Lori Grunewald » Housing Market http://lorigrunewald.com/blog Broomfield Real Estate Thu, 12 Jan 2012 17:48:18 +0000 http://wordpress.org/?v=2.8.2 en hourly 1 Mortgage rates hold steady http://lorigrunewald.com/blog/index.php/2009/08/21/42.html http://lorigrunewald.com/blog/index.php/2009/08/21/42.html#comments Fri, 21 Aug 2009 12:48:34 +0000 LoriandLinda@yahoo.com http://lorigrunewald.com/blog/?p=42 I had an interesting chat with one of our Agents recently.  She mentioned that many of our sellers in the upper-tier price point are seeing the current strength of the Dow as a sign that their home will probably fetch more in the early part of next year.  Academically speaking, there is a belief that [...]]]> I had an interesting chat with one of our Agents recently.  She mentioned that many of our sellers in the upper-tier price point are seeing the current strength of the Dow as a sign that their home will probably fetch more in the early part of next year.  Academically speaking, there is a belief that there is a direct correlation between the housing market and the stock market.  But from an analytical standpoint, although the stock market and the housing market correlate well, there is a variable time lag.  The time lag between housing underperformance and stock market performance can vary widely.  The average is 18 months.

What we’re seeing, in some instances, is that some of the upper-tier clients are saying no to potential deals as they think if they wait another four to six months (thanks to the stock market’s recent gains) they may get more for their home.  And while I understand the reasoning, I would caution sellers on this strategy.  First, what we know is that in a “normal” market (of which this market is anything but), the average lag time between the two is 18 months (not four to six months).  It’s also important to point out that we probably aren’t out of the woods as it relates to the volatility in the stock market.  Many analysts are suggesting that our recovery will be “W” shaped rather than “V” so we may be looking at more changes ahead.

So while I understand the logic, I would caution sellers on this strategy and would ask them to focus less on the stock market and more on the level of supply and demand in their market and in their neighborhoods.  In most markets, the upper-tier price point remains relatively soft so sellers should consider most deals that are presented to them.  That’s not to say buyers should be throwing out unrealistic offers.  The real story here is that across the board we’re starting to see increases in interest and buyer activity so sellers may want to consider taking advantage of that interest…before it’s too late.

For those who are focused on the stock market, my best advice to you is to look at it more as an indicator for the economy as a whole.  With the DOW closing Thursday at just over 9,300, it may not be making housing prices go up, but it may mean that the recession is subsiding which is good news for us all.

Now let’s take a look at this week in real estate:

