Please note that Land Title data comes from actual recorded transactions at the County Clerk and Recorder’s Office for that particular month. The information is not directly related to MLS data. The data is an unofficial tabulation of Summit County Records that are believed to be reasonably accurate. If you choose to utilize this marketing information in any publications or websites, please make sure you are quoting Land Title as your source. You are welcome to utilize this link within your own websites.
Market Analysis by Area for January 2017: There were 203 transactions and $122,880,919 in monetary volume. Some trends for all 18 reported areas in December: $621,604- Average transaction price, $670,122- Average residential price and $397-PPSF.
Market Snapshot for Years 2017 vs 2016:Average Indicators for $: Single Family +22% Multi- Family +10% and Vacant Land -15%. Median Indicators for $: Single Family +16%, Multi- Family 9% and Vacant Land -8%.
Market Analysis % Change YTD 2017 : Monetary volume ($91,901,074) in January 2017 was substantially higher at 45% compared to January 2016. Transactions (138) were only up by 11%.
Residential Market Sales by Price Point: Residential volume in January had 113 transactions with $79,082,360 gross volume. There were 23 properties that sold for $1M and above in January. The most active price point was up a bit between $300K-400K with 19 transactions. There were 41 Single Family,72 Multi-Family and 7 Vacant Land transactions in January.
Average Price History by Type 2017: Average price for residential Single Family: $1.139,945 ( another milestone for the highest since Land Title has been tracking), Multi- Family: $449,231 and Vacant Land: $299,714.
Comparative Historical Cost Analysis 2017: There were again 113 residential transactions and $79,082,360 gross $ volume with 23 properties selling for a $1M and over-compared to 2016, there were 104 transactions and $55,534,150 $ gross volume, 9 properties at $1M and over and in 2015, there were 98 transactions with $56,210,600 $ gross volume, 12 properties at $1M and over.
Top Lender Graph: There were 452 loans in January, 70% (96) of the loans were related to sales, there were 152 REFI’s and 204 loans were timeshare related. 30% of the real estate closings were cash transactions.
Market Highlights: Please see page 10 of the Market Analysis- You can note the higher priced sale in January in the Sawmill Patch Placer area, also for the highest PPSF. There were no bank sales in January.
Foreclosures: Down again, with only 2 actions in January, compared to 4 in January 2016. There with no PTD filings in January.
Purchaser Profile Abstract:There were 25 upper end purchasers in January compared to 22 in December 2016. Our buyers for real estate transactions in January were the Front Range demographic at 33% of our market, 36% are “local” and 31% are out of state buyers with barely 1% International.
Land Title New Development Summary: This (page 16) shows all the new construction each month with 11 in January compared to 16 in December 2016.
Summit Mountain Rentals (a property management company in Summit County) has some great advice for first-time second homeowners who are looking to rent their property.
RENTING YOUR VACATION HOME YOURSELF? AVOID THESE FIRST-TIMER PITFALLS
If you’re renting your vacation home for the first time, it’s easy to fall victim to what we call “first-timer pitfalls.” Renting your vacation home is a business. Unfortunately, many forget this and treat renting their home too casually or forget to consider the consequences. Running a business, even a small one like renting your property, takes time, effort and thoughtfulness.
Here are the top things to never forget:
Pay your taxes
In the beginning of the vacation rental market, governments were not too worried about a single homeowner paying sales tax. But with the advent of VRBO, AirBnB and other online channels of sale, vacation rentals by owners is big business — with big revenue. Local tax entities no longer look kindly upon a “casual” attitude toward paying taxes. The last couple of years, city, county and state governments have offered amnesty to homeowners for back taxes as long as they start paying current taxes. However, these types of programs are going away.
If you are renting your property, you owe sales tax — and not paying sales tax is a crime. If you have not been paying sales tax, start now. Remember, it does not affect your rental’s price. Everyone expects to pay sales tax on top of the price you list; you just need to tell your guests and charge them for it. There is no reason to risk criminal action, so pay your taxes.
