Jude's Real Estate Blog

New Programs Target Low-Income Buyers

Jude Sandvall (RealEstate.com Realtors) — Tue, 30 Jun 2009 11:09:40 -0500

New Programs Target Low-Income Buyers, an article from Realtor Magazine Online, reports that many new state and local initiatives are expected to roll out over the next few weeks. Under the federal Neighborhood Stabilization Program, these initiatives will help middle- and low-income families buy foreclosed homes in hard-hit neighborhoods. Only households earning no more than 120% of the median income will be eligible. The money must be used for primary residences in neighborhoods with the highest incidences of foreclosures and subprime loans. A lease-to-own program will be part of the offerings. Altogether, $5 billion has been available for these initiatives.
http://www.realtor.org/RMODaily.nsf/pages/News2009062902

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Home Prices Drop at Slower Pace

Jude Sandvall (RealEstate.com Realtors) — Tue, 30 Jun 2009 11:08:43 -0500

Home Prices Drop at Slower Pace, an article from The Wall Street Journal, reports that Denver posted a 1.5% gain in home prices in April from the previous month, according to data from the S&P Case-Shiller home-price indexes. "While one month's data cannot determine if a turnaround has begun, it seems that some stabilization may be appearing in some of the regions," said David M. Blitzer, chairman of S&P's index committee.
http://online.wsj.com/article/SB124636417721572777.html

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Mortgage rates hit record low, may fall further

Jude Sandvall (RealEstate.com Realtors) — Sun, 22 Mar 2009 13:50:27 -0500

Mortgage rates hit record low, may fall further, an article from msnbc.com, reports that rates on 30-year mortgages plunged to a record low on Thursday following the launch of the Fed's new effort to revive the housing market. Yesterday, the national average rate on 30-year, fixed-rate mortgages was 4.94%, according to financial publisher HSH Associates. This is down nearly a quarter point from the day before - the lowest on HSH's records, which date back to 1979. Lenders have not pushed down rates as dramatically as some would have hoped. Many lenders have laid off workers in droves, leaving them with a limited capacity to keep up with the refinancing boom. "They're already swimming in applications," said Greg McBride, senior financial analyst with Bankrate.com.
http://www.msnbc.msn.com/id/7148582/

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Apartment vacancies rise in Denver; rents remain flat

Jude Sandvall (RealEstate.com Realtors) — Thu, 29 Jan 2009 22:53:45 -0600

Apartment vacancies rise in Denver; rents remain flat, an article from The Denver Post, reports that apartment vacancy rates in metro Denver increased to 7.9% during Q4 2008., according to a report released Wednesday by the Apartment Association of Metro Denver. During the third quarter of 2008, the vacancy rate was 6.5%. More young people are electing to live with their parents or find roommates. Compared to the fourth quarter of 2007, average rents were up $28 to $888.22. Gaining in popularity are one-bedrooms and efficiencies.
http://www.denverpost.com/headlines/ci_11576970

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Homebuyers get a bonus in the stimulus bill

Jude Sandvall (RealEstate.com Realtors) — Thu, 29 Jan 2009 22:52:17 -0600

Homebuyers get a bonus in the stimulus bill, an article from CNNMoney.com, reports that first-time buyers could receive a $7,500 tax credit if they purchase soon - no repayment required. The economic stimulus bill that's now before Congress includes a provision for a $7,500 tax credit for first-time home buyers. The $819 billion stimulus plan was passed by the House late Wednesday. The Senate is expected to vote on its version of the bill sometime next week. Technically, the stimulus bill would change of terms of the $7,500 tax credit that was part of the Housing Recovery Act passed last summer, which was basically a no-interest loan that had to be repaid over 15 years. The measure had little impact. Under the stimulus bill now under consideration, the tax credit would be a true credit that doesn't have to be repaid. "Our economists have studied the effect [of the credit] and they say there could be a 10% increase in home sales if it's implemented," said Mary Trupo, a spokesperson for the National Association of Realtors.
http://money.cnn.com/2009/01/29/real_estate/tax_credit_near/index.htm?postversion=2009012907

