Denver housing bucks trend

John Rebchook

, Denver Real Estate Examiner

December 27, 2011 - Like this? Subscribe to get instant updates.

While much of the nation's housing market is weakening, the Denver-area housing market is moving in the other direction.

The most recent example of Denver's strenghtening market is today's S&P/Case-Shiller Home Price Indices, probably the most closely watched national real estate report.

It shows that on a year-over-year basis, at the end of October, the overall Denver market fell by 0.9 percent. That is a fraction of the 3.4 percent year-over-year drop overall for the 20 major metropolitan statistical areas tracked by Case-Shiller. It also is the lowest percentage drop for the the Denver metro area in 15 months.

In September, for example, the Denver-area market had dropped by 1.5 percent from September 2010.

Lane Hornung, co-founder, President and CEO of 8z Real Estate and COhomefinder.com, says the Denver-area housing market is experiencing a "slow-motion recovery."

While year-over-year comparisons are generally considered a better indication of the market than month-to-month changes - as they can be influenced by seasonal factors, from September to October, the Denver-area market did even better.

Continue reading on Examiner.com Denver housing bucks trend - Denver Real Estate | Examiner.com http://www.examiner.com/real-estate-in-denver/denver-housing-bucks-trend#ixzz1i1z3Fbwe

Continue reading on Examiner.com Denver housing bucks trend - Denver Real Estate | Examiner.com http://www.examiner.com/real-estate-in-denver/denver-housing-bucks-trend#ixzz1i1ytEpAL




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Fannie Mae, banks halt foreclosures for the holidays

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By Les Christie @CNNMoney December 1, 2011: 4:11 PM ET

NEW YORK (CNNMoney) -- Happy holidays struggling homeowners! Fannie Mae, Freddie Mac and several large mortgage lenders have pledged not to foreclose on delinquent borrowers during the Christmas season.

For homeowners with loans through Fannie Mae (FNMA, Fortune 500) and Freddie Mac (FMCC, Fortune 500), the moratorium will run from Dec. 19 to Jan. 2. During this time, legal and administrative proceedings for evictions may continue, but families will be allowed to stay in their homes, Fannie said in a statement.

"No family should have to give up their home during this holiday season," said Terry Edwards, an executive vice president for Fannie Mae.

Among some of the major banks that offer mortgage loans, Chase (JPM, Fortune 500) Mortgage said it will not evict anyone between Dec. 22 and Jan. 2. Wells Fargo (WFC, Fortune 500) will also suspend evictions during that period, but will not shut down its eviction machinery entirely.

The bank said it will observe the moratorium on foreclosed properties in its own portfolio but for loans it services for other lenders "foreclosure-related actions may still occur."

Bank of America (BAC, Fortune 500) said that it would "avoid foreclosure sales or displacement of homeowners or tenants around the Thanksgiving and Christmas holidays."

Why Fannie/Freddie execs get paid a lot

However, that policy only applies to loans the bank itself owns. Like Wells Fargo, it will also honor the wishes of the owners of the loans it services, which could mean moving forward with certain foreclosures.

Fed sees ‘slightly’ improved economy in Colorado region

Denver Business Journal by Heather Draper, Reporter

Date: Wednesday, October 19, 2011, 4:05pm MDT

Related:

Manufacturing, Banking & Financial Services, Commercial Real Estate, Retailing & Restaurants, Economic Snapshot

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Heather Draper

Reporter - Denver Business Journal

Email | Facebook | Twitter | Finance Etc. blog

The economy in Colorado and neighboring states “improved slightly” in late August and September, the U.S. Federal Reserve reports in its latest “Beige Book” survey of the region’s business executives.

The Fed’s Kansas City-based 10th District, which includes Colorado and some or all of six neighboring states, was among 10 of the 12 Fed districts nationwide that registered modest or slight growth in the six-week period covered by the Beige Book. Growth was slower or non-existent in the Richmond and Philadelphia districts.

The Beige Book is based on interviews with a sample of business executives representing key industries in each district. The reports are anecdotal and do not contain statistics, but they are widely followed and help the Fed to set national economic policy.

According to the latest 10th District Beige Book, consumer spending increased in the retail and auto sectors, but declined slightly in the restaurant and travel sectors.

“Luxury goods, such as jewelry and custom-upholstered furniture, sold particularly well,” the report said.

Manufacturing activity rose at durable goods factories, and the high-tech services industry experienced strong growth, while transportation activity was flat.

Residential and commercial real estate and construction contacts continued to report weak conditions. Multi-family building projects were the only area of reported growth by commercial construction contacts.

The energy sector expanded further with production increasing for oil, natural gas and coal, according to the report.

