Real Estate Information Archive

February 6, 2017

 

HARRY’S BI-WEEKLY UPDATE

                       A Current Look at the Colorado Springs Residential real estate Market

As part of my Personal Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.

THE LOCAL housing market JUST KEEPS ON ESCALATING…IN SALES AND PRICES

Wow.  Let me say it once again...WOW. 

I’m just astounded at the pace of the local real estate market in terms of both sales and appreciation.  In my almost 45 years of selling real estate in the Pikes Peak area I’ve never seen anything like what we are now experiencing.  And this is January we are talking about—a normally slow time as folks gear up for the spring buying season.  I’m now convinced that conventional wisdom about the “best” time to buy and sell are no longer part of the equation.  In past years, researchers have found that in general, January and February were the top months for those looking to get a bargain. 

However, this year is gearing up to be different.  According to Jonathan Smoke, realtor.com’s chief economist, buyer demand has remained high throughout the fall and home prices did not take their usual dip this January.

I’ll give you a very recent example.  Last Monday afternoon I listed a home and within hours we had seven offers and stopped accepting them at 6 pm that same day.  Most were for over the asking price and with significant down payments.  The following morning the seller accepted one of the offers.  Yes, folks, this is becoming the “new normal” and I’ve been telling you this was going to happen for quite a while now.  It’s most definitely a “sellers market” and likely to remain so for some time. 

With interest rates on the rise but still historically low, many folks are finally realizing that if they want to take advantage—NOW is the time.  Waiting will only cost you.  Not only in interest rates, buy also in the price of the replacement home.  Yes, you will get more for your home, but the next one will also cost you more and that will directly affect your monthly payments. 

My suggestion?  If you’ve even considered selling to trade up or move to a new neighborhood, don’t delay.  And again—know in advance what your wants, needs and budget requirements are so that you can make an offer when you find “the one”.  There just isn’t an option of “let me think about it” any longer.  Loan pre-approval from your lender of choice is most definitely a requisite before making an offer.

I am available to help you in determining all of these things.  As many of you have experienced, when it comes to making an offer that will stand out and likely be accepted—I’m a pro at this.  Having someone like me on your team makes the entire home buying and selling experience one that will be as stress-free as possible.  Simply give me a call today at 598.3200 or email me at Harry@HarrySalzman.com and let me put my special brand of customer service to work for you.

Something else to consider in this rapidly escalating market—it’s important to know the approximate Current Market Value (CMA) of your present home or your rental properties.  With home values going up so quickly, it’s quite possible your Homeowners Insurance isn’t what it should be and might need to be increased.  Give me a call and I’ll be happy to give you a good idea of what your home is worth in today’s market.  Then give your insurance agent a call to make sure you’ve got the right amount of coverage based on the current value of your home.

January PPAR statistics show the Pikes Peak housing market continuing to perform extraordinarily well and we now have 30 consequent months of year-over-year increased local Residential real estate sales. 

Homes are selling at 99.3% of listing price with the average days on the market at 43.  This continues to be great news for both buyers and sellers, despite the fact that interest rates have started to rise.

As you will see in the Cumulative Year to Date Summary, total sales numbers in Single Family/Patio Homes and Condo/Townhomes are up 6.9% and 21.5% respectively for year-over-year.

The Monthly Summary shows that compared to a year ago, total active listings are down 30.8% for Single Family/Patio Homes and 17.0% for Condo/Townhomes, continuing a downward trend that tends to favor sellers.  New listings are down 13.0% for Single Family/Patio Homes and up 38.6% for Condo/Townhomes.

For more details, please see the following article.

 

JANUARY 2017 WAS THE 30^TH STRAIGHT MONTH OF INCREASED LOCAL RESIDENTIAL real estate SALES

Statistics provided by the Pikes Peak REALTORS Service Corp, or it’s PPMLS

Here are some highlights from the January 2017 PPAR report.  A look at the Median Sales Prices should put a big smile on many of your faces!  Please click here to view the detailed 15-page report, including charts. If you have any questions, just give me a call.

In comparing January 2017 to January 2016 in PPAR:                      

                        Single Family/Patio Homes:

• New Listings are 968, Down 13.0%
• Number of Sales are 908 Up 6.9%
• Average Sales Price is $298,774 Up 13.3%
• Median Sales Price is $265,000 Up 11.8%
• Total Active Listings are 1,331, Down 30.8%

                        Condo/Townhomes:

• New Listings are 183, Up 38.6%
• Number of Sales are 130, Up 21.5%
• Average Sales Price is $198,784 Up 17.3%
• Median Sales Price is $177,500 Up 8.6%
• Total Active Listings are 122, Down 17.0%

 

COLORADO SPRINGS AREA MONTHLY SINGLE FAMILY/PATIO HOME SALES ANALYSIS*

                                                Median Sales Price             Median Sales Price

                                                  January 2017                          January 2016

Black Forest                            $470,000                              $468,000                      

Briargate                                  $389,900                              $341,500          

Central                                     $200,000                              $226,750

East                                          $229,000                              $186,000

Fountain Valley:                      $239,000                              $219,000

Manitou Springs:                    $368,000                              $284,000

Marksheffel:                            $302,500                             $258,750

Northeast:                               $251,000                              $223,000

Northgate:                               $443,686                              $419,202          

Northwest:                              $326,818                              $303,500           

Old Colorado City:                 $229,000                              $216,500

Powers:                                   $269,900                              $229,000

Southwest:                             $345,000                              $252,000

Tri-Lakes:                               $437,225                              $427,000

West:                                       $232,500                              $218,000

*Statistics provided by the Pikes Peak REALTORS Services Corp,or its PPMLS.

 

COLORADO SPRINGS IS ON A ROLL…

Our unemployment rate is the lowest since 2001.  

Homebuilding starts continue to rise, following their 10-year high in 2016. 

Foreclosures are the lowest they’ve been in 15 years.  

All of this is reflected in the fabulous health of our real estate market. 

I’d like to give a big shout-out to Mayor John Suthers, the City Council, the Convention and Visitors Bureau and the Chamber/EDC for an outstanding job of promoting our city and working together to achieve such stellar results.  Bravo to all.

 

MILLIONAIRE TO MILLENNIALS:  BUY A HOME

Keeping Current Matters, 1.5.17

In January, CNBC ran an article quoting self-made millionaire David Bach explaining that not purchasing a home is the “single biggest mistake millennials are making” because buying real estate is “an escalator to wealth”.

Bach added:

“If millennials don’t buy a home, their chances of actually having any wealth in this country are little to none.  The average homeowner to this day is 38 times wealthier than a renter.”

In his bestselling book, “The Automatic Millionaire,” he does the math:

“As a renter, you can easily spend half a million dollars or more on rent over the years ($1500 a month for 30 years comes to $540,000) and in the end wind up just where you started—owning nothing.  Or you can buy a house and spend the same amount paying down a mortgage, and in the end wind up owning our own home free and clear!”

These ideas aren’t new—but millennials today are set to be the first generation that aren’t as well off as the previous generation and some of that has to do with homeownership.  My advice?  If you are the parent of a millennial and are able, do what you can to find a way to help in this area.  Lenders now allow down payments to come from family members and their lending requirements have changed for first-time home buyers to make it easier to obtain approval. 

If you have any questions about this or how to go about getting more information, please give me a call and I’ll do my best to help.

 

AND TO THOSE INTERESTED IN RENTAL PROPERTIES…

As you can see from the above articles, the time couldn’t be better to buy a home or two for investment purposes.  Rentals are just like any other home—they continue to escalate in value while providing the owners with increasing monthly income to help defray the cost of owning the home. 

And as I’ve said before, being a landlord is not for everyone.  However, in today’s market, if you’ve ever considered this option as an addition to your investment portfolio, maybe it’s time for us to visit and discuss whether or not it could work for you.  Give me a call at 598.3200 and let’s chat.

 

HARRY’S THOUGHTS OF THE DAY:  (I read several of these in high school and followed the advice personally prior to even getting into the real estate business!)

 

January 23, 2017

 

HARRY’S BI-WEEKLY UPDATE

                            A Current Look at the Colorado Springs Residential real estate Market

As part of my Personal Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.

 

HAPPY MONDAY TO ALL…

It’s a beautiful day here in Colorado Springs and I’m getting ready to present my annual forecast to the City Council this afternoon.  I do this on behalf of the Pikes Peak Area Realtors each year and this year I thought you also might  be interested in the “State of the real estate Market”.  As I’ve been telling you in recent issues, the local real estate market is HOT..HOT..HOT.

Below is the outline of my presentation and a list of the attachments.  You can select any of the attachments to download for perusal at your convenience.  If you have any questions about my presentation, or any other real estate concerns, please call me at 598.3200 or email me at Harry@HarrySalzman.com .

 

 

Presentation to Colorado Springs City Council

January 23, 2017

 

by

Harry A. Salzman,

The real estate Therapist

REALTOR^® Emeritus/CRS, CRP, E-Pro, CNE

 

ERA Shields/Salzman real estate Services

 

 

Overview and Update of Colorado Springs Residential real estate and a Forecast for 2017

 

 

This presentation is on behalf of the membership of:

 

 

Overview and Update of Colorado Springs Residential real estate and a Forecast for 2017

We all know Colorado Springs is a great place to live. And if you have been in the real estate market or known someone who has bought or sold in the past year, you are aware that the 2016 market was HOT. This tells us that other people think Colorado Springs is special as well.

