Monday, December 31, 2012

New home starts at the fastest pace since July 2008

Denver Post
12.21.12
 
WASHINGTON — U.S. builders started construction last month on the most homes and apartments since July 2008, more evidence that the housing recovery is gaining momentum.
The Commerce Department said Tuesday that builders broke ground on homes in October at a seasonally adjusted annual rate of 894,000. That's a 3.6 percent gain from September.
Single-family home construction dipped 0.2 percent to an annual rate of 594,000, down from a four-year high in the previous month. Apartment construction, which is more volatile from month to month, rose 10 percent to an annual rate of 285,000.
Applications for building permits, a sign of future construction, fell 2.7 percent to 866,000, after jumping 12 percent in September to a four-year high. Still, permit applications to build single-family homes rose to their highest level since July 2008.
"The overwhelming trend here is a housing market that has clearly shifted into recovery mode," Robert Kavcic, an economist at BMO Capital Markets, said in a note to clients.
Housing starts are 87 percent above the annual rate of 478,000 in April 2009, the recession low. That's still short of the 1.5 million annual rate considered healthy.
Hurricane Sandy had minimal impact on the October figures, the government said. It could delay some construction in November. Still, residential construction activity in the region should get a boost soon after builders begin replacing homes destroyed by the storm.

Tax-lien investing is a game even hedge funds can like

Denver Post
12.30.12
 
Local hedge funds and equity investment firms — some run by well known stock-pickers — are buying delinquent property-tax bills at county auctions as a means of landing stable returns in a tight market.
The trend has been happening nationally for about five years but is just now settling into Colorado. Oft-overlooked property-tax liens are becoming a bigger part of portfolios managed by large firms, rather than just investments for small-time investors and retirees.
As a result, competition to purchase the liens has gotten fierce in Colorado. Profit margins — the difference between what a buyer pays to acquire the lien and the interest they can collect on it from the property owner — are at the lowest levels in at least a dozen years, according to data reviewed by The Denver Post.
"Interest rates are down, and funds are looking for yields on secure investments, and the tax lien is like the security of bonds," said Wyatt Yates, vice president of investment firm Farrell-Roeh Group in Littleton, which years ago saw value in tax-lien investing.
"As more institutional buyers come into the market, the competition is driving them into other states, and they're just now coming to Colorado," said Yates, who runs the firm's tax-lien investment arm.
Investment funds have been criticized for profiteering on the backs of the distressed through their tax-lien purchases. In theory, if the funds were to take possession of all their properties under lien, they would be one of the area's largest owners of residential and commercial properties.
But few properties in Colorado are actually deeded over because of nonpayment of a lien, and large investors make no more money than others who buy them.
The Post reviewed auction data in Denver, Arapahoe and Adams counties, and also reviewed historical data covering several years for Denver, the most readily available.
The biggest buyer the past two years is a subsidiary of Denver-based Arrowpoint Asset Management, a $1.7 billion hedge fund owned by David Corkins and two other former fund managers who worked with him at Janus.
In the past two years, its AP PTL bought up 886 Denver property tax liens — nearly a quarter of all those for sale, records show.
And in 2012, AP PTL purchased 789 tax liens totaling $2.14 million in Denver, Arapahoe and Adams counties, auction records show, the most of any other buyer for those areas combined.
Corkins — who managed the $12 billion Janus Fund — and his partners, Karen Reidy and Minyoung Sohn, did not return calls for this story.
The buyer with the next highest total — and a new name to Colorado tax-lien auctions — is an unidentified New York-based investment company operating under the name Cheswold (TL), records show. Its purchases are managed by American Tax Funding in Florida, one of the nation's biggest tax-lien investment companies.
Efforts to reach Cheswold and ATF were unsuccessful.
Yields on tax liens aren't as high as typically expected from a hedge fund's investments, but they carry less risk.
"On a risk-adjusted basis, tax-lien portfolios provide higher yields than other fixed-asset alternatives," said Brad Westover, executive director of the National Tax Lien Association. "It's a portfolio that if purchased correctly will generally have higher returns that are better than CDs or other vehicles."
Delinquent property tax bills are auctioned each year in 28 states, where buyers pay the bill in return for a fee, usually a percentage set by law, that the property owner is required to pay. Although rare, an investor can foreclose if the bill and fee remain unpaid for a certain period of time — three years in Colorado.
And those foreclosures are free-and-clear of any mortgage or bank lien that might be on the property.
Governments that are owed the taxes don't lose because buyers pay the whole bill shortly after the auction, which usually occurs each fall.
"Tax liens are the perfect hedge, with a predictable interest rate that's not at all impacted by the mechanizations of Wall Street," said Howard Liggett, president of Distressed Real Estate Consulting Services, a Florida firm that services tax lien purchases for hedge funds.
"It's a performance curve that's very predictable, and single-family residence liens have a high redemption rate of about 75 percent in the first two years," he said.
With a three-year redemption period — the time given to property owners to either pay the bill and interest or lose it to a tax-lien foreclosure — "an investor doesn't need to sit long to get their money," Liggett said.
In Colorado, buyers can claim ownership of a property from three years and up to 15 years after buying the lien if the property owner has not paid it back — and are entitled to interest for each year. In Denver, there have been just 56 deeds given on a tax lien, called a treasurer's deed, in the past dozen years, available records show.
The objective, Liggett said, typically isn't to acquire the property — a rarity in Colorado — but to earn the interest.
"There's really no down side," he said. "And the up side for communities is they get their tax dollars to fund infrastructure demands and basic services that are even for those who didn't pay."
Yates at Farrell-Roeh said his firm has purchased more than 20,000 tax liens over the past seven years — a $75 million investment — and has acquired fewer than 100 properties.
Denver property owners since 2006 on average have redeemed a tax lien within nine months of the auction. A spokeswoman at Wells Fargo in Denver said the bank is likely to pay off a lienholder in order to protect its interest in the property from being lost to a treasurer's deed.
"Margins are definitely shrinking because there's more money chasing not enough product," Westover said. "With a lot more folks interested in investing in this space, more than ever before, competition is heated."
That's not to say some investors aren't looking for a property deal — but they compete with funds seeking only returns.
"They're chasing yields, and that's a percentage that's way better than they'll get elsewhere," said real estate attorney Jerrold Spaeth, who last year co-founded MDT Investments for tax-lien buying.
MDT last year purchased 72 tax liens in Denver, records show. This year it was only 12.
"We were really surprised," Spaeth said, not relenting to a challenge. "There's only so much maneuvering the monsters can do, and us little guys have to outsmart them."
 
Denver tax lien sales
 
Though the number of property tax liens sold at auction has dropped steadily the past four years, the amount buyers are willing to pay Denver for those liens, known as the premium, has gone up. Here's a look at Denver sales since 2008.
How to invest in tax liens
Buying a delinquent property-tax lien isn't tough. Buying the right one is.
"It's not very difficult to go into this on a small scale," said Wyatt Yates, vice president at Farrell-Roeh Group in Littleton.
"If you're retired and in your spare time, it's not too bad," he said. "But like anything, you have to do your homework or you could get caught losing your money. A lot of people try it and aren't around in a couple years."
The devil, as it's said, is in the details and knowing how Colorado's tax-lien-auction process works.
First, don't do it with the expectation to get a property at fire-sale prices. It hardly ever happens, and when it does, the properties are often junk.
Several Colorado counties contract with RealAuction.com, a Florida company, to run the lien sale. Bidders can register and must have a funded account to pay for any winning bids.
Other county treasurers run the sales at their offices, much like a regular auction.
Bidders offer a dollar amount, called a premium, that they're willing to pay for the right to collect a lien. If successful, they will pay the county taxing body the value of the lien as well as the bid amount.
By law, winning bidders can collect a statutory annual interest rate — this year it was 10 percent.
In Denver, the average time for a property owner to redeem a tax bill is about nine months. That means buyers can likely bid as much as eight months of interest and still make a profit that first year.
Of course, if a property owner pays the lien just after the sale, as often happens, the bidder loses money.
Winning bidders can apply for a treasurer's deed — basically foreclosing on the property — if a lien remains unpaid after three years. Lienholders can foreclose any time up to 15 years after the original auction and still collect interest on the lien.

