If you’re a current Denver homeowner looking to refinance or a potential Denver home buyer, the labor market has just given you something to smile about.

The recent Jobs Report confirmed that job numbers have gone up and the unemployment rate has gone down. More than 257,000 private-sector jobs have been created since the previous Jobs Report, and the Unemployment Rate has dropped by 0.2 percent landing at 8.3 percent—the lowest rate since February 2009.

And according to the Commerce Department, December personal incomes jumped up 0.5 percent, which was higher than expected and a vast improvement over November’s 0.1 percent. In fact, this is the largest increase in the past nine months.

So how does all this help with home buying and refinancing for Denver residents? Although it’s been one step forward and two steps back at times the labor market is slowly improving, giving people confidence that their employment won’t be pulled out from under them.

Combine this job confidence with interest rates that are still at near-record lows and you have a good scenario for folks to think about (and possibly make) larger purchases such as a home or a home refinance. And once the trend starts, more people will opt in causing prices to rise.

So now really is a great time to buy or refinance a home, and lenders are ready and waiting. If you act now, you’ll likely save yourself lots of money and get your pick of the many beautiful Denver homeson the market.

Let the professionals at the Bandy Team help you buy or sell a Denver home, contact us for a no-obligation consultation. If you’re thinking about buying a home in Denver, we can show you some terrific properties in Denver, including homes in Denver Highlands and real estate in Washington Park (also known as Wash Park). You may also be interested in horse property in Franktown or homes in Parker, including a wide variety of homes in Canterberry and real estate in Stonegate.

Marianne Bandy

Denver Relocation

If you’re looking for a great place to buy or invest in real estate, head straight to Denver, Colorado says Greg Rand, CEO of OWNAMERICA. Appearing recently on the FOX Business Channel, Rand discussed all the things that make Denver the choice of both real estate owners and investors for 2012 and beyond.

Living in Denver offers a quality of life that is drawing people in droves from the northeast, southeast and California to name a few. It has a low cost of living and a high quality of life that includes fresh air, outdoor sports, and a stable, young population with an average age of 31.

The city’s foreclosure rate is half the national average, and the 7.8 percent unemployment rate also sits well below national numbers. There’s been little over-development in Denver and it is home to nine Fortune 500 companies. The median Denver home price is $244,100 and the per capita income $29,844.

But according to Rand, what really “draws people like a magnet” to relocate to Denver is a very stable housing market which has not collapsed in the past 15 years. This stability, combined with some general housing shifts and all of Denver’s other assets, has also attracted the particular attention of Real Estate Investment Trusts or REITs, companies that use pooled money from investors to invest in real estate.

As homeownership in general has dropped, the demand for rentals has begun to grow and caused rents to rise. This in turn has driven up the values of apartment complexes because their value is based on rental rates. However, prices of single-family homes, two-to-four family homes and condos are going down. Rand believes that this will move both public and private REITs to invest billions in the single-family housing market in 2012—and homes in Denver will be of prime interest.

So if you want a fantastic place to live, great investment opportunities—or both—Denver should be at the top of your list.

To see the entire interview with Greg Rand on FOX, go to http://www.youtube.com/watch?v=Y9frmEv-vPA&feature=share.

Let the professionals at the Bandy Team help you buy or sell a Denver home, contact us for a no-obligation consultation. If you’re thinking about buying a home in Denver, we can show you some terrific properties in Denver, including homes in Denver Highlands and real estate in Washington Park (also known as Wash Park). You may also be interested in horse property in Franktown or homes in Parker, including a wide variety of homes in Canterberry and real estate in Stonegate.

Marianne Bandy

Denver Relocation

Market Metrics:

The name of the game as we enter 2012 is INVENTORY! Take a look at these numbers for 2011, and you will see many categories were very similar to 2010, but the inventory numbers are the first signs of the changing market!

Active Listings inventory continues to decline 13% month over month and 40% year over year.  Under Contract activity and Closed Transactions activity remain at seasonal levels with a continual decline month over month.  The New Year starts with renewed hope that 2012 will be better than 2011 and the indicators are pointing that way.

December Monthly Market Recap:

December Year-to-Date Market Recap (2011 versus 2010):

Days on Market:

By definition, Days on Market is calculated as the number of elapsed days from the original listing date to the status change date.  Therefore if a home is listed for sale on January 2^nd and the seller(s) accept an offer on January 22^nd, the Days on Market for this property is 21 days at this point in time. 

