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Denver home prices rose twice U.S. average | Inside Real Estate News

The Bailey House, located at 1600 Ogden Street...

The Bailey House, located at 1600 Ogden Street in Denver, Colorado. (Photo credit: Wikipedia)

 

Denver home prices rose twice U.S. average | Inside Real Estate News.

 

Interesting in depth article here, but I’ll highlight  few of the key points, in my opinion at least:

 

Denver-area homes appreciated 12.1 percent in 2012 from 2011, twice the national average. 

 

“It is an index,” he said, and not just a change in the average or median price of homes. “I don’t pay too much attention to average and median prices,” he said, as they are influenced by the mix of homes selling.

 

Buying is cheaper,” Thibodeau said. “After you have been in your home for three years, it is cheaper than renting, given the mortgage-interest deduction and everything. But you have to plan to stay in your house for at least three years.”

 

Thibodeau also said that low mortgage rates are here to stay.

 

In fact, he said he doesn’t expect mortgage rates to skyrocket again in his lifetime.

 

He said he expects that Denver-area homes could rise another 6 percent or so this year from 2012.

 

Thibodeau said that Colorado homes did not have a bubble during the great recession.

 

“From peak to trough, Colorado homes fell by 14 percent,” Thibodeau said. “A 14 percent drop is painful, but not a bubble. There was no bubble in Colorado.”

 

Formerly battered real estate markets such as Miami and Phoenix are currently staging big percentage gains.

 

Miller’s “bottom line” projections include:

 

  • User activity will remain strong — Landlord market coming soon.
  • Investment activity to stay strong.
  • Overbuilding not likely.
  • Built-to-suit activity to continue.

 

Read the full article here: http://insiderealestatenews.com/2013/02/denver-saw-no-bubble/#more-22160

 

 

 

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Colorado MetroList September Stats

 

4 Strong Reasons to Buy a Home Now

1. The price is right. The median single-family home price hit its lowest in more than a decade when it reached $154,600 in January, according to the National Association of REALTORS®. That was the lowest since October 2001. During the height of the housing market in July 2006, the median home price for a single-family home was $230,900. 

2. It’s cheaper to buy than rent. In nearly every major metro market, it is cheaper to buy a home than rent. Rents have been on the rise the last few years and are predicted to continue to rise. Meanwhile, home affordability is at record highs, which means that buying a home is more within reach to the median income family. 

3. Inventories of for-sale homes are shrinking. Ned Davis Research estimates that excess inventories of homes to be eliminated by the end of next year. “When excess supply dries up, people start building more new houses, which has the virtuous effect of reducing the unemployment rate and increasing the economy generally,” according to the USA Today article.

4. Mortgage rates are at record lows. Mortgage rates have hovered near record lows for weeks, which has helped pushing housing affordability higher. For example, the average 30-year fixed-rate mortgage, which is the most popular among home buyers, is 3.59 percent, according to Freddie Mac—just above its record low set on July 26 of 3.49 percent average. “It’s conceivable that at some point in the next 30 years, your interest rate would be less than the rate of inflation,” writes Waggoner for USA Today.

Source: “If You Can Pull it Off, a House is a Smart Investment,” USA Today (Aug. 9, 2012) 

Denver home prices predicted to rise 3.3% this year

Colorado Home Prices Predicted to Climb

Veros Real Estate Solutions, a leading private forecaster for the mortgage industry, projects home prices will appreciate in Colorado over the next 12 months. Helping boost this projection is was Freddie Mac reported new record lows for fixed U.S. mortgage rates. The average on the 30-year loan dropped to 3.62 percent- the lowest since long-term mortgages began in the 1950s. This will provide prospective buyers with more incentive to brave a modestly recovering housing market.

Veros predictions bolster a rule of thumb that every housing market is different and is contingent upon its own specific economic factors.  A look at Veros’ forecasts of the top five major U.S. metropolitan housing markets in the coming year:

Strongest:

1.    Phoenix-Mesa-Scottsdale, Ariz., 6.4%

2.    Boise City-Nampa, Idaho, 3.8%

3.    Boulder, Colo., 3.6%

4.    Bismark, N.D., 3.5%

5.    Denver-Aurora, Colo., 3.3%

read the full article here- Colorado Association of Realtors.

Rising Home Prices: Coming to a Market Near You | Trulia Pro Blog

Rents Keep Marching Upward

Rental demand remains strong, with rents rising 5.6% nationally year over year. One reason for this continuous climb is job growth, as the metros with the largest rent increases tend to have fast job growth, like San Francisco and San Jose. But another reason why rents keep going up is the decline in homeownership: foreclosures forced some owners to become renters, while tight credit and the weak job market put homeownership out of reach for many others. The result: rents have risen even while prices were falling, and now that prices are rising, rents are rising even faster.

Note: Rankings based on the year-over-year changes in asking rents among the largest U.S. metropolitan areas.

via Rising Home Prices: Coming to a Market Near You | Trulia Pro Blog.

Rising Home Prices: Coming to a Market Near You | Trulia Pro Blog

Not only are rising prices starting to look like a real trend: they’re also coming to a market near you — if they haven’t already. Asking prices increased year-over-year in 44 out of the 100 largest metropolitan areas, with Miami and Phoenix leading the charge.

