Jude's Real Estate Rumblings

An article from RealtyTimes.com, reports that Americans have been scared by economists that housing still has a long way to go before it hits bottom, which puts the housing industry in a tough spot.  Realtors, builders and sellers need to convince buyers that now is a good time to buy.  Also, the industry needs to prove to buyers that purchasing real estate is still a sound investment.  Buyers are on the sidelines because they are so focused on the risk, they are missing out on the rewards.  Unlike any other investment, homeownership is heavily subsidized by the U.S. government in tax relief, which more than offsets most if not all equity losses incurred by falling markets.  Yearly tax benefits can more than make up for temporary losses in equity.  If renters are waiting to buy, they are losing money. http://realtytimes.com/rtpages/20080509_realtyviewpoint.htm

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An article from the Denver Business Journal, reports that on May 7, the Everest Development Co. will hold a public grand opening for the first units at its high-end The Landmark condominium towers in Greenwood Village.  Construction on the 15-acre project started in 2005 and was a finalist for the NAHB's 2007 community of the year award for its product type.  Included in the project's $160 million first phase is 2 condo towers with a total of 250 units, plus a 168,000-square-foot retail center called The Village Shops at The Landmark.  According to the Regional Transportation District's 2007 transit-oriented development report, The Village Shops is scheduled to be completed this year.  The Brownstones, a second phase of the project, is slated to include 160 townhomes and 10 single-family homes.  The Landmark website states the Brownstone units are being offered for $1.5 million to $2.7 million. http://www.bizjournals.com/denver/stories/2008/04/28/daily18.html?b=1209355200^1627747

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An article from RISMedia.com, reports that when it comes to converting Internet leads, speed matters.  One reason to act quickly on an Internet lead is because Internet buyers demand instant gratification.  When buyers complete a form to get more information, they want that information now.  Another reason to take care of an Internet lead right away is that Internet leads are not exclusive.  On average, Internet real estate buyers visit five sites and fill out three request forms.  According to a report by the California Association of Realtors, 90% of buyers end up doing business with the first person who responds.  The first company to respond is much more likely to win the client.  Finally, Internet leads have lower conversion rates than traditional leads.  By responding right away to an Internet lead, the agent can develop a relationship with the client before they have an opportunity to make additional inquiries from another company.
http://rismedia.com/wp/2008-04-29/slow-to-respond-3-good-reasons-to-act-fast-on-internet-leads/  

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An article from the Wall Street Journal Online, reports that under a proposal introduced the the Federal Deposit Insurance Corp. to help stem foreclosures, struggling U.S. homeowners could receive federal loans to pay down as much as 20% of their principal.  The program would depend on the willingness of mortgage servicers and investors to agree to restructure troubled loans, as well as to pay the financing cost of making the federal loans.  The FDIC said in a document outlining the plan, "Only the federal government is in a position to help arrest the downward cycle in housing markets by facilitating temporary aid to borrowers facing financial difficulty and encouraging widespread restructuring of unaffordable mortgages."
http://online.wsj.com/article/SB120959995720957839.html?mod=RealEstateMain_1

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An article from RealtyTimes.com, reports that HopeNow's foreclosure prevention efforts and FHASecure loans aren't the only resources for those faced with the prospect of losing their home.  The National Community Reinvestment Coalition's (NCRC) National Homeownership Sustainability Fund helps financially struggling families with high-risk mortgages and senior citizens in trouble with reverse mortgages or other high-cost loans.  A Foreclosure Prevention Resource Center is offered by the Mortgage Bankers Association's Home Loan Learning Center.  Soldiers and sailors can contact their unit leader or the legal assistance office on base to learn more about the Soldiers and Sailors Civil Relief Act.  As always, at the first sign of trouble that could mean a missed mortgage payment, contact the lender for help with workouts, restructuring, modifications, refinanced mortgages and short sales or other assistance. http://realtytimes.com/rtpages/20080501_lesserknown.htm

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A story from cbs4denver.com, reports that John Covert of Greenwood Village-based Metrostudy said of Denver area housing, "The best way to look at this is that we know we're going to come out of this eventually."  When it comes to the housing market, the Denver metro area is as diverse as any in the country.  Some areas are caught in the foreclosure crisis, while others with high-priced homes and neighborhoods are experiencing rising home prices and sales.  According to Covert, builders are a good gauge on what's ahead.  Currently, housing starts are way off the pace of the past few years, but they may drop to their lowest point this year.  He said, "Basically they're not starting a house unless it's sold.  The problem is that there's so much resale inventory in the market right now that people can't sell their house to buy a new house.  So builders are left with a lot of canceled contracts and trying to manage that whole scenario as well."  Later this year, Covert believes data will show builders it's time to start building again.  He added, "We'll get to a point where we'll just have to build more homes, especially if we're creating the same number of jobs and the same number of people outside the market into Denver."
http://cbs4denver.com/business/denver.housing.market.2.713092.html

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Unmarried surviving spouses of veterans are eligible for VA loans, provided the deceased veteran was eligible.  VA loans provide 100% financing, with no mortgage insurance, at low interest rates.  These are particularly good loans at the moment because VA loans are not subject to any restrictions in declining markets.

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An article from the Rocky Mountain News, reports that changes are on the way for Buckley Air Force Base with the addition of hundreds of personnel and more than two dozen major construction projects in the works or planned.  John Spann, of the base's public affairs office said, "We are one of the fastest-growing Air Force bases in the country.  The missions here at Buckley are constantly changing."  One plan that is in the works is the addition of 800 people assigned to Buckley over the next three years, a combination of enlisted, private and contractor jobs.  That includes about 600 workers at the Air Force Air Reserve Personnel Center near Lowry who will move to Buckley by 2011.  Other plans, according to the Air Force, include a $30 million building for temporary lodging, a $1.42 million kennel for military dogs, a $5.5 million training center and a $10.7 fuel-distribution complex "required to accommodate the new development."  According to Aurora Mayor Ed Tauer, the added military and civilian jobs are great for the local economy, but it's the quality of people the jobs attract that matters more.  Tauer said, "To get the extra jobs is great, but more important, it says the Air Force has a long-term commitment to Buckley."
http://www.rockymountainnews.com/news/2008/may/05/booming-times-at-buckley/

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An article from the Boulder Daily Camera, reports that starting next month, 1 of 2 new Boulder County housing counselors will be taking appointments at the Broomfield City and County Building.  The National Foreclosure Mitigation Counseling Program awarded the Boulder County Housing Authority a $154,487 federal grant to enable it to reach struggling homeowners in areas with high foreclosure rates.  Boulder County Housing counseling coordinator Christopher Hudak said, "Broomfield was chosen for its high foreclosure rate per capita.  What housing counseling does is help people negotiate the maze of foreclosure options and facilitate discussions."  The specialists will offer foreclosure prevention counseling, as well as teaching consumers how they can repair their credit and learn more about home ownership, reverse mortgages and other housing options.   Due to the escalating rate of foreclosures, the emphasis has been put on prevention.
http://www.dailycamera.com/news/2008/may/01/helping-hand-for-housing-has-new-home/

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