Shirley Cicero

DV10JanuaryArticle

I am providing you with this information so that you can make an informed decision about the current market. In the last 30 years we've seen very few opportunities in which buyers can prevail and now truly may be the time. If you'd like to discuss your opportunities in relation to the current real estate market, please contact me today.

This article was posted in the Denver Business Jounal Wednesday Dec. 9th. Although it's not great, it has does have some positive. I am optimistic that 2010 is going to be the best year yet. We continue to move forward as if it's the only direction we can go!

Hope everyone had a wonderful Holiday, is thinking about theirs goals for 2010, getting the running shoes on and getting ready to blast through to the new year!!! I for one can't wait to say good bye to 2009!

Metro Denver had the third-largest gain in home values among cities nationwide in 2009 through November, with a $10.7 billion increase, according to Zillow Real Estate Market Reports.

Only Boston ($23.3 billion) and Providence, R.I. ($12.4 billion) had greater gains in home value.

U.S. home values as a whole dropped $489 billion in this year's first 11 months, which was significantly less than the $3.6 trillion drop in home value sustained in 2008, the Zillow report said.

Forty-eight of the 154 markets Zillow tracks showed gains in home values through last month.

The report was produced by Seattle-based Zillow Inc., a provider of housing information related to sales, values, foreclosures and mortgages.

Zillow uses its own proprietary formula to calculate home values.

"Home values stabilized significantly during the second half of 2009, with total dollar value of U.S. homes increasing since June," Stan Humphries, Zillow's chief economist, said in a statement. "Most housing markets across the country had a good summer, spurred largely by the government's tax credits for [first-time] homebuyers combined with very low mortgage rates."

Future home values will be affected by mortgage rates that are expected to "creep back up" in the first quarter of 2010, as well as a foreclosure rate that continues to be high. "Both these factors will challenge the recent stabilization of home prices," Humphries said.

Denver-area home values increased $10.7 billion to a total of $215.7 billion this year through November, according to Zillow. Values dropped $20.2 billion in 2008.

Los Angeles had the biggest decrease in home value through November, with a $60.8 billion drop to $1.7 trillion in total home value.

Other markets seeing major losses in home value included:

• Chicago - Down $49.6 billion to $688.8 billion total.

• New York City - Down $49 billion to $2.7 trillion.

• Miami-Fort Lauderdale - Down $45.9 billion to $403.5 billion.

• Phoenix - Down $45.1 billion to $241.1 billion.

Home value dropped so much in those markets partly because of the high number of homes in those metro areas, the report said.

Do you live in Colorado or are visiting for the holidays?

As a special thank you to our past, present and future clients, we are offering discounted tickets to:
Denver Nuggets
Colorado Avalanche
Colorado Ballet's - The Nutcracker
Colorado symphony Orchestra
These events provide a wonderful opportunity to gather with friends and family during the holiday season. To purchase discounted tickets, visit:
http://www.ColdwellBankerPromotions.com/tickets

***Warmest thoughts and best wishes for a wonderful holiday season and every happiness in the New Year!***

After enduring three years of a declining real estate market, 2009 brought a much needed break for the hard hit real estate sector. Driven largely in part by the economic stimulus that helped the housing market emerge from the recession, it leaves many of us wondering what is next for real estate. Will housing prices rebound? Will the new extended and expanded tax credit be just what the doctor ordered? Will the luxury market recover similarly to the entry level? I recently sat down with Coldwell Banker Residential Brokerage President Chris Mygatt to answer these questions and more as we discussed the 2009 housing market and what we may expect in 2010.

How would you say the housing market faired in 2009? Did it live up to your expectations or falter? “Although it was a challenging year, I believe that it ended up being a year of stability. It was a year of transition in many of our markets. We bounced along a rough bottom but at the same time, we are really prepared for a modest and consistent improvement. The second half of 2009 was when we finally saw a jumpstart. I think that really stems from consumer confidence. At the end of the day, what drives affordability is confidence. Does a buyer feel confident in his/her employment and finances? If so, then buying a home is typically a good option. Another way that the government is reinforcing the viability of buying a home is by offering the tax credit.“

Do you feel the tax credit was an important factor in the market turnaround? “Undoubtedly, the tax credit was an important factor in our market’s turnaround. We didn’t really know this for sure until we started looking at the number of closed escrows in September, October and November. The number of properties that went under contract increased as we grew closer to November 30th, the original expiration date for that tax credit. It was a very clear indication that once potential buyers realized they might miss out on the $8,000, tax credit if they did not move quickly, many buyers got off the fence and began to act. The number of property showings was up. The number of properties that were sold was up. Then, we saw the extension of the tax credit and we saw yet another market adjustment. I wouldn’t say that the market has been slowing, but there has been a softening of the frenzy. I think as buyers near the new expiration date of April 30, 2010 that they will once again begin to act.”

Do you think the extended and expanded tax credit will solidify our market recovery? “Certainly the increased activity that we’ve had in the lower end market has been good; but in and of itself it probably will not create a market-wide recovery. To have a market- wide recovery, we have to be able to engage the move-up buyer. We have to remind the move-up buyer that now may be the best time in our history to step up to the higher priced homes. The new tax credit that provides existing home owners with a $6,500 tax credit is certainly helpful but many buyers need more than just a tax credit. They need to have the courage to step up in today’s market. Those who do, may reap the best benefits. The fact is, you probably have never gotten as much value, thanks to interest rates and given what you’re earning, as you have in today’s market. Six months to a year from now, we probably won’t be able to say the same. We are certainly recognizing that the tax credit is a great thing. But it isn’t compelling enough if a potential buyer isn’t confident in his/her finances or future employment. For those who are confident, the tax credit should serve as a clear and convincing message that now may be a great time to move-up.”

