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.

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.

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.

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.

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.

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.

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.

Some people dream of the freedom to ride out into the sunsets, far away from the fury of metropolitan Denver traffic, lifestyle, and homes.  Yet a child may benefit from 4-H as well as playing violin in a quartet, and so families leverage the amenities of the city and buy homes in Highlands Ranch.  Whether buyers choose recreational ranch real estate in the Denver outskirts or a home in the city near horse boarding facilities, this is the right time to buy.  Interest rates are low and credit is available.

Denver acts as a nexus for several large equestrian events and associations.  Look for the Rocky Mountain Horse Expo at the Denver National Western Complex, the National Youth Horse Leaders Symposium, the Colorado Hunter/Jumper Association, the Colorado Draft Horse Show, the American Youth Horse Council, and an array of activity at The Colorado Horse Park including major Grand Prix events. 

For example, the schedule at The Colorado Horse Park includes a long list of hunter/jumper competitions including the CHJA Show, Meridian Jump into Summer CHJA, Jump into June, Colorado Circuit Preview and Opener, Colorado Summer Classic, with shows and championships going into the fall.  There are plenty of events to spark the interest of all ages:  CHP Three Day Event from May 29-31, 2009, the $25,000 High Prairie Grand Prix on July 4, and the Rocky Mountain Classic July 8-12.  These are followed by more, including the popular $40,000 AGA Rocky Mountain Grand Prix, Colorado Summer Classic, $50,000 AGA Grand Prix of Denver, Dressage in the Rockies, and CHPC Endurance Ride.

The area abounds with clinics, lessons, and all your family needs to take on a real Western bent.  Beginning in May, Colorado Horse Park hosts the Eventing Derby on May 2, Sally O’Connor Eventing and Dressage Clinic on June 1, Gina Miles Clinic June 20-21, David O’Connor Eventing and Hunter/Jumper Clinic July 14-15, and the Bernie Traurig Hunter/Jumper/Equitation Clinic September 24-25.

As for us, we keep ourselves busy out at the ranch in the traditional vein of the Old West.  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.

In an effort to determine the quality of Denver’s schools—public, charter, and private, Denver’s 5280 Magazine staff pulled together a panel of experts for an article in the September 2008 issue.  The panel determined that quality goes beyond test scores, class size, and graduation rates.  They looked more to character—educational character.  “In fact, true character can be found throughout the Denver area, in schools rich and poor, public and private, homogeneous and diverse,” 5280 reported.

Today, we will describe several of the private schools in with the best rankings in the Denver metro area.  The schools were selected using a combination of empirical data, panel recommendations, and non-quantitative evidence.  Data was placed alongside strong educational culture and mission, demonstrable leadership, and vision from the school’s teachers and administrators, active parental involvement in and out of the classroom, growth and stability, evidence of learning, personal attention for students, extra-curricular activities, community service and interaction, academic tradition, and student engagement with teachers, parents, and each other.  5280 also utilized information from other reports and rankings.

Escuela De Guadalupe, a private Catholic elementary school.  It is a dual-language school with a diverse student body.  Its award-winning program commits students to full literacy in English and Spanish across all academic areas.  Graland Country Day School elementary and middle schools offer college pre-curriculum.  It is an overall high-performing school that sends graduates to some of the most competitive colleges in the nation.

Herzi/RMHA At The Denver Campus is the largest Jewish day school in the Rocky Mountain region.  It graduates 10 times the National Merit Scholars as an average school.  Almost every student goes on to college.  The lower school features differentiated instruction, grouping students in small groups according to ability, interest, and learning style. 

Kent Denver School is a private middle and high school in Englewood.  Kent offers freedom and independence with an emphasis on the arts and music and extensive volunteerism.  Logan School for Creative Learning offers a curriculum for gifted children ages four through 14 with an emphasis on projects, critical thinking, creativity, peer interaction, and personal growth.  Stanley British Primary School is a hands-on learning center that integrates lessons into daily experiences.

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.