Sales statistics for the Five Parks Neighborhood of Arvada, Colorado show a dramatic slowing of homes sold, and a corresponding increase in *absorption rate.
*Absorption rate is the amount of time that it would take for the current number of homes for sale to close, assuming no other homes came onto the market, based on the number of homes sold in past years.
2006 saw 44 sales ranging from $250,000 to $635,000. There were no foreclosures or short sales. Many of these homes were new construction.
2007 saw 44 sales ranging from $293,000 to $540,000. There was one short sale. A few of these sales were new construction.
2008 sales dropped to 28 homes, ranging from $232,200 to $535,000.
2009 is where we see the drastic change. Almost halfway through the year, only 5 homes have sold, and two of them were short sales. They ranged from $314,000 to $441,500.
There are 4 homes under contract, and one of them is a short sale. The highest list price amongst these homes is $449,000.
There are twenty homes for sale. Only one of them is disclosed as a short sale, but that's a LOT of competition. List prices range from $310,000 to $649,000.
The previous years' absorption rate was less than 6 months, but current activity shows an absorption rate of 11 months.
The Village of Five Parks is a very popular area, despite this slump in sales. If you'd like to see any of the homes for sale In The Village, please give me a call. Or, use the links below to search online home sales for yourself.
Arvada is an historic small town about midway between Denver and Boulder, in Jefferson County.
See all the homes for sale in the Village of 5 Parks and nearby.
Info for this post was taken directly from Metrolist on June 8, 2009.
Pretty much everyone assumes the former owners are stripping foreclosed houses on their way out the door. But I have reason to believe that, in my local market, it's not them after all -
I was visiting with a client who recently bought a bank-owned home, the doors of which had all been removed, the evaporative cooler had been taken off the roof (and the big hole left open to the house below), the controls for the cooler taken off the wall, and all the appliances were missing. Throughout the whole transaction, the buyers kept asking, 'Why would they take that kind of stuff? They're not buying another house that they can put it in."
I just shrugged my shoulders and said, "You never know why people do what they do in difficult times."
But after the closing, they were talking with their new neighbors, who told them about watching the crew hired to winterize the house making off with the doors and evaporative cooler. They didn't call anyone to report it, because they didn't know if anyone would care.
Another person who was there with us, said she had noticed the foreclosed house behind hers being stripped after the owners were gone, but before the new ones came.
Wow - it sounds like we've all been placing the blame on the wrong shoulders. If the people who are hired to winterize the house are stealing parts of it, does anyone care?
Certainly the buyers would like to have a house that's intact. But they can (usually) see what's missing when they make their offer and offer accordingly.
Do the listing agents care? It's their job to look out for the interests of their clients - the 'bank', in this case. But they'd have to actually set foot on the premises, maybe take notes or photos, and do a re-check afterwards, then follow-up if anything's missing. Do they care enough to do that?
Do the owners - the banks - care? They're losing hundreds or maybe even a few thousands of dollars, but they've already lost tens of thousands. It probably amounts to 'budget dust' to them.
Is this a 'victimless crime'? Maybe so.
But to me, the key word is 'crime'. It's not right and someone ought to care enough to put a stop to it.
Update: After reading the Arizona news article that Doreen linked to in her second comment, I have to wonder if 'stripping' is even a crime if it's done by the homeowner before the foreclosure is final. It looks like it is a crime in Arizona after the foreclosure is started, what if it's done before foreclosure is officially begun, but after the homeowner knows they're going to lose it? I'm going to try to find out what our local laws are.
I admit having mixed feelings about the police pursuing traumatized homeowners like it appears they did in the small town in the article. My feelings are much more clear about the wrong-ness of the winterizing crews doing it. But the law is the law and must be applied evenly. And it is true that stripping reduces the value of the home, and that reduces the value of all the homes in the neighborhood. So, in that way, we're all victims.
Homeowners - beware! Taking a few hundred dollars worth of materials from your house may cost you a lot more than you thought it could!
That is a question I received from a local home buyer recently, about a listing he found on the internet (not one of mine!). I thought it would be a good excercise for home sellers, who are holding onto the idea that their over-priced house will sell for more than the rest, to read through the answer, from the perspective of the buyer. Ask yourself - if I was buying a house, would any of these reasons entice me to pay more for this house?
My Answer:
As you can tell, this house does not have more bedrooms, bathrooms, or square footage than others. All the similar homes you've found are nearly new, have granite counters, wood floors, and stainless steel appliances.They do appear to be essentially the same, and the only way to know if this one has some outstanding feature that the listing doesn't mention in the marketing, is to visit the home.
Of course, most home buyers would just move on to the next one, and leave this one 'on the shelf'. But if you do become interested in making an offer, a good real estate agent could help by providing comparative sales along with the offer. They could try to convince the seller that your offer is fair, without irritating them and blowing the deal. In other words, you'd need an agent who could handle it with some 'finesse'.
If I was your agent - working on your behalf and at no cost to you - I would preview this house and the others, or take you to see them all. But for now, I would just assume this house is priced higher due to one of the reasons below.
"I paid $XXX for it, and refuse to sell it for less."
"We put $XXX into the remodeling, and want our money back." (One man actually told me, his wife did all the extensive country-style decor herself, and that made their house worth $20,000 more than the others.)
"We can't afford the home we want to buy unless we get $XXX for this one."
"My neighbor (or friend, or co-worker, or the grocery clerk who used to be a real estate agent) said I should get $XXX for it."
I'll bet I can think of a dozen more. Of course, home buyers won't pay too much for a house because of that kind of reasoning, as I'm sure you know full well.
