Experts See Reason for Housing Optimism cbwesternregion | October 27, 2010 at 5:02 pm | Categories: Uncategorized | URL: http://wp.me/pLh36-7F

Click here for an interesting look at the nation’s economy and why there is reason for optimism on the housing front:

7 things to consider before selling your own home

There’s a lot more to it than just sticking a ‘For Sale by Owner’ sign on your front lawn.

By Aryeh Katz of Investopedia

 

more on Investopedia.com

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When it comes time to sell your home, doing the job yourself certainly has its appeal.

For one thing, think of the savings you’ll pocket — potentially tens of thousands of dollars or more — if you cut out the real-estate broker. But the headache and work involved may not be worth the savings for some.

Find out whether you’ll be able to sell your own home and what to expect if you choose this route.

Exposure
Your first consideration should be whether you can get the word out. Sure, you can put a sign on the lawn and make a number of relevant Internet postings, but be aware that you’ll be missing out on the following:

• An established real-estate brokerage will have a network that reaches far beyond the city or town where you’re located. In most cases, it can find qualified buyers both regionally and internationally and may even be retained by large corporations on the hunt for executive accommodations. These networks are well-budgeted and well-managed, and have a professional staff dedicated to generating sales for their clients.
   
• Most brokerages will pay for print advertisements in local and some national media outlets. They may also target and distribute circulars throughout your city. Consider the costs of doing this yourself.
• Real-estate firms have in-house marketing strategists who know what buyers want to see and can package your home appropriately, producing color photos, feature sheets and other materials for both brokers and potential buyers.

Not getting enough exposure may result in your property sitting on the market for a long time. If it sits long enough, you’ll likely be forced to sell at a lower price. A home that sits too long on the market can also become stigmatized, leaving you without any traffic. People think, “There must be something wrong with it if it hasn’t sold already.”

Market information
The real-estate market is dynamic, always in flux, with prices moving constantly — sometimes quickly, sometimes less so. If you can’t correctly gauge the market’s direction and speed, you may also fail to assess your home’s correct value. This effectively renders you “out of market” and results in you selling your home unnecessarily cheaply or — until you correctly assess its worth — overpricing it and waiting.

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5 tips to sell your home fast

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Contrast this with the instant access a real-estate agent has to home-sales information. Most real-estate offices are equipped with software that can generate instant comparative market analysis pricing, a system that takes the subjectivity out of the process and provides an immediate selling range. In active markets, this is an invaluable resource.

Negotiating ability
This may be the most oft-overlooked part of the do-it-yourself process, and one that should not be considered lightly. Do you possess the skills necessary to successfully negotiate the sale of one of your most valuable possessions? Can you effectively manage the process through to a close against a seasoned broker or real-estate lawyer?

Remember that you may be up against professionals who are keen negotiators and know the sales process well. They may suggest all sorts of terms and conditions that sound reasonable but really aren’t in your best interest. Even an unseasoned real-estate agent is likely to be aware of the implications of various terms and conditions — will you be?

Bing: Search & decide  Tips and tricks to sell your home fast Find a reliable real-estate agent  Tips for sellers competing against foreclosed homes

If you have never been involved in serious negotiations with savvy professionals, you are at a serious disadvantage. Your lack of experience could negate any of the benefits of having done it yourself.

Should you choose to have your real-estate lawyer negotiate the sale, the fees may be even higher than those of a broker; the tradeoff is that you may get a higher level of expertise.

Legal issues
Perhaps the most dangerous aspect of the home-selling process involves contracts and closings, for which you will require the services of an expert who understands contracts and can steer the process to a legally sound conclusion. Many closings have been marred by legal niceties that led to unexpected outcomes or, worse, lawsuits, and ultimately a failure to sell at a price and time of your own choosing. Unless you are a lawyer yourself, this is one aspect of the process that you should not undertake without professional assistance.

Value-added services
Large real-estate firms now offer numerous value-added services, such as pre-qualifying buyers for financing — and in some cases providing the financing itself. If you are not using such a firm, realize that your deal may wait until financing can be secured, and that time delays often produce buyer’s remorse — a condition that sees potential buyers talking themselves out of a deal the minute they walk out your door. Better always to lock the deal shut as soon as possible. That means having the resources at hand to do so.

What’s your home worth?