Get professional pictures of your rental
Yes, this costs money. But the difference in revenue, guest satisfaction and just plain pride in your home calls for professional pictures. And, unless you sell photography for money, you are not a professional photographer. The number one way to distinguish yourself from other properties in the sales process is to have great pictures. Homeaway/VRBO is now building algorithms to determine if you have good pictures; if so, you get a higher spot in their listings. This will become standard in the market. Not only do good pictures generate better income; it makes for happier guests. The number one way to make a guest happy is to meet or exceed their expectations. So take lots of great pictures and let your guest know exactly what they are getting. You will make them happier, generate better income and reviews, and just make your life easier.
Upgrade your vacation home
If you walk into your vacation home and say “Wow, I really like being here,” so will your guests. Think of it this way: going cheap gets cheap — and going nicer gets nicer. If you furnish and treat your home like a “rental,” then your guest will do the same. If you furnish and treat your home like a beautiful home, then your guests will do the same. Nicer homes have much less wear and tear because guests love them and come back. I always advise my owners to make their home something they love to come to. It always works — guests know the second they come into a home whether the owner cares about their property. And, it will generate more money for you. The number one way to increase price and sell more nights is creating repeat guests. People come back to places they like. Making your home spectacular not only makes you feel good when you visit, it makes your guests feel good and makes you more money through higher rates and higher occupancy.
Need help? Check out these great articles on updating vacation-home kitchens and bathrooms.
A bad bed is just a bad bed
Have you slept or at least tried to take a nap on all the beds in your vacation home? If you haven’t, do it. One bad review about mattresses can make you lose a lot of guests. People don’t call and ask if you replaced a bad mattress they read about in a review; they just don’t come. If you get a complaint, go try to sleep on the bed. If your mattresses are 10 years old … they are 10 years old! Replace them. The primary function of a vacation home is to sleep. Often your guests will not even eat in the home, but they all sleep in the home. If you don’t give them a good night’s sleep, nothing else matters.
Need help? Check out this great articles on updating vacation-home bedding.
Have local resources ready
Now that you have found your renters, collected their money and checked them in — what happens next? Why, Murphy’s Law, of course: “Anything that can go wrong, will go wrong.” The TV won’t work, the heat goes out, the air conditioning goes out, the fire alarm goes off, the water doesn’t come out of the master shower … and so on. Almost no one realizes how often things go wrong in their own home … we just take care of it. But in your vacation rental — for which someone is paying good money — you now have to take care of the same issues for someone else. And, you’re a 1000 miles away.
It is imperative that you not only have names and numbers of good local vendors (plumbers, electricians, etc.) but that you have interviewed them. You need to know if the plumber will come out on a Sunday night at 10 p.m. (You do know that toilets only overflow on a weekend night, right?) You need to know that your audio video resource will be able to fix the TV on Super Bowl weekend (again, this always happens!). You need to know that electrician will go out and fix the power at 1 a.m. so the house does not freeze. There is nothing worse than having a guest yelling at you over the phone because their 2-year-old child has been sleeping in a freezing cold or overheated room for four hours. Be prepared … and know your resources.
Pricing is important
Don’t be fooled: Having every date sold in July 2016 by the end of August 2015 the previous year is not “great.” It means your pricing is WAY TOO LOW. Not only have you lost out lots of revenue, you have probably rented to the cheapest and least respectful people. The same is true for not having July 4 booked by June 15. In this case, your pricing is probably WAY TOO HIGH.
So … pricing is very important. You need to sell your property, but you don’t want to give it away. The trick is research and paying attention. Do a quick search of the vacation homes that are similar to yours. How are they priced? Now do you want sell your home before them (price yours slightly lower) or after them (price yours slightly higher). Then pay attention. if your home is selling too fast, raise the price. If it is selling slowly, lower the price.
Renting a vacation home is a job
It takes time. Don’t fool yourself. If you want to do it yourself, make sure you have the time to do things right. What I’ve discussed here is just a small part of what it takes to rent your vacation home yourself. If you take the time and do it right, you can make good money. But if you don’t have the time or don’t like doing it, no amount of money made will be worth the aggravation.
