Dr. Lawrence Yun, Chief Economist for the National Association of Realtors, recently spoke in Denver about the economy and home sales in particular. NAR has been lobbying congress about the importance of stabilizing home prices, which will then stabilize the assets of banks, insurance companies, investment firms, and individual homeowners. He is hopeful that the $8,000 credit to first time buyers will act as a strong stimulant to get these first time buyers "off the fence".
Dr. Yun showed statistics that demonstrate how much healthier Colorado's real estate markets are, especially when compared to the four problem states: California, Nevada, Arizona, and Florida. There is good evidence that Colorado has already bottomed out and should have a solid summer sales season. California, which has suffered a severe downturn, is now showing renewed activity. Lower priced California homes are selling well, with multiple bids becoming common. It may be at the "tipping point" where everyone jumps back into the market.
When asked about inflation, Dr. Yun said that inflation is inevitable, given the money being pumped into the economy, so interest rates will be driven up from their current, phenomenally low rates under 5.0%. Those that wait for home prices to drop or interest rates to drop further will probably miss the combination of low prices and low interest rates.
Colorado is a key growth market for real estate over the next 20 years. It continues to enjoy a strong net immigration rate, which should translate into increased demand for mountain resort real estate. He also talked about the influence of the baby boomers, many of whom are buying retirement homes. Mountain Realtors® have also seen the effect of the wealth transfer from the depression generation to the baby boomers, resulting in boomers buying mountain homes. While resort real estate sales have been slow the past couple months, there is pent up demand. The only real question is "when will the buyers get off the fence"?
Metro Brokers/Colorado Dream Properties is proud to host a much needed event for the Parker area!
Get a new flat screen TV or monitor this Christmas?
Old computer sitting in your basement because you don't want to pollute the earth and toss it in a landfill?
Bring in your old electronics and do the right thing-Recycle them! It's not a free event but it's still better than the alternative!
When: Saturday, May 9th from 10AM to 2PM
What we will collect and the cost per item:
Computer monitors/TV's under 20", all laptops: $10
Computer monitors/TV's over 20": $20
Computer CPU's, printers, fax machines,
Scanners, copy machines, typewriters: $8
Small Electronics: $5
What we will not collect: Kitchen appliances, washer/dryers etc.
Where: 11355 S. Parker Road, Suite 101, Parker, CO 80134
Guaranteed Recycling Experts (GRX) is partnering with us to collect and recycle everything collected. The company's goal is to ensure that 100% of the e-waste it handles is actually recycled into raw materials for use in the manufacture of new products. This means that GRX:
-Recycles all the equipment it collects (no refurbishment/re-sales) and issue Electronics Disposal Compliance Certificates to customers
-Destroys all hard drive and storage devices and issues Certificates of Destruction to customers
-Does NOT export any hazardous waste material to developing countries
-Does NOT landfill or incinerate any hazardous waste material
-Rejects practice of exploiting low-wage prison labor in its demanufacturing operations
Go to http://www.GRXRecycles.com for more information.
This Blog is dedicated to Parker Colorado Real Estate, Parker Colorado Homes, Elizabeth Colorado real estate, Elizabeth Colorado homes, Franktown Colorado homes, Franktown Colorado real estate, Lone Tree Colorado real estate, Lone Tree Colorado homes, Highlands Ranch real estate, Highlands Ranch homes, Castle Rock real estate, Castle Rock homes, and metro Denver Colorado real estate property listings. Search the Denver MLS directly for properties and homes at http://www.coloradodreamhomes.info/ and access a huge real estate resource at http://www.coloradodreamhomes.net/
It just gets my blood boiling!!!!!!!!!!!!!!!!!!!!!!!! I should be used to it by now because I can't say things have really ever changed.
Not that I'm perfect, but I do put forth a solid effort at least. Obviously some Realtors have a higher standard than others, and maybe that's O.K. There just ought to be a law against lazy, ignorant Realtors! We are supposed to police each other, but that really only applies if you break a rule. At least nobody can come to me complaining about a lack of information listed in Metrolist. Why is there not a rule against weak listings in the MLS?
I constantly run across listings with little to no information about the property. Especially lazy are Realtors that list bank owned homes or short sales, so maybe that is why it seems so bad now. And it's not only Parker Colorado listings-its in every single area and every single city in Denver.
Just today I ran across yet another listing in the MLS (listed for $650,000) with not one single picture of it, and it's been listed since last September! What a complete disservice to the client, who might be desperate to sell their home who knows???!! Think they are getting a lot of showings? Think they know the reason why? There is too much at stake selling a house for clients to be mis-represented.