  • Boulder/Longmont—The Boulder office reported small but steady increases in all the Boulder county market numbers last week.  Listings were up by 12%, under contracts up by 17% (not bad) and showings up by 15%.  Two good things to note here, although showings are up, under contracts are up by a higher number.  Agents are also seeing no “end of summer” drop off of buyers yet.  It’s very unusual to see showings increasing as we approach September.  The Longmont office reports showing activity continues to increase.  The large increase in showing activity did translate into deals being written.  Twice as many offers were accepted this week over last week.  Listings also took a big rise.  We are seeing some good listings going on the market that are not short sales or foreclosures.  The upper end market still needs help.  The $8000 credit for 1st time buyers needs to have a matching program for the upper end market to get it moving too.  Loan issues continue to bring problems.  We need at least 30 days to make it happen – 45 days to close is much more realistic for all.
  • Evergreen/Conifer—Evergreen reported we had a total of two new listings for the week.   Three listings went under contract including one builder spec.  One local buyer, one from Denver and one Texas. Three buyers went under contract, two local one one from Oregon.  Three were a total of 81 showings during the week.  The week was close to normal level for peak season.  The majority of activity in three different price points – $200,000 to $250,000 for 1st time buyers and investors.  The $300,000 to $500,000 is strong and recent strong activity in the $500,000 to $1,000,000 range.  Conifer reports we had two new listings during the week.  One listing went under contract – short sale pending bank approval.  Showing activity increased to thirty-three during the week although that’s still below normal levels for this time of year.
  • Denver Central – We are seeing an increase in higher priced homes going on the market and receiving offers which is a positive sign.  The Denver real estate market continues to get positive national and local press each week.  We’re encouraged and excited about the future of real estate in Denver.  We’ve seen an increase in showings the first two weeks of August and it’s tracking better than July for showings.  Our August 2009 numbers are outpacing those of last year.  More buyers are taking advantage of the $8000 tax credit with the deadline fast approaching.  We’re seeing appreciation of home prices in several neighborhoods.  The lower-end market has certainly shifted to s sellers market with properties moving quickly.  Those that are priced aggressively are seeing multiple offer situations.  We’re also seeing an increase in cash offers on homes in the area.  Many in the lower end go under contract within days of being placed on the market.  The high-end market continues to be sluggish.
  • Devonshire— We seem to be in the August “hurry and take a family vacation” or “get ready for school” days.  Showing activity is steady but both sellers and buyers are distracted with other activities.  We are encouraging reevaluation of home prices, making price adjustments as necessary & freshening up both the interior & exterior of homes.  September is always a good month for us at Devonshire as our clients are ready to move forward with purchases so they can be settled before the holidays.  Mortgage rates are still attractive and consumer confidence seems to be sending somewhat of a positive message.  We are feeling very positive about the remainder of 2009 and look forward to 2010.
  • Douglas County—Our Southwest Metro office reports we had a great week of showings.  Open houses were very good this past week and we’re seeing a steady increase of sellers ready to list their homes.  Buyers, especially first time ones are looking to buy but the inventory is very low in the $250,000 range.  There has been steady activity in homes priced below $350,000.  We’re experiencing a slight increase in the $350,000 to $450,000 range.  We feel as an office that the public is ready to move forward to either purchase or sell a home.  The Agents are getting the message to their clients/sphere that the $8000 tax credit needs to be used before December 1, 2009.  The news on local TV channels has been positive and this has been a good tool to use on sellers & buyers.
  • El Paso County—Colorado Springs reports although sales activity has slowed down slightly, we still see a lot of activity on our listings which is also reflected by the strong increase in showings.  There is some uncertainty about some military personal relocating from Texas to Ft. Carson.  This relocation has been approved but now delayed after intervention from politicians in Texas.
  • Larimer County—The Fort Collins/Loveland offices reported the end of summer lull is here and families are getting the kids ready for school and the college students are rolling in from a nice summer break.  Showings were down dramatically last week and this is to be expected based on the time of year.  The good news is that there are still plenty of great homes to choose from and well priced homes are moving.  Ft. Collins currently has over 1500 single family homes and Loveland offers 1000 plus homes.  Come out and see the inventory.  You won’t be disappointed.  It’s hard to believe but we only have about 3 1/2 months left to take advantage of the $8000 tax credit.  It is unclear whether or not this program will be extended so take advantage of it while you can!
  • North Metro—The North Metro office is humming with activity.  We just received a letter from Bruce Zipf, President & CEO of NRT, that our office is in the Top 20% of offices for the 2nd quarter of this year.  The Agents deserve this recognition as their activity continues to be very high.  In the past month we’ve seen the price of our new listings increase from $275,000 to a current average of $325,000.  Showings are picking up on homes priced over $250,000.  We’ve put several homes under contract in the $400,000 to $650,000 range which is a recent change in our market.
  • Parker—Our listing inventory stays steady and although the showing activity has dropped slightly over the last week, sales activity has gone up consistently over the last few months.  Our closed transactions were up over 50% last month year over year and we are up 15% year to date compared to last year.  Douglas County was just rated #5 in the country for job growth and the towns of Parker and Castle Rock are #3 & #4 in most desirable places to live!
  • Southeast Metro—The SE Metro office is experiencing a slight decrease in showing activity which can be attributed to the start of the school year for the surrounding districts.  Our average days on market for listings is steady at 79 days and we are averaging 25 showings before a property goes under contract.  Inventory continues to drop and there continues to be a shortage of desirable properties below $250,000.  Luxury properties are seeing additional traffic as 10% of our Previews properties are currently under contract.
  • West Lakewood—The West office is seeing more sales in the over $300,000 price range.  Low appraisals are becoming less of a problem.  If a buyer wants to take advantage of the $8,000 tax credit, they should act now!  Do not wait!  There is a shortage of inventory in these price ranges.

This week I’ll leave you with a few good articles of note:

Until next week,

Chris Mygatt
Coldwell Banker Residential Brokerage Colorado

]]> http://lorigrunewald.com/blog/index.php/2009/08/21/42.html/feed 0 Why Louisville, Colorado Is One of the ‘Best Places to Live’ http://lorigrunewald.com/blog/index.php/2009/07/23/why-louisville-colorado-is-one-of-the-%e2%80%98best-places-to-live%e2%80%99.html http://lorigrunewald.com/blog/index.php/2009/07/23/why-louisville-colorado-is-one-of-the-%e2%80%98best-places-to-live%e2%80%99.html#comments Fri, 24 Jul 2009 02:02:02 +0000 admin http://lorigrunewald.com/blog/?p=25 Every year, Money Magazine selects 100 cities nationwide for their “Best Places to Live” annual listing. After being named the fifth city in 2005, Louisville, CO once again made the list, but this year it nearly topped it by taking the number three spot on the list of 100 best cities.

Originally founded in 1882 as [...]]]> Every year, Money Magazine selects 100 cities nationwide for their “Best Places to Live” annual listing. After being named the fifth city in 2005, Louisville, CO once again made the list, but this year it nearly topped it by taking the number three spot on the list of 100 best cities.