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Washington Report: Expectations for Housing

Jude Sandvall (RealEstate.com Realtors) — Wed, 28 Jan 2009 11:34:01 -0600

Washington Report: Expectations for Housing, an article from Realty Times, examines what we can expect in terms of housing and mortgage-related moves with a new president and Congress running Washington. At the top of the list is foreclosure relief. Barney Frank, the House Financial Services committee chairman, expects Congress and President Obama to devote as much as $100 billion of the bailout money to help homeowners facing foreclosure. Second on the priority list is legislation allowing bankruptcy judges to prevent foreclosures by reducing monthly payments, interest rates and principal balance for owners who file bankruptcy. The third item on the list involves a return to last year's higher mortgage limits for high-cost areas around the country. During the early months of the new Congress, you can also expect to see passage of long-stalled anti-predatory lending legislation. Later on, the Obama administration is expected to address reforms for the federal financial regulatory agencies and decide what to do with Fannie Mae and Freddie Mac.
http://realtytimes.com/rtpages/20090126_washingtonreport.htm

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Banks, lenders face Aurora rule

Jude Sandvall (RealEstate.com Realtors) — Wed, 28 Jan 2009 11:26:57 -0600

Banks, lenders face Aurora rule, an article from Rocky Mountain News, reports that a measure was passed yesterday in Aurora requiring banks and lenders to maintain foreclosed and abandoned properties. A yet-to-be-determined fee will be charges in cases where there is failure to comply with the city's property standards. Foreclosed and abandoned properties must now be placed on a monthly inspection list.
http://www.rockymountainnews.com/news/2009/jan/27/banks-lenders-face-aurora-rule/

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For Your Clients: 4 Tips to Getting a Loan

Jude Sandvall (RealEstate.com Realtors) — Wed, 28 Jan 2009 11:23:12 -0600

For Your Clients: 4 Tips to Getting a Loan, an article from Realtor Magazine Online, examines four tips to help a buyer get a loan. First, consider what the government has to offer. The Federal Housing Administration (FHA) and the Veterans Administration (VA) are the biggest source of loans these days. Next, get those documents in order - bank statements, brokerage statements, W-2 forms and tax returns. Also, borrowers should consider ways to boost their credit scores. It's important not to have more than one-third of their maximum borrowing capacity outstanding on any one credit card. And finally, work your connections. Borrowers may want to begin by talking to a local bank where they have an established relationship.
http://www.realtor.org/rmodaily.nsf/pages/News2009012604

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Simplify and Focus

Jude Sandvall (RealEstate.com Realtors) — Wed, 28 Jan 2009 11:19:42 -0600

Simplify and Focus, an article from Realty Times, examines how to simplify your business planning process and stay focused in 2009. Choose one word that will be the star you are aiming for this year (e.g., focus, consistency). Then ask yourself: 1) What is one thing that would make the most difference in my business if I did it consistently? 2) What is the one thing that would make the most difference in your personal quality of life in you did it consistently? Post your answers where you can see them every day and incorporate them into your daily planning.
http://realtytimes.com/rtpages/20090128_simplify.htm

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Denver-area home values show strength

Jude Sandvall (RealEstate.com Realtors) — Wed, 28 Jan 2009 11:18:43 -0600

Denver-area home values show strength, an article from Rocky Mountain News, reports that the Denver-area housing market outperformed all but one market in the 12 months ended in November. According to a national housing report released Tuesday, Denver-area homes lost only 1.1%. This makes Denver the best performing city in the S&P/Case-Shiller Home Price Indices. In the 12 months ended in November, home prices in Denver fell by only 4.3% - only Dallas fared better than Denver.
http://www.rockymountainnews.com/news/2009/jan/27/denver-area-home-values-show-strength/

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Citigroup CEO, chairman, CFO get no bonuses

Jude Sandvall (RealEstate.com Realtors) — Thu, 22 Jan 2009 14:15:35 -0600

Citigroup CEO, chairman, CFO get no bonuses

Reuters, Jonathan Stempel, January 21, 2009

Citigroup Inc (C.N) on Wednesday said Chief Executive Vikram Pandit, Chairman Win Bischoff and Chief Financial Officer Gary Crittenden refused to be considered for incentive or retention awards, following five straight quarterly losses for the bank.

