August Positive Perspective

Denver Scores Best Month of 2009 for Home Resales: July home resales in metro Denver were the best of any month yet in 2009, but still down from the same month of 2008, according to Metrolist Inc. data released Friday by member brokers. read more here

Pending Home Sales Up for 5th Straight Month: WASHINGTON (Reuters) — Pending sales of previously owned homes rose at a faster-than-expected pace in June, a real estate trade group said August 4, more evidence the housing market was starting to claw out of a three-year slump. The National Association of Realtors said its Pending Home Sales Index, based on contracts signed in June, rose 3.6% to 94.6. It was the fifth straight month of advance and the first such streak in six years, the industry group said. read more here

Fed's Beige Book: Region’s Economy Shows “further signs of stabilization”: The economy in Colorado and six neighboring states “showed further signs of stabilization in June,” the U.S. Federal Reserve reported Wednesday in its latest “Beige Book” survey of the region’s business executives. read more here

Louisville, Colorado Named "Best Place to Live": LOUISVILLE, Colo. - A big honor for one of metro Denver's smaller suburbs. CNNMoney.com has named Louisville the #1 "Best Place to Live" in America. Just a few miles east of the Rockies, CNNMoney says Louisville has the perfect location, charm and energy, and is "weathering the economic downturn well." It cited the city's high-tech, energy and health care industries which make Boulder County's unemployment rate among the lowest in the state. read more here

Grand Junction Home Prices, Sales on the Rise: The real estate roller coaster is beginning to chug uphill again after months of free falling. The median price of Grand Junction-area single-family homes that sold in the second quarter this year increased to $212,019 from $206,667 in the first quarter. The number of homes sold also increased from one quarter to the other, going from 306 to 504. read more here
ServiceMagic.com Plans to Hire up to 200: Online contractor listing service ServiceMagic.com said Monday it expects to hire up to 200 new employees at its Golden headquarters by year’s end. read more here

Greeley Recommended for Retirement Move: HOUSTON - Greeley is among eight affordable cities for relocating retirees profiled in the September/October 2009 issue of Where to Retire magazine.
read more here

Westminster Seeks Development Proposals for Mall Area: The city of Westminster on Monday started seeking proposals from developers on creating a new, urban-type development on 108 acres anchored by Westminster Mall, one of metro Denver’s largest shopping centers. read more here

New Mortgage Regulation

The Housing and Economic Recovery
Act of 2009 (HERA) is a wide-ranging
piece of legislation that strengthens and
modernizes the regulation of government-
sponsored enterprises Fannie Mae
and Freddie Mac, along with the Federal
Home Loan Banks.

Part of HERA imposes sweeping changes
in the lending industry, placing greater
focus on consumer protection. HERA
aims to assure borrowers are better
informed about the loan process and
better protected against deceptive lending
practices.

These changes, effective July 30, 2009,
will have a direct impact on how
Realtors structure their transactions
and how lenders keep the consumer
informed of loan charges through stricter
disclosure requirements.

Four Key Elements

1. If the home buyer is financing the
property, the new regulatory and
investor guidelines will impact and
perhaps even dictate the closing date.
In the past, the parties to the transaction
agreed upon a closing date and all
service providers, including the lender,
worked to meet that date. After July 30,
a closing date may still be written into
the contract, but the earliest any home
purchase transaction can close is 7 days
after the homebuyer receives the initial
mortgage disclosures from the lender.

2. With the exception of the credit
report fee, the lender cannot collect
upfront fees until the initial disclosures
have been received. Disclosures that
are overnighted are considered “received”
the next business day (except Saturdays),
allowing fees to be collected the following
business day.
Historically, lenders could collect upfront
fees immediately at the time of application
for both telephone and in-person
applications. Now, the buyer must receive
initial disclosures before any fees can
exchange hands. The single exception
is the credit report fee, which can be
collected at the time of application.
If a lender takes an application in person
and delivers the disclosures at that time,
the fee can be accepted at that time as
well.

3. The homebuyer must receive a
copy of his appraisal a minimum of
3 business days prior to closing.
A homebuyer who believes the required
3-business-day review period is not
necessary may waive that requirement in
writing.

4. Any increase of more than .125%
in the Annual Percentage Rate (APR)
from the initial Truth in Lending
Disclosure (TIL) requires that the TIL
Disclosure be revised and reissued to
the homeowner.

The homebuyer must receive the revised
TIL Disclosure at least 3 business days
before the closing. If the TIL is mailed, it
is considered “received” 3 business days
after the mailing.

