The Denver Real Estate Blog

Thinking About Buying Your First Home? Maybe $8,000 Will Help!

Denver Colorado Exclusive Buyer's Agent — Sun, 29 Mar 2009 17:52:07 -0500

The new American Recovery and Reinvestment Act (ARRA) included a new $8,000 first-time homebuyer tax credit for 2009 home purchases. If you've recently purchased a home or are thinking about buying a home you have several different ways you can receive this tax credit -- even if you've already filed your tax return.

Qualifying taxpayers who buy a home between January 1, 2009, and December 1, 2009 can claim up to $8,000 or $4,000 for married individuals filing separately. You can claim the credit either on your 2008 tax returns or 2009 tax return next year. The credit begins to phase out at a modified adjusted gross income of more than $75,000 or $150,000 for joint filers. But if you make less than that you can claim 10% of the purchase price up to the maximum credit.

The filing options to consider are listed below:

File an extension. If you haven't yet filed your 2008 return but are buying a home soon, you can request a six-month extension to October 15th. This step would be faster than waiting until next year to claim it on your 2009 tax return. Even with an extension, you could still file electronically, receiving your refund in as few as 10 days with direct deposit.

File now, amend later. If you're expecting a sizable refund on your 2008 tax return but you're also considering buying a house in the next few months, you can file your return now and claim the credit later. You would file your 2008 tax forms as usual, then follow up with an amended return later this year to claim the homebuyer credit.

Amend your 2008 tax return. If you're buying a home in the near future , but you've already filed your 2008 tax return, you can consider filing an amended tax return. The amended tax return will allow you to claim the homebuyer crdit on your 2008 return without waiting until next year to claim it on the 2009 return.

Claim the credit in 2009 rather than 2008. For some taxpayers, it may make more financial sense to wait and claim the homebuyer credit next year when you file your 2009 tax return rather than claiming it now on the 2008 tax return. This could include people who have less income in 2009 than 2008 because of factors such as a job loss or drop in investment income.

For more information on the new tax credit, see the IRS website.

Buyer Beware: Asbestos in Denver Homes for Sale

Denver Colorado Exclusive Buyer's Agent — Sat, 28 Mar 2009 12:35:26 -0500

Purchasing a home can be filled with excitement and anticipation for homeowners. Regarded as one of the great American traditions, it can also be a time where additional responsibilities are acquired. There are many locations throughout the state of Colorado in which citizens have been exposed to asbestos. Asbestos is found in the ground as a naturally-occurring mineral and pollutant. Left behind by many industrial plants and military bases which are now abandoned, there are still dangers present which pose risks to citizens throughout the state.

Potential Denver, Colorado home buyers or those remodeling homes should be aware that homes built before 1980 may still harbor asbestos materials. This is not to make you alarmed because asbestos exposure is easily prevented by taking simple precautions. Typically found in attic insulation, piping, popcorn ceilings, roof shingles and flooring, many green, healthy options insulation options exist that make the use of asbestos obsolete.

Asbestos fibers are thin and strong, and when inhaled frequently, an individual can develop mesothelioma, a rare but severe lung ailment caused by asbestos exposure. Several mesothelioma treatments are available; however, patient prognosis is usually poor. There are a number of factors that can impact how a person reacts to the disease and how their life span and mesothelioma life expectancy will be affected. These factors include latency period, age of diagnosis and cigarette smoking.

If any asbestos is suspected in the home, the best thing to do is leave it un-disturbed until a home inspector can determine the best course of action. Disturbing asbestos in good condition may cause its fibers to be released into the air. It is important to meet with health or environmental professionals to properly examine your new property. Sometimes, the best action is no action. However, if removal is necessary, it must be performed by a licensed abatement contractor who is trained in handling hazardous substances. Organizations such as the Colorado Department of Public Health and Environment, assists businesses and schools to comply with laws regulating asbestos containing materials.

In Colorado, construction practices are upgrading methods to suit better lighting, heating, cooling systems and environmentally habitable insulation. Green options such as cotton fiber, cellulose and lcynene should be given consideration as replacements to asbestos. Not only will eco-friendly materials provide a healthy atmosphere, it can significantly reduce energy costs.

Current statistics demonstrates that the use of recycled building materials such as cotton fiber insulation can reduce energy use in the home by 25 percent. Alternatives to asbestos allow for you and your family to live in a healthy and safe home, free of health corroding materials.

For help in buying a home in Denver where you can depend on an Exclusive Buyer’s Agent to look out for your best interests and point out potential pitfalls, call Judith Clausen today at 303-587-3509, or email Judith@Buyers-Advantage.net. For more articles check out the Buyers Advantage website.

Denver Home Prices in February 2009

Denver Colorado Exclusive Buyer's Agent — Sat, 21 Feb 2009 18:53:39 -0600

Denver's housing market is beginning to reflect the deepening economic crisis, but with some bright spots that show continuing buyer activity and potential for 2009.

According to recently released housing reports Denver's market is stronger than elsewhere. The Case Shiller Housing Index shows a year over year average price drop of 18.5% nationally. Of the 20 metropolitan areas measured, Denver showed the smallest decline, 4.0%, from 2007 to 2008.

The new OFHEO (Federal Housing Finance Agency) report for 2008 shows that Denver's values decreased by only -0.71%, 111th of 292 Metropolitan Statistical Areas. In the fourth quarter of 2008 values actually increased by 0.77%.

Foreclosure filings dropped by 2% in 2008 according to the Colorado Division of Housing. Completed foreclosures dropped 16% from 2007.

Denver's drop in values began in 2001, unlike most U.S. cities where the drop didn't begin until 2003, and then only in cities showing the greatest increase in prices during the early 2000s. Denver's increases took place in the 1990s and prices did not drop steeply from 2001 to date.

More houses went under contract in January than in December by 16.59%, following a trend beginning in December. But average prices for all residential housing dropped significantly by 5.29% from December. The mix of single family residences sold under $200,000 in January was 56.19% and over $200,000 was 43.81% compared to December where the mix was evenly split. For condos the split was greater. Only 20.9% of sold condos were over $200,000 while 79.1% were under $200,000.

For buyers, the time is still opportune, especially given recent interest rate drops. Interest rates reached 4.875% on February 20th for a $300,000 loan from our preferred lender, Rate One, The Mortgage People. FHA rates were at 5.000% for a $140,000 loan and 4.875% for a $300,000 loan. Credit is still tight, but loans are still possible for buyers with good credit and a 10-20% down payment.

Single family homes priced well, in good condition, in good locations were staying on the market fewer than the average of 99, and were selling in 30 days or less for 98.73% of list price. Homes staying on the market over 90 days sold at 94.46% of list price. If you’re a seller you’ll want to price your home well and make sure it’s in good condition, attractively staged. If you’re a buyer and you want to buy a move-in ready home in a good location, be prepared to pay close to list price. My experience over the last month to month and a half shows that premium homes are selling, many with more than one offer, and some even at above list price. Denver’s real estate market isn’t uniformly declining, contrary to what you may hear on the news or read on the internet or in the newspaper.

According to the Denver Economic Development Council, the outlook for Denver’s economy in 2009 is better than average. Denver’s unemployment rate at the end of 2008 (the latest figures available) was 6.1, considerably better than the national unemployment rate of 7.6%. Jobs outlook is better, too, for the Denver Metro area. According to the Manpower Employment Outlook Survey for the area issued on February 6th, 15% of employers expect to hire more employees, 12% expect to reduce their work force, 70% hope to maintain their current work force, and 3% are uncertain. Sectors hoping to hire include construction, transportation and utilities, information, financial activities, education and health services, and other services. Sectors expecting job losses are manufacturing, leisure-hospitality, and government.

Of course, all this could change given the volatility in the economy, but for now the Denver metro area is plugging along and likely won’t be as hard hit as other metro areas in the country, partly due to Denver’s recession beginning in 2001 which tended to stop the real estate bubble earlier than other metro area. Prices have held relatively steady through the end of 2007, and only in the last two months have prices dropped significantly, which is good news for buyers.

The Pew Research Center cites Denver as THE top place to live! Just what I've always thought. And the recently-released Case Shiller Report shows a loss of value much less than in other cities, just 1.1% less in November than in October 2008 (the report lags by two months), and 4.3% lower than in November 2007.

A question asked by many of my buyers is "If I buy now, what about declining values? Will my home be worth less when it comes time to sell it?" The answer varies depending on how long you stay in your new home.

On average buyers stay in their homes about 5 years before selling according to independent real estate broker, Gary Bauer. (Bauer issues a monthly market report used by the Denver dailies and is widely regarded in Denver real estate circles as a market expert.) In an April 2008 report in the Rocky Mountain News by Rob Reuteman, Bauer is quoted on the issue. He says, "If I bought my home a year ago for $200,000, and I had to sell for $180,000, I'd be upset. If I'm staying in the Denver market I take $180,000 and buy a house that would have cost me $200,000 a year ago. But I'd still have a little feeling that I really didn't do so well. If I were that individual five years ago, my average appreciation would be 39 percent. Would I be concerned about a 10 percent drop in price today? I don't think so. I would have bought it for $130,000 and sold it for $180,000."

