January 2010
Throw Out Your “Chip Clips”. Get The Banana Seal.
January 23, 2010 by Real Estate News · Leave a Comment
If you’ve ever used a plastic Chip Clip and been miffed that your chips went stale anyway, you have to see the Banana Seal. Its beauty is its simplicity.
Similar to the tongue-in-groove seal created by zip-top bags, the Banana Seal creates an airtight seal on bags of all sizes. Chips stay crunchy, vegetables stay fresh, and freezer-burned food becomes a problem of the past.
The people of Banana Seal made a promotional video that shows the product in action. It’s a little bit over-the-top in “sales mode”, but gives some good ideas on how the Banana Seal works. Aside from the obvious refrigerator, freezer and pantry uses, the video shows how Banana Seal can be used outside of the kitchen, too.
Buy an 18-pack of Banana Seal for less than $20 from Amazon.com.
Housing Permits Spike For The Second Straight Month
January 22, 2010 by Real Estate News · Leave a Comment
A “Housing Start” is a privately-owned home on which construction has started. It’s an important gauge of housing health because it tracks new housing stock nationwide.
In December 2009, starts fell by nearly 7 percent.
The news is mildly disappointing but not too bad. The likely cause for the Housing Starts drop is December’s rough weather conditions. It’s tough to break ground when Mother Nature won’t coordinate and last month was especially hazardous in a lot of parts of the country.
More cheery, however, is that for the second straight month, Housing Permits exploded.
A housing permit is an certification from local government that authorizes construction. After posting a 7 percent gain in November, permits rose by another 8 percent in December.
It’s a signal that housing is, indeed, in recovery — despite the falling number of actual starts. More permits mean that builders plan to bring more homes on the market for what’s expected to be a very busy spring home-shopping season.
According to the Census Bureau, 82% of homes start construction within 60 days of permit-issuance. Therefore, Housing Starts should start rising soon anyway.
For home buyers, the news couldn’t be better.
With more homes coming online, competition among home sellers should increase, and that will suppress the rise in home prices in Englewood and nationwide.
It’s basic economics. When home supplies grow faster than home demand, prices fall.
Denver Real Estate Price Change Analysis and Influx Index
January 21, 2010 by Janet Marlow · Leave a Comment
This graph demonstrates the average sold price per square foot by month during the years 2007 through 2009. The normal bell curve shown in 2007 was clearly disrupted in 2008 and 2009. The average price per square foot has leveled off in the latter half of 2009 as the market continues to struggle for stability.
This graph demonstrates the average sold price per square foot by month for the years 2007 through 2009. The normal bell curve last appearing in 2007 has been replaced by very erratic price swings in 2008 and 2009. The condo market will take longer to stabilize than the detached home market.
Both of the above graphs show the peak months for sales in the Denver area. While detached homes peak in May before declining, the condo market stays at a peak level through the summer months. The price change analysis and seasonal influx index show that the best time to buy a home based on price is January of any given year.
Spring 2010 FHA Guidelines Make Borrowing Tougher And More Expensive
January 21, 2010 by Real Estate News · Leave a Comment
Securing an FHA mortgage in Colorado is about to get more expensive.
In a statement issued Wednesday, the Federal Housing Authority outlined policy changes to its mortgage assistance program. The shift is meant to both reduce the government group’s portfolio risk while strengthening its overall financials.
For consumers, the changes mean higher costs.
As listed in the official announcement, there are 3 major guideline updates for the FHA:
- Upfront mortgage insurance premiums are increasing to 2.25% from 1.75%
- Minimum downpayments for applicants with sub-580 FICOs are rising to 10 percent
- Seller concessions are being limited to 3%, down from today’s allowable 6%
Furthermore, the FHA has appealed to Congress to raise an FHA borrowers’ monthly mortgage insurance premiums.
To read the FHA’s statement, it’s clear what the group is trying to balance. On one side, the FHA wants to provide affordable financing to families that need it. That’s its mission statement. On the other side, though, the FHA must manage the risk that comes with insuring lesser-quality loans.
To that end, the FHA is stepping up its enforcement of “bad lenders” in hopes of stopping problems where they start.
Also in its new policies, the FHA is introducing a “termination clause”. If banks or loan officers that produce more than their fair share of bad loans, they lose their right to originate FHA mortgages.
As a result, homebuyers in Littleton should expect tougher FHA underwriting in 2010. Not because the FHA says so, necessarily, but because banks don’t want to do “bad loans”. Lenders are incented to turn down at-risk applicants and, already, we’re seeing examples of this. Despite FHA allowing 580 FICOs and lower, many banks have made 620 their minimum.
Some have other guideline overlays, too.
The FHA’s new guidelines don’t go into effect until spring. So, between now and then, the old guidelines will apply. Therefore, if you know you’re going to need an FHA home loan in the next few months, consider moving up your time-frame.
If nothing else, you’ll save some money at closing.
There’s 100 Days Left To Claim The Homebuyer Tax Credit
January 20, 2010 by Real Estate News · Leave a Comment
November 6, 2009, Congress voted to extend and expand the First-Time Home Buyer Tax Credit program. There’s 100 days left to claim it.
The expiration date of the up-to-$8,000 tax credit has been pushed forward to spring, requiring homebuyers in Denver to be under contract for a home no later than April 30, 2010, and to be closed no later than June 30, 2010.
In addition, “move-up” buyers were also added to the program’s eligibility list meaning you don’t have to be a first-time home buyer to be eligible for the tax credit. If you’ve lived in your home for 5 of the last 8 years, you meet the IRS requirements.
Move-up buyers are capped at a total tax credit of $6,500.
The tax credit’s basic eligibility requirements remain the same:
- You can’t purchase the home from a parent, spouse, or child
- You can’t purchase the home from an entity in which they’re a majority owner
- You can’t acquire the home by gift or inheritance
- All parties to the purchase must meet eligibility requirements
The new law includes some notable updates, however.
First, the subject property’s sales price may not exceed $800,000. Homes sold for more than $800,000 are ineligible. And, also, household income thresholds have been raised to $125,000 for single-filers and $225,500 for joint-filers.
And lastly, don’t forget that the program is a true tax credit — not a deduction. This means that a tax filer who’s eligible for the full $8,00 credit and whose “normal” tax liability totals $5,000 would receive a $3,000 refund from the U.S. Treasury at tax time.
The complete list of qualifying criteria is posted on the IRS website. Review it with a tax professional to determine your eligibility. Then mark your calendar for April 30, 2010.
There’s just 100 days to go.
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