Tuesday, December 31, 2013

HUD releases new income limits for CDBG, Sec 8, HOME

HUD released new income limits for CDBG, Section 8 & Public Housing, effective 12/18/13. They can be found here:  http://www.huduser.org/portal/datasets/il/il14/index.html 

For those who work with HOME funds, the limits are different, & HUD publishes them on this website:  http://www.hud.gov/offices/cpd/affordablehousing/programs/home/limits/income/

Case-Shiller: Home prices growth in Denver begins to lag national growth

According to Case-Shiller, the home price index in the metro area rose 9.5 percent in October, falling to the lowest year-over-year increase in the index since January 2013, but continuing a 22 mmonth trend in year-over-year growth. The first graph shows the year-over-year increase in the index for each month since 2006:

In October, the Denver metro index rose to 146.78 October, which was down 0.3 percent from the peak reached during September 2013. Much of this month-to-month decline was down due to seasonal factors, and the second graph shows that the index had been hitting several new all-time highs in recent months. The index was 134.03 during October of last year. 

The third graph shows the Denver metro index along side the 20-city composite index. We can see that the 20-city index remains above the metro Denver index, which has been the case since 2002, and we see that the two indices are following a similar trajectory in recent months. 

We see in the last graph, however, that the growth rate in the 20-city composite has outpaced that of metro Denver in recent months. The larger index has been propelled upward by big growth rates in Los Vegas, and big cities in California. The growth rate has leveled off in metro Denver, but continues to grow in the 20-city index. Nonetheless, the growth rates in metro Denver in recent months have been quite larger, and we must go back to 2001 to see similar growth rates here. 


Monday, December 30, 2013

Housing News Digest, December 30

New Senior-Living Facility at East Quincy Avenue and South Atchison Way in AuroraARA recently sold +/- 2.045-acres of land located at the southeast corner of East Quincy Avenue and South Atchison Way in Aurora, Colorado. ARA Colorado principals, Steve O’Dell and Chris Cowan, represented the seller, two local private investors, and the buyer, Anthem Memory Care, as a transactional broker. Anthem Memory Care purchased the parcel for $850,000 or $2.06 per square foot. Chris Cowan explained, “Anthem Memory Care is planning on building a 54-bed seniors community focused on seniors living with Alzheimer’s and dementia.

  Colorado among fastest growing states KUSA - If actions speak louder than words, then a lot of people paid Colorado a compliment by moving here. The state's population grew at about double the national rate over the past few years at a rate of 4.76 percent, according to data released Monday by the US Census Bureau. North Dakota is on top, thanks to an oil drilling boom, and Colorado is hanging in with some of the state's biggest business competitors: Texas and Utah

  Colorado Springs-area foreclosure picture continues to improve The Colorado Springs-area foreclosure rate has fallen by more than half since the beginning of 2011, another sign of improvement in the local housing market and the plight of distressed property owners. The foreclosure rate - the percentage of residential and commercial properties in some stage of foreclosure - declined to 0.71 percent in October, according to a report Monday by CoreLogic, a California-based housing data firm.

  Mile-High disruption: Why Denver should be on your tech radar next year Silicon Valley has long been the perfect oasis for that particular demographic (think: a young, barefoot Steve Jobs dreaming up Apple’s future while on LSD) to create and innovate technology that changes our lives. But as many in the Valley already know, it’s no longer Steve Jobs’ Silicon Valley—and there’s room for disruption in places like Denver, where a renewed commitment to innovation is transforming the city. With a vibrant and rapidly-growing tech ecosystem, there are a number of reasons why Denver should be on your radar for 2014:

  LPS: Home price increases slowed in October In addition, after months of setting new highs, Texas — and the major metropolitan areas of Austin and Dallas — saw a slight pullback in October. Eight of the 20 largest states recorded slight month-over-month drops in prices, including California, Texas and Colorado.

