At a time when housing prices continue to fall in the 20 major housing markets, Denver is outperforming them all.  For November, 2008, the prices dropped only 1.1%, making it the best performer. For the 12 month period ending in November, all markets showed an average 18.2%  decline; only Dallas, which showed a 3.3% decline, performed better in the last year than Denver, which showed a 4.3% drop.  As expected, the worst performing cities were in California, along with Phoenix, Las Vegas, and Miami; Phoenix home prices declined 32.9%, while Las Vegas prices declined 31.6%.

The modest declines in home prices in Denver are in line with the track record for appreciation.  Since January, 2000, typical Denver homes appreciated about 26.65% as compared to 76% in Los Angeles, 70% in Miami, 87% in New York , 66% in Seattle, and 30% in Phoenix and Las Vegas. 

At a recent real estate forecast breakfast, Patty Silverstein, of Development Research Partners, offered several other hopeful predictions for the Denver economy.  Though the area will lose some jobs, Denver should outperform the nation. The housing sector will see minor increases in sales accompanied by small price increases.  This is possible, she said, because the market is not overbuilt.  "We are building next to nothing. We are not plagued by an over-abundance of inventory like so many other places.  And we never had the roller coaster rise and fall of prices other place saw."

The Denver real estate market offers great values for buyers, notes Chris Behrens of Urban Thrive Real Estate. He notes a trend for buyers to seek out qualified realtors to help them in their search.  The current market has seen many brokers leaving the business due to the economy.  According to Behrens, "buyers are turning to a core group of knowledgeable people to help them find and evaluate properties."

The Bandy Home Team is among that group of seasoned realtors who can lead you to the best real estate deals in the Denver area.  We back our knowledge with excellent service - a winning combination.

Marianne Bandy

Parker CO Homes and Real Estate

Credit scores often determine a person's ability to make major purchases like a home or car at favorable interest rates or to qualify for credit at all.

After a long delay, a revamped credit scoring system, FICO 08, will be introduced in late January, 2009 by the Transunion Credit Bureau, with Equifax and Experian to follow later in the year.  The system offers a few advantages for consumers. 

1.      Collection accounts under $100 will be ignored in scoring. 

2.      A big problem like a chargeoff or repossession will have less of a negative impact on a consumer score than in the past so long as other accounts are in good standing.

3.      The negative impact of authorized users on accounts will be minimized

Fair Issacs, who developed the system, predicts that it will be more accurate in predicting default than the prior credit scoring system, used in more than 75% of mortgage lending decisions and by 90% of the largest U.S. lenders.

The new system is even more sensitive to the amount of available credit a consumer uses. When banks reduce credit limits on home equity lines of credit and on personal and business credit cards - a recent trend - this will negatively affect scores.  Ironically, closing accounts hurts the credit score as well, whether the consumers close them or the lender does so, even for inactivity. 

To minimize the percentage of credit used on each card, customers might have to modify how they use the cards. Many customers use their cards for business or may even temporarily use a large amount of their limit on credit cards to earn reward points or airline miles.  Credit bureaus don't give customers "atta-boys" for paying bills in full. Customers like this, with good payment records, can ask the bank to reconsider a limit cut or request an increase.  If that doesn't work, their best line of defense is to use more than one card and try to keep their spending within 10-30% of the limit on each card.

Customers with less than stellar payment records have little recourse against limit cuts or interest rate increases.  If the lender won't reverse his decision, the only recourse is for the customer to work on paying down the balance - while, of course, not adding new charges to the balance in order to reduce the debt to limit ratio.

One tactic that has helped consumers improve scores in the past has been to transfer revolving credit to installment loans with fixed payments that paid down the balance over time. The new scoring system is even more sensitive to the mix of credit the  consumer maintains.

Staying on top of your credit score and then getting pre-qualified and pre-approved for a Denver home loan are the best ways to ways to insure that your move to a new home will be smooth.  Contact us at the Bandy Home Team for more tips to prepare you for home ownership.

