Tom Clark did his best Tom Cruise impression at today's economic development event.

Arrow Electronics, described as a “game changer” for Colorado’s economy by moving its world headquarters to the Denver area, today was named the Deal of the Year by the Metro Denver Economic Development Corp.

Sharing the stage with Arrow, which at No. 133 on the Fortune 500 list is the highest ranked corporation headquartered in Colorado, was United Airlines announcement this week that it would offer direct daily flights from Denver to Tokyo.

Denver Mayor Michael Hancock also praised the recent addition of direct flights from Denver to Reykjavik, Iceland. He also said he had learned this morning that Volaris Airlines is seeking permission to provide direct flights from Denver to Mexico City.

The flights to Tokyo were a long-time coming, Hancock said. He noted that was one of the goals of Mayor Federico Peña in the late 1980s, when Hancock was working for him as an intern.

These announcements demonstrate that “we can compete with the best of them — that is what we are — the best of them,” Hancock said. He said the new Tokyo route is expected to generate $130 million annually in economic development, create 1,500 jobs and bring thousands of visitors to Denver. “It is just going to ripple through the entire economy.”

More than 600 people attended the eighth annual EDC ceremony luncheon at the Sewall Grand Ballroom at the Denver Center for the Performing Arts.

Those in the audience also were treated to two videos – one highlighting  Arrow Electronics, which holds a 40 percent of the global market share in its portion of the electronics industry and announced it was relocating its headquarters to the area last October –  and the other with economic development guru Tom Clark doing his Tom Cruise impression as a secret agent from the Mission: Impossible franchise.

Arrow – a bullseye for Denver’s economy

Arrow, with almost a $4 billion market cap, employs 12,000 worldwide and distributes, services and provides technology solutions in telecommunications, information systems, transportation, medical and industrial and consumer electronics.

“Arrow’s decision to move its world headquarters and other portions of its supply chain to Metro Denver is certainly a game changer for our state,” said Bob Deibel, president and owner of OfficeScapes, and co-chair of the Metro Denver EDC Executive Committee.

He said John Hickenlooper got wind of the deal when running for governor, and then tirelessly worked to make it happen.

The title of the event was Mission: Possible, with Clark, the CEO of Metro Denver EDC, starring in a spoof video, which included Hickenlooper and others. (The biggest laugh occurred when Hickenlooper said that he wouldn’t be able to attend today’s event because he was meeting POTUS at the Air Force Academy in Colorado Springs. “What the bleep is POTUS?” asked Clark, who clearly does not watch Veep on HBO.)

“When I was told that Tom was going to play Tom Cruise, I said it had better not be from Risky Business,” quipped Kelly Brough, president and CEO of the Metro Denver Chamber of Commerce.

Agents recruited to spread the word

Along the theme of secret agents, Clark unveiled a new campaign designed to mobilize the region’s most passionate business leaders and help position the Denver area as a top place for innovate companies and people. Christened as the Metro Denver E-Force, executives, or as Clark calls them, “agents,” will share the latest rankings, business news and inside knowledge with their professional and social media networks.

“Since we started the Metro Denver EDC eight years ago, I’ve continually been approached by executives asking what they can do to help,” Clark said. “This campaign is one way we can engage with people to have them really make a difference in promoting the region’s economy, especially since it will keep metro Denver top-of-mind for companies looking to expand or relocate.”

One of the E-Force Agents was Andrew Hudson, former aide to Mayor Wellington Webb, spokesman for Frontier Airlines and now CEO and founder of AndrewHudson’sJobsList.com, which attracts 25,000 online visitors each week.

“You are doing what you are supposed to be doing — connecting with connectors,” Hudson said.

Have a real estate story idea or news tip? Contact John Rebchook at JRCHOOK@gmail.com. InsideRealEstateNews.com is sponsored by Universal Lending, Land Title Guarantee Co. and 8z Real Estate

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Red Oak Park

Red Oak Park has won the 2012 Affordable Housing Project award presented by the Colorado chapter of the National Association of Housing and Redevelopment Officials.

The affordable housing community  was developed by Boulder Housing Partners. The award recognizes a Colorado project that was completed in an innovative manner, incorporating such things as creative financing, public/private partnerships, mixed-use developments, adaptive reuses and special-needs housing.

The 59-home Red Oak Park is BHP’s most recent affordable-housing development. It is considered a model for future redevelopment projects for its environmental features and inclusive neighborhood-style design, as well as its innovative development approach.

Energy-efficient project replace trailer park

The north Boulder development was built on the  site of a mid-century mobile home park. It replaces scores of deteriorated mobile homes. In the year since the new development was completed it has been fully occupied including some residents of the former trailer park.

