If you're thinking that Santa's best gift to your family will be your very first home of your own in the new year, conditions are still favorable for you to make that happen at a great price.  Low mortgage rates and buyer incentives such as the $7,500 tax credit make this a great time to plan your move.

According to HouseHunt's annual survey on current market conditions, based on responses from 2,000 agents, qualified first-time buyers are taking advantage of home prices lower then they have been in the last 5-7 years.  According to Michael Bearden, president and CEO of HouseHunt, Inc. "Affordability is no longer a major issue in many areas across the country?especially in those metro areas where prices spiked dramatically in 2003-2006. Sales action today is based on the willingness of lenders to lend. Our member agents report that most buyers with good credit histories are able to qualify for mortgage loans."

The survey revealed:

First time buyers are becoming homeowners in unprecedented numbers:

·         75% of existing home sales in the fourth quarter of 2008 were made to first time buyers vs. the usual pattern where 2/3 of existing home sales are made to repeat or move-up buyers

Home buyers are beginning to close the important buyer-seller ratio:

·         27%  of respondents reported more buyers than sellers, compared to 27% in the third quarter.

·         16% said the ratio is about even, up from 11%.

Pricing still favors buyers:

·         50% of home sellers report they are getting 95% or more of their asking prices vs. 61% getting 95% of their asking prices in the third quarter

·         75% of sellers reported negative price appreciation in the past year. (No change from the previous quarter)

Average time on the market -- that period between listing and sale - is still over 60 days: 

·         93% reports average time on the market is over 60 days

·         24% said 60 to 90 days

·         27% said more than 120 days

·         7% percent said the process was taking less than 60 days, on average

HouseHunt's fourth quarter survey results agree with new housing activity projections and observations released by National Association of Realtors (NAR) economists. "Despite the turmoil in the economy, the overall level of pending home sales has been remarkably stable over the past year, holding in a generally narrow range," noted Lawrence Yun, NAR chief economist. "There is pent-up demand, and access to safe, affordable mortgages will bring more buyers into the market."

Yun added: "Today we're actually seeing favorable conditions for affordability, and this has led to rising home sales in areas that have seen the most marked home value declines. Some homeowners who were hesitant before have realized that, in many cases, now is a good time to buy a home. Affordability is as high as it's been since 2003, as measured by NAR's Affordability Index."

Denver and surrounding communities like Aurora, Parker, Castle Rock, and Saddle Rock are great places to find that first home.  Contact me today to see the best area listings.

Marianne Bandy

Looking for a new home in the Denver area?

The market continues to feel the oppressive effects of the distressed property market in Denver.  REO (bank owned properties) and Short Sales (which means that the Seller owes more than the current market will pay for their property) dominate a large percentage of sales.  The average price is down 12% since the beginning of the January. The Absorption Rate (email me if you are uncertain about what that means) rose sharply in every segment of the Denver market that I track, which is mostly the south south-east Metro Denver market.  The one exception for a drop in the average home price was the Centennial/Greenwood Village/and very south Aurora area, where price increases were seen.  

The most alarming statistic that I am seeing is a sharp increase in the "Fallout Rate", or the number of homes that are under contract, but do not close.  This rose from about 19% in October to 35% in November.  I would attribute that to the drastic change in lending practices as well as a lack of confidence by the Buyers in the market who after going under contract have serious second thoughts and decide to terminate the transaction. 

So, if you need to sell, make sure you hire a seasoned professional that understands the direction of the market and is willing to market your home like a monster. If you want to buy, GOOD FOR YOU! Hire someone that can absolutely represent you to get the lowest price possible.  In either case, that would be The Bandy Home Team!

Also, if you or someone you know happens to be in a situation that they need to sell, but owe more on their property than it may sell for, please have them call us.  We are opening a new division of the Bandy Home Team for Distressed Properties.  Don't let time run out - Call us, we can help!

Marianne Bandy

Perform a free Denver Colorado Home Search

When asked when they expect to see housing market conditions improve in their local communities, 42% of consumers responding to HouseHunt's latest national survey believe it will happen by next summer, possibly sooner.

The question: "Housing industry experts agree that home sales prices are firming in many parts of the country, the inventory of unsold homes is slowly declining, and that mortgage lenders are willing to lend to qualified buyers. When do you expect conditions to improve in your local market?"

Their answers:

This winter                                  15%

In the second quarter of 2009     17%

Sometime next summer               10%

Next fall                                        10%

By the end of 2009                          7%

In 2010                                           41%

Recent turmoil in the housing and mortgage markets have lead to a large (i.e.  almost 10 month) inventory of unsold homes in many areas.  Recent indications in the market show the inventory dwindling somewhat.  Those who qualify for the low interest conventional mortgage offered by banks are able to lock in a reasonable mortgage payment on homes priced right for buyers.

HouseHunt, Inc., is a consumer-oriented internet firm that provides free information to home buyers, home sellers and homeowners through member agents and its primary website, HouseHunt.com.

Interested in seeing if you qualify for one of the great homes available in Denver?  Contact me today to see beautiful, affordable homes and discuss your lending options.

Marianne Bandy

Perform a free Denver Colorado Home Search

Thinking about slipping away after the holidays for a winter trip?  A little planning will make it appear as if you haven't left at all - a deterrent to thieves who prey on empty, unwatched homes. It will also prepare your home for unforeseen events like a bad storm that can occur in your absence. Good planning will actually make your home more welcoming upon your return.

