sector will loosen somewhat if the economic news continues to show some stabilization/upswing. Really great activity at open houses and with the warm weather we anticipate a very busy weekend.
Douglas County—Our Southwest Metro office reported our showings have picked up this past week. We had three listings that sold in 1 to 2 days of hitting the market. We had six properties with multiple offers. Our mortgage rep approved 10 buyers in one day. The feeling is that the buyers are now ready to buy and ready to write offers. Open houses were great last week and we had several Agents pick up buyers from their open houses. We're very excited to see that the activity is moving in the right direction. Our listing inventory is also starting to increase as sellers are ready to sell and I believe they are starting to feel good about our market.
El Paso County—Colorado Springs reports the buyer market remains busy and inventory is not being replaced as fast a sales are going. The under $250,000 range remains very hot. Rumor is that Hewlett/Packard may be returning to the area. Appraisals are coming in very low and not flexible on comps. Several small lenders have closed & several local banks have cut back on available programs.
Larimer County—Our Fort Collins/Loveland office reports homes are moving, and moving quickly at the lower price points. Several Agents have had buyers lose out on homes in bidding wars. The competition for well priced homes in good condition is heating up and we are seeing multiple offer situations. Most of this activity is in the $300,000 and under price point. A recent report for the SE part of Fort Collins revealed there are currently 14 homes on the market between $249,000 and $275,000 and of those homes, eleven of them are under contract. Inventory is stabilizing after the May boom but with graduations and primary schools getting out we expect to see a slight bump in the next two weeks.
North Metro—The average price range of our new listings continues to be around $250,000. There was an increase in the number of homes under contract in the past week. Our Previews market is moving slowly. Our office continues to lead the market in number of listings and sales in Westminster, Broomfield and Commerce City. Many Agents from this office are preparing for their Neighborhood Garage Sales. They will be holding these sales in at least ten communities around the Westminster/Broomfield area.
Parker—We had a very active last week of the month. We continue our trend of fast moving listings that are priced aggressively in the lower to mid market. The high end market is still down almost 50% and it will take some time to recover. Some of the neighborhoods are already stable in value and more should soon follow. The time may be running out soon to get those special deals.
Southeast Metro—It's not a buyer's market in desirable neighborhoods! The competition for homes in good condition in several desirable neighborhoods is fierce! One of our brokers wrote 25 offers for different clients in one week and was involved in multiple offer situations with every property. Open house activity is off the charts! One of our listings had 27 visitors last Saturday and fifteen visitors in one hour on Sunday.
West Lakewood—Sellers know that even though they feel they sold their homes at fair market value, the appraisal may come in below contract price. At this point buyers and sellers are back in a negotiating position. The market under $250,000 is very, very active. The number of properties under contract is steadily increasing.

I’d like to leave you with this. It is an excerpt of an article I found online that I think really should get us all thinking. As I visit our offices, what I hear from most is that things are changing and I think many of us agree—at least as far as the housing market is concerned—it seems we are on the path to recovery. Having said that, there are some buyers and sellers out there who continue to wait. For those of you (and you know who you are), please read on:

“…If you're a buyer, buy because you love what you're buying. Buy because the lifestyle you're looking to live can more easily be accomplished with the purchase than without. If you're selling, sell because you want to sell. Sell because you need to sell. Sell because your neighbor is driving you crazy. Sell because the house you've always had your eye on just hit the market. Sell to move up in the market. Sell to downsize. Sell to liquidate, but if you really want to sell, just sell already. If you're waiting to sell until markets rebound, please realize that doesn't mean to list in October. That means you'll be listing several years down the road, and the reason you were planning on selling in the first place might not exist at that magical time in the future. None of us are promised today, let alone tomorrow. Let alone 6 years from now when you can possibly sell your home for 15% more money.

If you're in no hurry to sell, do your neighbors a favor and take your home off the open market. If you're wanting to sell, be realistic in your asking price and aggressive in your hunt for a buyer. If you're a buyer, John Burns seems to be telling you that it's a pretty good time to buy. I'm telling you it's a good time to buy, and my reasons are not the same as Mr. Burns'. Buy because you want to. Buy because you can. Buy because you know the purchase will make you look like a real estate savant 15 years from now. Welcome to 2009 and the new rules of real estate. Sell low, hopefully buy lower.”

And with that, I’ll bid you adieux.

Until next week,
Make it a great one,

Chris Mygatt
Coldwell Banker Residential Brokerage Colorado

Memorial Day is Over…Soon-to-be-Summer Selling Season Off to a Good Start

2009-05-28T17:14:00.000-07:00

With Memorial Day behind us and the busy summer selling season about to begin, some interesting trends are landing in our laps.

First, NAR this week announced that existing home sales rose in April with strong buyer activity, in, as expected, the lower price ranges. Nationally, existing home sales increased 2.9% to a seasonally adjusted annual rate of 4.68 million units in April from a downwardly revised pace of 4.55 million units in March, but were 3.5 percent below that 4.85 million-unit level in April 2008.

Most of the sales are taking place in lower price ranges but in a positive trend, we are seeing increased activity in the mid-price ranges. This is all a domino effect. A turnaround begins with the lower price range homes and once that sector of the market is stabilized, we begin to see changes in the mid and upper price ranges. The upper end, though we have seen increased activity, still is slow but we fully anticipate that this will change over time, too.

Many of you are asking me questions about the moratorium on foreclosures. In many markets we’ve had a foreclosure moratorium set forth by Fannie Mae and Freddie Mac as they wanted servicers to reduce interest rates, delay back payments and penalties, stretch the length of the loan or defer payments on part of the principal. The moratorium is likely going to be lifted soon and foreclosed properties are going to be released into the market starting (in many markets) in June and moving through the remainder of the year. In order for a recovery to be sustainable, we really need to clear through those distressed homes so we can begin to sustain a price recovery.

In markets like California, this moratorium has really hindered sales. The demand for housing is outrageous as buyers anxiously await the inventory to increase so they snatch up the listings. In some cases they are seeing 15, 20 offers on properties as they hit the market. The June release of the moratorium is expected to alleviate some of that demand.

While the moratorium has impacted us in some ways, I’m not overly concerned about it here. One reason is that we have had less of a bubble here as compared to other markets in the country. I truly believe that we’ve seen the worst and locally we’re headed in the right direction. Our weekly updates showcase that fact and in analyzing the office data I think we can safely assume that the worst is behind us.

Two local articles of interest this week that I wanted to be sure you saw are:

Denver Business Journal: S&P: Denver existing home prices outperform other cities http://www.bizjournals.com/denver/stories/2009/05/25/daily15.html
Denver Post: Metro Home Slide Not Off Click http://www.denverpost.com/search/ci_12455302

Definitely worth the read and a great reminder of why we call this special place home.

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

Boulder/Longmont—Our Boulder office reports that Boulder County has shown a large increase in sales over the past two weeks, with 20% more under contracts and pending sales than in the past several weeks. Listing activity has been dead even over the past few weeks. Agents report more buyers but many are entering the market attempting to get the "Deal of the Century.” It's taking time to educate them about market realities in Boulder County. Values continue to increase slightly and the number of units closed in April was up sharply from March, though still significantly less than a year ago. Our Longmont office reported showings are historically down during this time in May and this May is no exception. The number of homes put under contract went up 92% week over week. You've got to love that type of activity! Buyers are savvy to the $8000.00 tax credit and are taking advantage of it! The cool weather is keeping the grass green and the wildflowers are blooming. It is a beautiful time to be in Colorado!
Evergreen/Conifer—No information reported.
Denver Central—No information reported.
Devonshire—No information reported.
Douglas County—Our Southwest Metro office reported that last week was quiet as far as showings and open houses. We felt that the weather and graduation had a hand in this slow down. A number of our Agents are working with buyers (especially fist time buyers). Floor continues to provide viable leads for our agents. Our mortgage rep tells us he is busy & this is good. We have several Agents holding first time buyer workshops and workshops on the $8,000 credit.
El Paso County—Colorado Springs reports our listing inventory remains steady with no one area getting more than another due to foreclosures or REOs. Sales are very busy in the under $250,000 range. Listings in this price range are either gone in a week or have several offers. VA is busy in all price ranges. Lenders for VA and conventional are requiring 45-60 days even with sizeable down payments. Appraisals continue to come in consistently low. New home sales are picking up as new home construction areas (under $300,000). Lot sales for custom homes are still extremely slow. Commercial leases are everywhere and it doesn't look to change quickly.
Larimer County—Our Fort Collins/Loveland office reports activity has been very steady the past few weeks and the buyers are starting to come out of hibernation with the good weather. Agents are reporting more buyers in the marketplace but they are taking their time to sift through the growing inventory and typically want to see many homes before making a decision. Closing times seem to be an issue lately with underwriters and appraisers being more vigilant about each property, thus increasing the start to finish time of the transaction. The upper end market is still moving very slowly with the bulk of the activity around homes under $300,000. Well priced homes in good condition are still selling.
North Metro—The listing price and the under contract price continue to average around the $250,000 range. We did have one listing go under contract that was over $600,000. The other listings over this price range continue to have slow activity. We are seeing multiple offer situations with homes priced under $250,000. We continue to deal with many short sale situations both listing & buyer sides. After attending a class on the short sale process, Agents have been finding the process to be much more manageable. The forms process are now in place for an easier transaction, not necessarily faster but more systematic.
Parker—No information reported.
Southeast Metro—The heat is on! One of our listings posted 48 showings in the first week! Homes in desirable locations and in good condition are going under contract within days. We are seeing a steady increase in multiple offers in every price range below $400,000 and our listings are averaging four showings in the first week on the market.
West Lakewood—Buyers in the lower price range are having difficulty finding suitable properties that can close quickly. Any property priced below $200,000 is flying off the shelf! Buyers must make quick decisions. We had a million dollar property recently sell for $800,000. There's not much activity on properties priced over $300,000. High-end townhomes are stagnant. If a condominium's HOA fees are excessively high or there is a special assessment, it can kill a possible big sale.

Historically speaking the week of Memorial Day quiets things down in the housing sector but this year it was a bit different. Thanks to the $8,000 first time home buyer credit, low interest rates and increased affordability, buyers in the first time home buyer market are out in droves and really are snatching up properties. Now that Memorial Day is behind us, we’ll probably see a week or two of quiet yet brisk activity until school is out and then…let the floodgates open. The summer selling season will be in full force.

Until next week,
Make it a great one,

Chris Mygatt
Coldwell Banker Residential Brokerage Colorado

NAR Announces Housing Affordability Highest in 18 Years

2009-05-21T14:47:00.000-07:00

For months I’ve been sharing that this is one of the best times to purchase a home in decades. Well this week the National Association of Realtors underscored that fact with the release that nationwide housing affordability jumped 10 percentage points during the first quarter of 2009 to its highest level since the series began 18 years ago, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI). The HOI showed that 72.5% of all new and existing homes sold in the first quarter of 2009 were affordable to families earning the national median income of $64,000, up from 62.4% during the previous quarter and up from 53.8% during the first quarter of 2008.

Locally, the story is similar. In the Denver-Aurora area, 79% of all new and existing homes sold in the first quarter of 2009 were affordable to families earning the area’s median income of $76,000. That’s up 9% from the previous quarter and up 14% from the same period a year ago.

In Boulder, 69% of all homes sold were affordable to families earning the median income of $89,100. That’s up 7% from the previous quarter and up 12% from the same period a year ago.

In Colorado Springs, 82.9% of all homes sold were affordable to families earning the median income of $70,800. That’s up 11% from the previous quarter and up approximately the same (11%) from the same period a year ago.

For complete details on the report, click here: http://www.nahb.org/page.aspx/category/sectionID=135

I’d also like to share a couple of other stories of interest from the week:

Finally, many of you have asked me questions about the potential changes in the $8,000 tax credit (http://www.realtor.org/RMODaily.nsf/pages/News2009051202?OpenDocument). Essentially the U.S. Department of Housing and Urban development announced that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 first-time homebuyer tax credit as a down payment. FHA's approved lenders will be permitted to "monetize" the tax credit through short-term bridge loans. This will allow eligible buyers to access the funds immediately at the closing table. Here is a CNN Money article which explains some of the details: http://money.cnn.com/2009/05/18/real_estate/tax_credit_as_downpayment/index.htm?postversion=2009051912

While it is an exciting turn of events I would caution you that the execution of this is quite complicated and it may take some time before it becomes a reality. HUD will authorize lenders, non-profits and certain agencies to provide a bridge loan which will then be reimbursed at the time of tax refund. These players are not yet identified. Again, an exciting turn of events but the execution and timing of it have yet to be fully outlined. Watch for more to come.

