Real Estate Information

We need your help!  We are short on dresses at this point.  The sale is March 19th from 10 - 4 at the Piney Creek Club House.  We collect dresses, shoes etc. throughout the year and host a one day sale which is open to girls throughout the Denver Metro area.  Last year we sold over 300 dresses.  The dresses sell for $10 - $20.  The proceeds are donated to Smoky Hill PTCO after prom.  (we use Smoky's non profit status)  The sale is a wonderful community outreach and in past years we have had girls from Elizabeth, Fort Collins, Commerce City, Boulder and a lot from East Denver.  Additionally, on the day of the sale we book hair stylists, photographer and a radio station, have hourly door prizes etc. to add to the fun.  We have girls from Smoky National Honors Society and DECA assist in the sale.  Our motto is "keep those dresses dancing". 

Also, experience has taught us to appeal to the mother's in getting girls to donate dresses.  Mother's are more willing to give up dresses they know will never be worn again.  So if you can get the word out to friends and/or business associates that would be great!  We accept any and all gently used dresses ranging from formals long or short, brides maid etc. 

Dresses can be dropped off at Biondi or at my home in the Knolls.  Please feel free to call me at the store 303 680-8725 or home 303 690-6581.

Michelle

Denver Zoo (free days)

The Denver Zoo free days are by far the most popular Denver free days for families with kids, and are typically held during the fall and winter.

Kids love to walk through the zoo and watch the animals, and there are also fun activities for the kids at various locations throughout the zoo, such as the drums at Congo Basin. 

Weather:
Since much of the zoo is outdoors, be sure to dress warmly. There are plenty of chances to step inside to warm up also, such as the indoor rainforest at Tropical Discovery.

Location: The Zoo is located in City Park on 23rd Avenue in Denver. 

Requirements: None. Just park in the free zoo parking garage and walk in.

2011 Free Days:

• Saturday, January 8
• Monday, January 24
• Sunday, February 6
• Saturday February 19
• Wednesday, October 12
• Thursday, October 20
• Sunday, November 6
• Saturday, November 12

Here’s a great deal for anyone who has an FHA loan on an investment property.

FHA will allow you to refinance the loan into another FHA loan, even though it’s an investment property. And you do not need an appraisal! The only requirement is that you reduce your total monthly mortgage payment by 5%. Considering how low interest rates are now, that should not be too hard to do.

Not many people know about these loans, but we sure do.

November, 2010 combined MLS Residential Statistics for Denver Metro Area. The following changes compared to November of 2009.

• Decrease in the Number of Closed Sales to 2,142 (down 22.1%)
• Average Days on Market increased to 108 days
• Number of Active Listings increased 12.2% to 15,232
• Absorption Rate increased to 7.7 months (up 47.2%)
• Average Sold Price increased (up 6 % from $265,498 to $281,466)

For more details on the combined MLS Residential Statistics call or email me.

Hi to all!

Wow!  “Yes, rates have bumped up a bit”.  Will they go back down?  Who knows.  But the scuttlebutt is that we may see rates settle back down a bit in the near future.  Of course, we’re still talking about rates right now at 4.25%!!!!  We really get spoiled quickly, don’t we!

There are a many reasons to purchase a home before the end of the year.  Looking for that extra special deal right before the holidays.  Here are a few good reasons to buy yet this year:

- Tax savings for this year

Mortgage interest, property taxes, points…  A number of things can be used as deductions

- Sellers still selling are generally more motivated

This may lead to more leverage on the part of a buyer.

- Less competition from other buyers

Many people take the holidays off.  It could be in a buyer’s best interest to keep looking.

- Moving companies may be offering special deals

Most moving occurs in the spring and summer months.  I would never shy away from haggling a bit on moving costs in December.

- And, of course, rates are still unbelievably low

We don’t know exactly how long they’ll stay down, but certainly not forever. 

Now is a great time!

CALL US!

November 2010

Market Update

The housing market continues its gradual recovery without the aid of the tax credit. Sales are slower but growing. Although it will likely be uneven at times, slow growth is believed to be the trend moving forward. Interest rates hit a new historic low again, a major factor in helping keep mortgage payments incredibly affordable.

Extended periods of record low interest rates and further plans from the Federal Reserve Board to expedite recovery have some concerned about future inflation. One such investment guru, John Paulson, touted the benefits of owning real estate as a hedge against inflation on Forbes.com. “Your debt and interest payments get locked in at record lows, while the price of your home will rise … If you don’t own a home buy one … if you  own one home, buy another one, and if you own two homes, buy a third and lend your relatives the money to buy a home.”

This march back up continues to provide excellent opportunities: an ample selection of homes, affordable prices, and historically low interest rates. Experts anticipate both the economy and the housing market will continue their paths on the way to a complete recovery.

Home Sales

Home sales continued to rebound in September, increasing 10% compared to the previous month.  This builds on August’s gain of 7.6% that followed a large drop caused by the expiration of the federal tax credit in July. Sales are expected to gradually grow as the market moves toward recovery without government stimulus. The recent foreclosure moratorium has opened up opportunities for short sales. Although it could make the near-term “choppy at times,” industry experts expect the overall trend to continue growing slowly.

Home Price

After four months of prices remaining on par with year-ago levels, September showed a slight decline. Last September distressed properties were 29% of all home sales; this September that number rose to 35%. The larger proportion of distressed sales, which are typically discounted, helps to explain the decline. While these discounted sales provide opportunities for buyers, sellers look forward to the general trending upward of home price.