So, try it! You’ll know quickly if you like it. If you don’t like doing it, get a good property management company do it for you. Either way, USE YOUR HOME AND ENJOY IT. I have found that owners who visit their vacation home often have the happiest guests. If you are happy with your vacation home, then others will be happy too.
If you have any questions about renting your vacation property yourself, call me! I’m happy to talk with you and help you get started. Here’s my number:
Mark Waldman, Owner, Summit Mountain Rentals, 970-423-7382
Or, shoot me an email. You can also post any questions (or tips) on vacation rentals in the “Comments” section below.
So after years of DIY/friend-assisted moves, you’ve finally decided to hire movers. As a fellow lazy convenience-minded person, I salute you. The heavy-lifting, traffic-negotiating, stair-climbing nightmare parts of moving day are out of your hands.
But before you kick back and start daydreaming of sleeping in on the big day, I also have some bad news: There are some things you always want to move yourself.
Even if you’ve hired pros, you’re still probably going to be renting a truck or tucking a few things away in your car. Yes, I know—that completely bursts your nothing-to-do bubble. But you’ll want these things for their safe arrival.
1. Your pets
Obviously, you’re not going to pack Rover in a box with some air holes, but you still need to do some prep work.
Moving is stressful for pets. Add the potential danger of their busting free in the chaos of moving, and it could be a bad situation. Save yourself a headache later and pack them a travel bag now.
If you’re moving across town, plan to take water and food bowls, food, treats, an extra leash, a favorite toy, and a crate with you in the car.
If you’re moving out of state, your movers probably won’t transport your pets, but you can hire a pet-moving service.
Houseplants are a bigger moving-day hassle than you might realize.
“Before doing anything with houseplants, it’s good to check with your state’s Department of Natural Resources or the U.S. Department of Agriculture to make sure there aren’t any restrictions for moving that particular type of plant,” says Jonathan Deesing, a community specialist with imove.
If the plants are allowed on the truck, you’ll still have to worry about everything arriving safely.
“Only pack up plants that are hardy and can survive a bumpy ride,” he says. Fragile plants (we’re looking at you, orchids) may not survive in the back of the truck. So put them in an open box in your car with some padding to keep the pots from tipping over.
If you’re packing, the movers probably aren’t.
Whether you’ve got an antique revolver just for display or a powerful hunting rifle, this one is a big no-no for obvious reasons.
“It’s best to move your guns on your own for safety reasons, and many moving services will not even consider moving guns for you anyway,” Deesing says.
If you’re moving your arsenal, don’t forget your safety lessons. Pack bullets and guns separately, and keep everything clearly marked and out of the reach of children.
And remember the rules and regulations.
“Make sure you have all the paperwork in order before moving guns across state lines,” Deesing says.
4. Your record collection and other valuables
Whether it’s the complete history of the blues on 350 vinyl records, or a collection of antique snow globes, “if you can’t stand the thought of losing it, don’t put it on a moving truck,” Deesing says.
Your moving company isn’t going to toss any of your stuff around (we hope), but accidents do happen. It’s one thing when it happens to that bookshelf you bought at Target, but another when it happens to your great-grandmother’s antique lamp set. If in doubt, bring it with you.
5. Personal paperwork
Pack your Social Security card, birth certificate, auto title, and any other important paperwork in a waterproof case, and haul that with you. Inevitably, something gets misplaced in a move. And it’s not helpful to find your passport six months after you had to scramble to get a last-minute replacement for your vacation to Spain.
“Of all your belongings, these can often be the most difficult to recover if lost or damaged in transit,” Deesing says.
6. Climate-sensitive artwork
If you’re moving across town or within the same state, your artwork can probably be safely packed and stowed away on the moving truck. If you’re moving several states away and the temperature might change drastically on the trip, you might want to bring those originals with you in your climate-controlled car.
