Briargate Real Estate Market Trends – Colorado

News for Briargate, CO - December 3rd, 2011 10:56pm
Investor Sales Surge

Posted By susanne On November 27, 2011 @ 1:04 pm In Consumer News and Advice,Home Owner News,Real Estate Information,Real Estate News,Real Estate Trends,Today's Marketplace | No Comments

Low home prices and strong demand for rental properties are causing a surge in investor buying, driving up the market share of homes purchased by investors.
According to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey, investor purchases hit 22.3 percent of closed transactions for the month of October, up from just 19.6 percent as recently as July. For the past three months, investor participation has exceeded 20 percent, continuing a long-term trend of increased investor interest in the housing market.

All-cash sales accounted for 29 percent of purchases in October, little changed from 30 percent in September and 29 percent in October 2010; investors make up the bulk of cash transactions.

> The National Association of REALTORS® reported recently that its survey of REALTORS® found that investors purchased 18 percent of homes in October, compared with 19 percent in September and 19 percent in October 2010. First-time buyers accounted for 34 percent of transactions in October, up from 32 percent in September; they were 32 percent in October 2010.

A combination of low home prices and growing demand for rental units make purchasing damaged Real Estate Owned (REO), fixing up the properties, and then collecting monthly rents, an attractive financial play, the Campbell survey reported. In October, average prices for damaged REO hit $101,100, the lowest price recorded in two years. In contrast, home prices for non-distressed residential properties averaged $266,700 in October. Distressed homes — foreclosures and short sales typically sold at deep discounts — slipped to 28 percent of sales in October from 30 percent in September (17 percent were foreclosures and 11 percent were short sales); they were 34 percent in October 2010.

One factor pushing down average home prices overall is the high proportion of distressed properties found in today's housing market. The total proportion of distressed home sales, as represented by the HousingPulse Distressed Property Index (DPI), rose a full 4 percentage points to 48.4 percent in October, up from to 44.4 percent in September.

Meanwhile, the gap between the supply of distressed properties and their absorption by first-time homebuyers widened to 13.7 percentage points in October, from a reading of 8.8 percentage points in September. This shows that first-time homebuyers have become less active in the distressed property housing market.

"However, in some areas we're hearing about shortages of foreclosure inventory in the lower price ranges with multiple bidding on the more desirable properties," says NAR Chief Economist Lawrence Yun. "REALTORS® in such areas are calling for a faster process of getting foreclosure inventory into the market because they have ready buyers. In addition, extending credit to responsible investors would help to absorb inventory at an even faster pace, which would go a long way toward restoring market balance."

Demand for rental units remains strong. Campbell Surveys estimates that 61.6 percent of investor properties purchased during the month of October will be rented out, with the remainder being flipped.

"Investors are prominent in the city of Las Vegas. They both flip and rent and buy properties in bulk. Renting single family homes is an extremely viable option and seems to be a growing trend in the valley with the decreasing of prices. Our inventory is dropping so we are seeing more investors becoming aggressive with their offers," reported a real estate agent from Nevada in the latest HousingPulse.

"Given the current conditions in the market here locally, many of the investors are purchasing homes to rent until the market turns around then possibly looking to sell in a few years. Yes, at this point renting homes is a better option than flipping because the gap between what an investor can buy a house, fix it and flip it does not cover the cost of re-selling it," added an agent from California.

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News for Briargate, CO - November 23rd, 2011 10:29pm
October home sales in Colorado Springs were UP 20.1% from 2010! The inventory of unsold homes was down 20.1% from last year, indicating sellers are staying on the sidelines. Currently we have just over a 5 month supply of homes on the market, which by traditional measures is a 'normal' market. With interest rates in the upper 3's, this is a fantastic time to buy a home!

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Market Bright Spot: October Existing-Home Sales Rise, Unsold Inventory Continues to Decline

Posted By susanne On November 22, 2011 @ 4:03 pm In Finance and Economy,Real Estate Information,Real Estate News,Real Estate Trends,Today's Marketplace | No Comments

Existing-home sales improved in October while the number of homes on the market continued to decline, according to the National Association of REALTORS®.
Total existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, rose 1.4 percent to a seasonally adjusted annual rate of 4.97 million in October from a downwardly revised 4.90 million in September, and are 13.5 percent above the 4.38 million unit level in October 2010.

Lawrence Yun, NAR chief economist, says the market has been fairly steady but at a lower than desired level. "Home sales have been stuck in a narrow range despite several improving factors that generally lead to higher home sales such as job creation, rising rents and high affordability conditions. Many people who are attempting to buy homes are thwarted in the process," he says.

"A higher rate of contract failures has held back a sales recovery.