It is typical for many details to change
during the course of the transaction,
including the APR, which can delay
the closing. The APR can be impacted
by many details of the market and the
transaction, including an unlocked rate,
a change in the loan amount, a change
to a different loan product, a rate relock
because of market improvement, a
change in closing date, and changes to
fees associated with the transaction. If
the closing date is critical, it is imperative
that the lender ensure that the estimated
fees are as accurate as possible.

Positive Perspective - Highlighting the Upside of the Economy in a Challenging Market

Forbes: Denver is America’s Best City to Buy a Home: Denver is America’s best city to buy a home, Forbes magazine says in a new ranking of U.S. metro areas.” While the majority of the nation’s housing markets are still working toward a bottom, some cities are boasting fundamentals that make them good places to buy a home now,” Forbes reported last week. read more here

Metrolist: Denver's Resale Housing Market Showing Hopeful Signs: Metro Denver's resale housing market appeared to start returning to normalcy in June, according to sales data Tuesday from Metrolist Inc. Single-family home sales in June, for example, were equally split between the lower price ranges that appeal to first-time homebuyers and pricier houses that attract homebuyers moving up to larger and/or more expensive homes. read more here

Colorado Wind Farm to Supply Tri-State Power Customers: A new wind-power project by Duke Energy Corp. on Colorado's Eastern Plains will supply electricity to customers of Tri-State Generation and Transmission, the state's second-largest power supplier. The wind farm is to be build by Charlotte, N.C.-based Duke Energy (NYSE: DUK), with power supplied to Westminster-based Tri-State under a 20-year power-purchase agreement, Duke said. read more here

Denver Unemployment Numbers Drop: After a steady climb in the unemployment rate for Denver County earlier this year, the percentage of people without jobs has fallen for two consecutive months. The federal Bureau of Labor Statistics said Tuesday the county’s jobless rate for May fell to 8 percent. That’s the lowest percentage so far in 2009. read more here

Study: Colorado Clean-energy Jobs Growing Twice as Fast as Other Industries: Colorado gained jobs in “clean energy” industries twice as fast as the state’s job-growth rate as a whole in the 10 years ending in 2007, a study released Wednesday by the Pew Charitable Trusts reports. read more here

Colorado Cities Rank as Best Places for Young Professionals; Ft. Collins named #1: Colorado cities rank high in "Next Cities” rankings - the best places to live and work for young professionals - in three population categories. Denver, Colorado Springs, Ft. Collins and Pueblo all made the lists with Ft. Collins named the #1 city in the category for population of 100,000 – 200,000. read more here

Denver Real Estate Values Increase!

The 2.1 percent average rise in home prices in 22 out of 25 metropolitan statistical areas (MSAs) from April to May suggests that recovery could be at hand in many areas, says Radar Logic, a real estate data and analytics company.

"This is in stark contrast to the same period during 2008, when a decrease in the velocity of home price depreciation gave way to the worst loss in housing value in recent history," according to the report.

The report calculates that in the key MSAs it studies, prices have fallen 33.5 percent peak-to-trough and 31 percent peak-to-current.

Here are the 10 metropolitan areas where prices increased the most from April to May of this year:

1. Milwaukee, Wis., 4.9 percent
2. Charlotte, 4.7 percent
3. Boston, 4.6 percent
4. Cleveland, 4 percent
5. Washington, D.C., 3.7 percent
6. St. Louis, 3.3 percent
7. Columbus, Ohio, 3.2 percent
8. Seattle, 2.8 percent
9. Denver, 2.3 percent
10. Philadelphia, 1.8 percent

Source: Radar Logic (07/23/2009)

If you are currently thinking about buying and are a first time home buyer now is the time with the $8,000 tax credit scheduled to end December 1st. Contact us to see how we can help you find your dream home!

New Carbon Monoxide Law for Real Estate Rentals and Sales

Beginning July 1, 2009 carbon monoxide detectors will be required for all open permits on single and multi-family dwellings with the enactment of the Lofgren and Johnson Families Carbon Monoxide Safety Act (CRS 38-45). The new law relates to houses that are for sale and rental housing such as apartments that are leased to new tenants. It requires that sellers/landlords of such homes provide well-functioning carbon monoxide alarms. The alarm can be battery operated, plug-in or connected to the electrical system. The Lofgren and Johnson Families Carbon Monoxide Safety Act states that approved carbon monoxide detectors need to be located within fifteen feet of the entrance to all rooms used lawfully for sleeping purposes. In addition, if the permit is for a multi-family rental unit, a carbon monoxide detector needs to be located within twenty-five feet of any fuel-fired heater, fuel-fired appliance, fireplace or garage.

