Hansen Real Estate Blog

Apr 16

Seeing Signs Everywhere? | Jeff Hansen Blog of Real Estate in Littleton, Colorado, Metro Denver Area (303)794-4530 -

A Lot of The “Home For Sale” Signs Should Actually Say “Under Contract”

Mar 29

S&P/Case-Shiller Home Price Indices, See How Denver Looks in Comparison! | Jeff Hansen Blog of Real Estate in Littleton, Colorado, Metro Denver Area (303)794-4530 -

Denver’s housing prices are better than most!

Mar 28

Realtor Blog (303)794-4530 -

The ebb and flow of the housing market has turned once again to the flow side!

Feb 28

Hard Numbers | Jeff Hansen Blog of Real Estate in Littleton, Colorado, Metro Denver Area (303)794-4530 -

Jeff Hansen, Realtor in Colorado, insight on the Metro Denver housing market

Feb 04

I have a new Blog Page, Please check it out!

• I am no longer blogging here, Please go to my new Blog Page:
• http: //jeffhansen1.wordpress.com/
• Thanks!

Dec 09

Perspectives on the Denver Real Estate Market

 Positive Perspective on the Denver Metro Real Estate Market

Analyst Predicts Housing Rebound: Expect higher mortgage rates, relatively flat home prices and a rebound in home sales next year, Lawrence Yun, chief economist for the National Association of Realtors, told an audience of metro Denver real-estate professionals on November 17th. read more here

Mortgage Purchase Applications Hit 6-Month High: Mortgage applications to purchase homes increased 14.4 percent last week on an adjusted basis compared to the previous week, according to the Mortgage Bankers Association weekly survey.read more here

Market for Commercial Property Increases: The price of U.S. commercial property rose 4.3 percent in September compared to August, the largest increase in 10 years, Moody’s Investors Service reported. read more here

Colorado Urban Foreclosure Sales at 19-Month Low: Foreclosure sales at auction in Colorado’s largest counties fell to a 19-month low in October as the mortgage industry slowed down action on foreclosures, the state Division of Housing reported on November 22. read more here

Denver-area Luxury-Home Sales up 20.5% in October: Sales of $1 million-plus homes in the Denver metro area rose 20.5 percent in October, compared to the same month last year, according to Metrolist Inc. data. read more here

Plentiful Powder Draws Skiers to Mountain Resorts: Thanks to a series of winter storms pounding Colorado’s high country, many of the 18 ski resorts now open are reporting their best early season conditions in years. read more here

Holiday Hiring Up this Year: It may be yet another sign the economy is ready to rebound. Seasonal hiring for the holidays is expected to be stronger than last year. read more here

Kiplinger’s: University of Denver, Colorado College Named Top Values: Two Colorado private colleges are rated by Kiplinger’s Personal Finance magazine as among the 200 private schools it considers to be the “best values” in America.read more here

Black Friday 2010 Finds Many Shoppers ‘Feeling Better’: As “Black Friday” kicked off the holiday shopping season and brought flocks of customers to metro-Denver stores, some retailers said they sensed more optimism and energy among shoppers this year. read more here

Vestas Plans More Hiring in Colorado: Danish wind turbine manufacturer Vestas Wind Systems plans to hire 100 more people at its Windsor blade plant in the next six to 12 months. read more here

Jul 07

Did You Miss the Boat? Nope!

• Home shoppers who missed the April 30 deadline for The Home Buyer Tax Credit might have the last laugh for a variety of reasons. If done right, today’s home buyer could end up saving more than the $8,000 they could have received from the tax refund. Let me explain a couple of reasons why.
• There are now sellers that are dropping their prices because buyers are harder to find now that the credit has expired. Not only have there been these reductions in prices, but traditionally, prices start to come down in June and July anyway because of school schedules and summer travel. So, there is a double-dip effect on prices.
• Plus, in efforts to keep buyers interested, there are a lot of home sellers that are also offering promotions after the tax credit ended that, in many cases, are worth more than the credit itself. Seller paid closing costs, upgrades, and cash, just to name a few.
• Add these to the down-right low prices and that creates incredible savings for all buyers.
• Oh, yeah, then there’s this…
• Maybe you have heard, Interest rates are as low as they have ever been! (or at least as long as anyone has been tracking them.) Rates are at 4.5% on a 30 year fixed rate mortgage, (as of July 7th, 2010.) FHA 5/1 ARMs are at 3.25%!
• You could buy a $250,000 home with only 20% down and pay principal and interest of only $1,014 per month! Three months ago, when buyers were stumbling all over themselves to get in under the tax credit deadline, the rates were a full point higher. That made the monthly payment higher by $121.00. So, in a little over 5 years, that is $8,000 in savings. You add that to the prices that have dropped and take on some of those promotions sellers are offering and, boom! You are way ahead of the buyers that made it in under the deadline!
• Thanks to the low interest rates and the “Cash for Clunkers” effect that the Home Buyer’s Tax Credit has caused, I guess it is OK to miss the boat from time to time…
• Happy shopping! And SAVING!
• Investing in the real estate market has risks and is not for everyone. I am, by no means, suggesting this is for you. I am a trained professional, I do this for a living. If you would like more information regarding real estate investment, just let me know. You can also consult your accountant, attorney, Priest, Pastor, or Rabbi about the risks involved in investing. I am, however, available to answer your real estate related questions.
• Jeff Hansen
• jeffhansen@remax.net