The eccentricity factor
Are you reducing the number of potential buyers because you haven’t listed with an agent? Some house shoppers will be apprehensive about engaging a “for sale by owner” simply because it’s not the norm. Anxieties and apprehensions will steer some people away from visiting your home. For a lot of buyers, an established brand name and a sales professional with polish are more palatable. Ask yourself whether your decision takes you outside the real-estate mainstream.

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Your time
There is little doubt that you can fill an agent’s shoes and sell your own home — but it will take preparation to do it successfully. How much time do you have? And what’s your time worth? In the end, you need to determine whether your investment of time and energy will be repaid by the commission you save.

A Family Affair: Tips for Buying a Multi-Generational Home that Makes Everyone Happy cbwesternregion | September 13, 2010 at 4:41 pm | Categories: Uncategorized | URL: http://wp.me/pLh36-7d

For many people, owning a home marks a significant step on the path to achieving the “American Dream.”  While the dream of homeownership has remained constant for countless generations, the profiles of home buyers, as well as the types of homes they are searching for, are ever-changing.   In fact, according to a recent Coldwell Banker Real Estate LLC survey, 37 percent of agents noted an increase in home buyers looking to purchase homes to accommodate more than one generation of their family.  These include homes with “mother-in-law suites,” garage apartments, refurbished basements, or other separate living areas.

Whether they are driven by financial reasons, health care concerns, a strong family bond or the desire to own a home that meets potential future needs, families who are looking to purchase a home with space for multiple generations can often find the process a bit overwhelming, especially if they have not lived together previously.  But, there are a few simple ways to limit stress and avoid damaging family ties.

• Determine your exact needs. Every family has their own specific needs when it comes to buying a multi-generational home.  Some may just want an extra bedroom or two for family members, while others will require areas with a separate kitchen, entrance, handicap accessibility or even a larger garage for additional cars.  Desired location may also be influenced by proximity to local hospitals, senior centers or schools.  A multi-generational family should determine their exact requirements before beginning the search.  Once the list of essentials is finalized, it’s best to contact a real estate professional who can determine if the expectations are realistic given the homes currently on the market.

• Be prepared to compromise. With several family members weighing in on their home-related preferences, there’s bound to be a few differences of opinion.  Looking beyond the necessities like the home’s layout and size, there may be disagreements on things like style, date of construction and overall feel.  The more people involved in the decision making process, the more difficult it may be to agree on all of the features of a future home, so multi-generational home buyers should be prepared to compromise.

• Speak with a real estate professional. A family who is purchasing a home with the intent to create separate living areas should speak with a local real estate agent who can advise them on how to inquire about city ordinances and zoning and building codes before closing the deal.  There may be laws or regulations in place that could prevent the buyer from turning the home into a multifamily unit or adding on to an existing property. And, while buyers may not plan to charge their family members rent each month, they should also research local laws and rent restrictions on second units that could prevent them from legally renting out or inhabiting a second dwelling down the road.

• Put everything in writing.  Families who are purchasing a home together should consider signing a written contract outlining who is responsible for everything from finances to chores and childcare.  Additionally, the family should delineate how assets will be divided should the living situation not work out or change.

• Take inventory of everyone’s belongings. Before joining households, each family member should make a list of the furniture they plan to keep and compare lists.  There may not be a need (or a place) for three televisions and two kitchen tables in the new house.  Consider selling unwanted pieces of furniture online, or holding a garage sale.  The money made can be put to good use on purchases for the new home.

Most importantly, be patient and give everyone time to adjust to the new living situation.  Even though buyers of multi-generational homes likely know each other well, they should prepare to be exposed to family members’ habits that they may not have been aware of if they were previously living in separate homes.  Multi-generational living will likely take some getting used to, but the more time families spend together the closer they may become, making their new living situation even more of a rewarding experience.

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New Figures Underscore Continued Modest Recovery

Figures released today by the National Association of Realtors are a good indicator that the market continues to improve – though at very modest levels.  I’ve been saying for months that the market is, in this post recessionary period, improving though will continue to do so with minor bumps in the road along the way.

Last month’s lower than expected sales figures were just that, a bump in the road.  We saw the slip partly due to seasonality and partly due to the expiration of the tax credit.