Homes were built to meet Boulder’s strict community standards for design and energy efficiency while remaining affordable to families earning up to 50 percent of the area median income. Red Oak Park includes a community center that provides after-school and community education opportunities.

Red Oak Park replaced this mobile home park in Boulder.

The homes were designed with the health of residents in mind.  All of the units were completed with green, energy efficient features to help reduce utility costs for the residents, as well as improve air emissions and reduce water use compared with standard developments. Many of the homes generate a surplus of clean electricity with rooftop solar panels. Red Oak Park’s central location at 2637 Valmont Road is within walking distance of shopping, public transit and bike paths, which combine to reduce residents’ car trips.

$13 million project

BHP’s financing tapped multiple sources to raise the $13 million required to make it a 100 percent affordable community. The City of Boulder provided critical early financial support, allowing it to qualify for a low-income tax credits. The tax credit award was the catalyst that enabled BHP to complete the financing in spite of difficult economic conditions. Other financial sources included BHP’s contribution of the land, permanent debt, solar energy tax credits and private grants.

The affordable housing award was presented to BHP executive director Betsey Martens earlier this month at the CoNAHRO annual conference in Fort Collins.

Demand for affordable housing to grow

Martens, who also serves as the president of the national NAHRO Board of Governors, told the Colorado conference that the affordable housing and community development industry is poised to transform over the next decade as demand for affordable housing increases due to a combination of the slow economic recovery,  persistent unemployment, the collapse of the housing market and tightening government budgets.

“The key question in these challenging times is whether we will be transformed, or will we transform ourselves?” Martens said in a speech to the CoNAHRO audience. “The Red Oak Park development contains ingredients that will be essential to successful infill affordable housing projects in the next decade.”

The CoNAHRO Awards of Excellence give recognition to innovative new housing and community development projects, programs and services provided by NAHRO agency members statewide. The awards recognize best practices among housing, redevelopment and community agencies and provide a resource bank of information for NAHRO members.

Have a story idea or real estate news tip? Contact John Rebchook at JRCHOOK@gmail.com. InsideRealEstateNews.com is sponsored by Universal Lending, Land Title Guarantee Co. and 8z Real Estate.

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Lane Hornung's recent statements on the Front Range housing market has led to a debate about where the local market is heading.

In the spring of 1991, a woman called me at the Rocky Mountain News, complaining that she was tired of Realtors saying now is the time to buy.

She had bought a home in Denver just before the collapse in the mid-to-late 1980s, which was then the worst housing market in the metro area since the Great Depression.

Colorado was one of the so-called COLT states that also included Oklahoma, Louisiana and Texas, whose economies and housing markets had been hammered by falling energy prices.

The Denver-area housing market was horribly overbuilt on speculation that oil prices were headed for $65 a barrel from around $30. Instead, they plummeted, briefly falling below $10.

HUD once Denver’s largest landlord

Thousands of people left Colorado for states where there were still jobs, such as California. While at the Rocky, I broke a story that the  U.S. Department of Housing and Urban Development was Denver’s largest landlord, because it owned many foreclosures. The Rocky used to run a weekly listing of HUD properties that was thicker than today’s Denver Post.

The irate caller had taken a check to the closing when she sold her home in Denver, because the sales price was less than her mortgage. She left Denver, moved East and bought a home in Washington, D.C. The real estate gods were not smiling on her. The nation was gripped in a recession when she sold her home in D.C., and once again she lost money when selling her house, before returning to Denver.

At the time, I was quoting people such as Dennis Hipp, president of a company called Perry & Butler, and Bill Moore, owner of Moore and Co., the largest locally owned realty firm in Denver at the time, who said that now is a good time to buy and people will be kicking themselves down the road if they passed on the unique opportunity to buy.

After all, mortgage rates were low at 9.5 percent — the first time in a decade they had been below 10 percent —and homes were selling below the cost of building them.

The average home in the Denver area in May 1991 sold for $97,925, the equivalent of $165,426 in today’s dollars.

The woman, however, was having none of it. She assured me that she was not even going to consider buying a home until prices fell at least another 20 percent.

I told Hipp about my conversation.

Timing is difficult

He said he hoped she landed the bargain she was hoping for, but she thought she was wrong. Hipp added that it is incredibly hard to time the market. Despite what so many people believe, Realtors do not set the price of houses, he said. The market is set by the market, Hipp said. That is,  home prices are determined by what a willing buyer pays a willing seller. While Realtors tend to be “half-full” glass people, no matter how bullish they are, they lack the power to drive up prices, he said.

Yet, at that time in history, Hipp and other were prescient.

