November RE/Max Newsletter: Upswing continues for local and national housing markets

 

RE/MAX Cherry Creek Newsletter

 

November, 2012

Thanks for viewing our November newsletter! We hope you enjoy the content of this month’s edition.

 

What’s Happening Around Town?


Denver International Wine Festival
Wings Over the Rockies Air and Space Museum
Nov. 7-Nov. 10




The Nutcracker
Ellie Caulkins Opera House
Nov. 24-Dec. 24




Downtown Denver Grand Illumination
Downtown Denver
Nov. 23-Dec. 31




9News Parade of Lights
Downtown Denver
Nov. 30-Dec. 1

 

Featured Articles

Upswing continues for local and national housing markets

No time to wait: winterize your sprinklers and pipes today!

Let there be perfect light when selling a home

RE/MAX Cherry Creek Newsletter

 

Upswing continues for local and national housing markets

If home sellers need any more evidence that the local market is surging – other than the “sold” signs popping up around town like so many holiday wreaths — recent studies confirm the impression, here and around the country.

Colorado is among the top ten states with the strongest housing markets in the country. This is according to the CoreLogic Home Price Index, augmented by studies from 24/7 Wall St., an online investment analysis group. CoreLogic reviewed foreclosure data and other statistics, finding our state the 5th strongest housing market in the nation, just below Arizona, Idaho, Utah and South Dakota.

The median home price in the state is $240,000, an increase of 7.3% over the past year. Colorado home prices are expected to continue recovering at a rate of 3.7% between the first quarter of this year and the first quarter of next year.

The good news is spreading throughout the nation, with U.S. home prices jumping 3.8% over the 12 months ending in July 2012. This year-over-year increase “was the biggest in six years,” according to Associated Press.

In addition to rising home prices, builders appear to be more confident now than in recent years. In Denver, building permits issued during the first six months of the year were up 13.5% compared to the same period last year, according to the Denver Post.

“Site development plans, which are issued for larger projects, have almost reached the total number submitted for all of 2011,” the newspaper reported in September.

Through June, Denver issued 26,712 permits, “an increase of 3,185 from the same period in 2011.” The number exceeds the amount of permits issued through June 2007, before the recession hit.

Local market watchers are optimistic about what’s to come. “We are seeing steady month-to-month growth,” said Jeff Whiton, chief executive of the Homebuilders Association of Metro Denver. “…What people want to see is steady growth, and that’s what we’re getting right now.”

 

 

The vote is in: presidential elections don’t affect interest rates

If you’ve been waiting to lock in a mortgage rate, based on the idea that the Federal Reserve tends to lower rates near elections to sway the election, take note: past performance shows that elections have little bearing on interest rates.

According to Mortgage Almanac, which reviewed interest rates during election years as far back as 1992, “Looking back over the past several decades, it is evident that the Federal Reserve has adjusted its policy in response to economic, not political conditions.” A review of interest rate movements in past elections shows no relationship between the political year and lower interest rates.

For example, in 1984, interest rates increased steadily from January and through the re-election of Ronald Reagan. In 1988, interest rates held relatively steady when George Bush was elected president. And mortgage rates were decreasing in 1992 when George Bush lost to Bill Clinton.

In sum, there’s no evidence the Federal Reserve manipulates interest rates during election years. Furthermore, says the Almanac: “Whether interest rates are increasing or decreasing appears to have no impact on the outcome of a presidential election.”

 

 

No time to wait: winterize your sprinklers and pipes today!

With winter officially just weeks away, there’s no time to lose in making sure your home is secured for the months to come. It is particularly important to check and prepare your pipes for freezing weather. Some tips:

  • Know where your water shut-off switch is located. If a pipe breaks, it would be disastrous to wait for someone to come to your home to find the switch for you. In most single-family homes, the shut-off valve is in the basement or the crawlspace on a wall facing the street.
  • Turn off and drain automatic and manual sprinkler systems. If you don’t, the alternate freezing and thawing of the water still in the system can create cracks, resulting in silent underground leaks.
  • Turn off outdoor faucets. Make sure the faucet and outside portion of the pipes are fully drained. A valve inside some houses will shut off the water’s flow; then you can open and close the tap outside to release any water that remains in the pipe.
  • Insulate water pipes that may be vulnerable to the cold or have caused problems before. Check pipes near windows, which can quickly freeze. Consider wrapping pipes close to exterior walls or in unheated basements with pieces of insulation.
  • If a pipe has already frozen, thaw it as soon as possible or call the plumber for help. Note that when thawing, slower is better. Pipes warmed too fast may break. Remember to shut off the water first: you don’t want water suddenly gushing from the pipe when it thaws.

