The Bridge Team
July, 2010

• Wash Park Market-At-A-Glance Stats
  available on our web-site by clicking above
• H-O-T Washington Park Listings
  available on our web-site by clicking above

Even without stimulus money, now is a good time to buy

Here at RE/MAX of Cherry Creek, we are especially thankful to the economic stimulus package’s tax incentives for homebuyers. If our statistics reflect a national trend, those enticements were a big success.

We closed on a whopping 144 properties in April, the month the tax credits expired. It was the busiest April we’ve had in the past five years — and a huge improvement over the 88 closings we logged in April of 2008 (one of the lowest points in the market).

That’s good news for us, obviously. But it’s also important information for any of you still thinking of buying a home.

The stimulus money has injected momentum into the housing market. Although no one has a crystal ball, it seems that the continued low interest rates, coupled with other market forces, may provide motivation for prospective purchasers.

A few things to consider:

• Most experts believe interest rates have hit bottom and are already trending upward. Industry observers predict rates may rise from around 5 percent to 6 percent by early next year. Even this 1 percent increase can drastically affect the size of the mortgage you can afford. For example, if you purchased a home with a 30-year, $300,000 mortgage at 5 percent interest, you would pay about $1,600 a month (without taxes and insurance). If the rate rose to 6 percent and you wanted to keep that same monthly payment, you could only obtain a $270,000 mortgage.
• In addition, while metro area home prices have been down or flat for the past three years, prices are on the upswing. The recent Standard & Poor’s/Case-Shiller Home Price Index reported that Denver was among nine cities showing a rise in home prices during the first part of the year. We expect that trend to continue.

In short, while you may have missed the tax credit, you haven’t necessarily missed the boat. It’s still a good time to think of buying.

We would be thrilled to help you in your search – or to answer any questions you might have about trends in the metro real estate market. Don’t hesitate to call if we can be of service!

New renovation rules now in effect

Tips on cleaning the green way

Denver Real Estate

Sales

May ’10 vs. May ’09
Single-Family Homes
+19.6%

Average Price

May ’10 vs. May ’09
Single-Family Homes
+4.3%

Inventory*

May ’10 vs. May ’09
Single-Family Homes
-2.5%

Avg. Days on Market

May ’10 vs. May ’09
Single-Family Homes
-27.9%

See our full Denver Market Summary, below!

* Includes active and under contract. Based on information from Metrolist, Inc. Note: This representation is based in whole or in part on content supplied by Metrolist, Inc. Metrolist, Inc. does not guarantee nor is in any way responsible for its accuracy. Content maintained by Metrolist, Inc. may not reflect all real estate activity in the market.

Protect your home against crime

With warm summer days upon us, it’s always tempting to leave doors open to catch the breeze. But crime is an ever-present reality in our modern world, and an open door can present an open invitation to criminals.

When it comes to home security, experts suggest that you:

• Not only lock your door, but add a deadbolt to that lock: Deadbolts are advised because they are not spring activated and, thus, can’t be opened with a credit card.
• Install outdoor lighting: Motion detector lights help deter criminals, as well as light your way when you are leaving or returning home. If you prefer more steady lighting after dark, try lights that automatically come on at dusk and turn off at dawn; they’ll make it seem as if you are home, even when you’re on vacation.
• Put timers on your radios and televisions: Burglars may be scared away if they think someone is home. Tune your radio and TVs to talk shows, then set the timers for these appliances to turn on when you’re away from home.
• Check to make sure the address on your home is clearly visible: An easy-to-read address can save police valuable time when responding to an emergency call. Don’t forget to mark the alley entrance as well, as officers may respond at your back entrance.
• Trim shrubs: If you have large bushes against your home, trim them so that they are shorter than the height of your windows. This will prevent anyone from being able to peer into your house while taking cover in the bushes. Similarly, if you have large trees, such as evergreens, trim the lowest branches so that any intruder hiding behind the tree can be spotted.
• Display security alarm signs and window stickers: Burglars may move onto another home if they believe homeowners have installed a security system. You can contract with an alarm company, which will provide the signs and stickers, or, if you want to save money and simply project the idea that you have a security system, you can purchase alarm company stickers on the Internet.

Despite recent housing market troubles, Americans still value owning their own home

Home owning is still where the heart is – at least according to a recent Fannie Mae National Housing Survey. The report indicates that despite all the bad news in the housing market in recent years, Americans still hope to purchase their own homes.

Among the survey’s findings:

• 65% of Americans would rather own a home than rent.
• 70% of respondents believe buying a home is one of the safest investments available (compared to 74% who believe putting money into a bank account is safe).
• 43% cite safety as a key reason to buy a home.
• 33% are motivated to buy because they believe the schools are better in neighborhoods where the residents own the majority of homes.

New renovation rules now in effect

Attention renovators! If you live in a home built before 1978, new government rules may apply to any remodeling projects you are planning — particularly if sanding, cutting and demolition are involved. Such activities can disturb lead-based paint, leading to hazardous lead dust and chips particularly harmful to children.

The EPA’s Renovation, Repair and Painting rules went into effect April 22, 2010. While contractors are still trying to make sense of the restrictions, which are especially involved, here are a few key points to be aware of:

• Contractors performing such renovation in private homes, child care facilities, and schools built before 1978 must be certified and follow specific work practices to prevent lead contamination.
• Property owners performing these projects in pre-1978 rental housing or space rented by child-care facilities must be certified and follow the required lead-safe practices.
• The rules do not apply to minor maintenance or repair activities where less than six square feet of lead-based paint is disturbed in a room or where less then 20 square feet of lead-based paint is disturbed on the exterior. (Window replacement is not considered minor maintenance or repair, thus the new rules will apply.)
• If you are a homeowner working on your own home, EPA’s new rules don’t apply. EPA does recommend, however, that you protect your family by first reading a copy of its pamphlet: Renovate Right: Important Lead Hazard Information for Families, Child Care Providers, and Schools

The EPA also recommends calling the National Lead Information Center and asking for more information on how to work safely in a home with lead-based paint: 1-800-424-LEAD (5323).

When it’s time to clean, consider these tips

If you’re feeling the urge to freshen things up around the house, keep in mind that going green is not only an environmentally sound decision but often a healthy one as well.

In the case of cleaning products, for example, why not trade harsh chemicals for a homemade concoction that’s as safe as it is soothing? This vinegar solution deodorizes and disinfects — and works on kitchen and bathroom countertops, bathroom fixtures, glass shower doors, even toilets.

In a 16 oz spray bottle, combine:

• White distilled vinegar (3 parts water to 1 part vinegar)
• 10 drops of Lavender Essential Oil
• 10 drops of Orange Essential Oil
• 4 drops of lemon juice

Just shake and let the cleaning begin!

And if you’re focusing your cleaning efforts on the garage, remember that laws forbid throwing hazardous waste into your regular trashcan. Separate old paint cans, insect spray, broken CFL bulbs, pesticides, motor oil, batteries or other questionable items from the rest of your trash and arrange for special pickups.

Denver residents can call Denver’s Household Hazardous Waste Collection Program’s hotline: 800-449-7587

Those outside of Denver should visit the Colorado Department of Public Health and Environment’s website for details.