Market on a tear

A year later, the average price of a home sold in the Denver area was $105,418, the equivalent of $172,880 in today’s dollars. Demand out-stripped price appraction. In the first five months of 1992, 12,051 homes closed, a 28 percent increase from the 9,408 in 1991.

“Homes are still reasonably priced,” I quoted Hipp as saying at the time. “We’re seeing more multiple offers, sometimes with people offering more than the asking price.”

Sounds like today’s market.

Hornung strikes a nerve

I thought of this recently after I published a question-and-answer article with Lane Hornung, CEO, President and Co-founder of 8z Real Estate.

Hornung provided consumer tips for prospective buyers in the current market, who increasingly are being out-bid for homes. He cautioned that the conditions of incredibly low supply and increased demand may not last, but they are the reality of today’s market. Many would-be buyers are disappointed after being out-bid multiple times.

A reader named Peter, who seems sophisticated and intelligent on financial matters,  responded in a missive that he found it “shameful” that brokers are such cheerleaders.

Peter, who is renting a million-dollar home for far less than what it would take to buy it, went on to write that he gives the market’s recent bounce another six to 12 months. After that, he sees a double-dip, which is when home prices retreated to new lows. He also thinks a recession and possibly even a depression, are waiting in the wings.

Shaky home sales foundation?

“Stop feeding the real estate greed and learn from recent history,” Peter wrote. “Your belief is that the recovery is here and the market has bottomed. That is the new buyers’ belief and that I believe is built off a very false premise.”

Recently, while attending Universal Lending’s 30th anniversary celebration, I sat next to man who had been a mortgage and real estate broker for more more than three decades.

I asked him if he thought the housing market had hit bottom, or the dreaded other shoe would kick the market’s butt.

“Anything is possible,” he told me. “Could home prices double-dip and fall another 10 percent or 20 percent? They could. But I don’t think they will.“

Modest appreciation predicted

He thought the odds were far greater than the Denver-area housing market in the next few years will enjoy modest appreciation, of perhaps 4 percent or 5 percent, if the annual inflation rate continues to hover around 2 percent.

That would have a big impact on the market, he predicted, because in two or three years, many homeowners who are itching to sell their homes, but can’t because they are still under water, will be able to sell them and move-up.

Back in the 1991-1992 era, I used to do get a call every Tuesday morning from a radio reporter, who would ask me about the real estate market. I told him exactly the same thing – my best guess was that home values would slightly out-pace inflation.

I was wrong. Home prices registered double-digit price increases, almost unabated for the next 15 years, although the market never got as crazy as once-high flying markets such as Phoenix and Las Vegas, before succumbing to the first national real estate downturn since the Great Depression.

I’m wondering what other people think.

Vote in the poll at the bottom of this blog and feel free to leave a comment.

Have a story idea or a real estate news tip? Contact John Rebchook at JRCHOOK@gmail.com. InsideRealEstateNews is sponsored by Universal Lending, Land Title Guarantee Co. and 8z Real Estate.

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Jenny Apel sits in front of the William Carter Mansion that she sold for $950,000.

A couple recently paid $950,000 for the largest  residential home in northwest Denver.

Richard Tallman and Lisa Flores bought the 7,070-square-foot William Carter Mansion at 2955 Perry St., according to public records. The estate also includes a 620-square-foot carriage home on a 30,300-square-foot parcel, which is a huge lot for a city home.

Sold in 2 weeks

“It was on the market for 13 days,” before being placed under contract, said Jenny Apel, of Nostalgic Homes, who listed it for the sellers.

“We had competing offers,” for the home in West Highland, she said. “We had upwards of 15 showings from qualified buyers. There was tremendous interest in it.”

Apel represented the sellers, Mags Cheyenne Capital and MDN Capital, which acquired it in a foreclosure last Dec. 30. The previous owner, who had owned the property for the past 26 years, but had done little in the way of improvements, had borrowed $765,000 from the Mags and MDN, Apel said. The home initially was listed at $1.2 million, which Apel knew was a bit on the high side. She said she expected it would sell for about $1 million. Juanita Chacon of RE/MAX Alliance represented the buyers in the transaction.

“This is a rare find,” Apel said. “There are bigger buildings, such as the Lumber Baron Inn and Gardens (a bed and breakfast) in Highland, but this is the largest single-family, detached residential home in northwest Denver. It has a tremendous location.”

Developers not welcome 

A few of the prospective buyers were developers.

“Some came in and looked at it with the idea of knocking down the house and building other properties on the big lot and garbage like that,” Apel said.

Apel, an opponent of RedPeak Properties’ plan for three apartment buildings at the nearby Highland Square area at West 32nd Avenue and Lowell Boulevard, said neither she nor the neighborhood would have stood for the grand house being razed.

