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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Stephanie Prather

Today’s Denver-area housing market reminds 8z Real Estate broker Stephanie Prather of the 1991 to 1992 market.

Then, the market had been suffering from several years of a housing black hole. Overbuilding and a collapse in energy prices, which had been fueling the economy, crushed home values. There were so many foreclosures that HUD became Denver’s largest landlords. For many, the only light at the end of the tunnel appeared to be from a speeding train. Many believed the worst was yet to come.

Instead of a train wreck, the market quickly was back on track, with the Denver market experiencing 15 years of mostly improving home prices.

“The market has changed dramatically since December,” said Prather, a 20-year veteran of selling real estate, who specializes in the Lakewood area at 8z.

Demand increasing

“Inventory is down, buyers are out there in droves because of the low-interest rates and ever-increasing rental rates,” Prather said. “Homes are going under contract in one to three days if they are priced right for condition and location. If all is right, sellers are receiving multiple offers.”

That has led to a sense of urgency among serious buyers, she said.

“Actually, I have had a few buyers drop out of the market they became so frustrated. Buyers have to adjust to a new paradigm, when they see something they like, they have to pay full price or close to it. No more beating up sellers with low-ball offers.”

Prather said that prospective buyers need to be prepared.

“My advice is to be fully pre-approved with your lender and only look at homes of the most interest to you.” She said. “Be prepared to make an offer immediately if the home meets at least 85 percent or more of your housing needs. Buyers have to be financially ready in every way and they can win the deal.”

To illustrate the reality of today’s market, she told of a case where her buyer was in a back-up position on a purchase.

“We stayed in the game hoping the first offer would fall,” Prather said. “In the meantime, new listings were coming up on the MLS and being sent to my buyer. They called to see a new listing in the neighborhood of the back-up offer home. We saw the home within 12 hours of it going on the market; they liked it and wanted to submit an offer. I called the listing agent immediately upon exiting the home. He had received an offer that morning but the seller had not accepted it. The listing agent told me that the offer was at full price and non-contingent.”

Prather wrote a contact for $337,000, $2,000 above the asking price of $335,000. Her client also provided an extended closing, allowing the seller to find the a replacement house.

“The other agent with the offer was notified of the competing offer and for their buyer to offer their best and final,” she said. “Well, I don’t know what their best and final was, but my client won. Yeh! The buyers were thrilled.”

“My clients close”

The listing agent also was thrilled with Prather’s professionalism.

“When the listing agent received the offer he called me to thank me,” Prather recalled. “He commented to me about the years I had in the business and how it was always a pleasure to work with me. Frankly, I have heard that a lot over the years and I know it impacts deals for my clients when we are in a competitive situation. People like to work with known entities. My clients close. I take the time to set that up before we begin to shop.”

During the past two decades, Partners has sold single-family detached homes, condos and duplexes priced from $85,000 to $1.3 million.

“However, my sweet spot is the price range from $250,00 to $500,000,” she said.

This 3,253-square-foot, 4-bedroom, 3-bath home in Lakewood is on the market for $325,000

The area that she “farms” at 8z is Westgate in South Lakewood. Westgate is bordered by Hoyt Street on the west, Yale Avenue on the south, Wadsworth Boulevard on the eat and Morrison Road on the north.

Prather gets much joy out of finding the right home for a buyer.

“Over the past 20 years I have provided services for some absolutely wonderful people,” she said. “That is what I enjoy the most, helping people find that perfect home for them. This is the biggest purchase most people make in their lifetime and they put their trust in you. I accept that huge responsibility and enjoy going to the closing table seeing them smiling and happy.”

Prather grew up in Billings, Mt. She and her first husband moved to Denver in 1969. At first, she was a teacher.

While attending Eastern Montana College in Billings, “It became clear in order to have the opportunities to move forward it was going to require a move to Seattle, Minneapolis/St Paul or Denver. I was engaged in 1969 and my husband-to-be had accepted a position with the Colorado Education Association resulting in a move to Denver.”

Initially, they rented an apartment South Clarkson Street, just north of Hampen Avenue and after six months moved into a bigger apartment in the area.

“Frankly, I don’t remember ever having a conversation about buying a home during that time,” she said.

Her husband took a job with the National Education Association in Washington, D.C. While back East, she completed her education at the University of Maryland and later accepted a job in Winchester, Va., in the mid-1970s.

Left teaching for sales

Later, she returned to Denver, and she switched from teaching to sales.

