I'm Invigorated!

Okay, I know that headline seems a little exaggerated and maybe even a little far-fetched, but honestly I am.  I don't know if it is a combination of the sun, the clean Spring air and the excitement that seems to be brewing in our offices, but I can feel that change is abuzz in the real estate market and for the first time in a long time, I'm truly invigorated!

This week was yet another week of milestones.  Several weeks ago I questioned, are all of these positive indicators the start of a trend or are they just that, positive indicators that will have a short shelf life.  Well, after at least four weeks of some strong, positive gains, I truly am invigorated.

This week, NAR released its Pending Home Sales Index, a forward-looking indicator based on contracts signed in February, reporting that pending home sales rose 2.1 percent to 82.1 from a reading of 80.4 in January.  Pending home sales have a way to go for there to be a meaningful increase, but recent increases in shopping activity are hopeful indicators that we'll see additional sales gains.

NAR's Housing Affordability Index also rose 0.9 percentage points to a record high of 173.5 in February from an upwardly revised index of 172.6 in January, and is 36.3 percentage points higher than a year ago.  This broad measure of housing affordability using consistent values and assumptions over time, shows that the relationship between home prices, mortgage interest rates and family income is the most favorable since tracking began in 1970.  1970!!!!

Also interesting, Inman News released a survey this week noting that of the 225 readers who responded to an online survey from March 23 to April 1, 48.9 percent said housing markets in their area were improving, 27.1 percent said they were stabilizing and just 12.9 percent characterized them as worsening.

That, along with the indicators I've referenced over the last several weeks including last week's jump in mortgage applications, the historic drop in interest rates and the surge in new housing starts, we truly are seeing some very positive and indicative signs of recovery.  I truly believe that buyers are seeing inventory move and that gets them moving. 

It seems some of Obama's various recovery efforts are starting to have some effect on the market.  The billions to slow foreclosures and goose bank lending, plus the tax credit, are getting buyers to move which is a positive sign. 

Now, of course, we'll have to keep our eye on it and watch as the market continues to progress through our traditionally busy Spring selling season, but thus far the signs are positive and my magic eight balls says "Outlook is Good."

With that good news in tow, let's take a look at this week in real estate: 

• Boulder/Longmont-Our Boulder office reported very strange two weeks in the Boulder market.  New listings fell about 33% during the last week of March compared to the week before but under contracts skyrocketed!  They went from 3 to 27! A 900% increase.  Showings were down due to the snowstorm.  Inventory in Boulder County continues to increase but we are holding steady at about 10% of going under contract in the first two weeks on the market.  Our Longmont office reports showing activity was down 35% from last week...the blizzard of March 2009 did impact the showings!  The week ended on a positive note with the showings going up again.  Buyers are finally getting the message that the interest rates are awesome!  More investors are writing contracts to purchase.
• Evergreen/Conifer-Our Evergreen office reported a total of two new listings for the week.  Two listings went under contract, one is a short sale property.  63 showings for the week making a total of 335 for the month of March.
• Denver Central-Our Denver Central office reports we have seen a big increase in activity in March. The lower-end market is very hot right now with multiple offer situations.  We are also seeing increases in sales volume.
• Devonshire-Our Devonshire office is reporting that we are still seeing showings increase even with the unsettled weather.  Buyers are getting tired of waiting for things to stabilize and are anxious to get out there and get a home.  They are however, looking at many more homes before making a decision.  The interest rates are wonderful so I believe that activity and closings will increase as we move further into Spring.  Sellers are seeing that price and staging of their homes are more important than ever.  Now is truly the time to move forward towards your real estate goals.
• Southwest Metro -Our Southwest Metro office reports our floor has been generating great leads this past week.  We have had four Agents that picked up buyers from their floor shifts.  Open houses were very successful this past weekend.  We are seeing a turning point (small but turning).  Our mortgage rep is still very busy.  He registered 25 leads out of 26 this month!
• El Paso County-Our Colorado Springs office reports that the under $250,000 market seems to be the hottest price range right now compared to $350,000 two months ago.  This may be due to more of the workforce of some of the companies at the Space Command Center at Schreiver coming in and the executive transfers have slowed.  
• Larimer County-Our Fort Collins/Loveland office reports that Spring has sprung and following a fast-moving blizzard this past week, we've seen a spike in activity in Larimer County.  Loveland overall remains slower, but all indicators are that the Spring selling season is underway in the Fort Collins/Windsor area as showings are up 20% from previous weeks.  Contracts are strong as well with an end of month blitz that doubled the number of the week before.  We are seeing an increase in open house activity and sign calls as interest in current inventory increases while interest rates remain unbelievably favorable.
• North Metro-Our North Metro office notes that Agents are going out on many listing appointments.  Sellers are ready to "sell."  Numerous buyer appointments as well.  Seeing an increase in number of short sale listings.  Average days on market for our listings is about 95 days.
• Parker, Douglas and Elbert Counties -What a busy week last week of March!  We set a record for March under contracts as well as for showings during week one of March of over 300! The biggest impact comes without a doubt from the first time home buyers that want to take advantage of the $8,000 tax credit.  Because of the increased activity and the decreased inventory, more and more communities in the lower price ranges show a stable value.  The upper end communities are still slow, however it's only a question of time until those pick up as well.
• Southeast Metro-No information reported.
• West Lakewood- We have bank owned properties that are receiving multiple offers.  This week we had a short sale listing receive seven offers. Of the property with seven offers, the selling Agent was asked to give their highest and best offer. Two owner-occupied homes which have been listed since Fall received multiple offers.  The buyer offered $10,000 over list price and lost the home to an investor. First time buyers who want to take advantage of the tax credit are finding themselves either in multiple offer situations or the property went under contract within hours of them viewing it.  They are also in competition with investors. Owner occupied sellers are busy getting their homes ready for market. They are open to staging, painting and carpeting so they can compete well.  Eight parties came through a $730,000 home at an open house last weekend.  That is the highest traffic since last summer.