Days on Market is one of several metrics that are used to follow the market trends.

Remember - Real estate is local.  While the above is a representation of the Denver market as a whole, please contact me to better understand your specific real estate market.

Advice to Sellers:

Welcome to 2012!  What changes can one expect in 2012?

The year will start with the lowest inventory of unsold homes in more than a decade.

New home builders will have new models emphasizing efficiency, lifestyle, and a smaller footprint.  For some sellers, this will be competition that has not been seen for several years.

External influences will continue to impact the market; such as employment, the economy, and consumer confidence.

As a home seller, one must keep in mind that with the beginning of 2012:

• Housing will be on the minds of many, because lots of people will be seeking housing.
• Rising rental rates will cause more to look at home ownership.
• Low rental vacancy rates will cause more to look at home ownership.
• Historically low mortgage rates will cause more to look at home ownership.
• Overall, affordable housing prices will cause more to look at home ownership.

Is it a good time for your home to be on the market?  With the incredible low inventory of houses for sale, home sellers should consider putting their home on the market now to avoid more competition later in the spring. Contact me to discuss the options available to sell your home during 2012.

Advice to Buyers:

The number of active listings, those homes available for sale, continues to be the lowest it has been in years.  Prioritize your needs and wants, look at what is available in the market, and be prepared to be flexible as you look at homes. 

The low inventories of houses for sale, especially in the under $300,000 price, will cause prices to increase in the spring and summer, as more buyers hit the market in the traditional heavy buying season.

Total single family homes sold in 2011 was up 2% from 2010, which reversed a trend of declining sales for the first time since 2005.

Rents continue to rise in the Denver market as the inventory of rental properties remains tight.

Talk to me today about your Lifestyle Preferences, the benefits of home ownership, and home affordability.

Let the professionals at the Bandy Team help you buy or sell a Denver home, contact us for a no-obligation consultation. If you’re thinking about buying a home in Denver, we can show you some terrific properties in Denver, including homes in Denver Highlands and real estate in Washington Park (also known as Wash Park). You may also be interested in horse property in Franktown or homes in Parker, including a wide variety of homes in Canterberry and real estate in Stonegate.

Marianne Bandy

Denver Relocation

Chances are good that potential home buyers have viewed a lot of properties in Denver. They’ve seen nice paint, great hardwood floors—and clutter. How they feel about that clutter will depend on why they want a home.

Buyers hunting for a bargain or looking for a resale investment might find the clutter exciting. Cluttered homes don’t “show well” in most cases, so the buyer might be able to pick up the property with a below-value offer.

It’s the same for buyers trying to find their first Denver home. Clutter makes a statement that this property could be purchased for a price within their existing budget or possibly for even less.

Those who seek their “forever home” will translate clutter to mean lots of cleaning once they move in and a good deal of maintenance thereafter, and this will likely kill their interest in buying it.

Denver home sellers need to remember that a cluttered property spends more time on the market and often sells below value. Clutter can decrease a buyer’s perception of size, air and light within the home and also suggests that it has not been well-maintained.

To really grab the interest of Denver home buyers, get rid of the clutter before you start showing your property. Put things in boxes and store them in your neighbor’s garage or in a local storage unit. Have your agent help you find a professional stager to make the home really stand out.

Remember the seller’s golden rule: clean, neat homes sell faster and for a higher price no matter what the perspective of the potential buyer.

Let the professionals at the Bandy Team help you buy or sell a Denver home, contact us for a no-obligation consultation. If you’re thinking about buying a home in Denver, we can show you some terrific properties in Denver, including homes in Denver Highlands and real estate in Washington Park (also known as Wash Park). You may also be interested in horse property in Franktown or homes in Parker, including a wide variety of homes in Canterberry and real estate in Stonegate.

Marianne Bandy

Denver Relocation

Many people were happy to close the books on 2011. But while the year is gone, its impacts on the housing market will continue well into 2012 and possibly longer. Here is a recap of five 2011 events that homeowners in Denver and across the country will need to keep an eye on.

Robo-Signing Reverberations – In 2010, some banks were accused of approving foreclosures without proper or complete documentation. In 2011, potential lawsuits made banks slow or stop their foreclosure processes, leaving affected homeowners hanging in limbo. It’s expected that settlements will begin in 2012, with a potentially large number of foreclosures to follow.

