Monthly e-News February, 2011

Denver Is Warming Up, but Vail Is on Fire with Fresh Snow!

 

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Kentwood Real Estate – Market News – February 2011

Tom Cryer

Compliments of Tom Cryer, SCRP


Market News

Take Advantage of Low Mortgage Rates While You Can

Everyone has heard that mortgage rates are at or near historic lows. But what has largely gone unnoticed is that last month was the best January on record for rates. Nationwide, the average 30-year, fixed mortgage rate in January was 4.76 percent, according to Freddie Mac. The overall average mortgage rate in January from 1972 to 2011 was 8.73 percent.

Mortgage rates recently have been hovering around 5.25 percent, and most analysts expect them to go higher. Rising rates have a real and immediate impact on consumers.

If someone bought the average-priced single-family home in Denver and put 8 percent down?the average size of a down payment, according to the National Association of Realtors® (NAR)?they would have a mortgage of $255,688. The monthly principal and interest payments at 4.6 percent would be $1,335. At 5.25 percent, the monthly P&I payment rises by $76.59 to $1,412. And if rates rose to their historical average of 8.73 percent, the payments would rise 50 percent from their low to $2,001?another $666 per month.

The typical homeowner expects to stay in their home for 10 years, according to the latest research by the NAR. That means at 5.25 percent, a homeowner would pay another $9,191 in principal and interest payments from the low point. If rates hit 8.73 percent, the additional mortgage payment costs would be $79,920.

Most analysts think it is all but certain that rates are going to move higher. Reasons for rising rates include:

  • China, Brazil and other countries worldwide, worried about inflation, already have started raising rates.
  • Federal Reserve bank presidents now put the chances of the Fed raising its rates by year-end close to 100 percent, while earlier in February they put it at 25 percent.
  • At the end of June, the Fed is scheduled to complete its ?quantitative-easing? program to keep rates low.


The message to a prospective homebuyer is clear?take advantage of low rates while you can. They may not be around much longer.

Mortgage Rate History

Mortgage Rate History Chart

 

Residential Market Data
January 2011 This Month Prior Month Year Ago
Active 13,714 13,941 13,030
Under Contract 2,514 2,132 2,883
Sold 1,724 2,422 1,841
Average Sold Price $277,922 $274,625 $260,530
Months Supply 7.95 5.76 7.08
Condominium Market Data
January 2011 This Month Prior Month Year Ago
Active 4,176 4,316 4,435
Under Contract 633 560 807
Sold 432 602 512
Average Sold Price $150,085 $166,841 $157,701
Months Supply 9.67 7.17 8.66
*Based on information from Metrolist, Inc. for the Denver housing market for the period 1/1/11 to 1/31/11. This representation is based in whole or in part on content supplied by Metrolist, Inc.

 

Market Movers

  • Heitler Development unveils plans for a 1267-unit ?green? apartment community and the new headquarters for CorePower Yoga in the Highland neighborhood.
    Read more >>
  • 2011 Parade of Homes to span Front Range for second consecutive year.
    Read more >>
  • Federal loan modifications in December showed the only month-to-month increase in 2011.
    Read more >>
  • Federal Reserve bank economists says Colorado recession has ended.
    Read more >>
  • Condo sales at the Spire may be the top in the nation.
    Read more >>
  • Case-Shiller: Denver No. 6 in country.
    Read more >>
  • Over the long haul, home buying is still a good investment.
    Read more >>
  • Fillmore Plaza redevelopment breaking ground.
    Read more >>
  • The proposed Sterling Ranch wants to become a national destination for youth sports and recreation.
    Read more >>
  • Forecast predicts slight increases in population, employment figures and housing starts in 2011 in the Denver area.
    Read more >>

Tom & Dee in Vail with Mt. Holly Cross
The Snow in Vail this winter has been unbelievable!

Featured Properties

 

9159 Scenic Pine Drive

9159 Scenic Pine Drive – The Timbers in Parker, Colorado 80134

Check YouTube for a colorful walking tour in The Timbers. This is a superb Telluride Blt. custom home. It has fantastic interior volume with dramatic cathedral ceilings. It has 5 bedroom suites including a walkout level guest suite.

2225 Buchtel Blvd. #702

2225 Buchtel Blvd. #702 – University Park Tower in Denver, CO 80120

One of a kind DU Home. Just out the door to Light Rail, Across the street from DU and immediate access to I-25. Completely remodeled with new paint, new carpet and upgrades. Great storage, the best parking space and a motivated seller. Move in ready!

YOUR FRIEND IN THE HOME OWNERSHIP BUSINESS?

 

Denver Real Estate by Thomas Cryer


MyTownCryer.com

Tom Cryer, SCRP

Realtor – Broker Associate

The Kentwood Company

5690 DTC Blvd. #600W

Greenwood Village, CO 80111

303.773.3399 Ext: 299 (Office)

800.723.7653 (Toll Free)

303.638.3202 (Cell)

Email

Website

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If your home is currently listed, please disregard this notice as it is not our intention to solicit other brokers listings. All information deemed reliable but not guaranteed and should be independently verified. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) nor Kentwood Real Estate shall be responsible for any wrong information.
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