Dear Friends,
Most of us are great at looking back on historic data and "explaining" how the events affected the market. I am going on record with my 2009 forecast. Of course, all of the economic indicators for the world, nation, state, and the Durango Area are quite clear for 2009, so making a forecast should be easy (kidding).
Preliminary 2008 Market Statistics:
These statistics are from the Colorado Real Estate Network multiple listing service from January 1, 2008 thru December 22, 2008 for La Plata County:
Total of 846 Properties Sold...$323,264,214 Market Volume...$382,109 Average Price...95% Sold vs List Price, and 193 Days On Market.
Residential: 681 Properties Sold...$263,395,137...$386,777 Average Price...96% Sold Vs List Price, and 176 Day On Market.
Other sold properties include: 127 Land listings, 32 commercial properties, and 6 multi-family.
These are not final numbers for 2008, and the totals will be higher as sold properties are recorded for the last days of December. Also, please understand that other properties outside of the Multiple Listing Service are not in this review or forecast.
How do these numbers compare to the highest year of transactions ever?
In 2005, the total properties sold was 1,917 as recorded by our MLS service, and of those, 1,257 were residential, 480 land, 71 commercial, 8 multi-family, and 1 farm and ranch. In total, 56% fewer properties have sold, and of those, there were 50% fewer residential listings!
MARKET FORECAST FOR 2009...DRUM ROLL...!!!
ALL PROPERTIES: 950 SOLD (APPROXIMATELY A 10% INCREASE)
MARKET VOLUME: $332,500,000 (APPROXIMATELY EVEN)
AVERAGE PRICE: $350,000 (APPROXIMATELY AN 8% DECREASE)
RESIDENTIAL: 770 SOLD (APPROXIMATELY A 10% INCREASE)
MARKET VOLUME: $277,200,000 (APPROXIMATELY EVEN)
AVERAGE PRICE: $355,000 (SAME 8% DECREASE)
AVERAGE DAYS ON MARKET UP FROM AN AVERAGE OF 176 DAYS TO 190 DAYS
SOLD VERSUS LIST PRICE DOWN FROM 96% TO 94%
Commercial will have additional vacancy rates, more properties on the market, increased days on the market, and greater price pressure, as businesses are further stretched for revenue, and consumers continue to tighten their belts.
Land sales will continue to be slow, but they will quickly rebound in 2010. In 2009, we will start to work off some of the current residential inventory, and in 2010, we will return to builders providing new inventory, thus increasing their demand for vacant land parcels.
For residential, we will see demand increase, but prices will continue to be under pressure thoughout 2009. The demand change will provide the stimulous for an exciting 2010, because the increased transactions of 2009 will reduce the number of homes on the market. By 2010, the demand should outpace supply.
November and December of 2008 have some of the lowest market transactions that we have seen in 20 years, even though the population has increased by 40% in these two decades. These low transactions are a result of the October economic turmoil, and following the difficulties of the entire year of 2008. The beginning of 2009 will continue to be slow, because the contract activity has not increased through December, and that has a direct impact on the number of sold properties in the months following. If my forecast is correct, hang in there as we will start to see things improve, and hopefully by mid-year, we will all be more enthusiastic. We will look back at October 2008 as our emotional low, and in fact, the consumer confidence index was at an all time low in that month.
If you would like to have futher conversations on Durango Colorado real estate, please contact me, Don Ricedorff at The Wells Group 970-375-7014, don@frontier.net, or at my website at durangorealproperty.com.
Don Ricedorff is a licensed real estate broker in the State of Colorado, with 16 years of experience, and he resides in Durango Colorado. He has numerous real estate designations, which have provided him with an unparalleled education to assist his clients. The designations include:
CRS, Certified Residential Specialist
CRB, Certified Residential Broker
CCIM, Certified Commercial Investment Member
ABR, Accredited Buyer Representation
GRI, Graduate of Realtor Institute
RSPS, Resort and Second Home Property Specialist
CIPS, Certified International Property Specialist
SRES, Senior Real Estate Specialist
He is also an active volunteer in the community and his church. His highest aspiration is spending time with his wife, Janet, and his three children Kelly, Katie, and Kyle. His other interests include playing tennis, fly fishing, hiking, boating, and water skiing.
Monday, December 22, 2008
Thursday, December 4, 2008
How Do You Know When You Are At The Bottom Of The Real Estate Market? This Is Your Source For Durango Colorado Real Estate News.
The quick answer is that you don't know, and I don't know if there has been a bottom to the real estate market, or when there will be a bottom to the real estate market. Perhaps the bottom was 30 days ago, or it is now or six months from now. We will only be confident after we look back. Markets are not easy to predict, but the experts generally look for the length of the downturn as compared to past recessions, and the prospects for economic recovery. Some investers choose the contrarian investment method. A contrarian believes that the conventional wisdom of the moment, and the herd mentality leads to pendulum swings beyond the current risks, which leads to overly optimistic or pessimistic behavior. This certainly was the case in the optimism of 2005, at the very height of the market, and millions of investors, speculators, builders, and developers have paid dearly for that mistake, and it may be true in the pessimism of the moment. For most people in the United States, real estate has been their single biggest and best investment. Most Americans who have owned real estate for more than five years still have appreciation in their property, and some have huge appreciation. A high percentage of the senior population count on their home as their single biggest nest egg.
The market will begin its upward swing when consumer confidence is regained. Consumer confidence affects their purchasing patterns, as discretionary spending is impacted by how consumers "feel" about their jobs, life, and security. Major purchases such as automobiles and homes are greatly impacted by consumer confidence. The Consumer Confidence Index bottomed in October 2008, an all time low, with a 38.8 index rating (1985=100), and improved moderately in November to 44.9. Perhaps the 41 year low in October will be the bottom of consumer confidence. This low level of consumer confidence suggests the real estate market will not rebound in the short term, so we are unlikely to see a major shift in the real estate market in the next six months, and perhaps longer.
From a contrarian point of view, here are the positive considerations for purchasing in the near future:
a) Interest rates are at nearly an all time low. Yesterday, Wells Fargo offered 30 year financing with no points or origination fee at 5.5% in Durango. Low interest rates spur the purchasing of real estate as low rates directly improve purchasing power.
b) Prices have fallen nationally, regionally, and locally. Astute investors and home buyers are taking this opportunity to purchase at discounted prices.
c) There is a large supply of homes on the market, which means selection is greater, and it improves the purchaser's negotiation position.
d) The national news is doom & gloom.
e) A December 2, 2008 article in The Wall Street Journal quoted an economics professor at Massachussetts Institute of Technology that he predicts house prices to increase an average of one percentage point higher than inflation over the long term, and in the same article, a survey completed by Realogy Corp. found that 91% thought that owning a home was the best long-term investment they could make.
f) The huge bail out program, and other stimulus programs should begin to improve the economic vitality in the first quarter of 2009, which may help to improve consumer confidence.
g) The real estate market has fallen for three straight years. This is longer than previous downturns.
A contrarian investor would choose a time like now to purchase real estate. There are others that will want to take a wait and see approach. How about you? What best describes you?
If you would like to have further conversations on Durango Colorado real estate, please contact me, Don Ricedorff at The Wells Group 970-375-7014, don@frontier.net, or at my website at durangorealproperty.com.
Don Ricedorff is a licensed real estate broker in the State of Colorado, with 16 years of experience, and he resides in Durango Colorado. He has numerous real estate designations, which have provided him with an unparalleled education to assist his clients. The designations include:
CRS, Certified Residential Specialist
CRB, Certified Residential Broker
CCIM, Certified Commercial Investment Member
ABR, Accredited Buyer Representation
GRI, Graduate of Realtor Institute
RSPS, Resort and Second Home Property Specialist
CIPS, Certified International Property Specialist
SRES, Senior Real Estate Specialist
He is also an active volunteer in the community and his church. His personal interests include spending time with his wife and three children, playing tennis, fly fishing, hiking, boating, and water skiing.
The market will begin its upward swing when consumer confidence is regained. Consumer confidence affects their purchasing patterns, as discretionary spending is impacted by how consumers "feel" about their jobs, life, and security. Major purchases such as automobiles and homes are greatly impacted by consumer confidence. The Consumer Confidence Index bottomed in October 2008, an all time low, with a 38.8 index rating (1985=100), and improved moderately in November to 44.9. Perhaps the 41 year low in October will be the bottom of consumer confidence. This low level of consumer confidence suggests the real estate market will not rebound in the short term, so we are unlikely to see a major shift in the real estate market in the next six months, and perhaps longer.
From a contrarian point of view, here are the positive considerations for purchasing in the near future:
a) Interest rates are at nearly an all time low. Yesterday, Wells Fargo offered 30 year financing with no points or origination fee at 5.5% in Durango. Low interest rates spur the purchasing of real estate as low rates directly improve purchasing power.
b) Prices have fallen nationally, regionally, and locally. Astute investors and home buyers are taking this opportunity to purchase at discounted prices.
c) There is a large supply of homes on the market, which means selection is greater, and it improves the purchaser's negotiation position.
d) The national news is doom & gloom.
e) A December 2, 2008 article in The Wall Street Journal quoted an economics professor at Massachussetts Institute of Technology that he predicts house prices to increase an average of one percentage point higher than inflation over the long term, and in the same article, a survey completed by Realogy Corp. found that 91% thought that owning a home was the best long-term investment they could make.
f) The huge bail out program, and other stimulus programs should begin to improve the economic vitality in the first quarter of 2009, which may help to improve consumer confidence.
g) The real estate market has fallen for three straight years. This is longer than previous downturns.
A contrarian investor would choose a time like now to purchase real estate. There are others that will want to take a wait and see approach. How about you? What best describes you?
If you would like to have further conversations on Durango Colorado real estate, please contact me, Don Ricedorff at The Wells Group 970-375-7014, don@frontier.net, or at my website at durangorealproperty.com.
Don Ricedorff is a licensed real estate broker in the State of Colorado, with 16 years of experience, and he resides in Durango Colorado. He has numerous real estate designations, which have provided him with an unparalleled education to assist his clients. The designations include:
CRS, Certified Residential Specialist
CRB, Certified Residential Broker
CCIM, Certified Commercial Investment Member
ABR, Accredited Buyer Representation
GRI, Graduate of Realtor Institute
RSPS, Resort and Second Home Property Specialist
CIPS, Certified International Property Specialist
SRES, Senior Real Estate Specialist
He is also an active volunteer in the community and his church. His personal interests include spending time with his wife and three children, playing tennis, fly fishing, hiking, boating, and water skiing.
Thursday, November 6, 2008
Do you want to invest in Durango Colorado real estate? Is now the time?