Now, one month later, we’re seeing numbers rise.  According to the National Association of Realtors’ Pending Home Sales Index, pending home sales rose 5.2 percent to 79.4 based on contracts signed in July from a downwardly revised 75.5 in June. 

According to Lawrence Yun, NAR chief economist, “Home sales will remain soft in the months ahead, but improved affordability conditions should help with a recovery,” he said.  “But the recovery looks to be a long process.  Home buyers over the past year got a great deal and buyers for the balance of this year have an edge over sellers.  For those who bought at or near the peak several years ago, particularly in markets experiencing big bubbles, it may take over a decade to fully recover lost equity.” 

Now of course this is a national perspective and we all know that real estate is local.  Locally we’re seeing some pockets of strength.  Some of the most sought after neighborhoods continue to see strong sales while those that may be challenged due to proximity to jobs and commerce, are seeing bigger lags. 

Overall what we’re seeing most is buyers want to take advantage of the low interest rates and realize that thanks to those rates, they have particularly higher purchasing power right now.  From a move-up buyer perspective, we’re seeing a lot of sellers consider selling right now.  Yes, they realize they may take a hit from the flurry days of the early part of the decade but when they compare it to what they can purchase on the move-up side and what their monthly payment will be, they truly see a benefit.  These indicators are really helping to drive our market right now.

The bottom line is, we are on a good recovery path.  And an interesting report this week underscores that.  Bankrate revealed numbers that provided a good look at consumer confidence. An overwhelming 90 percent of homeowners say they don’t regret buying their current home.  That is even in the face of stagnant – or sliding – home prices home owners have suffered.  It is comforting to see this number because regardless of where market conditions currently are, consumers continue to understand that real estate is a good, long term investment. 

Now, let’s hear what our local offices have to say:

• Boulder—New listings are up almost 12%, but sales activity is down almost 10%.  It looks as though there is an excess of properties and not as many buyers for them.  This is very noticeable in the amount of showings.  Showings are down over 20%.  This means that the market is saturated with homes for sale but the demand for these properties has dropped off in this period.  The showings reflect the sales activity in this case.
• Colorado Springs—Sales have been increasing for the past few weeks as buyers are taking advantage of low interest rates (under 5%).  Listings have also been increasing as sellers know that if they can get their homes sold they can become buyers & take advantage of low rates & move up to a larger home.  Overall, showings are down about 35% from last week.
• Conifer—There were three new listings in the Conifer office for the month of August. We also had three listings go under contract in August with five buyers put under contract.  A total of 117 showings and 5 previews for the month reflects a 60% improvement from the prior month.  Our showing activity is primarily in the mid-$200,000 to $400,000 range.
• Denver Central—Inventory continues to increase in the Denver Metro area and is just below 2008 levels but has increased 20% over 2009.  Inventory is still well below 2007 levels when it was at it’s peak.  We continue to see home appreciation in the Denver metro area but that could be attributable to the recent tax credit.  We could see appreciation tail off in the coming months with inventory increases.  Under contracts seem to have stabilized after the drop that we had after the tax credit deadline. The market is very neighborhood specific so it is important to be working with a professional that can educate & give you the proper advice to make the correct real estate decisions.  Over 50% of the home sales in the Denver metro area continue to be under $250,000.  If you’re looking to sell a home that is priced under $300,000, this is a great time.  We’re seeing improvement in the higher-end market & sales have increased.  This is definitely a great market to move up to a higher priced home.
• Denver West—Denver West has enjoyed closings in the $600,000, the $700,000 and even the $800,000 sales point. Many buyers are motivated & are taking advantage of these low interest rates. We’re experiencing many sellers buying up, yet renting out their current home since they can’t achieve the price they want. We’re also seeing a high desire to rent from former homeowners who lost their homes through short sales & foreclosures.
• Devonshire—Here we are at the end of summer & it seems that many people are out enjoying the last days before all of the fall activities get into full gear.  We can feel the angst in our buyers as they are struggling with proceeding to find that new home and take advantage of the wonderful low interest rates.  Inventory in some price points is slim. It seems that many buyers have decided to hold on until they feel that the economy is a little more stable.  A bright light seems to be in the upper price points where we have had more activity and actual closings than in the last few months.  We had the highest sale in the metro office in 2010, in the Devonshire office & we’re proud of Kelly Westergren for representing the buyer on that transaction.  Fall is historically a good time of year for us and we’re looking forward with excitement to see all the successes that fall will bring.
• Evergreen—We had a total of 19 new listings in August, with 9 listings under contract and 7 buyers put under contract.  Both are very similar to our July totals.  There was a total of 320 showings and 24 previews in the month which is a 30% improvement over July activity but still 7% below levels from Aug 2009.  Selling activity was predominately in the mid-$300,000 to $500,000 range.
• Longmont—Showings are holding very steady.  Homes being shown are still in a wide range of price points.  Move up buyers are in our market looking.  Financing is still an issue for buyers. Self employed buyers are having difficulties securing loans.  New homes in all price ranges are coming on the market & sellers are realizing that keeping their homes on the market longer will be necessary.
• North Metro—Fall is in the air, the kids are back in school and now is the perfect time to purchase a home.  We are seeing increased activity at Open Houses and in the number of floor calls coming to our office.  The average sales price has increased to $275,000 for homes sold.  We have 73 new homes listed this month as compared to 70 for last month and we’ve helped buyers and sellers close on 74 properties.
• Parker—Our listings and showings are down from the past week as families return from vacations.  Our market is still strong with buyers as the low interest rates (under 5%) make it likely that this trend will continue for a while.
• Southwest Metro—Showings have been steady but they’re still significantly down from June of this year as well as this time last year.  The buyer pool is waiting and we do not understand what they are waiting for as the interest rates are so great. We’re seeing good activity in homes over $300,000 & less activity in those below that amount. The first time buyers are not moving but are waiting.  Sellers are still ready to list their properties but are not realistic as to the value.  Everyone seems to be in a holding pattern waiting to see what is going to happen.  We’re sending out newsletters showing that this is a great time to finance a home.  Open houses have been good & a couple of agents did have several good buyer leads in the past two weeks.

