Are You Buying Soon?

If you are considering buying, then timing a lock on rates could be key right now. Rates have skipped around a bit but are likely to go down in the near future. The question is how low will they go and when?

Some basic knowledge on rates and recent events:

"SURVEY SAYS...?" Richard Dawson's classic line on Family Feud is exactly the question that was on many minds at 8:29am ET last Friday morning, awaiting the official results of the November Jobs Report. After Automatic Data Processing (ADP) had released their hot numbers earlier in the week, indicating well over 200,000 new jobs created - traders and analysts began to wonder if Friday's official number might not come in far higher than the expectations of 70,000.

So when the results came in, it did show 94,000 new jobs created during November - but prior month's revisions took back 48,000 jobs previously counted in September and October. So...given this overall tame to semi-weak Jobs number - which generally would cause Bonds and home loan rates to improve - what happened that caused Bond pricing to worsen, and home loan rates to increase by .25%?

First, Bonds and home loan rates had recently improved to levels not seen in well over two years - so Bonds were almost looking for a reason to correct - and a few strong elements inside the Jobs Report were all the reason they needed. The Unemployment Rate stayed at a low 4.7%, which was better than expected.

Additionally, the closely watched Hourly Earnings number was up 0.5%, higher than anticipated, and the largest read in over two years. Higher wages and a tight job market are both inflationary...inflation is bad news for Bonds and home loan rates...hence the large worsening in Bond prices and home loan rates.

For more real estate insights, go to http://www.coloradodreamhomes.net/

Once Again, Colorado Real Estate Makes Headlines...

Hedge-fund manager Louis Moore Bacon buys Forbes Ranch
The Associated Press
Article Last Updated: 11/28/2007 08:33:29 AM MST


FORT GARLAND, Colo.—The Trinchera Ranch in the San Luis Valley has changed hands—from a man worth almost $500 million to billionaire hedge-fund manager Louis Moore Bacon.
Steve Forbes said he had sold the 171,000-acre Forbes Trinchera Ranch near Fort Garland to Bacon because he had a solid conservation record and could be trusted to preserve the ranch.

The Pueblo Chieftain said Bacon paid $175 million for the ranch with views of 14,000-foot-high peaks, in one of the highest prices ever paid for a ranch. The Forbes family had held the ranch, 160 miles south of Denver, for four decades.

"Louis Bacon has passionately devoted much of his life and resources to the protection of extraordinary properties," Forbes said. "By finding such a committed owner, we are certain Trinchera will thrive and be enjoyed, as it is, for years to come." Bacon set up the Moore Charitable Foundation in 1992 to aid nonprofit groups that focus primarily on conservation and the protection of natural resources.

A spokesman for Bacon called the ranch an extraordinary property for its scenic grandeur and unspoiled natural habitat.

Bacon, 51, founded Moore Capital Management in 1989. Forbes.com ranks the hedge fund manager among the 400 richest Americans and estimates his net worth at $1.7 billion.

The transaction brings a close to the nearly four decades of ownership by the Forbes family.

Malcolm Forbes bought the ranch in 1969 and expanded it in 1982 with the purchase of the adjacent Blanca Ranch. The Forbes family used the ranch as a hunting preserve, for corporate entertaining and as an executive retreat.

Bacon has made considerable donations to conservation causes, including the 1997 donation of a conservation easement to the Nature Conservancy for Robins Island, a 434-acre property on the south shore of New York's Long Island.

He guaranteed protection from development for the 540-acre Cow Neck Farm in the town of Southampton, N.Y., by donating a conservation easement to the Peconic Land Trust in 2001.

Bacon's spokesman said he has no specific plans yet for Trinchera. He will keep the employees on, and may add some. There are an estimated 30 staff.

It wasn't clear whether the purchase included 80,000 acres that Forbes had given a conservation easement on in 2004 to Colorado Open Lands, the largest such donation in Colorado history.

The ranch is the largest remaining undeveloped land parcel within the historic Sangre de Cristo land grant of 1843.

For more real estate insights, go to http://www.coloradodreamhomes.net/

A Canadian Luxury Home Looks Like This...

What's on your wish list? Top 10 must haves for today's multi-million dollar homes - Royal LePage reports on the most unique and sought-after accessories of
luxury homes -

TORONTO, Dec. 4 /CNW/ - Come holiday season, children and adults alike
begin creating wish lists - detailed accounts of everything their hearts
desire. This season luxury homeowners' wish lists are likely to spare no
expense, as the bar just keeps getting higher when it comes to outfitting
one's multi-million dollar pad.

