February, 2012

What's Happening Around Town?

Featured Articles

Beware of home hazards

Advice for home sellers: market a lifestyle, not just a house

Stop your engines

Qualifying for a Fannie Mae or Freddie Mac loan

Local housing market enjoys steady improvement

Political polarization in Washington, economic crises in Europe, turmoil in the Mideast... the bad news drumbeat goes on. It's enough to make a person stop reading headlines altogether.

That's why we're exceedingly happy to bring you a host of good news from our world this month. Recent statistics show that the housing market is on the upswing, especially in the Denver area, while still offering excellent value for those looking to purchase a home.

Among the latest welcome news:

• Metro Denver experienced the third-lowest home price decline (.9%) in the country in 2011, just behind Washington D.C. and Dallas, according to S&P/Case-Shiller.
• The number of building permits issued in Denver has been on the rise since the recent low of 9,355 in 2009. In 2010, 11,591 permits were pulled; last year, that number jumped to 12,758 (through November).
• The number of people who signed contracts to buy homes late last year rose 7.3%, the highest level in a year and a half. The National Association of Realtors' index of sales agreements reached an encouraging 100.1. "The last time the index was that high was in April 2010, one month before a federal home-buying tax credit expired," reported Associated Press.
• New home sales rose 1.6% from October to November, 2011, up 10% compared to November, 2010.
• Housing affordability continues to be a big plus. The ratio of median home prices to median family income is likely to remain at record levels, according to Kiplinger.
• Mortgage rates remain enticing; they are expected to stay between 4 to 5% in 2012, as reported in Mortgage Finance.
• Colorado is expected to outperform the nation in job growth this year, adding as many as 23,000 jobs, including those in the construction sector - a positive sign for home sales.

If you've been hesitant about getting into the market due to the depiction of conditions in the media, remember that national headlines don't reflect our local market. Recovery is real. The time is right. Call me and let's get started meeting your homeownership goals.

Beware of home hazards

Home is where the heart is - and, as it turns out, it's also where the hazard lurks. Almost half of all accidental deaths, according to Realtor Magazine, occur at home.

More than three million injuries result from home accidents nationwide each year. Of these, about 55,000 are fatal - more than occur in the workplace and while driving combined. Among the top causes of death: poisons, falls, electric shock and fires (a hazard heightened at this time of year, when more people use space heaters, candles and fireplaces, all of which create potential danger).

Simple, common sense steps can be taken to avoid such problems. Consider these tips from the Home Safety Council and others:

• Use non-slip mats in the tub and shower and install grab bars.
• Install bright lights over stairs and steps and on landings.
• Keep stairs clear of clutter. 
• Always check stability before climbing a ladder; never stand on the top stair or platform.
• Install working smoke alarms and carbon monoxide detectors and hold fire drills.
• If you build or buy a new home, install fire sprinklers.
• Stand by the stove when cooking, especially when frying food.
• Keep your hot water no higher than 120F degrees; this will prevent burns.
• Store chemicals and medications in their original containers, as these containers list information that may be needed in case of a poisoning. 
• Never use food containers such as drinking glasses, cups or soda cans to store pesticide solutions, cleaning compounds, or solvents. This can result in an accidental poisoning.
• Be sure matches and cigarettes are totally extinguished before putting them in the trash.
• Never smoke in bed. 

To create your own personalized safety list, go to http://www.homesafetycouncil.org/SafetyGuide/sg_checklistgenerator_w001.asp or Google "Home Safety Checklist."

Advice for home sellers: market a lifestyle, not just a house

If you're getting ready to put your home on the market and are considering your sales advantages, don't just think of the quality of your home and its location. Think of the lifestyle options it offers a buyer.

That's the suggestion of Realty Times, which notes that while location is always important, buyers also look for other factors when choosing a home, including health and safety issues, access to cultural activities and family-friendly neighborhoods.

These conclusions are based on a survey of more than 1,000 current homeowners and those who indicated they had plans to buy a home within three years.

Among the lifestyle priorities survey participants noted:

• Ease of commuting by car: 38%
• Family-friendly neighborhood: 33%
• Access to health and safety services: 34%
• Availability of retail outlets: 32%
• Access to public transportation: 19%
• Access to nightlife and restaurants: 18%
• Access to golf courses: 6%

In another survey by Move Inc., 75% of the 1,000 younger American adults polled noted that their home "defines them and is a part of who they are." As a result, 80% reported being picky in their selection process, and 40% of these "millennials" note that they are willing to spend 30 to 60% of their gross monthly income on housing.

What does all this mean for sellers? It means thinking more creatively about how to appeal to potential buyers.

"It's an opportunity to target buyers based on their interest...," advises Realty Times. "If you're selling your home and you know that the above priorities can influence buyers, it only makes sense to play up the lifestyle options that apply to your home."

Ladies and gentlemen: stop your engines!

You're waiting in the car while your husband runs into the grocery store. You're getting ready to back out of the garage when you remember something you left inside the house. You're stuck in a drive-thru lane that hasn't moved in ten minutes.

Should you leave the car idling or turn off the engine?

Whether you're looking for the environmentally friendly answer or just simply hope to save money, the answer, according to the website Engines Off! Denver, is the same: turn off the engine.

While you might think that it takes more fuel to restart your engine than to idle, the reality is the opposite. Most cars built since the late 1980s are fuel injected. This means that idling for even ten seconds uses more fuel than restarting the engine. Most drivers waste one to two tankfuls of gas through idling each year - or over $100 million for Denver metro drivers collectively.

In addition, vehicle idling is a significant source of air pollution in the Denver area. According to Engines Off!, an idling vehicle produces about 4.8 grams of carbon monoxide. In comparison, the smoke from one cigarette produces about 67 mg. In other words, one minute of idling produces more carbon monoxide than the smoke from three packs of cigarettes. In the Denver metro area, idling produces an estimated 40,000 tons of harmful air pollution each year.

Rule of thumb? Even if you're only stopping for less than a minute (when not in traffic), turn off the engine. You'll save fuel and avoid polluting the air— a win-win for all!

Qualifying for a Fannie Mae or Freddie Mac loan

After the swirl of controversy surrounding Fannie Mae and Freddie Mac's role in the recent housing market collapse and economic downturn, it's no surprise that the rules for borrowing from these agencies have tightened. In reality, though, they haven't become exceedingly stringent, but simply returned to the more conservative standards that existed before the crash.

Borrowers, in general, must meet four criteria to secure a mortgage backed by Fannie Mae and Freddie Mac. They must have:

• The ability to make a 20% downpayment, plus closing costs.  (If providing less than a 20% downpayment, borrowers will have to meet additional requirements from the mortgage insurance companies.)
• A minimum credit score of 620.
• Income solid enough to afford monthly payments (generally, payments shouldn't exceed 28% of a borrower's gross income).
• A home value that far exceeds the mortgage balance (typically, the loan-to-value ratio should be around 80%).

For more questions on securing a Fannie Mae or Freddie Mac loan, call or email Guild Mortgage today. Ask for Lisa Miles or Julie Whalen: 303-320-1556; www.guildmortgageofcherrycreek.com.

Metro Market at a Glance