“If you have artwork in a truck and move from the Northeast to the Deep South, it could irreversibly damage certain paints and materials,” Deesing says.
For everything else, follow this rule: When in doubt, overcompensate.
“Communication is key with any part of the move, and this is no exception,” Deesing says. “Don’t take risks, either—clearly label your fragile items and feel free to supervise movers as they load items onto the truck.”
Buying a home is a major step toward building a solid, secure financial future—so whether you’ve made the plunge into ownership or are aiming to soon, you should pat yourself on the back! (This, of course, is not as easy as it seems.) And yet, in the race to settle into a place of your own, it can be easy to overextend yourself and cut corners on yet another important financial goal: saving for retirement.
Even if retirement is decades away for you, this subject nonetheless repeatedly tops the list of Americans’ economic fears in Gallup’s annual Financial Worry metric. But just because you buy a home doesn’t mean you can’t save for retirement, too. It’s a high-stakes balancing act, one where the right home-buying decisions will keep your retirement on track, and the wrong ones may throw you seriously off-kilter.
Here are some common retirement saboteurs to avoid.
Saboteur 1: Buying a house outside your price range
When you purchase a home, your retirement savings are on the line—even if it may not seem that way at the time.
“Housing is the biggest expense most people have,” points out Mary Erl, a certified financial planner and owner of Nest Builder Financial Advisors in Gurnee, IL. Hence, if you purchase a property that’s way outside your budget—and you’re forced to forfeit saving for retirement in order to make your mortgage payments—you’ve put yourself in a bind. A pickle, even.
And don’t just consider your current income, but your future income, too.
“People almost never take future earnings into consideration,” laments Joe Pitzl, a certified financial planner and partner at Pitzl Financial in Arden Hills, MN. “Younger couples get married, buy their first home based on their combined household income. But then when they start a family, one of the spouses leaves the workforce to raise the children and all of a sudden they’re bringing in a lot less money each month. That reduces how much money you can save for retirement.”
Saboteur 2: Draining retirement accounts for a down payment
While it’s tempting to borrow from your IRA or 401(k) to amass a down payment on a home, many financial experts say home buyers should do so sparingly, only as a last resort. IRAs and 401(k) plans are called retirement accounts for a reason—you’re not meant to touch the money until you’ve entered your golden years. If you borrow from either plan before age 59½, you’ll get slapped with a 10% excise tax on the amount you withdraw, on top of the regular income tax you pay on withdrawals from traditional defined contribution plans. Ouch.
Making early withdrawals also obviously prevents the money from accruing interest in these accounts. Put simply: Raiding the piggy bank before the money has matured can put a serious dent in your retirement savings, and many underestimate the repercussions.
“Withdrawing $5,000 from your IRA or 401(k) to pay for home repairs may not seem like a big deal,” Pitzl says. “But if you do so at age 30, that money would have grown exponentially over time if you left it in the account.”
Saboteur 3: Paying off your mortgage too quickly
While it sure sounds impressive to pay off your mortgage in three years, it’s not necessarily the best for your retirement. The reason: There’s good debt and bad debt. You want to pay off your credit card bill (bad debt) in full each cycle or you’re going to pay interest. Mortgage payments, though, work differently.
From a psychological standpoint, you probably don’t like owing a hefty sum to your lender. (We don’t blame you.) However, if you’re a younger homeowner with a new mortgage (good debt), it’s beneficial from a retirement savings perspective to make only the minimum monthly payments on the loan and invest the money where you can get a higher return.
For example, on a 30-year mortgage, at today’s interest rates, it makes more sense to put the money into an IRA or 401(k) than increase your mortgage payments, Pitzl says. “Don’t throw every penny you can at your mortgage debt,” he says. Granted, if you’re approaching retirement and are close to paying off your mortgage, it may make sense to up your payments if you want to retire debt-free.
Saboteur 4: Not saving for a rainy day
When asked about their emergency savings, an alarming 29% of Americans said they had none, according to a report last year by Bankrate.com. Nada. But without a sufficient emergency fund, you may be tempted to run up credit cards or tap your home’s equity or retirement accounts to pay for major repairs (new roofs don’t come cheap). And “if you get laid off, your mortgage payments don’t stop,” Erl says.
