Spread the word to your sellers and clients: Time is ticking to complete home renovation projects if they want to cash in on a tax deduction that expires at the end of the year. Tax credits are available for home owners who do upgrades that help them save energy and reduce their utility bills such as with more energy-efficient windows and doors, insulation, and heating and cooling equipment.

You can qualify for up to $1,500 in tax credits when filing 2010 income tax returns. Home owner have until Dec. 31 to qualify for the tax credit.

Read the full article: http://styledstagedsold.blogs.realtor.org/2010/11/22/hurry-and-make-those-green-renovations-tax-credit-expiring-soon/

Amid all the media reports on how housing is still “in the tank,” one piece of news seemed to have escaped many of the pundits. Housing affordability could possibly reach an all-time high of near 200 in the second half of this year. That is, a household making the median income would have twice the income necessary to buy a median-priced home in America. To date, NAR’s housing affordability index reached an all-time high of 184 back in early 2009. It was only slightly above 100 during the housing bubble years, meaning that qualifying income barely met the requirements to buy a home even with a 20 percent down payment (if not using teaser-rate, funny/toxic mortgages). Historically over the past 40 years, the average affordability index was 118.

The principal reason for the expected record high housing affordability index reading is the rock bottom mortgage rates of 4.4 percent on a 30-year fixed rate. Add to that modest gains in the average wage rate, which rose 3 percent in 2009 and is up 1.2 percent this year-to-date in spite of the high unemployment rate. Consider now versus then when home prices were at their “bubble” peak in 2006.

Read the full article: http://www.realtor.org/research/reinsights/economistcommentary

Figures released today by the National Association of Realtors are a good indicator that the market continues to improve – though at very modest levels.  I’ve been saying for months that the market is, in this post recessionary period, improving though will continue to do so with minor bumps in the road along the way.
Last month’s lower than expected sales figures were just that, a bump in the road.  We saw the slip partly due to seasonality and partly due to the expiration of the tax credit.
Now, one month later, we’re seeing numbers rise.  According to the National Association of Realtors’ Pending Home Sales Index, pending home sales rose 5.2 percent to 79.4 based on contracts signed in July from a downwardly revised 75.5 in June. 
According to Lawrence Yun, NAR chief economist, “Home sales will remain soft in the months ahead, but improved affordability conditions should help with a recovery,” he said.  “But the recovery looks to be a long process.  Home buyers over the past year got a great deal and buyers for the balance of this year have an edge over sellers.  For those who bought at or near the peak several years ago, particularly in markets experiencing big bubbles, it may take over a decade to fully recover lost equity.” 
Now of course this is a national perspective and we all know that real estate is local.  Locally we’re seeing some pockets of strength.  Some of the most sought after neighborhoods continue to see strong sales while those that may be challenged due to proximity to jobs and commerce, are seeing bigger lags. 
Overall what we’re seeing most is buyers want to take advantage of the low interest rates and realize that thanks to those rates, they have particularly higher purchasing power right now.  From a move-up buyer perspective, we’re seeing a lot of sellers consider selling right now.  Yes, they realize they may take a hit from the flurry days of the early part of the decade but when they compare it to what they can purchase on the move-up side and what their monthly payment will be, they truly see a benefit.  These indicators are really helping to drive our market right now.
The bottom line is, we are on a good recovery path.  And an interesting report this week underscores that.  Bankrate revealed numbers that provided a good look at consumer confidence. An overwhelming 90 percent of homeowners say they don’t regret buying their current home.  That is even in the face of stagnant – or sliding – home prices home owners have suffered.  It is comforting to see this number because regardless of where market conditions currently are, consumers continue to understand that real estate is a good, long term investment. 
Now, let’s hear what our local offices have to say:

• Boulder—New listings are up almost 12%, but sales activity is down almost 10%.  It looks as though there is an excess of properties and not as many buyers for them.  This is very noticeable in the amount of showings.  Showings are down over 20%.  This means that the market is saturated with homes for sale but the demand for these properties has dropped off in this period.  The showings reflect the sales activity in this case.
• Colorado Springs—Sales have been increasing for the past few weeks as buyers are taking advantage of low interest rates (under 5%).  Listings have also been increasing as sellers know that if they can get their homes sold they can become buyers & take advantage of low rates & move up to a larger home.  Overall, showings are down about 35% from last week.
• Conifer—There were three new listings in the Conifer office for the month of August. We also had three listings go under contract in August with five buyers put under contract.  A total of 117 showings and 5 previews for the month reflects a 60% improvement from the prior month.  Our showing activity is primarily in the mid-$200,000 to $400,000 range.
• Denver Central—Inventory continues to increase in the Denver Metro area and is just below 2008 levels but has increased 20% over 2009.  Inventory is still well below 2007 levels when it was at it’s peak.  We continue to see home appreciation in the Denver metro area but that could be attributable to the recent tax credit.  We could see appreciation tail off in the coming months with inventory increases.  Under contracts seem to have stabilized after the drop that we had after the tax credit deadline. The market is very neighborhood specific so it is important to be working with a professional that can educate & give you the proper advice to make the correct real estate decisions.  Over 50% of the home sales in the Denver metro area continue to be under $250,000.  If you’re looking to sell a home that is priced under $300,000, this is a great time.  We’re seeing improvement in the higher-end market & sales have increased.  This is definitely a great market to move up to a higher priced home.
• Denver West—Denver West has enjoyed closings in the $600,000, the $700,000 and even the $800,000 sales point. Many buyers are motivated & are taking advantage of these low interest rates. We’re experiencing many sellers buying up, yet renting out their current home since they can’t achieve the price they want. We’re also seeing a high desire to rent from former homeowners who lost their homes through short sales & foreclosures.
• Devonshire—Here we are at the end of summer & it seems that many people are out enjoying the last days before all of the fall activities get into full gear.  We can feel the angst in our buyers as they are struggling with proceeding to find that new home and take advantage of the wonderful low interest rates.  Inventory in some price points is slim. It seems that many buyers have decided to hold on until they feel that the economy is a little more stable.  A bright light seems to be in the upper price points where we have had more activity and actual closings than in the last few months.  We had the highest sale in the metro office in 2010, in the Devonshire office & we’re proud of Kelly Westergren for representing the buyer on that transaction.  Fall is historically a good time of year for us and we’re looking forward with excitement to see all the successes that fall will bring.
• Evergreen—We had a total of 19 new listings in August, with 9 listings under contract and 7 buyers put under contract.  Both are very similar to our July totals.  There was a total of 320 showings and 24 previews in the month which is a 30% improvement over July activity but still 7% below levels from Aug 2009.  Selling activity was predominately in the mid-$300,000 to $500,000 range.
• Longmont—Showings are holding very steady.  Homes being shown are still in a wide range of price points.  Move up buyers are in our market looking.  Financing is still an issue for buyers. Self employed buyers are having difficulties securing loans.  New homes in all price ranges are coming on the market & sellers are realizing that keeping their homes on the market longer will be necessary.
• North Metro—Fall is in the air, the kids are back in school and now is the perfect time to purchase a home.  We are seeing increased activity at Open Houses and in the number of floor calls coming to our office.  The average sales price has increased to $275,000 for homes sold.  We have 73 new homes listed this month as compared to 70 for last month and we’ve helped buyers and sellers close on 74 properties.
• Parker—Our listings and showings are down from the past week as families return from vacations.  Our market is still strong with buyers as the low interest rates (under 5%) make it likely that this trend will continue for a while.
• Southwest Metro—Showings have been steady but they’re still significantly down from June of this year as well as this time last year.  The buyer pool is waiting and we do not understand what they are waiting for as the interest rates are so great. We’re seeing good activity in homes over $300,000 & less activity in those below that amount. The first time buyers are not moving but are waiting.  Sellers are still ready to list their properties but are not realistic as to the value.  Everyone seems to be in a holding pattern waiting to see what is going to happen.  We’re sending out newsletters showing that this is a great time to finance a home.  Open houses have been good & a couple of agents did have several good buyer leads in the past two weeks.

Sales of all single-family detached homes in Northern Colorado were up throughout the region for the first half of 2010, according to data compiled by Loveland-based Information and Real Estate Services.

Fort Collins reported the highest increase for the period, with 243 more homes sold in 2010 than in 2009. A total of 1,258 homes were sold through June compared to 1,015 for the same period in 2009. A total of 310 homes were sold in June, up 33 over May.

