Attention Homebuyers!

18. March 2010 by Christi Reece.

Attention Homebuyers: Double-Barrel Stimulus Deadlines
Threaten Rates and Affordability; The Time to Act is NOW!

The great author and speaker Og Mandino once said, “I will act now. I will act now. I will act now.”

This is great advice for prospective homebuyers over the next 45 days, as two key government programs that have kept home ownership more affordable than ever wind down to their completion.

First, the Federal Reserve’s Mortgage Backed Securities (MBS) purchase program will come to an end on March 31, just two weeks away! Without this program home loan rates could have been at least 1.00% higher…and potentially even higher…over the last year. Throughout 2009, the Federal Reserve was the primary buyer for MBS, purchasing as much as 80% of the supply in a given month. When this program ends, a lack of willing buyers will likely cause MBS prices to drop and rates to rise as a result.

The second shot will come on April 30th, which is the deadline for purchasers to get under contract to qualify for the Home Buyer Tax Credit program, which has been providing a tax credit of up to $8,000 to first time homebuyers and up to $6,500 to repeat purchasers.

Just How Much Will Waiting Cost?
While no one knows for certain what the future holds, two things appear clear. Home loan rates will likely be higher in the future, and free money from the government will be gone. These deadlines will affect both affordability to purchase and the opportunity to refi.

In a recent Wall Street Journal article, it was estimated that 37% of all borrowers with a 30-year fixed rate have interest rates of 6% or higher. The article also quotes Credit Suisse that more than half could lower their rate by nearly 0.75%.

For prospective homebuyers, any increase in interest rates erodes your purchasing power. In other words, a 1% increase in rate represents an approximate decline in purchasing power by 10%. For example, if rates increase by 1%, people who qualify for a $200,000 purchase price today may only qualify for a purchase price of $180,000 afterwards.

If you or anyone you know is looking to purchase or refinance a home, waiting could be costly! Act now…so you can save later!

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Department of Defense Green Project

4. March 2010 by Christi Reece.

Although the U.S. Department of Defense arguably has been one of the world’s largest green developers of new properties, energy use in its base communities has lagged, in some cases using up to 35 percent more energy than comparable residential buildings.  But a new pilot project could change that. It’s called “InergY: The Change is in You” and is being undertaken at Travis Air Force Base near Vacaville in Northern California in conjunction with Balfour Beatty Energy Solutions and Balfour Beatty Communities. If InergY is successful, these communities could end up reducing energy consumption by 50 percent, bringing them in line with the Obama Administration’s goal of reducing the U.S. government’s energy percent carbon footprint by 20 percent.

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Existing Home Sales

4. March 2010 by Christi Reece.

RISMEDIA, March 4, 2010—Existing-home sales fell in January 2010 but are above year-ago levels, according to the National Association of Realtors. Existing-home sales- including single-family, townhomes, condominiums and co-ops- dropped 7.2% to a seasonally adjusted annual rate of 5.05 million units in January from a revised 5.44 million in December, but remain 11.5% above the 4.53 million-unit level in January 2009.

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Tax Credit Police

24. February 2010 by Christi Reece.

The IRS has a new way to police the recapture of the home buyer credit:  It will check public databases of real estate sales.  If a person buys a home between January l, 2009 and April 30, 2010 and sells within 3 years, the tax credit is recaptured.  The $7500 credit for purchases between April 9 and December 31, 2008 is recouped over 15 years, but the remaining balance is due if the home is sold early. - Linda Gilmore

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State of the market from Wells Fargo

23. February 2010 by Christi Reece.

Jeff White, Western Colorado manager of Wells Fargo Home Mortgage, spoke to our company last week. He said the Grand Junction offices had their biggest year ever in 2009. However, the percentage of purchase loans was one of the lowest ever, so the refinancing was the bulk of the business. They are budgeting for a 25% increase in purchase loans for Western Colorado for 2010. And they are predicting that when the government stops artificially keeping interest rates low, that they will start to climb significantly, to as much as 6 3/8 by year’s end. - Christi Reece

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Still overpriced?

18. February 2010 by Christi Reece.

According to the third quarter Housing Market Analysis conducted by National City Corp. on the most overvalued housing markets in the US, Grand Junction, Colorado comes in 61st place.  According to this study, the typical home in this market is overvalued by 31%.  This study indicated that sixty-five of the nation’s 299 largest real estate markets are severely overpriced and subject to possible price corrections. - Kelley

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Energy Saving Tips for your home

13. February 2010 by Christi Reece.

We’re all looking to save some money, but let’s save some energy too.

Around the Home – Energy Saving Tips

Print Article Print Article

RISMEDIA, February 13, 2010—The Alliance to Save Energy offers the following no-cost/low-cost energy efficiency tips for homeowners across the country who are looking to reduce their home heating costs while maintaining comfort.

Conduct a “draft check.” Your heating dollars could be going out your windows, doors and electrical outlets. Check for air leaks throughout your home; check around doors, windows, fixtures, electrical outlets, wiring, plumbing and fireplace dampers. Draft-proofing is the least expensive energy efficiency investment with the biggest payoff.

Plug those air leaks. Seal leaks between doors or windows and their frames with weather stripping and between window frames and walls with sealant or caulk.