Why is it such a great time to move-up? “It’s all about the power of leverage. The fact is that in most markets, inventory is very low in the low priced home range. So buyers in that market are often competing against other buyers for the same home making it more of a seller’s market. However, it is a buyer’s market in the mid-level and upper end markets so you truly get the best of both worlds when you choose to move-up.”

There is a lot of talk about the impact of inflation. Do you think people should be concerned about it? “Certainly people need to be aware that inflation is very likely. The government has devoted a great deal of money to stimulate our economy and in order to strengthen our dollar over time, inflation will be likely. With inflation comes higher interest rates and ultimately less buying power for a home buyer. But it all goes back to maximizing your opportunities now, in today’s market. For those who have made a fortune in their lifetime, they were always looking at the opportunity, today. In order to do so, you must sell where the market segment is strong and buy where the market segment is weak. Today that opportunity resides with the move-up buyer. “Another important fact to note is how advantageous interest rates are right now. Some buyers are able to qualify for 30-year fixed mortgages at under 5%.”

Do you think we’ve hit bottom? “I think in many communities we probably have hit bottom. We are seeing statistical evidence of it in the average sale price and in the number of homes sold. Interestingly (and I think this may be contrary to what most people believe), the communities that may have hit bottom are not necessarily those that were hardest hit by foreclosures. The communities that are strongest today are those that are clearly most desirable. When the market gets soft, the people who in previous markets couldn’t afford their first choice market had to settle for their second or third choices. But thanks to the opportunities in today’s market, they are better able to buy into their first choice communities and neighborhoods. It goes back to supply and demand. Those communities that have good schools, good local economies, diverse activities and, overall, are just considered more desirable places to live, are once again driving demand.”

What do you recommend to today’s home buyer? “Buyers need to understand right now that the market is a little schizophrenic. You know it is probably the time to buy and you also know that the market has been challenged. But you may see that in certain markets, we’ve had lower prices and decreasing numbers of available homes for sale. In that type of area, you might expect to get a lower price than a year ago. But you also need to realize that the market is picking up and that in many markets, we’ve probably hit bottom. For example, if you want to be where the best schools, best hiking trails and best parks are, that will probably be where the best recoveries are likely to occur. To properly ride the wave, you should find the houses where people want to be. The problem is that if you wait a year, you’re probably going to run up against a lot of challenges: increased interest rates, increased buyer demand, and lower available housing inventory. The combination of those factors is what is creating more urgency in the more desirable markets today.”

What do you anticipate for real estate in 2010? “What we’re going to see in 2010 is probably the more desirable neighborhoods seeing a modest increase in sales price and a decrease in the number of homes on the market. I predict that we are going to see an overall stabilization in the marketplace. We are probably going to see on the whole a slight increase of the average sales price of homes. We’re probably going to see a stabilization of the market. We probably won’t ever return to the sales levels of 2005 and 2006 because so many of those sales were artificially created. Fortunately, I believe that we are now on the right path toward modest, sustainable growth.”

When will the luxury market begin its turnaround? “We should see a slight turnaround of the luxury housing market in 2010. We believe that it will be the last market to turnaround. It was the last market to experience a turn down and it will probably be the last market to experience an upturn. As business and the economy strengthen, we’ll once again see a more robust luxury market. “The bottom line is there is a lot to be confident about in relation to the housing market: the tax credit; attractive interest rates; buyer demand in the entry level market; opportunities in the move-up buyer market; and sustainable growth. It all adds up to what we anticipate to be a very productive 2010.”

If you would like more information about the opportunities that are available in today’s housing market, please contact me today.

©2009 Coldwell Banker Real Estate LLC. All Rights Reserved. Coldwell Banker® is a registered trademark licensed to Coldwell Banker Real Estate LLC. An Equal Opportunity Company. Equal Housing Opportunity. Each Coldwell Banker Residential Brokerage Office Is Owned And Operated by NRT LLC.

Well....Thanksgiving Day may be over, but as I woke up this beautiful sunny cool Sunday morning I realized just because Thanksgiving Day is over I still have lots to be thankful for.

Sometimes we forget...and Thanksgiving Day makes us stop to remind us...oh yeah I'm thankful for....then we eat lots, go on with the day, watch some football, enjoy our families, and go back to our routines.

Continue the thought of what you are thankful for everyday. Wake up every morning and say aloud...I'm thankful for....(even if its just waking up...sure beats the alternative!)

Many have had a rough year. Family members deployed, jobs lost, dream home gone...I myself have had a trying year this year. Almost to the point the where I was afraid to open my eyes to see what was next. However, we are never given more then we can handle. We may not like it or understand it or even want it but there is always a reason for it...and believe it or not...I'm thankful for it. If it doesn't kill us...it'll make us stronger! :-)

So wake up tomorrow and be thankful. Take one day at a time. Take a breath and smile...no one can ever take that away from you. Everyday is a new day and opportunity to live, learn and enjoy the lessons of life.

And REMEMBER...don't be pushed by your problems......be led by your dreams! Dream BIG...Have a vision of the future and create it!

Have a great week!