Sunshine! That precious commodity that we enjoy so often in Steamboat Springs has finally returned.For how long we are not certain but I can assure you that most locals will be out enjoying the sunshine while it lasts. June is, after all, supposed to be the driest month for Steamboat according to the weather service. My 33 years of occupancy disputes this theory as I believe September to be the driest month. So what is this eerie and unaccustomed sight of cloudy mornings and dark wet afternoons and evenings? The meteorologists claim that we are a victim of two massive storm fronts that don’t seem to be moving.One is anchored near the Aleutian Islands and another squatting off the coast of Greenland.
Whatever the reason I can tell you it is the main topic of conversation at coffee shops and grocery stores and all the other social gathering places. We are so accustomed to waking up to sun in the morning and not having to worry about rain that many of us don’t even own an umbrella.
Maybe the Sun is beginning to shine on the national economy also. International markets are showing positive signs as are the American Stock and Bond markets. Unemployment figures are declining and home sales are up.
Conversing with Colleagues in various parts of the country there seems to be a lot of people taking advantage of the $8,000.00 first time home buyers tax credit. What many people don’t understand is that a “First Time Home Buyer” is considered someone who has not had ownership interest in a home for 3 years or more.
Getting back to my weather theme today my analogy for Real Estate purchasing in the Steamboat Springs, Colorado area is akin to the perfect storm. We have great inventory, anxious sellers, historically low interest rates, Federal Tax credits and prices that reflect the market of two to four years past. Mix all of these ingredients together and you have the makings of a Buyer’s Tornado. The time and climate is right to take advantage of these ingredients. Now go out and enjoy the Sunshine!
Many of us here in Steamboat are wondering what happened to our summer?With a strange weather pattern affecting western Colorado over the last few weeks, with cooler weather and intermittent rain showers, it feels more like fall than summer.However, the truth is, we’ve only received .72 inches of rain this month, according to an article today in the Steamboat Pilot, which is half of the average amount we typically receive in June, our driest month of the year.The upside is that we’ve been able to conserve water by not having to water our lawns!
If you are interested in conservation and energy efficiency, the Housing Economic Recovery Act of 2008 amended the Energy Policy Act of 1992 by increasing the maximum dollar amount that can be added to an FHA insured mortgage for energy efficient improvements, which are known as Energy Efficient Mortgages (EEMs).The base FHA maximum mortgage amount limit is calculated on the value of the home, however, the mortgage loan amount for an EEM can be increased by the cost of effective energy improvements, which is great news for those of you who would like to make your home a little “greener”. According to HUD’s website, the maximum amount of the portion of the EEM for energy improvements is the lesser of 5% of:
* the value of the property, or
* 115% of the median area price of a single family dwelling, or
* 150% of the conforming Freddie Mac limit.
For more information on the EEM, please contact a local lender, or you can call FHA’s Resource Center at 1-800-CALL-FHA (1-800-225-5342).
After a mixed bag of weekend weather with a beautiful day on Saturday, followed by a rain / sun / rain / sun pattern on Sunday (but good weather to run the Steamboat Marathon), it is a little hard getting back into the work week today.
With all of this turmoil in the real estate industry, one segment that is probably the most turbulent is the mortgage market. If there is one piece of advice I can give a Steamboat Springs real estate buyer right now, it’s to get the leg work done as early as possible with your lender to make sure there are no surprises once you have found a property and are ready to make an offer. I have seen a couple of road blocks come up, and have heard about many more nighmares from lenders. Underwriters are getting very particular about who they approve, and getting pre approved from your lender will help make the offer and purchase process much smoother.
The Steamboat Springs real estate market appears to be picking up a little over the past month. I’ll be writing my monthly newsletter shortly to give you an update, so be looking in your email box soon for the latest update.
Welcome to Marathon Weekend! This Sunday, June 7th will see the 28th annual Steamboat Springs Marathon which is our unofficial kick off to summer. There will be 500 Marathon runners along with 1000 half marathoners and untold number of 10k runners. Time and time again people proclaim that this is one of their favorite runs. Almost all 50 states will be represented as well as various countries.
The full marathon course begins at Hahn’s Peak Village while the half marathon begins simultaneously at Moon Hill Meadows. The 10k begins in front of the Court House where all the runners will cross the finish line in front of fans and family. As you can imagine the logistics are quite an undertaking. The Transportation component alone of hauling 1,500 participants beginning at 6:00 a.m. is quite a feat. Getting the right runners into the correct bus and getting those buses to deliver the runners then get quickly out of the way. It is amazingly well orchestrated and quite a show in itself.
