Many buyers will find themselves in the market for a new appliance or two soon after closing. Replacing appliances left behind in a sold home, no appliances in a new purchase or you might just want to upgrade from what currently exists on the property. Often times the plan might even extend further to replacing, upgrading or installing other energy saving measures such as new windows, insulation, HVAC or hot water heaters.
It does not matter if you are a new home purchaser or just looking to make some improvements to a current home, it is important to know that there is cash set aside in the American Recovery and Reinvestment Act passed last February! Here are some of the highlights:
-Tax Credit: 30% of the Cost up to $1,500
Expires December 31, 2010
Must be existing home & principal residence (No rentals)
Includes work to install new or upgrade existing: HVAC, Insulation, Roofing, Water Heaters, Windows and Doors.
Credit can only be taken off the cost of materials- not labor & installation.
Make sure you check out HOW TO APPLY for the tax credit.
-Consumer rebates for new appliance purchases
Over $300 million set aside in stimulus bill for direct consumer rebates
Each state will have its own rebate system and specific requirements.
Rebates will most likely be between $50 - $250 depending on appliance and price.
States will most likely have the program details in Dec. 2009 or early 2010
Most likely these rebates will NOT be retroactive (so you might hold off those purchases for now.)
Don't let these rebates and tax credits pass you by! They can certainly help make those new appliances and home upgrades a little more affordable. For more information and full program details be sure to check out http://www.energystar.gov/ .
Monday, December 14, 2009
Wednesday, December 2, 2009
How are home sales these days?
Home Sales Surge A combination of factors helped mortgage rates improve yet again during the short Thanksgiving week. Strong demand for the Treasury auctions, low inflation, and a fragile economy were all positive for mortgage markets. As a result, mortgage rates dropped to the lowest levels since January.
The consensus economic outlook is for a gradual recovery with low inflation, and the economic data released during the week was consistent with this view. Economic growth during the third quarter of the year was revised lower, but both the Fed and private economists raised their forecasts for future growth. This week's economic reports indicated that some sectors of the economy are improving, such as the housing market (see below), while others reflected weakness. Wednesday's data on Core PCE prices continued to show little inflationary pressure, which allows the Fed to keep rates low to assist the economic recovery.
This week's home sales data far exceeded expectations across the board. October Existing Home Sales jumped 10% from September. Inventories of unsold existing homes dropped to a 7.0-month supply, the lowest level since February 2007. October New Home Sales rose 6%, and inventories of new homes declined to the lowest level in decades. Extremely low mortgage rates, high affordability levels, and the first-time homebuyer tax credit boosted sales in October.
Monday, November 30, 2009
Denver-the local view
Denver is projected, by almost every survey and economic forecast, to be one of the primary cities emerging out of this economic climate. It seems apparent that Denver's real estate market is already moving up the north side of this economic curve.
According to data from InsideRealEstateNews.com; in 1999 (from 1/1 to 10/31), Denver metro had 39,867 homes sold. The peak was in 2004 when 45,397 homes were sold in the first 10 months. So far this year, metro Denver has had 35,512 sales (and climbing).
Home sales in the 7 county Denver area were up 11 percent from October 2008. The median price, for the same period, grew more than 4.5 percent.
Sales in price ranges above $250,000 were also improving as move-up buyers surfaced over the past few months. Expect this to continue into 2010, especially with the new $6,500 tax credit.
Our foreclosure activity was down over 6% from last month from 10/08, however Colorado ranked #11 in foreclosures nationally, down from being #1 two years ago.
Metro Denver's active listing inventory fell below 20,000 homes last month, down 15% from 10/08, and down over 30% from 2005.
The average price of a home sold in October was $261,771, which is almost 5% higher than in 10/08.
Absorption rates changed for the better, with single family rates down from 5.5 months to 4.9 months of supply. Also, homes in the under $300,000 price ranges are moving significantly faster than the upper ranges.
According to data from InsideRealEstateNews.com; in 1999 (from 1/1 to 10/31), Denver metro had 39,867 homes sold. The peak was in 2004 when 45,397 homes were sold in the first 10 months. So far this year, metro Denver has had 35,512 sales (and climbing).
Home sales in the 7 county Denver area were up 11 percent from October 2008. The median price, for the same period, grew more than 4.5 percent.
Sales in price ranges above $250,000 were also improving as move-up buyers surfaced over the past few months. Expect this to continue into 2010, especially with the new $6,500 tax credit.
Our foreclosure activity was down over 6% from last month from 10/08, however Colorado ranked #11 in foreclosures nationally, down from being #1 two years ago.
Metro Denver's active listing inventory fell below 20,000 homes last month, down 15% from 10/08, and down over 30% from 2005.
The average price of a home sold in October was $261,771, which is almost 5% higher than in 10/08.
Absorption rates changed for the better, with single family rates down from 5.5 months to 4.9 months of supply. Also, homes in the under $300,000 price ranges are moving significantly faster than the upper ranges.
