Daily Real Estate News | Tuesday, July 26, 2011
Which cities offer the best value? Kiplinger’s Personal Finance magazine recently ranked metro areas by best “value,” factoring in low cost of living, strong economies, and personal amenities.
The following are the six metro areas that topped its list, including each city’s unemployment rate, median household income, and cost-of-living index (the index is based on the national average of 100; cities with a score below 100 have a lower cost-of-living). To see the other factors that weighed Kiplinger’s decisions for the top 6 and to view the full list, visit the Kiplinger Web site.
1. Omaha, Neb.
Unemployment rate: 4.6%
Cost-of-living index: 90.3
Median household income: $53,457
2. Charlotte, N.C.
Unemployment rate: 10.4%
Cost of living index: 93
Median household income: $53,168
3. Nashville, Tenn.
Unemployment rate: 8.5%
Cost of living index: 90.7
Median household income: $51,352
4. Colorado Springs, Colo.
Unemployment rate: 9.3%
Cost-of-living index: 92.0
Median household income: $56,576
5. Knoxville, Tenn.
Unemployment rate: 7.7%
Cost-of-living index: 89.7
Median household income: $45,727
6. Lexington, Ky.
Unemployment rate: 7.8%
Cost-of-living index: 89.1
Median household income: $48,158
Sunday, August 28, 2011
Closing Costs Up 8.8 Percent
Realtor.com
09/01/2011
Closing costs on mortgages have increased dramatically nationwide, spiking on average 8.8 percent from a year ago, according to a survey from Bankrate. Origination, title, and third-party fees on a $200,000 loan average $4,070, up from $3,741 from Bankrate’s survey at the same time last year. Analysts attribute the increase to lenders having to do extra work in approving mortgage applications due to increased scrutiny and tighter lending regulations.
09/01/2011
Closing costs on mortgages have increased dramatically nationwide, spiking on average 8.8 percent from a year ago, according to a survey from Bankrate. Origination, title, and third-party fees on a $200,000 loan average $4,070, up from $3,741 from Bankrate’s survey at the same time last year. Analysts attribute the increase to lenders having to do extra work in approving mortgage applications due to increased scrutiny and tighter lending regulations.
$5,000 Grant for First Time Military Buyers
Daily Real Estate News | Tuesday, July 26, 2011
A new program is offering financial assistance to first-time home buyers who are veterans or active-duty military members. The Pentagon Federal Credit Union Foundation, a nonprofit national organization, is offering the assistance through its Dream Makers program.
Active duty personnel, veterans, retired members of the military, and employees of the U.S. Department of Defense and the Department of Homeland Security may be eligible for a grant up to $5,000 to use on down payments and closing costs when buying their first home. The grants can be applied to a mortgage from any financial institution.
“Members of the military often put off buying a home earlier in their careers because they’re moving around the country a lot,” says Kate Kohler, chief operating officer for the PenFed Foundation. “We want to make sure they have resources to add immediate equity into their home when they decide to buy.”
To view eligibility requirements, visit www.pentagonfoundation.org/dreammakers.
A new program is offering financial assistance to first-time home buyers who are veterans or active-duty military members. The Pentagon Federal Credit Union Foundation, a nonprofit national organization, is offering the assistance through its Dream Makers program.
Active duty personnel, veterans, retired members of the military, and employees of the U.S. Department of Defense and the Department of Homeland Security may be eligible for a grant up to $5,000 to use on down payments and closing costs when buying their first home. The grants can be applied to a mortgage from any financial institution.
“Members of the military often put off buying a home earlier in their careers because they’re moving around the country a lot,” says Kate Kohler, chief operating officer for the PenFed Foundation. “We want to make sure they have resources to add immediate equity into their home when they decide to buy.”
To view eligibility requirements, visit www.pentagonfoundation.org/dreammakers.
Sunday, August 21, 2011
IRS's top 10 tax tips for home sellers
Inman News
8.21.11
From time to time the IRS releases tips designed to help people with their taxes. Some of these are quite useful.
Last week the agency released "Ten Tax Tips for Individuals Selling Their Home," (IRS Summertime Tax Tip 2011-15).
As a real estate agent or broker, it is not your job to give home sellers tax advice. Indeed, it is advisable not to, since you could end up getting sued if you give wrong advice.
Instead, refer sellers to this list of IRS tips. It's a good starting place for them to begin to understand this often complex area of tax law. You could even print it out and hand it to anyone who asks you about these issues.
Here are the IRS's top 10 tax tips for home sellers:
1. In general, you are eligible to exclude the gain from income if you have owned and used your home as your main home for two years out of the five years prior to the date of its sale.
2. If you have a gain from the sale of your main home, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases).
3. You are not eligible for the exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home.
4. If you can exclude all of the gain, you do not need to report the sale on your tax return.
5. If you have a gain that cannot be excluded, it is taxable. You must report it on Form 1040, Schedule D, Capital Gains and Losses.
6. You cannot deduct a loss from the sale of your main home.
7. Worksheets are included in Publication 523, Selling Your Home, to help you figure the adjusted basis of the home you sold, the gain (or loss) on the sale, and the gain that you can exclude.
8. If you have more than one home, you can exclude a gain only from the sale of your main home. You must pay tax on the gain from selling any other home. If you have two homes and live in both of them, your main home is ordinarily the one you live in most of the time.
9. If you received the first-time homebuyer credit and within 36 months of the date of purchase, the property is no longer used as your principal residence, you are required to repay the credit. Repayment of the full credit is due with the income tax return for the year the home ceased to be your principal residence, using Form 5405, First-Time Homebuyer Credit and Repayment of the Credit. The full amount of the credit is reflected as additional tax on that year's tax return.
10. When you move, be sure to update your address with the IRS and the U.S. Postal Service to ensure you receive refunds or correspondence from the IRS. Use Form 8822, Change of Address, to notify the IRS of your address change.
8.21.11
From time to time the IRS releases tips designed to help people with their taxes. Some of these are quite useful.
Last week the agency released "Ten Tax Tips for Individuals Selling Their Home," (IRS Summertime Tax Tip 2011-15).
As a real estate agent or broker, it is not your job to give home sellers tax advice. Indeed, it is advisable not to, since you could end up getting sued if you give wrong advice.
Instead, refer sellers to this list of IRS tips. It's a good starting place for them to begin to understand this often complex area of tax law. You could even print it out and hand it to anyone who asks you about these issues.
Here are the IRS's top 10 tax tips for home sellers:
1. In general, you are eligible to exclude the gain from income if you have owned and used your home as your main home for two years out of the five years prior to the date of its sale.
2. If you have a gain from the sale of your main home, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases).
3. You are not eligible for the exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home.
4. If you can exclude all of the gain, you do not need to report the sale on your tax return.
5. If you have a gain that cannot be excluded, it is taxable. You must report it on Form 1040, Schedule D, Capital Gains and Losses.
6. You cannot deduct a loss from the sale of your main home.
7. Worksheets are included in Publication 523, Selling Your Home, to help you figure the adjusted basis of the home you sold, the gain (or loss) on the sale, and the gain that you can exclude.
8. If you have more than one home, you can exclude a gain only from the sale of your main home. You must pay tax on the gain from selling any other home. If you have two homes and live in both of them, your main home is ordinarily the one you live in most of the time.
9. If you received the first-time homebuyer credit and within 36 months of the date of purchase, the property is no longer used as your principal residence, you are required to repay the credit. Repayment of the full credit is due with the income tax return for the year the home ceased to be your principal residence, using Form 5405, First-Time Homebuyer Credit and Repayment of the Credit. The full amount of the credit is reflected as additional tax on that year's tax return.
10. When you move, be sure to update your address with the IRS and the U.S. Postal Service to ensure you receive refunds or correspondence from the IRS. Use Form 8822, Change of Address, to notify the IRS of your address change.
