Denver home prices highest between coasts

September 3, 2013 by

Denver home prices highest between coasts

This 760-square-foot row home sold earlier this month for $250,000.

This 760-square-foot row home sold earlier this month for $250,000.

The Denver-Aurora area had the highest price homes in the middle of the country at the end of July, according to a national report released today.

The report by RealtyTrac also shows that 24 percent of the homes sold in July in Denver were for all cash.

While that may seem like a lot, it is far below the national average of 40 percent all-cash purchases.

The median price of a home in the Denver metropolitan statistical area was $250,000, according to the Irvine, Calif.- based real estate data company.

Only cities on either coast and Honolulu were more expensive.

Denver was the 10th most expensive city of the 58 MSAs tracked in the report.

Of the top 10 most expensive cities, half of them were in California, with the San Jose MSA leading the pack with a median price of $640,000.

U.S. median price $174,500

The median price in Denver was 43.3 percent more than the national median sales price of $174,500.

In Denver, prices rose by 2 percent from June and 11 percent year-over-year.

Nationally prices rose 4 percent from June and 6 percent from July 2012, marking the 16th consecutive month in which median prices nationwide have increased annually after bottoming in March 2012. according to RealtyTrac.

Chris Mygatt, president of Coldwell Banker Residential Brokerage in Colorado, despite the report, said that home prices are affordable in Denver.

“Home prices are less expensive in Denver than in most major cities,” he said.

“Denver prices are less than in Chicago, for example,” he said.

Although the RealtyTrac report disagrees, as it places the median price at $182,000 in the Chicago MSA, Mygatt does have a point.

RealtyTrac uses Census blocks to define the MSAs. The Chicago MSA not only captures home sales in the Windy City, but in Naperville, Joliet and ner the Indiana and Wisconsin borders.

Such a wide geographic swath includes a large range of home prices.

In Naperville, for example, the median price of a home is about $350,000, while it is about $110,000 in Joliet. In Wilmette, a suburb near Chicago’s North Shore, the median price of a home is approaching $600,000. www.insiderrealestatenews.com

 

Seems like now is the time to buy a home in Boulder!

 

 

John Marcotte

720-771-9401

Search all Boulder homes for sale 

 

BH4U

Filed Under: Uncategorized Tagged With: , , ,

How to handle a low ball offer on your house

April 17, 2013 by

How to handle a low ball offer on your house

How to Handle a Low Ball OfferYou just received a purchase offer from someone who wants to buy your home. You’re excited and relieved, until you realize the purchase offer is much lower than your asking price. How should you respond? Set aside your emotions, focus on the facts, and prepare a counteroffer that keeps the buyers involved in the deal.

1. Check your emotions

A purchase offer, even a very low one, means someone wants to purchase your home. Unless the offer is laughably low, it deserves a cordial response, whether that’s a counteroffer or an outright rejection. Remain calm and discuss with your real estate agent the many ways you can respond to a lowball purchase offer.

2. Counter the purchase offer

Unless you’ve received multiple purchase offers, the best response is to counter the low offer with a price and terms you’re willing to accept. Some buyers make a low offer because they think that’s customary, they’re afraid they’ll overpay, or they want to test your limits.

A counteroffer signals that you’re willing to negotiate. One strategy for your counteroffer is to lower your price, but remove any concessions such as seller assistance with closing costs, or features such as kitchen appliances that you’d like to take with you.

3. Consider the terms

Price is paramount for most buyers and sellers, but it’s not the only deal point. A low purchase offer might make sense if the contingencies are reasonable, the closing date meets your needs, and the buyer is preapproved for a mortgage. Consider what terms you might change in a counteroffer to make the deal work.

4. Review your comps

Ask your Realtor whether any homes that are comparable to yours (known as “comps”) have been sold or put on the market since your home was listed for sale. If those new comps are at lower prices, you might have to lower your price to match them if you want to sell.

5. Consider the buyer’s comps

Buyers sometimes attach comps to a low offer to try to convince the seller to accept a lower purchase offer. Take a look at those comps. Are the homes similar to yours? If so, your asking price might be unrealistic. If not, you might want to include in your counteroffer information about those homes and your own comps that justify your asking price.

