PenningtonRealEstate

June's Positive Real Estate Perspective

2009-06-22T09:42:00.000-07:00

I know that it's been a while since I've sent out any interesting real estate news, it's been a little busy here, but I came across some interesting articles recently and thought you might enjoy them.

Denver Tops Rebounding Housing Markets Barbara Corcoran highlights Denver as the number one recovering housing market on NBC's Today Show saying, "Everything about Denver is pointing Up, Up, Up!" read more here

Jobs May Recover First in Colorado: If you want to be in the right place when the recovery starts, that place may be in Colorado, Idaho, Oregon, Texas or Washington. The recession didn't start at the same time in every state, and it won't end at the same time either. A new forecast from Moody's Economy.com predicts that jobs growth will return first in those five states, starting in the last quarter of this year. read more here

Pending Home Sales Increase Nearly 7 Percent: The Pending Home Sales Index, a forward-looking indicator based on contracts signed in April, rose 6.7 percent to 90.3 from a reading of 84.6 in March, and is 3.2 percent above April 2008 when it was 87.5.Lawrence Yun, NAR chief economist, says buyers are responding to very favorable market conditions. “Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market,” he says. “Since first-time buyers must finalize their purchase by November 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers.” read more here

Denver in the Top 10 Growing Cities

2009-04-17T12:53:00.000-07:00

Denver is one of 10 U.S. cities on a new Forbes magazine list of cities where Americans are relocating.

Denver ranked No. 10 on the list.

“Unemployment is on the rise, credit is tight, and consumers aren’t spending — which means they aren’t picking up and moving much either. Very few places in America saw significant population growth in 2008,” Forbes said in its report.

“But the buzzing metropolitan area of Denver bucked that trend,” Forbes added. “Its population increased by 2.17 percent in 2008. In 2007, it increased by 2.09 percent. In 2008, Denver was the 10th-fastest growing metro area in the U.S.”

The Forbes report notes that Denver was listed as the most popular city in America in an October 2008 survey by the Pew Research Center, “so it’s no surprise that this metro area still attracts newcomers.”

It also cites lower unemployment rates in Denver than the national average.

The magazine based its list on U.S. Census Bureau data for population growth among metropolitan areas.

New Orleans, at No. 8, is a surprising entry on the list, but Forbes said the hurricane-ravaged Crescent City has been regaining population the last two years and rebuilding efforts are boosting employment.

The 10 cities on Forbes’ list:

1. Raleigh, N.C.
2. Austin, Texas
3. Charlotte, N.C.
4. Phoenix
5. Dallas
6. San Antonio, Texas
7. Houston
8. New Orleans
9. Atlanta
10. Denver

Denver also recently ranked No. 14 on Forbes’ list of the best U.S. places to do business.

The Wall Street Journal's Home of the Day

2009-04-09T09:44:00.001-07:00

This post doesn't really have any relevance to today's economy, real estate market, or happenings. I thought that it would be fun to take a look at some really cool homes throughout the country. The Wall Street Journal has a great web page called "Home of the Day". It features a photo tour of some very unique, expensive, and well designed homes throughout the country. If you're bored at work and need a break take a look! Click Here...

New Name. New Look. Same Great Service.

2009-03-30T09:35:00.000-07:00

Pennington Real Estate is now the new name of my real estate brokerage company! I am excited for people to now know what it means, how to spell it, and more importantly...how to pronounce it. As you have probably already noticed it includes a whole new logo and look for the company. Please stay tuned for new additions coming from Pennington Real Estate and as always I look forward to serving you.

Sincerely,

Luke

Mortgage Rates DROP!

2009-03-18T16:17:00.000-07:00

BIG NEWS! I just received word from Sean Sedita at Platte River Mortgage this afternoon that the bond market had a huge upswing today which caused mortgage rates to drop to around 4.5% for qualified buyers. Those of you who know me know that I'm not a hardseller, but if you've been thinking about buying real estate now is the time to do it. If you would like to talk with Sean about refinancing you can reach him at 303.433.9902.

