An Information Service of RE/MAXAlliance/Boulder Valley
November/2009
To say that 2009 has been an interesting year thus far would be a huge understatement. The true impact of a global economy has become part of the world’s consciousness. Billions upon billions of tax payer dollars have been poured into various state and government programs to hopefully stem the tide of growing unemployment. The stock market has wreaked havoc with individual’s retirement funds and future plans. Real estate values have tumbled across nearly all sectors of the American landscape. A pessimist would say the sky is falling. An optimist would say there is opportunity to be had here. A brief article in the Denver Post newspaper (11/8/2009) had the following headline: Homebuilders on the hunt for land as prices stabilize. The article talks about large production builders i.e. Ryland Group Inc. and Meritage Homes Corp. purchasing land for new home development in areas like Southern California, Las Vegas and Orlando. These have been some of the hardest hit housing markets in the nation.
Real estate markets fall quickly and recover slowly. Two things normally signal an upbeat in real estate activity: (1) Sales trends having stabilized and beginning to move upward, and (2) New home construction increasing. For the past two months, Boulder County SOLD listings have mirrored 2008: 471 single family home sales in 2009 vs. 483 in 2008; 197 attached unit sales in 2009 vs. 186 in 2008.
During the last two years there has been minimal new home construction across the Boulder Valley. In a balanced real estate market, where there are a reasonable number of home buyers and an acceptable number of properties for sale, new home construction becomes part of the housing landscape. Homebuyers contract to have new homes built and builders are willing to take the risk of building “spec homes” anticipating they will attract a buyer during the construction phase.
Risk versus reward is the key element in most real estate transactions and it doesn’t apply solely to the buyer and seller. Standing in the wings is a third entity and, in most cases, they are the determining factor in how this all plays out. They are the purveyor of the golden rule: He who has the gold makes the rules! They are the lender.
New home construction is dependent upon financing; financing of construction loans and financing of permanent loans when the home is completed. Builders are at the mercy of the lender. Most lenders today shy away from new home construction unless it is a “presale” and the lender’s risk is minimal. Want to build a spec home and get lender financing? Good luck finding a bank that will work with you without 30% to 40% down, two to three points over prime, etc. The good old days of 20% down construction loans at prime or prime plus one are history.
-------------------- Below is a brief overview of single family home values within certain geographic areas of the Boulder Valley comparing the past two years through October of each year. Information is provided by IRES, the Northern Colorado Multiple Listing Service.
Here's an interesting program being offer for Fannie Mae Borrowers, it will be interesting to see how this impacts the foreclosures of Fannie Mae loans...
November 5, 2009
WASHINGTON, DC -- Fannie Mae (FNM/NYSE) is implementing the Deed for Lease™Program under which qualifying homeowners facing foreclosure will be able to remain in their homes by signing a lease in connection with the voluntary transfer of the property deed back to the lender.
"The Deed for Lease Program provides an additional option for qualifying homeowners who are facing foreclosure and are not eligible for modifications," said Jay Ryan, Vice President of Fannie Mae. "This new program helps eliminate some of the uncertainty of foreclosure, keeps families and tenants in their homes during a transitional period, and helps to stabilize neighborhoods and communities."
The new program is designed for borrowers who do not qualify for or have not been able to sustain other loan-workout solutions, such as a modification. Under Deed for Lease, borrowers transfer their property to the lender by completing a deed in lieu of foreclosure, and then lease back the house at a market rate.
To participate in the program, borrowers must live in the home as their primary residence and must be released from any subordinate liens on the property. Tenants of borrowers in this circumstance may also be eligible for leases under the program. Borrowers or tenants interested in a lease must be able to document that the new market rental rate is no more than 31% of their gross income.
Leases under the new program may be up to 12 months, with the possibility of term renewal or month-to-month extensions after that period. A Deed for Lease property that is subsequently sold includes an assignment of the lease to the buyer.
For additional information about the Deed for Lease Program, including full details on program eligibility, please review the Guide Announcement on www.efanniemae.com.
