by neil kearney | Feb 1, 2007 | Boulder County Housing Trends
One of the best sources for broad market analysis are the companies that provide mortgage insurance. MGIC (Mortgage Insurance Guaranty Corporation) provides mortgage insurance nationwide. It is in their interest to know where the markets are going because it is their money that is on the hook if a mortgage is defaulted. In a market where values are rising they really can’t lose because as the value rises, equity rises, and as equity rises the risk of loss falls. On the other hand in an environment of stable or falling prices the risk of loss remains high over time.
So, I was interested to find that MGIC has on their website a Market Trend Analysis for the top 72 real estate markets in the country. It gives a summary view which states whether the current conditions are stable, soft or strong as well as a projection for the future. For example, Denver is currently rated “Stable” with “No Change” as the projection.
Who’s Hot and Who’s Not
Currently there are 11 markets or 15% that are rated “Soft”. These are mostly in the Midwest with the few exceptions being Miami, FL, San Jose, CA and San Francisco, CA. Conversely, there are currently 12 markets that are rated as “Strong”. Markets rated as “Strong” include Seattle, WA, Salt Lake City, UT, Tuscon, AZ, Washington, D.C., and five locations in Florida. This leaves the majority of markets around the country as “Stable”.
What I find even more interesting are the projections, are markets getting better or worse in general. Six markets are “Improving”. These include; Albuquerque, Austin, Nashville, Raleigh, San Antonio and San Francisco. There are 12 areas that are listed as “Softening” or “Weakening”. I think this represents the general fizzle of the markets nationally, which is a natural result of the strong gains in recent years.
The website then focuses in on each of the markets and gives a snapshot of income trends, employment, housing affordability, home prices from OFHEO, employment mix and household growth.
General Observations about Denver are as follows: “Denver’s economy has maintained a steady growth rate. Annual employment increased 1.7%, as the unemployment rate held int eh mid 4% range. The proposed redevelopment of Union Station and expansion of the light rail system provide for a positive outlook. Denver’s housing market is showing signs of slowing, but remains stable. The supply of single family homes increased to 7.2 month, with almost 65% of the sales in the $200,000 to $500,000 range. The supply of condominiums is now at 9.2 months, with 40% of the sales under $140,000. Steady population and job growth will help both the housing sector and the demand for office space.”
I will compare our outlook to some others in the coming days. Stay Warm!
by neil kearney | Jan 29, 2007 | For Buyers, For Sellers
Boulder County is located in a zone of high potential for elevated radon levels in the air. In real estate transactions radon almost is always an issue. It is almost always tested for and when the reading comes in at a level above 4.0 pCi/L (picocuries per liter) then the Buyer and Seller negotiate what will be done and who will pay. But first some background that can be found EPA’s Radon Website
What is Radon?
Radon is a gaseous radioactive element having the symbol Rn, the atomic number 86, an atomic weight of 222, a melting point of -71ºC, a boiling point of -62ºC, and (depending on the source, there are between 20 and 25 isotopes of radon – 20 cited in the chemical summary, 25 listed in the table of isotopes); it is an extremely toxic, colorless gas; it can be condensed to a transparent liquid and to an opaque, glowing solid; it is derived from the radioactive decay of radium and is used in cancer treatment, as a tracer in leak detection, and in radiography. (From the word radium, the substance from which it is derived.) Sources: Condensed Chemical Dictionary, and Handbook of Chemistry and Physics, 69th ed., CRC Press, Boca Raton, FL, 1988.
What are the Health Effects From Exposure to Radon?
No immediate symptoms. Based on an updated Assessment of Risk for Radon in Homes, radon in indoor air is estimated to cause about 21,000 lung cancer deaths each year in the United States. Smokers are at higher risk of developing Radon-induced lung cancer. Lung cancer is the only health effect which has been definitively linked with radon exposure. Lung cancer would usually occur years (5-25) after exposure. There is no evidence that other respiratory diseases, such as asthma, are caused by radon exposure and there is no evidence that children are at any greater risk of radon induced lung cancer than adults.
What is the Average Level of Radon Found in a Home?
Based on a national residential radon survey completed in 1991, the average indoor radon level is about 1.3 picocuries per liter (pCi/L) in the United States. The average outdoor level is about 0.4 pCi/L.
So, you can see why it comes up often in a real estate transaction. Of course some people are more worried than others and this becomes part of the art of negotiation. During the inspection period (which is usually between 10 days and 2 weeks long) a buyer has the option to have a radon test performed usually by a general home inspector. The cost is somewhere around $100 for the test and it takes 48 hours to perform. If the results of the test come in above 4.0 pCi/L then it is very common for the Buyer to ask for the Seller to mitigate so that the radon level inside the habitable part of the home (not crawlspaces etc.) is below 4.0 pCi/L. The cost for mitigation can vary but in our area the typical cost is between $800 and $900.
What is done to mitigate the radon level in a home?
Most often a 4″ PVC pipe is inserted into a drilled hole in the basement slab. This pipe is routed to the outside of the home and above the roof line. Somewhere along the pipe a fan is installed that will run continuously and will suck the sub-slab air to the outside creating a vacuum. The diverted airstream does not allow radon to seep up through the concrete into the house.
Radon is a fixable problem and it is a good idea to have the test done. I tell my clients that even if they are not concerned about the risk most likely the people who buy the house from them will be.
by neil kearney | Jan 25, 2007 | Uncategorized
The media is filled with stories of foreclosure, especially in Colorado. It is clear that there are many people losing their homes all over, but what is the cause. Here are a few 
of main reasons:
- Divorce – Most people count on two incomes to pay for the mortgage. When a couple separates all of a sudden there are two homes to pay for instead of one. On top of that there are attorneys to be paid and it all doesn’t happen quickly.
