Colorado Real Estate Investing

I never thought I’d see it in the free market state of Colorado, but these crazy legislators actually have a RENT CONTROL bill on the table:

http://www.leg.state.co.us/CLICS/CLICS2010A/csl.nsf/fsbillcont3/9BBA6B3653BC17CB872576A800289E82?Open&file=1017_01.pdf

I practiced law in NYC under rent control and it was a NIGHTMARE!  This will KILL the free market and impose unreasonable registration and filing requirements for landlords.

Contact your state representative right away and ask them to KILL THIS BILL

According to the Post, a new bill introduced in Colorado would allow lenders to take control of abandoned properties faster by presumably (not clear) speeding up the foreclosure process for abandoned properties.

—>>> http://www.denverpost.com/economy/ci_14052416

According to the Denver Post, foreclosure filings are up 11% over last year, but the number of properties that actually hit the auction block are down, mostly because of housing counselors and short sales.

>>> Read more

Metro Denver’s housing market showed its first year-over-year improvement in 11 months, as the number of homes sold in November surged 23 percent over the same month in 2008, data released Tuesday showed.

At least part of the increase was attributed to a rush by buyers to take advantage of the $8,000 federal tax credit for first-time homebuyers, originally set to expire at the end of November but later extended through the spring.

But it wasn’t just first-time buyers who returned to the market. The median sales price for condos and single-family homes increased, a sign that more-expensive properties were also selling well.

Read more –>>> http://www.denverpost.com/economy/ci_13956751

With rising apartment rents far outpacing the rise in the prices of goods and services, investing in multi-family properties can serve as a hedge against inflation, industry experts say.

Apartment rents nationwide are an average 19 percent higher than they would be if they had grown only at the rate of inflation from 1999 to today, according to research by Grubb & Ellis Co., a real estate advisory firm.

In Denver, rents are 37.8 percent higher than inflation.

Read more –>>> http://www.denverpost.com/economy/ci_13930274

SOURCE: DENVER POST

Denver and Dallas saw the smallest decline in home prices among cities surveyed in September compared with the same month a year ago.

Prices were down 1.2 percent in both metro areas, the smallest decline among the 20 cities tracked by the Standard & Poor’s/Case-Shiller home- price index.

The 20-city index registered a month-over-month increase in September for the fourth straight month. The index increased 0.3 percent from August but was down 9.4 percent compared with the same period a year ago.

“While Colorado is in a recession, the housing market has not been hammered to the extent that other markets have,” said economist Jeff Thredgold of Vectra Bank Colorado. “Housing nationwide is stabilizing. The price adjustments are painful, but they are starting to stabilize.”

The Denver area’s numbers are better than the national figures because the region didn’t have the huge run-up in prices from 2003 to 2006 that other areas did. Still, Denver’s home prices dipped 0.5 percent compared with August, the first such drop in six months.

“It’s partially a seasonal adjustment with people putting kids back in school, but it’s also partially dependent on what has sold,” said Gretchen Faber, managing broker of the Kentwood Co. in Cherry Creek.

The National Association of Realtors said Monday that home resales rose 10.1 percent to a seasonally adjusted annual rate of 6.1 million in October from 5.5 million in September. But it’s likely the market will stay flat as the flurry of activity from the federal homebuyer tax credit subsides.

“We’re going to see a little bit of softening as a result of those who are looking to buy have already bought, and those who haven’t will buy in early spring,” said Chris My Gatt, president and chief operating officer of Coldwell Banker Residential Brokerage.