Colorado

Up and Down We Go, Where We'll Stop Nobody Knows...

Inspired by Jerry Murphy's post on the Phoenix market yesterday, I decided to take a look at Denver.

October was the second month in 2009 where sales were actually higher than in 2008. Although total volume is significantly down compared to last year, we are seeing a lot of activity with properties priced below $200,000. A lot of that activity is due to investors snatching up the REOs And while there is good reason to suspect the tax credit for boosting sales, there is no clear evidence to support that in the Denver Market.

Overall, the outlook doesn’t seem to follow any meaningful pattern. Compared to one year ago, active listings are down, under contract is up, sales volume is down, and average price is up. The yo-yo effect could be due to almost anything in this market. There are so many variables in play it’s hard to predict genuine consumer trend that isn’t influenced by the many subsidies and incentives that have come on in the last year. With the tax credit extended, we’re likely to continue the roller coaster ride for a while.

Most locals agree that we have at least leveled off at the bottom of the market and may even be moving toward recovery. But with the tax credit extended, we may continue the roller coaster ride for a while.

Here are the numbers for October:

Single Family (Res + Cond)*

• Active listing inventory was 8,945 at the end of Oct 09
  • Down 4% versus prior month
  • Compared with Oct 08, this represents an 18% decrease
• Under contract listings were at 4,910 units
  • Down 6% compared with prior month
  • Up 9% compared with same month year ago
• Sales volume (units) totaled 3,958
  • Up 3% compared to last month
  • Down 8% compared to Oct 08
• Year-to-date (YTD) sales are down 15%
  • 41,683 units sold YTD 08 vs 35,512 units sold YTD 09
• Average sales price was $238,807, down 5% compared to prior month
  • 3% increase from Oct 08, $232,284 avg price

Residential*

• Available inventory was at 14,376 active listings, down 4% compared to prior month
  • This represents a 19% decrease from same month year ago
• Under contract listings decreased 6% to 3,800 from Sep 09 figures, and were up 4% compared to Oct 08
• Sales were up 2% from month ago to 3,052 units sold
  • Compared with Oct 08, units sold dropped 10%
• YTD sales (units) were down 15%
  • 33,048 units sold YTD 08 vs 28,035 units sold YTD 09
• Average sales price was $261,771
  • Down 4% compared with Sep 09, $261,771 avg price
  • Up 5% versus Oct 08, $250,172 avg price
• Median sales price was $222,000, down 1% versus prior month, and up 8% from Sep 08

Condo*

• At close of Sep 09, there were 4,569 available units
  • Down 5% compared to prior month and down 13% compared to Oct 08
• There was a 7% drop in under contract units compared with Sep 09
  • Under contract listings were up 30% versus same month year ago
• 906 units sold in Oct 09, up 7% compared to prior month and up 1% from Oct 08
• YTD there were 7,477 units sold, down 13% compared with 8,635 units sold YTD 08
• Average sales price was $161,451, down 4% versus Sep 09 and down 2% compared to Oct 08
• Median price was up even at $135,000 compared with prior month
  • Median price increased 4% from $140,000 in Oct 08

Please feel free to contact me with any comments or questions. I look forward to the day when we can get data like this on 'Green' properties. You can visit my website at E3GreenHOMES.com

John Thomas

(m) 720-771-5594

(e) john.thomas@e3greenhomes.com

*Data obtained from Metrolist Monthly Comparison Reports

Obviously the old news is posted as one of the first blogs on this page, this however is new and exciting information on the amendment to the Homebuyer's Tax Credit that now extends all the way to April 30, 2010! This allows for the buyer to take advantage of the credit so long as they are within a closing by June 2010. Not only is this $8,000 tax credit available to the usual suspects but also to non-first time homebuyers also. My webpage www.harrisrealestategroup.com goes into greater description about the tax credit and has information on CHFA's Jumpstart program.

Rules are a bit different for the"move-up" buyers, first stipulation is that is only a $6,500 and they must have had lived within their previous home as a principal residence, (deemed as where the individual spends the majority, more than 50% of their time), for 5 of the past 8 years.

There are a few new rules that apply to both first-timers and "move-up" folk. The income limits have been increased for both groups from $75,000 to $125,000 per single filer and from$150,000 to $225,000 for joint filers. Also the limit of the cost of the house has been extended to $800,000! In addition to all of these increases there have also been Anti-fraud measures added to protect this great opportunity for all of the law abiding citizens hoping to take advantage of such a phenomenal deal.

This new set in of the tax credit takes effect onDecember 1, 2009 and goes all the way through April 30, 2010, thus allowing a maximum closing date 60 days late so long as a binding contract is placed by the 30th of April.

Also be sure to visit my webpage at www.harrisrealestategroup.com to learn more about the tax-credit and to find AMAZING homes to take advantage of the credit on!

Using the FHA 203k Renovation Loan to Purchase a Home and Make Green Improvements

This is Part II of a two part post about using the FHA 203k renovation loan to purchase a green renovated home. In Part One I described the FHA 203k Loan and summarized the type of renovations that are allowed. In this post I’ll describe the two different types of 203k loans and how they work. I’ll also review the benefits of using the FHA 203k Renovation Loan to purchase a home and make green renovation improvements.

How does it work?

The FHA 203k loan can save home buyers time and money by enabling them to purchace a home that needs repair, modernization or energy efficient improvements using a single loan for the purchase and the renovation. The 203k may also be used to refinance and renovate an existing home. The maximum loan limits are determined in the same way as an ordinary FHA loan (203b) and the same credit qualifications apply. There are two flavors of the 203k renovation loan—Streamlined 203k and Regular 203k.