Thursday, August 18, 2011
Mushroom House For Sale
Property of the Month: “Mushroom House”
For sale: $1,100,000
This whimsical construction in upstate New York was custom-built in 1971 and was designed to look like a stem of Queen Anne’s Lace, but due to its pod-like structure, it is most often referred to as the “Mushroom House.”
Location: Perinton, NY (approximately 10 miles southeast of Rochester)
Architecture style: “Pod” design
Year built: 1971
Details: 3 bedrooms, 3 bathrooms, 4,168 square feet
Notable facts:
When Robert and Marguerite Antell purchased a 1.2-acre lot in the Rochester suburb of Perinton, they wanted a custom-built home that had a “natural, honest feeling” and was “informal, open and comfortable.”
Upon hearing this description of their dream home, architect James H. Johnson reportedly handed the Antells a glass Coke bottle with three stems of Queen Anne’s Lace inside, telling her “this is your home.”
The final result was a home made up of five interconnected pods, situated on a hill at the tree line, which was designed to blend art and nature.
Building five pods to sit on concrete and steel “stems” was no easy feat. According to documents from Periton’s landmark association, the builders made several failed attempts before constructing pods into two parts — a bottom to sit on the stems and a top. Both sections were made of concrete and polyurethane.
The pods are 30 feet in diameter and weigh 80 tons. Two pods are sleeping areas, the center pod contains the kitchen and sitting room and a fourth pod is a living and dining area with a fireplace. The fifth smaller pod serves as the deck. All together, the home has 4,168 square feet of living space.
While the home is unusual, what makes it more like a piece of art are contributions by several artists, including 9,000 ceramic tiles that cover the inside of the home, which were all hand-fired by previous owner Marguerite Antell.
“It’s like you’re living in art,” explains listing agent Rich Testa. “In both daylight and evening it [the home] takes on different feelings. It really is a unique house.”
Since the Mushroom House’s construction, there have only been three owners. The current owners, Christine and Steve Whitman, purchased it for $297,000 in 1999, which is 247 percent less than the home’s current listing price ($1,100,000) on the Perinton real estate market. Steve Whitman is a nephew of first owner Marguerite Antell.
The Whitmans redid much of the home in keeping in the original style, even hiring the initial architect James H. Johnson to design the great room addition.
The new great room is built into the side of the hill and is accessible from the main pod by a underground walkway lit by fiber-optic lights. It overlooks a creek, waterfall and outdoor hot tub.
Not only is the Mushroom House a local landmark, but it has been the site of several charity events. According to Testa, the current owners are planning on donating up $100,000 to Habitat for Humanity from the sale of the home and Testa will donate $1,000 from his own commission.
From Zillow
Prices increased 3.8 percent in Denver metro area from the 1st half of 2010 to 1st half of 2011
By Howard Pankratz
The Denver Post
Posted: 08/18/2011 09:03:53 AM MDTUpdated: 08/18/2011 09:04:01 AM MDT
Prices increased 3.8 percent in the Denver-Boulder-Greeley metropolitan area from the first half of 2010 to the first half of 2011, the Bureau of Labor Statistics said today.
It was the largest over-the-year advance since 2008, said the agency.
Regional Commissioner Stanley Suchman said that about 30 percent of the advance was attributable to higher energy costs that resulted largely from a rise in prices for motor fuel.
An increase in prices for recreation, shelter and food also contributed to the overall increase, said Suchman.
Food prices were up 3.4 percent from the first half of 2010 to the first half of 2011 following a 1.6 percent decline during the same period a year ago.
The energy index, which includes motor fuel and household fuels, climbed 16.3 percent from the first half of 2010 to the first half of 2011. A 28.5 percent jump in motor fuels, most of which occurred in the latter six months of the period, accounted for nearly all the increase in the energy component.
Within household energy, utility or piped gas service costs posted their first annual gain since 2008, turning up 3.1 percent due entirely to an increase in the most recent half of the period.
In contrast, prices for electricity declined 2.2 percent following a 21.4 percent increase in the same period a year ago.
The index for all items less food and energy rose 2.8 percent from the first half of 2010 to the first half of 2011. A record advance in recreation costs, up 7.6 percent over the year, led the increase.
Higher shelter costs had the next largest impact with an increase of 1.8 percent.
The Denver Post
Posted: 08/18/2011 09:03:53 AM MDTUpdated: 08/18/2011 09:04:01 AM MDT
Prices increased 3.8 percent in the Denver-Boulder-Greeley metropolitan area from the first half of 2010 to the first half of 2011, the Bureau of Labor Statistics said today.
It was the largest over-the-year advance since 2008, said the agency.
Regional Commissioner Stanley Suchman said that about 30 percent of the advance was attributable to higher energy costs that resulted largely from a rise in prices for motor fuel.
An increase in prices for recreation, shelter and food also contributed to the overall increase, said Suchman.
Food prices were up 3.4 percent from the first half of 2010 to the first half of 2011 following a 1.6 percent decline during the same period a year ago.
The energy index, which includes motor fuel and household fuels, climbed 16.3 percent from the first half of 2010 to the first half of 2011. A 28.5 percent jump in motor fuels, most of which occurred in the latter six months of the period, accounted for nearly all the increase in the energy component.
Within household energy, utility or piped gas service costs posted their first annual gain since 2008, turning up 3.1 percent due entirely to an increase in the most recent half of the period.
In contrast, prices for electricity declined 2.2 percent following a 21.4 percent increase in the same period a year ago.
The index for all items less food and energy rose 2.8 percent from the first half of 2010 to the first half of 2011. A record advance in recreation costs, up 7.6 percent over the year, led the increase.
Higher shelter costs had the next largest impact with an increase of 1.8 percent.
Rate on 30-year mortgage falls to lowest on record
By DANIEL WAGNER AP Business Writer
Posted: 08/18/2011 08:04:04 AM MDTUpdated: 08/18/2011 10:39:01 AM MDT
WASHINGTON—The average rate on a 30-year fixed mortgage has fallen to its lowest level on records dating to 1971.
The rate on the most popular mortgage dipped to 4.15 percent from 4.32 percent a week ago, Freddie Mac said Thursday. Its previous low of 4.17 percent was reached in November.
The last time long-term rates were lower was in the 1950s, when 30-year loans weren't widely available. Most long-term home loans lasted 20 or 25 years.
Few expect record-low rates to energize the depressed home market. Over the past year, the average rate on the 30-year fixed mortgage has been below 5 percent for all but two weeks. Yet prices and sales remain unhealthy and are holding back the overall economy.
Five years ago, the average 30-year fixed rate was near 6.5 percent. In 2000, it exceeded 8 percent.
Most homeowners are paying rates more than a full percentage point higher than the current average. The average rate on all outstanding mortgages is 5.3 percent, Freddie Mac said, citing data from the Bureau of Economic Analysis.
After previous recessions, housing accounted for 15 percent to 20 percent of overall economic growth. This time, in 2009 and 2010, housing contributed just 4 percent to the economy.
"The housing market is not going to turn around because of this, because it isn't the mortgage rate that matters," said Joel Naroff, head of Naroff Economic Advisors. Naroff blamed the "horrendous" process of qualifying for a mortgage despite tougher lending standards. He said trying to sell a home in many markets is just as difficult.
Many would-be buyers can't take advantage of the low rates. The unemployment rate is 9.1 percent, few Americans are getting raises and many are struggling to shrink their debt loads.
Banks are also insisting on higher credit scores and larger down payments for first-time buyers. Many repeat buyers have too little equity invested in their homes to qualify for loans. Others are too nervous about the economy or their job security to invest in a home.
