Both residential and condo sales are down considerably from July of 2009.  The number of closed residential properties were down 24.5% with only 2,632 closing in the month of July vs. 3,484 which closed in July of 2009.  The average days on market was down to 84, but the number of active listings increased 13.6% to 17,983 homes currently for sale.  The good news in all of this is that the average sale price did increase 7.4% to $297,218.

As for condominium sales, they too were down 34.4% from last year, with only 627 properties closed compared to 956 in July of 2009.  Again, days on market was down 14.7% to just 93 days and the number of active listings increased 8.8% to 5,467 units.  Ho...

GOOD NEWS/BAD NEWS FOR FHA BORROWERS (PURCHASE AND REFINANCE)  

Today, August 5, 2010, FHA released an important announcement that will affect all FHA borrowers (purchase and refinance) who start their loan after September 7, 2010.  The announcement has both good news and bad news.

First the good.  FHA is reducing the up-front mortgage insurance premium from 2.25% of the loan amount to 1% of the loan amount.  This means on a $200,000 home the premium will be $2,000 instead of $4,500.  The up-front premium is almost always added to the loan so it has little impact on a borrowers out of pocket costs and has a negligible affect on the payment.

More significant, I believe, is the bad new...

The housing statistics for June of 2010 were mixed for the Denver Metro area.  Although the average sold price of residential single family and condos were up 5.83% to $273,511 from $258,434 a year ago, the total number of sold properties were down.  The most significant negative change however, were the under contracts.  At the end of June of 2009, there were 5,664 homes under contract.  The statistics for June of 2010, showed there were only 3,885 homes and condos under contract - a dramatic drop of 31.41%!  That does not bode well for homes sales in July. 

What makes these figures even more concerning for the recovery of the housing market, is that interest rates are at all time lows....

According to an analysis by InsideRealEstateNews, “The federal home buying tax credit program cost taxpayers an estimated $46.2 million for homes that closed in the Denver area in May and June of 2010.  The value of the homes purchased that would be eligible for the tax credits – up to $8,000 for first-time home buyers and $6,500 for qualified existing home owners – is $1.45 billion.  Nationwide, the total cost of the tax-credit program could be north of $20 billion, according to some estimates.”  We won’t know the total amount until all tax returns are filed in 2011 for the credits earned for the prior year. 

There is no doubt that for the first few months of 2010, home sales appeared t...

Did you know that you can invest in real estate with money in your IRA Account?  You can with a self-directed IRA, provided that it is for investment purposes.  That means you can purchase rental properties, fix and flips or even foreign real estate.  What's even better, is that you can leverage your IRA with a non-recourse loan, partner with other IRA accounts, or even mix it with other people's personal funds.  Another advantage is that the IRA pays all the expenses associated with the real estate purchase.  So, whether you are fixing and flipping, or holding and renting, the expenses involved in the renovation of the property or the rental expenses are paid from the IRA.  Of course, al...

With the First Time Homebuyer Tax Credit ending April 30th, many new homebuyers got in under the wire.  Compared to April of last year, the number of residential properties under contract increased 22%.  The number of condos under contract increased even more, with 28% going under contract compared to April of last year.  Many sellers also took advantage of the program, with the number of new listings hitting the market increasing 44% over April of 2009.  Even with the influx of new listings, the absorption rate decreased an average of 21.5%, with the total number of properties, residential and condo available for sale, just under 21,000.  More good news for Sellers were that prices also ...

It seems like everyday bad news is being delivered by the media in one form or another.  Whether it’s adjusting unemployment figures higher, horror stories about the unsustainable national debt, or how we are headed towards another financial meltdown, the bad news never seems to stop coming.  Well, for a change of pace, I have some good news for Colorado homeowners and buyers.  Home sales and prices are trending up! 

Many experts feel the downward economic spiral is highly attributable to the housing crisis.  If the housing market brought the economy down, then the housing market can help bring it back up.  Again, keep in mind, Colorado’s housing market is normally counter-cyclical to th...

With the U.S. budget deficit reaching unheard of levels ($1.4 Trillion for the fiscal year ending September 30th)  it is anticipated that interest rates will soon start rising.  Former Federal Reserve Chairman, Alan Greenspan stated, “I’m very much concerned about the fiscal situation. An increase in long-term interest rates will make the housing recovery very difficult to implement and put a dampening on capital investment as well.”  As proof, Wednesday's auction of the five year Treasury bonds did not go well with investors demanding higher interest rates in order to buy bonds issued by the U.S. Government.  Those demands triggered interest rates on mortgages to rise as much as an eight...

According to sales figures released by Denver Metro List for the month of February, the average sold price for both residential and condos are up considerably over 2009 figures.  The average sold price for residential properties is now $269,688, an increase of 13.83% over 2009 sales.  For condos, the average sales price is up even more, with an average sales price of $166,206, which is an increase of 20.23% over 2009 figures.

What is down, are days on market and inventory.  All good signs that the Denver housing market is starting to rebound.  Most experts anticipate the tax credit for both first-time homebuyers of $8,000 and the tax credit of $6,500 for current homeowners who are buying...

If you are a first-time homebuyer or a homeowner looking to move up or possibly downsize from your current home, the next two months may be the best chance for you to make the move!  The government is still offering the $8,000 tax credit for first-time homebuyers through April 30, 2010.  You don't need to have closed by then, just be under contract.  If you've owned your home for at least five of the last eight years, you too are eligible for a $6,500 tax credit, courtesy of the Federal government if you go under contract by April 30, 2010.  There is no requirement that you even sell your current home, just that you are purchasing a new primary residence. 