Greeley-Evans had the next highest number of homes sold through June at 739, although that was up only 20 over the same six months in 2009. Greeley-Evans reported 146 homes sold in June, down by 10 from May.

Loveland-Berthoud reported 728 homes sold through June, up by 149 over the same period in 2009. A total of 169 homes were sold in June, up 11 over May.

Estes Park reported 92 homes sold through June, up by 18 over 2009. Eighteen homes were sold in Estes Park in June, up by six over May.

Source: http://www.ncbr.com/article.asp?id=52788

Although the Extended Home Buyer Tax Credit expired on April 30, 2010, home buyers who signed a written, binding contract by that date and close before July 1, 2010 may still be able to claim the credit. Below you will find general information about who can claim the credit and how. 

If you have specific questions or need additional information, please contact a tax professional or the Internal Revenue Service at 800-829-1040.

Latest News

(June 30, 2010) Congress has passed an extension of the Homebuyer Tax Credit closing deadline, the Homebuyer Assistance and Improvement Act (H.R. 5623). The extension applies only to transactions that have ratified contracts in place as of April 30, 2010 that have not yet closed. The legislation is designed to create a seamless extension. The new closing deadline for eligible transactions is September 30, 2010. There will be no gap between June 30 and the date the President signs the bill into law. NAR worked closely with Congressional leaders on both sides of the aisle to enact this important legislation. Extending the Tax Credit Closing deadline will help provide additional stability to real estate markets across the nation.

Source: http://www.realtor.org/home_buyers_and_sellers/2009_first_time_home_buyer_tax_credit

Home prices in the Fort Collins-Loveland metropolitan statistical area increased in April by 2.45 percent, including distressed sales, compared to April 2009. In March, prices increased 1.83 percent year-over-year. Without taking into account distressed sales, Fort Collins-Loveland had a 2.52 percent increase.

In Greeley, prices were up 4.86 percent compared to April 2009, slightly less than March’s year-over-year increase of 5.66 percent. Without accounting for distressed sales, Greeley’s home price index was up about 4 percent in April.

Nationally, home prices increased in April by 2.6 percent, marking the second consecutive month with a year-over-year increase. For March, prices were up 2.3 percent. Since the price index peaked in April 2006, prices have declined 29.5 percent including distressed properties and 21.1 percent without them.

“The monthly increase in the HPI shows the lingering effects of the homebuyer tax credit,” said Mark Fleming, chief economist for CoreLogic, in a prepared statement. “We expect that we will see home prices remain strong through early summer, but in the second half of the year we expect price growth to soften and possibly decline moderately.”

Source: http://www.ncbr.com/article.asp?id=52167

From Northern Colorado Business Report

Use our list of common house-buying mistakes to avoid costly regrets.  

1.  Doing it alone. Buying a house is a complex transaction. Even if you don’t use an agent, you’ll need a complete, dependable team: lender, lawyer, inspector, insurer, as well as referrals and advice from friends and family. Enlist the help of these individuals early in the buying process.  

2.  Buying at first sight. You may be in love with the place, but does it fit your family’s needs and budget? Make a list of your needs and wants and make sure the house fits your requirements. Check out the neighborhood and the community before you buy by visiting at different times of the day and week to learn about noise and traffic patterns. Even if you don’t have kids, check out the local schools to make sure your resale value will be good.  

3.  Not getting pre-qualified and pre-approved. Being pre-qualified gives you a general idea of how much you can afford to borrow. Being pre-approved means a lender has verified your information and credit rating and agreed to provide you with a specific amount of money. You are in a better position to go house hunting knowing exactly how much you can afford and that you have financing.  

4.  Overbuying. You may qualify to borrow more, but can you afford to? Analyze your monthly costs: debt, food, transportation, entertainment, and savings. As a general rule, your total monthly debts, including your mortgage, should not exceed 36 percent of your income before taxes. Be sure to budget enough to cover closing costs (often two to five percent of the home’s purchase price), plus moving, redecorating and maintenance. Allow for increases in ongoing expenses such as utilities and taxes.

 5.  Misplacing your trust. No matter how much you like the agent, sellers, inspector, or the guy down the block who vouches for them, remember this is a business transaction. Your decision is binding. Do your own research and know your support team’s roles and responsibilities.  

