It’s in the job description of successful real estate agents these days: to be a cheerleader for the upside of the housing market.  That job is now easier due to some encouraging signs in housing.

First, data collected by the National Association of Realtors (NAR) from Multiple Listing Services around the country and released as the National Sales Index, reports a 6.5% increase in housing sales in December, 2008 compared to one year ago.  Some markets in the South and Midwest shot up 13%.  The figures reflect home sales where contracts are signed but not yet in the closing stage.

The likely causes for this upsurge in sales activity are lower home prices and falling interest rates, according to NAE economist Dr. Lawrence Young.  As we have reported here before, Denver home prices have stabilized over the last months.  This makes buyers confident that the house they pay $300, 000 for today won’t be worth 10% less in a few months.  Foreclosures are also down, which improves general consumer confidence even though it does not directly impact buyers.

With the passage of the $8,000 tax credit, new buyers are expected to emerge, making spring buying brisk.  Some critics have complained that there has been no run on real estate offices in the first week of the credit’s existence; unless potential buyers had their down payment under the mattress and ready to use, the credit cannot be expected to have instant results.  (Since the credit can be claimed in 2008 or 2009, some buyers will get a quick turnaround of the credit though, given that tax time approaches.)  Time will prove this credit a motivator for first time buyers to make the move to home ownership.

Though the inventory of homes is shrinking a bit as buyers are grabbing them up, there is still a great variety of properties for buyers to choose from.  Homebuyers can look at the Denver metro area or surrounding communities such as Aurora, Parker, or Castle Rock and find what they want and need at affordable price.  With excellent Denver area schools, plentiful recreation activities, and lots to do, our city is an appealing location for families to put down roots.

The passage of the housing bill, right on the heels of the signing of the Stimulus Bill, assures that Fannie Mae and Freddie Mac will continue to stabilize mortgages, and at lower rates.  For new buyers with stable jobs, good credit, and a down payment available, the new rates should insure minimal sticker shock when the payment is calculated.

Find your Denver dream home today.  The Bandy Home Team is proud to be a cheerleader for the Denver housing market!

Marianne Bandy

Relocate to Denver in 2009

There are many great reasons to buy a home in Denver, but the recent stimulus bill has just given homebuyers 8,000 more reasons to act now.  In the new stimulus bill signed by President Barack Obama on February 16, 2008, first time homebuyers can claim up to $8,000 or up to 10% of the value of the home as a tax credit. The hope is that potential buyers who are deliberating whether to buy now or wait for possible future declines in housing prices will take the plunge.

The amount is less than the $15,000 originally proposed, but unlike the "$7,500 tax credit" offered last year, at least the terminology is right. Last year's credit was actually a "no interest loan" over 15 years. The $8,000 is a real credit which does not have to be repaid.  As was the case with the old credit, taxpayers who owe less taxes than the credit will receive a check for the difference from the government.

The money is not intended to help new buyers out with the down payment, but a chunk of money in hand (or less withholding each paycheck) will be a great benefit to new homeowners.  For many moving from rental property, the funds will be helpful in offsetting the new costs they find themselves faced with that they may not have had to pay as renters, such as heating bills, homeowners' insurance, or landscaping. The new house payment is usually more than the rent, so the credit dollars will help them transition the higher payment into their monthly budget.   People often need new appliances, new window treatments, and maybe even new furniture for their new home; having a few extra dollars available for these things will alleviate the temptation to run up the credit cards.

Aside from the no payback provision, how does the new credit differ from the old? The provisions are compared in this handy chart:

As is true of other measures enacted lately to solve the housing crisis, the tax credit is intended to help people acquire - or in the case of anti-foreclosure legislation, keep - their primary residence.  Vacation homes or investment properties do not qualify.

With an inventory of affordable Denver homes within reach, and interest rates near historic lows, now is the time for qualified Denver home buyers to contact us at Bandy Homes to take advantage of this new credit.

Marianne Bandy

Beautiful Aurora Homes

Few people move into a new home with plans of defaulting on their mortgage.  As they say in the movies, "life happens when you're making other plans."  Many who took on a mortgage with the best of intentions now find themselves in trouble when their loan terms change or when their personal income picture changes due to job loss, divorce, or illness.  They are late on a payment, or miss one or two, and then find themselves on the receiving end of phone calls from the lender threatening foreclosure.  As we have said here before, foreclosure does not have to be the end of the story.  What steps, then, can a person take who wants to keep his home after falling behind?

It's human nature to ignore problems in hopes they'll go away or work themselves out, but in the absence of a financial windfall, mortgage delinquency will not disappear.  Late payments will show on a person's credit record even after the account is caught up.  The best first step to preventing foreclosure is to seek help early, which is plentiful these days. 

·         Lenders are more willing to work with borrowers these days, so calling the lender directly is one option.  Lenders do not really want the property back so they might be willing to help you.

·         The Colorado Foreclosure Hotline is set up to counsel delinquent mortgage holders.  The housing counselors there can suggest a plan of action.

·         A real estate agent like myself with expertise in handling distressed property situations can also work with the homeowner to find alternative solutions to foreclosure in Denver.

Many foreclosures occur because people wait too long to check out their options.  While mortgage payments are usually due monthly, the lender will usually just add fees and make calls for three months before starting the foreclosure process.  By this time, thousands of dollars could be due.  As soon as a homeowner knows he's headed for trouble is a good time to make the call.

