Western Colorado Real Estate News and Views presented to you by Mehdi Sepahi
    

Mid 2008 Edition

Hello!
The year so far has been busy and rewarding. In addition to real estate, I’m coaching youth soccer again this season through the Montrose Rec. District and I continue to be an active member of th Montrose Rotary Club. With the school year now in full swing, our three boys are all doing great at the same schools their mom attended (Oak Grove and Centennial).

Looking back over my third year in real estate here in Montrose, I want to thank all of my wonderful clients for making those first years a rewarding success! It has truly been my pleasure to assist you in your real estate transactions. I am also very satisfied with my move to Tower Realty. I’m excited by their innovative, forward-thinking attitude. Tower’s active marketing for both internet and print media brings the best possible exposure to sell your home or property. If you have not been in the beautiful Tower Realty office building, I encourage you to stop by for a visit.

“What’s the Market doing in Montrose?”
by Lynn Vogel, Comparable Sales Research

“A turbulent year for the real estate industry, 2007 has been”, as Yoda would say.
A lot of pressure has been placed on the industry with the continuing mortgage crisis along with the decline in the real estate sales and dollar volumes nationwide. Here in Montrose County we have been seeing a softening in the number of sales since 2005, with a 7.55% decline between 2005 and 2006. For 2007 we could see approximately a 25% decline from 2006. Even with the predicted decline, the numbers are still healthy holding at around those experienced in 2004.

SEPTEMBER 2008 UPDATE: Declines and some stabilization were the name of the game during the first two quarters of 2008 in the single-family market for Montrose County. The number of single-family sales and the total dollar sales declined for the first two quarters in the County overall. Yet, the median sales price for single-family homes in the City of Montrose saw a .6% increase in the first quarter, and a 25.6% increase during the second quarter of year. It is projected, that if sales remain the same, the median sales price in the City of Montrose could increase 4.6% in 2008.

Lynn Vogel (CSR) has been active in the real estate research business since 1985. She has researched and compiled extensive reports on the real estate markets in Montrose, Delta and Ouray Counties. Using a unique data collection method, CRS publishes a variety of reports regarded as the area’s most authoritative and timely housing data.

Lynn Vogel (CSR) has been active in the real estate research business since 1985. She has researched and compiled extensive reports on the real estate markets in Montrose, Delta and Ouray Counties. Using a unique data collection method, CRS publishes a variety of reports regarded as the area's most authoritative and timely housing data.

IS THE TIME TO BUY NOW?

One of the most common questions real estate investors ask is, “Should I be buying now in this market?”

Indications are that, yes, this is a great time for investors to buy. The Colorado market is not in the kind of trouble faced by many other areas of the country.

The FHA loan revival will help moderate income households buy their first homes.
In his best selling book, “The Millionaire Real Estate Investor,” Gary Keller talks about market timing, which is one of the most misunderstood concepts in investing.

“When people say timing is important they are correct,” Keller says. “Timing is not only important, it’s critical to investment success. The economy is cyclical. Markets are cyclical.

Buying and selling opportunities are created by the ebb and flow of the cycles. What is misunderstood is the way timing is actually accomplished.”

What Gary Keller says is true. Market timing is about being active. Great opportunities cannot be found sitting on the sidelines watching. The best deals come from the best opportunities, and the best opportunities go fast. Investors need to buy in a way that lets them afford real estate cycles, and investors must know where they are in the current market cycle. The best way to find out about the market is by talking with local market experts.

Historically, for every two new jobs created one new home buyer enters the market. But as more people stay on the sidelines the number of buyers does not grow as fast as expected.

“Once people look past the headlines they ‘ll see this is actually a very good time to buy.” says Lawrence Yun, National Association of Realtors vice president of research. “Inventories are flush, prices are moderating, and interest rates remain historically low.

Once the psychology catches up to our real market conditions, that pent-up demand will be released.” Investors should take such words to heart, especially in the Montrose and Delta areas. All of these factors are making our market a very attractive place to invest in real estate.

Do You Know Any Buyers For These Properties?