Mary Rae gave Dee Chirafisi her start in real estate. Now, Mary Rae works for Dee's company, Kentwood City Properties.

Watch Dee and Mary Rae: Dee and Mary Rae Video

When Dee Chirafisi  decided she would dip her toe into the world of real estate in 1993, she interviewed with a number of brokerage companies.

During her interview with Mary Rae, who already had more than 20 years in the business and was one of the top Realtors in the Denver area, Mary asked her the date of her birthday.

“March 28th,” Dee answered.

“That’s my birthday, too,” Mary Rae responded.

“I think that is why she hired me,” Dee, who was last year’s top broker and is the co-owner of Kentwood City Properties, said, while the two met at a $799,000 condo at 1411 Wynkoop St., which Dee is listing. In fact, Dee said that if someone like her – with a freshly minted real estate license, and a plan to work part-time  - came to her for a job today, she wouldn’t hire her. (For the record, Dee only worked part time for one month, before she realized it was a full-time calling.)

After selling her namesake firm, Mary Rae joined Kentwood City Properties about a dozen years ago.

Mary Rae, Dee back together

It’s never been awkward working for her former employee.

“I just revel in Dee’s successes,” said Mary Rae.

And they share more than a birthday, separated by 20 years. (Dee turns 50, while Mary Rae is turning 70.)

Despite the stereotype of women never admitting their ages, neither have any problem about being upfront about how many candles to place on their cake.

“Everyone knows, anyway,” said Dee, an avid runner.

“I only think about my age once a year,” Mary Rae said. “I don’t feel like I’m 70.”

Passion for real estate

And they both frequently use the word “passion” to discuss their profession. They both still get excited about finding the right person for the home, and when listing a home, helping sellers get the highest price,  despite a market that is as challenging as this one.

Challenging. Now that’s an understatement.

Mary Rae says that last year was the toughest she has seen since she left the oil business as a “Girl Friday” to two  wildcatters, to “join this crazy world of real estate,” in 1973. She was drawn to the business to save a historic home, and was told that a good way she could do that was to become a Realtor. Two years later, she started her own firm.

“I thought the ’80s was a real humdoozle,” Mary Rae said, while enjoying the sun on a recent balmy Friday. “But last year was something else. There was no one who wasn’t impacted by the economy last year. In some ways, I think that brought people closer; we all shared in the pain. No one was left untouched. It seems like it is a baptism of fire every decade.”

Dee said the market is showing more life this year than last, as especially at the high-end.

“The toughest thing of selling a unit like this one, is getting financing,” Dee said. “I just came back from meeting with (a major lender) to try to find ways to try to help buyers. It’s especially hard because this building is 80 percent commercial, and there are new rules making it tougher to get loans on a mixed-use project like this one. Of course, that was not an issue when they started developing it.”

So far, 13 of the 22 units have been sold, with buyers ranging from a couple of single professionals, a real estate developer with a 9-year-old, a doctor, and a couple with a home in Summit County, who use their condo when they come downtown. Coincidentally, two people who previously were neighbors in Country Club sold their big homes to move to the development along Cherry Creek and a short walk from the Pepsi Center and the Denver Performing Arts Center, but didn’t know they had bought in the same building until they met at a mixer for the new residents.

As far as Mary Rae working for her former employee, there has never been any awkwardness.

“I revel in Dee’s success,” Mary Rae said.

Realtors more important than ever

Dee said that the biggest change she has seen since she began her career was the advent and reliance of technology.

“But I actually think we’re going to see some backlash to technology,” Dee said. “People think that they have so much information at their fingertips that they don’t need brokers anymore. Then they find out that the information they find on the Internet is often two months out of date. Or, they have so much information they are just overwhelmed, and they need someone to help them make sense of it.”

Mary Rae couldn’t agree more.

“I don’t think that Realtors are going away; if anything, I think we’re going to be more important than ever,” Mary Rae said.

For an earlier Q&A with Dee, please visit this link.

These two top brokers at Kentwood City Properties both were born on March 28, - 20 years apart. They're shown in a condo Dee is listing at 1411 Wynkoop St.

Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865.

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Video: Chris Mygatt

Mayor John Hickenlooper addresses 900 people attending the Colorado Real Estate & Economic Summit, Wednesday night, March 10.

“I am an optimist.”

That was the message from John Hickenlooper, Denver mayor and Democratic gubernatorial candidate, when he addressed 900 real estate officials on Wednesday night.

And Hickenlooper was not alone.

