Lower End Homes Show HUGE Gains

Low-priced neighborhoods show biggest percentage price gains - In the third quarter, 80223 was the top-performing ZIP code in metro Denver with a 37.6% gain, compared to the third quarter of 2009. This ZIP code includes part of Athmar Park and the historic Baker neighborhoods. Adams was the only county to show overall appreciation year-over-year in the third quarter. The overall median price in Adams County rose 5.3% in the third quarter from a year earlier to $160,000. That was the lowest median price of all the counties.

City	ZIP	Median Price	YOY % Increase
Denver	80223	$150,000	37.6
Denver	80246	$227,000	35.3
Denver	80204	$149,900	39.3
Denver	80237	$215,000	26.5
Denver	80239	$117,250	22.4

http://insiderealestatenews.com/2009/11/low-priced-neighborhoods-show-biggest-percentage-price-gains/

First Time Home Buyer Tax Credit

Breaking news this morning suggests Congress is going to be extending the first time home buyer tax credit and will be expanding the credit to home buyers who have owned their primary residence for at least 5 years.

The first time buyer tax credit will still be up to $8,000.00 and for repeat buyers the credit will be up to $6,500.00. This credit should open the floodgates to sellers who may have been sitting on the sideline waiting to sell as they may be able to offset some of the market losses they have taken over the past three years.

Click HERE for the full article.

Please call if you have further questions about this tax credit and how you might be able to take advantage of it.

Ben Grisinger
5280 Homes, Inc
720-936-4449 (direct)
720-457-3890 (office)
ben@my5280homes.com
www.my5280homes.com

First time home buyer tax credit

Check out the latest news regarding the first time homebuyer tax credit.

For those of you who were on the fence about buying, now would be a great time to jump in the market. We're in the off season and sellers are more willing to deal right now.

Call Ben with questions.

Ben Grisinger
5280 Homes, Inc
Managing Broker / Owner
720-936-4449 (direct)
720-457-3890 (office)
ben@my5280homes.com
www.my5280homes.com

Denver Market Statistics

Denver's market for the most affordable homes, has seen a great year. On average, these less expensive homes have seen almost a 14% increase in overall value since March. The total number of home sales has declined slightly, due largely in part to a rapidly declining inventory of these properties. There are currently 2.5 months of available homes in the under 210k price point available to be purchased. This is a hot seller's market and many sellers are actually seeing their homes sell for a premium to the asking price.

Visit my Denver Market Statistics Page for more information.

University Hills September Sales Data

Local MLS activity for University Hills as of October 8, 2009:

There are currently 31 homes actively listed on the MLS. The average asking price is $249,752.00. The median asking price is $225,000.00.

There are currently 8 homes under contract.

MLS shows 9 home sales in the neighborhood during the month of September. The average sales price was $250,978.00. The median sales price was $195,000.00. The September average sales price is skewed because 3191 S Evelyn Way, a new build home, sold for $695,000.00. Adjusted average sales prices are $195,475 and the median price remains the same. This was up from 5 home sales in the month of August with an average sales price of $186,050.00 and median sale price of $180,000.00.

For questions or to get an estimated value for your property, please give me a call at 720-936-4449.

Ben Grisinger
Managing Broker / Owner
5280 Homes, Inc
720-936-4449 (direct)
720-457-3890 (office)
ben@my5280homes.com
www.my5280homes.com

Data was retrieved from Metrolist and is deemed reliable but cannot be guaranteed.

$8,000 Tax Credit Extension

FROM REALTY TIMES: The Congressional Ways and Means committee could act as soon as next week on this bill. This bill would extend the first time home buyers tax credit for one year to Armed Services members and would eliminate the requirement for Armed Services members to repay the credit if they should sell their home before three years if they are required to transfer stations. As a former Airman in the USAF, I have mixed feelings about this. I think this sets a dangerous precedence where an argument could be made that ANY person who transfers jobs would be allowed to sell their house before the three year requirement and not have to pay back the credit. I also think that adding an additional year to the credit will come at an extraordinary cost to tax payers (the program is already 3 times larger than initially anticipated) and could result in a continuing expectation the credit will always be there.

