First Quarter 2014 Real Estate Report for Mesa County

2014 First Quarter Mesa County Real Estate Report

So how is the first quarter real estate landscape? When compared to the first quarter of 2013 sales decreased 10% from 721 real estate sales in 2013 when compared to the 649 sales in 2014. The good news is that the foreclosure activity continued to trend down as well, improving market conditions. The total dollar volume also was down 8% from 2013 of  $145 million compared to $133 million in 2014. There were however 9 sales over $1.0 million dollars in 2014 compared to 6 sales over $1.0 million in 2013. 

The monthly median price for residential property in January was $167,400, $181,950 in February, and $159,450 in March. To put the median price in perspective the market peaked in Mesa County in 2008 with the median price being $222,000 and for 2013 the median price averaged $167,000. We believe the dip in March could have been attributed to our unusually cold winter with less people being motivated to move. The average days on market did drop to 131 days in 2014 when compared with the 153 days in 2013. The trend seems to indicate the home prices are on the rise and they are selling in a shorter amount of time. 

Getting back to foreclosures the market saw a 19% decrease in filings in the first quarter of 2014 compared to 2013. In this first quarter there were 148 filings compared to the 182 reported in 2013. In 2010's first quarter there was an astonishing 397 filings. The completed foreclosures also reduced 22% showing 2013 with 180 and 2014 with 137. The resale of foreclosed homes composed 14% of the overall real estate transactions in first quarter 2014 with 91 transactions. Compared to the same time frame in 2013 with 181 transactions representing 25% of the overall real estate transaction 14% is a great number. There were times in 2011 that the foreclosed homes comprised 35% of the market! The decreased filings in 2014 will also translate into less bank owned homes being sold in the upcoming quarters. These decreases are signaling that we are in recovery mode here in the Grand Valley and we expect this trend to continue. 

Home building permits increased slightly (8%) in 2014 with 97 permits pulled compared to 90 permits pulled in the same time last year. Commercial building permits doubled from 4 in 2013 to 8 in 2014. 

What does all this information tell us? We are looking at stable growth and recovery here in Mesa County. We anticipate that these trends will continue. Interest rates have crept up a little from the historic lows of 2013 and are still very attractive. If you are looking to buy or sell this upcoming quarter will be a great time to move forward. Contact us for detailed information for your property, as every area and community has their own special trends. Thanks to Heritage Title for compilation of figures. 

Tax Time!

The deadline to file your income taxes is quickly approaching. Our friends in Washington DC propose, change, extend, and remove these tax breaks each year for taxpayers owning real estate. Most of these tax benefits have been extended and protected through the 2013 tax season and others will expire next year if Congress doesn't act. Here are the top ten tax breaks to watch out for when you do your taxes. Please note that this is for informational purposes only, as we are not tax professionals and we highly encourage you to contact a tax attorney or CPA when completing your taxes.

1.  Mortgage Interest Deduction

Homeowners who itemize deductions can deduct the interest paid on a mortgage with a balance of up to $1 million. There has been some discussion to limit the total itemized deductions for taxpayers making more than $400,000 however the current deductions currently hold for all tax brackets. Property owners save around $100 million every year by taking advantage of this mortgage interest deduction on their tax returns

2.  Home Improvement Loan Interest Deduction

The interest on home equity loans used for making improvements to your home might be tax deductible. If your loan is under $100,000, the interest is tax-deductible for a homeowner who uses the loan to make improvements such as adding square footage, upgrading the components of the home or repairing damage from a natural disaster. Sorry, but maintenance tasks like changing the carpet and painting a home usually don’t count.

3.  Private Mortgage Insurance (PMI) Deduction

 Currently if you pay PMI and your mortgage was originated after January 1st 2007 you should be able deduct that portion from your taxes. This deduction does have some income qualification so be sure to check with your tax professional to see if you qualify. This deduction currently is set to expire unless Congress renews it for 2014. Usually this deduction saves you only a few dollars, but every dollar counts right?

4. Mortgage Points/Origination Deduction

If you paid points on your home purchase or refinance you can often deduct those points on your tax returns. Points are also called origination fees and are usually percentage-based fees a lender charges to originate a loan. A 1 percent fee on a $200,000 loan would be one point, or $2,000.  If it is a home purchase loan usually the taxpayer can deduct all the points paid in the same year it was purchased. Refinanced loan points are usually deducted over the life of the loan so keep good records so the tax man doesn't come knocking at your door!