Therefore, make sure you have enough cash tucked away to cover six months of living expenses in the event you lose your job and budget 2% of your home’s value for annual maintenance (1% for newer homes), says Pitzl.
Saboteur 5: Waiting too long to downsize
Your $1 million McMansion may have made sense when your family of five was living under one roof, but if you’re heading into retirement, it’s probably time to downsize.
A common mistake, says Austin Chinn, a certified financial planner at Fountain Strategies in San Jose, CA: “People destroy their retirement savings by staying in their home so that they can have their kids move back in after they graduate college.”
Unless you’ve budgeted for a boomerang child, you need to do what makes sense for you financially.
“If you can move from a larger home to a smaller home and wipe out your mortgage, that’s a huge boost to your retirement,” says Erl.
Because crunching the numbers can be complicated, it can be helpful (and a huge relief) to meet with a financial planner to determine if a reverse mortgage makes sense for you (find one at Napfa.org).
Let’s get real: The first room you stumble into in the morning—bleary-eyed, dazed, and yawning—should be a soothing oasis. A bathroom that achieves those lofty heights? That’s a bathroom you can love. That’s why these most special of rooms are second only to kitchens as the areas homeowners eagerly spend time and money renovating—and that catch a buyer’s eye when you’re trying to sell.
But exactly which upgrades are the best, in terms of both usefulness and return on investment? Before you go nuts installing saunas and rain shower heads, check out this second installment in our series Renovations That Really Pay Off, for some smarter tweaks you’ll be very glad you made.
Reglaze, don’t replace, the tub
“No, no, no—do not put in a new tub,” says Rebecca Knaster, associate broker with Manhattan’s William Raveis. “It’ll cost thousands between the tub and the installation.” Instead, have the tub reglazed for “around $1,500,” which will make it look brand new.
Matt Plaskoff, founder of One Week Bath, agrees that if the shower area “is in decent shape,” it’s best to concentrate on the front part of the bathroom, which “sets the tone for the space.”
Invest in a new sink
Face washing, teeth brushing, gerbil bathing—your sink sees a lot of use. It’s also the very first thing a buyer notices in a bathroom, saysKnaster.
“Step 1 for getting the most bang for your buck is a new contemporary sink,” she says. “It will set you back a few hundred dollars and make all the difference.”
Just note whether the sink you already have is an undermount (where the edge is below the countertop to create an uninterrupted surface) or overmount (where the sink lip comes up over the countertop), says interior designer Randal Weeks, founder of Aidan Gray Home.
An undermount can be difficult to remove unless it’s under a formica top. If the sink is adhered to the surface, the top will also have to go, which quickly drives up the cost. One easy and dramatic sink upgrade Weeks recommends is replacing separate hot and cold faucets with a sleek single-handle faucet that starts at $70.
Go for timeless tile
While natural stone is hot, Weeks prefers neutral styles that will appeal to a broader range of people and provide better return on investment. Pricey stones are taste-specific, he notes, and can give a busy look that’s a turnoff regardless of expense.
In fact, Weeks says one of the biggest issues buyers consider when making offers is the cost of redoing other people’s “bad choices.” So go for crowd-pleasing features such as bright white subway tiles, which run a mere 21 cents each. The payoff?
“You can add $10,000 of value to your home by selecting timeless elements that won’t date it.”
Upgrade your lighting
It’s not just Snow White’s evil stepmother and the Kardashians who spend lots of time staring into the mirror on the bathroom wall. For most of us, lighting and lighting fixtures are critical elements.
“Dated light fixtures are a turnoff,” says Knaster. “For no more than $100 you can buy a basic but nice bathroom light fixture.”
Install a double vanity
The last thing you need in the morning is a battle with your partner over who gets the sink. It’s no wonder “I’m looking for a double vanity” is one of the most common things heard by Will Johnson,a Hendersonville, TN, real estate agent and founder of the Sell and Stage Team.
