"SHATTERED DREAMS: Buying beats renting in most cities, studies find"

By James Rosen Published April 05, 2012 | FoxNews.com advertisement "I feel like we've been losing money for the last five years," Laura Logerfo said wistfully.

After a long spell as renters, Laura and her husband Vincent Pickett, both government workers, have just clinched a deal to buy a house in North Arlington, Va., right outside the nation's capital. 

The notion that renting is ultimately more costly than buying had lingered on Laura's mind for some time. "That was what your parents always tell you, and I realize now that (my mother) is actually kind of right," she said.

More Americans may soon reach a similar conclusion. A recent study of residential units in America's most populous 100 metropolitan areas by Trulia, a real estate website, found buying to be less expensive than renting in 98 of the areas -- with Honolulu and San Francisco the exceptions.

"That's a big shift since the height of the housing bubble," said Jed Kolko, chief economist for Trulia. "We've seen (home) prices fall so much, and at the same time rents have been rising in many cities."

The trend found by Trulia is confirmed by an array of other studies and reports. The Wall Street Journal recently found that between January 2011 and January of this year, median rents rose 3 percent, while home values fell 4.6 percent. Another survey of metropolitan areas by real estate website Zillow reported that in 2011 nearly 70 percent of cities saw rental prices increase, while home prices increased in only about 7 percent of cities. And Zillow found a 3 percent rise in rental prices nationwide.

"With the mortgage rates as they are now, it seems like it's the best time to kind of grab them before they go back up," Logerfo told Fox News. 

"We spent a lot of time sort of looking at the rates and trying to figure out what was within our budget," Pickett agreed, "and then we dove in."

The aspiration to own a home remains a core tenet of the American Dream. The latest National Housing Survey by Fannie Mae found that most Americans -- across all demographic groups and income levels -- regard home ownership as more sensible than renting. 

Indeed, the study found two-thirds of current renters saying they expect to buy a home in the future.

According to figures kept by the U.S. Census Bureau, the national home ownership rate at the end of 2011 was 66 percent -- down about half a percentage point from the same time in 2010, and down three-and-a-half points from the seasonally adjusted peak reached, at the height of the housing boom, in late 2004.

That many people continue to rent is most likely a reflection of the enduring difficulty of securing a mortgage, experts said.

"Credit's harder to get than it was, certainly, during the bubble," economist Kolko told Fox News. "Because we're just coming out of this recession, lots of people are either still unemployed, or they're not secure enough about where they are in their job to be ready to buy. And many people -- especially those who've lost their homes or fall behind on payments -- now can't qualify for a mortgage."

The Fannie Mae survey found that certain groups -- among them those with lower education levels and lower incomes, African-Americans and Hispanics -- were most likely to cite poor credit or the difficulty of navigating the mortgage process as their reasons for not purchasing their own homes.

Fox News’ Paige Kollock contributed to this report.

Read more: http://www.foxnews.com/us/2012/04/05/shattered-dreams-buying-beats-renting-in-most-cities-studies-find/print#ixzz1rIAWZYF1

"Douglas kids living the sweet life"

Jane Reuter jreuter@ourcoloradonews.com | Posted: Wednesday, April 4, 2012 4:17 pm

Douglas County’s children are thriving, awash in more advantages than other places in Colorado, according to the results of a state survey released March 27.

The 2012 Kids Count in Colorado report ranks Douglas tops for childhood well-being among the state’s 25 largest counties. Those counties, survey representatives say, include 95 percent of the state’s children.

The annual study, a publication of Colorado Children’s Campaign, is based on rates that include poverty, literacy, teenage pregnancy and infant mortality. Broomfield and Larimer counties ranked second and third best, with Denver County at the bottom.

It’s good news for Douglas County, said Colorado Children’s Campaign president and CEO Chris Watney, but not surprising.

“The overall child well-being rate correlates so closely with child poverty rates that I did expect to see Douglas County do very well, if not top the list,” she said. “When compared to some other places in the state, it is a very prosperous place and a good place for kids to live.”

