Denver Metro Residential Vacancy Rates

It would seem to me that the vacancy rate would somewhat mirror the unemployment rate. If you lose your job, you probably will not be able to afford rent. Right? That certainly was my thinking. We were bracing for a 9 % to 10 % vacancy rate, which would certainly lead to a further decline in rental rates. Being that rental rates had already begun to deteriorate in 2009, that was not the best news for our clients or for us.

Up until about 9 months ago, the vacancy rate seemed to be trending in that direction.  Tenants that lost their jobs were moving back in with family or friends. Our vacancy rate was starting to inch up a bit, and then by mid summer it all seemed to change.

We are currently sitting at a vacancy rate of just over 3%. What we have learned is that you can do without a car, and even a job, but you must have a place to live. We have quite a few tenants and clients for that matter that are unemployed, but they are still paying their rent. How is that possible? Cashing out stocks, spending savings, help from family/friends, charities and unemployment are just a few options to mention.

Another statistic that seems contrary to the basic laws of supply and demand is the 3% vacancy rate. In our experience, when the vacancy rate was around 5% or lower, we would start to see upward pressure on rents. Less supply, higher rental rates right? Not exactly. Rental rates certainly seem to be leveling off, but to date no real increase to speak of.

Tenants are more realistic and quite frankly more savvy than in the past and are no longer willing to get themselves into a bad financial situation. Even if they are gainfully  employed, there is still a pervasive feeling of fear regarding the economy. That said, to date we are not seeing an increase in rents, but as I stated previously, they have begun to level off.

The 1970′s Called… Their Mortgage Rates are Here!

If you missed out on the $8,000 home tax credit, don’t worry, here is another great opportunity!

According to Denver Real Estate Agents and Finance Guru’s, mortgage rates have hit a record low.  According to the mortgage company,  Freddie Mac,  “The average rate for 30-year fixed- rate loans dropped to 4.69 percent, from 4.75 percent last week.” Rates have not been this low since 1971!

Mortgage rates have dropped because of several reasons. One being the “turmoil in the stock market and the European debt crisis” (read more) and the second Margaret Jackson of the Denver Post explains that “Mortgage rates have fallen over the past two months as nervous investors have shifted money into the safety of Treasury bonds. The demand for Treasurys has caused Treasury yields to fall. And mortgage rates tend to track the yields on long-term Treasurys” (read more).

Experts are saying now is the time to buy because when the economy starts to show “sustained improvement” you can count on rates going up!

New Plan to Speed up Mortgage Modificaitons

New provisions are on the way for Obama’s Home Affordable Modification Program! coming June 1, 2010, these provisions will help speed up the process of mortgage modifications.  Read more of Broderick Perkins Realty times article. (read more)

DO YOU NEED TO MODIFY YOUR LOAN?

Do you want to keep your property, but can’t afford the payments any longer?

Performance Solutions is a loss mitigation company specializing in loan modifications and short sales.

There has never been a better time to pursue changing the terms of your loan through a loan modification.  The lenders have been monetarily incentivized through government programs to renegotiate rate, terms and/or principal on virtually all loans that qualify.  Additionally, in an effort to minimize losses, lenders are extremely motivated in conducting loan modifications on properties even if the property does not qualify under government guidelines.

How would you like to have cash flow again with reduced mortgage payments? Performance Solutions specializes in loan modifications and short sales for investment properties.   Most investors are having challenges with cash flow either because of vacancies or because the rental payments aren’t covering their costs.  A loan modification can help you through these rough times by reducing your mortgage payments and helping you to create cash flow, as your investment was always intended to do for you.

If you are interested in finding out the various ways a loan modification can help you, please call Mavi Unlimited for details at 303-6658944.