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.

Buyers will discover a variety of topography including flat, sloping, and wooded portions of the property offer several potential build sites suited for that dream home near Denver or a small Colorado ranch for retirement.  The Colorado horse property is close to Interstate 70 and only four miles from the high school.  It is reasonably priced at $400,000 in a popular area. 

The astoundingly beautiful mountain city of Evergreen is home to a diverse population of about 10,000.  It was once a quiet mountain retreat visited by the few.  Another 20,000 live in the surrounding rural areas and think of the city as their hometown.  People from all walks of live choose to live in this mountain area—everyone from artists to engineers.  They fill up the charming neighborhoods and are tucked into the hills and woods from Conifer and Genesee to Mount Evans on the west.

At the center of the small city, there’s a serene mountain lake that is open during the wintertime for ice skating, in summer for boating, and for fishing all year long.  Along with two golf courses, the area is filled with hiking and mountain biking trails.  Residents enjoy a swimming pool, gymnasium, racquetball and handball courts that are operated by the recreation district. 

Surrounding the community are many large parks for recreational activities, including riding horses and cross-country skiing, biking, and hiking.  Meyer Ranch, Lair o’the Bear, Alderfer/Three Sisters, and Mount Falcon Park are among them.  Then, about 90 minutes into the Rockies are several world-class ski resorts and extensive opportunities to relax in the beauty of Mother Nature.

Short of driving into the Mile High City, residents are able to easily access medical facilities, social and professional services, colleges and universities nearby.  The Denver International Airport services the greater metropolitan area and Rocky Mountain communities.  With the highly rated JeffCo Schools serving the students, this is a wonderful place to raise a family. 

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

The Denver Business Journal on September 9, 2008 looked at the Metrolist Inc. data and remarked, “The average selling price of single-family homes and condominiums in metro Denver rose in August from the previous month, but fell from a year ago.”  More specifically, single-family homes sold for an average of $284,531 this August and during August 2007 they averaged something like $316,000.

Generally speaking, it is best to look at median home prices instead of the average.  The median price is the price of a home in the middle of the scale of sold properties.  Half sold for more and half sold for less than that figure.  Just one $20-million estate or several $5-million Colorado horse properties will readily skew those averages.

Good thing that our homes in Denver are long-term investments. Looking back over several years, however, median Denver home prices are holding their own.  During the decade of the 1990s, the median home price in Denver grew from $100,000 to the $200,000s.  Not a bad investment.  By August 2005 the median price was $220,000, by August 2006 $228,000, by August 2007 $239,000.  Several articles posted online report declines in prices during the same period of time, a natural sine wave fluctuation.  When we keep our horses in step for the long-term, we just ride through the storm without panic.

The condominium market did a little better over the last year as more people decided to purchase properties at lower price points.  That’s not to say that there aren’t some very pricey condos around here but rather that builders have needed to lower prices to move inventory.  Metrolist reported that the supply of homes has finally dropped in the last year from 30,827 to under 25,000—another bit of good news for sellers.

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

The average sales price in August 2008 for single-family Denver CO real estate was tracked as follows:  Denver $245,753, Aurora $167,069, Englewood $293,399, Highlands Ranch $336,810, Littleton $295,640, Lone Tree $710,768, and Parker $322,258.  In most of these communities, Denver CO homes are selling to smart buyers at a slower pace than a year ago.  However, Aurora and Highlands Ranch real estate actually sold more units August 2008 than in 2007.

Below are the total numbers for existing home sales from January 1 through August 31, 2008:  Denver 8977, Aurora 4,923, Englewood 483, Highlands Ranch 1,211, Littleton 1,915, Lone Tree 123, and Parker 1,204.  Quite a few families are taking advantage of the positive aspects of today’s market.

Something must be going right in our communities.  Even though unemployment rates have been edging up in Colorado this year, Coloradoans have a history of morphing to meet the changing needs of the hour.  Some who came out for the gold rush decided to build farms and Colorado horse properties and Colorado ranches.  Traders settled down into mercantile stores and other businesses, one community applied to open a university, and many built places of interest to attract tourists.  We’ve landed several government offices and military training operations.  Our citizens creatively moved into the high-tech industries, into transportation and recreation.  Our creative communities can meet to solve problems and challenges.  After all, who hasn’t moved to this state to find excitement and a better quality of life?

So we see that in our state this year, the number of jobs has increased—in spite of everything going on.  Jobs have increased in Boulder-Longmont County and we are waiting to see just how the rest of the counties in our metropolitan area discover new ways to serve the sectors of need in today’s world during this challenging time.

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