REALTOR® Magazine-Daily News-Downpayment, Closing Costs Biggest Obstacles

REALTOR® Magazine-Daily News-Downpayment, Closing Costs Biggest Obstacles

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It’s Been a Long Time…

since I’ve posted a blog on WordPress.  Better yet, it’s been a long time since I’ve blogged anywhere.  With the hustle and bustle of life…blogging was not at the forefront of necessities.  My daughter had her 3rd birthday last month.  I’ve been forewarned plenty of times about the sassy 3’s.  She’s definitely sassy.  I cherish every minute of her sassy existence even though it drives me silly at times.  Life is so short.  Just this week I got word of a death of a friend’s mother with whom I spent Thanksgiving with.  She was taken quickly by a relapse of breast cancer.  Then tonight I was informed that my uncle passed away after his battle with prostate cancer.  Yeah…cherish your loved ones.

Being self-employed has allowed me to shift my business efforts to whatever scenario presents itself.  Aside from my employing company of Prudential Colorado Real Estate going through a dba name change to Herman Group Real Estate, it’s been an interesting ride.  Whether it be presenting a market analysis to show a homeowner what their home is currently worth…or presenting an analysis to a homeowner to show them how to quickly build equity and even pay off their home…I’ve been blessed with success.  This week I received written approval from Countrywide (known as a difficult lender in short sales) that one of my short sales has been approved!   I was determined to personally handle the short sale with Countrywide as a personal challenge to see what all of the negative hype was about.  Well…after 4 different buyers along the way I got it done!

Today was the Realtor Rally in Denver.  I shared an exhibit booth with two other colleagues and we received great interest in the UFirst Money Merge Account.  We will be having a Leverage-N-Learn breakfast meeting later this month and we’re excited about the interest.  The fact of the matter is, THIS PROGRAM WORKS!  Whether you have a mortgage or not…as long as you have debt, income and a line of credit (personal or other) IT WORKS!  When I joined UFirst there were limitations on the ability to qualify to use the program.  With the recent changes that have come about in the last quarter…the main limitations a person may have are themselves.  I know to the actual month and year when I WILL BE DEBT FREE.

So, the next thing I’m excited about is my upcoming trip to D.C.  While participating in a women’s conference, we are being given the opportunity to tour the White House.  I’m so excited…I’ve seen it from the street, but I’ve never had the opportunity to tour inside.  Several have asked if we will meet the President and First Lady.  Well, I don’t think they’d commit to sharing that information ahead of time…considering I had to nearly give up my first born child as pre-requisite for security clearance….lol.  This is an awesome opportunity!  Maybe I’ll even blog about it…maybe.

Denver…Best Bang for the Buck??

I can’t take credit for the following information, but I thought it was interesting to read that Denver is one of the top 10 cities where residents can get the most for their money.

Cities Where Your Dollar Goes Furthest

Money goes further some places in the United States than it does in others.

Housing, in particular, has remained most affordable in the South and the Midwest. That’s because of less stringent building, an abundance of land and growing populations in the South, says Daniel McCue, a research analyst at Harvard’s Joint Center for Housing Studies.

To determine the cities that offer the best quality of life for the least amount of money, Forbes magazine calculated the ratios between a city’s median home price and its median household income. It also factored in projected job growth. And it compared median income to Moody’s Economy.com’s cost of living index.

Here are the 10 cities that it found to offer the best value, and the cities that it believes offers the worst value.

Cities Where Residents Get the Most for Their Money

1. Austin, Texas
2. San Antonio, Texas
3. Indianapolis, Ind.
4. Houston, Texas
5. Charlotte, N.C.
6. Columbus, Ohio
7. Dallas
8. Minneapolis/St. Paul
9. Denver
10. Portland, Ore.

Cities Where Residents Get the Least for Their Money

1. Los Angeles
2. Providence, R.I.
3. New Orleans
4. Philadelphia
5. Cleveland
6. New York
7. Milwaukee, Wisc.
8. St. Louis, Mo.
9. Washington, D.C.
10. Sacramento, Calif.

