Colorado Real Estate | How is the current real estate market?

[?]

Colorado Real Estate | How is the current real estate market? 

If you look at Legacy Real Estates current market conditions in our local Colorado offices we would say the market looks excellent in terms of real estate transactions. We have experienced as much as a 25% increase in some sales numbers over last year.

Like any market stock or real estate there will be some fluctuation in certain areas of the market. Markets tend to move up and down depending on a lot of factors like the economy and interest rate figures. If you look at the numbers over a longer period of time you will see a consistent uptrend and we think that will continue over the next few quarters. Particularly if you are on the buy side of the market right now that is where the values can be found. Have the markets gone down for a while in the recent past the answer is yes but we feel that a correction is always a natural progression of any cyclical market cycle.

Let’s address another area, which seems to have been in the spotlight recently, which is subprime mortgage lending and foreclosures. Generally, subprime mortgages are for borrowers with credit scores under 620. Credit scores range from about 300 to about 900, with most consumers landing in the 600s and 700s. Someone who is habitually late in paying bills, and especially someone who falls behind on debts by 30 or 60 or 90 days or more, will suffer from a plummeting credit score. If it falls below 620, that consumer is in subprime territory. Subprime loans have higher rates than equivalent prime loans. Lenders consider many factors in a process called risk-based pricing when they come up with mortgage rates and terms. This makes it impossible to generalize about subprime rates. They are higher, but how much higher depends on factors such as credit score, size of down payment, and what types of delinquencies the borrower has in the recent past. The point here is yes homes which started with subprime lending products are in some cases heading towards foreclosure and becoming in some cases bank owned properties but if we look at the numbers they are small compared to the overall wealth of the nation and our state as a whole.

With help from the federal reserve, who keeps a close eye on these numbers we should be able to stay the course and see some positive signs soon in our real estate market numbers. The other point to keep in mind is real estate markets are not national they are local and center on neighborhoods. Some areas are decreasing in value; some stay even and others are showing good increases in numbers.

The media likes to portray drastic changes in numbers and create some hysteria in the real estate markets. Some of our older more seasoned brokers remember times in the 70’s and 80’s when interest rates soared to unbelievable numbers as high as 18-19%. Foreclosures were sky high and homes prices took a big hit and the economy was in the dumps. However those same brokers will tell you that markets shift and they saw increased home prices and better market conditions soon after these periods. By falling victim to the hype and media generated news you too will fall prey to the doomsayers of today’s real estate market. We at Legacy Real Estate Brokers Inc. feel that if we stay the course markets will gradually turn upward and we will have a myriad of real estate opportunities in the coming months and years ahead.

Tom Reed and Bill Brown are local authors and real estate experts of Legacy Real Estate Brokers Inc. in Denver Colorado. You can visit there website at www.discovercoloradorealestate.com

Discussion Forum

Topic	Posts	Last Poster
Is Social Media Marketing Effective in Real Estate Industry?	3	katescape
The importance of Local.com to real estate agents	1	HItxt101
NEED AGENTS / & REFERRALS	45	DainaBurness
Ethical values in real estate business	2	ballyhoo
MLS exposure without paying the commissions!!	5	uniquepam
Ethics	2	garyfrimann
3 Point Digital Marketing Strategy and the Importance of the ‘Assist’	1	HItxt101
35% Referrals to Valley of the Sun - Arizona	1	k4homes
Inexpensive Real Estate Websites	5	ncarey
RisMedia Forum - What a Response!!!	1	mycondospot

RSS feed | Trackback URI

1 Comment »

Pingback by how to market myself

2008-04-22 16:42:13

[…] group have put me in a better light and i am looking forward with meeting and working with them ohttp://rismedia.com/localnews/denver-colorado/2007/12/26/colorado-real-estate-how-is-the-current-rea…Community - How to Market Myself as A Salesforce.com Admin in my …How to market myself as A […]

Reply to this comment

 

Click here to cancel "reply".

Name (required)

E-mail (required - never shown publicly)

URI

Your Comment (smaller size | larger size)

You may use <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong> in your comment.