“Anybody trying to raze the home would have gone to war with the neighborhood,” she said. “They would have spent so much time and money fighting the neighborhood it would not have been worth the effort. I told the sellers, who are really nice guys, that if they agreed to sell it to someone who was going to raze the home, they would have a fight on their hands and I would be leading the charge. They said, “Calm down, Jenny, we’re not going to sell it to a developer.”

Colorful history

The home has a colorful history.

It was built by William J. Carter, who made a fortune in lumber before coming to Denver. He was one of Denver’s first automobile dealers, launching the Carter Motor Co. in 1909 to sell Overland and Apperson “Jack Rabbit” vehicles. He also invested in real estate, caring a four-block residential neighborhood in 1913 that extended from West 29th and 30th avenues and Perry to Stuart streets. Carter died on the estate at the age of 73 under mysterious circumstances in 1930. Speculation at the time included murder, suicide or a burglary gone wrong. He may have been sleeping with his maid.

Apel said a better buyer than Tallman could not be found.

“The moon and the sun and the stars aligned when Rich bought this house,” said Apel, who toyed with the idea of purchasing it with her husband, but decided it was a bit much to chew off. “I’ve seen his plans for the renovation and they are great. They are going to completely gut and redo the home and the yards. They are going to have a great garden in the front.”

Tallman, who holds an undergraduate and a master’s degree in engineering from the Colorado School of Mines, heads Renova Capital Partners and Renova Capital Group. Renova I and Renova II, as they are called, identify, evaluate and develop clean-energy investment opportunities. Its diverse portfolio includes investments in solar, biomass, water-to-energy and geothermal sectors.

Renovation planned

He will be carrying that green ethos to his new home, Appel said.

“This big home doesn’t have a garage, so one of the first thing he will do is build a four-car garage behind the house and there is where he is going to put on all of the solar panels,” she said.

The renovation will cost an estimated $350,000, although Apel said she wouldn’t be surprised if the total renovation is ends up costing closer to $500,000.

The buyers of the William Carter mansion in West Highland are selling this ultra-modern home in LoHi.

Tallman and Flores currently are selling a modern home at 1815 Boulder Street, in the LoHi neighborhood. The 2,098-square-foot home is listed for $750,000 by Dee Chirafisi of Kentwood City Properties.

Apel said that Tallman and Flores weren’t shopping for an older or bigger home.

“They saw an ad for the home on the back of the North Denver Tribune, drove by the house and decided it was for them,” Apel said. Apel described the mansion as the “King of Highlands!” in the ad.

To see what else is for sale in West Highland, please visit this COhomefinder.com link. To learn what is for sale in Highland, please visit this COhomefinder.com link.

Have a story idea or real estate news tip? Contact John Rebchook at JRCHOOK@gmail.com. InsideRealEstateNews is sponsored by Universal Lending, Land Title Guarantee Co. and 8z Real Estate.

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The new company, 8z Rentals, provides services to assist large and small investment property owners, as well as a variety of services for clients looking for a rental home.   8z Real Estate was founded in November 2009 to serve buyers and sellers in Colorado.

Both companies share one founder, Lane Hornung, who in addition to being the co-founder of 8z Real Estate is its CEO and President. 8z Real estate is a sponsor of InsideRealEstateNews.

In addition to Hornung, Forrest Noble ils a founder of 8z Rentals.

Noble has more than 25 years of property management experience in Boulder county managing as many as 82 properties in his personal portfolio by the late 1990s. He has also been a licensed real estate broker since 1990.

With his background, Noble became well versed in  services that a property management company can provide to ease the hassles for both small and large portfolio landlords.

8z Rentals features the latest technology to connect tenants, or “residents” as the company prefers to call them and property owners.

Free listings

Owners who were otherwise just planning on putting a ‘For Rent by Owner’ sign out can list their property for free on 8zRentals.com, only paying if the resident with the new lease came through 8z Rentals.

After the lease is signed, 8z Rentals’ property management services utilizes cutting-edge technology with easy online rent collections and disbursements, maintenance requests and year end statements prepared by a certified public accountant.

One of the most frustrating aspects for landlords is managing repairs and vendors.  8z Rentals has identified the best local vendors to work with, enabling a quicker repair, whatever it is a leaking pipe an electrical problem or anything else. There are no mark ups on these maintenance costs to the property when 8z Rentals coordinates them.

As vacancy rates shrink across the state, the hunt for a rental home can be all the more time consuming for families looking to make a quick relocation to Colorado and need to identify their rental. As previously reported by InsideRealEstateNews, the first-quarter apartment vacancy rate in Colorado was 5.2 percent.