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

Boulder/Longmont—Our Boulder office reports activity is very steady over the past few weeks for both sales and listings. Showings have shown a solid increase in the past week and even though sales in the marketplace are steady, sales in the Boulder office showed a solid upturn over the past few weeks. We are also seeing some stirrings of life for incoming relocations, although most of these are buyers seeking preliminary information for a potential move to Boulder later this year. Short sales remain the dominating factor especially outside the immediate Boulder/Louisville area. The Longmont office reports homes are selling! We doubled week over week the number of homes that were put under contract. Once in a while good news does creep in. The Denver magazine 5280 did a great article on the fact that real estate values are LOCAL and that there is some very good news on home values in our area. Buyers and sellers are slowly getting that message and understanding the value of the REALTOR. Short sales are a large part of the market and REALTORS that understand the process are getting them sold.
Evergreen/Conifer—No information reported.
Denver Central—The average number of days on market has dropped from 24 days to 71 days. We have seen a dramatic increase in showings and inventory continues to drop. Our Agents are handling a lot of multiple offer situations.
Devonshire— We are truly in the late spring surge. Houses priced in the lower end of the market, $250,000 and below are selling. If they show well and are in good locations, they often sell with multiple offers. Particular neighborhoods have consistently high showings and the homes in these areas are selling well. The upper end of the market is still sluggish but we're seeing sellers getting their homes ready to list and on the market as the news regarding the real estate industry is better as a whole. With interest rates still at fabulous levels, now may be the time to buy for the first time or to move up to a higher value home. One thing we may want to remind buyers and sellers, warranty programs are available to protect their investments and benefit them when repairs become necessary. I mention this as we have a lot more noise relative to home warranty programs. They're a benefit to both buyers and sellers. Happy house hunting!
Douglas County—Our Southwest Metro office reported that showings were down this weekend. We feel this was due to Mother's Day weekend, graduations and the weather. We have been very successful with open houses. One of our Agents picked up two buyers from her open house and already has them under contract. We did have multiple offers on three of our listings. Agents are working with buyers and we are seeing a tremendous amount of interest related to the $8000.00 credit. We are seeing a lot of activity in the office and we are busy.
El Paso County—Colorado Springs reports our inventory is decreasing without a lot of replacement. Sales are very strong with lots of buyer activity from all companies. Open houses are happening even during the week and Agents report great traffic. Our board sales on SFR went from 566 in Mar/09 to 708 in Apr/09, a 25% increase in one month while inventory dropped from 1557 to 1445. (April 08 was 1835). Prices are absolutely stable with no increases over the past two months. The occasional multiple offers we have are all in the under $250,000 range.
Larimer County—Our Fort Collins/Loveland office reports "steady as she goes" should be the mantra for last week. We are seeing a steady increase in showings, under contract homes and new listings coming on the market. There is still a large amount of inventory and it still remains tough to sell, but it is possible with the right price, condition and location. It is graduation week and the end of the semester at CSU. There will likely be a large number of families in town this week. Typically some of the parents that have a child returning or attending graduate school begin looking for an investment property for their son or daughter. I believe we'll begin to see an increase in condo/townhome sales the next couple of months. Short sales are starting to enter our market a little more frequently than in the past 12 months. Banks are still relatively slow to respond, but it does still remain a viable option for some sellers that are stuck in a tough spot.
North Metro—Our Agents are starting to get higher priced homes listed. Most sales from this office are still under $300,000. Activity is picking up, especially with listing appointments. The average days on the market for our listings is right around 73 days right now. We're seeing a decrease in the number of listings for "bank owned" properties. Homes that are priced right are receiving multiple offers.
Parker— After a brief slowdown, all activities have gone full speed again. The sales activity has doubled from the week before. Showings are up drastically and our listing inventory has decreased by 12%. As long as the market is this active, now would be the time to contact your Agent to talk about the next steps if you are planning to make a move. The high end market is still slow., however we have started seeing some activity there as well.
Southeast Metro—We are seeing multiple offers now in every price range below $400,000. One agent wrote 25 offers last week on different properties with different buyers & every property was a multiple offer situation. Our showings continue to increase and we are averaging close to 100 per day. We have placed 65 [properties under contract so far this month. The general consensus is that we have turned the corner and the real estate market is on the rise! Spring has sprung!!
West Lakewood— Showings are up, nearly double from the previous weeks. One Agent had nine listings of which eight have sold in the price range of $240,000 to $400,000. Buyers are complaining that there is not enough inventory to choose from. It is very difficult for the self-employed person to get a loan unless they have a co-signor or take fewer deductions on their tax return to show ample income. The market is saturated with first time buyers. Very little new bank owned properties are coming on the market. FHA loans are backed up and are difficult to close in 35 days. Buyers need almost 45 days or more.

As we head into this long, three day weekend I’d like to wish everyone a very happy Memorial Day weekend. Enjoy your time with BBQs, sunshine, maybe a little swimming and (hopefully) a home sale or two.

Until next week,
Make it a great one,

Chris Mygatt
President
Coldwell Banker Residential Brokerage Colorado

Stress Test Reveals There’s More Work to Be Done By the Banks But The Local Real Estate Market Continues to Thrive!

2009-05-07T17:36:00.000-07:00

This week the results of the long-awaited Stress Test on the banks were released. What the government hoped to accomplish through this Stress Test was to determine how much more capital the banking sector would need to withstand the recession—much of which was caused by residential mortgages and other consumer loans such as credit cards. The result was that 10 of the nation’s 19 largest banks will need to raise a total of $74.6 billion in capital. The Stress Test revealed that banks like Goldman Sachs and J.P. Morgan seemed to be better positioned than Citigroup and Bank of America.

At this point, according to Kiplinger, “The stronger banks will actively do what they can to return any money borrowed from the government to get out from under restrictions on dividends and executive compensation. Their ability to sell common stock to the public is far better than their weaker counterparts, who may have to privately sell stock to investors or raise capital with so-called mandatory convertible preferred shares.”

According to industry analysts, it seems that until the banks get back on their feet, credit will continue to be tight. That leaves the Federal Reserve responsible for filling in the gaps with its own lending programs aimed at jump-starting lending.

On a brighter note, however, the real estate sector of our economy continues to show some positive signs—a good symbol that the programs that the government has put in place are helping. USA Today reported earlier this week that “More homes for sale are attracting multiple offers as buyers pursue lower-price homes and banks low-ball asking prices to attract competing bids on foreclosures.” It’s exactly what we’ve seen locally. Just as I revealed in an earlier blog posting, the first time, entry level home buyer market is fueling this recovery. It’s something we certainly forecasted and it’s finally coming to fruition. Now, we’re seeing, in many markets, multiple offers on starter homes and even some frustrated buyers who are scratching their heads and wondering what happened to the buyer’s market. We warned that the change could come before we knew it and in some price ranges, it might’ve already come and went.

Here are some links to some interesting, positive news stories from the week:

USA Today: More homes get multiple offers; downturn may be nearing end (http://www.usatoday.com/money/economy/housing/2009-05-05-foreclosure-home-sales_N.htm?loc=interstitialskip)
Business Week: Want to Sell Your Home? Lower Your Price (http://www.businessweek.com/lifestyle/content/may2009/bw2009055_075566.htm?chan=top+news_top+news+index+-+temp_news+%2B+analysis)
RISMedia: Relocation.com Survey Shows Consumers Moving Further Due to Economy (http://rismedia.com/2009-05-05/relocationcom-survey-shows-consumers-moving-further-due-to-economy/) – This is a good reminder to consumers as to why they should choose an Agent who is affiliated with a large, global real estate company that has the breadth and influence to reach the largest pool of buyers.
NYTimes: Where Home Prices Crashed Early, Signs of a Recovery (http://www.nytimes.com/2009/05/05/business/economy/05turnaround.html?_r=2&hp)
Realty Times: Real Estate Outlook: Sales Rising in Some Areas (http://realtytimes.com/rtpages/20090505_realestateoutlook.htm)

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

Boulder/Longmont—Our Boulder office reports that activity has been very steady the past few weeks in all three categories, showings, sales and listings. Agents are reporting more buyers in the marketplace but they are being very cautious and want to see a great many listings before deciding. Underwriters and appraisers are being more cautious as well. Getting deals to close remains more challenging than in the past. Short sales remain a major market factor in the area. The Longmont office reports that showings are becoming more consistent. Listings are selling in days when they are priced right. Good clean listings are hard to find for buyers right now. The price range from $150,000 to $250,000 is very competitive and these homes are not staying on the market for very long. The loan process is still a confusing one for buyers. It is not the slam process it was in the past. New times = New rules. Prequalification is the best way to go. Open houses are seeing good traffic.
Evergreen/Conifer—There were four new listings during the week for a total of 33 for the month. Three listings went under contract in the $575,000 range and one in the $1,000,000 range in Evergreen. The other was vacant land. A total of 19 homes under contract for the month. Showing activity showed a dramatic improvement following several straight weekends of snow. There were 71 showings for the week for a total of 244 for the month. The Conifer office reported that there were no new listings during the week. One listing went under contract during the past week, bank REO. Two buyers went under contract in the $250,000 range in Centennial with multiple offers. Other was a buyer from a floor call that went under contract on a home in Conifer listed at $1,000,000. Showing activity showed dramatic improvement following several straight weekends of snow, for a total of 52 showings.
Denver Central—We are seeing an increase in under contracts and multiple offers. We continue to see drops in inventory.
Devonshire—No information reported.
Douglas County—Our Southwest Metro office reported that showings have continued to increase. We have had two clients who have closed on their properties and have amended their tax returns and received their $8,000 refund. We are seeing buyers wanting to take advantage of the $8,000 and as a result are seeing lots of activity with Agents and buyers. Our open houses continue to be successful and our Agents have flyers with the information on the $8,000 credit. Many Agents have picked up buyers from their open houses and floor has been great, too. We seem to be making a turn.
El Paso County—Colorado Springs is still bustling with activity. Inventory seems to be remaining steady but buyers are out in droves. Currently and Fort Hood, TX is a moving seminar for troops coming to Fort Carson. CBRB was selected as the only real estate company to be represented at the conference. They estimate between 6,000 to 8,000 troops and their families will be moving here this year. We are also representing a team moving from Scotland to work at a local technological company. Home prices are remaining steady & homes under $200,000 are still leading in sales volume.
Larimer County—The market is steady with inventory growing and more buyers taking advantage of the first time home buyer incentive. Showing activity is steady especially in the lower price points. Two Agents reported an under contract home in less than five days at the $200,000 price point. Homes in the $450,000 plus market are struggling and the primary culprit seems to be the jumbo interest rates. With FHA financing hovering under or around 5%, it looks to be the best deal out there. Buyers are cashing in on this tremendous rate. Cash heavy investors are also taking advantage of good deals in the market.
North Metro—Activity continues to be strong. Our Agents are going out on numerous listing appointments and buyer appointments. Inventory decreased which is creating multiple offer situations on homes for the buyers. There are many short sale properties on the market.
Parker—After two crazy weeks showings have decreased slightly. We are still up on new listings, contracts written and closings year over year about 20%. Compared to the Denver Metro market which is down about 16% this is still great news. The lower price range homes are still selling quick if priced right. The high end homes are sitting on the market for a long time unless priced very aggressively.
Southeast Metro—No information reported.
West Lakewood— The Agents in the West office are very, very busy listing and selling homes. Sellers need to be realistic when pricing and staging their homes. Buyers are realizing that they are not going to "steal" a home. Offers being accepted are fair and reasonable. We are seeing some movement in the higher price ranges.

What do we do with this information? Spread the word! It’s one thing for me to talk about a recovering market but it’s another when even the most pessimistic analysts are doing the same. The stories above share the real story. All of our offices are reporting similar stories and as I visit our offices and talk with our Agents, I’m hearing the same scenario: the market is changing.

The window of opportunity has been open and it has been inviting buyers in for months. Now, the buyers are acting and if you were sitting, cooling your jets, it may be time to start your engine! Don’t wait until you’re kicking yourself and saying, “I should’ve bought a lot more real estate.”

Until next week,
Make it a great one,

Chris Mygatt
President
Coldwell Banker Residential Brokerage Colorado

“The End is Near”

2009-04-30T14:27:00.000-07:00

Well last week I told you the week would bring some interesting twists to the market. And I was right. New mortgage applications for home purchases and refinancings were up 77 percent from the same week in April 2008.

Mortgage rates continue to average well below 5 percent – 4.7 percent last week on average for 30-year fixed rate loans and 4.5 percent for 15 year loans. Rates like these are a major factor pushing applications.

Nearly 600,000 home buyers have already claimed either the $7,500 tax credit from last year or the $8,000 credit for this year, according to IRS data cited by the National Association of Home Builders.

Also of interest, new home sales have been showing signs of improvement. Last week the Commerce Department reported that March sales were off just 0.6 percent, exceeding analysts’ expectations, after climbing in February.

In other positive trends, interestingly enough, The Wall Street Journal reported this week, “Analysts say: The end (of declines) is near. While new home sales show signs of stabilizing as builders cut back on building and boom-bloated inventories are slowly absorbed, prices of both new and existing homes are still being dragged down by a flood of foreclosures. Still, the experts were optimistic that the federal government's efforts to stem foreclosures eventually will have an effect by the end of this year or early next year; Mark Zandi, chief economist of Moody's Economy.com, even ventured (jokingly) a date when home prices would stop falling—December 15, 2009.”

It’s hard to know whether or not the sum of these indicators is equivalent to a recovery but my sense is that the end is near—if we haven’t already passed it here in Colorado (some experts are even saying that we’ve already hit bottom and we’re in slow recovery mode). When the bottom has hit exactly is hard to predict but based on what I am seeing in our offices, based on the statistics that I am seeing on pendings and buyer interest/activity and based on the overall national recovery effort, it seems the prediction by many experts (in late 2008) that we would hit bottom by the middle of 2009 is probably not far off.

Now for those of you who are “timing” the market, I have to caution you on this. The only way you know that the market has hit bottom is when it is on its way up. While certainly housing is one of the biggest and most important investments we will make in our lifetime, it is also important to remember that our home is so much more than an investment. It is where we raise our family, where we create memories and where we plant our roots. So as you try to “time” the market, remember these key facts and make sure that beyond the investment, you are choosing a home that will bring you the happiness you deserve. Because in the end, that is what matters most. Choose the home that is right for you and your family right now and for years to come. Historically speaking, Colorado real estate brings long-term investment gains for almost all homeowners so if you choose the home that is right for you, you almost can’t loose.

