Today, the average Denver homebuyer is different than they were a few years ago - their needs and lifestyles are changing.  Prompted in part by a struggling economy, homebuyers have reprioritized their lives and are scaling down, including the size of their home, and home builders are responding.  Many builders are introducing new designs, featuring smaller, simpler homes created to appeal to younger, more mobile buyers - many of them first-time buyers.

For example, Shea Homes Colorado is rolling out its first new community at Reunion, in the northeast Denver metro area, in four years, with a focus on less expensive and less expansive houses.  Another Colorado builder, KB Home, has launched a new line of paired homes at Stapleton called The Open Series, priced from $204,995 for a 1,159 sf, 2 bedroom, 2 bath home, to $229,995 for a 1,667 sf, 3 bedroom, 2 bath home. 

And while their prices and square footage are dropping, the quality of materials remains high.  All Shea Homes come with a 42-inch plasma television, stainless steel appliances and a charging station for an electric vehicle in the garage.  These new designs no longer contain the traditional elements like formal dining and living rooms, but instead feature a large great room, where the homeowners will do most of their living.

It seems that the combination of catering to the changing needs of homebuyers as well as keeping an eye on market trends has paid off.  Traffic for Denver area homebuilders has picked up lately, with November new net sales in new home communities of 10 units or more increasing to 31% higher than the same month a year ago.  Some builders are reporting that they’ve seen more customers come through their models in the first two weeks of 2010 than they’ve seen in the same period for the past two years. 

Are you thinking about scaling down or buying your first home in Denver and mindful about the value of a smaller, well-designed home?  Did you know that the Bandy Team has proven expertise in helping buyers with negotiating with home builders?  Give us a call and let us help you find your dream home in Denver or any of our surrounding communities.  We are your local Denver area real estate pros!

Marianne Bandy
Read Our Denver Home Buyer FAQ

Selling your Denver home in the dead of this winter season might seem like a bad idea, particularly considering the current state of the economy, but waiting until spring to list your property could be a mistake.  This year,mid- to late-winter could be a great time to sell, particularly if interest rates stay low - and they are historically low right now. 

Normally, the inventory of homes for sale in Denver dwindles in December as people focus on the holidays. Sellers who market their homes early in the year often find little competition from other sellers, and this year we are predicting that sales will peak earlier than in the past.  We are recommending, in order to avoid competition, that the best time to get your home on the market will be February or early March.

What makes this year different than most?  Starting last Fall, investors and first time buyers began scooping up foreclosures due to the low prices, contributing to the low inventory we have now. Government incentives will continue to have a big impact in early 2010.  The Feds extended until April 30 the first-time buyer tax credit (of up to $8,000) and added a tax incentive for repeat buyers (of up to $6,500). Thus, many buyers are determined to sign a contract before the April 30 tax credit deadline to make sure they get the tax credits.  To safely achieve that deadline, buyers will need to be out looking for a home right away.

For sellers, listing in the next several weeks will ensure that their property will have far less competition - most people wait to put their home on the market in the spring months.  Since there is less inventory in the winter than at other times of the year (especially this year), we will be able to make your home stand out with a comprehensive marketing program.  And, by selling your home during the winter, you may benefit by being able to more easily hit your moving goals and priorities (you were going to sell your home anyway, right?). 

Additionally, the buyers who do look at homes at this time of year may be fewer, but they are usually much more serious about making a purchase.  January is typically a month with a lot of corporate transfers, and many people have to buy a home as soon as possible because of this.  By starting to market your home early, you may be able to secure a higher price because of the decrease in supply.

Are you thinking about selling your Denver metro area home?  If so, call the experts at the Bandy Team and find out what they can do to help you achieve your goals!  We have experience helping both Denver home sellers and Denver home buyers - and all across the Denver metro area.  We would love to be your local Denver area real estate pros!