Bankers in Colorado and neighboring states reported increased deposits, but somewhat weaker loan demand and a slight deterioration in loan quality.

Read More: http://www.bizjournals.com/denver/news/2011/10/19/fed-sees-slightly-improved-economy.html

Ten Best Cities for Buying Investment Property

Jason Hartman Recommends

Ten Best Cities for Buying

Investment Property

While many average Americans are skittish about the housing market, the country's richest citizens see current conditions as perfect for buying income properties

Irvine, CA (PRWEB) October 19, 2011

Buying investment property is the best possible way to invest your money and now is the time, according to wealth creation expert Jason Hartman. Not only does purchasing income property allow the investor to borrow the financing(leveraging debt and inflation), it allows the investor to “outsource” his mortgage payments to the tenant while ultimately earning the investor rights to a free and clear title.

“Tens of thousands, if not hundreds of thousands, of people are quietly creating wealth every year because they pulled their money out of the stock market, which has had no real gains in years, and put it to work with income property investing,” said Jason Hartman, founder of Platinum Properties Investor Network and host of The Creating Wealth Radio Show. “Time and again, history has proven that income property investments are most the historically proven way to create long-term wealth.” Hartman notes the philosophies of investment icons including Robert Kiyosaki, Donald Trump and Warrent Buffett as examples of such wealth creation.

Considering that 85 percent of all wealthy Americans built their fortunes with real estate investments, Jason Hartman shares his top ten picks in the U.S for purchasing income-producing property:

1. Atlanta - The only way to describe the hand-picked Atlanta submarkets we recommend is “exceptional.” When it comes to American cities, Atlanta is a story for the history books. First founded as a railroad hub of the southern states, it refuses to stop growing at an exponential pace while attracting numerous Fortune 500 corporate headquarters. Its population continues to grow by the millions while the number of transplant professionals looking for rental homes surges by the week.

2. Dallas - Not only home to all kinds of cowboys, Dallas is continuously rated as one of the best cities in America for business and real estate by Forbes and numerous business journals. Its market-friendly approach, favorable tax climate, proximity to freeways, large renter population and high quality of life promise a bright present—and future—for real estate investors.

3. Phoenix - When it comes to return on investment, “The Valley of the Sun” just won't quit. Not only does Phoenix continue to attract dozens of Fortune 500 and Fortune 100 companies, but the ratio of affordability to rental income potential is one of the best in the country. Phoenix is the 5th largest metro area in the United States and is sunny year-round.

4. Indianapolis - Combine a low cost of living, a bunch of the top sports franchises, ever-increasing recommendations by Forbes magazine and increasing employer presence. this is the gold mine that is Indianapolis. When a city in the Midwest manages to lead job growth nationwide in the midst of a massive economic recession, you should take notice if you are ready to buy income properties. They call it “The Crossroads of America” for good reason.

5. St. Louis - Home to very proud residents that welcome a surprising amount of tourism and visitors each year, St. Louis is beginning to impress investors. With a ton of top American corporate headquarters and a wide variety of healthy industries from manufacturing to high-tech, this jewel of Missouri is worth a look.

6. St. Robert - Perhaps the less famous Saint of Missouri, but the often unrecognized leader of regional commerce in this part of the country is St. Robert. Located just off Interstate 44 and supported in part by the stability of Fort Leonard Wood, the local military base, St. Robert has one of the highest predicted growth rates in coming years for American jobs.

7. Denver - The mile-high city first made famous during and after the gold rush and push West, Denver continues to attract adventurers, transplants and business investors. Named the 2nd best place to live by Sperling's due in part to its year-round entertainment and activities, it also keeps impressing Forbes (among others) as a promising investment market. Add well-run local government with ambitious infrastructure projects, a large “creative class” and rapid private-sector growth and you have an idea of the massive potential that Denver has to offer.

Read More: http://m.benzinga.com/pressreleases/11/10/p1997571/jason-hartman-recommends-ten-best-cities-for-buying-investment-property

It's Time to Buy That House

Online.wsj.com —Jack Hough is a columnist at SmartMoney.com

U.S. house prices have plunged by nearly a third since 2006, and homeownership rates are falling at the fastest pace since the Great Depression.

The good news? Two key measures now suggest it's an excellent time to buy a house, either to live in for the long term or for investment income (but not for a quick flip). First, the nation's ratio of house prices to yearly rents is nearly restored to its prebubble average. Second, when mortgage rates are taken into consideration, houses are the most affordable they have been in decades.

Two of the silliest mantras during the real-estate bubble were that a house is the best investment you will ever make and that a renter "throws money down the drain." Whether buying is a better deal than renting isn't a stagnant fact but a changing condition that depends on the relationship between prices and rents, the cost of financing and other factors.