Are you starting to think about hanging up your holiday lights this year? Consider trading your old lights in for new energy efficient LED lights!
City of Louisville Holiday Lights Exchange Program for Louisville Residents Turn-in your strings of old Incandescent Holiday Lights for recycling and get a $5 Discount Coupon per string (limit 4), for new LED Holiday Lights you can purchase at participating Louisville Merchants! Turn in your old lights at the Louisville Recreation Center, Saturday, Nov 7th 2009, 10am-2pm. Please bring proof of your Louisville residency to receive coupons, since this program is only for Louisville residents. We have a limit of only 400 coupons, so don’t wait too long! LED lights use an average of 90% less energy than mini-incandescent lights, and can use only .6% of the energy draw of large incandescent bulbs (C9). So using LED holiday lights can significantly reduce the amount of energy you have to pay for during the holiday season. And that can be helpful when you’re trying to reduce your expenses, especially with all the other costs you have during the holidays. The following chart compares the energy usage and operating cost of LED holiday lights to both mini and large incandescent holiday lights in your home.
Now that the last snow has melted and uncovered your fall leaf collection, are you thinking of raking and disposing of them?
Perfect timing! See below:
Leaf Collection 2009, November 2 - November 20
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As a result of budget impacts, the City will no longer offer curbside pick ups or bagged leaf collection. However, the City has expanded its drop-off program to include new locations throughout town. You may drop your leaves at any of these locations.
If you are unable to take your leaves to the drop-off locations, you may utilize Western Disposal’s compost bins. Just toss your leaves into the compost bins and Western will take them away with the rest of your compost! As a reminder, please do not rake leaves into the street curbs or gutters. This activity may plug up storm sewer inlets and cause flooding.
LEAF DROP-OFF LOCATIONS: Please note: only leaves and grass clippings are accepted at the drop-off bins (no trash, branches, or plastic garbage bags).
Leaves may be dropped off at any of the designated sites from November 2 – November 20 (dates are approximate). The numbers below correspond with the numbers on the attached map.
Waste Water Treatment Plant: 1601 Empire Road, open daily, 7:00 AM to 3:00 PM (leaves are accepted at the plant 365 days per year);
Warembourg Fishing Pond Parking Lot: Cherry Street, just east of Heritage Park;
North Lift Station: East side of Centennial Drive, in the 2100 block, north of Safeway;
Harper Lake Parking Lot: McCaslin Boulevard and Washington Avenue;
Gateway Lane: McCaslin Boulevard and South Boulder Road - east end of cul-de-sac;
Recreation Center: 900 West Via Appia - south end of the parking lot;
Coal Creek Golf Course: 585 Dillon Road, west side of parking lot
Lafayette Street and Franklin Court: west end of street
Louisville Community Park: East entrance off County Road north of Bella Vista Drive.
Memory Square Park: at dead end just south of the intersection of Walnut Street and Grant Avenue.
Lincoln Avenue and Griffith Street: Open area on northwest side.
Monarch Court: By Keith Helart Park
South Street and Front Street: 1 block North of the Steinbaugh Pavilion
If you use plastic bags to collect leaves for disposal at the drop-off sites, please empty the leaves into the bins and reuse the bags. This helps control the cost of the program, saves the cost of the bags, and keeps bags out of the landfill. The City will collect only compostable bags at the drop-off sites. Eco-Guard® compostable bags will be available at local area grocery and hardware stores. King Soopers “Biobag” brand is also acceptable. Do not leave trash, branches, or plastic garbage bags in drop-off sites. Your cooperation is greatly appreciated!
Last year, the leaf collection program produced over 2,000 yards of compost material when incorporated with biosolids at the Waste Water Treatment Facility. This material is available to residents for use as a soil amendment for lawn, gardens, and other landscaping needs. If you have any questions, please contact the Public Works Operations Division at 303-335-4750.
You could be a victim of identity theft and not even know it!
Northern Colorado Crime Stoppers is trying to prevent you from becoming a victim through a free Document-Shredding Event. Saturday, August 29th, 8 am until noon. Hobby Lobby - King Soopers Shopping Center, highway 42 and South Boulder Road, Louisville.
