Denver-area rents dip in Q4, but occupancies rise - Apartment rents in the Denver-Aurora area decreased in the fourth quarter of 2009 from the third period, but occupancies rose slightly, according to a RealFacts report released Thursday. Average apartment rent for the metro area dipped 6.1% to $819 in last year’s final period, from $872 in the third quarter. However, Denver-Aurora apartment occupancies increased 0.7% to 92.4%. Boulder had average fourth-quarter rent of $966 per month and average occupancy of 93.7%. The Fort Collins-Loveland area reported average rent of $834 and average occupancy of 93.6% for the same period.
http://www.bizjournals.com/denver/stories/2010/01/18/daily52.html?s=industry&i=resi_real_estate
Thursday, January 21, 2010
Wednesday, January 20, 2010
FHA Home changes
FHA Announces Policy Changes to Address Risk and Strengthen Finances
New Measures Will Help FHA Better Manage Risk, While Maintaining Support for the Housing Market and Access for Underserved Communities
WASHINGTON – Federal Housing Administration (FHA) Commissioner David Stevens today announced a set of policy changes to strengthen the FHA’s capital reserves, while enabling the agency to continue to fulfill its mission to provide access to homeownership for underserved communities. The changes announced today are the latest in a series of changes Stevens has enacted in order to better position the FHA to manage its risk while continuing to support the nation’s housing market recovery.
The FHA will propose to take the following steps: increase the mortgage insurance premium (MIP); update the combination of FICO scores and down payments for new borrowers; reduce seller concessions to three percent, from six percent; and implement a series of significant measures aimed at increasing lender enforcement. U.S. Housing and Urban Development Secretary Shaun Donovan previewed the changes in December of last year, noting that the FHA would announce additional details before the end of January.
“Striking the right balance between managing the FHA’s risk, continuing to provide access to underserved communities, and supporting the nation’s economic recovery is critically important,” said Commissioner Stevens. “When combined with the risk management measures announced in September of last year, these changes are among the most significant steps to address risk in the agency’s history. Additionally, by continuing to provide affordable, responsible mortgage products, FHA will support the housing market’s recovery. Importantly, FHA will remain the largest source of home purchase financing for underserved communities.”
Announced FHA Policy Changes:
Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending
The first step will be to raise the up-front MIP by 50 bps to 2.25% and request legislative authority to increase the maximum annual MIP that the FHA can charge.
If this authority is granted, then the second step will be to shift some of the premium increase from the up-front MIP to the annual MIP.
This shift will allow for the capital reserves to increase with less impact to the consumer, because the annual MIP is paid over the life of the loan instead of at the time of closing.
The initial up-front increase is included in a Mortgagee Letter to be released tomorrow, January 21st, and will go into effect in the spring.
Update the combination of FICO scores and down payments for new borrowers.
New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA's 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%.
This allows the FHA to better balance its risk and continue to provide access for those borrowers who have historically performed well.
This change will be posted in the Federal Register in February and, after a notice and comment period, would go into effect in the early summer.
Reduce allowable seller concessions from 6% to 3%
The current level exposes the FHA to excess risk by creating incentives to inflate appraised value. This change will bring FHA into conformity with industry standards on seller concessions.
This change will be posted in the Federal Register in February, and after a notice and comment period, would go into effect in the early summer.
Increase enforcement on FHA lenders
Publicly report lender performance rankings to complement currently available Neighborhood Watch data - Will be available on the HUD website on February 1.
This is an operational change to make information more user-friendly and hold lenders more accountable; it does not require new regulatory action as Neighborhood Watch data is currently publicly available.
Enhance monitoring of lender performance and compliance with FHA guidelines and standards.
Implement Credit Watch termination through lender underwriting ID in addition to originating ID.
This change is included in a Mortgagee Letter to be released tomorrow, January 21st, and is effective immediately.
Implement statutory authority through regulation of section 256 of the National Housing Act to enforce indemnification provisions for lenders using delegated insuring process
Specifications of this change will be posted in March, and after a notice and comment period, would go into effect in early summer.