To me it borders on fraud. If I were running Metrolist I would charge a fine of $100 for every listing older than 3 days (calendar) with less than 5 photos posted in the MLS. Simple as that. Problem solved.
This Blog is dedicated to Parker Colorado Real Estate, Parker Colorado Homes, Elizabeth Colorado real estate, Elizabeth Colorado homes, Franktown Colorado homes, Franktown Colorado real estate, Lone Tree Colorado real estate, Lone Tree Colorado homes, Highlands Ranch real estate, Highlands Ranch homes, Castle Rock real estate, Castle Rock homes, and metro Denver Colorado real estate property listings. Search the Denver MLS directly for properties and homes at http://www.coloradodreamhomes.info/ and access a huge real estate resource at http://www.coloradodreamhomes.net/
Now we have this global credit crises. One of the reasons banks don’t have any money to lend is because of Mark To Market accounting . One problem leads to another doesn’t it? Can you imagine if someone knocked on your door and expected you to pay them 10% of the value of your home tomorrow, just because the value of your home dropped 10%, and regardless of when you planned to sell your home? Most people couldn’t do it, and that is what the banks are expected to do right now. It doesn’t work. It’s an ugly scenario and we’ll see how it plays out. Some think this method of accounting should be banned for now due to the situation. We’ll see…
This Blog is dedicated to Parker Colorado Real Estate, Parker Colorado Homes, Elizabeth Colorado real estate, Elizabeth Colorado homes, Franktown Colorado homes, Franktown Colorado real estate, Lone Tree Colorado real estate, Lone Tree Colorado homes, Highlands Ranch real estate, Highlands Ranch homes, Castle Rock real estate, Castle Rock homes, and metro Denver Colorado real estate property listings. Search the Denver MLS directly for properties and homes at http://www.coloradodreamhomes.info/ and access a huge real estate resource at http://www.coloradodreamhomes.net/
If you don't know what these things are, you owe it to yourself to watch this program on CNBC. There is a program called "House of Cards" by David Faber (from Squawk Box every morning on CNBC) which basically is the history of the housing market (and the entire US economy) since 9/11. I've seen it twice now, and I'm calling it a "must see" program for every Realtor. It's absolutely mind boggling, and at least you will be better educated if you see it, and you will REALLY know why things are the way they are in our business right now.
It happens to be aired tonight from 6-10PM, and 10-12 PM. CNBC is channel 46 on Comcast, and I don't know what channel it is anywhere else. Please watch it if you can.
Simply put, it's the complete history of the housing market (and U.S. economy) since 9/11. It's a story that is absolutely mind boggling and a must see for History Classes and Economics Classes for years and years to come. It's possible that Allen Greenspan will go down in history as one of the catalysts to the housing bubble, because of his influence and direction. Here he was the one standing at the podium recommending that lenders and Wall Steet make housing more affordable and accessible. In the end, lenders did just that. It's amazing to think that most (if not all) of the reason for the run-up in housing prices/demand since 9/11 (and consequently the entire collapse of the US economy and worldwide recession) is due to Wall Street greed. Greed runs through the entire documentary. Even Allen Greenspan at the end admitted that what happened will happen again at some point, and there is nothing anyone can do about it, because it’s human nature to be greedy, bottom line.
There are people in there that should be arrested tomorrow. What they did seems to border on criminal to me. We are talking out and out fraud and deceit. Most didn't seem to have any remorse whatsoever-it was just a way of life to them. Wall Street investment banks packaged up these "securities instruments," which were basically a large block of mortgages, and then Moody's and Standard and Poors (companies that are 100% trusted to give ratings and guidance on investments) labels them a full AAA rating, even though within these securities lies a decent amount of BBB- and lower risk mortgages. Who wouldn't want to buy something with a AAA rating from Standard and Poor's? It's a lock. It's a no-brainer. It's very low risk. Then firms like Bear Sterns (now gone forever) sell them to investors all over the world and reaps huge profits. It becomes a money making machine. And the assumption and the reason for the easy sell of these (by the brightest financial minds in the world) was that A) Housing prices would ALWAYS continue to go up 6-8% a year and B) people would ALWAYS pay their mortgages. PLEASE!
It just proves that housing will always make the world go round and round. It’s at the core of our economic health. It's seems to me that most if not all of the large banks in the US have to be insolvent, or at least they will be. If all of the home loans in the US went down 10%, factoring in millions and millions of homes, you would think that would a loss in the multi-trillions of dollars, and the whole banking system would collapse. They would be bankrupt. Even the US treasury could not pump enough money into them to save them. You might as well wipe them all off the face of the globe and start over. Maybe that is their fate.