The average rate on a 15-year fixed mortgage, which is popular for refinancing, fell to 3.36 percent, also a record low. It's the third straight week of record lows for the popular refinancing option. Freddie Mac's records date to 1991, but analysts believe the new low on the 15-year mortgage is the lowest ever.
Borrowers who qualify have rushed to refinance and take advantage of the low rates. Refinancing accounted for 70 percent of mortgage applications in the first half of the year, Freddie Mac said. Refinancings tend to provide less benefit to the economy than home purchases do.
Mortgage rates typically track the yield on the 10-year Treasury note. Economic fears have drawn investors to the safety of Treasurys, driving down the yield on the 10-year note to barely above 2 percent. That helped lower mortgage rates.
The Federal Reserve offered a dim outlook of the economy last week, saying it expects growth will stay weak for two more years. As a result, the Fed said it expects to keep short-term rates near zero through mid-2013.
Roughly 14 million Americans remain unemployed. And the economy isn't creating enough jobs to rapidly trim that figure. The economy grew at an annual rate of just 0.8 percent in the first six months of this year, the slowest such pace since the recession officially ended more than two years ago. In June, consumers cut spending for the first time in 20 months.
Fewer Americans bought previously occupied homes in July for the third time in four months, the National Association of Realtors said Thursday in a separate report. It said sales fell 3.5 percent last month to a seasonally adjusted annual rate of 4.67 million homes. That's far below the 6 million that economists say must be sold to sustain a healthy housing market.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week.
The average rate on a five-year adjustable-rate mortgage fell to 3.08 percent, its lowest level on records dating to January 2005. Last week's reading of 3.13 percent also was a record low. The week before was, too.
The average for one-year adjustable-rate loans fell to 2.86 percent, the lowest on records going back to 1984. Last week's average of 2.89 also set a record.
The rates do not include extra fees known as points. One point is equal to 1 percent of the total loan amount.
Posted: 08/18/2011 08:04:04 AM MDTUpdated: 08/18/2011 10:39:01 AM MDT
WASHINGTON—The average rate on a 30-year fixed mortgage has fallen to its lowest level on records dating to 1971.
The rate on the most popular mortgage dipped to 4.15 percent from 4.32 percent a week ago, Freddie Mac said Thursday. Its previous low of 4.17 percent was reached in November.
The last time long-term rates were lower was in the 1950s, when 30-year loans weren't widely available. Most long-term home loans lasted 20 or 25 years.
Few expect record-low rates to energize the depressed home market. Over the past year, the average rate on the 30-year fixed mortgage has been below 5 percent for all but two weeks. Yet prices and sales remain unhealthy and are holding back the overall economy.
Five years ago, the average 30-year fixed rate was near 6.5 percent. In 2000, it exceeded 8 percent.
Most homeowners are paying rates more than a full percentage point higher than the current average. The average rate on all outstanding mortgages is 5.3 percent, Freddie Mac said, citing data from the Bureau of Economic Analysis.
After previous recessions, housing accounted for 15 percent to 20 percent of overall economic growth. This time, in 2009 and 2010, housing contributed just 4 percent to the economy.
"The housing market is not going to turn around because of this, because it isn't the mortgage rate that matters," said Joel Naroff, head of Naroff Economic Advisors. Naroff blamed the "horrendous" process of qualifying for a mortgage despite tougher lending standards. He said trying to sell a home in many markets is just as difficult.
Many would-be buyers can't take advantage of the low rates. The unemployment rate is 9.1 percent, few Americans are getting raises and many are struggling to shrink their debt loads.
Banks are also insisting on higher credit scores and larger down payments for first-time buyers. Many repeat buyers have too little equity invested in their homes to qualify for loans. Others are too nervous about the economy or their job security to invest in a home.
The average rate on a 15-year fixed mortgage, which is popular for refinancing, fell to 3.36 percent, also a record low. It's the third straight week of record lows for the popular refinancing option. Freddie Mac's records date to 1991, but analysts believe the new low on the 15-year mortgage is the lowest ever.
Borrowers who qualify have rushed to refinance and take advantage of the low rates. Refinancing accounted for 70 percent of mortgage applications in the first half of the year, Freddie Mac said. Refinancings tend to provide less benefit to the economy than home purchases do.
Mortgage rates typically track the yield on the 10-year Treasury note. Economic fears have drawn investors to the safety of Treasurys, driving down the yield on the 10-year note to barely above 2 percent. That helped lower mortgage rates.
The Federal Reserve offered a dim outlook of the economy last week, saying it expects growth will stay weak for two more years. As a result, the Fed said it expects to keep short-term rates near zero through mid-2013.
Roughly 14 million Americans remain unemployed. And the economy isn't creating enough jobs to rapidly trim that figure. The economy grew at an annual rate of just 0.8 percent in the first six months of this year, the slowest such pace since the recession officially ended more than two years ago. In June, consumers cut spending for the first time in 20 months.
Fewer Americans bought previously occupied homes in July for the third time in four months, the National Association of Realtors said Thursday in a separate report. It said sales fell 3.5 percent last month to a seasonally adjusted annual rate of 4.67 million homes. That's far below the 6 million that economists say must be sold to sustain a healthy housing market.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week.
The average rate on a five-year adjustable-rate mortgage fell to 3.08 percent, its lowest level on records dating to January 2005. Last week's reading of 3.13 percent also was a record low. The week before was, too.
The average for one-year adjustable-rate loans fell to 2.86 percent, the lowest on records going back to 1984. Last week's average of 2.89 also set a record.
The rates do not include extra fees known as points. One point is equal to 1 percent of the total loan amount.
Monday, August 15, 2011
Louisville named Money Magazine's No. 1 place in the country to live
By The Camera
Posted: 08/15/2011 12:30:05 PM MDTUpdated: 08/15/2011 12:30:14 PM MDT
Sunshine, schools, jobs and location once again put Louisville at the top of Money Magazine's annual "America's Best Places to Live" list in 2011.
With easy accessibility and among the lowest crime rates in Colorado, Louisville has become a perennial name on Money's list, now earning the top spot for the second time.
Money also lists a stable and down-to-earth real estate market compared to surrounding communities, the available recreation activities and a cutting edge job market -- including tech, telecom, aerospace, clean energy and health care -- among the reasons for Louisville's selection.
Superior and Castle Rock also placed in the Top 20.
Posted: 08/15/2011 12:30:05 PM MDTUpdated: 08/15/2011 12:30:14 PM MDT
Sunshine, schools, jobs and location once again put Louisville at the top of Money Magazine's annual "America's Best Places to Live" list in 2011.
With easy accessibility and among the lowest crime rates in Colorado, Louisville has become a perennial name on Money's list, now earning the top spot for the second time.
Money also lists a stable and down-to-earth real estate market compared to surrounding communities, the available recreation activities and a cutting edge job market -- including tech, telecom, aerospace, clean energy and health care -- among the reasons for Louisville's selection.
Superior and Castle Rock also placed in the Top 20.
US home builders remain pessimistic in August
Denver Post
Posted: 08/15/2011 08:03:41 AM MDTUpdated: 08/15/2011 10:00:10 AM MDT
WASHINGTON—Homebuilders are just as pessimistic about the depressed housing market as they were two years ago.
The National Association of Home Builders said Monday that its index of builder sentiment in August was unchanged at 15. The index has been below 20 for all but one month during the past two years.
Any reading below 50 indicates negative sentiment about the housing market. It hasn't reached 50 since April 2006, the peak of the housing boom.
Separate gauges of current single-family home sales and foot traffic of prospective buyers each rose one point this month. But the outlook for sales for the next six months fell two points.
Last year, the number of people who bought new homes fell to its lowest level dating back nearly a half-century. Sales this year haven't fared much better.
Builders are struggling to compete with foreclosures, which have made the price of re-sales more competitive. Many buyers are having difficulty obtaining loans or meeting higher down payment requirements. Low appraisals are scuttling some deal after contracts have been signed. Some would-be buyers who want to purchase a new home can't sell their old one.
