1505 Pearl

Where the mall ends and hip East Pearl begins sits a new mixed-use building with only five units left.

Coburn Development has a goal of sustainability at 1505 Pearl. Components such as a solar electric system with the possibility of no electric bill, renewable resources, energy efficient fixtures, better indoor air quality, water conservation and an ideal location are all built-in.

This is smart urban living just off Pearl Street Mall, offering elevator security with underground parking and storage. Upscale and modern interior finishes include hardwood floors; Caesar Stone countertops; cherry cabinets; Bosch/Wolf/Sub-Zero stainless steel appliances; Kohler/Toto/Grohe, Italian and glass tile; private terraces; fire places; pantries; and open floor plans.

The remaining units are ready for move-in, with prices ranging from $728,000 to $1,966,000. Contact me for details.

How much of costs remodelers will recoup is down – but not as much as expected

Though how much homeowners recouped from their remodeling projects dropped from 2007 to 2008 compared with the previous year, they didn’t nosedive as would be expected from the negative reports concerning the real estate market. And they certainly didn’t drop as much as they did from 2006 to 2007.

According to Remodeling magazine’s Remodeling Cost vs. Value Report 2008-09, the decline of the average cost-value ratio across all projects was only 3.86 percent, just 2.7 points down from 2007. Only three upscale projects – bathroom remodel, deck addition (composite) and siding replacement (foam-backed vinyl) – saw an increase in costs recouped from 2007 to 2008.

The new report shows the trend of smaller, lower-cost maintenance-related projects continuing as the most popular and recouping the most upon resale. Siding and window replacement occupy seven of the top 10 rankings for costs recouped. Remodeling magazine attributes that, in part, to the fact that they’re usually necessary repairs involving durable, low-maintenance materials and improve curb appeal, and partly because, at a construction cost of between $10,000 and $14,000, they’re among the lowest-priced projects in the survey. Energy efficiency and prices also play a major role in costs recouped from window replacement, especially in homes more than 15 years old in which new windows also reduce maintenance and increase curb appeal.

On the other hand, trends show that the upscale versions of deck, garage and master suite additions and roofing replacements score lower than the midrange versions – reaffirming that homeowners scale back during economic downturns, according to Remodeling magazine. And other low-scoring projects – back-up power generator, home office remodel and sunroom additions – are often not improvements worth paying for for many potential buyers.

Here’s a look at some remodeling projects, their costs, the amount recouped in resale and how the current figures compared with the last report:

Source: Remodeling magazine

Boulder named one of healthiest places to retire

The city of Boulder is among America’s Best Healthy Places to Retire, according to U.S. News.

The newsweekly cited amenities such as the Rocky Mountains, walking trails, farmers’ market, and city-staffed senior services and programs at two recreation centers that make Boulder attractive for seniors looking to live long and well. The abundance of active college students spur the seniors to stay young and healthy themselves through exercise and shopping at the many local natural-food shops.

The downside to retiring in Boulder is its cost of living, but golf isn’t so expensive, according to retirees interviewed for the article. And, with plenty of walking and bike trails to help them get around, they can at least save on gas or, as one interviewee said, they can stay home – they’re retired.

Other cities that made the list were:

• Bella Vista, Arkansas
• Green Valley, Arizona
• Issaquah, Washington
• Longmeadow, Massachusetts
• Portland, Maine
• Punta Gorda, Florida
• Reston, Virginia
• Walnut Creek, California

Declining real estate market still offers pockets of opportunity

First glance at the November real estate statistics for Boulder County indicates the local market is following the downhill trend much of the nation has been on for a while. After all, sales have dropped by double digits year-over-year for all but two market areas, and many communities saw a reduction in both average and median sales price.

But Ken Hotard, senior vice president of public affairs for the Boulder Area Realtor Association, says that while the picture will probably grow worse before it gets better, Boulder continues to show strength that will allow it to sustain the stormy weather still to come.