It’s natural to wonder, “Is this just the beginning of a positive trend?” “Will this growth last?” “What is around the corner?” This afternoon we will discuss the relative strength of Colorado Springs to the U.S. and I will provide a real estate forecast on behalf of PPAR for the Colorado Springs region.

 

• Homeownership continues to be a reliable and stable method for building wealth. (Exhibit A)

 

• Wealth-building through real estate, primarily home-ownership, out-performed wealth-building through stock ownership.

 

• While many Americans remain frustrated by the slow movement of the economy, rising home values present a positive direction.

 

• Nationally the homeownership rate is at 63.5% (Exhibit B)

 

 

• Home prices are projected to continue to rise (Exhibit C)

 

• Nationally, home prices are projected to rise by 5.2%

 

• As of September 2016, Colorado had the 3^rd largest year-over-year home price appreciation at a rate of 8.6%

 

 

• Rising home prices is great news if you own a home, but what if you don’t? (Exhibit D)

 

• Increasing home prices is a sign of the on-going housing recovery

 

• Affordability becomes a concern as prices continue to rise

 

• Some American families will become priced out of homeownership

 

• Renter households will also rise

 

• Rental rates increase as demand outpaces rental supply

 

• Student debt stands in the way of homeownership for young adults. (Exhibit D-1)

 

 

• The role of the shortage in housing inventory (Exhibit E)

 

• The country is short by 8.3 million housing units

 

• The shortage of housing inventory is the principle reason home prices have been outpacing people’s income growth for the past 5 years

 

• From 2011 to 2016, the median home price will have risen 42% while the median household income gain will have risen only 17%

 

• An increase in supply is needed to slow the rate of home price growth

 

• In order to bring the inventory of homes for sale to a more balanced market, more housing starts are needed

 

• Economists project a national housing shortage for at least 4 more years

 

 

• The role of Confidence on the economy (Exhibit F)

 

• Post-election market gains and increases in interest rates indicate rising confidence across investors, consumers, businesses, economists, and homebuilders

 

• Pro-growth policies take time to benefit the economy

 

• Short-term, rising interest rates and home prices present challenges for home buyers

 

• Long-term, stronger economic growth results in increased incomes, affordability, and ongoing housing recovery

 

 

• Not surprisingly, politics plays a role in consumer confidence. (Exhibit G)

 

• Republicans tend to feel positive toward the market while Democrats feel less positive

 

• Colorado Springs ranks 6^th in the nation for top housing markets based on political leaning (and therefore market confidence), affordability, and employment opportunity

 

 

• Top Housing Trends for 2017 – Realtor.com (Exhibit H) Despite a more moderate housing market nationally in 2017, strong local economies and population growth will continue to fuel the nation’s top markets

 

• Home prices are anticipated to increase 3.9%

 

• Interest rates are expected to reach 4.5%

 

• Colorado Springs ranks #12 of the 100 top metros in forecasted gains in price (4.8%) and sales (6.7%)

 

• Nationally, western cities continue to lead the nation in prices and sales

 

• Millennials and boomers dominate the market

 

• Midwestern cities will continue to be hotbeds for millennials

 

• Nationally there will be a slowing in price appreciation

 

• Limited inventory continues to fuel fast-moving markets

 

 

• Fannie Mae’s Mortgage Rate Forecast (Exhibit I)

 

• Fannie Mae anticipates interest rates to increase to 4.2% by year-end.

 

 

• Demand for Mortgages Decreases (Exhibit J)

 

• As mortgage rates increase, demand decreases

 

 

• More Good News for Colorado Springs

 

• Colorado Springs has been ranked #5 in Best Places to Live as ranked by U.S. News & World Report (Exhibit K)

 

• Ranking based on Job Market, Value, Quality of Life, Desirability, and Net Migration

 

 

• Colorado Springs ranked #14 in Hottest Housing Markets by Realtor.com (Exhibit L)

 

 

• Buyers and Sellers by the Numbers (Exhibit M)

 

 

• Median Sales Price of Existing Single-Family Homes (Exhibit N)

 

• National Growth: 5.2% appreciation

 

• Colorado Springs Growth: 8.9% appreciation

 

 

• 2016 SFR uses: 200403 in El Paso County, 132763 in the City

 

 

• Year End Listing and Sales Statistics (Exhibit O)

 

 

• PPAR Monthly Indicators (Exhibit P)

 

 

• PPAR Local Market Update (Exhibit Q)

 

 

• Colorado Springs, an Economic Update (Exhibit R)

 

• As of the 3^rd Quarter, there was an increase of 22% in building permits for single family, detached homes

 

• As of the 3^rd Quarter, there was a 13.7% increase in year-to-date home sales

 

 

• Harry’s Forecast…

 

• 2016 was the best year ever with 15,319 closings

 

• I predict 2017 is going to be just as incredible

 

• Strong job growth, interest rates, and a shortage of inventory will continue to fuel home appreciation and sales activity

 

• Job growth is the #1 indicator in a strong housing market.  It is being predicted that job growth will drop slightly but will still be “very strong” over the next two years

 

• Amazing interest rates are still part of the equation.  While an increase in rates has been predicted, they will still be in the historically low range.

 

• Median Sales Price expected to appreciate 5 ¾ - 6 %

 

• Unknown changes from the Federal Government regarding Dodd-Frank

 

• How long will this hot market last?  With strong job growth in the local economy and continued historically low interest rates, expect to see positive price appreciation, albeit at a more reasonable level, starting in late 2017 going forward.

 

• Now is the time, more than the past, for home ownership.

​​

 

City Council 2017

Index of Exhibits

 

• Exhibit A – Article from the Wall Street Journal, 12.9.16, “Household Wealth Rises to a Record”

 

• Exhibit B -- U.S. Department of Commerce, U.S. Census Bureau, 10.27.16, “Quarterly Residential Vacancies and Homeownership, Third Quarter 2016.”

 

• Exhibit C – CoreLogic U.S. Home Price Insights Report 9.16

 

• Exhibit D – RISMedia, 1.1.17, “Housing Value at Record-High: Will Buyers Be Able to Keep Up?”

 

• Exhibit D-1 – Article from the Wall Street Journal, 1.19.17, “Student-Debt Picture Darkens”

 

• Exhibit E – Forbes 12.13.16, “Four More Years? No Quick End In Sight For The U.S. Housing Shortage.”

 

• Exhibit F – Fannie Mae 12.20.16, “Confidence Improves at the Prospect of Pro-Growth Policies.”

 

• Exhibit G – RISMedia, Housecall Blog, 12.12.16 “Surveying the American Dream: Housing Optimism Swings Post-Election”

 

• Exhibit H – Realtor.com, 11.30.16, “Realtor.com® Forecasts Post-Election Economy to Result in Higher Mortgage Rates While Housing Delivers Slower Gains in 2017.”

 

• Exhibit I – Fannie Mae 12.16, Housing Forecast December 2016

 

• Exhibit J – Wall Street Journal, 1.12.17, “Demand for Mortgages Takes a Hit.”

 

• Exhibit K – U.S. News & World Report 1.2017, “Best Places to Live” and “Best Places to Live Methodology”

 

• Exhibit L – REALTORMag, Realtor.com 12.22.16, “Hottest Housing Markets in December”

 

• Exhibit M – National Association of Realtors, 12.7.16, “The 2016 Profile of Home Buyers and Sellers.”

 

• Exhibit N – National Association of Realtors 12.16, Median Sales Price of Existing Single-Family Homes for Metropolitan Areas

 

• Exhibit O – Pikes Peak Association of Realtors 12.16, Listing and Sales Summary

 

• Exhibit P -- PPMLS Monthly Indicators for El Paso & Teller Counties, Nov. 2016

 

• Exhibit Q – PPMLS Local Market Update, Nov. 2016

 

• Exhibit R – UCCS Quarterly Economic Update, Nov. 2016

 

 

January 9, 2017

 

HARRY’S BI-WEEKLY UPDATE

                                  A Current Look at the Colorado Springs Residential real estate Market

As part of my Personal Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.

HARRY A. SALZMAN, THE real estate THERAPIST

 

SO, YOU’RE PROBABLY WONDERING….

I have so many titles and designations in the real estate arena that I figured adding one more that really suits me best might be in order.  Thus, THE real estate THERAPIST it is! 

After all, when I think about the integral function of my special brand of customer service, serving as a sounding board and helping figure out what an individual or family needs in terms of housing is probably the most essential part of my work. 

I need to know what makes my clients tick.  Do they want to live near schools…in a home or townhome… near downtown or out in the forest?  Are they gourmet chefs and need a super kitchen…do they entertain and want an extra large “great room”…or need a large recreational area in the yard?  What about an oversized garage for multiple cars or RV’s?  Do they work from home and need a quiet home office located away from the hustle and bustle of everyday life? 

And what about finding the best financing and taking care of listing their present home if that’s a consideration?  Those stresses are ones I handle for my clients so they can better enjoy the process and excitement of moving into a new home.

All of this and so much more goes into play before I begin the search for the best fit for my clients’ needs, wants and budget considerations. 

