FCBOR Monthly Newsletter Volume 2 â€˘ Issue 11 - July 2013 CORTEZ JOURNAL/JUNE 17, 2013
YOUR SAFETY YOUR PROPERTY, YOUR OWN JOB With recent wildfires affecting thousands of fellow Colorado residents, wildfire is likely to be on many of your minds. When you look around at the critical fire weather and dry forest conditions, consider what it will be like next time the forest is burning near your home or our community. Is your home ready? Is our community ready? In my role helping homeowners and neighborhoods prepare for wildfires where we live, I have gotten to see properties and homes that are beautifully prepared for wildfire and homes which the homeowners are just beginning to prepare for inevitable wildfires where they live. On a daily basis, I meet residents who hope we donâ€™t have a major fire this season or who literally cross their fingers. Fighting my impulse to share everything residents can do to prepare for wildfires in roughly 500 words, there is one thing that I hope you take to heart while firefighters work in sweltering and dangerous conditions to save homes from wildfires throughout Colorado and the country. The safety of your family and your property is ultimately your responsibility! Our firefighters are amazing. I get to work alongside them every day. But unlike almost all other emergencies, fires are something we can prepare for. You cannot change the course of a hurricane or stop an earthquake. But you can remove some of the natural and manmade fuels around your home so that when a wildfire threatens, there is less for it to burn. Less fuel equals less intense fire behavior. Most of the forest where we live is overcrowded and stressed from over 100 years of fire suppression, grazing, and other human activities. The changes in the natural pattern of the forest growth and fire on our landscapes have created hazardous fire potential. Furthermore, many of us love living in Southwest Colorado because of the forests, mountains and canyons. We have chosen to live in homes that are mixed into the woodlands. This choice comes with a responsibility. We have the responsibility to make our forests healthier and our homes safer. Choosing trees to keep that are well formed and mixed ages and species will add to the forests health by letting each tree you keep get more water, sun and nutrients and reducing the potential for diseases or insects to completely kill a forest of all one species. Keeping younger trees allows them to fill in as older trees die out. Homeowners who have done extensive fuels reduction consistently report that there is more wildlife in their woods following this work. By staggering the vegetation that you keep around your home, driveway and other important structures, you can slow down a fire and drop it to the ground, giving firefighters a chance to defend the house, or giving your house a chance to survive even if there are not enough available firefighting resources for every home that is threatened.
Community News Representatives from DAV (Disabled American Veterans) discussed their fundraiser for a new van to transport our veterans. They are creating a Directory, which will contain all of the local services available to them. They will distribute approximately 3000 of them in our area. Advertisements in the Directory $35 for white pages, and $15 for 1/3 yellow page. Very inexpensive advertising and a very good cause. For more information call Robert Sanders, Veteran Service Officer, at 970-560-2794. Local Hospice is selling raffle tickets for a $4000.00 vacation of your choice. For more information call 565-4400. The annual school supply drive for the Montezuma Cortez School District will soon be underway. If you would like to contribute, you can take school supplies to Citizens State Bank in Cortez from August 1 â€“ August 15. Most needed items are #2 pencils, erasers, spiral notebooks, composition books, construction paper, colored pencils, pocket folders, glue sticks, and Kleenex.
FCBOR CALENDAR OF EVENTS August 2013 Sunday
4 11 18 25
5 12 19 26
6 13 20 27
7 14 21 28
Th 1 8 15 22 29
September 2013 Fr 2 9 16 23 30
Mo 2 9 16 23 30
Tu 3 10 17 24
We 4 11 18 25
Jul 28 - Aug 3
8 Dolores Farmers Market
Th 5 12 19 26
Fr 6 13 20 27
Sa 7 14 21 28
9 5:00pm 7:00pm Business After Hours
Aug 11 - 17
Dolores Farmers Market 12:00pm 1:00pm Dolores Chamber Luncheon
27 9:00am 3:00pm FW: CE Credit (Calvin Denton ) Mindy Rosenbaugh
29 Dolores Farmers Market (D
24 Dolores Quilt Show (Dolores Community Center) 11th Annual Mesa Verde C Cortez Farmers Market (M
Aug 18 - 24
9:00am 11:00am BOD Meeting (Johnson Building)
