An Information Service of RE/MAXAlliance/Boulder Valley
January/2010
In a rising or
declining real estate market there is always a point where the market plateaus
and then begins to move in the opposite direction.The Boulder County
real estate market has been on a downward path since 2005 when there were 6,390
single family and attached units sold.That was the peak.Over the
course of the past four years the local real estate market has experienced a
noticeable reduction in sales.The last
few months of 2009 saw a slight up tick in sales activity as compared to a
similar timeframe for 2008; which is a good indication the market has bottomed
out.
2010 may be the
“Perfect Storm” as it relates to the Boulder County
real estate market.There are several
elements in play that create an excellent opportunity for home buyers to
purchase and home sellers to sell.
·First, is the expanded Home
Buyer Tax Credit Program, which covers all potential home
buyers.$8,000 for anyone who hasn’t
owned a home during the three years prior to the purchase.$6,500 or 10% of the sale price, whichever is
less, for current homeowners.The
property has to be under contract by April 30, 2010 and must close by July 1,
2010.There is an $800,000 limitation on
the cost of the home.
·Second, home mortgage interest rates continue to
be attractive, with the traditional thirty-year fixed rate mortgage in the five
(5) percent range.There is speculation
that mortgage rates will trend upward as the economy begins to stabilize and
consumer confidence returns.
·Third, is the downward pressure the market has
experienced in home values over the past few years.We are already seeing the lower end of the
market beginning to show signs of appreciation as more first-time homebuyers
and investors enter the market.Hopefully, this increase in home values will begin to work its way up
into higher priced properties.
Below is an
overview of sales activity for the past two years for single
family homesin the
various Boulder Valley areas, courtesy of IRES – the Northern Colorado MLS.
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If you need to use Louisville city facilities this holiday season, the following closure list will help you plan accordingly...
Louisville, Colorado-Holiday Facility Closures
City facilities will be closed or have shortened hours as follows for the holiday season:
* Thanksgiving, Thursday, November 26, 2009 - All City Facilities CLOSED
* Friday, November 27, 2009
o City Hall CLOSED
o Library CLOSED
o Recreation/Senior Center Open Normal Hours
* Christmas Eve, Thursday, December 24, 2009
o City Hall Open 8:00 AM - 5:00 PM
o Library Open 10:00 AM - 3:00 PM
o Recreation/Senior Center Open 5:45 AM - 4:00 PM
* Christmas, Friday, December 25, 2009 - All City Facilities CLOSED
* New Year's Eve, December 31, 2009
o City Hall Open 8:00 AM - 5:00 PM
o Library Open 10:00 AM - 3:00 PM
o Recreation/Senior Center Open 5:45 AM - 5:00 PM
* New Year's Day, January 1, 2010 - All City Facilities CLOSED
* Martin Luther King, Jr. Day, January 18, 2010 - City Hall & Library CLOSED
An Information Service of RE/MAXAlliance/Boulder Valley
November/2009
To
say that 2009 has been an interesting year thus far would be a huge
understatement. The true impact of a global economy has become part of
the world’s consciousness. Billions upon billions of tax payer dollars
have been poured into various state and government programs to
hopefully stem the tide of growing unemployment. The stock market has
wreaked havoc with individual’s retirement funds and future plans.
Real estate values have tumbled across nearly all sectors of the
American landscape. A pessimist would say the sky is falling. An
optimist would say there is opportunity to be had here. A brief
article in the Denver Post newspaper (11/8/2009) had the following headline: Homebuilders on the hunt for land as prices stabilize. The
article talks about large production builders i.e. Ryland Group Inc.
and Meritage Homes Corp. purchasing land for new home development in
areas like Southern California, Las Vegas and Orlando. These have been
some of the hardest hit housing markets in the nation.
Real
estate markets fall quickly and recover slowly. Two things normally
signal an upbeat in real estate activity: (1) Sales trends having
stabilized and beginning to move upward, and (2) New home construction
increasing. For the past two months, Boulder County SOLD
listings have mirrored 2008: 471 single family home sales in 2009 vs.
483 in 2008; 197 attached unit sales in 2009 vs. 186 in 2008.
During
the last two years there has been minimal new home construction across
the Boulder Valley. In a balanced real estate market, where there are
a reasonable number of home buyers and an acceptable number of
properties for sale, new home construction becomes part of the housing
landscape. Homebuyers contract to have new homes built and builders
are willing to take the risk of building “spec homes” anticipating they
will attract a buyer during the construction phase.
Risk versus reward
is the key element in most real estate transactions and it doesn’t
apply solely to the buyer and seller. Standing in the wings is a third
entity and, in most cases, they are the determining factor in how this
all plays out. They are the purveyor of the golden rule: He who has the gold makes the rules! They are the lender.
New
home construction is dependent upon financing; financing of
construction loans and financing of permanent loans when the home is
completed. Builders are at the mercy of the lender. Most lenders
today shy away from new home construction unless it is a “presale” and
the lender’s risk is minimal. Want to build a spec home and get lender
financing? Good luck finding a bank that will work with you without
30% to 40% down, two to three points over prime, etc. The good old
days of 20% down construction loans at prime or prime plus one are
history.
-------------------- Below is a brief overview of single family home values within certain geographic areas of the Boulder Valley comparing the past two years through October of each year. Information is provided by IRES, the Northern Colorado Multiple Listing Service.