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

Boulder/Longmont—Our Boulder office reports that new listings were up about 10% last week as Spring approaches. Despite a fair amount of bad weather, sales and showings stayed pretty level. More Agents are reporting frustration with getting deals closed, largely due to wildly different methods of handling short sales from one company to another as well as problems with appraisals. The Longmont office reports this is the second week in a row that our showing activity is up. We are up 15% week over week. Our homes "under contract" are up as well as our listings taken. We have more buyers looking at new builds and writing contracts on current builder inventory new home starts. Short sales and foreclosures are still impacting the values of local neighborhoods. Appraisals are continuing to be a stumbling block for some sales. It really is an area where the local Realtor can assist. One of the Agents here today commented that "I am rocking and rolling" with new business. It feels good!
Evergreen/Conifer—We had a total of six new listings for the week. Six of our listings went under contract including one priced at $1,300,000. There were 74 showings for the week which was back to the normal level following a decline the prior two weeks due to bad weather and our office being closed for three days.
Denver Central— We are seeing an increase in under contracts as of late. We continue to see drops in inventory.
Devonshire—This week we have seen a decrease in showing activity which is quite a seasonal anomaly. On the other hand, we are seeing lots of offers being written and actually accepted. It seems that this week buyers have seen what is on the market and are now at the decision making stage. With May here, we are still projecting a strong month and a good summer.
Douglas County—Our Southwest Metro office reports that showings were the best yet for 2009 so far. Friday-Sunday we had 175 showings. Agents are very busy with buyers and have had numerous calls regarding the $8,000 credit. We definitely see signs that buyers are starting to seriously look and make offers on properties. We had several listings that went under contract in less than a week with one on the same day. Our mortgage rep continues to be very busy with loan applications. Sellers are calling, wanting to list their homes.
El Paso County—No information reported.
Larimer County—Our Fort Collins/Loveland office reports that showing activity continues to increase in our market and we had the best week yet with property showings increasing by nearly one hundred showings. We are seeing many first time home buyers coming into the market to take advantage of the $8,000 tax credit. These first time buyers are buying power priced homes in the low to mid $200,000 price range. We had a solid number of homes go under contract last week. In fact, it was the most for a one week time period this year. However, no multiple offers were reported. If your property is in a good location, clean, well priced and under $300,000 there is a good chance it will sell in this tough market.
North Metro—The average price range under contract is around $250,000. Sales to list price is 98% to 100%. Days on market decreased to around 85 days. We've seen multiple offer situations on homes this week when the listing is power priced. Open house activity has increased as have the number of floor and sign calls. We continue to have the challenge of getting appraisers out quickly & loans out of underwriting in time for closing. We're working with many sellers.
Parker—Our Parker office reports: another record week for showings! Once again, sales activity increased last week. We received multiple offers on several power priced listings including eight offers on a bank owned property and three offers on a $1,300,000 listing. The inventory in our marketplace is steady. Depending on the price range however, we see a huge difference in the amortization rate from less than two months in the lowest to over three years in the upper range. In the million dollar plus market, it is necessary to position listings way below the competition in order to create activity.
Southeast Metro—We set 700 showings last week! Open houses traffic continues to increase as buyers are ready to make a move. We have put under contract 139 properties just this month! Homes in the high energy areas of the city are seeing a significant decrease in the average days on market. However, outer areas in the price point above $400,000 are still a bit sluggish.
West Lakewood— If you have a buyer wanting to purchase a bank owned property, they most likely will need to offer a substantial amount over the list price. We've had buyers offer $15,000 over list price and still not be the highest offer. One West Agent went under contract with a buyer for $800,000 a possible indicator that there may be some movement in this price range. Two $500,000 homes were placed under contract this week, again a possible indicator that there may be movement in this price range as well. Showings at all price ranges have increased.

No matter how cynical you are about today’s economy—and trust me, with as much as we’ve all been through over the last few years, I certainly understand—it’s important to point out the positive signs that we are seeing in the local marketplace. All signs are definitely pointing towards a recovery.

Next week I will release my May Reality Check message and I will focus it on why today’s market brings such prime opportunities for savvy investors. I hope you will check it out.

Until then,
Make it a great week,

Chris Mygatt

First Time Home Buyers Are Finally Fueling the Come Back!

2009-04-23T17:21:00.000-07:00

It’s finally happening! In my August 2008 Reality Check message I discussed our market’s need for the revival of the first-time home buyer. Because, as we know, first time home buyers are a critical force that will help jump start our market rebound, creating that important domino effect that will ultimately benefit all price points.

Confused? Just think about it. If first time home buyers purchase entry level homes, that allows the entry-level homeowners to sell and move-up to a mid-level, move-up market. By purchasing those homes, the move-up market is able to sell and ultimately purchase homes in the luxury arena. It’s a much-needed domino effect that could catapult our market’s rebound.

Well I talked about it eight months ago but at least you can’t accuse me of being a day late and a dollar short. I guess in this case I was a day (or eight months) early and, as my wife would say, still a dollar short. But it’s finally happening and numbers released over the last two weeks are certainly proving that.

First, let’s look at NAR’s release this week of its March existing home sales. Now of course some media did use the nationwide decrease in sales as an opportunity to take a negative spin but there were a lot of positives in this news. First, nationally, prices rose from February to March by 4.2 percent which is much higher than the typical 1.8 percent seasonal increase between those two months.

Second, housing inventory at the end of March fell 1.6 percent to 3.74 million existing homes available for sale which represents a 9.8 month supply at the current sales pace.

In the West, existing home sales declined 4.2 percent to an annual rate of 1.13 million in March but, and this is a big but people, are 18.9 percent higher than last year at this time.

Now what do all of these numbers mean? Well the fact is, the share of lower priced home sales have trended up, indicating a return of many first-time buyers. Sales in the upper price ranges remain stalled but there are two reasons for this. First, jumbo loans still are difficult to obtain right now—though that may change in the second and third quarters thanks to the government’s work to restore this—and second, now that first time home buyers are once again entering the market, it will take some time for the domino effect to take shape onto other price ranges.

Another interesting note, the Mortgage Bankers Association this week released its Weekly Mortgage Applications Survey for the week ending April 17. The index showed an increase of 5.3 percent from the previous week and that was a 76.9 percent increase compared with the same week a year ago. Yes, 76.9, that’s not a typo.

Whatever you think about what our government is doing to revive our economy, it seems some of the early work like the first time home buyer tax credit is working. Earlier this week Inman News reported that the preliminary numbers from the IRS suggest 1.4 million taxpayers will claim the federal first-time home buyer tax credit on their 2008 tax returns, meaning the program is likely to meet or exceed the 2 million target set by lawmakers before it ends November 30, 2009.

Finally and I think this is probably most notable, the Wall Street Journal reported this week that prices have fallen back into line with what the typical household can afford to pay in most of the U.S. The report showed that home prices are dubbed “fairly” valued in 202 of the 330 markets studied. That means the average price level is within a band 14% above or below the historical norm. Twenty-one markets are “overvalued” or between 14% and 34% above the norm. And 106 markets are considered “undervalued” or more than 14% below the norm. Take a look at this graph which showcases where we were in the early part of the decade as compared to today:

Now I know some of you are scratching your heads and saying, how is the drop in property value a positive thing. But the fact is that though the ride was nice in the big real estate boom of the early 2000s, we couldn’t sustain those types of record appreciation levels without eliminating certain consumer niches, including first time home buyers. Now that levels are back within range, the first time home buyers are once again able to reenter the market which is why we are seeing such a strong surge in sales in that level.

It’s just a matter of time before we weed through the remaining banked owned inventory and we should begin to see prices stabilize. Once we see that, the remaining areas of the market should begin to see an upswing, too.

With that said, let’s take a look at this week in real estate:

Boulder/Longmont—Our Boulder office reports that under contracts in the Boulder market are up 30% over the previous week with new listings down over 40%! I know it's only a week, but that's the kind of trend we like. The Boulder office showed a big uptick in under contracts over the previous two weeks. The Longmont office reported that business is happening. Our showings increased by 19% week over week. This is especially significant due to the blizzard like weather late in the week which caused us to close the office early on Friday. Some buyers are choosing not to buy foreclosures and short sales due to the challenges that those properties can bring. This bodes well for the non-distressed sellers. Homes in the lower and moderate price ranges are selling quickly. After the snow, the weather became wonderful. Spring has made it to the Rocky Mountains. We are also experiencing positive job growth year over year and the unemployment rate in Boulder county is lower than the state figures.

Evergreen/Conifer—Our Evergreen office reported that we had a total of two new listings for the week. Three listings went under contract. There were forty-eight showings for the week. Sales and showing activity were affected by the weather. Our office was closed for three days.

Denver Central—No information reported.

Devonshire—Our Devonshire office is reporting that in spite of snow storms and other weather issues, showings are increasing consistently. Buyers are finding it easier to pre-qualify for loans and are anxious to get out and begin looking. The moderate price range properties are holding strong with multiple offers. We know that the upper end will follow in the next few months. Buyers are coming to realize that if they don't move quickly on available properties someone else will.

Douglas County—No information reported.

El Paso County—Our Colorado Springs office reports that buyer activity is picking up dramatically mostly due to military and Schriever Space Center. Short sales are slowing and a lot of those sellers are renting their homes. REOs have slowed as well as foreclosures.

Larimer County—Our Fort Collins office reports that activity continues to increase in our market with property showings increasing and still the occasional multiple offer situation. The majority of the current activity is coming from homes in the $200,000 to $300,000 price range. The upper end is moving slowly. The three days of rain/snow did decrease the activity somewhat last week, but we are looking to rebound strong with the great spring weather and 70 degrees this week. We are still experiencing numerous short sales and some foreclosure activity. However, the banks are responding to offers a little quicker than before as these situations are becoming more commonplace. Interest rates are the lowest they have been since 1954 and the property values are holding relatively strong for our economy. If you are waiting for a better time to buy you may have to wait another 55 years!

North Metro—Our North Metro office reports that Agents are going out on many listing appointments. Some sellers remain overly optimistic about the price they would like to get for their home, over current market value. We are seeing an increase in listing appointments that are in short sale situations. The first time home buyer tax credit is helping to increase the number of buyer appointments. The result is a lower average sales price of the homes we put under contract. Floor calls continue to be strong. Average list price this week has been around $250,000.

Parker—Our Parker office reports that although we set a new record for listings under contract for the month of March, our inventory increased slightly because we added another high producing team to our sales force. Showing activity has been the highest since 2006! Our number of showings increased by over 100 in one week! We still receive multiple offers on power priced listings. Last week’s record was 14 offers on one listing within the first four days on the market.

Southeast Metro—WOW!! Busy, busy, busy with showings averaging 100+ per day! Our success story of the week is a condo near City Park that went on the market and closed in two weeks at full price! We continue to see multiple offers on homes priced below $250,000. Open houses are generating lots of energy and excitement in the market.

West Lakewood— Nearly 70% of our sales are under the $250,000 range. Very little is moving over $500,000. Many, many first time homebuyers are taking advantage of the $8,000.00 tax credit. Nearly all multiple offers are on bank-owned properties.

Next week will bring some more interesting news. Check out this article that ran Monday in The Wall Street Journal: http://www.washingtonpost.com/wp-dyn/content/article/2009/04/19/AR2009041901875.html. Once we see the results of new home sales (existing home sales were already reported), we should have a better indicator of where we are. I’ll leave you with this excerpt from the The Wall Street Journal’s story:

“Whatever the March numbers say, there are good reasons to think that home sales will improve as the spring selling season gets underway. Anecdotal reports suggest that low mortgage rates and an $8,000 first-time home-buyer tax credit are coaxing buyers back into the market. And while foreclosures are set to rise as banks begin to move on delinquent homeowners, that actually could boost home sales as banks auction homes for whatever the market will bear.”

The market is without a doubt changing and we may finally be seeing the end of the great housing challenge of the 2000s. I for one am very happy to see it.

Until next week,
Have a great one,

Chris Mygatt
President
Coldwell Banker Residential Brokerage Colorado

Are Happy Days Here Again?

2009-04-09T21:13:00.000-07:00

We awoke Thursday morning to some very positive economic news—Wells Fargo reported a better-than-expected first quarter profit of $3 billion surging the company’s stock by 32% and boosting shares of many other big banks as investors bet that Wells Fargo’s peers may also post results that exceed Wall Street’s estimates. The hope by all involved is that the banking sector is stabilizing. Much of Wells Fargo’s recent success is in part related to the recent increases in mortgage loan applications which could be a strong sign that consumer confidence is on the rise.

Also revealed this week is the fact that new jobless claims fell more than expected. The Labor Department said Thursday that the tally of initial jobless claims fell to a seasonally adjusted 654,000 from a revised 674,000 the previous week. Analysts expected claims to drop to 660,000

This week there were so many positive headlines that, rather than provide you with my ongoing synopsis, I thought I’d give it to you straight from the horse’s mouth. Yes, even the media is now on board with the positive headlines which tells me that the market is definitely changing.