Northern Colorado Crime Stoppers will be accepting donations at the event.
Sponsored by: Louisville and Lafayette Police Departments, Boulder County Sheriff's Department, Louisville, Lafayette and Superior Chambers of Commerce and APEX SHREDDING CO. OF BERHTOUD.
BRING - Old checks, bills, bank statements, credit card offers, medical records, tax forms, pay stubs, etc. DO NOT BRING - Newspapers, phone books, magazines, junk mail, plastic, cardboard or catalogues. 5 COPY BOXES OR BAGS PER SMALL BUSINESS OR HOUSEHOLD (Exceptions, call Rob 303-666-6199).
Rob Kelly REALTOR®,CDPE www.RobKellyColorado.com www.DenverForeclosureTour.com
RE/MAX Alliance 225 South Boulder Road Louisville, CO 80027 720-284-9211 Cell
Great Northglenn home for sale. COMPLETE RENOVATION BY QUALITY CONSTRUCTION NORTHGLENN PERMITS,NICEST HOME AVAILABLE 42 INCH MAPLE CABINETS, SS APPLIANCES, GRANITE COUNTERS, NEWER FURNACE, AC, WATER HEATER, CARPET, DUAL PANE WINDOWS, COMPLETE LANDSCAPE, 3 BR ON MAIN, 2 NON-CONFORM IN BASEMENT
I sure have been thinking alot about trash lately! We received our new trash, recycling and compost containers recently and now I need to think about which bin my trash goes into. It's all good, but I need to learn what goes where and when to put the compost bin out for pickup vs the recycle bin.
In Louisville, we are Thursday Schedule E and this week is our first compost bin pickup.
An Information Service of RE/MAX Alliance/Boulder Valley
June/2009
As we begin the trek toward the dog days of summer, below are some thoughts about the nature of the home mortgage industry and the real estate market in general. It's important to understand and acknowledge that the old way of purchasing real estate i.e. do you have a pulse and can you spell your name, as the only criteria for acquiring a loan, are gone forever. Lenders, appraisers and title companies today are no longer risk oriented. They are playing by a whole new set of rules and the rules aren't always particularly favorable to the buyer or seller.
Financing in today's real estate market is taking longer to obtain and more difficult to get. When a lender says we can get you approved in twenty-four or forty-eight hours, that usually means we can get you approved subject to an acceptable appraisal and you bringing in every financial document you've ever owned for us to cull over. If your loan is being sold into the secondary market i.e. Fannie Mae or Freddie Mac, it better be an A+ loan or the lender will have to belly-up to the bar with the funds. Fannie Mae and Freddie Mac are not in the business of being the depository for loans that may potentially go south. They have too many of those on the books right now.
In today's economic client, most people are looking for a deal. Whether it's the best price on a home, a car or your cable bill. This is the age of "negotiation". As such, many lenders are willing to negotiate to get your loan. They'll use phrases like ... no problem getting you approved in two weeks ... or ... low/no closing costs ... or ... we can get you a loan 1% under the market ... etc. Be cautious of lenders bearing gifts; read the fine-print; make-sure you understand the Truth in Lending disclosure. What appears on the surface to sound great, may result in not being what you envisioned or what you were led to believe.
The Boulder County real estate market continues to ebb along. The inventory of available single-family homes is down slightly over 14% this time of year versus last year. Through May, sales are off around 38% for single-family homes and the same for attached units as compared to 2008. The spring sales push, which the market normally experiences, has not exhibited the same level of energy this year as the previous three years. Homes continue to sell, and sales are increasing, but not an exponential rate.
So, the question in most people's minds is: Where to do we go from here if we want to buy or sell real estate? Unfortunately, there's no simple answer to that question. People who are attuned to risk see this as an opportune time to take advantage of current market conditions and invest in real estate. They look for deals. They are willing to negotiate. They know that real estate markets have historically trended-up over time.
Other people may be much more conservative. Risk isn't in their blood. They have a tendency to wait and see what happens rather than try to anticipate what might happen. Often the path of least resistance is not to leap, but rather to sit on the sidelines and get in the game when the timing feels comfortable to them. No problem with that.
