Denver Housing Report

As we head into fall, let's talk about what is happening in our housing market.

Let's start with the good news. I mean, who doesn't need good news?

First, metro Denver has been named one of the country's top markets to watch next year in the new "Emerging Trends in Real Estate 2011" report. This is a commercial real estate study in its 32nd year. The report ranks Denver 11th among U.S. cities on a list of real estate markets to watch for commercial and multifamily investment. Denver earned points for its redevelopment of downtown's Union Station, for DIA being "one of the nation's most modern airports," and for relatively low business taxes. Looking at the U.S. as a whole, the study found hopeful signs of tempered real estate market improvements for next year.

Second, Forbes magazine has ranked Colorado as the fourth best state for businesses and for fostering economic growth. CNBC has rated Colorado the third best state for businesses. The Forbes ranking puts Colorado first for labor supply, sixth for overall economic climate and growth prospects, and ninth for quality of life.

So do commercial real estate and businesses affect residential real estate? You bet they do! An upswing in commercial real estate indicates improving businesses. A good business climate indicates strengthening employment. And residential housing markets always recover as unemployment decreases. But notice the wording from the Emerging Trends report above: "hopeful signs of tempered real estate market improvements." Our housing market recovery is still in the early stages, and probably will recover slowly.

That brings us to the not-so-good news. Sales of existing homes in metro Denver fell 23.1 percent in September 2010 from the September 2009 total. That follows a 21.2 percent year-over-year decline in August and a 26.6 percent yearly decline in July. There were 23,332 unsold homes on the market in September, up 17.6 percent from a year earlier. But despite these depressing figures, some homes are selling. 3,079 homes sold in September, about 13 percent of the available homes for sale. I was able to put two of my listing under contract in September. The reality is, however, that both of these homes sold at 8-10 percent lower than their list price.

Getting a home sold in this challenging housing market takes patience and often times some real "belt-tightening." But it can be done. Let's stay positive!

Denver's Housing Slump

You probably heard the latest housing news: the number of homes sold in July plunged a record 27% compared with the same month a year ago. This was far worse than the most pessimistic forecast of economists.

So what does it mean for us here in Denver? It means our housing market's recovery is not going to happen real soon. But we still are positioned better than most parts of the country. We have less homes on the market and our homes are selling quite a bit faster than most other places. But if you want to be one of the homes that sells you've got to have the home looking great and you've got to be priced aggressively.

When will it all end? When will we be back to healthy appreciation? My take - it's all about job creation. Until we get unemployment back down to the 5% range we won't see any real increase in consumer confidence. When people are concerned about their employment, they lack the confidence they need to take on the housing market. So fewer homes sell and they sell for less money.

But this also means that if you are in a position to buy, this is a great time. Interest rates are at historic lows - I mean, 4.5% for a 30-year fixed? You've got to be kidding me! And there definitely are deals to be had out there.

So keep your chin up, Denver. Someday we'll be back to 7 or 8% appreciation yearly. Let's just hope it's sooner than later.

Sprucing Up the Kitchen

Can't afford a full kitchen makeover? Sprucing up the cabinetry is an easy fix for a fraction of the cost.

There are two options: replacing or refacing. Refacing includes covering the existing cabinet doors and drawer fronts with a wood or plastic veneer and replacing knobs and door hinges; replacing cabinets requires removing them entirely and starting from scratch. So what's the best for your home? Here are a few things to consider, according to HGTV.

First, check to see if the cabinets are structurally sound. If you have problems opening the drawers, closing the doors, or if the cabinet's interior isn't as large as you need it to be, simply rejuvenating the look isn't going to help in the long run. Also consider the age of the cabinets: Those made 20 to 30 years ago were typically built using thicker wood and sturdier construction. Such cabinets can often be refaced instead of replaced.

Next, consider how long you'll remain in your home. Replacing the cabinets will add to the home's value and could be worth the extra money if your home will be on the market in the near future. But for a potential buyer, a modern renewal of the cabinets with up-to-date veneers might be enough, making refacing your cabinets a cost-effective, viable solution. The typical cost of refacing with plastic veneer can cost up to about $3,000, while wood veneers can run up to $7,000. If you're still considering replacing, make sure you budget accordingly. According to costhelper.com, the cost of delivery and installation of new cabinets can cost at least $10,000.

Is That "Free Credit Report" Really Free?

There's a lot a consumer confusion out there about "free credit report" offers that are advertised as free but many times require consumers to spend money on credit monitoring or other products and services. You see these offers all the time. So where do you go to get an actual free credit report? Go to the only authorized sources under federal law:

1. internet: AnnualCreditReport.com
2. phone: 877-322-8228

In an effort to prevent deceptive marketing practices, the Federal Trade Commission has amended rules governing free credit report offers. Any advertising for a free credit report must now include a disclosure statement notifying consumers that you have a right to a free credit report from the above two sources.

If your only need is to check your credit report (and it's a good idea to do this at least once a year), go to the above sources.

My First . . . and Maybe Last . . . 15 Minutes of Fame

Well they say it happens to everyone at some point - 15 minutes of fame. Mine came a couple weeks ago when I was featured on FOX 31 News in some real estate segments they did. Just in case you missed it (and in case you care at all!), here it is.

Keeping You and Your Family Safe

A new law was passed in Colorado last year that flew under the radar of most homeowners -- probably because you don't have to worry about it until you sell your house. But my suggestion is you worry about it right now.

Here it is: if your house has a fuel-fired heater or appliance (e.g., gas furnace, stove, dryer, fireplace -- and who of us doesn't have at least one of these in our house?) or an attached garage, you must install a carbon monoxide alarm within 15 feet of the entrance to each bedroom prior to offering the property for sale or lease. For most houses, that means plugging one alarm into an upstairs hallway outlet. That's it. About $25 at Home Depot or Lowe's.

I recommend you don't wait until you're ready to sell your home - do it now and keep your family safe.

Watch Out Brian Williams . . .

Real estate is always a hot topic - probably because most of us own a home. So, the subject comes up pretty much everywhere I go. I talked real estate with my dentist just this morning. Well, I didn't say much until he got his hands out of my mouth! But after that I answered some questions he had. I got my hair cut yesterday and guess what Dina and I talked about?

So it's not surprising that we hear about real estate in the news. It's in the business section of the paper most days. It's on the TV news shows, national and local. It's on internet blogs - like this one!

Tonight, FOX 31 is doing a couple packages on real estate in Denver. At 9 pm they are talking about some of the areas of town that have seen the biggest increase in home values over the past year; at 10 pm they talk about the areas with the biggest decrease. Any idea who their "expert" is? That's right! Tune in tonight and see if Greg makes a complete dork of himself!

You also may see a couple of my new listings and one of my current buyer clients, Meredith McKinnon.