Auctions are becoming more and more popular. On Monday, December 15th, AJ Karas Auctioneers held an auction at one home that was up for auction. Many sellers are seeking this form of sale versus the traditional for sale process.
One home that had been appraised for $1.2 million was sold for $680,000 at 776 Ivanhoe Street in East Denver, another at 4546 W. 36th Avenue in northwest Denver was appraised for $900,000 and sold for $700,000. Potential bidders were able to see instant equity in their efforts.
If you are looking to invest and have the abilities to repair, this may be a chance to reap some benefits! This process sounds better than investing in the stock market!
Joan Cox
Metro Brokers - Turning Point RE
720-231-6373
Wednesday, December 17, 2008
Monday, December 15, 2008
Flipping homes in this Market
In the Denver market, approximately 3400 homes have been "fixed and flipped" within a twelve month period. In this same period 150,000 home sales were posted - with over 2% being "flipped". This includes all six Denver metro counties. The margin of profit has increased from $38,792 during the first quarter of 2005 to $80,538 during the third quarter this year on these properties.
The biggest percent of flips have occurred in Montbello North, Park Hill East, Old Thornton and East Colfax. Homes priced at less than $200,000 have the most activity. This percentage of flipping should increase as our market in Denver becomes more viable.
The City & County of Denver has received $6.1 million through the Federal Housing & Economic Recovery Act of 2008 to acquire and redevelop foreclosed properties that may show abandonment. The cities most concentrated on are Westwood, Green Valley Ranch and Montbello.
Merchant's Mortgage and Trust Corp specializes in fix and flips. They lend money for the improvement of property, when other conventional lenders will not.
Joan Cox
Metro Brokers - Turning Point Real Estate, Inc.
720-231-6373
The biggest percent of flips have occurred in Montbello North, Park Hill East, Old Thornton and East Colfax. Homes priced at less than $200,000 have the most activity. This percentage of flipping should increase as our market in Denver becomes more viable.
The City & County of Denver has received $6.1 million through the Federal Housing & Economic Recovery Act of 2008 to acquire and redevelop foreclosed properties that may show abandonment. The cities most concentrated on are Westwood, Green Valley Ranch and Montbello.
Merchant's Mortgage and Trust Corp specializes in fix and flips. They lend money for the improvement of property, when other conventional lenders will not.
Joan Cox
Metro Brokers - Turning Point Real Estate, Inc.
720-231-6373
Thursday, December 11, 2008
Interest Rates
Wow --- are you ready for mortgage interest rates UNDER 5%? If the government has anything to do with it, we shall see 4.25% mortgage interest rates in the very near future. This will help those cities across America be able to refinance and stay in their homes, or get caught up if there was any chance of going into foreclosure. This all looks positive, then our resale market will be sitting better, and we shall again see an upbeat real estate market.
The average time most homeowners spent in their homes was four years. Now a days, it is closer to 10 years to realize value when they are able to sell.
Joan Cox
Metro Brokers - Turning Point RE
720-231-6373
The average time most homeowners spent in their homes was four years. Now a days, it is closer to 10 years to realize value when they are able to sell.
Joan Cox
Metro Brokers - Turning Point RE
720-231-6373
Home Prices in Denver
Our sales for September and October exceeded sales from the previous year, however, our values for November sales declined 15% over one year ago. The $1 million dollar homes are decreasing, due to an abundance of inventory in this price range. November's sales did not exceed last year's sales, showing slowing of resale inventory. The slowdown is pretty normal for the time of year, but with the global economy issues, sales were even slower during this period.
Average days on market are showing 97 days. The more days on market, shows the price is too high, and will not bring enough qualified buyers through the homes. The Denver inventory is down 19.8% from the same period last year. As normal, unless you have to sell, normally sellers will not have their properties for sale during the Holiday season.
We in Denver are more fortunate than most of the country - our sales of both existing homes and resales are higher than most cities. Here is Denver showing a 15% drop in median price is not bad, comparing to other cities like in California, Las Vegas and Florida - where prices have dropped 25-40 percent! So, here in Denver, it could be worse!