Friday, December 27, 2013

Housing News Digest, December 27

Many high-profile projects in Colorado have gotten help from tax increment financing
DENVER — City for Champions — four dreams of Colorado Springs civic leaders — could become reality through heavy use of development incentives known as tax increment financing. The $250 million plan to build an Olympic museum, an indoor arena, a sports medicine clinic and an Air Force Academy visitor's center would get off-the-ground with $145.5 million in bonds or loans that would be paid back with interest using a variety of tax increment financing sources.

  Weld County donates building at 330 Park Ave. in Fort Lupton for family resource center FORT LUPTON — After making renovations to the building, Weld County has donated a building it owned at 330 Park Ave. to provide a new family resource center offering a variety of services to the community. The Family Resource Center building, 330 Park Ave. in Fort Lupton, was donated by Weld County earlier this month. Fort Lupton Police Chief Kenneth Poncelow made the announcement during the Fort Lupton Chamber of Commerce luncheon Dec. 11, and he said the family resource center would be located in a historic location in the city.

  Trailer residents get outside help An effort by some residents of the Pan and Fork Mobile Home Park to convince the Basalt town government to provide replacement housing is picking up steam among community residents. The internal dissent over the eviction of mobile-home-park residents has existed for months. Now people from outside the mobile-home park are speaking up. As of 4 p.m. Tuesday, 110 people had signed an online petition circulated by the Colorado Immigrants Right Coalition to “keep Pan and Fork residents in the community.”

  El Paso County residents receive $1.6 million in FEMA flood aid More than 750 residents of El Paso County - including the homeless - received from roughly $1.66 million in FEMA aid money after September's flooding, according to the Federal Emergency Management Agency. The funds - called Individual Assistance grants - do not have to be repaid and were to help with rental assistance, emergency home repairs and replacement of personal property.

NorthStar Realty Finance Reports Initial Closing Of $400 Mln Housing Portfolio NorthStar Realty Finance Corp. ( NRF ) announced the closing of $345 million of an about $400 million manufactured housing portfolio comprised of 16 communities containing approximately 5,900 pad rental sites located primarily in Denver, Colorado and Austin and Dallas, Texas.

  What will Santa do? Fewer homes have chimneys While fireplaces are a common feature in modern-day homes — even in warm climates — actual chimneys are becoming somewhat of a home-building relic.To get a sense of that trend, Trulia, a real-estate website, looked at homes listed on its website between January 2011 and June 2013. For homes built in the 2010s, fewer than 0.5 of every 1,000 home listings mentioned a chimney, according to the analysis. Meanwhile, about two out of every 100 listings for homes built at that time mentioned a fireplace. Chimneys are most common in homes built before 1900, while fireplaces experienced a bump in popularity in the 1980s, 1990s and 2000s.

Thursday, December 26, 2013

Housing News Digest, December 26

10 healthiest housing markets in America
5. Denver, Colorado
Market Health Index: 8.1
Share of Homes Sold for Gain: 86%
Mortgages in Negative Equity: 11.9%
Days on Market: 62

U.S. Home Prices Increased 0.5% in October From September U.S. house prices rose 0.5 percent in October from September as buyers competed for a tight supply of properties for sale, the Federal Housing Finance Agency said. The seasonally adjusted gain matched the average estimate of 11 economists, data compiled by Bloomberg show. Prices climbed 8.2 percent from a year earlier, the FHFA said today in a report from Washington.

  Value of homes in the Denver metro area grows to $265 billion in 2013 Homes in metro Denver gained $21.9 billion in total value in 2013, up from a gain of $18.6 billion in 2012, Zillow said in a report Thursday. Overall, the cumulative value of all homes in metro Denver is $265 billion, said the report. Nationwide, homes are expected to gain almost $1.9 trillion in cumulative value in 2013, the second consecutive annual gain and the largest since 2005, according to an analysis by Zillow Real Estate Market Reports.

  State agency set to launch rental housing website In the coming weeks, Jared says the IFA will be reaching out to landlords to post available properties on the website. Statewide, she estimates over 13,000 units have already been listed. Thirty-four other states have similar websites, including Colorado, which has used their site to help flood victims find affordable housing quickly.


