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Colorado's January Latest Data: employment growth, mortgage loan payoffs, home prices, MORE

By
Real Estate Broker/Owner with Aspen Real Estate

   JUST IN FROM THE

Colorado Division of Housing

A Division of the Colorado Department of Local Affairs  
DATE: JANUARY 25, 2012

 

January 2012 Colorado news on the latest data on: employment growth, mortgage loan payoffs, home prices and MORE
 

Employment growth during December 2011 hits 5-year high

 
Colorado gained 80,107 jobs in December 2011 compared to December of 2010, and the non-seasonally-adjusted unemployment rate fell year-over-year from 8.7 percent to 7.9 percent. According to the most recent employment data, collected through the Household Survey and released today by the Colorado Department of Labor and Employment, total employment in December, not seasonally adjusted, rose to 2.504 million jobs. There were also 63,000 more people in the work force during December, compared to December 2010. 

The unemployment rate remained largely flat from November to December in spite of job gains due to a relatively large number of workers joining the labor force. 



From December 2010 to December 2011, total employment rose 3.3 percent, while the labor force rose 2.3 percent. The total labor force in December included 2.72 million workers. 
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Latest trends in mortgage loan repayments in Colorado

 
Today, the Division of Housing released its 2011 year-end report on releases of deeds of trust. Since release activity reflects trends in home purchase and refinance activity they can help us identify some trends in demand for home loans. 

The report notes that, in general, release activity responds to movements in the mortgage rate in ways very similar to that seen in mortgage refinance activity. For example, in the first chart, we see that there was a surge in release activity in 2003. 


MORE

 

Economic Update: National Assoc. of Residential Property Managers

 
For those at the NARPM meeting who wanted larger graphs, here are the slides for the economic update I presented to the Denver Chapter of the National Association of Residential Property Managers.
 

Mortgage loan payoffs fall in 2011, hit ten-year low

 
The number of mortgage loans paid off in Colorado was down 6.4 percent during 2011 compared to 2010, although loan payoffs rose from the third quarter to the fourth quarter of 2011. According to a new report released today by the Colorado Division of Housing, public trustees in Colorado released a total of 235,749 deeds of trust during 2011, falling from 2010’s total of 251,861. Typically, a release of a deed of trust occurs when a real estate loan is paid off whether through refinance, sale of property or because the owner has made the final payment on the loan. Release activity declines as refinance and home-sale activity falls. 

For the fourth quarter alone, the number of deeds of trust released this year fell 27.3 percent. Releases fell from 80,265 during 2010’s fourth quarter to 58,340 during the same period this year. On the other hand, releases rose from the third quarter of 2011 to the fourth quarter, rising 15.5 percent from the third quarter’s total of 50,506. 
 
 MORE

Housing News Digest, January 25

 
Mortgage loan payoffs hit 10-year low
The number of mortgage loans paid off in Colorado was down 6.4 percent in 2011 compared with 2010, according to a new report from the Colorado Division of Housing.

A total of 235,749 deeds of trust were released in 2011, falling from 2010's total of 251,861, the report states.

Typically, a release of a deed of trust occurs when a real estate loan is paid off, which can include a refinancing, a sale of the property or because the owner has made the final payment on the loan. Release activity declines as refinance and home-sale activity falls.

Read more: Mortgage loan payoffs hit 10-year low - The Denver Post http://www.denverpost.com/breakingnews/ci_19817386#ixzz1kU5AYnZX
Read The Denver Post's Terms of Use of its content: http://www.denverpost.com/termsofuse


Survey Aims At Solving Homelessness
COLORADO SPRINGS, Colo. -- More than 70 volunteers, including 12 Fort Carson troops, gathered in Colorado Springs to conduct a survey of the homeless population in town. The survey was aimed at gathering a headcount of the homeless individuals as well as recording demographic information from that population.

The survey is conducted in compliance with requirements set forth by the U.S. Department of Housing and Urban Development.

Crowne Plaza hotel focus of court battle
One of the oldest and largest hotels in the Colorado Springs area, the Crowne Plaza, could end up in new management hands as the result of financial and legal battles.

The hotel’s owners, Stamford Real Estate (Colorado Springs) LLC and Harrell Colorado Operating Co. LLC, defaulted in July after failing to repay a $30.8 million loan used to buy and remodel the property. The 500-room hotel at 2886 S. Circle Drive remains open. But the default prompted Wells Fargo Bank to ask 4th Judicial District Judge Gregory Werner on Jan. 11 to name a Florida hotel executive as receiver for the property. Wells Fargo is trustee for a Boston-based trust that owns the loan.

Anxiety Mounts Over Maturing Real Estate Loans

Borrowers and lenders are starting to grapple with the billions of dollars in commercial real estate loans made during the boom year of 2007 that are coming due this year, in a greatly contracted economy.

Experts have warned of a rash of recapitalizations, refinancings and building sales. In New York City alone, nearly $70 billion worth of commercial mortgages that were bundled together and issued as collateral for bonds are maturing this year. Of those, $26 billion, or 37.4 percent, are five-year loans that were originated during the height of the real estate bubble, when underwriting standards were loosest, according to data from the research firm Trepp LLC.