Denver's cost of living makes it an easy choice over higher cost areas like both coasts. According to CNN/Money.com it costs 51.1%% less to live in Denver than in San Jose; 43.8% less than in San Diego; 66.6% less than in San Francisco; and 12.9% less than Seattle. If you live in the east, it will cost 37.6% less than in Washington, D.C.; 32.8% less than in Boston; 101.9% less than in New York; 22% less than in Philadelphia.

For buyers coming from the south and the midwest, Denver could cost more. It costs 4.9% more in Denver than in Atlanta; 12.8% more than in Houston; 8% more than in Dallas; 8.3% more than in Dayton, Ohio; 5.2% more than in Rochester, MN, and 10% more than in Boise. But living in Denver still costs 10.7% less than in Chicago, 15.1% percent less than in Portland, and a whopping 49.3% less than in Los Angeles.

You'll need to do your due diligence to compare cost of living between your city and Denver at websites like Sperling's Best Places, Bank Rate or CNN/Money.

Having an Exclusive Buyers Agent to find the best buys will shore up your buying ability by representing your best interests - finding the best home at the lowest possible price, and saving you time and hassles. See client references. Phone numbers available upon request. Call Judith Clausen now at 303-587-3509 to help you find your next house.

January 2009 Housing Market

Denver Colorado Exclusive Buyer's Agent — Wed, 21 Jan 2009 16:37:22 -0600

Buyers are in the catbird seat again this month, that is, if they can get a mortgage. Prices take a slide but credit is still tight even though rates are the best they've been in awhile.

It's too early to tell, but Denver's real estate market may be showing signs of life. More homes sold in December than sold either in December of 2007 or in November 2008. The uptick over 2007 was slight, just .47%, But the gain over November was a surprising 10.75%. For single family homes the mix of sold properties was evenly split between homes selling under $200,000 and homes selling over $200,000. For condos and townhomes the split was more stark, 76% selling under $200,000 and only a quarter selling above $200,000. Generally condos and townhomes sell at a lower price than do single family homes. Average sold price for condos is $162,770, while for single family homes the average is $240,945. For all homes the time it took to sell was down both from last year and from last month.

The total number of homes on the market in December was lower than it has been since 2002, the year after the Denver market started to decline. That's a good sign, as is total sold activity at the end of 2008. Fewer foreclosed homes were on the market in December, indicating a possible turnaround in the availability of cheap homes. The Colorado Division of Housing predicts that when year end figures are in, the number of foreclosures for all of 2008 will decline by about 13%. With a broader mix of homes on the market prices may begin to rise.

Buyers may be encouraged to begin searching for homes with interest rates below 5% and lenders a bit more willing to lend. But Buyers will still have to have excellent credit and a sizeable down payment.

The only fly in the ointment is the Colorado economy and the possibility of more job losses leading to more foreclosures. Unemployment in the Denver metro area rose .2% in December to 5.9%, which is less than the national unemployment rate of 7.2%, but still high. However, the Monthly Economic Summary published by the Metro Denver Economic Development Corporation titles its January 2009 report, Strong long-term prospects will support a solid recovery for Metro Denver's economy, a very good sign for Buyers looking to buy in the Denver metro real estate market.

But there are some sweet spots for sellers too. As I've said before, good homes in good shape in good neighborhoods sell quickly, even in this slow market. And if you're looking for a good deal on a foreclosure - either pre- (short sale) or post (bank owned), you may be competing with several other offers forcing you to pay above asking price if you really want the home. For either resale or distressed sale homes, the basic rules of economics still apply. Good houses in great shape in desirable locations command the attention of multiple buyers in good times and bad. What's in short supply these days is the total number of buyers. But take note that some may be looking at the very same house you want.

A question asked by many of my buyers is "If I buy now, what about declining values? Will my home be worth less when it comes time to sell it?" The answer varies depending on how long you stay in your new home.

On average buyers stay in their homes about 5 years before selling according to independent real estate broker, Gary Bauer. (Bauer issues a monthly market report used by the Denver dailies and is widely regarded in Denver real estate circles as a market expert.) In an April 2008 report in the Rocky Mountain News by Rob Reuteman, Bauer is quoted on the issue. He says, "If I bought my home a year ago for $200,000, and I had to sell for $180,000, I'd be upset. If I'm staying in the Denver market I take $180,000 and buy a house that would have cost me $200,000 a year ago. But I'd still have a little feeling that I really didn't do so well. If I were that individual five years ago, my average appreciation would be 39 percent. Would I be concerned about a 10 percent drop in price today? I don't think so. I would have bought it for $130,000 and sold it for $180,000."

The Denver Post has a very useful interactive map of home values across the metro area. You can look at values by neighborhood, discover whether values are rising or declining and much more. The map hasn't been updated since the end of June 2008, but it's a useful guide nonetheless.

Interest rates are historically low. Conventional loans were at 4.750% for a loan value of $300,000, and 5.000% for a loan value of $140,000; FHA loans of $140,000 were 5.000% and $300,000 were 4.875% for well-qualified buyers as of January 12, 2009, from our preferred lender, Rate One, The Mortgage People. Homes are much more affordable. Denver's economy is steadier than the rest of the nation, and while unemployment has risen to 5.7%, jobs are still expected to increase this year.

Denver's cost of living makes it an easy choice over higher cost areas like both coasts. According to CNN/Money.com it costs 51.1%% less to live in Denver than in San Jose; 43.8% less than in San Diego; 66.6% less than in San Francisco; and 12.9% less than Seattle. If you live in the east, it will cost 37.6% less than in Washington, D.C.; 32.8% less than in Boston; 101.9% less than in New York; 22% less than in Philadelphia.

For buyers coming from the south and the midwest, Denver could cost more. It costs 4.9% more in Denver than in Atlanta; 12.8% more than in Houston; 8% more than in Dallas; 8.3% more than in Dayton, Ohio; 5.2% more than in Rochester, MN, and 10% more than in Boise. But living in Denver still costs 10.7% less than in Chicago, 15.1% percent less than in Portland, and a whopping 49.3% less than in Los Angeles.

You'll need to do your due diligence to compare cost of living between your city and Denver at websites like Sperling's Best Places, Bank Rate or CNN/Money.

Having an Exclusive Buyers Agent to find the best buys will shore up your buying ability by representing your best interests - finding the best home at the lowest possible price, and saving you time and hassles. See client references. Phone numbers available upon request. Call Judith Clausen now at 303-587-3509 to help you find your next house.

Denver Home Prices Fall Dramatically in November

Denver Colorado Exclusive Buyer's Agent — Fri, 19 Dec 2008 23:12:55 -0600

Buyers are in the catbird seat again this month, that is, if they can get a mortgage. Prices take a slide but credit is still tight even though rates are the best they've been in awhile.

Figures for the Denver real estate market for November 2008 show steep declines in prices, in number of homes sold versus last month and last year at this time, and number of homes currently on the market. Area economic experts predict that prices will continue to fall, possibly into 2010. But metro Denver is still in a better position economically than most.

Average single family home prices dropped the most, a whopping 18.55% from November 2007. Condos and townhomes fared better, experiencing only a 2.37% drop in average price from this time last year. The single family median sold price dropped below $200,000 to $195,000 for the first time since the 1990s. The average price was $242,557.

The average price for condos or townhomes was $161,615 compared to $165,533 in November 2007, while the median price was $130,000 compared to $139,000 in November last year, a drop of 6.48%.

The total number of homes sold in November 2008 as compared to November 2007 dropped 16.14%. But the biggest drop came when comparing the drop from October to November 2007, indicating a seasonal slide, to the drop from October to November 2008. The drop in 2007 was 9.51% while in 2008 it was 31.81%! Denver, like other major cities, has taken a hit in light of the general economic picture, particularly tightening credit.

But overall the year to date home sales number through November is trending only slightly under 2007 (4.22%), a good sign for the future, especially considering the local economy which is showing a slowdown in job hires rather than the steep drops seen elsewhere. And home foreclosures, which have been a drag on the Denver real estate market for the last few years, dropped 2% for the first ten months of this year compared to the same period last year. New building continues to slow down. In 2008 only half the number of homes were built than in 2007, reflecting the general economic slowdown.

But there are some sweet spots for sellers too. As I've said before, good homes in good shape in good neighborhoods sell quickly, even in this slow market. And if you're looking for a good deal on a foreclosure - either pre- (short sale) or post (bank owned), you may be competing with several other offers forcing you to pay above asking price if you really want the home. For either resale or distressed sale homes, the basic rules of economics still apply. Good houses in great shape in desirable locations command the attention of multiple buyers in good times and bad. What's in short supply these days is the total number of buyers. But take note that some may be looking at the very same house you want.

On average buyers stay in their homes about 5 years before selling according to independent real estate broker, Gary Bauer. (Bauer issues a monthly market report used by the Denver dailies and is widely regarded in Denver real estate circles as a market expert.) In an April 2008 report in the Rocky Mountain News by Rob Reuteman, Bauer is quoted on the issue. He says, "If I bought my home a year ago for $200,000, and I had to sell for $180,000, I'd be upset. If I'm staying in the Denver market I take $180,000 and buy a house that would have cost me $200,000 a year ago. But I'd still have a little feeling that I really didn't do so well. If I were that individual five years ago, my average appreciation would be 39 percent. Would I be concerned about a 10 percent drop in price today? I don't think so. I would have bought it for $130,000 and sold it for $180,000."