That’s not even taking into consideration what I do for those who relocate, either to or from the Pikes Peak area.  As most of you know, that’s a big part of my business and where “therapy” really comes into play.   Is there a trailing spouse who may not be so thrilled about the move?  Or children that have to be uprooted from their friends and schools?  Educating those folks about the many advantages of living in Colorado Springs is especially important and I always take time to fully understand the issues and pressures that go into relocation—be it for an individual or a family.

So while I may not have an accredited degree in Psychology, I think most of you would agree that I play the role of The real estate Therapist with every transaction.  Thus, this new addition to my many other titles.

 

* * * And…once again…Happy New Year to you and yours.* * *

 

THE LOCAL housing market CONTINUES IT’S UPWARD TREND

December PPAR statistics show the Pikes Peak housing market continuing to perform extraordinarily well and we now have 29 consequent months of year-over-year increased local Residential real estate sales. 

Homes are selling at 99.4% of listing price with the average days on the market at 38.  This continues to be great news for both buyers and sellers, despite the fact that interest rates have started to rise.

As you will see in the Cumulative Year to Date Summary, total sales numbers in Single Family/Patio Homes and Condo/Townhomes are up 15.6% and 14.7% respectively for year-over-year.  And, it’s the second consecutive year setting an annual record in sales.  This is fabulous news for local homeowners.

The Monthly Summary shows that compared to a year ago, total active listings are down 28.0% for Single Family/Patio Homes and 25.1% for Condo/Townhomes, continuing a downward trend that tends to favor sellers.  New listings are down 1.2% for Single Family/Patio Homes and up 8.3% for Condo/Townhomes.  This is reflective of the holiday season and I anticipate new listings to increase along with the rising interest rates.  Those who have waited are beginning to realize that they can wait no longer if they want to take advantage of still historically low, but increased interest rates.

Even with new listings down for the month in Single Family/Patio Homes, I’m finding that there are homes available in most neighborhoods and price ranges.  The biggest issue is knowing what you need, want and can afford prior to beginning the process of selling to trade up or move to a new location.  Most homes do sell quickly so having those decisions made in advance can make a lot of difference if your home sells fast.  Pre-approval from your lender is also a requisite in this fast paced market.

If you have been thinking of listing your home, I cannot emphasize strongly enough that NOW is the time.

With interest rates increasing and home equity building at a steady pace, it’s time to make your move either to sell and trade up or buy for the first time or for investment purposes.  To get the ball rolling, simply call me at 598.3200 or email me at Harry@HarrySalzman.com and let’s see how I can put my special brand of customer service to work for you, your family members or co-workers.

 

DECEMBER 2016 WAS THE 29^TH STRAIGHT MONTH OF INCREASED LOCAL RESIDENTIAL real estate SALES

Statistics provided by the Pikes Peak REALTORS Service Corp, or it’s PPMLS

Here are some highlights from the December 2016 PPAR report.  Please click here to view the detailed 15-page report, including charts. If you have any questions, just give me a call.

In comparing December 2016 to December 2015 in PPAR:                       

                        Single Family/Patio Homes:

• New Listings are 763, Down 1.2%
• Number of Sales are 1,236 Up 46.7%
• Average Sales Price is $287,294, Up 7.8%
• Median Sales Price is $255,000 Up 6.3%
• Total Active Listings are 1,536, Down 28.0%

                        Condo/Townhomes:

• New Listings are 104, Up 8.3%
• Number of Sales are 159, Up 0.6%
• Average Sales Price is $190,543, Up 15.8%
• Median Sales Price is $177,000, Up 11.0%
• Total Active Listings are 140, Down 25.1%

COLORADO SPRINGS AREA MONTHLY SINGLE FAMILY/PATIO HOME SALES ANALYSIS*

                                                Median Sales Price             Median Sales Price

                                                  December 2016                      December 2015

Black Forest                            $455,000                              $417,000                      

Briargate                                  $350,000                              $285,000          

Central                                     $208,950                              $172,000

East                                           $225,000                              $207,450

Fountain Valley:                       $224,300                              $215,000

Manitou Springs:                     $370,500                              $307,000

Marksheffel:                              $311,000                             $252,500

Northeast:                                 $250,000                              $235,500

Northgate:                                 $422,927                              $275,003         

Northwest:                                $335,000                              $310,250           

Old Colorado City:                   $236,500                              $223,000

Powers:                                     $249,900                              $229,000

Southwest:                               $262,500                              $249,000

Tri-Lakes:                                 $445,000                              $394,000

West:                                        $250,000                              $239,950

*Statistics provided by the Pikes Peak REALTORS Services Corp,or its PPMLS.

 

RENOVATION…WILL YOU GET A RETURN ON YOUR INVESTMENT?

Rismedia, 11.16

One question I get asked over and over is:  “How much will a renovation of (fill in the blank) add to the value of my home?”

If you’re looking for a return on investment when upgrading certain items in your home, it’s good to know what to prioritize first.  This is especially relevant when selling your home or investment property.  

The chart below will give you an idea of the ROI’s for various renovation projects:

SOME ADDITIONAL STATISTICS FOR COLORADO SPRINGS…

#16 in “America’s Hottest Markets for real estate in December”—realtor.com^©

#6 in “10 Hottest real estate Markets to Watch in 2017”—Forbes Magazine

 

HOUSING VALUE IS AT A RECORD HIGH.  WILL BUYERS BE ABLE TO KEEP UP?

Rismedia.com, 1.1.17

With housing’s collective value growing to $29.6 trillion last year—a record high reflecting 5.7% appreciation--and marking a full recovery since the crash—there is potential to push more prospective homebuyers to the sidelines. 

“Housing is incredibly important to us personally and to the economy as a whole,” said Zillow Chief Economist Dr. Svenja Gudell.  “The U.S. housing stock is worth more than ever, which is a sign of the ongoing housing recovery.  As buying a home gets more expensive, affordability remains a concern for many, and these numbers highlight just how much people are spending on housing.  The total value of the housing stock grew nearly 6 percent this year (2016), a pace that will likely mean some American families are priced out of homeownership.”

Despite the year’s appreciation, approximately 60 percent of housing markets remain below values reached during the bubble years according to a recently released analysis by Zillow. 

Since Colorado Springs was not hit as hard during the housing crash as many other areas, our recovery, along with a 15-year low in foreclosures, has been good; however, if home prices keep accelerating and mortgage interest rates keep rising, this could be a concern for us too.

This is just another reason to call me sooner than later if you’ve been thinking of getting into a new home or looking for investment property.  I can help you determine whether this is the right time for you to act on whatever housing thoughts you might have. 

 

COLORADO SPRINGS HOME CONSTRUCTION IS HIGHEST IN 10 YEARS

The Gazette, 1.4.17

Another sign of improvement in the local housing market is marked by the number of permits issued to builders for the construction of single-family homes in the Pikes Peak Region.  This past year the pace of new construction was at it’s highest since 2006.

The demand for housing, a stronger economy and the low unemployment rate has builders predicting that the upward trend will continue in 2017 in the Colorado Springs area. 

This is one more indicator that our City is thriving.  If you are considering new construction, there are options in all price ranges and locations.  Simply give me a call and let’s see if there might be something just right for you.

 

HOUSEHOLD WEALTH RISE TO A RECORD HIGH—FUELED BY real estate AND STOCKS

The Wall Street Journal, 12.16

While incomes for many have stagnated, the wealth of U.S. households climbed to a record $90.2 trillion in the third quarter 2016, driven by a strong buildup in real estate and stocks.

Stocks—directly and through retirement savings accounts such as 401(k)s--climbed by $494 billion in the third quarter while real estate, which is primarily people’s homes, rose in value by $554 billion, according to the Federal Reserve.

I’ve been publishing articles over the past several years that have shown real estate to be a better investment than stocks for many folks.  I don’t want to say, “I told you so”, but I told you so.

 

 

 

 

January 3, 2017

 

HARRY’S BI-WEEKLY UPDATE

                        A Current Look at the Colorado Springs Residential real estate Market

As part of my Personal Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.

 

December 19, 2016

HARRY’S BI-WEEKLY UPDATE

                                          A Current Look at the Colorado Springs Residential real estate Market

As part of my Personal Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.

 

 

December 5, 2016

HARRY’S BI-WEEKLY UPDATE

                          A Current Look at the Colorado Springs Residential real estate Market

As part of my Personal Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.

   

*** SO THIS JUST HAPPENED…***

The Wall Street Journal, today

At press time I was reading today’s Wall Street Journal and a headline on the front page hit home as it’s what I’ve been telling you would happen for the last couple of years.

“Home Buyers Miss Out On Low-Cost Loans” is what it says and according to the article, the low interest rates and accompanying looser credit requirements of recent times are now a thing of the past.

First-time buyers and those with marginal credit will be the ones hit the hardest.  According to the article, “Analysts at Pacific Investment Management Co. estimate between one million and 1.4 million Americans who would have been eligible for a mortgage in 2002, before the loosening of lending standards that caused the subprime crisis, couldn’t get a mortgage today.”

I’ve been encouraging those who can and want to be home investors to get on it sooner than later.  Information in this article again supports that in saying homeownership levels will remain low and rental properties are in high demand for those who can’t afford or can’t obtain a home of their own.

I don’t want to say “I told you so”, but there you go.  If you’ve even been considering whether this is the time to sell and trade up or buy for investment purposes—call me today.  Time is no longer on your side.