Thursday, December 27, 2012

Largest Private Landowner in the US - Liberty Media's John Malone buys castle and 427-acre estate in Ireland

Denver Post
12.21.2012



From tourismresources.ie

Humewood is Ireland's finest Victorian Mansion, set in an estate of 450 acres and just over an hour (45 miles) from the centre of Dublin. It was built in 1867-70 for Rt Hon W W F Hume Dick, MP. The combination of stepped gables, battered buttresses, chimneystacks and spires form an enchanting picture against the beautiful mountain scenery of County Wicklow. The present owner has refurbished the Castle to an extremely high standard of decor and comfort and since its restoration it has provided a luxurious and discrete hideaway for many internationally famous, actors, politicians and businessmen.

Accommodation consists of 14 luxury bedrooms each decorated in an individual style, reflecting the warmth of Italy, the romance of France, the Mystery of China.... 12 double bedrooms, 2 single rooms, 12 with en suite bathrooms. and 1 other bathroom. A 2 bedroomed lodge is also available.

Living areas: Drawing room, Morning room, Library, Dining room, Banqueting Hall, Ballroom, Billiard room, Communications room, Kitchens and utility quarters.

Facilities: Included in price - Breakfast, daily cleaning, heat and electricity, firewood.
Additional staff, catering for lunch & dinner, secretarial services, phone & fax, shooting, horses, and other services can be provided at cost.

The ballroom accommodates up to 80 for dining, and up to 120 for cocktails.

Denver Post
12.21.2012

Cable and media mogul John Malone, chairman of Douglas County-based Liberty Media and the largest landowner in the United States, has purchased a castle and 427-acre estate in Ireland, according to the Irish Times
The newspaper said Malone paid 7.23 million euros, or about $9.5 million, for Humewood Castle in County Wicklow, about 40 miles south of Dublin.
The Times said Malone has plans to refurbish the property, which in 2006 was sold for 25 million euros by German businesswoman Renata Coleman to Galway developer John Lally's Lalco Holdings. At the time, it was the most expensive country-house sale in Ireland.
Lalco had planned a $330 million luxury golf development for Humewood, but the plan was abandoned in the economic downturn. It recently was listed for 8 million euros.
The 38,000-square-foot main residence — described as a Gothic-fantasy mansion — has 15 large bedrooms with attached bathrooms, a ballroom, a minstrels' gallery, a fairy-tale tower, a billiards room, a smoking room and a wine cellar.
The grounds feature parkland, woods, lakes and stables, along with three staff cottages and another three gate lodges. The mansion was built in 1867 and has been the location for at least three movies.
Malone, 71, has family roots in Cork. Born in Connecticut, he has a net worth of $5.6 billion, according to Forbes.
In Ireland, Malone's Liberty Global owns cable-TV and broadband provider UPC and has invested more than $1 billion in that market.
In 2011, Malone bought 1.2 million acres of timberland in Maine and New Hampshire to surpass fellow media magnate Ted Turner as the largest private landowner in the U.S.
The 2012 Land Report says Malone owns 2.2 million acres of land — the equivalent of two Delawares. Most of his land is in Maine, New Hampshire, Colorado, New Mexico and Wyoming. One of his crown jewels is the Bell Ranch, a 290,000-acre cattle kingdom in New Mexico.

US mortgage rates decline to near record lows

Denver Post
12.27.2012

WASHINGTON—The average rate on the U.S. 30-year fixed mortgage last week dipped closer to the lowest on record, a trend that is making home buying more affordable and also enabling more Americans to refinance their loans.
Mortgage buyer Freddie Mac says the average rate on a 30-year loan declined to 3.35 percent from 3.37 percent last week. That's not far from the 3.31 percent rate of about a month ago, the lowest on records dating to 1971. The average on the 15-year fixed mortgage was unchanged at 2.65 percent. The record low is 2.63 percent. The 30-year fixed mortgage rate averaged 3.66 percent this year, Freddie Mac said, the lowest annual average in 65 years. Frank Nothaft, chief economist at Freddie Mac, said the average 30-year rate has fallen 0.6 percentage points this year. That would save a homeowner about $98,000 in interest payments over the life of a $200,000 loan, he said. The Federal Reserve is purchasing about $85 billion each month in Treasury bonds and mortgage-backed securities in an effort to push down long-term interest rates. In a separate report, the Commerce Department said that sales of new homes jumped 4.4 percent in November to a seasonally adjusted annual rate of 377,000. That is the fastest pace in more than two and a half years and the latest sign the housing recovery is sustainable. Low mortgage rates and steady hiring gains have encouraged more people to buy homes. Home owners may also put their homes up for sale if they feel confident they can sell at a good price. To calculate average mortgage rates, Freddie Mac surveys lenders across the country on Monday through Wednesday of each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount. The average fee for 30-year loans was 0.7 point, unchanged from last week. The fee for 15-year loans was also unchanged at 0.7 point. The average rate on a five-year adjustable-rate mortgage ticked down to 2.70 percent from 2.71 percent last week. The fee was also unchanged at 0.7 point. The average rate on a one-year adjustable-rate mortgage rose to 2.56 percent from 2.52 percent. The fee for one-year adjustable-rate loans rose to 0.5 point from 0.4 point.

 

Tuesday, December 11, 2012

104 Year Old Barn on an Island Converted to a Home-Unique Property

From trulia.com

This Bainbridge Island, WA barn was built 104 years ago and was used as a dairy farm before being converted into a home. It retains its barn shape with soaring, cathedral ceilings with exposed beams and rough-hewn floors. Rolling barn doors serve as shutters to two bedrooms and one original wall reveals the original penciled shopping list that includes 2,100 pounds of seeds. Sixteen windows in the open living area draw passive solar heat and natural light.
 
 




The Best Times to Buy or Sell a House

business.time.com
October 2012

The housing market, a reliable bellwether of the economy, seems to be bouncing back.

Many of the nation’s largest home builders surprised analysts by reporting a profit in the quarter that just ended. Home sales continue to rise nationwide, compared with 2011, and home prices also are up. Prices rose 4.6% in August compared with a year ago — the largest year-over-year increase in more than six years.

All of this good news has been widely reported, so many Americans are thinking more about wading back into the real estate market, both as buyers and as sellers. But how many people know there are best times to buy and sell houses?

Here are some timing tips from real estate agents that can save home buyers and sellers a lot of money:

The best month to make an offer on a house is January. Fewer buyers are willing to house-hunt during cold, nasty weather, so there’s less competition and few, if any, bidding wars. Sellers also tend to be more motivated than they will be in the spring, when there are more buyers. Why? They may have just received their credit card bills that reflect Christmas spending and may be feeling financially insecure. And their decision to try to sell their houses in the winter means they’re willing to risk listing during a time of the year when properties tend not show particularly well.