New jobless claims, trade gap fall; retailers see signs of hope; http://www.usatoday.com/money/economy/2009-04-09-jobless-trade_N.htm
Big rally on Wall Street; http://money.cnn.com/2009/04/09/markets/markets_newyork/index.htm?postversion=2009040918
The case for buying a home right now; http://online.wsj.com/article/SB123913901841798375.html
With affordability up, home buyers are returning to the market; http://www.nahb.org/news_details.aspx?sectionID=0&newsID=9000
Outlook on economy is brightening; http://www.nytimes.com/2009/04/07/us/politics/07poll.html?_r=1&scp=23&sq=economy&st=nyt
Real Estate Outlook: Promising Numbers; http://realtytimes.com/rtpages/20090407_realestateoutlook.htm
Denver: 10 Cities Where Americans Are Relocating; http://www.forbes.com/2009/03/30/americans-moving-cities-lifestyle-real-estate-relocating_slide_2.html?thisspeed=25000

And with that very exciting and uplifting news in tow, let’s take a look at this week in real estate:

Boulder/Longmont—Our Boulder office reported new listings continue to rise in the Boulder market, especially condos but sales are increasing as well. Sales in the Boulder market are up 36% from the week before. New listings are up 48% week over week. A front page story in the newspaper today shows 1st quarter single family home sales in the 1st quarter of 2009, down 50% from 2008. Prices up 0.4%. Prices also up in Louisville (0.9%), Superior (4%), Erie (4.2%) and Lafayette (6.9%)! Sales were up 15.9% in Broomfield, but prices were down 5.7%. Figure that out!
Evergreen/Conifer—Our Evergreen office reported we had a total of four new listings for the week. Of the three listings that went under contract, two are short sales. There were 60 showings for the week. We had five buyers put under contract during the week, but only one was a bank owned property, the others were normal sales. One contract is for land ($400M), two are for homes priced in $175,000 range, one home is at $400,000 and one REO is priced at $900,000.
Denver Central—We have seen a big increase in activity in March/April. With interest rates so low, buyers and investors are purchasing properties. We continue to see a marked reduction in inventory. Number of days on the market continues to drop. Our office average is 82 days.
Devonshire— Our Devonshire office reports that once again we are seeing a surge in showing activity which indicate that buyers are jumping off the fence and into the market. All of the economic reports and the news coverage seem to indicate that the bottom is here or near for home prices and buyers are hearing the news, therefore moving ahead in their search for homes. The federal government first time home buyer tax credit is helping to create momentum for buyers. As the listing inventory decreases, sellers are seeing that this is the time to get their own homes on the market. They don't want to miss this surge in buyer activity. I would say that this spring should show a considerable surge in sales. We look forward to a productive summer.
Douglas County— Our Southwest Metro office reports that showings were down a little last week due to the weather, especially Friday and Saturday. We are still seeing buyers looking and writing on properties. We had several Agents that had buyers looking and then writing on properties. We had several Agents with buyers that wrote on properties where there were multiple offers. Recently we are seeing properties going close to their list price. Sellers are now looking into listing their home this month or in early May. Our mortgage rep is still very busy taking loan applications and approving buyers. Open houses and floor calls are still going strong.
El Paso County—Colorado Springs reports that the weather has slowed the market a bit but board sales remain good, as do ours. Commercial vacancies are still growing and unemployment here is growing fast.
Larimer County—Activity is up and multiple offers are coming in on well-priced homes. One Agent reported three offers on a new listing that had only been on the market for one day. Consequently, the property went for above asking and the sellers were thrilled. Buyers will come out of the woodwork to see well priced homes in the area. Showing activity has been steady and the spring season is bringing additional inventory to the market. Home prices are stable. Prices have been virtually flat or only slightly down for the last several years and with exception to short sales and foreclosures, the market appears to be at or very near the bottom. Given what has been happening on both coasts as well as Arizona/Nevada, we are fortunate our prices have remained comparatively stable. Homes in this area represent an excellent value for today's home buyer.
North Metro—Our Agents are busy going out on numerous listing appointments, power pricing the homes to get them sold. A total of 14 of current listings put under contract in this past week. The price of homes put under contract this past week are all under $250,000. Higher priced homes are still slow, with minimal showings. We had numerous floor calls from buyers looking for properties, both personal and investment.
Average days on the market in the office before a contract is written is right around 92 days.
Parker— Although we set a new record for listings under contract for the month of March, our inventory increased slightly because we added another high producing team to our sales force. Showing activity has been the highest since 2006! Our number of showings increased by over 100 in one week! We still receive multiple offers on power priced listings. Last week’s record was 14 offers on one listing within the first four days on the market.
Southeast Metro—In the southeast area we are seeing a steady increase of activity in the luxury home market. Inventory overall is increasing and there is fierce competition in the price point $200,000 and below. Buyers are moving quicker to write offers. Spring has sprung!
West Lakewood—Many sellers are still unreasonable regarding their price. One Agent in particular felt he priced a home well, however the feedback from Agents is that it is substantially overpriced. Another Agent would not take a listing because the seller was unwilling to price for the market. Buyers do not seem to know the market is changing. They still think everything should be a "steal.” In the $200,000 - $300,000 range the market is still saturated with short sales and foreclosures. The stimulus package is working in the lower price points. It will take time to have it work upwards in the higher price points.

Now what should we do with these positive stories? Don’t look a gift horse in the mouth! Spread the word. One of the biggest challenges hindering our sector right now is low consumer confidence. We’ve just finished three years of a very gloomy and challenging time in United States real estate. And while this optimism can’t yet be explained by official statistics, which lag behind the current market by 30-60 days, pendings are up in many markets and units sold are certainly on the rise. It’s time to target our family, friends and clients alike and educate them on the opportunities and possibilities in today’s market. The time is right now. The market is poised for a rebound. With the $8,000 first time home buyer tax credit, the historically low interest rates, the high rate of affordability—we couldn’t be in a better position for a rebound. Read my lips: spread the word! Tell your friends. Tell your family. If you’re considering buying a home, now may just be the perfect time.

Next week I will be taking a brief hiatus from Weekly Market Watch. I’ll return the following week with another exciting, robust edition.

Have a great one,

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

I’m Invigorated!

2009-04-02T17:20:00.000-07:00

Okay, I know that headline seems a little exaggerated and maybe even a little far-fetched, but honestly I am. I don’t know if it is a combination of the sun, the clean Spring air and the excitement that seems to be brewing in our offices, but I can feel that change is abuzz in the real estate market and for the first time in a long time, I’m truly invigorated!

This week was yet another week of milestones. Several weeks ago I questioned, are all of these positive indicators the start of a trend or are they just that, positive indicators that will have a short shelf life. Well, after at least four weeks of some strong, positive gains, I truly am invigorated.

This week, NAR released its Pending Home Sales Index, a forward-looking indicator based on contracts signed in February, reporting that pending home sales rose 2.1 percent to 82.1 from a reading of 80.4 in January. Pending home sales have a way to go for there to be a meaningful increase, but recent increases in shopping activity are hopeful indicators that we’ll see additional sales gains.

NAR’s Housing Affordability Index also rose 0.9 percentage points to a record high of 173.5 in February from an upwardly revised index of 172.6 in January, and is 36.3 percentage points higher than a year ago. This broad measure of housing affordability using consistent values and assumptions over time, shows that the relationship between home prices, mortgage interest rates and family income is the most favorable since tracking began in 1970. 1970!!!!

Also interesting, Inman News released a survey this week noting that of the 225 readers who responded to an online survey from March 23 to April 1, 48.9 percent said housing markets in their area were improving, 27.1 percent said they were stabilizing and just 12.9 percent characterized them as worsening.

That, along with the indicators I’ve referenced over the last several weeks including last week’s jump in mortgage applications, the historic drop in interest rates and the surge in new housing starts, we truly are seeing some very positive and indicative signs of recovery. I truly believe that buyers are seeing inventory move and that gets them moving.

It seems some of Obama’s various recovery efforts are starting to have some effect on the market. The billions to slow foreclosures and goose bank lending, plus the tax credit, are getting buyers to move which is a positive sign.

Now, of course, we’ll have to keep our eye on it and watch as the market continues to progress through our traditionally busy Spring selling season, but thus far the signs are positive and my magic eight balls says “Outlook is Good.”

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

Boulder/Longmont—Our Boulder office reported very strange two weeks in the Boulder market. New listings fell about 33% during the last week of March compared to the week before but under contracts skyrocketed! They went from 3 to 27! A 900% increase. Showings were down due to the snowstorm. Inventory in Boulder County continues to increase but we are holding steady at about 10% of going under contract in the first two weeks on the market. Our Longmont office reports showing activity was down 35% from last week…the blizzard of March 2009 did impact the showings! The week ended on a positive note with the showings going up again. Buyers are finally getting the message that the interest rates are awesome! More investors are writing contracts to purchase.
Evergreen/Conifer—Our Evergreen office reported a total of two new listings for the week. Two listings went under contract, one is a short sale property. 63 showings for the week making a total of 335 for the month of March.
Denver Central—Our Denver Central office reports we have seen a big increase in activity in March. The lower-end market is very hot right now with multiple offer situations. We are also seeing increases in sales volume.
Devonshire—Our Devonshire office is reporting that we are still seeing showings increase even with the unsettled weather. Buyers are getting tired of waiting for things to stabilize and are anxious to get out there and get a home. They are however, looking at many more homes before making a decision. The interest rates are wonderful so I believe that activity and closings will increase as we move further into Spring. Sellers are seeing that price and staging of their homes are more important than ever. Now is truly the time to move forward towards your real estate goals.
Douglas County—Our Southwest Metro office reports our floor has been generating great leads this past week. We have had four Agents that picked up buyers from their floor shifts. Open houses were very successful this past weekend. We are seeing a turning point (small but turning). Our mortgage rep is still very busy. He registered 25 leads out of 26 this month!
El Paso County—Our Colorado Springs office reports that the under $250,000 market seems to be the hottest price range right now compared to $350,000 two months ago. This may be due to more of the workforce of some of the companies at the Space Command Center at Schreiver coming in and the executive transfers have slowed.
Larimer County—Our Fort Collins/Loveland office reports that Spring has sprung and following a fast-moving blizzard this past week, we've seen a spike in activity in Larimer County. Loveland overall remains slower, but all indicators are that the Spring selling season is underway in the Fort Collins/Windsor area as showings are up 20% from previous weeks. Contracts are strong as well with an end of month blitz that doubled the number of the week before. We are seeing an increase in open house activity and sign calls as interest in current inventory increases while interest rates remain unbelievably favorable.
North Metro—Our North Metro office notes that Agents are going out on many listing appointments. Sellers are ready to "sell.” Numerous buyer appointments as well. Seeing an increase in number of short sale listings. Average days on market for our listings is about 95 days.
Parker—What a busy week last week of March! We set a record for March under contracts as well as for showings during week one of March of over 300! The biggest impact comes without a doubt from the first time home buyers that want to take advantage of the $8,000 tax credit. Because of the increased activity and the decreased inventory, more and more communities in the lower price ranges show a stable value. The upper end communities are still slow, however it's only a question of time until those pick up as well.
Southeast Metro—No information reported.
West Lakewood— We have bank owned properties that are receiving multiple offers. This week we had a short sale listing receive seven offers. Of the property with seven offers, the selling Agent was asked to give their highest and best offer. Two owner-occupied homes which have been listed since Fall received multiple offers. The buyer offered $10,000 over list price and lost the home to an investor. First time buyers who want to take advantage of the tax credit are finding themselves either in multiple offer situations or the property went under contract within hours of them viewing it. They are also in competition with investors. Owner occupied sellers are busy getting their homes ready for market. They are open to staging, painting and carpeting so they can compete well. Eight parties came through a $730,000 home at an open house last weekend. That is the highest traffic since last summer.

As you can see, the market is heating up. Consumer confidence is finally on the rise and buyers are edging off the fence. For those who are still cautious, please consider all of the positive signs that are knocking at your front door. From the first time home buyer credit to the historically low interest rates to the increases in conforming loan limits to the generous amount of inventory to the motivated sellers to the…honestly, the list goes on. Opportunity is knocking and it is time for buyers to recognize this and jump in.

Until next week,
Have a great one,

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

From A Slow Crawl…To a Brisk Walk

2009-03-26T14:42:00.000-07:00

I heard someone earlier this week say that the housing market has gone from a slow crawl to a brisk walk. I think that is the perfect metaphor to explain the recent changes in the real estate market. The market is coming back. It’s not roaring, but it’s coming back.

This week, according to Reuters.com, U.S. mortgage applications jumped as record low interest rates spurred a surge in demand for home refinancing loans. The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, increased 32.2 percent to 1,159.4 for the week ended March 20. Refinancing accounted for 78.5 percent of all applications.

Furthermore, interest rates on mortgages fell after the Federal Reserve last week said it would buy Treasury securities for the first time in more than four decades as well as more than double its planned purchases of mortgage-related securities. Reuters.com reported that “Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 4.63 percent, down 0.26 percentage point from the previous week, reaching a record low….Interest rates were well below year-ago levels of 5.74 percent.”

Meanwhile, according to Realty Times, housing starts took a surprise jump of 22 percent in February over January's depressed levels. Most of the increase was attributable to apartments and condominiums, but single family starts were up by one percentage point, and new home permits were up by 11 percent, after months of sharp declines.

Existing home sales are also seeing some good trends. NAR reported this week that sales activity for single family, townhomes, condominiums and co-ops rose 5.1 percent to a seasonally adjusted annual rate of 4.72 million units in February from a pace of 4.49 million units in January.

Last week I recommended that you watch Coldwell Banker president and CEO, Jim Gillespie on CNBC’s “Roadmap to Rebound” which focused on the state of the housing market. If you missed it, Gillespie stated that “the government could do a lot more than they are already doing in order to get the real estate market moving again.” Congressmen and economists continually say that in order to get the economy going, we need to first get real estate going. Gillespie believes that two key changes are needed in order to get the economy moving, and the first item that needs to be addressed is to set a fixed-rate mortgage. “Lowering the interest rate to 4% to 4.5% for 12 months is one way to get the inventory moving.” Along with setting a fixed-rate mortgage, increasing the tax credit to $15,000 and including all buyers of primary residences will help move buyers along and get the market to shift.

Gillespie also stated that the demand side needs to be looked at closely, because once we start to burn off the inventory that we currently have, prices will begin to stabilize and go up again, which will help those in distressed situations. “Fifty-five percent of loan modifications have failed after six months because jobs are not being created and homeowners are losing the jobs they have,” says Gillespie. “In order to create jobs, we need to create demand, both of which will get the housing market and economy moving.”

I for one appreciate seeing our leadership team speaking out on our behalf, serving as the visionaries for our industry. It’s enlightening and certainly makes me proud.

