interesting article on recent trends from denverrealestatewatch.com
Home sales slow more than seasonal drop. DMAR’s Rael thinks home sales may pickup in August.
Denver-area home sales slowed more than usual in July. Almost every other metric – new listings, under contracts, home price fluctuation – showed typical seasonal changes from June, shows a report released last week by the Denver Metro Association of Realtors.
"I really think most of what we saw in the July statistics was just normal, seasonal things,” said Anthony Rael, DMAR’s Market Trends Committee chairman.
“The one thing that really kind of surprised me was the slowdown in sales,” Rael said.
There were 5,079 home closings in July, a 10.79 percent drop from 5,623 in June and a whopping 17.59 percent drop from 6,087 in July 2015.
“Based what we are hearing the marketplace, I think the slowdown in closings might be more indicative there is an appraisal problem than anything else,” Rael said.
“I don’t think it is a comp issue,” he said. Finding comparable homes to justify the sales price can be a problem when home sale prices are rising rapidly, as they have been in the Denver area in recent years, Rael said.
Rather, he thinks a lot of appraisers happened to be on vacation last month.
“There already is a shortage of appraisers, and so if a lot of them are on vacation at the same time, it slows things down,” he said.
He said there is a huge shortage of VA-certified appraisers.
“VA appraisers are really backed up,” Rael said. “It’s not unusual to take three to five weeks before you can schedule a VA appraisal.”
VA loans account for about 5 percent of home sales in the metro area, he said.
Rael expects that lot of homes that would have closed in July, will close in August instead.
“I could be wrong, but I wouldn’t be surprised if we see a little bump in August closings,” Rael said.
There were 7,468 active listings on the market in July. That is only two fewer homes than were on the market in July 2015, but a 9.89 percent increase from the 6,796 home on the market in June.
“Last year, I think we hit the high water market in July and after that the inventory started to decline a bit,” Rael said.
“I have a feeling that we might see a bit of pick-up in inventory levels in August,” he said.
And, with a presidential election this November, mortgage interest rates are almost certainly going to stay low, he said.
He noted that one client recently locked in a 3.2 percent interest rate for a $630,000 jumbo loan and another client got a 2.8- percent 15-year loan.
The market also was a bit less frenzied, with fewer bidding wars in July, a trend he expects to continue through the rest of the year.
“With more choices for consumers, ridiculously low interest rates as the norm, seasonal dip in home prices, I think this fall is going to be a tremendous buying opportunity,” Rael said.
The average price of all homes sold was $412,312, a 12.91 percent increase from $365,196 in July 2015.
Home prices dipped 1.88 percent from the record $420,199 in June.
Rael noted that when he described the June market, he used the world “plateaued,” to describe housing prices.
That was a bit of an unfortunate word choice, as it was misconstrued by many in the media, he said.
“I had to clarify that when I said plateaued, I meant plateaued for the summer,” and not that prices were about to fall off the cliff, Rael said.
“We’re not heading into a bubble,” Rael said. “Prices are up 13 percent from a year ago. The sky is not falling. “
The small month-to-month decline in prices is fairly typical for this time of year.
In July 2015, for example, prices were down 2.33 percent from June.
Rael noted that he and many other real estate brokers would like to see prices rise at a more typical 5 percent to 6 percent level.
“The most important thing is that people can afford to buy homes in the Denver market,” Rael said.
“I don’t want my young nieces and nephews and children to be priced out of the market.”
Friday, August 12, 2016
Home Values 77 Percent Higher in Zip Codes with Good Schools
good article as a reminder for the best places to buy from rismedia.com
Homes in zip codes with at least one good elementary school have higher values and stronger home price appreciation over the long term than homes in zip codes without any good elementary schools—where homes lost more value during the housing downturn but have seen stronger appreciation during the housing recovery of the last five years. This data comes from the recently released ATTOM Data Solutions 2016 Schools and Housing Report.
For the report, ATTOM Data Solutions analyzed 2016 home values and price appreciation along with 2015 average test scores in 18,968 elementary schools nationwide in 4,435 zip codes with a combined 45.9 million single family homes and condos. For purposes of this report, a good school was defined as any with an overall test score at least one-third above the state average.