The best day of the month to make an offer on a house is the first Tuesday. Why early in the month? Because the homeowner just wrote a mortgage check for a house he no longer wants – or needs to sell — and he doesn’t want to write another one. Why Tuesday? Because by Tuesday he’s starting to worry that he won’t get any offers from house hunters who saw the house the weekend before.

The best time of the year to sell a house is the spring. Buyers come out of the woodwork during the spring, and with tax refund checks in the bank, spring buyers more often pay full price. In fact, sales peak in the spring, helping to explain why about 60% of those who move do so in the summer.

Tip within a tip: Don’t price your house with a zero at the end. Studies show that people perceive a precise price, such as $282,284, as lower than rounded ones, such as $280,000, even when the rounded prices are actually lower. Real-life sales show that one zero at the end of an asking price lowers the final sale price by .72% and two zeros lower it by .73%. That may not sound like much, but it can add up to thousands of dollars.

The best day of the week to list your house for sale is Thursday. This is more true during a sellers market, but if you list your house for sale on a Thursday, it will be available right away for weekend showings and by Saturday — the most important day of the real-estate week — your house will have shown only two days. That’s important because the fewer days on market, the better chance the home will attract a full-price offer. Even if your house doesn’t sell by the next Saturday, it will still show only nine days on market, benefiting from the psychological advantage of a single-digit number.

The best time to stop renting and buy a house is when it costs less to buy than to rent. Makes sense, but how do you figure that out? Find two similar houses – one for sale and one for rent – and divide the asking price by the annual rent. The difference is called the rent ratio. During the 1970s, 1980s and 1990s, the nationwide rent ratio stayed between 10 and 14, then rose to nearly 19 in 2006, when the housing market topped out. (The rent ratio neared 35 in San Francisco and San Jose in 2006.) A rent ratio of 20 or more usually means that it costs considerably more to own than rent after you factor in the mortgage, taxes, insurance, repairs and other expenses. It makes financial sense to buy when the rent ratio is a lot closer to 10 than to 20.

Shopping for a Home in Winter

From realtor.com

A strategy for bargain hunters.

If you've been thinking about buying a new home, winter is the time to start getting serious. Here are a few reasons to brave the cold and go on a house hunt:
The winter season has fewer units on the market, and sellers tend to need to move from their property. You can use that to your advantage to get a favorable deal.
Winter has fewer buyers in the market. Looking for a home in the winter can be inconvenient, and people are less likely to move. Families also tend to be on a September to June cycle because they are unwilling to move their children to a new town in the middle of the school year. Fewer buyers means less competition.
Lenders also usually have fewer loans to process and less paperwork to deal with (though this can change quickly if rates fluctuate). With lenders less hassled, you can expect a smoother process to get approved for a mortgage. But, as reported in Bankrate.com, there are exceptions to this rule, most notably in warmer parts of the country (especially Florida), ski towns, and in parts of the country where demand is so strong that it will not slacken during the winter months.
Finally, as all savvy shoppers know, after the holiday season comes the season of bargain opportunities. This includes houses, as well.

Top 15 Ways to Sell Your Home this Spring

From about.com

Spring is the optimum time to sell a home. Regardless of whether it's a buyer's market or a seller's market, inventory almost always rises in the spring. Why? Because the largest number of buyers are actively searching for a new home during the months of April, May and June.
Tip: If your home has been languishing on the market since the holidays, take it off the market. Give it a chance to "cool down" for a few weeks before putting it back on the market. Nobody is going to look at your home in the spring if the DOM show it's been on the market for several months. Buyers gravitate toward fresh, new listings!
Here are 15 things you can do to improve the odds that your home will stand out among the sea of new listings flooding the spring-time real estate market:

1) Wash windows inside and out / polish all mirrors

Sparkle is free, and sparkle sells homes. A potential buyer may not realize why your home seems so inviting but will feel drawn to it if the windows are spotless and your mirrors reflect sunlight. Cleaning is the first step to preparing your home for sale

2) Rake the yard / trim back bushes

Clean out dead leaves and debris in your lawn. Don't let overgrown vegetation block the windows or path to the entrance. Cutting bushes and tree limbs will let the sun inside and showcase the exterior of your home.

3) Mow diagonally and edge lawn along driveway / sidewalks

Artfully manicured lawns are edged and tell buyers you pay attention to small details. Diagonally mowed lawns make your yard appear larger.

4) Transplant tulips and daffodils or buy flowers in containers

Yellow flowers stimulate buying urges. After a long winter, everybody is anxious to see the first signs of spring. Yellow tulips and daffodils induce feelings of happiness and contentment. Arrange containers in groups of three or five near the entrance.

5) Clean drapes, curtains & blinds and open every window

Send your window coverings to the dry cleaners or wash, dry and press. Toss blinds into a soapy bathtub for a quick wash. Get rid of all accumulated dust and spider webs. Crisp linens and a spring-time breeze through the windows invites the season inside.

6) Set out fresh-smelling flowers such as just-clipped lilac branches or peonies

Why not flatter your neighbors and ask if you can borrow flowers from their yards? Natural scents are more appealing than artificial and trigger fewer allergies among those susceptible. Peony vases are designed to hold peonies upright, but wash the flowers first to avoid carrying ants inside. Clever home staging brings color and fragrance indoors.

7) Polish floors to a high gloss

Your hardwood floors should be refinished, if necessary. Make your ceramic and linoleum floors twinkle and shine. Bleach dull grout. Thoroughly clean all area rugs.

8) Utilize towels, throws, pillows in light colors – yellows, pinks, pale blues, lavenders

Even if it means replacing items, towels, linens, throws and sofa pillows are inexpensive accents you can buy. In soft spring colors, they will light up a room. Layer towels on bathroom towel racks and place rolled wash cloths on the counters in a fashionable pyramid.

9) Offer an outside mat for cleaning shoes & put umbrella stand at entrance

No matter where you live, spring weather is often unpredictable. In some states, it can be 72 degrees one day and snowing the next. If it's raining, give buyers a place to stash umbrellas and wipe their feet before entering your home. Some sellers lay down plastic runners across floors for protection, but that tends to ruin the effect of a glittering polish job.

10) Buy brightly colored helium balloons

Stationery and party-supply stores sell helium balloons for about a dollar each. So, there's no reason not to pick up a couple dozen balloons to tie to your open house signs. Balloons build excitement and will get your home noticed by home shoppers.

11) Set out four-color flyers & financing options

Don't skimp on your marketing materials. You want home buyers to select your flyer among the dozens they pick up. Color sells better than black and white. Show home buyers how easily they can afford to buy your home by giving them two or three financing options. The first thing on buyer's minds when considering a home purchase is the monthly mortgage payment. Don't make them guess.

12) Use a color photo for display advertising

Spend a little more on newspaper and online advertising by including a color photograph in your ad. Remember: a picture is worth a 1,000 words. Look through your photo galleries for a seasonal photograph that flaunts your home to its best advantage.

13) Mail four-color postcards with UV coating

Call a local title company to obtain a free direct-mail list of your surrounding neighbors. Print four-color oversized postcards and include a UV coating to give the marketing oomph. Use first-class postage.

14) Fill sink with ice to chill bottled water for guests

Put a couple dozen bottles of water in a sink of ice for buyers. You can also tape labels to the bottles, printed from your computer, with your phone number, a photograph and address of your home.