12:00pm 1:00pm Cortez Chamber Luncheon
10 Escalante Days (Dolores) Burn them of for George C Cortez Farmers Market George Geer Memorial Ca
Aug 4 - 10
Cortez Rendezvous Hot Air
Aug 25 - 31
Su 1 8 15 22 29
Montezuma County Fair (Fairgrounds) Cortez Rendezvous Hot Air Baloon Rally (Parque de Vida) Cortez Farmers Market
Sa 3 10 17 24 31
30 Sugar Pine Ranch Rally (Sugar Pine Ranch) 5:00pm 10:00pm Grand Summer Nights (Mancos)
31 To Sep 2 Cortez Farmers Market (M
8/8/2013 10:10 AM
The 2012-2013 Four Corners Board of REALTORS Board of Directors: President/ Gerry Parker / 565-8408 / firstname.lastname@example.org President-Elect/ Robin Rice / 565-8408 / email@example.com Past President / Ken Williamson / 565-2000 / firstname.lastname@example.org Secretary/Treasurer / Bob Toles / 946-1194 / BobToles@yahoo.com Director/ Brenda K. Bates / 565-2000 / email@example.com Director/ Jo Ann Cauley / 565-8408 / firstname.lastname@example.org Director/ Preston Dillon / 560-9144 / email@example.com Director/ Dawn Utrup / 570-3110 / firstname.lastname@example.org CAR Director/ Carol Click / 565-2000 / email@example.com Association Office Staff Association Executive / Denise Unrein / 565-0112/ firstname.lastname@example.org
Home Prices Rise Accompanied by Faster Sales
Sales of single-family homes, condominiums & townhouses (taken together) increased 16% statewide to 28,068 units during second quarter 2013 compared to second quarter 2012, according to Quarterly Market Statistical Reports released today by the Colorado Association of REALTORS(R) (CAR). Year to date (YTD) sales rose just under 17% compared to the first two quarters of 2012. New listings also increased about 16% to 42,348 with growth in new townhouse-condo listings outpacing single-family. There was more good news as median sales prices statewide rose just over 8% to $260,000 for single-family homes & $170,000 for townhouses & condominiums compared to the first quarter 2012. Days on the market continued a downward trend (-25% for single-family & -29% for townhouses-condos) & the statewide number of active listings at the end of the second quarter was at 33,256 representing a 4.6-month inventory for single-family & a 4.1-month inventory for townhouses-condos. "These figures are very encouraging, continuing trends we reported last quarter & in some instances showing even stronger improvement in our regional markets," said CAR spokesperson, Karen Levine. "Beginning this quarter we are able to report results separately for single-family & townhouses-condos. Drilling down even further on the statistics & market intricacies will help consumers better underst& market trends & assist our REALTOR(R) members in serving both sellers & buyers successfully. In both categories we are seeing more sales, increased median pricing & fewer days on the market." Sales of lender-mediated properties (properties owned by banks & other mortgage lenders) declined strongly as a % of all sales, adding to the sense of recovery. All regions of the state saw declines with the Metro & Mountain regions experiencing the largest drops, quarter to quarter. The Colorado Association of REALTORS(R) Quarterly Market Statistical Reports are prepared by 10K Research & Marketing, a Minneapolis-based real estate technology company, & are based on data provided by Multiple Listing Services (MLS) in Colorado. The current Q2 2013 reports represent approximately 91% of all MLS-listed residential real estate transactions in the state. The metrics do not include "For Sale by Owner" transactions or all new construction. The CAR Housing Affordability Index, a newer statistical measure for Colorado's housing market, showed declines in all areas of the state for both single-family & townhouse-condo listings. This pattern should be expected as housing prices move up unless personal income increases at a comparable rate. An index of 120 means the median household income in that area was 120% of what is necessary to qualify for the median-priced home under prevailing interest rates. A higher number is usually interpreted as greater housing affordability. Higher values generally benefit buyers whereas lower values help sellers. The greatest affordability during the second quarter of 2013 was in the townhouse-condo market in the Northwest Region (220). In comparison, the rates in the Mountain Region were 91 for single-family homes & 107 for townhouses-condos, the lowest readings for the quarter. In addition to cumulative statewide statistics, CAR has commissioned six regional reports, using the same measures, whose content is summarized below along with local expert contacts.