We have learned so many lessons lately, yet the picture is fuzzier than ever! Our national economy has nearly collapsed, and drastic measures have been taken to stop the slide. The housing market, the credit crunch, the gas prices have all taken their toll on the economy, and the safe haven of the rest of the world has taken ill with us. What do you do today to find invesment returns for tomorrow? It is a difficult time to invest.
The stock market continues to have dramatic shifts up and down, but mostly down. In October alone, the market dropped 14%, and most investors are experiencing a paper loss of approximately 40% in their stock and retirement portfolios this year. Financial advisors are recommending to hold steady, and let the "market" return over time, but what if you do not want to follow that course, or you have money to invest for return today? Where should you put it? We are in an economic period with downward pressure on prices, so it is unlikely that inflation will be a factor for a little while. Our needs to print money and increase our national debt are at historic levels.
How about precious metals? Gold has dropped in value by 25% since March, when it topped out at $1,000 per ounce, and the one detriment to owning precious metals is the lack of income while you hold them. Precious metals must appreciate in value to provide an investment return. Short term prices on gold are unlikely to increase greatly, because there isn't any inflation, but when inflation returns, precious metals will provide a solid hedge.
Interest rates are at nearly historic lows, so CD's, mortgage backed securities, and treasuries will not provide much of a return. Over the long term, they typically lose value versus inflation, and yes, we will have inflation again. It will probably return within a couple of years with a vengeance, as our current money supply strategy, and printing money to cover our debt will increase the value of materials. How does this work? Our dollar will lose value when we increase the money supply, because we just print more without increasing the value. Other countries are not going to want to trade their valuable resources, such as oil, unless we are giving them solid value, so the price increases to make up the difference. Now, I must say that I am not an economist, but I think that is accurate.
What investment offers a return as it is held, and will give above average returns when inflation comes back? You guessed it! REAL ESTATE! Of course, we are talking about real estate investments, not real estate speculation, which led to a lot of our problems. What is the difference? Real estate investments typically require a 20% to 30% down payment, which allows us to "ride" through tougher market cycles. Residential real estate investments typically give a 4% to 6% return from rents while you hold it, and it offers great returns when hedged against inflation. Also, real estate has intrinsic value, the value of materials and workmanship, which protects against wild swings in the economy. Is this true in Durango Colorado real estate? YES! Values today are down 4% from a year ago, in one of the most trying real estate cycles of all time. Real estate investments will usually provide double digit returns during most business cycles, when inflation and rent return are added together. The other components in timing a purchase are the market interest rates, supply, and demand. As mentioned in my recent blogs, this is the perfect time to buy. Interest rates are in the 6% range, the supply of homes is at a record high, and the demand is soft, which means you should be able to get a below market deal, which will increase your long term value.
So, what are you waiting for? Are you waiting to hit the absolute bottom of the market? A strategy to perfectly time the market is rarely successful, and it works against the market gurus who suggest that "pigs get fat, and hogs get slaughtered"! Call me and let's discuss this in more length.
Don
If I can be of any service, please contact me: Don Ricedorff at 970-375-7014, don@frontier.net, or at my website at durangorealproperty.com.
Don Ricedorff is a licensed real estate broker in the State of Colorado and he resides in Durango Colorado. He has broad experience and numerous real estate designations, which have provided him with an unparalleled education to assist his clients.
CRS, Certified Residential Specialist
CRB, Certified Residential Broker
CCIM, Certified Commercial Investment Member (The toughest real estate designation)
ABR, Accredited Buyer Representation
GRI, Graduate of Realtor Institute
RSPS, Resort and Second Home Property Specialist
CIPS, Certified International Property Specialist
SRES, Senior Real Estate Specialist
He is also an active volunteer in the community and his church. His personal interests include spending time with his family,tennis, fly fishing, hiking, boating, and water skiing.
The stock market continues to have dramatic shifts up and down, but mostly down. In October alone, the market dropped 14%, and most investors are experiencing a paper loss of approximately 40% in their stock and retirement portfolios this year. Financial advisors are recommending to hold steady, and let the "market" return over time, but what if you do not want to follow that course, or you have money to invest for return today? Where should you put it? We are in an economic period with downward pressure on prices, so it is unlikely that inflation will be a factor for a little while. Our needs to print money and increase our national debt are at historic levels.
How about precious metals? Gold has dropped in value by 25% since March, when it topped out at $1,000 per ounce, and the one detriment to owning precious metals is the lack of income while you hold them. Precious metals must appreciate in value to provide an investment return. Short term prices on gold are unlikely to increase greatly, because there isn't any inflation, but when inflation returns, precious metals will provide a solid hedge.
Interest rates are at nearly historic lows, so CD's, mortgage backed securities, and treasuries will not provide much of a return. Over the long term, they typically lose value versus inflation, and yes, we will have inflation again. It will probably return within a couple of years with a vengeance, as our current money supply strategy, and printing money to cover our debt will increase the value of materials. How does this work? Our dollar will lose value when we increase the money supply, because we just print more without increasing the value. Other countries are not going to want to trade their valuable resources, such as oil, unless we are giving them solid value, so the price increases to make up the difference. Now, I must say that I am not an economist, but I think that is accurate.
What investment offers a return as it is held, and will give above average returns when inflation comes back? You guessed it! REAL ESTATE! Of course, we are talking about real estate investments, not real estate speculation, which led to a lot of our problems. What is the difference? Real estate investments typically require a 20% to 30% down payment, which allows us to "ride" through tougher market cycles. Residential real estate investments typically give a 4% to 6% return from rents while you hold it, and it offers great returns when hedged against inflation. Also, real estate has intrinsic value, the value of materials and workmanship, which protects against wild swings in the economy. Is this true in Durango Colorado real estate? YES! Values today are down 4% from a year ago, in one of the most trying real estate cycles of all time. Real estate investments will usually provide double digit returns during most business cycles, when inflation and rent return are added together. The other components in timing a purchase are the market interest rates, supply, and demand. As mentioned in my recent blogs, this is the perfect time to buy. Interest rates are in the 6% range, the supply of homes is at a record high, and the demand is soft, which means you should be able to get a below market deal, which will increase your long term value.
So, what are you waiting for? Are you waiting to hit the absolute bottom of the market? A strategy to perfectly time the market is rarely successful, and it works against the market gurus who suggest that "pigs get fat, and hogs get slaughtered"! Call me and let's discuss this in more length.
Don
If I can be of any service, please contact me: Don Ricedorff at 970-375-7014, don@frontier.net, or at my website at durangorealproperty.com.
Don Ricedorff is a licensed real estate broker in the State of Colorado and he resides in Durango Colorado. He has broad experience and numerous real estate designations, which have provided him with an unparalleled education to assist his clients.
CRS, Certified Residential Specialist
CRB, Certified Residential Broker
CCIM, Certified Commercial Investment Member (The toughest real estate designation)
ABR, Accredited Buyer Representation
GRI, Graduate of Realtor Institute
RSPS, Resort and Second Home Property Specialist
CIPS, Certified International Property Specialist
SRES, Senior Real Estate Specialist
He is also an active volunteer in the community and his church. His personal interests include spending time with his family,tennis, fly fishing, hiking, boating, and water skiing.
Monday, October 6, 2008
If you are thinking of buying a more expensive home, is now the time? Yes!! See how you can save money now on Durango Colorado real estate.
We are starting to see some real "buys" in the market, and it may be time for you to consider snatching one, but maybe you have to sell a home to buy another. If that is your situation, this is the best time to be a "move up" buyer.
Let's pretend for a moment that you could have sold your home and purchased a new home when the market was stronger, and for easy numbers let's assume the home you were selling was $400,000 and the new home was $600,000. Let's also assume that the market has corrected by 10% on prices, and the concern is the negative of taking less for your home. In reality, you are better off today in selling and buying a more expensive home than you would have when the market was better! How can that be? It is simple, if the market value of the property is 10% less for both properties, you will save $20,000 purchasing today.
Let's look at the math:
When the market was stronger:
Price of home: $400,000
Price of new home: $600,000
Difference: $200,000
After the market corrected: (10% Price Adjustment)
Price of home: $360,000 ($400,000 - 10%)
Price of new home: $540,000 ($600,000 - 10%)
Difference: $180,000
Savings: $20,000 !!!
Now, in addition, the market inventory is much greater, offering you choices that were not available in a stronger market. The combination of a better value equation coupled with more inventory, and historic low interest rates makes this the best time to purchase a home.
If you would like further information on this idea or a market evaluation of your home in Durango/Bayfield Colorado, please contact me, Don Ricedorff at The Wells Group real estate brokerage, 970-375-7014, e-mail me at don@frontier.net, or visit me on the web at www.durangorealproperty.com.
Don Ricedorff is a licensed real estate broker in the State of Colorado, and he resides in Durango Colorado. He has numerous real estate designation including, CRS, CRB, CCIM,ABR, GRI, RSPS, and CIPS, and he is active in his church and in the community.
Let's pretend for a moment that you could have sold your home and purchased a new home when the market was stronger, and for easy numbers let's assume the home you were selling was $400,000 and the new home was $600,000. Let's also assume that the market has corrected by 10% on prices, and the concern is the negative of taking less for your home. In reality, you are better off today in selling and buying a more expensive home than you would have when the market was better! How can that be? It is simple, if the market value of the property is 10% less for both properties, you will save $20,000 purchasing today.
Let's look at the math:
When the market was stronger:
Price of home: $400,000
Price of new home: $600,000
Difference: $200,000
After the market corrected: (10% Price Adjustment)
Price of home: $360,000 ($400,000 - 10%)
Price of new home: $540,000 ($600,000 - 10%)
Difference: $180,000
Savings: $20,000 !!!
Now, in addition, the market inventory is much greater, offering you choices that were not available in a stronger market. The combination of a better value equation coupled with more inventory, and historic low interest rates makes this the best time to purchase a home.
If you would like further information on this idea or a market evaluation of your home in Durango/Bayfield Colorado, please contact me, Don Ricedorff at The Wells Group real estate brokerage, 970-375-7014, e-mail me at don@frontier.net, or visit me on the web at www.durangorealproperty.com.
Don Ricedorff is a licensed real estate broker in the State of Colorado, and he resides in Durango Colorado. He has numerous real estate designation including, CRS, CRB, CCIM,ABR, GRI, RSPS, and CIPS, and he is active in his church and in the community.
Thursday, September 18, 2008
The Perfect Season
Have you noticed the beautiful fall days, with a hint of chill in the air in the morning, and warming to the mid-70's during the day? How about the deep blue skies and the clear rivers and streams? Even, the fall colors are beginning to show. Yes, it is the perfect season.