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

Boulder/Longmont—Our Boulder office reports that the past few weeks have been a bit slow with properties going under contract. The feedback from the Agents is that with all the talk and hopes that the stimulus items will include further reductions in the interest rates before they commit to writing an offer. While we are still actively taking listings, ONLY the homes that are priced well are being shown and getting offers. The homes that are priced at a value to the public are getting multiple offers allowing for the seller to get more than what they originally priced. The Longmont office reports that showings were off 6% from the previous week. Calls into the office from potential sellers and buyers were up. Buyers are using many methods of searching for properties. They are reading specialty home sales magazines, newspapers and using the Internet. Some buyers are realizing that well priced properties need quick action, they are sold quickly. Overall, days on market have decreased 11% year over year.
Evergreen/Conifer—Our Evergreen office reported it had a total of two new listings for the week. Two listings went under contract, one was a short sale. Two buyers went under contract—both are short sales. Three other offers are pending acceptance—one is an REO and the other two were short sales with multiple offers. One Agent was preparing to make an offer on a bank owned property but was unable to submit because the bank stopped taking offers after 18 were submitted. The listing was in the $150,000 price range in Denver. We had 83 showings for the week.
Denver Central—Our Denver Central office reported that spring is adding many new observers to open houses and the low rates combined with the new tax incentives have many buyers anxious to tie up a property to add to the interest deductions they get normally. They know the longer they are in the home the more interest is available to deduct for 2009 tax year. With the new additional incentives it makes for a nice bonus around April 2010.
Devonshire—What a strange market. We are seeing homes go under contract at a slower pace but once under, they don't seem to be falling as frequently as before. Buyers seem to be doing their due diligence before going into contract. One of our professionals in the office is counseling her clients that in this age of "restructuring,” purchase a home because it's a place that you want to remain and in a neighborhood that you love. Do not purchase a home for the quick money you will make on it. These comments seem to have real value and we see inventory decreasing. It's a perfect time to buy the home you want in the area you love. Seeing homes selling spurs sellers to get their homes on the market. Things are looking up and we look forward to an active spring/summer season.
Douglas County—Our Southwest Metro office reports that showings this past weekend were the best yet! Our open house activity was fantastic with Agents having such busy open houses that some ran out of flyers! Buyers seem anxious to find homes and our Agents are busy writing offers. It seems as though sellers and buyers are beginning to see a little light at the end of the tunnel. There is excitement around the office and among the Agents.
El Paso County—Our Colorado Springs office reports that open houses are still active. We’re seeing lots of buyers in town just checking things out to see if they want to accept a transfer to Colorado Springs. USAA transferees from Sacramento are getting several options for relocating as are some Lockheed people from San Jose. Foreclosures are slowing down as are short sales. Buyers get frustrated when they try one and avoid them after that. Lenders are tightening up finally.
Larimer County—Our Fort Collins/Loveland office reports that as predicted, showings during Spring Break week in Larimer County increased dramatically with many families remaining in town and weather cooperating beautifully. We are expecting to see an uptick in contracts in the following week especially with 30 yr fixed rates now in the 4.6% range. Despite continued unsettling economic news on both local and national fronts, Northern Colorado enjoyed a key job creation groundbreaking ceremony of their 2nd blades plant and 1st nacelle assembly plant in neighboring Weld County. At full capacity, these two operations will employ over 1300 people in the area.
North Metro—The North Metro office notes that the market under $250,000 is very hot right now. Inventory is low and several homes are getting multiple offers. Interest rates are low and buyers have gotten off the fence.
Parker—Listings as well as showings were up again last week. The traffic through open houses is way above average. For the first time in months we see stable values in some communities. Canterberry Crossing, Stonegate and other established neighborhoods show a drastic increase in sales activity. More and more, energy priced listings receive multiple offers. We continue to watch the trend closely and are confident that we will be able to announce a shifting market for some areas in Douglas County soon.
Southeast Metro—Showing activity continues to increase. Our office set 660 showings last week! Several market adjustments were put into place on our listings. Lots of traffic at open houses and buyers are making offers quicker as inventory continues to decrease in the price range $200,000 to $300,000. Outer areas are still sluggish as inventory is at a stand still.
West Lakewood—One buyer had 20% down, excellent credit asked for $2000 in seller concessions. The seller countered without the concession and the buyer took the counter offer. We are seeing a reduction in the number of bank owned listings that are coming on the market. Showings are up substantially as are visitors to open houses. More offers are coming in. A lot of first time buyers in the market are now taking advantage of the $8000 tax credit. One Agent put three of her listings under contract and is writing on one of her own listings with her buyer.

After a week of positive indicators, my best advice is for buyers to get out there. There are some fantastic deals out there right now and as more people begin to realize it, competition will come back and begin to drive activity. You know what they say about the early bird!

The weather over the next few days is going to be cold and wintery—even after my message last week in which I kicked off spring. Stay warm and safe and have a wonderful weekend!

Until next week,
Make it a great one,

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

It Was a Week of Surprises…And Best of All, Spring Has Sprung!

2009-03-19T18:32:00.000-07:00

First, CNNMoney.com reported a sudden, unexpected surge in U.S. housing starts. According to the Commerce Department, housing starts rose to a seasonally adjusted annual rate of 583,000 last month, up 22% from a revised 477,000 in January. The big surprise: Economists were expecting starts to decline to 450,000, according to consensus estimates by Briefing.com.

Furthermore, applications for building permits, considered a reliable sign of future construction activity, rose 3% to a seasonally adjusted annual rate of 547,000 last month. The other big surprise: Economists were expecting permits to fall to 500,000.

Also interesting this week, retail sales figures fell much less than expected in February, and surprisingly strong January sales were revised even higher. According to CNNMoney.com, “U.S. store sales showed a smaller-than-expected decline in February after an unexpected surge in January that was bigger than originally reported…The Commerce Department said total retail sales fell 0.1% last month, compared with January’s revised increase of 1.8%. Economists surveyed by Briefing.com had been expecting a decrease of 0.5% for February.”

So, is it safe to call this a trend? Are we out of the woods yet? It’s tough to say. In all honesty, you don’t know whether or not you’ve hit bottom until you’re on your way back up but it seems some of the critical signs are starting to show signs of life which is welcome relief for our wounded economy.

Also in the news this week, the Federal Reserve announced plans to purchase up to $750 billion in mortgage-backed securities and up to $300 billion in longer term Treasury securities. Our representatives at the National Association of Realtors applauded the plans noting “This is great news for American home buyers and homeowners because mortgage interest rates will continue at historic lows.”

What this means for Americans is that a greater number of home buyers will be able to purchase a home and homeowners facing challenges will be able to refinance into better terms. As NAR noted, “We already are experiencing a great improvement in housing affordability due to historically low interest rates and the Fed’s move will push affordability conditions to the best levels in 40 years. In addition, continued low rates will lessen foreclosure pressure and help stabilize home prices sooner, as more Americans buy homes and draw down inventory.”

Along the lines of mortgage relief, the Treasury Department this week launched a new website for consumers seeking information about the Obama Administration’s Making Home Affordable loan modification and refinancing program. The site, www.MakingHomeAffordable.gov, offers features including interactive self-assessment tools that will empower borrowers to determine if they are eligible to participate and calculate the monthly mortgage payment reductions they could stand to realize under the Making Home Affordable program.

This is a helpful site that we should all be sharing with our friends, families and clients alike.

Finally, on Friday, Jim Gillespie, president and CEO of Coldwell Banker Real Estate LLC, will participate in a discussion about the state of the housing market, live from the New York Stock Exchange on CNBC. This will occur on Friday at approximately 4:30 p.m. (Eastern).

Jim will participate on the “Roadmap to Rebound” segment hosted by Maria Bartiromo. Yale economist Dr. Robert Schiller and Sanjiy Das, CEO of CitiMortgage, will also participate.

In another powerful symbol of what our Coldwell Banker and Realogy leaders are doing on behalf of consumers and the real estate sector in general to enact change that will stimulate housing and ultimately the economy, Jim plans to call upon government leaders to enact a $15,000 non-refundable tax credit to ALL buyers and also a mortgage buy down that would bring rates to the 4-4.5% range. This, NAR reports, could generate an additional 840,000 home sales over 12 months. This home buying activity would have major implications in stimulating the overall US economy since NAR also reports that each home sold generates more than $60,000 in economic activity. The proposal would also have a greater impact on foreclosures than the current stimulus package. I hope you will all watch.

Now, with all of that exciting news for the week in tow, let’s take a look at our local real estate news:

Boulder/Longmont—Our Boulder office reports that new listings are down 10% from the week before, but listing activity is still very busy. Sales in the second week of March increased by 23% (from the previous week). Showing activity continues to climb and based on Agent reports there are loads of buyers out there. They still are taking longer to pull the trigger than in past years, but not as many seem gripped by fear as a few months ago, as the increased rate of sales shows. Houses that are in top condition and under the median price ($539,000 in Boulder) are selling briskly, often within 10 days of listing. Our Longmont office reports that showings were off 11% from last week. We are seeing activity in the new builder market. Builders are offering some super incentives and buyers are seeing great values. We are still seeing a lot of buyers "sitting on the fence.” They are waiting for the interest rates to go down or they are waiting for the prices to decline—the problem, there hasn’t been much movement on either end. We are all waiting for the press to realize that real estate markets are local and we are not in any kind of drastic state here in Longmont.
Conifer—Our Conifer office reports one new listing during the week. Four listings went under contract during the past week plus one buyer—one listing was under contract within one day of going on the market and one within two days. Showing activity continues strong with 34 showings during the week.
Evergreen—Our Evergreen office reports a total of five new listings for the week. Two listings went under contract. We had 73 showings for the week plus seven Agent previews for a total of 180 thru mid-month.
Denver Central—Our Denver Central office reports that buyers can expect to compete with other offers for ANY property priced under $250,000 in the Denver Metropolitan marketplace. There is renewed interest from buyers because of low mortgage rates, new tax incentives and an overall feeling that the Denver market has hit bottom in inventory. Anticipation is high that price increases will follow shortly.
Devonshire—Our Devonshire office is reporting that even in these challenging times we are still setting showings at a pretty good rate so we know that buyers are out there. Buyers are very hesitant to make offers and commit to purchasing at this time as they are feeling the angst of the current economic conditions. With rates for mortgages dropping again, it may be the perfect time to buy. If sellers are pricing their homes correctly, they are selling. As real estate brokers, we continue to underscore our value as we are knowledgeable on what it takes to get transactions done. It would behoove consumers to use a full time real estate professional. We are making a concerted effort to get the good news out there when most news seems to be gloomy at best. It may be a great time to buy. Interest rates are fabulous and sellers are pricing their homes realistically at last.
Douglas County—Our Southwest Metro office reports that our showings have increased as well as the attendance at our open houses. We have had several Agents report excellent turn out at their open houses and they have picked up buyers and listings. We had a phone call from an article regarding our community service that was run in last Sunday's paper. Our mortgage rep is quite busy and buyers are ready to start taking the steps to buy a home.
El Paso County—Our Colorado Springs office is reporting steady sales and showing activity. We had our first VA listing cancellation due to the new government guarantee on VA loans. I suspect there will be a few more this week. Commercial financing is extremely tight and guidelines need to be checked daily. Work has stopped on the new mall at Highway 83 and Voyager due to construction financing changes.
Larimer County—Inventory is increasing throughout Larimer County as the prime selling season inches closer. However, the market remains very price sensitive—so those sellers with super clean homes and terrific curb appeal will continue to have a leg-up on the competition. Many buyers are looking at foreclosures and short sales but due to substantial waiting periods for responses from banks, many don't have time to wait. With the change to daylight savings, we're seeing an increase in showings weekdays as buyers are able to view properties after work.
North Metro—We have seen a big increase in activity in March so far. The lower-end market is very hot right now with multiple offers common. We are seeing increases in sales volume overall.
Parker—Our Parker office is reporting that activity has increased and although we see more new listings on the market, the inventory did not go up because the sales activity is steady as well. Traffic through open houses was very high over the last weekend and the call volume on our listings has increased as well as an increase in showings. Sellers are now better educated through our Agents and are power pricing their homes to create more energy in the buyer pool. They also react faster to changes in the market.
Southeast Metro—Brokers are very busy writing offers! In some cases, brokers are writing at least three offers before going under contract due to multiple offer situations. Showing activity continues to increase as we are now consistently setting over 500 showings a week. We are also seeing an upswing in traffic at our Previews properties, too.
West Lakewood—Our West Lakewood office is reporting that open houses are very active. We had 19 groups at one home and 23 at another. It appears that many of the buyers are relocating or want to relocate from other parts of the country. Most Agents are working with from one to five sellers who are getting ready to place their homes on the market in April.

With spring break ending and the weekend weather outlook to be gorgeous, look for the first of the spring garage sales as well as lots of great homes holding open houses! For a schedule of open houses, go to www.OpenHouse.com or www.ColoradoHomes.com. Spring has sprung!

Until next week,
Make it a great one,

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

What Will Real Estate’s Big Selling Season Bring?

2009-03-15T20:48:00.000-07:00

With real estate’s traditionally busy Spring selling season right around the corner, what do we expect March-June to do for our market this year? Well as much as I’d love to say that we anticipate a sudden, overwhelming surge in sales and that all of our challenges are behind us, I won’t. What I can say is that we are seeing some bright spots thanks to heightened consumer confidence, following the recent legislation passed by the Obama administration. January and much of February had many buyers sitting on the fence as they awaited the results of the Economic Stimulus Package. The lowering of interest rates, induction and improvement of the home buyer tax credit, reduction in preventable foreclosures and reinstatement of the higher loan limits now have some buyers getting off the fence.

We’re definitely feeling the beginning effects of this, in many markets, with an increase in calls to our branch offices and Agents as well as increased traffic at our open houses.

But will this “interest” translate into closed transactions is the million dollar question.

Though none of us holds a crystal ball, I would say that we’re anticipating a moderate Spring. In markets hardest hit by foreclosures, we still have quite a few distressed properties to weed through before we can begin to work our way up. Our hope is that the recent passing of the foreclosure prevention plan will significantly reduce the number of foreclosures hitting the market over the next several months, and once this takes effect, we should be able to weed through the current inventory and start making our way through to the other side. In all honesty, this could take several months before we really feel its full impact.

