RE/MAX Alliance Recognized as #1 in the U.S. at the 37th Annual RE/MAX Convention in Las Vegas!

RE/MAX Alliance Recognized as #1 in the U.S. at the 37th Annual RE/MAX Convention in Las Vegas!

ConocoPhillips says asset sale won't impact Louisville plans - The Denver Post

ConocoPhillips says asset sale won't impact Louisville plans - The Denver Post

Survey: More Than 70% of Homeowners Say Home Inspection Helped Them Avoid Potential Problems

RISMEDIA, March 3, 2011-Nearly three in four (72%) U.S. homeowners agree the home inspection they had when they purchased their current primary residence helped them avoid potential problems with their home, according to a survey released by the American Society of Home Inspectors (ASHI). Also, almost two in three (64%) noted, in the long run, they saved a lot of money as a result of their home inspection. As the housing market begins to recover, ASHI encourages homeowners and buyers to hire a certified home inspector and to get a home inspection to help further protect their investment.

The survey was recently conducted online by Harris Interactive on behalf of ASHI to gauge current consumer perceptions about the purpose and value of a home inspection. Results revealed 88% of all homeowners believe home inspections are a necessity, not a luxury.

"ASHI's goals have always been to build customer awareness of the importance of a home inspection and to enhance the professionalism of home inspectors," said Kurt Salomon, ASHI president. "It is encouraging to know consumers are listening and understand the significance of protecting their largest single investment, their home."

While it is clear homeowners who had an inspection understand the value it serves, many still incorrectly believe certain components are included in a standard home inspection. For example, septic systems, electrical wiring and plumbing behind drywall and swimming pools are commonly mistaken as items that are included when, in fact, they typically are not.

"ASHI remains committed to educating consumers on what a standard home inspection is likely to include," said Salomon. As such, ASHI members have committed to following a Standards of Practice and Code of Ethics that outlines what consumers should expect to be covered in a home inspection report.

During a home inspection, a qualified inspector takes a detailed look at the physical structure and systems of a house, from the roof to the foundation. A home inspector will examine the condition of the home's roof, attic and visible insulation, foundation, basement and structural components, as well as interior plumbing and electrical systems.

Additionally, nearly three in four homeowners surveyed (70 percent) assume all home inspectors must be certified and licensed, when in fact, not all are. "It is important for consumers to do their homework before hiring an inspector," said Salomon.

For a complete list of what's included in a home inspection, visit www.ASHI.org.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com

Copyright© 2011 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

Boulder County February 2011 Economic Snapshot

Economic Snapshot

A look at the current real estate market; provided by RE/MAX ALLIANCE



February/2011



Before a declining real estate market can recover it must reach a plateau. It must halt its negative momentum and begin the arduous process of turning itself around. This can often take an inordinate amount of time, because it is contingent on a number of factors. There needs to exist favorable mortgage interest rates, motivated and somewhat plentiful buyers, reasonably priced properties and acceptable levels of available inventory. There must be a timely transition from a buyer’s market to a more balanced buyer/seller market.

The Boulder Valley real estate market has struggled for the past five years as the national economy drifted into a chaotic state. For Boulder County, overall sales activity for single family and attached units dropped 42% during this five-year period; an average of 8.40% per year. A buyer’s market prevailed.

The Chinese calendar for 2010 was known as the “year of the tiger”; for Boulder County 2010 may be remembered as the “year of the plateau”. Real estate sales last year for Boulder County were comparable to 2009; less than a one percent difference.

2011, the “year of the rabbit” in the Chinese calendar, has gotten off to a quick start. Boulder County single family and attached unit sales for January/2011 are UP nearly 19% over January/2010. That’s without any government assisted first-time homebuyer program being available. Hopefully, this isn’t a tortoise and the hare tale, where the hare takes a nap midway through the course its running or the real estate market slumps in the second half of the year.

Here are some things to digest as we venture down this precarious real estate path the rest of 2011.

1. Mortgage Interest Rates: Back in the late 1980’s and early 1990’s, home buyers would have literally killed to get a thirty-year fixed rate loan for 4.75%. It would have felt like they were stealing money from the banks. They would have been lined-up for blocks; drooling on themselves. In today’s economic climate 4.75% doesn’t generate the same level of enthusiasm. It’s nice, but it doesn’t get home buyers salivating. Mortgage interest rates have risen slightly over the course of the past few months. If the housing market rights itself, look for interest rates to continue this pattern.

2. Available Inventory: That black cloud perched on the horizon is composed of bank foreclosures, short sales and HUD properties. It’s unclear how many of those little devils are out there. They keep popping their heads-up. In the past couple of years many of them have been purchased by savvy investors, first-time homebuyers or, on a more limited basis, buyers looking to take advantage of a price sensitive marketplace and make a move-up. Lack of inventory creates motivation in the mind of buyers. Unfortunately, high inventory levels of available properties have been the norm the past few years. BUT, that may be changing. New residential listing inventory for the Northern Colorado real estate market for January/2011 is down 20% compared to January/2010. Is there a pattern developing here i.e. more sales and fewer listings?

