WHAT HAPPENED TO THE COLORADO REAL ESTATE MARKET?

Colorado Real Estate Market

What is the short answer to what has happened to the Colorado real estate market? The answer is pretty simple; take it from a Realtor who is in the trenches every day, NOT from the media or least of all our government (past or present cabinets). On to the answer: Traditionally, the government has pretty much stayed out of the residential market and allowed the ebb and flow of the free and unfettered market place to dictate the value of homes. Sometimes edging up and sometimes edging down but never too far in either direction. In the late 1990’s, under the Clinton administration (don’t worry, I’ll get to the Republicans in a minute) a strange thing happened. The White House, our White House,sent an order down through the HUD chairman (that is the housing division of the federal government) that stated, in no uncertain terms, that the white house and specifically then President Clinton, wanted more homes purchased by lower income buyers (whether they could afford it was beside the point). Their intent was to get lower income people who previously could not qualify, into homes and help them take advantage of rising home values. Not a bad idea on the surface. The problems however, started when they took it too far. About that time I was in a meeting at a well known national real estate brokerage office here in Colorado Springs (it shall remain nameless) when two gentlemen in dark suits and ties addressed the agents in the room. There were about 30 of us along with the managing broker for the firm. There were no pleasantries, no cordial hellos, just a couple of very short and very much to the point statements. The federal government, that would be our federalgovernment, expected the Realtors in that room to begin showing property to lower income buyers that in the past would not have received our time or efforts (just being honest). They had not been receiving our time because as soon as we saw their financial condition we knew, as experts, that they would not qualify for a loan. They said “those days were gone and these people were now going to qualify” and the appraisers and lenders were being notified of the changes as well. It also meant more closings and so most of the agents in the room were on board. Some of us saw the writing on the wall and realized that it would not last. People were essentially being steered into buying homes that they could not afford to keep if there was any sort of downturn in the economy. When President Bush was elected he continued the policy (you can breathe now Democrats). Appraisals suddenly went up, lending values went up and home ownership went up – just Clinton and Bush had planned. People starting looking at their homes as though they were a never ending supply of cash and all they had to do was borrow on it, they were giant credit cards with a front porch – oh yeah and tax free to boot. I personally know of several transactions where appraisers; experienced, long term, licensed by the state of Colorado, good guy appraisers (and there’s a lot of them), asked this question: “What value do you need?”, and that was it. Appraisal values shot up, people borrowed money based on the inflated appraisal and the road to collapse was open. We now had a whole segment of home owners who had borrowed to the hilt based on bad appraisals that were done by appraisers and lenders being pressured by black suits from the government, that’s our government. Those loans were now bundled as investment opportunities and sold to investors. Traditionally, when you buy a home and fail to make the payments you lose the home, your credit, your right to buy another home, your right to borrow any more money….etc etc. There were now, at theinsistence of our federal government, millions of home owners sitting on the razor’s edge of foreclosure because of mis-education and a serious lack of financial knowledge. But additionally by bad policy mandated by the White House, through HUD, the lending agencies and the appraisers. What about Realtors though?! To be sure, Realtors played their part as well. Those of us that spoke out against it were loudly shouted down with statements that the government was making this happen and who were we to fight the government? Especially if it involved a flurry of new business. Well, suddenly we had Enron, bank failures and even sovereign countries collapsing. Sophisticated investors realized that the rich return on their MBS’s were not going to last and they began to bail, all at the same time. Our government recognized that a housing collapse could pull the entire economy down (which it did)so they felt it was their obligation to set up some seriously flawed HUD rules that would allow people who bought homes they couldn’t afford, to stay in them in the hopes that the market would return. It didn’t. Homeowners didn’t pay their mortgages, investors took off with what was left of their money and, thanks to the government, the tax payers are paying the tab.

So where are we now? We have struggled for several years now (5 to be exact). Millions of legitimate home owners have watched their home value plummet through no fault of their own. The government broke up the free and unfettered market place in an attempt to gain votes for the Democrats and when the Republicans took over in 2000 they continued the practice. Banks and lending institutions have now become so paranoid about home values that they are sitting on almost 5 trillion (with a T) dollars and collecting only a small amount of interest.

