According to Traders bet prices will fall 14.4% by 2011:

Traders on the Chicago Mercantile Exchange are betting that Denver-area home prices will drop an average of 14.4 percent between now and 2011.

What exactly does the Chicago Mercantile Exchange know about real estate futures anyway. A LOT. They trade several types of financial instruments: interest rates, equities, currencies, commodities, and real estate derivatives.

If you’re familiar with Beastie Boys then you should know where I came up with the title (hint: Intergalactic)

I have several friends who live in the DU area. Why? It reminds them of the East Coast:

With wide streets lined with mature trees and elegant homes set on deep lots, prices in University Park – or Observatory Park, as newer residents call it – have skyrocketed in recent years as people discover its storybook feel and prime location.

Read more: DU neighborhood worth observation

Want to live there? With average prices hovering around a cool half mill fughettaboutit!

Mortgage back securities are often affected by the weekly jobs reports so when August was initially slated to have a 4k job loss and instead it was a 89k job gain, rates increased. We need to improve the math standards at the Dept of Labor.Read more: Jobs report gives market bounce, but rate-cut bets could lose air

Mortgage article from the Rocky Mountain News:

The recent collapse of the subprime mortgage market and still-climbing foreclosures drove down sales and home prices in Denver last month.

Read the full story: Gloomy report for Sept. home prices

Here’s a press release for Universal REO. What’s my connection to Universal REO – my buddy Dan is the CEO.

LOCAL DENVER COMPANY RELEASES NATIONAL WEB-BASED FORECLOSURE EDUCATION WEBSITE FOR REAL ESTATE AGENTS.

UniversalREO.com, a Denver-based company, is reaching out to thousands of real estate professionals across the nation by providing a ‘Resource Center’ for those trying to make a difference in the foreclosure epidemic. According to founder and CEO, Daniel Waterman, “UniversalREO.com is an unparalleled stratagem designed to unify the real estate foreclosure industry. Through the shifting of the REO (Real Estate Owned by Lender) paradigm to meet a more streamlined business model, professionals are enabled by technology and informative resources. Our objective is to elevate the standards by which REO professional operate on every level.”

By offering thorough education on the valuing of properties, the resources and tools on how to determine values, marketing tips, as well as where to obtain new REO business, UniversalREO.com is providing a service that not even real estate colleges offer. After spending years as an REO Specialist for the top REO Real Estate Marketers in the nation, Mr. Waterman realized his true calling as a teacher. His trial-by-fire education in technology was what gave him the foresight to provide this knowledge to the masses via the information highway.

In this “Web 2.0” universe there exist many one-offs offering overnight REO Business success schemes on the web. UniversalREO.com offers more. Education, Valuation, and Marketing are the keys to success in a real estate market flooded with properties for sale due to default mortgage payments. Cutting-edge concepts on moving these properties into the appropriate hands while maintaining value to companies like Countrywide Home Loans who recently took out an $11.5 billion dollar loan to aid their default mortgage deficit is the only way this country will ever jump back on track. By conveying knowledge through on-line video courses, eBooks, blogs, podcasts, certification, and connecting REO Management companies and direct lenders with the educated real estate agent, as well as the end consumer, UniversalREO.com is blazing new trails throughout the nation. UniversalREO.com currently covers over 50% of the nation for Real Estate Agent and Vendor clientele.

When my blog was in it’s infancy I wrote a post called Buying Where The Students Live. It doesn’t take a rocket scientist to realize that the area surrounding Regis University is untapped terrain:

Denver developers Susan Powers and Chuck Perry are teaming up for the first time, with plans to turn 21 acres near Regis University into a project featuring factory-built townhomes.

Read the full story: Townhomes set for Marycrest site

Just recently Fannie Mae and Freddie Mac had their fare share of accounting scandals. Now they’re seen as the cover to the mortgage cesspool.

Fannie Mae and Freddie Mac, the largest U.S. mortgage-finance companies, would be allowed to expand their $1.5 trillion mortgage portfolio to buy subprime loans under a Democratic plan to help struggling borrowers.

Read the full article: Dems seek subprime help from Fannie and Freddie

Real estate article from the Denver Post:

An index that forecasts near-term home sales fell in August to a record low as would- be homebuyers had difficulty getting mortgages.

Read the full article: Pending-home-sales index at record low

When my wife and I were looking to move several years ago we would watch House Hunters on HGTV. The show had potential home buyers looking at three homes and usually selecting the third. We recently caught House Hunters and noticed the format was slightly different, the potential home buyers would look at three homes but the home they selected would be disclosed at the end. It could be the first home, second or third.

If there’s one thing that’s remained the same, it’s the cliches (spacious home; motivated seller; pet friendly) that the real estate agents use time and time again. If you’re curious to see what these cliches actually mean, you’re in luck. The St. Paul Real Estate Blog has them:

What the REALTOR says:	What the buyer sees:
Hip neighborhood	A lot of kids
Exciting neighborhood	A lot of bad kids
Pet friendly	Reeks of cat pee
Amazing views	Interior shot
Recently renovated	Interior shot, but painted
Great curb appeal	They painted the front
Charming	Dank
Historic	Dank
Charming, Historic	Very Dank
Period fireplace	Fire hazard
Quiet neighborhood	Compared to very busy street nearby
Close to Downtown	Quiet neighborhood
Great neighborhood	Police sweeps recently completed
Starter home	Not exactly finished, but started
Move-up house	Needs to be jacked up, sinking
Fixer-upper	You don’t want to know
Great amenities	They replaced the 1970s fridge
Exciting opportunity	They didn’t replace the 1970s fridge
Good schools	(ignored – everyone says this)
Near parks	Near parking lots
Ready for your updates	Beat up
Well-loved	Beat to Hell
Close to Universities	Tiny, possible fire code violation
Active condo association	Insanely high association fee
Low association fee	Hello “special assessment”!
Motivated seller	In foreclosure

According to this article from the Denver Post, it’s impact is quite severe on commercial real estate:

The mortgage meltdown and resulting credit crunch that have rocked the housing market nationwide are reaching their tentacles into commercial real estate.

In metro Denver, several office transactions have fallen through because of the tightened credit markets. The World Trade Center downtown is back on the market after a contract with Broadway Capital Partners fell through; and International Capital Partners pulled out of a deal to buy Plaza Quebec in Englewood, according to people in the commercial real-estate industry.

Read the full article: Credit crunch widens locally