Colorado Horse Property & Real Estate Blog

More government initiatives will further incentivize hesitant buyers in the Denver real estate market.  Incentives that motivated buyers in 2009 included bargain prices for Denver CO homes, low interest rates, first-time buyer tax credits, and provisions for investors to finance up to ten properties in Denver and elsewhere.  Other incentives are in the works.

Recent proposals could affect U.S. employees who have been out of the country, people heading for foreclosure, and anyone wanting to purchase a home.  Veterans who served overseas for at least 90 days in 2009 may receive an extra six months to take advantage of the $8,000 tax credit for first-time buyers offered during 2009.  A similar extension may affect all people who were out of the country serving in the military, intelligence or foreign services.

Moreover, congressional leaders are working with the White House to expand the tax credit that expires on November 30, 2009.  Various options are on the table.  Some kind of tax credit may become available to all homebuyers until May or even August.  Additionally, there is talk about removing income restrictions.  During 2009, only taxpayers who had incomes of $75,000 or lower could claim the full $8,000 tax credit.

Congressional analysts figure that the tax credit has cost about $1 billion a month in lost tax revenues.  Moody’s chief economist Mark Zandi claims that the tax credit is responsible for almost 400,000 sales of new and existing homes out of the total 1.4 million that sold.  If the tax credit expires soon, Zandi figures that there will be further downward pressure put on house prices.

When the real estate market is moving along, it helps other parts of the economy.  Lawrence Yun, chief economist for the National Association of Realtors claims that each house sold yielded $63,000 spent on goods and services including moving vans and furnishings.

In another arena, the U.S. Department of Treasury is launching a new program to help homeowners escape foreclosure.  Its program, known as Home Affordable Foreclosure Alternatives (HAFA), will offer financial incentives to servicers and borrowers as well as associated secondary investors, in order to facilitate a short sale or deed in lieu of the property.

An improving economic picture is starting to accelerate interest rates.  However, they are still very low.  For example, a $250,000 real estate purchase with 20 percent down in a 30-year fixed product is running 5.125 – 5.250 percent with 1.25 – 0.25 percent points.  FHA assists buyers to get into a $200,000 home with 3.5 percent down at 5.000 – 5.250 percent interest with 0.75 – 0.00 percent points.

That is incentive enough for many.

For more information about real estate in the greater metro area, including farms and horse properties, call Michael Paul of Realty Oasis at (303) 268-6052.

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Denver CO real estate may be selling like hotcakes this fall.  With cooperative interest rates and only 68 days before the closing deadline for the $8,000 tax credit, first-time buyers are scurrying to find suitable Denver CO homes and mortgages.

Mid September 2009, interest rates improved, going back to the low 5-percent range.  For buyers using 1.00 point and a 20-percent down payment on $250,000 Denver home purchases, the 30-Year Fixed Rate is 5.125 percent.  The 30-Year Fixed Rate for $600,000 purchases of Denver real estate with a Jumbo Loan is 6.125 percent.

Additionally, the scales are tipping toward ownership as a bargain.  An AP Study conducted by Marcus & Millichap Real Estate Investment revealed that the gap between median mortgage prices and median rent has dropped substantially.  M&M studied 45 metro areas.  In 2006, the gap was $777 so it paid to keep on renting.  In 2009, however, the average gap is only $221.  In Cleveland, Atlanta, Indianapolis, and St. Louis, the average gap proved to be less than $100.

We highly recommend that buyers work with experienced real estate agents and reputable mortgage brokers to find the right real estate for their budgets.  Since the gap varies by market and neighborhood, professionals are best able to help first-time buyers find the right homes.  Experienced lenders must be able to deal successfully with limited time to meet the deadline for the $8,000 tax credit.  Closing must happen before November 30, 2009.

News of lower interest rates is good news considering that there has been simultaneous pressure because of $70 Billion in Treasury debt auctions, especially 3- and 10-Year Notes and 30-Year Bonds.  On another note, consumer spending and consumer credit are down.  Consumer spending is 70 percent of the Gross Domestic Product.  There is cause to be cautious about consumer spending.  Today, the Dow Jones is at 9,841 as it continues to shy away from the 10,000 mark.  Unfortunately, the Dollar has weakened relative to the Yen and Euro.