Originally founded in 1882 as a mining town, Louisville has grown into a modern, thriving city and is called “home” by over 19,000 residents. It maintains its historical charm by many of the downtown businesses that have been restored to reflect the original mining community. Located 25 miles from downtown Denver, Louisville is perfectly situated both far enough from the city to enjoy the beauty and relaxation of the countryside, as well as near enough to have a short commute or easy city outings.

Louisville, CO boasts a vast array of activities to accommodate both residents and visitors alike. With over 2,000 restaurants, 23 movie theaters, 54 libraries, 112 golf courses, 13 ski resorts, and 7 museums all in under a half-hour drive, it is bound to take more than a day to explore this charming city. A unique thing about this mid-sized town is that it is very easy to feel part of the community. Not only is everyone connected by the 26-mile wooded bike path that weaves through the town, but every Friday afternoon in the summertime the town gathers for the Louisville Downtown Street Fair, featuring live music and entertainment, craft booths, and delicious treats.

Although demand for homes nationwide has been steadily decreasing during 2007, Louisville has weathered the stormy waters of the current market. Even with more people selling than buying in Louisville, homes average time on the market is a mere 60 to 90 days. The average home price in 2006 was $322,812*, and although current housing costs are up slightly due to growing interest in the area, a wide variety of tastes and prices are available throughout the community. And, a plus for all homeowners is the low cost of property taxes, which in 2006 averaged only $1,986* a year.

This modern mining town even has its own unique blend of positive and negative factors in its economy. In the last two years, the median household income jumped from an average of $79,169 to $94,385, which was met with an increase in home costs, from $295,718 in 2005 to the present average of $322,812*. Much of the economy is based in the technology sector and the area is littered with Technology firms and businesses. Louisville, CO had a city-wide job growth of nearly 7% from 2000 to 2006, while most of the cities on the list of “Best Places to Live” experienced an average job growth of 13%*. Not to worry, however, because this mid-sized town in the Colorado mountains avoids the extreme ups and downs of the job market by maintaining slow and steady growth, making it truly one of the ‘Best Places to Live’.

* CNN Money Best Places To Live – Louisville

]]> http://lorigrunewald.com/blog/index.php/2009/07/23/why-louisville-colorado-is-one-of-the-%e2%80%98best-places-to-live%e2%80%99.html/feed 0 Tips for Mortgaging Your New Home http://lorigrunewald.com/blog/index.php/2009/07/23/tips-for-mortgaging-your-new-home.html http://lorigrunewald.com/blog/index.php/2009/07/23/tips-for-mortgaging-your-new-home.html#comments Fri, 24 Jul 2009 01:54:10 +0000 admin http://lorigrunewald.com/blog/?p=22 You’re close to finalizing the purchase of your new home. It’s getting near to closing time, and you’ve haven’t set up your mortgage yet. For most people, their houses are by far the most expensive purchases they will ever make. Sometimes the pressure that comes from deciding a proper mortgage can be taxing and draining, [...]]]> You’re close to finalizing the purchase of your new home. It’s getting near to closing time, and you’ve haven’t set up your mortgage yet. For most people, their houses are by far the most expensive purchases they will ever make. Sometimes the pressure that comes from deciding a proper mortgage can be taxing and draining, and if you’re not careful, you could end up paying for your bad decision, literally. In this article, we’re going to discuss several tips for mortgaging your new home that will help you get the most for your money.

If Possible, Pay Off Current Debt.

Credit card use has steadily increased throughout the the past several years, and many people are falling into the trap of having now, and paying later. The problem with credit cards is that their average interest rates are double that of interest rates for mortgaging a new home. If you can pay off some of the debt you have now, it will better serve your budget when you’re committed to paying for a house. You don’t have to pay off all your debts before you decide to purchase a home, but the more you can pay off now, the better you can use your money later.

Find a Trusted Reliable Bank.

When thinking about where you’ll be placing your mortgage, it’s important to find a reliable bank that you trust. If you’re going through a realtor, he or she will often a list of trusted banks with whom you can work. Also, it can also help to do your personal and business banking with the same branch that you have your mortgage. Often times you can get a small percentage break if they can take your mortgage payment directly out of your checking or savings account. Remember, a percentage break when we’re talking years of payments and thousands of dollars is a very important. Any discount you can get helps you in the long run.

Make Sure Your Mortgage is a Fixed Rate.

Some banks and mortgage companies might tempt you with a special start out interest rate with an extremely low percent, but be leery of accepting these offers. Fixed rates are more reliable in that you can always know what your payments are going to be, and you don’t have to worry about your payments ever spiking because of changes in the market. While fixed rates might seem higher at first, they’ll save you money long term.

Financing a new home should be an exciting experience, not a taxing one. If you follow these tips, you can be on your way to enjoying your new home!

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