Is now a good time to buy a home in light of the Government Shut down ??

I have been asked a lot recently about whether now is a good time to buy a home, especially in light of the Government Shut down.  Will rates go up?  Will my loan close??

Regarding rates, they have actually dropped.  A continuation of a shut down would cause a significant panic in the market and likely cause investors to run to ‘security’.  Mortgage Backed Securities (MBS's) have traditionally been a great source for security as they’re private bonds.  If Uncle Sam is out of commission, MBS’s could be an even better safe haven for investors.  The current, historically low rates are a function of the uncertainty and fear in the market place.  More fear is likely to produce lower rates, not higher. 

It isn’t possible to provide a guarantee of a rate until you are under contract.  HOWEVER, there is still much good news to consider along these lines.  Rates have been historically low; one of the lowest in 70 years.   Rates are still very low (mid to low 4’s right now) so the difference in payment on the same loan.  

This is a good reason to consider moving sooner rather than later..  Economists are projecting rates in the mid to high 5’s within 12 months. While that will mean strong recovery and better than average appreciation in home value, it will also make homes a bit less affordable.  

IF YOU ARE THINKING OF BUYING, SOONER IS BETTER THAN LATER.

Why you should buy a home before 2014

2013 has seen a much welcomed relief in the Real Estate Market.  The year started off with quite a boom, as inventory reduced, causing pent up demand with Buyers scrambling to find properties.  It was quite common to see properties hitting the market and them having multiple offers and under contract the same day.  According to National Association of Realtors data, July 2013 experienced a phenomenal 17.2% year-over-year increase in the annual pace of home sales compared to July of 2012. Accordingly, the United States is on pace for the best year in residential home sales since the housing boom occurred in 2006.

SO WHY DOES THIS MAKE IT AN IDEAL MARKET TO BUY OR SELL ??

If the recession hadn’t hit in 2008, the yellow line shows how the market should have progressed.  The prices in 2013 are still below where they should be, but as the economy continues to progress, houses prices are recovering.  There has been a significant rise from 2011 to 2013 and forecasters are predicting this will continue upwards.

Here is a chart showing how mortgage rates changed since 1972. Once a 16.6% rate .. yikes! Mortgage rates have continued to fall and 2012 saw soon amazing rates. The rates today are CONV 30 YEAR FIXED - 4.25%/ 4.42% APR CONV 15 YEAR FIXED - 3.25% / 3.58% APR FHA 30 YEAR FIXED - 3.75%/ 4.02% APR FHA 15 YEAR FIXED - 3.25% / 3.59% APR We did see them go up, and drop a little, but they are forecasting this to rise in 2014.

(Conventional loans are based on $300,000 purchase price with 20% down with a 740 credit score and 43% debt-to-income ratio. FHA loans are based on $300,000 purchase price with 3.5% down with a 740 credit score and 43% debt-to-income ratio. Jumbo loans are based on $600,000 purchase price with 20% down with a 740 credit score and 43% debt-to-income ratio.)

Only time will tell how long housing prices and interest rates will remain so attractive. Sources : The Real Estate Word, Brian Icenhower, National Assoication of Realtors, Freddie Mac, Colorado Home Realty

- See more at: http://juliereddingtonrealestate.com/why-you-should-buy-and-sell-your-home-before-2014/#sthash.avfLEGZu.dpuf

Should you sell your home to a neighbor/friend thinking you are saving money?

Many homes are getting sold prior to officially going on the market these days. It can happen for a variety of reasons. Some are outright sinister and unethical. Even when done innocently and naively, it is a strategy that often causes you to put less money in your pocket than you otherwise would.

Here is a scenario that happened recently. Names have been changed for privacy.

John and Jane Smith called Shirley, an agent/realtor in my office. They wanted to sell their house. Jane had an associate at work (Peter) who was interested in buying the house. John and Jane wanted to know if Shirley could just “do the paperwork” to sell the house to Peter.