8z Rentals also has services for resident representation, much like the services frequently found in large cities like New York City, San Francisco and Chicago.  These services vary in price but include neighborhood and available home tours when you visit, as well as help from afar such sending you room measurements, floor-plans and photos of the properties that most interest the new resident.

Using 8z Rentals helps consumers  avoid the all-to-common rental scam increasingly found on sites such as Craiglist, which can waste time and money and be frustrating for investors trying to identify out-0f-state properties.

8z Rentals is headquartered in the same location as 8z Real Estate in Boulder.

However, the company doesn’t plan to just focus in Boulder, but rather expand across the Front Range, from Fort Collins to Colorado Springs.

Lindsey Wolters-Houtz, office manager at 8z Rentals, brings more than 10 years of experience managing hundreds of units in communities from Boulder to Arvada, Westminster and Broomfield.  8z Rentals will soon be adding a desk in 8z Platinum Partners’ office in Cherry Creek , which will allow them to better meet the needs of residents and owners in the Denver metro area.

For more information, please visit 8zRentals.

Have a story idea or news tip? Contact John Rebchook at JRCHOOK@gmail.com.  In addition to 8z Real Estate, InsideRealEstateNews.com is sponsored by Universal Lending and Land Title Guarantee Co. 

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Jim Theye

There is nothing unlucky about the number 13, as far as Kentwood City Properties is concerned.

Kentwood City Properties recently celebrated its 13th anniversary. The company, one of three offices that are part of Kentwood Real Estate, has about 50 brokers.

Kentwood City Properties is co-owned by managing broker Jim Theye, broker associate Dee Chirafis and Peter Niederman, CEO of Kentwood Real Estate

“We opened our original office 13 years ago with about eight brokers,” Theye said.  “We now have 50 of the top-producing real estate professionals in metro Denver.  Our premier location at the corner of 17th and Wynkoop is right across the street from Union Station where there is a wealth of activity and a truly remarkable setting from which to help buyers, sellers and developers.  Clients can find an array of new, renovated, and historic homes in a variety of styles, sizes and price ranges among our many listings.  The lifestyle in and around downtown Denver is exciting, and homeowners can leave their cars at home and commute via bicycle to work or to shopping and dining destinations.  It’s very rewarding to serve this robust market.”

Kentwood City Properties is thriving in what has been a tough market for the past few years,  Niederman noted.

“Over the past few years, we have experienced a challenging market that has brought out the best in our dedicated agents to remain at the top of our game,” Niederman said. “Kentwood City Properties and its leading agents have achieved some lofty goals and the anniversary celebration was a well-deserved break from the highly competitive real estate business.”

Fore more information, please visit: Kentwood City Properties.

Have a story idea or news tip? Contact John Rebchook at JRCHOOK@gmail.com. InsideRealEstateNews.com is sponsored by Universal Lending, Land Title Guarantee and 8z Real Estate.

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Former Gov. Bill Owens stands in front of the new art display at Trinity Place. Photo credit: Jennifer Lustig.

The Broe Real Estate Group has brought  a slice of the majesty of a Colorado mountainscape to the heart of downtown Denver.

The Denver-based company has installed a one-of-a-kind photographic print from world-renowned nature photographer Thomas D. Mangelsen  in the recently renovated lobby of Trinity Place, 1801 Broadway.

The Dawn of Autumn is Mangelsen’s photograph of the 14,017-foot Wilson Peak in the Uncompahgre National Forest in Colorado.

“We wanted to bring the beauty and nature of Colorado into this professional office environment in the heart of Denver,” said Robert Jacobs, chief investment officer of the Broe Group. “We encourage people to visit the building and see the Mangelsen print.”

Mangelsen, whose work is being displayed in the Smithsonian Institution through Jan. 6, said the display in Trinity Place dwarfs the size of anything he has done in the past.

“During my first visit with Pat Broe (founder and owner of his namesake, privately held company) he mentioned that he would like to have a large image of Colorado for the Trinity building in downtown Denver,” said Mangelsen, who was named the 2011 Conservation Photographer of the Year. “Although I told him I could select certain images that could be printed most any size, I did not realize just how large he meant. The Dawn of Autumn is made up of three panels, each 12 feet high by 9 feet wide, by far the largest image I have ever printed.”

Trinity Place is owned by an affiliate of the Denver-based Broe Real Estate Group. Broe also manages it.

Lobby newly renovated

The 17-story Trinity Place building at the intersection of Broadway and East 18th Avenue, across the street from the historic Brown Palace Hotel, recently underwent an extensive lobby renovation incorporating all new finishes.