“In my humble opinion, I felt that I had to better myself every year that I taught,” Prather said. “I did just that, pushed myself harder and harder to become what I would call a “master teacher.” You know one when you see one. After six years of teaching several different levels of elementary school, I realized my effort was not financially rewarded or ever going to be rewarded based upon performance. Knowing that I was extremely motivated to advance not only in position but income, I seriously looked at a selling opportunity. You get paid for your efforts in sales.”

Before getting her real estate license, she was a sales person for the Bureau of National Affairs, selling compliance information to attorneys, safety managers, accountants, environmental specialists and others.

“These professionals need daily, weekly and monthly regulatory updates to perform their daily responsibilities,” she said. Besides Colorado, her sales territory included Kansas, Utah and Arizona.

She remarried and she and her new husband, Stuart, also were buying, updating and selling homes, typically after living with them for a period.

“After 10 years with BNA, I was at a subsidiary that was about to fail,” she said. The stress of waiting for a pink slip became too much and she quit and reassess her professional career.

“Deciding what to do next seemed clear: I no longer wanted to travel, board another plane or answer to someone else.”

A lightbulb went off in her head.

“Real estate sales came to me out of the blue — Wow, this is the perfect sales job for me. It kept me in sales with no out-of-state travel and I understood homes from the bottom up after rebuilding all the homes in years prior.”

She enrolled in the accelerated real estate program at Emily Griffith, took the real estate exam and hit the streets as a Realtor.

“I joined the real estate company of the broker who has been our Realtor over the years prior. It was absolutely right from the very beginning. I closed my first sale in 30 days. The home was in south Aurora around Chambers and Iliff. I can’t remember the exact address, but I could likely drive right up to it. It was July 1992 and the sale was a HUD property. The buyer won the bid at $87,500. This home today would likely be priced in the $175,000 to $190,000 range.”

Motorcycle mama

When not selling real estate, she likes to ride on the back of her husband’s Hog.

Her husband owned a Harley in his 20s, before she was in the picture. He sold his bike as he focused on other aspects of his life.

Prather learned that her hubby wanted to buy another Harley for a couple of years, but did not know how to broach the subject.

“One morning over breakfast, 17 years ago, he says to me, “You know Stephanie, I was thinking it might be fun to own a Harley again. How would you feel about that?” Her response took 10 seconds or less.

“That sounds really awesome! I think Harley’s are sexy!”

His eyes lit up and he was the proud owner of a new Harley Sportser in less than two weeks.

“Of course the Sportster was too small for the two of us, but he wanted to break me in,” she said. “Little did he know, I was “all in.”

Her husband bought a Low Roader and now they have an Electra Glide.

“I never wanted to ride my own, have thoroughly enjoyed being the smiling passenger on the back,” she said. He then bought a Low Rider and concluded with an Electra-Glide. Of course that Electra Glide is for the maturing adult who needs a comfortable ride and has been souped-up. It is all about speed, sound and looks.”

She said her clients are “mostly shocked,” when they learn about her love for Harleys, but they quickly get on board with it.

“Younger clients think it is really awesome,” Prather said. “Most everyone thinks it is cool. I have been able to convince a few clients in my past to buy bikes and we have ridden together.”

For more information about Stephanie, please visit this link.  To learn more about Westgate, please visit this link. An Insider’s Guide is a monthly feature of  InsideRealEstate News. 8z Real Estate is a sponsor of InsideRealEstateNews.

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Opposition to RedPeak has moved from the street to the courts.

Some opponents of the proposed RedPeak development in West Highland have filed a lawsuit to try to stop it.

Ten neighbors of the proposed trio of buildings in the heart of the trendy West Highland neighborhood have filed a lawsuit against the Denver City Council, the owners of the properties and RedPeak Properties. The $30 million to $35 million, energy-efficient development will have 147 units.

“The Highland group wants to prevent these high-rises – high-rises being five-story buildings –  from being built in West Highland,” one of the group’s lawyers, Curtis R. Henry, of Littleton, told InsideRealEstateNews late Friday.

“They believe it is contrary to the character of the neighborhood.”

Most industry standards do not consider five-story buildings high-rises.

The suit, filed in Denver District Court, also said that the U-MS-5 zoning approved by the council in June 2010 will reduce property values of nearby homes.

RedPeak is proposing five-story apartment buildings on Lowell Boulevard and Meade Street, just north of West 32nd Avenue and a four-story building on West Moncrieff Place.

The lawsuit does not ask for a specific reduction in the number of stories on the respective buildings.

“It would be difficult to say what would be acceptable,” Henry said. “It is a diverse group. It would be difficult for me to summarize the group’s feelings as a whole. There are a lot of different opinions. There are differences of opinions on what the parameters should be.”