Wednesday, November 11, 2009
How staging your home to get top dollar in the market
If you are concerned about getting a reasonable offer price for your home when selling in today's more challenging market, there are several things you can do to position your home in the best light to make it the last home buyers see and want to put in an offer on.
Staging your home is an easy, cost effective way to get top dollar when an offer comes in on your home. Statistics have shown homes that are staged bring in up to 5 percent more than if the home is vacant. Sellers should also declutter, touch up the interior with a fresh coat of paint if needed and enhance street appeal through landscaping and outside maintenance.
Less is more when it comes to staging. Also, it is good to have at least one item of bright color to lighten up a room such as fresh flowers, painting, or a colorful vase. Take everything off the kitchen counter except the coffeemaker. Also, take down personal pictures. Often, I have clients I take to homes and they do not remember the house, but what pictures were in the home of the people that lived there. Take extra seasonal clothing out of closets so they seem more spacious. Have window treatments cleaned and leave open to make rooms seem as light and bright as possible.
Another good idea before listing your home to sell is having a cleaning professional come and also a yard service clean up the lawn if you are too busy to do this yourself.
Staging your home is an easy, cost effective way to get top dollar when an offer comes in on your home. Statistics have shown homes that are staged bring in up to 5 percent more than if the home is vacant. Sellers should also declutter, touch up the interior with a fresh coat of paint if needed and enhance street appeal through landscaping and outside maintenance.
Less is more when it comes to staging. Also, it is good to have at least one item of bright color to lighten up a room such as fresh flowers, painting, or a colorful vase. Take everything off the kitchen counter except the coffeemaker. Also, take down personal pictures. Often, I have clients I take to homes and they do not remember the house, but what pictures were in the home of the people that lived there. Take extra seasonal clothing out of closets so they seem more spacious. Have window treatments cleaned and leave open to make rooms seem as light and bright as possible.
Another good idea before listing your home to sell is having a cleaning professional come and also a yard service clean up the lawn if you are too busy to do this yourself.
Wednesday, October 28, 2009
What is changing in the Denver market?
Home prices in the Denver area rose in August for the sixth straight month, and prices are now nearly where they were a year ago, according to Standard & Poor's closely watched S&P/Case-Shiller Home Prices Index.
Home prices in Denver rose 1.0 percent in August from the previous month, according to the index report, released Tuesday. That follows a 1.5 percent rise in July, a 2.5 percent month-over-month rise in June, a 1.3 percent increase in May and a 1.5 percent rise in April.
Denver home prices were down 1.9 percent in August compared with the same month in 2008.
Denver’s year-over-year decline in August was the second-smallest of any of the 20 U.S. cities tracked by the Case-Shiller Index, bested only by Dallas (a 1.2 percent decline from August 2008). All 20 cities declined to some extent. The steepest declines were in Las Vegas (down 29.9 percent year-over-year), Phoenix (down 25.1 percent) and Detroit (down 22.6 percent).
“Broadly speaking, the rate of annual decline in home price values continues to improve” David Blitzer, chairman of the Index Committee at Standard & Poor’s, said in a statement Tuesday.
“While many of the markets remain down versus this time last year, the relative rate of decline has shown some real improvement,” Blitzer said. “California, in particular, has seen some real positive prints in recent months. We see this general trend whether you look at the as-reported data or the seasonally adjusted figures.
“Once again, however, we do want to remind people of the upcoming expiration of the Federal First-Time Buyer’s Tax Credit in November and anticipated higher unemployment rates through year-end. Both may have a dampening effect on home prices.”
The index is compiled by comparing matched-price pairs for thousands of single-family homes in each market. Standard & Poor’s and Fiserv Inc. publishes it.
Home prices in Denver rose 1.0 percent in August from the previous month, according to the index report, released Tuesday. That follows a 1.5 percent rise in July, a 2.5 percent month-over-month rise in June, a 1.3 percent increase in May and a 1.5 percent rise in April.
Denver home prices were down 1.9 percent in August compared with the same month in 2008.
Denver’s year-over-year decline in August was the second-smallest of any of the 20 U.S. cities tracked by the Case-Shiller Index, bested only by Dallas (a 1.2 percent decline from August 2008). All 20 cities declined to some extent. The steepest declines were in Las Vegas (down 29.9 percent year-over-year), Phoenix (down 25.1 percent) and Detroit (down 22.6 percent).
“Broadly speaking, the rate of annual decline in home price values continues to improve” David Blitzer, chairman of the Index Committee at Standard & Poor’s, said in a statement Tuesday.
“While many of the markets remain down versus this time last year, the relative rate of decline has shown some real improvement,” Blitzer said. “California, in particular, has seen some real positive prints in recent months. We see this general trend whether you look at the as-reported data or the seasonally adjusted figures.
“Once again, however, we do want to remind people of the upcoming expiration of the Federal First-Time Buyer’s Tax Credit in November and anticipated higher unemployment rates through year-end. Both may have a dampening effect on home prices.”