Source: Forbes, Abha Bhattarai (10/10/2008)

Home Improvements

The Home Needs A Lot of Work? GOOD! What an Opportunity!

If there ever were one thing that dissuades people from purchasing a home it would be the necessity to perform a multitude of repairs. After all, who wants to purchase a home and then invest tons of money into repairing the property as well as making the requisite time commitment that such repair work would entail? Now, while this situation may sound dreadful on the surface it is actually a great opportunity for an industrious person.

 

If you think this is an idealized description of the situation, then look at it this way: say the average market value of a similar home in the area is $250,000. The home you are considering purchasing is valued at $190,000 due to extensive repair work that is required. So, before making a decision as to whether or not this home is a viable investment purchase it may be wise to examine what the cost of the repairs will be. If the repair work will cost $30,000 then this is not a negative…it is a huge positive! If you do not believe so then simply do the math: $190k plus $30k equals $220K. Remember, the value of the home after repairs will be in the neighborhood of $250K. So, even with $30k in repair work you will end up with acquiring the home at a $30k discount! This is to say nothing of the equity appreciation the home will eventually accrue.

 

 

Of course, no one wants to purchase a home that is falling apart, but if the required repairs can be overcome by the equity one can acquire then this is far from a bad real estate investment venture.

 

 

 

 

Need Foreclosure Options? Short Sale Your Home

Even if foreclosure numbers for Colorado are inflated, there’s no disputing that the state is experiencing a softening real estate market, which is bad news for those trying to unload their homes quickly.

But some desperate homeowners are discovering they might have an option other than foreclosure. It’s called a “short sale,” and refers to the process of negotiating with a lender or lenders to accept less than what’s owed on a property before the home goes into foreclosure.

A short sale involves a financially strapped seller who owns a house that has declined in value. Also, the sum of the encumbrances — such as a second mortgage — against the house exceed its current market value.

Timing is almost everything in executing a short sale. A lender won’t even consider negotiating one until the homeowner is a month or two behind on payments. On the other hand, waiting three or four months might be too long before initiating the short-sale option. A foreclosure sale already may be in the works.

Short sales, nevertheless, are difficult to execute, requiring a combination of patience, determination, creativity and luck. For the seller, the first step is finding a real estate agent who’s willing to do a short sale, often forgoing the customary commission, and who knows the territory.

While short sales are usually preferable to a foreclosure, they aren’t without risk. A lender who accepts a short sale later may seek a deficiency judgment against the seller for the difference between the loan amount and the sale price, but fellow REALTORS have rarely seen that happen. The lender also may file an IRS 1099 form, reporting the amount of the loan deficiency as income to the seller.

I can’t be sure what the consequences are down the road, so sellers need to seek legal counsel. However, most sellers who sell successfully by way of short sale are just tickled pink that they sold their home.

Market Trends in Denver

For Denver the Days On Market range from 70-120 days. The prices continue to be unchanged. Although you will notice that listing price can change from the sold price. In Denver concessions are being given to buyers in this competitive market, which is good for buyers right now to buy homes. It can be advantagous to both the buyer and seller in the this market. Whether upsizing or downsizing it can be good for buyers right now because they will be able to negotiate on price and ask for down payment assistance or closing cost to be paid by sellers if needed. It is still a Buyers Market in the Denver Metro Area with the large inventory to choose from. We are seeing alot of relocations, investors, upsizing and downsizing occurring in Denver right now.

April 2008 Forbes Magazine named Denver among its “10 Best Cities for Home Sellers”.

While other parts of the country struggle the Denver housing market seems to be rebounding.  Factors that point to a possible metro Denver real estate market rebound:

The number of homes on the market has decreased to a seven months of supply, below the eight-month mark signaling a buyer’s market, a seller’s market is defined as standing inventory with six moth or less supply – great news!