Marianne Bandy

Aurora, CO Homes and Real Estate

In the recent housing economy, only real estate dreamers anticipate that housing values in Denver will be what they once were anytime soon but a recent report has issued the 2009 version of the dream: Housing prices are likely to remain stable over the next two years.  A recent report issued by PMI Mortgage Insurance Co. indicates that area prices have a less than 2% chance of declining within that time.  There is other hopeful news in the report too.

The firm also quoted U.S. Market Risk figures that ranked Denver as the 10^th least risky of the 50 largest metropolitan areas in the country; analysts from PMI maintain that there is little spread between the top 10 markets.  Denver home values are down 3% from a year ago, but the average drop for the top metropolitan areas is 11%.  Other analysts who produce the S&P/Case-Shiller report, put Denver prices down 5.2%, but claim that the average drop for other cities is 18%.

Based on income, housing prices, and mortgage rates, PMI rated Denver homes as 15% more affordable than in 1995 when the company started to measure affordability.  Denver ranks far ahead of markets in California or Florida or other popular destinations like Phoenix or Las Vegas.

This stability in Denver real estate is expected to lead to better days for the Denver real estate market.   Sellers can now rest somewhat easily that property values will not face drastic declines, while potential buyers can buy with the assurance that they wouldn't have gotten a better deal if they waited six months to buy.  

In the wake of the PMI report, real estate investors have been eying the Denver market with renewed interest.  Genesis Group analyst Mike Rinner compared the real estate climate to the late 1980s. At that time, confidence in the real estate market was weakened by years of overbuilding, job loss in the energy industry when prices fell, and the passage of unfavorable real estate tax laws.  When smart investors sensed that things could virtually get no worse, they started investing again.  He expects a similar phenomena to occur now.

Want to see what your Denver home is worth?  Check out our Denver home search website for tips.

Marianne Bandy

Information for Denver Colorado Home Buyers

Foreclosures are still being reported in record numbers across the country, with more to come, but recently released figures for Denver show a reversal of a 12 year trend.  According to RealtyTrac, which compiles statistics nationwide, foreclosures are still increasing elsewhere in record numbers, but Denver's trend is heading down.

In 2008, 27,785 foreclosures were filed within the seven-county Denver area, an 11.8% drop from the 27,785 filed in 2007.  Going by the raw numbers, 2007 and 2008 was the worst year for foreclosures in Denver history. There was an astounding rise of 41.5% in foreclosures from 2006 and 2007.  Previous foreclosure rates, on the rise since the early 90's, were overshadowed by housing prosperity and populating growth.

Why are things looking up in Denver when other areas are not posting optimistic numbers?  Lenders have put a freeze on foreclosures over the last couple months, which might account for some of the reversal.  The idea was that homeowners would have time to work out modifications with lenders.  If it becomes business as usual for lender foreclosure departments, foreclosure rates could rise again.  Carol Snyder, trustee for the Adams County, theorizes that more affluent homeowners are foreclosure candidates these days.  Recent attempts by lenders to forestall foreclosures so they can work out a plan with the homeowner have been more successful because this group of homeowners might have more alternatives available than the low income homeowners who previously swelled the ranks.

Some credit for dropping rates is due to the success of the Colorado Foreclosure Line, which has helped 9,000 homeowners avoid foreclosure since 2006.  They have also taken 52,000 calls which certainly directed many others to alternatives to filing with the help of the hotline counselors.  Some callers who did not pursue alternatives through the foreclosure Hotline may have even pursued shortsale options with their lenders.

Within the Denver area, Denver County itself showed the biggest drop in foreclosure filings.  In 2008, there were 6,145 filings, a 25% drop from the 8,240 filed in 2007.  Denver City Councilman Michael Hancock feels this is because many of the riskiest mortgage holders have now worked their way through the system.  He doesn't anticipate disbanding his Foreclosure Task Force any time soon though.  "Now," he says, "my biggest fear is that people that have safe fixed-rate loans and good credit may lose their home if they lose their jobs."