Douglas County ranked sixth on MSN Money’s most recent list of the nation’s wealthiest counties. Its median household income is nearly double the national average.

The Kids Count survey is in its 19th year, but 2012 is the first time the Colorado Children’s Campaign has ranked the counties’ results.

Among 12 categories the report uses to assess children’s quality of life, Douglas County ranked first in six, including the lowest percentage of children living in poverty and uninsured, the smallest percentage of families relying on low-cost food, lowest teen birth and infant mortality rates, and smallest rate of births to women with less than a high school education.

The school district plays heavily into quality of life, and is among the reasons many families choose to live in Douglas County.

“As superintendent of a great school district and parent of two young children, I’d be the first to tell anyone Douglas County is a great place for children,” school superintendent Liz Fagan said. “I was very proud to see it in print, to see the data correspond to my personal experience of living and working in Douglas County.”

The Kids Count survey provides an indication of a child’s life path. In Denver County, for instance, more than half of the fourth-grade students are not reading at their grade level.

“When you look at those numbers, you start to see a picture of kids who are not going to succeed in school or life,” Watney said. “Colorado is really a story of disparity when it comes to a child’s well-being. There are pockets of place where we know kids are doing really well, and Douglas County seems to be a place where more kids are doing well than not.”

But statewide, a high percentage of children fall both well above and well below the averages, with fewer clustered around the middle. Watney believes there’s a disconnect in some areas between quality jobs and quality education.

“Colorado is a great place to live and a lot of very well-educated people will move here and take some of the very well-paying jobs,” Watney said. “But we aren’t necessarily educating our children well enough that they are able to take jobs and life themselves and their families out of poverty. The state’s economy, in the future, really relies on our ability to prepare the kids who live here to succeed.”

Further darkening the picture, 2010 U.S. Census Bureau statistics show the numbers of Colorado children living in high-poverty areas rose sharply over the last decade, from 2 percent in 2000 to 8 percent in 2010.

In wealthy areas, those statistics often are overlooked, and the issues they point to insufficiently addressed.

“For a county like Douglas to have historically been very prosperous, sometimes it’s even harder to address some of the needs of families and kids who are struggling because there aren’t necessarily systems in place to do so,” Watney said. “While it’s great you have a history of being an economically strong county, it does mean you may not have enough experience in how to support families that are struggling.” 

Posted from: Highlands Ranch Herald 

Ask the Hard Questions

If you are considering buying or selling a home, selecting your agent is the first important decision you will have to make. There are many qualified REALTORS out there, so it’s important to decide on a professional who will understand your needs and preferences – someone whom you can respect and trust. Nearly four out of five home buyers and sellers enlist the help of a real estate professional or broker. Here are some questions to consider when choosing an agent. (The responses in blue are how I would answer.)

1. How long have you been a real estate professional? 10 years, since 2002.
2. Do you work full or part time?  I am a full time Realtor focused on serving you.  This is my chosen career.  I am a member of the National Association of Realtors and the South Metro Denver Realtors Association.  I am currently ranked among the top 5% of Realtors in Denver. 
3. Since selling a home involves real estate and marketing expertise, what is your experience in real estate and marketing?10 years in real estate and 20 years in marketing.  I have the experience to effectively market your home and handle everything from the first offer through closing. In addition to Realtor.com, etc my sellers receive a dedicated website just for their home.  
4. What type of interent marketing will you do for my home? Their home's website address is easily searchable through various websites.  It is also posted on the For Sale sign and in all marketing materials.
5. How well do you know the market and have you been working in this area?  In addition to being a full-time Realtor, I have lived in Littleton since 1966 and in Highlands Ranch since 1986.  No one knows and understands this market like I do.  
6. What type of homes do you usually handle? Residential, condo, new construction, & existing homes.  
7. How do you determine my home's value? Research, research, research!  This includes not just the sale of homes in the area but knowledge of market trends and years of experience in order to get the maximum amount possible. 
8. How much business comes from repeat customers or referrals? over 80%. 
9. How often do you update your clients, regardless of any progress? Once a week.  
10.  Where does the closing take place? Usually it is in your home, not at the title company.  This is different from what most sellers are used to doing.  I conduct all my own closings, not the title company.  
11. Do you have a performance guarantee?  Yes.  If you aren't satisfied - fire me!  It's that simple.