As you can see, the market is heating up.  Consumer confidence is finally on the rise and buyers are edging off the fence.  For those who are still cautious, please consider all of the positive signs that are knocking at your front door.  From the first time home buyer credit to the historically low interest rates to the increases in conforming loan limits to the generous amount of inventory to the motivated sellers to the...honestly, the list goes on.  Opportunity is knocking and it is time for buyers to recognize this and jump in.

Until next week,

Have a great one,

Chris Mygatt

President and Chief Operating Officer

Coldwell Banker Residential Brokerage Colorado

Are Happy Days Here Again?

We awoke Thursday morning to some very positive economic news-Wells Fargo reported a better-than-expected first quarter profit of $3 billion surging the company's stock by 32% and boosting shares of many other big banks as investors bet that Wells Fargo's peers may also post results that exceed Wall Street's estimates.  The hope by all involved is that the banking sector is stabilizing.  Much of Wells Fargo's recent success is in part related to the recent increases in mortgage loan applications which could be a strong sign that consumer confidence is on the rise.

Also revealed this week is the fact that new jobless claims fell more than expected.  The Labor Department said Thursday that the tally of initial jobless claims fell to a seasonally adjusted 654,000 from a revised 674,000 the previous week.  Analysts expected claims to drop to 660,000

This week there were so many positive headlines that, rather than provide you with my ongoing synopsis, I thought I'd give it to you straight from the horse's mouth.  Yes, even the media is now on board with the positive headlines which tells me that the market is definitely changing.

• New jobless claims, trade gap fall; retailers see signs of hope; http://www.usatoday.com/money/economy/2009-04-09-jobless-trade_N.htm
• Big rally on Wall Street; http://money.cnn.com/2009/04/09/markets/markets_newyork/index.htm?postversion=2009040918
• The case for buying a home right now; http://online.wsj.com/article/SB123913901841798375.html
• With affordability up, home buyers are returning to the market; http://www.nahb.org/news_details.aspx?sectionID=0&newsID=9000
• Outlook on economy is brightening; http://www.nytimes.com/2009/04/07/us/politics/07poll.html?_r=1&scp=23&sq=economy&st=nyt
• Real Estate Outlook: Promising Numbers; http://realtytimes.com/rtpages/20090407_realestateoutlook.htm
• Denver: 10 Cities Where Americans Are Relocating; http://www.forbes.com/2009/03/30/americans-moving-cities-lifestyle-real-estate-relocating_slide_2.html?thisspeed=25000

And with that very exciting and uplifting news in tow, let's take a look at this week in real estate:

• Boulder/Longmont-Our Boulder office reported new listings continue to rise in the Boulder market, especially condos but sales are increasing as well.  Sales in the Boulder market are up 36% from the week before.  New listings are up 48% week over week.  A front page story in the newspaper today shows 1^st quarter single family home sales in the 1^st quarter of 2009, down 50% from 2008. Prices up 0.4%. Prices also up in Louisville (0.9%), Superior (4%), Erie (4.2%) and Lafayette (6.9%)!  Sales were up 15.9% in Broomfield, but prices were down 5.7%.  Figure that out!
• Evergreen/Conifer-Our Evergreen office reported we had a total of four new listings for the week.  Of the three listings that went under contract, two are short sales.  There were 60 showings for the week.  We had five buyers put under contract during the week, but only one was a bank owned property, the others were normal sales.  One contract is for land ($400M), two are for homes priced in $175M range, one home is at $400M and one REO is priced at $900M.
• Denver Central-We have seen a big increase in activity in March/April.  With interest rates so low, buyers and investors are purchasing properties.  We continue to see a marked reduction in inventory.  Number of days on the market continues to drop.  Our office average is 82 days.
• Devonshire- Our Devonshire office reports that once again we are seeing a surge in showing activity which indicate that buyers are jumping off the fence and into the market.  All of the economic reports and the news coverage seem to indicate that the bottom is here or near for home prices and buyers are hearing the news, therefore moving ahead in their search for homes.  The federal government first time home buyer tax credit is helping to create momentum for buyers.  As the listing inventory decreases, sellers are seeing that this is the time to get their own homes on the market. They don't want to miss this surge in buyer activity.  I would say that this spring should show a considerable surge in sales.  We look forward to a productive summer.
• Southwest Metro - Our Southwest Metro office reports that showings were down a little last week due to the weather, especially Friday and Saturday.  We are still seeing buyers looking and writing on properties.  We had several Agents that had buyers looking and then writing on properties.  We had several Agents with buyers that wrote on properties where there were multiple offers.  Recently we are seeing properties going close to their list price.  Sellers are now looking into listing their home this month or in early May.  Our mortgage rep is still very busy taking loan applications and approving buyers.  Open houses and floor calls are still going strong.
• El Paso County-Colorado Springs reports that the weather has slowed the market a bit but board sales remain good, as do ours.  Commercial vacancies are still growing and unemployment here is growing fast.
• Larimer County-Activity is up and multiple offers are coming in on well-priced homes.  One Agent reported three offers on a new listing that had only been on the market for one day.  Consequently, the property went for above asking and the sellers were thrilled.  Buyers will come out of the woodwork to see well priced homes in the area.  Showing activity has been steady and the spring season is bringing additional inventory to the market.  Home prices are stable. Prices have been virtually flat or only slightly down for the last several years and with exception to short sales and foreclosures, the market appears to be at or very near the bottom.  Given what has been happening on both coasts as well as Arizona/Nevada, we are fortunate our prices have remained comparatively stable.  Homes in this area represent an excellent value for today's home buyer.
• North Metro-No information reported.
• Parker, Douglas and Elbert Counties- Although we set a new record for listings under contract for the month of March, our inventory increased slightly because we added another high producing team to our sales force.  Showing activity has been the highest since 2006!  Our number of showings increased by over 100 in one week!  We still receive multiple offers on power priced listings.  Last week's record was 14 offers on one listing within the first four days on the market.
• Southeast Metro-In the southeast area we are seeing a steady increase of activity in the luxury home market.  Inventory overall is increasing and there is fierce competition in the price point $200,000 and below.  Buyers are moving quicker to write offers.  Spring has sprung!
• West Lakewood-Many sellers are still unreasonable regarding their price.  One Agent in particular felt he priced a home well, however the feedback from Agents is that it is substantially overpriced.  Another Agent would not take a listing because the seller was unwilling to price for the market.  Buyers do not seem to know the market is changing.  They still think everything should be a "steal."  In the $200,000 - $300,000 range the market is still saturated with short sales and foreclosures.  The stimulus package is working in the lower price points.  It will take time to have it work upwards in the higher price points.

Now what should we do with these positive stories?  Don't look a gift horse in the mouth!  Spread the word.  One of the biggest challenges hindering our sector right now is low consumer confidence.  We've just finished three years of a very gloomy and challenging time in United States real estate.  And while this optimism can't yet be explained by official statistics, which lag behind the current market by 30-60 days, pendings are up in many markets and units sold are certainly on the rise.  It's time to target our family, friends and clients alike and educate them on the opportunities and possibilities in today's market.  The time is right now.  The market is poised for a rebound.  With the $8,000 first time home buyer tax credit, the historically low interest rates, the high rate of affordability-we couldn't be in a better position for a rebound.  Read my lips: spread the word!  Tell your friends.  Tell your family.  If you're considering buying a home, now may just be the perfect time.

Next week I will be taking a brief hiatus from Weekly Market Watch.  I'll return the following week with another exciting, robust edition.

Until next week,

Have a great one,

Chris Mygatt

President and Chief Operating Officer

Coldwell Banker Residential Brokerage Colorado

Loan/Tax Fraud in Your Neighborhood- Owner Occupancy

Are you Ready for this?

Ever had an investigator knock on your door and ask if you have ever seen Mr. Smith next door and if he truly does live there? Think it doesn't happen? - Guess again!

