Real Estate Information

Although the Federal Tax Credit has expired, there are other incentives in the real estate market.  First and foremost, mortgage rates are at the lowest point since at least 1971, falling to 4.69 percent from 4.75 percent, giving consumers an incentive to lock in low rates on home purchases.  It’s the best news the market has seen since the expiration of the federal tax credits aimed at spurring homebuying activity.  The high-end market, which had been largely unaffected by the expiration of the tax credit, is seeing a surge in sales as a result of the low interest rates.  A year ago, the rate for a jumbo loan (more than $417,000) ranged from 6.25 to 6.75 percent.  Today, it’s about 5.75 percent for a 30-year fixed rate.

There are some additional excellent opportunities for both buyers and sellers.  Although the number of properties closed during May increased 4.2 percent from the previous month and a 20.3 percent rise from May of last year, the median price of single-family homes closed in May was $230,000 – flat compared with the previous month but up 4.5 percent from the same period a year ago.  There were 22,016 homes on the market last month, up 6.2 percent from the same month last year and up 2.1 percent from April.  In the lower price range, the absorption rate is 5.1 months, making this price range almost a seller-s market.

A recent report showed that metro Denver home prices are still below their 2006 peak by about 7.5 percent, and below their mid-2008 pre-recession level by 5.8 percent.  Metro prices now are at levels similar to those of early 2004.

So what does this all mean for buyers and sellers?  First, with the demise of the tax credit, there may be fewer buyers competing for the available inventory, giving current buyers a better chance to secure their dream home.  The historic low interest rates are certain to rise later in the year, creating a rush of buyers who don’t want to miss the opportunity completely.

For sellers, there has been a generally consistent trend towards increased sold properties year over year, indicating a possible rebound in appreciation.  Metro Denver continues to attract businesses with the potential to support growth in the long term. The fact that businesses have moved to the region even during recession itself speaks to the region’s competitive advantages. While the recovery may prove underwhelming in 2010, the rebuilding, restructuring, and repair that will happen throughout the year will set the stage for more stable growth in the long term.

Now may be the best time to jump in as a buyer or to place your home on the market, and the Arnie Stein team will make your buying or selling experience the best you have ever experienced.  We have once again been named to the Denver Board of Realtors Round-table of Excellence, and for 2009 we have once more placed in the top level for team volume and team sides.  In addition, Fuller Sotheby’s International Realty, DTC was honored for top office volume for an office of 31 to 50 agents.  Give us a call today – you will receive unparalleled service and experience from the Arnie Stein Team!

…is it still a good time to buy?  First time buyers drove a March surge in Denver-area home sales to take advantage of the federal tax credit, with 3,602 homes sold last month, up 47.9 percent in February and a 12.4 percent increase sold during March of last year.  New home sales nationally improved at the fastest single-month rate in 47 years, as buyers snatched up properties ahead of the expiring tax credits.  Even though the incentives end April 30th, the most popular view seems to be that housing markets are finally strong enough to stand on their own, without government support.  And, it certainly can be the right time to buy if you are currently renting, since you are losing the chance to build equity, take advantage of tax benefits and protect yourself against rent increases.

Home sellers are seeing some stabilization as well.  Denver was among nine metropolitan areas in a 20-city survey that saw home prices in January compared with the same month in 2009.  Home resales in the Denver area rose in the first quarter of this year compared to the same period a year ago.  The housing inventory for single family homes and condominiums remains low.  There were 14,886 single family homes below $1 million on the market in early April, which relates to a 5.196 month supply of homes below $1 million, which would indicate a sellers market.  Properties being placed under contract are rising faster than previous years, with the increase of Under Contracts from March to April of 910 units.  That is the largest April over March increase in 5 years

Most importantly for both buyers and sellers is selecting the right agent.  Buying or selling a home is likely the largest financial decision you will be faced with in your life.  If you are like most people, you want expert professional advice and guidance when making that decision.  Important factors in your choice of brokers include experience, commitment, training and personal rapport.

There is no one more dedicated and devoted to the concerns and well being of our clients than each member of the Arnie Stein Team.  All of the team members are qualified, trained and experienced in their assigned tasks and are capable of pinch-hitting for each other.  Each team member was selected for their expertise in a complementary skill and area of specialty. You get thorough service, because at every step of the way a team member stands ready to assist you.  Give us a call today.

