Fallen Denver home prices and record-low mortgage rates have pushed housing affordability to a 40-year high. Meanwhile, Denver rental prices are continuing to rise at a fast pace, according to a new report by Hotpads.com, a rental listing service.

Rental prices in 20 of the largest metro areas increased 3.75 percent in 2011, and prices are expected to continue to rise in 2012. Meanwhile, home prices fell by 1.83 percent in 2011, according to the report. Denver home prices are widely viewed to have bottomed out and are expected, by most economists, to rise commencing in the spring of 2012.

“In a lot of cases it’s getting to a point where it makes more sense for people to buy because rent has been going up significantly faster, while home prices have been falling,” Paul Gleger, author of the report, told AOL Real Estate. If you are currently renting, this may be the best year ever to invest in your first home in the metro Denver area.

For information on Denver real estate, please contact TeamCox Realtors at 303-400-6060.

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As soon as the ball dropped (and before), our eyes turned toward 2012, wondering what it will bring. Naturally, TeamCox Realtors has been assessing the Denver real estate market for the coming year.

Here are the top Denver real estate trends that we are seeing during the first week of 2012:

• Increasing home sales: According to recent data released from Metrolist, there were 39,387 Denver homes sold in 2011, which is 1.5 percent increase from 2010. We expect for Denver home sales to continue to increase throughout 2012.
• Low inventory of Denver homes for sale: The inventory level of metro Denver homes has been falling for the past few months – there were 34 percent fewer homes on the market in December 2011 compared to December 2010. This is good news for Denver home prices and for Denver sellers. However, it means slimmer pickings for buyers, which could affect home sales at some point.
• Colorado foreclosures continue to decline: foreclosures decreased over 24 percent in November 2011 from November 2010.
• Low interest rates: 30-year fixed interest rates hovered at historical lows (below 4 percent) throughout December. We expect this to continue for at least through the first half of the year, although rates have edged up a bit in recent weeks.
• Improving economy and job market: Colorado’s economy continues to show improvement, A mid-year update from the University of Colorado at Boulder’s Leeds School of Business predicted recently modest job growth over the next year. Several companies, including Arrow Electronics, announced plans at the end of 2011 to relocate headquarters and create Denver jobs.

We hope that 2012 is a great year for you! If buying a home is on your resolution list, please contact TeamCox Realtors at 303-400-6060. We are here to help you find the home of your dreams.

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It seems like the same old things are always on New Year’s resolution lists – lose some weight, exercise more, spend more time with friends, and the list goes on. Well, 2012 is also the year to consider investing in a Denver rental property.

Why, you ask? Denver rents are among the highest in the country, Denver home prices are affordable and mortgage rates are low  (even for non-owner occupied properties). A $125,000 home with 20% down payment can possibly produce a $300 to $500 monthly cash flow after expenses are paid.

There are many investment strategies, but one that is easiest to execute is to invest in below-average priced homes in predominantly owner-occupied neighborhoods. These properties appeal to the broadest range of tenants and perhaps the tenants will even become buyers when you are ready to sell. Single family homes offer an opportunity to borrow high loan-to-value mortgages at fixed rates for long terms on appreciating assets with tax advantages and reasonable control.

This year, make this resolution a reality. For more information on investing in Denver rental properties, please contact TeamCox Realtors – Denver real estate specialists – at 303-400-6060.

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Happy Holidays from TeamCox Realtors!

TeamCox Realtors wishes you and your family a happy and bright holiday season, filled with joy and peace. We greatly appreciate all of our clients and friends reading our blog this year and we look forward to bringing you more market updates and news in 2012!

We are excited about what 2012 will bring to the Denver real estate market. Things are looking brighter in the Denver housing market and in the Colorado economy. This can only mean good things as the country and our city continue to recover from the housing downfall.

If you are a prospective Denver homebuyer looking to purchase a home in 2012, please contact TeamCox Realtors at 303-400-6060. We would be happy to help you check that resolution off your list.

Happy Holidays!

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If you are moving to Denver, Colorado, and plan on financing a new home, you should know that there is a difference between getting Pre-Qualified & Pre-Approved. A Pre-Approval letter is a document from the lender that confirms you can borrow up to a certain amount based on a completed loan application, credit check, tax returns and employment verification. This Pre-Approval goes much further with the listing agent and the seller when submitted with an offer. On the other hand, a pre-qualification letter is a document from a lender that states they will give you a loan based on a conversation with the lender and what you told them about your financial situation. Neither letters are an absolute guarantee that the lender will give you the loan one, two or three months later. Financial situation can change dramatically as the days and weeks get closer toward a closing date. If a buyer decides to finance a new Lamborghini during escrow, the buyer could be sleeping in that car instead of a bedroom and the loan wouldn’t close.

It’s imperative that a buyer in escrow understands that he/she may be subjected to last minute credit checks and funds verifications along the way heading towards closing. Not to fear however, if you remain conservative throughout your escrow period when buying a house and keep your job through that period of time, your Pre-Approval letter from your lender is most likely golden! So remember, Pre-Qualifying & Pre-Approving is not a binding contract requiring the lender to extend the loan, nor is it a requirement for you to take on the loan. It’s simply your first real step in preparing to submit offers.

You may ask, why can’t I just qualify at the last minute and save the trouble of meeting with a lender, after all I have great credit? Lenders will not close a mortgage loan for a property that is unidentified. This means, that you cannot receive your loan until you have found the home you want to purchase. The pre-qualification enables you to see your buying power, and your Pre-Approval enables you to jump on your dream deal the moment you know that’s the one!

