Making Heads or Tails of the Housing Market

The housing market and overall economy is an intricate web of information and all of the incoming news that we’re collecting on a daily basis can be confusing.  This week we thought we’d try to help weed through some of the content and get a better understanding of what we’re seeing.  Here are some specifics:

• Unemployment numbers were flat nationally, yet nonfarm payroll employment increased by 162,000 in March.
• At last count, well over 1.4 million buyers had taken advantage of the first time home buyer tax credit.
• Consumer confidence is on the rise with the latest numbers showing that the Conference Board Consumer Confidence Index now stands at 52.5, up from 46.4 in February.
• We’re seeing a lot more buyer activity as we approach the expiration of the first time home buyer and existing home owner tax credit.
• Denver home prices are on the rise, up 2.6% year over year, some of the biggest gains seen nationally.
• Home foreclosures are accelerating—and many more people are losing their homes.  Foreclosure filings in March totaled 367,056, jumping nearly 19% from February and up almost 8% from March 2009, according to RealtyTrac.
• According to the National Association of REALTORS®, the U.S. is currently in position to sell 4.68 million homes this year.  That would put 2009 within the top 5% of home sold in U.S. history.  Although many people are purchasing distressed properties in foreclosure or short sales, there are also a large number of purchases made on non-distressed property sales.  The market is indicating that we may have reached the bottom.

We know what you’re thinking.  It’s hard to make heads or tails of the housing market.  Consumer confidence is up, unemployment is flat but new jobs are on the rise, home prices are increasing yet foreclosures are accelerating.  So what do we make of it?

Our advice?  Stop trying to make anything of the influx of reports that are coming out (almost) on a daily basis.  It’s too difficult and confusing.  There are three essential principles we can count on for the future:

1. Inflation leads to higher interest rates
2. Houses are selling in high quantities
3. If you’re a seller, it may be time to cut your price and be decisive.  If you’re a buyer, it may be time to purchase or miss out on the opportunity.

For buyers, don’t make the mistake of waiting for everyone else to make a move before you feel comfortable making a purchase.  Many people have made a purchasing decision already, and we never know what the bottom of the market is until it has passed.  Here’s one thing you can take to the bank, however:  higher interest rates are the equivalent of a price increase and interest rates are slowly inching up.  When inflation hits, it will be too late, so try to take advantage of this window of opportunity while it’s still here.

Sellers, sell only if you’re serious about selling.  If you are serious about selling your property, adjust your price to where the market is moving, consider taking your lumps and move on or you may be waiting a long time.  Also, if you want to take advantage of the buyer pool that is available now through the end of the month with the home buyer tax credit, try to get your home on the market now.  Remember, the credit expires at the end of this month.

Now, let’s take a look at this week in real estate:

• Boulder/Longmont—Boulder reported steady as she goes in Boulder County with no major movement in any category.  New listings in Boulder county increased by 4 over the last 2 weeks  – not 4%, just by 4.  Sales were up by 0.3% and showings on our listings went from 680 to 677.  You get the idea.  Agents are reporting loads of traffic at open houses.  One agent with a historic listing in Louisville had over 50 parties through in three hours last Sunday!  Longmont reported April has started with a bang.  Showings are up 45% week over week.  The top homes being shown are in the $180,000 to $250,000 price range.  Good news is two homes over the $450,000 price range were in the top 10 of homes shown last week.  First time buyers are still a large percentage of the buyers.  FHA financing is the favorite financing for most buyers.  Short sales are a large part of our market and they continue to be a challenge for buyers, sellers and Realtors.
• Evergreen/Conifer— Showing activity continues to increase with 191 showings during the prior two week period.  We had a total of seven new listings put on the market so far in April with five listings put under contract during the same period.  Conifer reported showing activity continues to increase with 62 showings for month to date.  Listing activity is steady with four new listings for the first two weeks of April.  Sales activity continues to build, with two listings going under contract since the beginning of April and five buyers have gone under contract during the same period including one  new construction townhome in Aurora and two vacant land parcels.
• Denver Central – No information reported.
• Denver West— Business is brisk.  One agent brought in four listings priced over $1,000,000 and 12 lots.  One of the lots went under contract in less than three days.  If you are showing property less than $250,000 it is not uncommon to be in the home with several other buyers also looking at the property.  This activity has made buyers very realistic.  Sellers too are realistic in both staging and pricing their homes.
• Devonshire— Spring is in full swing and real estate activity is on the upswing.  The big N.A.R. Open House Weekend created a huge opportunity for the public to get out there & see many open houses on the same day.  My feedback is that while the open houses were busy, perhaps they were not as busy as one would expect.  What was very active, on the other hand were the showings, indicating that many serious buyers were out there using the professionals to show them the right areas & homes that would meet their wants & needs.  The incentives are quickly disappearing so buyers have a sense of urgency.  It’s the perfect time to get new listings onto the market as the pent up desire for homes will serve them well.  We’re looking forward to a good summer season in real estate.
• El Paso County—No information reported.
• Larimer County—Our Fort Collins/Loveland offices report WOW!  The market is red hot in Northern Colorado.  We have had highs the last two weeks in showings, contract written and new listings coming on to the market.  Buyers are attempting to get into their new home before the tax credit expires at the end of this month and it shows!  Sellers are keenly aware of the expiring credit and are putting their homes on the market as quickly as possible to take advantage of this current buyer pool.  If you are a buyer or seller, don’t wait too long …the tax credit window of opportunity is closing!
• North Metro— Is it the nice weather or the nearing of the end of the tax credit?  Whatever may be the positive factor it is greatly affecting the activity in our North Metro office.  We’ve experienced a 16% increase in the number of listings we put on the market in March 2010 as compared to last year. There has also been an increase in the number of homes closed by 14% as compared to March 2009. When working with the sellers in this market, the agents are finding that they are becoming much more realistic about what price they should list their home for.  The reports that we provide them from our very own “Market Quest” program has helped sellers to better understand what buyers are willing to pay for their home.  Because the pricing of their home is more in line, the average days on market is decreasing.
• Parker— Weekly sales in the Parker office remain strong and should continue to do so even with the 4-30-2010 end of the first time home buyer tax credit.  Coldwell Banker will be rolling out its “Buyer Credit Promotion” 5-1-2010 till 6-30-2010 where buyers can get up to 3% on the purchase of their home (up to $8,000) from participating sellers.  The number of short sale transactions is still high & a lot of patience is required from sellers & agents but especially buyers before those transactions come to a close.  We’re anticipating that the new HAFA rules will help to ease up the process on those short sales quite a bit.  The listing inventory as well as  showings are steady over the past weeks.
• Southeast Metro— Spring has sprung in SE Denver!  The SE Metro office scheduled over 1400 showings in the last two weeks of March.  Open house traffic is off the charts with 30 to 40 people visiting properties on the weekends.  The luxury home market is also reaping the benefits of energetic marketing.  We closed one luxury home last month for $1,200,000 and another for $1,600,000.  Our open house blitz is scheduled for April 10th & 11th and we’re sure to see lots of ready willing and able buyers visiting our listings.
• Southwest Metro – Our showings were great these past 14 days.  Held last weekend was our Open House Extravaganza with over 30 homes open.  We’re hearing from many of our agents wonderful success stories.  Several agents picked up  buyers & listings from their open houses and the signage was fantastic (lots & lots of blue & white signs & balloons!)  Our agents are very busy with buyers & helping sellers get their homes ready to be placed on the market.  Our floor calls have increased & yesterday we had an agent pick up a listing & a buyer.  We’re feeling good about the market & the activity that we are seeing in our area.