With first-time homebuyers out in force, along with investors, the median price for a single-family home rose 15% in February over the same month in 2008, to $220,750 last month from $192,000 a year ago.  Prices aren’t anywhere near the zenith of the housing boom – they are down 30 percent from the peak in May 2006 – but prices have been steadily increasing from month to month, climbing almost 4 percent off the bottom reached in May, 2008.  In addition, the Denver area bucked the nationwide slide in pending home sales, rising 21.9 percent to 3,690 in January compared with 3,028 during the prior month.

Although consumers were surprisingly quiet in the first three weeks of the year, activity increased greatly the last week of January, so the year has started much better than last year.  Many experts are bullish about the Denver market, and multiple offers on properties are being seen again.  Now that spring is here, the market should gain steam as buyers scramble to take advantage of the federal tax credit.  And, remember, the First-Time Home Buyer Tax credit of up to $8,000 and current homeowners credit of $6,500, expires April 30, 2010.

Right now is a great time for first-time buyers who don’t face the sale of a current home, with new buyers looking at good interest rates as well as great home prices and inventory.  It is, however, one of the biggest financial and lifestyle decisions most of us will ever make, so some self-assessment helps to decide when to buy.

You can find out if you are ready to buy a home by asking yourself some questions.  Do you have a steady source of income (usually a job)?  Do you have a good record of paying bills?  Do you have few outstanding long-term debts, like car payments?  Do you have money saved for a down payment?  Do you have the ability to pay a mortgage every month, plus additional costs?  If you can answer yes to these questions, you’re likely ready to buy a home. 

Start by thinking about how much you can afford in a monthly mortgage payment?  How much space do you need?  What areas of town do you like?  After you answer these questions, give the Arnie Stein team a call.  We can help you narrow your choices, determine your price range, and show you homes that meet your targets.  We listen well, understand your needs, have the resources and contacts to help you in your search and are experts in the area.  We can provide all the knowledge and services you need!

…may be right now!  The $8,000 tax credit for first-time homebuyers and the $6,500 tax credit for existing home buyers is about to end.  The tax credit now applies to sales occurring on or before April 30, 2010.  However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.  The income limits are $125,000 for single taxpayers and $225,000 for married couples filing joint returns.  For answers to your questions regarding this Federal Housing Tax Credit, go to www.federalhousingtaxcredit.com.

Several signs point to an impending recovery in the Denver housing market, so the timing is perfect to purchase a home, especially since mortgage rates are near historic lows but are expected to rise later in the year.  Denver home prices have already started to rise.  The online real estate valuation firm, Zillow.com, reported that Denver and its suburbs recorded the biggest dollar gain in home values of any metro area in the country last year.  Denver home values rose by $7.87 billion in 2009, recouping some of the $20 billion shed in 2008, Zillow said in its fourth-quarter real estate report.  Many metro areas have seen a sharp decrease in the supply of foreclosed homes coming to sale, resulting in more stable home values. 

In January, the median price for a single family home in the Denver area was $210,000, up nearly 16 percent from $181,500 in January last year.  The upswing in pricing is a function of the mix and available inventory which has been declining for almost three years.  The number of homes on the market declined 9.9 percent to 17,785 compared to the same time last year.  The low inventory is beginning to put pressure on pricing because there is not much available in the lower price ranges.

Forbes recently listed Denver as one of the top five metro areas where renters should buy now, with market conditions making it a particularly good time for some renters to take advantage of the government push to make homeowners out of the one-third of Americans who still rent their homes.  They predict a five year home price index rise of 12.34% in the Denver area.  Although rental rates have fallen, it has not been nearly as rapidly as home prices.

So, if you’ve been thinking about buying a home, take advantage of the current tax breaks, low prices and interest rates.  They won’t be around much longer!  Call the Arnie Stein Team today to help you take advantage of the compelling reasons to buy real estate in Denver.

Some more positive economic and real estate developments are bringing 2009 to a close.  Colorado unemployment fell slightly in November, dipping to 6.9 percent, well below the national unemployment rate of 10 percent.  Mortgage rates in the state continued to sink, recently reaching 4.54 percent on a 30-year fixed loan.  Metro Denver’s housing market showed its first year-over-year improvement in 11 months, as the number of homes sold in November surged 23 percent over the same month in 2008.  At least part of the increase was attributed to a rush by first-time buyers to take advantage of the $8,000 federal tax credit originally scheduled to expire at the end of November, but later extended through the spring.  But it wasn’t just first-time buyers who returned to the market.  The median sales price for condos and single-family homes increased, a sign that the more expensive properties were also selling well.