It is also the perfect season for real estate. This has been a year of transition in the real estate and financial markets, and it is clearly a buyers market. What makes a perfect season for real estate? The market must have adequate choices; a couple of years ago, there was a low inventory, and few choices for buyers. Today, the number of homes available is great, and buyers have significant choices. Second, this is a great time for negotiation, as there is competition in many neighborhoods, and we are in the fall selling season prior to winter. Third, if you have solid credit, an adequate down payment, and most important, a good credit score, money is available, and interest rates are low. The low cost of money, many great choices, and a strong negotiation position makes this the perfect season to buy!!
Last, this is the perfect season in our life! We are fortunate to live in a great country, with all of our freedoms, and to wake up each day to a bright and wonderful future. We need to be thankful for those serving in the armed forces that protect our freedoms, and be thankful for those in leadership of our nation, state, country, and city for their commitment to give of themselves to better our opportunities. Most importantly for those of us that call Durango home, we live in the best place in the country, and there are people all over this nation that wish they could be here.
This is truly a blessed season. Enjoy and make the most of it, and don't forget to vote.
Don
If I can be of any service, please contact me: Don Ricedorff at 970-275-7014, don@frontier.net, or at my website at durangorealproperty.com.
Don Ricedorff is a licensed real estate broker in the State of Colorado, and he resides in Durango Colorado. He has numerous real estate designations including, CRS, CRB, CCIM, ABR, GRI, RSPS, and CIPS, and he is active in his church, and in the community.
It is also the perfect season for real estate. This has been a year of transition in the real estate and financial markets, and it is clearly a buyers market. What makes a perfect season for real estate? The market must have adequate choices; a couple of years ago, there was a low inventory, and few choices for buyers. Today, the number of homes available is great, and buyers have significant choices. Second, this is a great time for negotiation, as there is competition in many neighborhoods, and we are in the fall selling season prior to winter. Third, if you have solid credit, an adequate down payment, and most important, a good credit score, money is available, and interest rates are low. The low cost of money, many great choices, and a strong negotiation position makes this the perfect season to buy!!
Last, this is the perfect season in our life! We are fortunate to live in a great country, with all of our freedoms, and to wake up each day to a bright and wonderful future. We need to be thankful for those serving in the armed forces that protect our freedoms, and be thankful for those in leadership of our nation, state, country, and city for their commitment to give of themselves to better our opportunities. Most importantly for those of us that call Durango home, we live in the best place in the country, and there are people all over this nation that wish they could be here.
This is truly a blessed season. Enjoy and make the most of it, and don't forget to vote.
Don
If I can be of any service, please contact me: Don Ricedorff at 970-275-7014, don@frontier.net, or at my website at durangorealproperty.com.
Don Ricedorff is a licensed real estate broker in the State of Colorado, and he resides in Durango Colorado. He has numerous real estate designations including, CRS, CRB, CCIM, ABR, GRI, RSPS, and CIPS, and he is active in his church, and in the community.
Monday, September 15, 2008
THE RULES HAVE CHANGED FOR BUYING REAL ESTATE IN DURANGO COLORADO AND ELSEWHERE!
Today's news, September 15, 2008: Lehman Brothers files bankruptcy notice and Merrill Lynch agrees to a forced sale to Bank of America for $50 billion, resulting in further turmoil in the financial markets. What does this mean to you if you are buying or selling real estate in Durango Colorado?
First, the financial markets are global, and these developments are evidence that the sub-prime mortgage fiasco has not run its full course. Even before the recent change with Freddie Mac, and Fannie Mae to government oversight, lenders have changed the rules for qualifying for mortgages. Today, your credit worthiness is more important than it has been in the last decade or longer. The qualifying requirements have also tightened in the last 12 months. For sellers, this means fewer qualified buyers, and for buyers, it means much tougher standards, a more difficult loan process, and potentially more expensive credit. For borrowers with excellent credit, and a low debt-to-income ratio, they will see very little difference.
If you learn nothing else from this article, KNOW THIS: your credit score will determine the cost, and even the potential for borrowing money. If you have a credit score of 740 or higher, you will get the best rates. If your credit score is 695, you may have to pay a 1/4% higher interest rate, and a borrower with a score of 655 will pay 1/2% or more. This impacts the amount of money a lender may loan to a borrower, and the the difference in cost of that money. For example, on a $400,000 loan with the rate at 6.5% the borrower with a credit score of 655 will pay $166.60 more per month than the same amount of loan, but with a credit score of 740. If we use the same $400,000 loan, and we use equivalent payments, the borrower with the 655 credit score will be able to borrow $25,000 less money.
The loan to value ratios have also tightened. It was not uncommon in the recent past to get a 100% loan, but today, the minimum down payment is 5%, and that is on a primary residence. Other important changes include the the cost of jumbo financing, which is required on loan amounts above $443,750 in La Plata County. Jumbo rates are 1.5% to 2.0% higher interest rates than conforming loan amounts. Some of the manufactured homes and condominiums are harder to finance today, as compared to the last few years, and underwriters have less discretion on loan requirements, and procedures than in the past.
The Good News: The federal government has taken huge steps to stabilize the financial markets, and the economy. They have reduced the impact of the sub-prime mortgage crisis, and they have even added incentives for purchase. Tip: Be sure to ask your lender about the $7,500 first time home buyer tax credit, if you think you may qualify.
The above quotes are used for example only, interest rates and costs change daily, and may be different by lender. It has never been more important to use a high quality, knowledgeable lender. Please do not make the mistake of many borrowers, and assume that all lenders are alike, and that they offer the same loan products, with the same level of advise and experience. In fact, I highly recommend high quality local lenders to assist you, and to advise you. We have seen situations with some "internet" companies that make promises, and then don't deliver, and for most borrowers, this is one of the biggest financial decisions of their life, and the quality of lender reprentation is key. For this article, I received help from David Fountain of Wells Fargo Mortgage, and I would highly recommend his service. You may reach him in his Durango Colorado office at 970-385-9360.
Real estate market good new! The sale of existing homes in July in the western states surpassed July 2007. The numbers were 106,000 units versus 102,000, and there are some individual markets seeing a rebound in real estate. These include Colombus, Oklahoma City, Charleston West Virginia, and in our state, Colorado Springs. Many real estate brokers and some national media believe that we are seeing the bottom of the market. If you are a buyer, getting your "ducks in a row" with your credit score and credit report may make a big difference as you find a home to purchase. For those of you that have not taken the first step, contact a good lender, and have them provide you with a pre-qualification letter. This will help you with your real estate broker, and in your negotiation on a property. If you have already contacted your lender, then call your Realtor to find your perfect property.
If I can be of any service, please contact me: Don Ricedorff at don@frontier.net, at my website at durangorealproperty.com, or by phone at 970-259-5007.
Don Ricedorff is a licensed real estate broker in the State of Colorado, and he resides in Durango Colorado. He has numerous real estate designations including, CRS, CRB, CCIM, ABR, GRI, RSPS, and CIPS, and he is active in his church, and in the community.
First, the financial markets are global, and these developments are evidence that the sub-prime mortgage fiasco has not run its full course. Even before the recent change with Freddie Mac, and Fannie Mae to government oversight, lenders have changed the rules for qualifying for mortgages. Today, your credit worthiness is more important than it has been in the last decade or longer. The qualifying requirements have also tightened in the last 12 months. For sellers, this means fewer qualified buyers, and for buyers, it means much tougher standards, a more difficult loan process, and potentially more expensive credit. For borrowers with excellent credit, and a low debt-to-income ratio, they will see very little difference.
If you learn nothing else from this article, KNOW THIS: your credit score will determine the cost, and even the potential for borrowing money. If you have a credit score of 740 or higher, you will get the best rates. If your credit score is 695, you may have to pay a 1/4% higher interest rate, and a borrower with a score of 655 will pay 1/2% or more. This impacts the amount of money a lender may loan to a borrower, and the the difference in cost of that money. For example, on a $400,000 loan with the rate at 6.5% the borrower with a credit score of 655 will pay $166.60 more per month than the same amount of loan, but with a credit score of 740. If we use the same $400,000 loan, and we use equivalent payments, the borrower with the 655 credit score will be able to borrow $25,000 less money.
The loan to value ratios have also tightened. It was not uncommon in the recent past to get a 100% loan, but today, the minimum down payment is 5%, and that is on a primary residence. Other important changes include the the cost of jumbo financing, which is required on loan amounts above $443,750 in La Plata County. Jumbo rates are 1.5% to 2.0% higher interest rates than conforming loan amounts. Some of the manufactured homes and condominiums are harder to finance today, as compared to the last few years, and underwriters have less discretion on loan requirements, and procedures than in the past.
The Good News: The federal government has taken huge steps to stabilize the financial markets, and the economy. They have reduced the impact of the sub-prime mortgage crisis, and they have even added incentives for purchase. Tip: Be sure to ask your lender about the $7,500 first time home buyer tax credit, if you think you may qualify.
The above quotes are used for example only, interest rates and costs change daily, and may be different by lender. It has never been more important to use a high quality, knowledgeable lender. Please do not make the mistake of many borrowers, and assume that all lenders are alike, and that they offer the same loan products, with the same level of advise and experience. In fact, I highly recommend high quality local lenders to assist you, and to advise you. We have seen situations with some "internet" companies that make promises, and then don't deliver, and for most borrowers, this is one of the biggest financial decisions of their life, and the quality of lender reprentation is key. For this article, I received help from David Fountain of Wells Fargo Mortgage, and I would highly recommend his service. You may reach him in his Durango Colorado office at 970-385-9360.
Real estate market good new! The sale of existing homes in July in the western states surpassed July 2007. The numbers were 106,000 units versus 102,000, and there are some individual markets seeing a rebound in real estate. These include Colombus, Oklahoma City, Charleston West Virginia, and in our state, Colorado Springs. Many real estate brokers and some national media believe that we are seeing the bottom of the market. If you are a buyer, getting your "ducks in a row" with your credit score and credit report may make a big difference as you find a home to purchase. For those of you that have not taken the first step, contact a good lender, and have them provide you with a pre-qualification letter. This will help you with your real estate broker, and in your negotiation on a property. If you have already contacted your lender, then call your Realtor to find your perfect property.
If I can be of any service, please contact me: Don Ricedorff at don@frontier.net, at my website at durangorealproperty.com, or by phone at 970-259-5007.
Don Ricedorff is a licensed real estate broker in the State of Colorado, and he resides in Durango Colorado. He has numerous real estate designations including, CRS, CRB, CCIM, ABR, GRI, RSPS, and CIPS, and he is active in his church, and in the community.
Thursday, August 14, 2008
You Can Benefit From A Buyer's Advocate In The Durango Colorado Real Estate Market...
