Boulder Real Estate

Louisville, CO real estate market update:  Louisville, CO has been one of the better-performing segments of the Boulder County real estate market recently.  Specifically, in the 12-month period ending on 7/31/2011, our local MLS (IRES) statistics indicate that over that period the number of single-family resale units for sale has declined 13.1%, the number under contract has increased 110%, and the number sold has increased 58.4% . . . all very impressive numbers.

On a percentage basis, these numbers indicate that the percent of Louisville's inventory under contract has increased 120.3%, the percentage sold increased 72.7% and the months' supply of inventory (MSI) was down 52.1%.  In fact, the month of July reflected the lowest inventory level of 3 months' for any time during the past year.

Review more Louisville and Boulder County Data here!

If you're looking for a home in the Boulder, CO area, Louisville might be a great community to consider!  For more information about Boulder and the surrounding communities like Louisville, contact us and we'll be happy to provide more information.

A new Gallup poll of more than 353,000 Americans has resulted in the city of Boulder, CO being named as the "happiest and healthiest" city in America!  This may sound familiar as Boulder has been popping up on numerous "Best of" lists recently, such as one of the best places to retire, the #1, strongest real estate market in the country, #8 in the top 10 places for jobs (Boulder County), #3 in the top 10 cities in America poised for recovery, and more.

This huge Gallup poll ranked Boulder, CO in the top 10 "happiest and healthiest" cities as follows:

• #1 overall
• #4 in healthy behaviors
• #7 in physical health
• #10 in access to basic things needed for healthy life

With all these things going for us here along the Front Range of Colorado, it's no wonder that Boulder real estate is one of the stronger markets in the country.  If you have any questions or would like more information about moving to Boulder, please call 303-441-5647 or visit us online.

Selling a home in today's real estate market can be an eye-opening experience for many sellers.  Many acknowledge the changing real estate landscape, but since their home is clearly the "best one in the neighborhood", short sales and foreclosure sales are often dismissed as irrelevant.  This perception is particularly true in areas where short sales and foreclosures represent a high ratio of overall home sales.

In order to effectively compete with this trend, it's critical to understand how these types of transactions impact local real estate markets.  Zillow.com recently published the results of their research into the percentage of foreclosure home sales and the associated "foreclosure discount" in different real estate markets across the country.  This research and the data summarized below illustrate the point that foreclosure home sales really do create two separate markets and that home buyers tend to demand a discount over and above the physical damage often seen in these homes.  All data was from the 3^rd quarter of 2009:

Metro Area                 Foreclosure Discount        Foreclosure Sales %

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Pittsburgh, PA                                   59%                       10%

Cincinnati, OH                                   39%                       15%

Columbus, OH                                  38%                       19%

Minneapolis-St. Paul, MN                     34%                       26%

Phoenix, AZ                                       29%                       58%

Denver, CO                                        27%                       25%

Los Angeles, CA                                27%                       39%

Kansas City, MO                               25%                       29%

Riverside, CA                                     25%                       66%

San Diego, CA                                    24%                       39%

San Francisco, CA                             24%                       39%

Las Vegas, NV                                    23%                       74%

Washington, D.C.                             21%                       21%

Sacramento, CA                                19%                       50%

Seattle, WA                                        19%                       17%

Portland, OR                                      18%                       18%

Source:  Zillow.com & Bloomberg.com

Based on the results of their survey Zillow.com reports an average "foreclosure discount" of about 28%, which is an important factor for other home sellers to consider.  For example, in the Denver real estate market where the foreclosure discount is reported at 27%, that $146,000 foreclosure sale down the street might suggest that a similar clean, well-kept, non-distressed home in the same area might command as much as $200,000.  We can't do much to change the fact that these types of real estate transactions are influencing many real estate markets across the country; what we can do is acknowledge the problem and figure out how to successfully market and sell homes in this environment.  Here are a few tips for home sellers who want to successfully compete against foreclosures and short sales:

•·         First and foremost, price your home competitively.  This does not necessarily mean that the foreclosure sale down the street is the best comp for your home, but it has to be considered.