I hate it when people point fingers and say "it was the lenders fault" or someone else was responsible for homeowners getting into mortgage trouble. Remember it was all about greed, so everyone has to share in the blame. Don't tell me that buyers didn't know what they were getting into. Homeowners could not say no to a good deal. Lenders could not say no to profitable loans that were easy to qualify for that Wall Street then took off their hands and sold to someone else at a profit. And could Wall Street help themselves that what they cooked up worked, and made a lot of Wall Street guys rich, at the expense of the world? Wall Street has mortgaged our future and we will pay for it for generations.
This Blog is dedicated to Parker Colorado Real Estate, Parker Colorado Homes, Elizabeth Colorado real estate, Elizabeth Colorado homes, Franktown Colorado homes, Franktown Colorado real estate, Lone Tree Colorado real estate, Lone Tree Colorado homes, Highlands Ranch real estate, Highlands Ranch homes, Castle Rock real estate, Castle Rock homes, and metro Denver Colorado real estate property listings. Search the Denver MLS directly for properties and homes at http://www.coloradodreamhomes.info/ and access a huge real estate resource at http://www.coloradodreamhomes.net/
Kind of looks like the average price of a gallon of gas.
Kind of looks like the economy.
Kind of looks like my average sales per month.
Kind of looks grim for Realtors.
Hey, they will ALL jump back in when it gets good again!
This Blog is dedicated to Parker Colorado Real Estate, Parker Colorado Homes, Elizabeth Colorado real estate, Elizabeth Colorado homes, Franktown Colorado homes, Franktown Colorado real estate, Lone Tree Colorado real estate, Lone Tree Colorado homes, Highlands Ranch real estate, Highlands Ranch homes, Castle Rock real estate, Castle Rock homes, and metro Denver Colorado real estate property listings. Search the Denver MLS directly for properties and homes at http://www.coloradodreamhomes.info/ and access a huge real estate resource at http://www.coloradodreamhomes.net/
This Blog is dedicated to Parker Colorado Real Estate, Parker Colorado Homes, Elizabeth Colorado real estate, Elizabeth Colorado homes, Franktown Colorado homes, Franktown Colorado real estate, Lone Tree Colorado real estate, Lone Tree Colorado homes, Highlands Ranch real estate, Highlands Ranch homes, Castle Rock real estate, Castle Rock homes, and metro Denver Colorado real estate property listings. Search the Denver MLS directly for properties and homes at http://www.coloradodreamhomes.info/ and access a huge real estate resource at http://www.coloradodreamhomes.net/
If you were going to bet on a real estate market to come back, sooner and not later...The Denver Real Estate Market has the statistics to lead the way out.
According to HousingTracker.net, the below charts show the continued improving housing market in the Metro Denver area. Single Family and Condo inventory is down 22% and prices are up 20%. This works in conjunction with reports from The Urban Land Institute as having Denver in it's top ten markets nationwide as well as in it's emerging Trends Real Estate 2009, dated October 21, 2008:
Houston. Stays relatively
strong as long as energy stays hot. It makes the top ten for the first
time since 1995. Office vacancies drop to 10 percent, “a good buy
opportunity,” but apartments soften. Cheap land results in cheap
housing, and prices have not gone up dramatically.
Boston. Job outlook is more favorable than most
cities, with office space “tight” in the Financial District and the
Back Bay area. New “harborside hotels threaten older product.”
Denver. The state capital has a major federal
government presence, which should buffer job losses. Steady population
growth and broadening diversification of the industry keeps the housing
market stable. Mass transit should pay future dividends.
Dallas. Compares favorably to other “hot-growth”
markets. Although office vacancies downtown are 20 percent or higher,
apartments do well and developers keep building single-family homes.
Chicago. Apartments do well, but condos weaken as
speculators leave the market. Office vacancies are in the low teens,
and O’Hare International Airport keeps industrial space in the “global
pathway.
Here are the Urban Land Institute ratings for Commercial properties. Commercial/multi-family investment, No. 10; commercial/multifamily
development, N0.21; for-sale homebuilding, No. 21; office properties,
No. 8; hotels, No. 11; and industrial,
no. 10.
Notice how all the above categories had to do with ROOFS OVER OUR HEADS? The only coming "softening markets" will be in some Commercial sectors, mostly retail will be heading towards the skids in 2009...I ask myself, "how many Tokyo Joe's, dry cleaners and nail salons does the average consumer need?" People who specialize in Commercial real estate forget that the number of human beings in the Denver Metro area needing a roof over their heads has increased and not decreased. We hardly need any more of any commercial retail or office real estate!