5. Energy Efficiency Upgrades/Repairs Deductions

Homeowners can deduct the cost of  energy efficiency upgrades to their home. It is a tax credit applied as a direct reduction of how much tax you owe, not just a reduction on your taxable income. The maximum credit is $500 and items such as roofs, water heaters , windows, air conditioners, and insulation should qualify. There are individual limits for certain items so be sure to visit with your tax pro about what the tax credit should be.

6. Profit on Sale of Real Estate/Capital Gains Deductions

If you have sold  your primary residence  within the last year, (you lived in the home two of the last 5 years) you can claim up to $250,000 of profit from the sale tax-free and married couples can claim up to $500,000 tax-free. The home must be a primary residence, meaning you must have lived in the home for two of the past five years.You might be able to potentially claim this tax break on multiple homes within a short time frame, and each tax-free sale must occur at least two years apart from the previous tax-free transaction. The Obama administration has enacted new rules for 2013 for those who make more than $200,000 in adjusted gross income. These folks may be subject to a 3.8 percent tax on some income from interest, rents, dividends, rents, and capital gains.

7. Real Estate Selling Cost Deduction

For those lucky folks whose profits on the sale of their home might exceed the $250k/$500k limits, there are still some ways to reduce the tax burden. The costs of selling a home can be claimed as tax deductions.

By adding up all of the fees paid at closing, capital improvements made to the home while you owned it, money spent to make repairs to damaged property and marketing costs necessary to sell the home, you can add a significant figure to the cost basis of your home. This basically raises the original price you paid for the home. Your cost basis begins with the original price of the home, and then adds in the improvement and selling costs.  When the new cost basis price is compared to your selling price, it reduces your potentially taxable profit on the home.

8. Home Office Deduction

For the 2013 tax year, tax filers who work at home can use the IRS’ new simplified option for deducting home office expenses. Be realistic so you don't increase the risk of being audited. You should be able to get a $5 deduction for each sq. foot used as an office, with a maximum of 300 sq. feet. This office should be the primary place you do business and used exclusively for business, so don't count your bedroom unless you want to do some explaining to the IRS.

9. Property Tax Deduction

How about a tax-deductible tax? This is great because the overall effect is that you don’t pay income tax on money that was spent on property taxes. You should only deduct the amount of property tax actually paid for the year, so have your tax professional review this to make sure it is accurate, and keep good records of the amount paid.

10. Loan Forgiveness Deduction

The Mortgage Debt Forgiveness Relief Act of 2007 made forgiven debt on some mortgages not taxable if you had a foreclosure or short sale. If you had a short sale and the home sold for $200,000 but your remaining loan amount was $250,000 the lender forgives the extra $50,000. The government views that amount as a gift from the lender to the borrower. The Mortgage Debt Forgiveness Act temporarily relieved the taxpayer of that burden, up to $2 million, or $1 million if filing separately. The act applies to primary home sales made from 2007 through 2013, but it will expire next year if Congress does not act.

Once again we are not tax pro's. We are Grand Junction CO premier real estate salesteam. Contact us if you are interested in buying, selling, or investing in real estate. We hope you are reaping the benefit of property ownership this tax season and look forward to discussing your real estate goals in 2014!

2013 Annual Real Estate Report for Mesa County & Grand Junction CO

The numbers are out and the fourth quarter Mesa County sales have showed a 6% decrease in the number of real estate transactions. In 2012 fourth quarter sales were at 871 and 2013 fourth quarter finished at 819. The dollar volume however went up 7%, with 2013 totaling $190 million compared to the 2012 same quarter total of $178 million. There were fourteen transactions that totaled over 1 million dollars in 2013 compared to the ten in the previous years 4th quarter. A notable transaction for sportsmen was the Cabela's wing of Mesa Mall selling for $5.4 million.

For the year we have seen a 4.2% bump in sales when we compare the 2013 real estate sales of 3589 to 3444 in 2012. The total annual sales volume was $770 million and represents a 13% increase from the 2012 volume of $681 million for 2012. HUD/VA sales accounted for $31.5 million of those sales in 2013 and was a decrease from the $36 million that was reported in 2012.

The median price rose in 2013 to $166,753 up from $160,000 in 2012. The average residential sale price jumped as well to $190,091 in 2013 compared to $180,936 in 2012. Average days on market did go up a little in 2013 but only by about 12 days compared to 2012.

The new construction and home building sector also grew with increased building permits issued totaling 444 in 2013 compared to 398 permits issued in 2012. Not only did the amount of permits go up the value of the permits grew from $88 million in 2012 to $99 million in 2013. 