Budget Deficit and Debt Ceiling Debates – This one was hard to miss even if you’re not a Washington-watcher. While nothing major was really accomplished in 2011, this year could be different. Both parties agreed that more income could be gained by reducing tax deductions on things like mortgage interest. If you own a high-income property in Denver, this will cost you a lot more in taxes if it passes in 2012.

Home Affordable Refinance Program (HARP) – Under this program, homeowners seriously underwater on their mortgages would be able to refinance—if they were current on their mortgage payments. However since most underwater homeowners are behind on their payments, they won’t qualify for a loan modification. Critics say this is just a way to stimulate the economy without Congress having to create its own plan, which they probably couldn’t do anyway.

Flood Insurance Woes – Ever since Hurricane Katrina, the National Flood Insurance Program (NFIP) has been struggling under massive debt. As a result, their insurance premiums don’t fully cover current disaster claims. Flood insurance through NFIP is the only way to get a mortgage in a flood-prone area; if NFIP collapses from debt, home construction in Denver and other flood plains would stop indefinitely. The program has received funding through May 2012, but it’s unclear what will happen after that.

Lower Conforming Loan Limits – In October 2011, upper loan limits were reduced for mortgages with Fannie Mae, Freddie Mac or the Federal Housing Administration. This was done to reduce the number of loans that qualify for federal backing and in theory make the housing market less dependent on the federal government. But in November 2011, the limit was pushed back up for FHA loans and in 2012 Fannie and Freddie may follow, bringing us back to square one.

Despite the information above, there are still many hopes for what 2012 will bring for the housing market and the overall economy. What’s important is to be aware of issues that could have a negative impact and then take the proper precautions. As the saying goes, knowledge is power.

Let the professionals at the Bandy Team help you buy or sell a Denver home, contact us for a no-obligation consultation. If you’re thinking about buying a home in Denver, we can show you some terrific properties in Denver, including homes in Denver Highlands and real estate in Washington Park (also known as Wash Park). You may also be interested in horse property in Franktown or homes in Parker, including a wide variety of homes in Canterberry and real estate in Stonegate.

Marianne Bandy

Denver Relocation

Market Metrics:

The inventory of active listings at November month end hit a new low at 12,634 units, a decline of 11% month over month and 37% year over year.  Buyer demand continues steady at a seasonally adjusted rate for the holiday season.  Declining supply and steady demand could indicate that we are poised for firming prices in the next six months.

Monthly Market Recap:

November Year-to-Date Market Recap (2011 versus 2010):

Average Price versus Median Price:

By definition, Average price is derived by adding all of the individual home sales prices to get a total sales volume ($) for the period.  The total sales volume ($) is then divided by the number of sales transactions which results in the Average Price.

By definition, Median Price is derived by ranking the highest individual home sales price to the lowest individual home sales price.  The point where one half of the transactions are either above or below this price is known as the Median Price.

Real estate is local.  While the above is a representation of the Denver market as a whole, please contact me to better understand your specific real estate market.

Advice to Sellers:

Don’t wait until Spring to put your property on the market. There is a shortage of inventory NOW, especially for nice properties, well prepared for market and priced appropriately.

And you should keep two items in mind.  One point is that the home must be kept in “ready to show” condition. The second point is that more interior photos are needed for marketing to prospective Buyers.

Is it a good time for your home to be on the market?  Contact me to discuss the options available to sell your home during the first part of the year.

Advice to Buyers:

The number of active listings, those homes available for sale, is the lowest it has been in years and interest rates are at an all time low.  Therefore, the serious Buyers now have fewer homes to choose from. When you see a property that works for you, make an offer, don’t wait. We are no longer in a “Buyer’s Market” and are rapidly shifting to a “Seller’s Market”. You need to know that what’s happening nationally is not what’s happening in the Denver Metro market. Call me to discuss how to make an appealing and as strong and offer as possible in this shifting market .

Rents continue to rise in theDenvermarket and home prices continue to stabilize.

Give me a call today to talk about your Lifestyle preferences, the benefits of home ownership, and home affordability.

Until next time,

Marianne Bandy

www.BandyHomes.com

303-746-7799

Denver Relocation

Let the professionals at the Bandy Team help you buy or sell a Denver home, contact us for a no-obligation consultation. If you’re thinking about buying a home in Denver, we can show you some terrific properties in Denver, including homes in Denver Highlands and real estate in Washington Park (also known as Wash Park). You may also be interested in horse property in Franktown or homes in Parker, including a wide variety of homes in Canterberry and real estate in Stonegate.

