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We have felt lucky since moving to Broomfield, kind of like we found a “hidden” gem. Well the secret is no longer a secret. ”Money” Magazine has let the cat out of the bag. Broomfield was named the 19th best city in the United States to live in. It really is hard to keep a secret.
Broomfield is a community with a healthy mix of homes, ranging from cozy starters to executive mansions. An abundance of parks, trails, recreation facilities and first class shopping make our city a great place to call home. With a median income of almost $97,000 and a median home price of $260,000 it has something for everyone.
Still wondering what else would make Broomfield such a great place to live? How about easy access to over 3,000 restaurants, 31 movie theaters, 65 public libraries, all within 15 miles. Then there are the 7 museums, and 149 golf courses al within 30 miles. If you are into winter sport there are 15 ski resorts within 100 miles. It really is quality of life. Great schools and great people – really hard to beat. We call it home.
Buying a house is usually a tough decision, even in the best of times. With all the turmoil in the economy in general, and the real estate market in particular, is now a good time to buy a house?
In short, YES!!!
Real estate prices are very attractive right now. In many areas of Denver you can buy a house for less than 50% of the price you would have paid only 3 short years ago. This does not mean that house prices cannot decline further, but with many houses selling below replacement cost, it does indicate that prices should not decline any more. If you have been following the real estate market over the last several years, you are aware that prices in the Denver area have stabilized, and are starting to increase in many areas. This is especially true in lower priced houses and starter homes. Investors have bought many of these houses, renovated them, and placed them back on the market at attractive prices.
The Federal Government’s tax credit of $8,000 for first time home buyers and $6,500 for current home owners is a big bonus for anyone buying a house now. This gift from the government will help many people be able to afford a house that they may not be able to buy otherwise. When you factor in the very low interest rates available on mortgage loans in today’s market, you have the perfect storm of affordability for housing. We may not see all these factors come together for another generation or more.
There are over 10,000 foreclosed properties for sale in Colorado. Are there more foreclosures in the future? It depends on several factors and how they play out.
If the economy continues to show signs of improvement, however slight, this should mean that more borrowers will be able to find or keep jobs which will allow them to make the mortgage payments on their homes. Banks have been offered financial incentives from the Federal Government to work out loan modifications with borrowers who have temporary financial difficulties, allowing them to remain in their homes.
Real estate values need to rise in general to make it more attractive for borrowers to try to keep their house. If the home owner owes more in loans than the house is worth, it really makes financial sense for them to walk away from the house. Of course, this will lead to a rise in the number of foreclosures.
Many lendings institutions have been reluctant to foreclose on borrowers who are in default on loans where the loan amount greatly exceeds the value of the house. Banks are trying to work out payment plans, loan modifications, or forbearance agreements, if they feel that borrower’s financial problems are temporary. The banks realize that if they foreclose on these properties and place them for sale on the real estate market, this will only depress prices further. How many of these types of situations are out there is hard to determine, but this is the wild card in the real estate deck.