If the buyers don’t include comps to justify their low purchase offer, have your real estate agent ask the buyers’ agent for those comps.

6. Get the agents together

If the purchase offer is too low to counter, but you don’t have a better option, ask your real estate agent to call the buyer’s agent and try to narrow the price gap so that a counteroffer would make sense. Also, ask your real estate agent whether the buyer (or buyer’s agent) has a reputation for lowball purchase offers. If that’s the case, you might feel freer to reject the offer.

7. Don’t signal desperation

Buyers are sensitive to signs that a seller may be receptive to a low purchase offer. If your home is vacant or your home’s listing describes you as a “motivated” seller, you’re signaling you’re open to a low offer.

Courtesy of the Taylor Realty Group

Search Boulder homes for sale

 

John Marcotte

720-771-9401

Search all Boulder homes for sale 

 

BH4U

Filed Under: Real Estate Topics Tagged With: , , , , ,

Light Rail expansion to boost home prices

April 10, 2013 by

 Light Rail expansion to boost home prices

Highlights:

  • The W Line, the first leg of FasTracks, opens April 26. 
  • Homes near the light-rail line can expect double-digit appreciation.

By Melissa Olson

Special to InsideRealEstateNews.com

When the West Rail Line opens later this month, nearby homeowners not only can look forward to hopping the first completed FasTrack’s light rail line, but can also expect double-digit home appreciation in the next few years.

“Generally, homeowners close to light rail stops can expect to see their values increase by nearly five percent in the first year, 10 to 11 percent in the second year and between 15 and 16 percent in the third year following the opening of (a light-rail) line,” according to Gary Bauer, an independent Realtor.

Bauer was one of about 110 Realtors who recently rode the 12.1-mile West Rail Line, or W Line, which is scheduled to open on April 26. (The “West Corridor” or “West Rail Line” is the name of the infrastructure itself, while “W Line” is the name of the operational service on the infrastructure.)

The sneak preview of the line on Wednesday was sponsored by the Denver Metro Association of Realtors. The line connects Denver Union Station to Golden.

“The Denver Metro Association of Realtors (has been a longtime supporter of the RTD expansion and we’re extremely excited to be able to arrange previews like this for our members,” said Dave Pike, DMAR president.

“Realtors are a crucial part of Denver’s economy,” Pike said. “It’s important they have the local expertise needed to anticipate opportunities for buyers and sellers throughout the metro area. By organizing events like today’s pre-opening ride on the RTD West Line, DMAR members are able to get invaluable experiences that ultimately help in counseling their buyers and sellers.”

Voters approved the $4.7 billion FasTracks in 2004. The West Line cost $707 million and is expected to serve 20,000 commuters each day.

Lakewood Mayor Bob Murphy was one of the speakers to address the Realtors. He discussed the virtues of what are known as transit-oriented developments near light rail stations.

Murphy said a 1,300 unit mixed use development near the Federal Center has drawn international interest and the “horseshoe” portion of the line is anticipated to be a major commuter hub.

Other future development include a new arts district that will be established north of West Colfax Avenue, a railroad restoration and exhibit museum and student housing opportunities.

The RTD Light Rail Station on the W Line. Photo Credit: http://www.kristalsellsdenver.com

The RTD Light Rail Station on the W Line. Photo Credit: Kristal Kraft

RTD will provide 5,600 parking spaces along the W Line along with $2 million invested by the City of Lakewood to improve bike paths and public art installations planned for the stations, neighborhood walk-up stations, which will make the daily commute much more amenable.

Several employers, such as St. Anthony’s Hospital in Lakewood and DaVita in downtown Denver, sought locations with easy access to the new stations as well as other commercial development projects, bringing thousands of employees to Lakewood each day.

“This will have a very positive impact on the City of Lakewood and homeowners within two to three blocks of the light rail line,” Bauer said.

It also will be great for those on the West side who work in downtown Denver who want to leave their cars at home, he said.