The index is compiled by comparing matched-price pairs for thousands of single-family homes in each market. Standard & Poor’s and Fiserv Inc. publishes it.
Tuesday, October 20, 2009
How do I select the best neighborhood?
The first step in selecting the best neighborhood that will best fit your needs is determining the lifestyle you prefer.
There are several options including a single family home, high rise condo, mid-rise condo, townhome, patio home, or loft living. You may want to be in a more urban area or suburban area. We have the luxury here in Colorado to even find a home in the mountains.
Some other important factors to consider are:
There are several options including a single family home, high rise condo, mid-rise condo, townhome, patio home, or loft living. You may want to be in a more urban area or suburban area. We have the luxury here in Colorado to even find a home in the mountains.
Some other important factors to consider are:
- Neighborhood parks, bike paths, libraries, etc.
- Commute time to work, airport, functions
- Distance to schools, church, health clubs, physicians
- Access to shopping, restaurants, movies
- Transportation needs such as public or if you will need a car
Your next consideration could be the type of neighborhood you prefer. Do you want a new neighborhood or an old one? An older, existing neighborhood is usually more centrally located and has mature landscaping and charm. Typically, a newer neighborhood tends to be more suburban with a fresh, clean look to it, but little mature vegetation.
School districts can be an important factor. Is a private or public school important? With either, it is good to research options and look at test scores, ratings, and make a trip to the schools.
Look that the crime statistics. Is the crime in the area increasing over time or decreasing?
Is there a Home Owner's Association? If so, what are the rules and regulations you must follow?
It is a good idea to drive around the neighborhood during the day and at night. Do you feel a sense of community and pride of ownership? Remember, when you buy a home, you buy the neighborhood as well.
Thursday, October 15, 2009
What are some good home winterizing tips for outdoors and indoors?
Outdoors
1. Check the gutters and downspout systems and remove all debris, and check that the opening between the gutter to make sure the downspout is unobstructed. Look for loose joints or other structural problems with the system. You can repair with pop rivets. Also, a gutter sealant works well for any connections that may be leaking.
2. Drain or blow out sprinkler systems and irrigation systems , especially in colder areas. You can rent a compressor and do this yourself, or contact a landscape or irrigation system installer to handle the job. This is also the time to shut off outdoor faucets and install freeze-proof faucet covers as needed.
3. Close off foundation vents to help prevent pipe freezes when the forecasts begin calling for freezing temperatures. Once closed, you can leave them that way until it warms up again in the spring.
4. Pack up the patio furniture and be sure to make sure the cushions are dry before storing in order to prevent mildew growth.
5. Check weatherstripping around door and windows that are worn. Air leaks around doors and windows can rob your home of expensive heated air and create uncomfortable drafts that keep you feeling chilly. Also, it is a good time to check the condition of caulking around exterior door and window frames.
Indoors
1. Change smoke detector batteries with a fresh one. When you are done, check the detector to make sure it is working properly.
2. Install a carbon monoxide detector to check for too much propane and gas in the home. As houses get closed up for winter, the chances of carbon monoxide poisoning from malfunctioning gas appliances increases substantially.
3 Change your old furnace filter with a new one. While completing this task, check the furnace for worn belts, lubrication need or other servicing that might be required. Follow any manufacturer safety instructions for shutting the power and fuel to the furnace before servicing.
1. Check the gutters and downspout systems and remove all debris, and check that the opening between the gutter to make sure the downspout is unobstructed. Look for loose joints or other structural problems with the system. You can repair with pop rivets. Also, a gutter sealant works well for any connections that may be leaking.
2. Drain or blow out sprinkler systems and irrigation systems , especially in colder areas. You can rent a compressor and do this yourself, or contact a landscape or irrigation system installer to handle the job. This is also the time to shut off outdoor faucets and install freeze-proof faucet covers as needed.
3. Close off foundation vents to help prevent pipe freezes when the forecasts begin calling for freezing temperatures. Once closed, you can leave them that way until it warms up again in the spring.
4. Pack up the patio furniture and be sure to make sure the cushions are dry before storing in order to prevent mildew growth.
5. Check weatherstripping around door and windows that are worn. Air leaks around doors and windows can rob your home of expensive heated air and create uncomfortable drafts that keep you feeling chilly. Also, it is a good time to check the condition of caulking around exterior door and window frames.
Indoors
1. Change smoke detector batteries with a fresh one. When you are done, check the detector to make sure it is working properly.
2. Install a carbon monoxide detector to check for too much propane and gas in the home. As houses get closed up for winter, the chances of carbon monoxide poisoning from malfunctioning gas appliances increases substantially.
3 Change your old furnace filter with a new one. While completing this task, check the furnace for worn belts, lubrication need or other servicing that might be required. Follow any manufacturer safety instructions for shutting the power and fuel to the furnace before servicing.
Sunday, October 4, 2009
Sunday, September 27, 2009
Thinking about real estate as part of your investment portfolio?
