Summer Real Estate Selling Season Is Coming To An End…

It’s the end of the July and in a few short weeks the summer real estate season will begin to slow down. Right around the second week of August, things begin to slow down as parent and children try to sneak in one more vacation before school starts. Then once school kicks in and people get back into their normal routines, real estate will pick up again. If you’re a seller, don’t be surprised if you see a dip in your showings between the second week of August and the second week of September. 

The question for buyers is: did you take advantage of the historically low prices and low interest rates this summer? Here are a few things I saw this season: 

1)      Unbelievably low prices. I am going to go out on a limb and I’ll eat my words if I wrong, but I think it’s safe to say that values have never been this low and we may never see this again. 50% off some homes is not part of a regular 10-year real estate cycle. This happens once in a lifetime.
2)      Sellers in the 200-400 price range turned the tables on buyers. Sellers understood that the bottom of the market had come and gone, they stayed firm on their prices, and in most cases got full asking price.
3)      Lower than normal inventory. The words “I can’t find a home for my buyers” was spoken by more Realtors this past summer than in the last three years.
4)      Mistakes, Mistakes, Mistakes. More than one buyer decided to do nothing rather than make a decision this past summer thinking that the home would still be on the market whenever they were ready. Those buyers were disappointed to find out that their number one choice had sold. That trend of “I don’t have to make a decision today, tomorrow or in a month” is quickly coming to an end for buyers. 

The good news is I think we are poised for good fall. It was fall of last year when we first began to notice the turnaround in the economy. Right around September, showings started to pick up and we had one of our best fall’s selling seasons in some time. I expect the same to be true for this year. The fall selling season goes from mid-September through mid-November.

Stamp prices going up again! 46 cents to mail a letter/ Post office asking 2-cent rate increase to fight financial crisis.

WASHINGTON (AP) — Buy those Forever stamps now. The cost of mailing a letter is going up again.

Fighting to survive a deepening financial crisis, the Postal Service said Tuesday it wants to increase the price of first-class stamps by 2 cents — to 46 cents — starting in January. Other postage costs would rise as well.

The agency’s persisting problem: ever-declining mail volume as people and businesses shift to the Internet and the declining economy reduces advertising mail.

“The Postal Service faces a serious risk of financial insolvency,” postal vice president Stephen M. Kearney said, an indication that without significant changes a time could come when the agency would be unable to pay its bills.

The post office lost $3.8 billion last year, despite cutting 40,000 full-time positions and making other reductions, and Kearney said it is facing a $7 billion loss for this year and the same for fiscal 2011, which begins in October. The rate increase would bring in $2.5 billion, meaning there still would be a large loss for next year.

The post office, though part of the government, does not receive a tax subsidy for its operations.

While the cost of a first-class stamp would go up, people who bought Forever stamps at the current 44 cents or at lower prices would still be able to use them without paying the difference.

Officials also said they plan a new design for Forever stamps, which currently have am image of the Liberty Bell. New Forever stamps will have images of evergreen trees. All Forever stamps would remain valid.

Under the proposed increases, in addition to the 46-cent rate for the first ounce, the cost for each additional ounce would go up a penny to 18 cents. The cost to mail a postcard would go up 2 cents to 30 cents.

The price to send periodicals would go up about 8 percent, and other rates for advertising mail, parcels and services would rise by varying amounts.

The current 44-cent first-class rate took effect May 11, 2009.

The rate increases proposed Tuesday now go to the independent Postal Regulatory Commission, which has 90 days to respond. If approved the new prices would take effect Jan. 2, Kearney said. Besides the first-class increase, postage costs would rise an average of 5 percent.

After going more than three years without an increase, the post office has raised stamp prices annually since 2006.

The latest increase is part of a series of deficit-fighting plans, announced in March, that include reducing mail deliveries to five days a week, closing offices and making other cuts in expenses. Congress would have to agree to eliminating deliveries on Saturdays.

The weak economy has sharply reduced mail volume as companies cut their advertising. At the same time there has been a significant drop in lucrative first-class mail, with more and more people turning to the Internet to communicate with each other as well as to receive and pay bills.