Proof Positive That Real Estate Is a Local Story

In the last two weeks, two reports were released giving strong indication that we really can’t rely on the national news stories to tell our local real estate story.  NAR’s report was released last week revealing existing-home sales declined slightly in February, noting specific emphasis on softer sales in the West.  Sales, according to the report, slipped 0.6 percent nationally, though they were seven percent higher than a year ago.

Within a few days, Standard & Poor’s/Case-Shiller released its home-price index.  The report revealed that Denver was among nine metropolitan areas in a 20-city survey that saw home prices increase in January compared with the same month a year ago.  Denver-area home prices rose 2.6 percent in January compared with January 2009, making it the sixth-largest increase among surveyed cities.

What is promising about Standard & Poor’s/Case-Shiller’s report is that it showcases we’re on the road to recovery.  Locally, the Colorado market is seeing some of the nation’s biggest gains and we seem to be making some great strides from month to month.  Of course we’re probably not out of the woods yet.  There is still fear of a double dip recession and with unemployment figures (though improved) still staggering, it does make home purchases a challenge for some.  But the signs are encouraging and our local housing market is showing signs of life.

Have we stabilized?  Prices are reasonably flat from a year ago.  But that doesn’t mean we’re going to see sudden, double digit appreciation.  Watch for a very normal, balanced recovery with mild to moderate gains.

One final note.  As of the writing of this piece, we have just 29 days and counting until the first time home buyer and existing home buyer tax credit expires.  If you are planning to act, now truly is the time.

Now, let’s take a look at this week in real estate:

• Boulder/Longmont—Boulder reported sales in Boulder County continue to climb, up 9% during the last two weeks.  That’s after a 7% increase during the first two weeks.  New listings were down 9% so overall inventory is moving in the right direction.  Showings were down 5% but 2 days of blizzards with lots of warning probably caused that, so I’m saying “steady” using a weather adjustment.  Agents are reporting lots of visitors to open houses & those buyers are collecting information for purchases later this year.  Longmont reported spring has sprung and it’s a great time to buy a home.  Showings on our listings are on again increasing week over week.  Buyers know that the deadline for the tax credit is coming soon.  Entry level housing that is well priced is selling quickly.  There are some incredible bargains to be made in the upper end price ranges.  Good news is that jumbo loans are making a comeback.  The local job market is stabilizing.  Longmont as a city and the surrounding area continues  to realize that jobs make our world happen.  The local economic council is aggressively negotiating with companies to relocate to Longmont.
• Evergreen/Conifer—We had a total of sixteen new listings for the month of March, eight of which went under contract.  Four of them were at price points above $500,000.  A total of 410 showings and previews during the month brought us to an increase of 23% in activity over the same month last year.  Conifer reported we had seven new listings during the month of March, five of which went under contract.  The total showing for the month increased to 131.  This is a continuing increase in activity since the beginning of January.
• Denver Central – March has been great and sales continue to increase.  Inventory has been low but we’re seeing an increase of sellers putting their homes on the market.  Appreciation is neighborhood specific and there are some hot areas in the Denver metro area.  It’s important to be working with a professional that can educate & give you the proper advice to make the right real estate decisions.  The April 30th under contract deadline for the tax credit is fast approaching & buyers are realizing that with low inventor they need to start the process of buying a property now.  The inventory shortages in the lower end market has created multiple offer situations for most homes on the market.  It might take a couple of offers before buyers find the right property.  Over 50% of the home sales in the Denver metro area continue to be under $250,000.  If you’re looking to sell a home priced under $300,000, this is a great time to sell.  We’re also seeing improvement in the higher-end market.
• Denver West— The office is very busy.  It appears to us that consumer confidence is up and the sellers are taking the next step which is to list their property.  Sellers are also more attune to listing their property at a price that will cause it to sell.  We are seeing many listings sell with the sellers purchasing another property in the marketplace.  Some are downsizing, however the majority are buying “up.”  First time home buyers are still active in the marketplace.
• Devonshire— Spring has sprung and with it is renewed energy and activity in the real estate market.  We’re seeing a dramatic increase in people attending open houses and the conversation with these people indicates that they are not just looking but are serious about finding a new home.  Our mortgage company has seen a strong upswing as the public is concerned about the uptick in interest rates.  The consumer is getting settled with their financial picture before looking & actually putting offers in on a home.  Sellers are putting homes on the market with much more consideration of market analysis data & thus are getting their homes under contract in much more reasonable time frames.  It’s going to be a busy spring as we are moving from a place of fear & uncertainty to a little more comfort & cautious optimism.  Happy Spring!
• El Paso County— Colorado Springs reports as we enter in to the last month of the First Time Homebuyer credit and move up credit, we’re seeing a flurry of activity.  Buyers are getting serious about getting qualified and making offers.  We still see banks sitting on short-sale offers but word is we could see banks responding more quickly in April with new incentives from the Federal government.  If banks begin responding, we could see inventory levels start dropping more quickly and housing prices start to recover.
• Larimer County—Our Fort Collins/Loveland offices report we are moving along steadily, and the two large snow storms did not seem to slow the showings down too much.  With warm weather becoming a more regular occurrence I would expect to see more and more home buyers out in the market.  In addition the listing inventory is growing as home sellers have recently been very realistic about the market and there selling price.  The tax credit is worth mentioning again as you have about one month to get under contract to receive either the $8000 or $6500 tax credit if you are eligible. Finally, the Federal Reserve is no longer buying mortgage backed securities as of March 31, 2010.  This means there is an excellent chance of mortgage rates increasing in the upcoming months. Get out and buy now before the rates jump!
• North Metro— Comparing March to February (the first 15 days of the month), the North Metro has twice as many listings as this time last month and twice as many under contract.  There is an urgency to take advantage of the tax credit before it’s too late.  The average sales price out of our office is $250,000.  The average list price is up to $275,000. We continue to see low inventory on homes under $200,000 & multiple offers.  With the nice weather, activity at open houses and sign calls is picking up.  We have even been experiencing walk-ins to our office, people ready to get their homes on the market to beat the spring rush.
• Parker— We are receiving an unusual amount of buyer requests compared to new listings on the market.  Of course the approaching deadline of April 30^th for the buyer tax credit has a big impact on this change in dynamics.  However, we are confident that there are other drivers and the positive development will continue.
• Southeast Metro— Spring has sprung in SE Denver!  The SE Metro office scheduled over 1400 showings in the last two weeks of March.  Open house traffic is off the charts with 30 to 40 people visiting properties on the weekends.  The luxury home market is also reaping the benefits of energetic marketing.  We closed one luxury home last month for $1,200,000 and another for $1,600,000.  Our open house blitz is scheduled for April 10th & 11th and we’re sure to see lots of ready willing and able buyers visiting our listings.
• Southwest Metro – Our showings have increased week over week.  Activity in our open houses has also been great!  The weekend of April 10 & 11 we’re having an open house blitz in the Highlands Ranch area as well as having an open house in our office to answer questions and hand out flyers to all of our open houses.  We’re seeing much activity not only in our $250,000 to $350,000 range but also in the higher price ranges in both Highlands Ranch and also in Littleton, Castle Rock and Centennial.  Agents are very busy listing homes and showing buyers.  There is a great amount of energy in the office and in the streets.
• West Lakewood - The office is very busy!  It appears to us that consumer confidence is up and the sellers are taking the next step which is to list their property.  Sellers are also more willing to list their property at a price that will cause it to sell.  We are seeing many listings sell with the seller’s purchasing another property in the marketplace.  Some are downsizing, however the majority are buying “up.”  First time homebuyers are still active in the market place.

