With apologies to Charles Dickens (A Tale of Two Cities), that pretty well describes our economy. Some are faring well. Too many are not. We continue to hear sordid tales (that would make Dickens proud) of woe and greed, whether from captains of our industry or from the trenches.
DSWNews.com reports from a Trulia survey that 1 in 4 renters NEVER want to own a home. The American Dream of Homeownership has become a nightmare for many. Smaller homes are becoming more popular and 68% of the renters will wait 2+ years before buying a home. Looks like opportunities for landlords or ll wannabees. Is there a reality landlord show yet?
Want more? A MIT study shows that Foreclosure Lowers a Property’s Value by 27%. We’ve known that, it’s the high number that surprises me!
But wait, there’s more: 2010 mortgage costs are up 36.6% over 2009! What/who is costing/charging more? Appraisals, title companies, and lenders, per the report. Ouch!
To help you better understand what’s going on, please read Bill Gross’ comments on our housing crisis: why decline? How to stop it, why gov’t mortgage subsidies can hasten recovery, and the bubble (20% hit). A follow-on article says economy maverick Gross may get his wish: OUR GOV’T WILL TAKE STEPS TO STABILIZE AND INCREASE HOUSING. The same Bill Gross started a White House Housing Summit meeting Aug 18 telling Obama to “order Fannie Mae and Freddie Mac to refinance all outstanding mortgages that they back…into today’s historically low interest rates.” !!!
So, what happened to the good news? Oh, INTERST RATES REMAIN LOW. They are hovering around 4.5% on 30-year fixed and 3.5% on 5/1 ARMs. Rates remain at/near record lows!
Every few months I like to take a walk through our countryside and sample the CHEAP HOME Market. The good news is that most of these are NOT junkers! Courtesy of realtor.com, residential houses under $30,000 partial list:
Atlanta: 93 homes Philadelphia: 454
Boston: 219 Chicago: 171
Milwaukee: 116 St Louis: 114
Kansas City: 108 Tampa: 114
Orlando: 234 Dallas: 156
Phoenix: 98 Las Vegas: 59
Aside from Philly, Orlando is the place to be; knock 3 times.
REAL ESTATE WEATHER REPORT
Has residential real estate become a commodity? Will real estate agents go the way of the hula hoop? Some think agents are becoming “order takers” and providing little value to the booming internet savvy homebuyers. More and more homeowner-to-be’s (I hear numbers approaching 90%) look at properties on the internet before contacting anyone. Colorado agent numbers continue to fall. How long? How far? I hear that our appraiser population is down 33%; is the appraisal becoming a dinosaur?
At our Breakfast Club last Saturday a local landlord made a distinction between rental signs vs internet rentals (Craigslist.org). Specifically, potential tenants within a 1 mile radius of Federal and Alameda respond to signs, not the internet. Different ‘hoods drive different rental techniques.
Good local news: Vacancies down, rents up.
More good local news: Bankrate.com reports Colorado ranks 12 in low mortgage closing costs. (NY is #50)…now if we can just get a loan….
It’s a broken record…retail residential sales are sluggish. Showings are down, especially in the under $150K market. You can still flip, just be patient. Many investors don’t understand how you can buy and hold with no money out of pocket; some investors even get cash back. Yes, you can still do “it” in Denver!
Call us with tips, rumors, conjectures, and cold cases (we’re thirsty!). We appreciate feedback on both our Newsletter / Blogs and Breakfast Club meetings (Sept 11). If you’re not on our list and want to be on it, LET US KNOW (or Let it Snow!). Call, Write, E-mail. Thank you for helping us help you!
INVENTORY
The deals are still out there. More investors are working with hard money. Call us, 303 338-8000, for more information or with questions. FU and ARV are estimates. Actual results may vary.
Website tutorial: ALL properties we have listed are Under Contract. We only have two sections: FOR SALE and SOLD. If we do NOT have a buyer, they go in the FOR SALE section. If we have a buyer and are waiting to close, they go in the SOLD section.
8500 Franklin St, Thornton. HUD. 4 bedrooms, 2 baths, 1 car garage. Buy at $106K, fix at $18K with a $175 ARV. We expect this to go quickly so call or check the link before viewing.
11192 E 7th Ave, Aurora. HUD. 3 bedrooms, 1 bath, 1 car garage. Buy at $65.5K and fix to flip at $18K fix up OR keep this as a rental ($10-12K fix up) until our retail sale market recovers. Cash flow should be extraordinary ($300+/mo).
Bon Homepetit!
John Fisher
303 338-8000
QUOTE OF THE WEEK: People rarely succeed unless they have fun in what they are doing. ~Dale Carnegie
Success is getting what you want; happiness is wanting what you get. ~Dale Carnegie