This is perhaps the most important time to have an advocate in the real estate market. The need is great, because of the rapid change in the real estate market in Durango Colorado, and around the nation. The perception of the market by buyers and sellers is in transition. Everyone recognizes the shift to a buyer's market, and that buyers will more directly dictate terms and conditions, and there are deeply discounted properties on the market that are getting attention. As a buyer, what can you expect? How do you find the properties that are more distressed? How much shall you offer for a property? How do you manage the negotiation process? How do you negotiatate inspection issues? Do you clearly understand title issues and how they can impact your use and enjoyment of the property?
In Colorado, a real estate broker has the opportunity to provide service to buyers as a seller's agent, a transaction broker or a buyer's agent. Of course a seller's agent is "working" for the seller on the sellers behalf. As a transaction broker, the broker can not advocate or advise the customer. As a buyer's agent, a contract establishing "agency" is established, and the real estate broker may use their knowledge and experience to assist the buyer through the buying process. The real estate broker can advise and advocate for the buyer, and in fact, the real estate broker has a higher degree of responsibility to the client. Most often, the buyer's agent is paid the same, regardless of the type of relationship, and typically, the commissions are paid by the seller through the listing contract. There are other ways a buyer's agent can be paid if preferred by the buyer, and the real estate broker can discuss these with you. Enough of the legal! Simply said, the State of Colorado through the real estate commission has established a method for an agent to directly assist you.
Not all buyer's agents are created the same! Of course, there are lots of differences between real estate brokers, and their ability to assist you. Some of the basic criteria can vary greatly. Here are some of the questions you may want to ask. How much real estate experience does the real estate broker have? How long have they been in this market? Do they specialize in a segment of the market? What further education credentials have they completed? Ask them to provide the most recent statistics on the market. How many days on the market for properties? Is this growing? What is the sales price of recently sold properties versus their final list price? How would they recommend to work with you and why? How can they get you the best possible "deal"? What would they recommend for the negotiation process? Chemistry also plays a role, and by interviewing the broker, you can determine if that person is a good fit for you.
Last, you may want to consider real estate brokers who have the ABR designation. ABR stands for Accredited Buyer's Representative, and it is a designation awarded by the Real Estate Buyer's Agent Council of the National Association of Realtors. It is the benchmark of excellence in buyer representation. These designees have completed course requirements in buyer's representation, and they had to document successful sales transactions, in which they represented the buyer's interest.
In conclusion, make the most of this unusual opportunity. We have not seen a buyer's market like this one for 20 years. It is a great time to be a buyer, so take advantage of the opportunity by buying now, and utiliziing the services of a qualified buyer's agent!
This article is submitted by Don Ricedorff, a licensed real estate broker in Colorado, servicing La Plata County and Durango Colorado. If you need to reach Don, please contact him at don@frontier.net, at his office at The Wells Group, 970-375-7014, or visit him on the web at durangorealproperty.com.
Don Ricedorff
Broker Associate
ABR, CRS, CRB, CCIM, RSPS, GRI, CIPS
In Colorado, a real estate broker has the opportunity to provide service to buyers as a seller's agent, a transaction broker or a buyer's agent. Of course a seller's agent is "working" for the seller on the sellers behalf. As a transaction broker, the broker can not advocate or advise the customer. As a buyer's agent, a contract establishing "agency" is established, and the real estate broker may use their knowledge and experience to assist the buyer through the buying process. The real estate broker can advise and advocate for the buyer, and in fact, the real estate broker has a higher degree of responsibility to the client. Most often, the buyer's agent is paid the same, regardless of the type of relationship, and typically, the commissions are paid by the seller through the listing contract. There are other ways a buyer's agent can be paid if preferred by the buyer, and the real estate broker can discuss these with you. Enough of the legal! Simply said, the State of Colorado through the real estate commission has established a method for an agent to directly assist you.
Not all buyer's agents are created the same! Of course, there are lots of differences between real estate brokers, and their ability to assist you. Some of the basic criteria can vary greatly. Here are some of the questions you may want to ask. How much real estate experience does the real estate broker have? How long have they been in this market? Do they specialize in a segment of the market? What further education credentials have they completed? Ask them to provide the most recent statistics on the market. How many days on the market for properties? Is this growing? What is the sales price of recently sold properties versus their final list price? How would they recommend to work with you and why? How can they get you the best possible "deal"? What would they recommend for the negotiation process? Chemistry also plays a role, and by interviewing the broker, you can determine if that person is a good fit for you.
Last, you may want to consider real estate brokers who have the ABR designation. ABR stands for Accredited Buyer's Representative, and it is a designation awarded by the Real Estate Buyer's Agent Council of the National Association of Realtors. It is the benchmark of excellence in buyer representation. These designees have completed course requirements in buyer's representation, and they had to document successful sales transactions, in which they represented the buyer's interest.
In conclusion, make the most of this unusual opportunity. We have not seen a buyer's market like this one for 20 years. It is a great time to be a buyer, so take advantage of the opportunity by buying now, and utiliziing the services of a qualified buyer's agent!
This article is submitted by Don Ricedorff, a licensed real estate broker in Colorado, servicing La Plata County and Durango Colorado. If you need to reach Don, please contact him at don@frontier.net, at his office at The Wells Group, 970-375-7014, or visit him on the web at durangorealproperty.com.
Don Ricedorff
Broker Associate
ABR, CRS, CRB, CCIM, RSPS, GRI, CIPS
Saturday, July 19, 2008
Now Is The Time To Buy Durango Colorado Investment Real Estate!
Timing is everything, and the timing for buying Durango Colorado investment real estate is now. The Durango Herald (Durango's daily newspaper) ran an article today on the low supply and the increasing rental rates for rental homes and apartments in Durango. This is not a surprise, as we have been informing our clients for well over a year that rental rates are increasing, demand is high, and the supply is low. We live in an area of increasing population; the state demographer estimates our population increasing by 1 to 2 % per year. This population growth requires the need for housing, and businesses that service the increasing population.
As we know the real estate market has been soft, with several years of declining numbers of transactions, which means that the increased population must rely on rental homes. In addition, most of the investors have chosen other investments over the last few years, which has left the Durango market in a shortfall for housing. As investors, we look at the return from the rents and we look at the return on appreciation. Historically, we have seen residential rents average about 4-6 % of the value of the homes, and the appreciation has been an average of about 8.6 % for Durango homes in the last decade, and nationally the appreciation has been about 6 %. This can easily offer a double digit return.
Rents were under the market value for years, as first time home buyers moved out of rental property and into their first homes, and likewise, investors were purchasing homes to rent, which coupled to provide a large supply of rental homes. It was a tenant market, and the large supply with the low demand created a soft rental market. Now, that supply has turned around, and it is much more a landlord's market, and they can more easily dictate the amount of rent, the terms, and be particular on the quality of tenant.
The last ingredient for a perfect investment recipe is the timing of the real estate market for purchasing. We all know that it is a buyer's market, and although the median price has remained stable, there are deals out there. Again, we are in the third year of lower number of transactions, and sooner than later, this too will turn around. As astute investor will take advantage of these market conditions, and benefit in the long run. (Please read the previous blog on comparisons to the last housing crunch)
Last, smart investors invest money in markets that produce the best return for the lowest risks. How do you feel about the stock market right now? In these economic times, is it likely to give you the returns that you are looking for? Are the assets hard, meaning do they have underlying intrinsic value like real estate? Are you pleased with the returns in the financial markets, such as bonds or CD's? Will these instruments meet your long term goals? If your answers point you to investment real estate, please give me a call. You can reach me, Don Ricedorff at The Wells Group, 970-375-7014, e-mail me at don@frontier.net, or visit me on the web at durangorealproperty.com.
Don Ricedorff is a licensed real estate broker in the State of Colorado, and he has numerous real estate designations including CCIM (commercial real estate), CRS, CRB, GRI, ABR, RSPS, and CIPS. He has 15+ years of real estate experience, and is very involved in the community.
As we know the real estate market has been soft, with several years of declining numbers of transactions, which means that the increased population must rely on rental homes. In addition, most of the investors have chosen other investments over the last few years, which has left the Durango market in a shortfall for housing. As investors, we look at the return from the rents and we look at the return on appreciation. Historically, we have seen residential rents average about 4-6 % of the value of the homes, and the appreciation has been an average of about 8.6 % for Durango homes in the last decade, and nationally the appreciation has been about 6 %. This can easily offer a double digit return.
Rents were under the market value for years, as first time home buyers moved out of rental property and into their first homes, and likewise, investors were purchasing homes to rent, which coupled to provide a large supply of rental homes. It was a tenant market, and the large supply with the low demand created a soft rental market. Now, that supply has turned around, and it is much more a landlord's market, and they can more easily dictate the amount of rent, the terms, and be particular on the quality of tenant.
The last ingredient for a perfect investment recipe is the timing of the real estate market for purchasing. We all know that it is a buyer's market, and although the median price has remained stable, there are deals out there. Again, we are in the third year of lower number of transactions, and sooner than later, this too will turn around. As astute investor will take advantage of these market conditions, and benefit in the long run. (Please read the previous blog on comparisons to the last housing crunch)
Last, smart investors invest money in markets that produce the best return for the lowest risks. How do you feel about the stock market right now? In these economic times, is it likely to give you the returns that you are looking for? Are the assets hard, meaning do they have underlying intrinsic value like real estate? Are you pleased with the returns in the financial markets, such as bonds or CD's? Will these instruments meet your long term goals? If your answers point you to investment real estate, please give me a call. You can reach me, Don Ricedorff at The Wells Group, 970-375-7014, e-mail me at don@frontier.net, or visit me on the web at durangorealproperty.com.
Don Ricedorff is a licensed real estate broker in the State of Colorado, and he has numerous real estate designations including CCIM (commercial real estate), CRS, CRB, GRI, ABR, RSPS, and CIPS. He has 15+ years of real estate experience, and is very involved in the community.
Friday, July 4, 2008
It is the market and nothing but the market...so what do we do? Durango Colorado real estate market is a buyers market!
One of my favorite college professors, Dr. Tom Eckenrode, started a semester class with "why study history?". The best reason given was to help us understand and perhaps predict the future when circumstances are similar. This relates to our current real estate market. How quickly we forget. When the market is bustling, it seems like it will never stop, and when the market is slow, it seems like it will never pick up. History shows us differently. Let's look back at the last major downturn in the Durango Colorado real estate market. The market bottomed in 1989 when the average price of a Durango (In Town) single family residence sold for $81,385, an 8.6% drop from 1988. The very next year the average price increased to $97,902, a 20.3% increase! In the five years following 1989, the average price increased to $145,211, a gain of $63,826, which was a 78.5 % increase in value. At the end of 2007, the average value of a Durango residence was $448,649, a whopping 451 % increase since 1989.
