Saturday Reporter-Herald December 11, 2010 E1
Real Estate Matters
www.homeandrealtyguide.com • Saturday, December 11, 2010 • Reporter-Herald
Visit Northern Colorado’s best kept secret Jobs and real estate tethered, for better or worse ILYCE GLINK TRIBUNE MEDIA SERVICES
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hen President Obama recently proposed a two-year federal employee pay freeze, you could almost feel the real estate industry shudder. That’s because jobs and real estate continue to be tethered together. If salaries are frozen, or if more Americans’ annual income doesn’t keep pace with inflation, it might make them nervous about their future job and income prospects. And Realtors know that if you aren’t confident about your future job and income prospects, it’s unlikely you’ll want to purchase a home. (In a recent speech to the business community, Federal Reserve Chairman Ben Bernanke acknowledged that continued high unemployment is increasing economic uncertainty.) The salary freeze prospect also has an impact on housing prices. When family incomes are flat, it’s very difficult for local home values to appreciate. That’s because lenders traditionally allowed borrowers to purchase homes that cost 2 to 2.5 times family income. In years where the 30-year mortgage interest rate fell to 6 percent or below and lenders were more flexible in what they were willing to do for borrowers, that lending ratio might be stretched to 3 or 3.5 times family income. What happened during the housing boom is that lenders developed creative financing techniques, which stretched tried-and-true lending ratios — with disastrous results. Home buyers who earned $50,000 per year bought $500,000 homes with nothing down. In areas like Nevada, Arizona, South Florida and Southern California, where more home buyers stretched affordability with exotic loans, home prices have fallen faster and farther. But as the unemployment rate remains near 10 percent (officially, and near 20 percent if you count those underemployed), it’s easy to connect areas that have high levels of unemployment with those that have high levels of mortgage delinquency and foreclosure. “The most rapid increases in mortgage delinquency occurred in metro areas where home prices are much higher than local incomes can afford” observed Tom Kingsley, senior fellow at the Urban Institute. According to ForeclosureResponse.org, a website that provides local and national foreclosure data, as well as information on policies aimed at preventing foreclosure and stabilizing neighborhoods, Florida and Las Vegas have seriously high I See Glink /Page E3
Photos courtesy of Oakwood Homes
looking for some more help in your monthly payments, you should check with one of their sales counselors as to how much it could help you in a new home. It works for quick move-in homes as well as customized building, so you can take advantage of it either way. For those that don’t need to be moved in right away, building your own looking to be in for the home from the ground up PAID ADVERTORIAL New Year, Oakwood is the option of choice for Homes has quick move-in most Oakwood homebuyhomes available for every ers. Homes as low as ven though you can type of family, be it a first $999 per month with the see the community starter home or someability to personalize each from I-25 just thing for a larger, growing aspect of your new home south of Hwy 34, Thompfamily. Homes ready immake Thompson River son River Ranch remains mediately start in the low Ranch a popular choice Northern Colorado’s best $200s with payments at with homebuyers. Speak kept secret – being one of $1,400 per month. Why with a new home counthe fastest growing comnot own your home inselor to see how you can munities. Oakwood has stead of renting it when start your home today – homes ready for immediyour payments are comate move-in or start buildparable? Oakwood’s low ing your own customized payments give most peohome today and be in by ple currently renting the June 2011 – just in time choice to break away and for summer. The affordbecome homeowners for able pricing and wellthe same amount they maintained community have been paying each prove to be the best value month to rent. They aim in the area with nearly 80 to be the smart choice for sales this year. Oakwood homebuyers – making evHomes takes pride in its erything simple and easy communities, being a on each family. Colorado hometown Homebuyers received a builder for 20 years, and break in November when the dedication shows. If Oakwood Homes extendyou haven’t seen Thompson River Ranch yet, stop ed their Dream Loan promotion, but that won’t by this week and speak happen this month. Dewith Oakwood’s new home counselors to see if cember 15th is the last day the promotion will be it’s a perfect fit for you. available; so if you were If you’re a homebuyer
Homes ready for move-in before the New Year, or customize your own for June 2011
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Oakwood wants your home to be exactly how you want it and puts all the choices in your hands. Maybe you’re looking at a two-story home… prefer stone exterior? No problem. Need a 4th bedroom? Switch that bonus room into a bedroom and you got it. Want more space for the kids? Finish the basement and you’re set. Take a look at Oakwood’s floorplan customizer online to see choices available to you in every home. Concerned if homeownership is really for you or if you’d be qualified? Don’t worry; buying a home can be a daunting process for anyone which is why Oakwood Homes has their Home Buyers Club to help. It is a com-
pletely free service with no requirement to purchase; they will help guide you through any issues from bankruptcies or foreclosures, to building or repairing credit, to reducing debt. Oakwood’s sales counselors can help you schedule an appointment with the specialists at Home Buyers Club. Stop by to find out more about Oakwood’s quick move-in homes or how to get started building your own home today. Contact Mike Welty at 970-663-6428 with any questions. You can tour Thompson River Ranch this weekend from 10-6 p.m. Visit www.Oakwood HomesCO.com for additional information.
Inside this week’s Home & Real Estate
Featured Home Plan Snowberry is a Cape Codstyle beach cottage
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Carol O’Meara on giving the gift of knowledge to your favorite gardener
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