Archive for July, 2010
Also, local prices rose 0.6 percent in May from April levels.
But both increases were below the average for the 20 U.S. cities tracked by the closely-watched Case-Shiller report from Standard & Poor’s.
The metro-Denver price increases came even though the deadline for new home puchase offers to be eligible for the federal homebuyer tax credit expired April 30. Homes that were under contract by then are still eligible for the credit, however.
Out of 20 cities covered in the Case-Shiller report, Denver was one of 13 that showed a year-over-year increase in prices in May.
In April, Denver saw a 4.4 percent year-over-year price increase, the largest of the last six months. As compared to a year earlier, Denver prices climbed 4.1 percent in March, 3.6 percent in February, 2.6 percent in January, 1.2 percent in December 2009 and 0.5 percent in November 2009.
November 2009’s rise was the first year-over-year home price increase in the Denver area since November 2006, according to a Denver Business Journal analysis of Case-Shiller data. Between those months, Denver had 36 straight months of year-over-year price declines.
As recently as early 2009, Denver was showing year-over-year home price declines of 5 percent or more, peaking at a 5.7 percent drop in February 2009.
As far as month-to-month price changes, Denver’s 0.6 percent price rise in May over the previous month followed a 1.7 percent monthly increase in April and a 0.6 percent rise in March. Before that, Denver experienced month-to-month price declines every month between September 2009 and February 2010.
For all 20 cities in the latest Case-Shiller report, home prices in May rose an average 4.6 percent from the same month of 2009, and rose 1.3 percent from the previous month.
“While May’s report on its own looks somewhat positive, a broader look at home price levels over the past year still do not indicate that the housing market is in any form of sustained recovery,” David Blitzer, chairman of S&P’s Index Committee, said in the Case-Shiller report. “Since reaching its recent trough in April 2009, the housing market has really only stabilized at this lower level.”
The report assigns index values to the 20 cities based on current average home prices in relation to what they were in January 2000.
Denver’s index for May was 128.24, meaning that prices were 28.2 percent higher than they were in January 2000. The 20-city average index was 146.43 for May.
Denver ranked 11th among the 20 cities in the May report in its rate of home-price growth over the previous year.
Keep in mind, these prices they base the statistics on are the full agreed upon price, not the net to the seller price. This can be up to 2-3% of the contract price.
For futher comments, call to discuss your situation at 303-888-2488
The only homes charging a fee are the high-end “Dream Homes,” which require a one-time $5 donation to see.
In another change, the local home show will feature residences in different communities, as it did last year, but those for-sale homes will be in a variety of price ranges ― starting at $188,900 and going to $6.3 million.
Last year was the first time the HBA staged the parade at multiple neighborhoods, because the recession has caused builders to cut back on the number of homes they produce. All the homes, like last year are ones that the builders had trouble selling. This will not be a “green” event as the public will be driving all over Denver to see the homes, and racking up lots of miles on their cars, and lots of fuel. Previously, the parade was at a single residential development, where you could save on gas, by driving tothe one neighborhood.
But the 2009 parade, called “The Denver Luxury Home Tour,” featured only homes selling for $1 million-plus in areas such as Cherry Creek Village, Stapleton, and Pradera and The Timbers in Parker.
“This broad range of new homes offers a price point for almost every category, from the first-time homebuyer, step-up buyer and empty-nester to the luxury, custom buyer,” Vicki Pelletier, the HBA’s vice president of operations, said in a statement.
This year’s parade will include 58 homes that are for sale throughout the metro area. Twenty-one area cities will be represented ― from Arvada and Broomfield to Castle Rock and Highlands Ranch ― and Aurora will feature the most homes, at 11. We have yet not calculated the miles you will incure to visit all the homes.
Of the parade houses, 25 are custom homes and eight are upscale Dream Homes with asking prices of $1 million-$6.3 million.
This year’s parade sponsors are Douglas County-based furniture-store chain American Furniture Warehouse and Wells Fargo Home Mortgage.
For a discussion of the homes to see, call me at 303-888-2488.
I wrote a quick blog on last years Denver Parade of Homes.
Five Colorado small cities are on Money magazine’s latest list of America’s 100 “best places to live,” with Fort Collins at No. 6, and Highlands Ranch at No. 12.
“Bikers and beers. In most parts of the country, those two elements may be reasons to move elsewhere,” Money says of Fort Collins.
“But in the foothills of Colorado’s Front Range, bikers mean cyclists: Fort Collins has 29 miles of well-used trails. As for beers, this town has become a high-end microbrew mecca. New Belgium Brewery (maker of Fat Tire) is based in this entrepreneurial town, and competitors are moving in.”
As for Highlands Ranch, Money says that the Douglas County community has “over 8,100 acres of open space, 22 lush parks and activity possibilities that span from hiking to golf. This unincorporated area outside Denver offers the best of the Colorado outdoors.”
Other Colorado cities recognized by Money: Broomfield, at No. 19, Loveland, at No. 33, and Arvada, at No. 58.
The magazine said it chose small cities for strong local economies, good schools, affordable homes and low crime rate, among other factors. Cites on the list range from 50,000 to 235,000 population.
The new No. 1 on Money’s list — Eden Prairie, Minn. — is “family-friendly … [and] has a dynamite economy, too,” Money says.
Rounding out the top 10: Columbia/Ellicott City, Md.; Newton, Mass.; Bellevue, Wash.; McKinney, Texas; Fort Collins; Overland Park, Kan.; Fishers, Ind.; Ames, Iowa, and Rogers, Ark.
For an overview of the housing in Highlands Ranch, give me a call at 303-888-2488
The following graph shows the high cost of waiting to buy a home.
You may be able to own a home for not much more than they’re paying in rent. Check the chart below to see how quickly rent payments that you are making add up, and not in a good way. Maybe it’s time for you to invest that money in something that lasts — a home of your own.
An example of the cost with rent of about $1500 a month over 3 years will be $54,000 which does not provide any equity advancement or contribution to your financial situation, it ALL just goes to help the landlord.
For many of my clients, the after-tax cost of a home loan could be less than the cost of rent. That’s because the interest portion of each mortgage payment may be tax-deductible. In most cases, property taxes are also deductible. As always, please consult a tax advisor for details that pertain to your situation.
If you are thinking about buying a home, we have several lender who can provide assistance. They have a range of financial options and affordable loan programs that can help qualified renters become future homeowners.
Call me at 303-888-2488 to discuss how to convert the rental payment to the mortgage payment.