Durango Colorado has benefited from a spectacular growth cycle in the last 20 years, as it has been "discovered", and the benefits for living here have been publicized. The combination of a historic mining supply town, a Victorian heritage, the Animas River, the two million acres of national forest, the skiing, biking, hiking, fishing, hunting, art, music, restaurants, and a real community have propelled growth. At the same time, let's not lose sight of what history is teaching us. The need and desire for housing will continue to increase in our community, in the State of Colorado, in our nation, and in the world, as population increases. The cost of building new homes will depend on the cost of materials, labor, the cost of government regulation, and the supply and demand of land. Today, we have an over abundance of homes on the market, which is causing a short term deflation in the cost of homes, while the cost of materials in the world is skyrocketing. What do you think is happening to the cost of steel, lumber, oil (forgive me for bringing that up!), and concrete in the world market as China and India are emerging as major consumers? Do you think the cost of these materials, labor and governmental regulation will be lesser or greater in five years?
History gives us the answer. There is an underlying inflation cost that continues to rise over periods of time. Sometimes, it is quite evident, and other times it is nearly obscure, like in the real estate market right now. If you have lived a full life time, this is not news to you, as you have seen the cost of goods and services increase over your entire life. If you are young and reading this post, ask your parents what the cost of a bottle of Coca-Cola was when they were growing up. Better yet, let me give you one to ponder. The average cost of a home in the United States was $9,075 in 1952! At the end of 2007, the average cost of a home in the United States was $218,900, a 6% annualized increase in value. I contend that we are seeing an underlying value increase in materials and labor right now, and yet we do not see it in the current price of real estate.
If you agree, what do you do? Do you anticipate the future and make decisions based on history or do you wait until we have a number of years of spectacular growth, and wished that you had been part of it?
The author, Don Ricedorff, is a licensed real estate broker with The Wells Group in Durango Colorado. If you would like to reach him, please call don at 970-375-7014, visit him on the web at http://www.durangorealproperty.com/, or e-mail at don@frontier.net.
Durango Colorado has benefited from a spectacular growth cycle in the last 20 years, as it has been "discovered", and the benefits for living here have been publicized. The combination of a historic mining supply town, a Victorian heritage, the Animas River, the two million acres of national forest, the skiing, biking, hiking, fishing, hunting, art, music, restaurants, and a real community have propelled growth. At the same time, let's not lose sight of what history is teaching us. The need and desire for housing will continue to increase in our community, in the State of Colorado, in our nation, and in the world, as population increases. The cost of building new homes will depend on the cost of materials, labor, the cost of government regulation, and the supply and demand of land. Today, we have an over abundance of homes on the market, which is causing a short term deflation in the cost of homes, while the cost of materials in the world is skyrocketing. What do you think is happening to the cost of steel, lumber, oil (forgive me for bringing that up!), and concrete in the world market as China and India are emerging as major consumers? Do you think the cost of these materials, labor and governmental regulation will be lesser or greater in five years?
History gives us the answer. There is an underlying inflation cost that continues to rise over periods of time. Sometimes, it is quite evident, and other times it is nearly obscure, like in the real estate market right now. If you have lived a full life time, this is not news to you, as you have seen the cost of goods and services increase over your entire life. If you are young and reading this post, ask your parents what the cost of a bottle of Coca-Cola was when they were growing up. Better yet, let me give you one to ponder. The average cost of a home in the United States was $9,075 in 1952! At the end of 2007, the average cost of a home in the United States was $218,900, a 6% annualized increase in value. I contend that we are seeing an underlying value increase in materials and labor right now, and yet we do not see it in the current price of real estate.
If you agree, what do you do? Do you anticipate the future and make decisions based on history or do you wait until we have a number of years of spectacular growth, and wished that you had been part of it?
The author, Don Ricedorff, is a licensed real estate broker with The Wells Group in Durango Colorado. If you would like to reach him, please call don at 970-375-7014, visit him on the web at http://www.durangorealproperty.com/, or e-mail at don@frontier.net.
Monday, June 9, 2008
When the real estate market is half-full, you need a high octane realtor!
These are difficult times in the real estate business. Durango Colorado has not been as deeply affected by the severe real estate market, as compared to many of the overheated markets like Southern California, Arizona, Nevada, and Florida. The Durango market is affected by the inability of buyers to sell their home in other markets, as there are many buyers that have a desire to purchase a home in Southwest Colorado, yet, they need to sell their home in another market first. We have also been affected by the economic downturn, and as most of you know, consumer confidence is at a multi-year low.
If you are a buyer or seller in this more difficult market, you need the help of a seasoned professional. We are way beyond the easy days of selling real estate, and when the worth of a Realtor was being questioned. It is quite obvious that the number of FSBO's (For Sale By Owners) has dwindled in the last 18 months. Those owners realize the importance of marketing a home for sale, and the days of a sign in the yard selling the home is in the past. Sellers need the attention of the fewer buyers in the market, and they have a difficult time reaching those buyers, without the use of a Realtor, and a strong marketing program. They also need professional help in pricing their home in an everchanging environment; it is absolutely critical to be competitive when there are numerous choices for the buyer. Besides making a decision to use a Realtor, a seller needs to be convinced in the choice of a Realtor. Obviously, Realtors are not all created equal. There is great differentiation in experience, marketing budget, negotiation skills, and education. This is the time to make a smart choice, selecting the Realtor that has the tools and skills to help you be successful.
In addition, the choice of the real estate company is equally important. A small real estate company may not have the marketing punch that you need in this market, and there are other impressive differences in selecting the best fit for you. For instance, The Wells Group (the company that I am associated) has a very strong internet presence to help reach those hard to find buyers.
If you are a buyer, the choice of a Realtor is equally as important. Strong negotiation skills and market knowledge can and will make a big difference in this market. The Realtor needs to have advanced knowledge and skills to help you find the right property, and to help you strike the best deal. You need a "connected" Realtor, that stays tuned into the changes and opportunities. This is the time when you will create future appreciation by purchasing when the market is at its weakest. You do not want to leave this to chance, find and utilize a top professional Realtor.
If you are looking in the Durango & Bayfield areas, and would like further information about this market or on my experience, please contact me. You can reach me, Don Ricedorff, at 970-375-7014, or e-mail me at don@frontier.net, or visit me on the web at durangorealproperty.com.
If you are a buyer or seller in this more difficult market, you need the help of a seasoned professional. We are way beyond the easy days of selling real estate, and when the worth of a Realtor was being questioned. It is quite obvious that the number of FSBO's (For Sale By Owners) has dwindled in the last 18 months. Those owners realize the importance of marketing a home for sale, and the days of a sign in the yard selling the home is in the past. Sellers need the attention of the fewer buyers in the market, and they have a difficult time reaching those buyers, without the use of a Realtor, and a strong marketing program. They also need professional help in pricing their home in an everchanging environment; it is absolutely critical to be competitive when there are numerous choices for the buyer. Besides making a decision to use a Realtor, a seller needs to be convinced in the choice of a Realtor. Obviously, Realtors are not all created equal. There is great differentiation in experience, marketing budget, negotiation skills, and education. This is the time to make a smart choice, selecting the Realtor that has the tools and skills to help you be successful.
In addition, the choice of the real estate company is equally important. A small real estate company may not have the marketing punch that you need in this market, and there are other impressive differences in selecting the best fit for you. For instance, The Wells Group (the company that I am associated) has a very strong internet presence to help reach those hard to find buyers.
If you are a buyer, the choice of a Realtor is equally as important. Strong negotiation skills and market knowledge can and will make a big difference in this market. The Realtor needs to have advanced knowledge and skills to help you find the right property, and to help you strike the best deal. You need a "connected" Realtor, that stays tuned into the changes and opportunities. This is the time when you will create future appreciation by purchasing when the market is at its weakest. You do not want to leave this to chance, find and utilize a top professional Realtor.
If you are looking in the Durango & Bayfield areas, and would like further information about this market or on my experience, please contact me. You can reach me, Don Ricedorff, at 970-375-7014, or e-mail me at don@frontier.net, or visit me on the web at durangorealproperty.com.
Saturday, May 31, 2008
Durango Colorado Real Estate: Comparison Of New Homes!
Skyridge Village & Estates and Three Springs are both residential communities in Durango Colorado, and they both have excellent amenities for their residents, creating a desirable community with an emphasis on outdoor activities. They both have new homes available. This comparison will depict the differences between the new "Pinnacle Collection" single family homes at Skyridge Village & Estates, as compared to the new single family homes in comparable size at Three Springs.
LOCATION:
Skyridge Village & Estates is located near Fort Lewis College and Hillcrest Golf Course, and only minutes from Historic Downtown Durango Colorado. The amenities include a trail system with connections to the Horse Gulch mountain bike trails, a wide pedestrian walkway through the development, and a family friendly park with playground, tennis courts, and activity field. The choices for activities range from golf, tennis, mountain bike riding, hiking, stolling among the shops downtown, or taking in a concert at the Community Concert Hall at Fort Lewis College.
Three Springs is located east of Durango, near the new Mercy Medical Center, with easy access to the airport, and a few miles from Historic Downtown Durango. It is a traditional neighborhood, with a neighborhood shopping district, and it is pedestrian and bicycle friendly. It is surrounded by the Telegraph Trail system for active hiking or mountain bike riding. The goal of Three Springs is to create a "friendly" self-contained community, where you can park your car and enjoy a short stroll to the neighborhood shopping on Mercado Street, or saying hello to your neighbor from your front porch. There are plans for a regional park, but it has not been funded at this time.
HOME COMPARISON:
The Pinnacle Collection at Skyridge Village & Estates:
Newer Architectural Design With Two Models:
Single Level: 1,512 Sq. Ft. $394,900 $261 Per Sq. Ft. MLS #566943
Three Bedroom/Two Bath/Two Car Garage
Two Story: 1,940 Sq. Ft. $419,900 $216 Per Sq. Ft. MLS #597431
Three Bedroom/2 1/2 Bath/Two Car Garage
High Quality Construction With Travertine Tile Floors/Alder Cabinetry/Granite Countertops/In-Floor Heat/Vaulted Ceilings/Clerestory Windows Bring In Lots of Sunlight/Landscaping With Sprinkler System Included
Quiet Cul-De-Sac Location
Lot Sizes: 5,589 sq. ft. to 6,011 sq. ft.