While new homes make up a small portion of sales, they have an outsize impact on the economy. Each new home built creates an average of three jobs for a year and generates about $90,000 in taxes, according to the builders' trade group.
A special question on the survey this month showed that 41 percent of builders had lost a contract because a buyer could not sell their current home, said Bob Nielsen, chairman of the builders' group.
David Crowe, the group's chief economist, said a weakening U.S. economy and high unemployment are also "discouraging many potential buyers from exploring a home purchase." Even record-low mortgage rates have done little to boost sales.
An index of builders' outlook in the Northeast and West rose four points and one point, respectively. Sentiment in the South stayed the same in August while it declined two points in the Midwest.
Posted: 08/15/2011 08:03:41 AM MDTUpdated: 08/15/2011 10:00:10 AM MDT
WASHINGTON—Homebuilders are just as pessimistic about the depressed housing market as they were two years ago.
The National Association of Home Builders said Monday that its index of builder sentiment in August was unchanged at 15. The index has been below 20 for all but one month during the past two years.
Any reading below 50 indicates negative sentiment about the housing market. It hasn't reached 50 since April 2006, the peak of the housing boom.
Separate gauges of current single-family home sales and foot traffic of prospective buyers each rose one point this month. But the outlook for sales for the next six months fell two points.
Last year, the number of people who bought new homes fell to its lowest level dating back nearly a half-century. Sales this year haven't fared much better.
Builders are struggling to compete with foreclosures, which have made the price of re-sales more competitive. Many buyers are having difficulty obtaining loans or meeting higher down payment requirements. Low appraisals are scuttling some deal after contracts have been signed. Some would-be buyers who want to purchase a new home can't sell their old one.
While new homes make up a small portion of sales, they have an outsize impact on the economy. Each new home built creates an average of three jobs for a year and generates about $90,000 in taxes, according to the builders' trade group.
A special question on the survey this month showed that 41 percent of builders had lost a contract because a buyer could not sell their current home, said Bob Nielsen, chairman of the builders' group.
David Crowe, the group's chief economist, said a weakening U.S. economy and high unemployment are also "discouraging many potential buyers from exploring a home purchase." Even record-low mortgage rates have done little to boost sales.
An index of builders' outlook in the Northeast and West rose four points and one point, respectively. Sentiment in the South stayed the same in August while it declined two points in the Midwest.
Thursday, August 11, 2011
Foreclosures fall in Colorado but problems still exist
Denver Post
New foreclosure filings fell to 15,348 in Colorado during 2011's first half, falling 28.2 percent from 2010's first-half total of 21,369, according to a report released today by the Colorado Division of Housing.
The report also noted that foreclosure sales at auction - the event that completes the foreclosure process - also dropped during the first half of 2011, falling 13 percent from 12,573 to 10,938, year-over-year.
The year-to-date declines in foreclosure activity at mid-year were reflected in the second quarter's foreclosure totals.
From 2010's second quarter to the second quarter of this year, filings fell 29.3 percent from 10,233 to 7,233. During the same period, sales at auction fell 9.4 percent from 5,887 to 5,333.
Ryan McMaken, division of housing spokesman, said that while some of the decrease in foreclosure activity is due to banks processing foreclosures more slowly, there is also reason to believe that are "in fact fewer people actually getting behind in their payments.
"Consequently, the number of new households entering the foreclosure process is down quite a bit from any other year since 2007. But the fact that foreclosure sales at auction are holding steady tells us that there are still a lot of properties in the foreclosure process that must be dealt with."
The report said that while several regions in Colorado saw improvement during the first quarter, other areas continued to experience a rising number of foreclosures.
While foreclosure filings fell, year over year, in 48 of Colorado's 64 counties during the second quarter, foreclosure sales at auction fell in only half of Colorado's counties.
McMaken said that many counties reported sizable increases in the number of foreclosure sales at auction.
Eagle, Elbert, Gunnison, Montezuma and Summit counties reported increases of 20 percent or more in the number of foreclosure sales at auction.
On the other hand, both foreclosure sales and filings dropped significantly in Denver, Adams, Arapahoe, Douglas and El Paso counties.
McMaken said generally foreclosure activity since 2008 has tended to show the most sustained declines in Front Range counties while the largest increases have been found on the Western Slope and in the central mountains.
This reverses a trend that lasted from 2003 to 2008 in which counties on the Western Slope and in the central mountains reported "far less" growth in foreclosures than did the Front Range counties.
The Division of Housing said that foreclosures fell from the first quarter of 2011 to the second quarter, with foreclosure filings dropping 10.9 percent and sales dropping 4.9 percent.
McMaken said that the foreclosure filings during the second quarter fell to the second-lowest quarterly total recorded since Colorado began collecting quarterly totals during the first quarter of 2007.
Foreclosure filings have fallen 42 percent from 2009's third-quarter total when filings peaked at more than 12,000 new foreclosures. Foreclosure sales at auction, on the other hand, have generally moved sideways for the past two years as large numbers of new foreclosures have slowly moved through the foreclosure process, said McMaken.
New foreclosure filings fell to 15,348 in Colorado during 2011's first half, falling 28.2 percent from 2010's first-half total of 21,369, according to a report released today by the Colorado Division of Housing.
The report also noted that foreclosure sales at auction - the event that completes the foreclosure process - also dropped during the first half of 2011, falling 13 percent from 12,573 to 10,938, year-over-year.
The year-to-date declines in foreclosure activity at mid-year were reflected in the second quarter's foreclosure totals.
From 2010's second quarter to the second quarter of this year, filings fell 29.3 percent from 10,233 to 7,233. During the same period, sales at auction fell 9.4 percent from 5,887 to 5,333.
Ryan McMaken, division of housing spokesman, said that while some of the decrease in foreclosure activity is due to banks processing foreclosures more slowly, there is also reason to believe that are "in fact fewer people actually getting behind in their payments.
"Consequently, the number of new households entering the foreclosure process is down quite a bit from any other year since 2007. But the fact that foreclosure sales at auction are holding steady tells us that there are still a lot of properties in the foreclosure process that must be dealt with."
The report said that while several regions in Colorado saw improvement during the first quarter, other areas continued to experience a rising number of foreclosures.
While foreclosure filings fell, year over year, in 48 of Colorado's 64 counties during the second quarter, foreclosure sales at auction fell in only half of Colorado's counties.
McMaken said that many counties reported sizable increases in the number of foreclosure sales at auction.
Eagle, Elbert, Gunnison, Montezuma and Summit counties reported increases of 20 percent or more in the number of foreclosure sales at auction.
On the other hand, both foreclosure sales and filings dropped significantly in Denver, Adams, Arapahoe, Douglas and El Paso counties.
McMaken said generally foreclosure activity since 2008 has tended to show the most sustained declines in Front Range counties while the largest increases have been found on the Western Slope and in the central mountains.
This reverses a trend that lasted from 2003 to 2008 in which counties on the Western Slope and in the central mountains reported "far less" growth in foreclosures than did the Front Range counties.
The Division of Housing said that foreclosures fell from the first quarter of 2011 to the second quarter, with foreclosure filings dropping 10.9 percent and sales dropping 4.9 percent.
McMaken said that the foreclosure filings during the second quarter fell to the second-lowest quarterly total recorded since Colorado began collecting quarterly totals during the first quarter of 2007.
Foreclosure filings have fallen 42 percent from 2009's third-quarter total when filings peaked at more than 12,000 new foreclosures. Foreclosure sales at auction, on the other hand, have generally moved sideways for the past two years as large numbers of new foreclosures have slowly moved through the foreclosure process, said McMaken.