 

THE LOCAL housing market CONTINUES IT’S UPWARD TREND

November PPAR statistics show the Pikes Peak housing market continuing to perform extraordinarily well and now we have 28 consequent months of year-over-year increased local Residential real estate sales. 

Homes are selling at 99.2% of listing price with the average days on the market down to 36.  This continues to be great news for both buyers and sellers. 

As you will see in the Cumulative Year to Date Summary, total sales numbers in Single Family/Patio Homes and Condo/Townhomes are both up 15.9% year-to-date.  Even more amazing, though, is the fact that the total VOLUME of sales to date over last year for Single Family/Patio Homes increased close to $800,000,000 and for Condo/Townhomes it increased close to $76,000,000.  That’s a LOT of sales dollars and is indicative of how residential real estate in the Colorado Springs area is escalating in value.  And, it’s the second consecutive year setting an annual record--with still another month to go.  Fabulous news for our local homeowners.

The Monthly Summary shows that compared to a year ago, total active listings are down 26.5% for Single Family/Patio Homes and 18.7% for Condo/Townhomes.  This downward trend is continuing to be great for sellers.  New listings are up 9.7% for Single Family/Patio Homes and 37.0% for Condo/Townhomes.  This tells me that people are starting to realize that even though this is not the “normal” selling season, the time to sell and trade up is NOW before interest rates and home prices get even higher.  I wrote about that in the last eNewsletter and I can see that interested people are realizing it might be a good idea NOT to wait--for a variety of reasons.

An article I read in Saturday’s Wall Street Journal had the headline—“Homeowners Hit The Jackpot”.  It referenced the fact that many folks who have lived in their homes for 15, 20, 30 years and more are pocketing substantial gains when they are ready to sell.  The article went on to say that homeowners are staying in their homes longer—a median of 10 years, the longest tenure since at least 1985, according to NAR.

Lawrence Yun, NAR chief economist, said the shift is partly due to an aging society and tight inventory in many markets.  “Home sellers know they can find a buyer, but they would have difficulty finding a new home once they sell,” he said.

While locally we have just a slight increase in new listings, I’m finding that there are homes available in most neighborhoods and in most price ranges.  The biggest issue is knowing what you need, want and can afford prior to beginning the process of selling to trade up or move to a new location.  Most homes do sell quickly so having those decisions made in advance can make a lot of difference if your home sells fast.

If you have been thinking of listing your home, I cannot emphasize strongly enough that NOW is the time.

With interest rates just starting to increase and home equity building at a steady pace, it’s time to make your move either to sell and trade up or buy for the first time or for investment purposes.  To get the ball rolling, simply call me at 598.3200 or email me at Harry@HarrySalzman.com and let’s see how I can put my special brand of customer service to work for you, your family members or co-workers.

 

NOVEMBER 2016 WAS THE 28^TH STRAIGHT MONTH OF INCREASED LOCAL RESIDENTIAL real estate SALES

Statistics provided by the Pikes Peak REALTORS Service Corp, or it’s PPMLS

Here are some highlights from the November 2016 PPAR report.  Please click here to view the detailed 15-page report, including charts. If you have any questions, just give me a call.

In comparing November 2016 to November 2015 in PPAR:                      

                        Single Family/Patio Homes:

• New Listings are 992, Up 9.7%
• Number of Sales are 1,196, Up 46.7%
• Average Sales Price is $288,295, Up 7.9%
• Median Sales Price is $256,566 Up 8.0%
• Total Active Listings are 1,932, Down 26.5%

                        Condo/Townhomes:

• New Listings are 163, Up 37.0%
• Number of Sales are 182 Up, 42.2%
• Average Sales Price is $181,591, Up 13.5%
• Median Sales Price is $166,108, Up 6.9%
• Total Active Listings are 178, Down 18.7%

COLORADO SPRINGS AREA MONTHLY SINGLE FAMILY/PATIO HOME SALES ANALYSIS*

                                                Median Sales Price             Median Sales Price

                                                  November 2016                      November 2015

Black Forest                            $424,500                              $344,000                     

Briargate                                  $353,250                              $314,156          

Central                                     $212,500                              $185,950

East                                          $220,000                              $205,500

Fountain Valley:                      $234,450                              $194,950

Manitou Springs:                    $322,000                              $266,750

Marksheffel:                            $259,900                              $260,000

Northeast:                               $260,000                              $237,500

Northgate:                               $400,000                              $389,000           

Northwest:                               $388,000                              $336,700          

Old Colorado City:                  $233,750                              $237,500

Powers:                                    $243,750                              $229,550

Southwest:                              $265,500                              $251,000

Tri-Lakes:                                $446,750                              $400,000

West:                                        $213,900                              $216,500

*Statistics provided by the Pikes Peak REALTORS Services Corp,or its PPMLS.

 

SPRINGS AREA HOMEBUILDING AT 10-YEAR HIGH

The Gazette, 12.2.16

Permits issued through November for single-family homes in Colorado Springs and the rest of El Paso County were the most since 2006 according to a Pikes Peak Regional Building Department report released last week.

The year to date total of 3,017 marks the first time permits have surpassed 3,000 in a decade and by reaching the 3,000 mark, the local homebuilding industry has achieved a state of “equilibrium”—it’s building enough homes to meet demand without overbuilding.

Just another sign that things are looking good in the Springs.

 

NATIONALLY, HOME PRICES ARE EXCEEDING THE “HOUSING BOOM” LEVEL

The Washington Post, 11.30.16, The Wall Street Journal, 11.30.16

Homes prices, nationally, reached a new high in September—rising above the previous high set in July 2006 during the “housing boom”, according to the Standard & Poor/Case Shiller Index released last week.

David M. Blitzer, managing director and chairman of the index committee at S & P Dow Jones Indices, said in a statement that “The new peak set by the S & P/Case-Shiller CoreLogic National Index will be seen as marking a shift from the housing recovery to the hoped-for start of a new advance”.

While housing has lagged behind some sectors of the economy in recent years, there are signs of increasing strength. Robert Shiller, the economist at Yale University who co-developed the above referenced index, said the record provides a significant psychological boost for homeowners, some of whom are finally seeing their homes above water after four years of recovery.  About 12% of homeowners who have a mortgage now owe more than their home is worth compared to 30% at the bottom of the market, according to Zillow.

Despite prices having bounced back, many economists have tempered their enthusiasm about what it means for the housing market’s overall health.  “Crossing this threshold is largely symbolic,” said Ralph McLaughlin, Trulia chief economist.  “The housing market recovery has been very uneven across the U.S.  When controlling for inflation, markets that have reached their pre-recession peaks are few and almost exclusively in the West and South.  And within those markets, it’s mostly high-end homes that have surpassed the peak.”

While prices have recovered, the market is flashing caution signs.  The country in general is building far fewer homes than normal, the homeownership rate is near a 50 year low and mortgages remain difficult to come by, especially for less affluent buyers.  The rise in mortgage interest rates could also curtail home buying for some. 

As I mentioned earlier, the Colorado Springs housing market is on the upswing and is doing so at a reasonable pace—one that appears to be maintainable in the near future.  Considering we are one of the “hottest” housing markets in the country, I for one am extremely positive about the continued housing records we are setting.

 

2017 NATIONAL HOUSING FORECAST, TOP HOUSING TRENDS & TOP HOUSING MARKETS

realtor.com

            2017 National Housing Forecast

In general, the national real estate market is predicted to slow compared to the last two years, across the majority of economic indicators. 

However, “West is Best” and lucky for us—that’s where we are.  Western metropolitan areas are forecast to see a price increase of 5.8% and sales increase of 4.7%--much higher than the U.S. overall of 3.9% and 1.9% respectively.

Realtor.com is forecasting the homeownership rate will stabilize at 63.5% after bottoming at 62.9% in 2016.  New home sales are expected to grow 10%, while new home starts are expected to increase 3%. 

Prior to the election, demographics and an improving economy were laying the foundation for a substantial increase in first-time buyers in 2017 but due to mortgage rate increases over the last few weeks, realtor.com predicts first timers will face new hurdles as they navigate the qualification and buying process.  While higher rates are associated with anticipation of stronger economic and wage growth next year, higher rates will make qualifying for a mortgage and finding affordable inventory more challenging. 

Top Housing Trends for 2017

1. Millennials and Boomers will Dominate the Market.  Next year, the housing market will be in the middle of two massive demographic waves, millennials and baby boomers—that will power demand for at least the next 10 years.  Although increasing interest rates have prompted realtor.com to lower its prediction of millennial market share to 33% of the buyer pool, millennials and baby boomers will still comprise the majority of the market.  Baby boomers are expect to make up 30% of buyers in 2017 and given they’re less dependent on financing, they are anticipated to be more successful when it comes to closing.

 

2. Midwestern Cities will Continue to be Hotbeds for Millennials.  Midwestern cities are anticipated to beat the national average in millennial purchase market share in 2017.  This year, average millennial market share in these markets is 42%, far higher than the U.S. average of 38%.  With strong affordability in 15 of the 19 largest Midwestern markets, realtor.com expects this trend to continue in 2017 even as interest rates increase.

 

3. Slowing Price Appreciation.  Nationally, home prices are forecast to slow to 3.9% growth year-over-year, from an estimated 4.9% in 2016.  Of the top 100 largest metro areas in the country, 26 markets are expected to see price acceleration of 1% or more. Likewise, 46 markets are expected to see a slowdown in price growth of 1% or more.

