Living Littleton

For the fifth month in a row Denver Metro home prices, which includes Littleton, have shown an increase in year over year pricing.  There was also a slight increase from February of this year to March of this year.  These statistics came from the latest S&P/Case-Shiller Home Price Index.

The report showed the the average price increase from a year ago was 4.1%.  Once again, I want to stress that these are the averages of all the homes sold in the respective months, and not the increase of 4.1% for each home. 

Since much of the market was driven by the push of first time buyers to take advantage of the expiring tax credit, I suspect the market was weighted to more of the entry home price range.  We may see another increase in April as that was the last month to take advantage of the tax credit.  After that, the experts predict the number of sales will slow, however, we may see more of a mix of higher priced homes because of the fall off from first time buyers.  This may give us a continued increase in year over year prices, however, the total number of home sales may decline.  These experts also expected interest rates to be higher by now, but in fact, they’ve declined.  It’ll be interesting to see how all of this shakes out.            

Another index is a comparison of a market’s present average home values when compared to the year 2000.  Based on that index, Denver and Littleton came in at 125.31.  That means prices were 25.31% higher than they were in 2000.  The average for the top 20 cities was 143.35 in March.

Jerry Becker
Jerry Becker and Associates – Metro Brokers
jbeckerhomes@comcast.net

A spokesman for King Tut expressed his regrets about not being able to visit Littleton this year.  According to the spokesman, the Boy King was looking forward to dining at Opus, having a chocolate fondue at the Melting Pot and if time allowed to end the evening with drinks from Merle’s roof top deck.  Due to time constraints, the Littleton stop over had to be scratched, but he still held out hope that he could make it another time.

The good news is that even though King Tut won’t be appearing in Littleton, you can still catch him in Denver at the Denver Art Museum.  He’ll be arriving soon and plans on hanging around til early 2011.  Unfortunately, in these tough economic times, even the Boy King is running short of funds, so he plans on charging you if you would like to go.  Tickets are for specific days and times with the best deals being during the week.

Go to www.kingtut.org to get more information and purchase your tickets.

Jerry Becker
Jerry Becker and Associates
jbeckerhomes@comcast.net

Back around the first of the year, Littleton mortgage experts predicted a rise in home loan rates after the end of the first quarter.  This was all predicated on the fact that the Federal Reserve was going to quit buying mortgage securities.  The Fed had been buying billions in mortgages to inject liquidity into the loan market to help stimulate the housing market with the hope of getting many of the sliding markets to stabilize.

Well, the Fed did quit buying and rates did start to move up about a quarter point or so, but the good news is that rates have softened.  In fact, they’ve softened so much that they are as low as they have been this year, so you could say rates have gone in the wrong direction.  This all came about because of the weakness in the Euro due to the debt crisis and bail out for Greece.  Investors have started to worry about the value of the Euro so they have switched to buying dollars.  This influx of money, has caused our rates to stay low for the time being.  More money chasing our bonds which cause the price to get bid up.  With bonds, when prices go up, interest rates go down.

If you felt squeezed out of the home buying market because rates went beyond where you felt comfortable, this present situation may give you another chance.  No one knows how long this will last, but it change and go the opposite direction in a short period of time, so take advantage of it now, if you can.

Jerry Becker
jbeckerhomes@comcast.net

 We all have heard reports about how our economy here in Littleton and the rest of Colorado is getting better, and I believe it is, however, we all know that some people are still having a tough time of it.  If you know of someone that could use some help, at this time, you may want to tell them about Angle Food Ministries.  Simply put, Angle Food Ministries is a non-profit, non-denominational organization dedicated food relief and financial support to local communities throughout the US. 

This program started in Georgia in 1994 by helping 34 families and has since grown to cover 44 states.  Angle Food works through local churches to distribute food boxes at a reduced cost to families in need.  They sell medium sized boxes of food for $30 that would have a normal retail price of about $60.  Based on their calculations, one box should feed a family a four for a week, or a single senior citizen about a month.  The food is the same quality as one could purchase at a grocery store and isn’t comprised of seconds, dented cans, or damaged packaging. 

Angle Food also offers expanded box choices of meat, chicken, or pork, plus participants aren’t limited to purchasing just one box.  Additionally, participants aren’t required to adhere to any government programs.  If you know someone that could use a hand, have them contact Angle Food; http://www.anglefoodministries.com.

Jerry Becker
Jerry Becker and Associates
jbeckerhomes@comcast.net

Last year was such a success that Littleton’s Olde Town Market will be back for a second year starting this Saturday, May 8th.  Then every second Saturday of each month through September you can experience it  starting at 10:00 AM and running until 4:00PM.  Walk the streets of down town Littleton and experience the fun of an open air market with antiques, jewelry, artisans, one of a kind pieces, as well as the existing merchants and restaurants.  For more details check out www.oldetownmarket.com.

Jerry Becker
Jerry Becker and Associates – Metro Brokers
jbeckerhomes@comcast.net

   Are you a transplant in Littleton or the Denver metro area? Many of us are, but do you have friends or relatives back in your home state that are wondering what you’ve gotten yourself into.  Oh, sure, you tell them it’s real nice here and they should come visit but do they really believe you?      

  I just recently added 10 short videos on my web site that highlights what living in Littleton and metro Denver is like, not to mention our state.  If you want to give your doubters a third party testimonial, have them log on to www.JerryBeckerAndAssoc.com.  The videos average about two minutes each and after they watch them, they’ll be calling you, as they make their vacation plans.

Jerry Becker
jbeckerhomes@comcast.net

   A recent Denver Post article mentioned that Littleton and metro Denver apartment vacancy rates are continuing to fall.  According to the article the first quarter rate stood at 6.5%, which was an improvement over the fourth quarter of 2009 vacancy rate of 7.7%.  Year over year, the rate improved from 8.4% vacancy in the first quarter of 2009.

  As bad as the recent recession has been, these rates never came close to the rates we saw in the recession of 2002-2003, when they topped out at 13.1%.  Two main reasons were given for the rates being lower in this recession, builders pulled in their horns and built fewer apartments this time around, and less people could afford to purchase a home because of the tighter mortgage restrictions. 

   The good news, if your a renter, is the lower vacancy rates haven’t yet translated into higher rents.  One would expect this to come eventually as the economy improves. There may also be a large pent up demand of current renters, that will want to purchase as they feel better about their economic situation.  Depending upon the size of this pent up demand, it may be enough to help keep a lid on  the price of rents.

Jerry Becker
Jerry Becker and Associates Metro Brokers
jbeckerhomes@comcast.net