January 17, 2011 

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

 

EDC TO UNVEIL PLAN TO KEEP COMPANIES IN COLORADO SPRINGS

This coming Thursday, we will be attending a luncheon sponsored by the Economic Development Corp. at which Mike Kazmierski, the head of EDC will unveil a plan to boost our local economy. The plan involves attracting new business to Colorado Springs by means of a city-sponsored Venture Capital project. One of the requirements of the program will be that the assisted businesses agree to stay in Colorado Springs.

The EDC will be developing this plan with UCCS Professor Thomas Duening, who is already laying the groundwork for what would be the city's first VC fund.

We are very excited to see this type of innovative planning introduced in our city and we will keep you advised of the details in future newsletters.

 

THE ECONOMY IS LEADING HOUSING BACK FROM THE BOTTOM

Last Friday, in his testimony to the Senate Budget Committee, Federal Reserve Chairman Ben Bernanke expressed more optimism about the economy. He predicted a "moderately stronger" overall pace for the economy in 2011, noting that the Fed has seen "increased evidence that a self-sustaining recovery" is occurring.

As evidence of this recovery, the Gazette reported that, on Friday, U.S. stocks reached their highest closing levels in 2 ½ years. The Dow Jones industrial average rose 55.48 points, its highest close since June 28, 2008. The good news is that the stack market has traditionally led the economy by two quarters, so, this present rise in the stock market is a good indication that the second half of 2011 will be booming.

Evidence is mounting that this economic recovery is already beginning to boost the housing market. Large price declines have made housing more affordable than at any point in the last decade and new housing construction has fallen to the lowest levels in more than 40 years. Both of these factors will help boost existing-home sales, absorb available inventory and put upward pressure on home prices.

Locally, the average sale price for Colorado Springs homes in 2010 was up 4.4%, even after including foreclosures in the mix. This increase in selling prices came as many other U.S. cities continued to show declines.

Unfortunately, foreclosures will continue to affect our local housing market in 2011. Last year, there were 4828 foreclosures in Colorado Springs, which was an 11.7% decline from 2009, but indications are that we will see another 4000 local foreclosures in 2011. Keep in mind, however, that as many as half of these foreclosures will never reach the market, because of refinancing, assistance programs, etc.

As always, however, our continued economic growth will be dependent upon JOBS, JOBS, JOBS. That's why we are so excited about the EDC plan which we discussed, above, and by the tone of our new Governor as he discusses his plans for attracting new businesses and new jobs to our state. It sounds like our state is on the right track.

 

ALL MORTGAGE COMPANIES ARE NOT CREATED EQUAL - THE SAME CAN BE SAID OF REALTORS !!!

Last week, we had the opportunity to help both a Buyer and a Seller save about $2000.

We were contacted by a Buyer's agent who had made arrangements with a local Lender to buy one of our listings. When we reviewed the paperwork, we discovered that the Lender had tacked on several fees and charges that would have cost both the Seller and the Buyer approximately $2000 in unnecessary costs for the $185,000 sale. Furthermore, the Lender was reluctant to sign a disclosure statement which was published in the listing.

On our recommendation, the Buyer's agent switched to one of our preferred Lenders and thus saved both parties from making a very expensive mistake.

The moral of the story: 

  1. Not all Lenders are equal. Dealing with an experienced Realtor, one who has long-term, professional relationships with conscientious, ethical Lenders, can save you time, trouble and money.
  2. Not all Realtors are equal. Our 38 years of experience in the local community, combined with our extensive knowledge of finance enabled us to provide this client with information and assistance that saved them thousands of dollars in unnecessary costs. Our experience, knowledge and close-working network of professionals, including lenders, appraisers, inspectors, stagers, builders, etc. can help make your real estate transaction as smooth and as professional as possible. The transaction we just described is an example of how we look out for our clients.

Give us a call.

 

WHY BUY NOW? MORTGAGE RATES ARE DOWN AND YOUR RENTERS ARE WAITING

Should you buy that new home or investment property now?  Well, if you're looking for a good deal, you should consider it. According to the Wall Street Journal (January 14, 2011), mortgage rates have actually declined for the second consecutive week. The average 30-year fixed-rate mortgage fell to 4.71% in the week ending Thursday, reaching a four week low, according to Freddie Mac.

This surprising, but probably temporary, reduction in rates may be your last chance to cash in on the ridiculously-low rates which are now available.

Another good reason to buy investment property right now is the dramatic rise in the number of potential renters. The predicted 4000 local families which will probably lose their homes to foreclosure in 2011 will soon be in the market for high-quality rentals. Therefore we will need between 2000-3000 additional rental units to service this need. This will be a great opportunity for residential real estate investors. These unlucky people who may have been forced into foreclosure because of lost jobs are otherwise-reliable families who are used to taking care of their homes and expect the best for their families. These displaced homeowners have already reduced the vacancy rate in Colorado Springs to below 6% (Before the recession, our vacancy rate was running around 10%). Investors report that these new renters are trouble free, pay on time and take good care of their rentals.    

Call us to discuss this great opportunity.

 

LATEST STATISTICS

Click here to see the latest Sales and Listing statistics for the Pikes Peak area.

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 38 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

A young Realtor had just started his own real estate office. He rented a beautiful office and had it furnished with antiques.

Sitting there, he saw a man come into the outer office. Wishing to appear the hot shot, the broker picked up the phone and started to pretend he had a big deal working.

He threw huge figures around and made giant commitments. Finally he hung up and asked the visitor, "Can I help you?"

The man said, "Yeah, I've come to activate your phone lines."