For the most part, most of the seven heavy weight speakers at the Colorado Real Estate & Economic Summit on Wednesday night, were bullish on the prospect  that Denver and the state will emerge from the current real estate and economic downturn faster than most places, although the markets are not out of the woods yet.

Hickenlooper said that after being laid off as a geologist in 1986, and after deciding to open Denver’s first brewpub, he almost gave up at one point because he was so distressed. He said, as he has often in the past, that even his mother would not invest in what was to be called Wynkoop Brewing in what is now called LoDo.

That is when he received the sage advice that he had worked so hard, “and that he  had gotten over the worst of it,” and if he did not give up now, he would benefit from the experience in all his future endeavors.

That is where the Denver-area and the state economies now stand, Hickenlooper said.  While unemployment is still too high, he said he believes the worst is over. “This is not a depression,” he said.

Hickenlooper did  did not make his speech overtly political, barely mentioning he was running for governor. However, he did receive a round of applause when he said he was going to do his best to make his gubernatorial campaign as free of personal attacks as when he ran for mayor. Hickenlooper’s Republican opponent is likely to be Congressman Scott McInnis of Grand Junction. Hickenlooper did joke that since putting his hat in the ring, he now calls it the “Best Slope,” instead of the “West Slope,” noting that the entire state, made up of different regions, needs to thrive. And the Western Slope, with everything from world-class trout fishing to skiing, makes Colorado special, he said.

Glow of DNC still felt

Hickenlooper noted that in the past year, the Denver-area has received an unprecedented amount of national press, as one of the best places to live and work. He said that while the Denver-area has improved, it is not so much that it should now be ranked No. 1, 2 or 3, while previously it was ranked much lower. He credited much of the improvement in rankings because the area was placed under an international spotlight during the Democratic Convention in 2008.

Denver also could receive similar media attention this July, when Denver hosts the first “Biennial of the Americas,” when the city host dignitaries, intellectuals, business leaders and politicians from the Western Hemisphere.  He said many people do not realize that the U.S. gets more oil from the Western Hemisphere than from the Middle East and that Brazil is the world’s sixth largest economy.

Obama may attend Denver conference

“There is a one in three chance that President Obama will attend,” he said. Hickenlooper said the biennial has been in the works for the past four years, although it may have to be scaled back in its inaugural year because of the economy. He said no city or state monies are being used to fund it. In the future, he said, he hopes major corporate sponsors, such as the Cokes, Pepsis, Googles and IBMs of the world will fund it.

Meanwhile, to help Denver back on its financial feet, he noted that his administration fast-tracked $550 million in bond construciton work that voters previously had approved. While the projects would normally take five years to complete, almost all of them will be completed in 3 to 3.5 years, he said. Not only does that put people to work, but he said that it makes people feel better  about the economy when they see workers improve things such as parks, roads and libraries.

FasTracks a national model

Speaking of FasTracks  - the multi-billion light rail and rapid-bus transport system, that is –  he also lauded the 32 mayors in the Denver area for supporting it before voters approved it in 2004. No place else in the country has ever showed as much unanimity, he said. Later, another speaker, Brian Phetteplace, manager of Residential and Retail Development for the Downtown Denver Partnership, said that no matter what happens to other lines along FasTracks, Denver Union Station will be transformed into the transportation hub for the entire region, thanks to a recent $300 million commitment to the project by the federal government.

“Work hard, be nice,” Hickenlooper told the audience, as he left the stage at the packed PPA Convention and Event Center, 2105 Decatur St.

Next up was Chris Mygatt, president of Coldwell Banker Residentail Brokerage in Colorado.

Mygatt said that real estate accounts for 21 percent of the GNP, “so if you do not fix real estate, you cannot fi the economy.”

Housing as local as weather

But he said housing is like the weather. He said there is no average temperature for the U.S. No one turns on the TV in the morning, finds out what the weather is going to be for the entire country, and then decides what to wear, he noted. That is why national data on housing isn’t much use to someone trying to buy or sell a home in the Denver area, or any other market for that matter, he said.

Drilling deeper, Denver is really “a split market,” Mygatt said. For homes priced less than $270,000 “there are three buyers for every home. For homes over $470,000, there are three home for every buyer.” In other words, the Denver area is a seller’s market for lower-priced home and a buyer’s market for more expensive homes.