In a U.S. Securities and Exchange Commission filing, Citigroup said its board on Jan 14 granted stock awards to the other members of the bank's executive committee. The awards vest over four years, with half of each individual's award having a $10.61 price target and half having a $17.85 target.

These other executives also received 10-year stock options with exercise prices at the same levels, Citigroup said.

Shares of Citigroup closed Tuesday at $2.80, and had closed on Jan 14 at $4.53.

Citigroup lost $28.55 billion over the last 15 months, including $18.72 billion in 2008, amid soaring writedowns for mortgage and other debt, and rising credit losses as economies and credit markets deteriorated worldwide.

The third-largest U.S. bank by assets cut its quarterly dividend on Tuesday to 1 cent per share from 16 cents to comply with terms of a U.S. government rescue it got in November.

The government injected $20 billion of capital from its Troubled Asset Relief Program, on top of $25 billion it had previously injected, and agreed to absorb some losses on more than $300 billion of troubled debt.

http://www.reuters.com/article/governmentFilingsNews/idUSN2145679720090121

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Obama Has No Quick Fix for Banks

Jude Sandvall (RealEstate.com Realtors) — Thu, 22 Jan 2009 14:14:12 -0600

WASHINGTON —Even before they have settled into their new jobs, President Obama’s economic team faces an acute crisis in the nation’s banking system that has no easy answers and that they are not yet prepared to address.

The president’s advisers watched most banking shares fall sharply on Tuesday, reinforcing what Obama officials have known for weeks: that their most urgent financial problem is an immense new wave of losses at banks and other lending institutions that threatens to further cripple their ability to resume normal lending.

But when Timothy F. Geithner, the president’s nominee to be the Treasury secretary, appears before the Senate Finance Committee on Wednesday for his confirmation hearing, he is not expected to have a detailed plan ready.

http://www.nytimes.com/2009/01/21/business/economy/21bailout.html?_r=2&ref=business

High-end homes up for auction

Jude Sandvall (RealEstate.com Realtors) — Thu, 22 Jan 2009 14:11:52 -0600

High-end homes up for auction, an article from Rocky Mountain News, reports that seven Stapleton homes are being offered for sale online through March 5. These homes were originally priced at more than $1 million each. Four of the homes are in the Denver Brownstone development and three are in Urban Estates Homes - none have ever been occupied. For years, Stapleton has been one of the hottest housing markets in metro Denver. "We support any efforts any of our home builders need to do in this market," said Tom Gleason, spokesman for Forest City.
http://www.rockymountainnews.com/news/2009/jan/20/high-end-homes-up-for-auction/

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The lowdown on getting a low down payment loan

Jude Sandvall (RealEstate.com Realtors) — Thu, 22 Jan 2009 14:10:45 -0600

The lowdown on getting a low down payment loan, an article from CNNMoney.com, examines the ins and outs of FHA loans. The Federal Housing Authority is still offering 3.5% down loans to qualified buyers. The borrower should contact a mortgage broker or FHA-approved lender. The agency's guidelines require that the buyer spend no more than 31% of their gross income on mortgage payments. Interest rates on FHA loans aren't based on credit scores, as there are for most loans. FHA borrowers will receive the same interest rate that any conforming borrower with a good credit score would receive. However, borrowers with credit scores under 500 will have to put 10% down, rather than just 3.5%. Insurance premiums are also charged on FHA loans, to cover defaults. There is an up-front fee of 1.5% to 2.5% of the dollar-value of the loan, as well as an annual fee of 0.5%.
http://money.cnn.com/2009/01/15/real_estate/low_down_loans/index.htm?postversion=2009012006

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Price drop for homes not as bad in Denver

Jude Sandvall (RealEstate.com Realtors) — Wed, 21 Jan 2009 07:28:56 -0600

It may be small consolation if you bought a home in the Denver area at the top of the market, but the local residential real estate market is in far better shape than almost any other major metropolitan area in the country.