 

Let there be perfect light when selling a home

You’ve removed the clutter from your closets, staged every room to make it more appealing to the general public. You’ve even put cinnamon sticks on the stove, to make your home smell welcoming. But chances are, you’ve overlooked one of the most important elements when it comes to making a good first impression on buyers: the lighting in your home.

It may seem insubstantial, but the right lighting can add liveliness and sparkle to a home. Here are some suggestions from Realtor Magazine on how to make the most of your lighting when showing your home:

  • Use similar lightbulbs throughout the home. Choose clear light bulbs (they offer a cleaner look than opaque) and be sure all bulbs have the same wattage and type. Mixing bulbs can create a subliminally chaotic look.
  • Consider avoiding CFL bulbs. Although they are energy efficient, compact fluorescent bulbs are slow to turn on and emit a harsh glare compared to incandescent bulbs. This can create a less inviting environment as buyers enter a room.
  • If you use CFLs, buy soft white. It emits a more natural light than white.
  • Use the highest wattage possible in most cases: This will brighten up the home and increase the chances of a good first impression. (This doesn’t apply to wall sconces in the bathroom. There, a softer light is more desirable, rather than the harsh glare of higher wattage bulbs.)
  • Clean your light fixtures: You might not notice the dead moths and flies that have accumulated inside your light fixtures, but buyers will. Clean out fixtures, brush off lampshades, and wipe off spider webs from chandeliers.
  • Replace dated light fixtures: Remove brass fixtures, which are dated, replacing them with oil-rubbed bronze or brushed nickel. These can be purchased at discount stores for affordable prices.
  • Add a mirror: To give a bounce of light to a room, place a mirror opposite a lighting fixture. It will catch the light and also give the open feeling of a window.

 

RE/MAX Cherry Creek Newsletter

How to benefit when a home’s appraised value is higher than the purchase price

This month, we feature our continuing series in which we answer common questions regarding the loan process.

Today’s question:
If my property’s appraised value is more than the purchase price, can I use the difference towards my down payment?

A: Unfortunately, if you are purchasing a home, the lower of the appraised value or the sales price is used to determine your down payment requirement. However, many lenders allow a buyer’s closing costs (loan origination and processing fees, title insurance, credit report, appraisal, etc.) and prepaids (tax and insurance contributions to the mortgage escrow account) to be paid by the seller. Negotiating a purchase contract that accommodates a seller concession for these costs will leave more money in the buyer’s pocket for the down payment.

For more details on this topic, as well as all your lending questions, call or email Guild Mortgage today. Ask for Lisa Miles or Julie Whalen: 303-320-1556 www.guildmortgageofcherrycreek.com.

 

Thanksgiving thoughts

At this time of the year, with Thanksgiving just around the corner, we are inspired to count our blessings. This year, there are so many things Denver citizens can be thankful for: a state that offers natural beauty every season of the year, a city with a vibrant, eclectic culture, an economy finally on the mend, and most of all, wonderful family and friends who keep our spirits high in good and bad times. We want to wish all of you glorious holidays, filled with love and joy and the many blessings of the season!

Metro Market at a Glance

Residential Market Data*

Sep 2012 Aug 2012 Sep 2011 Vs. 1 year ago
Active 10,087 10,543 13,894 -27.40%
Under Contract 3,548 4,191 3,075 15.38%
Sold 3,147 3,730 2,610 20.57%
Avg DOM 64 63 99 -35.35%
Avg Sold Price $306,633 $311,893 $280,289 9.40%

Condominium Market data*

Sep 2012 Aug 2012 Sep 2011 Vs. 1 year ago
Active 2,142 2,177 3,245 -33.99%
Under Contract 909 1,005 772 17.75%
Sold 802 955 727 10.32%
Avg DOM 64 69 127 -49.61%
Avg Sold Price $186,843 $183,359 $159,980 16.79%

*Includes active and under contract. Based on
information from Metrolist, Inc. for the period 09/1/11 through 09/30/12. Note: This representation is based in whole or in part on content supplied by Metrolist, Inc. Metrolist, Inc. does not guarantee nor is in any way responsible for its accuracy. Content maintained by Metrolist, Inc. may not reflect all real estate activity in the area.

RE/MAX Cherry Creek Newsletter
RE/MAX Cherry Creek Newsletter

 

 

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