Selected Models at Three Spings:
Traditional Two Story Design/Selected Models
Two Story: 1,396 Sq. Ft. $373,900 $282 Per Sq. Ft. MLS #592343
Three Bedrooms/2 1/2 Bath/Two Car Garage
Two Story: 1,730 Sq. Ft. $399,900 $231 Per Sq. Ft. MLS #604182
Three Bedroom/2 1/2 Bath/Two Car Garage
High Quality Construction With Granite Countertops/Stainless Appliances/Alder Cabinetry/Tankless Hot Water Heater/Forced Air Heat/Landscaping With Included Sprinkler System
Neighborhood Street Location
Lot Sizes: 2,922 sq. ft. to 2,939 sq. ft.
PROPERTY TAXES BASED ON $400,000 HOME:
Pinnacle Collection at Skyridge Village & Estates: $900.79
Three Springs: $1,976.63
Difference: $1,075.84 Per Year
CONCLUSION:
These are both great choices for a buyer desiring a high quality of life. It is my opinion that you should see both communities, and all of the models, and you will be happy with any choice you make. If you would like to see the Pinnacle Collection or Three Springs, please contact me: Don Ricedorff at The Wells Group Real Estate Office, 970-375-7014, e-mail me at don@frontier.net, or visit me at http://www.durangorealproperty.com/.
LOCATION:
Skyridge Village & Estates is located near Fort Lewis College and Hillcrest Golf Course, and only minutes from Historic Downtown Durango Colorado. The amenities include a trail system with connections to the Horse Gulch mountain bike trails, a wide pedestrian walkway through the development, and a family friendly park with playground, tennis courts, and activity field. The choices for activities range from golf, tennis, mountain bike riding, hiking, stolling among the shops downtown, or taking in a concert at the Community Concert Hall at Fort Lewis College.
Three Springs is located east of Durango, near the new Mercy Medical Center, with easy access to the airport, and a few miles from Historic Downtown Durango. It is a traditional neighborhood, with a neighborhood shopping district, and it is pedestrian and bicycle friendly. It is surrounded by the Telegraph Trail system for active hiking or mountain bike riding. The goal of Three Springs is to create a "friendly" self-contained community, where you can park your car and enjoy a short stroll to the neighborhood shopping on Mercado Street, or saying hello to your neighbor from your front porch. There are plans for a regional park, but it has not been funded at this time.
HOME COMPARISON:
The Pinnacle Collection at Skyridge Village & Estates:
Newer Architectural Design With Two Models:
Single Level: 1,512 Sq. Ft. $394,900 $261 Per Sq. Ft. MLS #566943
Three Bedroom/Two Bath/Two Car Garage
Two Story: 1,940 Sq. Ft. $419,900 $216 Per Sq. Ft. MLS #597431
Three Bedroom/2 1/2 Bath/Two Car Garage
High Quality Construction With Travertine Tile Floors/Alder Cabinetry/Granite Countertops/In-Floor Heat/Vaulted Ceilings/Clerestory Windows Bring In Lots of Sunlight/Landscaping With Sprinkler System Included
Quiet Cul-De-Sac Location
Lot Sizes: 5,589 sq. ft. to 6,011 sq. ft.
Selected Models at Three Spings:
Traditional Two Story Design/Selected Models
Two Story: 1,396 Sq. Ft. $373,900 $282 Per Sq. Ft. MLS #592343
Three Bedrooms/2 1/2 Bath/Two Car Garage
Two Story: 1,730 Sq. Ft. $399,900 $231 Per Sq. Ft. MLS #604182
Three Bedroom/2 1/2 Bath/Two Car Garage
High Quality Construction With Granite Countertops/Stainless Appliances/Alder Cabinetry/Tankless Hot Water Heater/Forced Air Heat/Landscaping With Included Sprinkler System
Neighborhood Street Location
Lot Sizes: 2,922 sq. ft. to 2,939 sq. ft.
PROPERTY TAXES BASED ON $400,000 HOME:
Pinnacle Collection at Skyridge Village & Estates: $900.79
Three Springs: $1,976.63
Difference: $1,075.84 Per Year
CONCLUSION:
These are both great choices for a buyer desiring a high quality of life. It is my opinion that you should see both communities, and all of the models, and you will be happy with any choice you make. If you would like to see the Pinnacle Collection or Three Springs, please contact me: Don Ricedorff at The Wells Group Real Estate Office, 970-375-7014, e-mail me at don@frontier.net, or visit me at http://www.durangorealproperty.com/.
Wednesday, May 21, 2008
Animas La Plata Project In Durango Colorado Will Have A Positive Affect On Real Estate!
The Animas La Plata Project is near completion! This long anticipated water project is located just south and east of Durango Colorado. The water will be pumped from the Animas River into Ridges Basin, and it will create Lake Nighthorse, with a capacity of 120,000 acre feet, and a surface area of 1,490 acres. The dam has a height of 217 feet, and a length of 1,670 feet. Construction of the project began in 2001, after a long litigation. The water stored in Lake Nighthorse will be utilized by the Southern Ute Indian Tribe, Ute Mountain Tribe, the State of Colorado, the Navajo Nation, the Animas-La Plata Water Conservancy District, the San Juan Water Commission, and the La Plata Conservancy District. The construction of the dam has been completed, but other construction work continues. The final completion of the project is to be finished in 2012, but filling the lake will begin much sooner.
The long anticipated project should be a huge bonus for property owners west and south of Durango. There will be easy access to the recreational uses of the lake from County Road 141, and there are a large number of homes and parcels in Shenandoah and Trappers Crossing which will have views of the lake. Many of these parcels already have views of mountain peaks, and now they may have lake views as well. It is expected that the completed project will have a positive affect on real estate appreciation and demand. This is a prime opportunity to consider an investment or home in this desirable location, and enjoy the recreation created by Lake Nighthorse, and the possible appreciation.
If you would like further information on real estate west of Durango, please contact me, Don Ricedorff at don@frontier.net, visit my website at durangorealestate.com, or call me at 970-375-7014.
The long anticipated project should be a huge bonus for property owners west and south of Durango. There will be easy access to the recreational uses of the lake from County Road 141, and there are a large number of homes and parcels in Shenandoah and Trappers Crossing which will have views of the lake. Many of these parcels already have views of mountain peaks, and now they may have lake views as well. It is expected that the completed project will have a positive affect on real estate appreciation and demand. This is a prime opportunity to consider an investment or home in this desirable location, and enjoy the recreation created by Lake Nighthorse, and the possible appreciation.
If you would like further information on real estate west of Durango, please contact me, Don Ricedorff at don@frontier.net, visit my website at durangorealestate.com, or call me at 970-375-7014.
Saturday, March 8, 2008
HUD lending limits increase in La Plata County, Durango Colorado
Flash!!! The new HUD lending limits have just been increased in La Plata County, Durango Colorado which will have a positive impact on real estate!
These increased lending limits are going to help a large percentage of borrowers, who qualify for the maximum limits. This is a huge savings for borrowers as any loan amount above the conforming lending rate is considered a Jumbo loan, and the Jumbo loan rates are significantly higher. As an example, one interest rate quoted to me today was 6.12% for the conforming rate under the HUD limits for a 30 year fixed mortgage, while the Jumbo rate for a 30 year fixed mortgage was 7.09%. With these new limits, a borrower who has the ability to have the maximum loan amount, and who has a 20% down payment can purchase a home in Durango Colorado with a price of up to approximately $555,000.
Even more impactful is the change in the FHA limits from $337,250 to $443,750. Many more borrowers may qualify with the FHA loans. These loans have some additional flexibility, which allows the borrowers to put a minimum of 3% down, and the down payment may be a gift! FHA does have a 1 1/2 % Mortgage Insurance Premium, which means that there is an additional cost of 1 1/2% of the loan amount, yet this charge may be financed. Many borrowers would choose to use an FHA loan if they are limited in their down payment or if their down payment is coming from family or friends. The new limits are particularly important as most of our housing was more expensive than the limits would allow. Now, a borrower who can qualify for the maximum loan, and that has a 3% down payment can purchase a home with a price up to approximately $457,500.
This should have a major impact on real estate in Durango, and throughout La Plata County, offering buyers many more choices and amenities.
It is another reason to begin your buying process. As we all know, the real estate market here is stronger than most other locations in the country. Never the less, there is not a better time to buy real estate than right now! Take advantage of the opportunities to buy, and start now. Some people are going to wait until everyone else is buying, and then it will be more competitive, and probably, more expensive.
If you would like help in the real estate process, please contact me: Don Ricedorff at The Wells Group Real Estate office, 970-375-7014, e-mail me at don@frontier.net, or visit me on the web at durangorealproperty.com.
Thursday, February 28, 2008
THE BEACH BOYS ARE COMING TO TOWN!
"ROUND, ROUND, GET AROUND, I GET AROUND, YEA, GET AROUND, I GET AROUND". YES! SEE THEM LIVE IN DURANGO COLORADO!
THIS MAY BE THE BIGGEST CONCERT EVENT EVER HELD IN DURANGO, PROBABLY SURPASSING THE WILLIE NELSON CONCERT. THE INFORMATION IS STILL A BIT PRELIMINARY, BUT THE ESTIMATE FOR AVAILABLE TICKETS IS APPROXIMATELY 4,000. THE GATES ARE TO OPEN AT 4:OO P.M., AND AT 5:00 P.M., RALPH DINOSAUR WILL PROVIDE THE OPENING PERFORMANCE, AND AT 8:00 P.M., THE BEACH BOYS BEGIN!
THE CONTRIBUTIONS TO MUSIC FROM THE BEACH BOYS ARE LEGENDARY, AS THEY INTRODUCED HARMONIES WHICH HAD A MAJOR INFLUENCE ON POP AND ROCK. THEY BROUGHT THE SURF CRAZE INTO NATIONAL PROMINENCE, AND THEY CREATED A ROCK SOUNDTRACK FOR SUMMER FUN.
THEIR TOP TEN HITS ARE: "BE TRUE TO YOUR SCHOOL", "LITTLE SAINT NICK", "SURFER GIRL", "SURFIN' U.S.A.", "DANCE, DANCE, DANCE", "FUN,FUN,FUN", "WHEN I GROW UP (TO BE A MAN)", "CALIFORNIA GIRLS", "BARBARA ANN", "SLOOP JOHN B", "WOULDN'T IT BE NICE", AND "ROCK AND ROLL MUSIC".
THEIR NUMBER 1 ALBUMS WERE "BEACH BOYS CONCERT" AND "ENDLESS SUMMER".
THIS IS A PROUD MOMENT FOR OUR COMMUNITY. VERY FEW SMALLER, RURAL COMMUNITIES CAN PROVIDE THE ENTERTAINMENT AND MUSIC THAT IS OFFERED IN DURANGO COLORADO. TWO WEEKS AGO, I HAD THE OPPORTUNITY TO GO TO THE SAN JUAN SYMPHONY, IT WAS MARVELOUS! THESE ARE INTANGIBLE BENEFITS TO LIVING IN DURANGO COLORADO.
