Archive for February, 2010
Interest Only Loans, ONLY for a short time
Freddie Mac announced today that it will stop buying and securitizing Interest Only loans in September, because they have performed poorly.
What this means to buyers who these loans were really designed for?, is for the next 6 months, time to lock into these loans. Properly financed these are still a good option for the savy buyer who knows their finances. These are still for the people who know that adding principle to their monthly payment is the only way to pay down a loan. These ARM loans had initial low teaser rates, and were always guaranteed to go up.
According to Freddie Mac, nearly 72% of their outstanding interest only loans were made in 2006 and 2007, at the peak of the nations housing bubble, and more telling is that the loan to home value ratio is extremely high, at about 106%.
Originally these were for the financially savy borrowers, but over time, loan officers would pitch them to unsavy borrowers who only listened to what the amount of the initial 1st months payment, and they said “I like that first payment, I can make that one”, not realizing the payment would go up, and boy did some of those payments go sky high.
So, for todays savy borrower, who has money to put down, and knows the future of their payments, the next 6 months will be your last chance.
Call me to discuss your real estate situation, and IO ARM loan maybe for you? 303-888-2488
Zip Codes and the City of Littleton
There has been lots of confusion over the name “Littleton”, when referencing where a home is located. This document and link should give a better understanding with the different cities, and counties, that all have “Littleton” as a city name on mailings.
Link to City of Littleton site: http://www.littletongov.org/maps/zipcodes.asp, and you can print this same page from this spot: zip codes for Littleton.
So now you know more about why there is incorporated and unincorporated for Littleton. Comments are always welcomed, or call to discuss further.
BackCountry Interactive Map
Check out this great interactive site for where the models and homes to be built in BackCountry of Highlands Ranch.
http://backcountryco.com/map.php
Call me at 303-888-2488 to view in person, and as a buyer broker I can provide sound real advise.
Richmond Homes to begin building in BackCountry
Finally getting homes priced under the 500 barrier, Shea Homes announced that Richmond Homes will begin building in the northwest quadrant of BackCountry. Read more in their press release, here. Richmond building in BackCountry
To view these lots, and get a real estate agents perspective, call me at 303-888-2488
Pot House is Not a Laughing Matter
In light of the recent article of a man boasting his Marijuana grow house in Highlands Ranch, this is no laughing matter, and is a serious concern with houses. Here are our top 12 thoughts with regards to a marijuana grow house.
1. In Colorado it is legal to grow for medicinal purposes, but illegal federally.
2. Grow houses are like a typical clandestine drug operation, criminals come to mind.
3. Untrained operators ignoring health, safety, fire codes, and building codes.
4. Houses are never designed to handle chemical exposure, electrical output, waste streams and humidity levels.
5. High levels of ultrafine particles (UFP’s), carbon dioxide (CO2) and carbon monoxide.
6. Contaminants like tetrahydrocannabinol (THC), and delta-9-tetrahydrocannabinol (9-THC).
7. Heavily modified electrical needs to make a grow house, not done by a licensed electrician.
8. UV light from the grow lights, damage to all the floors, and or carpeting.
10. Waste products, dumped in backyards, or into the sewer system, along with the odor of marijuana.
11. Holes in walls, for ductwork or ventilation, excessive hooks in unusual locations.
12. Mold from all the humidity.
Please review this article by Caoimhin Connell, a forensic industrial hygienist: Marijauna and your Colorado Home
We always welcome your comments, or call me at 303-888-2488.
Littleton MLS Market Statistics for January 2010
Attached to this blog is the latest active and solds data for Littleton in January of 2010. A few comments about the data. Year over year, there was a 26% in the number of closings, but the average price has dropped 26% to $213,058. Average days on market had decreased to 65 days.
On the other end, the condos average price has increased a small 1% to $160,514 and the average days on market has dropped 40%, down to about 63 days.
Click here for the full stats and graphs: Littleton Home Sales, MLS statistics
To discuss your homes values, call me at 303-888-2488, or leave a comment.