The building’s location, coupled with easy access and ample downtown parking, is a selling point for tenants seeking downtown office space, according to the company. Office opportunities for new tenants exist with spaces available from small suites of approximately 1,200 square feet to multiple-floor opportunities. Top of the building signage may be available for a larger (multiple-floor) tenant.

Leasing is being handled by Newmark Knight Frank Frederick Ross. Lease information can be obtained at Newmark Knight Frank Frederick Ross’ website  or contacting the leasing brokers, Pete Staab or Judson Robertson, at 303-892-1111.

Tenants at Trinity Place include Citigroup, Cathedral Energy Services and Lago Petroleum Consulting. Tenants that have recently relocated offices to Trinity Place include the Fognani & Faught law firm and Renew Strategies.

Former Governor a tenant

While Renew Strategies is not a household name, its owner is – former Gov. Bill Owens.

Owens is a fan of the new Mangelsen display.

“Seeing that panoramic Mangelsen print every time I walk through the lobby of Trinity Place is a reminder that Colorado is a great place to live and do business,” said Owens,  principal and managing director of Renew Strategies, a private equity water fund and asset manager that specializes in providing water to municipalities and industries. Owens also is on an advisory board for the  Great Western Oil & Gas Co., an affiliate of the Broe Group.

Owens relocated his office from another building in downtown to Trinity Place in December.

The Mangelsen Gallery in Cherry Creek North recently moved to storefront space at 216 Clayton St., a building also managed by the Broe Real Estate Group.

About Broe

Broe Real Estate Group, an affiliate of The Broe Group, provides property management, asset management and advisory services for more than 29 million square feet of affiliate owned and third-party commercial real estate throughout North America. For more information, please visit this link. In addition to real estate, the Broe Group’s umbrella covers railroads and energy companies. The Broe Group’s transportation affiliate, OmniTRAX, Inc., is one of North America’s largest privately held transportation management companies, owning and managing railroads, intermodal service providers, transload companies, ports and related entities throughout North America. For more information, please visit this link.  Great Western Oil & Gas Co. has grown to be one of the top oil producers in Colorado.  For more on The Broe Group, please visit this link.

Have a news tip or story idea? Contact John Rebchook at JRCHOOK@gmail.com. InsideRealEstateNews.com is sponsored by Universal Lending, Land Title Guarantee Co. and 8z Real Estate.

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Lane Hornung

It almost sounds like the name of a play: How to succeed in a low-inventory, high-demand home market which is very trying.

While it’s not the name of a Broadway show, the Front Range real estate market can lead to a lot of drama if you are in the search for a home in certain neighborhoods.

“This market has shifted more rapidly than anyone would have predicted,” said Lane Hornung, President, CEO and Co-founder of 8z Real Estate and COhomefinder.com.

With the year-over-year inventory of unsold homes down 42.5 percent and under contracts up almost 20 percent, bidding wars for homes are becoming increasingly common in along the Front Range.

“Whether it is sustainable is debatable,” Hornung said. “But certainly the reality is that in today’s market if you are trying to buy in the sub-$400,000 price range (sub-$600,000 in places like Boulder), there is a high likelihood you are going to run into multiple offers.”

The suddenly shifting market is the subject of this month’s question-and-answer session between Lane and John Rebchook, of InsideRealEstateNews.com

John: While the low inventory is welcome news for sellers, it is a real challenge for buyers. How does a buyer prepare for a shortage of homes and increased competitors?

Lane: First, if you are trying to buy in one of those markets where there is a shortage of homes and a lot of interest, you have to get rid of the mindset that it is still a buyer’s market. Just leave that at the door.

John: Can you elaborate on that a bit?

Lane: If you are in an area that is a seller’s market, you have to dispense with the notion that you are going to be able to buy a home for 85 or 90 percent of the list price. Ultimately, that mindset will hurt no one but you.

John: It’s a sea-change from not that long ago when a buyer could take their time and look at 30 or 40 homes and feel no sense of urgency, isn’t it?

Lane: It is a tough time to be a buyer. This is a market that has changed so quickly that it has even taken professionals by surprise. If we get some more supply, we could end up with a market a bit more in balance. But you have to be prepared with the realities of today’s market.

John: How fast does a serious buyer need to move on a home?

Lane: Very fast. You need to be prepared to come in quickly. In many cases that means the very same day. Realtors are watching the inventory to see what is new and when you get that phone call from your agent, you have got to be ready to act.

John: If you need to pull out your checkbook on the spot, it sounds like buyers needs to be prepared even before they walk into the home.

Lane: Absolutely. You need to be pre-qualified for a loan before you start looking. That means you must have provided a lender with your work history, pay stubs and other documentation that is required to get a loan.