Jun 08

How's The Market?

• So, How’s the Market, June, 2010
• All real estate data taken from Metrolist, Inc, on June 7, 2010. Denver, Colorado.
• “Five Reasons to Sell and Buy a Home in June of 2010!”
• REASON Number One! The buyer competition is lower than in earlier spring months, which benefits buyers. Sellers have an opportunity to capture the buyers with creative terms. Buyers will not compete with as many buyers as the previous month giving them a better negotiating position. This looks to be a short term opportunity for buyers, as we would project more buyers entering the market as rates rise.
• The tax credit pushed the buyer pool into buying in March and April and the lack of properties currently under contract in one month decreased by 2001 units. This means that the pace of buyers buying has slowed down giving a buyer the buying opportunity in June 2010. Each price range and location offers different data, but if you are a buyer today you have fewer buyers as competition this month.
• REASON Number Two: Interest rates hit historical lows in June in the mid 4.5% range for a conforming loan rate. The buying power is off the charts for a buyer to really maximize their housing investment. A $300,000 loan at 4.5% = $1514 dollars principle and interest per month. That same $300,000 at 7% = $1984 dollars principle and interest per month or $470 dollars more payment per month or $5640 dollars per year more. The average person lives in their home 5-7 years meaning the savings in payments over 7 years would be $39,480! Although rates are expected to rise slowly through 2010, we suggest buying now to lock in historically low rates and avoid the rush of buyers who enter the market when rates to start to rise. Is it worth it to you to save thousands of dollars in payments when you buy today?
• REASON Number Three: Sellers in entry level single family price ranges which is below $350,000, can position their home against fewer properties this year than previous years. The tax credit absorbed quite a few entry level properties making for a unique “Move Up” opportunity for sellers. Sell at close to list price on the entry level home and become a buyer in the upper price range and look for a discount. The absorption rate for a single family home priced in Denver from zero to $500,000 is 5.1 months supply. This makes the lower priced range homes a sellers market. Conversely properties from $750K to 1 million and above have an absorption rate of 30 months with 2250 homes on the market and an annualize number of sold single family homes above $750K to be a projected 892 homes. This upper end phenomenon creates a buyers opportunity not normally seen in the last 50 years.
• REASON Number Four: The last time the Denver market had 3 consecutive months of sold data that exceeded the previous year was 2005.
• Historically, 3 straight months of increased sold data would signal the market is on an upswing. Since the Tax Credit artificially increased sales in April, watching this data over the next 3 months will be good indicators if Denver is on the rebound for appreciation or if we are still bouncing along the bottom of the market. Either way, buying now assures you of buying at the bottom of the market.
• REASON Number Five: Denver is considered by numerous experts as the city that will out perform the national market in job growth and job stability for the next several years. When there is a pool of jobs, people move to the city with the jobs. When people move to a town it will lower inventory and when inventory reduces, prices go up. There are three parts to a buyer making a buying decision: 1. Average Price. 2. Interest Rates and 3. Job Stability. When all three are aligned in favor of the buyer, like June of 2010 is, properties start to move and appreciation occurs.
• CONCLUSIONS:
• Why Should You Considering Selling and Buying in June 2010?
• • Excellent Opportunity to Buy an Appreciable Asset at the lowest prices in years.
• • Low Interest Rates Make Your Buying Power Exceptional.
• • Building Costs are low for those who want to build their dream home.
• • Sellers are more realistic to the market conditions and their Odds of Selling.
• • The future of real estate will continue to be a solid investment and buying at the lower end of the market is Smart. Do you wish you would have bought more real estate in 1988? Don’t wish the same thing in 2028 about 2010.
• What should sellers do in today’s market?
• • Only put your home on the market if you understand the Odds of Selling and Positioning Your Home where buyers are buying.
• • Become a motivated seller by offering attractive terms to buyers
• • Make your home a STAR Home! Shows Terrific And Realistically positioned.
• What should buyers do in today’s market?
• • Leverage your buying power with the low rates.
• • Financing Terms could make an offer very attractive for you.
• • Get Pre-Approved to Buy like a Cash Buyer.
• Call me if you want a market valuation of your home or to discuss where you should be buying.
• Jeff Hansen
• RE/MAX Professionals
• (303)794-4530