The Denver Post has a very useful interactive map of home values across the metro area. You can look at values by neighborhood, discover whether values are rising or declining and much more. (The map hasn't been updated to include the third quarter 2008.)

Interest rates have dropped significantly in the last few days. Conventional loans were an astonishing 4.5% for a loan value of $300,000, and 4.625% for a loan value of $140,000; FHA loans of $140,000 were 5.000% and $300,000 were 5.000% for well-qualified buyers as of December 17, 2008, from our preferred lender, Rate One, The Mortgage People. Homes are much more affordable. Denver's economy is steadier than the rest of the nation, and while unemployment has risen to 5.7%, jobs are still expected to increase this year.

Denver's cost of living makes it an easy choice over higher cost areas like both coasts. According to CNN/Money.com it costs 51.1%% less to live in Denver than in San Jose; 43.8% less than in San Diego; 66.6% less than in San Francisco; and 12.9% less than Seattle. If you live in the east, it will cost 37.6% less than in Washington, D.C.; 32.8% less than in Boston; 101.9% less than in New York; 22% less than in Philadelphia.

For buyers coming from the south and the midwest, Denver could cost more. It costs 4.9% more in Denver than in Atlanta; 12.8% more than in Houston; 8% more than in Dallas; 8.3% more than in Dayton, Ohio; 5.2% more than in Rochester, MN, and 10% more than in Boise. But living in Denver still costs 10.7% less than in Chicago, 15.1% percent less than in Portland, and a whopping 49.3% less than in Los Angeles.

You'll need to do your due diligence to compare cost of living between your city and Denver at websites like Sperling's Best Places, Bank Rate or CNN/Money.

Having an Exclusive Buyers Agent to find the best buys will shore up your buying ability by representing your best interests - finding the best home at the lowest possible price, and saving you time and hassles. See client references. Phone numbers available upon request. Call Judith Clausen now at 303-587-3509 to help you find your next house.

Denver October Real Estate in Freefall

Denver Colorado Exclusive Buyer's Agent — Mon, 10 Nov 2008 14:17:45 -0600

Buyers continue to snap up Denver homes at bargain prices. 4,282 homes (both single family and condo/townhome) were sold in October compared with 4,265 in September, 4,542 in August, and 5,123 in July. Median prices for October were $206,000 for single family homes, a drop of $10,000 from September, and $130,300 for condos/townhomes a drop of $9,000 from September.

Home prices were 12.2% lower in October 2008 than in October 2007, which in turn was 2.67% lower than October 2006. The average price for single family homes and condo/townhomes combined was $232,284 compared to $265,232 in October of 2007.

Housing inventory continues to slide as sellers keep homes off the market. Prices of current listings continue to fall because buyers are in short supply. The recent global financial crisis and credit crunch has affected what looked to be a stable market in September, the first hopeful sign of a housing recovery in the Denver metro area. The area's real estate market is now expected to bottom out sometime in the future, perhaps as far out as a year or 18 months from now.

That leaves an incredible opportunity for buyers looking for Denver homes. Interest rates have steadily fallen, making more homes affordable. The only glitch is that buyers may have to come up with more cash down and have excellent credit in order to qualify for financing.

Denver is in a much better position than many U. S. cities. The S & P/Case-Shiller report for August 2008 (published October 28th) showed a very slight decrease in home prices from July, the first decrease in five months. In July Denver was one of only two cities out of 20 measured nationally that showed any increase. Only Minneapolis showed a greater increase (1.8%).

But the continuing loss in value from last year is striking. After the economic meltdown earlier this year local economists are predicting a continuing slide in prices for at least another year.

On the whole Denver's economy is showing a slow-down, but is still in better shape than many other U. S. cities. Job growth is stable, and unemployment through September was 5.4%, less than the U. S. rate of 6.1%. Governor Bill Ritter predicts that unemployment will slowly drop through 2009, and believes the Denver economy is relatively strong. A report issued by the Governor's office on September 19th shows that "Colorado's economy…is more resilient and perhaps better poised to rebound from the current national financial turmoil than the national economy," noting that "Colorado has lower unemployment, greater job growth and lower inflation than the nation overall."

Another interesting fact indicating the strength of Denver's economy is that its credit rating was recently upgraded to AAA from Standard & Poor's Rating Service, citing its "role as the economic center for the Colorado Front Range — with a diverse economy and reliant per-capita property values" (Denver Post, 9/9/08). And Wells Fargo, one of Colorado's largest lenders has just upgraded their ratings for Denver housing from "distressed" to "stable." In an article in Denver's Rocky Mountain News (9/16/08) Thomas Thibodeau, academic director for the CU Real Estate Center in Boulder was quoted as saying that "The housing market here is vastly different than the rest of the U.S. I think the Denver housing market has turned the corner and is on the way to recovery."

Two large renewable energy projects are slated for the metro area. Rentech recently opened a demonstration plant in Commerce City to produce synthetic jet and diesel fuel. And Vesta Wind Systems announced plans to build a wind turbine blade manufacturing plant in Brighton. The two projects combined could bring as many as 1,800 new jobs to the Brighton/Commerce City area. Colorado is becoming internationally known as a center for renewable energy and aerospace development activity. "Metro Denver's dynamic and innovative industry base continues to support the region's economy through challenging times," stated Tom Clark, executive vice president of the Metro Denver Economic Development Corporation.

A question asked by many of my buyers is "If I buy now, what about declining values? Will my home be worth less when it comes time to sell it?" The answer varies depending on how long you stay in your new home.

On average buyers stay in their homes about 5 years before selling according to independent real estate broker, Gary Bauer. (Bauer issues a monthly market report used by the Denver dailies and is widely regarded in Denver real estate circles as a market expert.) In an April 2008 report in the Rocky Mountain News by Rob Reuteman, Bauer is quoted on the issue. He says, "If I bought my home a year ago for $200,000, and I had to sell for $180,000, I'd be upset. If I'm staying in the Denver market I take $180,000 and buy a house that would have cost me $200,000 a year ago. But I'd still have a little feeling that I really didn't do so well. If I were that individual five years ago, my average appreciation would be 39 percent. Would I be concerned about a 10 percent drop in price today? I don't think so. I would have bought it for $130,000 and sold it for $180,000."

The Denver Post has a very useful interactive map of home values across the metro area. You can look at values by neighborhood, discover whether values are rising or declining and much more. (The map hasn't been updated to include the third quarter 2008.)

Interest rates are still low (conventional loans were at 6.125% for well-qualified buyers as of November 10, 2008 from our preferred lender, Rate One, The Mortgage People). Homes are more affordable. Denver's economy is steady and jobs are expected to increase this year.

Denver's cost of living makes it an easy choice over higher cost areas like both coasts. According to CNN/Money.com it costs 51.1%% less to live in Denver than in San Jose; 43.8% less than in San Diego; 66.6% less than in San Francisco; and 12.9% less than Seattle. If you live in the east, it will cost 37.6% less than in Washington, D.C.; 32.8% less than in Boston; 101.9% less than in New York; 22% less than in Philadelphia.

For buyers coming from the south and the midwest, Denver could cost more. It costs 4.9% more in Denver than in Atlanta; 12.8% more than in Houston; 8% more than in Dallas; 8.3% more than in Dayton, Ohio; 5.2% more than in Rochester, MN, and 10% more than in Boise. But living in Denver still costs 10.7% less than in Chicago, 15.1% percent less than in Portland, and a whopping 49.3% less than in Los Angeles.

You'll need to do your due diligence to compare cost of living between your city and Denver at websites like Sperling's Best Places, Bank Rate or CNN/Money.

Having an Exclusive Buyers Agent to find the best buys will shore up your buying ability by representing your best interests - finding the best home at the lowest possible price, and saving you time and hassles. See client references. Phone numbers available upon request. Call Judith Clausen now at 303-587-3509 to help you find your next house.

Approximate Location Boundaries: Denver Metro Area

Location Characteristics: Denver's an exciting place to live. Winter, summer, spring or fall -- there's always something special to do in the Denver area. Cultural amenities include the Denver Center for the Performing Arts which houses the Colorado Ballet, the Denver Symphony, and the Denver Center Theater. Art galleries, the Denver Museum of Science and Nature, over 90 golf courses, sophisticated shopping centers, the Denver Zoo -- the list goes on and on. Denver is a large urban area close at hand to some of the most beautiful country in the U.S. Ski areas are just hours away. Fly fishing, hiking, mountain climbing and much more offer spring, summer and fall recreation in the nearby Rocky Mountains. Quality of life in the Denver area is its biggest draw.

For More Information:

About Judith Clausen, Broker/Owner:
I represent Buyers only. My hallmark in assisting buyers is to provide timely, energetic and honest service. Check out the Buyers Advantage Real Estate website for client feedback. When asked to fill out a Customer Satisfaction Survey one recent client, "I'll give you all tens because you're worth it!!"

If you're planning to buy in the next six months go to the Buyers Advantage Real Estate website Home Search feature to look for homes in the Denver area. You can save your searches, and return as often as you want. And I'm always available to answer any of your real estate questions. Just email me or call direct at 303-587-3509.

Financial Market Meltdown: Is Now a Good Time to Buy a Home in Denver?