Out of 1,661 zip codes with at least one good school, the average estimated home value as of July 2016 was $427,402, 77 percent higher than the average home value of $241,096 in 2,774 zip codes without any good schools.
“While good schools are one of the top items on most homebuyer checklists because of the quality-of-life benefit they provide, this report shows that high-performing schools also come with a financial benefit for homeowners in most markets—at least over the long term,” says Daren Blomquist, senior vice president at ATTOM Data Solutions (parent company of RealtyTrac). “Meanwhile, home prices in zip codes without any good schools tend to be more volatile, which might work to a homeowner’s financial benefit in the short term but not over the long term of at least 10 years.”
83 percent of metro areas post higher home values in zips with good schools
Out of 173 metropolitan statistical areas analyzed for the report, 143 metros (83 percent) had higher average home values in zip codes with good schools than in zip codes without good schools, including Los Angeles (65 percent higher); Chicago (65 percent higher); Atlanta (91 percent higher); New York (52 percent higher); and Miami (31 percent higher).
Metro areas where home values in zip codes with at least one good school were at least 95 percent higher than home values in zip codes without any good schools included Birmingham, Alabama (169 percent higher); Flint, Michigan (129 percent higher); and St. Louis (99 percent higher); Detroit (97 percent higher); and Baltimore (95 percent higher).
“In my experience, buyers will almost always choose to buy a home in a good school district. In turn, this creates greater demand for homes in high-performing school districts and causes these sub-markets to appreciate in value at higher rates than other neighborhoods,” says economist Matthew Gardner, covering the Seattle market where average home values were 64 percent higher in zip codes with goods schools than in zip codes without good schools. “Interestingly, we see demand for these homes from buyers without school-aged children as well because they look at the school district as an added layer of protection should home prices start to soften.
Homeowners gained $51K more since purchase in zips with good schools
Homeowners in zip codes with at least one good school have gained an average of $74,716 in value since purchase, an average return on investment of 32.0 percent. Meanwhile homeowners in zip codes without any good schools have gained an average of $23,311 in value since purchase, an average return on investment of 27.5 percent.
Average ROI for homeowners was higher in zip codes with at least one good school than in zip codes without any good schools in 114 of the 173 metro areas analyzed for the report (66 percent), including Chicago, Atlanta, New York, Miami and San Francisco. Notable exceptions where homeowner ROI was higher in zip codes without any good schools included Los Angeles, Riverside-San Bernardino in Southern California, Sacramento, Orlando and Washington, D.C.
Home price appreciation more volatile in zips without good schools
The report also found that home price appreciation has been more volatile in zip codes without any good schools over the past decade compared to zips with at least one good school.
Year-to-date 2016 median home prices in zip codes without any good schools on average are still 1 percent below median home prices during the same time period in 2006, while median home prices in zip codes with at least one good school are up 4.5 percent on average compared to 10 years ago.
10-year home price appreciation in zip codes with good schools outpaced 10-year HPA in zip codes without good schools in 128 of the 173 metro areas analyzed for the report (74 percent), including Los Angeles, Chicago, Atlanta, New York and Miami.
Meanwhile, home prices in zip codes without good schools dropped more precipitously during the housing downturn. Between 2006 and 2011 median home prices in zip codes without any good schools decreased an average of 28.9 percent while median home prices in zip codes with at least one good school decreased 23.0 percent during the same time period.
Home price appreciation in zip codes without any good schools has outpaced HPA in zip codes with at least one good school over the past five years during the real estate recovery (47.9 percent increase versus 42.2 percent increase respectively).
Ranking of “Good School Bargain” zip codes
The report also ranked 117 zip codes as “Good School Bargains.” All of these zip codes had at least one good school along with a year-to-date 2016 median home sales price of $150,000 or lower. School scores and home prices have improved compared to one year ago and five years ago in all of these zip codes, with the ranking based on 10-year home price appreciation, from lowest to highest (lowest indicating the best bargain relative to the peak).
The Top 10 zip codes with good schools that represent the best bargain home buying opportunities nationwide include zips in Chicago; Cleveland; Saginaw, Michigan; Milwaukee; Tampa-St. Petersburg; Orlando; Las Vegas; Homosassa Springs, Florida; and Riverside-San Bernardino, California.