Apr 08

Please, Please Please. Don't Miss the Boat.

• Have you ever heard the expression: “If you are hearing about it, it’s too late”? Well, when it comes to markets, that expression can be true.
• I have been experiencing a dramatic increase in sales in the real estate market over this time last year. By dramatic I am talking 100% increases in certain areas, and in others, 300%! And it is not just me, the entire company is showing these types of sales numbers. Inventories are outpacing sales for once. Much of this is due to the tax credits available to qualified first time home buyers. But, that alone cannot account for all sales increases across all price ranges. For example, the first timers rarely purchase Mc Mansions, they are buying in the lower price ranges and maybe stretching into the mid-ranges. There is a trickle up aspect to it, however. First timers buy a house, the sellers of that house move up a level and create a demand for the next price point, and that continues the cycle on up the ladder. Another reason for the bump is certainly because of pricing. Home prices for a long time have been inflated. But, now that the bubble has burst, there has been a massive correction in the marketplace. Sellers have taken notice and are pricing their homes where they belong to begin with. Once the proper pricing started, buyers took notice and sales started to happen.
• Whatever the reason, the numbers are up and the numbers don’t lie. The market is coming back. And it is coming back faster than CNN or FOX News might have you believe. Prices are still down, interest rates are still down and inventories remain a bit on the high side. Still a perfect storm for buyers, in a good way! More importantly, a perfect storm for recovery.
• Back to the old expression; now that you’ve heard, are you too late? Nope. The real estate market is a slow moving beast. It lumbers, it doesn’t gallop. This bargain season is going to last for awhile. How long? Who knows. Maybe a year, two, three. It may have taken the lumbering giant a while to start rolling, but it is moving along now. Who wants a ride?
• Here is a website to get you on your way
• http: //www.coloradohomesalesonline.com/
• Investing in the real estate market has risks and is not for everyone. I am, by no means, suggesting this is for you. I am a trained professional, I do this for a living. If you would like more information regarding real estate investment, just let me know. You can also consult your accountant, attorney, Priest, Pastor, or Rabbi about the risks involved in investing. I am, however, available to answer your real estate related questions.

Mar 18

Selling in a Buyer's Market

• I was recently having a conversation with a friend of mine and the question of whether or not it is a good time to sell came up. Selling in a buyer’s market can be tough, but it is possible. The secret is to price the home right. This market has had a major correction for the increases we saw in the late 90’s into the early 2000’s. We are looking at 2003 prices across the board, some areas as low as 1999 prices, ouch! But, it is what it is. And the people that are ready for it come out strong. If you get too overzealous and price it out of the market, it will sit for months and get stale. Proper pricing will get the home sold, always.
• An aspect of this market that is widely overlooked is that when you sell in a buyer’s market, you are likely to become a buyer in a buyer’s market. Most likely you will take a hit on the sale, but when you become a buyer, it is you that is hitting back! And as everyone knows, when it comes to investments, it is not how you sell, but how you buy. Your money is made on the purchase. If you are a seller in a seller’s market, on the other hand, you may make out pretty good on the sale, but get hammered on the purchase. If you get hammered on the purchase, your investment will always suffer. So, in my opinion, it is not a horrible time to sell as long as you are then becoming a buyer in a buyer’s market.

Jan 15

Foreclosures, Short Sales, and Auctions! Oh my!