Most builders have drastically slowed down production to get rid of their standing investor in order to survive. This is good news for sellers because their competition is dwindling.

If you have been contemplating purchasing a home now is the time, don’t wait until it is a sellers market again!

Cooling Your Home Naturally

Keeping cool indoors when it is hot outdoors is a problem. The sun beating down on our homes causes indoor temperatures to rise to uncomfortable levels. Air conditioning provides some relief. But the initial costs of installing an air conditioner and the electricity costs to run it can be high. In addition, conventional air conditioners use refrigerants made of chlorine compounds, suspected contributors to the depletion of the ozone layer and global warming. But there are alternatives to air conditioning. This information provides some common sense suggestions and low-cost retrofit options to help you “keep your cool”- and save electricity.

Staying Cool

An alternative way to maintain a cool house or reduce air conditioning use is natural (or passive) cooling. Passive cooling uses non-mechanical methods to maintain a comfortable indoor temperature.The most effective method to cool your home is to keep the heat from building up in the first place. The primary source of heat buildup (i.e., gain) is sunlight absorbed by your house through the roof, walls, and windows. Secondary sources are heat generating appliances in the home and air leakage. Specific methods to prevent heat gain include reflecting heat (i.e., sunlight) away from your house, blocking the heat, removing built up heat, and reducing or eliminating heat generating sources in your home.

Reflecting Heat Away

The most effective method to cool your home is to keep the heat from building up in the first place. Dull, dark colored home exteriors absorb 70% to 90% of the radiant energy from the sun that strikes the home’s surfaces. Some of this absorbed energy is then transferred into your home by way of conduction, resulting in heat gain. In contrast, light colored surfaces effectively reflect most of the heat away from your home.

 

Installing a radiant barrier

Radiant barriers are easy to install. It does not matter which way the shiny surface faces – up or down. But you must install it on the underside of your roof – not horizontally over the ceiling, and the barrier must face an airspace.For your own comfort while in the attic, install the radiant barrier on a cool, cloudy day. Use plywood walk boards or wooden planks over the ceiling joists for support. Caution: Do not step between the ceiling joists, or you may fall through the ceiling.Staple the foil to the bottom or side of the rafters, draping it from rafter to rafter. Do not worry about a tight fit or small tears in the fabric; radiant transfer is not affected by air movement. The staples should be no more than 2 to 3 inches (5 to 8 centimeters) apart to prevent air circulation from loosening or detaching the radiant barrier. Use a caulking gun to apply a thin bead of construction adhesive to the rafters along the seams of the foil barrier. This will make the installation permanent.

Roofs

About a third of the unwanted heat that builds up in your home comes in through the roof. This is hard to control with traditional roofing materials. For example, unlike most light colored surfaces, even white asphalt and fiberglass shingles absorb 70% of the solar radiation. One good solution is to apply a reflective coating to your existing roof. Two standard roofing coatings are available at your local hardware store or lumberyard. They have both waterproof and reflective properties and are marketed primarily for mobile homes and recreational vehicles. One coating is white latex that you can apply over many common roofing materials, such as asphalt and fiberglass shingles, tar paper, and metal.A second coating is asphalt based and contains glass fibers and aluminum particles. You can apply it to most metal and asphalt roofs. Because it has a tacky surface, it attracts dust, which reduces its reflective somewhat.Another way to reflect heat is to install a radiant barrier on the underside of your roof. A radiant barrier is simply a sheet of aluminum foil with a paper backing. When installed correctly, a radiant barrier can reduce heat gains through your ceiling by about 25%. (see box for information on installing a radiant barrier.)Radiant barrier materials cost between $0.13 per square foot ($1.44 per square meter) for a single-layer product with a kraft-paper backing and $0.30 per square foot ($3.33 per square meter) for a vented multiflora product with a fiber-reinforced backing. The latter product doubles as insulation.

