What the Stimulus Means for Colorado Real Estate

by Courtney Nelson

Stimulus Package and Real Estate:There are new exciting opportunities for buyers because of the recent Economic Stimulus Bill. These opportunities combined with great home prices and low interest rates makes it a perfect time for many homebuyers. First Time Home Buyer Tax Credit: Any homebuyer who has not owned a home or not owned a home in the last three years qualifies for a tax credit up to $8,000. This applies to any home that is purchased between Jan. 1, 2009 and Dec. 31, 2009. The credit you can receive is based on your tax liability so if you owe taxes each year you will owe less. If you receive money back at tax time this would be part of your refund. Please check with me and your accountant for more information.

FHA Loan Limits Increased: FHA loan limits have just been increased to $406,000 for the Denver Metro Area and $460,000 for Boulder. Previously the limit was $368,000. FHA loans are available to all buyers not just first time home buyers. Here are a few of the reasons FHA loans are an excellent option for any buyer: • FHA allows buyers to provide a 3.5% down payment to purchase a home • FHA charges less mortgage insurance than conventional loans. If you put less than 20% down you will owe mortgage insurance. • FHA interest rates are a ¼% lower, on average, than conventional products • No prepayment penalties on FHA loans and the loans are assumable • Easy streamline refinances are available • FHA requires a lower credit score with a minimum of 580 to qualify • You can have a co-signer on your loan in order to qualify and can also receive gift money from a relative for a down payment Information provided by Jocelyn Predovich with Limetree Lending 303-325-3578 Market Update Our local Denver Area real estate market continues to get great press for being one of the least effected real estate climates in the United States. According to Standard & Poor’s Case-Shiller Home Price Indices, “All 20 metro areas are reporting negative monthly and annual rates of change in home prices. Boston, Denver, Los Angeles, San Diego and Washington are reporting a relative improvement in year-over-year returns, in terms of lesser rates of decline than last month’s values.” Denver’s annual decline was only 4% where most cities saw an average of 19% decreases. This is great news! In January the number of homes under contract in the Denver Area was up 50% from last January and homes are spending less time on the market. We had 11 months inventory of active homes for sale in January 2008 and now have half of that at 6 months supply of inventory. We continue to move towards a more balanced market.

Trends ~ Buyers still are drawn to the short sale and lender owned properties. Here is a breakdown of what these two types of sales are. Short Sales: These properties are homes that a seller has either defaulted on or owes more than the home is worth. They usually are still occupying the property but may have a looming foreclosure date set. Realtor’s can help sell these homes as a short sale while working with the bank to negotiate an offer that is less than the loan amount. Lender Owned: A bank has become the owner of this home because a homeowner lost their home to foreclosure. These homes are popular because the bank is the only party on the other side. Because of their popularity buyers often find themselves in a bidding war. Both short sales and lender owned properties are great opportunities for buyers. Feel free to contact me for more details on the buying process.

Visit www.coloradosells.com for more info or to search all Denver Area Properties