Above all, you should choose an agent with whom you feel comfortable and are well suited to your demands. Your real estate professional will be your guide through the entire process of buying or selling a home, and can be a valuable resource.


I would love to hear from you and have the opportunity to discuss if we may be right for you. You may also find it worthwhile to explore my website — it allows you to perform very detailed searches using search fields. I think you will also find that it has plenty of information to cover many of your real estate questions.


If you have questions about moving, building, selecting your first home or moving up to your next home, contact me, Brook Willardsen.

Are You Pre-Qualified or Pre-Approved?

If you’re considering the purchase of a home, you may be concerned with the issue of finance. Attaining the right mortgage is key in the home buying process, but it doesn’t have to be a stress-inducing one. Most lenders offer pre-qualification, pre-approval or both to help you know where you stand.
If you have a home on the market, you will want to know that your seller is pre-approved or pre-qualified. Let me explain the difference between pre-qualification and pre-approval:

Pre-qualification: is a preliminary estimate of how much you can afford to pay for a home based on information you provide. Because credit and employment information aren’t validated for pre-qualification, it can only be considered a rough idea of a monthly mortgage payment and loan size. This can be a useful guide as you begin the home buying process, however.

Pre-approval: Pre-approval is a written commitment from a lender to finance your home purchase up to a set amount. This indicates that the lender has taken a close look into your financial history and has agreed to lend you a specific amount of money, reliant on certain details like a finalized sales contract and professional inspection. Pre-approval indicates to sellers that you are a serious homebuyer.
Regardless of which option you utilize, or even if you take both steps, you’ll be able to shop with much more confidence. Why wait until you find the perfect home to discover problems with obtaining a mortgage? Or, if the determining factor between two homes is the amount of property tax, are both in your budget?

I have great relationships with different lenders that are trust-worthy and hard working to get you the right kind of loan for your budget, at my disposal.  If you have questions about pre-qualifying, getting pre-approved, moving, building, selecting your first home or moving up to your next home, contact me, Brook Willardsen.

Time Saving Tips for Moving Day

Dreading Moving Day? Most people do, but we’ve found that planning your move well in advance can make things go much smoother. It’s also important to know what to expect on moving day itself. Feel free to print this list of helpful hints to guide you thru moving day.

“Last Load” box – Save back a large box for daily-used items that will need to come out first at the new home. Use this box for stripping your bedding the morning of your move. Also use this box for the alarm clocks, daily medications, 2 or 3 towels and wash cloths, paper towels and window cleaner.
Prepare the necessary rooms – If possible, clean and set-up the basics in the kitchen and bath areas before the big day. Place necessities in an obvious location – plastic cutlery, cups and plates and paper towels on the kitchen counter. Your bath should have soap, paper towels, toilet paper and a first aid kit available.
 Clear a path - Keep packed boxes in a room close to the door but out of the way. Keep an eye out for any obstacles that could block carried furniture such as railings or fence gates and temporarily remove them if necessary. Place non-slip rugs in any high traffic areas that could be potentially dangerous.
Call the sitter – It is best to leave small children and pets with a friend or sitter during the confusion and bustle of the move itself. At a minimum, your family pet should be confined, as even the nicest of animals can find a way to be dangerous underfoot.
Keep everyone refreshed – Whether you’re using professional movers or family and friends, make sure that everyone is comfortable and hydrated. If it is a hot day, provide lots of cold beverages and snacks. On cold days, offer hot chocolate or coffee. Ordering pizza for lunch is a nice way to show everyone you appreciate all the hard work.
Keep neighbors (old and new) happy – Keep the moving truck from blocking other driveways or mail box delivery, and make sure no one walks through your neighbor’s lawn or flowerbeds. Move during the day to avoid disturbing the neighborhood.
Last walk-through – Be sure to leave your old house as clean as you’d hope to find your new one. Check one last time for any forgotten items, and then lock all doors and windows.
Coordinate your move – If using professional movers, ask any remaining questions, finalize all contact information, and sign both the bill of loading and inventory sheet after careful review. Go over the destination address and projected route, as well as expected travel time.