Homes in zip codes with at least one good elementary school have higher values and stronger home price appreciation over the long term than homes in zip codes without any good elementary schools—where homes lost more value during the housing downturn but have seen stronger appreciation during the housing recovery of the last five years. This data comes from the recently released ATTOM Data Solutions 2016 Schools and Housing Report.
For the report, ATTOM Data Solutions analyzed 2016 home values and price appreciation along with 2015 average test scores in 18,968 elementary schools nationwide in 4,435 zip codes with a combined 45.9 million single family homes and condos. For purposes of this report, a good school was defined as any with an overall test score at least one-third above the state average.
Out of 1,661 zip codes with at least one good school, the average estimated home value as of July 2016 was $427,402, 77 percent higher than the average home value of $241,096 in 2,774 zip codes without any good schools.
“While good schools are one of the top items on most homebuyer checklists because of the quality-of-life benefit they provide, this report shows that high-performing schools also come with a financial benefit for homeowners in most markets—at least over the long term,” says Daren Blomquist, senior vice president at ATTOM Data Solutions (parent company of RealtyTrac). “Meanwhile, home prices in zip codes without any good schools tend to be more volatile, which might work to a homeowner’s financial benefit in the short term but not over the long term of at least 10 years.”
83 percent of metro areas post higher home values in zips with good schools
Out of 173 metropolitan statistical areas analyzed for the report, 143 metros (83 percent) had higher average home values in zip codes with good schools than in zip codes without good schools, including Los Angeles (65 percent higher); Chicago (65 percent higher); Atlanta (91 percent higher); New York (52 percent higher); and Miami (31 percent higher).
Metro areas where home values in zip codes with at least one good school were at least 95 percent higher than home values in zip codes without any good schools included Birmingham, Alabama (169 percent higher); Flint, Michigan (129 percent higher); and St. Louis (99 percent higher); Detroit (97 percent higher); and Baltimore (95 percent higher).
“In my experience, buyers will almost always choose to buy a home in a good school district. In turn, this creates greater demand for homes in high-performing school districts and causes these sub-markets to appreciate in value at higher rates than other neighborhoods,” says economist Matthew Gardner, covering the Seattle market where average home values were 64 percent higher in zip codes with goods schools than in zip codes without good schools. “Interestingly, we see demand for these homes from buyers without school-aged children as well because they look at the school district as an added layer of protection should home prices start to soften.
Homeowners gained $51K more since purchase in zips with good schools
Homeowners in zip codes with at least one good school have gained an average of $74,716 in value since purchase, an average return on investment of 32.0 percent. Meanwhile homeowners in zip codes without any good schools have gained an average of $23,311 in value since purchase, an average return on investment of 27.5 percent.
Average ROI for homeowners was higher in zip codes with at least one good school than in zip codes without any good schools in 114 of the 173 metro areas analyzed for the report (66 percent), including Chicago, Atlanta, New York, Miami and San Francisco. Notable exceptions where homeowner ROI was higher in zip codes without any good schools included Los Angeles, Riverside-San Bernardino in Southern California, Sacramento, Orlando and Washington, D.C.
Home price appreciation more volatile in zips without good schools
The report also found that home price appreciation has been more volatile in zip codes without any good schools over the past decade compared to zips with at least one good school.
Year-to-date 2016 median home prices in zip codes without any good schools on average are still 1 percent below median home prices during the same time period in 2006, while median home prices in zip codes with at least one good school are up 4.5 percent on average compared to 10 years ago.
10-year home price appreciation in zip codes with good schools outpaced 10-year HPA in zip codes without good schools in 128 of the 173 metro areas analyzed for the report (74 percent), including Los Angeles, Chicago, Atlanta, New York and Miami.
Meanwhile, home prices in zip codes without good schools dropped more precipitously during the housing downturn. Between 2006 and 2011 median home prices in zip codes without any good schools decreased an average of 28.9 percent while median home prices in zip codes with at least one good school decreased 23.0 percent during the same time period.
Home price appreciation in zip codes without any good schools has outpaced HPA in zip codes with at least one good school over the past five years during the real estate recovery (47.9 percent increase versus 42.2 percent increase respectively).