Walls

Wall color is not as important as roof color, but does affect heat gain somewhat. White exterior walls absorb less heat than dark walls, and light, bright walls increase the longevity of siding, particularly on the east, west, and south sides of the house.

 

Windows

Roughly 40% of the unwanted heat that builds up in your home comes in through windows. Reflective window coatings are one way to reflect heat away from your home. These coatings are plastic sheets treated with dyes or thin layers of metal. Besides keeping your house cooler, these reflective coatings cut glare and reduce fading of furniture, draperies, and carpeting.Two main types of coatings include sun-control films and combination films. Sun-control films are best for warmer climates because they can reflect as much as 80% of the incoming sunlight. Many of these films are tinted, however, and tend to reduce light transmission as much as they reduce heat, thereby darkening the room.Combination films allow some light into a room but they also let some heat in and prevent interior heat from escaping. These films are best for climates that have both hot and cold seasons. Investigate the different film options carefully to select the film that best meets your needs. Note: do not place reflective coatings on south facing windows if you want to take advantage of heat gain during the winter. The coatings are applied to the interior surface of the window. Although you can apply the films yourself, it is a good idea to have a professional install the coatings, particularly if you have several large windows. This will ensure a more durable installation and a more aesthetically pleasing look.

Blocking the Heat

Two excellent methods to block heat are insulation and shading. Insulation helps keep your home comfortable and saves money on mechanical cooling systems such as air conditioners and electric fans. Shading devices block the sun’s rays and absorb or reflect the solar heat.

 

Insulation

Weatherization measures – such as insulating, weather stripping, and caulking – help seal and protect your house against the summer heat in addition to keeping out the winter cold. The attic is a good place to start insulating because it is a major source of heat gain. Adequately insulating the attic protects the upper floors of a house. Recommended attic insulation levels depend on where you live and the type of heating system you use. For most climates, you want a minimum of R-30. In climates with extremely cold winters, you may want as much as R-49.Wall insulation is not as important for cooling as attic insulation because outdoor temperatures are not as hot as attic temperatures. Also, floor insulation has little or no effect on cooling.Although unintentional infiltration of outside air is not a major contributor to inside temperature, it is still a good idea to keep it out. Outside air can infiltrate your home around poorly sealed doors, windows, electrical outlets, and through openings in foundations and exterior walls. Thorough caulking and weather stripping will control most of these air leaks.

Shading

Shading your home can reduce indoor temperatures by as much as 20°f (11°c). Effective shading can be provided by trees and other vegetation and exterior or interior shades.

 

Landscaping

Landscaping is a natural and beautiful way to shade your home and block the sun. A well placed tree, bush, or vine can deliver effective shade and add to the aesthetic value of your property. When designing your landscaping, use plants native to your area that survive with minimal care. Trees that lose their leaves in the fall (i.e., deciduous) help cut cooling energy costs the most. When selectively placed around a house, they provide excellent protection from the summer sun and permit winter sunlight to reach and warm your house. The height, growth rate, branch spread, and shape are all factors to consider in choosing a tree. Vines are a quick way to provide shading and cooling. Grown on trellises, vines can shade windows or the whole side of a house. Ask your local nursery which vine is best suited to your climate and needs.Besides providing shade, trees and vines create a cool microclimate that dramatically reduces the temperature (by as much as (9°f [5°c]) in the surrounding area. During photosynthesis, large amounts of water vapor escape through the leaves, cooling the passing air. and the generally dark and coarse leaves absorb solar radiation. You might also consider low ground cover such as grass, small plants, and bushes. A grass-covered lawn is usually 10°f (6°c) cooler than bare ground in the summer. If you are in an arid or semiarid climate, consider native ground covers that require little water.

Planning Your Planting

Placement of vegetation is important when landscaping your home. The following are suggestions to help you gain the most from vegetation.

