Never confuse motion with action – Benjamin Franklin
OK, OK. There has been no motion, nor action with this blog for several days, and your humble editor begs your apology. My only excuse: bad-weather-postponed-my holiday-shopping-and-the other-important-things-that-I-had-to-get-done-like-list-three-new-bank-owned-properties-and…Well, I don’t buy it either, but it’s all I’ve got. The part about listing three new Denver bank owned properties is accurate, though, and I’ll write about them in another post if they’re worth it.
Yesterday, I read where Home Builders’ confidence is staying at a record low. On the National Association of Homebuilders 100 point scale, where anything below a 50 is considered poor, the December reading came in at a whopping “9!” The good news is that it is expected to rise to 10 next month! Heck, our Pres. has been doing better that that.
Are the homebuilders about to board the bailout bandwagon? Surehopenot. Every market needs to get its housing inventory in line and the homebuilders share a huge part of the blame in creating lopsided markets. Give them a little cash and maybe a ray of hope and they’ll be back to developing dirt into bright shiney ticky-tack, convincing those with money that the home of their dreams is just a signature away (pay no attention to the man behind the curtain – the one trying to sell their old homes).
Just north of Denver, in the towns of Henderson, Brighton and Firestone, neighborhoods of three-year-old homes abound. They are neighborhoods that were developed by DR Horton/Melody Homes, KB Homes, Richmond Homes and other big builders which had more money than sense enough to know when to quit. Travel through these developments and you’ll simultaneously see the unplanned dead-end streets created when the builders realized that they had overstayed their welcome, along with the inordinate number of foreclosure listings created by builder greed.
The good news is, you knew there would be some, is that with builder confidence at an all-time-low, our inventory is adjusting back to normal. Where the Denver Mtro/Mountain market had close to a ten month supply of homes for sale a year ago, there is now a six-month supply. The other good news is for those who are searchig for a new place to live, there are a lot of nearly new trick properties with all the trimmin’s at a fraction of their original price. Add to that sub 5% mortgage rates and I think that we’re looking at a serious rebound!
Our Pick Denver investment property for today is an older home built in 1963. It appears to have been nicely updated and the numbers are very attractive. It is a bank owned property in Broomfield on nearly one-and-a-half acres. The comparables would indicate that this home is valued at $400,000, but it can be purchased for just $248,000. With nearly 3,000 square feet, this 3 bedroom / 2 bathroom ranch can likely be improved to include at least another bedroom and bathroom.
For more information about this, or any Denver real estate, please contact MyH-O-M-E.com . Our agents are chosen for their expertise in real estate, their professionalism and their desire to serve. You can now search any Denver real estate listing at MyH-O-M-E.com.
Posted by: Dave Perlowski
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