A double vanity typically costs between $200 and $800, with installation falling around $220, Johnson says—and it’s a wise investment. Johnson has clients who “won’t buy a house simply because there’s only one sink in the master bathroom!”
Swap in new fixtures
“Old materials such as bronze can instantly date your bathroom,” says Johnson. To knock out this easy DIY update, simply purchase new door handles, drawer pulls, and towel bars. A nice chrome drawer pull can cost as little as $3, while a towel bar canaverage $30.
Get a water-saving toilet
Old toilets use 6 gallons of water per flush, gobbling up about 30% of all residential water in U.S. homes. Go green when you swap out your throne. New WaterSense models using only 1.28 gallons per flush (e.g., TOTO’s Carlyle II 1G toilet) conserve up to 18,000 gallons of water annually. The initial cost of $974 will shave more than $110 per year off a water bill and add up to almost $2,200 over the lifetime of the toilet. Bonus: The latest water-saving thrones actually work.
But skip the bidet
Bidets may be considered the Rolls-Royce of toilet upgrades, but most bathrooms simply don’t have room for them. What’s worse: Most Americans have no idea what on Earth these things are and may even be weirded out by them.
“My personal opinion is that our society is not accustomed to this practice and doesn’t see the extra value in them,” says Tracy Kay Griffin, an expert designer at Express Homebuyers in Springfield, VA. “We haven’t renovated a home yet where we thought it would be a good investment to add a bidet.” Just say nay to the bidet.
In recent years, Denver has made numerous appearances on lists featuring the best, most exciting places to live in the nation. So it’s no surprise that creative, forward-thinking entrepreneurs and professionals choose to call our city home. Meet some of the brains behind local businesses and leaders in various fields.
summitskyranch.com | (970) 286-0202
PO Box 2984, 309-M Rainbow Drive, Silverthorne, CO 80498
Tom Everist, developer of Summit Sky Ranch, has been involved in Summit County through his six-generation family business since 1964. Now, this longtime businessman is developing Summit Sky Ranch on his family’s pristine parcel of Rocky Mountain wilderness in Silverthorne, just five minutes north of I-70.
“I envision a vibrant and inclusive community that brings families and their love for the outdoors together to enjoy quintessential Colorado living, and at the same time preserves the natural beauty of the spectacular Blue River Valley that my family has cherished for more than half a century,” said Everist.
Tom’s passion for developing Summit Sky Ranch comes from his belief that personal relationships are at the core of our lives, and the community is being thoughtfully designed to encourage social connectivity among families and neighbors. The Aspen House serves as the community’s social and recreation centerpiece offering everything from coffee to star gazing, yoga to outdoor swimming and more. In warmer weather, residents can kayak and paddleboard on the community’s private lake, and come snowfall they’ll enjoy Nordic trails, ice skating and sledding. Plus, miles of community trails connect to the White River National Forest for year-round enjoyment.
In addition to the thoughtfully designed amenities, the community’s mountain modern design stands apart from more traditional log cabin architecture in the area. With a variety of sizes and floor plans, all of the homes are contextually designed to complement the raw natural beauty of the land, featuring a natural palette and native materials such as wood, stone, granite and quartz. Built with extraordinary architectural design, this community centered development will bring families together to enjoy Colorado living at its finest.
It’s hard to find a more sympathetic foreclosure story than Kathleen Conrad’s.
The disabled widow of a Marine who served in Vietnam, Conrad, 66, lives in a rundown Westchester house the couple bought in 1999, realizing their modest version of the America dream.
But after her husband died in 2004, Conrad faced larger-than-expected cuts to her widow’s benefits. During the 2007 housing market boom, she took out a second mortgage from GMAC. In 2013, Conrad fell behind on payments and was contacted by her loan’s new owner, Infinite Customer Systems and the strong-arm tactics began to get Conrad out of the home.