Acquiring investment rental property such as houses, condos or townhomes has historically been a great investment for the long term. The return over a 10 to 20 year period has been better than any other speculation, although owning real estate requires interest and attention to protect and enhance your investment.
Below is a scenario that may be helpful in deciding if an investment property is right for you:
Purchase price = $250,000
(plus closing costs)
Loan Amount (80%) = $200,000
Monthly payment at 5.5% = $1,136 (Principal and Interest)
Assume taxes/insurance/HOA = $200
Rounding up, the monthly payment is $1,350/mo.. A reasonable rule of thumb for a property in decent condition would be to project about 10-12 percent of monthly revenue for vacancy and maintenance.
The projection equates to a break even proposition on the surface. However, other factors working for you include:
Below is a scenario that may be helpful in deciding if an investment property is right for you:
Purchase price = $250,000
(plus closing costs)
Loan Amount (80%) = $200,000
Monthly payment at 5.5% = $1,136 (Principal and Interest)
Assume taxes/insurance/HOA = $200
Rounding up, the monthly payment is $1,350/mo.. A reasonable rule of thumb for a property in decent condition would be to project about 10-12 percent of monthly revenue for vacancy and maintenance.
The projection equates to a break even proposition on the surface. However, other factors working for you include:
- Tax benefits
- PITI essentially stays the same while...
- Rents gradually increase along with inflation
- Your tenant's rent is paying down your principle balance monthly
Other helpful hints:
Buy properties at or below the neighborhood's average sales price.
Preference should be given to three bedroom house and two bedroom/two bath condos for optimum returns.
The location word-meaningful for higher rents, as well as higher values. A desired location is also less susceptible to ups and downs of the market. Know your Landlord (and Tenant) Rights.. Use a good lease and security deposit forms, understand everything from move-in agreement, keys, number of tenants, pets, and eviction procedures.
In time, rental properties can provide a portfolio nest egg is appreciating values of properties continue to do what they have done in the past.
Friday, September 18, 2009
Are builders starting new homes in this market?
With interest rates for a 30 year fixed loan still hovering around 5% and first-time homebuyers scrambling to obtain the $8,000 tax credit before the November 30th deadline, there is less inventory and new homes being built.
New home building increased in August, a government report said Thursday, further signaling that home builders are regaining their confidence in the housing market recovery.
The Census Bureau reported Thursday that builders broke ground for 598,000 new homes during August, up 1.5% from a revised 589,000 in July. That was considerably higher than industry experts were predicting. Furthermore, building permits rose 2.7% to 579,000 from a revised 564,000 in July.
"Many builders have not only reduced excess inventory, but now are actually reporting such low inventory that they need to start more homes to replace those they've just sold," said Brad Hunter, chief economist for Metrostudy, a real estate analytics firm.
Both starts and permits are still well off from their levels of a year ago. The number of starts is down 29.6% from 849,000 last August, and permits dropped 32.4% from 857,000 last year.
The housing starts report was the latest in a series of releases that indicate that the market may have bottomed.
There are some clouds on the horizon. Foreclosures continue to trouble many markets; another 76,000 homes were repossessed in August. That was actually an improvement over recent months, but the expectation is that the rate of foreclosures will begin rising again.
That's because a great number of non-conventional mortgage loans, including interest-only mortgages and option ARMS, will reset over the next year or so, yielding substantial increases in the monthly mortgage payments for homeowners. Many people will not be able to afford the increases.
With interest-only loans, homeowners pay just the interest for a fixed number of months, usually 60, before they have to start paying off the mortgage at fully amortizing rates. There was an explosion of these mortgages issued in 2005, so many will reset in 2010.
Option ARMs are loans in which borrowers are permitted to make minimum payments every month, payments that are less than their monthly interest charges. Many borrowers use that option for as long as they can, but once the mortgage balance reaches between 110% and 125% of the original loan balance, the loans reset into a fully amortizing mortgage -- and payments rise steeply since the balances themselves have also gone up.
Real estate analysts predict a spike in these resetting loans, which might force another wave of homeowners into foreclosure. The fear is that all these foreclosed homes will flood the market and drive down prices even more for existing homes, making it harder for new-home builders to compete.
New home building increased in August, a government report said Thursday, further signaling that home builders are regaining their confidence in the housing market recovery.
The Census Bureau reported Thursday that builders broke ground for 598,000 new homes during August, up 1.5% from a revised 589,000 in July. That was considerably higher than industry experts were predicting. Furthermore, building permits rose 2.7% to 579,000 from a revised 564,000 in July.
"Many builders have not only reduced excess inventory, but now are actually reporting such low inventory that they need to start more homes to replace those they've just sold," said Brad Hunter, chief economist for Metrostudy, a real estate analytics firm.
Both starts and permits are still well off from their levels of a year ago. The number of starts is down 29.6% from 849,000 last August, and permits dropped 32.4% from 857,000 last year.
The housing starts report was the latest in a series of releases that indicate that the market may have bottomed.