In recent weeks, I’ve been visiting offices and getting updates on the market.  In this week’s edition of Weekly Market Watch I felt it appropriate to provide you with a Q&A with answers to many of the questions I am asked as I make my visits.  I hope you enjoy this edition of Weekly Market Watch:

1. What will the industry do to adjust to the new market demand or lack thereof?

• I think we’ve been adjusting in recent years as the market has struggled with the economic downturn.
• But at Coldwell Banker we’ve grappled with the challenging market by working to grow our business.
• We’ve launched a number of new initiatives, such as our relationship with Comcast, as well as CBConnect and more.
• We’ve instituted far-reaching new customer outreach campaigns both at the corporate level and through our agents.
• And we’ve launched more focused marketing campaigns, especially e-marketing, and deployed more advanced technology for our agents.
• Additionally, we’ve looked at this as an opportunity to recruit outstanding agents to join our team – people who have a strong track record of success and have been through these cycles.
• Although we’ve certainly had our challenges like everyone else, I’ve been encouraged by how we’ve weathered the storm and actually have grown business and market share in some regions.
• I guess I’m also optimistic that we’ve seen the worst of the downturn. Our market figures and reports from the field tell us things have improved tremendously over the past year.

1. 2.      How much more contraction can we expect?

• No one has a crystal ball, but the data I’ve looked at from our offices and the market in general tells me that we’ve seen the worst of the downturn and are heading back.
• I don’t mean to say that we’re back to normal – far from it. But we’ve seen solid improvement in many of our markets.
• Last year, much of the gains came from bargain hunters buying up foreclosures and other distressed properties…
• But since last fall, and especially this year, we’ve seen strong improvement in the mid-range and even some of the upper levels of the market.
• Our monthly million-dollar housing report found high-end home sales here in the Denver metro area jumped to their highest level in two full years in June.
• Still, I also realize that as much as we’d all like it, I don’t think we’re going to have a V-shaped recovery in the economy or the housing market.
• This rebound is looking like it will come in fits and starts – more of a stair step improvement than a straight line.
• We’ve certainly bounced sharply off last spring’s recessionary lows. But growth has slowed in the aftermath of the federal tax credit expiration.
• We also face economic headwinds in the months ahead – high unemployment, very slow GDP growth and consumer spending, and concerns about the debt markets.
• Nonetheless, I’m optimistic by improvement we’ve seen in sales in Colorado.
• Couple that with an improving stock market, affordable home values and record-low mortgage rates and I think you have a solid foundation for a steady housing recovery.