http://realtytimes.com/rtpages/20090921_washingtonreport.htm

First time buyer tax credit

Fight looming on tax break to buy houses - Some people are asking whether the housing market can function without the $8,000 tax credit. This year, as many as 40% of all home buyers will qualify for the credit. It is on track to cost the government $15 billion - more than twice the amount originally projected. The real estate industry, as well as some economists, believe that the money is well spent - encouraging recovery in the housing market. According to analysts, the credit is directly responsible for several hundred thousand home sales. The National Association of Realtors wants Congress to extend the credit at least through next summer, to expand the program to $15,000 and to allow all buyers, not just those who have been out of the market for at least three years, to qualify. The price tag on that plan: $50 billion to $100 billion. Mortgage applications increased nearly 10% for the week ending Sept. 3 from late August, the largest gain since early April and the latest of many signs of life in real estate. The upturn can be attributed to several factors: the return of confidence, very low mortgage rates, and prices in some markets that are at decade-low levels. The looming expiration of the tax credit seems to be playing a role too, particularly in relatively low-cost markets like Phoenix, Las Vegas and Dallas.
http://www.msnbc.msn.com/id/32872167/ns/business-the_new_york_times/

Mortgage Rates are Still Low

Low Mortgage Rates Helping to Stabilize Housing Market - The 30-year fixed-rate mortgage averaged 5.14% with an average 0.7 point for the week ending August 27, 2009, according to Freddie Mac's Primary Mortgage Market Survey. Last week, it averaged 5.12%, and a year ago it was 6.40%. "Long-term mortgage rates were barely changed this week, remaining historically low, which is helping to sustain a high level of affordability in the home-purchase market," said Frank Nothaft, Freddie Mac vice president and chief economist. "Low rates contributed to existing home sales rising for the fourth consecutive month to an annual pace of 5.24 million in July, the most since August 2007, according to the National Association of Realtors®."

http://realtytimes.com/rtpages/20090828_rates.htm

Not so great news for lots of Denver homeowners

Almost 38% of homes are "underwater" - Some 37.8% of mortgaged homes in the Denver-Aurora-Broomfield area had negative equity in the second quarter of this year, according to a study released yesterday by First American CoreLogic Inc. The national rate was 32.2%, down from 32.5% the first quarter reflecting a flattening of monthly home price changes. “Negative equity continues to be the dominant driver of the mortgage market … Given that negative equity did not increase this quarter, and home-price declines are moderating or flattening, it may indicate we are at the peak of the negative-equity cycle,” Mark Fleming, First American’s chief economist, said in a statement.
www.bizjournals.com

New listings

It's been a busy last couple of weeks. I have two new listings that have hit the market recently.

Listing # 1 is a 4 bed / 2 bath home located in Lynwood. The home is just a couple blocks from the Cherry Creek Trail. It backs to open space. The seller is updating the kitchen with new granite counter-tops. The wood floors have been refinished. It could use a coat of paint, but is priced $25,000 below recent sales in the area. Listed at $250,000.00. MLS # 796773. The address is 7012 E Arkansas Ave, Denver, CO 80224

Listing # 2 is a 3 bed / 1 bath home located in the highly desired Harvey Park neighborhood. This home has been completely renovated from top to bottom. New roof, new plumbing, new floors, new appliances, etc... This home features over 1,200 finished square feet and fantastic open floor-plans. The kitchen features all new appliances, tile floors, and granite counter-tops. Priced at $164,900.00, the sellers are definitely motivated to move this one. MLS # 798271

Mortgage Demand News

Mortgage demand rises for second week, an article from MSNBC.com, reports that U.S. mortgage applications rose for a second straight week, driven by a jump in demand for refinancing as interest rates tumbled. The Mortgage Bankers Association's seasonally adjusted index of mortgage applications (includes both purchase and refinance) increased 4.3% to 514.4 for the week ended July 10. Refinances accounted for 54.9% of the applications - up from 48.4% the previous week.
http://www.msnbc.msn.com/id/31920135/ns/business-real_estate/

Let's go blogging

Thanks for tuning in to my new blog. I will be updating the blog on weekly basis with happenings in the local market.

For a little bit of information about me: I'm a third generation REALTOR in the Denver metro area. I recently opened up my own brokerage firm, 5280 Homes. I have enjoyed great success since opening my doors in May and look forward to many years of helping investors and first time home buyers alike buy and sell properties.