A Brief History Of Boulder, Colorado And Its Current Economic Success Boulder, Colorado has taken a unique path to its long history of economic success -- and has been so successful because of that path, inc.com reported. Since the late 1800's, when residents urged state legislators to establish Colorado's first state university, the city has been driven, prescient, and conscientious of its natural surroundings. Boulder's 10,000 inhabitants backed architect Frederick Law Olmsted, Jr. in 1908 to plan the growing city -- a "precocious move" according to inc writer Burt Helm for a still tiny city. Olmsted's views were in line with a city already protective of its natural beauty. He planned for underground power lines and cautioned against dirty suburban industries and tourist-driven entitie

Monday, December 23, 2013

Trulia: Asking rents down again in Colorado Springs and up in metro Denver

November 2013 showed a decrease in asking rents for rental housing in Colorado Springs, dropping by 0.2 percent, year over year. October 2013 showed a similar YOY decline in asking rents. in metro Denver, asking prices rose 5.6 percent, year over year (from November 2012 to November 2013.)

Measuring the year over year change in asking prices for for-sale homes, Trulia reports that asking prices increased 9.4 percent in metro Denver and 5.0 percent in Colorado Springs. In this case, we find that the YOY increase in the metro Denver asking price has moderated from earlier in 2013 when some YOY increases topped 12 percent.

Compared to national growth in asking rents and asking prices, we find that when compared year over year, metro Denver exceeds the national rate in asking rents, and lags in asking prices. Colorado Springs lags in both areas, when compared top the national growth rate.

Friday, December 20, 2013

Housing News Digest, December 20

Tight market puts squeeze on budgets for Larimer County renters As a newly divorced mother of two, Hayley Carson visited apartment after apartment while trying to find a home for herself and her kids. Few two- or three-bedroom apartments in Fort Collins rented for less than $1,000 per month, and most landlords wanted potential renters to earn three times that to qualify. Rentals, Carson found, were slightly out of reach. Her $35,000 salary as a first-year teacher was just beyond the income limits to qualify for public housing assistance but less than what most other apartment complexes wanted tenants to earn.

  Global development hub finds home in historic Curtis Park horse barn In the late 1800’s Denver public transit moved by horsepower. A team would pull a streetcar along level ground and up hills, then drivers loaded the horses into the cars themselves for the descent. In 1877, the Denver City Railway’s horse cars ferried more than 300,000 people between historic downtown Denver and one of city’s earliest “suburbs,” Curtis Park. “Curtis Park really wouldn’t exist as it does today without those early streetcars coming up this way,” said Joel Noble of the Curtis Park Neighbors Association.

  Colorado Springs' commercial real estate market needs more jobs to continue its recovery Colorado Springs' commercial real estate market should continue to rebound in 2014, but the area needs more jobs to maintain its momentum, according to a forecast by brokerage Sierra Commercial Real Estate. As the year ends, several indicators are pointing toward an improving commercial market, including lower vacancy rates, Sierra officials said Tuesday.

  Inflation rises in Colorado, West, despite dip in energy, apparel costs The rate of inflation in Colorado and other western states was 1.3 percent in November from a year earlier, ending a string of monthly decreases in the annual rate, but consumer prices last month declined 0.4 percent from October levels, the U.S. Department of Labor reported Tuesday. Consumer prices in the West rose in 0.9 percent in October from a year earlier, following year-over-year price gains of 1.3 percent in September, 1.5 percent in August and 1.9 percent in July, according to monthly Consumer Price Index (CPI) data from the Labor Department’s Bureau of Labor Statistics.

  10 Hot US Housing Markets To Watch In 2014 The Denver housing market is significantly healthier than it was at this time a year ago. 5,337 homes were under contract this September, compared to 4,457 in September 2012, and average selling prices are up 8% from a year ago. "We are seeing homes sell for prices that exceed any time in our history," Steve Blank of Fuller Sotheby’s International Realty said to Colorado's Inside Real Estate News. "Denver is leading the way."