 

4. Fewer Homes on the Market and Fast Moving Markets.  Inventory is currently down an average of 11% in the top 100 metro areas of the U.S.  The conditions that are limiting home supply are not expected to change in 2017.  Median age of inventory is currently 68 days in the top 100 metro areas.

 

5. Western Cities will Continue to Lead the Nation in Prices and Sales.  Western metro areas in the U.S. are forecast to see a price increase of 5.8% and sales increase of 4.7%, much higher than the U.S. overall.  These markets also dominate the ranking of the reator.com 2017 top housing markets.

 

Top Housing Markets in 2017

Despite a more moderate housing market overall in 2017, strong local economies and population growth will continue to fuel the nation’s top markets. 

While Colorado Springs is forecast as the “12^th Top housing market” in the top 100 metro areas in 2017, we share many of the commonalities of the top 10. 

Our relatively affordable rental prices, low unemployment, increasing population of millennials and baby boomers, along with a high number of listing views on reator.com, puts us up there with the top 10.

As I’ve been saying all along, those of us who live here know the reasons we do, and now the rest of the nation is finding that out too.

Here’s to another great year in 2017 for our city.

 

 

 

 

 

 

 

 

                                                            

November 21, 2016

HARRY’S BI-WEEKLY UPDATE

                                     A Current Look at the Colorado Springs Residential real estate Market

As part of my Personal Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.

...AND THAT I AM…FOR SO MANY THINGS

With Thanksgiving Day almost upon us, I can’t but think about the many blessings I have to be thankful for in my own life.  I’m actually thankful for these most every day, but this time of year I am doubly reminded of just how fortunate I am.

To start with, I am able to live and work in one of the most beautiful and exciting places in the country and I get to share that daily with my family, friends and coworkers to whom I am always thankful for their presence in my life.

I am thankful to live in a country that allows me to believe in the things that are important to me and to earn a living doing something I truly love.

And certainly not least, I am thankful to all of you, my clients and readers, whom I have had the privilege of working with and getting to know over the past 44+ years.  Your continued confidence, referrals and personal relationships mean more to me than I can tell you—so let me simply say—THANK YOU.

The good news I am sharing today in this edition of my eNewsletter is something for us all to be thankful.

I wish each and every one of you a very heartfelt Happy Thanksgiving.

 

***FROM ALL DIRECTIONS WE ARE POSITIVE, POSITIVE***

 

OCTOBER  LOCAL MARKET UPDATE AND MONTHLY INDICATORS PROVIDE RESULTS IN GREATER DETAIL

Pikes Peak REALTORS^® Services Corp.,

In the recently published October 2016 Monthly Indicators and Local Market Update for El Paso and Teller Counties, new listings year-over-year were slightly down for the single-family/patio homes and down 7.7% for condo/townhomes.  Despite that, the great news is that we saw pending sales increase year-over-year of 23.2% for single-family/patio homes and 12.7% for condo/townhomes. 

The median sales price increase year-over-year in all properties was up 10.2%, which is a good sign that the housing market is continuing to appreciate.  If there were more listings, more people would be moving—either selling to trade up or buying for the first time.

     The “Activity Snapshot” shows the one-year change:

• Sold Listings for All Properties was up 19.2%
• Median Sales Price for All Properties was up 10.2%
• Active Listings on All Properties was down 30.5%.

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the neighborhood of your choice from the 33-page Local Market Update. These reports provide greater detail than the monthly “PPAR Monthly Statistics” that I share in the first eNewletter of each month.

Normally, this is the “slower” time of year in the residential real estate market, but there doesn’t appear to be a “normal” anymore.   Post election, with the probability of rate hikes on the horizon, we expect to see even more folks looking to sell and trade up or buy for investment purposes before the recent historical low interest rates are a thing of the past.

I’ve been telling you for quite awhile that this day is coming—and it soon will be here.  If you’ve waited—for whatever the reason—my advice to you is not to wait any longer. With steadily rising median sales prices happening and higher mortgage interest rates soon to be a reality, NOW is the time to make your move. 

To discuss how to make this a reality for you or someone in your family, simply give me a call at 598.3200 or email me at Harry@HarrySalzman.com and let’s see how together we can see what’s best for each individual situation.

 

COLORADO SPRINGS MEDIAN HOMES PRICES RISE 60% MORE THAN U.S. AVERAGE

NAR 11.16

In the 3rd Quarter 2016, metro home price growth was accelerated by the supply crunch, according to the latest survey results of the top 178 metropolitan statistical areas (MSAs) by the National Association of Realtors^®.

Colorado Springs showed a median sales growth quarter-over-quarter of 8.9%, which was 60% greater than the U.S. average of 5.2% for those surveyed.  This is such good news for us and is indicative of our increased job market and continued consumer confidence locally. 

These numbers could have been even higher according to Lawrence Yun, NAR’s chief economist.  He said that prospective buyers faced a very challenging market during the third quarter.  “Mortgage rates around historical lows and solid local job creation created a winning formula for sustained home buying demand all summer long,” he said.  “Unfortunately for house hunters in several of the top job producing metro areas around the country, deficient supply levels limited their options and drove prices higher, especially in markets in the West and South.”

To look at the entire survey of all 178 MSAs, please click here.

 

STATISTICS FROM THE UCCS ECONOMIC FORUM DELIVER MORE GOOD NEWS

UCCS Economic Forum, 11.18.16

The just released October statistics from the UCCS Economic Forum continue to deliver good news on all fronts in the Colorado Springs area.  These charts, which you can access by clicking here, will provide you with graphic detail of how we as a city, as well as El Paso County, are doing in many areas that affect our growth and economy.

If you have any questions about these, or any of the information I’ve presented in this eNewsletter, please give me a call at 598.3200.

 

HOUSING STARTS ARE SEEING GREATEST INCREASES IN NEARLY A DECADE

Housingwire.com, 11.17.16

Housing starts across the U.S., as well as locally, jumped in October to their strongest pace since 2007.  Multifamily homes surged and continued strong demand for owner-occupied housing helped spur home construction activity.

Why now?  The answer—Millennials. 

According to a number of sources, increased demand is coming from Millennials who are seeing improved household growth as the economy promotes further job and income gains.  These folks are an expanding portion of housing demand as they move out of their parents’ homes—increasingly to form families. 

According to Quicken Loans VP Bill Banfield, this report from the U.S. Census Bureau is “a boost of confidence for the housing market, as we haven’t seen a month-to-month leap like this in more than 30 years”.

 “While much of this was driven by the multifamily segment, we cannot overlook the significance of the gains made on single-family home construction—increasing to their highest levels in nine years”, he added.

More excellent news for us all.

 

 

 

 

 

 

 

 

 

 

 

November 7, 2016

 

HARRY’S BI-WEEKLY UPDATE

                             A Current Look at the Colorado Springs Residential real estate Market

As part of my Personal Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.

JUST A FRIENDLY REMINDER….

Tomorrow is Election Day 2016 and it’s up to all of us to cast our vote for the candidates and issues of our choosing.  It’s one of the privileges afforded to us by the Constitution and one that should not be taken lightly.  I realize this election year has been a rather contentious one, but there are many local candidates and U.S. Congressmen and Senators, as well as local issues, that need our support.  If you haven’t already voted via mail-in-ballot, please take the time to do your civic duty.  Our future depends on it.

 

AND THE GOOD NEWS IN THE LOCAL housing market CONTINUES

October PPAR statistics show the Pikes Peak housing market performing extraordinarily well and now we have 27 consequent months of year-over-year increased local Residential real estate sales. 

Homes are selling at 99.2% of listing price with the average days on the market at 37.  This is fabulous news for both buyers and sellers. 

As you will see in the Cumulative Year to Date Summary, total sales numbers in Single Family/Patio Homes are up 13.7% year-to-date and Condo/Townhome sales are also up 13.7% over the same time period.

The Monthly Summary shows that total active listings are down 24.1% for Single Family/Patio Homes and 20.9% for Condo/Townhomes compared to a year ago.  This downward trend is continuing to be great for sellers.  While new listings are slightly up for Single Family/Patio Homes, they are down 10.6% for Condo/Townhomes and it continues to be more difficult, but certainly not impossible, for current buyers to find a new home. 

If you have been thinking of listing your home, now is the time.  However, be prepared for a quick sale, which means you need to have an idea of what and where your next home might be located. 

Median Sales Prices are up year-over-year 8.8% and 11.6% respectively for Single Family/Patio Homes and Condo/Townhomes—more good news for both buyers and sellers.

As in recent times, we are still experiencing some problems with longer lending approval times, bidding wars, delays in getting home appraisals and fewer homes available in the $300,000 and under range.

It’s vitally important in today’s market it is to know what you want, need and can afford prior to the hunt for a new home. There’s no longer the luxury of “let me think about it for a couple of days or even a few hours” at present, as you can see from the statistics.

With interest rates holding at historic lows and equity increasing at a good pace, now is the time to make your move either to sell and trade up or buy for the first time or for investment purposes.  To get the ball rolling, simply call me at 598.3200 or email me at Harry@HarrySalzman.com and let’s see how I can put my special brand of customer service to work for you, your family members or co-workers.

