July Market Update

In July 2010 there was a 7.4% increase, year-over-year, in the average sales price for single family homes. At the same time, there was a sharp decline in closed transactions as compared to July 2009, which reflects a challenging real estate market. The fall out from the now expired home buying tax credits lingers longer than expected.

On a positive note, buyers can get rates as low as 4.5 to 4.25% right now. On a loan amount of $230,000, a typical loan amount for a first-time home buyer, a borrower could save $1,600 a year due to having a rate at 4.25% rather than 5.25% (which is about where rates were when the tax credit was still available). After 5 years, the borrower will have saved over $8,000. After 10 years, $16,000! Even without the tax credit, there are plenty of good reasons to buy and lots of ways to save. So, let's get to it! Call me and we'll get started on finding you a great new home.

Residential Highlights:

24.5% decrease in closed sales for July 10 compared to July 09

13.6% increase in active listings (17,983)

45.3% increase in absorption rate (6.6 months)

7.4% increase in average sold price ($297,218)

Condo/Townhome Highlights:

34.4% decrease in closed sales month over month

14.7% decrease in average days on market (93 days)

61.2% increase in absorption rate (8.8 months)

Other News:

New Home Sales Surge in June, Inventory at 42-Year Low: Sales of new U.S. single-family homes rebounded strongly in June from the prior month's record low, driving the number of houses on the market to its lowest level in nearly 42 years. Read more here

FHA Fees Changing: In September of this year, up front mortgage insurance (MI) will move from the current 2.25% of the loan amount down to 1%. Good news, right? Not so fast. The monthly MI amount will be increasing from the current annual percentage of 0.55% up to 0.9%. On a $200,000 loan, at the old annual rate of 0.55%, a borrower would have paid $91.66 in monthly MI. With the new rate, a borrower will pay $150/month. Questions? Let me know.

Five Colorado Cities on CNN's Money's 'Best Places to Live' List: Five Colorado small cities are on Money magazine's latest list of America's 100 "best places to live," with Fort Collins at No. 6, Highlands Ranch at No. 12 and Broomfield at No. 19. Read more here

Just Listed:

2685 S Zurich Ct, Denver - 4 beds/3 baths, $323,500

9573 Castle Ridge Cir, Highlands Ranch - 4 beds/4 baths, $249,900

Price Reduced:

8580 S Nelson Ct, Littleton -3 beds/4 baths, $499,000