Because of the supply and demand differences at opposite ends of the spectrum, he said some of the biggest bargains can be found at the upper end. The appetite of well-heeled buyers seems to be growing for expensive homes, he noted. The most expensive home in the Denver area last year sold for $6.7 million. Currently,there are 31 homes on the market above that price. Mygatt said that a lot of owners of resort properties in the mountains are willing to deal because of an over-supply of units, giving buyers the best opportunity to buy a second home in recent memory. Another speaker, Allen Hurst, of PHH Mortgage, said that there are now a number of lenders offering jumbo mortgages, for those that are above the $417,000 mortgage limit for conventional loans. Last year, jumbo loans were very difficult to find, and required huge down payments and typically were expensive. Now, they typically can be found for one percentage point above conventional loans, he said.

Shadow market positive

Mygatt said there also may be a “shadow market” of 7,000 to 12,000 on the market, being held by banks, which are not yet for sale. Because most of them are lower-priced homes, which is experiencing strong demand, the shadow inventory actually will be good for the market, he said, as long as they are not dumped on the market at the same time.

Still, the housing market is not yet recovered, and will not be until the unemployment picture improves, said long-time developer Walter A. “Buz” Koelbel, president of Koelbel & Co.

Koelbel said that this is the worst economy that his company has experienced in its 57 years in business.

Jobs,  jobs,  jobs

He said the mantra for real estate is no longer “location, location, location,” but “jobs, jobs, jobs.”

Following the meeting, he told InsideRealEstateNews.com that if participants took away nothing else from the conference, it should be the need for more jobs. He said the danger is that employers, who have been forced to scale back, will not hire even as their businesses improve.

“Politicians talk about raising taxes or adding new taxes,” Koelbel said. “What they don’t understand, any money they raise – and it’s debatable whether they end up raising any additional revenues – pales compared to people being employed and feeling secure enough in their jobs to buy homes. Someone buying a home does far more for the economy than raising taxes. Schools, which depend on property taxes, are especially hard hit during a housing slump.

“So what it comes down to is truly jobs, jobs, jobs,” Koelbel said. “End of story.”

Chris Mygatt, president of Coldwell Banker Residential Realty Colorado, addresses 900 people Wednesday night at the Colorado Real Estate & Economic Summit.

John Rebchook can be reached at JRCHOOK@gmail.com or 303-945-6865.

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Overall, Colorado ranked No. 11 nationwide, shows the report by Irvine, Calif.-based RealtyTrac. A few years ago, Colorado was typically ranked in the top three. Even last year, Colorado consistently was in the top 10, as far as its foreclosure rate. But Colorado’s ranking has slipped, while the foreclosure rate has climbed in other parts of the country, especially California, Nevada and Florida.

“The latest report seems to be continuing the trend in which Colorado ranks near the national average in its foreclosure rate,” said Ryan McMaken, spokesman for the Colorado Division of Housing, who uses a different methodology to track foreclosures in Colorado.

Colorado’s foreclosure rate in February rose by 22.2 percent from February 2009, while the overall national increase was 6.22 percent, according to RealtyTrac. And from January, Colorado’s foreclosure rate rose 2.49 percent, while the nation as a whole saw a month-to-month decline of 2.28 percent. RealtyTrac tracks every aspect of foreclosures, from the first notice to delinquent homeowners until the property becomes a REO and is in the hands of the lender.

Colorado 39th in delinquent loans

But McMaken said that RealyTrac’s numbers do not tell the entire story.

“As usual, the Realtytrac state rankings should be checked against the mortgage bankers data which shows Colorado at 39th in the nation for the number of loans that are seriously delinquent,” McMaken said. “The fact that Colorado is falling much more quickly in delinquency rankings than in Realtytrac rankings would lead me to conclude that Colorado is very slowly dealing with its accumulated inventory of foreclosing properties, but that the rate at which new properties are defaulting in Colorado is slowing at a much faster rate.

“This all only tells us what’s going on in Colorado relative to other states, of course. Colorado is clearly improving compared to other states, but still has its own set of challenges, and is improving only very slowly over past annual activity”

McMaken also said that the 22 percent year-over-year comparison is misleading, although he said a state report, that likely will be released next week, also will show an increase.

“However, it is important to keep in mind that there was very little activity in February 2009 due to moratoria put on foreclosures by major servicers and investors,” McMaken said. “This means a year-over-year comparison will show a large increase in foreclosure, but it does not mean that the real estate markets have deteriorated in that time to the same extent.”

U.S. foreclosure rise 6%

Nationwide, RealtyTrac showed 308,524  foreclosure filings –  default notices, scheduled auctions and bank repossessions –   6 percent above the level reported in February 2009.

