Real Estate Information Archive

February 20, 2025

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

A NOTE FROM THE EDITOR:

Well, this is a first.  

I’ve just been under the weather for a few weeks.  While Harry, my Realtor Extraordinaire husband and eNewletter author, always says “the show must go on” … I told him to speak for himself.  I’m not the energizer bunny he is.

That being said, I still wanted to get you all the January 2025 statistics that I know many of you enjoy and even use in your work.  And most especially since things are beginning to pick up in the local Residential real estate arena.

Harry said to be sure and tell you that the spring buying and selling season is almost upon us and if you’re even thinking about making a move, he’s here to talk to you about all things Residential real estate.  With listings on the rise, and interest rates slowly dropping, now is the time to get ready so you’ll be ahead of the traditional “busy” season.

You can email him at Harry@HarrySalzman.com or call him at 719.593.1000 and he’s got the answers to your questions.

 

And now for statistics…

 

JANUARY 2025

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

Here are some highlights from the January 2025 PPAR report.  You might note that while homes are selling at close to asking price as in the past several months, the days on the market are longer.  I expect that to change if interest rates go down more.

In El Paso County, the average days on the market for single family/patio homes was 65.  For condo/townhomes it was 71.  

 

Also in El Paso County, the sales price/list price for single family/patio homes was 98.7% and for condo/townhomes it was 98.0%.  

 

In Teller County, the average days on the market for single family/patio homes was 77 and the sales/list price was 98.9%.

 

Please click here to view the detailed 10-page report, including charts.  If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.

 

In comparing January 2025 to January 2024 for All Homes in PPAR:

                        

                        Single Family/Patio Homes:

·       New Listings were 1,223, Up 27%

·       Number of Sales were 696, Up 4.2%

·       Average Sales Price was $548,541, Up 5%

·       Median Sales Price was $482,250, Up 7.2%

·       Total Active Listings are 2,514, Up 43.7%

·       Months Supply is 3.6

 

 

Condo/Townhomes:

·       New Listings were 204, Up 1% 

·       Number of Sales were 87, Down 19.4%

·       Average Sales Price was $369,817 Down 0.6%

·       Median Sales Price was $340,000, Down 5.6 %

·       Total Active Listings are 505, Up 51.7%

·       Months Supply is 5.8

 

JANUARY 2025 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

Colorado Association of REALTORS^{® ,} Pikes Peak REALTORS Service Corp, or it’s PPMLS

Providing greater detail than the above report, this contains information on both El Paso and Teller counties for Residential real estate.  

The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year-to-Date one-year change:

 

• Sold Listings for All Properties were Up 3.2%

 

• Median Sales Price for All Properties was Up 5.7%

 

• Active Listings on All Properties were Up 34.6%

 

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical are of your choice from the 18-page Local Market Update.  It’s a good idea to check out your own area or one that you might be considering in order to get a good idea of the local pulse.  As an example, here is a detailed report on the Colorado Springs area:

 

 

ECONOMIC & WORKFORCE DEVELOPMENT REPORT

Data-Driven Economic Strategies, January 2025

As always, I like to share the useful data I receive from our “local economist”, Tatiana Bailey.  You will see in these charts what’s happening locally in terms of the economy as well as the most recent Workforce Progress Report. 

This information is especially invaluable to business owners; however, I know you all will all find it worthwhile reading.

Below is a reproduction of the first page of graphics. To access the full report, please click here.  And if you have any questions, give me a call.

 

 

ERA SHIELDS STAT PACK

Data through January 2025, ERA Shields

Here is data from my company’s monthly “Stat Pack” that can better help you understand the local buying and selling reality.  I have reproduced the first page, and you can click here to get the 5-page report in its entirety.

January 27, 2025

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

ONCE AGAIN…LOTS OF QUESTIONS ABOUT RESIDENTIAL real estate 

Well, the new year started off with both national and local reports about the state of Residential real estate and as I had been predicting…. U.S. home sales in 2024 fell to their lowest level in nearly 30 years—since 1995.

That being said, the optimist in me, along with my having lived through so many cycles in my almost 52 years in the business of Residential real estate, I believe this year will be one that helps turn around the trend of the last several years.

Yes, interest rates are over 7% at present, but that is only one side of the story.  As I’ve mentioned time and again, the 7% rate is not set in stone.  I work with a number of lenders who are more than willing to look at each individual situation and try to come up with a more workable interest rate.  Hey, they want to lend and are doing whatever it takes to make that happen if at all possible.