Marianne Bandy
Check out our Moving Checklist

The Federal government is taking action to speed the housing market recovery by lifting the FHA 90-Day Seasoning Rule with the hopes that it will speed the resale of foreclosed properties.  This is great news for Denver homebuyers (especially first-time buyers) and investors, who up until now, have been required to wait at least 90 days after the previous sale date before being able to close with any buyer who has an FHA-backed mortgage.

Originally, the Department of Housing and Urban Development enacted the regulation in an effort to discourage investors who were flipping houses and driving up prices during the housing market boom a few years ago.  However, the rule’s unintended affect in today’s market has been to reduce the options of first-time buyers who already are competing for a shrunken supply of homes for sale.

Announced on January 15th, the one-year moratorium on the “anti-flipping” rule will begin on Feb. 1st.  Affectively, this will open a new pool of homes to first-time homebuyers.  It will also give buyers access to a broader array of recently foreclosed properties.  As an added bonus, it is not expected that this will have much effect on home prices, further stabilizing the housing market.

Many investors are thrilled because opening up their business to FHA buyers means they can now sell to anybody.  That hasn’t always been the case, and FHA buyers have often been left out of finding affordable homes that are move-in ready.  Today, next to FHA buyers, cash buyers make up much of the rest of the active market, and many of them are speculators and investors. This new rule will connect the two groups.

The new guidelines do require that investors who are reselling a home do not profit more than 20 percent above their purchase cost, but those limits are excepted if an independent appraiser confirms that renovations and repairs justify the higher price.

It is expected that the suspension of this 90-day rule will grow the number of transactions in coming months, and that will be good for our nation’s communities, as well as the real estate market in the Denver area.  More buyers for investors will motivate investors to buy and renovate more houses, which will serve to move the market forward.

Are you thinking of buying a Denver area home, a house in Castle Rock, or in any of our many other gorgeous surrounding communities?  If so, the time is now!  Let the Bandy Team serve you with our expertise and experience to make your dreams come true.

Marianne Bandy
Read our buyers Tips for Denver Home Buyers

Marianne Bandy’s Denver Real Estate Market Outlook for 2010
RE/MAX Professionals – Denver, CO
All data taken from Metrolist, Inc, on January 4, 2010.  Denver, Colorado

Do You Wish You Would Have Bought More Residential Denver Real Estate in 1988?  Don’t make  the same mistake for 2010.

2009-2010 will be the time frame known as the bottom of the real estate market in Denver, Colorado and many will ask the question in the future, “Do you wish you would have bought more real estate in 2009-2010?”  We see the Denver marketplace improving slightly in 2010 over 2009 and we see prices starting to appreciate in the 4-6% levels for the entry price points for 2010.
 
There are Three Key Reasons why 2010 will be a more consistent year in residential real estate. These three major factors were not the case the previous three years.

The First Reason 2010 will be improved over past years is inventories are at historical lows in Denver.

Housing Inventory in January of 2010 is the lowest level in 7 years.  With single family and condo units that are for sale totaling 16,781, this makes for a 15.4% decrease in the number of available properties over January of 2009 and a whopping 31.5% over January of 2008.

• Single family homes for sale are at a low of 12,637 total number of units
• Condominium homes for sale stands at 4,144 units available as of January 4, 2010.
• The decrease in inventory from December of 2009 to January of 2010 represented an 11.2 % decrease.  Normally you would expect decreases in the 8% range from Dec to Jan.
• Inventories in the 0-$250,000 range will see appreciation in 2010
• Inventories in the $250,000-$500,000 range will outperform 2009 in number of units sold.
• Homes priced above $1 million dollars have a large inventory, but this price range typically dwindles faster due to staying power of upper end property owners’ financial ability to wait out the market.  Even though today there is lot of upper end inventory, we believe this will decrease at a faster pace than 2009.

The Second Reason 2010 will be improved is that the market is moving from a buyer’s advantage to a seller’s advantage in the starter price ranges. 