Ranking of “Good School Bargain” zip codes
The report also ranked 117 zip codes as “Good School Bargains.” All of these zip codes had at least one good school along with a year-to-date 2016 median home sales price of $150,000 or lower. School scores and home prices have improved compared to one year ago and five years ago in all of these zip codes, with the ranking based on 10-year home price appreciation, from lowest to highest (lowest indicating the best bargain relative to the peak).
The Top 10 zip codes with good schools that represent the best bargain home buying opportunities nationwide include zips in Chicago; Cleveland; Saginaw, Michigan; Milwaukee; Tampa-St. Petersburg; Orlando; Las Vegas; Homosassa Springs, Florida; and Riverside-San Bernardino, California.
The top out of state places in 2016 where people are coming to Colorado from
interesting trends I saw while watching 9 news...
The top out of state places in 2016 where people are coming to Denver from:
1. Los Angeles, CA
2. Chicago, IL
3. Dallas, TX
4. Phoenix, AZ
5. San Diego, CA
6. Santa Ana, Irvine, Anaheim Area, CA
7. Boston, MA
8. El Paso, TX
9. Las Vegas, NV
10. Portland, OR
The top out of state places in 2016 where people are coming to Denver from:
1. Los Angeles, CA
2. Chicago, IL
3. Dallas, TX
4. Phoenix, AZ
5. San Diego, CA
6. Santa Ana, Irvine, Anaheim Area, CA
7. Boston, MA
8. El Paso, TX
9. Las Vegas, NV
10. Portland, OR
Crazy Ways to Sell Your House
a lighter side of real estate approach to selling, some funny things to consider when all else fails...from realtor.com
No matter how amazing your home is, let’s be honest: Real estate is a drag-down, stops-out, winner-take-all competitive market. It can take some true ingenuity to steer prospective buyers through your front door.
Well, to help get your creative juices flowing, here are some offbeat sales tactics that some slightly daring homeowners and real estate agents have tried. And they swear they work!
Offer a cash reward
If you use Facebook or Twitter to stay in touch with friends or share photos, then there’s no reason why you can’t use it to share the news that you’re selling your home!
In order to sweeten the deal, one Canadian family decided to offer a $1,000 “reward” for any “share” that led to the sale of their home. There’s no word yet on how well it worked, but it makes sense: Why not take that split second to spread the word to your pals if cold hard cash hangs in the balance?
Create your own reality show
You turn on a camera, set up a channel, and let people peek into your home—all in an effort to help them imagine what it would be like to live there in the future. Crazy? Maybe. But live-streaming is a way to get prospective buyers to see the inside of your property without ever leaving their couch.
“Live-streaming video is a great tool: Facebook Live, YouTube, Blab, Periscope, and Meerkat are all emerging big time for real estate use,” says Ellen Cagnassola, social media manager for HouseMaster Home Inspections.
Feel a bit awkward being the “star”? Hold an event such as a live show, or hire local talent like stand-up comedians to do a short skit in your home that you can publicize. It’ll get your home in front of more eyeballs, honest! Keep the adult humor to a minimum, please.
Play the celebrity card
Does your home have a celebrity who once slept there? Or perhaps it served as the backdrop for a movie at one point? Or maybe it evokes a certain TV show or movie? Whatever makes your property special, use it to your advantage. And if you don’t have any celeb stories, then consider hiring actors to set the scene.
Jaisa Bishop, an associate partner at Partners Trust, did just that when representing a Victorian house in San Diego that wasn’t getting enough attention.
“I employed my family members to dress in period costume and be in character. They sat in the garden while a local artist painted and brought a few of his pieces to sell. It was a great success,” says Bishop. “Guests were able to sit and have tea in the garden and eat finger foods with the characters while taking in the home. ‘Downton Abbey’ meets real estate!”
Try a little magic
When all else fails, it might be time to call in help from the invisible fairies or forces you believe in. Kooky, sure, but it can’t hurt and it just might help. Just ask Ellen Shaikun, a broker associate with Berkshire Hathaway HomeServices Parks & Weinberg Realtors, who had heard that burying a statue of St. Joseph upside-down in your yard is supposed to bring a quick sale.
“I had a client who did it. When the house was still on the market two weeks later, my seller kicked into desperation mode and dug up the statue—having determined that it was buried in the wrong place for maximum impact—and moved it next to the mailbox. My seller was correct: We got an offer almost immediately. As we all know in real estate, it’s all about location, location, location!”