The bill was signed into law on March 24 by Governor Bill Ritter in response to public concern following the deaths of the Lofgren family last November 2008 at a vacation home in Aspen, and DU student, Lauren Johnson, this past January due to carbon monoxide poisoning.

Preparation is the best prevention! Purchase and install a carbon monoxide alarm!

A CO alarm is different than a smoke detector. A CO alarm is designed to alarm if potentially dangerous levels of CO are detected in the home or business. CO alarms can be purchased from any hardware store and most department stores. A CO alarm should meet special requirements set by the Consumer Product Safety Commission (CPSC). The label should list that the detector meets the requirements of the current UL standard 2034 or the requirements of the IAS 6-96 standard. A properly installed and operating CO alarm will sound an alarm for different levels of CO. The concentration is measured in parts per million (ppm). When the concentration is 1 to 70 ppm, most people will not experience any symptoms. As the level rises, some people may experience headaches, dizziness, fatigue and nausea. Heart patients may experience an increase in chest pain. When the levels increase above 150-200 ppm, unconsciousness and death are possible. A CO alarm should be installed according to the manufacturer’s instructions. Follow directions carefully and save the directions in a safe place. Learn how the alarm works. A CO alarm should be installed in hallways within 15 feet of every sleeping area of the home. The alarm must not be covered by furniture or draperies. Because CO mixes with the air in the building, the alarm may be placed high on the wall or installed in a plug-in receptacle.

How Do Carbon Monoxide Detectors Work?

The electronic-type detector continuously samples the surrounding air and clears the sensor over short periods of time. They do not sound an alarm until a preset concentration of carbon monoxide has been sustained for a preset time (refer to the manufacturer’s operating manual for further information). This type operates on 120 volt house current and the sensor has a life expectancy of between five and ten years, depending on the brand. A CO alarm should be installed according to the manufacturer’s instructions. The battery-operated model should be located on the sleeping level within 15 feet of any bedroom. The electronically-operated model would be best located on the level where your heater, hot water heater, gas dryer, or other major fuel-burning appliances are located. This detector should be located at least 15 feet away from these appliances in order to avoid false alarms.

What Should I Do If the Detector Goes Off?

If your carbon monoxide detector goes off and you are not experiencing carbon monoxide poisoning symptoms, you should ventilate your home (open windows and doors to let in fresh air), turn off any combustion appliances, and call a qualified service technician. If you are experiencing symptoms, you should evacuate all residents from the home, go to a neighbor’s and dial 9-1-1. The fire department has specialized equipment which can measure the level of carbon monoxide in the home. They will also help to ventilate the home, and advise you to call a service technician or the utility company as soon as possible. If your symptoms are severe, you may need to be taken to the emergency room for treatment. The UL standards which are used for carbon monoxide detectors have recently been revised in order to correct problems with over-sensitivity under some conditions. Always dial 9-1-1 if you suspect carbon monoxide poisoning as this can be fatal in high enough quantities. Unborn children, infants, children, the elderly, and anyone with cardiovascular (heart) or respiratory (lung) conditions are more susceptible to poisoning at lower levels.

Jefferson County Colorado Realtor explains FICO

Several months ago, just about anyone breathing could get a loan to buy a home in the Jefferson County Colorado Real Estate Market. Fast forward to today and you might have to give up your first born to get that same loan. It is definitely harder to get a loan than it was, but there are things you can do to help improve your chances. If you have credit score issues, you can have your credit repaired in the next six months and still cash in on the $8,000 first time buyer credit.

First let’s identify what a FICO score is. It is an abbreviation for Fair Issac Company. It is a measure of borrowers credit risk commonly used by mortgage people when determining loan worthiness. It is typically between 300 and 850. It not only determines whether you get the loan, but often will also dictate the terms of the loan.

Last year a good credit score was between 680 and 720; fast forward to now and it really needs to be in the mid 700’s.

The score is comprised using the length of your credit history, your payment history, the types of credit you use, the amount you owe and the amount of new credit you have obtained. These things work together to determine your FICO score.

If your credit score is low; consider doing the following things:

Check your credit at www.annualreport.com ; this will allow you to check your credit for free; if you want your score there is a nominal charge of around $9.00

Fix any errors as quickly as you can by providing the needed documentation to the requesting party.

Reduce what you owe, pay on time and do not apply for credit you do not need.

March 2009 Auction for over 200 foreclosed homes in Colorado

Over 200 foreclosed homes are to be sold at this auction.

When: Saturday, March 21st
Where: Colorado Convention Center
Exhibit Hall B
700 14th Street
Denver CO 80202
Time: Registration at 8:00 a.m.
Auction at 9:30 a.m.

For additional information including a list of properties contact us.