So why buy real estate this fall?

1.    Interest rates are low but will go up as nation seeks to pay off its debt

2.    A $8,000 Tax Credit is on the table

3.    Home prices are still down but are edging up

4.    Homes offer shelter and a long-term investment

For more information about real estate in the greater metro area, including farms and horse properties, call Michael Paul of Realty Oasis at (303) 268-6052.

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Denver home sales are moving right along this summer.  Several organizations recently registered hopeful figures for the Denver Colorado real estate market including reports from First American CoreLogic, Federal Housing Finance Agency, Standard & Poors, and Denver Metrolist.

Standard & Poors

In the Standard & Poors/Case-Shiller Home Price Index, Denver reported its third consecutive month of positive real estate returns in May 2009.  From April 2009 to May 2009, Denver home prices increased 1.5 percent.

First American CoreLogic

According to a July 22, 2009 article in the Denver Business Journal, “Both metro Denver and the state of Colorado outperformed most of the rest of the country when it comes to prices of home resales.”  The report from First American CoreLogic is called the LoanPerformance Home Price Index (HOI).  It includes data from sales of Denver single-family homes as well as condominiums and townhomes in Denver.

Nationally since May 2008, the Denver – Aurora – Bloomfield area by end of May 2009 had registered only a 1.86 decrease in home prices.  Compare that with a couple of metro areas in California and Florida that registered home-price decreases of 29.72 percent and 29.43 percent respectively.

Denver Metrolist

Data maintained by Denver Metrolist reflects most of the real estate activity in the Denver market.  At the end of June, 20,853 homes were for sale, a five-month supply.  Numbers showed improvement in every statistical category during June 2009.  With regards to residential and condominium sales figures, the:

• Average sold price increased 6.3 percent
• Sales volume increased 15.4 percent
• Pending sales increased 6.0 percent
• Average list price increased 0.6 percent to $482,482
• Percentage of listings sold increased 14.9 percent

The August 2009 issue of Metro Brokers Real Estate Advisor reminds us that real estate sales are local.  They vary by state, zip code, and subdivision as well as by price range.  Metrolist figures for Denver Metro home sales for June 2009 by price point reveal the following about lower-priced and high-end homes.

For example, 1,900 homes sold for under $200,000 after an average 78.8 days on the market.  Since 2008, that represents only a 4.6 percent decrease in average sold price.  Another 1,699 homes sold for between $200,000 and $400,000 after 81.7 days on the market representing less than one percent decrease over the past year.  Fifty homes sold for over $1M after an average 241.8 days on the market.  That is a 9.1 percent increase in selling prices for these more-expensive homes since 2008.

Federal Housing Finance Agency

This think tank reported that prices in Colorado and the mountain states slipped only 10.1 percent from May 2008 to May 2009, and that is good news!

For more information about real estate in the Greater Metro area including rural farms and horse properties, call Michael Paul of Realty Oasis at (303) 268-6052.

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A dream-come-true Colorado horse property—strategically located 45 minutes south of downtown Denver real estate, 30 minutes north of Colorado Springs and down the road from Castle Rock—is on the market.  Nestled close to Spruce Mountain, meadows, green space, and riding trails, the Western-style features a new barn and corral and a guest apartment over the separate garage.  There are no covenants.

This fenced, two-story equestrian property at 3672 Estates Circle features an expansive 2,907 square feet of living areas, with four bedrooms plus a bonus room and two bathrooms.  With a price under $450,000, this Larkspur real estate offers the best of both worlds.  It is easily accessible to employment along the Front Range via Interstate 25 and perfect for growing families.  The top-notch Douglas County School District provides innovation to help every child succeed.  It offers open enrollment, charter schools, and creative programming.  Additionally, colleges and universities from the Air Force Academy to the University of Colorado at Boulder are within commuting distance.