1. 3.      What continues to insulate or separate the Denver metro area from other markets?

• The Denver metro area’s housing market has long been one of the most sought-after– not only in Colorado, but across the country.
• The demand for housing here has historically been far greater than most other regions for a number of reasons:
  • First and foremost, the astounding entrepreneurial success that continues to spawn high-paying jobs and affluent employees looking for homes.
  • Also, there’s a tremendous quality of life here that few regions in the world can match – outstanding schools, a wealth of recreational activities, five-star restaurants…and so much more.
  • Also, we have some of the very best universities in the world here in Denver and in Colorado – institutions that are producing tomorrow’s entrepreneurs.
  • Buyers have always been willing to pay a premium for homes here, and sellers have historically received strong returns on their housing investments.
  • Our latest Denver million-dollar home sales report illustrates this point: Not only were sales up to their highest level in two years, sellers got on average 90% of their asking price.
• So while the Denver metro area has not been immune to the economic and housing downturn of the past few years, this region may be bouncing back stronger than other parts of the country.
• I would say that long-term investors who have waded into the market of late will be rewarded for their efforts with solid returns over the years.

1. 4.      What influence does the nation’s economic crisis have on real estate?

• It’s an interesting question.  It will be hard for the market to come all the way back to normal until we get our house in order, both in terms of the economy and what’s happening in the government.
• With a large budget deficit, the government must find a way to begin closing the gap. The only two ways of doing that are by cutting spending and increasing revenue – most likely both.
• Increased revenue will come as the overall economy recovers, but in the meantime it could mean increased taxation – perhaps sales and income tax.
• On the reduction side of the equation, closing the gap will likely mean job cuts and more unpaid furloughs of state employees.
• Both scenarios mean less disposable income for homeowners and potential homeowners to spend on housing.

While all of this will certainly have an impact on the housing recovery, I honestly believe it’s more than offset by the positives we’re seeing:  buyers taking advantage of record-low mortgage rates and attractive prices, as well as a slow but steady improvement in stock portfolios, the jobs picture and the overall economy.

Overall, the long-term future of real estate is bright.

As I mentioned in recent editions of Weekly Market Watch, we’re at a key inflection point in the market.  The government stimulus has been spurring the market on for more than a year and has since reached its limit.  The numbers released of late, however, still reflect home sales spurred by the end of the tax credit.

Now only time will tell and the next few months should be very interesting.  Essentially we’re about to see how well the housing market can fly on its own.  Fortunately, we have record low interest rates on our side.

The latest report from NAR gives a mixed picture.  Existing home sales in June fell 5.1 percent to a seasonally adjusted annual rate of 5.37 million units, from 5.66 million in May.  But, they are 9.8 percent higher than the 4.89 million unit pace in June 2009.

On a national level, Lawrence Yun, NAR chief economist, said “Broadly speaking, sales closed after the home buyer tax credit will be significantly lower compared to the credit-induced spring surge.  Only when jobs are created at a sufficient place will home sales return to sustainable healthy levels.”

But we all know, real estate is local.  And the latest local figures are showing an interesting trend.  This past week we released our Coldwell Banker Residential Brokerage Luxury Home Report.  Keep in mind, luxury homes have been one of the hardest hit market niches for months.  Our latest report, which analyzes data across the MLS, showcased luxury home sales in Denver metro area last month rose to their highest level in nearly two years.  A total of 67 homes sold for more than $1 million in June, up 22 percent from May and 3 percent from a year ago when 55 and 65 properties sold, respectively.  It was the highest level for luxury sales since 89 properties changed hands in August 2008.

Additionally, the median sale price of million-dollar homes in June was $1.34 million, up 4.7 percent from May’s $1.28 million median, but down 2.8 percent from the median a year ago of $1.38 million.  Home sellers received an average of 90 percent of their asking price, down from 93 percent in May but up from 87 percent last year.

What these figures show is that the high-end market in the Denver metro area continues to stabilize and improve.  With interest rates at historic lows and sellers pricing their homes very competitively, buyers have responded.”

The bottom line is that sooner or later, housing will come back.  While it will undoubtedly take the housing market some time to return to normalcy, it’s clear that all segments of the market are slowly but steadily improving following last year’s low point.  We saw it in the entry level last year as bargain hunters took advantage of attractive prices on distressed properties.  And now we’re seeing the middle and upper ends of the market bouncing back nicely.