• What an incredible time to be in real estate! Have you ever heard the term, “buy low, sell high”? Of course, who hasn’t? Well, how do you know when to buy? The housing market is complex, all markets are complex. There are a lot of aspects of a housing market to consider when looking for a good time to buy. Supply and demand is one aspect. And looking for distress is another. I have discussed the effect of supply and demand in earlier posts to this blog, so I will not elaborate on this aspect. Distress, however, is an aspect that, many times, is overlooked when considering a purchase. Distress causes a seller to make decisions that they might not normally make when in their comfort zone.
• Distress comes in many forms. Let us focus on Foreclosure. Once a homeowner gets into a situation in their lives that, for whatever reason, makes it no longer possible for them to make the payments on the mortgage, the loan enters distress. This puts pressure on the homeowner and the bank. The homeowner does not want to lose the home, lower their credit rating and cause embarrassment to the family. At the same time, the bank has its own bills to pay as well. Let us not forget that the banks are run as a business. A business needs income to survive. This is quite simplified, but serves the purpose of this discussion. The bank wants to keep their doors open in order to function as a business. The interest coming in from the loan payments are their income. Once that income flow is disrupted, it causes distress. People, and companies, for that matter, that are in distress, will make decisions that they would not ordinarily make. Banks are no different.
• A homeowner facing Foreclosure will feel that there is no way out. This is not true. There are options. Loan modification is one, a Short Sale is another. See my blog entry titled “Foreclosures, Short Sales and the Embarrassment Factor”. This blog entry discusses a seller’s options when facing this stage of distress. Once the seller is in this state of distress, an option has to be chosen. Each option has different consequences for the seller, however, it provides many opportunities for buyers. Buyers can offer less than the home is worth according to the local market analysis. In many cases, banks are approving Short Sales and helping these sellers get rid of the homes at discounted prices to the buyers. This is a wonderful opportunity to help both the seller and the buyer. If handled correctly, these transactions are a win-win.
• Once the home goes to Foreclosure sale, the seller loses out. They lose the ability to modify the loan terms, sell the home short, and generally wreck their credit rating for many years to come. Most sellers want to avoid this situation, so are willing to accept low offers on their homes. Lower offers than they would EVER consider when not in distress. This should be looked at as an opportunity that will benefit both sides, a true win-win. The only loser is the bank.
• The next opportunity for buyers to consider is buying after the Foreclosure sale occurs. Once the sale occurs, the bank takes possession of the house. This is now considered to be real estate owned by the bank, (REO). The banks really don’t want REOs. It is considered to be an asset on the bank’s books. For every dollar that a bank has as an asset, it needs to hold a percentage of it in cash in reserve with the Federal Reserve Bank. I am not going into the details of this aspect of banking, suffice it to say that this creates distress in the banking world. This part of banking is what caused many banks fail. Buyers can take advantage of this distress and see it as another opportunity. REOs are sold on the open market, just like any other home. These homes are priced considerably lower than the competition. Buyers should consider this as an occasion to buy low.
• The third aspect to consider when looking to buy low, is Auction. Auctions are the wave of the near future. Auctions generally occur when the REO fails to sell on the open market. I say generally because there are many reasons why Auctions occur, let us just focus on this one side of it for now. This type of Auction is usually looked at as a last resort for the bank. A bank will pick a reserve price and a starting bid. This price is commonly quite low comparative to the market data. Buyers are given a chance to bid on the home in a public bidding process. One catch, and there are many, these buyers have to have cash. It is as simple as that. Well, not really, there are a lot of things to consider when buying a house at Auction. Look for blog posts right here on this subject in the near future. There is a lot to discuss on this aspect and cannot wait to lay them out for you. There is no more exciting way to buy. It is not for everyone, and not what I focus on, but wow! What a fascinating culture! And one we will be seeing a lot more of soon!
• So, these are just three aspects to look for when considering when is a good time to buy a home. Buying low and selling high is the most fundamental way to stay successful in your investments. Consider all aspects before making a decision. I can help you on that path. Good luck and have fun!
• Referring website; http: //www.coloradohomesalesonline.com/
• Investing in the real estate market has risks and is not for everyone. I am, by no means, suggesting this is for you. I am a trained professional, I do this for a living. If you would like more information regarding real estate investment, just let me know. You can also consult your accountant, attorney, Priest, Pastor, or Rabbi about the risks involved in investing. I am, however, available to answer your real estate related questions.

Jan 08

Is It Good or Bad That There is More Housing Inventory?