The proposal drew a quick complaint from the mailing industry.

“This proposed rate increase amounts to another tax imposed on Americans at a time when the economy can least afford it,” said Tony Conway, executive director of the Alliance of Nonprofit Mailers, a group representing charities and other organizations.

“Consumers everywhere will pay more for the letters and packages they need to send; businesses — large and small — will suffer, and even more jobs will be lost,” complained Conway, who was designated spokesman for the Affordable Mail Alliance, a coalition of businesses, charities and other mailers formed to oppose the increase.

Post office finances are complicated by a requirement that the agency make annual payments of more than $5 billion to fund future health benefits for retirees, something not required of other government agencies. The post office avoided financial disaster last year only after Congress allowed it to delay $4 billion of that payment.

The postal inspector general also contends that the Postal Service has been overcharged billions of dollars for retirement benefits for employees who worked for the old Post Office Department before it was converted to the Postal Service in 1970.

Online: http://www.usps.com

RE Buyers, please be careful @ using lines of credit prior to CLOSING on your new house!

Buyers and their agents need to be aware that it is a very bad idea for buyers to increase their credit balances or to open new lines of credit shortly before they close escrow on their new home. More specifically, they should avoid such activity during the period of time between loan application and closing. This is because policies under Fannie Mae’s Loan Quality Initiative, effective June 1, 2010, requires lenders to “refresh” a borrower’s credit report just prior to closing.

Here’s what happens: Bill and Betty Buyer are excited to make an offer on a home they just love. They realized that they are stretching, but the loan officer has pre-qualified them and is confident that they will receive full loan approval. When formal loan approval comes, then, they are ecstatic. In eager anticipation of closing, they visit their favorite furniture store and purchase (that is, charge) a new bedroom set, dining room furniture, and a sectional that will be perfect for the family room. It all adds up to a pretty penny, but they are confident that they will be able to pay it off in a timely manner. Things are going well at work. What could go wrong?

Well, here’s one thing that could go wrong: Following FNMA’s guidelines, the lender runs an updated credit report on Bill and Betty just before closing. With their newly-acquired credit balance, Bill and Betty no longer meet the required debt-to-income (DTI) ratio in order to qualify for their loan. The loan is pulled. Sadness reigns.

Fannie Mae’s Loan Quality Initiative was introduced in a lender letter February 26, 2010. The letter noted that, during the past three years, the need had been highlighted “for an improved approach for working with lenders to deliver loans that meet Fannie Mae’s underwriting and eligibility guidelines.” In other words, the loans that had been delivered to Fannie Mae turned out too often not to meet Fannie Mae guidelines. Regrettably, this tended to be discovered well after Fannie Mae had purchased the loan. The idea of the Loan Quality Initiative, which was to become effective June 1, 2010, was to focus “on capturing critical loan data earlier in the process and validating it before, during, and immediately after loan delivery.”

Borrower qualification was not the only issue of concern. Among others were determining owner occupancy, verification of social security numbers, a new policy on excluding certain entities from Fannie Mae loans, and updated quality-control requirements.

Technically speaking, the Fannie Mae guidelines do not require that updated (“refreshed”) credit checks be performed for borrowers. Fannie Mae states that “It is the lender’s responsibility to develop and implement its own business processes to support compliance with Fannie Mae’s requirements on loans delivered to [Fannie Mae].” But, in the same memo, Fannie Mae does provide “tips for lenders to consider.” One of those tips is “Refreshing a credit report just prior to closing … .”

Does anyone think that a lender who sells its loans to Fannie Mae is going to ignore such tips? Hardly.

The tips point out that not only might a refreshed credit report show newly-acquired debt (as in the example), but also that it may show new credit inquiries. “Credit inquiries listed on the credit report should be investigated to determine whether the borrower did in fact open additional credit resulting in repayment obligations.” Don’t go buy a new car until after you close.

