Perfect Storm of Opportunity for Buyers

I attended a very interesting program put on by Wells Fargo Bank on May 20, 2010, that featured a national real estate expert, Brian Buffini.

Some of the information presented in this program echoed the predictions I have been making for the last few months. Of particular interest and as coined by Brian Buffini in the Wells Fargo presentation, there is a "Perfect Storm of Opportunity" for buyers in effect right now. In particular:

* Prices are down, and

* Mortgage rates are low.

A like scenario has not occurred in the last 30 years. Although in the last 30 years, we have seen periods of low interest rates, we have not seen low prices at the same time.

And, as I've also been emphasizing: inventories of property to select from, at least in La Plata County, Colorado, are at historic highs.

Finally, and as I blogged in March of this year, there is a buzz in some quarters that there is a national housing shortage ahead. As I indicated in March, with todays still depressed real estate market in Durango, it is hard to fathom a different future. However, there are experts, including Buffini, who are predicting a severe housing shortage nationally that will begin in the next 18 months and continue for a decade. The Harvard University's Joint Center for Housing Studies is making a similar prediction based on these factors:

1. Gen-Y-er's (those born roughly between mid 1970s and early 2000s) are approximately 81 million strong. They believe in home ownership and there are millions more of them than the Baby Boomers.

2. According to the National Association of Realtors (NAR), 47% of home buyers in 2009 were first-time buyers and NAR predicts that in 2010, first-time buyers will represent 52% of all home sales. Thus, Gen-Y-er's housing impact has only just begun.

3. According to the Harvard University's Joint Center for Housing Studies report, anticipated household growth during the next 10 years will range between 12.5 million and 14.8 million. All those new households mean demand for many new housing units.

In conclusion, for all of the above reasons, I continue to emphasize to anyone interested in the Durango market: Now is the perfect time to consider buying! Don't hesitate to contact me if you have any questions about investing part of your future in Durango, Colorado.


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
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.

Purchasing a Condo or Townhome? Questions to Consider:

As a Realtor in Durango, Colorado, I commonly am asked to show properties that qualify as Condos or Townhomes. Following are some important questions when considering the purchase of a property that is part of a multi-family complex:

1. Is there an active HOA and if so, what are the dues and how often are the dues billed?
2. Who manages the HOA and accounts for the dues? How is this leadership chosen?

3. What do the dues cover?

4. What kind of insurance does the HOA cover, if any? What kind of insurance does an owner need to provide?

5. What do the Covenants say about restrictions on use of the property. As examples: What are the pet policies? And, if you are buying as an investor, what do the covenants say about short or long term rental of the property?

6. Is money budgeted by the HOA each year for maintenance reserves?

7. Are there any ongoing, unsolved problems with the grounds, buildings, or common areas?

8. Are there any special assessments that might occur in the next year or two?

9. How old is the project?

10. What is the percentage of owner occupancy and does this pose any problems regarding obtaining financing?

11. When was the last time the building was painted?

12. When was the last time the parking lot was sealcoated?

13. When was the last time the roof was replaced?

14. When was the last time the decks were replaced? How often are they stained?

15. Do the sidewalks and parking areas need to be replaced?

16. Are there any on-going structural problems with the buildings?

17. Are there sufficient funds in the HOA reserves to do all of the above according to a maintenance
schedule?
18. How frequently are HOA meetings held? Are there any pending disputes or active lawsuits involving the HOA?

I hope you find this information useful if you are considering the purchase of a townhome or condo in a multi-family complex. Don't hesitate to contact me with any of your real estate needs.

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
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.

Beginning of "Shoulder" Season in Durango

This time of year is typically what I call the "shoulder" season in Durango, Colorado real estate. Durango Mountain Resort has closed and ski season is over. The high country is still inaccessible for hiking and camping, and river rafting hasn't started. So, this is usually a quieter time with respect to tourism and we generally see slower overall real estate activity from now until the end of June. I anticipate activity will increase for the summer beginning around July 1st.

Last Friday, April 30th, 2010, also marked the end of opportunity for the first time homebuyer or repeat homebuyer federal tax credits. Buyers who wished to take advantage of these two programs had to be under contract on April 30 and close by June 30, 2010. We don't yet know how much of an impact the expiration of the availability of these credits will have on our market.

Even with the expiration of the tax credit programs and the beginning of our "shoulder" season, demand for properties appears stronger than last year and our record high inventories are slowly decreasing. There are particular areas of our market where the opportunities to purchase at a great price have never been better. Affordability is at a peak and interest rates are still low, so it is a great time to buy.

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
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.

National Housing Shortage Ahead?

There is a buzz in some quarters that there is a national housing shortage ahead. Right now, with todays still depressed real estate market in Durango, it is hard to fathom a different future. However, David Crowe, Chief Economist for the National Association of Home Builders is predicting a severe housing shortage nationally that will begin in the next 18 months and continue for a decade. Obviously, this prediction is coming from the home building industry perspective, but it is interesting that the Harvard University's Joint Center for Housing Studies is making a similar prediction based on these factors:

1. Gen-Y-er's (those born roughly between mid 1970s and early 2000s) are approximately 81 million strong. They believe in home ownership and there are millions more of them than the Baby Boomers.

2. According to the National Association of Realtors (NAR), 47% of home buyers in 2009 were first-time buyers and NAR predicts that in 2010, first-time buyers will represent 52% of all home sales. Thus, Gen-Y-er's housing impact has only just begun.

