Here’s another good video if you want to learn more about where we’re going in the real estate market.  Okay, so it’s a competitor speaking, but this is an equal opportunity blog.

http://cosmos.bcst.yahoo.com/up/player/popup/?rn=289004&cl=10728866&src=finance&ch=1316259

Perhaps you haven’t seen the articles by Smart Money and Forbes that put Colorado Springs in the top 10 cities to rebound the quickest from the national real estate malaise.  Yes, it is true that during 2008 a lot more homes are going unsold than are sold and for those that are selling it is taking longer than even a year ago, but many would-be sellers ARE finding renters when their homes don’t sell.  2008 hasn’t been a great time to put your home on the market if you DON’T have to sell, but it looks like we may be turning the corner in Colorado.

I’ve attached 2 links to KOAA so that you can get the latest local news.  For those buyers who are sitting on the sidelines or who are putting in offers way too low for sellers to accept, your window of opportunity may be closing.  As we all know, increased demand causes prices to go up.  Inventory is being reduced now, so when the local market turns around, it will probably do so in a way that makes sellers and homeowners very happy as their equity increases because of demand.  Everyone gets their turn for a good deal as markets change.

Click on the link below for the video.  The second link takes you to the KOAA website.

 http://static.koaa.zope.net/includes/video/480×400_zope.swf?id=x1949200974 

 http://www.koaa.com/news/

I subscribe to a number of real estate related websites and came across a good article on RISMedia today.  Are you sitting back waiting for the economy to improve so that you can pounce on a house once you feel the waters are safe?  Are you prepared to do this?  Have you talked with a lender to make sure you can act when you find the right house?

Read this article and learn what is new that you may not be aware of.  Could any of this affect you?  Be prepared and all your dreams CAN come true!

Another wild week, with volatility in the stock market and not much news about the real estate market because it’s a lot more boring right now.  The upcoming election is front and center and comments from the peanut gallery I frequent are that we are ready to be done with political commercials!

Interest rates popped up this past week, so for some their immediate home buying opportunity is gone.  But by watching the markets we know nothing stays the same for very long.  If you have a lender relationship, stay in close touch so they can let you know when rates are where you need them to be in order to buy or refinance.  You can’t lock a rate until you have a home you want to purchase, so when you find that house with the help of an expert in your area, make sure you get a pre-approval letter from your lender so you can act quickly and possibly get help from the seller to buy your rate down if necessary.  When you work with professionals, they can advise you on the best path for your situation.  If you don’t know who is professional in the real estate and lending industries in your area, get a recommendation from someone you trust.  You never know what is possible until you take action.

The private banking system has done it’s job since the Great Depression, but the international potential for bank dominoes to keep falling prompted the federal government to take an ownership stake in 9 large banks as part of the bailout.  That means you and I will own a stake in these banks as citizens of the USA.  The banks involved initially are Bank of America, Merrill Lynch, Bank of New York Mellon, Citigroup, Goldman Sachs, J.P. Morgan Chase, Morgan Stanley, State Street and Wells Fargo.  These banks have agreed to limit top executive compensation and golden parachutes as part of their participation.  The federal government will also guarantee loans between banks to help create more liquidity.  This is turn should free up money to allow businesses to continue to borrow, help home purchasers secure loans, and inject credit where needed in our economy.  This action won’t create a quick fix, but should help keep the financial sector stable as we plow our way through a recession in coming months and hopefully help keep it from becoming a deep recession. 

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.

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.

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

Wow!  It’s been a busy year and cohomesgateway.com has languished this year.  The links are still a great resource, but we haven’t been active posting.  Well, that’s changing.  The goal of this blog is to be a resource to real estate consumers, investors, people educating themselves, anyone who wants to know more about how real estate and investing works.  We’ve had a wild ride the past couple years.  Emotions are all over the board.  Sellers are busy counting what they “could have made” selling 2 years ago.  The problem is they weren’t sellers 2 years ago.  We have to work with the market we have.  Buyers are excited to find prices within range.  In many markets sellers aren’t giving away their homes but they are more realistic about what they can get for their homes or they are staying put if they don’t have to sell.  That helps everyone because it removes the glut and real sellers have a better chance to sell.  Buyers have to realize most sellers aren’t going to let someone “steal” their home, but they will negotiate to make a deal that works for both.  Greed and fear are in full force, but we will get through this market.  Buyers will be able to buy and enjoy home ownership.  Sellers will be able to move on.  It’s going to take a lot longer in markets where prices ran up at extremely high rates, but at some point there will be equilibrium again.

 In the meantime, let’s talk real estate!