Whether you are looking for a new Denver home or trying to prevent foreclosure in Denver, Check out our Denver home search website.

Marianne Bandy

Information for Denver Colorado Home Buyers

The Federal Reserve pushed interest rates lower in December, and mortgage rates quickly followed. According to Freddie Mac, the national average for a conventional 30-year fixed-rate loan fell from 6.1 percent in November to 5.19 percent in late December, the lowest rate on record dating back to 1971. The Fed's actions reflect the government's ongoing commitment to stabilize the economy.

Meridian Lending, our lending partner, is offering rates shown in the following chart at the time of publication.

In other news, existing home sales decreased according to a December report published by the National Association of REALTORS (NAR). Existing home sales activity was revised downward to 4.49 million units, representing a 10.6 percent decrease from the same time a year ago. Existing-home sales include single family homes, townhomes, condos, and co-ops.

Lawrence Yun, NAR chief economist, expected a decline and added, "We hope the home sales impact from the stock market crash turns out to be short-lived, as was the case in 1987 and 2001."

Despite the overall decline in sales across the country, rising activity in California, Nevada, Arizona and Florida markets seems to signal a renewed interest in these areas, as bargain hunters take advantage of discounted homes.

Total housing inventory rose 0.1 percent in November to 4.20 million existing homes for sale. This represents an 11.2-month supply, up from a 10.3-month supply the month before.

With mortgage rates falling, now's a great time to buy a home in Denver.

Marianne Bandy

Information for Denver Colorado Home Buyers

As you can see by the chart below, the average price of a single family residence fell almost 14%.  But, look at the breakout.  Detached single family homes fell a little more that 16%, while condo, townhomes and patio homes only fell 8.46%.  The interesting thing that I am seeing, though, is that Parker, Aurora and Highland's Ranch saw an INCREASE in average price from November to December of 2008.  The Real Estate Market is definitely different from city to city and from neighborhood to neighborhood.  If you'd like an update on what direction your neighborhood is trending, just give me a call.  I'd be happy to research that for free. 

 Active number of listings is down to 19,600.  Compare that to 24,603 for 2007, 24,534 for 2006, and 23,092 for 2005.  Sellers that don't have to sell are definitely waiting on the sidelines.  I am expecting a big boom in the number of listings in January and February because of the pent up demand by sellers to list and sell their properties.  It really will depend a lot on the economy.  Next month, I'll let you know if I was on target with that prediction.

While it may feel like we are reaching a real slow down in foreclosures and Short Sale properties, analysts are expecting that to pick up again as the year progresses and "A" paper loans begin to readjust. 

If you are in a position 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 to help people avoid foreclosure in Denver.   Don't let time run out - Call us, we can help!

Marianne Bandy

Free Property Search Denver, Colorado

In Denver and all across America, a light is dawning.  In tough economic times, people want to be more energy efficient and more environmentally conscious.  Downsizing the home, due to mortgage costs, maintenance issues, or energy concerns, is a growing trend for small families, empty nesters, and seniors.

Denver Metrolist statistics from October, 2008 put the average price of a Denver-area condo at $164,686, about $100,000 less than the average area home priced at $250,172.  Condo prices are down only 6.5% from a year ago, as compared to 13.6% for home prices.  Smaller tax and utility bills follow the smaller mortgage.  Moving to a smaller home is a great way to cut monthly costs.

The initial downside of downsizing for most people is that reducing the space also means "reducing the stuff."  People tend to fill up the space they have with things that soon become "necessities," so it's hard for most people to pare down their possessions to what will fit in a smaller space.  Half the space usually means half the furniture can't make the trip to the new home, while other things such as clothes, appliances, TVs, sports equipment, gadgets, and other things will have to be evaluated in view of the amount of space in the new home. 