Hard to fight City Hall

He did say it is an uphill battle fighting city hall, so to speak.

“If you are asking me the possibility of success, it is probably 49 percent or less,” Henry said. “It is less likely, rather than more likely that it will succeed. But who knows? I would call it a battle.”

Preliminary elevation of RedPeak's West Moncrieff Place apartment building.

Neither the Denver City Attorney’s office nor RedPeak officials immediately returned calls to InsideRealEstateNews. Other defendants in the lawsuit included the limited liability companies that own the properties and are headed by Thomas Wootten, as well as Robert E. Sechler, who owns a building along Lowell Boulevard, adjacent to the Moncrieff parcel that RedPeak plans to buy.

Michael Zoellner, president of RedPeak, has 20 days to respond to the summons, which was filed on April 27.

A hearing likely would be set about three months after the response, “and the court will decide who is right,” Henry said.

Asked what happens if RedPeak starts demolition and construction before a hearing is set, Henry said: “That is putting the cart before the horse. We would cross that bridge if it comes to that.”

Construction is slated to begin this summer. RedPeak plans to preserve the main part of the church on Lowell.

Lawsuit costly

The No High Rises in West Highland, a grassroots group that opposes the development said on its website that it was important to “keep a low profile,” on the suit that is “requesting judicial review of the flawed zoning near Highland Square. After months of preparation and consulting some of the biggest names in land use law, we are confident of the merits of our case. But fighting City Hall won’t be cheap,” and is asking opponents of the apartment development to donate money. On Thursday, it held a meeting to discuss the fund-raising campaign.

This marks the biggest development in its fight against RedPeak since neighbors held a protest march at West 32nd Avenue and Lowell Boulevard about three months ago.

Such a legal fight can “cost $100,000, easily” said Daniel Markofsky, a Denver attorney. Markofsky is not involved in the suit, and does not support the No High Rise group. Indeed, he was an opponent to an earlier City Council decision to down-zone much of the Sloan’s Lake area and explored the possibility of suing the city, but decided it was too expensive to pursue.

Lowell rendering

“Good for them,” Markofsky said about the neighbors who filed the suit. “Denver hasn’t had a big land-use lawsuit for a long time. I expect I will be following this one closely.”

The suit raises a lot of the arguments that opponents have been making for months.

It said the Main Street 5 zoning is defined as applying primarily to “collector or arterial street corridors, or may be embedded within a larger commercial shopping center or mixed-use area, where a building scale of 1 to 5 stories is desired.”

The suit goes on to say the U-MS-5 zoning does not conform with the Blueprint Denver plan adopted by the City Council in 2002. Blueprint Denver, it notes, designates the West Highland neighborhood as an “area of stability,” where limited change is expected during the next 20 years.

It said the parcels in question should provide a transition from the single-family residential homes to the north to the businesses along West 32nd Avenue to the south. The suit  notes that West 32nd Avenue that is near the proposed RedPeak parcels has been rezoned to U-MS-3, permitting three-story buildings.

”Therefore, properties which lie along 32nd Avenue a more heavily travelled business-oriented collector street – were zoned with a lower height limit and lower density than the Property, which is served primarily by local streets and is adjacent to a single family residential neighborhood,” according to the suit.

The suit said that the zoning to U-MS-5 was “intended to benefit, and does in fact benefit,” Wootten’s ownership groups and RedPeak.

Meade Street perspective

“City Council’s decision to rezone the Property to U-MS-5 was not made with the purpose of furthering a comprehensive zoning plan and was designed to relieve the Property from generally applicable, more restrictive zoning regulations,” the suit goes on to say. “The U-MS-5 zoning for the Property negatively impacts Plaintiffs’ properties and other properties in the area, by, among other matters, reducing property values.”

Spot zoning alleged

The suit contends the ordinance approved by the council to change the zoning was “arbitrary, erroneous and not a proper exercise of the police power as applied to the Property because it was not intended to further a comprehensive general zoning plan and as a result created an impermissible spot zoning.”

The suit said the ordinance should be reversed and “remand the matter to City Council for rezoning of the Property consistent with the provisions of Blueprint Denver and in conformity with surrounding properties.”

Earlier, Susan Shepherd, the city councilwoman who represents the district, decided not to seek a downzoning of the properties, saying she had no support from other council members and it would be a waste of scarce city dollars to pursue a cause that had no chance of succeeding. Also, seeking a downzoning would jeopardize concessions that RedPeak has voluntarily agreed to, such as lowering the number of floors on the Moncrieff property to four from the five floors allowed under the zoning,  she said.