Now let's illustrate that real estate is local! The above charts give a 50,000 foot view, so let's take a look at what this really means to the man on the street. Total Housing units, sold, under $200K located in Cherry Creek School district, city of Aurora.
From 1/1/08 to 12/1/08
Total Sold 920 (83.63 per month pace)
Avg List Price 156,353
Avg Sold Price 140,144
Avg Sold to List 89.63%
Avg DOM 76.98 days
From 1/1/08 thru 5/31/08
Total Sold 430 (86 per month pace)
Avg List Price 157,148
Avg Sold Price 141,709
Avg Sold to List 90.17%
Avg DOM 83.10
From 6/1/08 thru 12/1/08
Total Sold 460 (76.66 per month pace)
Avg List Price 155,656
Avg Sold Price 138,771
Avg List to Sold 89.15%
Avg DOM 71.61
From 10/1/08 thru 12/1/08
Total Sold 107 (53.5 per month pace)
Avg List Price 157,510
Avg Sold Price 139,877
Avg List to Sold 88.8%
Avg DOM 63.16
Ok and now compare to last year at this time. Despite the press, despite the stock market and despite people who don't know how to obtain data. Prices are UP, and Days on the market are down. The decrease in inventory is having the effect that it should..more demand. More demand means higher pricing and fewer days to sell.
This is a 12 minute clip from 60 minutes and it is worth your time to review it. It should be mandatory viewing for every buyer and seller in America!
My first take on this was that the whole thing might be avoided because if interest rates do stay at historic lows then homeowners could refinance and the "resets" would never take place (the assumption all along.) Then I realized that someone who took out one of these mortgages propbably has no equity at this point, and might even be underwater, so they would not be able to refinance anyway. They would walk away. The cycle will never end.
All we can hope is that the low interest rates bring out the buyers, so the sellers in trouble can sell and get rid of these horrible loans forever. I don't think it means prices will drop further personally. But they certainly won't rise either if we are going to have this pain for the next 3 years still.
I do believe that the second wave is coming and its real.
This Blog is dedicated to Parker Colorado Real Estate, Parker Colorado Homes, Elizabeth Colorado real estate, Elizabeth Colorado homes, Franktown Colorado homes, Franktown Colorado real estate, Lone Tree Colorado real estate, Lone Tree Colorado homes, Highlands Ranch real estate, Highlands Ranch homes, Castle Rock real estate, Castle Rock homes, and metro Denver Colorado real estate property listings. Search the Denver MLS directly for properties and homes at http://www.coloradodreamhomes.info/ and access a huge real estate resource at http://www.coloradodreamhomes.net/
Hmmm...seems like the world is coming to an end? Hardly. This number is meaningless. It does not mean that your home has fallen in value by 54,000! It probably only means that the homes selling for 250,000 or less have increased, while the # of luxury homes sold has decreased. Everone that sees these kind of numbers always thinks the sky is falling. This number changes monthly and the only driver of this is the mix of homes that sold in that particular period. If Parker's 22 million dollar home sold, what do you think that would do to the average? It would probably single-handidly raise the average!
This Blog is dedicated to Parker Colorado Real Estate, Parker Colorado Homes, Elizabeth Colorado real estate, Elizabeth Colorado homes, Franktown Colorado homes, Franktown Colorado real estate, Lone Tree Colorado real estate, Lone Tree Colorado homes, Highlands Ranch real estate, Highlands Ranch homes, Castle Rock real estate, Castle Rock homes, and metro Denver Colorado real estate property listings. Search the Denver MLS directly for properties and homes at http://www.coloradodreamhomes.info/ and access a huge real estate resource at http://www.coloradodreamhomes.net/
It might not have a lot to do with housing, but it has everything to do with our credit crisis and that my friends impacts everything. A couple of the charts here really make you pause. Its insanilty really and I can't really blame the ecomonists who study this stuff and are so pessimistic about life and the world.
To me this is the key phrase:
"a parabolic spike is unsustainable"
And that has EVERYTHING to do with housing. Think California, Arizona, Nevada, Florida. Think of housing prices going up 25% a year for multiple years in a row. Think of greed. Its all there. I kept telling buyers coming in from those other markets that their growth was not sustainable! Not in a million years can housing prices double in 2-3 years. Duh.
Housing in Parker Colorado didn't follow this trend of course, so we are lucky! I'll take 2-5% yearly growth anyday!
Key commentary on Parker Colorado real estate and Parker Colorado homes, plus Highlands Ranch, Littleton, Englewood, Lone Tree, Castle Rock, Centennial, Larkspur, Franktown, Elizabeth, and Kiowa Colorado homes.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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