“The 6 percent year-over-year increase we saw in February was the smallest annual increase we’ve seen since January 2006, when we began calculating year-over-year increases, but it still marked the 50th consecutive month of year-over-year increases in foreclosure activity,” said James J. Saccacio, chief executive officer of RealtyTrac. “This leveling of the foreclosure trend is not necessarily evidence that fewer homeowners are in distress and at risk for foreclosure, but rather that foreclosure prevention programs, legislation and other processing delays are in effect capping monthly foreclosure activity — albeit at a historically high level that will likely continue for an extended period.

“In addition, severe winter weather appears to have temporarily slowed the processing of foreclosure records in some Northeastern and Mid-Atlantic states.”

Foreclosure activity by type

Default notices (Notices of Default and Lis Pendens) were reported on a total of 106,208 U.S. properties during the month, an increase of 3 percent from the previous month but down 3 percent from February 2009. Default notices were down 25 percent from their peak of more than 142,000 in April 2009 but were still more than three times the number they were four years ago in February 2006. Foreclosure auctions (Notices of Trustee’s Sale and Notices of Sheriff’s Sales) were scheduled for the first time on a total of 123,633 U.S. properties, a decrease of 1 percent from the previous month but still 16 percent higher than the level reported in February 2009. Scheduled auctions were down 14 percent from their peak of more than 144,000 in August 2009 but were also about three times higher than the number reported in February 2006. Bank repossessions (REOs) were reported on a total of 78,683 U.S. properties during the month, a 10 percent decrease from the previous month but an increase of 6 percent from February 2009. Bank repossessions were down nearly 15 percent from their peak of more than 92,000 in December 2009 but were at nearly twice the level reported in February 2006.

Nevada, Arizona, Florida post top state foreclosure rates

Nevada foreclosure activity decreased nearly 7 percent from the previous month and was down 30 percent from February 2009, but the state’s foreclosure rate continued to rank highest in the nation for the 38th month in a row. One in every 102 Nevada housing units received a foreclosure filing during the month — more than four times the national average. Arizona and Florida documented nearly identical foreclosure rates, with one in every 163 housing units receiving a foreclosure filing in both states. Despite a nearly 21 percent decrease in foreclosure activity from the previous month, Arizona’s rate was statistically slightly higher than Florida’s rate and ranked second highest among the states. California’s foreclosure rate ranked fourth highest among the states, with one in every 195 housing units receiving a foreclosure filing during the month, and Michigan’s foreclosure rate ranked fifth highest among the states, with one in every 226 housing units receiving a foreclosure filing.

Other states with foreclosure rates among the nation’s 10 highest were Utah (one in every 275 housing units), Idaho (one in 296), Illinois (one in 305), Georgia (one in 331) and Maryland (one in 407.)

6 states account for 60% of foreclosures

Six states account for more than 60 percent of national total in February. California led the way, with 68,562 properties receiving a foreclosure filing during the month — down nearly 5 percent from the previous month and down 15 percent fromFebruary 2009. Foreclosure activity in Florida increased nearly 15 percent from the previous month and was up more than 16 percent from February 2009. The state continued to post the nation’s second highest total, with 54,032 properties received a foreclosure filing during the month. Increasing foreclosure activity boosted Michigan’s total to third highest among the states. A total of 20,028 Michigan properties received a foreclosure filing during the month — up nearly 14 percent from the previous month and up 59 percent from February 2009. With 17,312 properties receiving a foreclosure filing, Illinois posted the fourth highest total, followed by Arizona, with 16,718 properties receiving a foreclosure filing, and Texas, with 12,638 properties receiving a foreclosure filing in February. Other states with totals among the 10 highest in the country were Georgia (12,177), Ohio (11,286), Nevada (11,035), and Maryland (5,732).

Divergent trends

Metro areas in the Sun Belt states of Nevada, Florida, California and Arizona continued to dominate the top 10 highest foreclosure rates among metropolitan areas with a population of 200,000 or more, but activity trends in these areas varied considerably. The Las Vegas metro area documented the highest metro foreclosure rate, with one in every 90 housing units receiving a foreclosure filing during the month, despite a 9 percent decrease in foreclosure activity from the previous month. Six of the other metro areas in the top 10 — all in California or Arizona — also reported decreasing foreclosure activity from the previous month. The biggest monthly decrease among the top 10 was in the Phoenix metro area, where foreclosure activity dropped nearly 18 percent. In contrast, the two Florida metro areas in the top 10 both posted substantial monthly increases in foreclosure activity. The Cape Coral-Fort Myers metro area saw a 31 percent increase in foreclosure activity from the previous month, giving it the second highest metro foreclosure rate — one in every 92 housing units receiving a foreclosure filing. An increase of nearly 66 percent in foreclosure activity from the previous month helped boost the foreclosure rate in Port St. Lucie to sixth highest.

Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865.

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Brian Chappelle addresses about 200 people at Universal Land's annual meeting on Tuesday, March 9, at the Cable Center.

It was not your typical annual meeting.

Before the lights came on in the auditorium of the Cable Center on the University of Denver campus, voices rang out to tune of the Black Eyed Peas hit “I Gotta Feelin,” but with sly references to the mortgage industry and nods to host Universal Lending, which is celebrating its 39th year in business, and held its annual meeting on Tuesday. (Universal Lending also is a sponsor of InsideRealEstateNews.com.)

Lotta Change

The lone woman singer of the trio, performed with the stage name “Lotta Change;” Brian Chappelle, the keynote speaker, noted several times that “lotta change” nails exactly what is happening in the mortgage and real estate industries.

“Washington thinks the mortgage system is broken,” Chappelle, a partner of Potomac Partners in Washington, D.C., told about 200 people in the audience at one point. And Congress, he said, “Wants its pound of flesh,” from the industry.

Draconian measures unlikely

Yet, overall, Chappelle said that he is much more optimistic about new regulations and changes that Congress is likely going to enact. For the most part, he does not feel Congress is going to implement “Draconian” measures feared by many industry observers.

For example, he does not think that Congress will pass new “risk-retention” legislation, which would require lenders to put aside 5 percent to 10 percent of the amount of loans sold into secondary markets. (For an earlier blog on this subject, please visit this link.)

“This is probably the most critical issue facing the mortgage industry,” Chappelle told InsideRealEstateNews, before he gave his keynote speech. “It sounds good. Have lenders have some “skin-in-the-game” so they won’t give the consumers the horrible products that started the housing collapse.”

Risk Retention

While risk retention might be a good idea for the so-called toxic loans of a few years ago – option ARMs, stated-income loans, the piggyback 80-20 loans that combined first and second mortgages – those products are not offered anymore, he said. Indeed, a national report released last week, showed that consumers were almost three times likely to face default if they have risky loans than if they have safer, more traditional loans. (For more on that report, please visit this link.) Chappelle later told the audience that the greatest percentage increase in loan defaults is occurring in the “prime” loans, which are supposed to have been offered to the best clients.

Six months ago, Chappelle said, he thought there was a strong likelihood that Congress would adopt the new rule, but he said now they increasingly realize that no company, big or small, has the ability to put aside tens of millions – or even hundreds of millions or even billions – in dollars. But he said the political winds seem to have shifted, as legislators have been schooled on the unintended consequences of the rule, which opponents believe could pose a threat to the entire industry.

Mortgage rates to remain low

On another important topic, he said he does not see mortgage rates spiraling out-of-control, as some observers had worried as little as a month ago. There was a feeling earlier this year that Uncle Sam would stop buying securitized mortgages by April 1, which could have caused mortgage rates to rise by 150 basis points or more almost immediately.

“I’m not an economist, but when I listen to people like Treasury Secretary (Timothy) Geithner and Fed Chairman Ben Bernanke, for the foreseeable future they plan to keep their foot on the accelerator to help drive the economy,” Chappelle said. “What that means is that they have to keep interest rates low. They know that the overall economy will not recover, unless the housing market recovers. And the housing market won’t recover unless interest rates remain low.”

He said one economist he has been following since he was with the Mortgage Bankers Association in the 1990s, is Laurence Meyer, a former Federal Reserve Governor and the head of Macroeconomic Advisers in St. Louis. “Laurence says, “Wait until you see the Fed changes its forecast,” before rates start to rise. But Chappelle said with inflation remaining tame, there is no indication that the Fed will be under any pressure to raise rates anytime soon. Also, he said there appears to be little chance that Congress will extend the federal tax credits for qualified first-time home buyers and some existing homeowners. In order to keep the housing market rolling, one of the few tools in its kit will be to keep interest rates at low levels, he said.