“Downtown commuters will really see the value of these investments,” added Bauer.

Completed eight months ahead of schedule, the W Line has been undergoing trial runs and emergency responder testing.

“The completion of the W Line is really a great example of collaboration among the various agencies needed to make this a reality,” Bauer said.

The W Line features 11 new stations, and will be the first light rail line to run through neighborhoods with 20 at-grade crossings.

“As a Denver native, I am thrilled to witness the transportation vision our local government leaders set into motion several decades ago, said Anthony Rael, a Realtor with RE/MAX Alliance who rode the rail line.

“The new RTD light rail West Line is the latest great achievement in our community and will really create high demand for Lakewood homes,” Rael added.

“Easy access from Lakewood to downtown Denver is a key factor for homebuyers.”

Melissa Olson has more than 20 years of experience in marketing and public relations, spanning a number of industries.  As the marketing director for the largest multiple listing service (MLS) in Colorado, she produced monthly housing reports and analyses for metro Denver over the past eight years. 

 

 

John Marcotte

720-771-9401

Search all Boulder homes for sale 

 

BH4U

Filed Under: Real Estate Topics Tagged With: , , ,

Home Price Growth at 6-Year High

March 31, 2013 by

 

Home Price Growth at 6-Year High

home_price_growth Data through January 2013, released today by S&P Dow Jones Indices for its S&P/Case-Shiller1Home Price Indices, a leading measure of U.S. home prices, showed average home prices increased 7.3% for the 10-City Composite and 8.1% for the 20-City Composite in the 12 months ending in January 2013.

All 20 cities posted year-over-year gains with Phoenix leading the way with a gain of 23.2%. Nineteen of the 20 cities showed acceleration in their year-over-year returns. Despite posting a positive double-digit annual return, Detroit was the only city to show a deceleration. After 28 months of negative annual returns, New York came into positive territory in January.

“After more than two years of consecutive year-over-year declines, New York reversed trend and posted a positive return in January. The Southwest (Phoenix and Las Vegas) plus San Francisco posted the highest annual increases; they were also among the hardest hit by the housing bust. Atlanta and Dallas recorded their highest year-over-year gains.

“Economic data continues to support the housing recovery. Single-family home building permits and housing starts posted double-digit year-over-year increases in February 2013. Despite a slight uptick in foreclosure filings, numbers are still down 25% year-over-year. Steady employment and low borrowing rates pushed inventories down to their lowest post-recession levels.”

As of January 2013, average home prices across the United States are back to their autumn 2003 levels for both the 10-City and 20-City Composites. Measured from their June/July 2006 peaks, the decline for both Composites is approximately 29-30% through January 2013. The January 2013 levels for both Composites are approximately 8-9% from their dip in early 2012.

Additional content on the housing market may also be found on S&P Dow Jones Indices’ housing blog: www.housingviews.com

Boulder homes sales continue to be on the rise!

 

John Marcotte

720-771-9401

Search all Boulder homes for sale 

 

BH4U

Filed Under: Real Estate Topics Tagged With: , , , ,

MBIA Inc shares rise on NY investigation of BofA mortgages

March 26, 2013 by

MBIA Inc shares rise on NY investigation of BofA mortgages

A sign for a Bank of America office is pictured in Burbank, California August 19, 2011. REUTERS/Fred Prouser

By Jochelle Mendonca

(Reuters) – Shares of bond insurer MBIA Inc (MBI.N) rose as much as 7 percent on Friday as investors bet that a new investigation into Bank of America Inc’s (BAC.N) mortgage practices would pressure the bank to settle a $5 billion lawsuit with the company.

Bank of America said in securities filing on Thursday that New York State Attorney General Eric Schneiderman was investigating the bank over the purchase, securitization and underwriting of home loans by Countrywide Financial, which the bank bought in 2008.

MBIA claims that Bank of America is responsible for the writing of dodgy mortgages by Countrywide that were packaged into bonds that MBIA had insured.

MBIA was stuck with huge losses when the loans went bad and now wants the bank to buy back the mortgages.