There was an interesting article regarding Steamboat Real Estate and the fact that price is and should not always be the bottom line factor. The author points out that we are sitting on historically low interest rates that are artificial and won’t last. Chad James points out that “For anyone who was waiting for prices to drop even more, a 1.00% increase in your interest rate would bring a higher monthly principal and interest payment on a home, even if the price of that same home had fallen an additional 10% in value. If you’re waiting for home prices to fall even lower, be aware that while holding out for a lower price may help you win the battle, you could lose the war in terms of monthly payments and overall affordability. With the Federal Reserve scheduled to end its buying of mortgage-backed securities this year, rates only stand to go higher for those that wait. In fact, interest rates are already on the rise and could go higher from here”.
“REALITY IS THE LEADING CAUSE OF STRESS AMONGST THOSE IN TOUCH WITH IT.” Lily Tomlin. The reality of the recession has been stressful for many of us, but various pieces of news this week show things may be starting to turn around. Friday’s important Jobs Report showed there were 539,000 jobs lost in April versus expectations of a 610,000 loss, representing the smallest job loss since October. Even though the Unemployment Rate moved higher and hit a 26-year high of 8.9%, this is a lagging indicator, and many other data points hint that the worst could be over for the job market, and could lead to lessening stress in this area during the months ahead.Speaking of stress, last week’s “stress test” results showed the banking system is on the mend, and in better shape than it was a few months back. 10 of the 19 largest banks will need additional capital to cope with potential future challenges, but as a whole the banking system is solvent and regaining health. A crucial point to remember is that almost all of the institutions under scrutiny elected to choose the cash flow method of asset valuation, as opposed to the mark-to-market method. This would not have been possible without the Financial Accounting Standards Board (FASB) allowing for this change last month. Positive news came from Wal-Mart, saying that their sales for April were better than forecast. And they say, “As goes Wal-Mart, so goes the entire retail sector”, so this may mean health is also coming back to retailers at large. Bonds attempted to regain some ground in the early part of the week, but the good news from Thursday’s bank stress test, the better than expected Jobs Report on Friday, and the rally in Stocks caused Bonds to fall below key support levels. As a result, Bonds & home mortgages ended the week slightly worse than what it began.All of this relates favorably to Steamboat Springs Real Estate. We still have a climate of anxious sellers despite the signs of an economic turnaround. Opportunity in all sectors remains.
By our Guest Blogger
Holly Rogers, Mortgage Banker
Yampa Valley Bank
What does a hopeful first-time home buyer do if they don’t have a credit score?
It is a very exciting time to be a first time home buyer, with the government’s $8,000.00 tax credit, our historically low interest rates and a large inventory of homes to choose from. Many people have been asking me what they can do to buy their first home.
I have also had several borrowers of late that did not have a credit score. If this is you, not to worry. Even if you don’t have a credit score you have an opportunity to still get 100% financing on your first home.
What we, as mortgage lenders, have to do is build an alternative credit history for you and that can be done from a variety of sources. For example, some sources that do not report to the credit bureaus but can show you have a good history of paying on time are: your landlord, your cell phone company, any of your utilities (i.e. Yampa Valley Electric or Atmos Gas), your cable or satellite TV company, and your car, health or life insurance company.
You can also go to your bank and get a secured credit card as your first card. But be aware that the credit history must go back a full twelve months and must not show any late payments.
The best thing to do is to get a letter from these “alternative” credit sources, saying you have had the account at least 12 months and that you have paid as agreed. You then can take these letters to your mortgage company and they will be able to build a credit history for your mortgage file.
The USDA 100% financing program only requires you furnish them three of these above items in order to establish your credit history.
If you do not yet have a full 12 months established, you will need to wait until you do, in order to finance a home.
It is also a good idea to start building credit relationships that do report to the credit agencies as soon as you can, so you will be able to establish a credit score.
If you have any questions about credit or credit scores or any other home financing questions, please call me at (970) 875-1636.
Spring is finally here in beautiful Steamboat Springs, Colorado! Numerous flowering crabapples have bloomed in glorious shades of white and pink over the last several days, and colorful flowers are popping out everywhere. Memorial Day Weekend marks the first of numerous events scheduled for this spring/summer season, including the Historic Places Bike Tour, the Urbane Rail Jam and the 29th Annual Yampa River Festival.
If you have been waiting for that special opportunity to purchase a second home here in Steamboat Springs, Bear Lodge at Trappeur’s Crossing is offering a great financing deal to their next 5 buyers. Secured through Countrywide/Bank of America, the introductory rate will be 2.5% for the first year, 3.5% for the second year, 4.5% for the 3rd year, and 5.5% for the remaining years of a 7 year ARM. Current prices range from $299,000 for a 1 bed/1 bath up to $1,595,000 for a 5 bed/5 bath unit. The property offers numerous amenities, including indoor/outdoor pools, hot tubs, sauna, winter on-call van shuttle service, ski valet, tennis courts, fitness center, and heated underground parking.
Please call or e-mail us for more information about this great opportunity in Steamboat – and have a great and SAFE Memorial Day Weekend. If you’re in Steamboat this weekend, stop by our office – we will be open Sat., Sun., and Mon., from 10 a.m. until 2 p.m.