 

• Plant trees on the northeast-southeast and the northwest-southwest sides of your house. Unless you live in a climate where it is hot year round, do not plant trees directly to the south. Even the bare branches of mature deciduous trees can significantly reduce the amount of sun reaching your house in the winter.
• Plant trees and shrubs so they can direct breezes. Do not place a dense line of evergreen trees where they will block the flow of cool air around or through them.
• Set trellises away from your house to allow air to circulate and keep the vines from attaching to your house’s facade and damaging its exterior. Placing vegetation too close to your house can trap heat and make the air around your house even warmer.
• Do not plant trees or large bushes where their roots can damage septic tanks, sewer lines, underground wires, or your house’s foundation.
• Make sure the plants you choose can withstand local weather extremes.

Shading Devices

Both exterior and interior shades control heat gain. Exterior shades are generally more effective than interior shades because they block sunlight before it enters windows. When deciding which devices to use and where to use them, consider whether you are willing to open and close them daily or just put them up for the hottest season. You also want to know how they will affect ventilation.Exterior shading devices include awnings, lovers, shutters, rolling shutters and shades, and solar screens. Awnings are very effective because the block direct sunlight. They are usually made of fabric or metal and are attached above the window and extend down and out. A properly installed awning can reduce heat gain up to 65% on southern windows and 77% on eastern windows. A light colored awning does double duty by also reflecting sunlight.Maintaining a gap between the top of the awning and the side of the house helps vent accumulated heat from under a solid- surface awning. If you live in a climate with cold winters, you will want to remove awnings for winter storage, or by retractable ones, to take advantage of winter heat gain.The amount of drop (how far down the awing comes) depends on which side of your house the window is on. An east or west window needs a drop of 65% to 75% of the window height. A south-facing window only needs a drop of 45% to 60% for the same amount of shade. A pleasing angle to the eye for mounting and awning is 45°. Make sure the awning does not project into the path of foot traffic unless it is at least 6 feet 8 inches (2 meters) from the ground.One disadvantage of awnings is that they can block views, particularly on the east and west sides. However, slatted awnings do allow limited viewing through the top parts of windows. Louvers are attractive because their adjustable slats control the level of sunlight slats control the level of sunlight entering your home and, depending on the design, can be adjusted from inside or outside your house. The slats can be vertical or horizontal. Louvers remain fixed and are attached to the exteriors of window frames.Shutters are movable wooden or metal covering that, when closed, keep sunlight out. Shutters are either solid or slatted with fixed or adjustable slats. Besides reducing heat gain, they can provide privacy and security. Some shutters help insulate windows when it is cold outside.Rolling shutters have a series of horizontal slats that run down along a track. Rolling shades use a fabric. These are the most expensive shading options, but the work well and can provide security. Many exterior rolling shutters or shades can be conveniently controlled from the inside. One disadvantage is that when fully extended, the block all light.Solar screens resemble standard window screens except they keep direct sunlight from entering the window, cut glare, and block light without blocking the view or elimination air flow. They also provide privacy by restricting the view of the interior from outside your house. Solar screens come in a variety of colors and screening materials to compliment any home. Although do-it-yourself kits are available, these screens will not last as long as professionally built screens.Although interior shading is not as effective as exterior shading, it is worthwhile if none of the previously mentioned techniques are possible. There are several ways to block the sun’s heat from inside your house.Draperies and curtains made of tightly woven, light-colored, opaque fabrics reflect more of the sun’s rays than they let through. The tighter the curtain is against the wall around the window, the better it will prevent heat gain. Two layers of draperies improve the effectiveness of the draperies’ insulation when it is either hot or cold outside.Venetian blinds, although not as effective as draperies, can be adjusted to let in some light and air while reflecting the sun’s heat. Some newer blinds are coated with reflective finishes. To be effective, the reflective surfaces must face the outdoors. Some interior cellular (honeycombed) shades also come with reflective mylar coatings. But they block natural light and restrict air flow.Opaque roller shades are effective when fully drawn but also block light and restrict air flow.