Bank owned foreclosures accounted for 18% of sales in Mesa County for 2013. In 2012 they represented almost a quarter of all resales in the valley. Foreclosure filings also decreased 30% from 2012 levels. This is great news and indicates we on on the road to real estate recovery. We still have room for improvement and bank owned inventory that needs to be worked through. We anticipate that bank owned properties will continue to decrease as our local economy grows.

For real estate market trends you can subscribe to our market insider report. If you are looking to buy, sell, or invest in real estate in the Grand Junction or Mesa County area we would love to provide you excellent customer service! Thanks to Heritage Title Company for there assistance with this report.

Why use a Keller Williams Real Estate Agent in Colorado?

If you are thinking about buying or selling real estate in Grand Junction CO or anywhere for that matter you should really consider using a Keller Williams Realty Real Estate Agent. There are many reasons that set Keller Williams Realty apart from every other real estate company. We believe what sets us apart first and foremost is our belief system and office culture. Our core belief system is as follows:
*Win-Win: or no deal
*Integrity: do the right thing
*Customers: always come first
*Commitment: in all things
*Communication: seek first to understand
*Creativity: ideas before results
*Teamwork: together everyone achieves more
*Trust: starts with honesty
*Success: results through people
These core elements create an amazing real estate professional who paves the way for the success of their clients throughout a lifetime of real estate transactions. It is important for our clients to realize that agents need support and guidance from their brokerage firm to provide them with top notch service. I can speak from experience that other agents in our office are always willing to share idea's and support one another when we need anything because we realize that through teamwork we all achieve more. The market center offers training classes several times during the week, every week, so the agents are always on top of the ever changing real estate landscape. We also have an amazing support staff and employing broker that are available to us should questions arise during a real estate transaction. Our national franchise invests its profits into the development of tools for the KW associates to provide to their clients. For example we recently released a mobile real estate search app that is one of the best on the market for Android and Iphone/Ipads. Keller Williams Realty is also an open book company that is agent directed. If you are part of our company you have access to review financials and actually participate in various committee's such as finance, technology, or our KW Cares charity program. This simple fact automatically puts all of the associates as partners in the company.  All local market centers also have what is called an Associate Leadership Council or ALC that acts like a board of directors . The ALC is comprised of the top 20% agents in production and they make decisions that affect the market center. This council is the bridge between the firms ownership groups and the agents of the market center that casts the vision of our local, national, and international franchise.
Why this is important to our customers and clients? It is important because Keller Williams Realty wants to build better business people that are always looking to grow, learn, and expand themselves both professionally and personally. Wouldn't you want someone like that to represent you in your next real estate transaction?
The Harris Group is proud to be associated with Keller Williams Realty and sit on the  Associate Leadership Council for our Grand Junction CO market center. We would love the opportunity to speak with you about how we can help you with all your real estate needs. If you are thinking about doing real estate business somewhere other than the Grand Valley we can recommend a great agent in that particular area as well, just let us know. Be sure to contact us if you are thinking about starting a career in real estate

Why Use A Realtor® to Buy or Sell Real Estate in Colorado?

Not all real estate agents are the same. Only real estate licensee's that are members of the National Association of  Realtors® are properly called  Realtors®. Why is this important? First of all  Realtors® abide by a strict code of ethics and are committed to dealing with clients and consumers in a fair and honest manner and are expected to maintain a high level of knowledge when it comes to buying or selling real estate. For most people buying or selling real estate is one of the most important financial decisions that they will make in there life. To put this in perspective, the median sales price in Grand Junction currently sits around $180,000.00. Consider if you had a $180,000 tax bill or a legal proceeding that amounted to $180,000.00. Wouldn't it be logical to engage the help of a CPA or an Attorney? Would you even consider tackling these issues without the help of a professional? Considering the small upside cost and the large downside risk, wouldn't it be foolish to consider a real estate transaction without the professional assistance? Here are a few other reasons to use a  Realtor®.

