WELLS GROUP FORECAST: 2012 A "RESET" YEAR AND TIME TO BUY!

The Wells Group Forecast was well attended on Wednesday by numerous Wells Group clients, investors, developers, friends and representatives from several local financial institutions. Local appraiser and real estate consultant Bob Allen provided attendees with a detailed analysis of our local real estate market followed by a "forecast" for 2012 crafted through the collective wisdom and experience of the Wells Group brokers. A brief recap from the Forecast included the following:

Local indicators show that many of the sectors in our market are balanced.

There has been a substantial inventory reduction.

Cost of funds + low values = great opportunities.

The window on some good deals will close in 2012.

300 - 400 new households need to find housing in 2012.

There will be more "move-ups" or "move-downs" in 2012.

Rental property inventory will be absorbed.

Second home and vacation home buyers are coming back to the market.

Resort property sales are up 31% year over year.

If you would like to access the Forecast materials on-line or have us send you a copy, please contact our office at 970-375-7014 or email us at: don@durangorealproperty.com

If you have any questions, please do not hesitate to call me. You can reach 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 18+ 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
CDPE, Certified Distressed Property Expert
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.

Banks Loosen Credit Standards

I'm reprinting an article below from dsnews.com published today indicating yet another opinion that the housing crisis should end in 2012 with loosening bank credit standards.

Housing Crisis to End in 2012 as Banks Loosen Credit Standards

reprinted from dsnews.com March 15, 2012

Capital Economics expects the housing crisis to end this year, according to a report released Tuesday. One of the reasons: loosening credit.

The analytics firm notes the average credit score required to attain a mortgage loan is 700. While this is higher than scores required prior to the crisis, it is constant with requirements one year ago.

Additionally, a Fed Senior Loan Officer Survey found credit requirements in the fourth quarter were consistent with the past three quarters.

However, other market indicators point not just to a stabilization of mortgage lending standards, but also a loosening of credit availability.

Banks are now lending amounts up to 3.5 times borrower earnings. This is up from a low during the crisis of 3.2 times borrower earnings.

Banks are also loosening loan-to-value ratios (LTV), which Capital Economics denotes “the clearest sign yet of an improvement in mortgage credit conditions.”

In contrast to a low of 74 percent reached in mid-2010, banks are now lending at 82 percent LTV.

While credit conditions may have loosened slightly, some potential homebuyers are still struggling with credit requirements. In fact, Capital Economics points out that in November 8 percent of contract cancellations were the result of a potential buyer not qualifying for a loan.

Additionally, Capital Economics says “any improvement in credit conditions won’t be significant enough to generate actual house price gains,” and potential ramifications from the euro-zone pose a threat to future credit availability.

If you have any questions, please do not hesitate to call me. You can reach 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 18+ 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
CDPE, Certified Distressed Property Expert
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.

Warren Buffet's Secretary: Its Time to Buy!

I thought you would enjoy the below quote from Warren Buffet's secretary. With affordability of housing at 1971 levels (according to HUD) and with rents rising dramatically, we too think that now is the time to buy and that the spring real estate season will begin to reflect that. The next edition of the Wells Group Real Estate Guide will coincide nicely with the beginning of "Spring" (March 20th) and will be published in the Durango Herald on March 18th.

"I just thought it was time to buy a home. Warren tells me that it will be the best opportunity in my lifetime. Mortgage rates are low and prices have dropped dramatically…I share Warren's view about the future of America and we believe that our country will do just fine. I am happy to make this investment." Debbie Bosanek - Warren Buffet’s Secretary of 37 Years on Purchasing a Second Home

Omaha World Herald 1/27/2012

If you have any questions, please do not hesitate to call me. You can reach 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 18+ 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
CDPE, Certified Distressed Property Expert
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.