Thursday, December 19, 2013

Remodeling activity in West up 8 percent

The Buildfax Remodeling Index for October:

Residential remodels authorized by building permits in the United States in October were at a seasonally-adjusted annual rate of 3,266,000. This is 2% up from the revised September rate of 3,171,000 and is 1 percent above the October 2012 estimate of 3,183,000.
Regional Residential Remodeling 
Seasonally-adjusted annual rates of remodeling across the country in October 2013 are estimated as follows: Northeast, 727,000 (down 16% from September and down 16% from October 2012); South, 1,280,000 (up 7% from September and down 10% from October 2012); Midwest, 718,000 (down 8% from September and up 15% from October 2012); West, 817,000 (up 6% from September and up 8% from October 2012).

Wednesday, December 18, 2013

October bankruptcies in Colorado fall 24 percent in 2013

According to the US Courts, bankruptcy filings in October in Colorado were down 24 percent in October 2013, dropping to 1,463 from October 2012's total of 2,277. October's total was the smallest total reported in October since 2007. The first graph compares monthly totals for each month since 2006:


The Year over year change for bankruptcies has been negative each month for the past 33 months, as shown in the second graph. The trend has been downward since 2011. 


Home Sales Slip, Prices Remain Strong

Denver Home Inventory at a very-low 2.2 months: 

RE/MAX National Housing Report on 52 Metro Areas

DENVER, Dec. 18, 2013 /PRNewswire/ -- After 28 months of year-over-year increases in home sales, November saw a 7.8% drop. The housing market appears to be making expected seasonal adjustments, as the recovery is simultaneously impacted by a combination of factors - rising interest rates, the government shutdown, mortgage qualification difficulties, severe weather and seasonality. Mostly due to a still tight supply of homes for sale, the November median home price of $187,000 rose 13.7% over the price in November 2012. With the current rate of home sales, the number of months necessary to sell the entire inventory, or the Months Supply, inched higher to 5.4 months, very close to the 6.0 supply that defines a market balanced equally between buyers and sellers. The national inventory situation continues to move in the right direction. The current 12.9% drop in inventory from November 2012 is less than half the annual inventory loss seen in April of this year.


Tuesday, December 17, 2013

November 2013 Foreclosure Totals for Metro Counties

The November foreclosure report for all metropolitan counties is now available:

Thursday, December 12, 2013

Corelogic: Colorado home price index up 9.1 percent

CoreLogic released its October home price index (HPI) numbers this week. The year-over-year change in October was 9.1 percent in Colorado.  October marks the twenty-second month in a row of year-over-year gains in the home price index for Colorado. Nationally, the index grew 12.5 percent from October 2012 to October 2013. Housing prices continue to increase at some of the largest rates seen since before the financial crisis. (These numbers are for all single-family homes, including distressed properties.) Although year-over-year changes have been consistently positive this year, the rate of increase has fallen below what was seen early this year.



15 states had larger growth rates in the HPI than Colorado, with the highest growth rates being in Nevada, and California. Nevada's HPI grew 25.9 percent year over year, and California's HPI grew 22.4 percent. No state showed a decline in the HPI for the period. 

Wednesday, December 11, 2013

Housing News Digest, December 11

Colorado gets $62.8M from Housing and Urban Development (HUD) for flood recovery LYONS, Colo. - The government says another $62.8 million is coming to Colorado to help the victims of the September flooding. U.S. Housing and Urban Development (HUD) Secretary Shaun Donovan made the announcement on Thursday saying the money will "help communities recover from severe storms in September that produced devastating floods and mudslides." The news release said the money would come from HUD’s Community Development Block Grant Program and would go to areas with the greatest extent of "unmet need," primarily in Boulder, Weld and Larimer counties. However, there are still questions about who will get the money and how it will be spent.

  New nonprofit wants to transform condemned houses There are dozens of them scattered throughout the city, and many more that barely miss the classification. And while the aesthetics of condemned houses may be what first cause notice, Tom Wasinger, supervisor of the city's Code Enforcement Unit, says they can actually be a safety hazard as well, often attracting vagrants and criminals. Code Enforcement is responsible for encouraging owners to clean up hazardous homes, and can even take possession in extreme cases, but lacks the resources to do that very often.