Wednesday, August 10, 2011
Rates on 15-Year Fixed Lowest
RISMEDIA, August 11, 2011—The average rate for a 15-year fixed loan dropped to 3.54 percent last week from 3.66 percent the week before, according to Freddie Mac—the lowest result since 1991.
The average rate on the 30-year fixed loan fell to a yearly low of 4.39 percent from 4.55 percent the previous week.
Mortgage rates tend to track the yield on the 10-year Treasury note. A weakening U.S. economy has led many investors to shift money from stocks to bonds, which are seen as safer bets. That has pushed Treasury yields to their lowest level this year. Bond yields fall as demand increases.
Low mortgage rates and depressed home prices have done little to revive the moribund housing market.
To calculate average mortgage rates, Freddie Mac collects rates from lenders across the country on Monday through Wednesday of each week.
The average rate on a five-year adjustable-rate mortgage fell to 3.18 percent, its lowest level on records that go back to January 2005. Last week’s reading of 3.25 percent also was a record low.
The average rate for one-year adjustable-rate loans rose to 3.02 percent from 2.95 percent last week. Last week’s average rate matched the record low set two weeks earlier on records dating back to 1984.
The average fees for the 30-year and 15-year fixed loans and the 5-year adjustable loan were unchanged at 0.8 point, 0.7 point and 0.6 point, respectively. The average fee for the one-year ARM fell to 0.5 point from 0.6 point last week.
The average rate on the 30-year fixed loan fell to a yearly low of 4.39 percent from 4.55 percent the previous week.
Mortgage rates tend to track the yield on the 10-year Treasury note. A weakening U.S. economy has led many investors to shift money from stocks to bonds, which are seen as safer bets. That has pushed Treasury yields to their lowest level this year. Bond yields fall as demand increases.
Low mortgage rates and depressed home prices have done little to revive the moribund housing market.
To calculate average mortgage rates, Freddie Mac collects rates from lenders across the country on Monday through Wednesday of each week.
The average rate on a five-year adjustable-rate mortgage fell to 3.18 percent, its lowest level on records that go back to January 2005. Last week’s reading of 3.25 percent also was a record low.
The average rate for one-year adjustable-rate loans rose to 3.02 percent from 2.95 percent last week. Last week’s average rate matched the record low set two weeks earlier on records dating back to 1984.
The average fees for the 30-year and 15-year fixed loans and the 5-year adjustable loan were unchanged at 0.8 point, 0.7 point and 0.6 point, respectively. The average fee for the one-year ARM fell to 0.5 point from 0.6 point last week.
Monday, August 8, 2011
Metro Denver home prices up as sales rate falls
The Denver Post
8/8/2011
Metro Denver home prices rose 2.2 percent in July, even as the number of homes sold fell compared to June.
The average single-family home sold in July for $298,654, up from $292,230 in June, according to an analysis of Metrolist Inc. data by market analyst Gary Bauer.
Properties placed under contract fell from 4,761 in June to 4,250 in July. One year ago, July sales volume was 3,808.
For the first seven months of 2011, the number of properties placed under contract is running 10.1 percent lower than in the same period of 2010.
8/8/2011
Metro Denver home prices rose 2.2 percent in July, even as the number of homes sold fell compared to June.
The average single-family home sold in July for $298,654, up from $292,230 in June, according to an analysis of Metrolist Inc. data by market analyst Gary Bauer.
Properties placed under contract fell from 4,761 in June to 4,250 in July. One year ago, July sales volume was 3,808.
For the first seven months of 2011, the number of properties placed under contract is running 10.1 percent lower than in the same period of 2010.
5 Frugal Ways to Make Moving Easier
Bankrate.com
Summer is prime moving season.
And who doesn't relish the chance to push a bookcase up a flight of stairs during the hottest part of the year?
While you can't control everything (and moves often morph into extended exercises in Murphy's Law), you can make it a lot easier. And cheaper.
Here are five tips to simplify and cut the costs -- and the stress -- during your next move.
1. LIGHTEN YOUR LOAD.
Some people are under the gun to move. Too many times, they pack everything and intend to sort it later when they have time.
Big mistake.
Most movers charge by the pound, says Steve Weitekamp, president of the California Moving & Storage Association.
And if you're moving yourself, all the more reason for ditching items first and just taking the good stuff.
"Go through everything you have," says Dick Gaylord, past president of the National Association of Realtors and broker with Re/Max Real Estate Specialists in Long Beach, Calif. "Determine what you really use. If you've got magazines from five years ago that you've not looked at once, get rid of them."
Want to make the process easier? Watch a couple of episodes of "Hoarders." Then get moving.
2. SELL. DONATE. RECYCLE. REPEAT.
Have things that you just don't need or want anymore? Consider three options:
If you have items that still have some life left in them -- just not in your house -- donate them. Charities such as the Salvation Army and Goodwill run thrift stores, where they'll sell your stuff and use the proceeds.
Or dial up the thrift stores in your area to see if they have a market for the items you're unloading. You can put the money toward your move or your new place.Have a stack of old books? Call a used bookshop and see if you can sell or trade your titles. Ditto at used-record stores.For broken or worn-out items, if time is more important than money, services such as 1-800-Got-Junk? will haul it away -- and recycle anything that's salvageable. And since you're not paying to move it, this can save some coin.Also, many big-box electronics stores will accept and recycle old electronics free.
3. ID DIY ITEMS
Everybody has them: those special little items that have sentimental value. It might be Grandma's vase. Or that footstool Uncle Ed carved by hand. Or a finger-painting that won a blue ribbon at your child's school art fair.
Identify those special items and pack them yourself, says James Foltz, an aerospace engineer who recently moved 200 miles from Oklahoma to Texas.
"That was probably the biggest thing to us," he says. "Before the movers showed up we said 'OK, what don't we want them to touch?'" Even the best of movers are "not going to treat (those things) with the level of care you would."
The result: Nothing is lost "except for the handle on one yard cart," Foltz says.
4. MOVE BY THE NUMBERS
There are some items consumers should always pack themselves and keep with them during a move, Weitekamp says: prescriptions, credit cards, fine jewelry, passports, birth certificates or other any important personal or financial documents that you might need to find quickly.
One of the biggest hassles of moving is "mystery box syndrome."
Does that kitchen box contain the coffee maker, the bread machine, the fondue pot or the good stemware?
Before you pack your first box, invest in a $1 spiral notebook. Every time you pack a box, number it. (Put the number on every side, and write it big. That way, no matter how the box is placed later, you can read the number.) In the notebook, next to that number, give a brief rundown of what's in the box. (No. 12: Kitchen items -- silverware, wok, cooking pots.)
This is also a great way to make sure everything makes it to your destination. As the boxes show up, you can check them off your list. And if anything doesn't arrive, you know what's missing.
5. USE YOUR CALENDAR
One of the most important moving tools can be your calendar.
Gaylord has moved a few times himself, and he's coached clients for their moves. His advice is to prepare a calendar, then give yourself deadlines for packing various rooms in your home.
Don't be afraid to make alternative arrangements as you go, he says. For instance, once you pack up your kitchen, you will be dining out, grabbing fast food or gobbling no-cook food off paper plates until you get to your new home.
You can also use the "priority" box system, he says. As you pack each room, put items you'll need immediately (can you say, 1 pound of French roast and the coffee maker?) in one box. Then mark it with the room name and "priority" or something similar, says Gaylord.
If you want to go all Dan Brown, you can even use a funky symbol or code you devise yourself.
Summer is prime moving season.
And who doesn't relish the chance to push a bookcase up a flight of stairs during the hottest part of the year?
While you can't control everything (and moves often morph into extended exercises in Murphy's Law), you can make it a lot easier. And cheaper.
Here are five tips to simplify and cut the costs -- and the stress -- during your next move.
1. LIGHTEN YOUR LOAD.
Some people are under the gun to move. Too many times, they pack everything and intend to sort it later when they have time.