Given recent history, it would be unreasonable to fault Fannie Mae for tightening up its procedures in every way possible. Buyers just need to remember that loan approval is based on statements of income and liabilities at the time of the loan application. If those factors change materially prior to closing, it is likely to be discovered and it could undo a deal.

Congratulations on your new home, and go ahead and buy new furniture; but wait until after escrow has closed.

Denver’s 2010 “Old Fashioned” July 4th Festival: Sun 10am-4pm

Meet Thomas Jefferson and Abe Lincoln – Ride in a horse drawn wagon – Listen to a concert… and more at the “Old Fashioned” July 4th Festival!  It is so much fun, that it’s historical…

Four Mile Historic Park: 715 South Forest St, Denver, Colorado 80246

Sunday, July 4th: 10:00am – 4:00pm

Activities include:

• Meeting Thomas Jefferson
• Denver Concert Band and other music
• Reading of the Declaration of Independence
• Civil War reenactments
• Craft demonstrations
• Horse-drawn rides
• Mountain Men
• Children’s games and crafts, sponsored by Home Depot – Glendale location
• Food available for purchase; All ticket sales and wagon rides end at 3:30pm!

On the banks of Cherry Creek, just four miles from downtown Denver, Four Mile Historic Park is a 12 acre oasis featuring Denver’s oldest standing structure, pioneer exhibits, special events for all ages, and guided tours that transport visitors to Colorado’s frontier past.  Once a wayside inn and stage stop, Four Mile House and grounds are the setting for unique family, student, senior and rental activities that offer visitors a unique experience apart from the bustle of their busy lives.

Entrance Fees:
Adults: $7
Youth 7-17, and Seniors: $4
Children 6 & under, Military w/ID, and Members of FMHP: Free

For more information, call (720) 865-0800.

* Denver, CO: Summer 2010 Events and Concerts *

The dates and times of Summer 2010 concerts and other events and activities in/ near Denver, CO:

7/3, 4, 5 – Cherry Creek Art Festival, Cherry Creek North, all day
7/3 – America, Hudson Gardens, evening
7/4 – Firefall, Hudson Gardens, evening
7/4 – Blues Traveler, Red Rocks, evening
7/14 – James Taylor & Carole King, Pepsi Center, evening
7/15 – Paul McCartney, Pepsi Center, evening
7/21 – KOOL Concert with REO Speedwagon, Pat Benatar, Red Rocks, all day
8/14-15 – Mile High Music Festival, all day

See the complete Summer Concert Calendar 2010 by clicking HERE.

Red Rocks Amphitheater has a really great new Web site that is worth the click – it’s very visual;  See it by clicking HERE.

Now read on if you are interested in LinkedIn & Social Media for business…
7/10 – WordCamp Conference in Boulder. A gathering for WordPress developers and enthusiasts that is very polular with the LinkedIn user community. Click HERE for info and Registration.

7/20-21 – Integrated Marketing Summit 9IMS) comes to Denver. It’s 2 Days of intense education for those that desire to use the Internet more effectively to market our businesses.  Click HERE for info and Registration.

The “Liberty Run 4 Mile” in Denver this Sunday-the 4th of July 2010!

Event Name: Liberty Run 4 Mile

Event Date & Time:  Sunday, July 04, 2010 @ 8:30 AM

Event Distance:  4 Mile & Kids Fun Run

City and State:  Denver, CO

Description:  Start 4th of July with a Bang!  Come out with the family to one of Denver’s best and largest 4th of July runs.  The Liberty Run includes a 4 Mile Run/Walk and the Firecracker Kids Fun Run.

Dress in your best Red, White and Blue get up.   Prizes will be awarded for best kids and best adult display of USA.

Don’t miss the post race expo with great food, beverages and lots of fun for all ages. What better way to start your 4th!

Event Address: 1000 S Downing St Denver, CO 80209

Directions to start: Starting line as well as registration will be directly at the south end of the park.

Parking: Park either in South High School Lot (just south across the parking lot) or around the perimeter of Washington Park.