Contract failures reported by NAR members jumped to 33 percent in October from 18 percent in September, and were only 8 percent a year ago, so we should be seeing stronger sales," Yun adds.

Contract failures are cancellations caused by declined mortgage applications, failures in loan underwriting from appraised values coming in below the negotiated price, or other problems including home inspections and employment losses. "Other recent factors include disruption in the National Flood Insurance Program, and lower loan limits for conventional mortgages, which paradoxically force some of the most creditworthy consumers to pay unnecessarily higher interest rates," Yun says.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.07 percent in October from 4.11 percent in September; the rate was 4.23 percent in October 2010.

NAR President Moe Veissi says consumers can increase their odds of obtaining a mortgage by being aware of how credit scores are determined. "If you want to get a mortgage, don't buy a car or take on new installment debt or credit cards," he says.

"Pay all your bills on time, maintain old credit lines and don't use more than 30 percent of your credit limit. REALTORS® can help you understand the issues surrounding access to affordable credit, in addition to helping you find the right home and negotiate terms," Veissi says.

An ongoing positive trend is a steady decline in the number of homes on the market. Total housing inventory at the end of October fell 2.2 percent to 3.33 million existing homes available for sale, which represents an 8.0-month supply at the current sales pace, down from an 8.3-month supply in September. Inventories have been trending gradually down since setting a record of 4.58 million in July 2008.

The national median existing-home price for all housing types was $162,500 in October, which is 4.7 percent below October 2010. Distressed homes — foreclosures and short sales typically sold at deep discounts — slipped to

28 percent of sales in October from 30 percent in September (17 percent were foreclosures and 11 percent were short sales); they were 34 percent in October 2010.

"In some areas we're hearing about shortages of foreclosure inventory in the lower price ranges with multiple bidding on the more desirable properties," Yun says. " REALTORS® in such areas are calling for a faster process of getting foreclosure inventory into the market because they have ready buyers. In addition, extending credit to responsible investors would help to absorb inventory at an even faster pace, which would go a long way toward restoring market balance."

All-cash sales accounted for 29 percent of purchases in October, little changed from 30 percent in September and 29 percent in October 2010; investors make up the bulk of cash transactions.

Investors purchased 18 percent of homes in October, compared with 19 percent in September and 19 percent in October 2010. First-time buyers accounted for 34 percent of transactions in October, up from 32 percent in September; they were 32 percent in October 2010.

Single-family home sales increased 1.6 percent to a seasonally adjusted annual rate of 4.38 million in October from 4.31 million in September, and are 13.8 percent higher than the 3.85 million-unit pace one year ago. The median existing single-family home price was $161,600 in October, which is

5.8 percent below October 2010.

Existing condominium and co-op sales were unchanged at a seasonally adjusted annual rate of 590,000 in October but are 10.5 percent above the 534,000-unit level in October 2010. The median existing condo price was $160,300 in October, down 1.5 percent from a year ago.

Regionally, existing-home sales in the Northeast fell 5.1 percent to an annual level of 750,000 in October but are 1.4 percent above October 2010.

The median price in the Northeast was $224,400, down 5.5 percent from a year ago.

Existing-home sales in the Midwest rose 2.8 percent in October to a pace of 1.10 million and are 19.6 percent higher than October 2010. The median price in the Midwest was $132,800, which is 4.7 percent below a year ago.

In the South, existing-home sales increased 2.1 percent to an annual level of 1.94 million in October and are 14.1 percent above a year ago. The median price in the South was $145,700, down 1.6 percent from October 2010.

Existing-home sales in the West rose 4.4 percent to an annual pace of 1.19 million in October and are 15.5 percent higher than October 2010. The median price in the West was $207,500, which is 1.6 percent below a year ago.

For more tips on ensuring a successful real estate sale in today's market, contact our office today at 719-244-2401 or email Ingrid.Anderson@Remax.net.

Copyright© 2011 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia... [ + Read Full Article ]

Home Matters - News & Information - April 21st, 2011 2:53pm
6 Steps to Ensure a Successful Real Estate Transaction in Any Market


RISMEDIA, April 7, 2011—Passively waiting for the right time to buy can cost you thousands of dollars and the home of your dreams. Attempting to time the market is one sure-fire way to miss the boat on your perfect house and/or the right investment opportunity that comes along the way.

What are savvy real estate buyers doing now to uncover real estate opportunities? Simply put, they are active. While they may not necessarily be buying, they are actively researching listings, viewing homes, staying up-to-date on market indicators and undertaking other proactive efforts to increase their chances of making the best purchase decision—whether that be today, tomorrow or later this year.