Big mistake.
Most movers charge by the pound, says Steve Weitekamp, president of the California Moving & Storage Association.
And if you're moving yourself, all the more reason for ditching items first and just taking the good stuff.
"Go through everything you have," says Dick Gaylord, past president of the National Association of Realtors and broker with Re/Max Real Estate Specialists in Long Beach, Calif. "Determine what you really use. If you've got magazines from five years ago that you've not looked at once, get rid of them."
Want to make the process easier? Watch a couple of episodes of "Hoarders." Then get moving.
2. SELL. DONATE. RECYCLE. REPEAT.
Have things that you just don't need or want anymore? Consider three options:
If you have items that still have some life left in them -- just not in your house -- donate them. Charities such as the Salvation Army and Goodwill run thrift stores, where they'll sell your stuff and use the proceeds.
Or dial up the thrift stores in your area to see if they have a market for the items you're unloading. You can put the money toward your move or your new place.Have a stack of old books? Call a used bookshop and see if you can sell or trade your titles. Ditto at used-record stores.For broken or worn-out items, if time is more important than money, services such as 1-800-Got-Junk? will haul it away -- and recycle anything that's salvageable. And since you're not paying to move it, this can save some coin.Also, many big-box electronics stores will accept and recycle old electronics free.
3. ID DIY ITEMS
Everybody has them: those special little items that have sentimental value. It might be Grandma's vase. Or that footstool Uncle Ed carved by hand. Or a finger-painting that won a blue ribbon at your child's school art fair.
Identify those special items and pack them yourself, says James Foltz, an aerospace engineer who recently moved 200 miles from Oklahoma to Texas.
"That was probably the biggest thing to us," he says. "Before the movers showed up we said 'OK, what don't we want them to touch?'" Even the best of movers are "not going to treat (those things) with the level of care you would."
The result: Nothing is lost "except for the handle on one yard cart," Foltz says.
4. MOVE BY THE NUMBERS
There are some items consumers should always pack themselves and keep with them during a move, Weitekamp says: prescriptions, credit cards, fine jewelry, passports, birth certificates or other any important personal or financial documents that you might need to find quickly.
One of the biggest hassles of moving is "mystery box syndrome."
Does that kitchen box contain the coffee maker, the bread machine, the fondue pot or the good stemware?
Before you pack your first box, invest in a $1 spiral notebook. Every time you pack a box, number it. (Put the number on every side, and write it big. That way, no matter how the box is placed later, you can read the number.) In the notebook, next to that number, give a brief rundown of what's in the box. (No. 12: Kitchen items -- silverware, wok, cooking pots.)
This is also a great way to make sure everything makes it to your destination. As the boxes show up, you can check them off your list. And if anything doesn't arrive, you know what's missing.
5. USE YOUR CALENDAR
One of the most important moving tools can be your calendar.
Gaylord has moved a few times himself, and he's coached clients for their moves. His advice is to prepare a calendar, then give yourself deadlines for packing various rooms in your home.
Don't be afraid to make alternative arrangements as you go, he says. For instance, once you pack up your kitchen, you will be dining out, grabbing fast food or gobbling no-cook food off paper plates until you get to your new home.
You can also use the "priority" box system, he says. As you pack each room, put items you'll need immediately (can you say, 1 pound of French roast and the coffee maker?) in one box. Then mark it with the room name and "priority" or something similar, says Gaylord.
If you want to go all Dan Brown, you can even use a funky symbol or code you devise yourself.
Price your home to sell
Price your home to sell
By Michele Lerner • Bankrate.com
Highlights
Use comparable sales to arrive at a reasonable asking price.
Include nearby short sales and foreclosures when setting the price.
Today's buyers aren't into paying extra for upgrades such as granite.
Setting a proper asking price for a house is a challenge for home sellers and real estate agents, especially where values are in decline. Experienced agents recommend asking prices that are backed with data.
Pricing a home correctly from the get-go is the most important factor in determining how quickly the house sells and for how much. Yet sellers often want to ask unrealistically high prices.
Comparable sales
Chris Ann Cleland, an associate broker with Long & Foster Real Estate in Gainesville, Va., says she reviews sales prices for comparable homes for no more than the previous six months, if possible. Brokers call comparable sales "comps" for short.
"All Realtors look at previous home sales prices," says Mike DelRose, a broker with Re/Max Leading Edge in Watertown, Mass. "In today's market, we look at sales in the shortest possible time frame to get the best comparable sales. Sometimes we go back two or three months, sometimes six months to one year, but the more recent comps are the most valuable."
DelRose says sellers must look at prices for short sales and foreclosures because potential buyers are looking at them, too.
"If you have just one short sale in a particular market, that may not affect the prices of other homes, but when you have a large number of foreclosures or short sales, that could have a big impact," DelRose says.
In many markets, foreclosures and short sales have pulled down home values.
"In the Tampa area, over 51 percent of sales in the past couple of years have been distressed sales, and you can't exempt those sales prices when they are such a big part of the market," says Martha Thorn, a sales associate with Coldwell Banker Residential Real Estate in Belleair Bluffs, Fla.
Check the competition
DelRose says he looks at competing homes on the market as often as at past sales these days to gauge an appropriate price.
"You can look at current homes on the market, but sometimes people still price their homes too high," Thorn says.
Cleland says she looks at active listings to see where the competition is priced and to evaluate the condition of the properties. The goal is to position her listings at the best prices for their condition.
"I don't look at homes that have gone under contract, because you don't know what negotiations are still taking place or whether the home went under contract for the list price," says Cleland. "If it isn't a done deal yet, then it doesn't really matter."
When a home goes under contract, you can look at how long it was on the market and whether it had price reductions after the initial list price, DelRose says, but the price paid won't be revealed until closing.
Property condition
"The condition of a property impacts the list price, but even more than that, the condition will impact whether your home sells," DelRose says. "Buyers today have a lot more options, so sellers must spend time and perhaps money to bring a professional eye to the property to be successful."
Thorn says that while having your home in good condition may help you get an offer, buyers do not expect to pay extra.
"Upgrades don't go as far as they used to," Cleland says. "It may help you sell faster, but you shouldn't expect to get a lot of extra money just because you have granite counters in your kitchen."
Price adjustments
While some sellers prefer to start at a higher price and lower the price after a certain time on the market, DelRose says this tactic almost always results in the property selling for a lower price than if the sellers had priced appropriately from the start. He recommends price changes only for properties with no viewers or that have received negative feedback from potential buyers.
Thorn says a price adjustment should be geared to getting the home into a different price bracket, such as from $550,000 down to $499,000, so new buyers will see it in online searches.
"In a declining market, you have to make sure to price your home right the first time and have your home in the best condition, because you don't know what will happen in six months," Cleland says.
By Michele Lerner • Bankrate.com
Highlights
Use comparable sales to arrive at a reasonable asking price.
Include nearby short sales and foreclosures when setting the price.
Today's buyers aren't into paying extra for upgrades such as granite.
Setting a proper asking price for a house is a challenge for home sellers and real estate agents, especially where values are in decline. Experienced agents recommend asking prices that are backed with data.
Pricing a home correctly from the get-go is the most important factor in determining how quickly the house sells and for how much. Yet sellers often want to ask unrealistically high prices.
Comparable sales
Chris Ann Cleland, an associate broker with Long & Foster Real Estate in Gainesville, Va., says she reviews sales prices for comparable homes for no more than the previous six months, if possible. Brokers call comparable sales "comps" for short.
"All Realtors look at previous home sales prices," says Mike DelRose, a broker with Re/Max Leading Edge in Watertown, Mass. "In today's market, we look at sales in the shortest possible time frame to get the best comparable sales. Sometimes we go back two or three months, sometimes six months to one year, but the more recent comps are the most valuable."
