Real estate is bouncing back
It's all good. Real estate in Teller County is roaring back after a crushing four years of the Great Recession. How good is it?
“Who would think that January 2013 would get off to the strong start it has already,” said Joe Tanis, Realtor with the Tanis Team at Remax Performance in Woodland Park.
A report from the co-founder of ReMax, Dave Liniger, predicts more of the same for the remaining 11 months for Colorado real estate.
The Tanis Team, Joe, Irene and Stephanie, responds to Liniger's predictions:
●More homebuyers and sellers will come back to the market. “People in Teller County who got discouraged and decided to put things on hold are back,” Joe Tanis said.
●Home sales will rise by 6 or 7 percent and prices by 3 to 4 percent. “Between the short sales and foreclosures, homes lost up to 4 percent of their value. People don't realize how far back prices fell during the recession,” Irene Tanis said.
● Inventory of homes for sale will hit a bottom. “It already has in Teller County; we've been past the bottom for about 9 months,” Stephanie Tanis said.
● Higher-priced homes are beginning to sell. “We sold a lot of homes in the $350,000 to $400,000 range in the spring,” Stephanie Tanis said.
●Distressed property numbers continue to fall. According to Pam Cronce, Teller County's deputy public trustee, foreclosures have been back and forth. From 320 in 2010 and 210 in 2011, foreclosures increased to 223 last year. With the optimistic outlook for 2013, homeowners have a better chance of saving their homes. “People who are slightly upside down will not be as prices keep going up,” Joe Tanis said.
While some homeowners have been helped by the federal loan modification program the Tanis team is unimpressed. “Most people we've talked to get so frustrated with the long process they just give up,” Joe Tanis said.
●Shadow inventory continues to fall. “Shadow inventory is when banks are holding properties and not putting them on the market,” Stephanie Tanis said.
●The number of short sales will rise to a peak. “People are hanging on as long as they can,” Irene Tanis said.
●Record low mortgage rates rise slightly by year-end. In January, interest rates were 3.2 percent for a 30-year fixed mortgage and around 2.8 percent for 15 years. “It's the best time for buyers, low interest rates and low prices on houses,” Stephanie Tanis said. “When does that ever happen?”
●Lending remains light. “It's hard to get a loan in 30 days with all the red tape involved,” Joe Tanis said. “With all the governmental restrictions, it really does take 40 to 45 days.”
In response, Irene Tanis, who has been in the business for more than 30 years, emphasizes that patience is still a virtue. “You just have to take care of one problem at a time,” she said.
● Home affordability remains the best in years. “Interest rates are good now; we don't know from day to day what's going to happen,” Irene Tanis said.
The Tanis Team is counting on an increase in home sales with the growth in Woodland Park, which includes the openings of Family Dollar, Wommack's Ministries and O'Reilly's Auto Parts.
In addition, Pikes Peak Regional Hospital is a prime mover in Teller County's real estate. “People call us and ask how far a certain property is from the hospital,” Stephanie Tanis said.
This year is the 40th anniversary of ReMax in Colorado founded by the Linigers, Dave and Gail, who live in Castle Rock.