Interest Rates on the Rise?

Today’s interest rates two years ago, we were at 5%. Last year we were at 5.5%. A month ago, we were at 6.5% and today we're at 6.25%. The rates will be pretty stable for another few months, but by June or July I can see them climbing to the high 6’s. If you still have time to refinance if you are in an ARM loan, or just have a bad rate. If you want to buy, now is the time to do it in Denver with the rates low and the interest rates low. Don’t miss out!

Is there a bubble?

USA Today asked 1,001 people if they felt the housing market was overvalued, just right, or undervalued. 73% said it was overvalued, 19% said it was just right and 5% said it was under. Now, it doesn’t say where these people lived, but if you did a nationwide survey, I think you would get those answers. If you did a Denver survey, I think those percentages would be different. I do not think Denver is overvalued, I think it is just right and you are not going to see a bubble bursting here in Denver. California, yes a bubble will burst. Arizona, no, I think they are stable. New York City, yes, I think a bubble will burst. Denver, no, they are stable.

Stock Market to crash today?

I woke up this morning and read “Wall Street braces for tough day”. News that Intel and Yahoo did not meet their expectations for 2005. GOOD NEWS! I did not invest in the stock market! It is just another reason I put my money in real estate. My uncle, who is pretty wealthy and puts money everywhere, stocks, bonds, real estate, business, said the only place he has not lost money in all the years he has invested, was real estate. I hope if you do invest in the stock market, your day doesn’t turn out as bad as they make it seem.

Appreciation in Denver

I read an article in the USA TODAY that stated home prices are growing in almost every metro area in the United States. Of course the Denver area has an N/A behind it for the percent change since 2004. However, I still believe it is increasing. The Denver market is slowly growing, around 3% per year, where as Phoenix has increased 55% in a year, and Los Angeles is at 22% (which is down from where is was the past two years). It could be worse, one could live in Elmira, New York which has decreased –5.5% since last year. Overall, Denver is due for a rebound in the next year or two where I will expect to see bigger increases around the 10% mark.