15) Set out treats, individually wrapped in cellophane & tied w/ribbon

Touring homes makes buyers hungry. Give them a snack. It will give buyers an opportunity to linger in your kitchen and marvel at its elegant appointments, which might otherwise be overlooked.

10 ways to winterize your home — now

From realestate.msn.com

So you've pulled your sweaters out of mothballs and found your mittens at the bottom of the coat closet. But what about your house -- is it prepared for the cold months ahead?
You'll be a lot less comfortable in the coming months if you haven't girded Home Sweet Home for Old Man Winter.
With the help of several experts, we've boiled down your autumn to-do list to 10 easy tips:
1. Clean those gutters
Once the leaves fall, remove them and other debris from your home's gutters -- by hand, by scraper or spatula, and finally by a good hose rinse -- so that winter's rain and melting snow can drain. Clogged drains can form ice dams, in which water backs up, freezes and causes water to seep into the house, the Insurance Information Institute says.
As you're hosing out your gutters, look for leaks and misaligned pipes. Also, make sure the downspouts are carrying water away from the house's foundation, where it could cause flooding or other water damage.
"The rule of thumb is that water should be at least 10 feet away from the house," says Michael Broili, the director of the Well Home Program for the Phinney Neighborhood Association, a nationally recognized neighborhood group in Seattle.
2. Block those leaks
One of the best ways to winterize your home is to simply block obvious leaks around your house, both inside and out, experts say. The average American home has leaks that amount to a nine-square-foot hole in the wall, according to EarthWorks Group.
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First, find the leaks: On a breezy day, walk around inside holding a lit incense stick to the most common drafty areas: recessed lighting, window and door frames, electrical outlets.
Then, buy door sweeps to close spaces under exterior doors, and caulk or apply tacky rope caulk to those drafty spots, says Danny Lipford, host of the nationally syndicated TV show "Today's Homeowner." Outlet gaskets can easily be installed in electrical outlets that share a home's outer walls, where cold air often enters.
Outside, seal leaks with weather-resistant caulk. For brick areas, use masonry sealer, which will better stand up to freezing and thawing. "Even if it's a small crack, it's worth sealing up," Lipford says. "It also discourages any insects from entering your home."
3. Insulate yourself
"Another thing that does cost a little money -- but boy, you do get the money back quick -- is adding insulation to the existing insulation in the attic," says Lipford. "Regardless of the climate conditions you live in, in the (U.S.) you need a minimum of 12 inches of insulation in your attic."
Don't clutter your brain with R-values or measuring tape, though. Here's Lipford's rule of thumb on whether you need to add insulation: "If you go into the attic and you can see the ceiling joists you know you don't have enough, because a ceiling joist is at most 10 or 11 inches."
A related tip: If you're layering insulation atop other insulation, don't use the kind that has "kraft face" finish (i.e., a paper backing). It acts as a vapor barrier, Lipford explains, and therefore can cause moisture problems in the insulation.
4. Check the furnace
First, turn your furnace on now, to make sure it's even working, before the coldest weather descends. A strong, odd, short-lasting smell is natural when firing up the furnace in the autumn; simply open windows to dissipate it. But if the smell lasts a long time, shut down the furnace and call a professional.
It's a good idea to have furnaces cleaned and tuned annually. Costs will often run about $100-$125. An inspector should do the following, among other things:
Throughout the winter you should change the furnace filters regularly (check them monthly). A dirty filter impedes air flow, reduces efficiency and could even cause a fire in an extreme case. Toss out the dirty fiberglass filters; reusable electrostatic or electronic filters can be washed.
5. Get your ducts in a row
According to the U.S. Department of Energy, a home with central heating can lose up to 60% of its heated air before that air reaches the vents if ductwork is not well-connected and insulated, or if it must travel through unheated spaces. That's a huge amount of wasted money, not to mention a chilly house.
What's your home worth?
Ducts aren't always easy to see, but you can often find them exposed in the attic, the basement and crawlspaces. Repair places where pipes are pinched, which impedes flow of heated air to the house, and fix gaps with a metal-backed tape (duct tape actually doesn't stand up to the job over time).
Ducts also should be vacuumed once every few years, to clean out the abundant dust, animal hair and other gunk that can gather in them and cause respiratory problems.
6. Face your windows
Now, of course, is the time to take down the window screens and put up storm windows, which provide an extra layer of protection and warmth for the home. Storm windows are particularly helpful if you have old, single-pane glass windows. But if you don't have storm windows, and your windows are leaky or drafty, "They need to be updated to a more efficient window," says Lipford.
Of course, windows are pricey. Budget to replace them a few at a time, and in the meantime, buy a window insulator kit, Lipford and Broili recommend. Basically, the kit is plastic sheeting that's affixed to a window’s interior with double-stick tape. A hair dryer is then used to shrink-wrap the sheeting onto the window. (It can be removed in the spring.) "It's temporary and it's not pretty, but it's inexpensive (about $4 a window) and it's extremely effective," says Lipford.
7. Don't forget the chimney
Ideally, spring is the time to think about your chimney, because "chimney sweeps are going crazy right now, as you might have guessed," says Ashley Eldridge, director of education for the Chimney Safety Institute of America.
That said, don't put off your chimney needs before using your fireplace, Eldridge advises. "A common myth is that a chimney needs to be swept every year," says Eldridge. Not true. But a chimney should at least be inspected before use each year, he adds. "I've seen tennis balls and ducks in chimneys," he says.
Ask for a Level 1 inspection, in which the professional examines the readily accessible portions of the chimney, Eldridge says. "Most certified chimney sweeps include a Level 1 service with a sweep," he adds.
Woodstoves are a different beast, however, cautions Eldridge. They should be swept more than once a year. A general rule of thumb is that a cleaning should be performed for every ¼ inch of creosote, "anywhere that it's found." Why? "If it's ash, then it's primarily lye -- the same stuff that was once used to make soap, and it's very acidic." It can cause mortar and the metal damper to rot, Eldridge says.
Another tip: Buy a protective cap for your chimney, with a screen, advises Eldridge. "It's probably the single easiest protection" because it keeps out foreign objects (birds, tennis balls) as well as rain that can mix with the ash and eat away at the fireplace's walls. He advises buying based on durability, not appearance.
One other reminder: To keep out cold air, fireplace owners should keep their chimney's damper closed when the fireplace isn't in use. And for the same reason, woodstove owners should have glass doors on their stoves, and keep them closed when the stove isn't in use.
8. Reverse that fan
"Reversing your ceiling fan is a small tip that people don't often think of," says Lipford. By reversing its direction from the summer operation, the fan will push warm air downward and force it to recirculate, keeping you more comfortable. (Here's how you know the fan is ready for winter: As you look up, the blades should be turning clockwise, says Lipford.)
9. Wrap those pipes
A burst pipe caused by a winter freeze is a nightmare. Prevent it before Jack Frost sets his grip: Before freezing nights hit, make certain that the water to your hose bibs is shut off inside your house (via a turnoff valve), and that the lines are drained, says Broili. In climes such as Portland, Ore., or Seattle, where freezing nights aren't commonplace, you can install Styrofoam cups with a screw attachment to help insulate spigots, says Broili.
Next, go looking for other pipes that aren't insulated, or that pass through unheated spaces -- pipes that run through crawlspaces, basements or garages. Wrap them with pre-molded foam rubber sleeves or fiberglass insulation, available at hardware stores. If you're really worried about a pipe freezing, you can first wrap it with heating tape, which is basically an electrical cord that emits heat.
10. Finally, check those alarms
This is a great time to check the operation -- and change the batteries -- on your home's smoke detectors. Detectors should be replaced every 10 years, fire officials say. Test them -- older ones in particular -- with a small bit of actual smoke, and not just by pressing the "test" button. Check to see that your fire extinguisher is still where it should be, and still works.
Also, invest in a carbon-monoxide detector; every home should have at least one.