If you have questions about moving, building, selecting your first home or moving up to your next home, contact me, Brook Willardsen.

Five Great Things about Homeownership

If you've been on the fence about homeownership, now is the time to take a leap! Don't let the negative press deter you from one of life's greatest joys.

Take a look at five short and sweet reasons that homeownership is great!

1. Equity. When you pay rent, you never see that money again. It is lining the landlord's pocket. Yes, buying a home may come with some hefty initial costs (downpayment, closing costs, inspections), but you will make that money back over time in equity built in the home. Historically, homes appreciate by about 4 to 6 percent a year. Some areas are still experiencing normal appreciation rates. For the areas that have seen harder times since the recession, experts feel that the housing market will recover. Homeownership is about building long-term wealth. A home bought for $10,000 in 1960 is most likely worth 10 times that in today's market.

2. Relationships: Renters tend to see their neighbors come and go quickly. Some people sign year leases while others are in the community for much shorter terms. Apartment complexes also tend to have less common shared space for people to meet, greet, and socialize. Homeowners, however, have yards, walking trails, or community pools and clubhouses where they can get to know each other. Neighbors stay put much longer (at least three to five years if they hope to recoup their closing costs). This means more time to develop relationships. Research has shown that people with healthy relationships have more happiness and less stress.

3. Predictability: Well, as long as you have a fixed-rate term on your mortgage it's predictable. Most people buying homes today know that a fixed-rate is the way to go. This means your payment amount is fixed for the life of the term. If your mortgage payment is $500 today, then it will still be $500 a month in 10 years. This allows for people to budget and make solid financial plans. The sub-prime crisis meant many homeowners with adjustable rate mortgages saw their monthly payments rise and then rise some more. Homeownership, though, generally comes with a predictable table of expenditures. Even the big purchases are predictable. You know most roofs last just 15 years (or so). You know that each year you'll need to pay for the gutters to be cleaned, and so on.

4. Ownership: Okay, this is a given. Homeownership means you "own" your home. That comes with some incredible perks, though! You can renovate, update, paint, and decorate to your heart's desire. You can plant trees, install a pool, expand the patio, or do holiday decorating that would rival the Kranks (if the HOA allows!). The bottom line is this is your home and you can personalize it to your taste. Most renters are stuck with the same beige walls and beige carpet that has been standard apartment decor for 20 years. Now is your chance to let your home speak!

5. Great Deals: It's a great time to buy. Interest rates are at historic lows. We're talking 4.0 percent instead of 6.0 or higher. This means big savings for today's buyers. Home prices have also taken a dip since the recession, which means homes are more affordable than ever. If you have steady income and cash for a downpayment, then be sure to talk to your local real estate agent about what homes in your area could be a fit for you.

Homeownership can be a real joy. It's time to get off the fence and into a home that is right for you!  

by Carla Hill (http://realtytimes.com/rtpages/20111102_great.htm)

If you have any questions about moving, building, selecting your first home or moving up to your next home, contact me, Brook Willardsen.

Homeownership Rate Rises After Two Years of Decline

After falling to a 13-year low during the second quarter, the homeownership rate posted a highly unexpected rise in the third quarter, according to a Census Bureau report released Wednesday.

With foreclosures forcing homeowners out of their homes and buyers waiting on the sidelines as home values declined, the homeownership rate has been on the decline for quite some time.

In fact, according to Bloomberg, the third quarter rise is the first in two years.