Awards Info: Awards in the 4M will be given to the overall male and female, then to the top three males and top three females in the following age groups: 12 and under, 13-19. 20-29, 30-39, 40-49, 50-59, 60-69, and 70 and over.  In addition, awards will be presented to the best decked out USA adult and child.

Register at your Local Specialty Running Store: In-Store Registration will be available June 18th – July 2nd at the following locations:

Runners Roost – Denver

Runners Roost – Aurora

Runners Roost – Lakewood

Boulder Running Company – Littleton

Boulder Running Company – Arapahoe Rd

Running Wild – Highlands Ranch

Packet Pickup:  Except for in-store registration locations, all bibs, t-shirts and timing chips will be distributed on Event Day starting at 7:30 AM near the start line.

Registration Info: Adults – $33

Seniors 60 and Over/Youth and 17  Under) – $25

4 for the 4th Pack (Four Pack Special) – $100

Firecracker Kids Fun Run – Free

Please Add $5 for Individual Race Day Registration, please add $20 for the four pack for  Race Day Registration.

Mortgage Rates Drop to Record Low ~ Tax Credit Extension FAILS FINAL Vote.

Mortgage Rates Drop to Record Low: 30-year fixed mortgage rates dropped to their lowest levels in 39 years according to a new survey released by Freddie Mac, the second largest mortgage finance company.

Interest rates on 15 year fixed rates and hybrid adjustable rate mortgagerates reached fresh lows as well.  While record low rates and high housing affordability helped the housing market gain ground over the last year, the sector is struggling since the popular home buyer tax credit expired on April 30th.

According to a Freddie Mac survey, the average 30 year fixed rate for conventional (non-FHA and VA) mortgages averaged 4.69 percent for the week ended June 24th and is the lowest since Freddie Mac started the survey in April 1971.  Still, Freddie Mac’s data is at least a week old before they publish it and it has been another week since then.  Rates do vary depending on credit, debt ratios, down payment, area of the country, property type, points paid and many more factors.

$8000 Tax Credit Extension Fails Final Vote

What appeared to be good news for buyers who had loans in place before April 30th to qualify for the $8000 tax credit has turned sour.  The amendment was tied to another bill (H.R. 4213  American Jobs and Tax Loophole Act) that was voted down for the third and final time on Thursday.  Bad news for approximately 180,000 buyers who have loans in place that will be affected by the failure of this amendment.  Approximately $75,000 of the loans closing are for distressed properties.

The reason that the loans are not closing is due to the lenders backlog of loans in process and not any fault of the buyers themselves. Some buyers see this as a government bait and switch scheme!!  You can read the full article cy clicking HERE.   

Which is in response to … Senate approves home tax credit extension:

WASHINGTON — The Senate on Wednesday approved a plan to give homebuyers an extra

three months to finish qualifying for federal tax incentives that boosted home sales this spring.

The move by Senate Majority Leader Harry Reid would give buyers until Sept. 30 to complete

their purchases and qualify for tax credits of up to $8,000. Under the current terms, buyers had

until April 30 to get a signed sales contract and until June 30 to complete the sale.

The proposal, approved by a 60-37 vote, would only allow people who already have signed

contracts to finish at the later date. About 180,000 homebuyers who already signed purchase

agreements would otherwise miss the deadline.

Reid, D-Nev., added the proposal to a bill extending jobless benefits through the end of

November. Nevada has the nation’s highest foreclosure rate, and Reid is facing a tough reelection

campaign.

The Realtors group has been pushing hard in Congress for the extension. Mortgage lenders, the

trade group says, have been swamped with borrowers trying to get approved by the end of the

month. Many potential borrowers are unlikely to make the deadline.

“If Congress fails to act promptly, then prospective homebuyers might not get the benefit of the

homebuyer tax credit, even though they have completed contracts,” the Realtors said a letter to

lawmakers.

First-time buyers were eligible for a tax credit of up to $8,000. Current owners who bought and

moved into another home could qualify for a credit of up to $6,500.

The $140 million cost of the measure would be financed by denying businesses the ability to

deduct from their taxes punitive damages paid when losing lawsuits or judgments.