Obama Answers Bernanke Plea With Refinancing Plan: Mortgages

President Barack Obama answered Ben S. Bernanke's appeal for more action to fix the U.S. housing market that's restraining the economic recovery by proposing a plan to help borrowers reduce their monthly mortgage payments.

Obama is sending Congress legislation that would allow homeowners to tap record-low borrowing costs, potentially boosting housing as he seeks re-election this year. The proposal could save participants about $3,000 a year, Obama said in his State of the Union speech to Congress.
 

Friday, January 20, 2012

NAR: Median home price in U.S. West declines, existing home sales fall

 
The median home price in the West region of the U.S., which includes Colorado, rose 0.3 percent from December 2010 to December 2011. According to new existing home sales data, released today by the National Association of Realtors, the median home price rose only in the West region and fell in all other regions. The median price fell the most in the Midwest where it declined 7.9 percent from December 2010 to December 2011. 

The first graph shows median home prices for all regions plus the U.S. The median home price in the West during the past six months has ranged from $191,000 to $208,000. The median price was $205,200 during December 2011, and during December of 2010, the median price for the region was $204,500. 

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Housing News Digest, January 20

 
Housing industry headed north
After five rough years for the construction industry and the housing market, small glimmers of hope arise from the ashes of the Great Recession.

With low interest rates, a housing glut and 448 homes sold last year, Teller County is experiencing the trickle-down effect of the nation’s housing market on the move. “If we continue to sell what we did last year, we’ll knock this housing situation down considerably,” said Carl Andersen, of Andersen Enterprises in Woodland Park. “Those are very encouraging numbers. So I do think Teller County is on the verge of a slow moderate recovery in the housing market.”

Grower Linked To Listeria Fined On Migrant Housing 
The federal agency said Eric Jensen, owner of Jensen Farms, of Holly, rented migrant workers unsanitary, overcrowded rooms at a motel he owns. Inspectors said many rooms lacked beds, laundry facilities and smoke detectors. Jensen faces $4,250 in civil penalties.

The fine was not linked to the outbreak.

Housing authority will get $13K from town for project

The Windsor Housing Authority will receive $13,000 from the Town of Windsor with the possibility of more fee waivers to come.

During last Monday night's town board work session, board members said they'd like to see a resolution at the next regular meeting approving the WHA's request for $13,000 from the town to create organizational policies to enhance management operations and efficiencies.

Tough economy doesn’t stop Porter Homes
Circumstances, hard work and perhaps a bit of divine providence have led Nate Porter with Porter Homes down an interesting career path.

He came to Grand Junction as a baseball player for Mesa State College, as Colorado Mesa University was known in 1999. By the time he graduated in 2002, he was ready to take a break from education and told an acquaintance he wanted to build custom log homes.

Colorado Real Estate Commission pulls property manager’s license
The Colorado Real Estate Commission yanked the real estate license of a Fort Collins property manager after an investigation found the manager allegedly mishandled rent money owed to property owners, the Colorado Division of Real Estate said Thursday.

The commission voted unanimously to suspend the real estate license of Sherry Jefcoat, also known as Sherry Eichman. She runs Legend Real Estate Services LLC of Fort Collins.
 

Thursday, January 19, 2012

Corelogic: Colorado home prices flat, Denver metro rises

 
Home prices in Colorado fell 0.05 percent from November 2010 to November 2011, continuing a downward trend in home prices in Colorado and nationwide. Nevertheless, the degree to which home prices have declined has lessened each month for the past nine months. According to the November Home Price Index (HPI), released last week by CoreLogic, the year-over-year decline for Colorado was the smallest decline in 15 months, while the Denver metro area reported the first year-over-year increase in 18 months.

Nationally, the index fell 4.32 percent, and it rose 01.01 percent in the Denver-Aurora-Broomfield metro area during the same period. 

The first graph shows the year-over-year changes for the past 32 months in the US, Colorado and the Denver metro area. Over the past two years, the general trend in all three areas has been shaped by the home buyer tax credit, which was introduced in 2008 and expired in April 2010. Clearly, home prices climbed throughout the duration of the tax credit period, but declined after the credit's expiration.

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Remodeling activity in U.S. West outpaces other regions in November

 
Residential remodeling activity increased 33.4 percent in the Western U.S. from November 2010 to November 2011. According to the November 2011 Residential Buildfax Remodeling Index, released this week by BUILDERadius, The Western U.S. showed the largest rate of increase, by far, in its index for November 2011, outpacing all other regions and the U.S. as a whole. 

According to Buildfax's November 2011 release

In November, all regions except the northeast posted year-over-year gains. The West was up 43.7 points (43%) year-over-year while the Midwest was up 14 points (13%) year-over-year. The South was up 8.9 points (10.6%) year-over-year, and the Northeast was down 5.3 points (6.8%) year-over-year.

In the graph, we see that the year-over-year percent change in the western region has outpaced all other regions and the U.S. as a whole for the past six months. Growth rates have been solid in recent months. November 2011's year-over-year change was considerably larger than November 2010's year over year increase.
All the above information has been given permission to repost by the Colorado Division of Housing for informational purpose only.

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