By Margaret Jackson The Denver Post
The Peloton condominium project in Boulder is seeing success that many developments haven’t enjoyed over the past year, grossing almost $23.5 million in sales.
Of the 744 condos sold in Boulder over the past year, 70 of them were in the Peloton’s 190-unit first phase, including 41 in 2010.
Cindy Gonzales, director of marketing for the Peloton, chalks up the project’s success to price.
“We’re not located downtown, but we have the right price point for people who want urban living,” Gonzales said.
Prices range from $249,900 for a loft to $539,900 for a two-bedroom unit with a den.
Located on Arapahoe Avenue between 33rd and 38th streets, the Peloton is within walking distance of the 29th Street entertainment district and just minutes from the University of Colorado campus and Pearl Street.
Tom and Bonnie Geier sold their 3,200-square-foot home in Boulder and moved into a two-bedroom unit at the Peloton about two years ago.
“We were looking for a different kind of environment than a home with a yard,” Tom Geier said. “We’re both retired, and we didn’t need four bedrooms and four baths and an unfinished basement. We’re both very active. My wife likes to run, and I like to bike, and we’re close to the paths.”
Gonzales said she expects the first phase to sell out by next spring, and then construction of another 190 units will begin.
Boulder’s condo market has fared better over the past year than its single-family homes. In June, 24 condos sold in Boulder, a 20 percent increase from the same month a year ago, according to an analysis of Metrolist data by independent real-estate consultant Gary Bauer.
The average price for a condo in Boulder rose 7 percent to $249,245 in June from $232,884 in June 2009.
And while the number of single-family homes sold in June rose 10.5 percent to 21 last month, the average sales price dropped 35 percent to $556,637.
Still, there are several factors that set up the Boulder market for a quick recovery, Bauer said.
“Boulder was the first entity where they had controlled growth,” he said. “They limited the number of new residents and major modifications. And Boulder is the place to be. If you want to be at the ‘in’ spot, it’s Boulder.”
Friday, July 30, 2010
Resale fees under attack
A group hopes to create a bill to regulate the imposition of transfer costs in a home sale.
By Margaret Jackson The Denver Post
The practice of imposing transfer fees on home sales is coming under scrutiny as developers and outside investors use them as a new income stream.
On Thursday, a new coalition launched to discourage the practice, and the issue could come up in the state legislature.
Often unnoticed by consumers, private-transfer fees are recorded by covenant or written into the sales contract of a home. The fees require a percentage of a home’s sale price to be paid to a private third party each time the property is sold, typically for a period of 99 years.
“Pretty slick way to make money,” said Kurt Pfotenhauer, president of the American Land Title Association, which is among the organizations forming the Coalition to Stop Wall Street Home Resale Fees. “Consumers are rarely aware of these covenant fees.”
The coalition is urging U.S. Treasury Secretary Tim Geithner to ban the fees. Other members of the coalition include the National Association of Realtors, the Center for Responsible Lending, the Property Rights Alliance and the Institute for Liberty.
There are 17 states that restrict the use of transfer fees. While Colorado still permits them, legislation to regulate them could be proposed next year.
By Margaret Jackson The Denver Post
The practice of imposing transfer fees on home sales is coming under scrutiny as developers and outside investors use them as a new income stream.
On Thursday, a new coalition launched to discourage the practice, and the issue could come up in the state legislature.
Often unnoticed by consumers, private-transfer fees are recorded by covenant or written into the sales contract of a home. The fees require a percentage of a home’s sale price to be paid to a private third party each time the property is sold, typically for a period of 99 years.
“Pretty slick way to make money,” said Kurt Pfotenhauer, president of the American Land Title Association, which is among the organizations forming the Coalition to Stop Wall Street Home Resale Fees. “Consumers are rarely aware of these covenant fees.”
The coalition is urging U.S. Treasury Secretary Tim Geithner to ban the fees. Other members of the coalition include the National Association of Realtors, the Center for Responsible Lending, the Property Rights Alliance and the Institute for Liberty.