However, the 0.4 percent increase, which brought the homeownership rate to 66.3 percent for the third quarter, was not enough to post an annual increase.

The current homeownership rate remains 0.6 percent below the rate recorded in the third quarter of 2010.

Furthermore, according to the Census report, when the current rate is seasonally adjusted – which brings it to 66.1 percent – it is “not statistically different from the rate last quarter” – an even 66 percent.

Homeowner vacancy rates fell 0.1 percent in the third quarter arriving at 2.4 percent.

At the same time, rental vacancies rose 0.6 percent arriving at 9.8 percent.

Despite this shift, Capital Economics says in response to the Census findings, “The modest increase in the rental vacancy rate in the third quarter does little to alter our view that rental yields will soon rise above 5.5%, comfortably beating the yields available on Treasuries and equities.”

“Meanwhile, the homeownership rate remains at a level that suggests America’s love-affair with housing is still on the rocks,” Capital Economics adds.

About 85.8 percent of housing units were occupied in the third quarter.

The region with the highest homeownership rate was the Midwest with a rate of 70.3 percent, while the lowest homeownership rate was seen in the West at 60.7 percent.

The Northeast and South feel in between at 63.7 percent and 68.4 percent respectively.

At 76.1 percent, West Virginia had the highest homeownership rate. The state was followed closely by

Mississippi with a 70 percent homeownership rate.

The lowest homeownership rate was seen in the District of Columbia, where the rate for the quarter was 44.3 percent. New York followed with 54.4 percent.

Nevada and California – states hard-hit by the housing crisis – were also in the bottom five with homeownership rates of 55.3 percent and 55.9 percent respectively.

By: Krista Franks (http://www.dsnews.com/articles/homeownership-rate-rises-after-two-years-of-decline-2011-11-02?utm_source=twitterfeed&utm_medium=twitter)

If you have any questions about moving, building, selecting your first home or moving up to your next home, contact me, Brook Willardsen.

Mortgage rates stay in the basement

Survey shows slight uptick in demand for purchase loans

By Inman News, Thursday, November 3, 2011.

Inman News™

Mortgage rates sagged this week as ongoing concerns about the European debt crisis had investors fleeing to the relative safety of mortgage-backed securities that fund most U.S. home loans.

Rates on 30-year fixed-rate mortgages averaged 4 percent with an average 0.7 point for the week ending Nov. 3, down from 4.1 percent last week, Freddie Mac said in releasing the results of its latest Primary Mortgage Market Survey.

At this time a year ago, rates on 30-year fixed-rate mortgages averaged 4.24 percent before climbing to a 2011 high of 5.05 percent in February. Rates on the "plain vanilla" fixed-rate loan hit an all-time low in records dating to 1971 of 3.94 percent during the week ending Oct. 6.

Rates on 15-year fixed-rate mortgages averaged 3.31 percent with an average 0.7 point, down from 3.38 percent last week. The 15-year fixed-rate loan averaged 3.63 percent at this time last year before climbing to a 2011 high of 4.29 percent in February.

The the 15-year loan, a popular refinancing option, hit an all-time low, in records dating to 1991, of 3.26 percent during the week ending Oct. 6.

Rates on five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) loans averaged 2.96 percent with an average 0.6 point, down from 3.08 percent last week.

The five-year ARM averaged 3.39 percent a year ago before hitting a 2011 high of 3.92 percent in February. Rates on five-year ARMs tied an all-time low, in records dating to 2005, of 2.96 percent -- last seen during the week ending Oct. 6.

For one-year Treasury-indexed ARM loans, rates averaged 2.88 percent with an average 0.6 point, down from an average 2.9 percent last week. At this time last year, the one-year ARM averaged 3.26 percent before climbing to a 2011 high of 3.4 percent in February.

Rates on one-year ARM loans hit a low, in records dating to 1984, of 2.81 percent during the week ending Sept. 15.

Looking back a week, a separate survey by the Mortgage Bankers Association showed a modest increase in demand for purchase mortgages.

