Top 10 Reasons For Denver Real Estate Boom

Monday, May 9th, 2016

Denver, Colorado has been attracting a variety of new residents in recent years, drastically affecting the real estate market. This real estate boom can be attributed to the beautiful mountain views, but we believe it goes deeper than that.

Denver Real Estate

  1. A National Recession Left Real Estate Wide Open

After the 2008 stock-market recession, the people of Denver were left with decreased incomes, salary freezes, and even loss of jobs. As the community went on a spending-hiatus, there was a lot of Denver real estate left just sitting. About four years later, when companies were looking for cheaper rent away from either coast, Denver got caught up in a commercial frenzy.

  1. Tech Startups Moved In

A few years ago, tech companies saw low-rent spaces in Denver and decided to move in. Startup companies like Layer3 TV found Denver the perfect place to get their business started, while businesses like Lockheed Martin also saw Denver as the perfect place to expand. Other businesses caught on and, with more jobs available in Denver, came more residents.

Denver in Rent Territory

Wednesday, July 15th, 2015

House RentalIs it better to buy or rent a home in the Denver market right now?

According to a recent study by the Beracha, Hardin & Johnson Buy vs. Rent Index, Denver is in rent territory, which means that property pricing is out-pacing rents. At the same time, depending on your tax situation, credit score, amount of down payment available, a mortgage could be less than rent. That is why it is extremely important to work with a knowledgeable Reatlor®.

The study looks at 23 U.S. markets and determines whether it’s smarter to buy or rent.

Denver joins Dallas and Houston as the three top markets in rent territory, according to the study. However, keep in mind that if you want to rent, it’s still not going to be cheap. Last month, house rental rates jumped 12 percent compared with the same quarter a year earlier.

Simple Real Estate Definitions : Tax And Insurance Escrow

Thursday, March 8th, 2012

Escrow taxes and insuranceAs a homeowner, your fiscal responsibility extends beyond just making mortgage payments. You must also pay your home’s real estate taxes as they come due, as well as your homeowners insurance policy premiums.  Failure to pay real estate taxes can result in foreclosure.  Failure to insure your home is a breach of your mortgage loan terms.  There are two methods by which you can pay your real estate tax and homeowners insurance bills.

The first method is to pay your taxes and insurance as the bills come due, usually semi-annually.  Depending on your home’s tax bill size and the cost to insure your home, these payments can feel quite large — especially if you’ve failed to budget for them properly.

Homebuilders Getting Optimistic; Higher Home Prices Ahead?

Thursday, November 17th, 2011

Housing Market Index 2009-2011Homebuilder confidence continues to rise. Just two months after falling to a multi-month low, the Housing Market Index surged again in November, climbing another three points to 21. It’s the second straight month that the HMI posted a 3-point gain, catapulting the index to an 18-month high.

The Housing Market Index is a monthly report from the National Association of Homebuilders. It’s meant to measure confidence among the nation’s homebuilders, scored on a scale of 1-100. When homebuilder confidence reads 50 or better, it reflects favorable conditions for homebuilders. Readings below 50 reflect unfavorable conditions. The Housing Market Index has not read north of 50 since April 2006.

As an index, the HMI is actually a composite reading — the result of three separate surveys sent to homebuilders each month. The National Association of Homebuilders asks it members about current single-family home sales volume; projected single-family home sales volume over the next 6 months; and current “foot traffic”.

Pending Home Sales Index Slips For 4th Straight Month

Friday, October 28th, 2011

Pending Home SalesNationwide, fewer homes are going under contract to sell. According to the National Association of REALTORS®, the Pending Home Sales Index fell 5 percent last month. September marks the fourth consecutive month in which the index has dropped. 

The Pending Home Sales Index is a monthly index which measures the number of homes under contract to sell, but not yet closed. As such, it’s among the few “forward-looking” housing indicators; a data set meant to predict future home sales. 

80% of homes under contract close within 2 months so, if the September Pending Home Sales Index is to be believed, we should expect home sales to decline through October and November. And that’s before we account for cancelled contracts.

Also from the National Association of REALTORS®, we learn that 18 percent of homes under contract failed to close in September. This is double the failure rate from September 2010 and it, too, should drag Existing Home Sales volume lower this fall.