 

OCTOBER 2016 WAS THE 27^TH STRAIGHT MONTH OF INCREASED LOCAL RESIDENTIAL real estate SALES

Statistics provided by the Pikes Peak REALTORS Service Corp, or it’s PPMLS

Here are some highlights from the October 2016 PPAR report.  Please click here to view the detailed 15-page report, including charts. If you have any questions, just give me a call.

In comparing October 2016 to October 2015 in PPAR:                      

                        Single Family/Patio Homes:

• New Listings are 1,218, Up 1.8%
• Number of Sales are 1,266, Up 14.4%
• Average Sales Price is $293,972, Up 11.5%
• Median Sales Price is $255,625 Up 8.8%
• Total Active Listings are 2,227, Down 24.1%

                        Condo/Townhomes:

• New Listings are 161, Down 10.6%
• Number of Sales are 183 Up, 10.2%
• Average Sales Price is $187,283, Up 10.6%
• Median Sales Price is $173,000, Up 11.6%
• Total Active Listings are 200, Down 20.9%
•  

COLORADO SPRINGS AREA MONTHLY SINGLE FAMILY/PATIO HOME SALES ANALYSIS*

                                                Median Sales Price             Median Sales Price

                                                  October 2016                       October 2015

Black Forest                            $502,500                              $423,500                      

Briargate                                  $352,000                              $292,750           

Central                                      $204,000                              $204,150

East                                          $215,000                              $187,500

Fountain Valley:                      $224,500                              $199,900

Manitou Springs:                    $270,250                              $295,000

Marksheffel:                             $271,450                             $264,500

Northeast:                                $255,000                              $233,000

Northgate:                                $418,857                              $398,450          

Northwest:                               $338,850                              $334,950           

Old Colorado City:                  $219,450                              $242,000

Powers:                                    $255,000                              $230,000

Southwest:                               $345,000                              $276,000

Tri-Lakes:                                 $464,669                              $430,609

West:                                        $257,900                              $272,500

*Statistics provided by the Pikes Peak REALTORS Services Corp,or its PPMLS.

 

COLORADO SPRINGS…

• 5^th Best City to Live in 2016—U.S. News and World Report
• 4th Best City for Commuters—selfstorage.com
• 9^th Best City for People who like to Pursue an Active Lifestyle—wallethub.com
• 5^th Most Educated City—Wallethub.com
• 11^th Most Affordable City—Forbes
• 12^th Best City for Business and Careers—Forbes
• One of the Top 6 Hottest Places for Urban Dwellers—Money Magazine
• Consistently one of the “Hottest real estate Markets” in the Nation this year

And the list goes on and on.  Those of us who live here know all of this, but now the rest of the country is finding out exactly why we choose to live and work here. 

Yea for us and a special “shout out” to Mayor John Suthers, the City Council, Regional Business Alliance, Colorado Springs Visitors Bureau and more for their tireless devotion to making all of this a reality.

 

HOMEOWNERSHIP RATE RALLIES

RISMedia.com

The tide may be finally turning on homeownership.  As I’ve been telling you, the home ownership rate has been decreasing and in the second quarter 2016 it reached it’s lowest point in more than 50 years—62.9%--according to the U.S. Census Bureau’s Quarterly Housing Vacancies and Homeownership Report. 

Third quarter 2016 showed a slight increase to 63.5% which is good news indeed.  As expected, rates in the third quarter were highest among those aged 65 and old--79.0%--while lowest for homeowners aged 35 and younger--35.2%.

The new regulations, low interest rates and down payment requirements along with loosened credit qualifications by lenders are helping to contribute to increased homeownership rates.  People, especially younger ones, are more confident in the economy and job prospects, and as millenials age and start to have families, owning a home becomes more of a priority.

It will take some time, but hopefully this is a sign that the “American dream” of homeownership will be coming true for more and more people.

 

A GLIMPSE AT THE CURRENT STATE OF THE housing market…FYI

Realtormag.com, 11.16

Jobs are growing, incomes are rising, interest rates remain historically low but as I just mentioned—home homeownership is still low.  Lack of inventory in many U.S. markets is contributing to this; however, NAR Chief Economist, Lawrence Yun, thinks homeownership isn’t likely to budge too much, especially if interest rates start to rise—which he believes is likely given the healthy economy.

Supply and Demand:

Even though borrowers can get conventional loans backed by Fannie and Freddie for as little as 3 percent down, and from the FHA for 3.5 percent down, almost 40% of borrowers put down 20% for their home purchase in August 2016.  In early 2014, only 34 percent put down 20 and it’s been rising ever since.  See below:

 

SHOULD YOU SELL NOW OR WAIT UNTIL THE SPRING BUYING SEASON?

RisMedia.com

I get asked this question time and again and I always give the same answer—there are pros and cons that need to taken into consideration for each individual seller.

While a spring buying season is thought to be the “ideal”, this is not always the case.  Here are some good reasons why selling now, rather than waiting for spring, might be a better decision for you.

• Less Competition.  In spring, you can see “For Sale” signs popping up all over the neighborhood.  If you choose to sell now there is sure to be less competition.  The fewer comparable homes for sale, the greater the probability that a buyer will look at your home and that you can get the maximum amount of money for it.  The low number of available listings gets even lower during these months, so listing your home now gives you additional exposure.

 

• Serious Buyers Are Out There.  There are always buyers—no matter what time of year.  Some buyers may stop their home search because it is fall or winter, buy serious buyers will continue to look at homes, no matter what time of year it is.

 

• The Best real estate Agents Are Always Up to the Challenge.  Any real estate agent who tells you that the fall or winter months are not a good time to sell is not someone you want selling your home.  A knowledgeable Real Estate professional, like myself, knows how to adapt to the current season and market their listings to reflect that.  If any Real Estate agent doesn’t give you great tips on how to sell a home during the current season, you should be concerned about the creativity they are going to use when marketing your home.

 

• Staging for the Holiday Season.  Many sellers are beginning to believe that “staging” is what helps sell a home since buyers often have a difficult time trying to envision themselves in a home.  Whether or not this is true, you can do some simple “seasonal” staging such as adjusting the color of the décor or having an aroma in the air that is relative to the time of year.

 

• Mortgage Rates are Low.  Rates are still historically low, but if the economy stays healthy, it’s likely that will soon change.  This is a good reason there are still many potential buyers out there looking.  An increase in interest rates over the winter months could mean fewer buyers who can afford a home come spring.  Bottom line:  take advantage of selling while the interest rates are still low.

 

• Quicker Transactions.  There are fewer transactions now as compared to spring.  As we have all experienced the delays from increased regulations and slower processing times this past summer, selling your home now can lead to a quicker closing time for all concerned.  This will contribute to less stress for both you and your buyer.

 

Hopefully this will help you in deciding if selling your home now is the right thing to do for your personal situation.  As always, any questions you might have can be answered by calling me at 598.3200.  I’ll be delighted to answers any and all of your concerns—in this area—or any other concerning residential real estate.

 

                                                            

October 24, 2016

HARRY’S BI-WEEKLY UPDATE

                                    A Current Look at the Colorado Springs Residential real estate Market

As part of my Personal Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.

COLORADO SPRINGS COMPREHENSIVE PLAN BEING FORMULATED

Several months ago I shared with you that I was selected by Mayor John Suthers to serve on the Steering Committee of Plan COS—a 2-year commitment that will provide the City of Colorado Springs with an updated Comprehensive Plan that will serve as a guide for the development of the City and help establish priorities.

I indicated that I would keep you abreast of what we are doing and I want to share some of what’s happened to date.  We are actively seeking citizen feedback—finding out what you love about Colorado Springs.  You can take the survey and discover more about Plan COS by going to the website at: https://coloradosprings.gov/plancos  .  I would encourage you all to take time to give your input so that this will be a plan “of the people, for the people”.  Please share this website with your neighbors, family and co-workers who live in Colorado Springs so that they can also provide feedback for the Steering Committee.  This is OUR City—it’s up to us all to see that future growth happens in the way we would like. 

At our last meeting we were shown 12 trends that are affecting Colorado Springs and other cities throughout the world.  I thought you would find this interesting and might consider these prior to taking the survey.   They will help you better understand some of the areas that are being looked at in developing a new Comprehensive Plan. 

1. Changing American Demographics.  The influence of youth is rising with the emergence of Generation Z, the generation now coming of age behind Millenials.  As the younger generations of Americans begin to assume more responsibility at home and in the workplace—where they are more likely to start their own businesses—the impacts of differing lifestyle preferences are becoming more apparent in downtowns.  Non-white races and ethnic groups are becoming the majority, more diverse cultural and religious backgrounds are becoming ubiquitous, and gender roles and norms are being redefined.  To this end, a notable preference for living and working environments that prioritize diversity, collaboration, inclusivity, and the free exchange of ideas is emerging.

 

2. Education, Talent + Jobs.  The premium on a young, skilled workforce continues to drive development and investment in American cities.  While college-educated workers make up about one-third of the American workforce, they produce more than half of the nation’s economic output.  Where young skilled workers choose to live is increasingly the key decision factor for business growth and relocation.

 

3. Rise of the Mid-Tier City.  The dense, large “superstar” cities that were synonymous with economic growth and opportunity during the past decades are slowly being overtaken in popularity by smaller-- less flashy but more affordable—urban areas.  These mid-tier cities are beating out superstar cities like New York and San Francisco in attracting 25 to 34-year olds with a college education because they are more affordable and livable.