DelRose says sellers must look at prices for short sales and foreclosures because potential buyers are looking at them, too.
"If you have just one short sale in a particular market, that may not affect the prices of other homes, but when you have a large number of foreclosures or short sales, that could have a big impact," DelRose says.
In many markets, foreclosures and short sales have pulled down home values.
"In the Tampa area, over 51 percent of sales in the past couple of years have been distressed sales, and you can't exempt those sales prices when they are such a big part of the market," says Martha Thorn, a sales associate with Coldwell Banker Residential Real Estate in Belleair Bluffs, Fla.
Check the competition
DelRose says he looks at competing homes on the market as often as at past sales these days to gauge an appropriate price.
"You can look at current homes on the market, but sometimes people still price their homes too high," Thorn says.
Cleland says she looks at active listings to see where the competition is priced and to evaluate the condition of the properties. The goal is to position her listings at the best prices for their condition.
"I don't look at homes that have gone under contract, because you don't know what negotiations are still taking place or whether the home went under contract for the list price," says Cleland. "If it isn't a done deal yet, then it doesn't really matter."
When a home goes under contract, you can look at how long it was on the market and whether it had price reductions after the initial list price, DelRose says, but the price paid won't be revealed until closing.
Property condition
"The condition of a property impacts the list price, but even more than that, the condition will impact whether your home sells," DelRose says. "Buyers today have a lot more options, so sellers must spend time and perhaps money to bring a professional eye to the property to be successful."
Thorn says that while having your home in good condition may help you get an offer, buyers do not expect to pay extra.
"Upgrades don't go as far as they used to," Cleland says. "It may help you sell faster, but you shouldn't expect to get a lot of extra money just because you have granite counters in your kitchen."
Price adjustments
While some sellers prefer to start at a higher price and lower the price after a certain time on the market, DelRose says this tactic almost always results in the property selling for a lower price than if the sellers had priced appropriately from the start. He recommends price changes only for properties with no viewers or that have received negative feedback from potential buyers.
Thorn says a price adjustment should be geared to getting the home into a different price bracket, such as from $550,000 down to $499,000, so new buyers will see it in online searches.
"In a declining market, you have to make sure to price your home right the first time and have your home in the best condition, because you don't know what will happen in six months," Cleland says.
Thursday, August 4, 2011
Mortgage lending in second quarter up more than 100 percent from last year
By Howard Pankratz
The Denver Post
Second quarter commercial and multifamily mortgage lending was up 107 percent from last year and up 52 percent from the first quarter of 2011, the Mortgage Bankers Association said today.
"Commercial/multifamily mortgage borrowing and lending continues to rise from the depths of 2009 and 2010," said Jamie Woodwell, MBA's vice president of commercial real estate research.
Woodwell said greater stability in property fundamentals and prices, and an improving sales market have created a better climate for borrowers and lenders.
Woodwell said keys to how property owners qualify for mortgage financing will depend on property values and interest rates coupled with job growth, consumer spending, household growth and "other macro-economic trends."
The association said that the 107 percent overall increase in lending activity during the second quarter of this year was driven by increases in originations for all property types.
The report said that when compared to the second quarter of 2010, the increase included a 141 percent increase in loans for health care properties, a 125 percent increase in loans for hotel properties, a 116 percent increase in loans for retail properties and a 114 percent increase in loans for multifamily properties.
The report said there was also a 54 percent increase in office property loans and a 34 percent increase in industrial property loans.
The Denver Post
Second quarter commercial and multifamily mortgage lending was up 107 percent from last year and up 52 percent from the first quarter of 2011, the Mortgage Bankers Association said today.
"Commercial/multifamily mortgage borrowing and lending continues to rise from the depths of 2009 and 2010," said Jamie Woodwell, MBA's vice president of commercial real estate research.
Woodwell said greater stability in property fundamentals and prices, and an improving sales market have created a better climate for borrowers and lenders.
Woodwell said keys to how property owners qualify for mortgage financing will depend on property values and interest rates coupled with job growth, consumer spending, household growth and "other macro-economic trends."
The association said that the 107 percent overall increase in lending activity during the second quarter of this year was driven by increases in originations for all property types.
The report said that when compared to the second quarter of 2010, the increase included a 141 percent increase in loans for health care properties, a 125 percent increase in loans for hotel properties, a 116 percent increase in loans for retail properties and a 114 percent increase in loans for multifamily properties.
The report said there was also a 54 percent increase in office property loans and a 34 percent increase in industrial property loans.
ForSaleBYOwner.com Founder Sells Home- Using a Broker
From Inman News Blog
The Wall Street Journal has reported that ForSaleBYOwner.com founder Colby Sambrotto has sold his Manhattan condo with a broker after failing for 6 months as a For Sale by Owner.
Here's the best part: The broker got him $150,000 more than he was asking when he was selling on his own. So much for saving on commission- he netted more even after the commission!
The story is that Sambrotto went for 6 months selling "By owner" on the Internet, online ads, and the rest of the FSBO gig at an asking price of $2 million for his Chelsea condominium. He then gave up (as 90% of FSBOs will) and listed with Jesse Buckler of Bond New York, who took the unusual strategy of advising Sambrotto to raise his price by $150,000. Clearly, this is a move that only works if you know your market. The home is now closed for $2.15 million after going under contract in May.
Some have said that the brokers control the market in Manhattan so much that buyers seldom look online, and that is why FSBO failed and the broker succeeded.
Bull.
Manhattan buyers are as savvy as they get, and sites like StreetEasy, Trulia and ResidentialNYC get huge traffic for Manhattan. The truth is that a good broker knows how to sell real estate better, faster, for more money and with fewer headaches than a website developer.
It all goes to the old story about the plumber who is called in to fix a furnace and after tapping a few times on a specific pipe and getting the thing humming again, mails the owner a bill for $1000. Aghast, the owner objects, saying that he only tapped a pipe. He then got an itemized bill, $1 for tapping the pipe, $999 for knowing what pipe to tap. We are paid for what we know- not just what we do.
If you want a do it yourself project, build a go cart. For the largest transaction of your life, hire a good professional broker.
The Wall Street Journal has reported that ForSaleBYOwner.com founder Colby Sambrotto has sold his Manhattan condo with a broker after failing for 6 months as a For Sale by Owner.
Here's the best part: The broker got him $150,000 more than he was asking when he was selling on his own. So much for saving on commission- he netted more even after the commission!
The story is that Sambrotto went for 6 months selling "By owner" on the Internet, online ads, and the rest of the FSBO gig at an asking price of $2 million for his Chelsea condominium. He then gave up (as 90% of FSBOs will) and listed with Jesse Buckler of Bond New York, who took the unusual strategy of advising Sambrotto to raise his price by $150,000. Clearly, this is a move that only works if you know your market. The home is now closed for $2.15 million after going under contract in May.
Some have said that the brokers control the market in Manhattan so much that buyers seldom look online, and that is why FSBO failed and the broker succeeded.
Bull.
Manhattan buyers are as savvy as they get, and sites like StreetEasy, Trulia and ResidentialNYC get huge traffic for Manhattan. The truth is that a good broker knows how to sell real estate better, faster, for more money and with fewer headaches than a website developer.
It all goes to the old story about the plumber who is called in to fix a furnace and after tapping a few times on a specific pipe and getting the thing humming again, mails the owner a bill for $1000. Aghast, the owner objects, saying that he only tapped a pipe. He then got an itemized bill, $1 for tapping the pipe, $999 for knowing what pipe to tap. We are paid for what we know- not just what we do.
If you want a do it yourself project, build a go cart. For the largest transaction of your life, hire a good professional broker.
Mortgage rates fall below 4.5 percent
Denver Post
One upside of the uncertain economic situation is a dip in mortgage rates, which this week fell below 4.5 percent for 30-year fixed- rate home loans for the first time this year.
