THE MARKET
Active Homes on the Market as of 3/31/08: 25,516
Active Homes on the Market as of 3/31/07: 26,398
Change: - 3.46%
Homes Under Contract as of 3/31/08: 5,874
Homes Under Contract as of 3/31/07: 6,108
Change: - 4.05%
Homes SOLD in March 2008: 3,709
Homes SOLD in March 2007: 4,191
Change: – 13.22%
WHAT IT MEANS
The story is mixed in this month's sales numbers from Metrolist.
In comparing 2008 activity to 2007 activity, it's almost as if we are comparing apples to oranges, because the world of financing today is totally different than it was one year ago.
For example, almost every loan program has a higher down payment requirement today than it did 12 months ago. 100% financing products from a year ago often require a down payment of 3% or more today. 97% LTV products a year ago now require 5% down, and so on. And popular loan products like "stated income", "no doc" and "reduced doc" have almost totally disappeared from the lending landscape.
Underwriting guidelines are much tighter today, with lenders under extreme scrutiny and banks only willing to finance the safest of deals.
So if many of the "tools" buyers used to purchase homes have been taken away, it's totally logical that you would see a drop in sales activity.
Having said that... the number of transactions closed in March surged over 23% higher than the number closed in February, and homes under contract increased by almost 15% over one month earlier.
REO, or bank-owned inventory, FELL in Colorado last Month. In fact, Colorado was one of only nine states to see fewer REO properties come on the market in March of 2008 than in March of 2007. Nationally, foreclosure properties increased by 57% over the previous 12 months, while in Colorado REO inventory fell by 1.39%.
That is a key trend to watch, because once our foreclosure inventory starts to burn off, our market will start to look a whole lot healthier.
Active Homes on the Market as of 3/31/08: 25,516
Active Homes on the Market as of 3/31/07: 26,398
Change: - 3.46%
Homes Under Contract as of 3/31/08: 5,874
Homes Under Contract as of 3/31/07: 6,108
Change: - 4.05%
Homes SOLD in March 2008: 3,709
Homes SOLD in March 2007: 4,191
Change: – 13.22%
WHAT IT MEANS
The story is mixed in this month's sales numbers from Metrolist.
In comparing 2008 activity to 2007 activity, it's almost as if we are comparing apples to oranges, because the world of financing today is totally different than it was one year ago.
For example, almost every loan program has a higher down payment requirement today than it did 12 months ago. 100% financing products from a year ago often require a down payment of 3% or more today. 97% LTV products a year ago now require 5% down, and so on. And popular loan products like "stated income", "no doc" and "reduced doc" have almost totally disappeared from the lending landscape.
Underwriting guidelines are much tighter today, with lenders under extreme scrutiny and banks only willing to finance the safest of deals.
So if many of the "tools" buyers used to purchase homes have been taken away, it's totally logical that you would see a drop in sales activity.
Having said that... the number of transactions closed in March surged over 23% higher than the number closed in February, and homes under contract increased by almost 15% over one month earlier.
REO, or bank-owned inventory, FELL in Colorado last Month. In fact, Colorado was one of only nine states to see fewer REO properties come on the market in March of 2008 than in March of 2007. Nationally, foreclosure properties increased by 57% over the previous 12 months, while in Colorado REO inventory fell by 1.39%.
That is a key trend to watch, because once our foreclosure inventory starts to burn off, our market will start to look a whole lot healthier.