- Andrew Taylor (AP)

Copyright © 2010 The Associated Press. All rights reserved.

These are the 5 most common Mistakes Made by Buyers of Real Estate!

These may seem like common sense to the seasoned real estate buyer, but you can’t believe how many people make these same five common mistakes year in and year out in buying real estate.

So without further ado, let’s get to the top five mistakes buyers make in the real estate transaction.

1)   People Over Buy. Yes, this is the exact problem that got many Americans in trouble and started this housing crisis. Buying too much home for your income happens less these days because of the recession and crash, but it’s still the number one problem in home buying. Remember, a good general rule is to add up all of your expenses including the new mortgage and it should not exceed 36% of your total monthly income.

2)   Misplaced Trust. We all know someone in the real estate business. Chances are, you were connected with your real estate agent from a referral. Even if the referral came from a trusted source, don’t be afraid to do your own research on the agent, mortgage lender, etc. Ask questions and conduct a good interview a maybe a background check.

3)   Oral agreement. Get it in writing for everything and keep a file with all of the paperwork. Even when you are talking about things over the phone with an agent, ask them to send you an email detailing what you just talked about so you have a paper trail and documentation. He said, she said never turns out well for anyone.

4)   Skipping the fine print. Read everything and read it again. I know it can be tedious and difficult language to follow, but if you don’t understand it, hire a lawyer to look it over for you. The cost won’t be much compared to being stuck with a bad deal on a home.

5)   Betting on resale. Be careful about buying the nicest, most improved home on the block. Remember, the homes on the block are going to sell according to the market average for size and features. If you think that you are going to cash in when you go to sell the house because it’s loaded, you might want to think again. Chances are, you may not get the cost of the improvements back when the time comes to sell.

Record-low mortgage rates are a boon for housing markets…

The lowest mortgage rates since 1971 are propping up the metro-area housing market, giving consumers an incentive to lock in low rates on home purchases.

It’s the best news the market has seen since the expiration of federal tax credits aimed at spurring homebuying activity, some real-estate agents say.

The average rate for 30-year fixed- rate loans dropped to 4.69 percent, from 4.75 percent last week, mortgage company Freddie Mac said Thursday.

That’s the lowest point since April 1971, when Freddie Mac began tracking rates. The previous record of 4.71 percent was set in December. Rates for 15-year and five-year mortgages also hit lows.

Low mortgage rates are the one thing that’s helping housing sales, said Chris Mygatt, president and chief operating officer of Coldwell Banker Residential Brokerage in Denver.

“It is helping soften our landing from the tax credit ending,” Mygatt said.

Buyers had to have a property under contract by the end of April to qualify for an $8,000 federal tax credit for first-time buyers or a $6,500 tax credit for move-up buyers.

The high-end market, which had been largely unaffected by the expiration of the tax credit, is seeing a surge in sales as a result of the lower interest rates, Mygatt said. A year ago, the rate for a jumbo loan (more than $417,000) ranged from 6.25 to 6.75 percent. Today, it’s about 5.75 percent for a 30-year fixed-rate.

“That’s what we need to have happen to fuel that upper-end market,” Mygatt said. “The availability of quality jumbo product is for the upper-end market what the tax credit was for the under-$300,000 market.”

Still, the news Wednesday that national sales of newly built homes fell to a record low in May is likely to have a negative impact on the housing market, said Mike Burns of Re/Max Professionals Inc.

“Consumer confidence is low in real estate,” he said. “But in my 20 years in real estate, I don’t know that I’ve ever seen a better time (to buy) when there was a combination of low interest rates and fairly low housing prices.”

Mortgage rates have fallen over the past two months as nervous investors have shifted money into the safety of Treasury bonds. The demand for Treasurys has caused Treasury yields to fall. And mortgage rates tend to track the yields on long-term Treasurys.

By Margaret Jackson, The Denver Post business section

The Associated Press contributed to this report.

“Seventeen on 17th” This Thurs, 6/24, Shop and help with the Gulf Oil Spill Restoration Fund.

Denver! Bike to Work Day is June 23rd, this Wednesday!