There are some clouds on the horizon. Foreclosures continue to trouble many markets; another 76,000 homes were repossessed in August. That was actually an improvement over recent months, but the expectation is that the rate of foreclosures will begin rising again.
That's because a great number of non-conventional mortgage loans, including interest-only mortgages and option ARMS, will reset over the next year or so, yielding substantial increases in the monthly mortgage payments for homeowners. Many people will not be able to afford the increases.
With interest-only loans, homeowners pay just the interest for a fixed number of months, usually 60, before they have to start paying off the mortgage at fully amortizing rates. There was an explosion of these mortgages issued in 2005, so many will reset in 2010.
Option ARMs are loans in which borrowers are permitted to make minimum payments every month, payments that are less than their monthly interest charges. Many borrowers use that option for as long as they can, but once the mortgage balance reaches between 110% and 125% of the original loan balance, the loans reset into a fully amortizing mortgage -- and payments rise steeply since the balances themselves have also gone up.
Real estate analysts predict a spike in these resetting loans, which might force another wave of homeowners into foreclosure. The fear is that all these foreclosed homes will flood the market and drive down prices even more for existing homes, making it harder for new-home builders to compete.
Thursday, September 10, 2009
How are Denver home prices holding up?
As the Denver-area housing market moves toward the end of its prime selling season, August sales were down year over year, but selling prices were relatively stable.
Last month’s home sales, including both single-family homes and condominiums, dropped 14 percent to 3,905 from August 2008, according to a Wednesday report by real estate data provider Metrolist Inc. of Greenwood Village. Sales were down 12 percent from July of this year.
But the average selling price for both types of housing decreased only 3.87 percent year over year to $251,008, and was roughly flat from July with only a 0.68 percent drop.
The median, or middle, selling price for single-family homes alone — standard houses — was basically flat year over year at $227,000, down 0.89 percent from August 2008. Last month’s median price was down 1.26 percent from July of this year.
Median price is the midpoint between highest and lowest prices, and is considered a truer measure of price by many real estate experts because it’s not skewed by extremes.
Both houses and condos also sold faster in August, with fewer days on the market for sale year over year and from July of this year.
Other Denver-area housing market data for August, according to Metrolist, includes:
• Single-family home sales — Down 14.38 percent to 3,066 from August 2008, and down 12 percent from July of this year.
• Single-family home average selling price — Down 3.71 percent to $273,972 year over year, and roughly flat from July with a 0.97 percent drop.
• Single-family home days on market (DOM) — Houses are selling faster, with an August DOM of 94. That’s down 3 percent year over year, and down 4 percent from July.
• Condo sales — Dropped 12.7 percent to 839 last month compared to August 2008, and were down 12.24 percent from this July.
• Condo average selling price — Fell 3.87 percent to $167,090 from August 2008, but relatively flat from July of this year with a 0.94 percent dip.
• Condo average days on market — Condos are also selling faster, with 98 DOM for August. That’s down 5.77 percent year over year, and down 10 percent from July.
• Year-to-date total home sales — Dropped 16.38 percent to 27,708 from same period of ’08.
• Year-to-date total average selling price — Decreased 6.67 percent to $240,746 from first eight months of last year.
• Year-to-date average days on market — 102, down 1.92 percent year over year.
Last month’s home sales, including both single-family homes and condominiums, dropped 14 percent to 3,905 from August 2008, according to a Wednesday report by real estate data provider Metrolist Inc. of Greenwood Village. Sales were down 12 percent from July of this year.
But the average selling price for both types of housing decreased only 3.87 percent year over year to $251,008, and was roughly flat from July with only a 0.68 percent drop.
The median, or middle, selling price for single-family homes alone — standard houses — was basically flat year over year at $227,000, down 0.89 percent from August 2008. Last month’s median price was down 1.26 percent from July of this year.
Median price is the midpoint between highest and lowest prices, and is considered a truer measure of price by many real estate experts because it’s not skewed by extremes.
Both houses and condos also sold faster in August, with fewer days on the market for sale year over year and from July of this year.
Other Denver-area housing market data for August, according to Metrolist, includes:
• Single-family home sales — Down 14.38 percent to 3,066 from August 2008, and down 12 percent from July of this year.
• Single-family home average selling price — Down 3.71 percent to $273,972 year over year, and roughly flat from July with a 0.97 percent drop.
• Single-family home days on market (DOM) — Houses are selling faster, with an August DOM of 94. That’s down 3 percent year over year, and down 4 percent from July.
• Condo sales — Dropped 12.7 percent to 839 last month compared to August 2008, and were down 12.24 percent from this July.
• Condo average selling price — Fell 3.87 percent to $167,090 from August 2008, but relatively flat from July of this year with a 0.94 percent dip.
• Condo average days on market — Condos are also selling faster, with 98 DOM for August. That’s down 5.77 percent year over year, and down 10 percent from July.
• Year-to-date total home sales — Dropped 16.38 percent to 27,708 from same period of ’08.
• Year-to-date total average selling price — Decreased 6.67 percent to $240,746 from first eight months of last year.