Streamlined 203kRenovation Loan

As the name implies, the Streamlined 203k loan is designed for more rapid processing by eliminating much of the paperwork and simplifying the process to obtain the renovation funds compared to the more complicated Regular 203k. A Streamlined 203k loan is a part of the original loan balance, resulting in one loan and one mortgage payment. This loan is designed for simple repairs that can be easily estimated and completed. Here are some key points that characterize the Streamlined 203k Loan:

• Maximum renovation amount is $35,000, minimum is $5,000
• Loan may be up to 110% of after improved appraised value (includes purchase and renovation)
• Renovation funds dispersed in escrow 50% at closing and 50% on completion of the project
• Borrowers are not required to hire professional consultants, licensed engineers or architects
• Repairs may proceed from recommendations made by the appraiser or the home inspector
• Borrowers must occupy the property
• Work must commence within 30 days of closing and be completed within 6 months;
• Can be used to refinance an existing mortgage
• Structural renovations are not allowed with the Streamlined 203k Loan

Regular 203k Loan

The Regular 203k is a bit more complicated than the Streamlined 203k. A HUD consultant must be hired to oversee the process and perform inspections of bids and work completed. This loan allows for a complete remodel of the home provided professional licensed engineers and architects are used as needed and all required permits are obtained. Here are some of the key points that characterize the Regular 203k loan:

• There is no maximum renovation cost provided
• The loan is within the FHA limit for the county and;
• The loan is equal to or less than 110% of the after improved appraised value
• A HUD consultant must review and approve the renovations plans and bids prior to closing
• The HUD consultant must review work completed at each stage and approve up to 5 escrow disbursements. -Borrowers must occupy the property
• Work must commence within 30 days of closing and be completed within 6 months; -New additions, structural alterations and reconstruction are allowed
• Luxury items like swimming pool additions are not allowed.

Green Renovation with a FHA 203k Loan

The allowable energy efficient improvements are a huge plus allowing green renovations using 203k loans. Homebuyers can purchase a home and remodel it to include green features and benefits without the need to take out a secondary loan. For example, even though the existing furnace may work fine, a new high efficiency furnace may be purchased and installed with a 203k loan provided they can be shown to be cost-effective meaning the savings over the useful life of the energy improvements exceeds the costs of equipment purchase, installation and maintenance.

With this in mind, almost every home that is purchased with an FHA loan could be renovated to include green features and benefits. It’s important to recognize that a major renovation is not required to make significant energy efficient improvements in most homes. When it comes to energy efficiency there are lots of low hanging fruit including sealing the air envelope of the home, improving the insulation, sealing heating and cooling ducts and upgrading the HVAC, etc. Most homes can easily improve energy efficiency by 30-40% compared to existing performance without excessive costs.

The really great news is that in most cases the decrease in monthly energy expenses due to the improved energy efficiency of the home will more than off-set the incremental increase in mortgage due to the renovation loan. This is HUGE. Every FHA home buyer should understand the many options available to them to utilize a 203k loan to renovate their new home with green principles and products.

The benefits of improved energy efficiency and increased home value come with the bonus benefit of a healthier and more comfortable home renovated to suit the homebuyer needs. And all of this can be accomplished with a single purchase or refinance loan under the FHA 203k program.

Please feel free to contact me with any comments or questions. For information on how to locate and purchase a green home visit my website at E3GreenHOMES.com.

John Thomas MSEE, MBA

(m) 720-771-5594

(e) john.thomas@e3greenhomes.com

Market information for Active and Foreclosure Homes in East Colorado Springs As of 11-6-09

For a FREE list of Foreclosure Homes, Email KTorline@msn.com

Neighborhoods: Homes in Sundown, University Heights, Rustic Hills, Northridge, Village Seven

Related Post:

• Buying HUD homes in Colorado Springs, Part I
• Buying HUD homes in Colorado Springs, Part II
• Colorado Springs HUD Homes - Part III in FAQ's
• HUD homes available for $100.00 downpayment

Breakdown of homes for sale, INCLUDING FORECLOSURES: 351

• Short sales: 25 (7.1%)
• Bank-owned: 11 (3.1%)
• VA Owned: 1 (.3%)
• Regular: 314 (89.5%)

Active Homes for Sale: 351

• Single Family Homes: 250 (71%)
• Condos/Townhomes/Patio Homes: 101 (29%)

This Colorado Springs Real Estate report contains information on homes in East Colorado Springs.

This information is taken from the Pikes Peak Realtor Services Corp and is deemed reliable but not guaranteed.

Remember, Knowledge is Power

A Colorado Springs Real Estate Agent You Can Trust

Selling HOMES in El Paso & Douglas County; including Colorado Springs, Monument, Fountain, Larkspur, Pueblo, Castle Rock, Manitou Springs, Woodland Park, Palmer Lake

www.Kathytorline.com & www.ColoradoSpringsVintageHomes.com

Colorado Springs Real Estate

Homes in Colorado Springs -

Market information for Active and Foreclosure Homes in Old Colorado City As of 11-4-09

For a FREE list of Foreclosure Homes, Email KTorline@msn.com

Related Post:

• Buying HUD homes in Colorado Springs, Part I
• Buying HUD homes in Colorado Springs, Part II
• Colorado Springs HUD Homes - Part III in FAQ's
• HUD homes available for $100.00 downpayment

Breakdown of homes for sale, INCLUDING FORECLOSURES: 191

• Short sales: 9 (4.7%)
• Bank-owned: 5 (2.6%)
• Normal: 177 (92.7%)

Active homes for sale: 191

• Single Family Homes: 126 (66%)
• Condos/Townhomes/Patio Homes: 65 (34%)

Partial list of Foreclosed homes currently on the market

Colorado Springs Real Estate report contains information on homes in Old Colorado City:

This information is taken from the Pikes Peak Realtor Services Corp and is deemed reliable but not guaranteed.

Remember, Knowledge is Power