For more information on the pre-approval process, please contact TeamCox Realtors – Denver real estate specialists – at 303-400-6060.

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We hope that you had an enjoyable Thanksgiving weekend. While you were battling crowds at the grocery store last week, according to Freddie Mac, the average rate on a 30-year fixed mortgage fell to 3.98 percent from 4.0 percent, which is close to the lowest point of 3.94 percent seven weeks ago. The average rate on the 15-year fixed mortgage decreased to to 3.3 percent from 3.31 percent.

We can’t stress enough how important it is for prospective Denver homebuyers to take advantage of these historically-low interest rates. Even a small decrease in a mortgage rate can make a noticeable difference in a monthly payment and increase your buying power. There is a great selection of Denver homes for sale on the market, and now is a great time of year to purchase a home since there are fewer buyers than in the spring.

For information on Denver real estate or Denver mortgage rates, please contact TeamCox Realtors at 303-400-6060. We would be happy to recommend some credible Denver mortgage lenders or help you crunch the numbers on what you can afford.

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President Obama unveiled a new mortgage plan last week, aimed at reducing monthly mortgage payments for distressed homeowners who owe more than their properties are worth (more than 125 percent of the value of their home). He announced steps for these homeowners to refinance their loans at low rates (around 4 percent).

Is this plan going to help distressed Denver homeowners? Not necessarily. One million borrowers may qualify across the county, but this is only 10 percent of people who need help. Why? The program is limited to those who owe more than 25 percent above the current value of their homes and there are many other obstacles, inlcluding qualification barriers and high upfront costs.

According to a recent Denver Post article, the program will have limited impact in Colorado since it hasn’t experienced a severe real estate downturn. Thankfully, it’s hard to find Colorado homeowners who owe more than 125 percent of the value of their homes. The program will have a stronger impact on states like California, Arizona and Florida, where home values have fallen dramatically over the past few years.

Despite this, nearly 21 percent of mortgages in Colorado are under water, or worth less than the amount owed, so while this new program may not be the answer, there are many other options.

TeamCox Realtors - Denver real estate specialists – is a Certified Distressed Property Expert, or CDPE. We are trained to help distressed Denver homeowners explore all of their options to avoid foreclosure, including short sales, loan modifications and much more. If you are having trouble with your mortgage, or owe more than your home is worth, please contact us at 303-400-6060.

Avoid Foreclosure in Denver

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There is good news on the Denver real estate front! A recent RealtyTrac report reveals that while Colorado still has the tenth highest foreclosure rate in the country, foreclosures continue to decline across the state.  In September, there were 4,855 Colorado foreclosure filings, which equates to one out of every 447 housing units. This is the tenth highest foreclosure rate in the country. While this is one “top ten” list we don’t want to be included on, Colorado once topped this dreaded list at the onset of the real estate meltdown.

The national foreclosure rate is also declining with foreclosure filings on 214,855 properties in September, which is a 6 percent decrease from August and a 38 percent decrease from September 2010. Nevada had the highest foreclosure rate in the country in September (one out of every 44 households).

While it is great news that Colorado’s foreclosure rate is falling, we realize that there are still many distressed Denver homeowners. If you are having trouble making your monthly mortgage payment, please contact TeamCox Realtors at 303-400-6060. We are trained Certified Distressed Property Experts, or CDPEs, and are here to help you explore your options, including short sales or loan modifications.

Avoid Foreclosure in Denver

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Forbes Magazine recently released its list of the most expensive zip codes. Seven Colorado zip codes made the top 100 and three of them are in the Denver metro area (Boulder, Greenwood Village and Cherry Hills). A Castle Rock zip code (80108), encompassing the Castle Pines Village area, was also included in the top 500.

The list was compiled based on home prices from listing prices for both single-family homes and condominiums in more than 20,000 ZIP codes across the U.S. for June 2 to Sept. 2 of 2011.

Here is the list of Colorado zip codes that made the cut:

Snowmass (81654): $2,995,000 (#13)
Aspen (81611): $2,647,239 (#20)
Telluride (81435): $ 2,395,000 (#28)
Cherry Hills Village (80013): $2,195,000 (#37)
Snowmass Village (81615): $1,773,523 (#59) Vail (81657): $1,615,516 (#77)
Greenwood Village (80121): $1,495,000 (#92)
Boulder (80302): $865,611 (#290)
Castle Rock (80108): $688,509 (#472)

For information on Denver home prices, please contact TeamCox Realtors – Denver real estate specialists – at 303-400-6060.

Where are the Most Expensive Homes in Colorado?

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Today’s Standard & Poors/Case Shiller home price index indicated an increase in national home prices by 3.6% from April-June. Also, today’s bond markets recovered much of the losses in the past week. What does this mean? Since interest rates are so low, now is simply a great time to buy and sell a home in the Denver real estate market.

Today’s Interest Rates:

Conventional 30 Year Fixed: 4.25% 0 Origination (4.39 % APR)
Conventional 15 Year Fixed: 3.25% 0 Origination (4.34% APR)
FHA 30 Year Fixed: 3.875% 0 Origination (4.27% APR)
VA 30 Year Fixed: 3.875% .25 Origination (4.36% APR)
Jumbo 30 Year Fixed: 4.875% 0 Origination (5.11% APR)

*All Rates are assuming an 80% LTV, 740 FICO Score, Owner Occupied, SFR. Conventional, FHA and VA examples loan amount of $240,000. Jumbo example loan amount of $500,000.

For information on the Denver real estate market, or for a Denver lender recommendation, please contact TeamCox Realtors at 303-400-6060.

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