For those markets impacted less by foreclosures and more so by Wall Street and the general state of the national and global economy, we’re really facing two main challenges: a lack of quality inventory and buyers who are struggling with whether or not to get off the fence.

Many buyers right now have misgivings about whether or not now is the best time to buy. Many are trying to time the market. My response to this is, it is very difficult to time a market. Just as you can’t time the stock market, you can’t time the real estate market. Real estate needs to be seen as a long term investment. If you plan to stay in your home for two, three or even five years, buying now probably makes good business sense. And that is solely if you are looking at purchasing a home from a business or investment purpose. But as we all know, purchasing a home isn’t just an investment. Home is where we live. Where we raise our families. Where we create memories. Rather than simply trying to time the market, we should be reminded of this fact and instead, focus on choosing the best home in which we can make that “life” happen. Of course, prosperity in real estate is how the majority of Americans have built their wealth in this country and I for one won’t overlook that fact but I do think it is important for all of us to reflect on the fact that beyond being a solid investment, our home is much more than that.

For buyers who are out there and are considering buying right now, if you plan to stay in your home for a long period of time, you probably can’t go wrong purchasing today. Though we anticipate moderate home sales in the near term, buyers are ultimately expected to respond to much improved affordability conditions as well as the $8,000 first-time home buyer tax credit and the market will pick up. It’s just a matter of time. And when it does, that pick up will translate into more competition, less inventory and possibly higher home prices, resulting in less purchasing power for you. Consider my advice: waiting may cost you.

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

Boulder—Our Boulder office reports that the first week of March showed a jump of over 30% in both new listings and properties going under contract. Agents are still reporting that buyers are taking a long time to decide but after they see several listings they are moving ahead with contracts. Our Longmont office reports that the wonderful weather continues to hold and it plays directly into the increased showings. The price point of our showings was down this week—all under $319,000. Deals are becoming more streamlined. We are seeing short sales closing in three weeks as well as the FHA bottlenecks clearing up. Properties that are priced well are being shown. Properties that are priced great are being sold! One of our listings came on the market this week & sold this week with multiple offers. It is a good time to buy in Longmont. The rental market continues to be strong and investors are paying attention to this situation.
Conifer—Our Conifer office reports one new listing during the week. Four listings went under contract during the past week, one with multiple offers. Our showing activity continues strong with 33 showings during the week.
Evergreen—Our Evergreen office reported a total of two new listings for the week. Two listings went under contract and two buyers went under contract. We had 86 showings for the week plus five Agent previews. There are a few sellers that are now offering to exchange/purchase homes of buyers interested in their property if the buyers need to sell their home to purchase, i.e. swap home in Evergreen for one in Highlands Ranch. Creative deal making is flourishing.
Denver Central—Our Denver Central office reports that we have seen a slight increase in our under contracts—a direct result of all the activity and appointments we have set over the past couple of weeks. Buyers are still tentative, but confidence is growing as we help to educate the public on the market and the benefits of home ownership. We are having success with our onsite Home Buyer Seminars and have decided to hold them monthly.
Devonshire—Our Devonshire office is reporting a lot of activity. Lots of offers are being written and buyers are finding themselves in competing situations. Unfortunately, a real stumbling block right now is the banks and the lack of timely responses to offers. Our showing activity is up and we are seeing more listings coming onto the market every week. We are encouraging all of our sellers to really work on their curb appeal and get those pansies planted on garden areas and pots as landscaping looks very tired this time of year. Buyers perceive that homes are well cared for when they see colorful plants out front. We are still forecasting a fairly strong spring. It will be about the pricing for all homes on the market.
Douglas County—The Southwest Metro office reports that open houses were very successful last weekend. We had several Agents who had as many as 15, 20 or 25 groups through and they picked up several buyers and potential listing opportunities. We are seeing buyers ready to make decisions to buy now and not wait. Our mortgage rep is still busy writing approval letters for our Agents and with the increased traffic at open houses we feel very good about where the market seems to be heading.
El Paso County—Our Colorado Spring office reports that condo sales are up 31% over January and single family up 22% over January. Average sales prices jumped $10,000 in one month and verifies that listing prices are remaining firm. Open houses got better and ad calls were much better than last month.
Larimer County—The Fort Collins/Loveland/Windsor area continues to see slow but steady activity in all areas of the market. Property showings for our offices remain well over 250 per week, with listings going under contract at a steady pace. With Spring Break approaching we may see a bump-up in weekday showings as many folks are staying put for the school holiday. Weather outlook appears to be mild. Our area received additional encouraging news with regard to the recent release of 4th quarter 2008 statistics by the Office of Federal Housing Enterprise Oversight (OFHEO). Colorado moved to the 19th position in terms of national year over year change in value and the Loveland/Fort Collins metropolitan statistical area (MSA) reported just a .09% decrease in prices. This positions our area very favorably as an affordable market, highly attractive to future employers.
Loveland—See report for Larimer County.
North Metro—No information reported.
Parker—Our Parker office reported that we have added a number of great properties to our inventory again. The tour of our new listings created very positive feedback and most of those listings should create a lot of traffic and multiple offers soon. Since the total inventory in our marketplace is still dropping due to the number of expired and withdrawn listings, some areas are showing signs of a stabilized market. If the trends continue and the relation of new listings on the market to properties under contract shifts to a true declining inventory, we might see some areas actually increase in value within a few months.
Southeast Metro—Wow! Buyers are ready to move! Traffic at open houses continues to break all the rules for this time of year! We are averaging five showings during the first week that new listings are on the market. We will close on over 140 homes this month. Inventory between $200,000 and $300,000 is moving quicker than we can replace it and our luxury homes are seeing an increase in traffic as well.

As you can see, we really have a mixed bag. Some markets remain slow while others are seeing huge leaps in sales and contracts.

What I’ll leave you with this week is a reminder that, for buyers, opportunity is knocking this Spring. Buyers need to be aware of today’s advantages—attractive interest rates, increased affordability, sizeable inventory, increased loan limits, $8,000 first time home buyer tax credit and motivated sellers. The stars couldn’t be more perfectly aligned.

For sellers, pricing is key. Homes that are priced well (really well) and show well, are selling. Home that aren’t, sit. Consider this as you prepare your home for market and please, take my and your Agent’s advice, and don’t test the market. Price your home well from the beginning to generate the largest pool of potential buyers.

Until next week,
Make it a great one,

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

Foreclosure Prevention Plan Guidelines Revealed

2009-03-05T19:31:00.000-08:00

Earlier this week, the Obama administration released the guidelines which enable lenders to begin modifications of eligible mortgages under the administration’s Homeowner Affordability and Stability Plan. Here is a summary of the guidelines, direct from the Department of Treasury: http://www.treas.gov/press/releases/reports/guidelines_summary.pdf.

This “foreclosure prevention plan” (dubbed by the media as such) is estimated to help some seven to nine million homeowners make their mortgages more affordable and help to prevent the continuation of the devastation that foreclosures have caused in this country.

According to the U.S. Department of Treasury, “The Home Affordable Refinance program will be available to 4 to 5 million homeowners who have a solid payment history on an existing mortgage owned by Fannie Mae or Freddie Mac. Normally, these borrowers would be unable to refinance because their homes have lost value, pushing their current loan-to-value ratios above 80%. Under the Home Affordable Refinance program, many of them will now be eligible to refinance their loan to take advantage of today’s lower mortgage rates or to refinance an adjustable-rate mortgage into a more stable mortgage, such as a 30-year fixed rate loan.

“GSE lenders and servicers already have much of the borrower’s information on file, so documentation requirements are not likely to be burdensome. In addition, in some cases an appraisal will not be necessary. This flexibility will make the refinance quicker and less costly for both borrowers and lenders. The Home Affordable Refinance program ends in June 2010.

”The Home Affordable Modification program will help up to 3 to 4 million at-risk homeowners avoid foreclosure by reducing monthly mortgage payments. Working with the banking and credit union regulators, the FHA, the VA, the USDA and the Federal Housing Finance Agency, the Treasury Department today announced program guidelines that are expected to become standard industry practice in pursuing affordable and sustainable mortgage modifications. This program will work in tandem with an expanded and improved Hope for Homeowners program.
With the information now available, servicers can begin immediately to modify eligible mortgages under the Modification program so that at-risk borrowers can better afford their payments.”

Industry online magazine, RISMedia, weighed in on the plan this week and offered this insight that I thought would be helpful: http://rismedia.com/2009-03-04/how-to-help-homeowners-understand-obamas-foreclosure-plan/

I know that many clients have a lot of questions right now and we are working to gather some communication tools to help. One good option in the meantime is a consumer-friendly Q&A recently put together by the Treasury Department, the U.S. Department of Housing and Urban Development (HUD) located at http://www.financialstability.gov/makinghomeaffordable/.

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

Boulder—Our Boulder office reports that new listings in Boulder County fell back about 30% after last week’s huge surge, but 10% of last week’s new listings went under contract within five days. Showings are holding steady. Our office is getting many requests for information about the $8,000 tax credit which is why our March Reality Check (http://www.discovercbtoday.com/DENVER/realitycheck/09MARCH/DV09MarchRC.html) is proving so helpful to so many. The Longmont office reports that showings are way up this week—in fact, 38% up! Contracts on our listings are coming in much stronger at the end of the month. Sellers are making some tough decisions on price reductions now that we are approaching the “selling season.” Buyers for short sales and foreclosures continue to be present. The increase in FHA limits by county was great news and should help buyers in more income levels. Investors are still marveling at the market.
Conifer—The Conifer office reports increased listing inventory with two new listings during the week. One listing went under contract during the past week and had multiple offers. Showing activity continues strong with 25 showings during the week for a total of 141 for the month.
Evergreen—The Evergreen office reported steady news in listing inventory and sales activity. We had a total of five new listings for the week, while two buyers went under contract. We had one short sale go under contract at $725,000.
Denver Central—Our Denver Central office reports that the Agents are busy. Many Agents are having more appointments than ever. It is just taking some time to get deals to come together. We are seeing a slow down in the foreclosure market but short sales are still prevalent. Calls coming through to our floor have increased and we are experiencing more calls from people looking to make a career in real estate. We are focusing on our contracts and seeing great results.
Devonshire—Our Devonshire office reports that this week we had a definite surge in buyer activity. It seems that buyers are "pulling the trigger" on homes that meet their needs and now the issue is that they are caught liking homes that others do also. We have at least two examples of multiple offers—one of them over $800,000. The thought that we are working off of in our office is that if buyers like a home it is better to get in an offer and avoid the competing offer scenario. We look forward to a steady and good summer season.
Douglas County—The Southwest Metro office shares the great news that showings are continuing to increase week after week. Floor has been great this past week. We have six potential deals from floor. Our marketing of the Highlands Ranch has resulted in a $350,000 listing for one of our Agents. We did see three listings this week with multiple offers as well as nine buyers who were involved in multiple offer situations. Our mortgage rep is extremely busy taking loan applications which is a great sign for a good Spring.
El Paso County—Our Colorado Springs office shares news that showings have been heavier on the higher end properties. An estimated 28% of all showings are on properties over $300,000. Buyers seem to be predominantly corporate officers coming from tech industries that are consolidating locations. USAA closed its Sacramento office and is relocating its department heads here. Military are returning at a steady pace but not making huge impact in the buyer’s market. The builder market is still very quiet.
Larimer County—After increases across the board last week, our Fort Collins office reports steady news this week, though notes that the market continues to "march" forward slowly but surely. While showings were down, we did see a flurry of activity at the end of the month with closed transactions and homes receiving offers. Inquiries about the first time homebuyer tax credit is growing which points to a likely uptick in purchases for the $250,000 and under price ranges this Spring.
Loveland—The Loveland office reports that the market continues to slowly go forward. While showings are down, we did see a flurry of activity at the end of the month with closings and homes going under contract. Inquiries about the first time home buyer tax credit are occurring frequently.
North Metro—Our North Metro office is seeing increased buyer activity, especially since the stimulus package was signed. Many multiple offers on properties priced $250,000 and under. This has resulted in drastically reduced inventory in this category as well as reduced number of days on the market.
Parker—Our Parker office reports that not only buyers but also sellers seem to have come off the fence with the warm weather as an increase of new listings shows. However, since the activity of sales has increased as well, some of the overpriced listings have been taken off the market and the listing inventory continues to decline. It is still too early to call it a trend, but if the current activities continue for a few more months, we believe we may see home prices stabilize soon.
Southeast Metro—Our Southeast Metro office reports the traffic at open houses continues to escalate. We are seeing 20 plus people at most open houses within the energy areas of the city. Homes in good condition and in desirable neighborhoods are selling quickly. As the demand for some neighborhoods increases, we are also seeing sale prices increase over last year.

The news of the week is a breath of fresh air for millions of homeowners and for the real estate sector, it is just what the doctor ordered. It is imperative that we continue to move with speed to make housing more affordable and to help stop the spiral in our housing markets. I believe that this plan will encourage additional loan modifications and will ultimately reduce the foreclosure rate. In the end, this is one—and possibly the most important—way to stabilize prices and once again get us moving in the right direction. Helping families keep their homes is critical, both for the health of our economy and in neighborhoods across the country.

What I am most inspired by is the fact that I really do believe that we are headed in the right direction. On a local level, we’re already starting to feel the initial flow of these benefits. Though I can’t say it is across the board, in general, we are seeing increased floor activity, increased open house activity and buyers are finally getting off the fence and inquiring about the first time home buyer credit, increases in conforming loan limits and seeking counsel on whether or not now is the best time to buy.

I know I say this week after week and while I don’t want to sound too much like a Pollyana, I truly believe that we are well-positioned and poised for a recovery. No, it won’t happen overnight but Obama and his team have made it very clear that they can’t fix this economic crisis without fixing the housing woes and with the recent release of the second half of the TARP funds coupled with the Emergency Economic Stabilization Act and now the Homeowner Affordability and Stability Plan, the housing sector truly is in one of the best positions for a recovery.