PLEASE CONTACT ME FOR INFORMATION ON DURANGO COLORADO REAL ESTATE, AND INFORMATION ON OUR COMMUNITY. YOU MAY REACH ME, DON RICEDORFF, AT: don@frontier.net, don@durangorealproperty.com, my website, durangorealproperty.com, or call me at 970-375-7014.
Friday, February 22, 2008
FLY FRONTIER AIRLINES TO DURANGO!
FLY FRONTIER AIRLINES TO DURANGO! THIS EXPANDED AIR SERVICE WILL BENEFIT DURANGO COLORADO RESIDENTS, TOURISM, AND PROVIDE MORE FUEL TO OUR ECONOMY AND TO REAL ESTATE.
THE DECISION FOR FRONTIER AIRLINES TO INCLUDE DURANGO COLORADO IN THEIR EXPANSION IS A GREAT BENEFIT TO ALL OF US. IT PROVIDES ADDITIONAL CONNECTIONS THROUGH DENVER, AND THE COMPETITION WITH UNITED AIRLINES WILL HELP PROVIDE MORE REASONABLE FARES.
FEW RURAL COMMUNITIES HAVE MORE ACCESS TO MAJOR HUBS THAN DURANGO. CURRENTLY, U.S. AIRWAYS SERVICES FLIGHTS TO AND FROM DURANGO THROUGH PHOENIX. DELTA AIRLINES CONNECTS WITH THEIR MAJOR HUB IN SALT LAKE CITY, AND OF COURSE, UNITED AIRLINES HAS DIRECT FLIGHT TO AND FROM THEIR DENVER HUB. THIS FLEXIBILITY OFFERS EXCELLENT OPPORTUNITIES FOR OUR RESIDENTS AND GUESTS TO QUICKLY AND EFFICIENTLY CONNECT TO ALL PARTS OF THE UNITED STATES AND BEYOND.
FRONTIER AIRLINES HAS ANNOUNCED THAT BEGINNING ON MAY 15, 2008, THEY WILL HAVE 74 SEAT TURBOPROPS PROVIDING SERVICE WITH THREE DAILY ROUND-TRIP FLIGHTS. THIS ADDITIONAL SERVICE WILL UNDOUBTEDLY BENEFIT DURANGO MOUNTAIN RESORT, THE LOCAL HOTELS, RESTAURANTS, AND SPECIALTY RETAIL SHOPS, AND IT MAKES DURANGO AN EASIER "DESTINATION" CHOICE.
THE AVIATION DIRECTOR FOR THE DURANGO-LA PLATA AIRPORT HAS STATED THAT THE EXPANDED SERVICE TO DURANGO WILL PROVIDE UP TO 20 NEW JOBS, AND THE SERVICE HELPS TO "CEMENT DURANGO AS THE AIR-TRANSPORTATION HUB FOR THE FOUR CORNERS" AS REPORTED IN THE DURANGO HERALD.
FRONTIER AIRLINES HAS ANNOUNCED FARE STRUCTURES TO OTHER CITIES IN THE UNITED STATES STARTING AT $119 EACH WAY. FOR THIS LOW RATE YOU COULD TRAVEL TO KANSAS CITY, OMAHA, OR OKLAHOMA CITY. HOW ABOUT CHICAGO OR LOS ANGELES FOR $139, AND COSTA RICA FOR $214 EACH WAY? CHECK OUT THEIR WEBSITE FOR OTHER DESTINATIONS AND PRICING AT: FRONTIERAIRLINES.COM.
PLEASE CONTACT ME IF YOU HAVE ANY QUESTIONS ABOUT DURANGO COLORADO REAL ESTATE. YOU MAY REACH ME AT durangorealproperty.com, don@frontier.net, or call me at 970-375-7014.
DON RICEDORFF IS A REAL ESTATE BROKER AT THE WELL GROUP REAL ESTATE BROKERAGE IN DURANGO COLORADO.
Saturday, February 16, 2008
NEW SKY UTE CASINO RESORT
THE NEW SKY UTE CASINO RESORT WILL ADD JOBS AND IMPROVE THE DURANGO AREA ECONOMY AND THE REAL ESTATE MARKET!
UPON COMPLETION, THE SKY UTE CASINO RESORT WILL HAVE 100 TO 150 HOTEL ROOMS, A 45,000 SQUARE FOOT CASINO WITH 700 SLOT MACHINES, TWENTY TABLE GAMES, 200 SEAT BINGO HALL, AND 18,000 SQUARE FEET OF EVENT AND BANQUET SPACE.
THE RESTAURANTS INCLUDE A 10,000 SQUARE FOOT BUFFET WITH 50' VIEW WINDOWS, AND THERE WILL ALSO BE A CAFE OPEN 24 HOURS, AN ELEGANT FINE DINING RESTAURANT, A COFFEE SHOP, AND A SPORTS LOUNGE.
THE RESORT HOTEL WILL OFFER 100 PLUS GUEST ROOMS, 24 HOUR ROOM SERVICE, CONCIERGE SERVICE, VALET SERVICE, AND THE ROOMS WILL HAVE LONG VIEWS OF THE LA PLATA MOUNTAINS.
THERE WILL ALSO BE A DAY SPA, A TWENTY FOUR LANE BOWLING ALLEY, 18 HOLE MINIATURE GOLF, A SWIMMING POOL WITH A "LAZY RIVER", A VIDEO ARCADE, RETAIL SHOPS, AND DAY CARE FACILITIES.
THIS AMBITIOUS PROJECT WILL PROVIDE 400 TO 600 JOBS, WITH MANY OF THEM REQUIRING ADVANCED SKILLS, WHICH WILL MEAN SOME HIGH INCOME POSITIONS. THESE POSITIONS WILL INHERENTLY DRIVE A NEED FOR HOME OWNERSHIP, AND MANY OF THE SERVICE POSITIONS WILL REQUIRE RENTAL UNITS. IN EITHER CASE, THESE JOBS WILL PROVIDE A GREAT STIMULATION TO THE GREATER DURANGO / BAYFIELD / IGNACIO REAL ESTATE MARKETS, AND AN OPPORTUNITY FOR SAGE INVESTORS.
IN ADDITION, THIS RESORT WILL OFFER AN ADVANTAGE FOR THE TOURISM IN OUR AREA, GIVING ANOTHER REASON TO TRAVEL AND APPRECIATE THE FOUR CORNERS AREA. THE GREATER DURANGO AREA OF SOUTHWEST COLORADO IS BLESSED WITH AN ABUNDANCE OF OUTDOOR ACTIVITIES, FINE RESTAURANTS, A VARIETY OF CULTURAL ACTIVITIES THAT MAKE IT ONE OF THE BEST PLACES TO VISIT, AND EVEN BETTER, THE BEST PLACE TO LIVE.
PLEASE CONTACT ME IF YOU WOULD LIKE SOME ADDITIONAL INFORMATION ON THE DURANGO COLORADO AREA OR DURANGO COLORADO REAL ESTATE. YOU MAY REACH ME AT don@frontier.net, durangorealproperty.com, OR CALL ME AT 970-375-7014.
Wednesday, February 6, 2008
NEW RESIDENCES AND NEW MOUNTAIN PLAN FOR DURANGO MOUNTAIN RESORT
WOW! THE NEW RESIDENCES AND THE NEW MOUNTAIN PLAN FOR DURANGO MOUNTAIN RESORT ARE FANTASTIC. SEE DURANGO COLORADO REAL ESTATE LIKE NEVER BEFORE...
DURANGO MOUNTAIN RESORT NOW HAS A WIDE VARIETY OF RESIDENCES AND HOMESITES TO MEET THE NEEDS AND DESIRES OF DISCERNING BUYERS THAT WANT LUXURY AMENITIES AND TOP SHELF LIFE STYLE. A GREAT EXAMPLE IS THE NEW OFFERINGS OF THE PINNACLE A PRIVATE RESIDENCE CLUB, AN OPTION FOR FRACTIONAL OWNERSHIP. THE PINNACLE FEATURES GRANITE SLAB COUNTERTOPS, STUNNING TWO STORY RESIDENCES WITH HIGH VAULTED CEILINGS, PRIVATE UNDERGROUND PARKING, EQUITY LEVEL GOLF MEMBERSHIP TO THE GLACIER CLUB, AND CONCIERGE SERVICES. ADDITIONAL AMENITIES INCLUDE A FAMILY POOL, ADULT SPA AREA, PRIVATE CLUB LOUNGE, SKI VALET, FITNESS CENTER, AND FAMILY GAME ROOM; THERE ARE ENOUGH ACTIVITIES TO KEEP EVERYONE IN THE FAMILY ENJOYING THEIR VACATION. DURANGO MOUNTAIN RESORT HAS OTHER RESIDENTIAL AND LAND OFFERINGS INCLUDING RESIDENTIAL LOTS AT ENGINEER VILLAGE AND DOUBLE DIAMOND STARTING AT $199,900, THE BLACK BEAR TOWNHOMES STARTING AT $570,000, THE CASCADE CREEK TOWNHOMES STARTING AT $599,000, THE TWILIGHT CABINS WITH A PRICE OF $675,000 TO $899,000, PURGATORY LODGE WITH FRACTIONAL OWNERSHIP STARTING AT $149,900. THERE ARE A NUMBER OF EXCELLENT CHOICES FOR A VARIETY OF INTERESTS AND BUDGETS, WHETHER IT IS YOUR PRIMARY HOME, SECOND HOME, OR FRACTIONAL OWNERSHIP WHICH ALLOWS YOU SIX WEEKS OF USE EACH YEAR!
IN ADDITION, THE PLANS ARE BEING FINALIZED FOR THE MOUNTAIN IMPROVEMENTS. THIS TEN YEAR PLAN ADDS NEW TRAILS, ADDITIONAL SKIABLE ACRES, EXPANDED SNOWMAKING, EXPANDED BEGINNERS AREA, NEW CHAIRLIFT UPGRADE FOR CHAIR 8 OFFERING A HIGH SPEED QUAD, UPGRADED PARKING AND PLAZA DEVELOPMENT, AND SUMMER UPGRADES INCLUDING A NEW SINGLE TRACK MOUNTAIN BIKE TRAIL.
