Absorption Rates and Other Real Estate Matters

By Kristal Kraft Denver Realtor | Published: February 16, 2010

The State of Denver Real Estate

Homes for sale in Denver making up the current real estate inventory are staying on the market an average of 88.91 days.  That is less than 3 months.

For the record it is said any amount over 6 months is a buyer’s market, under a 6-month time frame it is a seller’s market.  That may be good news, depending up on which side of the transaction you are on.

Selling Your Home? Here’s Some Good News!

The Absorption Rate in Denver is at 32.16 weeks (a 2 week improvement over same time last year)

Our inventory is getting skinny.  Last year we had 19,748 homes on the market, this is 2283 homes MORE than we had on the market in January 2010.

Having a selection of 17,465 homes to choose from sounds like a lot, but when you segment this into price ranges, multiple neighborhoods, condition, actually availability (don’t get me started on bait & switch short sales) plus age and style, this renders only a handful of homes that might meet a buyer’s needs!

Couple this handful of homes with the added competition and we have sellers receiving multiple offers. This is great for the seller, but very disappointing for the buyer and his troupe of support (agent, lender, inspector, etc.) when he loses house after house to higher bids.

How Many Homes in Denver Did We Sell?

Last year we sold 116 LESS homes than we did this January.  2010 saw a total of 2,353 closings!

We are selling more homes with less to choose from.

Buyers are excited about purchasing because they are looking forward to their $8000/6500 tax credit.

Posted in Current Events | 1 Comment

How Many Dogs Can I Have, legally?

By Kristal Kraft Denver Realtor | Published: February 9, 2010

A question that has been coming up lately from Denver Relocation buyers is about the number of allowable pets one can have in a residence.

I decided to do a little research on the answer and of course as luck would have it, there is no one right answer!  It depends upon which county one lives in.

So here’s the results of my research:

Douglas County: Household pets are permitted in all zoning districts where residences are permitted.  Household pets include, but are not limited to, dogs, cats, pot-bellied pigs, rabbits, fish, gerbils, hamsters, parakeets, parrots, cockatiels, provided they are not raised for commercial purposes.

A maximum number of 4 cats, dogs or a combination of four of these animals are allowed per house.  In order to have more than four cats or dogs, you must be located in the A-1 or LRR zoning district and receive use by special review approval for a kennel, form the County Commissioners.

Denver County: Allowable 3 dogs, 5 cats, 2 rabbits, or 25 pigeons, or 5 total dogs and cats, not exceeding 3 dogs) no exotic pets or farm animals.

Jefferson County: The maximum total number of dogs, cats and similar domesticated pets which may be kept shall be 3. Litters of puppies or kittens may be kept  until weaned.

Arapahoe County:   There shall be a maximum combination of three dogs, cats, small animals, and reptiles over the age of six (6) months per household. except as otherwise set forth within the Land Development Code.

Adams County:  After spending an hour searching their very unfriendly site, I gave up and called the County for help.  The nice lady was able to direct me to the precise location of the information after about a dozen non-intuitive clicks! If you get lost look for “animal keeping” under Design Requirements and Performances Standards in the Adams County Development manual.  Since Adams County is mostly rural the rules for household animals changes with the size of the land.  An ordinary house on a city lot can have 3 dogs 3 cats, 2 chinchillas, 2 ferrets, 2 guinea pigs, for a maximum of 10.

At a 1/2 acre lot the cat count goes to 4 but still only 3 dogs, with the same number of other pets as in the less than 1/2 acre requirement.  At 2-5 acres a homeowner is allowed to have 4 dogs.  More acres more dogs!

On a trivia note in Adams County when you have 1/2 acre or more you can have 4 Alpacas, 4 beefalo, 5 colonies of bees, 4 cattle, 50 chickens, 50 Chincillas, 4 deer, 40 emus, 50 ferrets, 8 goats, 50 guinea pigs, 4 horses, 4 llamas, 4 mules, 15 ostriches, 50 rabbits, 8 sheep, 8 swine and 50 turkeys.  The maximum allowable amount of all pets combined is 20.

Broomfield: Citizens living in Brooomfield are allowed four adult animals in each residence.  Animals over six months of age are considered adults.  This does not apply to fish or birds.  Livestock, fowl, exotic animals, wildlife, or endangered species are not allowed as pets within the City and County of Broomfield.  Non-poisonous snakes and ferrets are allowed.

Elbert County: Domestic animals, such as dogs and cats (not more than four (4) animals of more than four (4) months of age), are permitted in all districts, provided they are not bred, boarded, sold, trained or groomed for commercial purposes.