The median price for a single-family home was $218,000 up 11.8 percent from the November 2008 price of $195,000, with a healthy mix of move up and first time buyers.  Additionally, for the first time in nearly three years, sales in the $1 million-plus market increased 30 percent year over year, which might indicate the beginning of the recovery in this market level.

And now for some of my predictions for 2010.  Most everyone agrees that the real estate market next year will be much like this past year.  The number of foreclosures will continue and may even increase.  The remarkably low interest rates available now make homes more affordable than ever – this may be the best time to buy real estate in our lifetimes!

Some trends continuing into the next year include fix and flips regaining popularity, with financing even available.  Going green is popular and is most definitely the trend of the future.  Solar energy is on the rise, especially with new construction.  Virtually all consumers will be upgrading their windows, insulation, appliances and mechanical systems with energy efficient furnaces, air conditioners, etc.  Rumor has it that “cash for clunker” appliances is also coming.

Government incentives are working!  First time homebuyers can still receive up to an $8000 tax credit and now any current homeowners who may want to move can get as much as a $6500 tax incentive if they have lived in their current home for 5 of the last 8 years  (Note:  income restrictions apply).  Hurry, April 30, 2010 is the deadline.

Our team is outperforming the market.  We received the number 4 ranking in the metro area for the most closed transactions in 2008, as recognized by the Denver million dollar roundtable.  Please keep us in mind for all of your real estate needs as well as for the next generation of home buyers and those who owe more than their home is worth and need to sell – we have extensive experience in short sales.

Best wishes for a happy and health New Year!

On November 6, President Obama signed the Worker, Homeownership, and Business Assistance Act of 2009 into law, extending and expanding the important home buyer tax credit, and thereby providing many Americans with just the break they need to buy a first home or move up to a new home.

One of the requirements for becoming a Member of the Top 5 in Real Estate Network® is to provide my community with critical real estate information so you can make the best possible decision when buying or selling a home. To that end, I wanted to pass along some key facts about the extended and expanded tax credit that are critical for you to understand in order to take advantage of this opportunity:

1. Eligibility: The tax credit is now available for first-time home buyers and eligible current homeowners. A first-time home buyer is an individual who has not owned a principal residence during the three-year period prior to the purchase. This law applies for both parties in a married couple; if you haven’t owned a home for three years, but your husband has, then neither one of you can qualify for the tax credit. A qualified current homeowner who wished to move to a different home, must have owned and resided in their residence for five consecutive years out of the last eight.

2. Salary requirements: Single taxpayers with incomes up to $125,000 and married couples with a joint income up to $225,000 qualify for the full tax credit. Single taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.

3. Amount of credit: The maximum credit amount for first-time home buyers is $8,000; the maximum credit amount for current homeowners is $6,500. The federal tax credit amounts to 10% of the cost of the home, up to a maximum credit of $8,000 for first-time home buyers and $6,500 for current homeowners. Under the new legislation, a tax credit may only be issued for homes purchased for $800,000 or less. The tax credit is a true credit—it does not have to be repaid unless the homeowner sells or stops using the home as their principal residence within three years after the purchase.

4. It’s refundable: The tax credit is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if you owe no tax or the credit is more than the tax owed. The credit is claimed using Form 5405, which you file with your original or amended tax return.

5. Timeline: The credit is available for homes purchased on or after November 7, 2009 and before May 1, 2010. The federal income credit can be claimed on one’s individual or joint tax return for the purchase of any single-family home (newly-constructed or resale, single-family detached, townhomes or condominiums) between the dates of November 7, 2009 and April 30, 2010. Home purchases subject to a binding sales contract signed before May 1, 2010 will also qualify for the tax credit as long as closing occurs by June 30, 2010.

For more information on the home buyer tax credit, e-mail me or visit www.irs.gov. Please forward this email to friends and family who may also be able to take advantage of this unique opportunity to purchase the home they’ve always wanted.

It’s no secret that 2009 has been a pretty miserable year for the economy in general and real estate in particular.  We’re hopeful that the glimmers of hope that we have begun to see will continue so that 2010 begins as a year of recovery and ends as a year of growth.