So how how do we fix the Colorado Real Estate Market?

Believe it or not, it is ALL in the hands of the appraisers. Appraising is like any other industry, there are good ones and there are bad ones. We have dealt with both. Recently we had a contract that required an appraiser to show a value on a home of $700,000. It was located in a very high end area of Denver and there were few comparables to show value. Because of government intervention, the lender had to hire an appraiser from a “pool” of appraisers. The guy they got had no idea what he was doing nor was even familiar with the area the property was in. He pulled comparables from all over Denver…none of which was anything like the property in question, naturally the contract collapsed. Why? Because the appraiser needed about 5 or 6 days to do an adequate and professional job and he did the whole thing in 2 HOURS. He valued the property at 40% less than any of the 3 appraisals in the building that had occurred over the previous year. The contract collapsed, the lender didn’t get a loan, the buyers didn’t get a home and the seller didn’t get a sale. The appraiser: he got paid $600 for lousy work and it is neither negotiable, nor open to complaint. Appraisers have been ordered by lending institutions to under value property so as to avoid the lenders making a loan that they will have to eat if the homeowner fails. Remember, it used to be up to the home buyer to pay their bad debts. Not anymore, now If they fail then the lender and the tax payers eat it.

Recently, the National Homebuilder’s Association conducted a survey of their members and found that fully 35% of their new home appraisals came in below the cost of the construction. Why would appraisers do this unless they were being pressured? Naturally, that meant that 35% of the contracts that were signed by the buyer to have the home built…failed. Those of us in residential real estate have the same problem….33% of our contracts fail because of low appraisals.

The answer is really quite simple. In the early 2000’s appraisers were pressured to push the values higher and higher, now the same people are pressuring them to hold values back! The pendulum needs to center up. That won’t happen until appraisers begin to work their comparables fully without being pressured by outside (or inside depending on how you look at it)forces. As Realtors we have rules, ethics, laws about disclosure and a myriad of other endeavors that surround a home purchase or sale. Builders and lenders are buried in regulation as well. Everyone needs to be held accountable for their work, including appraisers. We, the real estate transaction community, need and deserve the right to a quick and equitable rebuttal to appraisers who fail at their responsibility to provide their clients with an accurate and timely appraisal. They are supposed to be working for the sellers to help them set the appropriate listing price. They are supposed to help the lender and the buyer by showing correct and accurate value. They are supposed to validate the buyer’s agent value and the seller’s agent price. All are important and necessary objectives and responsibilities of the professional appraiser. Our job is to service the public at large in a free and market place without interference or government intervention and pressure. We can get back to where we were but not without the group that has its way with the industry – the appraisers. The housing market cannot recover without proper appraisals, and proper appraisals cannot be made unless lenders don’t pressure them to undervalue, and lenders cannot pressure appraisers to undervalue unless our government leaves the lenders alone!

So there you have it – that’s what happened to the Colorado Real Estate Market………oh yeah, and the rest of the country too.

Northgate Real Estate

Northgate Real Estate

What is Northgate?

Northgate is a small, close-knit community located about 10 miles north of Colorado Springs – approximately a 15-minute drive to the downtown area of the city. As the halfway point between Colorado Springs and Monument, Northgate has become a popular choice for people who want a quieter lifestyle with all the benefits of living in a large city. The community is also adjacent to the U.S. Air Force Academy. Mention this article and Turner Associates will provide a rebate to you upon closing should you become our client! Amount of rebate is dependent upon purchase price and exceeds the amount by the USAA mover’s advantage program.

Where is Northgate Real Estate?