 

4. Changing Consumer Behaviors.  Advances in technology continue to impact the nature of the retail industry and the shape of brick-and-mortar stores that are critical to downtowns.  The convenience and ease of e-commerce is stimulating increases in online sales; however, the majority of retail transactions still occur in traditional stores.  Many consumers prefer to support the regional economy and locally produced items that offer the added value of an emotional connection through the product with the local neighborhood.  Downtown retail formats that prioritize a personalized consumer experience will stay competitive.

 

5. Shifts in Transportation + Mobility.  There is a national shift away from auto-dependence and toward cities that provide transportation choices that include walking, biking and transit.  This trend has continued and is made even stronger by the lower-than-ever numbers of teens and young adults who are getting their driver’s licenses and owning cars.  Capitalizing on the growing sharing economy, carshare programs are on the rise, expanding from universities and cities into other areas as well.  Another significant and growing impact on transportation in cities is the on-demand ride services of Uber and Lyft.  Apart from the automobile, local bike share initiatives—founded in Europe and China—can now be found in more than 100 cities in North America.  Public transit options are increasing in many downtowns, with cities across the U.S. (re)investing in streetcars and light rail, and attempting to make the transit experience more enticing.

 

6. Downtown + Livability.  There is an increasing demand for authenticity and vibrant spaces.  The reinvestment in downtown and downtown living is no longer an option, but an essential requirement for a thriving city.  The demand for sterile housing developments has been slowed by the creation of more vibrant and amenitized walkable neighborhoods for younger generations and more mature adults looking to age in place.  Redevelopment and infill has provided new housing options with more transportation options.  The high demand for multi-family units in city centers is expected to continue.  Though renting has increased among all age groups, household types and income groups, the primary reason for the high demand for multi-family units in downtown has been attributed to the Millenial and Baby Boomer generations.  A rent premium exists for housing and commercial uses in walkable urban places.

 

7. Regionalism.  In response to dwindling resources and political gridlock at the state and federal levels, city and county governments in metropolitan regions across the county are turning to collaboration with private companies, universities, hospitals, non-profits, and each other in order to accomplish tasks once reserved for, or funded by, state and federal governments.  Partnerships are necessary to also encourage development within urban limits where services exist, and curb rural developments that lack equal access to utilities and other city services.

 

8. Shifts in Global Wealth.  Over 80% of the world’s population lives in emerging markets, and these regions are expected to be responsible for nearly all future global population growth and expanding consumer spending.  Emerging economies are expected to account for 60%-70% of global GPD growth for the foreseeable future as they expand at more than twice the rate of developed economies.  Foreign investment in apartment housing, mixed-use development, and office and industrial space is driving the transformation of American cities.

 

9. Advances in Technology.  To maintain and improve high service levels on tighter budgets, downtowns are increasingly looking toward technological solutions.  Mobile devices are continuing to diminish the importance of static office locations, allowing for connections anywhere, anytime.  Office space configurations are changing, with reduced space needed to conduct business and greater utilization of space beyond traditional eight hour workdays.  To attract young skilled employees, office design is increasingly combining business and social functions—a growth of mixed-use principles within buildings as well as outside of them.  The growing popularity of co-working spaces are reflective of these trends.  In response to high-profile infrastructure failures throughout the country, cities are seeking strategies to manage the high costs of infrastructure maintenance.  Sensors are being increasingly use by cities to measure the status of infrastructure and to cue maintenance.  In terms of mobility, autonomous cars have the potential to dramatically change the arrangement of cities in the coming decades, and limited introduction to the market is possible within the next few years.

 

10. Social Equity + Pride.  There is a rising tide of civic activism and opportunity oriented at neighborhood, community and city building.  This activism stems from a renewed sense of pride and love in one’s city as people continue to chose more urban lifestyles and invest in their neighborhoods.  As this trend has grown, issue relating to inclusiveness, reinvestment, access to services, variety of housing types and prices, gathering areas, civic centers, safety, walkability, access to parks and other topics have become primary conversations in cities across the country.

 

11. Health, Environment, Tourism + Sports.  Healthy environments are becoming an increasingly important factor in where companies and families choose to locate.  As medical, sports and recreation technology (rec-tech) have become viable industries, outdoor-oriented cities are competing to attract these companies and the lifestyles they bring with them.  Whether this is sports training, museums, or companies, a healthy and vibrant natural setting can determine their location.  As outdoor recreation and tourism continue to increase in popularity, locally and nationally, outdoor cities must harness their potential to provide a setting that remains competitive.  In many cases, cities have not just focused on the surrounding natural setting, but also have looked inward, bringing parks, trails and nature into their neighborhoods.

 

12. Military + Defense.  Military bases, institutions, and personnel affect city economies across the country, but as the population grows, other sectors will begin to have a larger influence.  Private sector spin-off industries based on the local talent pool will be part of these new industries.  The ability to capitalize on related technology industries presents an opportunity as the built and human capital for these activities already exists within these cities.

 

A lot to read and take in, but these factors are important considerations in helping determine where and how we want to work and live.  I encounter this daily in my “relocation” of folks from other communities as well as those who simply are looking for new “features” in a local new neighborhood.  This information is most definitely something for us all to consider in making future plans.  I urge you to add your voice to those of others in the community by taking the survey.

 

SEPTEMBER  LOCAL MARKET UPDATE AND MONTHLY INDICATORS PROVIDE RESULTS IN GREATER DETAIL

Pikes Peak REALTORS^® Services Corp.,

In the recently published September 2016 Monthly Indicators and Local Market Update for El Paso and Teller Counties, new listings year-over-year were slightly down for the single-family/patio homes and up 14.0% for condo/townhomes. With that came a pending sales increase year-over-year of 14.4% for single-family/patio homes and 10.0% for condo/townhomes. 

The median sales price increase year-over-year in all properties was up 9.1%, which is a good sign that the housing market is continuing to stabilize.  If there were more listings, more people would be moving—either selling to trade up or buying for the first time.

I’m still finding there are those who wish to move but are afraid to list their homes because if they sell quickly, which has been the case in recent months, they might not be able to find the home they are wanting to buy as quickly as they’d like. 

The shortage of available homes is continuing to affect the number of sales in communities all over the U.S.  However Colorado Springs, while experiencing the same type of listing shortage, is still experiencing a significant number of sales.  This bodes well for our community and is indicative of the increased job market and improved local economy.

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the neighborhood of your choice from the 33-page Local Market Update. These reports provide greater detail than the monthly “PPAR Monthly Statistics” that I share in the first eNewletter of each month.

The “Activity Snapshot” shows the one-year change:

• Sold Listings for All Properties was up 15.7%
• Median Sales Price for All Properties was up 9.1%
• Active Listings on All Properties was down 29.7%.

As you will see, the time to buy is continuing to be NOW.  With a few more choices, continued low, but gradually increasing, interest rates and increased home equity, the opportunity to sell and trade up couldn’t be better. 

To discuss whether this can be a reality for you or someone in your family, simply give me a call at 598.3200 or email me at Harry@HarrySalzman.com and let’s see how together we can make this work.

 

COLORADO SPRINGS IS A TOP CITY FOR BUSINESS AND CAREERS

The Gazette, 10.20.16

On the heels of top rankings in national lists from Money and U.S. News and World Report magazines, Forbes magazine has now named Colorado Springs as a top city nationally for business and careers.  In its 18^th annual ranking of metro areas notable for their work environments, Colorado Springs ranked 12^th out of the nation’s 200 largest cities, according to Forbes.

Rankings were based on 14 different factors related to job growth, business and living costs, income growth, quality of life and the educations of its workforce.  In making its selection, Forbes noted that the city was known for its culture and economy being influenced by military installations and defense contactors and for being a popular tourist destination because of Pikes Peak, Garden of the Gods and Cave of the Winds, among others.

It appears that people around the country are taking note of the good job being done by our City Council and Mayor’s office along with the Regional Business Alliance and others.  With all those folks working together, there’s just no end to the accolades we can expect to get in the coming years.

 

5 real estate TRENDS YOU SHOULD KNOW

realtor.org 10.18.16

The National Association of Realtors^® (NAR) has been publishing the Profile of Home Buyers and Sellers since 1981—the longest running series of national housing data evaluating the demographics, preferences and experiences of recent home buyers and sellers. 

If you could go back in time to 1981 you would see that the housing buyer and seller landscape was much different than that of today.  Mortgage rates were four times higher than they are today, the typical home averaged 1,700 square feet and cost $70,000 ($201,376 in inflation-adjusted dollars) and there was a much larger share of first-time buyers. 

Here are five important trends that have shaped the real estate industry:

1. There’s a big drop in first-time buyers.  Due to various factors, last year’s survey saw first-time buyers drop to the lowest share (32 percent) since 1987 (30 percent).  Echoing this, the U.S. Census Bureau reports the home ownership rate for 18-35 year olds is currently at 34.1 percent, the lowest in records dating back to 1994.

 

2. The internet isn’t replacing real estate professionals.  While 90 percent of potential buyers have gone online during their home search, they continue to see the value of using a real estate professional when actually buying or selling their home.  Indeed, for-sale-by-owner transactions were at their lowest share ever last year, and haven’t been above 9 percent since 2011.