3. According to the Harvard University's Joint Center for Housing Studies report, anticipated household growth during the next 10 years will range between 12.5 million and 14.8 million. All those new households mean demand for many new housing units.

The bottom line, according to these national predictions, is that the number of homes today is simply not going to be enough to keep up with America's overall growing population and by the growing demand for home ownership Gen-Y buyers.

We all just need to hang tight. The future for home sales and home building is bright. And, as I try to remind buyers buyers routinely, NOW is the perfect time to buy due to the uncommonly good inventory of affordable homes and the historically low interest rates.
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
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.

Durango is TOPS!!

And I'm not the only who thinks so! Check out all the awards Durango has received:

Durango Area Awards
2009 “The West’s 20 Best Small Towns”, Sunset Magazine

2009 “Top 20 Romantic Getaways”, Sunset Magazine

2009 “America’s 200 best Hunting and Fishing Towns”, Outdoor Life

2008 “Top Ten Western Towns”, True West Magazine

2008 “7 Great Mountains to Ski with Your Kids”, Ski Magazine

2008 “Governor’s Award for Historic Preservation”, Colorado Historical Society

2008 “Silver Level Bicycle Friendly Community”, The League of American Bicyclists

2008 “Colorful Colorado Award”, Governor’s Award for Downtown Excellence

2008 “Top 10 Christmas Towns”, HGTV

2008 “Top 20 Resorts”, Conde Nast Traveler

2007 “America’s Dozen Distinctive Destinations”, National Trust for Historic Preservation

2007 “Next Best Places to Ski, Live, Invest and Retire”, Ski Magazine


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
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.

Silent Killer - Carbon Monoxide Gas

Did you know that approximately 20,000 people visit the emergency room each year for carbon monoxide poisoning? Carbon monoxide is a colorless, odorless gas that can produce illness or even death and is particularly a problem in the winter when homes are less well-ventilated and when the use of CO producing heat sources increases. Symptoms of such poisoning include headache, dizziness, weakness, nausea and confusion. Inhalation of high levels of the gas can lead to loss of consciousness and even death.


The prevention of carbon monoxide poisoning begins with the purchase of appropriate gas appliances (as certified by the American Gas Association or the Underwriter's Laboratory) and by regular servicing of appliances and ventilation systems (including chimneys). If you smell gas from an appliance, discontinue its use and have an expert service it. Stoves and fireplaces should be used only when well-ventilated.


Also, homes should be equipped with carbon-monoxide detectors. Colorado passed a law effective July, 2009 mandating that homes that are leased or are for sale must have these detectors in place.


I hope you find this information helpful. If you have questions, you can reach me, Don Ricedorff, at The Wells Group, Durango, Colorado, 970-375-7014 or don@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
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.

When Is It The Right Time To Buy A Home?

There are two major considerations in the timing of buying a home, your personal needs and desires, and the market conditions.

Personal Considerations:

Stability: Do you have job, income and financial stability? Given the financial issues of the last few years, job and income stability will be mandatory with lenders.

Will you be planning on staying in the general area for at least 3 to 5 years? The risk of market timing is diminished if this is a long-term commitment and investment.

Are your personal circumstances likely to change? This is a key consideration, as family size and needs are one of the biggest reasons for moving. Will you be adding to your family size or perhaps transitioning to empty nesters?

Can you afford a home that meets your current and projected needs? If you can not find one in the location you desire, are you flexible in your commuting distances to find a home that meets your needs?

Market Conditions:

Market Timing: This is a difficult determination to make. What is the projection for the cycle to be--upward or downward?

Mortgages: The lower the interest rates, the more affordable the home. A 30-year fixed mortgage is a wonderful thing! The basic payment does not change with inflation, so as home prices increase, the payment is locked in. The second question is “Are there safe mortgages available for my needs?”

Inventory: Is there an adequate inventory of homes available to make a selection?

Special Considerations: Are there opportunities for special mortgages or programs for which you can qualify? As an example, there are first-time homebuyer mortgage programs, restricted-income mortgage programs, and special tax credits available for some buyers.

The Current Market Considerations:

This is a great time to buy from a market perspective. Prices have fallen, and they are now in line with historic average appreciation. The market transactions have bottomed, and prices are probably near the bottom of the market. Most real estate and economic experts believe the housing market will recover with the economy, and that the recession is, technically, over. There is still an adequate inventory of homes that are listed, left over from the housing recession, and interest rates continue to be at the lowest levels in four decades. There are tax credits for first time homebuyers, and for home sellers that have lived in their home for more than five years.

Consider this information: (From National Association of Realtors®)

Most Americans still believe buying a home is a good investment. Nine out of ten consumers consider homeownership to be a sound decision.

Given the leverage in purchasing a home, the average return on a 5 percent down payment over 10 years is usually three to five times greater than stock market returns.

Another advantage of owning a home is the ability to “write off” the mortgage interest on your taxes, thus reducing your federal income tax bill, and thus saving additional dollars.

If you bought a home 10 years ago, it would be worth almost 27 percent more today.

Real estate has delivered the best return of any investment over the last 40 years.

The typical homeowner’s net worth ($205,200) was 49 times that of the typical renter ($4,200) in 2009, according to NAR calculations using statistics from the Federal Reserve Board.

You can reach me, Don Ricedorff, at The Wells Group, Durango, Colorado, 970-375-7014 or don@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
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.