No matter how amazing your home is, let’s be honest: Real estate is a drag-down, stops-out, winner-take-all competitive market. It can take some true ingenuity to steer prospective buyers through your front door.
Well, to help get your creative juices flowing, here are some offbeat sales tactics that some slightly daring homeowners and real estate agents have tried. And they swear they work!
Offer a cash reward
If you use Facebook or Twitter to stay in touch with friends or share photos, then there’s no reason why you can’t use it to share the news that you’re selling your home!
In order to sweeten the deal, one Canadian family decided to offer a $1,000 “reward” for any “share” that led to the sale of their home. There’s no word yet on how well it worked, but it makes sense: Why not take that split second to spread the word to your pals if cold hard cash hangs in the balance?
Create your own reality show
You turn on a camera, set up a channel, and let people peek into your home—all in an effort to help them imagine what it would be like to live there in the future. Crazy? Maybe. But live-streaming is a way to get prospective buyers to see the inside of your property without ever leaving their couch.
“Live-streaming video is a great tool: Facebook Live, YouTube, Blab, Periscope, and Meerkat are all emerging big time for real estate use,” says Ellen Cagnassola, social media manager for HouseMaster Home Inspections.
Feel a bit awkward being the “star”? Hold an event such as a live show, or hire local talent like stand-up comedians to do a short skit in your home that you can publicize. It’ll get your home in front of more eyeballs, honest! Keep the adult humor to a minimum, please.
Play the celebrity card
Does your home have a celebrity who once slept there? Or perhaps it served as the backdrop for a movie at one point? Or maybe it evokes a certain TV show or movie? Whatever makes your property special, use it to your advantage. And if you don’t have any celeb stories, then consider hiring actors to set the scene.
Jaisa Bishop, an associate partner at Partners Trust, did just that when representing a Victorian house in San Diego that wasn’t getting enough attention.
“I employed my family members to dress in period costume and be in character. They sat in the garden while a local artist painted and brought a few of his pieces to sell. It was a great success,” says Bishop. “Guests were able to sit and have tea in the garden and eat finger foods with the characters while taking in the home. ‘Downton Abbey’ meets real estate!”
Try a little magic
When all else fails, it might be time to call in help from the invisible fairies or forces you believe in. Kooky, sure, but it can’t hurt and it just might help. Just ask Ellen Shaikun, a broker associate with Berkshire Hathaway HomeServices Parks & Weinberg Realtors, who had heard that burying a statue of St. Joseph upside-down in your yard is supposed to bring a quick sale.
“I had a client who did it. When the house was still on the market two weeks later, my seller kicked into desperation mode and dug up the statue—having determined that it was buried in the wrong place for maximum impact—and moved it next to the mailbox. My seller was correct: We got an offer almost immediately. As we all know in real estate, it’s all about location, location, location!”
Pros And Cons Of The ‘Tiny House’ Movement
Something on the lighter side of real estate. Just a funny article from the Onion.
Pros And Cons Of The ‘Tiny House’ Movement
Many Americans are moving into extremely small living quarters, simplifying their lives and putting less focus on material goods. The Onion examines the pros and cons of “tiny houses”:
Pro
Paints inability to afford a real home as positive life choice
Allows you to live the simple life your ancestors did everything in their power to escape
Likely too cramped for ghosts to bother haunting
Refrigerator as close to bed as you’ve always dreamed
4’-by-3’ velvet Allman Brothers Band poster gets the decorating job done on its own
Home comes fully supplied with 20 years of small talk
Con
Anxious pacing route severely restricted
Spending quality time with family members all but unavoidable
Meticulously charting out who gets to use the electrical outlet each night can be somewhat draining
Most documentaries on the subject already wrapped
Lack of diversity in a neighborhood composed entirely of other people whose novels didn’t sell
Have to live there
Pros And Cons Of The ‘Tiny House’ Movement
Many Americans are moving into extremely small living quarters, simplifying their lives and putting less focus on material goods. The Onion examines the pros and cons of “tiny houses”:
Pro
Paints inability to afford a real home as positive life choice
Allows you to live the simple life your ancestors did everything in their power to escape
Likely too cramped for ghosts to bother haunting
Refrigerator as close to bed as you’ve always dreamed
4’-by-3’ velvet Allman Brothers Band poster gets the decorating job done on its own
Home comes fully supplied with 20 years of small talk
Con
Anxious pacing route severely restricted
Spending quality time with family members all but unavoidable
Meticulously charting out who gets to use the electrical outlet each night can be somewhat draining
Most documentaries on the subject already wrapped
Lack of diversity in a neighborhood composed entirely of other people whose novels didn’t sell
Have to live there
Old Abandoned Train Is Transformed Into A 400-sq-ft Tiny House, And It’s Gorgeous
fun article on what's possible with a little space from www.littlethings.com
Back in 1939, the town of Essex, MT was picking up steam. It had always been in close proximity to the gorgeous Glacier National Park — in fact, it was nestled between its two main entrances. But when the Great Northern Railway placed a stop in Essex, it was like putting coals in the boiler of a train, and a plan to make a third entrance to the park got rolling.