• Year-to-date average days on market — 102, down 1.92 percent year over year.
Tuesday, September 8, 2009
What is a good Denver neighborhood with many shops and restaurants within walking distance?
These days citizens in the United States are trying to be more earth friendly. Many cities offer recycling and Denver also allows for composting. If you are looking for a neighborhood in which you can be "green" and still be close enough to walk to shops and restaurants or bike downtown, be sure and check out the Lower Highlands area.
The Lower Highlands area is just north of downtown and offers many bungalow, ranch and Victorian style homes, as well as many new build condominiums. Besides shopping, entertainment, coffee houses, and restaurants within walking distance, the neighborhood has developed a sense of community it didn't possess five years ago. Also, Men's Journal named the Lower Highland neighborhood one of the 30 coolest in America.
The average sales price in this neighborhood hit its peak of $330,993 during the first quarter of this year and has settled at $257,254 during the second quarter, according to Metrolist data analysis, making this area attractive to first time buyers and anyone looking for an area with many walking destinations.
The Lower Highlands area is just north of downtown and offers many bungalow, ranch and Victorian style homes, as well as many new build condominiums. Besides shopping, entertainment, coffee houses, and restaurants within walking distance, the neighborhood has developed a sense of community it didn't possess five years ago. Also, Men's Journal named the Lower Highland neighborhood one of the 30 coolest in America.
The average sales price in this neighborhood hit its peak of $330,993 during the first quarter of this year and has settled at $257,254 during the second quarter, according to Metrolist data analysis, making this area attractive to first time buyers and anyone looking for an area with many walking destinations.
Wednesday, September 2, 2009
Thinking about retiring in Colorado?
If there were not enough reasons to move to Colorado, this article talks about another one.
Colorado is a " tax-friendly destination for retirees" because of a low income-tax rate and various exemptions available to seniors, Kiplinger.com says.
In its state-by-state "Guide to Taxes on Retirees" by the personal-finance and business website, Kiplinger says Colorado's income tax rate is 4.64 percent of federal taxable income, lower than most states.
It also said Colorado taxpayers ages 55 to 64 can exclude up to $20,000 of Social Security and qualified retirement income from state income taxes, while those 65 and older can exclude up to $24,000.
As for property taxes, it said full-time Coloradans age 65 and older can qualify for a homestead exemption of up to 50 percent of their property value, up to a maximum reduction of $200,000.
There also are property-tax rebate and deferral programs for Colorado residents age 65 or older or disabled, or a surviving spouse age 58 or older, Kiplinger said.
There is no state inheritance tax, and the state estate tax does not apply to those who died after Jan. 1, 2005, the report said.
On the other hand, Kiplinger noted that in Colorado, seniors must add back the portion of Social Security benefits not taxed by the federal government to calculate their eligibility for certain state tax breaks.
Nationwide, Kiplinger said seven states — Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming — have no state income tax at all, but that many states with an income tax have compensating incentives for retirees that could make them an even better deal for seniors.
At the other extreme, Kiplinger cited five states — California, Connecticut, Nebraska, Rhode Island and Vermont — that fully tax most pensions and other retirement income.
Colorado is a " tax-friendly destination for retirees" because of a low income-tax rate and various exemptions available to seniors, Kiplinger.com says.
In its state-by-state "Guide to Taxes on Retirees" by the personal-finance and business website, Kiplinger says Colorado's income tax rate is 4.64 percent of federal taxable income, lower than most states.
It also said Colorado taxpayers ages 55 to 64 can exclude up to $20,000 of Social Security and qualified retirement income from state income taxes, while those 65 and older can exclude up to $24,000.
As for property taxes, it said full-time Coloradans age 65 and older can qualify for a homestead exemption of up to 50 percent of their property value, up to a maximum reduction of $200,000.
There also are property-tax rebate and deferral programs for Colorado residents age 65 or older or disabled, or a surviving spouse age 58 or older, Kiplinger said.
There is no state inheritance tax, and the state estate tax does not apply to those who died after Jan. 1, 2005, the report said.
On the other hand, Kiplinger noted that in Colorado, seniors must add back the portion of Social Security benefits not taxed by the federal government to calculate their eligibility for certain state tax breaks.
Nationwide, Kiplinger said seven states — Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming — have no state income tax at all, but that many states with an income tax have compensating incentives for retirees that could make them an even better deal for seniors.
At the other extreme, Kiplinger cited five states — California, Connecticut, Nebraska, Rhode Island and Vermont — that fully tax most pensions and other retirement income.
Saturday, August 22, 2009
Home Resales are on the Rise
The U.S. housing market is on the rebound and sales are outpacing what economist first thought. Resale homes in July showed the largest monthly increase in 10 years by posting a 7.2 percent gain. Many of these sales are thought to be first-time homebuyers trying to take advantage of the $8,000 tax credit that expires November 30. The credit is for first-time homebuyers and allows them to get a credit of up to $8,000, or 10 percent of the purchase price of the home.