Removing Built-Up Heat

Nothing feels better on a hot day than a cool breeze. Encouraging cool air to enter your house forces warm air out, keeping your house comfortably cool. However, this strategy only works when the inside temperature is higher than the outside temperature.Natural ventilation maintains indoor temperatures close to outdoor temperatures close to outdoor temperatures and helps remove heat from your home. But only ventilated during the coolest parts of the day or night, and seal off your house from the hot sun and air during the hottest parts of the day. The climate you live in determines the best ventilation strategy. In areas with cool nights and very hot days, let the night air in to cool your house. By the time the interior heats up, and the outside air should be cooler and can be allowed indoors.In climates with day time breezes, open windows on the side from where the breeze is coming and on the opposite side of the house. Keep interior doors open to encourage whole house ventilation. If your location lacks consistent breezes, create them by opening the windows at the lowest and highest points in your house. This natural “thermo siphoning,” or “chimney,” effect can be taken a step further by adding a clerestory or a vented skylight.In hot, humid climates where temperature swings between day and night are mall, ventilate when humidity is not excessive. Ventilating your attic greatly reduces the amount of accumulated heat, which eventually works its way into the main part of your house. Ventilated attics are about 30°f (16°c) cooler than unventilated attics. Properly sized and placed louvers and roof vents help prevent moisture buildup and overheating in your attic.

Reducing Heat-Generating Sources

Often overlooked sources of interior heat gain are lights and household appliances, such as ovens, dishwashers, and dryers. Because most of the energy that incandescent lamps use is given off as heat, use them only when necessary. Take advantage of daylight to illuminate your house, and consider switching to compact fluorescent lamps. These use about 75% less energy than incandescent lamps, and emit 90% less heat for the same amount of light.New, energy efficient appliances generate less heat and use less energy.Many household appliances generate a lot of heat. When possible, use them in the morning or late evening when you can better tolerate the extra heat. Consider cooking on an outside barbecue grill or use a microwave oven, which does not generate as much heat and uses less energy than a gas or electric range.Washers, dryers, dishwashers, and water heaters also generate large amounts of heat and humidity. To gain the most benefit, seal off your laundry room and water heater from the rest of the house.New, energy efficient appliances generate less heat and use less energy. When it is time to purchase new appliances, make sure the are energy efficient. All refrigerators, dishwashers, and dryers display an energy guide label indicating the annual estimated cost for operating the appliance or a standardized energy efficiency ratio. Compare appliances and buy the most efficient models for your needs.

Saving Energy

Using any or all of these strategies will help keep you cool. Even if you use air conditioning, many of these strategies, may not be enough. Sometimes you need to supplement natural cooling with mechanical devices. Fans and evaporative coolers can supplement your cooling strategies and cost less to install and run than air conditioners.Ceiling fans make you feel cooler. Their effect is equivalent to lowering the air temperature by about 4°f (2°c). Evaporative coolers use about one-fourth the energy of conventional air conditioners.Many utility companies offer rebates and other cost incentives when you purchase or install energy saving products, such as insulation and energy efficient lighting and appliances. Contact your local utility company to see what it offers in the way of incentives.

Cooling Strategies Checklist

cooling strategies to consider :

 

• lighten roof and exterior wall color
• replace/coat roof with bright white or shiny material
• install a radiant barrier
• add reflective coatings to windows
• insulate attic and walls
• caulk and weather strip to seal air leaks
• add shade trees, bushes, or vines
• add exterior awnings and shades
• add interior drapes and shades
• ventilate attic
• increase natural ventilation
• isolate heat-generating appliances
• replace heat-generating appliances
• replace light bulbs with energy-efficient fluorescent’s 

 

Free At Last

Since I’ve been transitioning into a full time real estate professional it’s been a lifestyle adjustment.  I’m embracing the opportunity to become an independent contractor in charge of my own destiny.  This destiny includes an opportunity to spend true quality time with my daughter and to embrace parenting.