Shirley explained that they might be short changing themselves because Peter might not be the best buyer. True, there would be much less commission expense if Peter purchased the property without Shirley listing it. However, other and more motivated buyers might actually give John and Jane a higher net price.

John and Jane saw the wisdom of Shirley’s advice to list the house and have the friend from work see it the first day it came on the market. If Peter bought it, the fee due to Shirley would be fairly modest but Shirley would earn a full commission if another buyer purchased the home.

Peter saw the house on Saturday and made an offer on Sunday. Another buyer working with an agent also made an offer on Sunday.

The offer from this other buyer was much higher and provided John and Jane with more money in their pocket even after paying higher commissions! Additionally, this alternative buyer did not have a house to sell, while Peter needed to get his house sold before he could complete the transaction.

We know this is counter intuitive. However, as a general rule, you are always likely to get the very highest net price by fully exposing your home to the broadest possible market rather than having it viewed by only a selected buyer that you happen to know.

There can be very legitimate reasons why you’d want me to pre-promote your property and show it to some limited number of buyers prior to it officially hitting the market. However, for the most part, this is likely to be a technique we avoid except in special circumstances.

- See more at: http://juliereddingtonrealestate.com/short-circuited-promotion/#sthash.fZWNzkMt.dpuf

Highlands Ranch Market Activity

Highlands Ranch Activity in the last week

This Week

The median list price in HIGHLANDS RANCH, CO this week is $462,500.

Even though the days-on-market is trending higher, so is the Market Action Index at these inventory levels, providing a neutral outlook for the market.

Compliments of Homestead Title

Buying a Fixer Property

We have seen in the last 12 months a reduction in the number of properties for sale in Denver.  We have also seen a decrease in the number of Bank Owned and/or Distressed properties too. However there are still many properties out there which would appeal to you if you want to fix up a property.  If you are planning to live in the property, you have to careful about how you finance these type of properties.  The regular FHA program is probably out, you can do an FHA 203K where the loan includes money to do the repairs.  Conventional is an option where you have separate funds to do the repairs.  You should speak to a Lender to find out the best options for you

We have no idea what is in the 'shadow inventory' but it is good to be on the alert of new properties coming on the market.

If you would like to receive alerts of these types of properties, CLICK HERE

If you would like to see some examples, CLICK HERE

Looking for a Property with Mountain Views ??

One of the fabulous aspects to living in the front range in Colorado, is our amazing expanse of the Rocky mountains.  In fact it is quite impossible to get lost, you just look for the mountains and figure if you are heading north, south, east or west.

So it figures that 'views of the mountains' are a popular request when buyers are looking for a home.  

If you are in wanting a home with mountain views, or even city views, Click here to take a look at what is available

Denver Real Estate Stats for June

June - 2013 Real Estate Market Stats

Entire MLS (All Areas)

Residential Highlights:

• 11.4% increase in the number of closed sales year-over-year
• 19% increase in the number of closed sales year to date
• 39.4% decrease in average days on market (43 days in June)
• 16.7% decrease in # of active listings
• 22.3% increase in # of new listings (6018 new listings in June)
• 7.7% increase in average price - sold ($349,339 in June)

Condo Highlights:

• 22.8% increase in number of closed sales year-over-year
• 23.5% increase in number of closed sales year to date
• 41.9% decrease in average days on market (43 days in June)
• 12% decrease in #  of active listings
• 36.3% increase in # of new listings (1527 new listings in June)
• 9.1% increase in average price – sold ($198,040 in June)

information courtesy of Land Title

Based on Information from Metrolist, Inc. for the period Jan 2010 through present.Note: This representation is based in whole or in part on data supplied by Metrolist, Inc. Metrolist, Inc. 

does not guarantee nor is in any way responsible for its accuracy. Data maintained by metrolist, Inc. may not reflect all real estate activity in the market.

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