• When inventories dip below 6 months supply normally appreciation occurs.
• Be cautious in using a January month supply number as a sole determining factor in predicting the future, because historically inventories are lower in January than any other time of the year.
• Different subdivisions will outperform or under perform the numbers below.  Real estate is localized to the subarea you are living within.  Make sure you know your neighborhood market conditions to predict where the market is going.

The current supply of Homes in the Denver metro area per price range is as follows:

• Condominiums are lagging behind single family homes in demand for 2009.
• As lower priced single family inventory continues to be absorbed, condo inventory will start to be absorbed at a faster pace in 2010.
• 2009 has experienced appreciation in the lower price ranges. The extension of the $8000 first time home buyer Tax Credit and the addition of the $6500 Tax Credit for existing home owners should continue to cause the lower price ranges to appreciate.
• 2010 will start to experience the move up buyer re-entering the market in the $250,000 to $500,000 range. 
• Conversely, 2009 also saw homes priced above $1 million struggle with holding their prices and experience a price declining market in 2009.  Overall the average price of these homes dropped 11.2% in 2009. 
• There are fewer properties to compete with today and serious buyers are buying now, due to the extension and expansion of the Tax Credit, as well as historically low loan rates..
• Interest rates are 5% for conforming loans today and more than likely will be a little higher in 2010 causing buyers to make a buying decision early in 2010 versus waiting till later in the year.
• We anticipate a slight rise in interest rates in the first half of 2010 to 5.75% to 6%.

The Third Reason 2010 will be improved over previous years is Denver’s economic condition is more stable today than at any time over the last 36 months.

• Job stability is stronger in Denver than other markets
• An increase in employment will start to occur in the second half of 2010, increasing the confidence of the consumers to buy a home.
• 2010 will see more stability in the employment sector providing for more buyers willing to buy.

Sold Data is a Trailing Indicator of the Marketplace.

• Sold data is the trailing indicator of market conditions.  We believe 2009 is the low point in number of transactions. In 2010, month over month closed transactions will be within 1% of 2009 or in some months exceed the previous year.
• The number of total sold units for 2009 was 13.8% less than 2008.
• Condo sales declined 10.2% from 2008.
• Residential sales declined 14.7% from 2008.

Properties under Contract are the Leading Edge of Predicting the Market

• The “Under Contract Homes” indicate we have a better pipeline of existing business to open the year than in the last 4 years.  More homes that are set to close is a trend of a market starting to move upwards.
• We anticipate the closing time frame to shorten in 2010 as banks and Realtors are better understanding the new financing and short sales processes.

What did 2009 bring to Real Estate in Denver?

• The $8000 Tax Credit did create more sales in the 4th quarter of 2009 and will enhance sales the first 4 months of 2010.
• The number of properties under contract remained at higher levels which indicated a longer closing period and increased buyer confidence to stay with the elongated process of short sales and financing challenges.
• Denver Metro saw a decrease of more than 20% of the number of real estate brokers in 2009.  Work with a seasoned professional to protect your position.
• The average price of a home declined 2.3% in the Denver Metro area.  Lower priced properties went up and higher priced properties declined.  Know your neighborhood before just assuming the trend affects you and your home.

Overall 2010 will bring compelling reasons to buy real estate in Denver.

• The $8000 tax credit for first time homebuyers and the $6500 dollar tax credit for existing home buyers will increase demand the first half of 2010.
• Interest rates are at historical lows and will rise.  Once that occurs, buyers will move more quickly to obtain the home of their choice.
• Continued fewer new home starts will create less competition for resale homes and allow them to be absorbed at a quicker pace than in 2005, 2006, 2007 and 2008.
• Alternative marketing methods will be used to avoid foreclosures and move real estate including loan modifications, pre-foreclosure programs, short sales,  and property auctions.
• Prices for the upper end market continue to offer extraordinary concessions making for a perfect time to acquire the home of your dreams.

What should buyers do in today’s market?

