About Chaffee County, CO

First, the average credit score for home loans has gone up. 4 years ago, 650 would give the buyer pime rates. And, they could still at 500 --subprime rates. Now, the minimum score for getting any mortage went from 500 to 650. Read more...

Currently, the 650 is now the break off between (Fannie Mae and Freddie Mac) now carry average FICO credit scores in the 760 range and above, and FHA loans now have average credit scores slightly above 700.

Four years ago, a 650 credit score for a mortgage would have given the borrower prime rates. These prime mortgage loans would give the borrower the best interest rates which were lower than the average interest rate of the market that time.

Prime rates require borrowers to have scores of 730 or up, which used to be just 650 a few years ago. Read more..

On the surface this looks like bad new but it is actually a good trend. This has begun to stabilize the banks so that they are willing to loosen up other lending requirements... good news for buyers.

Banks are now beginning to loosen up on the amount of money they lend. In the chart below, you can see they they are beginning to lend amounts up to 3.5 times borrower earnings. This is up from a low 3.2 times earnings during the crisis. This is giving folks more buying power.

Banks are also loosening loan-to-value ratios (LTV) an improvement in mortgage credit conditions. In contrast to a low of 74 percent reached in mid-2010, banks are up to 82 percent Loan to Value. (DSnews 1/24). The 74 percent loan to value meant borrowers in a tough economic time time had to come up with 26% down to even get in a house.

Folks with credit scores under 650 are still finding creative ways to get into houses like lease options, lease purchases and owner finance. There has been a growing number of sellers who are now willing to look at these more creative ways to sell their home just so they can move on.

Stay tuned for salida Colorado real estate market trends: good news part 6

If you are stepping into this series and would like to begin with the first post, follow this link Local Colorado Real Estate Trends.

I cannot believe how much I learned at the Keller Williams Family Reunion this year. And, what great connections... met realtors all over the US and Canada that were doing great in a pretty tough year for many realtors. I studied, went to session after session, picked people's brains and ... came up with what I already know but on steroids...

And, it directly applies to my clients and Salida Colorado Real Estate.

Here is a short video that will give you a sense of the energy at the conference...Enjoy!

If you are considering purchasing Salida Colorado Real Estate and are wondering about the area, enjoy this video! It is the first of a multipart series on Salida, Howard, Buena Vista, Crestone, Coaldale Poncha Springs and Nathrop. Stay tuned.

Last week in Salida Colorado Real Estate: Good news Part 1, I spoke about Days on market in the area. In all cases, the days on the market is decreasing.. one of the indicators of a recovering market. Today, I will share information about our local inventory.

Our distressed homes, which has always been low, is increasing a bit, probably due to the hold many banks had put on the foreclosure process last fall/winter. However, new listings are down and properties that have been on the market are selling or being taken off the market. That leaves fewer choices for buyers. That fact, along with the decreasing prices has created a surge in buying, helping the local market and getting folks into the home they want.

The median listing price and sold price in the Salida Colorado Real Estate Market is telling. Although our listing price is still high (we have lots of high end homes and vacation rentals), The homes that are selling are under $200,000 or up to $250,000 and selling for under $200,000. And, that is where we are seeing a flurry of actitivty. The graph below gives you and indication of the trend over the past year on listing vs sold prices. Stay tuned for Part 3, an overview of Colorado Real Estate...more good news.

Posted: Salida Colorado Real Estate: Good news part 2.

Salida Colorado Real Estate: Good News Part 1

Buyers have been busy over the past month or so. My instinct was that prices have dropped enough for buyers to move forward and the increased sales was diminishing our abysmally high days on market (how long a home is on the market).

As I was perusing the local MLS data over the past 6 months, what my instinct was telling me proved true... homes are selling again.

First, for the Salida Colorado Real Estate Market, Days on market dropped about 50%, revitalizing our inventory. See the graph below.

Below, you will see similar patterns for the entire Chaffee county. The number of days on market dropped 44%.

And, in Fremont County, we have a similar pattern, although less dramatic.

The bottom line? Homes are selling! Prices are still decreasing which will be explored in Part 2.

Salida Colorado Real Estate - Days on Market