This is a busy time of year in the market. Sales hit a seasonally adjusted annual rate of 5.24 million in July, from a pace of 4.89 million in June. It was the fourth-straight monthly increase and the strongest month since August 2007. Sales had been expected to rise to an annual pace of 5 million, according to economists surveyed by Thomson Reuters.
There are risks that may affect this rise of sales though with job cuts still prevalent, mortgage rates and the expiration of the first-time homebuyer credit. If you are planning on buying a home and staying in it for more than a few years, my opinion is that real estate will always be a good investment.
This is a busy time of year in the market. Sales hit a seasonally adjusted annual rate of 5.24 million in July, from a pace of 4.89 million in June. It was the fourth-straight monthly increase and the strongest month since August 2007. Sales had been expected to rise to an annual pace of 5 million, according to economists surveyed by Thomson Reuters.
There are risks that may affect this rise of sales though with job cuts still prevalent, mortgage rates and the expiration of the first-time homebuyer credit. If you are planning on buying a home and staying in it for more than a few years, my opinion is that real estate will always be a good investment.
Monday, July 13, 2009
Renting vs. Owning
I get many questions about today's market and if we have reached the bottom. The Denver area's home inventory is lessening month over month and is down over 20% since last year. Timing the bottom in any real estate market is nearly impossible. By the time the bottom has been reached, prices have already started increasing and the smart buyers have chosen the best values from the inventory.
If you are making the decision to continue renting or think it is the right time for you to buy, this will help you make a more informed decision by weighing the pros and cons of each. In most cases, the scales tip in favor of purchasing a home over renting one.
Advantages of Homeownership:
Tax Breaks: Mortgage interest and property taxes are generally tax deductible on your federal and state income tax returns.
Investment Appreciation: Real estate appreciation historically has paralleled or exceeded the rate of inflation. On average, homes have appreciated at an average rate of about 5% annually while some years have been more or less. Appreciation varies across the nation by geographic market.
Capital Gains Benefits: Homeowners are allowed considerable profit without incurring capital gains tax when selling their primary residence. Federal law was revised in 1997 allowing an individual up to $250,000 in gain. Homeowners should consult their legal or tax advisor regarding this popular tax benefit.
Housing Cost Stability: For buyers with a 30-year fixed rate mortgage, mortgage payments typically remain the about the same for the life of the loan. Tax and insurance rates may vary affecting the payment amounts, but principal and interest do not change. Homeowners may experience salary increases over time, while their housing costs remain stable. Rent typically increases along with the renter's paycheck based on current economic conditions.
Equity: Money paid into a mortgage over time helps the owner build equity in their investment. Renters never see their money again after rent is paid to the property owner.
Advantages of Renting:
Financial Issues: Renting may be practical for those who do not or cannot afford the financial commitment of homeownership. Some people move frequently, have credit problems, or simply cannot afford the type of home that they prefer.
Maintenance Responsibility: When renting, the landlord assumes the costs affiliated with upkeep and repairs, and renters save time and energy on maintenance. Homeowners must accept the physical and financial responsibilites of such necessities.
Lower Income Considerations: For some lower-income families, cash is hard to come by and renting requires smaller amounts of upfront to move in. Likewise, the tax benefits may not be great enough to offset the costs of homeownership.
*Buying a home is a huge decision and one of the largest investments a person may ever make. It is good to consult your real estate professional, legal and tax advisors when considering a purchase of a home. Most people want a home they can enjoy living in and not just a good tax deduction, so it is very important to consider the aspects of ownership versus renting.
If you are making the decision to continue renting or think it is the right time for you to buy, this will help you make a more informed decision by weighing the pros and cons of each. In most cases, the scales tip in favor of purchasing a home over renting one.
Advantages of Homeownership:
Tax Breaks: Mortgage interest and property taxes are generally tax deductible on your federal and state income tax returns.
Investment Appreciation: Real estate appreciation historically has paralleled or exceeded the rate of inflation. On average, homes have appreciated at an average rate of about 5% annually while some years have been more or less. Appreciation varies across the nation by geographic market.
Capital Gains Benefits: Homeowners are allowed considerable profit without incurring capital gains tax when selling their primary residence. Federal law was revised in 1997 allowing an individual up to $250,000 in gain. Homeowners should consult their legal or tax advisor regarding this popular tax benefit.
Housing Cost Stability: For buyers with a 30-year fixed rate mortgage, mortgage payments typically remain the about the same for the life of the loan. Tax and insurance rates may vary affecting the payment amounts, but principal and interest do not change. Homeowners may experience salary increases over time, while their housing costs remain stable. Rent typically increases along with the renter's paycheck based on current economic conditions.
Equity: Money paid into a mortgage over time helps the owner build equity in their investment. Renters never see their money again after rent is paid to the property owner.
Advantages of Renting:
Financial Issues: Renting may be practical for those who do not or cannot afford the financial commitment of homeownership. Some people move frequently, have credit problems, or simply cannot afford the type of home that they prefer.