• Take advantage of your “Move-up Power” by exploring what it would take to rent your existing home and get an exceptional deal on your next home.
• Get pre-qualified for your loan before starting your home search to become more attractive to sellers.
• Be creative in your offers to add closing costs, HOA dues or loan points to make the monthly payment more attractive to you short term.

What should sellers do in today’s market?

• Know your individual sub area statistics to best position your home.
• Have your home professionally staged to capture the eye of today’s buyers.
• In the lower price ranges, be the best conditioned to get multiple offers.
• In the upper price ranges, offer extraordinary terms to attract the buyers to your home.

If you or someone you know is ready to make a move in this favorable market, call me, Marianne Bandy, at 303-746-7799.

It seems that everywhere people are talking about the benefits of going green - from recycling, to fuel efficient vehicles, to homes built with energy savings as a primary focus.  We are certainly concerned about energy efficiency all around Colorado and in the Denver metro real estate market.  While it may be a big task to make our new and existing homes more environmentally friendly, those who are in the market to purchase a home may find the job easier and more affordable than ever.

Increasingly, home buyers are interested in homes with green features, like energy efficient furnaces, low-e windows, tankless water heaters, and attic insulation with high R-value (an indicator of insulation's resistance to heat flow) - all of which cost more in the short term. However, these upgrades end up paying for themselves over time with energy savings.  Reports also show that home buyers are now willing to spend more on a green home because they realize how much they’ll be saving in energy costs.  Here in Colorado, saving on energy costs when the weather can be harsh is a big plus!

Now, retrofitting an existing home to increase its energy efficiency can save the homeowner through  Federal tax incentives (up to $1500 can be claimed for all products installed in 2009 and 2010), as well as state incentive programs.  The Colorado Governor's Energy Office (GEO) currently offers the Insulate Colorado Program, which provides rebates for homeowners who reside in eligible jurisdictions.  Also, beginning in early this year, the Governor’s Energy Office (GEO) will be offering rebates for Colorado residents and businesses that install energy efficiency and renewable energy measures.

In real estate today, more buyers are asking for energy audits on the homes they are interested in purchasing, and a good rating is certainly becoming an important selling point.  Many Denver area builders are utilizing ENERGY STAR products, and a few are even becoming certified through Built Green Colorado, E-Star Colorado, and Leed.  While going green may cost home buyers and homeowners more initially, with all of the incentives and savings on energy bills because of the effort, it’s a great time to consider eco-friendly housing. 

If you’re in the market for a home in Denver or are looking to buy a house in any of the other communities along the Colorado front range, let the Bandy Team be your local Denver real estate experts!

Marianne Bandy
Frequently Asked Questions about Relocation to Denver

Denver-area home prices fared the best in a survey of 20 cities that was released December 29, 2009.  Home prices in Denver fell only 0.1 percent in October compared to a year ago.  From September to October in 2009, Denver prices decreased by 0.4 percent, which represented a two month dip following a rise in home prices the six months previous.

All of this slight rising and dropping indicates a relatively flat local market, which is good news amid a national economy that is largely struggling - but getting back on its feet, nonetheless.  Many housing markets in the US are continuing to fall.

Nationwide, home prices declined an average of 7.3 percent in October of 2009 compared to the same month in 2008, according to the Standard & Poor's/Case-Shiller Home Price Index. This represents the smallest year-to-year drop since October 2007.  While the national housing market is still declining, the pace is starting to slow - showing yet another sign of returning stability and increased consumer confidence. 

Denver area figures are more positive than others because our market did not see the huge price increases from 2003 to 2006 that other areas did - we did not have quite as far to fall.  And, we are recovering at a similar pace with the rest of the national housing markets.  In addition, Colorado's relatively low unemployment rate (6.9 percent) is helping to anchor the local housing market. The national unemployment rate last month was averaging around 10 percent.

It is clear that because of our better economic climate here in Denver, we are poised to make a faster and less difficult recovery. 