But I’m encouraged by the progress we’ve made so far this year – even now – after the government stimulus has run its course.  I think we’re on the right track, but that’s no to stay the market won’t pause for a breather here and there.

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

• Boulder/Longmont— Boulder reports our inventory levels increased by 11%, while sales activity remained flat.  Showings are down significantly – 20% or 152 showings on a base of 753 showings during the previous two week period.  Agents in the office are active in showing and working with buyer clients. Agents report that they need to work with two or more lenders to get transactions closed.  Over all it is taking Agents longer to get clients to decide on properties.  Buyers still come into the marketplace believing they are going to get a great deal on the house of their choice.
• Colorado Springs— Showings seem to be picking up again as families return from their vacations.  We see that the listing of higher priced homes has picked up and buyers are now making offers instead of just looking.  With interest rates under 5%, this trend should continue throughout the remainder of the year.
• Evergreen/Conifer— Sales are still below the normal seasonal levels from prior years.  Three different listings were subject to multiple offers, two in the $200,000 to $300,000 range & one in the low $500,000.  About half of the buyers were local & half were out of area.  Buying activity included cash offers on REO properties to short sales to 2nd homes with price ranges from a low of $135,000 to a high of $900,000.  The majority of our activity remains in the lower price points.
• Denver Central – No information reported.
• Devonshire— Once again this week we’re feeling the uncertainty in the public even though interest rates are at historic lows.  With the jobs report not as strong as predicted, consumers seem to be undecided as to moving at this time.  Our showings were slower all last week but it’s interesting to note, they have picked up again this week.  We are delighted to report an increase in offers and showings in our homes listed above $600,000.  We have seen a month over month increase in closed sales in that upper end of the market so we are feeling cautiously optimistic.  The Spring surge is over & we are hoping that it is Summer vacations that are slowing real estate activity.  Let’s hope that August brings another flurry of real estate successes.
• Loveland— No information reported.
• North Metro— Even though it’s been quite hot, open house traffic is picking up as are our calls into the office for assistance with buying or selling.  We have seen a decrease in the number of new listings half way through July so far as compared to last year at this time.  Some sellers are still holding out, hoping to see values increase before putting their home on the market.  The number of buyer contracts has increased.  Agents are finding that there continues to be numerous short sale properties on the market.  Many of their listing appointments turn out to be short sales.  That’s ok!  Our agents are well versed & trained in handling the short sale process and are there to help if you are in this situation.
• Parker— Our showings are up about 20% the last two weeks, but still down from last month.  The low interest rates, under 5% are sparking buyers to get out and look.  We expect our under contracts to increase in the next couple of weeks.
• 

  Southwest Metro – Showings have started to increase although they are still down from earlier this year. We’re seeing increased activity as regards to our inventory.  Agents are still very busy with buyers however buyers are taking their time to make a decision regarding writing an offer.  We’re seeing activity slow down in the 1st time homebuyer market, due in part to the end of the tax credit.  Interest rates are great & buyers want to look at as much inventory as possible before making a decision. The number of  potential short sale listings are on the increase.  Open houses have been great and so have our floor calls.

Mortgage rates fall to record lows while consumer confidence moves higher

With the expiration of the federal tax credit, the housing market is facing a key inflexion point as we head into the thick of the summer vacation season. The government stimulus has certainly helped spur a rebound in the real estate market, but the recovery is fragile and observers are watching closely to see if the market can grow without the support of government aid.

Several key economic announcements out this week could bolster the nascent recovery. On Thursday, mortgage finance giant Freddie Mac announced that U.S. mortgage rates have fallen to a record low. Rates for 30-year fixed loans declined this week to 4.57 percent from 4.58 percent. That is the lowest since Freddie Mac began tracking rates in 1971.

While the overall level of real estate activity has eased in recent weeks with the expiration of the tax credit deadline, many economists believe that low mortgage rates will spur growth in the market by reducing borrowing costs for home buyers.  Mortgage interest rates have tumbled in the past two months as concern that a debt crisis in Europe may spread boosted demand for the safety of bonds, including mortgage-backed securities.