The property lies on the northern slope of Pike National Forest at over 6,600 feet in elevation.  Wonderful ranches and neighborhoods of homes with large acreage combine to ensure a rural feel to the neighboring landscape.  Equestrian facilities and 4-H activities complement the award-winning golf opportunities at the nearby Bear Dance PGA Golf Course.

Larkspur hosts delightful community events including a flagship summer Renaissance Festival that transforms the rural area into a tourist zone.  Residents are in the country only as long as they want to be.  Outstanding shopping is available in the outlet malls, premier malls such as Park Meadows, and in the quaint downtown areas.  The Front Range of the Rocky Mountains brings people from all over the world, many who have opened extraordinary restaurants ranging from casual to ultra-fine.

There are new double-pane windows, flagstone in the kitchen and dining rooms, wall-to-wall carpeting, an eating space in the kitchen, walk-in closets, a wood stove in the family room, high-speed Internet, and a central vacuum system.  The neutral décor is ready for all of your belongings and your horses.  From this vantage, you can explore the Rocky Mountains on horseback, on foot, or on skis.  There are no limits.

For more information about real estate in the greater metro area, including farms and horse properties, contact Michael Paul of Realty Oasis at (303) 268-6052.

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Finally, the kindle carefully placed under the wet logs of the Colorado real estate market is sparking around Denver.  The rate of Denver home sales are steadily improving.  For four consecutive months, the percentage of sales of listed residential single-family Denver homes and condominiums improved.  Pending home sales for Denver rose 7.4 percent from March 2009 to April 2009.

According to Metro Brokers Real Estate Advisor, “Denver recorded the best year-over-year return in the S&P/Case-Shiller Home Price Index during April 2009.  S&P reported that annual declines for Denver CO real estate are down 5.5 percent.  That is the best rate in the entire nation.  The next best ratings are Dallas, whose decline is down 5.6 percentage points and Boston down 8 percent.

Several factors are contributing to the positive news.  Denver was one of the first real estate markets in the nation to notice a housing downturn.  The Mile High City has consequently had longer to regroup and figure out solutions than other cities.  Housing affordability conditions are at historic highs.  Those conditions include ratios such as income to house prices, etc.  Then interest rates have continued to stay low, albeit they are edging up.

Additionally, first-time buyers are taking advantage of the $8,000 tax credit offered to them through the stimulus bill.  To qualify for the $8,000 credit, first-time buyers and buyers who have not owned a primary home in three years must purchase a primary home before November 30, 2009.  As first-time buyers get into the market, sellers will be free to purchase their next homes.  The domino effect could help the entire real estate market to rebound and really crackle.

Other kindle is catching fire.  Although the average sold price for the Metro Denver dropped in January to $213,330, it steadily increased during the following three months to $233,482 in April 2009.  Median sales prices in the Denver-Aurora area are down 13.7 percent from last year while they are down 19.8 percent in the entire Western portion of the nation.

From January 2009 through April 30, 2009, existing home sales in portions of Greater Denver include:

• Denver 3,180 (87.1 average days on market)
• Aurora 1,831 (83.4 average days on market)
• Littleton 592 (82.0 average days on market)
• Parker 382 (93.9 average days on market)
• Highlands Ranch 358 (80.8 average days on market)
• Castle Rock 305 (125.5 average days on market)
• Englewood 168 (79.7 average days on market)
• Lone Tree 29 (108.5 average days on market)

For more information about real estate in the greater metro area, including farms and horse properties, call Michael Paul of Realty Oasis at (303) 268-6052.

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He who hesitates in today’s real estate market may miss the convenient Denver equestrian properties now available.  Denver Colorado real estate is a growin’.  The business sector is growing, as is the residential real estate.  In many areas, developments are filling in old farms and Denver ranches.

Buyers who want the small acreages for horses close to the amenities of the metropolitan area need only click here to view our Featured Listings for Denver Real Estate.

Prices are good.  Interest rates are great but edging upwards.  According to Paula Moore’s article in the Denver Business Journal on June 8, 2009, the highest average selling prices for real estate in Denver are $527,216 in the Boulder plains area and $663,311 for homes within the Boulder city limits.  The lowest average prices for single-family homes in the Denver metro area rang up in southern Aurora at $92,230, the mountain area of southern Jefferson County at $147,125, and near the Denver International Airport at $152,204.

