Anyone who’s even remotely interested in buying a home these days has heard the term “short sale” — and if the phrase isn’t familiar to you, it ought to be. Short sales occur when a homeowner is willing to sell his property for less than the amount owed on the mortgage, and the lender agrees to the deal. In many cases, these sales can turn out to be genuine bargains. It’s the phrase du jour in housing: A recent Zillow.com survey estimated one in five mortgage holders are “under water” — their homes are worth less than the balance on their mortgages. Another study, from the National Association of Realtors, found that one in 10 recent buyers purchased through a short sale.
5 caveats for short-sale buyers
Metro Denver home sales rose in 2011, but experts focus on sliding inventory
Metro Denver home sales edged up slightly last year compared with 2010, even as prices dropped. Last year, 39,387 homes sold, up 1.5 percent from the 38,818 houses sold in 2010, according to an analysis of Metrolist data released Tuesday. The median sale price dropped 2.13 percent to $230,000 for the year, from $235,000 in 2010. However, the continuing story since the summer, according to real- estate experts, is sliding inventory. The number of homes on the market in metro Denver last month was the fewest in more than a decade. “What strength we’ve had in pricing is due to the low inventory,” said Chris Mygatt, president and chief executive of Coldwell Banker Residential Brokerage. There were 12,531 homes on the market in December, down 33.6 percent from the same month in 2010, according to an analysis of Metrolist data. In 2000, the inventory hit a low of about 9,000, said independent real-estate consultant Gary Bauer. “If it continues to drop, it’s going to have a dramatic impact on the market,” Bauer said. “Some people like to see a lower inventory because it increases prices, but I personally think it will reduce transactions.”
New home market improves
As we enter the new year, the Denver-area housing market continues to show signs that the worst is over. A report released late this afternoon by the HBA of Metro Denver shows that there were 3,271 permits pulled for new homes in the Denver area in the first 11 months of the year, a 4.2 percent increase from the 3,139 during the same period if 2010. November itself was an especially strong month for permits, which indicates future construction, with 311 permits being pulled, a 28 percent increase from the 243 in November 2010.
Home inventory continues to tighten in metro Denver
The inventory level of metro Denver single-family homes and condominiums continued to fall in December, holding a trend that has grown pronounced in the last couple of months, according to a report Tuesday drawing on Metrolist Inc. data. The 12,531 homes on the market in December represented a 12 percent drop from November, and a 34 percent drop from December 2010, the report states. That number marked a 24 percent drop from December 2009’s 16,456 homes on the market. “Prospective home sellers are still sitting on the fence,” said Gary Bauer, an independent, Littleton-based real estate broker and Metrolist analyst. The continuing decline in inventory started in July and led Bauer to predict last month the level could hit 10,000 soon. “We’ll have to look forward to 2012 and hope the available inventory increases,” he said.
Denver Housing Market Seaking Balance
Lawrence Yun, the chief economist of the National Association of Realtors, captivated and educated almost 800 Denver-area Realtors and other housing officials during a presentation on a wide-range of housing and economic topics.
Advice to Buyers In Today’s Market
The number of active listings, those homes available for sale, continues to decreases. Caution is the theme, with caution rising along with the price point. What does this mean to you? Talk to a us to obtain an understanding of the home market. Manage your expectations by determining what you want in a home, what you can afford in a home, what are your lifestyle priorities, and does home ownership allow you to achieve your personal goal. Give us a call today about your Lifestyle preferences, the benefits of home ownership, and home affordability.
Advice to Sellers in Today’s Market
Today’s home buyer is looking for his or her dream. What does this mean to you the home seller? Well first of all, the home buyer is looking for a home that meets 100% of the home buyer’s expectations. The home buyer wants to move into his or her new home and have to do nothing but enjoy the home.
$100 down payments for HUD homes
It only takes a $100 downpayment for an owner-occupant to buy a HUD foreclosure in the Denver area. Previously, it required a 3.5 percent downpayment. The $100 downpayment policy kicked off last Friday. The new rule should boost the sale of homes owned by the U.S. Department of Housing and Urban Development, local experts said. “I think it is going to have a huge impact,” said Jason Peck, of Coldwell Banker.
Faun Posts Largest Loft Sale in 2010
After two years on the market, two sixth-floor units at the Flour Mill Lofts in downtown Denver’s Central Platte Valley have sold for a combined $2.5 million, according to real estate records.
Previously occupied homes become greater bargain
A wave of foreclosures has driven down the cost of previously occupied homes and made them even more of a comparative bargain. By contrast, new homes have become more expensive. The median price of a new home in the United States is 48 percent higher than that of a home being resold, more than three times the gap in a healthy housing market..