MORE Positive Perspective in Denver

2009-03-13T08:51:00.000-07:00

A "Half Full" glass perspective to give you a break from the "Half Empty" perspective of the media on our current market condition. Aaaahhhhhhh refreshing!!

I Dream of Denver: If you jumble together the five most popular American metro areas - Denver, San Francisco, Seattle, Orlando and Tampa - you get an image of the American Dream circa 2009. These are places where you can imagine yourself with a stuffed garage - filled with skis, kayaks, soccer equipment, hiking boots and boating equipment. These are places you can imagine yourself leading an active outdoor lifestyle. Read more here...

Homebuilders a bit more upbeat: Index shows that builders were slightly more optimistic in February compared to January. Read more here...

Colorado foreclosures fall in 2008 for 1st time in years: Colorado foreclosure activity fell last year for the first time since the state began collecting data in 2003, according to a report released Monday by the Colorado Division of Housing. Read more here...

S&P: Denver had smallest 2008 home-price decline of 20 U.S. cities: The monthly S&P/Case-Shiller Home Price Indices said average prices of existing homes in Denver fell 4 percent between December 2007 and December 2008, less than any of the other 19 cities in the report. Read more here...

Denver ranks 7th on EPA list of most energy-efficient buildings: Denver ranks No. 7 among U.S. cities with the most buildings rated highly energy efficient by the U.S. Environmental Protection Agency under it's "Energy Star" program. Read more here...

Green Home Improvement Ideas

2009-03-04T12:19:00.000-08:00

Green homes are designed, built, renovated, or improved in ways to more efficiently use natural resources. While many newer homes are built green, even small improvements to an older home can help reduce impact on the environment, promote the health of those who live there, and use energy and water more efficiently.

By adding green features to your home you can enjoy lower maintenance costs & monthly expenses, health benefits like lower emissions & better air quality, and improve your home's resale value & marketability.

Here are some ideas to make your home more green:

* Caulk windows and doors * Landscape responsibly * Install a programmable thermostat * Install low-E windows * Install low-flow showerheads and toilets * Consider adding storm doors * Install ceiling fans * Install tankless water heaters * Use low- or no-VOC paints and materials * Choose LED lighting * Take advantage of smart-irrigation technology like evapotranspiration controllers

A Postive Real Estate Perspective

2009-02-23T16:38:00.000-08:00

As you're well aware of there is a lot of bad news these days about the real estate market and our economy. What you might not know is that there are some positive things happening as well. To give you a break from the bad news take a look below and refresh your perspective a little bit!

We're Number One: The Pew Research Center's new survey says, "Denver is the most desirable city in America!" Forty-three percent of those in the survey say Denver was the city they would most like to live in if they had a choice of living in the nation's top 30 cities. In the top five Denver was followed by Seattle, San Diego, Tampa and Orlando. The bottom five, all east of the Mississippi were Cleveland, Cincinnati, Kansas City, Minneapolis and Detroit. Read more about this topic @ www.kdvr.com

Scwab to add 500 jobs in Douglas County: Charles Schwab Corp. will bring 500 new jobs to Colorado by 2011, Gov. Bill Ritter announced Thursday January 15th at the state Capitol.

Read more about this topic@ www.denver.bizjournals.com

Existing Home Sales Show Strong Gain in December: Existing home sales rose unexpectedly while inventory declined, lead by a surge of sales in the West, according to the National Association of Realtors report released January 26th. Read more @ www.realtor.org

CSU, CU Economist - Colorado's Recovery Could Start as Early as Summer: Colorado went through a bad economic year in 2008 and can expect more of the same this year, but there are signs that a recovery could start as soon as summer, a pair of Colorado's top university business economists agreed Wednesday. Read more about this topic @ www.denver.bizjournals.com