• Is it good or bad that there is more inventory?
• Depends on which side of the sign you are on. The FOR SALE sign, that is. If you are selling; bad. If you are buying; not good, great! It comes down to basic economics. The more supply that you have, the less demand there is for a product, and therefore, less price. We are in the midst of this phenomenon currently in the housing arena. All over the country there are neighborhoods that are devaluing. If it hasn’t hit your neighborhood, believe me, it’s coming.
• We will see more devaluing due to increased inventories because of the foreclosure situation we find ourselves in today. See my blog entry on Nov 21, 2009, titled “Why is the real estate market down?” Banks have been sitting on their Real Estate Owned (REOs) inventories until the start of the year. Call it, padding or softening the books for year’s end. Call it whatever you like, they did it. You might recall a few months back when a couple of banks, out of the kindness of their hearts, made the announcement that they will be putting the foreclosures on hold through the holidays. They made it sound as if they were doing it to help people out during the holidays, so as not to kick anyone out of their homes before Santa got there. In fact, the less foreclosures that showed up on their books toward the end of the year, the better. It did help people stay in their homes, sadly, it only delayed the inevitable.
• Inventories are a key element of the housing economy, if not the key to the housing economy. In a free market society this is what dictates what something, indeed, anything, sells for. And that includes houses. I am starting to sound as obvious as John Madden, “the more you score, the better chance you have to win… BOOM!” But, seriously, this is not rocket science. Prices are down and, in some areas, continue to drop. The lower prices create more demand, and as that demand increases, supplies drop and price has catch up to meet demand. It is fundamental.
• So, which side of the FOR SALE sign are you on? If you are on the selling side, get creative, get savvy, get aggressive and sell. If you are on the buying side, yee-haw! If you are buying, get creative, get savvy and BUY! When else are you going to see a market like this again? Interest rates are amazing, prices are amazing, and the sky is the limit when it comes to which house to choose. With the inventories we are dealing with, you have the pick of the litter.
• Referring website; http: //www.coloradohomesalesonline.com/
• Investing in the real estate market has risks and is not for everyone. I am, by no means, suggesting this is for you. I am a trained professional, I do this for a living. If you would like more information regarding real estate investment, just let me know. You can also consult your accountant, attorney, Priest, Pastor, or Rabbi about the risks involved in investing. I am, however, available to answer your real estate related questions.

Jan 02

Is Right Now The Time To Buy Real Estate?

• The economy is still in a state of turmoil. A lot of people are thinking that it is not the right time to make major investment moves. That thinking could be your downfall. Much of the housing news lately has been depressing. All of this talk of foreclosures and short sales and unsold inventory, it seems like a never ending battle. The reality is that when all of the talk is about how the market is booming, it is already too late to get in at the ground floor! Waiting may not be the best strategy anymore.
• Home buying is not for everyone. There are risks involved and knowing the right market is key. I recommend that you look at markets with lower than average unemployment. It is my opinion that that is what will drive us out of this downturn. Once the unemployment numbers start to stabilize, the markets are soon to follow. Consumer confidence is lost in an economy that can’t support jobs. Once the long time unemployed masses start receiving a steady paycheck once again, the housing market will bounce back.
• Real estate historically appreciates overtime. Let’s look at home prices. If you bought a home today for $235,000, it will be worth $485,000 at 3% annual appreciation after 30 years. At 4% annual appreciation the same home will be worth $649,000. According to the U.S. Census Bureau, the price of new homes increased nationally by an average of 5.4% annually from 1963 to 2008. The National Association of REALTORS® reports that the price of existing homes increased by the same 5.4% per year over the same period. 2009 was a year that showed significant price reductions. In some markets in the range of 30%! I may be wrong, but the way I look at it, now home prices are below the curve.
• Thehousing market is showing signs of recovery, and in some areas, signs of price increases. Along with the fact that interest rates are incredibly low and the federal government is offering up to $8,000 for homebuyers (see my article from Nov. 24 titled, Extended $8,000 1st time home buyer credit, and you!) These are all reasons to look seriously at real estate. But, I feel that the number one reason to get back into real estate is that there is an incredibly large number of homes in distressed situations. By distressed, I mean financial distress. There are more and more homes going into foreclosure and many more banks now that are willing to negotiate short sales as an alternative to foreclosure. These homes are where you find the deals. Sometimes priced 10% to 15% to even 30% below market! It has been decades since this type of opportunity has presented itself.
• So, to answer the question, “is it the right time to buy real estate?” I believe the answer is clear.
• Go to www.metrodenvershortsalesonline.com to get more information about Short Sale transactions and to get further information on where to get started.
• Investing in the real estate market has risks and is not for everyone. I am, by no means, suggesting this is for you. I am a trained professional; I do this for a living. If you would like more information regarding real estate investment, just let me know. You can also consult your accountant, attorney, Priest, Pastor, or Rabbi about the risks involved in investing. I am, however, available to answer your real estate related questions. www.jhansen.biz