September 7, 2010

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

 

THE FORUM PUBLISHES THE LATEST "QUE" - AND WE'RE LOOKING GOOD !!

The Southern Colorado Economic Forum of the University of Colorado at Colorado Springs has just released the latest Quarterly Updates and Estimates on the El Paso County economy. .and the outlook for our area is encouraging.

Compared to the national averages, we look very good. For example, the National Association of Realtors reports that, as of July, 31, 2010, the national average price of a home showed an increase of 2.3% over July, 2009. On the other hand, the El Paso County figures for the same period show an increase of 5.9%. That's more than double the national average price increase.

A new feature of the QUE involves "Housing Affordability in the Region". This section of the report shows how an imbalance in supply and demand for single-family housing affects our local-market prices. (See page 7 of the report).

The QUE also contains a word of encouragement for prospective Homebuyers. Don't feel bad if you missed out on the now-expired federal tax credit for Homebuyers. With the low interest rates now available (currently 4.25%), you will more than make up for the lost tax credit in just 4-5 years.

For a complete copy of the QUE report, click here

Also, please note: The SCEF will present the Fourteenth Annual 2010 - 2011 Southern Colorado Economic Forum on Friday, October 1, 2010, 7:00am - 11:30am at the Antlers Hilton Hotel in Colorado Springs. This year's Business Symposium panel will discuss, "Innovation and the Future of the Pikes Peak Region".

We encourage our readers to make reservations to attend, as quickly as possible. All recent Forums have been "sold-out" events.

For complete information about this exciting event,CLICK HERE 

 

SALZMAN real estate SERVICES SPONSORS MME BUSINESS PANEL

We are honored to be the sponsor of the September 10, 2010 meeting of the Middle Market Entrepreneurs of the Peak Venture Group. The topic of this meeting, "Using the Open Innovation Engine to Propel Growth" will feature a panel consisting of Patrick Bultema, CEO of CodeBaby, Merideth Vaughn, President  of Vladimir Jones, John Street CEO of MS Biotech and Michael Larson, PhD, UCCS, El Pomar Chair of Engineering and Innovation. The event will be moderated by David Lee, Co-Chair of What IF! Festival of Innovation and Imagination and President of Strategic Perspectives, LLC.

The Middle Market Entrepreneur group contributes to the success of mid-size companies by engaging their executives in an exchange of relevant ideas. One of the reasons we were offered the opportunity to sponsor this event was our trademarked slogan, "The Power of relocation Innovation", which emphasizes our company's focus on Innovation as the key to future business success.

We will summarize the ideas discussed at this exciting MME meeting in future issues of our enewsletter.

 

HOW WILL OUR ELECTED OFFICIALS SOLVE THE UPCOMING BUDGET CRISIS??

As we approach another round of elections, we are reminded that the choices we make at the ballot box could either help us recover from the ongoing economic slump, or, could come back to haunt us. Using our local real estate market as just one indicator of the problems that our political leaders will face, let's examine the problem of upcoming budget shortfalls.

Here is an example of just one home which will show a reduction of approximately 20% in assessed value in 2011. This house, in 2010, was assessed by the county for $550,000. Just last week, that same house was listed for sale for $449,000. (Within one week, however, our competitive market forced the Owner to further reduce the asking price to $424,900).

In 2011, for tax purposes, the county will re-assess the value of all homes within the county, and property taxes will reflect that new assessment. At that point, this house will go from a taxable basis of $550,000 to a basis of $429,000 or less, depending upon the final sales price, a reduction of approximately 20%. This type of reduction, if widespread, could foretell a substantial reduction in market value and, therefore, to tax revenues to the county, within the space of just one year.

What will our elected decision-makers do to make up for this loss of income? Cut services?   Increase taxes?  Lure new businesses to our area in order to generate more tax income? How will our state and county budgets be adjusted?

Maybe we should ask all candidates what solutions they have in mind, before we cast our votes.

 

LATEST STATISTICS

This past week, the Pikes Peak Association of Realtors reported Listing and Sales activity for August, 2010. Some of the highlights in our monthly report were:

  •  Number of sales - 688 (a decrease of 22.8% from August, 2009)
  • Average sales price was $246,072 (an increase of 10.6% from August, 2009)
  • Median sales price was $205,000 (an increase of 4.8% from August, 2009)
  • Total inventory for sale was 5839 units (an increase of 15.9% from August, 2009)
  • Average time on the market was 89 days (which, considering the market, is normal)
  • Ratio of average sales price to listing price was 96.4%. This figure is significant, in that it demonstrates that Sellers who actually got to the closing table, had to compromise their listing prices downward to reflect the current market. We recognize that this is a painful reality. We understand that "My house is worth more than that", but, regardless of what Jimminy Cricket said, wishing will not make it so.

The bottom line is that, although there are Buyers out there, they are few and far between and they are looking at price, above all other considerations. The Sellers who recognize that fact are the ones who are closing.

To see a copy of the complete PPAR report, click here.

 

6 REASONS TO REDUCE YOUR HOME PRICE

The National Association of Realtors asks prospective Sellers to consider the following six reasons to reduce your asking price.

  1.  You're drawing few lookers. If other houses in your area are drawing more attention than yours is, it may be a sign that potential Buyers consider it overpriced.
  2. You're drawing lots of lookers but have no offers. That should tell you something. 
  3. Your home has been on the market longer than similar homes. If the average number of days that it takes to sell a home in your market is 30, and your home has been on the market for 45 days, your price may be affecting Buyer interest. 
  4. You have a deadline. If you must sell soon because of a job offer or transfer, it may be necessary to drop your price to generate Buyer interest. Remember, it's not how much money you need that determines the sale price of your home, it's how much money a Buyer is willing to spend. 
  5. You can't make upgrades. If you can't afford to paint the walls, clean the carpets, etc., you will have to recognize that Buyers expct to pay less for a home that doesn't show as well as others.
  6. The competition has changed. Check out the competition. Review the selling price of comparables. The market can change in a hurry.

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 37 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my latest podcast. ..And, if you would like to learn more about our Job Loss Protection Program, or, about our CyberHomes Complete Market Analysis of a property, please contact us. 

 

JOKE OF THE WEEK

The dream of the older generation was to pay off a mortgage. The dream of today's young families is to get one.

If you think no one cares you're alive, miss a couple of house payments.

My buyers went through debt consolidation. Now they have only one bill they won't pay.

If you want to know exactly where the property line is, just watch the neighbor cut the grass.

This country is great. It's the only place where you can borrow money for a down payment, get a 1st and 2nd mortgage and call yourself a homeowner.

The trouble with owning a home is that no matter where you sit, you're looking at something you should be doing.