This week I had the opportunity to not only spend one-on-one quality time, but to be in charge of MY TIME.  It was a beautiful morning of sunshine and good weather.  While sleeping next to me, my daughter awakened with the usual request for morning milk.  We were in familiar territory, but not our usual.  We spent the night at my mother’s house as part of our transition into our new home.  I can’t wait to close my personal deal on Monday.  Little does she understand that my venture into a new career field was a goal stimulated by my desire to spend more quality time with her.  At the young age of two…it’s just a mom’s routine for her.  

I fixed her the usual oatmeal for breakfast, we got dressed for the day and headed out to her orthopaedic doctor’s appointment.  I was rested assured that my daughter’s lackadaisical pigeoned toed walk will be grown out of in time.  It felt weird that after her appointment that I didn’t have to rush her back to daycare and return to my office.  Instead, we left the doctor and had quality mother-daughter time at IHOP for breakfast.  It’s not often we get to dine out together without dad, especially during the day.  It was a new encounter of public manners without daddy’s input.  She challenged me, checking out my attitude, but it was fun and games for her.  It felt good to not feel “pressed” for time. 

At the curious age of 2, one of her new found questions is, “Eh doin’ mommy?”  When I told her we were going to get her some earrings she started smiling saying “ears? ears?” while tugging on her ears.  We made a quick pit stop at the local mall for her earrings.  She loves to ride in her stroller.  Even though it was a quick in-and-out stop, I could see the joy in her eyes as we went from one place to another.  It made me happy. 

I had good intentions of keeping her with me the full day, but she was soon ready for a nap.  I had more errands to run and figured, I’d be better off letting her get her nap for the day since she would be flying out of town with daddy later in the day.  So, I returned her to daycare and finished my personal business for the day.

It was on this day that I actually felt my first sense of independence in terms of my own destiny.  With real estate I have the flexibility to set my own schedule and I love it!!  I feel FREE AT LAST!!  This is just the beginning of great things to come as I desire them…not only in my real estate business, but in my relationship with a child whose life I am in charge of.  I’m so excited!!

Some Home Prices Are Actually Rising in Denver

I must give credit where credit is due.  The following is an article published on US News & World Report.  With Denver being at the top of foreclosures, I think this is very informative.  Take a look!

By Luke Mullins

Posted April 4, 2008

With all the horror stories about souring mortgages and plummeting home prices, it’s easy to conclude that the housing crisis has hit each American neighborhood with equal force. But that’s not at all the case, says Ryan Tomazin, the director and chief financial officer of Integrated Asset Services, which tracks real estate prices for banks, investors, and others. Using the company’s proprietary data, Tomazin explores the striking divergence of home prices within the state of Colorado and argues that the alarm over falling home values at the national level has overshadowed local pockets of surprising strength. He spoke with U.S. News. Excerpts:

What are you seeing in the real estate market that most people aren’t aware of?
Historically, the number of defaults and delinquencies is less than 1 percent of most banks’ and servicers’ loan portfolios. I just saw the numbers out yesterday, and I think it’s nearly 8 percent of all mortgages out to date are in default, and more than 5 percent are in some phase of foreclosure. That clearly tells you that there are a lot of people not making payments and are in trouble. But home values are not exactly following that trend globally. We’ve got some very, very hard hit and depleted areas that are dragging down the national average.

How is that trend playing out in Colorado, where home prices have dropped some 4.7 percent over the past year?
In the context of Colorado, we’ve got a state that is definitely down; we’ve got record foreclosure rates in every county. But there are still people selling homes; there are still very strong areas within the city and within the state. And within those submarkets, it really is determined upon where you are in a neighborhood or even a part of the city. It’s not that if you live in the state of Colorado, you should expect that your home value is down.

Let’s look at a specific area. What’s happening in Denver, where prices overall have dropped more than 5 percent in the past year?
As a whole, it’s down. We’re seeing historic all-time highs for foreclosures, all those types of things that are currently the storylines. But within the city, there are areas that are very hard hit in Denver, and yet there are areas that have been relatively unaffected or even appreciating.