Stapleton builds another community, ponders future of control tower

Denver Post
11.30.2012

Stapleton is beginning the build-out of a new community, Conservatory Green, while it continues to study what to do with the old airport control tower.
Conservatory Green is the first of several future developments north of interstate 70 that ultimately will double the size of Stapleton— already the largest neighborhood in the city of Denver.
Stapleton, built on the site of the city's former airport, includes 4,500 homes and 14,000 residents, spread over about 2,300 acres, including 700 acres of parks and open space. The developer marked the 10th anniversary of the first residents moving to the neighborhood in July.
Grading and infrastructure work are underway at Conservatory Green, which will have about 500 homes and be located north of the Shops at Northfield retail area. Model homes will be available in the spring of 2013, with homes likely ready for occupancy in late summer or early fall.
Further to the north are Dick's Sporting Goods Park and the Rocky Mountain Arsenal National Wildlife Refuge.
Stapleton International Airport was the city's primary airport from 1929 to 1995. When Denver International Airport opened on a vast plot of land in Adams County, it left behind a maze of abandoned runways, a terminal and five concourses, hangars, warehouses and travel-dependent hotels — and a challenge for redevelopment.
Civic leaders produced a master plan for the 4,700-acre site that emphasized a pedestrian-oriented design with nearly a third of the site reserved for parks and open space.
Tenants were sought for the terminal and concourses, but the buildings proved unsuitable for other uses. After a 1997 hailstorm punched about 4,000 holes in the roof, the buildings were torn down. The air traffic control tower, however, has remained standing.
"People see the control tower as a landmark for their neighborhood," Forest City spokesman Tom Gleason said. "There's a lot of interest in seeing it preserved."
Stapleton's Master Community Association is studying what to do with the 12-story tower and the three-story building at its base that formerly housed offices of the Federal Aviation Administration.
The tower likely would need to be brought up to code, since its existing elevator goes only to the 10th floor, with the top two floors accessible only via a winding staircase.
Proposals include converting the structure into a community arts and cultural center.
"We're still seeking input from the community," said Denver City Councilman Chris Herndon, in whose district Stapleton resides. "We hope to use a combination of the two structures, and we may have a resolution by the end of the year.
"I'd be really disappointed if we can't come up with a good idea for the tower. The location is ideal. It's iconic. You see it along the skyline. And the view from the top is incomparable."

Lewis: Always the low price on a mortgage

Denver Post
12.4.2012

Too bad Wal-Mart doesn't offer mortgages.
If you insist on getting a mortgage from a big-box retailer, you have to go to Costco, which began offering them last April in a partnership with a New Jersey community bank, First Choice Bank.
Nevertheless, one out of three people would consider taking out a mortgage at Wal-Mart, according to a survey released Monday by Carlisle & Gallagher Consulting Group.
The Charlotte, N.C., management and technology consulting firm serves five of the nation's top-eight mortgage originators and seven of the nation's top-ten financial institutions. Its survey points out a competitive threat that its clients potentially face from popular retailers.
"The average consumer goes into a bank a lot less often than a Costco or a Wal-Mart," said Doug Hautop, the firm's lending practice leader, in a telephone interview.
Wal-Mart offers an array of relatively simple financial services, including checking, credit cards, money transfers, and it will do your tax returns, too. Its Sam's Club warehouse stores even makes small business loans. But if Wal-Mart were to make it big in the mortgage lending business, the Earth might just tip on its axis.
Critics have long complained of Wal-Mart as a global distribution network for China. It's where Americans demanding "always the low price" send their money. China then buys U.S. Treasuries, pushing down interest rates for everything, including home loans. This helps make it possible for consumers to tap their home equity lines and go shopping yet again.
The fear is that if this cycle continues, indefinitely, China will end up with all the money, and we will end up with all the debt and a lot of cheap, plastic stuff we'll need to bury in a landfill. This fear may be a bit overstated. But anyone who thinks the mortgage lending bubble couldn't happen again isn't watching it already starting to happen again.
"Home equity lines of credit that fueled a spending spree during the U.S. property boom are back," according to a recent article by Bloomberg news.
The report cited numbers from Moody's Corp., showing that lending on Home Equity Lines of Credit, or Helocs, will rise 30 percent, to $79.6 billion in 2012, the highest since the 2008 financial crisis. Moody's expects this number will jump another 31 percent next year.
Interest rates are at all-time lows and even a sluggishly recovering housing market has left thousands of consumers with home equity to tap. So why not tap it all now and spend it for Christmas?
Cheap interest rates created the first bubble. Even lower interest rates could create the second.
In many markets, it is getting to be more expensive to rent a home than to buy one, a cash-flow spread that will entice more everyday people into the housing market as investors.
Consumers like the idea of Wal-Mart as a mortgage lender because they think the discounter can make mortgages cheaper and faster than banks, according to the C&G survey. Another place they would like to be able to get a mortgage — but, as yet, can't — is PayPal.
The last crisis made me want to scream, "Hey, where'd you get that lousy home mortgage? Kmart?" Maybe after the next crisis it won't be a joke.
Houtop said the kinds of mortgages retail lenders would make would be simple, and straight-forward, not the exotic varieties of stated-income loans and sneaky balloon notes that the banking industry continues cleaning up to this day.
Still, if the financial crisis taught us anything, it should be that shopping for a new home equity line should not be as easy as driving to Wal-Mart.
Consumers still don't get enough blame for the housing crisis that nearly brought America's economy to its knees. Brokers, lenders, Wall Street bankers, politicians, Fannie and Freddie--they rightly receive their share. And to be sure, what really tanked the market, was the trillions in troubled mortgage-backed securities and derivatives — not so much the billions in defaults from homeowners. But in the end, it is one long chain of fools that began with a home-buying public that now wants to shop for mortgages at Wal-Mart.
They scantly remember it was non-bank lenders — particularly Countrywide Financial — that made the most dubious loans and did the most damage. But according to the survey, 80 percent consumers would consider a mortgage from a non-bank.
Too many Americans apparently still cling to the discredited belief that a home's value can only go up. And that it's not just a place to live, it's a poker chip
According to the survey, 53 percent say a home is one's most important investment; 46 percent expect their home values to grow significantly over time; and only 4 percent believe their home value will decline over time.
It makes me want to hang a for sale sign on my house to see what I can get. Some consumers are just begging for another housing bubble, and they want Wal-Mart to help them blow it.