Simplicity goal

One thing is certain, is that there will continue to be more disclosures, transparency and responsibility expected from lenders in the future, Chappelle said. The idea will be to simplify all of the charges and expenses to consumers, he said. On one hand, the government wants more disclosure, but on the other hand, there is a feeling by the government that getting a loan is so complicated, that disclosures don’t really work, he said. Ultimately, he said, the government would like all of the information boiled down to one rate, so consumers could more easily compare competing offers from different companies.

And without a doubt, this will mean more forms to fill out, under the guise of simplification, he said. The good news, is that the added complexity will benefit companies, such as Universal Lending and others, he said, that “know how to follow rules.” Some companies, for example, will not want to make FHA-insured loans, which could account for 50 percent of the loans made this year nationwide, because they don’t want to or find it to difficult to follow the maze of rules that exist and will emerge. Companies that can explain what is going on to consumers and Realtors, he said, will prosper.

The government also would eventually like to have mortgage brokers paid the same for any loan, no matter what the size. For example, they might get paid $1,500 for a $100,000 loan and $1,500 for a $400,000 loan. The idea is that there would be no financial incentive for a broker to convince someone to take out a mortgage that they can’t afford. Mortgage companies would still set the amount paid to brokers and it could be adjusted. But Chappelle said there is no chance of that happening this year. And even if it does happen in the next few years, he said that there will be no cap put on what brokers can make, “so you will still be able to make a good living as a mortgage broker.”

And more regulations and proposals are surely going to be floated, discussed and dissected by the industry and Congress.

“There’s going to be a lotta changes, but change makes for opportunities,” Chappelle said.

Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865.

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Year-to-date median prices of Denver-area homes sold each February from 1999 to 2010. Source: Gary Bauer

The Denver-area housing market showed signs of a continued recovery in February, according to reports released today.

“First time home buyers are back in the market, as well as investors,” said Gary Bauer, an independent broker who releases a monthly report based on Metrolist data, which reflects homes sold by Denver-area Realtors.

He added that the “inventory is up, pricing (is) up, mortgage rates (are) steady,” and, perhaps most important, “it’s Denver.”

Home prices are up well into the double digits from a year earlier – led by a 20% increase in the average price of a condo at $166,206, compared with $138,239 in February 2009. And the median price of a single-family home that closed last month, compared with February 2009, rose almost 15 percent to $220,750 from $192,000. The increase largely reflects  competition from investors and first-time home buyers bidding up low-priced homes, Bauer and others said.

Bidding Wars

David Simonson, a broker with RE/MAX Professionals, experienced that today.

He had a client looking at a home along the southeast suburban corridor priced at about $230,000.

“The home had been on the market for all of four days, and it already had four offers above the listing price,” Simonson said. “It’s completely a bidding war.”

And for homes priced at $150,000 or less, the bidding is even fiercer.

“For those homes, investors can’t pull out their checkbooks fast enough,” Simonson said. “If you look on the HUD Web site for foreclosures, as soon as people can make open bids on them, they disappear.”

Meanwhile, there were 4,414 homes placed under contract in February, up 5.5 percent from the 4,183 in February 2009, reversing the trend of most of 2009, in which under contracts lagged the same month a year earlier. Under contracts jumped 19.6 percent from the 3,690 home contacts in January, but a large month-to-month increase often is seen for seasonal reasons early in a year.

High-end housing picking up

Chris Mygatt, president of Coldwell Banker Residential Brokerage Colorado, said that savvy, well-heeled buyers are snapping up seven-figure bargains.

“I thought it was just great news all the way around, but especially at the high-end,” Mygatt said. “We super out-performed where we were a year ago. I think we had 32 home sales in the $1 million-plus range compared to 14 in February 2009. I’m cautiously optimistic. February is now the sixth consecutive month we have seen average prices increase.”

As far as the ultra-expensive markets, he said that some lenders are loosening their purse strings.

“Sometimes people are buying the loans down to $417,000 so they can get conventional loans, but we also are seeing some jumbo loans in the high 5 (percent) and low 6 (percent), which are really great rates when you’re talking about an $800,000 or more loan,” Mygatt said.

Not that they are easy to get.

“The lenders are looking for super-high FICO scores, big down payments, and other assets,” Mygatt said. “But I do think that the people who have the ability and the courage to buy at these prices, are getting super-extraordinary deals. We see it every day. And I think those people are going to look back a few years ago and be very glad they purchased in today’s market.”

But those homes still make up a small percentage of the overall market. In the first two months of the year, 51 homes and condos priced at $1 million or more have sold, accounting for 1.5 percent of the overall market.