 

3. Home size hasn’t increased that much.  While tiny homes and McMansions are causing a lot of buzz, NARs profile of Home Buyers and Sellers shows that buyer preferences, when it comes to home size, hasn’t changed all that much.  In 1981, for example, the typical home was just 300 square feet smaller (1,700) than it was in year’s survey.

 

4. Down payments are down.  NAR first collected data on down payments in 1989 when the average monthly mortgage rate was 10.62 percent.  At that time, buyers financed their home with a 10 percent down payment.  In the last two surveys, first-time buyers put down around 6 percent.

 

5. The home search is longer.  Even though buyers now have technology and the world at their fingertips, it’s not making the home search process faster.  In fact, the average length of a home search was around seven or eight weeks from 1987 until 2007 and it climbed to around 10 weeks in the last two years.

Here is a look back over the past 35 years of home buying and selling

 

FIRST TIME BUYERS BEHIND LATEST HOUSING GAINS

Realtormag 10.20.16

First time buyers are responsible for most of the sales momentum in September according to NAR.  An illustration of Existing Home Sales nationally for September 2016 is below.  As you’ve seen from recent statistics, Colorado Springs is seeing higher median home prices than the U.S.

 

 

 

 

 

 

 

October 10, 2016

HARRY’S BI-WEEKLY UPDATE

        A Current Look at the Colorado Springs Residential real estate Market

As part of my Personal Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.

EVEN WHEN I’M AWAY I’M BUSY WORKING FOR YOU

I spent the last nine days in Washington, DC, some of it for business and some for pleasure.  On the business side, I attended two conferences on corporate relocation.  The first was relocation Directors Council (RDC), an organization of which I am a Past President and Life Member.  My contacts from here go back many years and I know when I have a client relocating to or from another city I can refer one of my clients to them and they will provide the same kind of excellent customer service that you’ve come to expect from me. 

The second was the Worldwide ERC Global Workforce Symposium, where I get to meet with folks from all over the world who work in the relocation industry—from HR directors, real estate brokers, lenders, movers and so much more.  The knowledge I gain at these twice a year meetings consistently proves invaluable in my work with relocating clients—either around the corner or around the world. 

While there, I had the opportunity to meet with people in Colorado Senator Cory Gardner’s office concerning some issues that have been affecting my clients who use VA financing.  I am pleased to have learned that through the work of myself and other frustrated brokers, Congress is making some changes that will hopefully ease the recent problems. 

On the pleasure side, what can I say?  I always find DC to be awe-inspiring.  It’s amazing how much of “history” occurred during my lifetime and I’m grateful and thankful to all of those who came before me who helped fight for our rights and build our government.  Seeing all the Memorials and Veteran Memorials gives me the opportunity to quietly thank those who served and gave their lives so that we may live in relative peace.  The opportunities afforded me were and are only possible because of the struggles of those who came before. 

There’s never enough time to take it all in and I look forward to returning soon.

 

IT’S THE SAME OLD STORY…AND FORTUNATELY FOR US…IT’S A GOOD ONE

September PPAR statistics continue to show the Pikes Peak housing market performing extraordinarily well and now we have 26 consequent months of year-over-year increased local Residential real estate sales. 

Homes are selling at a whopping 99.6% of listing price.  Not only that—the average days on the market is 31.  This is fabulous news for both buyers and sellers. 

As you will see in the Cumulative Year to Date Summary, total sales numbers in Single Family/Patio Homes are up 13.7 over September 2015 and Condo/Townhome sales are up 14.1% over the same time period.

The Monthly Summary shows that total active listings are down 24.0% for Single Family/Patio Homes and 20.2% for Condo/Townhomes compared to a year ago.  This downward trend is continuing to be great for sellers.  While new listings are slightly up, it continues to be more difficult, but certainly not impossible, for current buyers to find a new home.  If you have been thinking of listing your home, now is the time.  However, be prepared for a quick sale, which means you need to have an idea of what and where your next home might be located. 

Median Sales Prices are up year-over-year 10% and 9.4% respectively for Single Family/Patio Homes and Condo/Townhomes—more wonderful news for both buyers and sellers.

We’re still experiencing some problems with longer lending approval times, bidding wars, delays in getting home appraisals and fewer homes available in the $300,000 and under range.

It’s vitally important in today’s market it is to know what you want, need and can afford prior to the hunt for a new home. There’s no longer the luxury of “let me think about it for a couple of days or even a few hours” at present, as you can see from the statistics.

With interest rates holding at historic lows and equity increasing at a good pace, now is the time to make your move either to sell and trade up or buy for the first time or for investment purposes.  To get the ball rolling, simply call me at 598.3200 or email me at Harry@HarrySalzman.com and let’s see how I can put my special brand of customer service to work for you, your family members or co-workers.

 

SEPTEMBER 2016 WAS THE 26^TH STRAIGHT MONTH OF INCREASED LOCAL RESIDENTIAL real estate SALES

Statistics provided by the Pikes Peak REALTORS Service Corp, or it’s PPMLS

Here are some highlights from the September 2016 PPAR report.  Please click here to view the detailed 14-page report, including charts. If you have any questions, just give me a call.

In comparing September 2016 to September 2015 in PPAR:                      

                        Single Family/Patio Homes:

• New Listings are 1,395, Up 4.2%
• Number of Sales are 1,381, Up 16.0%
• Average Sales Price is $291,342, Up 8.9%
• Median Sales Price is $264,000 Up 10.0%
• Total Active Listings are 2,443, Down 24.0%

                        Condo/Townhomes:

• New Listings are 200, Up 21.2%
• Number of Sales are 211, Up 15.3%
• Average Sales Price is $198,915, Up 11.1%
• Median Sales Price is $175,000 Up 9.4%
• Total Active Listings are 221, Down 20.2%

 

COLORADO SPRINGS AREA MONTHLY SINGLE FAMILY/PATIO HOME SALES ANALYSIS*

                                                Median Sales Price             Median Sales Price

                                                  September 2016                    September 2015

Black Forest                            $475,000                              $411,250                       

Briargate                                  $345,750                              $293,500         

Central                                     $204,500                              $193,300

East                                          $218,500                              $191,000

Fountain Valley:                      $229,700                              $205,900

Manitou Springs:                    $385,000                              $365,000

Marksheffel:                             $267,888                             $248,000

Northeast:                                $250,000                              $235,000

Northgate:                                $430,525                              $370,500           

Northwest:                               $369,000                              $355,000           

Old Colorado City:                  $191,500                              $277,500

Powers:                                   $250,500                              $225,000

Southwest:                              $292,500                              $270,000

Tri-Lakes:                                $411,000                              $392,500

West:                                        $270,000                             $243,000

*Statistics provided by the Pikes Peak REALTORS Services Corp,or its PPMLS.

 

UCCS QUARTERLY ECONOMIC REPORT

The recently released Quarterly Economic Update from the UCCS Economic Forum also shows how consumer sentiment is continuing to fuel the national economy and the housing market.  To view the10-page report in its entirely, please click here. 

Some highlights include:

• The seasonally adjusted unemployment rate for El Paso County at the end of June was 4.5%, which is lower than the U.S. average
• Single family building permits in the Pikes Peak region increased 27% compared to a year ago

And one more reminder—the 20^th Annual UCCS Economic Forum is being held this Friday afternoon at The Broadmoor.  For more information and/or to register, contact:  www.UCCSEconomicForum.com .

 

COLORADO SPRINGS IS #1 MOUNTAIN CITY ACCORDING TO MONEY MAGAZINE

The Gazette, 10.7.16

Colorado Springs was chosen by MONEY magazine as one of the six hottest spots for urban dwellers nationwide.  It’s also considered “the easiest place to live”, even compared with the five other top cities.

Those of us who reside here already know this, but hey, it’s great to see that we get national recognition—even over Denver. 

Employment here is rising at its fastest pace since 2000—outpacing the rate not only in Colorado, but also across the nation, MONEY reports.

According to the magazine, “Low crime, good schools, easy commutes, health care options, and increasing but still affordable home prices have earned Colorado Springs the top ease-of-living rank among our Best Cities”.

Citing our aerospace and cybersecurity industries, being “Olympic City U.S.A”, eclectic neighborhoods such as Old Colorado City, having Colorado College, a top liberal arts school, and of course, our “sun drenched” mountains, Colorado Springs has much to offers its residents the magazine says.

So I suppose our “secret” is out and it’s nice to see all the hard work that Mayor John Suthers and so many others are doing is reaping accolades in national publications.  Way to go, Colorado Springs.

 

AND ANOTHER FEATHER IN OUR CAP…

Realtor.org 9.30.16

With this currently being one of the hottest fall housing markets in a decade nationally, Colorado Springs is right up there.  We are #16 in the list of cities pinpointed as the “Hottest real estate Markets” in the nation for September.

Inventories in the top 20 markets are moving 23 to 43 days more quickly than the national average and listings are garnering 1.4 to 3.7 more views according to the latest data from realtor^®.com.

According to Jonathan Smoke, realtor^©.com’s chief economist, “The fundamental trends we have been seeing all year remain solidly in place as we enter the slower time of year.” 

What that means is that short supply and high demand, along with rising prices, are not going away just yet.  As I mentioned earlier, if you’ve been on the fence, don’t delay much longer or it’s going to cost you—one way or the other.  Give me a call today and let’s see what we can do to help make all your residential real estate dreams come true.