Multiple car garages and lavish walk-in closets are a thing of the past;
indoor car washes and walk-in refrigerators are the new rage. As demand for
luxury homes continues to grow, so do the wants and needs of those looking to
buy.

"The million dollar home is no longer the exclusive domain of the rich.
In fact, many typical middle income Canadian families now own million dollar
residences due to soaring property prices," said Elli Davis, sales
representative, Royal LePage Real Estate Services Ltd. "Accessorizing the
property with the hottest must-haves is a natural extension of living a luxury
lifestyle and a way to stand out from the crowd."

With the help of its Carriage Trade real estate agents, Royal LePage
compiled a top 10 list of the most unique and sought-after accessories that
Canadian luxury homes are outfitted with.

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2. Walk-in refrigerators - Professional kitchens akin to what one may
find in a five-star restaurant have taken over luxury homes. With
growing emphasis placed on home entertaining, walk-in refrigerators
and multiple ovens, sinks and dishwashers are the norm for even the
novice gourmet.

3. Spas, gyms and yoga and Pilates studios - The home gym has undergone
a makeover and the focus now is on complete health and wellness
facilities. Professional-style spas complete with steam rooms and
massage rooms overtake the outdated sauna or whirlpool. Yoga and
Pilates studios trump stair climbers, treadmills and rowing machines.

4. Wine cellars and tasting rooms - Grand wine cellars often found in
Rosedale, Forest Hill or Westmount residences are the norm for
today's connoisseur. Individual cellars for red and white wines, as
well as specialized tasting rooms equipped with various sinks and
buckets for wine sampling are becoming all the rage.

5. Concierge services - Concierge services are no longer limited to
condominium owners or hotel guests. Today's luxury homeowners utilize
companies specializing in concierges. From making dinner reservations
to picking up dry cleaning or purchasing opera tickets, concierge
services are now a common trend within many luxury neighbourhoods.
There are several companies that will provide typical concierge
services to homeowners - essentially acting as a live-out butler.

6. Media rooms - Media rooms that rival the local public theatre are as
prevalent in luxury homes as the family room. These windowless rooms
typically boast a theatre-size screen, surround sound and rows of
plush seats to accommodate large groups.

7. Wrapping and sewing rooms - Specialized rooms to accommodate
particular hobbies or tasks, which are completely outfitted help to
keep homeowners organized, are very popular. Dedicated rooms for gift
wrapping boast everything from ribbons to paper varieties to bags and
bows, while sewing rooms have every type of thread, button and zipper
imaginable with tables and machines tailored to the homeowner's
needs.

8. Structured wiring and security - A wireless home is a thing of today.
Many luxury residences feature security capabilities (e.g. door
locking), entertainment options and light settings that can be
accessed remotely throughout a home in various rooms. Some properties
are even equipped to remotely control security features in far away
cottages or second homes. Another innovative perk for those with deep
pockets are security systems that allow property owners to view their
home while at work, at the cottage or on holiday.

9. Home elevators - As homes are increasing in size, and are being built
higher to accommodate several floors, home elevators are becoming an
accessory of convenience as well as necessity.

10. Heated driveways, walkways and garages - Manual snow removal is a
thing of the past for those in exclusive neighbourhoods that favour
heated driveways, walkways and even garages. Built on top of heating
coils, snow melts as soon as it touches these warm surfaces.

Don't think there are many surprises here. The wine cellars, gyms, elevators, and media rooms are old standbys. Heated driveways certainly make sense in snowy climes, but of course we won't find them on the wish-list down in Florida!

It is interesting to note the inclusion of concierge services. Not only do we see these services being offered as a value-add by builders and developers, but increasingly by luxury agents too.

For more luxury home insights, go to http://www.coloradodreamhomes.net/

You Know When You're From Colorado When...

You're from Colorado If...

You'll eat ice cream in the winter.
It snows 5 inches and you don't expect schol to be cancelled.
You'll wear flip-flops every day of the year, regardless of temperature.
You have no accent at all, but can hear other people's. And then you make fun of them.
"Humid" is over 25%.
Your sense of direction is: Toward the mountains and away from the mountains.
You say "the interstate" and everybody knows which one.
You think that May is a totally normal month for a blizzard.
You grew up planning your Halloween costumes around your coat.
You know what the Continental Divide is.
You don't think Coors beer is that big a deal.
You went to Casa Bonita as a kid.
You've gone off-roading in a vahicle that was never intended for such activities.
You always know the elevation of where you are.
You wake up to a bautiful, 80 degree day and you wonder if it's going to snow tomorrow.
Every movie theater has military and student discounts.
Everybody wears jeans to church.
You actually know that South Park is a real place not just a show on T.V.
You know what a "trust fund hippy" is, and you know its natural habitat is Boulder.
You know you're talking to a fellow Coloradoan when they call it Elitches, not Six Flags.
A bear on your front porch doesn't bother you.
Your two favorite teams are the Broncos, and whoever is beating the Raiders.
You've been to the original Chipolte near the DU campus on Evans.
When people out East tell you they have mountains in their state too, you just laugh.
You to anywher else on the planet and the air feels "sticky" and you notice the sky is no longer blue.