Mortgage-interest deduction may be cut in "fiscal cliff" negotiations

Denver Post
November 30, 2012

As Congress looks for new sources of revenue to deal with the looming "fiscal cliff," a popular ingredient of the American dream could be on the chopping block.
It's the mortgage-interest tax break, which allows taxpayers to cut their taxable income by the amount of interest they pay on their home loans.
Long seen as an untouchable "third rail" in Washington, D.C., the break is now on the table as the Obama administration and Republicans look for more tax revenue. While the real-estate industry argues that the break is essential to keep the housing market healthy, some economists are not convinced, and the deduction is a fat target because it primarily benefits high-income households and those who live in expensive housing markets.
"It's incredibly significant to me," said Satish Shenoy, who is shopping for a home in California's Silicon Valley for his young family. "The mortgage deduction is one big reason to buy a house, versus renting," he said.
Buying a home in the area will mean taking on a $600,000 to $700,000 mortgage, said Shenoy, who manages cloud-software sales for a Santa Clara, Calif.-based telecommunications company. At a combined state and federal tax rate of 30 percent, that could mean $6,000 to $7,000 the first year in tax savings.
That hefty tax break — multiplied by countless other homeowners across the U.S. — explains why any move to trim the deduction will spark an epic battle. Any major change is likely to be phased in over many years.

Denver-area home resales, prices reach pre-recession levels, Metrolist says

Denver Business Journal
December 2012

The amount of resale activity and price appreciation in metro Denver’s residential home market has rebounded to levels not seen since 2007, according to the latest monthly report from Metrolist Inc.
Buyers snapped up 3,692 homes in November, crushing November 2011 numbers by 21 percent for singe-family homes and 20 percent for condos. While home sales declined 10 percent from October, that’s normal for the seasonal slowdown.
“In the second half of this year, under-contracts and sales have been neck-and-neck,” Kirby Slunaker, president of Metrolist, said in a statement. “When you take the steadily dropping days on market figures into account and factor in the pace of under contracts to sales, we assume December to close out strong. This is good news for sellers in today’s housing market.”
The average sales price in November stood at $285,664, up 3 percent from October and up 13 percent year over year.
Average days on the market continued to drop from 2011 levels: 70 days as opposed to the 100-day average in November 2011. That average climbed by four days from October’s 66-day average.
“The buyer pent-up demand continues,” said analyst Gary Bauer, an independent Littleton-based broker and Metrolist board member. “This is the first month this year we’ve seen any kind of seasonal slowdown. I think the market will finish strong for the end of the year.”
Many buyers are scrambling to close deals before the federal “fiscal cliff” potentially hits Dec. 31, Bauer said.
“If we plummet off the end of the cliff, we’re going to see a dramatic reduction in market activity,” he said. “A lot of that is driven by the uncertainty, the possible loss of mortgage tax deductions and the loss of federal programs. All that together creates some concern.”
Other stats from Greenwood Village-based Metrolist Inc.’s latest MLS data and Bauer’s analysis:
• There were 8,847 homes available for sale last month in metro Denver, a 9 percent drop from October and 30 percent year-over-year dip. In looking at the inventory in November 2005, that’s a 60 percent drop. The closed dollar volume for November stood at $1 billion.
• 3,893 homes were placed under contract in November. That’s down 16 percent from the October under-contracts, but a 16 percent climb from November 2011.
• The month’s supply of for-sale homes ranges between 2 for condos and 2.38 for single-family homes.
• Year to date, there were 53,322 homes placed under contract and 42,899 homes closed with a total closing dollar volume of $11.96 billion.
“We continue to see double-digit growth for home sales throughout the metro Denver market,” Slunaker said. “Year to date, home sales are ahead of 2011 by 18 percent with almost 43,000 homes sales this year, which is comparable to 2008 sales activity.
“Compared with prior month-end figures for November, we hit an all-time low for inventory with less than 9,000 homes on the market this past month,” he said. “This, combined with sales volume that has climbed back up to November 2005 figures, should keep pricing stable. We’re seeing some remarkable activity in the metro Denver market this year.”
Metrolist Inc. of Greenwood Village is metro Denver’s multiple listing service provider, a database of home sales activity for real estate professionals.

Home prices rise 6.3% in Oct., marking highest yearly gain in 6 years

Denver Post
December 2012

WASHINGTON — A measure of U.S. home prices saw them rise 6.3 percent in October compared with a year ago, the largest yearly gain since July 2006. The jump adds to signs of a comeback in the once-battered housing market.
Core Logic also said Tuesday that prices declined 0.2 percent in October from September, the second drop after six straight monthly increases. The monthly figures are not seasonally adjusted. The real estate data provider says the decline reflects the end of the summer homebuying season.
Steady price increases are helping fuel a housing recovery. They encourage more homeowners to sell their homes. And they entice would-be buyers to purchase homes before prices rise further.
Home values are rising in more states and cities, according to the report. Prices increased in 45 states in October, up from 43 the previous month. The biggest increases were in Arizona, where prices rose 21.3 percent, and in Hawaii, where they were up 13.2 percent. The five states where prices declined were Illinois, Delaware, Rhode Island, New Jersey, and Alabama.
In 100 large metro areas, only 17 reported price declines. That's an improvement over September, when 21 reported declines.
Mortgage rates are near record lows, while rents in many cities are rising. That makes homebuying more affordable, pushing up demand.
And more people are looking to buy or rent a home after living with relatives or friends during and immediately after the Great Recession.

Tuesday, November 27, 2012

Tips for Pricing Your Home

good points to consider from Realtor.com

Tips for Pricing Your Home
  • Consider comparables. What have other homes in your neighborhood sold for recently? How do they compare to yours in terms of size, upkeep, and amenities?
  • Consider competition. How many other houses are for sale in your area? Are you competing against new homes?
  • Consider your contingencies. Do you have special concerns that would affect the price you’ll receive? For example, do you want to be able to move in four months?
  • Get an appraisal. For a few hundred dollars, a qualified appraiser can give you an estimate of your home’s value. Be sure to ask for a market-value appraisal. To locate appraisers in your area, contact your REALTOR® for some recommendations.
  • Ask a lender. Since most buyers will need a mortgage, it’s important that a home’s sale price be in line with a lender’s estimate of its value.
  • Be accurate. Studies show that homes priced more than 3 percent over the correct price take longer to sell.
  • Know what you’ll take. It’s critical to know what price you’ll accept before beginning a negotiation with a buyer.

10 Tips Every New Home Buyer Should Know

from HGTV

10 Tips Every New Home Buyer Should Know

The biggest investment many of us will make is buying a house, and mistakes can be costly. To help weed through the home-buying jungle, we've gathered the knowledge and strategies every home buyer should know before beginning the hunt.
 
Home Inspection

Living On A 100 Year Old Houseboat






From FairCompanies

Heather Wilcoxon grew up visiting the Hollywood sets of her actor parents, but at age 20 she left all that behind to move aboard a boat and for the past 4 decades has made her home on the San Francisco Bay.

“I'm so used to the water, I'm so used to living on a boat in a small space,” explains Wilcoxon. “I don't have huge payments, I’m not stressed out by a job, I make just enough money to pay for my lifestyle, I don't need a lot of money for a big house with 3 cars and 5 bedrooms and big payments, it's not what I'm interested in.”

Wilcoxon bought her current home, a turn-of-the-century vessel in 1986 and she’s been remodeling it ever since. The Delta Queen was once a cook house barge in the Sacramento River Delta, but in the seventies it earned a permanent berth in the San Francisco Bay where a collection of artists and boatworkers built a floating village.

Wilcoxon lives on about $12,000 a year, paying a small monthly fee to the cooperative for berth rights (which includes sewage and laundry). Her electric bills are only about $12 in the summer and $60 during the frosty winter months.