•·         Present your home in prime condition.  Foreclosures and short sales tend to be in comparatively rough shape; people losing their homes often neglect routine maintenance for quite a while before they actually lose the home.  Your home has to clearly out-shine the competition in this area.  Doing so will go a long way to overcoming the "foreclosure discount".

•·         Hire a Realtor® who will out market the competition.  Just putting a sign in the yard and flyers in a box won't cut it.  In order to stand out and differentiate your home from sub-par competition like foreclosures and short sales, your marketing efforts need to include an intense online focus with quality details, i.e. virtual tours, lots of good photos, enhanced listings, detailed descriptions, etc.  Make it clear to potential buyers that there's a difference in quality.

•·         Offer minor incentives that highlight some of the advantages your home offers.  Foreclosures and short sales tend to represent increased risk to the buyer as these homes have not been cared for, may have been vacant and neglected for a long time, and can even be tough to inspect thoroughly because the utilities are shut off.  Offering things like a home warranty, a pre-sale inspection report, etc., can draw attention to the fact that your home is a better value because it represents higher quality and less risk.

•·         Make sure you can offer a reasonably quick closing.  Particularly with short sales, timing can be a deal killer for many home buyers.  Waiting for a response from the bank - sometimes for months - is frustrating for many potential home buyers and makes these types of sales a challenge.  With the federal tax-credit deadline looming, timing will become more and more of an issue and is an area where you can easily stand out.

These are just a few tips on how home sellers can effectively compete with foreclosures and short sales.  The main focus should be creating separation on points of interest that matter to home buyers, and marketing those differences in the most effective way.  Understanding the effect these types of transactions have on the residential re-sale market in your area will enable you to plan your home-selling strategy appropriately, and overcome the dreaded "foreclosure discount"!

For more information about Boulder real estate or to contact us, please visit us online at www.BoulderHomeResource.com.

It's easy to get enamored with real estate statistics in any market and even easier to make the mistake of planning the year ahead based strictly on projected sale figures.  if you look back over the past few years, even NAR's projections of future sales volume has been challenging.  Consumers have come to view those projections with a jaundiced eye and so should we; they're tough to get right in the current environment.

Real estate business planning has often ignored one of the most important factors in our business, albeit an indirect one: jobs.  In areas where unemployment has reached double digits, real estate markets have taken a real beating.  It's an issue that affects everything we do from pricing a listing, to the length of listing agreements, to setting a seller's expectations, to expense management.

Here in Boulder County, CO, we have been blessed with job/real estate markets that are relatively healthy and Boulder has recently been cited as one of the strongest real estate markets in the country.  CNN and Money Magazine just released their list of "Top 10 Best Places For Jobs" in the country, and Boulder County was cited as No. 8 for a variety of reasons.  The full article is here, but it's a real achievement for our area to be recognized in this category.  With a reported unemployment rate of 5.3% in the article, Boulder County offers many things that other markets can't.  Since our national and local economic recovery will clearly be driven by jobs, this is a good sign for things to come in 2010.

If you have any questions about Boulder real estate, please feel free to contact us.  Have a Happy New Year!

This article deals with some of the issues and potential pitfalls of home sellers considering a rent-to-own scenario.  It is not intended to be legal advice, but if you consider some of these potential problems you may avoid a situation that will be much more trouble than it's worth and may not have the outcome you intended.

For many years now, the thought of renting to own a home was rarely an issue.  In fact, in many real estate markets across the country, sellers could sell their home in such a short time that it was never a thought.  However, the changes we have seen in virtually every real estate market across the country have made this issue more common today and sellers considering it may want to think twice before diving in.  Despite what seems like at least a short-term solution to a home-seller's problem of not being able to sell their home and move on, renting-to-own brings its own set of problems that many sellers don't realize until it's too late.