HUD is pursuing legislative authority to increase enforcement on FHA lenders. Specific authority includes:
Amendment of section 256 of the National Housing Act to apply indemnification provisions to all Direct Endorsement lenders. This would require all approved mortgagees to assume liability for all of the loans that they originate and underwrite
Legislative authority permitting HUD maximum flexibility to establish separate "areas" for purposes of review and termination under the Credit Watch initiative. This would provide authority to withdraw originating and underwriting approval for a lender nationwide on the basis of the performance of its regional branches
In addition to the changes proposed today, the FHA is continuing to review its overall response to housing market conditions, and continuing to evaluate its mortgage insurance underwriting standards and its measures to help distressed and underwater borrowers through FHA/HAMP and other FHA initiatives going forward.
New Measures Will Help FHA Better Manage Risk, While Maintaining Support for the Housing Market and Access for Underserved Communities
WASHINGTON – Federal Housing Administration (FHA) Commissioner David Stevens today announced a set of policy changes to strengthen the FHA’s capital reserves, while enabling the agency to continue to fulfill its mission to provide access to homeownership for underserved communities. The changes announced today are the latest in a series of changes Stevens has enacted in order to better position the FHA to manage its risk while continuing to support the nation’s housing market recovery.
The FHA will propose to take the following steps: increase the mortgage insurance premium (MIP); update the combination of FICO scores and down payments for new borrowers; reduce seller concessions to three percent, from six percent; and implement a series of significant measures aimed at increasing lender enforcement. U.S. Housing and Urban Development Secretary Shaun Donovan previewed the changes in December of last year, noting that the FHA would announce additional details before the end of January.
“Striking the right balance between managing the FHA’s risk, continuing to provide access to underserved communities, and supporting the nation’s economic recovery is critically important,” said Commissioner Stevens. “When combined with the risk management measures announced in September of last year, these changes are among the most significant steps to address risk in the agency’s history. Additionally, by continuing to provide affordable, responsible mortgage products, FHA will support the housing market’s recovery. Importantly, FHA will remain the largest source of home purchase financing for underserved communities.”
Announced FHA Policy Changes:
Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending
The first step will be to raise the up-front MIP by 50 bps to 2.25% and request legislative authority to increase the maximum annual MIP that the FHA can charge.
If this authority is granted, then the second step will be to shift some of the premium increase from the up-front MIP to the annual MIP.
This shift will allow for the capital reserves to increase with less impact to the consumer, because the annual MIP is paid over the life of the loan instead of at the time of closing.
The initial up-front increase is included in a Mortgagee Letter to be released tomorrow, January 21st, and will go into effect in the spring.
Update the combination of FICO scores and down payments for new borrowers.
New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA's 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%.
This allows the FHA to better balance its risk and continue to provide access for those borrowers who have historically performed well.
This change will be posted in the Federal Register in February and, after a notice and comment period, would go into effect in the early summer.
Reduce allowable seller concessions from 6% to 3%
The current level exposes the FHA to excess risk by creating incentives to inflate appraised value. This change will bring FHA into conformity with industry standards on seller concessions.
This change will be posted in the Federal Register in February, and after a notice and comment period, would go into effect in the early summer.
Increase enforcement on FHA lenders
Publicly report lender performance rankings to complement currently available Neighborhood Watch data - Will be available on the HUD website on February 1.
This is an operational change to make information more user-friendly and hold lenders more accountable; it does not require new regulatory action as Neighborhood Watch data is currently publicly available.
Enhance monitoring of lender performance and compliance with FHA guidelines and standards.
Implement Credit Watch termination through lender underwriting ID in addition to originating ID.
This change is included in a Mortgagee Letter to be released tomorrow, January 21st, and is effective immediately.
Implement statutory authority through regulation of section 256 of the National Housing Act to enforce indemnification provisions for lenders using delegated insuring process
Specifications of this change will be posted in March, and after a notice and comment period, would go into effect in early summer.
HUD is pursuing legislative authority to increase enforcement on FHA lenders. Specific authority includes:
Amendment of section 256 of the National Housing Act to apply indemnification provisions to all Direct Endorsement lenders. This would require all approved mortgagees to assume liability for all of the loans that they originate and underwrite
Legislative authority permitting HUD maximum flexibility to establish separate "areas" for purposes of review and termination under the Credit Watch initiative. This would provide authority to withdraw originating and underwriting approval for a lender nationwide on the basis of the performance of its regional branches
In addition to the changes proposed today, the FHA is continuing to review its overall response to housing market conditions, and continuing to evaluate its mortgage insurance underwriting standards and its measures to help distressed and underwater borrowers through FHA/HAMP and other FHA initiatives going forward.