BTIG analyst Mark Palmer said that if MBIA won its suit, the accepted facts would make it easier for the New York attorney general to make his case that Countrywide had engaged in fraud and that the bank was now responsible.

That made it more likely that Bank of America would want to reach a settlement, he said. Otherwise, it could end up losing both cases.

“If we were serving as general counsel of BAC, we would be advising CEO Brian Moynihan in no uncertain terms that … he immediately move to settle all litigation with the bond insurer,” Palmer said in a client note.

Bank of America did not immediately respond to requests for comment.

A settlement is vital for MBIA. The company said on Wednesday there was a significant risk that its structured finance insurance unit, MBIA Insurance Corp, would be put into liquidation or rehabilitation by its New York regulator if it was unable to settle its claims with the bank.

(Reporting by Tiziana Barghini; Editing by Theodore d’Afflisio and Ted Kerr)

 

John Marcotte

720-771-9401

Search all Boulder CO homes for sale

Filed Under: Real Estate Topics Tagged With: , , , ,

Fannie, Freddie to start new securitization firm, regulator says

March 5, 2013 by

Fannie, Freddie to start new securitization firm, regulator says

A view shows the Fannie Mae logo at its headquarters in Washington March 30, 2012. REUTERS/Jonathan Ernst

By Margaret Chadbourn

 

(Reuters) – Fannie Mae and Freddie Mac will build a new joint company for securitizing home loans as a stepping stone toward shrinking the government’s role in the mortgage market, the regulator of the U.S. government-controlled firms said on Monday.

“The overarching goal is to create something of value that could either be sold or used by policymakers as a foundational element of the mortgage market of the future,” Edward DeMarco, acting director of the Federal Housing Finance Agency, told the National Association for Business Economics.

Fannie Mae and Freddie Mac, which were bailed out by the government in 2008, help finance about two-thirds of new U.S. home loans. DeMarco is seeking to shrink their footprint and reduce risks to the taxpayers that support the mortgage giants.

Since they were seized by the government, the companies have drawn nearly $190 billion from the U.S. Treasury to stay afloat.

By creating a new securitization company, FHFA intends to pave the way for a single securitization platform and force Fannie Mae and Freddie Mac to abandon their separate systems.

The aim is to shrink the role the two government-sponsored enterprises play in the housing system in the absence of legislation from Congress or direction from the Obama administration on their future.

DeMarco said the goal is to build a single infrastructure to support the mortgage credit business.

The new company will be structured as a joint venture that is owned by Fannie Mae and Freddie Mac, DeMarco told reporters on a conference call to discuss FHFA’s plans.

He said the new joint venture is not expected to begin securitizing loans next year. Instead, the focus will be on creating the business and hiring staff. The company will have a separate chief executive and board.

DeMarco expects Congress will ultimately decide how the securitization platform is operated and whether it should be privatized.

“We are on a path to replace the outdated proprietary operational systems of Fannie and Freddie,” DeMarco told reporters. “It could be turned to some form of a market utility.”

Fannie Mae and Freddie Mac do not directly make loans. They provide financing to banks and lenders by purchasing mortgages, which they either keep on their books or package as securities which they then sell to investors with a guarantee.

DeMarco, in laying out FHFA’s goals for 2013, said he also plans to start reducing Fannie Mae and Freddie Mac’s role in the housing finance system by shrinking their business by 10 percent in the loan market for multifamily homes.

Fannie and Freddie will also aim to complete $30 billion in single-family credit guarantee business in 2013, sharing some of the risk with the private market. Those transactions could include mortgage insurance or other types of debt securities.

The companies will also be required to reduce the less liquid portion of their portfolio of mortgages by 5 percent next year. This goal comes on top of an existing mandate that requires Fannie and Freddie to shrink their investment portfolios over time and turn over profits to taxpayers.

(Reporting by Margaret Chadbourn; Editing by Tim Ahmann and David Gregorio)

 

John Marcotte

720-771-9401

Search all homes for sale @ www.boulderhomes4u.com

Filed Under: Real Estate Topics Tagged With: , , ,