Until next week,
Make it a great one,

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

It May Be Time to Get Off the Fence!

2009-02-26T19:32:00.000-08:00

Now that we’ve passed the months of talk regarding the Economic Stimulus Package and the Foreclosure Prevention Plan, we can finally move on. I for one am relieved.

It’s time to get back into a position where we feel secure, where we feel confident and where we can once again make strong decisions regarding our future…and that includes decisions we make about real estate.

Right now what I am finding is that many buyers are on the proverbial fence. They’ve been waiting to see what was going to happen to interest rates. They were waiting to see what the results of the Economic Stimulus Package would be. And so they sit.

Now I realize that every individual situation is different so please don’t take this as a broad based brush that I am painting with, but what I can say is that buyers may truly be in one of the best positions than they have been in some 50 years to purchase a home. Consider the benefits to today’s homebuyer:

New $8,000 first time home buyer credit (and in most cases, the buyer does not have to repay the tax credit).

Reinstatement of FHA, Freddie Mac and Fannie Mae loan limits. These limits were equal to the greater of 125% of the 2008 local area median home price or $271,050 for FHA and $417,000 for Fannie and Freddie, with an overall maximum cap of $729,750.

Historically low interest rates. In my February Reality Check message I shared with you how changes in mortgage rates can affect a consumer’s purchasing power. The fact is, right now interest rates are low—certainly by historical standards—and those low rates translate to increased purchasing power for buyers.

Though we’ve seen decreasing inventory in many of our markets over the last several weeks, we still do have quite a bit of inventory in many markets. This translates to more choices for buyers. We are also anticipating that Spring will bring on a lot of good, new inventory for us and that should bring in a surge of new buyers—for today’s buyer’s, that’s competition for you.

My point in all of this is that you may not want to make the mistake of waiting. Sitting on the sidelines could cost you plenty in terms of higher housing prices, increased competition, fewer choices and higher interest rates. We live in one of the most desirable areas in the world and regardless of the recent slowing in the market, there is still plenty of pent-up demand. Even the most pessimistic analysts aren’t predicting a decline in home prices, simply a slowing of appreciation rates.

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

Boulder—Our Boulder office reports that both showings and listings are up dramatically with new listings up 133% week over week. Sales are holding steady but Agents are reporting that several listings that have languished on the market for months are now selling or getting increased showing activity. Our Longmont office reports that it had some great news this week including a big headline in the local paper that read, “Fewer Homes for Sale in Longmont.” The number of homes for sale decreased by more than half in the past two years. This is good news and hopefully a trend in the right direction. We are experiencing quicker turnaround time from banks on short sales, some are servicing cash deals in a separate department. We expect this to keep those cash buyers intact and get the deals done as quickly as possible.

Conifer—The Conifer office reported decreasing inventory with increased showing activity. If this becomes a trend, it could be a good sign of stabilizing prices. We had just one new listing this week and one go under contract. There were 47 showings for the week.

Evergreen—The Evergreen office reported that we had steady listing inventory and sales activity for the week though showing activity was on the rise. We had a total of five new listings for the week and one buyer that went under contract. There were 74 showings for the week plus eight Agent previews.

Denver Central—Our Denver Central office reports that energy is still good though contracts have slowed a little. We are starting to see increased interest in our high-end properties including both buyers and sellers. This is a good indication that buyer confidence is coming back. Short sales are still prevalent and banks are still open to negotiation and are responding quickly.

Devonshire—Our Devonshire office reported that showings were down somewhat this week. We had a big surge in price reductions and offers on properties. We still have pent up demand for buyers looking in specific areas. One of these is the south area with Cherry Creek schools. We have had lots of listing appointments and sellers are moving back into the mindset that it is indeed time to put their homes on the market. We see positive things happening as we move into Spring.

Douglas County—The Southwest Metro office shares that this past weekend was the best since early Fall of 2008. Our buyers are buying and homes listed in the $250,000 range are going quickly. Our mortgage rep has nine deals closing this week. We had several double enders from open houses and from call nights we are seeing an increase in listings for next month.

El Paso County—Our Colorado Springs office reporting decreasing listing inventory and sales activity though showing activity was steady. This market is seeing a bit of a change with many sellers in a wait and see mode. The economic articles locally are showing growth in the area. The military returning shows only about 10% are potential buyers with most of that 10% going into rentals instead.

Elbert County—Our Parker office reports that it seems as if buyers are trying to figure out the effect of the stimulus plan. Although showings have increased, the amount of offers has gone down slightly since last week. Also, there are a number of buyers that are still waiting for lien holder approval on short sale offers. The inventory continues to decrease slowly, however it is too early to call it a trend since many of the listings going off the market did not sell.

Larimer County—Our Fort Collins office is seeing increases across the board. With the recent passage of the Economic Stimulus Package that includes an $8,000 tax credit to first time home buyer, is already showing its signs of a positive trend upwards. Enterprise Car Rental also announced the relocation of its regional claims center to Fort Collins. This will provide upwards of 100 local jobs to the area. While the environment remains challenging, Fort Collins and Northern Colorado remain top contenders for emerging from this economic downturn earlier than other parts of the country.

Loveland—The Loveland office reports a tremendous turnout to the Loveland Luxury Home Tour last weekend which shows that clearly many people are interested in seeing what is on the market in the upper-end. We had 11 homes hosted open with over 300 people on tour. The properties on the tour were lakefront and foothills homes priced from $600,000 to $1 million+. Activity remains on an upward trend and thanks to the terrific weather, we are seeing more and more showings being scheduled during the week.

North Metro—Our North Metro office is seeing many homes in the upper price range facing short sale or foreclosure. It will take some time to work through this. Buyers are able to purchase some very special homes at very special prices in our area. Showings are increasing steadily and contracts are beginning to be approved by the banks. If you are considering buying your dream home, now may be the time.

Southeast Metro—Wow! We crossed the 500 mark for showings last week and scheduled 560 showings. This activity is unheard of in February. I’m told that traffic through open houses is unbelievable. We are on track to close over 100 transactions this month.

The lesson I’d like to leave you with this week is that waiting for the real estate market to hit rock bottom may be a mistake. The only way to know that the market has “hit rock bottom” is when it is on its way up and by then, the window of opportunity is gone.

The current housing market offers a unique window of opportunity for confident buyers. The exciting news is that for the first time in quite a while, the stars are in alignment for consumers: mortgage rates remain low (certainly by historical standards), loan limits have been raised, there is an $8,000 first time home buyer credit and there is a large selection of homes to choose from. Now truly may be the time to buy and you may not want to make the mistake of waiting; because my guess is that if we were able to jump ahead 10 years from now, we’ll be looking at this market as a thing of the past—a time when we all probably should have been buying a lot more real estate.

Until next week,
Have a great one,

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

New Legislative Action…May We Finally Restore Consumer Confidence

2009-02-19T20:17:00.000-08:00

It was a week full of stories and reports, both from the cynics and proponents of the American Recovery and Reinvestment Act of 2009. The $780 billion package was signed into law on February 17 and truly is the largest, most unprecedented recovery act in history.

The provisions of the bill were changing even up until hours before the House and Senate voted on the bill, but the final provisions were recently posted to NAR’s website. Click here to access the details and learn more about the housing elements that were included: http://www.realtor.org/government_affairs/gapublic/american_recovery_reinvestment_act_home?lid=ronav0019

Also announced this week was Obama’s $75 billion foreclosure prevention plan. The multipronged plan calls for modifying loans for borrowers both at risk or already in default and for allowing those with little or no home equity to refinance into more affordable loans through interest-rate reductions.

Click here to read the details of the prevention plan: http://www.realtor.org/RMODaily.nsf/pages/News2009021901

Obama’s administration said Wednesday that this prevention plan will help up to nine million people avoid foreclosure, by providing government funds to provide incentives to borrowers, loan servicers and mortgage investors to modify loans to affordable monthly payments.

I know many are wondering if this new program will help them. Official guidelines of the plan won’t be unveiled until March 4, at which time we will focus our March Reality Check on the details of the plan and how consumers may take advantage of it. In the meantime, I did find this article on CNN.com which may help in educating yourself: http://money.cnn.com/2009/02/18/real_estate/Obama_foreclosure_plan/index.htm?postversion=2009021911

I realize this is a highly debatable topic right now but what is not debatable is the fact that in order to fix this housing crisis, we must stop foreclosures. Real estate is 20% of the gross domestic product in this country. The only way to fix 1/5 of this country’s GDP is to stop falling home prices and the only way we will do this is to stop people from loosing their homes. This prevention program should help millions of people stay in their home and will hopefully get our country back on track.

The fact is, when consumers feel safe in their homes, feel safe in making their payments and once again feel confident that they will continue to have a roof over their heads, they will begin to put their money back in the economy. They’ll begin to make home improvements. They’ll begin to feel more confident in their future and that consumer confidence will begin to trickle into all areas of our economy. From home improvements to car purchases to vacations—and the jobs and associated spending that these create. What we know is, when consumers feel confident, they spend.

Now I realize for many that statement conjures up far too many negative emotions from the recent past—people who are living beyond their means simply because they think their house is going to appreciate. Fortunately this plan and that of the American Recovery and Reinvestment Act of 2009 provide stipulations that we hope will stop history from repeating itself. Couple that with the fact that lenders have become far more conservative in their lending practices, we should finally be on a level playing field that will safeguard against such an issue.

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

Boulder—Our Boulder office is reporting very little change from the last week. The increased rate of showings is holding steady and Agents are reporting buyer activity but not big up tick in contracts. My sense is that we’ve been in a holding pattern until these two legislative initiatives were passed and now that we finally have the action, we should begin to see buyers enter back into the marketplace and those contracts begin to close. Our Longmont office reports that showing activity was up significantly this week. Open houses are seeing more activity. The investor buyer is still looking for the great deals. The rental market is particularly strong. We are seeing a decline in available inventory. Longmont seems to be the most reasonable place in Boulder County to buy/live. First time buyers are becoming more active which will eventually trickle into all price ranges.
Clear Creek County—Our Evergreen office is reporting that we had a total of six new listings for the week. On the flip side, only one buyer went under contract on a short sale property. We had 69 showings for the week plus six Agent previews. Our open house activity was down from the previous weekend (due to the holiday). However, new listings in Sloans Lake brought 15 potential buyers through on Sunday.
Denver Central—Denver Central is reporting that short sales are picking up and banks are responding faster with offer approvals than they did this time last year. An interest fact is that 10% of our sales are multiple offers—most of which are related to bank owned properties. We are seeing an increase in the average sales price. Energy is still good and our Agents are increasingly busy which is a positive sign.
Devonshire—Our Devonshire office reports steady figures across the board: listing inventory, sales activity and showing activity. We had three multiple offer situations this week—two of which we won. Our inventory is going down in the central Denver area and prices seem to be stabilizing.
Douglas County—Our Southwest Metro office is reporting that showings were down for the three day President’s weekend. That said, Agents did hold open houses and had on average 8-12 groups of people come through. First time home buyers have been awaiting the stimulus package to come through and now that it has, we should begin to see fence sitting buyers come back into the marketplace.
El Paso County—Our Colorado Springs office notes that Lockhead Martin and Northrop/Gruman both increased Southern California transfers to Colorado Spring. Fore Credit in Phoenix closes the end of February and had 100 transfers that are now coming into Colorado Springs. Builder activity has picked up on the five acre spec home business. Homes in the $300,000 plus range have showed significant increase in buyer showings.
Elbert County—Our Parker office reports that although the number of new listings is still higher than the number of listings going off the market under contracts, the total inventory is coming down consistently because many of the listings that shouldn’t be on the market are being withdrawn or expire. As a result, we see a higher percentage of listings actually selling. Prices are slowly becoming stable in the Parker area while property values are still decreasing in the outer areas.
Jefferson County—Our Conifer office reports one new listing this week. Two listings went under contract. One REO property had multiple offers and went under contract above the list price. Two additional offers on REO listings that we received are currently waiting for bank approval. Showing activity continues strong with 39 showings during the week.
Larimer County—Our Fort Collins office reports that all indicators show increases across the board this week. Our showing activity was at 189 showings and reports from the field are that buyers are out looking at property—lots of it. Buyers are requesting to see virtually all inventory in a given price range. I spoke with one Agent who showed over 20 properties in one day to a single buyer. With the recent passage of the Economic Stimulus Package that includes an $8,000 tax credit to first time home buyers, it should be a terrific incentive for those who may have been waiting. Permits for new construction remains at an all time low. Builders remain aggressive to sell inventory. With limited new construction inventory available, very small up tick in demand to see competitive pricing structures disappear especially in new highly desirable areas, like Timnath Ranch.
North Metro—The North Metro office is seeing a rapid increase in showing activity. Last week several properties went under contract all at once as banks made decisions on offers. Our listings have slowed down slightly, but certainly not enough to be a trend. We look forward to having more showing activity and closing contracts in the coming weeks.
Southeast Metro—Our Southeast Metro office reports that in addition to the several multiple offers on bank inventory, the office had an additional six multiple offer situations. Brokers are very busy with first time home buyers and inventory in the $200,000 to $250,000 price range is moving quickly. We are gearing up to have a great Spring.

Of course time will only tell if all of this legislative action will work and we’ll only know if it does when we are able to reflect on it a year, two or even three down the road. But the fact is we’ve been in a holding pattern for far too long. And our economy, country and people have struggled and lost far too much because of it. The recent passage of these two very important housing initiatives—which include (among other things) the $8,000 first time home buyer credit and the increase in conforming loan limits—should finally put us on the road to recovery.

Until next week,
Have a great one,

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

It Passed! Now What?