Monday, January 18, 2010
Denver Market Update
Good morning!
Some good info to share with your clients about Denver…
Metro Denver EDC releases 2010 economic forecast - Chief Economist Patty Silverstein discussed key economic activity in 2009 and gave her outlook on the economy for the coming year. Positive rankings throughout 2009 suggest Metro Denver has maintained the solid fundamentals necessary to support growth once the nation's economy recovers including:
Denver ranks 1st among the nation's most desirable places to live, according to a 2008 poll by the Pew Research Center A 2009 poll by Harris Interactive showed Denver tied for second place with San Francisco on a list of the nation's favorite places to live Forbes called Metro Denver one of 10 "Best Cities for a Housing Recovery" and the nation's best metropolitan area in which to buy a home
Real estate correspondents with NBC's "Today" show named Denver the U.S. city most ready for a housing rebound Builder magazine named Denver among five housing markets likely to recover quickly.
http://www.metrodenver.org/news-center/metro-denver-news/metro-denver-edc-releases-2010-economic-forecast.html
Some good info to share with your clients about Denver…
Metro Denver EDC releases 2010 economic forecast - Chief Economist Patty Silverstein discussed key economic activity in 2009 and gave her outlook on the economy for the coming year. Positive rankings throughout 2009 suggest Metro Denver has maintained the solid fundamentals necessary to support growth once the nation's economy recovers including:
Denver ranks 1st among the nation's most desirable places to live, according to a 2008 poll by the Pew Research Center A 2009 poll by Harris Interactive showed Denver tied for second place with San Francisco on a list of the nation's favorite places to live Forbes called Metro Denver one of 10 "Best Cities for a Housing Recovery" and the nation's best metropolitan area in which to buy a home
Real estate correspondents with NBC's "Today" show named Denver the U.S. city most ready for a housing rebound Builder magazine named Denver among five housing markets likely to recover quickly.
http://www.metrodenver.org/news-center/metro-denver-news/metro-denver-edc-releases-2010-economic-forecast.html
Tuesday, August 25, 2009
Market UPdate
Wow, it has been awhile since I've been on my blog. To my readers I apologize!
Denver has been growing in demand over the last 3 months under the $250,000 price range. Supply has been low, simply due to sellers holding off on listing, and banks withholding properties to push through loan modifications. Demand is up for buyers trying to take advantage of the $8,000 tax credit. Therefore, lack of supply and more demand produces a sellers market under $250,000! So all of you sellers out there that are thinking of waiting to sell and you are under $300k don't wait!!! Now is better than the last 3 years!! Call me.
Tuesday, June 9, 2009
Market Watch
For the fourth consecutive month, the number of existing homes sold has increased, a sign that Denver's housing market has hit bottom and is bouncing back, according to real estate experts.
Sales of previously owned homes increased 7 percent in May to 3,628, according to Metrolist data released Friday. While that's still down 22 percent from last year, the month-over-month increase is encouraging.
"We might be able to officially say we saw the bottom," real estate analyst Gary Bauer said. "When did it happen? I'm not quite sure, but we've got a couple of months where we've had a nice rise."
While still down from last year, median prices for single-family homes and condominiums also are on the rise, according to the data. The median price for a single-family home rose 4.8 percent in May to $220,000, compared with the previous month. That's still down 2.7 percent compared with last year.
Forty-two percent of homes sold went for less than $200,000, and 28 percent were in the $200,000-to-$300,000 range.
For condos, the median price increased 5.4 percent in May to $137,000, compared with April. But it's down 7.4 percent compared with the same time last year.
Thirty-six percent of condos sold went for less than $110,000 and 75 percent brought less than $200,000.
First-time buyers who close on a home by Dec. 1 can get a tax credit of up to $8,000. Bauer said there are now programs in place that allow first-time buyers to get the credit almost immediately.
"There are a lot of first-time homebuyers taking advantage of the potential for the tax credit," said Dave Simonson, a broker with Re/Max Professionals Inc.
The number of unsold homes on the market remained steady in May at 20,734. That's down 21.3 percent compared with the same month last year.
Tuesday, June 2, 2009
Denver number 1!
Denver was voted number one for come back city in this recession!!! I can feel it! We are getting busier at work and things are progressing into offers. Interest rates went up a bit and buyers need to take advantage of the long term gains.
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