'A New Threat to Home Prices'

CNNMoney reports there is a new threat to home prices.  The threat is coming from a culmination of all financial issues facing Washington.  Between the growing national debt, the harrowing financial markets, and the weaning economic market, signs point to growing threat against home prices.  The issue: home mortgages will feel pressure on prices in high-end markets.  New loan limits are coming into play and these limits will mostly affect high-end markets and is said to affect 8% of the total U.S. housing market. 

You may be thinking, this will not affect me, this is only about high-end homes, wrong! If expensive homes stop selling, then prices for the houses under them will feel the pressure too.  As this issue will fall from high-end to low-end there is threat to the housing market.  Experts believe that President Obama will propose a major housing-related stimulus in the coming weeks as part of a broader economic plan.  May it be cutting conforming loans or creating more hurdles for 'jumbo' loans.

*related article here, CNNMONEY.com

Matt Ullrich
303.941.2452.cell
303.415.2251.office
ullrich@boulderco.com
RE/MAX of Boulder, INC

'The Way Appraisals are Sinking Real Estate Deals'

If you have sold a house recently in a depressed market than you are certainly aware of the current issue of appraisals.  In a down market home values drop and people sell their home below market value, appraisals are supposed to show/prove the worth/value of your home but if the homes around you are selling below market, this could mean trouble for you.  It is easy logic, but in order for an appraisal to take place someone comes out and inspects your home then, here's the kicker, they compare it to homes in the area that have recently sold that are similar to your home (comparables).  The problem is these comparables have been selling below market value in order to get the sale done.  The consequence is that your home is now taking a beating because the 'comparables', because they were sold below market value, now quality by association, your home will be appraised at a lower value.

What is going on here is a never ending cycle of bringing down home values.  The reason this keeps happening is before an offer is made a buyer gets an appraisal on the home and the appraisal comes in at $500,000 but the homeowner knows it is actually valued at $600,000.  The buyer knows that market says it is only worth $500,000 and will not make an offer higher than the appraisal.  This starts the cycle.  Now that the home dropped in value by $100,000, the next home will be brought down in value, and so on and so forth.  Currently there is no end to the cycle, the only way I see this ending is if buyers start paying over the appraised value or there is a second regulation in place to 'appraise' homes without bringing down the home values.

*for a similar article visit INMAN.com


Matt Ullrich
303.941.2452.cell
303.415.2251.office
ullrich@boulderco.com
RE/MAX of Boulder

'Mortgage Applications up 6.3% Last Week'

Last week mortgage applications rose 6.3% as many homeowners filed purchase applications or refinanced.  This rise in mortgage applications and be traced back to the record-low interest rates today.  With such low rates people are refinancing and saving big money.

The interest rates for a 30-yr fixed mortgage dropped from 4.23% to 4.17% and the average rate for a 15-yr fixed mortgage dropped from 3.41% to 3.4%.


Matt Ullrich
303.941.2452.cell
303.415.2251.office
ullrich@boulderco.com
RE/MAX of Boulder

RE news: '11 Fastest-Moving Real Estate Markets'

AOL Real Estate just released the 11 Fastest-moving Real Estate Markets.  Two Colorado cities made the list. Follow this link to see who made the list...


Slow, Tired, Gloomy day in Boulder. At least its already Wednesday.


Matt Ullrich
303.941.2452.cell
303.415.2251.office
ullrich@boulderco.com
RE/MAX of Boulder

Boulder News: 'Ball Aerospace wins $36 Million Job'

BCBR.com reported Ball Aerospace and Technologies have won a $36million contract for a missile launch program.

'Boulder-based Ball Aerospace will create the Moire Program, which will include optics and geosynchronous imaging that can help detect missile launches and track them, according to a press statement. The project will also include real-time video.
Of the work, 73.2 percent of the project will be done from Ball Aerospace's Broomfield location, according to the press statement. Other work will be done in Goleta, California, 17.2 percent; Livermore, California, 7.2 percent; and Huntsville, Alabama, 2.4 percent.'-Beth Potter

Ball Aerospace revenue has been growing rapidly over the last year citing a near 15% growth from last year.  An increase from $18.6million to $21.7 million, second quarter numbers.  The company has also finished their 160,000sqft expansion of their manufacturing center and started expanding their satellite manufacturing facility in Boulder.

*read the full article at BCBR.com

Matt Ullrich
303.941.2452.cell
303.415.2251.office
ullrich@boulderco.com
RE/MAX of Boulder

News: 'Time for a new 'New Deal''

This is just a great article about the current 'recession' and an interesting take with economic facts of today.  Its a good short read from Inman Real Estate News.  I hope you read it.  INMAN NEWS


Matt Ullrich
303.941.2452
ullrich@boulderco.com
RE/MAX of Boulder, INC

Boulder RE News: 'Boulder Home Prices Increase'

From the BCBR.com:  Boulder home prices have risen 4.1% in July, according to CoreLogic July Home Price Index.  Nationally prices jumped shot up in July, but at a lower rate averaging only 0.8%, and down 5.2% from July 2010.

Full story here


Matt Ullrich
303.941.2452
ullrich@bouldeco.com
RE/MAX of Boulder, INC