Meanwhile, Reuters recently reported that consumer sentiment rose in June to its highest level since January 2008 while reports of job losses were down sharply from a year ago.

The Thomson Reuters/University of Michigan’s survey of consumers, a key gauge of consumer sentiment, rose to 76 from 73.6 in May. The figure was above the median forecast of 75.5 among economists polled by Reuters.  At the same time, reports of job losses fell by half since last June, from 65 percent of respondents to 29 percent, the survey showed.

“The June 2010 survey recorded the most favorable news heard by consumers about jobs in five years,” Richard Curtin, director of the surveys, said in a statement.  But he cautioned that consumers “do not anticipate significant declines in unemployment during the year ahead.”

Consumer sentiment is seen as a proxy for consumer spending, which fuels around 70 percent of the U.S. economy.  Positive consumer sentiment is particularly critical to the housing market. If buyers are more optimistic about their future, they’re more likely to take out a mortgage and buy a home.

So where does this all leave us as we look at the Colorado housing picture? As reports from our local offices indicate, the market continues to be steady in most communities. But the recovery from last year’s recessionary lows will likely be a gradual one with its share of fits and starts along the way. Unemployment levels will play a key role in the recovery, as will the health of the stock market and the overall national economy.

While there are certainly economic challenges right now, for buyers with a long-term view, the current market provides an attractive opportunity to invest in real estate while mortgage rates are at historic lows and homes are priced very competitively.  Savvy buyers are taking advantage of this great combination of home prices and interest rates.

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

• Boulder/Longmont— Longmont reports buyers are looking!  The showings in Longmont are up 20% week over week. We are still experiencing showings in all price ranges.  Homes priced in the mid and upper ranges are among our top 10 shown for both weeks.  Interest rates are helping some buyers make that decision that now is the time to purchase.  Values are creeping up in select neighborhoods in our area…..how great to see!
• Colorado Springs— Listings have been steady to slowly increasing over the last ten days.  Showings have slowed down but sales are strong due to the still low interest rates (under 5%) which should continue for the next few months.
• Evergreen/Conifer— No information reported.
• Denver Central – No information reported.
• Devonshire— Happy 4th of July for Devonshire.  We’ve seen a definite slowing in activity in June after the buyer incentive concluded.  Now that the closing date for the tax credit has been successfully extended, we are hopeful that we’ll see the resulting closing activity.  Showings in June were down somewhat which historically  is not surprising.  We’ve seen activity pick up the last few days of June as buyers seem to realize that with interest rates at such historic lows they had better be making their buying decisions quickly. The upper end is finally seeing more activity & we’ve now seen several homes go under contract that have been sitting on the market for some time.  Sellers are tired of waiting for things to turn around & we may have some new upper end homes coming on the market in July.
• Loveland— The Loveland market is still seeing most of the showing and sales in the entry level price range.  Showing activity picked up 58% week over week.  This is a good sign that buyers are showing confidence in the economy as a whole.  Interest rates are a great reason to make that new home purchase.  Inventory in Loveland is down…prices on homes for sales should follow suit by increasing.
• North Metro— The North Metro agents have been very busy writing contracts and getting new listings.  We’ve seen our closings continue to increase with a 7% increase in June 2010 as compared to this same time last year.  Our Sold average price is up to $260,490 when a year ago it was $239,000.  We had 2388 showings on our 221 listings in the month of June.  This is an increase in traffic through the homes listed.  The CB North Metro office continues to have the market share in active inventory in both Broomfield & Adams County as well as the cities of Westminster & Thornton.  Give our agents a call to see what it is they do to differentiate themselves from the competition & get your home sold.
• Parker— Listings and showings have slowed down due to the July 4th holiday and because of family vacations.  There are still buyers out looking because of the very low interest rates (under 5%) which should continue for the remainder of the year.
• Southwest Metro – Showings continue to be rather slow these past two weeks.  There are numerous buyers who are just sitting on the fence for one reason or another.  Sellers are continuing to list their properties. Floor has been very good these past two weeks and open houses have been slow.  In spite of that, agents have been able to obtain some good leads.  We’re seeing an increase in showings in the higher range homes, $300,000 to $500,000 and less activity in the homes from $150,000 to $275,000.  There is a feeling that buyers are waiting for interest rates to continue to fall and they feel quite confident that they will.