If you thought you knew all the reasons why your Denver home has lost value, think again. As the Government continues to investigate the recent housing crisis, they have discovered something rather interesting. A report by the Federal Reserve Bank of New York shows that speculative real estate investors, commonly known as “house flippers,” may have had a larger impact than first thought in the housing bubble that helped create our current economic mess.

When down payments were low, house flippers used subprime credit and relaxed lending requirements to purchase multiple properties in Denver and throughout the country. More than one-third of home mortgages in 2006 were obtained by those who already owned at least one house. In fact, the fastest growing segment of U.S. homeowners between 2000 and 2006 were those owning three or more properties. This buying spree caused prices of owner-occupied single family homes to more than double from 2000 to 2006, particularly in Arizona, California, Florida and Nevada.

However, when home values began dropping, the house flippers began to default in record numbers. In 2006, more than 25 percent of extremely delinquent mortgages in the U.S. were held by multi-home investors. U.S. home values then plummeted below homeowners’ original purchase prices, leading to myriad foreclosures because folks couldn’t—or wouldn’t—pay their underwater mortgages. Residential home construction also fell off at this time causing high unemployment among construction workers.

To prevent future housing bubbles and their disastrous results, the report states that speculative borrowing must be limited by higher down-payments and higher mortgage rates for investment homes. The questionable lending practices of the time made it very easy for house flippers to buy numerous homes, and they simply took advantage of a great opportunity—but no one was minding the store and the result was a huge negative hit to the economy.

Tougher lending requirements along with serious cash investors are helping the hardest-hit states to recover little by little. Hopefully this will work its way into the overall economy to help homes in Denver and across the U.S. to recover their value.

Let the professionals at the Bandy Team help you buy or sell a Denver home, contact us for a no-obligation consultation. If you’re thinking about buying a home in Denver, we can show you some terrific properties in Denver, including homes in Denver Highlands and real estate in Washington Park (also known as Wash Park). You may also be interested in horse property in Franktown or homes in Parker, including a wide variety of homes in Canterberry and real estate in Stonegate.

Marianne Bandy

Denver Relocation

Denver homeowners remodel for many different reasons and justify the expense as an “investment” that will be returned when the house is sold. This, however, does not always come to pass, especially if you do an “over-the-top” remodel.

If you’re planning a Denver home renovation or addition, here are the six projects that generally have the lowest return on investment when the home is sold.

Home Office – Studies show that a home office remodel has the lowest resale value of any project. The average cost for this upgrade is $28,888, but only 45.8 percent of that figure will be returned when the house sells.

If you do create office space in your home, make sure it can be easily changed back into a bedroom, den, or whatever else the space was used for. When selling, don’t call it an office; name it a den, study, or hobby room so potential buyers will see more possibilities in the space.

Generators – A high-quality back-up generator system can cost as much as $14,718 but returns only 48.5 percent of that amount at resale. Since not every Denver home buyer will see the generator as a valuable option, go with a less expensive model that will meet your needs.

Adding a Sunroom – While this can be a way to add space to your home, it will take a huge bite out of your wallet. Sunroom additions on average cost $75,224 and return about 48.6 percent of cost when the home is sold. Do this only if it really improves the overall space and attractiveness of the home.

Master Suite Addition – This is another good way to add more living space, but for high-end work expect to pay $232,062 on average and recoup around 52.7 percent. The room might entice buyers to make you an offer, but it probably won’t include the remodeling costs—especially when they could buy a newer home with similar features and a better layout.

Adding a Bathroom – Expect to hand over about $21,695 to add a moderately equipped bathroom to your home and $40,710 for something more upscale. When you sell your Denver home, you’ll recover about 53 percent of either project. Most buyers don’t feel another bathroom is worth adding $20,000 to their offer. If you can reconfigure your existing space to add that second bathroom you’ll pay less and possibly recover more.

Garage Rebuild – A new detached two-car garage with lots of special amenities can set you back $90,053 and will return about 53.6 percent at resale. Most buyers will not really care about having a decked-out garage and so will not want to pay extra for it.

If you really feel that your Denver home will benefit from a remodel—or if you just want to enjoy your home more—then forge ahead. Just remember that not all renovations are equal in what they will return to you when you sell. To check cost versus value averages for your area go to this website: http://www.remodeling.hw.net/2010/costvsvalue/national.aspx.