“While we’re still not seeing a lot of activity in the high-end this year, it is much more than the previous year,” Bauer said. “We are starting to see a few more foreclosures and short sales in the high-end market. And while there are not a lot of jumbo loans out there, there is more money available for high-end purchases than before. And there is some pent-up demand growing for luxury homes. I think that is another example where Denver is a couple of steps ahead of the rest of the nation.”

Brian Chappelle, a founding partner of the Washington, D.C.-based Potomac Partners consulting firm, who was the keynote speaker at Universal Lending’s annual meeting today, said that from a national perspective, “all the news coming out of Denver sounds very encouraging.” About 200 people heard Chappelle speak on a wide variety of housing and mortgage industry topics at the Cable Center on the University of Denver’s campus. (Universal Lending is a sponsor of InsideRealEstateNews.)

Tax Credits Expiring

Bauer said that Denver-area buyers increasingly are taking advantage of the $8,000 federal tax credit available for first-time home buyers. There also is a $6,500-tax credit for qualified homeowners, planning to move up or down.

Chappelle said buyers who want to take advantage of the credits better do so quickly, because Congress is very unlikely to extend them. The credits require that a house be placed under contract by April 30 and closed by June 30. The credits initially were going to expire last November.

“I think there is a feeling in Congress that they are not getting much bang for the buck with the tax credits,” Chappelle said in an interview with InsideRealEstateNews, before his presentation. “They were very helpful at six months ago, but there is a feeling now that most of the people who will use the tax credit, would have bought a house anyway.”

Simonson, of RE/MAX, agreed.

“I think the March numbers will reflect some of the tax-credit activity, like February did,” Simonson said. “And I think when they are over, we will see a little drop off. But it will be a blip. I think most people who really wanted to take advantage of it, did so last year. Now, people will take advantage of it if they can, but I don’t think it is the driving force it was last year.”

Chappelle said the odds of Congress extending the tax credits were at 10 or 20 percent, at the most, especially if the housing recovery shows signs of recovering without them.

“Now, if housing were to fall off a cliff when they go away, Congress might do something, although I don’t know if it would be to extend the federal tax credits,” Chappelle said.

Rates to remain low

And that means interest rates will remain at their near-record lows, he said.

“There had been some fears that the Fed would stop mortgage securities a the end of March, and interest rates would shoot up,” Chappelle said. “I don’t see that happening. Congress realizes the only way the economy is going to recover, is if the housing market recovers. And the only way the housing market can recover, is if interest rates remain low.” He said the Fed can keep rates low, because there are no signs that inflation is an imminent threat.

Larry McGee, a broker with the Berkshire Group, noted that February’s statistics reflect “positive news” in year-0ver-year and month-over-month increases in average and median prices.

Inventory remains low

He does show some concern, however, on the small number of homes on the market. Bauer puts the unsold inventory at 19,359, down 3.5 percent from a year earlier, while McGee puts it at 18,669. The slight difference is because Bauer added a new category for homes created by Metrolist, called “pending” sales, back into the unsold inventory.

Either way, “this  is an extraordinarily small amount of homes available for the Denver market, especially considering the low number of new built homes being constructed at this time,” McGee said. Bauer said he was surprised there are not more homes on the market.

McGee said reasons for the low inventory include  ”high unemployment making it difficult to sell, a lack of financing available for home loans in the $400,000 to $1 million  market, a lack of equity for many home owners that must remain in place until a rise in market prices creates enough usable equity to allow a sale of the present home and a purchase of a more desirable one.”

A snapshot of sales activity by price, county

Source: Gary Bauer

Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865

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The club, at 1201 16th St., Suite 300, will feature cathedral-height ceilings, floor-to-ceiling windows overlooking the 16th Street Mall, a 16-foot water curtain and living bamboo and combine that with the “Ferrari” of fitness equipment, a saline pool, executive services and amenities, and much more.

“CAC-Tabor Center will be a flagship athletic club not only in downtown Denver, but throughout the metro area,” said Ed Williams, president of the Colorado Athletic Clubs. “Members will feel that the club fits into their lifestyle in terms of convenience, design and peer group. In addition, the club will host premier amenities in the fitness category by offering everything from functional training to heart pumping group fitness classes and individual viewing screens on the cardio equipment to complimentary hot yoga.”

Club sport many features

CAC-Tabor Center’s amenities  include :

A design that features 22-foot high ceilings, floor to ceiling windows, skylights, a “W” style café and an executive boardroom.

An entry that sports a  16-foot tall “water curtain” and living bamboo.