Fannie Mae to Loosed Refinancing Rules: Fannie Mae will loosen rules for homeowners seeking to lower their mortgage payments by refinancing. The District company, which accounts for more than 40% of the $12 trillion in U.S. residential mortgage debt, is seeking to break a "logjam" in refinancing and allow more homeowners to take advantage of near-record low interest rates, according to Brian Faith, a spokesman for Fannie Mae, which like it's rival, Freddie Mac, is under government control. Read more about this topic @ www.washingtonpost.com

Mortgage Rates for CO and US

2009-02-18T07:40:00.000-08:00

Mortgage rates are still at historical lows. Depending on your situation and qualifications they may be even lower than outlined here. Below are graphs of the Colorado average mortgage rates and the National average mortgages rates:

Average Mortgage Rates for Colorado

Average Mortgage Rates Nationally

Read more real estate information @ www.ardeodomus.blogspot.com.

Graphs provided by Bankrate and The Denver Post.

10 Real Estate Myths Debunked

2009-02-09T08:27:00.000-08:00

With mortgage meltdowns, plummeting home prices and soaring foreclosure rates constantly in the news, it's no wonder people are wary of the housing market these days. But contrary to popular belief, things are not as dismal as they seem, according to Lawrence Yun, chief economist of the National Association of Realtors. Yun debunks 10 commonly held beliefs about the current housing market, and FrontDoor.com offers 10 related tips.

1. Peak-to-trough home price declines to date have been about 20 percent. Wrong. Measurements of home price declines can be skewed depending on which homes in which markets are being measured. For instance, the Case-Shiller Index, which indicates that home prices are down 20 percent, is heavily skewed towards homes with subprime loans and other distressed home sales. These troubled homes have experienced a steeper decline than home prices in general, says Yun, adding that both government data based on loans backed by Fannie Mae and Freddie Mac and data from the National Association of Realtors suggest much more modest price declines. TIP: If you're selling your home, the best thing to do is price your home right.

2. The much smaller number of new homes now under construction indicates the dismal outlook for the housing market. Wrong. The inventory of homes on the market is very high, so the last thing we need now is more new homes being built. Home builders have cut back sharply on production, which will help lower inventories and stabilize prices. The builders have done exactly what market forces are dictating under current conditions, Yun says. TIP: With many new homes completed but not sold, you can find great opportunities.

3. Even when the housing market recovers, home price growth will be only 4 to 6 percent per year -- much less than historical average returns for the stock market.

Most buyers put less than 20 percent of their own money into a home purchase; this borrowing power can translate to a greater rate of return. This is how Yun explains it: Home price appreciation historically has been about 1 to 2 percentage points higher than consumer price inflation, which translates into about 4 to 6 percent per year. But this growth rate cannot be viewed as a rate of return like the stock market. The reason is that most people do not buy a home for all cash, instead making a cash down payment and borrowing the rest. The leverage this borrowing creates can magnify returns -- and losses. If price growth returns to historic norm, the price growth of 4 percent can easily turn into 20 to 30 percent rate of return if the home buyer makes a down payment of 10 or 20 percent. TIP: Get the fundamentals right when investing in real estate.

4. Impending baby boomer retirements and moves to small homes will cause a glut of homes on the market. Wrong. The first edge of the baby boomers has reached 60 years of age and the massive bulk of that generation will soon go into retirement, but far from trading down, many of these older homeowners are keeping their homes or moving to ones of comparable size. And even if more boomers do sell their larger homes in the years ahead, Yun points out, the rapidly growing U.S. population should absorb the inventory of existing homes on the market. TIP: Active seniors can find a retirement community that caters to their needs and interests.

5. The federal government takeover of secondary mortgage companies Fannie Mae and Freddie Mac is a bailout that will cost taxpayers bundles. Too soon to tell, says Yun. It's conceivable that taxpayers may have to cover some losses. It's also possible that the government takeover will result in no loss of taxpayer dollars. Even if taxpayer funds are used, the bailout would be preferable to the global economic problems that would have occurred if Fannie and Freddie had gone belly up. TIP: Uncle Sam is "bailing out" homeowners facing foreclosure. Find out more about the Hope for Homeowners plan.