1. Local Realtors® have many resources to assist you in your home search. A hyper local search is key to getting the most updated information about properties for sale and whether or not they are still active. Sometimes the property you are looking for is available but not actively advertised in the local market area, and it will take some investigation by your agent to find all available properties.
2. We can help you in the selection process and provide information with regards to schools, zoning, utilities, and homeowners associations. Each one of these could be key with the home that you select.
3. We can help with the negotiations. There are a lot of negotiating factors. Price, financing, terms, date of possession and often the inclusion or exclusion of repairs and furnishings or equipment are some points that can affect the purchase of the property. The purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you close on the property. We can advise you as to which investigations and inspections are recommended or required. 
4.We can help you understand different financing options and help identify qualified lenders to assist you.
5. When selling your home, we can give you up-to-date information on what is happening in the Grand Junction Real Estate market and the price, financing, terms and condition of competing properties. These will be the key factors in getting your property sold at the best price, in the least amount of time.
6. We can expose your property to the public and to our fellow agents like no other marketing tools available to the general public. 
7. We can advise you on possible repairs or upgrades that will help you sell your home for more money.
8. We can offer staging advice and put you in contact with a qualified stage professional if needed.
9. Most Sellers/Buyers find the required paperwork to be overwhelming. Realtors® will thoroughly explain review and complete the paperwork so you can understand what is going on in the transaction.
10. We have formed networked business relationships with fellow agents and business professionals that will help deliver a smooth transaction and reduce complications that could arise.

Please contact us for your free, no obligation buyer or seller consultation so we can answer any questions you might have about the real estate sales process.

Are the holidays a good time to list a home?

You've heard it before. The holidays are a horrible time to sell real estate. Everything is slow during the holidays. While it may be true that sales do slow during the winter months in your market it can also be a great time to put your home up for sale. Here are a few points to ponder. Some buyers might need to purchase property before the end of the year for tax purposes. Other buyers are more emotional during the holidays so they might be more inclined to pay your price. Typically there aren't as many homes on the market during the holidays for buyers to choose from and gives the seller greater negotiating power. Homes that are decorated for the holidays have better curb appeal and generally will show better since we just cleaned it for the holiday guests! New employees starting jobs during the first of the year will also be out looking since they cannot wait until spring to purchase once transferred. After January listings ( your competition) usually start picking up. If you sell during the holidays you could get more money and be able to make a non contingent offer on your next home and have a larger pool of listings after the first of the year. Remember, the more listings that are on the market equals less competition for the sale of your home. Buyers will also take time off from work during the holidays and have better availability to preview properties than during a regular work week. The number one reason for selling your home during the holidays is that the people that are looking at property are serious buyers and generally want to get something done quickly. The "Looky Loo" buyers are out shopping, sledding, or spending time with family. This brings up the point that you can always restrict showings on the actual holidays or the days surrounding it. If you have any questions about our local Grand Junction Real Estate Market please contact us. We are available around the holidays to help you realize your real estate goals.

Why do I need title insurance when I purchase or are selling a property?

When buying or selling real estate in Grand Junction CO it is very important to have a title insurance policy and to review it before moving forward in a transaction. With a title insurance policy, you as owner, have coverage  that will reimburse you for loss in the event someone places a claim against your property that is covered by the policy.When a title policy is ordered the title company will review the public records throughly and create a list of requirements and exceptions that affect the coverage of the title policy. For example, if a seller had work completed on the property and didn't pay the contractor the contractor could then place a mechanic's lien on the property. This lien would have to be satisfied before closing so that the title to the property could be conveyed free and clear. Other requirements might include satisfying a release of deed of trust on the current seller's mortgage and a affidavit and indemnity agreement signed by the seller stating that no other issues affect the property that wouldn't be disclosed by a public records search. Like most insurance policies there are exceptions that they won't cover. These should be of particular interest to the buyer because down the road you can't use those items to make a claim since they were disclosed to them before the title policy was issued. These items might include right of ways, homeowners associations covenants, or other rights that someone might have to the property that was disclosed in the public record. An example of this might be that if you build a shed on a known right of way for a utility company and the utility company needed to tear down the shed to access that right of way. The new owner likely wouldn't be able to make a claim for the damage since it was disclosed in the title commitment before transfer of title. It is also wise to get a survey or improvement location certificate and provide it to the title company prior to closing so that they can investigate any possible encroachments or boundary issues not shown by public record. Title insurance will pay for defending against any lawsuit attacking your title as insured, and will either clear up title problems or pay the insured's losses. For a one-time premium, an owner's title insurance policy remains in effect as long as you, or your heirs, retain an interest in the property. A few of the most common hidden risks that can cause a loss of title or create an encumbrance on title could also be false impersonation of the true owner of the property, deeds by persons supposedly single, but that are in fact married, fraud, undisclosed or missing heirs, and mistakes in recording legal documents. Buyers should also be aware that a title examination will be looking at any judgments or adverse items on them, so it is important to have those items taken care of when purchasing a property as well. Navigating the title policy can be a little tricky, so be sure to review it with your real estate professional, title examiners, and an attorney should you not be clear on what exactly is being covered and conveyed at closing.