Last week in the stock market was a lesson in fear.  This week things don’t seem so bad since the market was up over 900 points on Monday, a one day record unmatched in this century or the last.  Today was pretty non-eventful.  So what does the stock market have to do with real estate?  The stock market drop since the high in October, 2007 has caused the evaporation of trillions of dollars in assets.  Starting in 2006, home equity that homeowners thought would be there for them to borrow against evaporated as well.  Both are long term investments, but we seem to have forgotten that.  The go go market of the past decade in both the stock market and real estate was the only market some people knew.  So people acted as if their homes were bank accounts.  They are finding out very painfully that they weren’t.

 Some lenders and credit card companies took advantage of the “we want it now” mentality that has permeated our culture during this time.  Credit was easy; way too easy to get.  Without financial discipline and boundaries on spending, a lot of people got into trouble.  That’s the other side of the financial equation: greed.  Unfortunately when it comes to money, the two controlling emotions are fear and greed.  What’s the answer?  For some people, the next few years will not be pleasant as they try to dig out from under foreclosure and possibly bankruptcy.  If they are not careful, the mindset that got them there in the first place will put them back there again.  Unbelievably, the credit card companies still will give bankrupt consumers credit cards so “they can create a credit history again”.  Of course, in the meantime, the consumer gets to pay very high interest rates and the credit card companies continue to make a profit.  Everyone else is left holding the bag as the federal government tries to fix all the mistakes made by congress, companies, and consumers alike. 

Although it may not be sexy and showy, being a responsible consumer and working from a spending plan is the fastest way to creating wealth and homeownership that is manageable.  It’s a proven statistic that homeowners create a lot of wealth for themselves (when they do it right) that renters will never see because they are paying their landlord’s mortgage, not their own.  Yes, doing it right is really boring and consumers may have to wait to buy their first home until they have a down payment, stellar FICO scores, and steady income.  They may have to buy a used car instead of a new one.  Their first home may be 20 years old and not as big as they like.  But if people take a measured approach to purchasing the largest asset they will most likely ever have, they will have fun in the process and be comfortable with the outcome instead of living in fear that they may lose that asset.

Have you ever heard the term house poor?  Don’t let your house own you.  Be able to live in your own home and still have money for stuff for the house and for doing the things you enjoy.  If you are unsure how to get there, take a trip to the local library and check out some books on buying homes.  Not the get rich quick flipping houses books, but the realistic books showing you how to take planned steps to homeownership.  Also look for classes in your community that help you understand the process.  The resources are there.  All you have to do is look for them.  And look for professionals to help you.  A reputable realtor and lender are your first line of defense.  Get referrals from people who had a great experience buying.  Buying a house should be a lot of fun and this is an excellent market for the buyer who is prepared to do it right.  Fantastic opportunities are everywhere.  Make sure you have planned well to be able to take advantage of the opportunities before taking that step.

Interested in owning a piece of a tropical paradise in Panama?  The latest webinar gives you the scoop.  If you’d like to see what it’s all about click here.  I watched the webinar and this resort looks like a fabulous place!

Is the bailout going to work?  Right now we are on a slippery slope.  As long as foreclosures keep happening, prices will be affected in the neighborhoods where they occur.  Tightened credit will help keep bad loans from being made in the future, but what about those people in trouble now, or who don’t know they are in trouble yet because they don’t know how rate adjustments will affect them?  There may not be immediate help in the bailout bill signed by congress and the president, but the Help for Homeowners program is now in effect and should help hundreds of thousands of homeowners who owe more than their home is worth.  Once the assets purchased by the federal government are valued we should see improvement in the financial sector, but it’s not going to be a quick fix.  For anyone anticipating trouble keeping up with their mortgage, now is a good time to talk to their lender about options available to them.

Check it out!  We have just created a link to a great new site that you will find to be an awesome resource for your life, your home, and your work.  We’re just getting started so there’s a lot more to come.  New webinars are presented live every month and we’ll post the date, time, and connection information right here so you can join in and ask questions of the presenter.  If your life is too chaotic to sit in live (like mine often is), you’ll be able to view and listen to the archived webinars here whenever it is convenient for you.  Click on the Webinar Library.  You’ll find access information on the page.  Enjoy!

If you are interested in new construction and don’t know where to find what’s available in the Pikes Peak Region, try readynewhomes.com.  This site shows you what’s available now and what’s available in future months.  When you are ready to work with a builder on inventory homes or having them build you a home, send me an email to learn how I can help you get the best deal!

If you want to hear positive news about what’s happening for first time homebuyers, check out this recent information from CHFA, Colorado Housing and Finance Authority.  35% of CHFA buyers are buying foreclosures.  If you want to speak with an excellent lender to know more, send me an email today for contact information you can trust. Colorado CHFA website

Do you know the MLS number of the home you want more info on? Just put www.kathysellscolorado/xxxxxx (xxxxxx is the 6 digit Pikes Peak MLS number) in your browser) and click away to see that home. Check out all the great photos, then contact me to see the home of your dreams. If that one isn’t THE home, I’ll find it for you and help you understand the process in making your purchase in Colorado. Don’t forget to ask how having a Buyer’s Agent puts you in the driver’s seat when negotiating with home sellers and builders. Yes, builders. Protect your interests by being represented in your transaction. Email me to find out more.

There has been a lot of interest in investment properties in recent years. One in three properties purchased nationwide is now purchased as a 2nd home or investment property. Appreciation rates for property in El Paso County has not mirrored the national trend so buyers are still able to purchase properties at reasonable prices. The median price in Colorado Springs did jump from approximately $195,000 in April 2005 to over $212,000 in June 2005, an almost 9% increase for the quarter. There is a lot of new construction so the higher prices in this sector probably had a strong effect on the amount of the increase. We have set records this year for the number of homes sold and the median price.

Because of continued interest in foreclosure and investment properties I am including a link which will provide more information http://www.hud.gov/offices/hsg/sfh/reo/reobuyfaq.cfm. You can also go to www.hud.gov for the official government site to learn more about these properties. These homes are listed in the Pikes Peak MLS so I can get a list of the currently active properties at any time. Send me an email or call.

If you would like to learn everything you need to know about buying your first home, come to the First Time Homebuyers class offered by Partners in Housing in conjunction with the Colorado Housing and Finance Authority. There is a small charge and you must pre-register with Partners in Housing, 473-8890. The class is offered the first Saturday of each month.

The next class is July 9, 2005, at 9am in the downstairs seminar room at Ent Federal Credit Union at 4545 Galley Road in Colorado Springs.  I will be teaching the real estate contracts portion that morning, so I hope you will join the class and prepare yourself before taking this big step.  There are a lot of things to consider if you are going to do it right and have your first home purchase be a stepping stone to financial wealth in your life.  Don’t miss this opportunity to get top quality, comprehensive information from experts in their field.  You will leave with your own workbook and sample documents.  The class ends at 2pm and covers the real estate purchase process and contract, brokerage relationships, the loan process and credit, plus homeowners insurance.  I hope to see you there.

The Pikes Peak Region has a number of school districts and they are all different in size and in what services are offered. The largest district is Colorado Springs District 11. Academy District 20 is on the north side of town, Lewis-Palmer District 38 serves the Monument and Palmer Lake area, Falcon District 49 is on the east side and serves the town of Falcon also, Widefield/Security District 3, Fountain/Ft Carson District 8, Cheyenne Mountain District 12, and Harrison District 2 are all on the southern edges of Colorado Springs. Manitou Springs has District 14 and Woodland Park has it’s own district as well. You can find links to all these districts and more in the Links section of the website.