Denver Colorado Exclusive Buyer's Agent — Sat, 18 Oct 2008 09:49:08 -0500

Yesterday a first-time home buyer asked if it was a good or bad time to buy a home. He and his wife had lived in an apartment for some years, and now their personal situation will finally allow them to buy a home of their own. But they were worried about buying now when the economy is in such a mess.

I couldn't help them decide on long-term prospects for the American economy, but I do know that Warren Buffett's advice in an op-ed piece in the New York Times is sound. He says, "Be fearful when others are greedy, and be greedy when others are fearful."

In terms of buying a house, if you have good credit and money for a good-sized down payment, now is an excellent time to buy. I learned very early in life to buy on the downside and sell on the upswing. That's just good sense. So if now is your time to look for a house, go ahead. The supply of available homes in Denver is plentiful. Interest rates are still low. Denver's economy is solid.

And if you need someone to help you sort out the possibilities, give me a call. I only represent buyers. I can help make sense of the complexities of buying either your first home or your move-up home. You can reach me at 303-587-3509, or you can email me.

Denver Home Prices down in October…or are they?

Denver Colorado Exclusive Buyer's Agent — Wed, 08 Oct 2008 14:00:57 -0500

With the nation's financial markets in turmoil people want to know if it's a good idea, or even a doable idea, to buy a house. Paraphrasing Richard Nixon in 1970, "Frankly, if I had any money, I'd be buying a house right now." If you have good credit and a good source of financing, buying a house in Denver right now is a solid choice. The market is either at bottom, or just slightly on the rise.

Denver's real estate prices continued to drop in September. Single family home median prices were down 11.78% and average prices were down 14.84% from September 2007, while condos and townhome median prices dropped 4.73% and average prices dropped 10.75% from this time last year. More homes sold in September 2008 by 14.13%, but sales were down 6.10% from August 2007.

The only good news for sellers is that 21% fewer homes were on the market than were available for sale in September 2007. 1.48% fewer homes went under contract than did a year ago. Average days on market for both single family homes and condos/townhomes remain virtually the same as last year, indicating that homes are not languishing longer as might be expected in a soft market. The lower inventory of available homes is likely due to sellers deferring plans to sell till the market shows a substantial increase in prices.

Denver is in a much better position than many U. S. cities. The S & P/Case-Shiller report for July 2008 showed an overall 1.1% increase in home prices over June, the fourth consecutive increase. Denver was one of only two cities out of 20 measured nationally that showed any increase. Only Minneapolis showed a greater increase (1.8%).

But the continuing loss in value from last year is striking. Has Denver reached bottom? It's still too soon to say. Bottom can only be defined retrospectively, after prices start rising more consistently month over month. When will that be? It's anybody's guess.

On the whole Denver's economy is showing a slow-down, but is still in better shape than many other U. S. cities. Job growth is stable, and unemployment through September was 5.4%, less than the U. S. rate of 6.1%. Governor Bill Ritter predicts that unemployment will slowly drop through 2009, and believes the Denver economy is relatively strong. A report issued by the Governor's office on September 19th shows that "Colorado's economy...is more resilient and perhaps better poised to rebound from the current national financial turmoil than the national economy," noting that "Colorado has lower unemployment, greater job growth and lower inflation than the nation overall."

Another interesting fact indicating the strength of Denver's economy is that its credit rating was recently upgraded to AAA from Standard & Poor's Rating Service, citing its "role as the economic center for the Colorado Front Range - with a diverse economy and reliant per-capita property values" (Denver Post, 9/9/08). And Wells Fargo, one of Colorado's largest lenders has just upgraded their ratings for Denver housing from "distressed" to "stable." In an article in Denver's Rocky Mountain News (9/16/08) Thomas Thibodeau, academic director for the CU Real Estate Center in Boulder was quoted as saying that "The housing market here is vastly different than the rest of the U.S. I think the Denver housing market has turned the corner and is on the way to recovery."

Two large renewable energy projects are slated for the metro area. Rentech recently opened a demonstration plant in Commerce City to produce synthetic jet and diesel fuel. And Vesta Wind Systems announced plans to build a wind turbine blade manufacturing plant in Brighton. The two projects combined could bring as many as 1,800 new jobs to the Brighton/Commerce City area. Colorado is becoming internationally known as a center for renewable energy and aerospace development activity. "Metro Denver's dynamic and innovative industry base continues to support the region's economy through challenging times," stated Tom Clark, executive vice president of the Metro Denver Economic Development Corporation.

The Denver Post has a very useful interactive map of home values across the metro area. You can look at values by neighborhood, discover whether values are rising or declining and much more.

Interest rates are still low (conventional loans were at 5.750% for well-qualified buyers as of October 8, 2008 from our preferred lender, Rate One, The Mortgage People). Homes are more affordable. Denver's economy is steady and jobs are expected to increase this year.

You'll need to do your due diligence to compare cost of living between your city and Denver at websites like Sperling's Best Places, BankRate or CNN/Money.

Having an Exclusive Buyers Agent to find the best buys will shore up your buying ability by representing your best interests - finding the best home at the lowest possible price, and saving you time and hassles. See client references. Phone numbers available upon request. Call Judith Clausen now at 303-587-3509 to help you find your next house.

Denver Real Estate Market Heading Into Fall

Denver Colorado Exclusive Buyer's Agent — Sat, 13 Sep 2008 11:08:12 -0500

September 2008 Market Conditions

Denver's real estate prices continued to drop in August. Single family home median and average prices were 12.6% lower than August 2007, while condos and townhome median prices dropped 8.2%. The number of homes sold in August was down 9.34% from last year, and 11.34% from July. The only good news for sellers is that 20% fewer homes were on the market than were available for sale in August 2007, and that 4.98% more homes went under contract than a year ago. Average days on market for both single family homes and condos/townhomes remain virtually the same as last year, indicating that homes are not languishing longer as might be expected in a soft market.

Average sold price for single family dwellings decreased by only .43% from July, but showed a significant decrease of 13.72% from August 2007. Condos and townhomes fared better, showing an increase of 2.57% from July 2008 and an increase of 1.96% from August 2007.

Denver is in a much better position than many U. S. cities. The S & P/Case-Shiller report for June 2008 showed an overall 1.5% increase in home prices over May, the third consecutive increase. Denver was one of only two cities out of 20 measured nationally that showed any increase.

But the loss in value from last year is striking. Has Denver reached bottom? It's too soon to say. Bottom can only be defined retrospectively, after prices start rising more consistently month over month. When will that be? It's anybody's guess.

On the whole Denver's economy, like its real estate market, is better than many other U. S. cities. Job growth remains steady and unemployment through July was 4.8%, only slightly more than through the comparable period in 2007.

Average buyers stay in their homes about 5 years before selling according to independent real estate broker, Gary Bauer. (Bauer issues a monthly market report used by the Denver dailies and is widely regarded in Denver real estate circles as a market expert.) In an April 2008 report in the Rocky Mountain News by Rob Reuteman, Bauer is quoted on the issue. He says, "If I bought my home a year ago for $200,000, and I had to sell for $180,000, I'd be upset. If I'm staying in the Denver market I take $180,000 and buy a house that would have cost me $200,000 a year ago. But I'd still have a little feeling that I really didn't do so well. If I were that individual five years ago, my average appreciation would be 39 percent. Would I be concerned about a 10 percent drop in price today? I don't think so. I would have bought it for $130,000 and sold it for $180,000."

The Denver Post has updated their very useful interactive map of home values across the metro area. You can look at values by neighborhood, discover whether values are rising or declining and much more.

Interest rates are still low (conventional loans were at 5.875% for well-qualified buyers as of September 9, 2008 from our preferred lender, Rate One, The Mortgage People). Homes are more affordable. Denver's economy is steady and jobs are expected to increase this year.

You'll need to do your due diligence to compare cost of living between your city and Denver at websites like Sperling's Best Places, Bank Rate or CNN/Money.

Having an Exclusive Buyers Agent to find the best buys will shore up your buying ability by representing your best interests -- finding the best home at the lowest possible price, and saving you time and hassles. See client references. Phone numbers available upon request. Call Judith Clausen now at 303-587-3509 to help you find your next home.

Good News for Denver Home Buyers July 2008

Denver Colorado Exclusive Buyer's Agent — Sat, 16 Aug 2008 14:34:12 -0500

Denver's real estate market just got better for buyers. We thought that June prices had bottomed out, but in July median prices dropped even lower. The drop for residential single-home properties was 3.48% from June to July, but was even steeper from July 2007, a startling 10.1%.

Condo median prices rose slightly, .4%, from $148,345 in June to $149,000 in July. But prices dropped 5.7% from July 2007. One possible answer for the less precipitous price drop for condos affordability. On average condos cost much less than homes.

More homes sold in July than in July of last year, but fewer went under contract. Buyers have plenty of homes to choose from, and are taking their time making a decision about buying. They're asking for more concessions from sellers, and sellers are paying them.

Fewer homes are on the market this July than were available in July 2007, which shows a shrinking of inventory likely due to investors snapping up foreclosed homes leading to lowered prices overall. But because the number of homes on the market has decreased, it may be a sign that the Denver market is poised to recover. Sellers continue to take a beating, and predictions about when the slide will stop have proven to be inaccurate.