And, of course, rates will go down.  Not to the historic lows of several years ago—I doubt we will see those again soon or possibly ever—but they will probably settle in the 6.25% or a bit higher range by the end of 2025 per the National Association of Realtors (NAR) and at that time it will likely be possible to refinance and obtain a lower monthly payment.

The most important thing though is that home appreciation is still happening and that is not likely to stop.  So, while you may have a higher interest rate if you buy now, you are building equity which in turn is adding to your family’s wealth.  

For most, a home is their greatest financial asset and their biggest investment in themselves.  At the same time, it provides a place for you and your family to make memories and build a life together.  That in itself is priceless.

We are starting to see more homes come on the market this year in readiness for the spring buying and selling season.  I believe the reason is that those who were waiting for interest rates to drop before selling to trade up or move to a new neighborhood or location are finally accepting the fact that waiting is no longer a viable option.

Many folks have considerable home equity which will make moving a bit easier in terms of what the monthly output will be in new situation.  In some cases, the monthly payment could even be lower.  

And folks who are looking to stop paying rent and thus someone else’s mortgage will certainly appreciate the knowledge that the monthly payment is going to help their own financial future.

But all of this takes time and decision making, which of course is based on your individual wants, needs and budget constraints.  

And that’s where I can help.  If you have even considered a move, NOW is the time to figure this all out.  With more options, both in available homes and in interest rate choices, you might want to get ahead of the traditional spring buying and selling season so you will be ready to pounce once you find “the one”.

I look forward to meeting with you sooner than later because as you might suspect…Time is of the Essence…. or “the early bird gets the worm” as they say.  In this case, the early bird gets the opportunity to grow their personal assets first.  I like to see my clients get a jump on the rest as I know the excellent opportunities of which they can avail themselves.

Also very important to consider is that when interest rates do fall below 7% as they are forecasted to do, available homes will cost more since there will be greater demand.

 

Give me a call today at 719.593.1000 or email me at Harry@HarrySalzman.com and together let’s see how your Residential real estate dreams can become reality in the best time frame for you.

 

AND JUST TO SHOW YOU THAT 7% INTEREST RATES AREN’T SO BAD…

I just came across the ad for a mortgage company from 1985.  Guess this does back me up when I say I remember those days and even rates as high as 18%.  So, while 7% may look high…it’s low compared to other times in Residential real estate.

 

HOUSING SHORTAGE STILL A BIG OBSTACLE

The Wall Street Journal, 1.24.25

While volatile interest rates have hurt sales in the recent housing market, a severe shortage of existing homes for sale is probably the most critical obstacle for would-be buyers, according to Zillow Group Chief Executive, Jeremy Wacksman.

Wacksman said recently, “Not to oversimplify, but you really can boil the housing affordability crisis down to an availability crisis.  Getting more homes available is going to be ultimately what starts to unstick the housing market.”

This has certainly contributed to making 2024 the worst year since 1995 in homes sales both nationally and here in Colorado Springs, but as I’ve been telling you recently, listings are starting to pick up locally and I believe that will lead to more sales in 2025.

So once again, if you are ready, don’t delay.  The best time to prepare is now before the traditional spring buying and selling season.

 

IF YOU WANT TO BUY A HOUSE, FIRST FIGURE OUT HIDDEN COSTS

The Wall Street Journal, 1.7.25

If you are a first-time homebuyer you can easily get blindsided by costs other than the downpayment and monthly mortgage payments so it is always a good idea to consider what other hidden costs could pop up unexpectedly.

Some things to take into consideration BEFORE buying that first home can include:

 

• Home Insurance

 

• Maintenance

 

• Association Fees

 

• Property Taxes

 

• Utilities

 

I always work with my first timers to help them take into consideration most of the additional costs associated with homeownership that they might not have realized will be there.  

This is simply a heads up to remind first timers that there will be things that could affect how much they might want to spend on their first home so they can plan accordingly.  Most of those fees will be known upfront but it never hurts to plan ahead to avoid surprise costs later.

 

ECONOMIC & WORKFORCE DEVELOPMENT REPORT

Data-Driven Economic Strategies, December 2024

As always, I like to share the useful data I receive from our “local economist”, Tatiana Bailey.  You will see in these charts what’s happening locally in terms of the economy as well as the most recent Workforce Progress Report. 

This information is especially invaluable to business owners; however, I know you all will all find it worthwhile reading.

Below is a reproduction of the first page of graphics. To access the full report, please click here.  And if you have any questions, give me a call.