Opponents, however, insist that RedPeak is not truly providing any concessions, but is acting in its own financial interest by reducing the size of the Moncrieff building. Some opponents have said that Zoellner has said RedPeak can get higher rents by having better views of downtown from the Lowell building. RedPeak officials, however, said they might be able to get $25 extra a month for a handful of units on Lowell, which pales compared to getting $1,000 to $2,000 a month on units on an additional floor on Moncrieff.

Many of the neighbors who filed the lawsuit have been active in the No High Rise group. Four of them live on Meade Street, three on West Moncrieff Place and one on Lowell Boulevard.

The plaintiffs who filed the lawsuit are Peter Brey, Don Fowler, Dennis and Lynn Keane, Todd Lilienthal, Bea Lopez, Christine Manesis, Gail and Richard Montoya, and Victoria Rozales.

Contact John Rebchook at JRCHOOK@gmail.com. If you would rather buy than rent in the area, please visit this COhomefinder.com link.

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Increases in demand for rentals were uneven across the state, however, with year-over-year increases in vacancies being reported in Colorado Springs, Grand Junction and Greeley. The rising vacancies likely reflected muted job growth in those markets in March with unemployment rates above 9 percent in all three areas.

The vacancy rate in the Fort Collins-Loveland area, on the other hand, fell to 3.0 percent, year over year, as employment remained strong in the Ft. Collins-Loveland area, dropping to 6.7 percent in March 2012.

The metro Denver vacancy rate during 2011’s first quarter, released last month in a separate survey, fell year over year from 5.5 percent to 4.9 percent.

“The statewide decline in vacancies is being driven by high demand for rental housing in the metro Denver area and in the Fort Collins-Loveland area,” said Ron Throupe, a professor of real estate at the University of Denver’s Burns School of Real Estate and Construction Management, and the report’s author. “Not surprisingly, we also see some of the most solid rent growth in those same areas.”

Vacancy rates in all metropolitan areas were:

• Colorado Springs, 6.4 percent.
•  Fort. Collins-Loveland, 3.0 percent.
•  Grand Junction, 10.4 percent;.
• Greeley, 5.8 percent;.
• Pueblo, 5.9 percent.

The statewide average rent in Colorado increased 4.6 percent from 2011’s first quarter to 2012’s first quarter, rising from $873 to $914. Across the state, however, growth in average rents varied considerably. The average rent in the Greeley area, for example, increased 4.3 percent, year over year, while the average rent in Pueblo was flat at -0.01 percent. During the same period, the average rent in Colorado Springs increased 2.4 percent, and it fell 4.8 percent in Grand Junction, year over year.

The largest increase in the average rent was found in the Fort Collins-Loveland area where it rose 11.1 percent from the first quarter of 2011 to 2012’s first quarter.

Rent growth

“The trend in rents in clearly toward growth and we’re seeing rent growth even in areas with rising vacancy rates right now,” said Ryan McMaken spokesman with the Colorado Division of Housing. “This suggests that owners are optimistic about future demand even in areas where declines in the vacancy rates have stalled during the past quarter.”

Average rents in all metropolitan areas measured were:

• Colorado Springs; $754.
• Fort Collins-Loveland, $1001.
• Grand Junction, $625.
• Greeley, $688.
• Pueblo, $570.

The metro Denver average rent, measured in a separate survey, was $952 during the first quarter.

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

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In April alone, foreclosure filings were up 7.3 percent from April 2011 to April 2012 while foreclosure auction sales fell 36.2 percent over the same period.

From March to April, foreclosure filings fell 10.8 percent while foreclosure auction sales rose 6.1 percent. Since 2008, March and April have tended to be two of the most active months for new foreclosure filings in Colorado, with totals in both filings and auction sales tending to drop off in May.

“March and April tend to be the high points for the year when it comes to foreclosure filings, but this year, those numbers were quite low compared to recent years,” said Ryan McMaken, a spokesman with the Colorado Division of Housing. “On top of that, every metro area in the state showed a declining trend in foreclosure auction sales, and this suggests that foreclosure prevention efforts in general are continuing to have an effect statewide.”

During the first four months of this year, the counties with the largest changes in foreclosure auction sales, year over year, were Douglas, Denver and Boulder counties where auction sales declined 40.7 percent, 38.1 percent and 38.1 percent, respectively. Auction sales dropped by only 5.4 percent in Pueblo county, and they grew by 29.6 percent in Broomfield County where 35 auction sales were reported. All other counties surveyed reported drops of 18 percent or more, compared to the first four months of this year with the same period last year.