Even though the first time homebuyer tax credit has been widely publicized, I just read an article that said many Americans are still unaware of this great opportunity. So, I decided to post an article from the National Association of Realtors website at http://www.realtor.org/ that outlines the basics for you:
Bringing the Dream of Homeownership Within Reach
As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed legislation that grants a tax credit of up to $8,000 to first-time home buyers.
Here is more information about how the 2009 First-Time Home Buyer Tax Credit can help prospective home buyers become part of the American dream.
Who Qualifies?
First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009.
To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.
Which Properties Are Eligible?
The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.
How Much Will the Credit Be?
The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors:
The price of the home—the credit is equal to 10% of the purchase price of the home, up to $8,000.
The buyer’s income—single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit.
If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?
Yes, some buyers may still be eligible for the credit.
The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit.
Will the Tax Credit Need to Be Repaid?
No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.
If you want to take advantage of this one-time tax credit to buy real estate in or around Steamboat Springs, please call or e-mail us today!
The month of March is typically when a lot of out of town skiers descend upon Steamboat Springs during their spring breaks to take advantage of our Champagne Powder.Now that the ski mountain is closed, and we are officially in our “mud season”, it is time for the locals of Steamboat to take their spring break.The few visitors that are in town right now are wondering where the heck everyone has gone- and why are so many restaurants closed?But never fear, all will be back to normal before you know it.For those of you lucky enough to get away this week – have a fantastic time!
There is great news for those of you looking to purchase real estate with a USDA loan!Today marks the increase of their income limits – (for households between 1-4 people, it is now $92,000 and for households of 4-8, it is now $121,450).This is an increase of $31,000 for a household of 1-4.
Here are some quick facts on USDA loans, as provided by Kathryn Pederson of Yampa Valley Bank:
100% financing
No mortgage insurance
30 year fixed rate loan with no pre-payment penalty
Great rates!
2% fee paid directly to the USDA can be financed (102% financing)
Most condos are acceptable
30-60 day closings are typical
Do not have to be a first time homebuyer
Please let us know if you have any questions about buying real estate in Steamboat Springs .And for those of you who have been taking Susana’s “Be a Savvy Buyer” class, (or for those of you who would like to join the last two classes), don’t forget we are skipping this week for spring break and will be resuming class next Monday, the 27that 6:00 p.m.Please call Kristin at 970-819-8726 for details.
Spring in Steamboat is the most unpredictable time of the year but also the most interesting. No doubt we will experience a few more snow showers but in between we should be able to get in a few rounds of golf and get that bike all tuned up for the summer. The river will begin to flow in earnest and the buds on the trees are just another indication that we are emerging from our winter season. Sales of land in Routt County should see a little spike as clients can actually see what they are purchasing. It is also a time for most locals to take a breath, go on a nice vacation and return ready and eager to tackle all that summer has to offer.
As we are apt to do we want to find a culprit to blame for the current economic woes. It must be the banks fault or unscrupulous corporate CEO’s. Who can we vilify for our current state? Well maybe no person or set of people in particular but an accounting method. What?Many economists are reexamining FASB 157 or “Mark to Market”.An interesting Article by Barry Habib explains this accounting phenomenon.Here is a portion of his article:Let’s go back to the stock market crash, which occurred between 2000 and 2002. With the S&P down 49% and the NASDAQ down 71%, many people lost much of their life savings and they were very angry. Companies like Enron and Arthur Andersen were able to find ways to make books look more attractive, which was reflected in artificially inflated stock price.Both the public and Congress had a call for more transparency in business and hastened the passage of “Mark to Market” accounting.This is the notion that all assets should be valued as if they were sold on a daily basis. Under the letter of the law, failure to do this conservatively can now result in jail time. So what’s the problem? Let me make a quick analogy using a scenario that should make perfect sense to you.Let’s imagine that you own a house in a neighborhood where all of the houses are priced around $300,000. Unfortunately, your neighbor, who owns his house free and clear, falls ill and needs emergency cash quickly. Because he is under duress, he must sell the home for $200,000 in order to get the cash he needs right away, even though the home is worth considerably more. Now would this mean that your home is now worth the same $200,000 that your neighbor sold his for? Of course not, because you are not forced to sell under duress. It just means that your new neighbor got a great deal.However, if you were a publicly traded company and had to abide to Mark on Market account rules, you and the rest of your neighbors would now have to say, by law, that your house was worth only $200,000 – not the $300,000 you would get for it if you actually sold.Please let me know and I will be glad to forward you the remainder of the article which goes on to explain how this accounting method can devastate a bank or lending institution.As the season draws to a close we are seeing increased inventory and motivated sellers in the Steamboat Springs Real Estate market. It’s a great time to take advantage of low interest rates and a strong negotiating position. Give us a call and let us show you how we can save you time and money and get you into that property that you have longed for.