Five Reasons We Believe It’s Going to be a Good Spring

A year ago this time, this headline wasn’t imaginable.  We were in the throes of one of the worst recessions of our time and the market was at a near standstill.

But what a difference a year makes.  Today our market is seeing drastic signs of recovery and we are finally moving in a positive direction.  To build on that momentum, We’ve put together my top five reasons why we believe it’s going to be a good spring real estate market.  Only time will tell if my theory is correct but until then, let’s take a look at the facts:

1. Tax Credits Are Helping Drive the Entry Level Market – Thanks to the $8,000 first time home buyer tax credit and the $6,500 existing home buyer tax credit, we are seeing some very strong signs of recovery in these two market niches.  With the impending expiration set for April 30, we anticipate that the next two months will bring a surge of buyers looking to get in on a home prior to the credit’s expiration.  That results in good news for our market and will help to decrease some of the surplus inventory and bring greater demand for those entry level sellers.
2. Interest Rates Remain Low – Even though we have seen interest rates tick up a bit in recent months, rates are still relatively low.  When rates are low, it means a buyer has increased purchasing power and ultimately can get more home for less money.
3. Affordability Remains High – Due to the market correction we’ve seen over the last few years, affordability remains quite high.  What this means is a larger percentage of individuals are able to purchase a home.
4. Despite Unemployment Figures, Housing Demand Will Eventually Rise – Yes, unemployment figures are high comparative to the earlier part of the decade.  In fact, on a national level, the latest counts were approximately 9%, according the United States Bureau of Labor.  Here in Colorado we’re running at about a 7.7% unemployment rate.  While yes we would agree that the number is concerning, on the flipside it means that 93% of Coloradans are employed.  If the economic outlook continues to improve, that’s going to boost the confidence of the 93%.  That’s a lot of people who can boost housing demand.
5. Colorado is an Awesome Place to Call Home – It sounds a little trite and yes, we may be a bit biased, but it’s a fact.  Colorado offers one of the most diverse and unique living experiences and economies in the country.  From our beautiful terrain, our diverse blend of activities and our overall thriving economy, we are fortunate to live in somewhat of a thriving microclimate comparative to the rest of the country.  That all adds up to a demand for housing that will help to drive our market towards recovery, possibly sooner than other states.

The current housing is in a place of recovery.  Overall what we’re seeing is a tale of two markets.  The luxury market is generally seeing increased inventory and price discounting is the norm.  Last we checked we had far above a six-month supply of inventory of our luxury homes.  In some cases anywhere from 9-12 months+.

However, if you look at our entry level market, things really haven’t slowed down much at all.  In fact, in many cases, they’re rising!  We’re still seeing lots of interest for well-priced properties in good neighborhoods.

Overall, the state of the housing market in Colorado remains relatively healthy and strong and we believe we have a good Spring ahead.  Now, let’s take a look at this week in real estate:

• Boulder/Longmont—Boulder reported our inventory stayed flat for the last two weeks of February but sales & showings both took big leaps.  A solid 30% increase in sales in Boulder county from the first two weeks of the month to the second.  Showings on our listings went from 671 to 796, a 20% increase.  Our Agents report several multiple offer situations on lower priced properties and foreclosures.  Longmont reports buyers are looking.  Showings are up 9% week over week.  The steady increase in activity continues through February.  The best news is the price point of the homes being shown is increasing into the $300,000 plus range.  One of our top ten shown properties is on the market for $899,000.  It’s really good to see this activity!  Short sales still continue to enter the market inventory and they remain difficult deals to get closed.  Buyers are waiting months and months for these purchases to be completed.  Right now, foreclosed are great deals and are often subject to multiple offers.
• Evergreen/Conifer—Conifer reported there were a total of 123 showings for the month with six new listings.  Activity is up significantly in the last two weeks with 4 listings going under contract including two with back-up offers.  A total of seven buyers put under contract including three of our own listings.  A mix of both out of state as well as local buyers including 1st time home buyers.  Evergreen reported listing activity continues to increase with 162 showings during the prior two week period for a total of 319 for the month, representing a 28% increase over the same month last year.  There were a total of 11 new listings put on the market in February and 10 listings put under contract during the same period.  Four buyers put under contract during the prior two week period including one bank REO and one short sale.  Increasing activity from local buyers, especially in the mid-range of $400,000 to $800,000.
• Denver Central – Showings are up year over year on our existing inventory.  In January & part of February we had a little bit of a lull with first time home buyers but we’ve had a significant increase in activity during the last 2 weeks of February. The April 30th under contract deadline for the tax credits is fast approaching & buyers are realizing that with low inventory they need to start the process of looking for property now.  The inventory shortages in the lower end market has created multiple offer situations for most homes in that market. It might take a couple of offers before Buyers find the right property.  Over 50% of the home sales in the Denver metro area continue to be under $250,000.  If you’re looking to sell a home that is priced under $300,000 this is a great time.  This is definitely a great market to move up to a higher priced home.  Your financial gain in getting a higher priced home for less should be a big reason to make a move now & take advantage of the slower high-end market.
• Denver West— No information reported.
• Devonshire— Can you believe that March is here and Spring is on its way!  We are definitely feeling the change in the attitudes of buyers & sellers.  It’s the BEST time to get your home on the market if you have any interest in making a move.  Before the end of the tax credit & before interest rates sneak up on us.  We believe we’ll be seeing motivated buyers out there.  With a lack of inventory we need homes on the market right away.  Indecision will hurt sellers & prevent them from making a move to their new homes. We’re telling sellers to spruce up their homes, declutter all rooms and get ready for activity.  We’re hearing that there will not be another extension of the tax incentive so time is of the essence.  March is upon us and Spring is typically a time for sellers & buyers to be very active in the market.
• Douglas County— Our Southwest Metro office reports our showings have been steadily increasing.  Traffic at our open houses has been great.  Several agents report great traffic as well as very good leads that have been obtained from their open houses.  Our floor calls continue to be great.  Several floor Agents have obtained buyers and were able to find homes for them.  We’re having lots of phone calls & emails regarding the tax credit and buyers wanting to take advantage of it before the deadline.  Our mortgage rep is very busy processing approval letters. We’re also seeing some movement in homes priced above the $450,000 level as well as the ones listed around $250,000.  Our agents are busy and there is a good buzz in the office that March will be a great month.
• El Paso County— Colorado Springs reports seeing an increase in listing activity due to many national news articles stating we’re in a recovery and now is the time to sell.  Buyers are out actively looking, but do not seem to have the urgency for purchasing since the First Time Homebuyer credit was extended.  I think we’ll see an uptick in sales activity as we get closer to the April 30th deadline.
• Larimer County—Our Fort Collins/Loveland offices report it’s getting busy!!  We had an extremely strong showing the last two weeks.  We took more listings the last two weeks and put more homes under contract than we had the previous seven weeks.  In addition, several homes were subject to multiple offers.  I would say that spring is showing strong signs of life and we better hold on for the next couple of months – especially with the first time home buyer & the move up tax credits expiring.  There is very little talk of the government extending this fantastic deal.  Those interested had better act sooner than later as April 30th is approaching fast.  There will be a rush on homes trying to close in the last month!
• North Metro— No information reported.
• Parker— Showings dropped off slightly, however we’re still maintaining a strong pace.  Listings are coming on strong & there are many contracts being written.  Bank-owned listings have dropped off slightly but we anticipate another surge soon.  There’s lots of very positive energy in our office right now about the market.
• Southeast Metro—No information reported.

Colorado Home Prices Up! Plus, February Is Off to a Great Start!

This week NAR released its fourth quarter 2009 housing stats revealing some solid and very positive results including:

• Home sales posted strong gains in the fourth quarter and prices rose in nearly 45% of U.S. metropolitan areas compared with a year earlier, more evidence of an improving climate in housing.
• Bolstered by low interest rates and a first-time home buyer tax credit, existing-home sales rocketed 27.2% from the fourth quarter of 2008 to a seasonally adjusted annual rate of 6.03
• The national median price of an existing single-family home was $172,900 or 4.1% below the median price in fourth quarter 2008.  That was the smallest price decline in more than two years.
• Prices rose in 67 out of 151 metro areas in the fourth quarter compared with a year earlier.
• Sixteen areas had double-digit increases last quarter.
• Some of the positive Colorado markets that saw the biggest gains?

Median home prices of existing single family home by metro area
Not seasonally adjusted; prices in the thousands

Metropolitan Area       2007               2008              2009            % Change

Boulder                                   $376.2              $324.7           $335.1            3.2%

Colorado Springs                $217.5               $187.0           $189.8           1.5%

Denver-Aurora                    $245.4              $200.8           $223.2          11.2%

What does all of this tell us?  There is definitely a growing amount of evidence that the housing market has stabilized.  Just look at Denver-Aurora with an 11.2% gain in median home price year over year.  The question is how quickly can the market completely recover and will we bump along at the bottom for a couple of months?

In looking at January, the early numbers are in and it seems sales figures overall for January are down from the previous month.  Having said that, a decline in sales between December and January is normal for the season.  What the January figures show us is the market lost some of the momentum it had built up in the second half of ’09, when home buyers rushed to ensure they could take advantage of a tax credit, ultra-low mortgage rates and lower prices.  It is anticipated that over the next several weeks those numbers will once again increase as more and more buyers scamper to get in on the market prior to the April 30 first-time home buyer and existing home buyer tax credit expire.

February is already shaping up to be a better month.  Buyers are eager to get in on a home thanks to the tax credit and sellers are enjoying a much more active marketplace than we’ve seen in previous years.  It’s a welcome coming together of the two that we’re all happy to see it.

Now, let’s take a look at this week in real estate:

• Boulder/Longmont—Boulder reported a sharp increase in new listings (30%) is the highlight of the Boulder County market during the last two weeks.  Sales and showings have been steady with a 1% decrease in sales (we’ll call it even) and a 3% increase in showings.  Some Agents report listing times of less than a week on listings with something special to offer such as open space or those that are in tip top condition.  Listings over $1,000,000 are still much slower than the overall market.  Longmont reported showings are increasing steadily.  Buyers are recognizing value when they see it. We’re having heart to heart talks with listing agents.  Sellers are realizing that their homes need to be staged, either by themselves or by hiring a professional. Non-distressed homes must shine and sparkle.  Buyers are better understanding that short sales can take an incredibly long time to close & that the need to move can offset a perceived price.  The average price of our showings is again climbing in to the $350,000 price range.
• Evergreen/Conifer—Conifer reported showing activity continues to increase with 77 showings for YTD – on track to exceed January activity by 15%.  The listing activity is steady with five new listings for the first two weeks of Feb.  Sales activity is off from the prior two weeks although numerous offers have been submitted on behalf of buyers during the past two weeks.  Evergreen reported six new listings in the last two weeks.  Six listings went under contract including one short sale listed @ $1,900,000.  Four buyers were local and two were from out of state, two were all cash buyers.  Received bank approval for two short sale listings which will now close within 30 days.  Three buyers placed under contract including one short sale.  There were a total of 199 showings so far in February which is 80% of the total for January indicating continued strengthening of activity into the spring months.
• Denver Central – Showings are up year over year on our existing inventory.  Unemployment continues to be lower here than the rest of the country which is helping the Denver market.  We’ve had our 4th month in a row with the average sales price increasing in the Denver Metro area.  In January we had a bit of a lull with 1st time home buyers but have seen a significant increase in activity during the first two weeks of February.  The April 30th under contract deadline for the tax credit is fast approaching & buyers are realizing that with low inventory they need to start the process now.  The inventory shortages in the lower end market has created multiple offer situations for most homes in that market.  It might take a couple of offers before buyers find the right property.  Over 50% of the home sales in the Denver metro area continue to be under $250,000.  If you are looking to sell a home that is priced under $300,000 this is a great time to sell.
• Denver West— Both the Super Bowl weekend and the President’s Day weekend were a little slower for our agents.  The various areas with properties under $150,000 are extremely busy.  Our agents are struggling trying to get buyers for these properties under contract.  It’s very frustrating for both agents and buyers.  Soon there won’t be any inventory at that price point.
• Devonshire— With February here and the deadline for the tax incentive for 1st time buyers quickly approaching, we’re seeing a very nice upswing in real estate activity.  Even our Sunday showings have seen a dramatic change.  Typically Sunday has been a quiet day for showings in this office.  We’re also seeing more contracts being written.  Sellers seem to realize that ANY offer is worth countering as the written offer is just the very beginning of the process.  We’re definitely short of inventory so it’s the perfect time to get homes on the market.  If there is some hesitancy on timing to list a home, then the sellers should spend this time getting their homes in the best condition possible.  The upper end market is finally showing some signs of movement slowly but surely, so we’re cautiously optimistic for that market sector.
• Douglas County— Highlands Ranch, Castle Pines North and the Littleton area are seeing significant activity.  Agents are very busy with sellers and buyers right now.  Our open house activity and floor have been very successful this past two weeks.  We’ve seen an increase in our activity with our showings as well as our mortgage rep being very busy at this time with loan approvals.  We’re expecting a huge push in March by both sellers and buyers trying to take advantage of the tax breaks as well as interest rates which are still very good.  The $200,000 price range is still strong and the $350,000 to $450,000 range is showing improvement.
• El Paso County— Colorado Springs reports activity in Colorado Springs is on an even or upward swing, but nothing drastic.  We are still having a good number of military relocations occurring which tends to help keep activity going.  Many first-time home buyers are still trying to take advantage of the tax credit and meet the required deadlines for being under contract and closed.
• Larimer County—Our Fort Collins/Loveland offices report there is a flurry of activity in the market right now!  We have seen our showings increase 25% in the last two weeks and 50% in the last 30 days.  In addition, our inventory has also grown as we’ve put 42 new properties on the market in the last two weeks.  This is great news for buyers looking for new homes to view.  Showings for homes priced above the $400,000 range has nearly doubled from the previous two weeks.  Hopefully lenders will make jumbo loans more readily available & at interest rates acceptable to high end home buyers to help get this segment of the market moving.
• North Metro— January was an incredible month in the North Metro office for listings.  The agents listed 60 homes in January which is up from 47 in December as well as up from January of 09.  The listing price ranges from $90,000 up to $1,500,000!  Activity on the listings has increased as well.  Homes priced under $200,000 are receiving multiple reasonable offers & are going under contract within the first week of being on the market.  Homes priced at $125,000 or less are under contract, on average, within two days.  Now is the time to get your home on the market before the tax credit ends & before the possibility of higher interest rates.
• Parker— After leveling off for a week, the activity spiked a bit for our agents.  We ‘ve seen considerable activity in Parker and in the surrounding market.  Sellers are keeping a realistic view of home prices and buyers are being more realistic about the offers that they are making.  We’re excited about the coming months.
• Southeast Metro—The SE Metro office reports pent up demand along with the opportunity for the tax credit seem to be the driving forces in what appears to be a record setting February at our office!  Showings continue to increase as we approach 600 per week.  Our agents are seeing some of their listings hit the market on Friday and be under contract by Monday.  Open house traffic continues to be strong as many buyers out there are unrepresented & looking for a Real Estate professional.  We’ve had several open houses with 15 to 25 people thru on a single day.  There continues to be a shortage of million plus properties in the desirable areas of Greenwood Village & Cherry Hills.  We have high end buyers that are ready to make a move but can’t find the home to fit their needs.  No need to wait for Spring, sellers get your homes on the market today!

NAR’s Pending Home Sales Report Reveals Tax Credit Is Working

This week the National Association of Realtors released its pending home sales report revealing that contracts signed in December increased 1.0 percent to 96.6 from 95.6 in November and remains 10.9 percent above December 2008 when it was 87.1.  December activity was the fifth highest monthly tally in two years.

NAR is chalking much of this surge up to the tax credit as buyers responded to a tax credit that was expiring and then extended and expanded.  These swings, they say, are making the underlying trend, which is a broad improvement over year-ago levels.

The fact is there are a lot of first-time home buyers and even some existing homeowners who are vying to take advantage of that credit and that is helping our local market.

One thing I think we will see this year is a much earlier Spring selling market.  The spring buying season typically takes off in March and runs through May. But buyers who want to claim this year’s tax credit — up to $8,000 for first-time buyers and up to $6,500 for repeat buyers — must have signed purchase contracts by April 30. And they have to complete the deal by June 30. I agree with Coldwell Banker President and CEO Jim Gillespie who said “Sales are going to take off in February and March and really take off in April,” as home buyers try to get under contract by the April 30 date.

It is comforting to see how many consumers are realizing the opportunities to in today’s market—even many investors.  There are amazing opportunities and great deals to be had and as buyers come to this realization, it’s exciting to see how it is affecting our market.

Now, let’s take a look at this week in Colorado real estate:

• Boulder/Longmont—Longmont reports showings are holding steady at an increased level.  More buyers are looking.  Short sales are a large part of the offers written.  This is still a lengthy and frustrating process for both the buyer and the seller.  25% of the short sale contracts written either fail or are lost because buyers are unable to wait any longer for  lender approval.  This is a perfect time to add to an investment portfolio in real estate.
• Evergreen/Conifer—Evergreen reported we had four new listings in the last two weeks for a total of thirteen.  Three listings went under contract.  There were a total of 250 showings during the month.  Two buyers were put under contract in the last two weeks.  Overall, activity has increased significantly in price ranges up to $1,000,000.  Conifer reported showing activity has increased significantly compared to December, totaling 129 showings for the month.  Listing activity is increasing with five new listings.
• Denver Central – Overall sold units were down from 2008 to 2009 but overall inventory was down at a greater percentage than resales.  The drop in inventory in 2009 is a very good sign for the Denver market in 2010. Showings are up year over year on the existing inventory.  Unemployment continues to be lower than the rest of the country which is helping the Denver market.  We’ve had our 4th month in a row with the average sale price increasing in the Denver Metro area.  With the extension of the tax credit to 2010 there has been an increase in 1st time home buyers looking for a property.  Unfortunately, with the low inventory they need to start the process now to be under contract by the April 30th deadline.  The inventory shortages in the lower end market has created multiple offer situations for most homes in that market.  It might take a couple of offers before buyers find the correct property.
• Denver West— One of our Agents had an open house on Saturday the 30th at a $750,000 listing – over 20 groups came through in three hours!  Another Agent put all eight of her listings under contract in the last few weeks.  Our under contracts are double what they were for the first two weeks of January.
• Devonshire— With February here and the deadline for the tax incentive for 1st time buyers quickly approaching, we’re seeing a very nice upswing in real estate activity.  Even our Sunday showings have seen a dramatic change.  Typically Sunday has been a quiet day for showings in this office.  We’re also seeing more contracts being written.  Sellers seem to realize that ANY offer is worth countering as the written offer is just the very beginning of the process.  We’re definitely short of inventory so it’s the perfect time to get homes on the market.  If there is some hesitancy on timing to list a home, then the sellers should spend this time getting their homes in the best condition possible.  The upper end market is finally showing some signs of movement slowly but surely, so we’re cautiously optimistic for that market sector.
• Douglas County— Our Southwest Metro office reports our floor calls have been great.  We’ve generated between five and seven appointments for listings and a couple of buyers.  Open houses have been very successful the last two weeks.  We’re seeing tremendous activity as well as our agents picking up potential buyers and listings.  Agents are very busy with listing and buyer appointments.  We’re seeing an increase in activity in the office and Agents are quite busy.  We’re seeing movement in the $350,000 to $450,000 market as well as lower.  We’re very excited about the activity that we are seeing in our market.
• El Paso County— Colorado Springs reports in the Colorado Springs area, single-family home sales totaled 8,745 in 2009, a 4.9% increase over 2008.  This is the first annual increase since 2005.  Existing home sales last year totaled 8,188 and 8.3% increase over 2008 according to the Pikes Peak Association of Realtors.  In December, home sales totaled 623 nearly a 26% jump from the same month in 2008. Existing home sales, which account for about 90% of purchases totaled 566 in December, a 22.8% increase from the same time a year earlier.  Sales reflect only transactions handled by association members and most took place in El Paso and Teller counties.
• Larimer County— We’re seeing a large jump in showings the last two weeks, up over 25%.  Homes are steadily coming on the market and agents have reported that the upper end has seen a few more showings over the same time last year.  These are promising signs for the new year.  New listings this week are nearly identical to last week and I would expect the inventory to continue to climb in the next 60 days with the bulk of the sales activity still below $300,000.  The perfect storm continues…low prices, low interest rates and tax incentives.
• North Metro— No information reported.
• Parker— Listings, showings and all activity are up in Parker and the surrounding areas.  The buyers seem to be showing up after the long Winter slumber. We have had a big jump in showings just in the last week, showing that there are still huge opportunities for homeowners.  Now is a great time for people on the fence to sell their homes because of the low rates, government incentives and reasonable inventory.
• Southeast Metro—The SE Metro office is seeing an increase in our showing activity to over 550 showings last week.  In January we placed 123 new homes on the market.  As quickly as we’re listing them, we see them selling!  Several agents have had 3 or 4 listings placed under contract within two weeks on the market!  Buyers are excited about the extended tax credit opportunity and are anxious about finding their dream home before the interest rates tick up.  Luxury homes are also experiencing a steady increase in traffic.

The Tax Credit Deadline is Coming! Buyers and Existing Homeowners: Don’t Miss Out!

Since the tax credit was extended and expanded in November, I’ve had the pleasure of visiting several of our offices.  What I’ve heard during my visits is the following:

• Business has been up slightly over the last year
• First time home buyers are active
• Move-up buyers are not yet active…at least not now

And yet, from what we know, this is largely because they don’t know about the tax credit or don’t understand the importance of this recently expanded legislation.  My goal, through my conversations with my Agents, through my blog and through any opportunity I receive, is to end that trend.

Buyers and sellers: I’ve been in this business for more than 20 years and in that time, I honestly haven’t seen a better time to buy a home, nor move-up into a new home.  The reason for this is what I call the “perfect storm” in real estate.  It’s what I call the three Is and P:

• Inventory: There are an overwhelming number of markets where inventory is down, but even with a decline year over year, there are still plenty of homes for buyers to choose from.
• Interest Rates: Mortgage rates remain at all-time near historic lows.  This means higher purchasing power for buyers.
• Incentives: Along with tax incentives, the U.S. government has provided further extension and expansion of the first time home buyer and now existing home buyer tax credit but it is slated to expire on April 30, 2010.
• Prices: Affordability remains at an all time record level nationally and in many of our local markets here as well.

So knowing this, what can consumers do?

It’s time to act.  And act quickly.  With the April 30, 2010 tax credit deadline approaching, move-up buyers and existing homeowners must act almost immediately to ensure they may take advantage of the credit.  In order to do so, they must prepare their home for sale, list the property, get it sold and get it under contract – all before April 30, 2010.  And, might I add, close on their new property by June 30.  If you’ve ever purchased a home you know how lengthy the process can be so if you are considering a move, now truly is the time.

When you are ready, I encourage you to visit ColoradoHomes.com to find a professional Realtor in your neighborhood who may help you.  It’s important that you choose a professional Agent who knows the market and the inventory to ensure your listing and sale success.

I honestly can’t emphasize this enough.  Over the last year we have seen the first time home buyer respond to the tax credits and incentives – upwards of 2.4 million first time home buyers entered into the market in 2009 – that’s close to half of all homes sold last year, according to NAR.  But the move-up market has been somewhat stale.  If you are someone who is considering purchasing a home, now truly is the time.

For our Agents, we can’t assume our clients know and fully understand the benefits of the tax credit.  It is now more important than ever to get out there and share with the world just how many opportunities are available to our buyers.

And with that, let’s take a look at this week in real estate:

• Boulder/Longmont—Boulder reported the Boulder county market started 2010 with a bang, with sales and showings up sharply and listings following suit.  This coming after two holiday weeks, so no big surprise but showings are up 105% over the preceeding weeks.  Happy New Year!  Longmont reported there was a major jump in showing activity.  Up 43% week over week!!  The price point for homes being shown is creeping higher and higher.  Homes listed in the $350,000 range are among the top ten shown properties.  Short sales are still a large part of those being sold.  These short sale transactions are taking two to four months to close. It is  a special buyer that can wait this long.  Banks/lenders are getting a little better with approval processes on these deals.  Homes in the upper price ranges are showing up on the foreclosed market.  Some of these homes are amazing deals.  Now is the time to purchase that dream home at a great price.
• Evergreen/Conifer—Evergreen reported we’ve had a total of 9 new listings so far in January.  Seven listings went under contract during the last two weeks and a total of 146 showings during this two week period.  There were four buyers put under contract, including a property listed at $2,500,000.  Overall, activity has increased significantly since the beginning of the year over all price ranges, not just first time home buyers or short sale/foreclosure activity.  Buyers that have been sitting on the fence for long periods of time now seem to be taking action.  Conifer reported showing activity has increased significantly compared to December with a total of 88 showings for the month to date.  Listing activity is increasing with tree new listings plus several listings in the pipeline.  Two listings have gone under contract with four additional offers received over the weekend, two of which had multiple offers.  Price ranges for under contracts are from $350,000 to $450,000 with several local buyers, an early indication of some movement in the move-up buyer category.
• Denver Central – Overall sold units were down from 2008 to 2009 but overall inventory was down at a greater % than were resales.  The drop in inventory in 2009 is a very good sign for the Denver market & its future.  Unemployment continues to be lower than the rest of the country which is helping the Denver market.  With the extension of the tax credit to April 30, 2010, there has been an increase in first time home buyers looking for property.  We’ve also had several existing homebuyers contact us for information on the $6500 tax credit.  If you want to take advantage of thesecredits, time is running out.  The inventory shortages in the lower end market has created multiple offer situations in that market.  The inventory is substantially lower than it’s highpoint in 2007.  Over 50% of the home sales in the Denver metro area continue to be under $250,000 price point.  If you’re looking to sell a home, now is the time.
• Devonshire— Happy New Year! We’re all looking forward to a new year and a fresh start for the real estate market.  We are definitely seeing the need for more inventory in most price points as buyers seem to be waiting for the “new” homes on the market.  With the buyer incentives going away in late spring, February & March should be much better than January is shaping up to be. It seems slow & our showing numbers attest to this.  With new inventory coming on the market, price & condition are still very important.  Sellers should use this time to be sure that their homes are in tip top shape.  The upper end of the market is still very slow but as we get closer to spring we’re hoping to see movement in this sector.  We are looking forward to a steady improvement in the market as a whole.
• Douglas County— Our Southwest Metro office reports showings are increasing and buyers are ready to buy.  We’re seeing an increase in activity in our listing inventory as Sellers are ready to list their homes and buy.  Our agents are very busy with their clients, not only first time buyers but those that are ready to make the next move.  We’re still seeing homes in the low $200,000 moving quickly as well as homes in the $400,000 range having an increase in activity & offers.  Open houses have been terrific this month.  Agents have been very happy with the activity & the potential business that they are receiving from their open houses.
• El Paso County— Colorado Springs reports the activity in Colorado Springs is steadily increasing week over week in January.  With rumblings of more troops being moved to the area, we expect this trend to continue.
• Larimer County— The first quarter is starting to really rev-up the last two weeks.  Showings have more than doubled since the last week of December & buyers are coming out in droves to see the new inventory.  Most of the action is taking place in the lower price range from $250,000 & under.  In fact, the median price is now roughly $215,000.  Look to see a bump in closings & new listings this winter due to the tax credit extension.  If you are hoping to sell before the credit expires on April 30th to take advantage of the additional buyers available, you should really have your home on the market no later than the first two weeks in February.  Northern Colorado has been fortunate in that we’ve not seen the huge decline in prices.  In fact, the average sales price in Fort Collins has increased every year with the exception of 2008 (-0.9%) & 2009 (-4.7%).  It goes to show that over the long term, investing in a home in this area is a pretty good idea!
• North Metro— The new year is starting out well in the North Metro office.  We have 23 new listings on the market in the month of January so far.  The lowest price $60,000 and the highest at $1,600,000.  The average list price is around $300,000.  We’ve put 32 homes under contract this month.  The average under contract price is $202,000.  The list to sale price is averaging about 90%.  Some of the new listings from our office are coming from sellers who previously tried to sell their hom on their own.  Our agents are able to meet with them & to explain the benefit, especially during this type of market, to list with a Realtor who is familiar with the market & has numerous marketing materials available to them.
• Parker— The buyers have been apprehensive, it seems at the start of the year.  The number of showings is increasing gradually.  We are seeing more relocations to the area and we’re seeing a little more activity in the bank owned sector.
• Southeast Metro— The SE Metro office is seeing a steady increase in buyer traffic.  Our showings have increased over 55% since the first of the year & we set over 500 property viewings last week.  It’s a great time for sellers to get their homes on the market as buyers are having somewhat of a challenge finding homes to fit their needs.  Our luxury properties are experiencing a slight increase in traffic as well.  One of our top agents successfully closed a $2,200,000 home in the final week of ‘09.  We’re confident that this market in the se metro area will see an increase in sales for the 1st quarter of 2010.  Yes, sellers, there is no need to wait for Spring…..with less competition & a healthy buyer pool, now is the perfect time to position your property for a successful sale.
• West Lakewood— December sales were great to end the year.  Now we’re looking forward to a great 2010.  Seems as though the first week of January was slow, but it’s picked up since then.  We have 35 under contracts for the first two weeks of January.  Go tax incentives!!

It’s a New Year…But Is It a New Housing Market?

We’ve all been reading the conflicting headlines.  Some say 2010 will have its challenges.  Others say 2010 will be the start of good things to come.  But what’s the truth?  How can we read through the pessimism and for that matter, the rose colored glasses, to determine what is the truth?

Well, as we all know, only time will truly tell.

But in this forum, I have the ability to offer my insight and share what I believe the coming year will bring.  Together, we’ll weed through the headlines and I’ll offer my honest, unbiased opinion.  And a year from now, we’ll look back on this edition of Weekly Market Watch to determine if my hunch was correct or if I should’ve kept my opinions with the rest of the weeds.

• Overall. I think 2010 will be the year we begin to build a foundation.  Many experts are predicting that the recession is nearly complete, if it isn’t already as measured by a decline in negative growth.  But the recovery is going to depend on stimulus spending and doing more to facilitate job growth.  As Leslie Appleton Young said, “If we don’t create more direct policies to get people back to work, this could go on much long.”
• Let’s start with foreclosures. No, I don’t think we’re out of the woods yet.  I think we have a lot of work ahead of us and much of that has to do with the state of the overall economy.  Unemployment is still high and while I think we’re better, we’re not healed.  The latest U.S. Bureau of Unemployment Figures show that unemployment rates were higher in November 2009 than for the same period in 2008 in all 372 metropolitan areas.  What happens when people lose their jobs?  They typically aren’t able to pay their mortgages.  There are also many people out there with adjustable rate mortgages that just haven’t yet adjusted.  If the government doesn’t step in and those mortgages adjust, many people will find themselves in a short sale or foreclosure situation.  Fortunately the good news is that the government is putting more pressure on the banks to work with homeowners and my hope is that if that, combined with the government’s own work to help homeowners in trouble, I think we’re on a better path with these foreclosures than we were a year ago.
• Interest rates. There are a lot of schools of thoughts with relation to the future of interest rates.  I tend to agree with many economists who believe that last year’s record low interest rates, where some were able to secure a 30 year fixed rate mortgage for under 5%, may be a thing of the past.  Do I see them taking a surge in 2010?  No, probably not.  CNBC Reporter Diana Olick wrote, “Unless the government decides to extend its Fannie-Freddie purchase program or do something else to juice the credit markets, mortgage rates will rise steadily, probably leveling off somewhere around six percent” and I tend to agree with that philosophy.  Still a good place to be.  But having said that, I encourage you to review my February 2009 Reality Check piece in which I shared how increases in purchasing power can affect a buyer’s purchasing power.  I have updated it with the latest numbers and if you are considering buying, you may want to consider doing so before interest rates start making their way up.  Even a small hike in rates can dramatically affect your purchasing power.
• The hottest market? The entry level market is by and large the hottest segment of the housing market right now and in all honesty, probably will continue to be in 2010.  But, it was also the first to experience the downturn so it is certainly easy to suspect that it would be the first to recover.  What we know about the entry level market is this:
  • Homes saw a great deal of depreciation in this market
  • This market was most affected by foreclosures and short sales
  • Affordability is especially high in this market
  • The inventory is low in the entry level market in many areas

I don’t see much of this changing in 2010.