Highlands Ranch MLS homes sales for Jan. 2010
Attached to this blog is the latest active and solds data for Highlands Ranch in January of 2010. A few comments about the data. Year over year, there was a 45% in the number of closings, but the average price has dropped 16% to $352,576. Average days on market had increased 17% to 100 days.
On the other end, the condos average price has increased 12% to $262,944 and the average days on market has dropped 17%, down to the same 100 days.
Click here for the full stats and graphs: Highlands Ranch January 2010 statistics
To discuss your homes values, call me at 303-888-2488, or leave a comment.
April Fools Day, not a good day for Jumbo Homebuyers
There are rumors and speculation of what the Fed will do come April 1, 2010, as the word on the street may be that they will no longer buy mortgage backed securities. This could translate into higher mortgages for the jumbo loans, those over $413,000. Advise: if you do not have tons of cash, but great credit, it would be a smart financial decision to lock in our low rates, now, as after April Fools, the conforming jumbos will get more expensive. We don’t know how high, but it is safe to say that the rates will not go down.
So with Denver’s already great values of homes on the market, along with historical low rates, now will the time to plan for your homebuying future.
As always, we welcome your comments, or call me at 303-888-2488 to discuss your situation.
December 2009 MLS statistics for Littleton
Attached you will find the latest residential and condo statistics for Littleton. Some things to note:
1. # of homes closed was up 25% from Dec 08 to Dec 09.
2. # of closed sales year to date, was down about 7%.
3. # of active listings dropped about 8%.
4. Average Days on market for condos decreased to about 76days.
5. Average price sold for homes was down about 14%, but condos was up about 10%.
Click on this link to view the graphs and details. ssc dec 09
Please comment, we welcome your input. Michael 303-888-2488
December 2009 MLS statistics for Highlands Ranch
Attached you will find the latest residential and condo statistics for Highlands Ranch. Some things to note:
1. # of homes closed was up 19% from Dec 08 to Dec 09.
2. # of closed sales year to date, was down 15%.
3. # of active listings is roughly the same.
4. Average Days on market for condos increased to 88 days.
5. Average price sold for condos and homes was up about 10%.
Click on this link to view the graphs and details. dhl dec 09
Please comment, we welcome your input. Michael 303-888-2488
If Buyers wait to Buy a home in Highlands Ranch, it will be more expensive
Those Buyers Who Wait To Buy in Highlands Ranch, Will Pay Thousands More This Spring
Waiting a few extra days or weeks to purchase a home this spring could cost buyers thousands of extra dollars as the office of Housing and Urban Development (HUD) implements several changes for loans guaranteed by the Federal Housing Authority (FHA).
This is all behind the scenes, and does not get the regular press, but for buyers who have the right information, this will save more money.
Coming just weeks before the April 30 deadline for the Home Buyer Tax Credit and just days after the March 31 expiration of the Federal Reserve Board’s mortgage backed securities purchase program (which has kept home loan rates artificially low for over a year), these FHA changes make it even more important to act now to save big.
Here are a few reasons why, call me if this is confusing:
On April 5th, the cost of required up-front mortgage insurance for loans guaranteed by the FHA will increase from 1.75% to 2.25%. For a borrower purchasing a $200,000 home with a $7,000 down payment, the up-front mortgage insurance will increase by $965. Up-front mortgage insurance is typically financed in the final loan amount so the impact to a monthly payment will be minimal but overall, the increase is still borne by the borrower both upfront and monthly.
Even though this next section should have been changed about 3 years ago, this will bring the values into a more realistic “net” price to the seller and the buyer. Later this spring, the amount of money that a seller can return to the buyer from their sale proceeds will be reduced from 6% to 3%. The reduction in these “seller concessions” can increase the amount of cash a buyer will be required to pay at closing by $6,000 for a home purchase of $200,000.
But the true cost to buy a home will not be so overinflated by this 6% cost. We have heard of many sellers who sold their home for “full price”, but forget to tell their friends that they paid 5%-6% in fees at closing to complete the sale.
There is only one way to avoid being affected by all of these costly changes that lie ahead – by getting a home under contract, soon, and to submit all FHA mortgage applications by the last week of March.
Call me at 303-888-2488 to discuss your situation.
