Monthly e-News August, 2011

5690 DTC Blvd. #600W

Home of the Finest Realtors

Cash Out Your Stock Chips And Invest In Real Estate

No one welcomed the global financial upheaval in the wake of the unprecedented downgrade of U.S. credit by S&P. Yet, as bad as it has been for anyone who owns stocks or has a 401(k), the whipsawed stock market – down hundreds of points one day, up the next – could contain unanticipated good news for the Denver-area housing market. The Denver housing market is no way as volatile as the stock market’s recent behavior. July Metrolist data shows that the average price of a home sold and closed in the metro area was $298,654, up 2.2 percent from June and about a half-percent from July 2010. The Denver housing market is unlikely to see the huge swings in prices that have recently tested the nerves of stock investors.

For one thing, with only 19,103 unsold homes on the market, the inventory is at a 10-year low. That’s all the more remarkable when one considers that more than 600,000 people now live in the Front Range than a decade ago. The inventory of homes is down 20 percent from July 2010, as people who are not forced to sell are reluctant to compete with the foreclosures and short-sales, which account for about 35 percent of the current market. Yet, demand has not gone away. The number of homes placed under contract in July is up almost 11 percent from July 2010 and the number of closings is up close to 18 percent from a year earlier.

Denver Metrolist MLS Inventory

Denver Metrolist MLS Inventory

A low inventory and increasing demand drove the weekly sales rate to 5.14 percent in July 2011, a 40 percent increase from the 3.67 percent weekly sales rate in July 2010. At the same time, mortgage rates expected to rise with the downgrade of the U.S., instead nose-dived. Some lenders in August were quoting rates of 3.75 percent for 30-year-fixed rate loans. Rates fell because investors dumped stocks and fled to the security of Treasuries. The Federal Reserve has promised to keep rates close to zero until at least mid-2013 so low mortgage rates should be with us for a while. Others have dumped stocks and poured money into gold, but gold is at record highs and some fear it will be the next bubble. An argument can be made that the confluence of world-wide, macro events – and the risk or low-yields associated with other places to put your money – is making buying a home more attractive than ever.

Savvy consumers may decide now is the time to take advantage of historic low mortgage rates and steady home prices, by cashing out some stock chips on the next upswing and using the proceeds for a down payment on the American Dream. Not only will they be able to sleep better at night, but they could do so in a new master bedroom!

The Denver area housing market showed a modest improvement in prices in the second quarter from the first quarter, during a time when the overall nation’s housing market lost value, shows a recent report by Zillow.com. To read the entire story: http://insiderealestatenews.com/2011/08/zillow-denver-out-performs-nation-by-some-metrics/

The number of homes placed under contract in July grew by almost 12 percent from July 2010, while the number of closing on a year-over-year basis grew by almost 18 percent. To read the entire story: http://insiderealestatenews.com/2011/08/denver-home-sales-up-11-6/

The Commerce City Urban Renewal Authority buys the Mile High Greyhound Park for $3.3 million and wants to turn to see it developed into a mixed-use development. To read the entire story: http://insiderealestatenews.com/2011/08/commerce-city-authority-buys-former-greyhound-park/

Gov. John Hickenlooper’s rental house, which he purchased in 1983 for $69,500, is under contract. The sale to an unnamed investor is expected to close in mid-September. To read the entire story: http://insiderealestatenews.com/2011/08/hick-sells-rental-home/

Mortgage rates are at record lows and the FHA is in great shape, with a record low percentage of recent loans in a default status. Yet, lenders worry that their industry has become over-regulated, making it difficult for many qualified buyers to take advantage of the low rates, stalling the recovery of the housing market. To read the entire story: http://insiderealestatenews.com/2011/08/lenders-face-regulatory-speed-traps/

A record low number of people in Colorado have entered the Obama Administration’s flagship program to help them keep their homes out of foreclosure. The good news is that a record number of Colorado homeowners have moved up to the permanent portion of HAMP. To read the entire story: http://insiderealestatenews.com/2011/08/hamp-hits-new-low-2/

A Denver-based company, which was purchased by the Anschutz Corp. with little fanfare, is keeping many of our nation’s National Park green and sustainable. To read the entire story: http://insiderealestatenews.com/2011/08/xanterra-keeping-our-national-parks-green/

The Commerce City Urban Renewal Authority has purchased the former Mile High Greyhound Park in the city. The authority wants to see the former dog racetrack developed into a mixed-use development. To read the entire story: http://insiderealestatenews.com/2011/08/commerce-city-authority-buys-former-greyhound-park/

A number of high-profile downtown Denver office high-rises are on the market. Together, they represent more than 4.5 million square feet of space. They include such well-known towers as the Wells Fargo Center, also known as the “cash-register” building, because of its unique shape. To read the entire story: http://www.denverpost.com/business/ci_18628200

Space technology is the new frontier for Colorado. Colorado is home to more than 400 space technology companies, as well as seven military bases, reports the Metro Denver Chamber of Commerce. To read the entire story:  http://view.exacttarget.com/?j=fe621677706402787510&m=ff02167075660d&ls=fdec1375716c037e75127573&l=fe981573756d027f77&s=fdf415757d6c057e71107975&jb=ffcf14&ju=fe30177173620c7d751172

Advertisements

About Tom & Dee Cryer

Your Friends in the Homeownership Business!
This entry was posted in Buying or Selling Real Estate, Denver, Denver Housing, Denver Residential Real Estate and tagged . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s