Last month marked the best October since at least 1990 for sales contracts in the Denver metro area, with 4,910 homes placed under contract, a 9 percent increase from October 2008.  One reason October sales were stronger than a year ago is because the impact of the recession was starting to hit home last year.  The average price of all homes sold was $261,771, in increase of 4.6 percent from October 2008.  Additionally, the number of unsold homes on the market last month marked the lowest inventory for an October since at least 2001.  Also, activity was strong, with the weekly sales rate the highest since 2001 as well.  With fewer homes on the market and buying activity strong, it’s a reasonable expectation for continued improvement next year.

Recently, MSN real estate named Denver as one of ten cities where real estate prices are rebounding, declaring that the city avoided the real estate bubble that hit the east and west coast states.  Other encouraging signs include the latest report that the Colorado unemployment rate for October fell to 6.9 percent, falling from 7 percent in September, 7.3 percent in August and 7.8 percent in July.

Adding to the potential for a continued upswing in real estate, the tax credit for first time home buyers has been extended, and it has additionally been expanded to include people typically in the move-up market.  In addition to the tax credit of up to $8,000 for first-time buyers, the new plan expands the program to include a $6,500 tax credit for those who have lived in their home for at least five of the past eight years and are buying another home.  This targets move-up buyers as well as new purchasers, so people who already own homes will feel comfortable enough to sell their home and buy another one.  The legislation also increases the income eligibility limits for the tax credit from $75,000 to $125,000 for individuals and from $150,000 to $225,000 for joint filers.  The cost of the home cannot exceed $800,000 and must be under contract by April 30, 2010 and closed by June 30, 2010.

With the Denver area faring better than most of the rest of the nation, it’s nice to be on the forefront of the hoped-for upswing and the potential explosion of the pent-up demand for real estate.  Now is looking like a great time to buy or sell – let the Arnie Stein team work for you and with you to meet all of your real estate needs.

As a Top 5 in Real Estate Member, I counsel many clients on a wide range of financial concerns, not just their real estate investments. As 2009 comes to a close, I wanted to alert you to some important information that could save you money come tax time.
In addition to the $8,000 tax break for first-time home buyers and the newly expanded tax credit that includes move-up buyers, new tax-relief bills passed in 2008 provide for a number of other tax breaks that may lower your 2009 tax debt. Plan now and review these breaks with your accountant to see if they could help reduce your tax liability in 2009 and beyond:
• Payroll Tax Credit. For 2009 and 2010, Congress gave workers a 6.2% credit on earned income, applied as lower income tax withholding (there are caps based on income). Recipients of Social Security, Railroad Retirement benefits or Supplemental Security Income, some federal workers, and veterans with disability pensions will get a one-time $250 check. Self-employed workers may be able to reduce quarterly estimated payments to get advance benefits.
• Larger Personal Exemptions. For 2009, each personal exemption you can claim is worth $3,650—up by $150 over 2008.
• Higher Standard Deductions. The standard deduction for married couples filing jointly rises to $11,400 up by $500 from 2008. For singles, the amount increases to $5,700—up by $250 over last year, and heads of households can claim $8,350, a jump of $350.
• Tax Credit for College Tuition. For 2009 and 2010, the Hope credit is replaced by a new credit of up to $2,500 per student a year for four years of college, not just the first two years. It now also covers the cost of books, but begins to phase out based on higher incomes.
• Child Tax Credit. If the credit exceeds the filer’s tax liability, all or part of the credit will be refunded if the filer earns more than $3,000 – down from $12,550 in 2008. (Also, for families with three or more children, the maximum earned income tax credit for 2009 and 2010 rises by $628.50)
Other changes that could affect you include higher income limits for deductible IRAs and Roth IRAs, higher estate tax and gift tax exemptions, credit for energy-saving home improvements, and partial exclusion of unemployment benefits.
To understand how the new tax breaks could save you money, consult with your financial advisor or e-mail me for more information. Be sure to pass this email along to your family and friends—in these tough economic times, we could all use a tax break!