One or Two Weeks Ahead

• Notify your local police department. In many communities they will periodically patrol your neighborhood, as well as check your windows and doors.
• Stop daily and weekly newspapers. You may be able to do this on the paper's automated phone line up to a day before you leave.
• Arrange for lawn service or snow removal, depending on the season.
• Arrange for pet care with a friend or a kennel if your pet is not making the trip.
• Check your alarm system and notify the companies that monitor your fire and burglar alarms.
• Cut shrubs below window level and trim trees away from your house. This is a good security precaution even when you're at home.
• Check your outdoor sprinkler system.
• Stop all routine delivery services such as groceries and mail. If you are expecting UPS packages, make arrangements with a neighbor to scoop up any packages as well as any mail that slips through if you have put a stop on your mail.
• Purchase light timers/check operation.
• Arrange for final trash pickup. (This may mean leaving a bag trash in your neighbor's can, with their permission.)
• Leave a key, itinerary, alarm code and phone number with a trustworthy friend or neighbor and have them periodically check on the home and to water the house plants.

Just Prior to Departure

• Flush toilets. (You would probably do this even if it wasn't on the list!)
• Throw away refrigerated items that may spoil while you are away. (Moldy food does not improve with age.)
• Make sure trash is out of the house.
• Run dishwasher. (These last few items won't deter thieves but you'll be happy to come home to clean dishes and an odor free kitchen.)
• Turn off the water to your washing machine and toilets.
• Turn down your thermostat to 60 to reduce your heating bill or.
• Set thermostats higher than normal if you run air conditioning. Don't turn off your air conditioning if you live in a high humidity area, as it may lead to mold.
• Unplug nonessential electrical appliances.
• Set timers and lights. Set several to switch on and off at different times of the day and night.
• Check all window locks.
• Unhook electric garage door openers and manually lock them. 
• Set alarm.
• Lock doors including deadbolt locks.
• Turn on answering machine if you don't have voicemail.  Make sure not leave a specific message that offers potential burglars too much information.

Careful planning can help you protect your home and belongings while you're on vacation, giving you the added peace of mind that will keep your mind on your vacation.

Looking for a new home in the Denver area? Call me today for an introduction to the best Denver has to offer.

Marianne Bandy

Information for Denver Colorado Home Buyers

A recent FHA audit answered two pressing questions:

1) Will FHA be the next candidate for a bailout?

2) Can FHA continue to handle the increase in volume?

The answers to these questions are important as the FHA is shouldering much of the responsibility for stabilizing the housing market. The net worth of the FHA is down due to the drop in housing prices, but the agency is secure for at least the next 8 years. From looking at this audit report, it appears that the FHA is actually growing stronger as its guidelines are tightening, which increases the number of better quality loans it is writing. Now 35% of borrowers have credit scores over 680 while only 5% have scores under 580.  This is a reversal of the past when the numbers were 17% over 680 and 27% under 580. The FHA is actually the agency that is facilitating the bailout process for many homeowners and is not a candidate for bailout itself.

With new programs like Hope for Homeowners coming into existence, can FHA handle the increased load?  Over the past 15 months, the FHA has shown it can handle four times as many loans as 2007 levels.  One reason is because FHA lenders can perform all of the loan processing, underwriting, closing, and insuring functions without any HUD reviews. Also, FHA technology is resilient and sound, which makes it adaptable to future demand.

An FHA-guaranteed loan might be a great way to finance your next Denver home. Contact me for details.

Marianne Bandy

Looking to buy a Denver home?

	Change vs
	Oct-08	Prior   Month	Year Ago
		%	%
Single Family (Res + Cond)
Active	23,120	-3.36	-20.08
Under Contract	4,504	-14.52	-3.04
Sold	4,282	0.4	11.28
Avg DOM	95	-1.16	-1.69
Avg Sold Price	$232,284	-2.98	-12.42
Residential
Active	17,842	-3.54	-18.7
Under Contract	3,649	-14	-0.76
Sold	3,386	0.59	12.23
Avg DOM	93	-2.11	-2.11
Avg Sold Price	$250,172	-3.82	-13.66
Condominium
Active	5,278	-2.75	-24.39
Under Contract	855	-16.67	-11.67
Sold	896	-0.33	7.82
Avg DOM	102	0	0
Avg Sold Price	$164,686	1.68	-6.55

Yeah! The trend continues!  Homes SOLD was up 11% over last year and active number of listings was DOWN 20% from October 2007 to October 2008.  We continue to move in the right direction with momentum. Average sold price was DOWN 12.4%.  Not good news, but I believe we are reaching the bottom.  This winter will see the bottom of the market, I am sure.  In September, the average price dropped 8%.  In October, it was a 3% drop.  That's the start of a trend.  The average months of inventory is at 5.4 Months.  Generally, 6 months of inventory is seen as a balanced market.  So, the fundamentals are lining up, but the average home price depreciation may be slow to respond. 

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If you missed the news about the $7,500 tax credit for first time home buyers, give me a call, I'd be happy to explain.  The National Association of Realtors is pushing for a housing reform.  One of their points is to make the tax credit of $7,500 allowed for ALL buyers.  Sounds fair to me! 

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There is no doubt that we are in unsettled waters.  We are facing pressures from sides that we've not seen in a very long time.  Through all this, the Bandy Home Team continues to sell approximately 1.4 homes a week. It might as well be yours! If it's results you want, call us, we'd be happy to show you the Bandy Home Team difference.   

Marianne Bandy
Denver Colorado Home Search