The Denver Regional Council of Governments (DRCOG) presents Bike to Work Day!

It’s time to make a fun shift! On June 23, 2010 the Denver Regional Council of Governments (DRCOG) invites you to participate in Bike to Work Day and find out how something that’s good for you can be fun!

For 2010 DRCOG is proud to present an enhanced website featuring a new look and improved functionality. The new website will provide more information and cycling news to help encourage people to ride more often.

ften.

6/18-20 Fri-Sun: Denver Greek Festival this weekend – OPA!

OPA!  Come and attend one of Denver’s premier and FIRST summer outdoor festivals ~ Featuring LIVE traditional Greek dancing by the Hellenic Dance Academy of Denver and music by Etho Ellas.

And there will be plenty of homemade food and pastries from throughout Greece to satisfy any appetite.  Check out their menu here!

The cultural center, book store & gift shop will include original works of art. Beautiful gold and silver jewelry, authentic Greek merchandise and breathtaking photography also available.

They are located at 4610 East Alameda Ave at the corner of Alameda and Dahlia (Denver, 80246).

There is parking in their lower lot near the East Gate and on Colorado Blvd and Alameda at the Target Parking where shuttles will run throughout the day.

There is also valet parking for $5 per car in the upper lot at the Metropolis Center lot and Cathedral upper lot will have handicap parking up there as well.

• Friday and Saturday 11am – 11pm
• Sunday 11am – 8pm

May foreclosure filings dropped to their lowest level in 18 months in Colorado!

From the Denver Post: May foreclosure filings dropped to their lowest level in 18 months in Colorado, a sign that homeowners may be getting more leeway to repay or restructure their loans.

New filings in metropolitan Colorado counties fell to 2,633 in May, a 17.7 percent decline from the same month last year, according to the state Division of Housing

Denver is the Most Improved U.S. Housing Market!!

Real Estate News –  June 10, 2010, 5:40PM EST

The housing market in Denver and 20 other markets are showing signs of life, but still a long way from precrash highs…

Across the U.S., signs of life are budding in the housing market. This statement will have many people scratching their heads. Yes, more foreclosed homes will enter the market. Yes, job creation has been disappointing, and unemployment hovers at high rates. And yes, more mortgages are going to become delinquent. So what is the good news?

With help from the government’s first-time home buyers tax credit, which expired in April, home prices improved slightly. Some metro areas appear to have entered the early phases of the long recovery process. According to CoreLogic, a data company in Santa Ana, Calif., national home prices increased 1.73 percent from March 2009 to March 2010. The next few years will be rocky, but gains on Wall Street during the first quarter and hiring improvements in some areas since January have improved confidence, with a positive effect on housing. Things are not rosy, but several markets are showing modest signs of improvement.

To determine which places experienced the biggest overall improvements, Bloomberg and Businessweek.com ranked the 50 largest metropolitan statistical areas (MSAs), based on first-quarter data from CoreLogic. We emphasized first-quarter home prices, foreclosures, and delinquent loans and also looked at overall home sales, distressed sales, and local unemployment figures from the U.S. Bureau of Labor Statistics.

Strength in San Jose, Boston, St. Louis

The greatest year-on-year price increase in the first quarter, 8.3 percent, occurred in the San Jose area, but it was Denver that ranked as the most improved market overall. Prices in the Denver area jumped 5.8 percent during the first quarter, and unemployment dropped slightly, to 7.8 percent in April from 8.3 percent in January. Boston and St. Louis came in second and third. At the bottom of the list were Las Vegas and Miami, where prices fell 13.1 percent and 7.6 percent, respectively.

Development Research Partners, an economic research firm in Littleton, Colo., expects home sales and prices in the metro Denver area to increase about 5 percent this year, says President Patty Silverstein. Also, an influx of renewable energy companies and the relocation of kidney care giant DaVita’s (DVA) headquarters to Denver from California in 2009 are expected to create jobs. In fact, about one in 25 employers in the Denver-Aurora-Broomfield area plans to add jobs in the second quarter, according to the most recent Manpower Employment Outlook Survey.

