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.

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.

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.

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.

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.

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.

Ask about Denver CO real estate in Sedalia, Franktown, Elizabeth, Parker, Bennett, Louisville, and in other wonderful smaller communities in the area.

Colorado’s children and youth are naturally inclined to love horses as much as their dogs.  Enter 4-H 100 years ago to mentor and educate our youth.  Today, the worldwide organization is America’s largest educational program for boys and girls outside of school.  The organization develops life skills and leadership skills.

With the motto of “Make the Best Better,” the 4-H organization in Denver participates in equestrian competitions held locally and nationally.  In addition to teaching young horse lovers about grooming, training, and competitions, the organization arranges tours, workshops, achievement programs, camps, statewide conferences, exchanges, exhibits and fairs, and national events.

While the child is learning horsemanship skills, he or she learns communications skills, citizenship skills, decision-making, leadership, interpersonal relationships skills, participation in the community, and global awareness.

Connecting youth with parents, adults, and youth mentors, 4-H is able to teach skills such as cooking, selling, livestock, wildlife, archery, electricity, computers, and science as well as teaching community service.  Local land-grant universities such as Colorado State University provide curriculum for programs beginning with children ages five to seven years old called the 4-H Cloverbuds and continuing up through age 19 with regular 4-H groups and clubs.

There are various ways each student can choose to affiliate with 4-H.  There are community 4-H clubs, project clubs such as a horse club, special interest groups, television, school enrichment, and special activities.  If there are no local associates, a student can participate as an individual.

The organization benefits from generations of volunteer 4-H mentors.  Additionally, 4-H receives private funds from individuals, businesses, and organizations that enhance the 4-H programs. 

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.

Foreclosed homes in the greater Denver region are a different ball of yarn.  It is critical to work with a lender and a Realtor® who has experience with bank foreclosures.  That is because there are so many critical details.  For instance, property ownership changes when a bank forecloses a parcel of Denver property.  When properties have changed ownership in the past year, specific Flipping Guidelines affect the resale.

Eyeing a foreclosed property is not a rush project.  Generally, the purchase of foreclosed properties in Denver takes longer than normal transactions do.  The bank may take one day or 90 days to decide to accept or reject an offer.  Most of the time, once a contract is accepted, a foreclosed property sale takes at least three or four more weeks to close. 

With several parties involved, it takes quite an effort to ensure an easy closing.  First off, the lender must send closing papers to the title company at least 72 hours in advance.  Other players on the chessboard include the appraiser, surveyor, inspector, flood certification company, insurance company, tax certifier, processer, underwriter, home warranty company, the title company, the escrow officer, and the bank—to name a few.

Buyers who have the time to deal with a foreclosure transaction must understand price negotiation.  A good Realtor can verify upfront any limitations that the bank may be imposing.  Realize that the bank most likely has already reduced the price of the property below market value.  Just as important, other buyers are also looking for good deals and the bank may have several offers.  Some banks will pay the buyer’s closing costs, possibly by raising the price, others will not.

Repairs, inspections, and appraisals are imperative to accessing the correct value of the property.  Inspections ensure that major systems are working.  That will include heating, air conditioning, foundation, roof, and plumbing.  Buyers are smart to hire their own inspectors to be sure that the major systems are in good condition.  Before an appraisal or inspection, it is important for the buyer to be certain that all of the utilities and water are on in order to test their functioning.  Banks who hold foreclosed properties will not do repairs.

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.