As an unfortunate byproduct of the foreclosure crisis, many for-profit companies have sprung up to take advantage of scared and worried homeowners.  Scams abound in this area, but so does free advice.  The Foreclosure Hotline is non-profit, the lender will work with the debtor to prevent further loss, and a CDPE-certified professional like myself does not benefit from counseling. 

Foreclosure has a long-term impact on a person's credit record.  Not only do people have to declare a foreclosure on job applications and credit applications for cars, apartments, and mortgages, but their credit scores are hit with a loss of 300 or more points, which may be an obstacle to their obtaining credit or a future mortgage at reasonable rates. Taking swift action is the best way to prevent or minimize damage and salvage not only the home but one's financial future as well.

For a confidential discussion about alternatives to foreclosure in Denver, contact your Denver CDPE advocate today to discuss your options. I'm here to help!

Marianne Bandy

Your link to beautiful Centennial CO homes

During the last quarter of 2008, 19,600 homes were listed on the Denver MLS, a 20% drop from December, 2007.  Meanwhile, the 47,837 home sales for 2008 home sales represented a 4% drop in sales from December, 2007.  These figures indicate that there is a five month inventory of homes available for buyers - considered to represent equilibrium between buyers and sellers.

On the surface, this appears to be good news.  In many areas of the country, there has been a 10 month supply of homes.  Denver home prices are more stable than in many other areas and foreclosure rates are falling.  Denver homebuyers still have a good selection of homes to choose from.

The fear voiced by some local real estate analysts is that many potential sellers are withholding their homes from the market until the situation improves.  According to John Covert of Metrostudy, this has led to the development of a "phantom" resale market of sellers who have deliberately held back from listing their homes or who have taken them off the market for a time.  Sellers feel that will get a better price if they wait.  At some point when a large percentage of these phantom sellers decide to list their homes, the market will once again be out of equilibrium. 

The number of available homes on the market is expected to be supplemented by additional foreclosures, as well as by the release of a large number of bank-owned (REO) homes into the marketplace.  Sellers who are waiting for a better time to sell may face even more competition and more market pressure to sell at a lower price.  Buyers will continue to enjoy an almost overwhelming selection of fine properties.

Though sales are down among market-value homes for sale, a good real estate agent can assist a potential seller to correctly position his home to be one of the ones that "move" and help negotiate a fair price.  It is true that homes may not yield the appreciation -fueled prices of the past, but a realtor can provide comparative market analyses that show what neighborhood properties are selling for and factor in special features that may command a higher price.  The realtor can suggest how the home might be made more saleable and suggest pricing strategies.  When buyers, often aided by agents themselves, are overly aggressive in their attempts to cut a deal, a good realtor can offer a dose of realty to both sides.

Do you want to sell your home, but fear that declining home prices will pressure you into selling your home for less than it's worth?  At the Bandy Home Team, we can help you find out what your Denver home is worth and assist you in pricing your home right.  Why wait till the market is flooded with homes again?  Contact our Denver home sales team today.

Marianne Bandy

Your source for Castle Rock homes

Foreclosures in Denver  may be statistically decreasing but for homeowners who are slipping into mortgage payment delinquency, the fear of becoming a statistic is strong.  As a Distressed Property Expert and Realtor, I insist that foreclosure is not the answer to the current home ownership crisis looming throughout the Denver area.

Foreclosure, not unlike a surgical procedure, should be viewed as the last recourse after everything else has been explored and not the first treatment choice.  Many Coloradoans are fearful of their situations and do not realize that there are positive steps that can be taken to avoid foreclosure in Denver. My focus with homeowners facing foreclosure is to give them the hope of a dignified solution to their financial crisis through current lender loan modification, loan refinancing (short or long-term) or a short sale (a lender-approved sale at less than the outstanding loan balance.)

After several years as a top performer at the Bandy Home Team, I recently completed certification as a Distressed Property Expert.  I personally view my CDPE (Certified Distressed Property Expert) designation and my commitment to help financially distressed homeowners, as both a responsibility and an obligation to my profession.

Over 85% of the clients served by CDPE real estate professionals avoid foreclosure. Alex Chafren, founder of the Distressed Property Institute, believes that homeowners surrounded by a strong CDPE real estate agent team including legal and financial referrals have the greatest chance of avoiding foreclosure and at minimal financial investment to the homeowner.

My commitment to help save homeowners from foreclosure began after participating in several foreclosures, short sales, and bank owned transactions.  Witnessing the helplessness, utter sense of aloneness and guilt felt by homeowners facing foreclosure compelled me to act as a homeowner advocate, lending a helping hand of expertise and compassion.  My eight years of real estate experience, my commitment to education, strong marketing, systems development, and checklists, combined with my knowledge of the pre-foreclosure process, have given my clients a huge advantage in this current epidemic of foreclosures.

Not having a clear understanding of the elements and consequences of foreclosure lead many homeowners to just give up.   And believe me there is a huge difference in "after foreclosure" as opposed to "life without foreclosure."  We may not be able to save every house, but we can offer the saving hand to every financially distressed homeowner. 

Need information about alternatives to foreclosure in Denver ? Do you want to receive a free report on how to prevent Denver foreclosure? I'm here to help!

Marianne Bandy

Your guide to beautiful homes in Aurora Colorado