As we begin a new year, are you ready to find a new home in the Denver area?  If so, contact the Bandy Team and let us handle every detail of your real estate needs.  We have helped many Coloradoans achieve their dreams of home ownership!  Wherever you might be looking for a house in Denver or in any of the surrounding communities along the front range, we are here to help!

Marianne Bandy
Search for Denver area real estate

While we’re not yet completely recovered from the latest housing market downturn, local Denver metro area builders are seeing an upturn, which is good news.  Demand is increasing for new construction homes, especially among first-time buyers, and those who are buying are more intent and serious than they have been in the recent past.

Builders in the Denver housing market were selling on average one home per community per month during the third quarter, which is up from 0.7 homes a month during the same period last year.  And, cancellations for new home contracts are down 40% year-over-year.

As consumer confidence is returning, some builders like Richmond American Homes are reporting sales this year almost double from the same time a year ago.  Factors contributing to the increased activity include low interest rates, fewer existing homes on the market and the first-time-homebuyer tax credit — which was recently expanded to include buyers who have owned their homes for at least five years.

To support the idea that we’re in the beginning of a recovery, we're starting to see stabilized home values, dropping inventories among both resale homes and new homes, and increased affordability that is prompting people to begin buying once again.  In addition, homebuilders are starting to purchase more lots, as well.  All of this signals that the housing market in Denver has already hit bottom and is poised for recovery and just about all real estate experts agree that we’re clearly in the midst of recovery.

Are you interested in buying your first home in Denver?  Maybe you’d like to sell your Denver metro area home and purchase a house in Castle Rock or a vacation home in Larkspur?  Whether your goal is to get into the Denver housing market or find your dream home in any of the wonderful front range communities,  the pros of the Bandy Team are your local real estate experts!  Give us a call, and let us help you achieve your dreams!

Marianne Bandy
Compare Denver Communities

These are interesting times in the Denver housing market, and nationwide.  Today, there are a lot of homeowners who owe more than their homes are worth, and up until recently, only one viable option seemed to exist for people who could no longer afford to stay in their homes - banks were foreclosing, leaving the homeowner with nothing and the banks with even less.  Now, faced with a housing slump and an economic recession that has cut resale values as much as 30 percent, banks seem to finally be getting smarter about the huge inventory of homes that would otherwise be going into foreclosure - they are starting to approve more and more short sales. 

A short sale is when the bank agrees to allow the homeowner to sell the home for less than the balance of the mortgage owed.  The process can be lengthy; sometimes the bank will take several months to approve a short sale, so buyers have had to be patient.  For every short sale there were 25 foreclosures started or completed during the first half of 2009, which has brought sharp criticism from the Obama administration and lawmakers.  They’ve accused banks of favoring foreclosures and delaying short sales to keep losses off their books.  Now, lenders and loan servicers can receive up to $2,000 in incentives to close short sales under a Treasury Dept. plan presented on November 30.

But, short sales are increasing - tripling to 40,000 in the first six months of 2009 from the same period in 2008.  It seems the banks are finally realizing that they’re better off if they approve a short sale, than if they allow the home to go into foreclosure.  And, banks like Wells Fargo, Bank of America, and JPMorgan Chase. have hired and trained more staff this year and developed software systems for expediting short sales and increase marketing of short sales to delinquent borrowers.  This is a welcome change, and it is hoped that it will loosen the bottleneck that we’ve seen in the marketplace. 

To learn more about the new rules on short sales, read our blog article titled "Will the New Rules Put the Short Back in Short Sales For Denver Home Sellers".

Whether you’re in the market to buy a Denver area home or sell a home in Denver, you want to be sure you’re getting the best value, so let the Bandy Team guide you through the entire process.  We are equipped to help you find the right home at the right price in the Denver metro area, and if you'd like to find a house in Stapleton, a Lowry home, a home in Cherry Creek, or a house in many other communities along the Colorado front range, give us a call!

Marianne Bandy
Avoid Foreclosure in Denver