  Colorado Springs-area homebuilding slows in November for fourth straight month The pace of homebuilding slowed again last month in the Colorado Springs area, although some builders say they're not worried that they're headed for another construction downturn. A Pikes Peak Regional Building Department report released Monday showed that single-family building permits totaled 148 in November, down nearly 19 percent from the same month last year. It's the fourth consecutive month that single-family permit totals have fallen on a year-over-year basis.

  Nearly $63 million allotted for Colorado flood recovery LYONS - Despite icy temperatures on Thursday, Colorado Governor John Hickenlooper along with Senators Mark Udall and Michael Bennet visited areas hit hard by the September floods. They started in Lyons, where HUD Secretary Shaun Donovan announced nearly $63 million in block grants would go toward homeowners to help with flood relief.

  Colorado Springs apartment complex bought for record $54 million A California real estate company has paid $54 million to purchase the Alexan at Briargate apartment complex in northeast Colorado Springs, another sign of the red-hot local multi-family market. Passco Companies LLC of Irvine, Calif., a privately held firm that specializes in the investment, acquisition, development and management of commercial properties nationwide, completed the purchase last week of the 332-unit complex east of Powers and Union boulevards.

Wednesday, December 4, 2013

Analysis: Single-family and condo rental vacancies remain rare

Vacancies in single-family, townhome, and condo rentals were up in the 3rd quarter of 2013, rising to 2.9 percent from the second quarter's rate of 2.2 percent. The vacancy rate during the third quarter of 2012 was 2.3 percent. However, movements in the vacancy rate below 3 percent don't tell us a whole lot. Any vacancy rate below 3 percent points to a pretty tight market, whether it's 2.2 percent or 2.9 percent. We can see in the first graph that the general trend in all types of properties are generally down from where they were in 2010.

Not surprisingly, the ongoing lack of vacancies in this unit has led to a general increase in the average rent since 2011. In the second graph, we see that the general upward trend in average rents extends to houses, townhomes, and condos. Single-family houses report the highest average rent, and condos report the lowest average rent. 

Specifically, the average rents were:
Single-family houses: $1,378
Townhouses: $1,217
Condos: $822

All three types of properties reported higher average rents, year over year. 

In the third graph, we see the year-over-year change for the various property types for each quarter. For the past four quarters, all property types have reported gains year over year, and this points to general strength in the demand for these properties that has been sustained over time. Even condos, which have tended to experience the weakest demand, have turned positive. We can also note that in many cases, the year over year growth rate in rents has been above five percent, which suggests that rents have been rising at a rate exceeding the official inflation rate.


The effect of price inflation should of course not be ignored. The final graph shows the average rent in single-family houses, condos, and townhouses in the metro Denver area. We see that the average rent has not yet returned to where it was in real terms in 2001 and 2002. Real losses occurred during 2004 through 2006. Recent growth has exceeded the inflation rate, however, and we find real increases in the average rent over the past 18 months or so. The inflation adjusted average rent during the third quarter of 2013 was $877, which puts it back at about 2004 rates.





Monday, December 2, 2013

Economic Heat Map from Business Insider

Much of Colorado is above the national average:

Click here for more.

Vacancies in single-family and condo rentals at 2.9 percent

The Division of Housing has released the 3rd Q 2013 vacancy and rent survey for single-family houses, condos, townhomes, and similar properties.

Vacancy rates remain low in all types of properties measured, with the overall metro Denver vacancy rate for these properties at 2.9 percent.

The average rent for these properties was $1140.56 during the third quarter.

As expected, the vacancy rate in these properties was lower than the metro Denver multifamily vacancy rate of 4.4 percent for the 3rd quarter.

Sunday, December 1, 2013

Colorado Statewide Vacancy and Rent Survey - 3rd Q 2013

Colorado Statewide Vacancy and Rent Survey - 3rd Q 2013