Why these markets? One factor is job growth, which boosts housing demand. Miami, Phoenix, Warren-Troy-Farmington Hills (suburban Detroit) and Denver all saw strong employment gains in the past year. Another factor is the big price declines after the bubble, which attracted house hunters and investors searching for bargains to those markets. Most of the metros with the largest price increases in the last year had huge price declines during the bust, including Phoenix, Warren-Troy-Farmington Hills and the four Florida metros in the top ten. But among the metros with the largest price declines over the past year, only three–Sacramento, Las Vegas and Fresno–had huge overall price drops after the bubble burst.

 

 

 

via Rising Home Prices: Coming to a Market Near You | Trulia Pro Blog.

Cash buyers in the market

All-cash transactions are becoming the common way for investors to buy investment and vacation homes with roughly half of all investment buyers paying cash in 2011 and 42 percent of vacation home buyers paying cash. Dr. Yun points to tight credit conditions for the decline in owner-occupant purchases.

Half of all investment home purchases in 2011 were distressed homes, as were 39 percent of vacation homes. The median investment home price in 2011 was $100,000, up 6.4 percent over the year, while the median vacation home price was $121,300, down 19.1 percent.

“Clearly we’re looking at investors with financial resources who see real estate as a good investment and who aren’t hesitant to use cash,” Dr. Yun said.

Dr. Yun also pointed out that for investment and vacation home buyers that used mortgage financing, the median downpayment was 27 percent in 2011.

Home Sales on the Rise: Ready for Spring Buying Season?

Existing-home sales rose 4.3 percent in January to a seasonally adjusted annual rate of 4.57 million, marking the third gain for home sales in the last four months, the National Association of REALTORS® reports.

“The uptrend in home sales is in line with all of the underlying fundamentals – pent-up household formation, record-low mortgage interest rates, bargain home prices, sustained job creation and rising rents,” NAR’s Chief Economist Lawrence Yun says.

While sales ticked up, inventories of for-sale homes also continued to show improvement, NAR reported. At the end of January, total housing inventory fell 0.4 percent to 2.31 million existing homes for sale, which represents a 6.1-month supply at the current sales pace.

Unsold listed inventory has steadily dropped since reaching a peak of 4.04 million in July 2007. It now is 20.6 percent below where it was a year ago, NAR reports.

English: Mortgage rates historical trends

Image via Wikipedia

Housing Affordability Improves

As home prices have fallen and mortgage rates at all-time record lows, housing affordability is at some of its highest levels on record.

“Word has been spreading about the record high housing affordability conditions and our members are reporting an increase in foot traffic compared with a year ago,” says NAR President Moe Veissi. “With other favorable market factors, these are hopeful indicators leading into the spring home-buying season. We’re cautiously optimistic that an uptrend will continue this year.”

The national median existing-home price for all housing types in January was $154,700, which is down 2 percent year-over-year.

Distressed sales, which tend to sell at steep discounts, continue to hamper home prices nationwide. Foreclosures and short sales accounted for 35 percent of all January home sales, which is up slightly from 32 percent in December.

Still, “home buyers over the past three years have had some of the lowest default rates in history,” Yun said.  “Entering the market at a low point and buying at discounted prices have greatly helped in that success.”

Contract Delays, Cancellations Remain High

Twenty-one percent of NAR members in January reported delays in contracts, and 33 percent said contracts fell through, according to NAR. The number of contract cancellations remains mostly unchanged from December.

The increase in the past year of contract cancellations or delays has been blamed on more lenders declining mortgage applications from stricter underwriting standards and low appraisals coming in under the agreed upon contract price.

Source: National Association of REALTORS®

Culprit Behind Falling Home Values?

Study Reveals Main Culprit Behind Falling Home Values

Daily Real Estate News | Friday, February 03, 2012

Blame it on distressed sales for falling home values, according to CoreLogic’s December Home Price Index.

Home prices nationwide dropped nearly 5 percent from 2010 to 2011, but if you exclude distressed sales, prices dropped only by 0.9 percent, according to CoreLogic.

Foreclosures continue to hamper neighboring property values.

“Until distressed sales in the market recede, we will see continued downward pressure on prices,” Mark Fleming, chief economist of CoreLogic, told AOL Real Estate.

The states that saw home prices decline by the largest amounts since the housing peak are Nevada, Arizona, Florida, Michigan, and California. All five states have a high rate of foreclosures too. Nevada, which has the highest foreclosure rate in the country for the last several years, saw home values fall 60 percent since the peak.

Source: “Distressed Sales Undercut Home Prices in 2011, Study Says,” AOL Real Estate (Feb. 2, 2012)

Fluctuating home prices: What causes this?

Fluctuating home prices: What causes this?

Real estate prices are constantly moving up and down. Almost always, home values appreciate in the long term. But, of course, in real estate there is always a certain amount of risk.

When your property appreciates you have more equity to borrow against, and you’ll create a greater profit when you sell. Property values in the area shift for many different reasons, so how do you know what you’re buying right now won’t depreciate the day after you close? The most important thing is that you select a real estate agent in your area who knows the factors that influence local prices.

Let Legacy Real Estate Group help you with your first home purchase in Longmont Location in a community – Most people want homes in the areas with the easiest access to features, such as our work and schools. So when it comes to retaining their value, these regions often appreciate better than others.

Recent sales – Your real estate agent should provide you with figures on the recent real estate sales in the districts that you’re asking about. You’ll want to know average time on market, selling versus listing price and more.

History of appreciation – In the last 5 to 10 years, have home prices increased or decreased? Does location or affordability affect how desirable the neighborhood is believed to be?

Local economy – Is there a good blend of job types in an area, or does it count on just one industry? Have businesses moved into or away from an area? Are local businesses hiring? Each of these items plays a part.