Chapter One: It was the best of times, it was the worst of times - for home buyers. Low interest rates, lots of houses to choose from, yet fear paralyzed multitudes of would-be homeowners. Dire warnings from the media, old folks' tales about how much better things used to be, contributed to dark days.
There came a day when a brave and wise young couple decided to go for it and get a home of their own. Their little girl needed a yard to play in, and they wanted a place they could make a home and build memories for the next decade or three. Wise beyond their years, they knew they could only afford to buy a place that would qualify as a 'fixer'. And they wanted their new home to be in Arvada* - close to family.
Their decision made and with firm resolve we set about the task of finding the right place in the right neighborhood - one which needed the right amount of work, and which would not turn out to be the dreaded 'money pit'.
Chapter Two: The tale of each and every home tour need not to be told - grim and sometimes frightening as it was. Our story starts on a particular day when there were only two homes remaining to be seen. One was advertised as needing, 'minor cosmetics', and the other announced, 'not for the faint of heart - major work needed'.
Our youthful and innocent couple looked excited when I pulled up in front of the first house - their little girl played at her mom's feet as she said, "I love this neighborhood - I jog through here every morning." Unfortunately, as soon as the door creaked open, the smell that hit us in the face meant the daughter would be carried through the house and not allowed to wander at all. Not a word was spoken as four sets of eyes grew wider with every room we entered. Even so, I think the place was still a contender until we saw the garage.
At first, it seemed OK - but then the big door rumbled open and allowed enough light to see that the concrete had cracked diagonally across the full floor and the far corner dipped precariously into a three-foot void. Holding even more tightly to his little girl, the disappointed father said, "I don't think this is 'cosmetic work'."
After locking up, I met them standing next to their car. They were in the midst of a discussion about whether they should even bother looking at the next home - the one that warned, 'be prepared to bring your tools'. He still wanted to see it - how bad could it be, he reasoned. She, however, was done for the day. But he won out - she could stay in the car if she wanted and he'd be quick.
Chapter Three: As we pulled up - I could tell hope was rising again. This home was bigger than anything we'd seen so far for the price. Newer, too. And the neighboring yards and homes appeared well cared for. Off the main street, in a cul-de-sac - so many good things already. They steeled their resolve and in we went.
Hmmm ... front room needs carpet. Kitchen cabinets are OK. Appliances are all missing and one window is cracked. We move on, thinking there must be something awful for the agent to have written what he did - where will we find it?
Upstairs - dated and dirty carpet, ugly bathrooms, thermostat missing and wires left hanging out of the wall. Still, no horrible smells, no sign of disaster. Maybe the basement will reveal the problem.
Another hmmm ... we can't find any major issues. Aha! We haven't seen the garage yet - dunh, dunh, dunh!!
The garage door rolls up at the touch of a button ... and ... nothing! We wander through the house again, can't figure what all the warnings were about. We split up, comb through every room and check out the yard.
Our young couple made up their minds quickly - "We want this house!" We wrote the offer, it was accepted.
Of course, there were other issues revealed at inspection - a couple were pretty major. We were able to get some financial remuneration from the bank that owned the house and on we went to closing.
Chapter Four: Now, the house gets prettier by the day, and I can't wait to see how the family will decorate for their first Christmas in their new home. And even to this day, I wonder, "What was that agent thinking?" Maybe he doesn't get out and look at many homes. Then again, since he's an REO agent, he may not have ever seen this one at all.
That's my story! It's based on actual events, although some details were changed or it would have really dragged on.
When you're ready to write your own home-buying or selling story, I'd love to help you. Every one is a unique adventure, and you deserve a real estate agent who will lavish you with time, skill, and understanding.
*Arvada is a friendly and historic small city about midway between Denver and Boulder, Colorado. Stop by and see her some time!
Arvada is a friendly, hisoric community located about midway between Denver and Boulder, in Jefferson County.
The folks at HOTA (Historic Old Towne Arvada) have created another fun annual event - the Ladies Only Sample Tour. With the participation of vendors such as Penzey's Spices, the Bead Connection, Bliss Cafe, Into the Fire and more, ladies are invited to spend an early evening strolling the historic streets, collecting samples from each shop.
I attended with my daughter, Amanda, and her mother-in-law, Linda, and sister-in-law, Summer. We wore ourselves out and had a great time. Here's a photo of some of our 'stash'. Amanda especially enjoyed visiting the Army-Navy store, because she used to shop for 'cool stuff' back when she was in middle school. We all felt it was a shame the Harley store didn't participate - surely they could have come up with something fun to get us to stop in!
The same event is held in Littleton, Morrison, and Denver. Unfortunately, they're all at the same time so you have to pick one. Linda and Summer live in Littleton, so we'll probably hit that one up next year!
You do have to buy a wrist band for $12.50 each. Overall, what you get makes the cost worth it, but some stores did skimp and hand out only a cheesy coupon. (tsk, tsk!!) But most of the shop owners were very pleasant to meet, and went out of their way to make us want to come back again.
If you're thinking about buying or selling a house in the Arvada area (including Westminster, Broomfield, Thornton, and Wheat Ridge) I'd love to chat with you. I limit the number of people I work with at any one time so I'll have plenty of time to lavish attention on each one of my clients.
Keep up with what's going on in Old Towne Arvada.
Find out more about life in Arvada.
 |
|
|
I help people buy homes and sell homes in Westminster,Arvada, Golden,Broomfield, Thornton,Longmont,Louisville CO;only 3 buyers and 3 sellers at a time so I can serve you in a relaxed, friendly manner.
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2009 ActiveRain Corp. All Rights Reserved