For those individuals who are willing to roll the dice and step to the starting line, now is an excellent time to give some consideration to making that move or to invest in real estate. There are opportunities out there to be had. Motivated sellers and relatively low mortgage interest rates make for good bed fellows.
While some people go all out in building green in order to lessen their home's "footprint" on the environment,most consumers want to upgrade their homes to experience green benefits like these:
• Have more control over future maintenance costs,
• Lower, manage, and better predict monthly expenses,
• Enjoy health benefits, including lower emissions and better air quality, and
• Improve their home's resale value and marketability.
Pick One Project ... or Two
Even for homes where it doesn't make sense to remodel, homeowners can still enjoy economic and health benefits by implementing one or more green improvements as they are able:
• Tankless water heaters heat water only on demand.
• Low-E windows have a thin layer of metal that helps keeps the hot side of the window hot and the cool side cool, thereby saving energy on heating and cooling bills.When purchasing windows, pay attention to the U-factor, which measures the rate of heat transfer, and also the SHGC rating, which measures how well a window blocking unwanted heat gain. Low-E windows are well worth the price, since homes can lose up to 25% of their heat through the windows. Properly installed low-E windows can reduce energy loss by 30-50%.
• Storm door installation provides extra protection against inclement weather and can increase energy efficiency by up to 45%.
• Paints and materials that contain low- or no-VOC (Volative Organic Components) cut down on landfill pollutants as well as help keep indoor air clean.
• Spray foam insulation increases to 100 times its initial volume and therefore better fills in air gaps than fiberglass insulation. It's also non-toxic and has a lifetime guarantee. Energy savings: Up to 50%.
• Landscape responsibly. Xeriscaping with native and drought-resistant plants helps conserve water. Strategic planting of trees and careful maintenance of existing mature trees can help reduce energy costs by shading a house.
• Retrofitting radiant heat can be pricey, but the savings in energy costs mean it will eventually pay for itself. Radiant heat is often more comfortable than forced air, and better for people with allergies.Additionally, people don't get cold feet and therefore tend to keep the thermostat a degree or so lower as well.
• Programmable thermostats allow homeowners to automatically reduce heating and cooling during times when it is not needed as much. Energy savings:As much as 5-20% off a monthly energy bill if the heat is turned down 5 degrees at night and 10 degrees during the day when no one is home.
• Ceiling fans may provide enough cooling for some rooms and can reduce the need for air conditioning.
• Caulking windows and doors is one of the easiest and least expensive ways to improve energy efficiency in a home- in fact, it will usually pay for itself in energy savings within a year.
• Replace exterior wood doors with insulated metal or fiberglass doors. Wood is not a good insulator, and fiberglass doors now give the appearance of wood while insulating 5 times better.
• Choose LED lighting. LED stands for "light emitting diodes," which are small devices resembling a computer chip sandwiched between thin layers of plastic or glass.When charged with electricity, the diode emits lights. Benefits of LED lighting: It has no hazardous chemicals like other lighting options.The price over its lifetime (good quality bulbs can last more than 50,000 hours) make it an economical alternative to standard lightbulbs. LED lights generate very little heat and 80-90% of electrical power goes directly to generating light, compared to incandescent bulbs where only 5-10% of the energy is used to create light (the rest creates heat). Finally, LEDs give more light with less glare, a plus for an aging population.
• Low-flow showerheads and toilets help homeowners conserve water.
• Solar orientation is one area homeowners can't change about their existing home, but a passive solar retrofit means adding solar features to an existing house. For example, the location of sunrooms should be true solar south for greatest heat gain.
• Smart irrigation technology may be the biggest change in lawncare since the automated sprinkler system. Evapotranspiration (ET) controllers automatically adjust watering based on the weather and typically pay for themselves in water savings after about two years. Please keep in mind that this is only a partial list of many projects that can increase the value of a home, as well as improve comfort and reduce energy costs. For more information on these and other green recommendations, visit:
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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