Other leading private-sector employers in the region include DISH Network (DISH), Liberty Global (LBTYA), Liberty Media (LCAPA), Ball Corp. (BLL) and Newmont Mining (NEM).

“We never went up as fast in terms of value, and we never came down as fast,” says Jim Nussbaum, a broker associate for Kentwood Real Estate in Greenwood Village, Colo. “Last year [buyers] were like deer in headlights—they were afraid to move. When the stock market improved, they started to feel better.”

Is the Upturn Sustainable?

Sam Khater, a senior economist at CoreLogic, says government subsidies and low interest rates have temporarily boosted demand. A good portion of the gains in home sales this year are due to the federal first-time buyer and repeat buyer tax credits, which expired on Apr. 30, and the large supply of low-priced distressed properties. (A state tax credit program in California will continue to encourage buyers for the rest of the year.) Also, fewer new constructions, moratoriums on foreclosures, and loan modifications over the past year have limited the supply of foreclosed homes on the market.

Government life support has boosted the economy, but “the issue is what happens when you reprivatize the market,” he says. In many cases, these programs delayed inevitable foreclosures. “We’ve got our foot on the gas pedal pressed to the floor, but it’s not sustainable.”

Brokers expect sales to slow this summer, as a large number of buyers signed contracts before the April deadline for the federal credit. In the Denver area, homes under contract in May dropped by 39.3 percent from April and 27 percent year-on-year, according to data from Metrolist, the real estate Multiple Listing Service (MLS) for the area.

Bids Above Listing Prices

California had six metros on our list of improving markets but remains volatile. Zillow‘s chief economist, Stan Humphries, says California is now experiencing a boom because its housing market went into recession earlier and it had already experienced tremendous declines in home values. Also, state foreclosure laws do not require court action, so foreclosures can be dealt with efficiently. “You can clear through the foreclosure backlog fairly quickly,” he says, so markets can bottom out and start to heal.

C.J. Brasiel, a broker in San Jose, Calif., says that since October, her listings have moved quickly, and she has received bids above the listing price for many homes. Sales activity has improved, but more than 70 percent of Brasiel’s listings last year were distressed properties, and about half her sales were foreclosed homes.

If first-time buyers retreat following the expiration of the federal tax credit and banks release foreclosed homes on to the market, increasing supply, Brasiel says prices could drop more than 5 percent in some areas in Santa Clara County this summer, unless there are government interventions to mitigate a flood of shadow inventory. “We’ll be bumping along the bottom,” she says.

Optimism About Next Year

Despite the projected dips over the next months and years, an end is in sight. An April report on the Fiserv-Case Shiller home price indexes says a prolonged recovery will begin early next year, and some markets are poised for a relatively fast recovery, including those that did not see large price declines, such as Pittsburgh, Columbia, S.C., and metro areas in Texas, Washington state, and upstate New York.

Nationally, Zillow’s Humphries expects the market to bottom in the third quarter and be flat for the next three to five years as the market works through foreclosures, shadow inventory, other economic issues.

CoreLogic’s Khater sees a need for a correction. “When you adjust for inflation, which until recently was 2 percent to 3 percent a year, then prices should return to roughly 1997 rates,” he says. “We’re not that far off from late 1990s in terms of wealth and income when adjusting for inflation, so home prices should not be much higher than that.”

Rising home prices may be encouraging, but in the long term, they will need to climb out of the recession in step with the rest of the economy—even though many would like to see them race ahead.

Click here to see which markets show the most improved housing markets.

By Venessa Wong: Wong is a lifestyle and real estate reporter for Bloomberg Businessweek.

The newest DELI ZONE is now open in (South) Denver! Featuring NY Style Eats…

NEW Location: 2439 S. University Boulevard, Denver, CO 80212 … near The University of Denver!
Store Hours: OPEN for Breakfast , Lunch and Dinner! Mon-Thurs 7am – 11pm, Fri 7am-230am, Sat 9am-230am, Sun 9am-11pm

Phone:  303-927-6304   Fax: 720-389-6725

Featuring their Famous Brooklyn Heroes (hot and cold), as well as awesome breakfast sandwiches & burritos, a variety of fresh soups & salads, a creative Kids’ Menu, plenty of vegetarian options, and their favorite sandwich creations.