Although there is discussion about extending it, the federal tax credit of up to $8,000 for first-time homebuyers is slated to expire November 30th.  Through August of this year, about 1.4 million people nationwide have taken advantage of the tax credit, accounting for about 40 percent of all purchases.  The tax credit, part of the American Recovery and Reinvestment Act of 2009, is available only to first-time buyers who have not owned a principal residence during the three-year period prior to the purchase.  The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.  Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

Sales of existing homes rebounded sharply in September to their highest level in two years, getting a strong boost from people responding to the first-time buyer tax credit, which is freeing many sellers to buy another home.  Pending home sales have increased for seven straight months, the longest in the 8 year history of the index.  Still, home values nationwide continue to decline, falling 8.5% from a year earlier.  While extending the tax credit would help lift housing prices, it would only be temporary.  However, if economic indicators such as consumer confidence show improving trends, experienced homebuyers will stay in the market and take advantage of the low prices, even without the credit.

Regionally, the strongest market was the West, where sales climbed 13% in September.  However, the median price of homes sold during the month was down 15% from last year.  In the Denver metro area, however, home resales actually declined in September compared with a year ago, but median sales prices of houses and condos increased.  Although the majority of the activity has been in the lower price ranges, an increasing number of move-up buyers in the market has pushed prices higher.  The number of homes on the market declined 17.1 percent from a year ago, a number that’s likely to continue falling through the end of the year because of the holidays and the high number of first-time buyers in the market.  Many people seeking lower-priced homes are even being out-bid.  Although mortgage rates in Colorado have recently climbed slightly, rates for 30 year fixed home mortgages recently averaged 4.94 percent.

One of the last states to succumb to the U.S. recession, Colorado appears poised to be among the first states to escape its grasp.  If technology and business spending fuel the recovery, then Colorado is in a strong position to benefit.  Forecasts call for the state’s job growth to return to a positive 0.4 percent next year, fourth-best among all states.  Retail sales in the state are expected to rise 4.4 percent next year.

As we all know, real estate has always gone through cycles.  At present, it is still a strong buyer’s market, but it appears as if we may be poised to reverse the trend, given an improving economy, a smaller inventory of homes on the market, an expanding buyer pool and low mortgage rates.  There may never be a better time to buy than the present.  Give the Arnie Stein team a call, and we can help you find the perfect home for your needs and desires!

Once again, there’s some of the good, the bad, and the ugly.  July was a relatively strong month in the Denver metro area, with home resales the best in 2009 but still down from the same month of 2008.  It was the strongest July as far as the rate of sales each week in at least seven years.  On the other hand, the median price of a single family home dropped locally while nationally home prices crept upwards by 0.3%.  The National Association of Realtors reported that its index of sales contracts signed in July for previously occupied homes rose 3.2 percent, the sixth straight increase.  The report showed the housing market is rebounding faster than expected from its historic bust.  Low prices and the looming expiration on November 30 of a first-time homebuyers’ tax credit of up to $8,000 have spurred sales.  The Realtors group projects that around 2 million first-time buyers will take advantage of the credit this year.

Subsequently, the number of metro-area homes sold in August dropped 14 percent compared with a year ago.  Meanwhile, the median price of a single-family rose to $227,000 in August, a 0.89 percent increase compared with the same month last year.  In certain price ranges, the available inventory equates to less than a month of sales.  An increase in buyers, accelerating consumer confidence, steady employment numbers and a drop in interest rates are all helping to stabilize the housing market.

In today’s real estate market, size matters.  Smaller homes saw prices increase from May to August, while larger homes lost value.  The average sales price for a single-family home smaller than 910 square feet increased 14 percent during the period compared to last year, while the average price for homes larger than 2,875 square feet declined by the same amount.  It’s still tough to sell larger, high-end houses, but buyers are swarming over smaller homes, with first-time buyers leading the charge.

On the local economic front, employment in Colorado grew 4,900 in August, and the state’s jobless rate fell a half percentage point to 7.3 percent, the lowest since February, while nationwide the unemployment rate was 9.7 percent in August.  Unemployment in the Denver area was 7.4 percent during the same period, down sharply from July’s 8 percent rate.  The number of Colorado businesses that laid off 50 or more employees at a time fell in August to its lowest level in 11 months, with 374 Colorado workers filing for unemployment insurance as a result of mass layoffs in August, down from 1,536 in July.

Additionally, there have been some other positive perceptions of the area, with CNBC rating Colorado #3 in America’s top states for doing business, and ABC News rating Boulder as a Top 10 place to sell a home in the nation.  Denver made a list of the 10 best places to grow up and Colorado ranks 11th best among the states in an evaluation of economic performance.

Serving the entire Denver real estate market, the Arnie Stein team will protect your interests regardless of economic conditions and whether you are buying or selling.  Let us take care of all of your real estate needs!