Denver's economy is still outpacing the nation, with "nine of 18 economic indicators show[ing] positive monthly trends and four mov[ing] in a positive annual direction. Recent trends are steady, as this month's number of positive indicators match last month's number" according to the Metro Denver Economic Development Corporation's August Monthly Economic Summary. Job growth is predicted at 1.5% for the remainder of 2008 compared to the national average of from .5% to 1%. It's still a good time to buy Denver real estate.

On average buyers stay in their homes about 5 years before selling according to independent real estate broker, Gary Bauer (Bauer issues a monthly market report used by the Denver dailies) is widely regarded in Denver real estate circles as a market expert. In an April 2008 report in the Rocky Mountain News by Rob Reuteman, Bauer is quoted on the issue. He says, "If I bought my home a year ago for $200,000, and I had to sell for $180,000, I'd be upset. If I'm staying in the Denver market I take $180,000 and buy a house that would have cost me $200,000 a year ago. But I'd still have a little feeling that I really didn't do so well. If I were that individual five years ago, my average appreciation would be 39 percent. Would I be concerned about a 10 percent drop in price today? I don't think so. I would have bought it for $130,000 and sold it for $180,000."

Interest rates are still low (conventional loans were at 6.5% for well-qualified buyers as of August 12, 2008 from our preferred lender, Rate One, The Mortgage People). Homes are more affordable. Denver's economy is steady and jobs are expected to increase this year. The metro Denver and Colorado state unemployment rate in April were 4.4%. 2,000 new jobs are expected in Colorado in 2008, and foreclosures are expected to drop by about 9% according to Patty Silverstein, Chief Economist for the Metro Denver Development Corporation.

Many parts of the country have suffered a double whammy with the real estate bubble bursting together with the number of foreclosures rising which put a downward push on prices. Denver's bubble burst in 2001, but values remained steady until 2007 when they began to drop. 2006 values increased an average of 2.7%, while values at the end of 2007 had dropped by 2%, a difference of 4.7%.

Denver's cost of living makes it an easy choice over higher cost areas like both coasts. According to CNNMoney.com it costs 51.1%% less to live in Denver than in San Jose; 43.8% less than in San Diego; 66.6% less than in San Francisco; and 12.9% less than Seattle. If you live in the east, it will cost 37.6% less than in Washington, D.C.; 32.8% less than in Boston; 101.9% less than in New York; 22% less than in Philadelphia.

You'll need to do your due diligence to compare cost of living between your city and Denver at websites like Sperling's Best Places, Bank Rate or CNN/Money.

Denver Home Prices Rise in June 2008

Denver Colorado Exclusive Buyer's Agent — Tue, 08 Jul 2008 11:49:27 -0500

For the first time since August 2007, average days on market dropped to 94 in June, three days fewer than May and 17 days fewer than January and February. Housing inventory dropped by 8.7% from May, and average prices increased from May by 4.32% to $267,005. Prices still are down by 12.19% from last year this time . But decreasing days on market, decreasing inventory, and rising prices in June indicate buyers' growing interest in purchasing as prices bottomed out in May.

Foreclosures were down in the second quarter from the first quarter of 2008 by 7.5%, though still higher than last year this time by 15.6%.

June median prices for single family homes rose slightly by 1.5% over May to $230,000. Condo median prices rose by 2.3% to

$148,345. Year over year median prices dipped by 12.5% for single family homes, and by 6.1% for condos.

Denver's economy is still outpacing the nation, with job growth predicted at 1.5% for the remainder of 2008 compared to the national average of from .5% to 1%. It's still a good time to buy Denver real estate.

A question asked by many of my buyers is "If I buy now, what about declining values? Will my home be worth less when it comes time to sell it?" The answer varies depending on how long you stay in your new home.

On average buyers stay in their homes about 5 years before selling according to independent real estate broker, Gary Bauer (Bauer issues a monthly market report used by the Denver dailies) is widely regarded in Denver real estate circles as a market expert. In a report in the Rocky Mountain News by Rob Reuteman (4/19/08), Bauer is quoted on the issue. He says, "If I bought my home a year ago for $200,000, and I had to sell for $180,000, I'd be upset. If I'm staying in the Denver market I take $180,000 and buy a house that would have cost me $200,000 a year ago. But I'd still have a little feeling that I really didn't do so well. If I were that individual five years ago, my average appreciation would be 39 percent. Would I be concerned about a 10 percent drop in price today? I don't think so. I would have bought it for $130,000 and sold it for $180,000."

The Denver Post has a very useful interactive map of home values across the metro area. You'll be able to look at values by neighborhood, discover whether values are rising or declining and much more.

Interest rates are still low (conventional loans were at 6.500% for well-qualified buyers as of July 8, 2008 from our preferred lender, Rate One, The Mortgage People). Homes are more affordable.

You'll need to do your due diligence to compare cost of living between your city and Denver at websites like Sperling's Best Places, BankRate's moving calculator, or CNNMoney's Cost of Living calculator.

Having an Exclusive Buyers Agent to find the best buys will shore up your buying ability by representing your best interests - finding the best home at the lowest possible price, and saving you time and hassles. See client references at the Buyers Advantage website. Phone numbers available upon request. Call Judith Clausen now at 303-587-3509 to help you find your next house.

May 2008 Real Estate Prices in Denver

Denver Colorado Exclusive Buyer's Agent — Sat, 07 Jun 2008 13:58:38 -0500

Good news for buyers! It's not too late to buy near the bottom of Denver's real estate prices. Although May median prices for single family homes showed a slight increase (1.8%) over April of this year, the decline (9.8%) over May 2007 was significant.

For condos the median increase in price from April to May 2008 was 10.03%, but dropped 4.5% from May 2007.

The steady increase in median price since the first of the year is largely seasonal. 2007's high point came in June when the median single family home was $263,000 and for condos was $157,950.

The number of homes sold declined by 8.2% from May of 2007. The credit crunch earlier this year took a toll on sales. But with credit requirements loosening the number of home buyers may increase in June. In May FHA increased loan limits to $406,250 ($460,000 in higher priced Boulder), though "jumbo" loan limits are still $417,000, making it more difficult to buy an expensive home.

Inventory is down from this time last year. In May 2007 the number of single family homes on the market was 21,505, while 20,287 homes were on the market in May 2008, a drop of 5.7%. 7,605 condos were on the market in May 2007 compared to 6,046 this year in May, a drop of 20.1%. The average days a home or condo is on the market also dropped 11.9% from last year for condos to 104, but remained virtually the same for single family homes at 99.

Better credit conditions and higher loan limits plus plenty of homes on the market make it a very good time to buy.

On average buyers stay in their homes about 5 years before selling according to independent real estate broker, Gary Bauer (Bauer issues a monthly market report used by the Denver dailies) is widely regarded in Denver real estate circles as a market expert. In a report in the Rocky Mountain News by Rob Reuteman (4/19/08), Bauer is quoted on the issue. He says, "If I bought my home a year ago for $200,000, and I had to sell for $180,000, I'd be upset. If I'm staying in the Denver market I take $180,000 and buy a house that would have cost me $200,000 a year ago. But I'd still have a little feeling that I really didn't do so well. If I were that individual five years ago, my average appreciation would be 39 percent. Would I be concerned about a 10 percent drop in price today? I don't think so. I would have bought it for $130,000 and sold it for $180,000."

Interest rates are still low (conventional loans were at 6.250% for well-qualified buyers as of June 4, 2008 from our preferred lender, Rate One, The Mortgage People). Homes are more affordable. Denver's economy is steady and jobs are expected to increase this year. The metro Denver and Colorado state unemployment rate in April were 4.4%. 2,000 new jobs are expected in Colorado in 2008, and foreclosures are expected to drop by about 9% according to Patty Silverstein, Chief Economist for the Metro Denver Development Corporation.

For buyers coming from the south and the midwest, Denver could cost more. It costs 14% more in Denver than in Atlanta; 49% more than in Houston; 41% more than in Dallas; 29% more than in Dayton, Ohio; 22% more than in Rochester, MN, and 23% more than in Boise. But living in Denver still costs 17% less than in Chicago, 16% percent less than in Portland, and a whopping 56% less than in Los Angeles..

You'll need to do your due diligence to compare cost of living between your city and Denver at websites like BestPlaces, BankRate, or CNN/Money.

Having an Exclusive Buyers Agent to find the best buys will shore up your buying ability by representing your best interests - finding the best home at the lowest possible price, and saving you time and hassles. See client references at the Buyers Advantage website. Phone numbers available upon request. Call Judith Clausen now at 303-587-3509 to help you find your next house.

Denver Homes Great Value for Buyers in March 2008

Denver Colorado Exclusive Buyer's Agent — Fri, 07 Mar 2008 17:10:35 -0600

In spite of national real estate market "doom and gloom" reports, Denver buyers have a golden opportunity to buy at (or near) the bottom. In February the market showed more activity than it has in recent months. Properties under contract, both detached and attached single family homes, increased over January by 12.66%, and by 4% over February 2007. The number sold decreased slightly, but that number reflects properties under contract in January. Prices for all single family homes showed a slight decrease (-.47%) from January, and a greater decrease (-3.74%) from February 2007.