But the math is turning in buyers' favor. Stock-oriented folks can think of a house's price/rent ratio as akin to a stock's price/earnings ratio, in that it compares the cost of an asset with the money the asset is capable of generating. For investors, a lower ratio suggests more income for the price. For prospective homeowners, a lower ratio makes owning more attractive than renting, all else equal.

Nationwide, the ratio of home prices to yearly rents is 11.3, down from 18.5 at the peak of the bubble, according to Moody's Analytics. The average from 1989 to 2003 was about 10, so valuations aren't quite back to normal.

But for most home buyers, mortgage rates are a key determinant of their total costs. Rates are so low now that houses in many markets look like bargains, even if price/rent ratios aren't hitting new lows. The 30-year mortgage rate rose to 4.12% this week from a record low of 3.94% last week, Freddie Mac said Thursday. (The rates assume 0.8% in prepaid interest, or "points.") The latest rate is still less than half the average since 1971.

Read More: http://online.wsj.com/article_email/SB10001424052970204774604576629443313035736-lMyQjAxMTAxMDEwNjExNDYyWj.html?mod=wsj_share_email_bot

Rate on 30-year mortgage falls to record 4.01 pct.

Rate on 30-year mortgage falls to record 4.01 pct. By DEREK KRAVITZ AP Real Estate Writer

WASHINGTON (AP) -- Fixed mortgage rates have fallen to historic new lows for a fourth straight week and are likely to fall further. The average on a 30-year fixed mortgage fell to 4.01 percent from 4.09 percent this week, Freddie Mac said Thursday. That's the lowest rate since the mortgage buyer began keeping records in 1971. The last time long-term rates were lower was in 1951, when most long-term home loans lasted just 20 or 25 years. The average on a 15-year fixed mortgage, a popular refinancing option, ticked down to 3.28 percent. Economists say that's the lowest rate ever for the loan. Mortgage rates tend to track the yield on the 10-year Treasury note. The 10-year yield has risen this week to around 2 percent. A week ago, it touched 1.74 percent - the lowest level since the Federal Reserve Bank of St. Louis started keeping daily records in 1962. As recently as July, the 10-year yield exceeded 3 percent. Rates on mortgages could fall further after the Federal Reserve announced last week that it would take further action to try to lower long-term rates. Still, low rates have so far done little to boost home sales or refinancing. Many would-be buyers or homeowners don't have enough cash or home equity to get a new loan. High unemployment, scant wage gains and debt loads represent a heavy burden for many people. Others can't qualify. Banks are insisting on higher credit scores and 20 percent down payments for first-time buyers. This year is shaping up to be among the worst for sales of previously occupied homes in 14 years. Few are buying, even though the average rate on the 30-year fixed mortgage has fallen to around 4 percent. A drop in mortgage rates could provide some help to the economy if more people could refinance. When people refinance at lower rates, they pay less interest on their loans and have more money to spend. Consider a homeowner who owes $250,000 and is paying 5.09 percent on a 30-year fixed mortgage. That was the average rate being offered in January 2010. Refinancing the loan at 4.01 percent could save him or her roughly $2,000 a year. But many homeowners with good jobs and stable finances have already refinanced over the past year as rates have fallen. The average rate on the 30-year loan fell to new lows in November, August and again this month. Homeowners also typically pay a few thousand dollars in closing costs when they refinance. And the low rates being offered don't include extra fees, which many borrowers must pay to get the rates. Those fees are known as points; one point equals 1 percent of the loan amount. Read More: http://hosted.ap.org/dynamic/stories/U/US_MORTGAGE_RATES?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2011-09-29-15-43-28

Foreclosure starts surge in Western states

ForeclosureRadar: BofA ramping up filings against delinquent homeowners

BY INMAN NEWS, TUESDAY, SEPTEMBER 13, 2011.

Inman News™

Flickr/respres

Foreclosure starts jumped by double digits from July to August in four out of five Western states tracked by ForeclosureRadar, reversing what had been a declining trend over the past several months, the company said.

The increase in foreclosure starts seen in Arizona, California, Nevada, Oregon and Washington appeared to be driven primarily by Bank of America and related companies, which boosted notice of default and notice of trustee sale filings by 116 percent from July to August.

Wells Fargo and US Bank also ramped up foreclosure start filings, ForeclosureRadar said, while filings by JP Morgan Chase and Citibank were essentially flat, ForeclosureRadar said.

In California, foreclosure starts jumped nearly 70 percent from July to August, totaling 31,965 -- the highest level in a year. The average time to foreclose in California increased to 333 days in August, 49 days longer than a year ago.

Notice of trustee sale filings were up more moderately, rising 6 percent from July to August but still down nearly 24 percent from a year ago at 24,020.