In anticipation of all the future tourists and rail workers that Essex was sure to attract, the Izaak Walton Inn opened. The grand, $40,000 hotel was “modern in every detail,” with 29 rooms, 10 bathrooms, a lobby, dining room, and kitchen with a two-ton cook stove.
Yet, when the United States entered World War II following the bombing of Pearl Harbor in 1941, plans for the new park entrance hit the back burner, and it never materialized. The small town of Essex was then left with its “Inn Between” two park entrances…and not much else.
But, much like The Little Engine That Could, the big hotel in a tiny town persevered. Its warm staff and cozy rooms attracted ski and nature enthusiasts seeking a quiet refuge, and the hotel eventually earned a reputation as one of the state’s best recreational secrets.
Fast-forward to 2015, and the hotel is thriving thanks to a very creative nod to its locomotive roots…
This caboose that zoomed through Essex in 1941 belonged to a Great Northern X215. It has been converted into something really special for this hotel.
It’s a beautiful and modern dwelling that can house up to six. Once you step inside, you almost forget that you’re standing in the belly of a caboose.
A family can keep cozy in this renovated caboose that has a fully equipped kitchen, two sets of bunk beds, and a queen-sized bed with a gas fireplace in the master bedroom.
This 60,000-pound rail car was hoisted by crane before it was trucked to Essex.
“We get a lot of rail fans here who just go crazy over the trains,” Elise Wright, assistant general manager at the Izaak Walton Inn, told the Daily Inter Lake.
Back in 1939, the town of Essex, MT was picking up steam. It had always been in close proximity to the gorgeous Glacier National Park — in fact, it was nestled between its two main entrances. But when the Great Northern Railway placed a stop in Essex, it was like putting coals in the boiler of a train, and a plan to make a third entrance to the park got rolling.
In anticipation of all the future tourists and rail workers that Essex was sure to attract, the Izaak Walton Inn opened. The grand, $40,000 hotel was “modern in every detail,” with 29 rooms, 10 bathrooms, a lobby, dining room, and kitchen with a two-ton cook stove.
Yet, when the United States entered World War II following the bombing of Pearl Harbor in 1941, plans for the new park entrance hit the back burner, and it never materialized. The small town of Essex was then left with its “Inn Between” two park entrances…and not much else.
But, much like The Little Engine That Could, the big hotel in a tiny town persevered. Its warm staff and cozy rooms attracted ski and nature enthusiasts seeking a quiet refuge, and the hotel eventually earned a reputation as one of the state’s best recreational secrets.
Fast-forward to 2015, and the hotel is thriving thanks to a very creative nod to its locomotive roots…
This caboose that zoomed through Essex in 1941 belonged to a Great Northern X215. It has been converted into something really special for this hotel.
It’s a beautiful and modern dwelling that can house up to six. Once you step inside, you almost forget that you’re standing in the belly of a caboose.
A family can keep cozy in this renovated caboose that has a fully equipped kitchen, two sets of bunk beds, and a queen-sized bed with a gas fireplace in the master bedroom.
This 60,000-pound rail car was hoisted by crane before it was trucked to Essex.
“We get a lot of rail fans here who just go crazy over the trains,” Elise Wright, assistant general manager at the Izaak Walton Inn, told the Daily Inter Lake.
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