Median prices increased 2% from February for detached single family homes, but decreased by 1.9% for attached single family homes. The median price for detached homes was $221,486 in February, up from $216,950 in January, but down 5.75% from February 2007. For attached homes the price in decreased from February 2007 by 7.73%. The high number of foreclosures is keeping prices low, giving buyers the advantage.

Homes are still selling for much less than the original price, but by the time sellers finally sell, on average 114 days after first listed, the sale price was 96-97% of list price. Seller concessions, such as down payment and/or closing cost assistance, is still common.

Interest rates are still low (conventional loans were at 6.375% for well-qualified buyers as of March 7, 2008, from our preferred lender, RateOne, The Mortgage People). Housing supply is as high as it's been in awhile at 25,037. Homes are more affordable. Denver's economy is steady and jobs are expected to increase this year. The unemployment rate in December was 4.5%, a half-percent lower than the national rate of 5%. 22,000 new jobs are expected in Colorado in 2008, and foreclosures are expected to drop by about 9% according to Patty Silverstein, Chief Economist for the Metro Denver Development Corporation.

New home builders, faced with a sizeable inventory of unsold homes in early 2007, have pared the excess to virtually nothing. In the 4th quarter of 2007 starts of single family new homes and condos dropped to 1,611, the "lowest quarterly starts in the seven years that Metrostudy has gathered information for the metro area" according to the Rocky Mountain News ("Metro new-home sales, starts "worst in 20 years", February 7, 2008).

You'll need to do your due diligence to compare cost of living between your city and Denver at websites like Best Places, Bankrate, or CNN/Money.

Having an Exclusive Buyers Agent to find the best buys will shore up your buying ability by representing your best interests - finding the best home at the lowest possible price, and saving you time and hassles. See client references; phone numbers available upon request. Call Judith Clausen now at 303-587-3509 to help you find your new home in Denver.

Denver Still A Buyers' Market in January 2008

Denver Colorado Exclusive Buyer's Agent — Thu, 07 Feb 2008 16:47:16 -0600

In spite of national real estate market "doom and gloom" reports, Denver buyers have a golden opportunity to buy at (or near) the bottom. The average price for single family housing across the metro area was $281,203, a drop from December's $287,874. The median price for a single family home is down by 8.1 percent from last January to $216,950 from $236,000 and from $220,000 in December 2007.

Condos also dropped to an average price of $165,510 from $170,440 in December, a drop of 2.9%. Median price dropped a whopping 13% from $154,900 in December to $134,000. Condos are a bargain now and are taking less time to sell because of buyer demand. But buyers can still expect to pay 97% of list price for condos and 96% for single family homes.

Interest rates are low (conventional loans were at 5.625% for well-qualified buyers as of February 6, 2007, from our preferred lender, RateOne, The Mortgage People). Housing supply is as high as it's been in awhile at 18,716. Homes are more affordable. Denver's economy is steady and jobs are expected to increase this year. The unemployment rate in December was 4.5%, a half-percent lower than the national rate of 5%. 22,000 new jobs are expected in Colorado in 2008, and foreclosures are expected to drop by about 9% according to Patty Silverstein, Chief Economist for the Metro Denver Development Corporation.

New home builders, faced with a sizeable inventory of unsold homes in early 2007, have pared the excess to virtually nothing. In the 4^th quarter of 2007 starts of single family new homes and condos dropped to 1,611, the "lowest quarterly starts in the seven years that Metrostudy has gathered information for the metro area" according to the Rocky Mountain News (Metro new-home sales, starts "worst in 20 years", February 7, 2008).

The Denver market is not in the same situation as many cities. We're still riding out the effects of the mortgage crisis which led to so many foreclosures, but values haven't dropped nearly as much as the rest of the country. Values dropped about 2% in 2007 and are expected to drop another 3% overall in 2008. Contrast that with Orange County, California (suburban Los Angeles) which dropped 10.2% or Boston a 13.3% drop.

Many parts of the country have suffered a double whammy with the real estate bubble bursting together with the number of foreclosures rising which put a downward push on prices. Denver's bubble burst in 2001, but values remained steady until 2007 when they began to drop. 2006 values increased an average of 2.7%, while values at the end of 2007 had dropped by 2%, a difference of 4.7%.

Denver's cost of living makes it an easy choice over higher cost areas like both coasts. According to CNNMoney.com it costs 57% less to live in Denver than in San Jose; 53% less than in San Diego; 61% less than in San Francisco; and 20% less than Seattle. If you live in the east, it will cost 51% less than in Washington, D.C.; 36% less than in Boston; 72% less than in New York; 26% less than in Philadelphia.

For buyers coming from the south and the midwest, Denver could cost more. It costs 14% more in Denver than in Atlanta; 49% more than in Houston; 41% more than in Dallas; 29% more than in Dayton, Ohio; 22% more than in Rochester, MN, and 23% more than in Boise. But living in Denver still costs 17% less than in Chicago, 16% percent less than in Portland, and a whopping 56% less than in Los Angeles..

You'll need to do your due diligence to compare cost of living between your city and Denver at websites like Sperling's Best Places, or CNNMoney, BankRate.

Having an Exclusive Buyers Agent to find the best buys will shore up your buying ability by representing your best interests - finding the best home at the lowest possible price, and saving you time and hassles. See client references Phone numbers available upon request. Call Judith Clausen now at 303-587-3509 to help you find your new home in Denver. Check out the Buyers Advantage website for info and home searches.

Congress Park Homes, Denver CO

Denver Colorado Exclusive Buyer's Agent — Tue, 22 Jan 2008 10:45:40 -0600

Congress Park is a charming urban neighborhood full of Craftsman style homes and Denver Squares. Close to downtown Denver and Cherry Creek, it is one of central Denver's most desirable neighborhoods. Tree-lined streets, friendly neighbors, parks and the Denver Botanic Gardens all offer an ambience of welcoming urban presence. Restaurants, coffee shops, quaint retail stores and new brick urban-feel condos add to the mix.

*Congress Park Real Estate Prices for December 2007

41 detached single family homes were sold with a median list price of $398,500. On average homes took 61 days to sell and sold for a median price of $395,000. Median price is a better measure of sold price than average, which is skewed by a few high-priced homes at the top end and low-priced homes at the bottom. Lowest sold price for detached single family homes was $171,500; highest sold price was $825,000. For condos and townhomes (attached family homes) the lowest sold price was $99,900 while the highest was $500,000. The median sold price was $141,500, and the average was $174,528.

The ratio of sold to list price was 97.78% for detached homes. The ratio of sold to original price was 93.47%. The net sold (after seller concessions such as down payment or closing cost assistance, and the like) to original list price was 93.97%. To simplify, if a seller originally listed their home at $300,000, they realized $281,910 from the sale.

By the time the property sold, the sold to list price was 97.40%.

*Data from July 1-December 31, 2007

Call Judith Clausen at 303-587-3509 if you'd like more information about Congress Park homes for sale, or go to Buyers Advantage Real Estate of Metro Denver, Inc. to search for homes.

Good news for Denver home buyers

Denver Colorado Exclusive Buyer's Agent — Thu, 17 Jan 2008 10:29:14 -0600

Good news for Denver home buyers according to the chief economist for the National Association of REALTORS®.

Lawrence Yun spoke to area REALTORS® yesterday (January 16, 2008) at a meeting of the Jefferson County Association of REALTORS® in Lakewood, Colorado, citing "irrational pessimism" on the part of buyers for what may be holding back a recovery in the Denver real estate market.

Denver has been the canary in the coal mine since 1991 when it began to recover from the housing slump beginning in the 1980s. Double-digit increases in value in the 1990s followed the S & L crisis, presaging a recovering housing market throughout the early 2000s in the rest of the country. The dot com failures of the early 2000s began a downturn in the Denver real estate market in 2001, much earlier than nationally. Prices stayed steady from 2001 to 2006, and only began dropping in the last quarter of 2007. The drop has been minimal compared to the rest of the country, and isn't expected to last.

Is that canary still a reliable precursor for the rest of the country? Only time will tell.

In early 2008 conditions are optimal for Denver home buyers. Interest rates are at a 45 year low point, prices are lower than they've been in recent months, inventory is high. The "credit crunch" doesn't apply to home buyers who have good credit and a down payment. Colorado just posted the fourth straight annual gain in jobs and the lowest unemployment figures in years (3.8%). Job growth for 2008 is expected to be 2.4%. Unemployment in Colorado is lower than the nation at 4.5% for December. Now is the time to take those home buying plans off the back burner while sellers are making hefty concessions.

If you're thinking about buying a home in Denver, be sure to hire your own Denver Exclusive Buyer's Agent. The fee comes from the transaction at closing paid by the listing agent. Sellers have representation, and so should you. Call Judith Clausen, Broker/Owner of Buyers Advantage Real Estate of Metro Denver at 303-587-3509 or email Judith@Buyers-Advantage.net to see how you can save money and avoid the pitfalls of buying a metro Denver home.

Denver Home Prices Still Down at End of 2007

Denver Colorado Exclusive Buyer's Agent — Tue, 08 Jan 2008 17:16:23 -0600

The Denver real estate market continues to improve for homebuyers. While homes available for sale in December continued a decline that began in August, reducing inventory by 9.3% compared to a rise a year ago of .28%, median prices for single family homes also declined from $229,500 in November to $220,000 in December, a drop of 4.14%.