It is happening right here in Colorado and they are starting to get creative and utilizing all different kinds of resources in order to catch people. They find the buyer and work their way up to the Real Estate agent and Mortgage Broker-

Buyers: You can't hide from this. Are you changing your entire life to avoid getting caught? Your records, your mail, your credit cards. Bills in your name- registrations, etc. Don't miss something because if you do- your toast. But always remember- you can't avoid an investigator. They will find you!

Ready to trade in your black suit for a orange one? Here are few that did-

Ronald Fontenot - a mortgage broker with First Choice Mortgage who has entered a guilty plea and owner of PIK Properties and Investments, L.L.C
Torrence James - a mortgage broker with First Choice Mortgage and Green River Mortgage who has also entered a guilty plea
Nicole Puller - a mortgage broker with Rapid Contracting Services who has entered a plea of guilty
Glenn Puller - a purchaser who has entered a guilty plea
Talita James - a purchaser who has entered a guilty plea
Taiwan Lee - a purchaser who has entered a guilty plea
Cindy Ingram - a purchaser who has entered a guilty plea

From Mortgage Fraud.org 

How about your mortgage lender giving you legal advise. Something along the lines of "it is ok- don't worry even I do it!" - News flash they are NOT attorney's and possibly weren't smart enough to pass the bar exam to begin with that is why they are telling you that it is ok to commit a FEDERAL CRIME.

What is it  that you are signing at the closing table an autograph on your latest book? There are a plethora of forms you fill out stating that you will live in the property- remember when you learned how to read. Invoke that childhood lesson people, please! Read the affidavit!!!

Either the mortgage brokers are stupid or the have nothing to lose. But the majority of professionals in this industry have families so you try to make sense of that one. If someone will sell their own integrity down the river in in order get your business - why in the world do you think they would help you not go to jail. You would be the first to go!

Plus- they alone don't take the blunt of the crime. Although most people think that they can cry wolf if they ever get caught and tell the judge they were bamboozle into buying the property and that the loan officer told them not to worry about it. I don't know what judge will be sympathetic to you not using common sense and reading what you are signing. None the less- everyone goes to jail. No one falls under the purview of protection when they knowingly commit a crime. So sorry!

REALTORS-

Line 398 item 17. of the Residential Real Estate Commission Approved form-

Buyer Does or Does Not represent that Buyer will occupy the Property as Buyer's principal residence.

One sentence- isn't confusing and doesn't take a brain surgeon to interpret it- does it?

Did someone wake up and bump their head this morning? Seriously, how hard is it to do the right thing-

Obviously one of the most difficult for an unprofessional consultant claiming that they have integrity to do, because people are committing these crimes right under our noses with no fear of losing everything. Wonder if they know how to spell that word- maybe they just thought it was a catchy word to place on their business card ;)

What is it that loan officers and real estate agents don't understand about the term "FEDERAL Crime!" Here is a person that works specifically to catch people in the act. If you have any questions- or you want to report an agent or loan officer. Here would be a good place to start!

You do all this for what a lower interest rate and to avoid paying capital gains and taxes on the additional income? RIGHT! Well- the penalties far out way the cost. So you figure it out! That is what I have to say...

FBI Field Office, Mortgage Fraud
White Collar Crime Supervisor
http://denver.fbi.gov/
Federal Office Building, Room 1823
1961 Stout Street, 18th Floor
Denver, CO 80294-1823
Phone: (303) 629-7171

Respectfully,
Sarah Solomon

Douglas County Real Estate

Proposed Compensation Initiative

Rachel Nance Vice President of Public Policy for the Colorado Association of REALTORS® reported this morning that the Colorado Trial Lawyers Association officially pulled the initiative #109 which would have created a cap on brokerage fees/commissions. In addition, the Colorado Trial Lawyers withdrew the other eight initiative they had filed and the measure that would have capped the Trial Lawyers fees was withdrawn as well. 

"CAR's immediate attention and opposition to this initiative proved to be most effective," said CAR President Greg Zadel. "Our efforts proved that the Trial Lawyers initiative was ill advised and would not be in the best interest of the consumer or the real estate profession."

Truly, the public is who matters most.

But I will be as honest as I can also when saying that my company sends out survey's to all clients that choose to go with Coldwell Banker and close their transactions with us. On a weekly basis we are recognized by our managing broker for outstanding service as confirmed by our clients. I am certain that from my past client sphere- if I went back to any of them and ask "Mr. Smith- based on the marketing, negotiation skills and proper research or market position of your property and after successfully selling or helping you buy your property do you think that me and my staff earned our fee?" I guarantee you the answer would be yes!

As confirmed in a agency relationship agreement we are to be advocates for our clients and promote their interest above our own. We sign our name to that promise and if indeed that fact alone is fulfilled then our clients have won. At the end of the day that is what matters most! The client!

Respectfully,

Sarah Solomon

Douglas County Real Estate