Maintenance Responsibility: When renting, the landlord assumes the costs affiliated with upkeep and repairs, and renters save time and energy on maintenance. Homeowners must accept the physical and financial responsibilites of such necessities.
Lower Income Considerations: For some lower-income families, cash is hard to come by and renting requires smaller amounts of upfront to move in. Likewise, the tax benefits may not be great enough to offset the costs of homeownership.
*Buying a home is a huge decision and one of the largest investments a person may ever make. It is good to consult your real estate professional, legal and tax advisors when considering a purchase of a home. Most people want a home they can enjoy living in and not just a good tax deduction, so it is very important to consider the aspects of ownership versus renting.
Monday, July 6, 2009
Tips on Selling Your Home in Today's Market
Getting your home ready to sell may seem like a daunting task besides everything else that we have going on in our daily lives. Below are some tips that are helpful in making the process as easy as possible:
1. Remember, first impressions last the longest. The first thing potential home buyers see when walking up to your house are landscaping, exterior paint, the front door and the front door's hardware. So, if there is chipping paint anywhere, touch it up and make the landscaping looks presentable. A new kick plate and door hardware can do wonders to spruce up the home's first entryway. Often times if there seems to be deferred maintenance at first glance, buyers will wonder what else not been addressed or taken care of in the home.
2. Having a stager come in and evaluate your home is a good idea. They are especially good at making small spaces seem bigger and can give tips on furniture placement. Their job as a professional is to give an objective view on what potential buyers will see as positive and negative aspects of the home and how to accentuate the positive and minimize the negative.
3. Make rooms look as light and bright as possible. Dark linens can make a room seem darker than it truly is. Change these out or make sure shades are drawn to show the natural light and add lighter colors in the form of a rug, window treatments or a light paint color.
4. Make sure to clean your home thoroughly. Add air fresheners if needed to make rooms fresh and pack clutter in boxes. Get a storage unit if need be. Buyers do not want to see that you are running out of space. Also, put away personal photos that are a distraction to the wonderful features of your home.
5. Remember to let potential buyers know the great things about your neighborhood. More and more home buyers are looking for homes that are close to shopping, restaurants, parks and other conveniences nearby.
1. Remember, first impressions last the longest. The first thing potential home buyers see when walking up to your house are landscaping, exterior paint, the front door and the front door's hardware. So, if there is chipping paint anywhere, touch it up and make the landscaping looks presentable. A new kick plate and door hardware can do wonders to spruce up the home's first entryway. Often times if there seems to be deferred maintenance at first glance, buyers will wonder what else not been addressed or taken care of in the home.
2. Having a stager come in and evaluate your home is a good idea. They are especially good at making small spaces seem bigger and can give tips on furniture placement. Their job as a professional is to give an objective view on what potential buyers will see as positive and negative aspects of the home and how to accentuate the positive and minimize the negative.
3. Make rooms look as light and bright as possible. Dark linens can make a room seem darker than it truly is. Change these out or make sure shades are drawn to show the natural light and add lighter colors in the form of a rug, window treatments or a light paint color.
4. Make sure to clean your home thoroughly. Add air fresheners if needed to make rooms fresh and pack clutter in boxes. Get a storage unit if need be. Buyers do not want to see that you are running out of space. Also, put away personal photos that are a distraction to the wonderful features of your home.
5. Remember to let potential buyers know the great things about your neighborhood. More and more home buyers are looking for homes that are close to shopping, restaurants, parks and other conveniences nearby.
Wednesday, June 17, 2009
How is the Denver Market?
The active inventory for single family homes and condominium units in Denver is currently at a six year low. The market is seeing multiple offers, especially in homes under the $300,000 purchase price. This is a good indicator of appreciation on starter homes.
Also, according to The Standard & Poors/Case-Shiller home price index, the Denver area fared best among 20 different cities in the U.S. that reported sharp drops in home prices. Denver reported a 5 1/2 percent decline compared to other cities that had as much as a 36 percent decline.
I believe the worst is behind us and the market is beginning to stabilize, especially in the Denver Metro area.
Also, according to The Standard & Poors/Case-Shiller home price index, the Denver area fared best among 20 different cities in the U.S. that reported sharp drops in home prices. Denver reported a 5 1/2 percent decline compared to other cities that had as much as a 36 percent decline.
I believe the worst is behind us and the market is beginning to stabilize, especially in the Denver Metro area.
Monday, June 8, 2009
Is it the right time for me to buy?
If you have money saved for a down payment and at least six months of living expenses put away for an emergency fund, it is a great time to buy. Interest rates are at historic lows and some sellers are willing to pay closing costs and prepaid items as part of the contract. The first step is to become a pre-approved buyer. Lending requirements are changing daily and a lender can provide you different loan programs that will best fit your needs. They can also help determine what you can afford based on your monthly budget. By getting pre-approved, you are better able to know what your purchasing power is before going to view homes which allows for more satisfaction and less frustration in the long term.
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