6.  Relying on oral agreements. Get it right and get it in writing. Written agreements almost always trump oral ones when it comes to contracts. If the offer says the lawnmower is negotiable, but the agent says it’s included, get it in writing.  

7.  Skipping the fine print. You need to understand what you’re signing before you pick up a pen. Ask for documents in advance, make time to read them and ask questions. Get copies of your mortgage papers a few days ahead of closing.

 8.  Forgetting or betting on resale. Avoid buying a home that costs 50 percent more than neighboring homes and think before buying the most expensive home on the block. Your neighbors’ lower home values will weaken yours. Remember, markets change. If you buy intending to flip your investment and the market falls and you have to sell, your selling price may not be enough to even cover your mortgage.  

9.  Making an unconditional offer. Protect yourself with at least two of these contingencies in your offer:

• Mortgage financing — You’re pre-approved, but is the house? Before a bank will lend you money, it will want a formal appraisal of the property to confirm that there is sufficient equity in it to warrant the loan. If the house appraises lower than the sales price, the loan may be declined.
• Inspection — never buy an existing or new home without a thorough home inspection. Walk through the home with the inspector to learn more about the house and any concerns he or she may have.
• Insurance — confirm you can get adequate coverage. In some areas, it’s difficult to get hazard insurance.  

10.  Having buyer’s remorse. No place is perfect. There will always be surprises. Don’t let a few initial blips spoil the whole ride. And don’t miss a great house waiting for the perfect one!

Want to search for your next home without ever getting out of your pajamas? There is an Internet site for that. Do you want to know how much the mortgage payment will be for certain types and sizes of loans? There’s a site for that. Do you want to know the relative values for homes in your neighborhood? Yes, there’s a site for that, too. And once you move into that new home, there are sites to help you find local schools, restaurants and even your next dentist.

Here’s a list of some favorite websites for people interested in buying or selling a home, remodeling their existing residence, or just looking for local information on their new neighborhood. There are countless websites, of course, and we don’t claim to have the ultimate list – these are just ones that we have found can be very useful for homeowners and those looking to become owners.

• Colorado Homes.com Coldwell Banker’s consumer web site offers a myriad of tools for home buyers and sellers, including advanced search engines, tips on buying and selling, relocation information, and even community facts, figures and links.

• Realtor.com In that same vein, Realtor.com is also a good consumer web site, especially for those thinking about relocating to other regions or want advice on buying or selling, as well as hiring an agent. There are articles on the market, consumer tips, and even suggestions on gardening and remodeling.

• Coldwell Banker Colorado Table Talk If you’re looking to get your real estate feet wet, start with blogs such as this one from Coldwell Banker Residential Brokerage. They give great tips, are easy to read and are updated frequently. This site also has 50 other real estate blogs: http://bankling.com/2009/top-50-real-estate-blogs/

• Fort Collins Coloradoan Our local newspaper’s web site offers the latest news, sports and business, but also good restaurant and movie reviews, job search engines, and valuable community information and links for all homeowners, including open house ads and realtor guides.

• Bankrate.com Now that you’ve decided where you’re going to buy, this site will help you figure out how much you can afford. This is one very popular financial web site because it offers mortgage rate comparisons, links to lenders, and literally dozens of different types of calculators to figure it all out.

• Local Yahoo So you’re ready to move into your new home. Now what? Go to this site to find a plethora of useful links and information on everything from local restaurants and coffee shops to city offices and police departments to public utilities to get the water and gas turned on.

• Yelp.com Another great site for newcomers to an area is Yelp, which features customer reviews and ratings on every imaginable local business. Sure there’s the usual restaurant ratings, but you’ll come here to find favorite dentists, veterinarians, gardeners and yes, even real estate agents.

• Service Magic.com For those homeowners planning to remodel or just looking for a contractor to do some routine work, this web site can be quite useful. Service Magic prescreens a wide variety of contractors and also incorporates customer ratings in order to provide a list of recommended businesses.

• Home Tips.com Run by Don Vandervort, a host on HGTV and well-known author of do-it-yourself books, this site – as you might guess – specializes in articles on how to maintain and remodel your home. One of the favorite search engines helps the weekend warrior figure out how to do a wide variety of repairs and save money.