The MBA's Weekly Mortgage Applications Survey showed requests for purchase loans were up a seasonally adjusted 1.8 percent from the previous week, ending Oct. 28. Demand for purchase loans was down 2.1 percent from a year ago, and requests to refinance accounted for 77.1 percent of all mortgage applications.

In an Oct. 17 forecast, economists at Fannie Mae said they expect rates on 30-year fixed-rate mortgage loans to average 4 percent next year and 4.2 percent in 2013.

-Inman News  (http://www.linkedin.com/news?actionBar=&articleID=887225542&ids=0PcjkUc3oPejwIdP0PcjcOdPwUb38QdjkOczsUe2MMdzwRczwQe3wIdPoTe38RcPwU&aag=true&freq=weekly&trk=eml-tod-b-ttle-44&ut=0EjU3KyrISTQY1)

If you have any questions about moving, building, selecting your first home or moving up to your next home, contact me, Brook Willardsen.

3 Tips I do to help YOU tackle your down payment

"The many dimensions of buyer readiness all boil down to two major factors: motivation and cash on hand. Our recently released American Dream Home Survey showed that there are plenty of renters that hope to one-day own a home. Our stats showed just fewer than 60 percent of those surveyed intend on purchasing a home. That means motivation isn’t the primary issue.

So what’s intimidating your future clients? The down payment.

When it came down to home buying obstacles, the down payment was the single largest hurdle ownership hopefuls said they are facing. In an era of a fluctuating stock market, high-consumer debt levels, and rising costs to rent, it’s hard for tomorrow’s homeowners to put pennies aside to reach their dream.

So how do you help the consumer with too little cash on hand?

1) Know your financing

Every buyer’s circumstances, credit history, and resources are different. It pays for an agent to know the government programs and local lenders who provide down-payment assistance. While special financing programs won’t help in every scenario, checking into your local and federal options will help you inform your potential clients of how much work stands between them and the homeownership dream.

2) Be straightforward

Home ownership is a rosy thought for many. However, as an agent one of your greatest responsibilities is to be an advisor. That means you have to be willing to tell your buyers the truth. And if home ownership is not within reach right now, be willing to say so and use the opportunity to advise and help your clients over the savings and down payment hurdles.

3) Encourage some good ole fashioned savings

When it comes to ownership, nothing beats preparation. When assistance programs fail, encourage your buyers to do things the old fashioned way. That means first figuring out what they can actually afford (check out this post for tips on figuring out affordability) and two encouraging your clients to come up with a savings plan.

The down payment hurdle is a serious obstacle for buyers and agents, but for the agents who take the time to counsel their buyers and help them over it, there’s a commission on the other side."

-Jovan Hackley, http://pro.truliablog.com/

If you have any questions about how I can help you find save to select your first home or moving up to your next home, contact me, Brook Willardsen.

It's Time to Buy That House

"U.S. house prices have plunged by nearly a third since 2006, and homeownership rates are falling at the fastest pace since the Great Depression.

The good news? Two key measures now suggest it's an excellent time to buy a house, either to live in for the long term or for investment income (but not for a quick flip). First, the nation's ratio of house prices to yearly rents is nearly restored to its prebubble average. Second, when mortgage rates are taken into consideration, houses are the most affordable they have been in decades.

Two of the silliest mantras during the real-estate bubble were that a house is the best investment you will ever make and that a renter "throws money down the drain." Whether buying is a better deal than renting isn't a stagnant fact but a changing condition that depends on the relationship between prices and rents, the cost of financing and other factors.

But the math is turning in buyers' favor. Stock-oriented folks can think of a house's price/rent ratio as akin to a stock's price/earnings ratio, in that it compares the cost of an asset with the money the asset is capable of generating. For investors, a lower ratio suggests more income for the price. For prospective homeowners, a lower ratio makes owning more attractive than renting, all else equal.

Nationwide, the ratio of home prices to yearly rents is 11.3, down from 18.5 at the peak of the bubble, according to Moody's Analytics. The average from 1989 to 2003 was about 10, so valuations aren't quite back to normal.