With the excellent interest rates and the ability to refinance, some people are choosing to upgrade their homes by adding more rooms.  Some are remodeling.  Yet there are families who are choosing to add more acreage and a couple of horses for their children or for a mid-life diversion.

Horses enjoy an evolutionary niche as grazing animals that herd together for mutual protection.  They are quite social and love the horse circuit in the Mile High City as much as their owners do.  One larger property, suitable for several horses, would make them smile.  A smaller property under five acres would be fine for one horse—as long as someone in the family will fulfill the social need.

Horse properties are marvelous buffers from the hustle-bustle of life.  We can steer you towards a number of properties in great school districts located less than 20 minutes from business parks or the downtown metro area.  As the city expands, these choice properties with present covenants allowing horses could face redevelopment or rezoning if horse lovers resist them.

There are small ranchettes on less than five acres and larger ranches with hundreds of acres to roam.  No matter the size, the peaceful equestrian oasis promises to offer residents a world just a canter away from stress and a trot from equestrian heaven.  All while supplies last.

For more information about real estate in the greater metro area, including farms and horse properties, call Michael Paul of Realty Oasis at (303) 268-6052.

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Buyers in the Denver Colorado real estate market once again feel the shifting of the economic plates.  The good news is that first-time buyers of Denver CO homes may use their tax credits towards down payments.  However, putting a little fire under potential investors and buyers in the national market, interest rates are edging up.  Now is definitely an auspicious moment to take advantage of still-low interest rates and the great selection of Denver homes and real estate, plus the bargaining power of motivated sellers.

First-time buyers may apply the tax credit outlined in the Recovery Act of 2009 if they close on their homes by December 1, 2009.  The decision by HUD Secretary Shaun Donovan allowing homebuyers in Colorado and the USA to use the $8,000 tax credit in conjunction with FHA financing will primarily boost the sale of starter homes.  It will also create a domino effect as growing families upgrade.  The $8,000 tax credit may assist first-time buyers as well as buyers who have not owned real estate in three years with their down payments and closing costs.

The FHA mortgage program requires borrowers to come to closing with a 3.5-percent down payment.  Having an $8,000 to fulfill this obligation allows buyers who are otherwise strapped without gift money or family and friends to borrow from to enter the housing market during 2009.

Here is how it works.  Certain approved organizations, “eligible government agency and instrumentalities of government,” may provide bridge loans using the $8,000 tax credit for repayment.   FHA-approved lenders and non-profit organizations along with all government agencies up to 10 percent of the purchase price.  To facilitate home sales, these entities along with state housing finance agencies may also provide longer-term loans secured by second liens.

Next, let us look at the interest rates increasing about .500 percent last week.  They continue to be in the low 5-percent range for conventional, conforming loans.  The government is apparently selling enormous supplies of treasuries, which are competing with Mortgage Backed Securities (MBS) as safe investments.  The MBS market is the financial instrument that determines mortgage rates.

To avoid future interest rate hikes, it is imperative for current buyers to have a rate-lock strategy in place.  First-time buyers especially do not want to wait until interest rate hikes eat up the benefits of their tax credits.

For more information about real estate in the greater metro area, including farms and horse properties, call Michael Paul of Realty Oasis at (303) 268-6052.

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Whether or not you are living on a Colorado ranch, you can have some fun turning your Denver CO real estate into authentic Western retreats.  Decorating in a Western theme is an exciting process of discovery for owners of Denver homes.  Local museums, historic hotels, and other properties offer great ideas.  Plan to take a while accumulating interesting Western pieces for your horse property or other real estate in Denver.

The first step is to go sightseeing with the intent of getting ideas for your color scheme and precise Western theme.  Western usually means plenty of earthy tones.  Accent colors like turquoise, white, and red brighten up the palette.   Look in old bars and hotels, restaurants, ranches, and museums for get ideas to help you decide on a wall color or two for a specific room. 