John: Let’s say you offer the full asking price and that is not enough. How do you decide if you want to get in a bidding war?

Lane: It may not be a pure financial calculation. It depends on how badly you want the home. You obviously don’t want to over-pay and have your basis way too high. But for some people, if the house really meets their needs and their finances, for very rational reasons they could be willing to pay a little more.

John: Is there a danger of getting carried away and bidding too much?

Lane: Yes. Talk to your Realtor to find out what he or she thinks is the fair-market value. Part of the Realtor’s job is to be objective and keep you from being carried away by emotion.

John: Any favorite tip for a buyer in a bidding war?

Lane: I always liked to have a buyer write down two numbers. The first: What do you want to pay? The second is what you are willing to pay. It’s not that you can’t scratch the number out and replace it with a higher one, but it always seems to help to have the numbers on a piece of paper before you get into the frenzy of negotiating.

John: What if you find yourself on the losing end of a bidding war?

Lane: At the end of the day, there is always more than one house that will typically work for most buyers. For most buyers, there are many houses that will meet their needs. It might just be a matter of time. You might need to wait another three months before you find the right home.

John: It must be hard if you have lost out on multiple offers for homes.

Lane: It is very taxing on buyers. Some buyers have bid on five homes and have lost five times. That is very stressful. Some people might need to take a bit of a breather before wading back into the market.

John: Lane, while most the stress in today’s market is on the buyer’s side, can you touch briefly on what it means for a seller pricing her home today?

Lane: First, you can’t count on a bidding war. The Denver/Boulder market, for example, is not anywhere near the frenzied market in the San Francisco Bay area during the peak, when you knew your price was going to get bid up.nThat said, a good Realtor can help you price your home correctly.

John: What will the Realtor bring to the table?

Lane: A Realtor will be able to tell you if you have very much competition in your area. You want to price it for today’s market and maybe in some sizzling markets maybe even a little ahead of the market. If well over 50 percent of the homes in your area are under contract, you might want to price it a little more aggressively.

John: But even in today’s improving market, you don’t want to ask for a ridiculously high price do you?

Lane: There is still a real risk of over-pricing. If you over-price your home and it becomes a stale listing, you can miss your shot at the spotlight.

John: Thanks Lane.

A monthly conversation between Lane Hornung and John Rebchook is a feature of InsideRealEstateNews.com. Hornung is President, CEO and C0-founder of 8z Real Estate, a sponsor of InsideRealEstateNews.com. For more about Lane Hornung and 8z Real Estate, please visit this link.

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Colorado Attorney General John Suthers and HUD Secretary Shaun Donovan watch as Gov. John Hickenlooper speaks.

HUD Secretary Shaun Donovan was in Denver on Monday, where he said about 20,000 Colorado families in Colorado could benefit from $200 million in the $25 billion settlement reached with the nation’s five biggest banks regarding their practices for processing foreclosures.The big banks settled in the wake of widespread practices such as “robo-signing” of foreclosure paperwork, instead of having lawyers scrutinize the documents. Most of the $200 million is earmarked for interest-rate reductions and principal forgiveness. Gov. John Hickenlooper and Colorado Attorney John Suthers joined Donovan for the announcement.

Donovan also was in Denver to help launch the Denver Regional Council of Governments’s sustainable grant. He  spoke about bolstering the Rocky Mountain region’s economic  competitiveness and support affordable housing. Nationwide, he said Denver “stood out,” as a leader in linking housing and jobs.

“It was a delight to have Secretary Donovan in Region VIII and to reinforce HUD’s commitment to regional sustainable communities grant funding,” said Rick Garcia, who heads HUD’s Region VIII, which includes Colorado and neighboring states.

“From the earliest days of the Obama Administration, we looked to partner with places across the country that understood the importance of connecting housing to jobs,” Donovan said. “And of all the remarkable work we saw at the local level—from Pittsburgh to Salt Lake City—Denver stood out.”

FasTracks, a national model

In fact, he said when the U.S. Department of Housing and Urban Development forged the Partnership for Sustainable Communities with its partners, the Department of Transportation and the Environmental Protection Agency, “we saw the work the Denver metro area was doing with FasTracks as a model – for the kind of collaboration, smart planning, and catalytic investment regions need to be successful.” FasTracks, the $6.7 billion light rail and rapid-bus development underway, was the largest transportation initiative in the country when voters approved it in 2004.

Last November, HUD awarded a $4.5 million grant to help DRCOG bring the Metro Vision regional framework to fruition, which Donovan said helps the Denver region plans for “the affordable housing and mixed-use, mixed income communities around these transit corridors that Colorado families need.

