RE NEWS: 'Real Estate Prices Up, but Not For Long'

Inman news, reports that home prices have risen for the fourth straight month in July, according to the latest report from loan data aggregator and analytics firm CoreLogic.  This is good news, but experts have been weighing in that this is only a seasonal spike and come fall, we will see home prices dip once again.

This is nothing new, it is true that home prices tend to fluctuate during the seasons and this year is no different.  On a national average home values and average home sales price have risen significantly this summer compared to last summer, showing signs of market improvement.  Boulder, in particular has seen similar growth in that average home sales prices have gone up this summer over the 2010 summer.  However, the number of homes on the market continue to fall from previous years.  We have seen a trend that since 2006 the number of listings per month have followed the same declining trend year after year.

My thoughts:  I am optimistic and foresee this next spring being a huge turnaround point for the market.  I think that the economy will start turning around, some new government programs will be set up, unemployment will do down, causing people to be less afraid of the market and realized their home values will not magically jump back up to their unrealistic values from 2007.  These are the kinds of things that need to happen to turn the economy around.

read the entire article here


Tell me your thoughts?

Matt Ullrich
303.941.2452
ullrich@boulderco.com

NEWS: 'The Mortgage Fix That Can Save the Economy'

I stumbled on an interesting article today about a new type of loan modification program that has potential to save the economy.  Past loan modifications have only left us worse of and now banks are suing banks and the government is handing out money to corporations and now the people are standing up and fighting back, and with a brilliant sollution at that.

The idea is for a new loan program that instead of the government to lend out millions of dollars to banks, the banks will just reduce the amount of principal on loans.  The statistics are as follows:

"If lenders would reduce all underwater mortgages to their current market value, the nation's banks could pump $71 billion per year into the economy, create more than 1 million jobs annually and save families up to $6,500 per year on mortgage payments, according to The New Bottom Line, a collaborative of 1,000 faith-based and community organizations who want Wall Street held accountable for the mess it created."  -Ann Brenoff, AOLreal estate

The idea behind this is that by reducing people's loan payment, it allows them to spend their money on other things such as groceries, clothes, etc.  This would cause a spike in consumer demand and businesses would be doing better and lead to prosperity and jobs.

Tell me what you think, could this idea help revive the economy?


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

*for the full article on this issue follow this link

NEWS: 'HUD Extends Deadline for Unemployed Mortgage Assistance'

A program designed to help the unemployed with mortgage payments to recieve interest-free mortgage payments has been extended applications through September 15th.  The program is  part of the HUD's plan to help the unemployed keep up with their mortgage payments.  If applicants mee the critereia of the application the unemployed homeowner will be allowed to pay off their mortgage interest free. 

Colorado is taking part in the service, so if you would like to know how to apply for the program or would like to read the entire article, you can find it here at HousingWire.com


If you have any questions please feel free to email or call


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

News: 'Home Affordability Remains High'

Home Affordability is near record highs (which is a good thing)  This rating means that American families are buying homes within their means.  The National Association of Home Builders said the affordability of homes sold in the second quarter for 2011 was 72.6%.  The national median income is $64,200.

At a time of high affordability it means prosperity, homeowners are purchasing within their limits and with the historic low interest families are getting great deals on homes and will be well financed to make affordable payments.  Unfortunately, the high level of affordability has not turned into more sales, actually, the national average of home sales dropped 3.5% in July from June sales.


*If you want to read the whole story check it out on RealtyTimes.com



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

West End Tavern Presents 'Warren Miller Wednesdays'

Tonight is the kickoff party at the West End Tavern.  They are getting ready for ski season by watching vintage Warren Miller movies (every wednesday night at 8:30) and featuring food and drink speacials all night.


They are also giving away door prizes from FlyLow, Patron, Christy Sports, etc.  Start thinking snow and come down the West End Tavern tonight and have some fun.


*find this event online:  Warren Miller Wednesdays


Matt Ullrich
303.941.2452
ullrich@boulderco.com

Boulder Farmers' Market

Its that day of the week again (Wednesday if you weren't sure), come down to 13th street between Arapahoe and Canyon, from 4-8pm.

*The Boulder Farmers' Market is a locally grown farmers market with all the gourmet fixins of veggies, meats, fruits, flowers, chesses, and even wines!  Its a great atmosphere and fun for the entire family.  Support local!


Matt Ullrich
303.941.2452
ullrich@boulderco.com

RE NEWS: 'US housing faces another plaguing issue'

Through all the ups and downs the housing market has been going through, one key issue is holding the market back from growing.  The market IS seeing lots of improvement from a year ago but that is just from housing activity and not the facts.  The activity in the market has been growing over the past year but the facts of the matter is that, nationally, we are not improving when it comes to home appraisals and valuation.  Home appraisals are the staple to the healthy economy and because of the past few years of poor valuation we are seeing the effects today...Here is why:

Before the housing bust, home appraisals were getting out of hand, making higher valuations than the property was worth.  This market characteristic contributed heavily to the housing bust, homes were jumping up 10-16% a year, when on an average year home values are to appreciate between 2-4%.  This spike in home values lead to the crash and the appraised values plummeted and over the past 3 years we have seen large de-valuation of homes where they were highly valued.


The home appraisals of today are the effects of the high appraisals and the low home values of the past 3 years.  What is happening today is that home valuations are turning up lower than the REAL value of the home.  What I mean by REAL value of the home, is that a home may actually be worth $500,000 BUT because of the low appraisals of the past few years, the home that has a REAL value of $500,000 will end up being appraised at a lower value because the appraiser does not have comparable homes to compare it to.  And if the appraiser does have homes to appraise it to, they are at a lower price because of the housing bubble bust and the home values of comparables that have sold recently are at a lower price, therefore, causing the home with the REAL value of $500,000 to be valued below its worth at say $450,000.


Now you may be thinking, ok, its valued at $450,000 but im going to put it on the market for the $500,000 because that the real price it should be appraised at.  The problem here is 99 out of 100 times a buyer will want to see the most recent home appraisal and if the appraisal says the home is worth $450,000 and not $500,000 (as listed) the buyer will not be willing to go above $450,000 on the home and will end up buying a house down the street and leaving yours on the market for a long long time.


This is a very interesting subject to keep track of, because until home appraisers can figure out a better system to appraise homes, we may be stuck in this downward appraisal turmoil for a long time.  The appraisal system has the power to turn the housing market around and bring things back to normal.
    *for a similar story please follow this link:  U.S. housing faces extra drag- low appraisals


I'd love to hear some comments on home owners/ home buyers/ home sellers, and what you think about all of this.

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