But for most home buyers, mortgage rates are a key determinant of their total costs. Rates are so low now that houses in many markets look like bargains, even if price/rent ratios aren't hitting new lows. The 30-year mortgage rate rose to 4.12% this week from a record low of 3.94% last week, Freddie Mac said Thursday. (The rates assume 0.8% in prepaid interest, or "points.") The latest rate is still less than half the average since 1971.

As a result, house payments are more affordable than they have been in decades. The National Association of Realtors Housing Affordability Index hit 183.7 in August, near its record high in data going back to 1970. The index's historic average is roughly 120. A reading of 100 would mean that a median-income family with a 20% down payment can afford a mortgage on a median-price home. So today's buyers can afford handsome houses—but prudent ones might opt for moderate houses with skimpy payments.

For example, the median home in the greater Phoenix market, including houses, condos and co-ops, costs $121,700, according to Zillow.com. With a 20% down payment and a 4.12% mortgage rate, a buyer's monthly payment would be about $470. Rent for a comparable house would be more than $1,100 a month, according to data provided by Zillow.com.

Of course, all of this assumes mortgages are available—no given now that lending standards have tightened. But long-term data on down payments and credit scores suggest conditions are more normal than many buyers think, according to Stan Humphries, chief economist at Zillow. "If you have good credit, a job and a down payment, you can get a mortgage," Mr. Humphries says. "There's more paperwork and scrutiny than five years ago, but things are pretty much like they were in the '80s and '90s."

Not all housing markets are bargains. Mr. Humphries says Zillow has developed a new price/rent ratio that uses estimates for each individual property rather than city medians, to better reflect the choices facing typical buyers. A fresh look at the numbers suggests Detroit and Miami are plenty cheap for buyers, with price/rent ratios of 5.6 and 7.7, respectively. New York and San Francisco are more expensive, with ratios of 17.6 and 17.2, respectively. The median ratio for 169 markets is 10.7.

For investors seeking income, one back-of-the-envelope way of seeing how these numbers stack up against yields for other assets is to divide 1 by the price/rent ratio, resulting in a rent "yield." The median market's rent yield is 9.3% and Detroit's is 17.9%.

Investors would then subtract for taxes, insurance, upkeep and other expenses—costs that vary widely. But suppose total costs were 4% of the purchase price. That would still leave a 5.3% rent yield in the typical market. With the 10-year Treasury yield at 2.2% and the Standard & Poor's 500-stock index carrying a dividend yield of 2.1%, rents for residential housing in many markets look attractive.

A few caveats are in order. First, not all transactions are average ones. Even in low-priced markets, buyers should shop carefully. Second, prices could fall further. Celia Chen, a senior director at Moody's Analytics, expects prices to drop 3% before bottoming early next year and rising slowly thereafter. "If the economy slips back into recession, however, we could easily see a 10% drop," Ms. Chen says.

And property "flipping" can be dangerous even when prices are rising. That is because, absent a real-estate boom, house price gains simply aren't that exciting. Research by Yale economist Robert Shiller suggests houses more or less track the rate of inflation over long time periods.

Houses aren't the magic wealth creators they were made out to be during the bubble. But when prices are low, loans are cheap and plump investment yields are scarce, buyers should jump."

—Jack Hough is a columnist at SmartMoney.com If you have any questions about moving, building, selecting your first home or moving up to your next home, contact me, Brook Willardsen. 

Buying a home?

Buying, building or selling a home is usually the largest transaction someone makes during their lifetime, and it involves many decisions that go beyond simply choosing a home or an agent that you like.