New foreclosure filings, on the other hand, grew in several counties. New filings increased 22.6 percent percent in Mesa County from the first four months of last year to the same period this year, and they grew 5.7 percent in Pueblo county. Over the same period, filings activity also grew in Adams, Arapahoe, Jefferson and Larimer counties. Filings fell in all other counties.

“The overall trend is clearly down for now, but we’re still going to see some ups and downs,” McMaken said. “Some of the most notable and badly needed declines in foreclosure activity were seen in Weld County, although Mesa county out west is still dealing with some challenges.”

Contact John Rebchook at JRCHOOK@gmail.com

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In addition to Kelly, Denver-based scheduled speakers will include Terry Considine, CEO and chairman of Apartment Investment and Management Co., better known as Aimco, and Walter Isenberg, president and CEO of Sage Hospitality. The NAREE event also will draw chief economists from five real estate groups.

The conference will be held from June 20-23. Panels will be held at the Brown Palace Hotel.

The 46th annual NAREE conference  combines news-making panels, trend-setting tours and sessions of NAREE University to sharpen broadcast, social media, technology and data analysis skills.

The four-day NAREE conference, Covering Real Estate With Altitude will draw writers, editors, bloggers, freelancers and authors along with the nation’s leading real estate experts to focus on trends in residential, resort, commercial and financial real estate.

AREE Vice President Kris Hudson, Wall Street Journal, is chairing NAREE’s Denver conference.

Chief executive officers speaking at the NAREE conference include: Ken Riggs, Real Estate Research Corp.; Bill Rayburn, FNC; Bill Hoffman, Trigild; Marty Collins, Gatehouse Capital; Scott Ryles, Home Value Protection and Tom O’Grady, Pro Teck Valuation Services.

Chief economists include: David Crowe, National Association of Home Builders: Stan Humphries, Zillow; Ted Jones, Stewart Title; Mark Obrinsky, National Multi Housing Council and Lawrence Yun, National Association of Realtors.

“NAREE’s Denver conference brings together the strongest roster of speakers on commercial and residential real estate,” Hudson said. “It’s expected to generate a tremendous amount of real estate news.”

Hudson is working on the council with John Rebchook of InsideRealEstateNews.com and Ralph Bivins of Houston-baed RealtyNewsReport.com.

NAREE conference attendees may opt for either the historic Brown Palace Hotel or the affordable Comfort Inn, which connects to the Brown via a skybridge. An optional Saturday trip to Vail is planned.

NAREE conference registration fees, which cover admission to NAREE’s elegant 62nd Journalism Awards Reception are affordable – only $99 for journalists who register by this Thursday, May 10 and pay by check. Industry representatives and publicists can register for special rates – which include “NAREE’s “Meet the Press” – by emailing NAREE Executive Director, Mary Doyle-Kimball at madkimba@aol.com. Full registration details can be found at www.NAREE.org.

The conference is open to all journalists, authors and marketing and communications involved in the broad field of real estate — residential, commercial, resort/hospitality, financial and home and urban design. Others who wish to attend can register for $499 – $100 for a one-year NAREE membership and $399 for the conference. The registration deadline is June 15.

The National Association of Real Estate Editors is a non-profit journalism association founded in 1929.

For more information please contract Mary Doyle-Kimball, NAREE executive director at 561-391-3599 or MADKimba@aol.com

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Habitat for Humanity townhomes in Globeville.

A dedication ceremony for 11 Habitat for Humanity townhomes in the Globeville neighborhood will be held at 11 a.m. on Saturday.

Habitat for Humanity bought the townhomes from the Denver Housing Authority and will repair and weatherize them.

As part of Habitat’s Neighborhood Revitalization Initiative, four families will be moving into some of the townhomes. One family already has moved into one of the townhomes and another six families will be moving in later this year.

“DHA’s commitment to neighborhood revitalization includes creating opportunities for working poor families to buy and own their own piece of the American Dream,” said Ismael Guerrero, Executive Director of the DHA. “That is why we are thrilled to celebrate Habitat’s newest initiative in Globeville. This is an example of the great work we are doing in partnership around the city.”

The NRI project is funded through a $200,000 grant from Wells Fargo that covers all of the construction costs.

“This project is a great example of the good things that happen when nonprofits, corporations, citizens and local governments work together,” said Grace Lucero, Wells Fargo Community Development representative for Colorado. “We’re proud to contribute dollars and volunteerism toward the revitalization of Globeville as part of our overall commitment to creating safe, quality, affordable housing in the metro Denver area.”

Saturday’s ceremony will be at 225 E. 51st Ave.

Have a story idea or a real estate 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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