Condo median prices increased from $139,000 in November to $140,000 in December, an increase of 7.19%.

The rate of increase of all properties going under contract dropped dramatically in December by 15.12% A year ago the rate was a positive 2.19%, a difference of 17.31%. The credit crunch following the sub-prime mortgage crisis likely was a factor, plus homebuyers taking a longer time to scour the market for their perfect property.

Denver real estate is taking longer and longer to sell, 105 average days on market for single family homes and 114 days for condos.

The percent of list to sale price has stayed steady for most of the year, varying from 97% to 98% for single family homes and for condos. But in December the rate dropped to 96% for single family homes. On average sellers of single family homes are getting only 92% of the price they originally asked for and are having to lower prices substantially before a buyer will bite. Condos are getting only 90% of the original list price, though when they finally do sell, but they're getting on average 1% more than sellers of single family homes.

Interest rates are still low for borrowers of conventional mortgages, below $417,000. The lender I most often recommend quotes 5 3/4% as of January 8, 2008. With the fed expected to lower rates by a full point at its next meeting, interest rates should stay low throughout 2008. It's a great time to buy!

For further information or for questions contact Judith Clausen at Buyers Advantage Real Estate of Metro Denver, 303-587-3509.

Denver Remodeling: Which Projects Pay Off?

Denver Colorado Exclusive Buyer's Agent — Tue, 18 Dec 2007 23:35:39 -0600

If you're thinking of buying a house that needs some remodeling, the top two projects that will recoup at least 75% of your outlay are an attic bedroom remodel (78.9%) and the addition of a wood deck (78.2%). A major upscale kitchen remodel on average will cost you $106,434 and you'll recoup 69.6% of the cost when you sell. A basement remodel costs $56,476 and will yield $41,656 at sale, a 73.8% recovery.

Recovering remodeling costs isn't the primary reason homeowners take on a remodeling project. But it's a factor to be considered in today's market. If you plan on staying in your home the cost can likely be recovered in a few years with Denver's appreciation increasing every year from 1988 to 2005.[i] [2006 showed the first price drop in nearly 20 years, but 2007 is expected to show rising values, though slight.] If you're planning to fix up your house and move within the next year then you probably don't want to engage in a costly remodeling project. The best projects for resale are remodeling your kitchen or bathrooms, and adding a bathroom as long as it doesn't reduce the number of bedrooms. In other words, you don't want to convert a small bedroom into a bathroom. No matter how small the bedroom it's still a bedroom, and buyers want bedrooms, at least three.

But for those who do want to remodel, which projects will be worthwhile to take on? According to the National Association of REALTORS® annual Profile of Buyers Home Feature Preferences 2007 the addition of whole house air conditioning is a top priority. If the house doesn't have it, buyers want it. The cost runs about $2,000 to $4,000, depending on the size of the house. If the house doesn't already have a forced air heating system, the cost to put in ductwork can be prohibitive. In Denver's climate an acceptable alternative is evaporative cooling ("swamp" cooler).

A minor midrange kitchen remodel will cost $20,512. For a 200 sq. ft. dated kitchen, you'll be able to reface your cabinets and drawers (30 linear ft.) with new raised wood doors and drawer fronts, replace old hardware, replace laminate countertops and vinyl floors, replace a wall oven and cooktop with energy efficient models, and install a new moderately priced sink and faucet. You'll be able to paint the trim and add wall covering, which all should make for a modest improvement and a better kitchen.

An in-between midrange major kitchen remodel would give you semi-custom wood cabinets, a 3 by 5 island, laminate countertops, a standard double stainless steel sink with a standard single-lever faucet, an energy efficient wall oven, cooktop, ventilation system, built in microwave, dishwasher, garbage disposal and custom lighting. You'll get new vinyl flooring and a new paint job, including trim. It will run you $52,816 and you'll recoup 70.2% when you sell within a year.

If you want to go all out, you can have an upscale major kitchen remodel for $106,434 which will includetop of the line cherry cabinetry with built-in sliding shelves, stone countertops with glass tile backsplash, a built in refrigerator and cooktop and a 36" commercial grade range with a vent above and a built in warming drawer. A trash compactor, built in microwave/convection oven combo, a high end undermount sink with designer faucets and a built in water filtration system are included. New lighting including general, task and under cabinet lighting will be a plus, and the new cork floor will make standing while cooking or cleaning up a dream. The cost will be $106,434 and you'll be able to recoup 69.6% of the cost if you have to sell within a year.

Other projects have varying rates of cost recovery.[ii] The chart below shows projects many Buyers Advantage clients have expressed interest in. The highest value project across the country for the last few years is a minor kitchen remodel - best for resale and best for comfortable living.

*Project - All Midrange*	*Cost*	*Cost Recovered*
Basement Remodel	$56,476	73.8%
Bathroom Addition	35,409	56.6%
Bathroom Remodel	15,171	67.8%
Roof Replacement	14,238	55.1%
Window Replacement (vinyl)	9,669	72.4%
Window Replacement (wood)	10,578	75.9%

[i] THE REAL ESTATE CYCLE IN 2006: Evaluating Market Position, Identifying Turning Points and Constructing Scenarios Christopher L. Cagan, Ph.D., Director of Research and Analytics, First American Real Estate Solutions ccagan@firstam.com

[ii]

For further information or for questions contact Judith Clausen at Buyers Advantage Real Estate of Metro Denver, 303-587-3509.

Denver Home Prices Down in November

Denver Colorado Exclusive Buyer's Agent — Thu, 06 Dec 2007 16:14:30 -0600

Denver real estate may have hit bottom, which means it's a really good time to buy. Interest rates have been dropping and so have prices. Buyers can virtually write their own ticket for seller concessions -- down payment help, closing cost contributions, buying down the interest rate, and even more creative assistance.

Buyers are getting houses at an average 3% discount, a figure which has stayed pretty steady over the last year. But the discount is much greater when considering the seller's original asking price. In both October and November sellers' original asking prices on average was 79-89% of what they got at closing. What that means is that sellers were having to discount their original asking price by 21 to 31% of what they originally thought they should realize. The year-to-date discount was an average of 10%. By the time sellers realized they had to lower prices their homes (and condos) had been on the market on average 100-103 days.

The median price for single family homes was $229,500, a drop of 4.38% from November 2006, while for condos was $139,000, a 10.8% drop from last November's $155,750. According to one local real estate expert, some homes are priced so high they'll never be sold in today's market, a discouraging thought for sellers. If you're a buyer and you run into one of these houses, don't be discouraged, there are plenty more out there to look at.

For further information or for questions contact Judith Clausen at Buyers Advantage Real Estate of Metro Denver, 303-587-3509.

Whose Fault is the Denver Real Estate Slump?

Denver Colorado Exclusive Buyer's Agent — Sat, 17 Nov 2007 14:14:07 -0600

In this morning's Rocky Mountain News a reader thinks he has the answer. John A. McElroth of Arvada blames it on "the builders, mortgage people and real estate people" who "did it to themselves." He thinks real estate is "booming," and cites an article he read somewhere that says mortgage people and builders conspire to raise new home prices, and real estate people talk sellers into higher prices.

Mr. McElroth seems not to have the facts straight. Real estate in the Denver area did boom in the 90s during a time when we thought our economy was on a non-stop path to eternal prosperity. A house went on the market and buyers outbid each other to buy it. Homeowners refinanced their mortgages at the drop of an eighth of a point, paying huge fees in closing costs and extending their loans another 30 years, spending the proceeds on remodeling, vacations, cars and anything else they wanted. Everything was at a fever pitch. And prices DID rise.

But in 2001 everything came to a sudden halt. The Colorado economy began to tank, largely due to the bursting of the dot.com bubble. Jobs were lost. A steady stream of relocating home buyers slowed to a trickle and the housing market felt the repercussions. And what had been a solid sellers' market in the 90s turned on a dime in 2001 into a buyer's market which continues today.

When sellers tried to sell for double-digit increases over what they paid, it wasn't so much real estate people who encouraged them, but the experience of having faced significant increases when they themselves purchased. They didn't understand the market, and sellers bent on getting more than they paid are hard to convince to list their homes at TODAY'S market price. If real estate agents didn't promise to list their homes at the price the sellers insisted on, the agent wouldn't get the listing.

Agents did try to get home sellers to list at a reasonable price, but sellers didn't believe their house wouldn't sell for 10-25% more than they paid for it. So agents listed at the inflated price and told sellers they'd have to lower the price if it didn't sell within x number of days. By the time sellers experienced the reality of the market, the listing was "tired," meaning people looking to buy a house in that price range saw that it had been on the market for awhile, the price was too high for what comparable houses had sold for, and they walked away. In droves. Which left a high inventory and a dwindling number of buyers. The laws of the marketplace -- supply and demand -- caught up with these sellers and they were forced to lower prices. Meanwhile buyers were getting houses at bargain prices, and sellers were offering incentives to get buyers to buy.

Meanwhile, people who had signed up for Adjustable Rate Mortgages (ARMs) and didn't have the money to refinance before rates went up, lost out when rates DID go up and their payments increased. (Another story.) Other buyers had chosen other risky loans, and still others were fleeced by some unscrupulous mortgage brokers. By 2005 Colorado had the highest rate of foreclosures in the nation, which just added to the inventory.