Let the professionals at the Bandy Team help you buy or sell a Denver home, contact us for a no-obligation consultation. If you’re thinking about buying a home in Denver, we can show you some terrific properties in Denver, including homes in Denver Highlands and real estate in Washington Park (also known as Wash Park). You may also be interested in horse property in Franktown or homes in Parker, including a wide variety of homes in Canterberry and real estate in Stonegate.

Marianne Bandy

Denver Relocation

You probably think that if you live in Denver or other areas of Colorado, you are safe from the threat of flooding.  After all, Denver gets very little rainfall annually and is 5,280 feet above sea level. Yet over 2000 people in Denver live on a flood plain, and the area has been hit with damaging floods in the past.

The truth is that Denver residents have a greater chance of losing their homes to a flood than to a fire. The Colorado Water Conservation Board states that over the span of a 30-year mortgage, there’s a 26 percent chance that a home will flood but only a 1 percent chance it will burn.

As a Denver homeowner, it’s critical to know your flood risk to determine whether to purchase the necessary insurance to cover damages should a flood occur. FEMA recommends that all property owners carry flood insurance, regardless of their risk.

To that end FEMA offers a free flood map service to let you know whether or not you’re located in a flood zone and what level of insurance protection you need. The site has a tutorial on how to find your location on the map and then how to drill down to your particular flood risk. There are also links to various insurance agents as well as real estate/flood determination agents.

Our homes are susceptible to so many things beyond our control, but knowing the risks means we can take the proper steps to be covered in the event of a disaster. Checking out the FEMA site is a good first step.

Let the professionals at the Bandy Team help you buy or sell a Denver home, contact us for a no-obligation consultation. If you’re thinking about buying a home in Denver, we can show you some terrific properties in Denver, including homes in Denver Highlands and real estate in Washington Park (also known as Wash Park). You may also be interested in horse property in Franktown or homes in Parker, including a wide variety of homes in Canterberry and real estate in Stonegate.

Marianne Bandy

Denver Relocation

If you’re planning any sort of large financial transaction—such as refinancing or buying a home in the Denver area—be aware of your credit score. Higher credit scores can mean a better chance of getting approved for a loan as well as a lower interest rate.

Here are five things you can do to help bump up your credit scores and keep them working for you whether you live in Denver, Seattle, Boston or anywhere in-between.

1.    Get and Check Your Credit Report Scores – Specifically, you want to look for any accounts or late payments that are not yours, for duplicate past-due items, for an incorrect Social Security number and/or date of birth, and for any entries more than seven years old. Items older than seven years are supposed to be removed from your report regardless of whether they are positive or negative entries, but you definitely want to nix the negative ones.

2.    Argue for Error Fixes – Once you bring a mistake to the attention of the credit bureau, the law requires them to investigate and provide you with feedback. Usually, the credit bureau will ask any creditor reporting past due information to check its records.  If the creditor doesn’t respond or can’t prove the information, that item is (or should be) deleted from your credit report.

3.    Time is Money – Specifically, if you pay your bills on time you’ll be eligible to save money. Payment history makes up a large part (about one-third) of a credit report, so paying bills on time translates to a better score and better terms on loans. Set up automatic bank payments if that will help you be on time.

4.    Lower Debt – If you have two or more credit cards and are close to the limit on all of them, lenders assume you’re not in good financial shape and will probably not qualify you for a loan. A good rule of thumb is to keep balances below 50% of available credit, and lower if possible.

5.    Don’t Close Old Accounts – Older accounts are valued more than new accounts, and closing old or inactive credit accounts/credit lines reduces your total amount of available credit, which in turn can lower your credit score.

The site www.annualcreditreport.com is a government-authorized website that can provide you with a free copy of your three major credit reports. You can use this site to get a free credit report once every 12 months, and a good rule of thumb is to review them all once a year for mistakes or old entries.

Being vigilant and following the steps above will help keep your credit in great shape—and let you live in that beautiful Denver neighborhood of your dreams.

Let the professionals at the Bandy Team help you buy or sell a Denver home, contact us for a no-obligation consultation. If you’re thinking about buying a home in Denver, we can show you some terrific properties in Denver, including homes in Denver Highlands and real estate in Washington Park (also known as Wash Park). You may also be interested in horse property in Franktown or homes in Parker, including a wide variety of homes in Canterberry and real estate in Stonegate.

Marianne Bandy

Denver Relocation