Joan Cox
Metro Brokers - Turning Point RE
720-231-6373
Average days on market are showing 97 days. The more days on market, shows the price is too high, and will not bring enough qualified buyers through the homes. The Denver inventory is down 19.8% from the same period last year. As normal, unless you have to sell, normally sellers will not have their properties for sale during the Holiday season.
We in Denver are more fortunate than most of the country - our sales of both existing homes and resales are higher than most cities. Here is Denver showing a 15% drop in median price is not bad, comparing to other cities like in California, Las Vegas and Florida - where prices have dropped 25-40 percent! So, here in Denver, it could be worse!
Joan Cox
Metro Brokers - Turning Point RE
720-231-6373
Wednesday, December 3, 2008
Buyer Confidence Returning
It was announced today --- mortgage applications have increased in the last week, more than in the last three years. This shows buyers are starting the purchase process, and our real estate market will improve. These buyers are seeing the benefits of decreasing increase rates, fair home prices in our market and the time in NOW to take advantage. Interest rates are at their lowest level since June 24, 2005 --- are you still waiting?
Now is the time to jump in, make those decisions, and take advantage of this market.
Joan Cox
Metro Brokers - Turning Point RE
720-231-6373
Now is the time to jump in, make those decisions, and take advantage of this market.
Joan Cox
Metro Brokers - Turning Point RE
720-231-6373
Monday, December 1, 2008
Sharing Blame for our Economic Downturn
Over the last few months, we have heard over and over how the banks have been at fault for loaning money where risk level was high. All along, I have said - those buyers signed for those loans. There is always TWO ways you get approved -- one, the bank says how much you can qualify for. Two, is what YOU are comfortable with. Usually if you purchase ALL of what the bank approves you for, you will not be prepared for any "setbacks" that may happen.
Being a homeowner, will provide you will an endless list of home repairs. These can range from minor to very major investments. If you have financed all of which you can afford, these setbacks could send you into foreclosure within months.
Many financial specialists profess we should have up to six months of disposable income available at all times, just for those setbacks. With a good economy, we as Americans have purchased multiple homes, more expensive cars, and have primary mortgages higher than we can easily afford.
With homeowners refinancing and taking equity out of their primary residence, mortgage debt has grown from 69% to 100% today. (As quoted in the Denver Business Journal 12/1/08) Since the mid 90's, our steady debt accumulation by both households and financial instituions has been a concern. Between 1977 and 2007, the U.S. debt rose from 1.6 times gross domestic product to 3.5 times. When a home has been refinanced up to 100% of home value, and with home values decreasing, the only way to get out of debt, is to have a "fire sale", or go into foreclosure.
Hopefully, over the next few months, foreclosures will slow down, and values will again be visible. Over the last month, lending requirements have increased and should help in the coming months to help strengthen our economy.
Joan Cox
Metro Brokers - Turning Point RE
720-231-6373
Being a homeowner, will provide you will an endless list of home repairs. These can range from minor to very major investments. If you have financed all of which you can afford, these setbacks could send you into foreclosure within months.
Many financial specialists profess we should have up to six months of disposable income available at all times, just for those setbacks. With a good economy, we as Americans have purchased multiple homes, more expensive cars, and have primary mortgages higher than we can easily afford.
With homeowners refinancing and taking equity out of their primary residence, mortgage debt has grown from 69% to 100% today. (As quoted in the Denver Business Journal 12/1/08) Since the mid 90's, our steady debt accumulation by both households and financial instituions has been a concern. Between 1977 and 2007, the U.S. debt rose from 1.6 times gross domestic product to 3.5 times. When a home has been refinanced up to 100% of home value, and with home values decreasing, the only way to get out of debt, is to have a "fire sale", or go into foreclosure.
Hopefully, over the next few months, foreclosures will slow down, and values will again be visible. Over the last month, lending requirements have increased and should help in the coming months to help strengthen our economy.
Joan Cox
Metro Brokers - Turning Point RE
720-231-6373
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