There are 17 states that restrict the use of transfer fees. While Colorado still permits them, legislation to regulate them could be proposed next year.
Wednesday, July 28, 2010
Foreclosure Starts...
Foreclosure starts hit record high for Fannie, Freddie loans
By INMAN NEWS The number of homeowners missing their first payment on their mortgage ticked down slightly from May to June, but the total number of loans in some stage of the foreclosure process remained essentially flat at nearly 2 million, according to statistics collected by Lender Processing Services. Among all loans, 30-day delinquencies were down 1.4 percent from May, to 1.81 million, while 60-day delinquencies rose 2.4 percent to 766,158. LPS data showed declines in both 90-day delinquencies (down 3.9 percent to 2.59 million) and loans in foreclosure (down 0.4 percent to 1.97 million).
By INMAN NEWS The number of homeowners missing their first payment on their mortgage ticked down slightly from May to June, but the total number of loans in some stage of the foreclosure process remained essentially flat at nearly 2 million, according to statistics collected by Lender Processing Services. Among all loans, 30-day delinquencies were down 1.4 percent from May, to 1.81 million, while 60-day delinquencies rose 2.4 percent to 766,158. LPS data showed declines in both 90-day delinquencies (down 3.9 percent to 2.59 million) and loans in foreclosure (down 0.4 percent to 1.97 million).
Foreclosure Aid Scams
Bogus offers to help consumers save their homes from foreclosure were the fastest-growing complaints in 2009, according to a survey released Tuesday by several national consumer agencies.
While complaints about misleading advertising for new and used autos topped the national list for a second time, beefs about companies offering foreclosure relief grew at a faster rate, according to the annual analysis.
“Consumers who are desperately trying to fend off collection agencies or save their homes from foreclosure are prey to scammers who offer to help them and then take their money and run,” said Susan Grant, consumer protection director for the Consumer Federation of America, a sponsor of the report.
Denver Post 7.28.10
While complaints about misleading advertising for new and used autos topped the national list for a second time, beefs about companies offering foreclosure relief grew at a faster rate, according to the annual analysis.
“Consumers who are desperately trying to fend off collection agencies or save their homes from foreclosure are prey to scammers who offer to help them and then take their money and run,” said Susan Grant, consumer protection director for the Consumer Federation of America, a sponsor of the report.
Denver Post 7.28.10
Tuesday, July 27, 2010
A Foreclosure Reduces the Value of a Home by 27% on Average
A foreclosure reduces the value of a home by an average 27% -- a much higher discount than occurs with other types of forced sales, according to a recent study that will be published in the American Economic Review.
When a house is sold after the death of an owner, the price drops an average 5% to 7%, according to the study. When the owner declares bankruptcy, it falls 3%.
When a house is sold after the death of an owner, the price drops an average 5% to 7%, according to the study. When the owner declares bankruptcy, it falls 3%.
Monday, July 26, 2010
Boulder: Where Innovation Is Hip
Boulder is one of the hottest places in the country to launch a company. Startups there received 42 percent of the venture capital invested in Colorado from 2006 to 2009, and 8,900 businesses of fewer than 20 employees call Boulder County home.
Saturday, July 17, 2010
A Current Economy Perspective...
RECON
Real Estate Center Online News
July 16, 2010
Copyright 2010. All rights reserved.
Material herein is published according to the fair-use doctrine of U.S. copyright laws related to non-profit, educational institutions. Items attributed to sources other than the Real Estate Center at Texas A&M University should not be reprinted without permission of the original source.
REBOUND OR DOUBLE DIP? DOTZOUR'S 2011 FORECAST
COLLEGE STATION (Mays Business School) – As much of the nation ponders whether the country is in rebound mode or headed for a “double-dip” recession, Real Estate Center Chief Economist Dr. Mark Dotzour sees definite signs of hope for the economy.
“There are signals that the economy is trying to turn the corner," Dotzour said. "Consumer confidence has increased from a year ago, and consumer spending has resumed its relentless upward trajectory.”
