Home Buying in Denver>Question Details

Tim Sparks, Real Estate Pro in Castle Rock, CO

What do you think about the City of Denver move to help the housing Market? Please comment. Do you think that it will help? It can't hurt can it???

Asked by Tim Sparks, Castle Rock, CO Tue Mar 26, 2013

See the article:
http://www.bizjournals.com/denver/news/2013/03/19/denver-ann…

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7
Tim,

As was state below, this program was not put in place to help the Denver housing market, but intended to help a certain segment of the population get into the housing market with no 'skin in the game'. I remember a program a few years ago that said if you will commit to saving $3000 over the next year there would be an additional $6000 given to help you get into a home. I had one client that scrimped and saved the money and purchased a home with $9000 to work with. The program said it was amazing how few people followed through with that program to get to a purchase. It sounds good, but the mayor's words sound very familiar to the words spoken a few years ago before the big crash. We;'ll see how this one works out.

If there was a desire to help the housing market it would be interesting to see incentives given to home sellers who are on the fence about selling. We need homes to sell or this new program will present another group of hungry buyers with no available homes to purchase. Anyway, good question; and good answers so far.

Robert McGuire ASR
Realtor/Consultant
Your Castle Real Estate
Direct - 303-669-1246
http://about.me/robertmcguire33
1 vote Thank Flag Link Tue Mar 26, 2013
It's interesting. I thought we got into the housing mess by enabling people to buy homes which were unaffordable? There are 3.5% down loans in the market now through FHA and those default rates are much higher than default rates for "conventional" loans.
0 votes Thank Flag Link Thu Mar 28, 2013
Tim,

Interesting that you raise this question as I had a buyer on Friday whom brought it to my attention and I wasn't aware of the program. She wasn't looking in the Denver area and now is considering the area since she could qualify for the program.

We the state of our current market (low inventory, multiple offers) I don't think it is a good idea to give money to a buyer so they don't have to bring a down payment to the table, that is just my opinion.

Bill Pearson GRI, SRES |"Your Denver Realtor For Life"
ERA Herman Group Real Estate| 201 Columbine Street| Suite 301| Denver CO 80206
720-329-1470 |Bill@DenverRealtorForLife.com
5280 Magazine FIVE STAR Real Estate Professional – 2010, 2011, 2012
0 votes Thank Flag Link Wed Mar 27, 2013
Sorry, they didn't say the program was intended to help the housing market, but rather "to help spur metro Denver homeownership". As Joetta pointed out and on notes, right now the market doesn't need help.

But if you believe that “There is no better way to help rebuild our local economy and expand the strength and vitality of our neighborhoods than to open the doors of home ownership to moderate and low-income buyers", then this program will certainly help. Granted inventory is tight right now, but Sellers will respond. There are tons of listings coming on every day in our neighborhoods.

BTW, the program includes a 4% grant to qualifying low and moderate income homebuyers to go towards down payment and closing costs. And there are loans available for as little as $500 down. So if you thought you couldn't ever afford to buy a home - what are you waiting for?

Give us a call today!

Tony & Karen
720-427-4836
0 votes Thank Flag Link Tue Mar 26, 2013
I think there's better ways to spend tax revenue. Sure it's gotten stupid on loan qual's, for nearly 5 years now. Yep, the market's hot. Concession's are still in place for CC's, etc., So why have the city carry more..? I'm with you Jon.
0 votes Thank Flag Link Tue Mar 26, 2013
Ridiculous. And tax payer dollars paying for it. Makes me want to scream. As if 10+ offers per listing were not enough.
0 votes Thank Flag Link Tue Mar 26, 2013
The market is so hot, IT doesn't need any help. But this could help those who are qualified for a loan but don't have a lot of cash so they have to ask the seller to pay their closing costs, and may be competing with much stronger offers. Right now, buyers who are barely to scrape together what it takes to get into a house, don't stand a chance. This could give them that little bit of help that they need.
0 votes Thank Flag Link Tue Mar 26, 2013
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