Nestled in the foothills of the Rocky Mountains, Northgate residents enjoy magnificent views of Pikes Peak and the surrounding natural landscape. Northgate, also known as Gleneagle, provides numerous cultural and recreational opportunities. The Gleneagle Golf Course is an 18-hole, 72-par course with breathtaking views of the nearby Front Range. The semi-private club also has a swimming pool and clubhouse for members. Many single family homes in the Northgate area are available on larger lots. Many homes are individual properties, but some are part of a master-planned residential community. The Flying Horse golf and resort community is a private neighborhood that offers residents new homes, a clubhouse with fitness facilities, and an 18-hole championship golf course designed by Tom Weiskopf. Students attend school facilities located right in the community that are operated by Colorado School District 20.

If you are interested in more information on buying or selling a home in Northgate Real Estate – Contact Turner Associates below and we will be happy to assist, thank you and sincerely, Turner Associates

Red Rock Ranch Colorado

Red Rock Ranch Colorado

What is Red Rock Ranch Colorado?

RED ROCK RANCH is a Monument Colorado Custom Home Community on two and one half acre lots. Located in North El Paso County and just a block or two from Pikes Peak National Forest, this private, luxury, family neighborhood is convenient to shopping and I-25. A home in this area starts at over 750 thousand. Next to Forest View Estates all Red Rock Ranch Real Estate is very upscale. Local golf communities include Woodmoor County Club, Kings Deer and Gleneagle. Bear Dance is just 15 minutes north and so is Castle Rock with all its wonderful golf courses. Red rock Ranch is serviced by Lewis Palmer School District 38. Mention this article and Turner Associates will provide a rebate to you upon closing should you become our client! Amount of rebate is dependent upon purchase price and exceeds the amount by the USAA mover’s advantage program.

If you are interested in more information on buying or selling a home in red Rock Ranch Colorado – Contact Turner Associates below and we will be happy to assist, thank you and sincerely, Turner Associates

Rustic Hills Colorado Springs

Rustic Hills Colorado Springs

What is Rustic Hills Colorado Springs?

The Rustic Hills Subdivision is located in El Paso County, Colorado in the East Colorado Springs real estate area of the city. This part of the Colorado Springs real estate area was established in the early 1960s. The homes for sale in this area offer some distinctive features from the 1960s and 1970s and have mature landscaping. The Rustic Hills Subdivision is conveniently located close to shopping, military bases, and restaurants. Many of the homes for sale in the Rustic Hills real estate area have large trees, flower gardens, and fenced back yards. Neighborhoods in the Subdivision include: Austin Estates established in 1959-1972, Rustic Hills North in 1972-1979, and Rustic Hills Ranch in 1983. Many of the homes in this real estate area were built in the late 1960s and early 1970s. There are two city parks in the Rustic Hills Subdivision: Wilson City Park and Henry City Park. The proposed Sand Creek Trail, part of the City of Colorado Springs exceptional trail system, will travel through the Subdivision upon its completion. Mention this article and Turner Associates will provide a rebate to you upon closing should you become our client! Amount of rebate is dependent upon purchase price and exceeds the amount by the USAA mover’s advantage program.

What about Rustic Hills Colorado Springs Homes?

Homes for sale in the Rustic Hills Subdivision are mostly bi-level and tri-level homes with a few 2 story, 4 level, and ranch style homes. Some of the homes have unique features that include: sunrooms, bay windows, fireplaces in master bedrooms, and laundry shoots. Other amenities in many of the homes include: hardwood floors, covered patios, wooden decks, storage sheds in the back yard, oversized garages, fireplaces, family rooms, and living rooms. A few of the homes have been updated to include: new roofs, new furnaces, new paint, and new carpets. The minimum sales price for homes in 2008 in the Rustic Hills Subdivision is $127,900. The minimum size home for sale is 1,326 finished square feet. The minimum home for sale is 3 bedrooms, 2 baths, and a one car garage. The average sales price in 2008 is $161,004 and is 1,850 finished square feet. The average size home for sale is 3 bedrooms, 2 baths, and a one car garage. The maximum sales price is $284,000 and is 2,059 finished square feet. The maximum size home for sale is 5 bedrooms, 4 baths, and a 2 car garage.

What about Rustic Hills Schools?