He says the most important positive indicator is that corporate profits have rebounded.
“In a free-market, capitalistic system like America, profit growth is the key indicator," he said. "When profits are growing, companies hire employees. When profits flatten, they stop hiring. When profits fall, they start to fire people, and they keep on firing people until profits start to increase again. Clearly, most businesses have right-sized their firms sufficiently to regain profitability.”
So why aren’t they hiring people?
“The answer is uncertainty: uncertainty of capital gains and income tax rates; uncertainty about the cost of health care and the possible increase in energy costs due to ‘cap and trade.’ The prospect of new and increased government regulation makes it hard for business to see clearly into the future,” he contends.
Dotzour points out that businesses can buy insurance against risk, but there is only one way to “insure” against uncertainty–and that is to hoard cash.
“There is now nearly $3 trillion sitting in cash on business balance sheets,” he said. “They have much more capital then the Federal Reserve, the FDIC, Fannie Mae and Freddie Mac combined.”
To read more, visit the Mays Business School website.
@ THE CENTER
Real Estate Center Online News
July 16, 2010
Copyright 2010. All rights reserved.
Material herein is published according to the fair-use doctrine of U.S. copyright laws related to non-profit, educational institutions. Items attributed to sources other than the Real Estate Center at Texas A&M University should not be reprinted without permission of the original source.
REBOUND OR DOUBLE DIP? DOTZOUR'S 2011 FORECAST
COLLEGE STATION (Mays Business School) – As much of the nation ponders whether the country is in rebound mode or headed for a “double-dip” recession, Real Estate Center Chief Economist Dr. Mark Dotzour sees definite signs of hope for the economy.
“There are signals that the economy is trying to turn the corner," Dotzour said. "Consumer confidence has increased from a year ago, and consumer spending has resumed its relentless upward trajectory.”
He says the most important positive indicator is that corporate profits have rebounded.
“In a free-market, capitalistic system like America, profit growth is the key indicator," he said. "When profits are growing, companies hire employees. When profits flatten, they stop hiring. When profits fall, they start to fire people, and they keep on firing people until profits start to increase again. Clearly, most businesses have right-sized their firms sufficiently to regain profitability.”
So why aren’t they hiring people?
“The answer is uncertainty: uncertainty of capital gains and income tax rates; uncertainty about the cost of health care and the possible increase in energy costs due to ‘cap and trade.’ The prospect of new and increased government regulation makes it hard for business to see clearly into the future,” he contends.
Dotzour points out that businesses can buy insurance against risk, but there is only one way to “insure” against uncertainty–and that is to hoard cash.
“There is now nearly $3 trillion sitting in cash on business balance sheets,” he said. “They have much more capital then the Federal Reserve, the FDIC, Fannie Mae and Freddie Mac combined.”
To read more, visit the Mays Business School website.
@ THE CENTER
Thursday, July 1, 2010
Tax Credit Deadline Extended, If Under Contract by April 30th, 2010 Flood Insurance extended as Well
The Congress has passed the following:
Tax credit processing extension
The Congress has passed H.R. 5623, the Homebuyer Assistance and Improvement Act, which extends the tax credit closing deadline until September 30th. There will also be no gap between June 30th and the date the President signs the bill into law. The extension only applies to transactions in which the purchase contract was signed by April 30th.
Flood insurance extension
The Senate has passed H.R. 5569 which extends the National Flood Insurance Program until September 30, 2010. The bill is retroactive from June 1, 2010 to the date the President also signs this bill.
Tax credit processing extension
The Congress has passed H.R. 5623, the Homebuyer Assistance and Improvement Act, which extends the tax credit closing deadline until September 30th. There will also be no gap between June 30th and the date the President signs the bill into law. The extension only applies to transactions in which the purchase contract was signed by April 30th.
Flood insurance extension
The Senate has passed H.R. 5569 which extends the National Flood Insurance Program until September 30, 2010. The bill is retroactive from June 1, 2010 to the date the President also signs this bill.
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