For More Colorado Humor go to http://www.coloradodreamhomes.net/

The Fed is going to have to keep Easing and Easing...

A week of weakness seen for U.S. economy
Analysts bearish on data as economy 'perched on the edge of a cliff'

SAN FRANCISCO (MarketWatch) -- "Perched on the edge of a cliff." That's how one economist describes the U.S. economy as the markets get ready for a busy week of data, including numbers about the already damaged U.S. housing market, orders for durable goods and personal income and spending. "What we're looking for is confirmation that indeed the U.S. economy is slowing sharply in the fourth quarter," says Ellen Zentner, an economist at Bank of Tokyo-Mitsubishi UFJ. Zentner said that within a month, it could be apparent whether the economy is slipping into a recession or not. "The U.S. economy is really perched on the edge of a cliff right now," says Zentner. Housing has been a big drag on the economy and this coming week's data forecasts don't offer any hope that the housing outlook will improve. Analysts surveyed by MarketWatch are expecting existing home sales, for example, to drop to a seasonally adjusted annual rate of 4.99 million in October from an eight-year low of 5.04 million in September. The existing home sales report is due out at 10 a.m. on Tuesday.

On Thursday at 10 a.m., analysts are forecasting that new home sales for October will fall to a seasonally adjusted annual rate of 730,000 from 770,000 a month earlier. "We don't expect any good news on housing anytime soon, specifically on the demand front," says Ryan Sweet of Moody's Economy.com. Demand will remain weak for the remainder of the year and well into 2008, he says. In other housing-related data, October construction spending is expected to fall by 0.2% following a modest rise of 0.3% in September. That release is scheduled for 10 a.m. Friday. Two home-price measures are due out this week also: the Case-Shiller Home Price Index on Tuesday and the house price index from the Office of Federal Housing Enterprise Oversight on Thursday. For the third quarter, the Case-Shiller index is expected to fall by 5.01%, while the Ofheo index is expected to be flat in the third quarter.

Federal Reserve officials believe a substantial decline in home prices is a big risk to the economy, according to forecasts released for the first time by the Fed on Tuesday. The Fed's forecasts, combined with the summary of its October meeting, appeared to show more concern about slower growth than higher inflation. This focus on weakening growth differed from the FOMC statement released at the end of the committee's October meeting, analysts said. However, many analysts are skeptical the Fed will cut rates at its next meeting on Dec. 11. "We still think the Fed will stand idle at the December FOMC meeting, but it has become a much closer call," said Sweet of Moody's Economy.com. "Growth is fading and uncertainty is growing." Jim O'Sullivan of UBS believes that the Fed will continue to cut rates, including in December. "I suspect they're going to be surprised at how much weakness there is" in the data this week, says O'Sullivan.

In particular, he said, consumer spending and the labor market will bear watching. Economists say the labor market may be weakening after a government report on Wednesday showed more Americans continuing to receive jobless benefits. The number of Americans receiving state jobless benefits increased 7,000 to 2.57 million in the week ending Nov. 10, the Labor Department reported. Initial jobless claims fell to 330,000 but analysts are watching to see if they get worse. "Recent data on initial jobless claims suggest layoff activity is gradually accelerating as the full effects of the fallout from tighter credit conditions and the housing recession are realized," notes Sweet. He says a sustained run of more than 350,000 initial claims coupled with continued softness in hiring "would signal much deeper issues in the labor market." The Labor Department will report weekly jobless claims on Thursday at 8:30 a.m. Eastern.

The pace of consumer spending is also expected to have fallen in October. On average, analysts surveyed by MarketWatch are expecting consumer spending to increase by 0.2% in October, down slightly from its 0.3% gain in September. Sustained weakness in consumer spending, says Sweet, "could be the catalyst that tips the economy into a recession." While the jury is still out on whether to expect a recession, the Fed is at least expecting the U.S. economy to slow by more than previously thought in 2008. But the central bank is predicting inflation will remain tame. In the forecasts released on Tuesday, Fed officials said growth would slow to a range of 1.8% to 2.5% next year, down from growth around 2.45% in 2007.

For more housing info, go to http://www.ColoradoDreamHomes.net