6. The Federal Reserve controls mortgage rates. Wrong. Yun explains: The Fed's activities influence mortgage rates but don't directly control them. What the Fed sets is a very short-term interest rate called the Federal Funds Rate. Mortgage rates are determined by global savings as well as credit spreads and inflationary pressures. Over the past two years, the Fed has raised the Fed Funds Rate to 5.5 percent, and then cut it deeply to around 2 percent. All the while, the 30-year mortgage rate has averaged in the 6 to 6.5 percent range. TIP: Today's rates don't look bad compared to the 10 percent we saw in the early '90s and 17 percent in the '80s.

7. It's the wrong time to buy. Wrong. All real estate is local. For those who are financially and mentally ready to buy, there has never been a better time to be a buyer in many markets. An abundant selection of homes and historically low interest rates give buyers an edge over sellers. The recently passed $7,500 federal tax credit for first-time home buyers creates an added incentive. For someone with a long-time horizon, Yun says, there is very little worry about home values since homes have historically provided a solid foundation for wealth accumulation. TIP: Compare the pros and cons of renting vs. buying to see what makes sense for you.

8. It's the right time for everyone to buy. No. All real estate is local, and everyone is unique. Someone who is not emotionally or financially ready should not be forced or induced to join the rank of homeowners, even when a market presents good buying opportunities. Potential homeowners clearly need to understand that the decision to move up to ownership requires sacrifices, like saving up for down payment and elevating their credit scores. Homeowners who lose their home to foreclosure serve no one's interest, Yun adds. TIP: Take a good hard look at your financial status and create a homeowner's budget to see if you're ready to buy a home.

9. It's a terrible time to sell. Wrong. In markets where home sales are picking up strongly, a seller can easily get an offer if the property is priced correctly. Also, Yun says, for those looking to trade-up, selling low on an existing home is more than offset by buying the new move-up home at a lower price. When the market recovers, home price appreciation on the traded-up home will bring bigger bang for the buck. TIP: Homebuyers want bargains in this market. If you price your home much lower than your competition, you might end up with a bidding war.

10. With the advent of the Internet, more and more homes are being sold by owners (FSBOs), and real estate practitioners are becoming obsolete. Nope. According to Yun, the share of home sellers who choose to go it alone when selling their home has actually decreased from about 20 percent in the late 1980s to about 12 percent today. Even after these sellers successfully complete a transaction, only 4 in 10 say they would sell their next home without the assistance of a real estate professional. TIP: You don't have to sign a listing contract to talk to a Realtor. You might even get some free advice.

Read more Real Estate Information @ www.ardeodomus.blogspot.com

Housing Market Stimulus Under Way?

2009-02-02T13:48:00.000-08:00

Stimulus: Senate's housing hopes, an article from CNNMoney.com, reports that lower interest rates, a foreclosure moratorium and more attractive tax credits to spur home buying are all components being considered for the recovery bill. Senate Republicans are expected to introduce a provision that would "encourage lenders to offer a 30-year fixed rate mortgage at 4% for a limited period of time." A 90-day moratorium on foreclosures has been proposed by Senate Banking Committee Chairman Christopher Dodd, D-Conn. Senate Budget Committee Chairman Kent Conrad, D-N-D would like to see the $7,500 first-time homebuyer credit expanded to include all purchases of primary residences. A comprehensive plan to fix the financial system is expected to be released by President Obama within the next two weeks.
http://money.cnn.com/2009/02/01/news/economy/Senate_stimulus_housing/index.htm?postversion=2009020209

An Easy Savings Account to Make More Money

2009-01-28T12:09:00.000-08:00

3.5% APY Savings Account

I thought that I would let you all know that I just "stumbled" upon a savings account called Dollar Savings Direct, a division on Emigrant Direct Bank who I have banked with for years. Dollar Savings Direct offers a savings rate of 3.5% APY which is pretty dang good in this economy. Compare that with your current savings account and I bet that you're beating it's rate by about 3% on average.