Bottom line, if you love dogs and need to have the maximum, allowable number in your household, you best bet is to live in one of the following counties:

  • Douglas County
  • Adams County
  • Broomfield County
  • Elbert County
Posted in Relocation to Denver | Tagged , , , , , , , , , | 2 Comments

Interest Rates – What’s the Low Down?

By Kristal Kraft Denver Realtor | Published: February 3, 2010

Jet trails should go up, not interest rates!Funny how when things are good people, tend to forget that things are good, and good things don’t necessarily last forever.  I’m referring to interest rates.

The other day, a client made mention of a “high interest rate” being 6%.  It struck me funny,although I didn’t laugh.  To me a 6% interest rate is actually pretty darn good!  Of course in this market, it’s high, but I can remember when interest rates were 18% on mortgage loans!

Yes, that’s true, in the 1980’s we saw inflation and high interest rates like never before.  I started selling real estate in 1984 and found myself “justifying” a TERRIFIC interest rate of only 14%!  (ouch!) Yes, of course home prices were much lower then.  We were selling nice entry level homes in the $40 and $60 thousands, but still at 18% that was like Master Charging a house!

Well these days of good interest rates maybe coming to a close. Starting April 1, 2010 the FED is stopping it’s purchase of mortgage backed securities.  This isn’t new news.  In fact the FED has been broadcasting the decision for several months now.

Experts seem to agree, mortgage rates will increase.  It won’t be steep, (like the 1980’s thankfully!) but we do expect to interest rise.

How will this affect the average Denver real estate buyer?  Well a 1% increase, say 5% to 6% on a $250,000 mortgage is $156 a month.

That means if a home buyer is qualified at 5% for $250,000, when the interest rate goes up, the same buyer can only qualify for a loan of $224,000!

That is a big difference!

Dan Green’s Mortgage Report uses logic saying the rate came down by one percent when the Fed stepped into help, therefore it might go up by the same amount.  Nobody knows.  One thing we all can agree on is to lock your rate.

If it’s time for you to buy a home, that time is probably right now.

Start your home search here, click on Denver Home Search in the bar above.  You’ll love the convenience of being able to search the MLS-idx data base, save searches and favorite properties.  Please call me if you need help.

Posted in Real Estate Tips for the Wise | Tagged , , , | 1 Comment

FHA is Changing Rules and the Scope of Qualifying for Buyers

By Kristal Kraft Denver Realtor | Published: January 30, 2010

Recent announcements by FHA will have impacts on our spring time (and beyond) buyers.  The rules mean more money down and higher payments, here’s the scoop:

  1. Beginning April 1, 2010 the Upfront MIP is increasing from 1.75 to 2.25.  (MIP is the Mortgage Insurance Premium that all buyers using an FHA loan get to pay, up front in order to obtain the loan.)  to give you an idea of how much this increase is, let’s talk numbers.  On a $200,000 the Upfront MIP increases by $1,000.  Typically the buyer finances this amount into the loan, making that $200,000 loan a $204,500.  This increase raises the buyer’s payment on a 5% loan by $5.35 a month for 30 years.
  2. The good news for investors (AKA flippers) FHA has implemented a waiver (beginning Jan. 15, 2010) that allows properties to be transferred without having to wait the required 90 days.  This rule which personally I have never understood has only been waived for one year.  Apparently FHA is realizing that it’s not good to interfere with investors who are actually helping our economy?
  3. Buyers who’s FICO credit scores are less than 580 (this is a relatively low score) will now be required to put 10% down when purchasing a home using FHA financing. This is a double whammy for those with low scores, typically they have a low score and no cash.  This rule is reinforcing the importance of maintaining a good credit score.
Posted in Real Estate Tips for the Wise | Tagged , , , | 2 Comments

The One That Got Away

By Kristal Kraft Denver Realtor | Published: January 29, 2010

Fisherman have the reputation for telling stories about “the one that got away.”  It’s always the biggest, strongest, oldest most difficult fish in the water. But alas it got away.

Well photographers have the same bragging rights.  Sometimes, like me we even can provide proof, sort of.

This is my fisherman-like tale.

After many days of boring, flat, cold dead winter light I was anxious to find something worthy of shooting.  One morning I rose before dawn, dressed and headed out in hopes of catching the sunrise.

I’d checked the time table and new what time the sun would come up, but I was late. The sun really lights the land long before it rises above the horizon.  I figured that out on my way to the planned destination.  There wouldn’t be enough time to reach it, so I went to plan B.

The sunrise itself is a worthy vision, but it becomes so much more interesting when there’s life included. This morning I almost had that wonderful silhouette of a horse, except the horse didn’t cooperate.

By the time I got set up he was  on his merry way to the other side of the hill where the grass was obviously greener!

He got away.

Posted in Life After Real Estate | 4 Comments

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