Inventory

There are fewer homes on the market again in September, representing 10.7 months of inventory. While still at a relatively high level, months of inventory shrank by nearly a month in September from August’s 11.6 and nearly two months since the 12.5-month supply in July. This continues to represent an excellent opportunity for buyers and investors who have not yet taken advantage of the abundant opportunities of the market including record low rates, an ample but shrinking selection of homes, and highly affordable prices.

Affordability

Housing remains at near-record affordability levels, and prospective home buyers stand to benefit from the lowest mortgage rates in decades, as well as advantageous home prices. Housing is approximately 60% more affordable now than during the height of the market.

Source: National Association of Realtors

Interest Rates

Mortgage rates once again set new record lows in early October to 4.19% and remained below 4.3% throughout the month. These historically low rates contributed to real savings for buyers. Furthermore, the longer the buyer owns the home, the greater the savings they will realize. As economic activity gains momentum, rates will rise to keep inflation at an acceptable level.

Prime Time to Buy

7 Reasons Why Now Is a Great Time to Buy a Home

Recent history has reframed some of what had long been taken for granted about buying a home. Namely, we’ve learned that even though buying a home remains one of the best and safest investments available, a home should not function as an ATM or a short-term speculation strategy. So, where does that leave us? A lot smarter, able to recognize an opportunity when we see one, and aware of the facts that point to now as the prime time to buy a home.

1. Home affordability is at an all-time high. The median mortgage payment on the median-priced home, as a percentage of the median household income, is lower than it’s been in a generation.
2. Mortgage rates are at rock bottom. It’s hard to imagine interest rates going much lower, and when they start to inch back upward, monthly payments and total loan costs will spike upward.
3. Home prices are back on the rise. After declining for 30 months, home prices are trending back upward. The time to get in the market is now.
4. Sellers are motivated. This means that buyers have the upper hand.  Sellers are fiercely competing among an excess of housing inventory, which often means buyers have untold choices and negotiating power.
5. Financing is readily available. Banks are back in the game and ready to lend to well-qualified buyers.
6. Owning vs. renting is increasingly favorable. Since 2009, the average principal and interest payment has fallen below the average rental rates, and the gap is now wider than it’s been in the past 22 years.
7. Homeownership is still at the core of the American Dream. Owning a home is critical to financial stability and wealth building. It’s a forced savings account, a place to live, and a fabulous tax deduction.

Here’s a great deal for anyone who has an FHA loan on an investment property. 

FHA will allow you to refinance the loan into another FHA loan, even though it’s an investment property.  And you do not need an appraisal!  The only requirement is that you reduce your total monthly mortgage payment by 5%.  Considering how low interest rates are now, that should not be too hard to do.

Not many people know about these loans

The Worker, Homeownership and Business Assistance Act of 2009 was signed into law November 6, 2009.

If you are in the market for a new home, you may still be able to claim the First-Time Homebuyer Credit. This new law extends and expands the first-time homebuyer credit allowed by previous legislation. Here are key points the IRS wants you to know about the expanded credit and the qualifications you must meet in order to qualify for it.

1. You must buy – or enter into a binding contract to buy a principal residence – on or before April 30, 2010.

2. If you enter into a binding contract by April 30, 2010 you must close on the home on or before June 30, 2010.

3. For qualifying purchases in 2010, you will have the option of claiming the credit on either your 2009 or 2010 return.

4. A long-time resident of the same home can now qualify for a reduced credit. You can qualify for the credit if you’ve lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the new home is purchased and the settlement date is after November 6, 2009.

5. The maximum credit for long-time residents is $6,500. However, married individuals filing separately are limited to $3,250. The maximum credit for first-time homeowners is $8,000 (up to $4,000 for married filing separately).

6. People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after November 6, 2009. The full credit is available to taxpayers with modified adjusted gross incomes up to $125,000, or $225,000 for joint filers.

7. The IRS will issue a revised Form 5405 to claim this credit on 2009 tax returns. The revised form must be used for homes purchased after November 6, 2009 – whether the credit is claimed for 2008 or for 2009 – and for all home purchases that are claimed on 2009 returns.

8. Homebuyers who claim the credit on their 2009 tax return will not be able to file electronically but instead will need to file a paper return. For homes purchased in 2009 there is an option to take the credit on an original or amended 2008 tax return.

9. The new law includes documentation requirements. See revised Form 5405 for details.

10. No credit is available if the purchase price of the home exceeds $800,000.

11. The purchaser must be at least 18 years old on the date of purchase. For a married couple, only one spouse must meet this age requirement.

12. A dependent is not eligible to claim the credit.

IRS encourages all eligible homebuyers to take advantage of the First-Time Homebuyer Credit but at the same time cautions taxpayers to avoid schemes that help ineligible people file false claims for the credit.

Visit IRS.gov/recovery for more details on the First-Time Homebuyer Credit. Forms are available on www.irs.gov or by calling the IRS at 1-800-829-3676.

 As a quick recap, December, 2009 combined MLS Residential statistics show a decrease in the Number of Closed Sales (down 9.9% for the month and down 12.8% for 2009) and a reduction in New Listings (down 16.5%) compared to December of 2008.  On the positive side, the Combined MLS Residential Absorption Rate continues to stay low at 5.8 months (down 10.1%) and the Average Sold Price remains strong (up 16.9% from $240,945 to $281,765) compared to December of 2008. 

Feel free to contact me if you have any questions.