I am both a buyer specialist, a listing specialist, and have the latest technology ready at my fingertips to take your marketing to the next level. Some reasons to choose Brook Willardsen include:

FULL ACCESS to ALL homes for sale in the Metropolitan Denver market.
EXPERT knowledge of the metropolitan area will prove invaluable to you, not just in terms of real estate, but also schools, neighborhoods, the local economy, and more.  I have been a full-time Realtor for 10 years!  Plus, I grew up in Littleton, I know the area and familiar with different subdivisions in Denver.
REAL ESTATE MARKETS absolutely have their own trends and opportunities. This can vary greatly, even from one neighborhood to the next.  Denver and our diversified metropolitan area are no different!  It would be my pleasure to steer you into opportunities and out of traps.
NEGOTIATING with sellers can be stressful. After the purchase agreement is signed, there are inspections and repairs to address, mold or radon mitigation, lead-based paint considerations, lots of details. I will put my real estate knowledge and experience to work for you in order to negotiate the best possible terms and conditions. Remember, I have successfully negotiated over $10 million of real estate to the closing table JUST in 2011!
KNOWLEDGE and resources are at my fingertips for the property you are thinking about buying or the property that you haven’t found yet!  I can help you check on the latest revision in property taxes (they will change – it’s a fact of home ownership), hazard insurance rates, proposed utility changes or zoning hearings – - – Have confidence when signing documents that your home will continue to be a dream and not a nightmare.

While you can see a million homes on the web, actually buying your home is another matter entirely. Buyers, be prepared!

If you have questions about moving, building, selecting your first home or moving up to your next home, contact me, Brook Willardsen.

Tips for Home Buyers

If you’re thinking of buying a home for the first time, you might be a bit overwhelmed by it all. We know that buying a home is a large undertaking, both in terms of time and money. I would like to help you get started. Sometimes the most important thing is getting pointed in the right direction. Here are some tips that can help make your home buying process successful.

Do Your “Home”work – The perfect home won’t find you by itself. Educate yourself on local schools, neighborhoods, and the kinds of homes available. By reading available materials and talking with experts, you can start to put together your idea of the perfect home. Getting information on the Denver should be your first step!

Decide on What You’re Looking For – Settle on the home features that are most important to you: floor plan, number of baths or bedrooms, entertaining space, architectural style, etc. For example, if you have large bedroom furniture, carry around the dimensions so you’ll know if it will fit!  Memorize an ordered list of which features that are most important to you. Having well-established guidelines will easily narrow down your search and prevent you from spending valuable time on homes that lack your key amenities. This approach can help you make the decision not to buy an attractive property that doesn’t really fit your needs. My website has a search feature that allows you to filter thousands of listings based on attributes that you select.

Start Planning – Proper planning is key when buying a home. Start a filing system with sections such as home-buying, home-financing, floorplans, and service providers. By forming a home-buying plan, you can focus on the most important factors structure the entire process. My website is a great resource for property information.

Investigate Your Mortgage – Deciding on the type of financing for your home can be as important as choosing a home itself. The first step is deciding what kind of loan best fits you: a fixed-rate mortgage, or an Adjustable Rate Mortgage (ARM), FHA and other forms of financing are available, but which is best for you? There are benefits to each form of loan, and your real estate professional can provide you with more information as well as put you in contact with reputable Senior Mortgage Broker.

Get Pre-Qualified – Getting pre-qualified for a loan is simple – usually only requiring a short phone conversation with your chosen lender, and can greatly help your home search. Pre-qualification does not guarantee you a loan, but it does provide you with an estimated monthly payment and a price range to use as a guide when searching for your home. Bring pre-qualified can also indicate to sellers that you are a serious, prepared buyer. I have relationships with preferred lenders that have proven track records on getting you approved!

Relax – You don’t have to make an offer on the first home you see. Take your time to view other listings in the area and get a feel for the marketplace. When you decide to make an offer on a home, consult with your real estate professional so that all of your questions can be answered.

Protect Yourself and Ask Questions – Before you sign, make sure you understand the promises you are making. There are time frames set for financing, inspections, insurance, closing, and possession dates, just to name a few. After it is signed, the seller does not have to cooperate if your situation changes.

If you have questions about moving, building, selecting your first home or moving up to your next home, contact me, Brook Willardsen.