A buyer who proposes this scenario usually presents with a problem:  They love the home and want to buy, but because of some "minor" issue with employment verification, job history, credit misunderstanding, etc., they cannot get a loan right now.  They can, however, make the payments so they offer to rent while their "situation" gets cleared up.  The devil is in the details, though, and typically the deal involves fixing the price at the outset of the lease, the buyer/tenant has to give notice at some point during the lease that they intend to buy, and some or even all of their rent is applied toward the down payment.

For a seller who has had their home on the market for months with no prospects and another mortgage payment due, the prospect of renting and selling can sound pretty good.  However, before diving into this situation, sellers may want to think about some of the pitfalls and consider either avoiding it altogether, or at least getting some legal advice.  From an owner's perspective, fixing the sales price today and giving the tenant/buyer in effect an option to buy later at that price, may not be financially sound.  In most cases, the buyer has no obligation to buy - only to rent - and they are usually only interested in buying if the value goes up over the lease term.  Good for the buyer - but bad for the seller.  There are other issues as well, like a tenant actually going down to the county and recording the lease, which would cause the seller headaches they never considered or planned for.

There can be legitimate situations where this type of transaction can work well for both parties, but they are relatively rare and even then, sellers should consider all the potential problems and get some sound legal advice before signing any documents.  The vast majority of the time these types of transactions never end up like the seller thought when they signed up and at the end of the day, they end up with far less than they would have if they had simply waited for a traditional buyer who could qualify to buy today.

If you are considering selling your property under an arrangement like this, you may want to consult with a Realtor and attorney in your state before deciding.  A traditional buyer in the hand may be worth more than a tenant in the bush!

For more information about Boulder real estate or to contact Phil, visit www.BoulderHomeResource.com.

Many home buyers today are still wondering whether it's time to jump into the housing market.  After all, it would be great to wait until the perfect moment when prices, inventory, and interest rates all converge and the stars align, right?  There's a weakness in that thought process, though, because trying to "time" the housing market is as difficult and risky as trying to do the same thing in the stock market.  Those that try it usually end up disappointed.  Even so, the stars may actually be pretty lined-up right now in many real estate markets.

One of the leading indicators we watch is the national Pending Home Sales Index (PHSI).  Pending home sales have risen for nine months in a row now, a first for the series of the index since its inception in 2001, according to the National Association of Realtors®.  This is an indication that buyers are, or at least should be recognizing the signs by now.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in October, increased 3.7 percent to 114.1 from 110.0 in September, and is 31.8 percent above October 2008 when it was 86.6. The rise from a year ago is the biggest annual increase ever recorded for the index, which is at the highest level since March 2006 when it was 115.2.

On a local level in Boulder and Broomfield Counties, the median price of a sold listing has remained relatively flat over the past 12 months.  For residential re-sale properties from November '08 through November '09, the median price stood at $337,500 - up a modest 2% year over year (Source: IRES MLS).  The MSI, or months' supply of inventory, is actually down 32% over the same time period to an average of 7.7 months at the end of November '09.

These stats can vary significantly from neighborhood to neighborhood, so be sure to consult with your Realtor® if you would like to see what your specific market looks like, but in general these are encouraging numbers.  It remains a good time to buy a Boulder home, with interest rates remaining at historic lows, the possible federal tax credit for 1st time buyers and many other buyers as well, and home prices at attractive levels.

The Boulder real estate market has fared better than most across the country and was recently recognized as the "Strongest Market in the Country" by BusinessWeek Magazine, with the highest projected ratio of homes that have increased in value over the last year (60%).  Also recently named as the #3 real estate market in the country "...poised for recovery" by Forbes, the Boulder real estate market may just be the place where the stars have aligned for home buyers.

For more information about Boulder real estate or to contact Phil, visit www.BoulderHomeResource.com.