Mitch Shannon Real Estate

Available Inventory of Single Family Homes Trending Lower

Mitch Shannon — Wed, 19 Oct 2011 21:56:05 +0000

In the midst of challenging economic times, an interesting trend has been developing in the Metro Denver residential real estate market, over the last year. The supply of available homes in the metro area has been steadily declining. Year over year comparisons, between 2010 and 2011, show a consistent reduction in the available inventory of single family homes (graph A), since January 2011.

Metro Denver Active Listings (Graph A)

Equally compelling is the sold rate of single family properties, in 2011, when compared to the sold rate, in 2010 (graph B). When analyzing the volume of sold houses between 2010 and 2011, it is evident the Home Buyer’s Tax Credit in 2010 affected the number of sold houses in during the spring and early summer months. Which resulted in a sharp decline of sold volume after the expiration of the tax credit.

Metro Denver Sold Properties (Graph B)

However, overall sales volume in 2011, is just slightly below the number of sold properties in 2010. While the overall real estate market and economic health remains tenious, at best, there appears to be a diverging trend between supply and demand. Recently, there has a been a shortage of available homes well positioned in the market place. Buyers are quick to act on homes offering a “sense of value” – meaning houses appropriately priced in the market for what they have to offer.

Denver Metro Rental Vacancies Fall to 2.6 Percent – September 27, 2011

Mitch Shannon — Tue, 27 Sep 2011 17:12:24 +0000

According to the latest report from the Colorado Division of Housing, the overall vacancy rate of residential properties in the Denver Metro area has dropped to a historic low of 2.6%, in the second quarter of 2011. The current vacancy rate of 2.6% is lower than the second quarter of 2010′s vacancy rate of 3.8%. Additionally, the average days on the

Denver Metro Vacancy Rate by County - Colorado Division of Housing

market fell from the second quarter of 2010, of 47.2 days, to an average of 15.7 days during the same time period in 2011. While the rental market continues to tighten, residential rental rates have not yet seen a significant increase. Rental rates have remained stable primarily due to significant pressure from the overall economic conditions and high unemployment rate (or under-employment). However, with such a significant reduction in the days on the market, it is anticipated the rental rates could rise in response to the high demand and limited supply. With such a strong residential rental market, historic low mortgage rates and significantly more affordable housing prices…it is a prudent time for investors to move money from more volatile investments into residential real estate. Contact me today on how to identify investment properties and my property management services.

Mitch Shannon Offers Property Management – July 29th, 2011

Mitch Shannon — Sat, 30 Jul 2011 21:58:07 +0000

Mitch Shannon is now offering property management among the real estate services provided to his clients and referrals. In today’s market, several clients have been requesting property management services to help them with their real estate needs and goals. Mitch Shannon is providing full service property management, at very reasonable rates. Property management services include:

Rental Market Analysis and Pricing
Tenant Credit Check, Screening and Application
Advertising and Leasing
Accounting and Bookkeeping
1099 Tax Reporting
Maintenance and Repair Services
Investor Consultation

Whether you are wanting to rent your current home and take advantage of the great buying opportunities, being relocated out of state or exclusively as a real estate investor, Mitch Shannon has the property management tools and services, for all your rental needs.

FHA Policy Change Helps Unemployed Borrowers – July 25, 2011

Mitch Shannon — Mon, 25 Jul 2011 22:45:29 +0000

Department of Housing and Urban Development

The Federal Housing Administration, FHA, recently changed its policy concerning the forbearance period for unemployed borrowers, the Obama Administration announced this month. FHA will require loan services to increase the forbearance time period to 12 months for unemployed borrowers trying to keep their homes while looking for work. Additionally, the White House administration intends to require the same forbearance period for loan services and borrowers participating in the Making Home Affordable Program (MHA). According to FHA: ”Today, 60 percent of the unemployed have been out of work for more than three months, the minimum forbearance period in MHA’s current program. Furthermore, 45 percent have been out of work for more than six months.” The policy change could be the difference for unemployed homeowner’s trying to stay in their homes while finding a job. For more information click this link: FHA Unemployment Special Forbearance

Under Contract Homes Increase for 2nd Month – July 11, 2011

Mitch Shannon — Mon, 11 Jul 2011 22:23:02 +0000

Under Contract Homes in Denver - June 2011

For the second month in a row, the number of homes under contract (residential and condominium) has increased year over year. Denver Metrolist, reports a 22.5% increase in the number of homes under contract, comparing June, 2010 to June, 2011. A similar year over year comparison in May posted an increase of 23%. Additionally, the Denver Metro area is also experiencing a decrease in the number of available homes, or unsold homes, by a decrease of 16.54%. The residential real estate market is still challenging, but these are encouraging statistics.