 

UCCS ECONOMIC FORUM MONTHLY DASHBOARD   

Updated December 2024, UCCS College of Business/Economic Forum

Here is the monthly report from the UCCS College of Business Economic Forum.  It is created by professor Dr. Bill Craighead, who is the Forum Director.  He also publishes an on-line “Weekly Economic Snapshot” you might enjoy. 

I know several of you who like statistics and use this information in your daily business life, and I will share it with you when I receive it each month.  

I’ve reproduced the first page of the charts below.  To access the report in its entirety, please click here.  

 

 

HARRY’S JOKE OF THE DAY:

 

FEATURED LISTING:  

The price was recently reduced so it might not last long, but this is a great buy in a good neighborhood.

January 8, 2025

 

HARRY’S BI-WEEKLY UPDATE

           A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

HAPPY NEW YEAR….AND WELCOME TO 2025

As we begin 2025, I wish all of you a happy, healthy, and prosperous year.  

2024 was another year of trials and tribulations in the Residential real estate market, both nationally and here in Colorado Springs.

High interest rates and the lack of existing homes for sale created the slowest market year since 2011.

However, U.S. pending home sales hit a 21-month high in November and as you will see from the statistics below, our listings and sales are on the rise as well.

We are seeing more listings for this time of year than in the recent past and I believe it’s due to a more optimistic outlook that seems to be permeating the housing market.  Folks are realizing that interest rates are not going back to the historic lows of 4 or 5 years ago and home prices are continuing to rise.

I always start my new year by predicting how I personally see the Residential real estate market affecting not only the Colorado Springs area, but also how it will affect my clients in general.  

My predictions for 2025 include the expectation that things will continue to be slow in terms of time.  It will take a bit longer to sell, and pricing adjustments might be necessary, but home values will still rise by 3% to 4%.  Nothing is “black and white” anymore and anything is negotiable, even interest rates. 

 

I also believe:

 

• Demand for existing homes will be strong due to lack of homes for sale.

 

• Interest rates on 30-year fixed-rate mortgages will drop down to the 6.2%-6.3% range by the end of 2025, which is great news since rates were as high as 7.75% in 2024.

 

• If homes are priced right, the probable number of days on the market will be around 60 days.

 

• Renters are going to continue to be looking to buy, if possible, due to higher rental rates.

 

• Homes will continue to appreciate as they have in the past, although not as rapidly.  As I’ve said time and again, you can’t only look at the last quarter or even the last couple of years.  real estate is a long-term investment. 

 

When you look at the value of home ownership compared to other investments, it’s still going to be extremely positive.  And even in a slow market as we’ve recently seen, our home values keep appreciating…although at a more “normalized” rate.

 

• For most, your home will likely continue to be your largest and fastest growing investment.

 

I have always said that no one can expect to buy at the lowest price point, nor sell at the highest.  It just isn’t possible and most anyone who thinks they can will likely lose in the long run.

Yes, prices are holding steady and those who are waiting for them to drop before they buy will likely not see this happen.  This is also reflected in the statistics below.  You can see that homes are selling at close to listing price and home values are not depreciating.

And, while it may be more difficult today, it’s still possible for you to find what you need, want, and can afford in a home.

With new companies relocating here or expanding their current business plans, we are seeing an influx of folks moving here for jobs and they are needing places to live. This is putting even more pressure on folks wanting to buy—either to sell and trade up, purchase a first home or even for investment purposes.

Since sales have been picking up recently, during what is traditionally the slowest time of the year, it appears that folks are starting to buy and sell much earlier than normal.  They aren’t waiting for the “traditional” spring buying and selling season.  

It’s important to note that with rising competition, folks starting to buy and sell earlier than normal, and still so few existing homes for sale, if you are in the market you need to be prepared to know exactly what you want, need, and can afford PRIOR to beginning the search.

That’s where I come into the picture.  The current market is not for the timid or inexperienced.  It takes a lot of advanced planning and knowledge of how to navigate these waters.

My almost 53 years in the local residential real estate arena, coupled with my investment banking background, give me an edge that my clients have found to be crucial in helping them and their families realize their personal real estate visions.

A new year brings with it a lot of new hopes and dreams. If Residential real estate is among your hopes and dreams for 2025, please give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let me help make them come true.  

The earlier you begin the process, the earlier you will be realizing those dreams for you and your family.