Her minimal expenses allow Wilcoxon to live as an artist. Her work has been shown in the American University Museum (Washington DC) and she’s represented in New York (Brenda Taylor Gallery) and San Francisco (Jack Fischer Gallery), but her most enduring work is her boat home itself.

“Everything I've painted I'm kind of crazy about that. Give me a brush and I’m dangerous”. The 400-square-foot Delta Queen is covered, inside and out, in color. It’s been given a personality by Wilcoxon that would be tough to achieve with a larger space.

“Living on a boat, it's simple. I like that it's simple. You can make whatever space you want yours, that's the magic of it.”

Wilcoxon's home has a built-in bed, closet and storage, her full bathroom (clawfoot tub included) and her enclosed deck with upright piano.

Consumer Confidence in US Hits 4 Year High

good to hear it's going in the right direction...

Newsweek
November 26, 2012

Consumer confidence rose in November to the highest level in more than four years, a sign U.S. household spending will keep growing.

The Conference Board’s confidence index climbed to 73.7, the highest since February 2008, from a revised 73.1 reading the prior month, figures from the New York-based private research group showed today. The median forecast of 75 economists surveyed by Bloomberg projected a reading of 73.

The report showed the share of Americans planning to buy a house rose to a record high, indicating improving property values and a job market recovery are making households more willing to make long-term commitments. Sustained gains in consumer spending, the biggest part of the economy, may help overcome concern over the fiscal cliff of tax increases and government spending cuts slated for early 2013.

“Confidence is holding up well,” said Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York, who projected the confidence measure would climb to 74. “Spending is going to continue to increase. This bodes well for the fourth quarter.”

Other reports today signaled business investment may rebound and home prices are climbing.

Demand for goods such as machinery and electronics climbed in October by the most in five months, the Commerce Department reported. Bookings for non-defense capital goods excluding aircraft, a proxy for future business investment, rose 1.7 percent last month, the most since May.

Home Values


Property values rose in the year ended September by the most since July 2010, according to data from S&P/Case-Shiller. The index of home prices in 20 cities climbed 3 percent from September 2011, after advancing 2 percent in the year to August.

The gain in confidence may have been restrained by a plunge in the Middle Atlantic region, the area covering New Jersey, New York and Pennsylvania that was most affected by superstorm Sandy. That area’s index plunged 14.6 points to a three-month low of 54.2. Seven of eight other regions saw confidence increase, the report showed, with the Mountain area being little changed.

Shares fell on concern about the budget negations in Washington. The Standard & Poor’s 500 Index dropped 0.4 percent to 1,401.24 at 10:38 a.m. in New York.

Home Sales


Consumers are benefiting as record-low mortgage rates drive a recovery in housing. Sales of previously owned homes unexpectedly climbed in October, and the median price rose 11.1 percent from a year earlier, according to the National Association of Realtors.

Estimates for consumer confidence ranged from 65 to 79.1 in the Bloomberg survey of 75 economists. The measure averaged 53.7 during the recession that ended in June 2009.

The Conference Board’s measure of present conditions was little changed at 56.6 this month from 56.7 in October. The gauge of expectations for the next six months rose to 85.1 from 84.

The share of consumers who said jobs are currently plentiful increased to 11.2 percent, the most since September 2008, from 10.4 percent. Those who said jobs are hard to get were little changed at 38.8 percent.

The percent of respondents expecting more jobs to become available in the next six months increased to 20.3, the highest since February 2011, from 19.7 the previous month.

Home-Buying Plans


The share planning to buy a house within the next six months jumped to 6.9 percent, the most in data going back to 1964. The previous all-time high was 5.5 percent.

Among other measures, the Thomson Reuters/University of Michigan consumer sentiment index climbed in November to a five- year high, while the Bloomberg Consumer Comfort Index last week hovered near the strongest point in seven months.

Thanksgiving Day openings and midnight deals at chains from Target Corp. (TGT) to Wal-Mart Stores Inc. (WMT) drew shoppers. Spending in stores and online rose 13 percent to $59.1 billion in the four days starting Nov. 22, the National Retail Federation reported. A year ago, sales advanced 16 percent over the holiday weekend.

Gap Inc. (GPS), the biggest U.S. specialty-apparel retailer, saw busy stores on Black Friday as customers responded to offers of $19 sweaters and $5 kids and baby graphic Ts from midnight to noon.

Encouraging Signs


“We’re encouraged by what we’re seeing out there,” Mark Breitbard, president of Gap’s North America division for its namesake brand, said in a telephone interview on Nov. 23.

Fuel prices close to the lowest level since mid-July are offering respite to budget-conscious households. The average cost of a gallon of regular gasoline at the pump has fallen 10 percent in the past two months to reach $3.42 on Nov. 26, according to AAA, the nation’s biggest motoring organization.

Business sentiment has been stagnating as the year-end deadline for automatic fiscal tightening approaches. Federal Reserve Chairman Ben S. Bernanke said last week that an agreement on ways to reduce long-term federal budget deficits could remove an impediment to growth, while failure to avoid the so-called fiscal cliff would pose a “substantial threat” to the recovery.

US home sales rise 2.1 percent in October

Denver Post
November 10, 2012

WASHINGTON—U.S. sales of previously occupied homes rose solidly in October, helped by improvement in the job market and record-low mortgage rates.
The increase along with a jump in homebuilder confidence this month suggests the housing market continues to recover. The National Association of Realtors said Monday that sales rose 2.1 percent to a seasonally adjusted annual rate of 4.79 million. That's up from 4.69 million in September, which was revised lower. The sales pace is roughly 11 percent higher than a year ago. But it remains below the more than 5.5 million that economists consider consistent with a healthy market. As the economy slowly recovers, more people have started looking to buy homes or rent apartments. Prices are steadily climbing, while mortgage rates have been low all year. At the same time, rents are rising, making the purchase of a single-family home or condominium more attractive. "Altogether, the report is encouraging," said Michael Gapen, an economist at Barclays Capital. "Our view is that housing is in a recovery phase," he added, though it will be restrained by limited credit and modest job gains. A separate report Monday showed confidence among homebuilders rose this month to its highest level in six and a half years. The increase was driven by strong demand for newly built homes and growing optimism about conditions next year. The National Association of Home Builders/Wells Fargo builder sentiment index increased to 46, up from 41 in October. Readings below 50 suggest negative sentiment about the housing market. The index last reached that level in April 2006. Still, the index has been trending higher since October 2011, when it stood at 17. The Realtors' group said Superstorm Sandy delayed some sales of previously occupied homes in the Northeast. Sales fell 1.7 percent there, the only region to show a decline. Those sales will likely be completed in future months, the group said. The median price for previously occupied homes increased 11.1 percent from a year ago to $178,600, the Realtors' said. A decline in the number of homes available for sale is helping push prices higher. There were only 2.14 million homes available for sale at the end of the month, the lowest supply in 10 years. It would take only 5.4 months to exhaust that supply at the current sales pace. That's the lowest sales-to-inventory ratio since February 2006. Prices are also benefiting from the mix of homes being sold. Sales of homes priced at $500,000 and above have jumped more than 40 percent in the past year. Sales of homes and condominiums that cost less than $100,000 fell 0.6 percent. There have been other positive signals from the housing market. Applications for mortgage loans to buy homes jumped 11 percent in the week ended Nov. 9, compared with a week earlier, the Mortgage Bankers' Association said last week. Purchase applications are up 22 percent in the past year. Foreclosures are slowing. The number of properties that began the foreclosure process in the first 10 months of the year fell 8 percent compared with the same period last year, RealtyTrac said last week. And builders broke ground on new homes and apartments at the fastest pace in more than four years in September. The jump could help boost the economy and hiring. Still, the market has a long way back to full health. Many potential home buyers cannot meet stricter lending standards or produce larger down payments required by banks. That can be a particular problem for first-time homebuyers. They accounted for 31 percent of sales in October, down slightly from September and below the 40 percent that is common in a healthy market. Federal Reserve Chairman Ben Bernanke said Thursday that banks' overly tight lending standards may be preventing sales and holding back the U.S. economy.