Techno Gym fitness equipment, sometimes referred to as the “Ferrari” of fitness equipment for its sleek design and quality.

A patio overlooking the 16th Street Mall that can be used for everything from Spin and Yoga classes, to parties and after workout cool downs.

An informal café that can be used for business meetings, networking or socializing (over a glass of wine or beer).

Dedicated fitness studios (Group Fitness, Group Cycling, STOTT Pilates and Yoga) and workout areas (functional training, strength training and cardio), staffed by professionals trained to deal with the needs and demands of their time-sensitive clientele.

Locker rooms including whirlpools, steamrooms and saunas to ironing boards and curling irons.

An Italian-made, 25-yard, four lane indoor saline pool.

“Downtown Denver has never had an athletic club as focused on the needs and lifestyle of busy professionals,” said Williams.

Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865

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By the the numbers, and specific categories, this is how the Denver-Aurora metropolitan statistical was ranked when compared to 39 other MSAs.

Unemployment:  No. 6

Home Prices:  No. 11

Metropolitan Gross Domestic Product:  No. 17

Three-Year Job Growth Forecast:  No. 10.

Job Growth, 2007-2009 :  No. 20

The Washington, D.C. MSA and Austin, Texas, tied for No. 1.

Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865.

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“We are not aware of anyone else who is doing this,” said Tyrone Adams, spokesman for CAR. “The program already has been launched.  But it’s been sort of a soft launch.  We have about 10 members participating in it.  Now, we’re getting the word out to all 23,000 of our members to get them to participate.”

CAR has partnered with QSC Quality Service Certification program to help consumers make better, more informed decisions when choosing a real estate professional.

Independently validated service results, data and unfiltered customer comments will be available to consumers at an independent Website, www.QualityService.org, providing consumers with a source of valuable information  with their Realtor. To ensure the integrity of the process, every closed transaction is surveyed and only consumers who participate in a closed transaction participate in the survey process.

“Our goal is to offer each of our 23,000 licensed real estate professionals access to an optional suite of resources to enhance service delivery skills and to help bring greater assurance of consistent, reliable and accountable service to their real estate clients,” said Robert E. Golden, CAR’s CEO.

Customer feedback critical

The Quality Service Certification program brings a standard of service, an organized service delivery process, the offer of a written service guarantee, an independent quality measurement and customer feedback system and higher accountability that results in more consistent service and an improved value proposition for consumers, CAR said.

“In today’s business environment, real estate professionals want access to the best tools, resources and technology to help them deliver their very best service,” said Larry McGee, chairman of the CAR Professional Development task force.  ”Consumers want to make better, more informed decisions when researching and selecting a real estate professional to represent them. QSC offers resources and technology to meet the needs of consumers and real estate professionals, alike,” said Larry McGee, chairman of the CAR Professional Development task force.

Quality Service Certification, Inc. with headquarters in San Juan Capistrano, Calif. is a leading  resource for training, systems, technology and performance assessment in the real estate brokerage and mortgage origination industries.

Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865.

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Ben Ellefson is launching a program for new and aspiring real estate agents.

Ben Ellefson, who was named  Denver’s “Realtor of the Year” and “Rookie Realtor of the Year” in 2008 by the North Metro Denver Realtor Association, wants to share what he has learned with other fledgling real estate agents.

Elefson, an agent with Innovative Real Estate,  has developed a educational course for aspiring real estate brokers.

“There isn’t an apprenticeship program for beginning brokers to learn how to succeed in a very competitive industry,” said Ellefson. “My goal is to help people — who want to begin a career as a professional broker — learn some of the nuances, and most importantly, learn how to be a professional and treat the industry with respect. There are many obstacles and pitfalls out there, and I’m looking forward to sharing my knowledge and what I’ve learned with others.”

Variety of topics

The course will cover topics including:

How to start a business.

What to watch out for during the first 12 months.

How to market to your sphere.

Negotiation fundamentals.

Closing techniques.

How to brand yourself.

Dealing with short sales.

Working with new homes.

Establishing long- lasting referral sources.

Ellefson will be joined by other top brokers, including LaTonya Bohnenkamp of Innovative Real Estate, Laura Ruch of Keller Williams, Heidi Marshall of Keller Williams Red Door Group and Mike Walker of Innovative Real Estate.

Ellefson’s classes will take place on the second Tuesday of every month, beginning Thursday, April 1.  Contact Ben Ellefson at 303-591-7529 or at   bellefson@iregroup.com

Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865.

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