Metro Denver Region (Denver, Jefferson, Adams, Arapahoe, Broomfield, Douglas) Contact: Michael Welk - 303-263-3217 or Anthony Rael - 303-520-3179 Sales of single-family homes in this region rose a modest 3% while townhouse-condo sales increased by more than 20%. The median sales price jumped 9% for single-family to $284,000 & nearly 13% to almost $164,000 for townhouses-condos. One of the consequences of improved prices is that the Affordability Index for Metro Denver has dropped steadily during 2012 & into the second quarter 2013. By this measure alone, condos are significantly more affordable in the Metro area than single-family homes. This area of the state sees the fewest days on the market (45 for each kind of property) & experienced the largest drop in this measure quarter to quarter. The quarter closed with 12,450 active listings representing slightly less than a three-month supply. Mountain Region (Garfield, Gr&, Gunnison, Jackson, Pitkin, Routt, San Miguel, Summit) Contact: George Harvey - 970-729-0111 or &rew Ernemann - 970-379-8125 The number of new single-family listings increased (+6%) while townhouse-condo new listings declined slightly (-1%) during this quarter. Sales increased for townhouses-condos by 7% & fell 1 % for single-family homes. The median sales price rose 14% to $397,000 for single-family & 12% to $334,250 for townhouses-condos in this region, which includes Colorado's ski resort communities. With just under 3,800 active listings, this region has approximately 13 months' supply of inventory which, in these areas of the state, is not unusual. Lender-mediated property sales as a proportion of all sales declined significantly to 16%. Finally, days on the market dropped more than 10% for single-family properties to 154 but rose 4 % to 175 for townhouses-condos.
Northeast Region (Boulder, Larimer, Logan, Morgan, Weld) Contact: Duane Duggan - 303-449-7000 or Kelly Moye - 303-327-6522 This region of Colorado continues to see double digit growth in new listings (+15%) & sales (+16%) as well as increasing median pricing (+6%). Both the quarterly & year to date new listings of single-family homes matched the rate of growth for townhouses-condos. The number of townhouse-condo sales increased slightly more than single-family though the median price increase was significantly greater for single-family (9% versus 4 %). Days on the market are identical at 81, an average 25% drop over the same quarter last year. The region had nearly 6,000 homes available at the end of the quarter, representing a 4-5 month supply. Northwest Region (Delta, Hinsdale, Mesa, Moffat, Montrose, Pitkin, Rio Blanca) Contact: S&y Borman - 970-256-9100 This region had a sixth consecutive quarter of increased new listings, up 14 % compared to the second quarter 2012 attributable entirely to an increase in single-family listings as townhouse-condo listings remained flat. Single-family sales rose by 6% & the median price on those homes increased 3% to $175,000. The townhouse-condo market did not fare as well on sales (-11%) though the median price on those 66 properties rose 12% to $141,225 compared to the same quarter last year. This area of the state experienced another large drop in lender-mediated sales, down 27% & enjoyed the highest Affordability Index at 222 for townhouses-condos. Southeast Region (Baca, Chaffee, Crowley, Custer, El Paso, Freemont, Huerfano, Las Animas, Otero, Pueblo, Teller) Contact: Jay Gupta - 719-785-4114 or Dave &erson - 303-327-6522 Southeast Colorado home sales increased 19% to 4,346 during the second quarter of 2013 compared to 2012. New listings also increased (+17%) & the median price rose 7%. New listings of townhouses & condos outpaced single-family homes (+30% versus +16%) as did sales (+33% versus +18%). The median price for single-family homes rose to $200,000 & for townhouses-condos, to $136,000. Days on the market are among the best in the state with drops of 16% to 84 days for single-family homes & 23% to 72 days for townhouses-condos. There were about 8,400 properties available in this region at the end of the quarter representing a seven-month supply. Southwest Region (Alamosa, Archuleta, Conejos, Costilla, Dolores, Hinsdale, La Plata, Mineral, Montezuma, Saguache, San Juan) Contact: Don Ricedorff - 970-375-7014 The Southwest Region experienced the largest increase in the state for sales (+22%) & median pricing (+21%) compared to last year based on 562 properties sold during the second quarter of 2013. Though the number of townhouse-condo sales increased more significantly than single-family homes quarter to quarter, the median price for those properties actually declined 13 % to $178,300. The single-family homes in this data, which represented 85 % of the quarterly sales, increased in median value by 30% to $249,500. Days on the market dropped for single-family homes (-10%) & rose for townhousescondos (+2%). With more than 2,500 properties available at the end of the quarter, there are sufficient single-family listings to last 16 months & townhouse-condo listings to last 12 months. Conclusion Overall the picture for housing in Colorado is quite good with increased numbers of sales, higher median sales prices, & less time on the market - regardless of which part of the market you consider. Lender-mediated sales as a percentage of overall sales declined in every area indicating further strengthening & stabilizing of the housing market. With higher prices comes some decline in affordability & with small inventories in most regions, competition for the best properties will likely continue. Spokespersons throughout Colorado are available for interviews or to answer specific regional questions. The reports cited in this press release are available online at www.ColoradoREALTORS.com/HousingStatistics. CAR QUARTERLY INDICATORS - KEY METRICS GLOSSARY New Listings -This is a measure of how much new supply is coming onto the market from sellers. For example, Q3 New Listings are those listings with a system list date from July 1 through September 30. Pending/Under Contract - This is the most real-time measure possible for homebuyer activity, as it measures signed contracts on sales rather than the actual closed sale. As such, it is called a "leading indicator" of buyer dem&. Sold Listings - This measures how many home sales were actually closed to completion during the report period. Median Sales Price - This is a basic measurement of home values in a market area & basically states that 50 % of the homes sold were either higher or lower than the Median Sales Price. Average Sales Price - This is another basic measurement of home values in a market. % of List Price Received - The mathematical calculation of the % difference from the list price & the sold price for those listings sold in the reported period. Days on Market - A way to measure how long it is taking homes to sell. _______________________________________________ SOURCE: Colorado Association of REALTORS(R)
The Impact of Colorado Fires on The Impact of Colorado Fires on Contracts to Purchase Property Contracts to Purchase Propertry By: Michael A. Smeenk Q: I’m under contract to purchase real estate in Colorado. The area around the property has been impacted by wildfires. Am I able to get out of the contract? A: Summer 2013 has already been another difficult season for fires in Colorado, with the Black Forest, Royal Gorge and West Fork Complex fires following the destructive 2012 High Park, Waldo Canyon and Last Chance fires. Buyers who are under contract to purchase properties in fire damaged or threatened areas may have second thoughts about whether they want to close on the purchase. This article will examine different sections of the Colorado form Contract to Buy and Sell Real Estate that may allow Buyers to terminate their contractual obligation to purchase and seek return of their Earnest Money (references in parentheses refer to numbered Sections in the Contract). Inspection. The Buyer may, prior to the Inspection Objection Deadline (§ 3 – item #23), terminate the Contract if, in the Buyer’s sole subjective discretion, “any other activity, odor or noise (whether on or off the Property) and its effect or expected effect on the Property or its occupants is unsatisfactory” (§ 10.2(5)). This provision allows Buyers to consider both direct factors that affect the Property, as well as those that are off-site but may impact a resident’s use or enjoyment of the Property. If the Buyer learns that the Property is in an area that is uncomfortably close to fire danger zones, the Buyer could use the Inspection Objection provision to terminate the Contract. Insurability. Insurance underwriters are carefully re-considering their ability to write policies in areas exposed or potentially exposed to fire danger. The Insurability provision in the Contract allows the Buyer the opportunity to review the “availability, terms and conditions of and premium for property insurance” (§ 10.5). If it’s prior to the Property Insurance Objection Deadline (§ 3 – item #25) and the Buyer is unable to obtain an insurance policy to cover the Property, or if the policy found is too expensive or otherwise unsatisfactory, the Buyer can terminate the Contract.
Appraisal. Exposure to fire-threatened areas may cause an appraiser to value the Property at an amount which is less than the Purchase Price that the Buyer and Seller agreed on. The decreased valuation may impact the Buyer’s ability to qualify for the loan needed to purchase the Property. If the appraisal comes back as less than the contracted Purchase Price prior to the Appraisal Objection Deadline (§ 3 – item #20), the Buyer is authorized to terminate the Contract (§ 6.2). Property Damage. If the Property or related Inclusions suffer a relatively small amount of fire damage prior to Closing (less than 10% of the Purchase Price), the Seller is obligated to repair the damage before Closing (§ 19.1). If the Seller cannot make the repairs prior to Closing, or if the Property damage is greater than 10% of the Purchase Price, the Buyer can terminate the Contract through the Closing Date. If the fire causes actual damage to the Property, this may be a late-term provision that permits the Buyer to terminate and claim return of their Earnest Money even after the Inspection contingency has expired. Damage to Utility Services. If any utilities or communication services that serve the Property are damaged prior to Closing, the Buyer can terminate the Contract if those Services are not repaired prior to the Closing Date (§ 19.2). For example, if power or telephone lines that serve the Property are damaged by fire and have not been repaired prior to Closing, this provision allows the Buyer an out under the Contract. This may be a clause for the Buyer to utilize even if the Property itself was not damaged by fire, but the Inspection Objection Deadline has already passed. No Remaining Contingencies. The previous items in this article identify contingencies and other provisions that may allow a Buyer to terminate the Contract and claim return of their Earnest Money (§ 25). If none of the identified factors can be utilized in good faith to terminate the Contract, the Buyer may still decide that they do not want to close on the purchase of the Property. If the Buyer does not want to close, and assuming the Specific Performance box in § 21.1.1 is not checked, the Buyer stands to forfeit their Earnest Money if they do not close. However, forfeiting a relatively small amount of Earnest Money may ultimately be the right financial decision for Buyers who are concerned about making a large investment on a Property that they are no longer comfortable owning due to potential fire exposure.