 

And…if you’ve got two minutes and 24 seconds, I recommend that you take a look at my newest “crystal ball prediction” podcast . Simply click on the link below and you will be directed to my personal YouTube channel.

 

To watch, click here:

https://youtu.be/Fyz5j_6Ub7o

 

While you’re at it you might want to subscribe to my channel, so you won’t miss future broadcasts.  It won’t cost you anything…well, it could cost you… if you miss some of my informative musings!

 

And now for statistics…

 

DECEMBER 2024

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

Here are some highlights from the December 2024 PPAR report: 

 

In El Paso County, the average days on the market for single family/patio homes was 56.  For condo/townhomes it was 63.  

 

Also in El Paso County, the sales price/list price for single family/patio homes was 99.0% and for condo/townhomes it was 98.4%.  

 

In Teller County, the average days on the market for single family/patio homes was 66 and the sales/list price was 97.5%.

 

Since these are year-end statistics, I am providing you with both the regularly posted year-over-year monthly stats as well as the cumulative year-to-date comparison of 2024 to 2023.  

Please click here to view the detailed 10-page report, including charts.  If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.

 

In comparing December 2024 to December 2023 for All Homes in PPAR:

                        

                        Single Family/Patio Homes:

·       New Listings were 707, Up 22.5%

·       Number of Sales were 877, Up 12.9%

·       Average Sales Price was $545,969, Up 5.0%

·       Median Sales Price was $485,000, Up 6.6%

·       Total Active Listings are 2,505, Up 32.5%

·       Months Supply is 2.9, Up 2.5%

 

 

Condo/Townhomes:

·       New Listings were 116, Down 0.9% 

·       Number of Sales were 111, Down 2.6%

·       Average Sales Price was $351,532, Down 1.0%

·       Median Sales Price was $340,000, Up 3.0%

·       Total Active Listings are 502, Up 62.5%

·       Months Supply is 4.5, Down 23.7%

 

 

The Cumulative YTD Summary: (comparing Jan-Dec 2024 to Jan-Dec 2023)

 

                        Single Family/Patio Homes:

• New Listings were 16,173, Up 8.7%
• Sales were 11,503, Down 2.0%
• Average Sales Price was $549,346, Up 2.1%
• Volume was $6,319,127,038, Up 0.1%

 

Condo/Townhomes:

• New Listings were 2,660, Up 14.8%
• Sales were 1,695, Down 1.7%
• Average Sales Price was $368,540, Up 0.2%
• Volume was $624,675,300, Down 1.6%

 

Now a look at more statistics…

 

DECEMBER 2024 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

Colorado Association of REALTORS^{® ,} Pikes Peak REALTORS Service Corp, or it’s PPMLS

Providing greater detail than the above report, this contains information on both El Paso and Teller counties for Residential real estate. 

The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year to Date one-year change:

 

• Sold Listings for All Properties were Up 15.5%

 

• Median Sales Price for All Properties was Up 5.9%

 

• Active Listings on All Properties were Up 25.5%

 

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical are of your choice from the 18-page Local Market Update.  It’s a good idea to check out your own area or one that you might be considering in order to get a good idea of the local pulse.  As an example, here is a detailed report on the Colorado Springs area:

 

ERA SHIELDS 2024 RESIDENTIAL real estate REVIEW….AND A 2025 FORECAST

ERA Shields, January 2025

I am happy to share with you the “Colorado Springs Residential real estate 2024 Annual Review and 2025 Forecast” that is produced by my company.  I believe you will find the information to be quite helpful and if you have any questions, you know where to reach me.

To read the report in its entirety please click here.  I have reproduced several pages below.

THE NATION’S HOTTEST housing market IN 2025?  IT’S COLORADO SPRINGS SAYS A NEW FORECAST

The Gazette, 12.10.24

According to an annual forecast released in early December by Realor.com, Colorado Springs ranks as the nation’s No. 1 housing market for 2025 due to hefty increases in homes sales and prices.

Our top spot results from a 27.1% expected jump in the number of home sales in 2025 compared to 2024 and a 12.7% year-over-year predicted appreciation in prices.  Combined, those two percentages gave the city the No. 1 ranking in the Realtor.com forecast for this year.

However, nice as all that sounds, I, among many local professionals, do not agree with that, especially since we have not seen that type of appreciation since the heydays of 2022 when interest rates had fallen to 3% and below.

Also, with so few available existing homes for sale, it’s not likely we would see such a percentage jump at present.