“I’ve been telling you for some time that things are going to get worst, and they have,” Hotard says. “It’s not going to be fun over the next 12 months, but we’ll get through it.

The communities suffering the most from the current market conditions include Lafayette, which saw an 18.8 percent drop in sales from January through November 2007 compared with January through November 2008; the plains, which had a 28.8 percent drop in sales; and Superior, with a 29.1 percent reduction in sales for year over year. In the city of Boulder, 17.5 percent fewer homes sold from January through November compared with the same period last year.

“Those are troubling numbers,” Hotard says.

However, the inventory of single-family homes on the market has remained steady in some markets and shrinking in others. In the city of Boulder, the inventory had decreased by 11 percent from October, while it dropped 5 percent in Longmont and 13.7 percent in the mountains.

“That ought to keep people positioned to move toward a more balanced market as we get into probably the second quarter of next year,” Hotard says, noting these conditions create sales opportunities, he doesn’t expect to see a significant increase in sales activity during the first half of 2009 and maybe not even before the end of next year.

Four out of nine of the county’s market areas saw decreases in both average and median sales prices for the year, but most of those decreases were still relatively small – the exception being Superior’s 12.3 percent decrease in average sales price – and the remaining five markets actually saw increases in both categories, he points out.

Inaction at the federal level is holding up improvement in the real estate market, Hotard notes. “There’s still some uncertainty of what our federal assistance programs are actually going to look like and do. We’re hearing of more investment of the fed to spur job creation and that will bring a lot of positive movement, but we need to get the credit market freed up and moving again” for significant improvement.

The most recent announcement by the Federal Reserve to reduce the prime interest rate by three-quarters of a point will translate into lower mortgage interest rates, opening doors of opportunity, Hotard says. For example, anyone with an adjustable-rate mortgage should consider refinancing within the next 90 days.

“While all real estate is local, all financing is individual,” he says. “For folks out there with good credit and equity in their homes, it will create an opportunity for increased refinancing. With prices down or steady, there are opportunities for home buyers, investors and those looking to change their lifestyle,” whether it’s moving up, downsizing, changing locations or going from renting to owning.

“In an overall sense, you can’t sugarcoat the current situation,” Hotard says. “What you can do is look for opportunity.”

On that note, Hotard sends to all RE/MAX of Boulder E-zine readers his “best wishes for a joyous holiday season and a prosperous New Year.”

Good Borrowers can Find Loans in Tight Times

BOULDER - Despite a global credit crisis, well-capitalized real estate investors with good credit and good projects can still borrow money, financial experts said during the Boulder Valley Real Estate Conference & Forecast.

The experts said the stabilization of the credit markets will be the first sign of a recovery.

"Don't watch the stock market; the importance here is to watch the credit markets," said Lou Barnes with Boulder West Financial Services.

Barnes said the U.S. government's $700 billion bailout plan is moving in the right direction, working to infuse capital into the credit markets.

Keith Dickelman, a commercial banking manager with Bank of the West, said credit standards are tightening, but that creates opportunity for good borrowers.

"With the uncertainty in the real estate industry, now is the perfect time to go out and establish yourself," Dickelman said. "But highly leveraged loans will be tough to get. Cash has always been king, but it's even more important during these times."

John Richert, a principal partner with Terrix Financial Corp., said the economy got caught up in "a perfect storm of leverage."

"Not only were the properties leveraged, and the borrowers were leveraged, but the lenders were leveraged as well," he said.

Brad Blackwell, an executive vice president and retail national sales manager with Wells Fargo Home Mortgage, said many people lost focus about investing in their homes.

"A home is always going to be a good investment," Blackwell said. "But it's a long-term investment and a place to live, it's not an investment to get rich quick."

Blackwell said lenders were also at fault by not following the basic principles of the industry - verifying a borrower's ability to repay the loan, willingness to repay the loan and commitment to repay the loan. No-stated income, subprime, and 0 percent down loans violated all those principles, he said.

Blackwell called for communities to institute financial literacy education into their schools.

BCBR Article By David Clucas December 2, 2008