ONE OF THE BEST THINGS ABOUT DURANGO MOUNTAIN RESORT IS THE PROXIMITY TO THE HISTORIC MINING TOWN OF DURANGO COLORADO. VISITORS AND RESIDENTS ARE SURE TO HAVE A GREAT EXPERIENCE WHEN THE SKIING AND BACKCOUNTRY OPTIONS ARE GREAT, COUPLED WITH THE AMBIANCE AND CHOICES OFFERED IN DURANGO. THOSE WITH ACTIVE LIFESTYLES WILL APPRECIATE THE PROXIMITY TO MILLIONS OF ACRES OF PUBLIC LANDS, MOUNTAIN BIKING, RAFTING, KAYAKING, FLY FISHING, GOLF, HIKING, TENNIS OR A SERENE WALK ALONG THE ANIMAS RIVER WALK. FOR THAT QUIET AFTERNOON FOLLOWING SKIING OR OTHER ACTIVITIES, A PERSON CAN ENJOY THE MANY FINE DINING AND UNIQUE SHOPS OFFERED IN DURANGO.
PLAN YOUR TRIP NOW TO EXPERIENCE DURANGO COLORADO AND DURANGO MOUNTAIN RESORT. THE SKIING IS AWESOME, AS WE HAVE HAD THE BEST SNOWFALL IN YEARS, SO IF YOU ARE YEARNING FOR CARVING SOME TRAILS IN COLORADO'S PURE SNOW, COME SOON!
YOU MAY WANT TO CHECK OUT THE JANUARY 2008 SKI MAGAZINE WHICH TELLS ABOUT SKIING, LIVING AND RETIRING IN THE BEAUTIFUL MOUNTAINS OF SOUTHWEST COLORADO. IN NOVEMBER 2007, SKI MAGAZINE SAID "IF EVER A MOUNTAIN WAS CREATED FOR FAMILIES, IT'S PURGATORY (DURANGO MOUNTAIN RESORT FORMERLY KNOWN AS PURGATORY).
IF IS OFTEN SAID IN DURANGO THAT THERE ARE ONLY TWO TYPES OF PEOPLE HERE, THOSE THAT LIVE HERE, AND THOSE THAT WISHED THEY LIVED HERE. THE AMENITIES AND LIFESTYLE ARE UNMATCHED ANYWHERE. IF YOU WOULD LIKE TO HAVE MORE INFORMATION ON DURANGO COLORADO, DURANGO MOUNTAIN RESORT, OR SPECIFICALLY ON THE MANY REAL ESTATE ALTERNATIVES OFFERED HERE, PLEASE CONTACT DON RICEDORFF AT don@frontier.net, durangorealproperty.com, OR CALL ME AT 970-375-7014.
Monday, January 28, 2008
Odds of selling your home in Durango Colorado
WHAT ARE THE ODDS OF SELLING YOUR HOME IN DURANGO COLORADO/LA PLATA COUNTY?
The Odds Of Selling Your Home!!
PRICE RANGE: BUYERS: FOR SALE: ODDS:
$ -0- $199,999 120 90 133%
$200,000-$399,999 454 354 128%
$400,000-$599,999 203 229 89%
$600,000-$799,999 71 126 56%
$800,000-$999,999 30 50 60%
$1,000,000-$1,199,999 8 22 36%
$1,200,000-$1,399,999 8 35 23%
$1,400,000-$1,599,999 2 17 12%
$1,600,000-$1,799,999 3 11 27%
$1,800,000-$1,999,999 1 6 17%
$2 MILLION PLUS 2 40 5%
TOTAL: 902 980 92%
SOURCE: PARAGON MULTIPLE LISTING SERVICE
LOCATION: LA PLATA COUNTY RESIDENTIAL
DATE: 1/28/2008
BUYER INFORMATION (SOLDS): 1/1/2007 THRU 12/31/2007
ACTIVE PROPERTIES DATE: 1/28/2008
Friday, January 25, 2008
RECENT FED RATE CHANGE AFFECTS LONG TERM MORTGAGE RATES
MY DURANGO REAL ESTATE CLIENTS ARE INTERESTED IN HOW THE RECENT FED RATE CHANGE AFFECTS LONG TERM MORTGAGE RATES...
A CHANGE IN THE FED RATE AFFECTS SHORTER TERM BUSINESS LOANS AND MORTGAGES ON COMMERCIAL PROPERTY, AS BANKS CHANGE THE RATES THEY CHARGE THEIR BUSINESS AND COMMERCIAL CLIENTS. TYPICALLY, WHEN THE FEDERAL RESERVE CHANGES THE FED RATE, THE LOCAL BANKS CHANGE THEIR PRIME RATE, AND OTHER RATES FOR CORPORATE AND BUSINESS CLIENTS.
IT DOES NOT DIRECTLY IMPACT THE SECONDARY MARKET MORTGAGE RATES, WHICH ARE THE RATES THAT MOST OF US PAY FOR OUR RESDENTIAL HOME MORTGAGES.
THE SECONDARY MARKET RATE IS THE INTEREST RATE DETERMINED BY THE MARKET, AND MOVEMENTS IN THE MORTGAGE RATE REFLECTS SUPPLY AND DEMAND CONDITIONS IN THE MARKET FOR MORTGAGE BASED SECURITIES. THESE INTEREST RATES TEND TO FOLLOW MOVEMENTS IN OTHER LONG TERM INTEREST RATES, SUCH AS THE 10 YEAR TREASURY BOND RATE.
GENERALLY SPEAKING, WE SOMETIMES SEE FLUCTUATIONS IN THE FED RATE WHICH DO NOT IMMEDIATELY IMPACT THE LONG TERM MORTGAGE RATES, BUT WHEN YOU LOOK AT THE CORRELATION BETWEEN THE RATES OVER A LONGER SPAN OF TIME, THEY BOTH TEND TO MOVE UP OR DOWN TOGETHER. THE LONG TERM INTEREST RATES ARE USUALLY HIGHER THAN SHORT TERM INTEREST RATES, DUE TO THE RISK OF LONGER TERM MORTGAGES.
Thursday, January 17, 2008
Luxury Home Marketing In Durango Colorado!
I have just returned from a course offered by The Institute For Luxury Home Marketing which covered such topics as demographics of the affluent, lifestyle segmentation, and trends and amenities in today's luxury home product. The course was taught by Laurie Moore-Moore, author of the book "Rich Buyer, Rich Seller".
The training provided new insight about the upper tier market, helped me polish my skills, and provided valuable networking contacts with other agents across the country who specialize in luxury properties. In addition, I found new and creative tools for promoting expensive homes and estates; so home buyers and sellers will benefit from the investment of time to participate in this class.
Skills learned will benefit all of the properties we market. An emphasis on improving our skills and knowledge on photography and marketing will make a differnence for everyone.
The top end of the market is in a stellar growth curve. As an example, 10,000 homes sold for over $1 million in 1999, and 109,113 sold for over $1 million in 2005. In New York, a record sales price for the U.S. was established when a home sold for $103 million!! The world record is a penthouse in London sold for $200 million!!
Why is the luxury home market growing? There are 3.2 million households in North America with $1million or more in financial assets, and in the world, there are 9.5 million households. The rich are getting richer, and the rich invest more in real estate, with 24% of their portfolios in real estate. As mentioned in some of my other blogs, the baby boom generation is having a major impact on the upper end market. Their desire to enjoy the lifestyle and success that they have achieved has them looking for the amenities they desire. Many of these "boomers" have been successful, increasing their estate size, and there has also been a large transfer of wealth from inheritance.
In the Durango Colorado area, 778 properties have sold for over $500,000 in the last five years, and over 100 homes have sold for over $1 million!! The most expensive property in La Plata County sold for $12 million in 2006.
If you have any questions about the upper tier of the market, please contact Don Ricedorff , don@frontier.net, www.durangorealproperty.com or call me at my office 970-3757014.
Friday, January 11, 2008
DURANGO COLORADO ECONOMIC UPDATE FOR 2007!
There are several areas of growth that have stabilized this regional area, and have produced an increase in employment of 8%. La Plata County has the advantage of having one of the largest national gas basins in the United States, and with the rising cost of oil and gas, the interest in expanding the drilling operations is high. Other areas of economic health include tourism, retail sales, airport passenger activity, and agriculture. Population has grown in the County to 48,563 in 2007. Unemployment has stayed under 3% for the last two years.
The forecast for the national economy is expected to have a slow start in 2008, with a slow recovery in the 2nd half of the year. There are concerns for inflation and unemployment, and continued international uncertainty. GDP growth is projected to be 1.3% for the first half, and 2.1% for the second half of 2008. Inflation is expected to increase to approximately 5% to 5.5%. Unemploymnent is projected to increase to 5.2% in the first half of 2008 from 5% in 2007. Housing starts are expected to decrease to approximately 1 million units from 1.1 million units.
Information Source: Southwest Business Forum, January 11, 2008, Fort Lewis College's 16th annual focus on our future: Business and Economics Sponsored by Wells Fargo San Juan Market.
If you would like further information from the forum, please contact me, Don Ricedorff, www.donricedorff.com, don@frontier.net, or 970-375-7014.
Monday, January 7, 2008
Preliminary year end real estate statistics for Durango Colorado/La Plata County for 2007!
The statistics for the total Durango Colorado/La Plata County real estate market are down 13.4% in transactions, with 119 fewer homes sold in 2007 as compared to 2006. Total residential transactions ended at 904 as compared to 1,023 in 2006. The median price was fairly stable with only a median difference of -1.5%, with the median price at $335,000. This compares to $340,000 for 2006, and $290,000 for 2005. The total volume was down 13.4% to $360,381,189.
The strongest segment of the market was the $500,000 to $1,000,000 segment, which posted a gain of 10 transactions for a 5.6% increase, and the volume was up $8,140,055 for a 7.2% gain. For the first time in the history of La Plata County, 187 homes sold in this price range.
The market over $1,000,000 counted 24 homes sold, which was two greater than 2005, but significantly lower than the historical 2006 year, which accounted for 43 sales.
The market below $500,000 was down 13.7% in transactiions, down .9% in median price, and down 14.6% in total transactions. This price segment has been impacted greater with the concerns over the sub-prime mortgage crisis, and buyers hesitant to jump back into the market. This should change in 2008 as the population continues to increase, and there is a pent up demand.
These market numbers show a vast improvement over the first five months of 2006, when the market was showing a 20% decrease in transactions. It appears that this market is flattening, and in much better condition than most of the country. Recently, there has been an article in Ski Magazine highlighting our area, and our neighboring city to the south, Farmington New Mexico has also received some postitive national press.
The market statistics are sourced from: Colorado Real Estate Network on 1-7-2008.
All opinions are mine, Don Ricedorff. You may contact me at don@frontier.net, Durango Real Property.com, or 970-375-7014 for a comparison of market statistics for 2005 through 2007.
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