Lawrence Yun, chief economist for the National Association of Realtors (NAR) predicted in December that homes sales nationally would rise by about 10% in 2025 and prices would increase by just 2%.  It’s quite doubtful that Colorado Springs is going to significantly exceed those predictions.

However, Realtor.com is sticking with those predictions.  Ralph McLaughlin, senior economist for Realtor.com said via email, “While we don’t have a history of commenting on others’ opinions of our forecast, our models suggest that Colorado Springs is poised to be an overperformer in the housing market in 2025”.

Well…I can only say…let’s hope he’s even close to right, but certainly not count on it.

November 22, 2024

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

LOOKING AHEAD TO A BRIGHTER 2025 housing market

 

The Residential real estate Market has seen a lot of volatility over the last several years with both buyers and sellers skeptical of “what’s to come”.  

Now is the time of year when I begin to look ahead to develop my “Market Wisdom” for the coming year. I use my 51 plus years in the local housing arena coupled with my investment banking background and the predictions of real estate economists to come up with what I consider to be a realistic picture of the year ahead.

I see our market moving in a positive direction with mortgage rates falling, more homes coming into the market, total home sales to rise and prices to increase at a more reasonable rate than that of several years ago.

This will help with housing affordability for those who were priced out of the market as well as provide better choices for those who have been waiting to sell to trade-up or move to a new neighborhood or out of state.

Existing-home sales across the country ticked up in October compared to the same time last year due to the short-lived drop in mortgage rates.  This was the first year-over-year increase in sales since 2021.

According to Lawrence Yun, chief economist for the National Association of Realtors (NAR), “People are accepting that the mortgage rates, the new normal, are not going to be 3% or 4% or 5%.”  

“We’ve seen after presidential elections—and it doesn’t matter who wins—that there’s usually a slight boost in home sales.  It removes some of the uncertainty.  Now you know it’s the policy (of President-elect Trump) and you can make predictions about what will happen and make a decision on that,” he added.

 

Home Sales to Rise

With the improving job numbers and recent gains in the stock market, Yun predicted that more Americans may be motivated to act.  He predicts an uptick of nearly 2 million jobs for 2025 and another nearly 2 million increase in 2026, which could bode well for the housing market nationally. (and here, too, as well)

“2023 and 2024 were both difficult years in the housing market,” Yun said.  But with the 3% year-over-year gain in September and the October year-over-year increase I mentioned earlier, Yun indicated that “maybe the worse is over”.  

 

Here is Yun’s forecast over the next two years:

 

• 2025 Sales Projection:  Existing-home sales to rise 9% year-over-year; New home sales to jump by 11%.

 

• 2026 Sales Projection:  Existing-home sales to rise 13% year-over-year; New home sales to increase by 8%.

 

Mortgage Rates to Moderate

Obviously, mortgage rates have had a bearing on how the housing market has fared.

According to Freddie Mac, the average 30-year fixed-rate mortgage has ranged from 6.08% to 7.44% over the past 52 weeks.  Yun says the rates should stabilize at the low end of that range for 2025 and 2026.

Yun said that the “locked-in” effect of homeowners feeling stuck-in-place with 2% or 3% mortgage rates from recent years will lessen over time.  

 

Home Prices Increase Slowly After Rapid Rises

As I mentioned earlier, home prices are going to continue to rise, although at a more “normalized” rate.

Yun’s forecast (this is national…and Colorado Springs normally tends to have greater home values and increases than the U.S. average):

 

• 2025 Median Home Price:  $410,700, up 2% over 2024.

 

• 2026 Median Home Price:  $420,000, up 2% over 2025.

 

A Different Type of Buyer

From a newly released NAR  2024 Profile of Home Buyers and Sellers:

 

• More buyers are skipping the mortgage.  Due to the sizable housing equity gains many owners have experienced, all-cash buyers have surged to record highs, accounting for 26% of home sales over the past year. Thirty-one percent of repeat buyers paid all-cash for their next home purchase.

 

 

• First-time buyers are getting older.  The median age of a first-time buyer was 38—an all-time high.  According to the survey, “They are having to save for a longer period of time or maybe wait for the ‘bank of mom and dad’ to give them the funds to buy” . Twenty-five percent of first-time buyers used a gift or loan from a relative or friend for their home purchase; 20% took money out of financial assets like stocks, 401ks or cryptocurrency to afford homeownership; and 7% used inheritance money for their purchase—a record high.  First-time buyers are coming up with the highest down payments in nearly 30 years—at 9%--in order to afford the higher home prices.