3. Residential Home Values: Finally, for a plateau to exist there needs to be stabilization in market values. For Northern Colorado, the median priced residential property sold in January/2011 for $225,000; for January/2010 that number was $212,000; for January/2005, the year when Northern Colorado sales activity peaked, it was $227,000.



Market data statistics are from IRES the Northern Colorado MLS.

Real Estate Stats for Boulder County

Economic Snapshot

A look at the current real estate market; provided by RE/MAX ALLIANCE



January/2011



The first decade of this new millennium was one of contrasts. It began on loose footing with the dot.com fiasco and the events surrounding 9/11. Then followed the years of unbridled economic growth, where people’s thoughts were centered on early retirement, travel abroad and procuring more adult toys. The decade limped to a close as the government attempted to pump new blood into an ailing economy by offering tax credits to homebuyers and salvaging the banking industry; home mortgage interest rates fell to historic lows. The question that begs an answer is, “Where are we ten years later?”

Let’s take a quick look back to see where the Boulder County real estate market was ten years ago relative to today. In January/2001 the traditional thirty-year fixed rate mortgage was at 7.07%. In December/2010 that same loan was at 4.86%. The average sales value of a single-family home in 2001 was $361,833. In 2010 the average sales value of a single-family home was $442,694. That equates to a 22.34% increase in the average sales value; approximately 2.23% per year. Using the above figures, with a 20% down payment, the principle and interest payment for the average home in 2001 was $1,945.28. In 2010, that number would be $1,879.88. Things have improved incrementally over the course of the past ten years.

The Boulder Valley real estate market appears to have weathered the economic storm and reached a point of stabilization. Boulder County sold properties in 2010, single-family homes and attached units, was 3,660. This compares to 3,665 sales in 2009. The inventory of available homes for sale still exceeds the number of potential buyers, with the Absorption Rate currently standing at 6.26 months.

Per the chart below, the average home values of sold properties have improved over last year in most market areas. This should continue as buyers who have been standing on the sidelines view this as an opportune time to purchase homes in the higher price ranges.

Home mortgage interest rates have trended-up slightly over the course of the holidays. As the economy continues to show signs of improvement, expect mortgage rates to vacillate around the 5% mark as we head into spring.

Below is an overview of sales activity for the past two years for single family homes in the various Boulder Valley areas, courtesy of IRES – the Northern Colorado MLS.



               2009       2010           %Change         2009                2010                    % Change


Area       Solds        Solds          Change          Average Price     Average Price        Change


Boulder    563           622         +10.48%         $647,584           $650,280             +.416%


Louisville   202          194           -3.96%           $394,214           $440,512          +11.74%


Lafayette    219         229          +4.56%          $352,667            $357,377           +1.33%


Superior     127         107           -15.75%         $413,935           $426,358            +3.00%


Longmont   891         831            -6.74%          $240,902           $256,175            +6.34%


Sub. Plains  373        449            +20.37%         $510,351          $549,796            +7.73%


Sub. Mtns.  203        230            +13.30%         $415,567           $411,662            -.940%


Broomfield   353       338              -4.25%           $353,343           $380,074           +7.56%


                    ===      ===             ======          =======           ======             ======


Totals …     2931     3000             +2.35%          $405,363            $433,427            +6.92%

Economic Outlook Digital Magazine!!

New from RE/MAX Alliance, our Economic Outlook Digital Magazine!!  Inside you will find all kinds of great information, from what the real estate market indicators are to home staging tips.  There is even a section for kids.  Take a look!! 

Click here to read the magazine.

LAEC reports primary job gains for the Longmont area!

4th Quarter 2010


Currently we have 197 primary employers in the Longmont

area.

~ 10 new companies: Abound Solar, American Recreation

Products, Goliath Systems, Niwot Technologies, Onsemble,

Inc., Parascript, RF Concepts, Synapse Design, TechPubs

Global, and TerraLUX which represent 148 new jobs in

2010.

~ 14 companies closed or relocated their operation

out of Longmont in 2010 resulting in a loss of 156

positions. Those companies are AgInfoLink, BioHarmony

Corporation, Cevan Nutritionals, Colorado Micro

Precision, Cornay Company, Earthmap Solutions,

ExcelStor Technology, FreeDesign, Great Basin Scientific,

InPhase, Knowledge Forge, Monolithic Sculptures, Peak

Industries, and Storage Genetics.

~ 67 existing companies added employees to their

operation in 2010 resulting in 661 new jobs.

~ 47 existing companies cutback employment in 2010

resulting in a loss of 317 jobs.

This gives us a net gain of 336 primary jobs in 2010.

~ The vacancy rate for real estate inventory (industrial and

office) in the Longmont area through the fourth quarter of

2010 is 14.6% with 1.26 million square feet available. (Net

primary employer absorption through the fourth quarter

2010 is +7,444 square feet). Note that these numbers

reflect only facilities that are ready for occupancy.

~ The Longmont Area Economic Council worked with 10

new prospects looking at the Longmont area for relocation

and/or expansion of their businesses during the fourth

quarter 2010 for a total of 45 for the year. This compares

to 7 for the same quarter in 2009 and 52 for the year.

The Longmont Area Economic Council has a

comprehensive database of available land and industrial/

office buildings. We service the City of Longmont, Lyons,

Niwot and unincorporated Boulder County area.