- Prolonged Illness – Medical bills along with lost income is a recipe for disaster.
- Employment Problems – When you lose your job and don’t have enough savings you have to choose what bills get paid.
- High Loan Balance – Mortgage money is easy. Between a first loan, a second loan and a home equity line of credit many people have used their homes as an ATM machine. When the time comes to sell, they do not have enough money left over to pay selling fees and are forced to try to sell for a price that is above the market value. When it does not sell, many times it is too late and the Sellers are forced to move on. sometimes it is easier to leave the house with no equity than it is to delay your life or make double payments.
- Adjustable Rate Mortgages – When the adjustment takes place the payment becomes more than what they can afford. Sometimes the payment increases by 40% or more. However, most people right now are able to refinance into a fixed rate mortgage for around 6%, which should be able to mitigate the increase.
Each situation is different but the main reason we are seeing foreclosures now is that home values have not risen. When home prices are rising bad decisions do not become disastrous decisions. I remember locally when our appreciation rates were annually around 20% homeowners were spending taking out equity loans to go on vacations, buy cars etc. As long as the prices kept rising they were dumb but okay. In our market there are areas that have been selling for the same price for the last five years. A high mortgage balance and a slow market does not allow homeowners to liquidate their bad decisions. They are stuck. In the end the underlying reason for most foreclosures are stagnant or declining market values.
by neil kearney | Jan 23, 2007 | For Sellers
How to Sell a House That Has Been on The Market for Over Six Months
During the past week two of my listings have accepted offers from Buyers. One listing had been on the market over a year and a half (mountain vacant land) and the other had been on the market 2 days (Lafayette Townhome). In our market I feel lucky to have found a ready, willing and able buyer in just two days. 
This is not the norm, as the average days to an offer is over 75 days in Boulder County.
Here is the typical scenaria; During the first few weeks it is common to have many showings because there is a pool of buyers waiting for new listings. Once the initial few weeks have passed that the showings slow considerably and only new buyers to the market set up showings. So what if your house was not priced correctly or did not otherwise compare well with the competition and remains on the market without offers or interest. I have recently shown homes that have been listed for close to a year. What if you own one of these homes and need to get the house sold. Here are some ideas:
- Lower the price – The market has spoken and if your home has not sold in a reasonable time as other homes in the neighborhood get listed and sold, your price is too high.
- Make the house look better – Sometimes you have to spend money to make money. Take an objective look at your house, maybe it needs a paint job, some new countertops or a replacement for the green shag carpet. I have nothing against green shag, I grew up with green shag. I love it, you love it but buyers DO NOT love it.
- Do some staging – Maybe you have all the pieces, but they are all in the wrong places. A little staging goes a long way in making that all important first impression.
- Make sure your curb appeal is the best on the block – Do some landscaping, buy some flowers, or this time of year make sure the snow is shoveled.
by neil kearney | Jan 18, 2007 | Uncategorized |
OPEN HOUSE SUNDAY 1-3
I’m holding an open house at this beautiful listing this coming Sunday. I’d like to invite you to come take a look at this beautiful home. You will find it has beautiful features usually only found in $Million homes including: a professional kitchen with Viking 6 burner stove, Sub-Zero fridge, Miele dishwasher, extensive tile work, upgraded Marvin windows throughout, 
beautiful high end bathrooms and much more. The house sits on a large beautifully landscaped lot with many trees, a private deck and a water feature. Neighborhood pool directly across the street and open space and trails in the near vicinity. You can view a virtual tour at http://www.6820TwinLakes.com. Below is a list of some of the upgrades.
General/External
Unobstructed mountain views
Very large lot with professionally landscaped yard – fenced – mature trees and shrubs with sprinkler and Koi pond
Large – very private redwood deck with build in custom cabinetry with sandstone counter tops
Exterior landscape lighting package
Two car garage with attached storage for garden equipment – mower – shelving, etc.
Air Conditioner replaced in 2004
Exterior cabinetry replaced in 2006
Wired for stereo speakers
Internal
- Family room fireplace replaced in 2006 with an energy efficient gas unit which can replace the furnace with thermostat, fan, and remote control
- Windows replaced with Custom Marvin Windows in 2004
- All custom window coverings by Hunter Douglas
- Kitchen/family room upgraded in 2001 with Subzero frig, Viking stove and hood, custom oak cabinetry, porcelain tile floors and ceramic counter tops, under counter lighting, retro fit custom draws in cabinets
- Powder room with Zen sink and custom maple cabinetry – hall bath upgraded with tumbled marble floors and walls, custom alder cabinets, designer lighting package, Jado fixtures, Toto toilets, and custom artist paint/textured walls
- Complete interior wall re-paint with Benjamin Moore paint products 2006
- New Horchow lighting fixture in foyer
- Dinning room wall paper hand made in France
Basement
- Approximately 1000 square feet
- Plumbed for bathroom fixtures
- Partially walled for storage
- Cabinets and built-in microwave
Notice: All opinions contained herein are personal and do not necessarily reflect the opinions of Kearney Realty Co or Metro Brokers Inc. All statistical information is deemed reliable but is not guaranteed. It is compiled for your information and enjoyment. The purpose of this site is to give detailed information about real estate in Boulder Colorado. Please contact me if you have any questions concerns or want to become a client.
