With today’s ever changing real estate & mortgage market many people are asking the question…“Are there still mortgage options available”? The answer is a resounding YES!! Although many of the Sub-Prime and 100% financing programs have been discontinued, well qualified borrowers i.e. adequate credit, income etc. with as little as a 5% down payment on conventional loans and 3% down payment for an FHA loan can still obtain financing under all of the same fixed and adjustable rate mortgage programs that we have grown accustomed to over the years. Plus, with mortgage rates nearing the historic lows that we last saw a few years ago, now may be one of the best opportunities we’ve seen to buy in quite some time. And, based on studies that have been done on the Denver metro market including the recent info released on the Case Shiller Index, which measures the home prices of 20 metropolitan real estate markets in the U.S., Denver is primed to be one of the first “Major” markets to recover, which also bodes well for real estate investors and the future of our market from a value standpoint.
Ben Ghede
Affiliated Financial Group
303-740-4403
Tuesday, May 20, 2008
Sunday, February 10, 2008
Denver's Real Estate Market - Is it a good time to buy?
On the national front, housing forecasters are saying that prices will bottom out this year, either in the third or fourth quarter. The National Association of Realtors has a more positive outlook, predicting that prices on existing homes will stabilize in the second quarter and rise in during the second half of the year. Economic indicators for 2008 show a steady inflation rate combined with a big increase in GDP (2.1% to 2.8%). Retail, industrial & office vacancy rates are set to decrease while mortgage rates and housing prices will remain consistent.
According to NAR economists the two markets most likely to make the quickest comeback are Denver and Austin. Overall, markets that saw the biggest run-up in prices, like Las Vegas, California and Florida will take longer to recover.
On a local level, the positive indicators are there, as well. A closely watched S & P Case-Shiller Home Price indices (which was released in October 2007) showed 5 consecutive positive months of price movement giving Denver the #1 slot in the nation for home appreciation in July and August. According to Maureen Maitland, an analyst and vice president at Standard and Poor's, "It looks like Denver may be one of the first markets in the turnaround mode." She goes on to say that "Denver real estate stumbled earlier than most cities in the country and in recent years didn't go through the double-digit price appreciation by other formerly hot markets on the coasts and in places such as Phoenix and Las Vegas."
Denver's housing market started its downturn in 2001-2002, but dodged the bubble-burst that many other parts of the country experienced. That is not to say that Denver isn't suffering. We are in our worst real estate market in 10 years, relatively speaking. Our home prices have leveled off and in some cases appreciated, but new home sales and the lower-end market have taken the big hits. As a result of the heavy foreclosure activity in cities around Denver, the subprime problems and adjustable rate mortgages coming due, there has been a surge in inventory and there are good deals to be had. Having said that, spring and summer are historically our strongest months for real estate activity, which means more competition from buyers and a potential increase in property values.
So, is NOW the time to buy? I say "Absolutely!" Property prices are low, money is inexpensive (lower interest rates and an increase in the conforming loan limits should help to spur activity) and spring is just around the corner, which means a potential surge in our market. Some people may want to wait things out due to the overwhelming doom and gloom on the news, but I say if you wait you may end up paying more.
According to NAR economists the two markets most likely to make the quickest comeback are Denver and Austin. Overall, markets that saw the biggest run-up in prices, like Las Vegas, California and Florida will take longer to recover.
On a local level, the positive indicators are there, as well. A closely watched S & P Case-Shiller Home Price indices (which was released in October 2007) showed 5 consecutive positive months of price movement giving Denver the #1 slot in the nation for home appreciation in July and August. According to Maureen Maitland, an analyst and vice president at Standard and Poor's, "It looks like Denver may be one of the first markets in the turnaround mode." She goes on to say that "Denver real estate stumbled earlier than most cities in the country and in recent years didn't go through the double-digit price appreciation by other formerly hot markets on the coasts and in places such as Phoenix and Las Vegas."
Denver's housing market started its downturn in 2001-2002, but dodged the bubble-burst that many other parts of the country experienced. That is not to say that Denver isn't suffering. We are in our worst real estate market in 10 years, relatively speaking. Our home prices have leveled off and in some cases appreciated, but new home sales and the lower-end market have taken the big hits. As a result of the heavy foreclosure activity in cities around Denver, the subprime problems and adjustable rate mortgages coming due, there has been a surge in inventory and there are good deals to be had. Having said that, spring and summer are historically our strongest months for real estate activity, which means more competition from buyers and a potential increase in property values.