Tuesday, November 20, 2012

US new home starts jump to fastest pace in 4 years

Denver Post
11.20.2012

WASHINGTON—U.S. builders started construction last month on the most homes and apartments since July 2008, more evidence that the housing recovery is gaining momentum.
The Commerce Department said Tuesday that builders broke ground on homes in October at a seasonally adjusted annual rate of 894,000. That's a 3.6 percent gain from September. Single-family home construction dipped 0.2 percent to an annual rate of 594,000, down from a four-year high in the previous month. Apartment construction, which is more volatile from month to month, rose 10 percent to an annual rate of 285,000. Applications for building permits, a sign of future construction, fell 2.7 percent to 866,000, after jumping 12 percent in September to a four-year high. Still, permit applications to build single-family homes rose to their highest level since July 2008. "The overwhelming trend here is a housing market that has clearly shifted into recovery mode," Robert Kavcic, an economist at BMO Capital Markets, said in a note to clients. Housing starts are 87 percent above the annual rate of 478,000 in April 2009, the recession low. That's still short of the 1.5 million annual rate considered healthy. Superstorm Sandy had minimal impact on the October figures, the government said. It could delay some construction in November. Still, residential construction activity in region should get a boost soon after when builders begin replacing homes destroyed by the storm. The housing market has been making consistent gains this year, helping prop up an economy that's being squeezed by a global slowdown and looming spending cuts and tax increases. Builder confidence rose to its highest level in six and a half years, according to a survey by the National Association of Home Builders/Wells Fargo. Their index of builder sentiment rose to 46 this month, up from 41 in October. It was the highest reading since May 2006, just before the housing bubble burst. Readings below 50 signal negative sentiment about the housing market. The index has been rising since October 2011, when it was 17. It has surged 27 points in the past 12 months, the sharpest annual increase on record. Sales of previously occupied homes rose 2.1 percent to 4.79 million in October, the National Association of Realtors said. Sales are near their highest level in five years, excluding temporary spikes in 2009 and 2010 when a homebuyer tax credit boosted purchases. A key factor fueling the gains is a gradually improving economy, which has increased the number of people looking for homes. At the same time, fewer homes are available for sale. The low supply is helping push up prices. In addition, mortgage rates have hit all-time lows. And rents are rising, making the purchase of a single-family home or condominium more attractive. Though new homes represent less than 20 percent of the housing sales market, they have an outsize impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in tax revenue, according to data from the home builders group.
 

Mortgage delinquency rate drops in Colorado, nation

Denver Post
11.15.2012

Mortgage delinquencies on residential properties in Colorado dropped in the third quarter of the year, keeping the state with one of the lowest rates nationally, a national banking association reported Thursday.
Coupled with a delinquency rate of 5.04 percent, the number of foreclosures started in the quarter fell to 0.57 percent, and the number of loans in foreclosure — 1.66 percent — also dropped.
The delinquency rate had been 5.08 percent at the end of the second quarter, an increase of 0.29 percent.
Conversely, the delinquency rate for subprime adjustable rate mortgages in the state jumped by a half percent to 15.73 percent, and subprime home loans with a fixed rate increased to 14.81 percent, according to the Mortgage Bankers Association.
Nationally, the delinquency rate for mortgage loans on residential properties fell to 7.40 percent from 7.58 percent the previous quarter.
Colorado ranked 44th in delinquencies and 42nd in foreclosure starts, MBA reported. Mississippi ranked first in delinquencies at 13.1 percent of all residential mortgages.
The state had ranked 42nd in delinquencies at the end of the second quarter.

Monday, October 29, 2012

Pine Beetles Affect Prices in the Housing Market

Interesting snippet of info...

"New-home construction has picked up momentum in recent months after years of contraction. But the industry is facing a fresh challenge: building costs are going through the roof," says Robbie Whelan of the Wall Street Journal in today's article, "High Costs Bedevil Builders." The rise of construction costs is due to 3 main factors: labor, land, and lumber.

"Between 2007 and 2011, more than 2.1 million construction workers lost their jobs and many switched to jobs in other industries." Because of this, the amount of skilled construction labor has dwindled. With a surge of new construction projects, the trick is getting those experienced workers to come back to the work site.

"Land is also in short supply, at least in the places where consumers want to live, near jobs, and good schools." In the spring of 2001, an acre of land in a development known as The Bridges in Gilbert, AZ cost $77,763. Now, developers are paying between $126,00 and $150,000 per acre for the same land.

The cost of framing lumber has risen 21% in the last year. This is largely due to a supply problem. In a small sub-article, Whelan writes that, "the lumber harvest in British Columbia could decline 50% for the next half-century because of the pine beetle." These tiny beetles, as many Colorado residents are aware, eat through pine and kill the trees. The current infestation started in Colorado in the late 90's and spread rapidly throughout the region over the last 10 years due to mild winters.

All of these factors have increased the overall prices of new homes. According to the Census Bureau, the average price for a new home was $242,400 this September, an increase of 11.5% from September 2011.

Wednesday, October 17, 2012

Denver ranks 12th in home affordability in the U.S.

Interesting Denver Post Article... 
Denver ranks 12th among the 25 largest U.S. metropolitan areas in terms of home affordability, according to research released Wednesday by Interest.com, a Bankrate company.
The median household income in the Denver area exceeds the income required to purchase a median-priced home in the Denver area by four percent, according to the report.
The top five most affordable areas are Detroit, Atlanta, Minneapolis, Phoenix and St. Louis. The least affordable are Los Angeles, Miami, San Diego, New York and San Francisco.
Mike Sante, managing editor of Interest.com, said that despite all of the talk "about how homes are more affordable than they have been in decades, buying a home is still a big challenge for many American households.
"Dealing with rising expenses and stagnant wages is a struggle. Even after years of declining home prices and record-low mortgage rates, median-income households are unable to afford a median-priced home in nearly half of the metropolitan areas," he said.
The research showed that a median income household can only afford a median-priced home in 14 of the 25 largest metropolitan areas.
Data from the U.S. Census Bureau, the National Association of Realtors, National Association of Insurance Commissioners and Experian, one of the three major credit reporting agencies, contributed to the analysis.

Monday, October 15, 2012

Tips for Preparing Your Home for Winter


 

Foundation - Masonry - Exterior

* Check foundation walls, floors, concrete and masonry for cracking, heaving or deterioration

* Check chimneys for loose, deteriorated or missing mortar

* Check gutters

 

Roofs

* Check flashings around all vents, skylights and other openings

* Trim back all tree limbs and vegetation away from home

 

Heating and Cooling

* Lubricate fan and motor bearings

* Check fan belt tension

 

Plumbing

* Have well water tested and checked for safety

* Winterize any exterior plumbing connections

 

Doors and Windows

* Check for loose or missing glazing putty

* Check caulking for deterioration of all openings and joints between wood and masonry

* Check weather-stripping