FED: BY END OF 2014, STIMULUS WILL BE OVER

As reported in the Daily Real Estate News on Thursday, December 19, 2013,

The Federal Reserve announced on Wednesday that it would begin gradually winding down its bond-buying stimulus program next month. 

The Fed has been purchasing $85 billion per month in Treasury and mortgage-backed securities. In January, it will reduce its purchases by $10 billion to $75 billion, and then curtail purchases each month afterward. By the end of next year, the Fed plans to end the monthly purchases completely. 

In the last year, the Fed has purchased more than $1 trillion in Treasury and mortgage-backed securities. Fed officials have said the purchases have helped to reduce borrowing costs, and it credits the program for helping to contribute to an improving housing market. 

The Fed said that it plans to hold short-term interest rates near zero, and any rises likely would not come until the end of 2015. 

Both policies are aimed at holding down borrowing costs. 

Previously, the Fed had said it would keep short-term interest rates near zero until the unemployment rate fell to a certain level. But the Fed announced Wednesday that short-term interest rates would stay near zero “well past the time that the unemployment rate declines below 6.5 percent.”

Source: “Fed to Start Unwinding Its Stimulus Next Month,” The New York Times (Dec. 18, 2013)

HOMEOWNERS STAND TO RECAPTURE MORE EQUITY IN 2014

As reported in the Daily Real Estate News on Wednesday, December 18, 2013,

The number of underwater homes continues to slip, with 791,000 properties regaining equity during the third quarter, CoreLogic reports. 

Currently, about 13 percent of all homes with a mortgage -- or 6.4 million -- remain in negative equity compared to 14.7 percent -- or 7.2 million -- at the end of the second quarter. 

An estimated 42.6 million homes in the U.S. have positive equity. About 20 percent-- or 10 million -- of those homes, however, have less than 20 percent of equity or what is considered “under-equitied,” according to CoreLogic. 

What’s more, about 1.5 million properties have less than 5 percent and are considered near-negative equity. They are the most at risk if prices happen to fall, CoreLogic reports. 

The following states have the highest levels of negative equity and account for 36.4 percent of all the negative equity in the country:  

• Nevada: 32.2% of properties have negative equity
• Florida: 28.8%
• Arizona: 22.5%
• Ohio: 18%
• Georgia: 17.8%

The majority of the homes that have positive equity are in the high-end housing market. Ninety-two percent of homes valued at more than $200,000 have equity compared to 82 percent of homes values at less than $200,000, CoreLogic found. 

"We should see a further rebound in consumer confidence and economic growth in 2014 as more homeowners escape the negative equity trap," says Anand Nallathambi, president and CEO of CoreLogic. "Home price appreciation has helped more than 3 million property owners regain equity since the first quarter of 2013."

Source: “Negative Equity Will Continue Declining in 2014: CoreLogic,” Mortgage News Daily (Dec. 17, 2013)

CHRISTMAS CARRIAGE PARADE IN PARKER

                                                  

As reported in ParkerOnline.org,

Saturday, December 14

In celebration of the holiday season, the Parker Christmas Carriage Parade is a valued tradition held annually in downtown Parker.

---

The Town of Parker and the Colorado Driving Society present this exciting event on the second Saturday of December each year. The 2013 parade is free to attend and will be held on Saturday, Dec. 14 at noon in downtown Parker.

Come and experience that holiday feeling in the air and enjoy this all-equestrian parade made up of dozens of horse-drawn carriages, wagons, surreys and stagecoaches from across Colorado, all dressed up for the occasion. With a different theme each year, the parade continues to grow in size and is a staple event for Parker.

Event-goers also enjoy two holiday markets, a petting zoo and pony rides, ice sculpting and visiting time and pictures with Mr. and Mrs. Claus!  For more information and an event map, visit: http://www.parkeronline.org/carriageparade

Many thanks to the generous sponsors that help make this event possible: Brown’s Compounding Center, Camp Bow Wow, Xfinity, Swingle Lawn, Tree and Landscaping, Parker Station Professional Offices, David W. Moritz and Associates, Ameriprise Financial, Bellco Credit Union, Amber Brown, Realtor, La Baguette De Normandy Bakery, Spradlin Printers, State Farm, Noodles and Co. and the Parker Chronicle.

 

DOUGLAS/ELBERT TASK FORCE 2013 ANNUAL FOOD DRIVE

We are currently collecting donations for the Douglas/Elbert Task Force for the 2013 Annual Food Drive!  The following items are needed:  diapers, toilet paper, canned fruit, canned meat, peanut butter, school snacks, dental supplies, and personal hygiene items.  Come on by the office and say hello and donate to a worthy cause!