Try to narrow down your Western theme to one or combine two themes.  For example, your son’s cowboy bedroom may have an old cowboy hat, saddle, spurs, chaps, and posters of horses and cowboys.  A pioneer theme may have wagon wheels, old milking pails, rustic woods, etc.  Pulling off a fur-trader or Indian theme may incorporate fur rugs and wall hangings.  The Western hunter would have elk horn chandeliers or tables with possibly woven blankets on the wall or used for throws.  One theme may be better suited to the family room and another to the kitchen or bedroom.

Besides wall colors, other elements of the Western decorating project are the flooring, lighting, artwork, furniture, and the all-important accessories. 

Flooring depends on the location and use of the room. Today the rough wood floors are popular but they do need care.  Earth toned ceramic tiles, hardwood, or laminate wood may be options.  Existing floors can be transformed by area rugs with Western designs.  Look for vintage western lanterns or wall sconces with cowboys, cows, horses, arrows, teepees, etc.  For brighter light, use rustic chandeliers, pub lamps, or swag lamps.

Western posters, prints, and original artwork from secondhand stores, auctions, country stores, and on the internet are invaluable.  Posters of old cowboy movies, “wanted” posters, branding irons, animal skins, originals by western artists, and many other pieces are suitable.  Furniture should be comfortable.  Most simple styles will blend with the Western décor.  Choose tans and browns but accent them with throws, throw pillows with a Western appliqué, etc.

Now for the treasure hunt. Accessories and knick-knacks add the personalized touch.  Collect just the right pieces of old pottery, figurines, cast iron relics, whiskey bottles, horseshoes, bits, and the like.  ‘Add some creative touches of your own, maybe putting an old saloon door on the kitchen.  Stamp horseshoe prints onto a plain-colored comforter or throw pillows or create your own branding symbol to put on the headboard or wall.  Use rope.  Make a lasso or several small ones to hang in the perfect places.

As time goes on, change out your Western treasures for new ones and enjoy your home on the range.   For more information about real estate in the greater metro area, including farms and horse properties, call Michael Paul of Realty Oasis at (303) 268-6052.

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The Denver CO real estate market is looking good for 2009.  From the saddle, real estate in Denver looks even better.  We obligingly take their word for it when geniuses crunch the numbers and let us know what they think is happening.  However, from our Denver horse properties and atop our Palomino out on the trail, the numbers fade into the breezes.

So to give our readers any heady information, we will share some news from the May 19, 2009 Denver Business Journal.  The article is entitled, “Denver tops on Today show list of cities poised for real-estate rebound.”  My horse is only concerned enough to wonder if more Colorado horse lovers are moving to our equestrian-friendly town. 

Author Mark Harden noticed a clip on NBC’s Today Show.  Real estate expert Barbara Corcoran, after measuring several factors, announced that Denver, more than any other U.S. city, is on the rebound.  She checked for job-growth potential, a growing population, good weather, abundant first-time buyers, no overbuilding, a vital downtown, a well-educated population, and foreclosures before other cities.

How specifically does Denver measure up?  We have all of the above in addition to boasting one of the largest park systems in the nation.  Interestingly, the Mile High City was one of the first cities to experience a high number of foreclosures and so it is one of the first to resolve that problem. 

Metro Brokers’ Real Estate Advisor similarly applauded Denver.  Among large cities, the Denver metro area ranked third with -14.2 percent of market decline since its real estate peak in August 2006.  Overall, the metropolitan real estate markets peaked between September 2005 and August 2007.

Now, math is useful, stats are fine, but we tend to observe another key factor:  horse sense.  Horse sense says, Wow!  What a gorgeous setting we live in along the Front Range of the Colorado Rockies.  Our citizens appreciate where they live.  They work hard and play hard.  Our communities are beautiful.  People take pride in volunteering and getting involved in education, culture, the arts, sports, and recreation.  We are an hour from the ski slopes and boast an international airport.  The magical weather brings us sunshine, flowers, changing leaves, and plenty of snow. 
For more information about real estate in the greater metro area, including farms and horse properties, call Michael Paul of Realty Oasis at (303) 268-6052.

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