The Daily Dirt - Real Estate News Update from Michael Clarkson

Issue 08-03.05 March 2008 Federal Reserve Study Sheds Light on Denver Foreclosures   See Denver Business Journal Article Here Dear Mile,     Federal Reserve study sheds light on Denver foreclosures Denver Business Journal - by Renee McGaw Denver Business Journal   For more information, please click to www.MileHighMLS.com   Denver's foreclosure situation isn't as bleak as it's often portrayed, according to a new study made available Tuesday by the Federal Reserve Bank of Kansas City. Forty-six percent of the adjustable-rate mortgage loans in the Denver metro area hadn't reset as of December 2007, according to the report. But a decline in short-term interest rates in January and February should help those borrowers avoid painful rate readjustments. "The biggest news really ought to be that the resets that everybody is watching this year may have less effect now, because of the overall decline in the interest rate environment," said Mark Schweitzer, branch executive of the Denver branch of the Kansas City Fed and one of the authors of the report. "The London Interbank Offered Rate [LIBOR] has declined to below 3 percent, and that means a reset is going to be in the vicinity of 8.8 percent." That is an improvement over much of 2007, when LIBOR -- a key international interest rate that serves as a benchmark for many adjustable-rate mortgages -- was near 5.4 percent, which made resets over 11 percent likely in Denver and Aurora. "The news last year was focusing on double-digit interest rates, and that was certainly possible last year," Schweitzer said. Other findings in the report: Denver-area subprime loan originations peaked earlier than the nation, in 2005, and very few subprime loans were originated in 2007. As of December 2007, more than 65 percent of the pool of outstanding subprime loans in Denver and Aurora were originated in 2005 or 2006. More than 60 percent of Denver-area subprime loans are current, although Denver leads the nation in foreclosed houses already owned by lenders. Of the houses still in borrowers' hands, Denver-Aurora delinquencies are similar to or below the national average, suggesting that future foreclosure rates will be more similar to the national average. Denver-area subprime loans had lower down payments, but Denver borrowers had a higher average Fair Isaac & Co. (FICO) credit score, at 629, than the average U.S. FICO score of 617. Denver-area subprime loans are more likely to have adjustable rates than the nation as a whole. More than 78 percent of Denver-area subprime loans have adjustable rates, compared with 65 percent of national subprime borrowers. But Denver-area borrowers didn't receive a very low "teaser" rate -- the average initial rates for Denver-area loans was 7.3 percent, compared with 8 percent nationwide. "Denver generally had a little lower-than-average interest rate," Schweitzer said. "The initial rates on a subprime adjustable-rate loan tended to be just barely lower than the initial rates on a subprime fixed loan." As always, whenever YOU are ready, I am here Bringing The World Home To You™   And, if you know of someone that is looking to buy or sell, I am NEVER too busy for any of your referrals.   Kind regards and happy "Home Hunting",    Michael Clarkson RE/MAX Alliance 303.403.2641 MJ@MileHighHomeHunter.com   On the web: www.MileHighHomeHunter.com www.MileHighForeclosure.com www.MileHighMLS.com   Payment Calculators Apply for a Loan - Contact Betsy Burns   Apply for a Loan - Contact Brian Crowder Do YOU Need a Reliable Referral? Visit people I trust:  www.MileHighReferrals.com Just Listed Check Out The Featured Listings Market Statistics Homes With Incentives Join My Client Appreciation Program Quick Links Search the MLS Foreclosure Homes My Blog Latest Video News Email me Michael Clarkson Realtor® GRI RE/MAX Alliance 9737 Wadsworth Parkway 303.403.2641 www.MileHighHomeHunter.com MJ@MileHighHomeHunter.com

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The Daily Dirt - March 2008 - Real Estate News Update from Michael Clarkson

Issue 08-03.03 March 2008 Denver Market Conditions March 2008 Dear Mile, I apologize for sending such a high volume of emails this past few weeks, but SO MUCH is happening in our local market. I know you are busy with your lives, so in my effort to provide you the best information, I wanted to forward my lastest market condition report to you. Denver Market Conditions as of March 2, 2008   For more information, please click to www.MileHighMLS.com      Well, it looks like warm weather (warmer than last year), lowered interest rates and increased showing activity brought people into the market, by the MEGATON!!!   Here are some of the highlights: The overall market swung wildly from 5.7 months of inventory to 7.0 months of inventory. WOW! HOWEVER, ALL markets surveyed below showed a Seller's Trend (which is based on the change in the current month vs. the 12 trailing months' historical average).  Overall, the Under Contract volume was up 62% compared to the 12 months' trailing monthly average. Total Active Listings - UP 31.6% February - 16,997 March - 22,382   The overall market composite shifted in the following manner:    Sellers' Neutral Buyers' Total Feb-08 12 6 1 19 Mar-08 8 4 7 19 Chg (4) (2) 6 0     There were too many notable swings to be meaningful in such a short summary.  However, here is a sample of the largest listing inventory changes: Castle Rock - From 760 active listings in February to 1,070 in March Denver - From 3,796 active listings in February to 5,062 in March Golden - From 383 active listings in February to 608 in March Greenwood Village - From 53 active listings in February to 162 in March Highlands Ranch - From 334 active listings in February to 464 in March Lakewood - From 508 active listings in February to 646 in March Littleton - From 746 active listings in February to 1,011 in March Parker - From 630 active listings in February to 877 in March Westminster - From 557 active listings in February to 705 in March Those are some HUGE changes!   For more information about your specific area, please contact me here.     Market Trend Analysis - Denver Metro Selected Towns/Cities   Based on information from Metrolist, Inc. for period February 2, 2008 until March 2, 2008. Single Family Residences - All Price Levels Excludes Housing Not Listed in MetroList   Note: Six (5.5 to 6.5) Months of Inventory Tends to Indicate Neutral Market, Over 6.5 Months a Buyer's Market, Under 5.5 Months a Seller's Market                             6       Locale Active Listings 12 Months Sold  Sold per Month (Avg)  Months  Inventory (MOI) Current Mkt State Under Contract Sales Trend Sales Trend Chg.% Arvada                  615              1,428               119.0                  5.2  Seller's Market                  172  Seller's Trend 45% Aurora              2,514             4,709             392.4                  6.4  Neutral Market                 732  Seller's Trend 87% Boulder                  103                 290                24.2                  4.3  Seller's Market                   38  Seller's Trend 57% Broomfield                 350                 802                66.8                  5.2  Seller's Market                   89  Seller's Trend 33% Castle Rock              1,070              1,399               116.6                  9.2  Buyer's Market                  157  Seller's Trend 35% Denver             5,062              8,813             734.4                  6.9  Buyer's Market              1,343  Seller's Trend 83% Erie                 209                 307                25.6                  8.2  Buyer's Market                   47  Seller's Trend 84% Golden                 608                 704                58.7                 10.4  Buyer's Market                   78  Seller's Trend 33% Greenwood Village                  162                  160                 13.3                 12.2  Buyer's Market                    14  Seller's Trend 5% Highlands Ranch                 464                 969                80.8                  5.7  Neutral Market                  133  Seller's Trend 65% Lafayette                   77                  197                 16.4                  4.7  Seller's Market                   24  Seller's Trend 46% Lakewood                 646               1,414               117.8                  5.5  Seller's Market                  149  Seller's Trend 26% Littleton