PAUL'S REAL ESTATE NEWSLETTER – JULY 2013 EDITION
PAUL, WHERE HAVE YOU BEEN?
If you’ve been wondering why I haven’t published my newsletter in a couple of months, here’s what I’ve been up to:
- Real Estate –
- It’s been a busy, busy year in real estate. We’re two-thirds through the year and 2013 has already been my busiest year ever in real estate! 13 homes sold with over $6,000,000 in sales.
- Congratulations to all of my clients for taking advantage of today’s low interest rates!
- Investment Properties –
- We purchased three more rental properties bringing our total to 6 homes in Lone Tree and Highlands Ranch.
- We improved several properties with new windows, roofing, flooring, countertops, appliances, and carpet to maximum rental income.
- Jenny and I bought a new home!
- We wanted to take advantage of today’s low interest rates, and found the perfect home for our family! Purchasing our home would not have been possible without the increased affordability that resulted from low interest rates.
- As if moving wasn’t stressful enough, we decided to completely renovate the kitchen. In just three more weeks we will have a new, functioning kitchen. We can’t wait! Eating out every night gets really old!
- Softball – Lots and lots of softball games this summer! The girls had a great season and mom and dad have loved watching the girls improve their game.
- Jenny’s been traveling – Jenny has had some amazing opportunities with her company, Western Union. So far this year she has traveled to India, London, New York and San Francisco.
Thank You! Will you please continue to support my business!
Nearly all of my real estate business is from repeat customers and referrals. IIt’s my commitment to the pleasant customer experience while ensuring a successful transaction that keeps my previous customers coming back and trusting me with their friends, neighbors and family members referrals. Statistics show that each year several of the people you know are likely to buy and sell a home. Can I ask you to be my eyes and ears? When you hear of someone considering a move would you pick up the phone and tell them about me? Here’s what to do next:
- Ask your referral if I could contact them to introduce myself.
- If they agree, please call me with their contact information.
- I will quickly contact your referral and let you know the outcome.
Thank you for your continued support!
BIG, BIG NEWS IN REAL ESTATE
- 3% INTEREST RATES ARE A THING OF THE PAST
The U.S. Federal Reserve (Fed) has been supporting low interest rates in an effort to prop up the economy, by purchasing $85 billion a month in bonds and treasuries, through a program referred to as Quantitative Easing (QE). When the economy shows an acceptable level of improvement, the Fed will begin phasing out of the QE program. When and how they begin phasing out the program has created uncertainty in the financial markets which has already caused mortgage interest rates to jump. In late June and early July of this year, rates jumped from the mid-3’s into the mid-4’s. Unfortunately, interest rates continue to hover in the mid-4’s and real estate experts do not expect rates to return to their earlier, low levels. What do we know? We know that interest rates will rise again, possibly sooner than later. When rates rose last month home affordability dropped 12%. When rates rise again, into the mid-5’s, home affordability will drop another 12%. Will you look back at some point in the future, kicking yourself for not buying when rates were at historic levels? Will the dream home you can afford at today’s low rates no longer be affordable when rates climb again? I hope not! Take action, study the data, make an informed decision about buying today vs waiting till tomorrow. Let me help you through this decision making process. I touch, feel and live real estate every day. My job is to consult my clients and I’d love the opportunity to talk real estate with you! Read More 2. DENVER HOME PRICES RETURN TO PRE-RECESSION LEVELS The Case-Shiller home price index for May, 2013 showed that Denver home prices reached new all-time highs, surpassing the previous peak level set in August 2006. What does this mean for the real estate market?
- Positive equity is returning for thousands of home owners. With positive equity, home owners are able to refinance and take advantage of today’s low interest rates.
- Move-up Market: Home owners who have been waiting for the market recovery before selling to buy a new home can now list their home for sale. Read More
REAL ESTATE MARKET SUMMARY FOR JUNE!
Here are the stats and highlights for the Denver metro market in July compared to June, 2012:
- Homes sold increased 11.35%
- Average days on market decreased 39.44%
- Inventory of homes for sale decreased 16.71%
- AVERAGE SOLD PRICE UP 7.66% to $349,339
DENVER REAL ESTATE MARKET TRENDS
Residential (if having difficulty viewing these charts maximize the email window Condo and Townhomes If you are looking for market trends for condos and townhomes please contact me. I’d be happy to send them to you!
June 2013 Real Estate Market Trends
DENVER REAL ESTATE NEWS
Inventory of homes for-sale increasing! Read More Paul’s Note: This is good news for the real estate market. Higher inventories of homes for sale are needed to balance the high demand and stabilize home prices. The move-up housing market, $500,000 to $750,000, is increasingly becoming a hot spot for Denver-area housing ReadMore Paul’s Note: This signals to me that the market for homes priced from $250,000 to $499,999 has fully recovered. Move-up buyers have a home to sell their home first before they are able to buy. 2013 Parade of Homes begins this Thursday, August 8th Read More
Homebuilders struggle to find workers Read More Paul’s Note: Much of the labor force left the county during the housing downturn, putting home builders in a bind as permits for new construction have steadily increased. New home activity up 43% Read More Paul’s Note: In past recessions housing consumption has lifted the overall economy and contributed significantly to economic recovery. A strong housing market, especially in new construction, will been needed in today’s economy to fully recover from the Great Recession.
Metro Denver apartment vacancies drop to 13-year low Read More Paul’s Note: The window of opportunity to mortgage investment real estate is closing. When interest rates rise, the carrying cost for mortgaged properties will increase thus reducing the capitalization rate (cap rate) of the investment. Once the cap rate drops below the investors minimum allowable rate of return, the investment will no longer make financial sense.
National foreclosures nightmare is nearing its end Read More Paul’s Note: I expect fewer foreclosures and distressed sales as more home owners return to positive equity. Foreclosures in May at pre-recession levels. Read More Paul’s Note: At the worst of the housing downturn, foreclosed homes accounted for nearly one in every three sales. Today, with fewer distressed home on the market, home prices are able to appreciate without the negative influence from foreclosures and short sales.
U.S. unemployment rate drops to 7.4% Watch Video Colorado unemployment rate ticks up to 7.0% Read More Douglas County had nation’s 2nd biggest wage gain in 2012 Read More Colorado’s GDP increased 2.1% in 2012 Read More
Sky RIdge Hospital in Lone Tree kicks off massive expansion Read More Mellow Mushroom restaurant opens in Lone Tree Read More E-470 Highway to bar car registration renewal for unpaid tolls Read More ‘Go’ auto dealerships renamed AutoNation Read More Denver’s population continues to grow Read More
THANK YOU FOR YOUR BUSINESS AND REFERRALS!
If you or someone you know is thinking about buying or selling a home any time in the next year, please call to let me know. It would be my pleasure to contact and work with your referral. My commitment to you is to treat them with the utmost care as they work towards buying or selling a home. Referrals are the core of my business and are always appreciated.
Free Real Estate Tools
When searching homes for sale anywhere in the Denver metro area use this link, Interactive Map-Based Home Search. This interactive, map-based home search tool makes looking for homes fun and easy. If you are interested in a specific neighborhood, whether it is your current neighborhood or the one that you hope to move to someday, this site can send you e-mail notifications when new homes come onto the market. Happy home searching! Please call me with your real estate questions. I’m always happy to help you navigate through this constantly changing real estate market!