Unlike big banks, non-bank servicers like Infinite are not bound by even the modest consumer protections built into the National Mortgage Settlement (NMS) of 2012.
Non-bank servicers are taking a page from their predecessors’ playbooks. Sources say that many of the same old problems the NMS partially sought to address are back with the nonbank servicers, including long delays in reviewing loan modifications and wrongful denials of loan modification requests.
While Federal Housing Finance Agency director Mel Watt is still dithering about whether to finally allow principal write downs to help troubled borrowers keep their homes, private investors who’ve already gotten a steep discount on distressed debt sold by government-sponsored entities are using hard-knuckle tactics with homeowners.
“The investors buying these loans are not interested in offering home-saving solutions to struggling homeowners,” said Jacob Inwald, director of foreclosure prevention at Legal Services NYC.
As government-sponsored enterprises including Fannie Mae sell delinquent mortgage loans to shore up their balance sheets and banks pull back on this market, private investors are muscling in. They range from small fry like Virginia-based Infinite Customer Systems to $60 billion Texas-based private equity titan Loan Star Funds. Loan Star is the backer of mortgage servicer and originator Caliber Home Loans, a major new player in New York.
After a flood of complaints about Caliber’s practices, Attorney General Eric Schneiderman opened an investigation last year. Loan Star declined to comment. A spokesman for the AG said the investigation is ongoing.
ICS’ Patrick Desjardins said he tried to reach a deal with Conrad before filing foreclosure. She halted the case by filing for bankruptcy protection, aided by foreclosure defense attorney Linda Tirelli. Earlier this month, a judge voided ICS’ lien, leaving the investor with worthless paper, and Conrad in her home.
“I don’t know where I would have [gone]” Conrad said. “That’s why I was fighting so hard to keep the house.”
Experts fear the new wave of investors will steamroll other vulnerable New Yorkers.
“We’re really concerned about the outlook,” said a spokesman for the Center for NYC Neighborhoods. “This is an unprecedented transfer of property ownership, accelerated by the distressed sales to non-bank servicers.”
Non-banks serviced 25 percent of the $9.9 trillion in outstanding US residential mortgages last year, against just 7 percent in 2012.
That’s according to a new Government Accountability Office report released last week by Sen. Elizabeth Warren (D-Mass.) and Rep. Elijah Cummings (D-Md.), who called for more oversight. This shift could lead to “harm to consumers, such as problems or errors with account transfers, payment processing, and loss mitigation processing,” the report said.
These new risks come as thousands of New Yorkers are mired in foreclosure. A new report from New Yorkers for Responsible Lending notes that as of last October, the state had nearly 90,000 pending foreclosure cases, half of which were filed in the previous 12 months. The crisis has bypassed wealthy enclaves of the city while ravaging low-income minority neighborhoods in Brooklyn, Staten Island and Queens.
With ski season winding down in Colorado’s high country and the Denver-Boulder housing market so strong, real estate experts say Front Range buyers appear to be turning their attention to second-home and investment opportunities in the state’s major ski-town markets.
“We’re definitely seeing a spike among the Front Range residents and their desire to buy a second home, and in many areas there’s no shortage of inventory, so they have their choice,” said Bank of America Regional Sales Director Ann Thompson, who added that soaring Denver home prices may be driving some of that trend.
“Denver metro has seen about 16 percent gains in home prices, and now that they’ve got that equity going, they look at that and say, ‘I can improve my home, or I can also use that equity to make a down-payment on a second home,” Thompson said.
The different mountain-town markets vary in terms of Front Range second-home ownership. In Eagle County (Vail and Beaver Creek), for instance, an analysis by Land Title Guarantee Company found that 17 percent of the 2015 fourth-quarter homebuyers were from the Front Range. That compares to 57 percent in Grand County (Winter Park), 38 percent in Summit County (Breck, Copper, Keystone and A-Basin) and just 2 percent in Pitkin County (Aspen).