Sales Success in Meridian Village – July 6, 2011

Mitch Shannon — Thu, 07 Jul 2011 00:20:11 +0000

Meridian Village is one of Parker Colorado’s newest developments. Since its inception three years ago, new home sales continue to be strong, along with an emerging resale market, despite the slower real estate market and economy. Richmond American Homes, Meritage Homes and Esprit Homes are offering some great summertime incentives combine with historic low mortgage rates. Contact me today to maximize your buying power. For more information and to see homes for sale visit Meridian Village.

iPad Giveaway – Buyer Summer Promotion

Mitch Shannon — Mon, 20 Jun 2011 22:13:16 +0000

Presented by Mitch Shannon of RE/MAX Masters, Inc.

Ready to buy your next home? Take advantage of today’s historic low mortgage rates, excellent housing prices and motivated sellers. Rental vacancy rates are extremely low

iPad2 Giveaway - Buyer Summer Promotion

and many rental prices are higher than owning your own home. Today’s buying power has never been better. It is also a great time to make your next move if you are looking to up size or down size your home. Contact me today for more information and learn why it is an excellent time to buy a home!

It is simple and easy to win a Free iPad 2, but a few terms and conditions apply, click for more details.

Metro Denver Residential Inventory Decreases by 16% – June 17, 2011

Mitch Shannon — Fri, 17 Jun 2011 20:19:12 +0000

From the statistics compiled by Denver MetroList (MLS), the month of May 2011 shows some very positive signs. The overall inventory of single family homes, residential and condos, has dropped over 16% compared to inventory levels in May 2010. In fact, the trend of decreasing inventory has been steadily declining over the last several years. Of particular interest is the positive change in the number of pending and under contract properties in comparison to May 2010. The number pending sales has increased by 189% and under contract properties has increased by 23%, see the chart below for more information. While the residential real estate market still has significant challenges, these are encouraging statistics if the trend continues. Buyers waiting to time the bottom of the market might be looking in the rearview mirror, in the near future, especially combined with the historic low interest rates.

Denver Metro May 2011 MLS Statistics

Historic Lows Create an Excellent Time to Buy an Investment Property – June 2, 2011

Mitch Shannon — Thu, 02 Jun 2011 21:20:03 +0000

A real estate investor’s “perfect storm” is emerging in the Denver Metro area. With historic low interest rates and historic low vacancy rates, combined with a significant market adjustment in residential real estate prices, real estate investors are presented with a near perfect opportunity. From an article by John Rebchook, current metro vacancy rates are hovering around 1.4% with an average of just under 30 days on the rental market, to find a renter. Equally important mortgage interest rates are at historic lows, even for investor financing. Investors with 20-25% down are able to cash flow their rental properties right after closing, providing a safer harbor for their investment dollars than the stock market.

Utilizing my vast experience in understanding market value, I have a number of strategies and methods to help clients indentify the right investment opportunity. Also, I can provide extremely competitive property management services for my clients. Contact me today for more information.

Colorado Foreclosure Rate Continues Downward Trend – May 18, 2011

Mitch Shannon — Wed, 18 May 2011 21:10:44 +0000

The foreclosure rate in Colorado contintues to show improvement since the beginning of 2011. According to the Colorado Division of Housing, both foreclosure filings and foreclosure sales were down, when compared to 2010. ”In year-to-date comparisons, comparing the first four months of 2010 with the same period of this year, foreclosure filings were down 33.2% and sales at auction were down 18.0%” While there was a slight increase in filings from March 2011 to April 2011, of approximately 4%, sales at auction fell 11.6% during the same period. Athough it is still early in the year and several economic factors remain tenuous, at best, the foreclosure trend appears to be headed in the right direction. See the graph below.

Denver Metro Foreclosure Rate April 2011