For fix and flip investors, who take virtually unsalable homes, make them new again for consumers and sell them, the last couple of years has presented a challenging environment. The cartel is withholding properties from the market (hoarding!) and declining to sell them at prices that allow them to be properly rehabilitated for a potential homeowner to purchase.
For rental investors, the market is also difficult. While rental demand is very strong, financing is a challenge and suitable homes are slow to come on the … (0 comments)
Face it, the Federal Government has effectively nationalized the housing finance industry. This is true for new loans and for how FNMA, FHLMC and FHA are liquidating their foreclosures and negotiating short sales. The government has acted to make obtaining a mortgage much more difficult, and is holding enormous numbers of Colorado and Denver homes, in particular, in inventory, waiting to sell them at better prices – they hope – in the future. If the big banks were to write down the value of their houses and mortgages to prices at … (15 comments)
Upside down housing pie is about as tasty as eating humble pie, yuk! If you owe more than your house is worth on the Denver market today, you are eating “Upside Down Housing Pie” every month when you make your mortgage payment – making a payment on a loan that is larger than value of your home. Two key factors are at work here: if you have a job and your personal finances are OK, you are likely to keep making the payments simply because you need a place to live for you and … (1 comments)
According to CoreLogic’s December statistics for Colorado, December 2011 delivered 1,870 short sales and bank real estate liquidations (applause!). However, December 2011 had 2,130 completed foreclosures, 260 more foreclosures completed than distressed property liquidations (boo, hiss!). The Statistics for Denver, Colorado are very similar. So, for this recent month foreclosures completed outpaced liquidations by 14%! PLUS, there were 4,359 pre-foreclosure filings – meaning foreclosures started. Wow. Foreclosures started were 105% larger than foreclosures completed. These numbers seem to conflict with the “low inventory” claims from the Denver (Dinosaur) Post. It is … (0 comments)
housing inventory: The Real Story in the Denver Housing Market: What goes down May stay Flat!
- 03/08/12 09:18 AM
Chapter 1: Dinosaur Roars! We just read in the Dinosaur Post (Denver Post, March 6, 2012) that “Housing sales up, inventory levels down in metro Denver.” In essence, the sources and the writer are painting a rosy picture of home sales in Denver to boost sales in the upcoming Spring and Summer selling season. The Dinosaur Post has become a booster for realtors in the community.
While there are good reasons to buy real estate, low inventory of homes listed for sale hardly proclaims the boom that one source said, “We’ve got a market that’s really moving.” Although, he … (3 comments)
Chapter 6: Now What - Denver and Colorado Investors Can Beat the Cartel!
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