Two Opposing Forces!

I'm predicting January to be pretty healthy, only because now that interest rates have dropped there will be more buyers coming off of the fence, and with December being a low point for housing inventory, the more listings that come online in January the better. So I think you have two opposing forces right now; buyers getting interested in buying, but inventory being low due to the time of year and the market in general. Houses that get listed in January might not last very long! Unfortunately jumbo rates haven't come down at all, so that doesn't help the high end of the market, which in my opinion is pretty bleak like other price points.

The Second Wave is Coming...

This is a 12 minute clip from 60 minutes and it is worth your time to review it. It should be mandatory viewing for every buyer and seller in America!

My first take on this was that the whole thing might be avoided because if interest rates do stay at historic lows then homeowners could refinance and the "resets" would never take place (the assumption all along.) Then I realized that someone who took out one of these mortgages propbably has no equity at this point, and might even be underwater, so they would not be able to refinance anyway. They would walk away. The cycle will never end.

All we can hope is that the low interest rates bring out the buyers, so the sellers in trouble can sell and get rid of these horrible loans forever. I don't think it means prices will drop further personally. But they certainly won't rise either if we are going to have this pain for the next 3 years still.

I do believe that the second wave is coming and its real.

Watch CBS Videos Online

Some Sellers Are Delusional!

Sellers have a hard time acknowledging their home is not immune to the shrinking prices we are seeing! Yes, in every price point it seems! Homeowners must look at the larger financial picture because keeping a home on the market at an inflated price could wind up costing more.

How realistic are you?

In this market, was it really a bargain or was the friend just being realistic about the market? If, as is predicted, the Denver market sees more foreclosures and the buyers still aren’t taking the leap, then the home that sold for what is perceived as a bargain price today, may just be considered a high price in 2-3 months!

If you bought any property in 2005 or later, DO NOT assume that it has gone up in price! Parker is doing better than most areas, but it hasn't gone up even 10% in that total 3 year time frame generally.

All of these properties in these fancy magazines just make our heads swim. There cannot be that many 2 million dollar homes in Denver! Its just impossible that there are that many people that can afford that. In Parker Colorado, Franktown and Elizabeth Colorado, there are 28 properties homes over 2 million. Come on people take the bag off of your head!

Rates Going Down! They Must Have Heard Us!

THURSDAY, December 4th

Long-term fixed mortgage rates tumbled almost a half-point after the Fed said last week that it would buy $500 billion in securities from Fannie Mae and Freddie Mac. The Fed will also buy another $100 billion in direct debt issued by the GSEs. 30-year fixed rate mortgages averaged 5.53% this week compared to 5.97% last week according to Freddie Mac's mortgage market survey. Economists at Freddie Mac noted that mortgage applications doubled in the past week with refinancing applications almost tripling in response to the steep rate decline in rates.