Install door sweeps on the insides of exterior doors. Cold air can seep in under doors. Solution: Door sweeps are cheap and keep the draft out. No sweeps available? Even a rolled up towel or blanket will help. And consider twin or dual draft guards on both sides of doors where you feel drafts.

Open curtains and other window treatments on your west- and south-facing windows during the day to allow sunlight to naturally heat your home, and close them at night to make it harder for warm air to escape. If you are purchasing new drapes, consider an insulated lining, which reduces both heating and cooling bills.

Freezing by your windows? If that’s the case, and you’ve already plugged window leaks and can’t afford new high-efficiency windows, consider purchasing a kit containing sheets of plastic film to tape over the insides of your windows. Use a hair dryer to create a tight fit.

Consider insulating drafty electrical outlets. Use light switch foam insulation pads and wall jack foam insulation pads on outlets on colder exterior walls.

You’re not in the South Seas. Don’t turn up the heat so high that you can be comfortable dressed in a T-shirt and going barefoot. Even when indoors, dress for winter weather and layer clothing so that you can keep the thermostat at a reasonable yet comfortable temperature. It’s a good time to wear those sweaters you received as holiday gifts.

Consider a space heater for the room where you spend a lot of time. But keep in mind that this makes sense from an energy standpoint only if you reduce heating in other rooms.

Keep furnace filters clean. Check and change your filter every month during heavy-use winter months to assist air flow, so your system doesn’t have to work harder to keep you warm.

Seal your heating and cooling ducts. In a typical house with a forced air system, about 20% of the air that moves through the duct system is lost due to leaks, holes and poorly connected ducts. Sealing and insulating ducts increases their efficiency, lowers home energy bills and can often pay for itself in energy savings. Insulate ducts in unheated areas such as attics, crawlspaces and garages with duct insulation that carries an R-value of 6 or higher. Also, a well-designed and sealed duct system may make it possible to downsize to a smaller, less costly heating and cooling system that will provide better dehumidification.

Let a programmable thermostat “remember for you” to lower the heat while your home is empty and/or overnight to reduce heating costs by up to 10%- and allow you to come home and wake up to a toasty, comfortable house.

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Weekly Update from Linda, Kelley, and Christi

8. February 2010 by Christi Reece.

The unexpected lapse of the estate tax for 2010 is causing problems. Will lawmakers reinstate it retroactively to January 1st? Wills drafted with formula clauses for heirs may need to be rewritten. - Linda Gilmore. Can river rafters and fisherman share the waters? The debate is once again being discussed in Colorado, and there is a hearing at the state capitol. Support your right to raft Colorado’s rivers by joining the Facebook group: Support Commercial Rafters Viability Act.Grand Junction was recently named  #1 - in job losses that is, for 2009. While that news may sound dire, in actuality we are just catching up with the rest of the country. In 2008 we were still hiring, while the rest of the country was already suffering.  So of course when our own community entered the recession for real, we were one of the few communities in the country who hadn’t already had huge job losses. Hopefully we will not lag behind the rest of the country again, as we emerge from the recession this year. - Christi Reece

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Good News for Grand Junction

28. January 2010 by Christi Reece.

I  just returned from the quarterly Grand Junction Area Realtor’s Association luncheon, where the speakers were all very positive about the future of the Grand Junction real estate market. Rob Griffin, President of the local Home Builders Association, spoke about low building costs, low land costs, and availability of builder and subcontractors, making this an ideal time to build a new home. He stressed that builders are going to have to change the way they have built in Grand Junction, stressing, as I have been, the need to build energy efficient homes!! He believes that energy efficiency will be mandated by the government before too long, so it’s time for GJ builders to get on board! If anyone out there is considering building, call me. I have worked with some great builders who know how to build a superior home.The second speaker was Ann Driggers of the Grand Junction Economic Partnership. She had some great information and statistics, in addition to a positive outlook for GJ. So even though 2009 was not what we hoped, GJ is now a much more attractive place to start a business, since there are more workers available, wages are down, and land costs are down. She is very optimistic about bringing new businesses to this area. American Furniture Warehouse is one example of an established business seeing the opportunities to be had in our valley. Cabela’s is also coming in soon.Colorado Realtor Association President George Harvey also spoke, and said we are seeing  a lot of investing going on in Colorado. Low prices and high availability are driving outside buyers to take another look at Colorado.I’ve said it before, but I want to keep emphasizing to all our clients that 2010 is going to be a great time to buy real estate. Ten years from now, you’ll be saying “I wish I’d bought that property back in 2010, when it only cost…”. Don’t say I didn’t tell you!Christi

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New Team!

9. January 2010 by Christi Reece.

I am excited to announce that I have just become a member of a real estate team here at Bray Real Estate. I have joined Linda Gilmore and Kelley Burford, and we will now be known as the Gilmore-Burford-Reece Team. Linda and Kelley are both Grand Junction natives, and have become household names in Grand Junction Real Estate. Linda has been selling for over 20 years, and Kelley for over 7, after a lengthy career in banking. With our combined experience, market knowledge, and sales records, we will ready to help you buy or sell your Western Colorado Real Estate!

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