“There are no opportunities for them to invest down on the Front Range, so they’re coming up here and looking,” said Andrew Forstl of The Davos Group real estate and property management company in Vail. “There are no deals down there. Denver is unattainable for investments, so people are looking up here, and it’s just kind of started. Our market isn’t nearly as booming as the Front Range — things are not flying off the shelf — but it’s healthy.”
Forstl says one of his clients, a Front Range family that had been skiing and looking at properties all winter in the Vail Valley, was finally ready to pull the trigger in the closing weeks of ski season and just went under contract.
“They were waiting for the end of the season for deals to come out – places that have been on the market all season and they’re looking to get a deal on one of them,” Forstl said, adding that in general, sales to Front Range second-home buyers will drop off some after the lifts stop running and then pick up again in June.
“Things that haven’t sold over the winter are going to go down in price, so people are looking at that, but it’s hard getting them up here to look at stuff the next couple of months,” Forstl said. “What’s changed is a lot of people are coming up here for the summer. Ten years ago summer was nothing up here, but a lot of people are liking the summer as much as the winter.”
Bank of America’s Thompson agrees with that trend, urging prospective Front Range homebuyers to do their homework and consult various experts, including an experienced mortgage loan officer, a realtor and even a CPA on whether to buy as a second home or an investment rental property to be listed on VRBO or other services.
“A realtor can help with projecting realistic rents not only in the winter, but also in the summer,” Thompson said. “That’s very, very popular for Front Range people – the music festivals, the mountain biking, hiking. That’s really important when you’re looking at year-round potential for rental and also to be attractive for Front Range resale.”
Thompson also added that it’s key to look at amenities such as conference space, either in a dedicated facility such as Keystone or in the hotels in Vail, with a good mix of retail, entertainment and other options that will attract renters. Plus, access is always a concern, she says, and a good regional airport that avoids potential Interstate 70 gridlock can be a plus.
The Eagle County Regional Airport in Gypsum, 40 miles west of Vail, welcomed its 8 millionth commercial passenger on March 29 after first launching commercial air service in 1989. Still, drive-to markets will be always continue to be the most popular for Front Range buyers, especially when they’re home values have increased so much and they’re feeling priced out in their own primary metro-area market.
“Equity in your home builds a lot of confidence about financial comfort,” Thompson said. “When you have equity in your home, there is that ability to borrow on that equity, but even if you’re using stock options or a bonus or what have you, it’s just all about that confidence to make that investment [in a mountain second home or rental property].”
According to the S&P/Case-Shiller Home Price Indices, the metro Denver area led the nation for the highest rate of home price appreciation for half of 2015. Denver was second in the nation among major cities four months out of the year, and wound up third in December, behind only Portland, Oregon, and San Francisco. Overall, home prices in Denver rose 10.2 percent in 2015, compared to 5.4 percent nationally. But that kind of increase has some investors there wary.
A recent Morgan Stanley Wealth Management Investor Pulse Poll of more than 1,000 high net-worth investors revealed they feel the Denver housing market is overpriced and unaffordable for first-time homebuyers. The poll of Denver-area investors between the ages of 25 and 75 with $100,000 or more in household liquid investable assets found that 89 percent feel the metro-area market is overpriced. Nearly as many (86 percent) said the market is pricing out first-time homebuyers, and there is concern a bubble is forming.
“I think the financial crisis of 2008 is still very fresh in a lot of people’s minds, particularly high net-worth investors, so they’re looking at what happened to real estate prices here,” Denver-based Morgan Stanley financial advisor Todd Hauer said. “We were down probably 30 to 40 percent from the 2007 highs to the 2009 lows.”
Bank of America’s Thompson says it’s tougher to flip properties in the mountain markets the way some Front Range buyers have been able to do the last few years. That’s why she says mountain-town investments may make more sense as a longer-term play that’s based on a lifestyle choice.
“With VRBO, there’s just so much more exposure to the lifestyle, and then they want to turn it into a permanent lifestyle,” Thompson said, adding a season full of powder days can certainly influence a second-home decision. “This is the time of year where they’ve had that wonderful experience, and they’re like, huh, I want my own place.”