I do see a trickle affect coming from the entry level market into the move-up market.  Many homeowners are looking to take advantage of the $6,500 existing homeowner tax credit as well as the opportunity to cash in on a buyer’s market in the entry level and a seller’s market in the move-up region.  It really is a perfect storm for this group and I hope more move-up buyers will consider that.  Fortunately, we have our Move-Up Marketer program which helps to educate move-up buyers about the opportunities in today’s market.

The luxury market is a very different market indeed.  It was the last to be affected by the market changes and in all likelihood it will be the last to recover.  Having said that, there are some very interesting pockets of success.  It really depends on the house, the neighborhood and the overall demand for that market.  We’ve seen instances where a million dollar home comes on the market only to be snatched up within a few days.  Then, others, just sit.  It really comes down to what the market will bear.

In the end, regardless of what the market may or may not be in the coming year, the bottom line is, it may be a really great time to buy.  Attractive interest rates.  Increased affordability.  Tax credits.  Higher inventories in some market.  In many instances, there hasn’t been a better opportunity to buy in decades.  Please don’t lose sight of that.  If you are in a position to buy and are considering do so, please do explore your options.  I believe 2010 will be a year of building a solid foundation on which to build.  Don’t wait until it is too late.

Sorry to be so long-winded but I wanted to give you a really good glimpse at the coming year.  Now, let’s take a look at this week in real estate:

• Boulder/Longmont—Boulder reported, as one might expect, Christmas week put a huge dent in all numbers.  Over the past two weeks we see that new listings are down 62%, sales are down 46% and showings are down 52%. Here’s to 2010!!Longmont reported 2010 is going to be a good year for buyers.  The tax credits are too good to ignore so now is the time to act.  Short sales are still a large part of our business.  They are time consuming and frustrating but they can be a good value.  They are also impacting appraisals in certain neighborhoods.  Higher priced properties are still long “days on market.”  If you want or need to buy a home this is one of the best times.  Interest rates are low, prices are low and motivated sellers are ready to negotiate and the tax credit not to be missed.
• Evergreen/Conifer—Evergreen reported we had a total of one new listing for the week & four listings that went under contract including two parcels of lands.  We had a total of 23 showings during the week.  Activity is down due to normal seasonal activity however most agents are reporting that both buyers and sellers will resume activity after the year end holidays are over.  Listings are expected to come back on the market beginning mid-January for the spring selling season.  Conifer reported there were no new listings taken during the reporting period.  One of our listings went under contract.  The number of showings is declining due to seasonal trends but is expected to return to normal levels beginning in mid-January.  Property values have not recovered along the 285 corridor and large numbers of bank REOs and short sales remain on the market.
• Denver Central – With the extension of the tax credit to 2010 there has been an increase in first time buyers looking for property to take advantage of the $8000 credit. We’ve also had several existing homeowners contact us for information on the $6500 tax credit.  We continue to see inventory shortages in the Denver market which has created multiple offer situations in the lower end market.  The inventory is substantially lower than it’s highpoint in 2007. Over 50% of the home sales in the Denver metro area are under $250,000.  If you’re looking to sell a home that is priced under $300,00 this is a great time to sell.  This is definitely the perfect market to move up to a higher priced home.  Your financial gain in getting a higher priced property for less should be a big reason to make a move now & take advantage of the slower high-end market.  Overall  we are very encouraged  and excited about the future of real estate in 2010.
• Devonshire—No information reported.
• Douglas County— Showings were down in December and this is the norm during the last two weeks of the year.  We have several agents very excited about the new year as they have several clients ready to list their homes as well as buyers ready to move forward in their quest for a new home.  Sellers & buyers are feeling confident that this is the time to either list their home or buy.  Several of our agents have received a number of phone calls regarding the tax breaks & activity is picking up.  With numerous buyers ready to purchase, we feel there will be great activity at our upcoming open houses.
• El Paso County— Colorado Springs reports the Springs saw a dramatic drop in activity the week of Christmas but it seems to be ramping up once again.  We’ve seen an increase in showings and hopefully that will lead to an increase in listing/sales activity this coming week.  Military relocation referrals have been steady the last two weeks but are still less than we have been seeing on a weekly basis.  With the new year upon us, we’re ramping up for an increase in sales over 2009.
• Larimer County— It’s pretty slow going out there right now and we’ve seen a decrease in activity in both contracts and new listings.  Though there was a slight bump in listings just after the first of January as sellers decided to put their homes on the market in the new year.  Our agents are out showing properties and we’re seeing  new interest due to the extension of the tax credit.  Our median single family home sales price is right around $220,000 & our median attached dwelling sales price is right around $145,000.  Decent inventory & historically low interest rates should give current home owners or buyers a great chance to move-up or purchase their first home.
• North Metro— No information reported.
• Parker— This was an interesting and challenging year for real estate.  The buyers were still out there, just a little more savvy and cautious.  The homes in the Parker area continued to sell and the homes that were priced correctly sold quickly, sometimes with multiple offers netting higher than asking price.  2010 should produce the same type of activity and even more buyers due to the extension of the tax credit.  Parker & the surrounding area will continue to be desirable for relocation with the numbers of jobs projected to increase in the southern areas of metro Denver.  The number of foreclosed homes coming on the market will directly impact prices & length of time on the market so sellers will need to stay aggressive in order to sell their homes.
• Southeast Metro— Welsome to 2010!  We’re off to a fabulous start at the SE Metro office. A record 72 showings were set the day after New Year’s Day!  Inventory continues to decrease & buyer traffic is on the rise.  A record number of homes sold in December and we are confident & optimistic about the 1st quarter of the year.  We’re very excited about the merger of Century 21 Advantage Plus agents to our team.  Here’s to an exciting & prosperous 2010!
• West Lakewood— No information reported.