“It wasn’t just that this region— home to 57 percent of Colorado’s population and two-thirds of state’s economy—was building more than 100 miles of new light rail, commuter rail, and bus rapid transit lanes, as extraordinary of an accomplishment as that is,” Donovan said. “It was also that you had leaders from the 32 communities surrounding Denver proper working together.  Indeed, with the partnership of DRCOG, each of the diverse communities here understood that countries like China and India don’t see Denver and Arvada – they see a single region, a single economy, a single competitor.”

He said that is exactly the kind of attitude the federal government needs.

“That’s why we’ve awarded $270 million in Sustainable Communities planning grants since President Obama took office – helping communities and regions across the country undertake a new wave of housing, transportation, and land use reform.”

He said the grants “aren’t about telling communities what to do and how to do it – but rather helping them realize their own local visions for success and for creating jobs. Because when it comes to the way communities manage transportation, building and land use, it isn’t just federal barriers that get in the way – but the fact that every community and jurisdiction has a different set of rules and regulations.”

But Donovan said you can’t have a truly sustainable community if everyone doesn’t have access to the opportunities provided by them.

“Across the country, we’ve seen how rising costs in the communities around transit-oriented development too often prevent the families who need it most from being able to afford to live there. Indeed, with the Mile High Connects “equity atlas” Patrick Horvath (the director of the Denver-based Strengthening Neighborhoods Program) and others have created, policymakers in this region have a critical tool to see for themselves exactly how lives are affected—and even shaped—by the design and development of our communities. Indeed, efforts like these show why ensuring every member of this community has access to the jobs, good schools, and affordable housing the $6.7 billion expansion of FasTracks promises isn’t just the right thing to do for families.At a time of scarce public funds, it’s also the smart thing to do for our economy.”

“Making it possible will require the continued engagement of the business community – building on the extraordinary work the Metro Denver Chamber did to get the FasTracks system funded to ensure everyone in this region can benefit from it. It also will require elected leaders here to roll up their sleeves once again and make the tough decisions necessary to get the job done. ”

Have a news tip or real estate story idea? Contact John Rebchook at JRCHOOK@gmail.com. InsideRealEstateNews.com is sponsored by Universal Lending, Land Title Guarantee and 8z Real Estate.

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“Sixty-four million is nothing to sneeze at,” said independent broker Gary Bauer, who released the report that also showed almost a 50 percent drop in the unsold inventory from a year earlier.

The report also showed that while sales of single-family homes priced at $1 million or more are down in April almost 30 percent from April 2011, year-to-date sales volume is higher than in 2011.

An earlier report by Kentwood Real Estate showed a similar trend, although it did not include Boulder County, but focused on the counties in the Denver area. Both reports use Metrolist data.

In April, 20 of the luxury sales were evenly divided between Boulder and Denver counties, according to Bauer. There were eight luxury home sales in Douglas County, six in Arapahoe County and two in Jefferson County. All five condo sales were in Denver.

“The luxury market is almost a mirror of the overall market,” Bauer said. “We are seeing a declining inventory for the luxury market, just like for the overall market.”

One reason that the April sales figures showed a big percentage drop, is because well-heeled buyers have been able to land excellent deals, knocking many homes out of the seven-figure category.

“Many homes that previously were listed at $1 million to $1.15 million or even $1.2 million, are now selling below $1 million,” Bauer said.

There are now only 596 single-family homes on the market, a 48.5 percent drop from the 1,157 active listings in April 2011.

One reason there is such a huge drop in unsold inventory is because owners of high-end homes are seeking options other than outright sales, Bauer said.

“Many owners who haven’t been able to get the price they want are leasing their homes for one-year or two-year options, often with the right to buy the home at the end of the lease,” Bauer said. “Each deal is a separate and unique transaction.”

Often, the listing broker is helping the owner structure the lease arrangement, he said.

In April, the average sales price of a home was $1.6 million, compared with $1.5 million a year earlier and the median sales price was $1.4 million, compared with $1.3 million in April 2011.In April 2011, 51 luxury single-family homes sold for a total dollar volume of $76.million.

In April, five condos sold for a total of $6.2 million, compared with six condos selling in April 2011 for $7.7 million.

In the first four months of the year, there have been 161 total sales for $243.1 million, compared with 156 sales for $235.9 million during the same period in 2011. There have been 148 single-family home sales so far this year for $224.4 million, compared with 143 for $218 million through April of last year. Condo sales are unchanged, with 13 sales, although the condo dollar volume this year was $18.7 million, compared with $17.9 million in the first four months of 2011.

Have a real-estate story idea or a news tip? Contact John Rebchook at JRCHOOK@gmail.com.

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