2009-02-13T16:14:00.000-08:00

A compromise on the Economic Stimulus Package has been reached. The new price tag: $787 billion. That’s below both the $820 billion House-passed version and the $838 billion Senate-passed version.

Just like with anything in life, the final package is all about compromise. Real estate advocates from NAR and Realogy President Richard Smith lobbied well on our behalf but in the end only a portion of the requests we had of lawmakers were made part of the final Economic Stimulus Package.

I am encouraged that lawmakers have now reached an agreement and we can finally move forward with some direct action.

The goal of the highly controversial Economic Stimulus Package is to create or save some 3.5 million jobs while helping to rebuild our nation’s economy which has been in a recession since December 2007. Although, at writing of this piece, the details of the legislation had not been finalized we do anticipate a number of important housing provisions, including (as reported by NAR):

“Homebuyer Tax Credit – a $8000 tax credit that will be available for qualified purchase of a principal residence by a first time homebuyer between January 1, 2009 and December 1, 2009. The credit does not require repayment. Individuals who purchase in 2009 using financing assistance from state and local mortgage bonds will be permitted to use the credit, as well. Click here for a chart with details on the first-time home buyer tax credit: http://www.realtor.org/wps/wcm/connect/b32db1004d05f6338052c5fd73e5610f/government_affairs_tax_credit_chart_021308.pdf?MOD=AJPERES&CACHEID=b32db1004d05f6338052c5fd73e5610f
FHA, Fannie and Freddie Loan Limits – Revised loan limits for FHA, Freddie Mac, and Fannie Mae. Specifics have not been released but reports indicate that the 2008 limits have been reinstated for 2009 except in those communities where the 2009 limits are higher. Additional increases in individual communities may also be available at the discretion of the HUD Secretary.
Foreclosure Mitigation & Neighborhood Stabilization – Funding for states and local communities to be used for neighborhood stabilization activities for the redevelopment of abandoned and foreclosed homes are authorized.

In addition to these new elements, NAR continues to work with the Department of Treasury to implement a mortgage buy-down program. The details on that will surface over the next several weeks.

To view all of the housing provisions, click here: http://www.realtor.org/government_affairs/gapublic/uae_hr1_additional_provisions

So what’s next? President Obama is pushing to get quick approval of the emergency package so he can sign it into law before the end of this three-day holiday weekend.

Once it is signed into action, Washington is eager to get the funds into the local state governments and ultimately the local economies so they begin to directly affect Main Street. Consider reading this article from CNN with more details on the package itself: http://money.cnn.com/2009/02/13/news/economy/stimulus_individuals/index.htm?postversion=2009021308

There’s no question, it will take several weeks—if not months—before we begin to see some patterns or trends and for this package to have a full impact on our economy. But I am gratified that the government recognized the importance of passing the Economic Stimulus Package. The health of the nation’s housing market is critical to the financial well being of every household in the country and that, of course, is front and center right here at home. I believe the legislation will help to stabilize the housing market, at a time when our country needs it most.

With this news in tow, let’s take a look at this week in real estate:

Boulder County—New listings in the Boulder market are up 25% week over week, with sales up slightly. The best news is that showings are up sharply, with nearly twice as many showings in December. The higher rate of showings is holding steady for the first week of February. Several Agents who have had listings languishing for several months report that they are now going under contract. Most of this activity is in the lower 1/3 of our price range.
Colorado Springs—The high-end market is slow due to jumbo loan requirements—though now that the Economic Stimulus Package has passed that may change. Sales of properties under $150,000 are up compared to a year ago. Foreclosures among military is a real concern as 1/3 of returning military are home owners. Vacancy on rentals is now at 10%. Listings are down about 9% over last year.
Conifer—We had four new listings during the week, while our sales activity was on the decline. We had no new contracts this past week. We’re still awaiting short sale approval on one contract. Showing activity continues strong with 37 showings during the week. The buyers are out there. They are just sitting and waiting.
Denver Central—We are following much of the same trend—great activity in showings and listings. We feel confident that contracts will follow. We are seeing increase movement in higher-end homes and buyers showing us that consumer confidence is growing.
Devonshire—This has been an interesting week for Devonshire as the number of new listings is down and showing activity is up. With this scenario we should see prices holding steady. As more of our current inventory is sold, our market will begin the upsurge that we are all looking forward to. The spring season should bring good buyer activity and sellers that have been in the wings putting their homes on the market.
Evergreen—Our Evergreen office reports a total of eight new listings for the week while three of our listings went under contract and three buyers went into contract. We had 50 showings for the week. A new listing in Sloans Lake had 12 showings in the first week plus 30 potential buyers through on Sunday.
Larimer County—Our Loveland office is reporting good news. Showings are up and we’ve seen an increase in homes going under contract and an increase in open house activity. This continues to play out the forecast that there is pent-up demand in the market as more consumers realize now may be a great time to buy. Existing inventory will continue to decrease until we get closer to April.
North Metro—The North Metro office continues to take significant numbers of listings in all price ranges. We are still patiently waiting for bank approvals on REO and short sale properties. However, many buyers are beginning to realize their increased purchasing power with lower interest rates and our Agents are showing a lot of property to qualified buyers. (As an aside, this reminds me, did you read this month’s Reality Check message? It is completely focused on how changes in interest rates may affect a buyer’s purchasing power and it would be a positive tool to share with your clients.) Sellers are showing great interest in pricing their homes to sell which is a welcome trend for our market.
Parker—Parker and Central Douglas County still show an increase in activity. Showings are up substantially and we are getting more new listings in as well. We had a number of multiple offers on Power Priced Listings which are not limited to bank-owned or short sale properties. The outer areas of Douglas and Elbert counties are still slower, especially above $400,000. We do not expect those markets to show any major signs of improvement in the immediate future.
Southeast Metro—Showings for our Southeast Metro at DTC office have been steadily increasing as we are close to 500 showings a week. Finally buyers are coming off the fence. The best example of this is a multiple offer situation on a listing that went on the market last July. Several showings and multiple offers later, this property is now under contract well above the list price. With over 100 properties scheduled to close already this month, the office is predicting a strong 2009.
Southwest Metro—Agents are starting to get excited about the year. Floor calls are on the rise. Agents are getting calls from their sphere regarding the market and whether or not now is a good time to buy. It seems like some buyers are finally getting off the fence.

What I’d like to leave you with this week is this: it’s time to get in a position of optimism. We are in a great position for a turnaround. But we also must understand that this isn’t going to be an easy road. The road we took to get here wasn’t easy and the road ahead may be a challenge. But the up side is that we are on the road to recovery. Our market has been in neutral for some time and now it is time to put it in drive. The Economic Stimulus Package. The release of the second half of the TARP funds. These are all things that can and should help. Now it is up to our economy to do the rest.

Let’s watch as the details unfold over the next few weeks and we’ll wait to see whether the $787 billion in aid is our nation’s answer to prosperity. All we can do is hope and remain optimistic.

Until next week,

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

Economic Stimulus Package Could Bring Big Benefits For Real Estate Sector

2009-02-05T21:26:00.000-08:00

If you tuned into CNN, Fox News or any of the other major news media outlets this week, you likely watched the drama unfold regarding the new Economic Stimulus Package which is currently making its way through the Senate. This controversial package has many speculating as to its legitimacy but is being driven by President Obama in an effort to jump-start our ailing economy.

To learn more about the status of the Economic Stimulus Package, click here:

http://www.reuters.com/article/politicsNews/idUSTRE5136U320090204?virtualBrandChannel=10112

As of now, the Economic Stimulus bill is winding its way through the U.S. government, pushed by Demographic leaders who want to present President Obama with legislation he can sign by-mid February.

From a real estate perspective one of the biggest potential benefits of this Economic Stimulus Plan is special Amendment #353 to the Plan, a provision for the Federal Government to buy-down mortgage rates to 4.5% or less for a 30-year fixed rate loan for the purchase of a primary resident. Without question, a 4.5% or lower, 30-year fixed rate mortgage would help stimulate housing sales and would also open the door to hundreds of thousands of new potential buyers by greatly improving housing affordability.

While the Economic Stimulus Package makes its way through Washington, real estate sales continue to show new signs of life. Just this week, NAR released its pending home sales report noting that pending home sales rose 6.3 percent nationally to 87.7 from an upwardly revised reading of 82.5 in November and is 2.1 percent higher than December 2007 when it was 85.9.

Also noteworthy this week was an article I came across on Reuters.com (http://www.reuters.com/article/newsOne/idUSTRE5140H420090205) which points out that housing markets across the country may be nearing bottom and we should begin to see signs of new life by the 4th quarter of this year. Among the highlights of the article:

"More than three years since the market began correcting, inventories are flattening, prices are coming back down to earth, and sales are approaching stability," the report said.

“The outlook, however, assumes stronger action by U.S. policymakers and says that even with further government intervention, the recession will keep the housing market from fully recovering until the end of this year.”

“With this help, sales are probably at bottom, stabilized by foreclosure sales, while construction will hit bottom in the first half of this year, although the pace of housing starts will remain very depressed until 2011.”

The coming week will likely be an interesting one in Washington, D.C. as lawmakers make the final decisions on the Economic Stimulus Package. It will be exciting to see the details unfold and the plan take shape as lawmakers work to quickly restore our ailing economy.

Locally, we’re seeing some interesting trends. As we continue to work through our bank owned properties, it is a welcome sight to finally see banks responding to short sale offers. Couple that with the fact that with interest rates so low, buyers—especially first time home buyers and some investors—are finally beginning to feel the need to come off the fence and take action. The hardest hit markets are new construction and the upper end. Both are nearly at a stand still though as prices begin to stabilize and we finally weed through the bank owned properties (later this year), we should begin to see a domino effect that ultimately benefits all price ranges.

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

Boulder County—The Boulder office reports that listing inventory, sales activity and showing activity are all steady, though activity in the below $500,000 range has been much more active than the higher price ranges. Well-priced foreclosures are commonly drawing multiple offers and we’ve seen a notable uptick in first time home buyer interest.

Colorado Springs—The Colorado Springs office is reporting an interesting trend noting that military are returning at a steady pace. The Space Command Center at Schriever Air Force Base continues to expand bringing more transfers from California. Since the closing of John Lang Homes, new development in the area is now very quiet.

Conifer—The Conifer office reports increases across the board including listing inventory, sales activity and showing activity. This week we listed a new subdivision in Conifer with six lots priced at $250,000 each. We saw some good sales activity including four offers on our listings, three are short sales and we are awaiting bank approval. We also submitted two offers on behalf of buyers and are awaiting responses from the sellers. Showing activity continues to be strong with 29 showings and four Agent previews during the week.

Denver Central—The Denver market is still holding steady. We are seeing 5-7% of our deals going into multiple offers, thanks in large part to REOs and short sales. With interest rates at all time lows, many buyers are making their move. Listings are up but we are still seeing more buyers. Last week we had one non bank owned property that had three multiple offers. The lesson: when priced right, they sell.

Devonshire—The market is positive right now. There is good energy with lots of showings. Buyers are beginning to realize that with interest rates at such great levels and inventory decreasing, it’s time to get out and find a home. Open houses are busy. In this market it is especially beneficial for sellers to work with full-time, knowledgeable professionals who are on top of trends and current market conditions.

Evergreen—Our Evergreen office reports a good, solid week with four new listings. We also had two of our listings go under contract. There were 36 showings plus seven Agent previews for the week making a total of 180 showings for the month.

Larimer County—Our Fort Collins/Loveland office is reporting decreasing inventory along with steady sales activity. The Loveland market remains slower but steady given the season. In Fort Collins, showings are heading upward and many home owners are taking advantage of ultra low interest rates and the opportunity to refinance. Inventory levels continue to fall as fewer listings are taken. We are anticipating a very strong Spring selling season when demand for move-in ready homes that can close quickly increase substantially. The new construction market is at a stand still. There are very few new permits being issued. This will assist in keeping inventory levels reduced and will keep a balance between supply and demand.

North Metro—The North Metro office is noting huge leaps in listing inventory and showing activity. Many of our Agents are currently in multiple offer situations with their buyers. The reason contracts are down this week is that we are waiting on banks. Once these break loose we should see a real spike in sales. We had over 80 properties come on the market. Showings are way up. We expect many contracts in the coming weeks. It’s an exciting time at the North Metro office!

Parker—The Parker office is reporting a temporary slight drop in sales activity, mainly because many of the bank owned properties have sold. Showings are still increasing. Activity is up throughout the lower and mid price range as well as on investment properties. Upper price range inventory ($600,000 and up) is still increasing about 10% per month. This effects total inventory numbers. Short sales are still on the rise and we have formed a short sale expert team to help those needing assistance in that area.

Southeast Metro—The office is busy with showings and Agents are reporting great activity at open houses. One Agent had more than 30 visitors at a single open house. We have taken 92 new listings this month and many of our current sellers are repositioning their properties as a result of experiencing increased activity. We are seeing multiple offers though typically on bank owned properties.

Southwest Metro—Our Southwest Metro office is reporting steady listing inventory and sales activity despite the fact that some buyers are weary due to big layoffs that were announced this week. But these announcements haven’t really slowed down interest level. Showing activity is up. One Agent had three successful buyers and one is closing next month. Another had three buyers who called this week saying they are finally ready.

My overall assessment of the market this week is that buyer interest is up. It seems buyers are finally realizing that with today’s low interest rates and generous amount of inventory—including a large number of bank owned properties—they may be in a very strong position and in all likelihood, can afford a lot more home than they could’ve a year ago, or even six months ago for that matter.

Next week I will release my February Reality Check which will focus on interest rates and how they may affect a buyer’s purchasing power. I trust this will be helpful in educating our clients on why now truly may be the best time to buy.

Until next week, make it a great one,

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

Is It Too Early to Call It a Trend?

2009-01-29T20:52:00.000-08:00

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!

2009-01-23T10:42:00.000-08:00

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

2009-01-15T20:43:00.000-08:00

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