The most recent S&P/Case- Shiller report showed that Denver-area home prices were down 5.2 percent in the 12 months ending in October, compared with an average 18 percent drop for the 20 cities in the index.

http://www.rockymountainnews.com/news/2009/jan/07/price-drop-for-homes-not-as-bad-in-denver/

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Relocation.com 2008 Moving Survey -- Who's Gaining, Who's Losing

Jude Sandvall (RealEstate.com Realtors) — Tue, 20 Jan 2009 11:43:01 -0600

Relocation.com 2008 Moving Survey -- Who's Gaining, Who's Losing, an article from Relocation.com, reports that Denver is the second most popular destination for people looking to make a long distance state-to-state move. The top spot went to Las Vegas. Reasons for people to relocate include: taking a new job, finding a place with more solid economic opportunities and finding a place with more favorable climate or cultural opportunities.
http://www.relocation.com/library/moving_guide/2008_moving_survey.html

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In these struggling economic times, luxury is still thriving

Jude Sandvall (RealEstate.com Realtors) — Tue, 20 Jan 2009 11:42:12 -0600

In these struggling economic times, luxury is still thriving, an article from 9news.com, reports that the Landmark in Greenwood Village is not only succeeding, but it's getting a lot of national attention. Thursday evening, a grand opening was held for the Meridian Tower at Landmark. The tower has been featured in the New York Times and other national magazines because of how well it's doing in a down economy. Ranging in price from $500,000 to $2 million, the posh condos come with access to swimming pools, fitness centers, business centers and golf simulation theaters. Future plans call for a "European Village" of brownstones and manor homes. The Four Seasons in downtown Denver is another luxury development finding success - the condominium/hotel tower is nearly sold out.
http://www.9news.com/seenon9news/article.aspx?storyid=107807&catid=509

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Green Home Features Grow in Demand

Jude Sandvall (RealEstate.com Realtors) — Tue, 20 Jan 2009 11:40:28 -0600

Green Home Features Grow in Demand, an article from Realtor Magazine Online, reports that green features are growing in popularity. For buyers, it means lower costs, being more environmentally friendly and adopting a healthier lifestyle. The focus is on energy efficiency, water efficiency and indoor air quality. Energy Star appliances, low-flow shower heads, carpets and paint with low volatile organic compounds and building materials from local suppliers are what buyers are looking for. The average green buyer is willing to shell out an extra $12,400 to get these features.
http://www.realtor.org/rmodaily.nsf/pages/News2009011605

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Denver Metro Area - New Home Prices

Jude Sandvall (RealEstate.com Realtors) — Tue, 20 Jan 2009 11:39:49 -0600

Denver Metro Area - New Home Prices

		Average Price	Median Price
2006	Jan	$340,300	$300,400
	Jun	$378,100	$340,400
2007	Jan	$375,200	$317,700
	Jun	$408,700	$331,000
2008	Jan	$407,400	$334,200
	Jun	$422,400	$347,800
	Nov	$356,100	$322,500

Source - Home Builders Research - HBRColorado.com

Do you think it's a good time to buy a new home?

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Fixes that "git 'r sold"

Jude Sandvall (RealEstate.com Realtors) — Tue, 20 Jan 2009 11:38:39 -0600

Fixes that "git 'r sold", an article from the Denver Post, examines maximizing return on investment (ROI) when it comes to home improvement. It's important for homeowners to recognize what their home really needs and how it stacks up against neighboring homes. "Look to see what your neighbor has. You want to be the best house on the street," said Gary Eisenbruan, president of the Colorado Association of Real Estate Appraisers. "This applies to all income levels and all value neighborhoods." The main goal should be to correct any deferred maintenance issues, such as broken windows. Take care of any roof repairs and fix any leaky plumbing. Kitchen and bathroom remodeling projects remain perennial winners - they sell houses.
http://www.denverpost.com/headlines/ci_11475900

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Washington Report: Who Chooses Appraisers?