The schools of attendance for the Rustic Hills real estate area are: Henry Elementary School, Irving Middle School, and Mitchell High School. These schools are in the Colorado Springs School District No. 11 boundary area. Mitchell High School is located in the Rustic Hills Subdivision.

Neighborhoods near Rustic Hills

North of the Rustic Hills Subdivision is the Villa Loma real estate area. The Villa Loma Subdivision was established in the 1970s and 1980s. To the south of the Subdivision is a business district, and Platte Avenue. Platte Avenue is a major east/west access road through Colorado Springs. Platte Avenue turns into Highway 24 in the east direction. West of the Rustic Hills real estate area is the Citadel Mall and restaurants. Finally, to the east is the Powers Corridor where there is additional shopping and restaurants for dining pleasures.

Employment near Rustic Hills Colorado Springs

This prime location for access to military bases begins with Peterson Air Force Base. Peterson Air Force Base real estate is an approximate 11 minute commute or 4.61 miles. Schriever Air Force Base real estate is an approximate 22 minute drive or 13.06 miles. Fort Carson real estate is an approximate 20 minute drive or 11.06 miles. A perfect location for your Colorado Springs military relocation plans. The Colorado Springs Municipal Airport is a short, approximate 11 minute commute, or 7.50 miles from the Subdivision.

If you are interested in more information on buying or selling a home in Rustic Hills Colorado Springs – Contact Turner Associates below and we will be happy to assist, thank you and sincerely, Turner Associates

Soaring Eagles Colorado Springs

Soaring Eagles Colorado Springs

What is Soaring Eagles Colorado Springs?

Soaring Eagles is a 250-acre master planned community in Southeast Colorado Springs – close to Peterson AFB, Colorado Springs Municipal Airport, Schriever Air Field and just minutes north of the City of Fountain and Fort Carson Army Base. Mention this article and Turner Associates will provide a rebate to you upon closing should you become our client! Amount of rebate is dependent upon purchase price and exceeds the amount by the USAA mover’s advantage program.

Where is Soaring Eagles Colorado Springs?

Soaring Eagles is located on the Southwest corner of South Powers and Hancock Expressway. This allows for easy access to I-25, the entertanment and shopping of Powers corridor as well as Colorado Springs’ largest YMCA and Colorado Springs Parks and Recreation’s new ball fields. In the middle of Soaring Eagles, right behind Soaring Eagles Elementary School, is a large park with a playground and spanning views of the Rocky Mountains and Pikes Peak. Soaring Eagles Neighborhood Boundaries are: NORTH: Hancock Expressway, SOUTH: Drennan Road (Soarnig Eagles is the most Southeastern neighborhood of Colorado Springs before the unincorporated neighborhoods of Security and Widefield.), WEST: Hancock Road and Chelton Road (This is one of the MANY parts of Colorado Springs where streets change or switch names for no real reason…), EAST: Powers Boulevard

What about Soaring Eagles Schools?

The schools that Soaring Eagle children go to are a part of Harrison School District 2. - Soaring Eagles Elementary School, Panorama Middle School, Sierra High School, Soaring Eagles Real Estate Information

What about Soaring Eagles Homes?

The homes in Soaring Eagles were built from 2004- 2007. In fact, there is a new townhome community. The single family homes in Soaring Eagles are either ranchers (one-level) or 2-story. They range from 3 bed 3 bath 2 car (attached) to 5 Bed 4 Bath 3 Car (attached) and have anywhere from 1,167 total s.f. to 3,831 total s.f. – many with full basements (included in square footage). Yes – Our basements are included in our square footage here- as it is considered living space when it is finished out. In the last half of 2008, 36 homes sold in Soaring Eagles and were on the market for an average of 103 days. Single family homes in this Colorado Springs neighborhood sell for between the upper $100k’s to the upper $200k’s. TOwnhomes sell for between the lower $100k’s and the upper $100k’s.

If you are interested in more information on buying or selling a home in Soaring Eagles Colorado Springs – Contact Turner Associates below and we will be happy to assist, thank you and sincerely, Turner Associates