The Deli Zone Story/ History of Deli Zone:

Rod Feiner and Ed O’Connor were born in Brooklyn and the Bronx, respectively. They met in grade school after their families had moved to Westchester county, just outside of New York City; a place renown for having a great local deli in every neighborhood. As young men, Rod &  Ed would stop by the local deli on their walk to school to pick up a pastrami or turkey sandwich for Lunch; and maybe even a Bacon, Egg &  Cheese sandwich for breakfast. This routine followed them through high school.

After graduating college in upstate New York in the early nineties, Rod moved to Boulder, Colorado. Within a month, he observed an obvious omission in Colorado cuisine: No fat Ruebens or Philly Cheese Steaks were readily available as they were throughout the counties inside and surrounding New York City. Seeing an opportunity, Rod sprang to action and called Ed, who had just graduated college in Rhode Island. Rod had a business proposal for Ed.

Rod’s proposal was simple: “Let’s introduce the concept of a great local Deli in every neighborhood to Colorado.” From that phone call The Deli Zone was born. The year was 1993. By the spring of 1994, They were opened for business at 2900 Valmont Road, in the Zarlengo Plaza. The boys enjoyed immediate success, but at no small price. Rod & Ed can recall working so late into the early hours of the morning, that a cat nap on a bed of egg cartons in the storage room for an hour was all their sleep for the whole day. But it was well worth it! Within a year, they had raised enough money to put their plan of a great deli in every neighborhood in Colorado into action. The next stop was on the Hill, across the street from the University of Colorado, where a location had opened up on the corner of 13th & College Ave.

One night, while working into the late hours of the evening on the construction for the store on the Hill, Rod & Ed were approached by Christian Frahm, a born and bred New Yorker from Manhattan. He was looking for work. Having as much restaurant experience as the two had combined, Christian came on board to be the Manager of the new location. It opened in the Fall of 1995 to rave reviews from the students of CU as well as the residence of the Hill.

During the Spring of 1996, a young freshman by the name of Scott Lister came into the Hill store inquiring about employment. From his freshman year to the day he graduated, Scott shined as the brightest, hardest working employee Christian, Rod or Ed had ever seen.

The next few years saw the boys working hard to establish themselves as the best NY-style sub shop in Boulder. Serving close to 500 subs a day, the word soon spread to the delight of many in Colorado.

On January 10th, 2000 a location in Broomfield, on the 287 corridor, became available and the third Deli Zone was born. However, Rod and Ed knew they couldn’t increase their work load without key help. They asked their first in line, Christian, if he would like to join in on the plan to put a great deli in every neighborhood in Colorado. With that, Christian Frahm became the proud third owner of the Deli Zone. He is the first employee to work his way into having his own share of the plan – but not the last.

In 2001, Scott Lister got his Bachelors’ Degree in Evolutionary Genetics from CU Boulder. He also earned his Masters and Doctorate degrees in Sandwichology during his five years as The Deli Zone’s perennial best employee. Thinking BIG, Scott brought the owners a proposal to open another location, but this store would serve as far more then just another deli. The newest Deli Zone would have it’s own bakery and commissary. For such insight and future sight, Scott Lister became the 4th owner of the Deli Zone.

In 2002, Rod, Ed, Christian & Scott opened the new Deli Zone in the Meadows shopping center on Baseline & Foothills Parkway.

Behind the visible operation of the Deli Zone exists the ambitious project of Feiner Foods. 24” Parisian bread is baked on a continual basis while other chefs cook fresh Eggplant, Chicken salad and other ingredients for all four locations.

Since then, The Deli Zone has enjoyed continued success. Each year sees an increase in sales, as well as increased accolades from the community.

In 2005, The Deli Zone opened in Longmont and Fort Collins.  The plan continues to proceed as… well…planned.