The only requirement is that you keep a $1,000 minimum in the account in order to receive the 3.5% rate. If you're account goes below $1,000 then you will only earn 1% on your money until it is back above $1,000.
Don't forget that Emigrant Direct Bank is still a great place to earn 2.4% APY on your savings with no minimum balance requirement. Both banks allow you to link your savings account to your checking account and both are FDIC insured. You can take a look at both of their sites for more information. Save away!

Account Highlights

Open your account online. It's quick and easy.
No Fees. $1,000 account balance minimum.
No need to change your checking account. Your Dollar Savings Account™ will be linked to your current checking account.
Access your account 24/7 at DollarSavingsDirect.com.

Home Sales Increase in West

2009-01-20T20:45:00.000-08:00

The western U.S. region, including Colorado, was the only area of the country to have an increase in sales of existing homes — nearly 18 percent — from November 2007 to the same month this year, according to data released by the National Association of Realtors on Tuesday.

Median selling price of homes in the West, though, had the biggest regional decrease — nearly 26 percent — supporting Colorado real estate experts’ contention that homes in the state finally are priced to sell.

Nationwide existing-home sales, or those of homes that have been sold at least once before, fell 10.6 percent last month to 4.49 million units from 5.02 million in November 2007. Sales were down 8.6 percent from 4.91 million units in October of this year.

Home sales traditionally drop in the fall and winter months, but pick back up in spring and summer.

Median selling price for homes nationwide decreased 13.2 percent to $181,300 in November from $208,800 for the same month of 2007. Median is the middle price between the highest and lowest selling prices, and is considered a truer price than average because it’s not skewed by the highest and lowest prices.

Types of homes in the NAR study included single-family homes, condominiums, townhomes and co-ops.

By comparison, existing home sales in the West increased 17.9 percent to 1.12 million in November year over year. Sales decreased only 4.3 percent from October of this year.

The median selling price of a home in the West dropped 25.5 percent to $242,500 from the same month last year.

NAR would like to see the federal government help stimulate homebuying by offering first-time buyers tax credits and making the higher loan limits vital in high-cost markets permanent. The trade group also would like to see Congress and the Obama administration help make short sales easier and “unclog the mortgage pipeline.”

“It is imperative to provide incentives for homebuyers to get back into the market,” Lawrence Yun, NAR’s chief economist, said in a statement.

Yun also said NAR hopes the impact on home sales from the stock market crash will be short-lived, as in 1987 and 2001.

Denver Business Journal 12/23/08

A Great Website for Financial Information

2009-01-13T15:11:00.000-08:00

Check out www.bankrate.com for excellent information on money, finance, and everything that comes with it!

Denver Real Estate In This Economy

2009-01-13T14:29:00.000-08:00

You may have asked yourself once or twice about what is happening with the local real estate market? With layoffs and downturn what should I do or plan for? Here are a few things to take into consideration:
1. Create a comfortable financial reserve cushion of 3 to 6 months of living expenses.
2. Things, most likely, will get better from here so improving your home might not be a bad idea if you have the available funds.
3. Consider refinancing your mortgage. Rates are very low right now and Sean at Platte River Mortgage can help you figure out if it makes sense or not. You can reach Sean at 303.433.9902.
4. This may be a shameless plug, but consider buying more real estate. One of my favorite Warren Buffet quotes is, "Be fearful when everyone else is greedy and greedy when everyone else is fearful."
5. You may be suprised to find out that your house is still gaining value despite the struggling economy. It differs from area to area, but I've had a few clients refinance and their appraisals came in decently higher than what they had purchased the home for 6 months to a year earlier.