Doubtless there are other facts that contributed to the housing slump, but in basic outline that's what happened.

Comments welcome!

For further information or for questions contact Judith Clausen at Buyers Advantage Real Estate of Metro Denver, 303-587-3509.

Paying Cash or Financing a Home: Which is Best?

Denver Colorado Exclusive Buyer's Agent — Fri, 09 Nov 2007 17:30:49 -0600

Recently I've had a lot of cash buyers. It's a great time to buy a house in Denver. The market here is still a buyer's market, and is beginning to bottom out. There are good reasons for paying cash, but just as good reasons for financing a home purchase.

In several cases my clients wanted security. One young woman had been in a severe accident and spent the last year in rehab just getting to the point where she could work again. She didn't want to ever have to worry about not having a place to live, so she paid cash for her new little villa. Another was being staked to his first home, a condo, by his grandparents who wanted to see this young lawyer get his start in life with the security of a home of his own. Another older man, retired and widowed, didn't want to have to worry about a financial downturn and felt far more secure with a paid up home.

But another client is trying to decide which is best for their circumstances -- paying cash or taking out a mortgage.

So what do you think? What would you do if you had enough cash to pay for a house? Would you do it?

For further information or for questions contact Judith Clausen at Buyers Advantage Real Estate of Metro Denver, 303-587-3509.

Denver Home Repair Classes, Workshop for Women November-December 2007 Schedule

Denver Colorado Exclusive Buyer's Agent — Fri, 09 Nov 2007 13:37:41 -0600

Denver women who want to improve their home repair skills are invited to register for November classes. This is a great opportunity to learn from a master craftswoman how to do the kinds of things around the house that have mostly been left to the men. Judy Browne is an amazing woman who had a great idea, Workshop for Women. Judy was an AmeriCorp volunteer and learned how to build a home from the ground up working for 14 months with Habitat for Humanity.

The new schedule for November and December has just been published. The one I'd like to take is Closet Design Clinic -- it's time to organize my closets! I need to be motivated, and this is just the ticket.

If you'd like to register go to the site and sign up! The flyer below is a photo and the links won't work there.

For further information or for questions about Denver real estate contact Judith Clausen at Buyers Advantage Real Estate of Metro Denver, 303-587-3509.

Using the Internet to Buy a Home in Denver

Denver Colorado Exclusive Buyer's Agent — Wed, 07 Nov 2007 18:45:27 -0600

Buying a home in Denver is not for the uninformed! You can look at a lot of different places on the internet for Denver real estate, but more than a few are just plain bad. Denver home buyers should avoid CraigsList.com which doesn't have much inventory (a few hundred compared to 24,000+ on the Denver MLS) and is mostly used by listing agents who want to publicize their listing on all the advertising venues or For Sale By Owners whose homes may well be overpriced. What you need when you look at CraigsList is the ability to know whether a home has been on the market FOREVER, whether it's on a busy street, whether it's in foreclosure, whether it's a "fix and flip", what the seller paid for it, and any number of other data that will help a home buyer determine: Is this home a good buy?

And if you're relocating to Denver, you'll especially want someone who can give you the information you need. You may not know whether the home you see on internet sites like Trulia.com or Zillow.com is the product of the agent paying to put it there, whether the information you get is truthful or just hype.

Mortgage fraud and foreclosure scams populate the Denver real estate market. Values are dropping in some neighborhoods and rising in others. You want to know which is which, where are the best homes for your money, and which neighborhoods are in danger of dropping values.

A Denver Exclusive Buyer's Agent (EBA) can help you sort it all out. Buying a home in Denver isn't like buying a new winter coat from L. L. Bean. You need expert guidance about the home you're interested in. You need to have qualified professionals advising you about the condition of the home and the condition of the neighborhood, about the best financing for your unique situation. You need someone who's an effective negotiator, someone who can make things happen that less experienced agents might not think of. You don't want to spend your time or risk your money using an agent who may not be able to get the job done. You can choose an effective Denver Buyer's Agent who's bound by an ethical code and by Colorado law to put your best interests above any other interests, including her own.

It's always your decision.

For further information or for questions contact Judith Clausen at Buyers Advantage Real Estate of Metro Denver, 303-587-3509.

Denver Home Prices down in October…or are they?

Denver Colorado Exclusive Buyer's Agent — Wed, 07 Nov 2007 12:43:02 -0600

Again this month, it depends where you're looking.

October median single family home prices fell 4.41 per cent over last month, which had fallen 4.85 percent over September. So the two month loss is actually 9.05 percent from August 2007. Average prices have followed a similar trajectory, falling 5.14 percent from September and 12.14% since August. Most of the drop is due to a glut in inventory, although inventory is down somewhat from last year this time by 2.7 percent

The median price for single family homes in October was $234,200. Average price was $289,754. For condos the median price was $140,000, 5.41 percent lower than in September, and 8.20 percent lower than August. The average price was $176,222, 2.89 percent less than September, and 3.57 less than August.

More condos and single family homes sold in October than in the previous two months, indicating solid buyer activity.

But the above figures don't tell the story of individual neighborhoods. For instance, in East Washington Park, a very popular neighborhood for relocating and move-up buyers, prices have risen 10.3 percent over the last year. Average sold price in October for a single family home is $642,893, well above Denver's average.

In popular City Park, where the average sold price is $344,938, prices have risen just as high, 10.7 percent. And in the gentrifying Five Points neighborhood, prices have risen 10.8% to an average of $302,380.

Buyers are still getting good deals. It could be a statistical error, but according to October figures generated by Denver Metrolist (MLS) the ratio of list to original sales price in October was 79%, which means a whopping 21% discount. Some sellers may still think they're in the hyperinflated market of the 1990s when monthly double digit increases were the norm. Prices have stayed relatively steady since Denver's uptick came to a halt in 2001 until September 2007 when a decrease became noticeable.

It's not easy to predict the future, especially with the subprime and foreclosure mess we have on our hands. In an online conversation with Paul Krugman, Princeton economist and New York Times columnist, in response to my question about the potential for a financial calamity in the U. S., he said:

One chance in five? Some things, like the falling dollar, don't worry me too much. But the potential fallout from the housing bust is very big....What we have now is a banking crisis that doesn't involve banks - instead, it involves "special investment vehicles" and other things that sort of act like banks, accepting what amount to short-term deposits, but fall outside bank regulation. And if this turns into a full-fledged nonbank bank run, which almost happened in August, it's a real mess. In a sense we're looking at what happens when people take free-market ideology too seriously. The Great Depression taught us that banking needs some supervision if you want to avoid potential disaster. By 2000, when Alan Greenspan was brushing off warnings about subprime, we'd forgotten that lesson. November 5, 2007, RockyMountainNews.com

I don't think we'll suffer quite as much here as in other parts of the country. Denver began its correction in the early 2000s and may well be ahead of the rest of the country, especially places like California where prices are predicted by some to fall as much as 35% before the market there stabilizes due to the scarcity of jumbo loans (loans over $417,000) necessary in high-price areas. Denver's declining values are typically seen in neighborhoods priced below the median price. Higher priced areas seem to be holding their own, or as recently, seeing a rise.

Denver's cost of living makes it an easy choice over higher cost areas like both coasts. It costs 18.8 percent less to live in Denver than in San Jose; 26.9 per cent less than in San Diego; 51 percent less than in San Francisco; and 11.3 percent less than Seattle. If you live in the east, it will cost 34.2 percent less than in Washington, D.C.; 25.2 percent less than in Boston; 53.6 per cent less than in New York; 10.7 percent less than in Philadelphia.

For buyers coming from the south and the midwest, Denver could cost more. It costs 3.9 percent more in Denver than in Atlanta; 11.4 percent more than in Houston; 1.1 per cent more than in Dallas; 13.8 percent more than in Dayton, Ohio; 2.2 percent more than in Minneapolis-St. Paul, and 1.2 percent more than in Detroit. But living in Denver still costs 9.9 percent less than in Chicago, 1.1 percent less than in Portland, and a whopping 35.2% less than in Los Angeles..

You'll need to do your due diligence to compare cost of living between your city and Denver at websites like BestPlaces, BankRate, or Money.com.

For further information or for questions contact Judith Clausen at Buyers Advantage Real Estate of Metro Denver, 303-587-3509.

September 2007 Denver Real Estate Market Conditions

Denver Colorado Exclusive Buyer's Agent — Fri, 12 Oct 2007 16:45:44 -0500

Denver's September housing continued its downward trend with fewer houses purchased, fewer houses on the market, and declines in prices. Builder inventory is still high as are foreclosure properties, great conditions for buyers thinking about purchasing now. Yes, it's still a buyer's market in Denver and should continue to be favorable for buyers for the foreseeable future, at least into fall of 2008, perhaps longer.

Median house prices dropped in September to $245,000, 4.6 percent lower than August's $258,000, but 1.1 percent higher than $243,500 in September of 2006. The number of houses sold in September was down by 25.74% from August, a precipitous drop. Condos and townhomes sales dropped 24.18% from August. The average price of homes was down from August by 7.38 percent, while condo prices dropped less than 1 percent.