Colorado's a Great Place to Live!

The metro Denver area IS a great place to live. Not only do we have a great climate, friendly people and easy access to the Rocky Mountains, but our economy is pretty health in comparison to other areas. We're enjoying lower unemployment than the national rate. According to the Metro Denver Economic Development Corporation, our unemployment rate fell from 6.9 percent in September 2009 to 6.6% percent in October.

The real estate market is significantly stronger than it has been in previous years as well. According to RealtyTrac, Colorado foreclosures fell 18.75 percent from September rates during October 2009. The foreclosure rate is also down 6.08% from a year ago. Additionally, according to the National Association of Realtors (NAR), the Denver-Aurora-Broomfield metropolitan statistical area was among 30 areas that reported an increase in median home price between the third quarters of 2008 and 2009. The increase was also the first reported for Metro Denver in two years and contrasted with an 11.2 percent over-the-year decline in the nationwide median.

Metro Denver home sales rose 2.9 percent between September and October. Improvements in home sales have also helped stabilize home prices in Metro Denver. The October average sales price for single-family homes increased 4.6 percent over-the-year.

Things are improving in the Centennial state! On a lighter note, here's how you know you belong in Colorado:

1. 98% of Americans scram before sliding off an icy road into the ditch. The other 2% are from Colorado, and they say, "Hold my soda, and watch this!"

2. You're from Colorado if you'll eat ice cream in the winter.

3. When the weather report says it's going to be 65 degrees, you shave your legs & put on a skirt and a sleeveless top.

3. It snows 5 inches and you don't expect school to be canceled.

4. You'll wear flip flops every day of the year, regardless of temperature.

5. 'Humid' is over 25%.

6. Your sense of direction is: Toward the mountains and Away from the mountains.

7. You think that May is a totally normal month for a blizzard.

8. You buy your flowers to set out on Mother's day, but try and hold off planting them until just before Father's day.

9. You plan your Halloween costumes around your coat.

10. You know what the Continental Divide is.

11. You went to Casa Bonita as a kid - 1and as an adult.

12. You've gone off-roading in a vehicle that was never intended for such activities.

13.You always know the elevation of where you are.

14. You wake up to a beautiful, 80 degree day and you wonder if it's going to snow tomorrow.

15. Everybody wears jeans to church.

16. You actually know that ** South Park ** is a real place not just a show on TV.

17. You know what a 'trust fund hippy' is, and you know its natural habitat is Boulder.

18. You know you're talking to a fellow Coloradoan when they call it Elitch's, not Six Flags.

19. When people out East tell you they have mountains in their state too, you just laugh.

20. You go anywhere else on the planet and the air feels 'sticky' and you notice the sky is no longer blue.

Yes, the Denver area's a great place to live!

References:
Colorado Department of Labor
Metro Denver Economic Development Corporation
http://www.metrodenver.org/metro-denver-economy/monthly-summary

Good, Bad or Ugly - Or all Three?

The common wisdom is that the current real estate market is “bad”. But bad for who? The fact is that the market is actually GREAT for quite a few people!

Here’s the “bad” part:

According to a report in the Denver Business Journal http://denver.bizjournals.com/denver/stories/2009/11/23/daily25.html?surround=lfn , about 19% of Colorado homeowners actually owe more than their homes are worth in the current market. Its even worse in the Denver metro area , where the percentage jumps to 22% - almost one quarter! How can this happen?!

Two ways. The worst because we as individuals, can’t really control it, is the decline of home values over the last 2-3 years. High foreclosure rates literally sucked the value out of many neighborhoods. Aurora, was one of the hardest hit, especially in the 80011, 80012, 80013, 80017 and 80018 zip codes.

The other way homeowners become “upside down” is through high “loan to value” mortgages – the ones that were very common in the latter half of the decade. Some lenders were loaning MORE than 100% of the value of a borrowers home! So those people STARTED OUT underwater, and the only way they could ever hope to come out ahead is if property values soared. THAT didn’t happen. Some people also have mortgages that add to, instead of subtract from the amount originally borrowed as the years go on. This is called “negative amortization” and it happened to many homeowners who had “choice” loans, where they had four payment choices each month. If they made the choice to make the lowest available payment, their loan principal actually increased for that month. And, of course, we all know about the effects of ARMs (adjustable rate mortgages). Some people’s loan payments have doubled when their mortgages adjusted!

All of this makes for tough times for current homeowners. Those that can wait out the cycle will see their values return, and even grow. History has shown that real estate in the Denver metro area follows cycle that lasts about 20 years. In some segments of the market (e.g., homes under $250,000, north Aurora, SW Denver) we are actually seeing prices begin to climb again. Investors and first time homebuyers pushed values upward as they bought up low priced homes and took advantage of the $8000 tax credit. Still, homes in many areas of Aurora, are selling well below what they were three years ago. Higher valued homes in SE Denver, Parker, Centennial and Highlands Ranch are seeing values stay flat, or fall slightly. Homes in the $600,000 and up range are sitting on the market for 2 years or more! Many people, who want to sell, but don’t really need to, are (wisely) waiting for prices to come back up again. Yes, for some people, the market is “bad”.

But if you’re looking for a home or investment property to buy, you really couldn’t ask for a BETTER time! Interest rates will likely never be lower and home prices are still down. The upward portion of the real estate cycle is still ahead of us. The first time homebuyer tax credit ($8,000) and repeat homebuyer tax credit ($6,500) add even more incentive. If we get the inflation that many experts are predicting, you’ll be paying back money you borrow today with cheaper dollars in the future.

Your Castle Real Estate (www.yourcastle.org) offers free real estate trends classes around the metro area from time to time. We give you a real world look at what’s really going on at the neighborhood level all around the metro area. Visit my website at www.myrealestateladyonline.com and drop me an e-mail to be included on the e-mail notification list for upcoming classes.