Another consideration is that the new space might be configured differently so that a couch or  wall unit that should technically "fit" just won't go through the door, down the stairs, or look right in the room given where the doors and windows are placed or how the wall is angled.  Measuring the new space (including the door jam), eyeballing the angle of the staircase, or laying out the furniture on a blueprint should help facilitate the decision about the fate of some furniture.  Even big screen TV's might be a casualty of the move.

After a brief period of mourning, a downsizing strategy will help pare what's moved down to a manageable size and help reduce moving costs as well: purge, purge, purge is the goal.  This can be accomplished by selling what's not making the move through garage sales, eBay, Craigslist, or signs at the grocery store, donating it, or throwing it out - or a combination of all three.

People sometimes make the mistake of moving much more than they need in anticipation of making choices about what to keep once they have moved or sorting it all out later.  This not only increases moving costs, but either clutters up the new space or postpones making a decision to get rid of unused items. The age old rule-of-thumb in deciding to kept or part with things is "if you haven't used it in a year, you don't need it."

When people move, they are often charting a new course in their lives.  The upside of downsizing the "stuff" is the new home starts out uncluttered.  It's hard to do that in a warehouse of old furniture!  Often, getting rid of now-unusable items is a ritual cleansing that makes the move to a new home even better.

Looking to downsize your Denver home?  The Bandy Home Team can show you the best in right-sized homes.

Marianne Bandy

Free Property Search Denver, Colorado

With foreclosures down statewide and home prices stabilizing, Colorado's Foreclosure Hotline is still busy.  Calls to the hotline doubled in November, 2008 compared to a modest 32% increase in 2008 through September, 2008.  This increase in call volume is traceable to widespread news about the financial crisis and recession.  Since people who are calling are in an earlier stage of delinquency than in the past, there is good likelihood that the callers will get the help they need to avoid foreclosure.

Hotline workers urge callers who face the prospect of foreclosure to meet with a housing counselor to review their finances and mortgage options.  Depending on their current income, many troubled homeowners are able to qualify for loan modification of loan terms and monthly payments. If home prices in an area are still in freefall, loan modification may not save the home in the long run. This approach can be a great option in areas where home prices are stabilizing, which is the case in Colorado. 

Analysts agree that early attention to delinquency allows homeowner a better chance to save their home or work out another acceptable resolution.  Major lenders are becoming more willing to extend remedies to homeowners who are headed for trouble, before they are seriously delinquent.  Mortgage delinquency status of hotline callers is:

35% ? Current

  8% ? 1 month

17% ? 2 months

17% ? 3 months

12% ? 4 months

14% ? 5 months or more

Percentages exceed 100 because of rounding

Since October 2006, when the hotline was set up, 52,000 people have called; over 20% have met with its counselors.  At least 37 %of those who received counseling kept their homes by bringing their mortgage current, refinancing, receiving a loan modification, taking a second mortgage or getting a repayment plan.  A quarter were able to sell their homes or convey them to the bank without a foreclosure. Bankruptcy claimed 14%, 17% went into foreclosure, and 14% had other outcomes, such as being referred to a housing agency.

The hotline can be reached at (877) 601-4673.

Wondering how much your Denver home is worth?  Or interested in seeing available area properties?  Call me today for a prompt reply.

Marianne Bandy

Bandy Home Team

The most recent Case-Shiller Home Price Index for October 2008 for the Denver real estate market shows a seasonal decline of 1.5% and a year over year decline of 5.2% which puts Denver among the three best performing cities out of the twenty analyzed.  Denver home prices improved slightly from a 5.4% YOY decline to 5.2%, one of only two cities to improve.  As I've said before, Denver is largely escaping the huge price drops experienced by other markets. ....looks like the Denver market may be bottoming as we head into 2009!

Call me today to see what's available in Denver.  We can also assist you if you're selling Recent figures indicate that you can be confident that the prices are stabilizing - good news for buyers and sellers!

 Marianne Bandy

Looking for a new home in the Denver area?