Another reason to act sooner ra...

If money seems to be escaping through drafty windows, doors, and skylights, this federal tax credit might make energy-efficient replacements more affordable.

Does it feel like money is escaping through your home's drafty windows, doors, and skylights? You might be able to keep at least some of that cash in your pocket by taking advantage of federal energy tax credits for retrofitting your house with qualified energy-efficient replacements. You can claim a tax credit of up to $1,500 for upgrading the windows, exterior doors, and skylights in your primary residence during 2009 and 2010.

The credit is based on 30% of the cost of materials, so a $5,000 purchase would max it out. But a tax c...

BUY A HOME FOR $200,000 AND RECEIVE $25,000!

As the saying goes, "If it sounds too good to be true, it probably is".  In most instances you can live by that rule, but when you are dealing with the Federal government, you just never know.  Fannie Mae's Homepath Financing Program ("HomePath") is not only for real, but it will allow a first-time homebuyer to receive as much as $24,500 when purchasing a home for as little as $200,000.  Here is how it works:

*  Your down payment needs to be only 3.0%, rather than FHA's required 3.5% which saves you $1,000.

*  No upfront or monthly mortgage insurance is required.  That saves you $3,500 at the time of closing and $88.00 a month for the next f...

According to recent figures released by the Federal Housing Finance Agency (FHFA) few struggling homeowners have successfully permanently modified their home loans through President Obama's Making Home Affordable Program.  This program was originally touted as providing assistance to between 4 and 5 million people wishing to avoid preventable foreclosures by modifying their home loans.  Through December of 2009, only 66,465 homeowners have permanently had their loans modified.  That is only 8.4% of the 902,620 trial loans that were deemed eligible to qualify for the program.  The original stimulus program passed by Congress and signed into law by President Obama on March 4, 2009, establis...

The Federal Housing Administration will raise the minimum down payment for its least credit-worthy borrowers, the agency announced Tuesday.

The change is among a number of major changes the FHA is making to ensure its long-term financial soundness.

Borrowers with credit-rating scores below 580 will be required to put down at least 10 percent. Those with a credit score above 580 will be able to continue to put down only 3.5 percent. The changes are intended to shore up the agency's finances.

The FHA also will increase its upfront mortgage insurance premium from 1.75 percent to 2.25 percent. The agency is expected to seek congressional approval to raise annual mortgage insurance premiums, pai...

On Friday, January 15, 2010 HUD Secretary Shaun Donovan announced that sellers will no longer be required to hold properties for 90 days in order to allow for buyers to secure FHA loans requiring mortgage insurance.  This temporary measure is scheduled to begin 02/01/2010 and continue for a one year period, unless otherwise extended or withdrawn by the commissioner.  This new measure is to help stabilize neighborhoods where foreclosure activity is high.

In order to assure that predatory practics are not not allowed, there are several requirements that must be met in order for the 90 day rule to be waived:

1. All transactions must be arms-length with no identity of interest between the bu...

In years past, conventional wisdom was to wait until Spring to put your home on the market if you were looking to sell.  That is not the case in today’s real estate environment.  With the government still handing out $8,000 first time homebuyer tax credits as well as the $6,500 incentive for those who have lived in their current home for five years or more, now is the time to list your home.  Existing home/condo inventory is down nearly 5,000 units since January of 2008 and Showing Services throughout the Metro area are reporting record number of showing requests set, not seen since August of 2009.  Home prices don’t show any sign of increasing over the next several months, so there is no...

The S&P's/Case-Shiller report released on December 29, 2009 shows that Denver had the lowest year over year home price decline of the 20 metro areas tracked.  The Denver market showed a decline of only 0.1% followed by the Dallas area with a decline of 0.6%.  The worst cities were Las Vegas with a decline of 26.6% followed closely by Phoenix with a drop of 18.1%.  For the 19th straight month, no area in the 20-city index posted a year over year price gain.  Housing prices nationwide are currently reported at near 2003 levels.

Despite the strong sales number of existing homes over the last several months, there is still a very real concern that the housing market may be in for a second di...

For a third straight year, the agents of Sterling Real Estate donated a check to the Denver Children's Home to help provide Christmas gifts to the many needy children currently being assisted by Denver's oldest non-profit organization.  Several years ago, the agents of Sterling Real Estate Group were given the option to have $5.00 deducted from each closing and donated to a local charity.  This year the sum of $1,300 was collected and presented to Dr. Jerry Yeager, the Executive Director of the Denver Children's Home.  Ninety-eight percent of the children treated there are from homes below the federal poverty level and many of them have already failed to successfully complete other mental...

On November 6, 2009, H.R. 3548 was signed into law by the president. This bill provided a federal extension of unemployment insurance along with the extension of the First Time Homebuyer Credit. Also enacted was a new $6,500 tax credit for taxpayers who have lived in the same principal residence for five of the last eight years. Here is a brief outline of some of the changes:

1. The expiration date for the $8,000 tax credit is now available for taxpayers who enter into a binding written contract by April 30, 2010 and close on the purchase by June 30, 2010. In this case the maximum tax credit available would remain at $8,000, or $4,000 if married and filing separately;

2. For taxpayers w...