Local brokers say mortgage applications, including refinances, have picked up as rates have dropped more than a quarter-point since last week.
The national Mortgage Bankers Association said Wednesday that mortgage applications were up 7.1 percent last week as rates on Treasury bonds plummeted. Mortgage rates closely follow Treasury rates.
Refinancing activity, which makes up the majority of mortgage applications, was up 7.8 percent over the previous week, while purchase activity increased 5.1 percent.
MBA vice president of research and economics Michael Fratantoni attributed the decline to the debt- ceiling debate in Washington and economic data depicting "much- slower-than-anticipated economic growth."
"Refinance application volume increased, but even though 30-year mortgage rates are back below 4.5 percent, the refinance index is still almost 30 percent below last year's level," he said. "Factors such as negative equity and a weak job market continue to constrain borrowers."
Boulder mortgage banker Lou Barnes said rates on 30-year fixed home loans with no origination fees or discounts were as low as 4.375 percent, the lowest level since last fall.
A series of negative reports came out late last week and earlier this week, including a downward revision to economic-growth figures Friday, a report Monday indicating U.S. manufacturing barely grew in July and Tuesday's news that consumers cut spending in June.
The deepening European debt crisis also weighed on rates, Barnes said. Concerns are rising about whether euro-zone governments can support Italy and Spain, if necessary, as trading in those countries' debt this week pushed up their borrowing costs.
The Dow Jones industrial average rose 30 points Wednesday after ceding more than 800 points during the previous eight trading days.
On Friday, the federal government reports the July jobs and unemployment numbers. A strong report could send mortgage rates rising again, but a poor report could keep rates low for some time to come, Barnes said.
"All eyes will be on the jobs numbers," said Jerry Kaplan, vice president of capital markets at Cherry Creek Mortgage in Denver.
"There's more refinancing activity than there's been for most of the summer," Kaplan said. "Seventy- five percent of our business is purchase transactions, and there's good purchase activity. Prices have dropped low enough that people are taking advantage of some good bargains."
One upside of the uncertain economic situation is a dip in mortgage rates, which this week fell below 4.5 percent for 30-year fixed- rate home loans for the first time this year.
Local brokers say mortgage applications, including refinances, have picked up as rates have dropped more than a quarter-point since last week.
The national Mortgage Bankers Association said Wednesday that mortgage applications were up 7.1 percent last week as rates on Treasury bonds plummeted. Mortgage rates closely follow Treasury rates.
Refinancing activity, which makes up the majority of mortgage applications, was up 7.8 percent over the previous week, while purchase activity increased 5.1 percent.
MBA vice president of research and economics Michael Fratantoni attributed the decline to the debt- ceiling debate in Washington and economic data depicting "much- slower-than-anticipated economic growth."
"Refinance application volume increased, but even though 30-year mortgage rates are back below 4.5 percent, the refinance index is still almost 30 percent below last year's level," he said. "Factors such as negative equity and a weak job market continue to constrain borrowers."
Boulder mortgage banker Lou Barnes said rates on 30-year fixed home loans with no origination fees or discounts were as low as 4.375 percent, the lowest level since last fall.
A series of negative reports came out late last week and earlier this week, including a downward revision to economic-growth figures Friday, a report Monday indicating U.S. manufacturing barely grew in July and Tuesday's news that consumers cut spending in June.
The deepening European debt crisis also weighed on rates, Barnes said. Concerns are rising about whether euro-zone governments can support Italy and Spain, if necessary, as trading in those countries' debt this week pushed up their borrowing costs.
The Dow Jones industrial average rose 30 points Wednesday after ceding more than 800 points during the previous eight trading days.
On Friday, the federal government reports the July jobs and unemployment numbers. A strong report could send mortgage rates rising again, but a poor report could keep rates low for some time to come, Barnes said.
"All eyes will be on the jobs numbers," said Jerry Kaplan, vice president of capital markets at Cherry Creek Mortgage in Denver.
"There's more refinancing activity than there's been for most of the summer," Kaplan said. "Seventy- five percent of our business is purchase transactions, and there's good purchase activity. Prices have dropped low enough that people are taking advantage of some good bargains."
Wednesday, August 3, 2011
Cabela’s to sell Wheat Ridge site, look elsewhere for Denver-area location
Denver Business Journal
Nearly seven years after Cabela's Cabela's
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Follow this company Inc. announced plans for its first Denver-area store in Wheat Ridge, the outdoor-gear retailer said Thursday it plans to sell the site and look elsewhere.
Cabela's has been developing a smaller store format lately, and the sprawling Wheat Ridge site no longer fit its plans.
“As a company, we have shifted to our next-generation store format with an accompanying shift in real estate strategy,” Tommy Millner, CEO of the Sidney, Neb.-based chain, said in a statement. “We are sharpening our focus on serving our loyal customers and are reducing our involvement in the land development business. This change has influenced our strategic approach to the Front Range marketplace. We are looking at the Denver market in a fresh way.”
The company (NYSE: CAB) will “consider other Denver-area locations,” the statement said. It did not indicate a timetable for that process.
Cabela’s only Colorado store, in Grand Junction, opened in May 2010.
The site to be sold is at Interstate 70 and Colorado 58. Cabela’s bought the site in late 2004 for $3.5 million from Coors Brewing Co. Coors Brewing Co.
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Wheat Ridge City Manager Patrick Goff said Thursday while disappointed with the announcement, city officials are already in meetings with potential developers.
“I just got out of a meeting with a potential developer, where we set a 30 day schedule – so a plan may come together quickly,” Goff said.
One of the site anchors might be Wal-Mart, he said.
Cabela’s did do some site improvement work, including a tunnel under I-70, Goff said. That, coupled with improvements the Colorado Department of Transportation made to add a fly-over from Highway 58 to I-70, makes the land more attractive to potential developers.
Nearly seven years after Cabela's Cabela's
Latest from The Business Journals
Wheat Ridge moves ahead without Cabela's
Despite Cabela’s pullout, Wheat Ridge moving ahead with retail plans
The Law Co. to build Wichita Cabela’s
Follow this company Inc. announced plans for its first Denver-area store in Wheat Ridge, the outdoor-gear retailer said Thursday it plans to sell the site and look elsewhere.
Cabela's has been developing a smaller store format lately, and the sprawling Wheat Ridge site no longer fit its plans.
“As a company, we have shifted to our next-generation store format with an accompanying shift in real estate strategy,” Tommy Millner, CEO of the Sidney, Neb.-based chain, said in a statement. “We are sharpening our focus on serving our loyal customers and are reducing our involvement in the land development business. This change has influenced our strategic approach to the Front Range marketplace. We are looking at the Denver market in a fresh way.”
The company (NYSE: CAB) will “consider other Denver-area locations,” the statement said. It did not indicate a timetable for that process.
Cabela’s only Colorado store, in Grand Junction, opened in May 2010.
The site to be sold is at Interstate 70 and Colorado 58. Cabela’s bought the site in late 2004 for $3.5 million from Coors Brewing Co. Coors Brewing Co.
Latest from The Business Journals
MillerCoors taps 0M profit for 2Q
MillerCoors’ earnings rise; revenue flat
Coors launches plan to repurchase Class B shares
Follow this company
Wheat Ridge City Manager Patrick Goff said Thursday while disappointed with the announcement, city officials are already in meetings with potential developers.
“I just got out of a meeting with a potential developer, where we set a 30 day schedule – so a plan may come together quickly,” Goff said.
One of the site anchors might be Wal-Mart, he said.
Cabela’s did do some site improvement work, including a tunnel under I-70, Goff said. That, coupled with improvements the Colorado Department of Transportation made to add a fly-over from Highway 58 to I-70, makes the land more attractive to potential developers.
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