So, is NOW the time to buy? I say "Absolutely!" Property prices are low, money is inexpensive (lower interest rates and an increase in the conforming loan limits should help to spur activity) and spring is just around the corner, which means a potential surge in our market. Some people may want to wait things out due to the overwhelming doom and gloom on the news, but I say if you wait you may end up paying more.
Friday, January 18, 2008
Denver Development - Lowry's Buckley Annex
In 2005, the U.S. Air Force announced that they would be closing their Defense Financing & Accounting building on what is left of the former Lowry Air Force base turned residential community of Lowry. The closure will bring about the sale and re-development of a 72-acre parcel known as the Buckley Annex.
As part of this process the Air Force agreed to use the Lowry Development Authority (responsible for the planning and development of the Lowry Air Force Base) to do the planning while obtaining community input. Task Force members, along with the LRA, designers and architects have developed a plan. What has nearby residents upset is the apparent lack of community consensus on the proposed plan. Some of the major issues are as follows:
1) 800 units plus commercial and retail space is very high density and inconsistent with its surrounding communities. 800 units breaks down to 11.4 units per acre. In comparison, NW Lowry is 4.5 units, Lowry West is 7.5 units and Park Heights is 2.8 units per acre.
2) The plan indicates that there is a 65' height limit, but that variances can be applied for in certain areas and there are no height limits in those areas. This is inconsistent with Lowry's height restrictions and the surrounding neighborhoods.
3) The LRA has not set zoning restrictions and guidelines, leaving parameters flexible for potential developers. Public opponents are concerned that with increased density comes increased congestion, traffic and other issues and that the LRA has the power to set limits and are not.
At this time, despite community concern, the Community Advisory Committee has voted to advance the current Buckley Annex plan to the Lowry Board of Directors.
February 11, 2008 - UPDATE
On February 8th, Mayor Hickenlooper met with Lowry United Neighborhoods(LUN) representatives to discuss the Buckley Annex Development. During this meeting, the LUN was promised that the General Development Plan will have to be submitted by the developer, which means the developer will have to approach the community for approval before going to the City for any change in zoning. The Mayor also expressed a commitment to keep the community informed of the process while stating that a "...consensus must be built for those most immediately affected by the decisions. He went on to assure the LUN that the current GDP is far from being completed and that future changes would be made.
As part of this process the Air Force agreed to use the Lowry Development Authority (responsible for the planning and development of the Lowry Air Force Base) to do the planning while obtaining community input. Task Force members, along with the LRA, designers and architects have developed a plan. What has nearby residents upset is the apparent lack of community consensus on the proposed plan. Some of the major issues are as follows:
1) 800 units plus commercial and retail space is very high density and inconsistent with its surrounding communities. 800 units breaks down to 11.4 units per acre. In comparison, NW Lowry is 4.5 units, Lowry West is 7.5 units and Park Heights is 2.8 units per acre.
2) The plan indicates that there is a 65' height limit, but that variances can be applied for in certain areas and there are no height limits in those areas. This is inconsistent with Lowry's height restrictions and the surrounding neighborhoods.
3) The LRA has not set zoning restrictions and guidelines, leaving parameters flexible for potential developers. Public opponents are concerned that with increased density comes increased congestion, traffic and other issues and that the LRA has the power to set limits and are not.
At this time, despite community concern, the Community Advisory Committee has voted to advance the current Buckley Annex plan to the Lowry Board of Directors.
February 11, 2008 - UPDATE
On February 8th, Mayor Hickenlooper met with Lowry United Neighborhoods(LUN) representatives to discuss the Buckley Annex Development. During this meeting, the LUN was promised that the General Development Plan will have to be submitted by the developer, which means the developer will have to approach the community for approval before going to the City for any change in zoning. The Mayor also expressed a commitment to keep the community informed of the process while stating that a "...consensus must be built for those most immediately affected by the decisions. He went on to assure the LUN that the current GDP is far from being completed and that future changes would be made.
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