The map reflects the price change for detached, single-family homes over the past year, according to Integrated Asset Services. Why are the property values of some neighborhoods [those in green or blue] rising?
In Denver specifically, what we’re seeing is there are some neighborhoods that are very valuable—old historic neighborhoods. Their values have historically held up just because there is a limited supply. They are located very centrally, and they are in fairly affluent areas.

What about the neighborhoods in red?
Denver had some of the most unregulated lending practices in the country. And many of the borrowers in these areas are not able to meet the new payments of the adjustable-rate mortgages.

What do you expect home values in the green areas to do in the future?
I would expect that the green continues on a positive track, although a lesser positive track. The biggest thing is going to be the recession conversation that’s really affecting that group, because they are very market susceptible.

How about the red areas?
The red are going to see a flattening. I think they’ve seen their depreciations for the most part. If anything, I think there will be an improvement with rates over the next 12 to 24 months, which reintroduces the affordability. The tentative terms of the [housing bill] that is being discussed currently involve things like incentives for foreclosure purchases, and I think that really helps to flatten any sort of depreciation and may in some areas actually turn some of them back into a small positive over the next six to 12 to 18 months.

So you think home prices in Denver are bottoming?
It is in the bottoming stages. A lot of that does have to do with what the mortgage industry is trying to do to get people back to the table to purchase homes. That being said, there is some inventory to work off here. But as we work off some of this inventory, buyers are coming back to the market.

What are you seeing at the state level?
Most of Colorado is pretty good. But so much of the population is centered in Denver that that drives that overall state number [down].

The map reflects the price change for detached, single-family homes over the past year, according to Integrated Asset Services.

What’s behind the divergence in home prices in the various parts of the state?
In Grand Junction, there is a mountain effect. The mountain effect is caused by second-home buyers—typically very affluent. Those types of groups are fairly risk averse relative to pricing changes. It’s a supply/demand issue there. And then Grand Junction also has an economic boom because of the oil and gas industry. When you go north into the Fort Collins-Greeley area, that’s an area that was hit hard 18 to 24 months ago. Since then, two major employers have moved into the area, stabilizing the economy and bringing in external growth. Colorado Springs, on the other hand, has had the opposite kind of trending in the last 12 to 18 months. They have lost some key employers, and they may just be on the first part of some reductions in price appreciation.

New Blog Site

Well I was a little disappointed when I signed into my Blogsavy account and was informed that they were going to be doing MAJOR maintenance and even encourage switching to another blog hosting site.  It read:

“IMPORTANT! EFFECTIVE APRIL 10TH, BLOGSAVY WILL BE UNDERGOING MAJOR MAINTANCE. UNFORTUNATELY THIS WILL REQUIRE A DISRUPTION OF OUR SERVICE, THINGS LIKE THEMES AND PLUGINS WILL BE REMOVED/BROKEN DURING THIS PROCESS. WE HAVE BEEN FIGHTING ISSUES WITH THE CODING OF WPMU, THE SOFTWARE USED TO POWER YOUR BLOGS, AND FEEL THAT WE HAVE NO ALTERNATIVE OTHER THAN TO COMPLETELY OVERHAUL OUR SERVICE WHICH MAY RESULT IN DOWNTIME.

I’D SUGGEST THAT YOU PLEASE USE THIS TIME TO MIGRATE TO ANOTHER BLOG HOST PROVIDER, OR TO YOUR OWN HOSTING UNLESS YOU ARE COMPLETELY OK WITH INSTABILITY AND/OR UGLY BLOGS DURING THIS PROCESS AND, WORST CASE, POTENTIALLY LOSING DATA AND/OR YOUR ENTIRE BLOG.”

What a bummer…just when I was getting familiar with all of the gadgets.  Oh well, blogging goes on.  I hope WordPress doesn’t let me down.   I’ll import old blogs and be back later to write a real blog.