Consider the following steps to ensure a successful real estate transaction in any sort of market:

1. Ensure Your Goals Are Realistic. Be sure you are clear on what you want to buy, and why. Is it an investment property, a dream home or somewhere in between? As your criteria for that perfect home increases, you may have to pay a little more to have your standards met. Be prepared to weigh possible cost savings versus quality of life benefits. If an investment property, ensure you have cash flow in mind with an acceptable return on investment planned before you buy.

2. Know the Properties. No matter the market conditions, continue to search for the right property and view listings in person. Even if you are not ready to buy today, this will help you learn the market and the property available in your price range. When the right opportunity comes along and the timing works, you'll be best prepared to make an educated rather than emotional decision.

3. Know Your Financing Options. Many buyers want to find the "perfect" home before having their credit pulled, which can backfire when an offer is on the table and time is of the essence. It's wise to get pre-approved for a loan even before you view your first home, and to get a pre-approval letter in hand. Once approved, check in with your lender every few weeks to see how your rate and program are doing.

4. Know the Market at All Times. Have a detailed talk with your agent about the current state of the market at the onset of the relationship, and at regular intervals thereafter. Also discuss what can be foreseen up ahead. Your REALTOR® will have his or her finger on the pulse of the changing landscape and, thus, is an invaluable resource. On your own, locate information sources outside of mass media. Real estate markets follow basic fundamentals in the same way stocks do, offering infinite analysis possibilities.

5. Have a Purchase Game Plan. While it's certainly prudent to wait until you're comfortable executing a property purchase, it's imperative to know, in specific terms, exactly what economic indicators are impacting your decision and why. This will help it become crystal clear when it's time to make your move, and you can then do so with confidence.

6. Understand the Timeline. While great deals are certainly abundant in today's market, nobody said it would be easy to land one for yourself. Particularly on short sales and foreclosures, be prepared for bidding wars, bank delays and other challenges. Learn in advance the average timeline involved with each type of transaction based on prior 30 to 60-day statistics, so that you may strategically plan your efforts.

For more tips on ensuring a successful real estate sale in today's market, contact our office today at 719-244-2401 or email Ingrid.Anderson@Remax.net.

Copyright© 2011 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia... [ + Read Full Article ]

News for Briargate, CO - April 9th, 2011 10:33am
Today's News and Features
Tips to Ready Homes for a Swift Spring or Summer Sale
RISMEDIA, April 8, 2011-- Spring is traditionally the hottest season for home sales as families look to move between school terms, people have received their tax refunds, and the warmer weather makes moving easier. Sales tend to peak in April staying strong through June and July with over half of America's moves taking place in the summer. An uptrend in existing-home sales has continued as January 2011 sales increased 2.7% over last year and are forecast to keep rising throughout the summer, according to the National Association of REALTORS .

"Fierce competition exists even in a warming housing market due to an unusually large inventory of available homes," says Jeff Kaliner, co-founder and chief executive officer of a Pennsylvania-based remodeling group. "Homeowners must distinguish their homes from their competition and cater to a new crop of buyers looking for more energy efficient properties in order to make a sale."

It's a good idea to list a home early in the spring season. Here are a few tips to help you ready your home for a swift sale:

•Curb Appeal is Key: One of the quickest ways to draw buyers to a home is to increase its curb appeal. Simple fixes like updating a home's front door or siding can drastically impact its value. Also, choose neutral, modern colors that will appeal to a wide range of buyers when changing your home's facade. Popular color palettes include yellow siding with brown shutters, slate blue with black shutters or white siding with a red door. These combinations are classic yet modern and will highlight your home without distracting potential buyers.

•Maximize Interior Appeal: The easiest way to enhance your home's interior is to be sure that it is thoroughly cleaned and clutter free. Begin storing personal items to remove your personality from the home allowing potential buyers to envision themselves living there. Also, tackle items that have been on your 'to do' list like repainting dingy walls, removing wallpaper, repairing cracks and fixing dripping faucets and shower heads. Staging a home with new bedding, showy towels or a neutral coat of paint can make a huge difference in landing a sale.

•Buyers Are Looking for "Green:" Increasing a home's energy efficiency is one of the most cost-effective improvement options available to homeowners looking to sell. Updating insulation is a great 'whole house' approach to reducing energy waste, making the property more attractive to potential buyers. Energy efficient windows can reduce heat flow in the winter and solar radiation in the summer while protecting a home buyer's investment in carpet and furniture from fading due to sun exposure. Other simple greening tips include updating light fixtures with CFL bulbs, installing weather stripping around drafty doors and installing low-flow showerheads. Don't have the money to green your home before putting it on the market? Playing up your home's green potential can also help seal a sale. For example, if your house faces south or west it could be a great candidate for future solar panels.
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