Jude Sandvall (RealEstate.com Realtors) — Thu, 15 Jan 2009 10:44:23 -0600

Washington Report: Who Chooses Appraisers?, an article from Realty Times, reports that Fannie Mae and Freddie Mac recently announced their adoption of a "revised version of their controversial settlement with New York attorney general Andrew Cuomo." The original version, which was agreed to last spring, created a strict set of guidelines for appraisals on all mortgages purchased or guaranteed by the two companies. The code prohibits mortgage brokers from selecting appraisers and forbids Realtors from having "any say or influence over the choice of an appraiser on a sale transaction." Appraisers are unhappy with the changes, as they've established long-standing, legitimate relationships with Realtors brokers and small lenders.
http://realtytimes.com/rtpages/20090105_washingtonreport.htm

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It's a first-time homebuyer's market

Jude Sandvall (RealEstate.com Realtors) — Thu, 15 Jan 2009 10:43:44 -0600

It's a first-time homebuyer's market, an article from The Denver Post, reports that federal help and willing sellers is helping to speed the process for first-time homebuyers. A U.S. Department of Housing and Urban Development program allows first-time buyers to make a down payment of only $100 on HUD-designated properties. Last year, a one-time tax credit was made available to first-time homebuyers. The interest-free loan can be paid back over 15 years or when the home is sold. Individuals making $75,000 or less can qualify for the full $7,500 credit. Couples need to have a combined income of less than $150,000 to get the full amount. Some homebuyers are also considering a loan from the Colorado Housing and Finance Authority. CHFA requires that the person selling the home have owned the property for at least 90 days.
http://www.denverpost.com/headlines/ci_11359617

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10 Tips for Generating Buyer Interest

Jude Sandvall (RealEstate.com Realtors) — Thu, 15 Jan 2009 10:42:36 -0600

10 Tips for Generating Buyer Interest, an article from Realtor Magazine Online, examines 10 tips to help get a home sold. The first one is an obvious one - declutter. Next, let the light in by taking down heavy drapes. Scrub-a-dub-dub - shampoo carpets, scrub the front door and touchup scuffed walls. Fix anything that needs to be repaired. Enhance the view by obscuring unattractive nearby properties with a fence or shrubbery. Consider a weeknight open house to attract a different crowd. Ask buyers' agents for feedback. Have owners vacate the property during showings. Rent-to-own may be an option worth considering for some sellers to avoid two mortgage payments. And finally, drop the asking price.
http://www.realtor.org/rmodaily.nsf/pages/News2009010703

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Denver Aims to Ride Out the Recession

Jude Sandvall (RealEstate.com Realtors) — Thu, 15 Jan 2009 10:41:42 -0600

Denver Aims to Ride Out the Recession, an article from The New York Times, reports that there are a number of reasons why Denver is experiencing a more mild recession that other parts of the country. These reasons include: investments in public transportation, aggressive economic development and efforts to diversify the region's economic base from oil and gas to alternative energy, aerospace, technology and telecommunications. Randy Nichols, president of the Nichols Partnership, spoke at the Rocky Mountain Commercial Real Estate Expo in November about why his company has elected to move forward with the construction of the 500-unit Spire. He expects the project to attract people that work downtown, but live in the suburbs. Over the next two years, the areas is expected to see more than $1 billion in public and private investment.

http://www.nytimes.com/2009/01/07/business/07denver.html?ref=todayspaper

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Denver's home-resale market shows signs of life

Jude Sandvall (RealEstate.com Realtors) — Thu, 15 Jan 2009 10:28:39 -0600

Denver's home-resale market shows signs of life, an article from The Denver Post, reports that Denver's resale market has exhibited signs of finding its balance with supply falling sharply and homes selling a bit faster. Last year, the inventory of unsold homes dropped 20.3%. Lower prices and mortgage rates are luring buyers to the market. While median sales prices are down, this is due in large part to the fact that fewer expensive homes are sold during a weak economy.
http://www.denverpost.com/headlines/ci_11401816