 

 

• The allure of cities grows.  The pandemic may have unleashed a trend of suburban movers, but people are not heading back to city centers—the largest uptick in a decade, according to the study.

 

 

• More buyers are pooling their money.  The number of multigenerational households surged to an all-time high of 17% over the last year.  According to the survey, “The number one reason is for cost savings.  They’re combining incomes in order to afford homeownership.”  They’re also buying a multigenerational home to take care of aging parents because of young adults moving back home.

 

• Single women buyers continue to outpace single men buyers.  A drop in marriage rates has triggered more consumers to enter the housing market on their own.  Single women held a 24% share of the home-purchase market over the past year.  For single men it was 11%.

 

So, folks, there you have it.  Both my predictions and those of Lawrence Yun as well as information from the NAR study.

I also look at what’s happening specifically in the Colorado Springs area and there appears to be a lot of good news there as well.

We keep seeing companies wanting to expand their workforce as well as new companies wanting to relocate here.  With that comes a great need for housing and no matter how you look at it—buying is preferable to renting when it comes to amassing wealth.  Folks who are able will find a way to purchase a home if at all possible.

Our fabulous work/life balance makes Colorado Springs a very desirable place to live as those of us who already live here know.  

I for one wish they would leave their cars elsewhere as the traffic sure has gotten worse in recent years, but in comparison to most other large communities, we’ve got nothing to complain about.  

 

It’s not too early to start implementing a plan for your 2025 buying or selling needs and the sooner we start talking, the sooner you will have that plan ready and you’ll be that much further ahead of those who wait.

I look forward to meeting with you sooner than later because…Time is of the Essence… or “the early bird gets the worm” as they say.  

In this case, the early bird gets the opportunity to grow their personal assets first.  I like to see my clients get a jump on the rest as I know the excellent opportunities of which they can avail themselves.

 

Give me a call today at 719.593.1000 or email me at Harry@HarrySalzman.com and together let’s see how your Residential real estate dreams can become reality in the best time frame for you.

 

And, if you’ve got two minutes and 14 seconds, check out my new and improved video podcast 

                                                            

Click on the link below and you will be directed to my personal YouTube channel.

 

https://youtu.be/HoQKABwbQYg

 

While you’re at it you might want to subscribe to my channel, so you won’t miss future broadcasts.  It won’t cost you anything…well, it could cost you… if you miss some of my informative musings!)

 

November 8, 2024

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

 

GREETINGS FROM A SNOWED-IN COLORADO SPRINGS…

 

When I trudged down the driveway to get the mail today, I turned and saw our metal flag buried high in the snow—the top normally reaches my shoulders!!  

As I looked at it I was thinking how much has changed in the last couple of days.  Some are thrilled, some not so much, but I think we can all agree that as Americans it will be nice to hopefully get back to a less contentious time.

I was also thinking how quickly the lovely fall weather turned into a major snowstorm that disrupted travel and plans for lots of folks.  That too will change soon, and we Coloradans can get back to enjoying our great outdoors without freezing and too much snow.

There are lots of statistics to share so I will get to them quickly.  I am confident that the housing market will soon be seeing a lot more action as mortgage rates go down and more homes come on the market.

Things have been slow these last few months, both here and nationally.  In fact, home sales for 2024 are on track for the worst year since 1995—hitting their lowest point in 30 years last month.  Most of that is attributable to the higher mortgage rates, a shortage of available homes for sale and folks waiting for  results of the presidential election.  Many national economists seem hopeful that 2025 will see lower rates which should make homes more affordable for most and we are starting to see more home listings and sales locally.

But no matter what, the slower sales have NOT much affected home values which keep rising here and, in most U.S. major metro areas, as you will see below.  What that means is that homes are NOT going to get any cheaper.  Buying today and refinancing later could be an option, especially considering it’s likely that the home you purchase will be earning equity in the meantime, thus increasing your net wealth.

In my more than 51 years in the local Residential real estate arena I’ve seen most every cycle imaginable, and this is just one of many.  Yes, homes were probably averaging $30,000 or less when I got started, but then I’ve also seen mortgage interest rates as high as 18%. So, like they say…it’s all relative.

All in all, as I perpetually contend, there will always be those who want or need to sell and those who need or want to buy.  And I’ve been here through the years to help them get the very best for their individual wants, needs and budget requirements.  

My investment banking background has been quite helpful in insuring that my clients are able to find the best lending opportunities and I’m proud of the fact that I am now working with not only children, but also grandchildren of some original clients.  That’s such a wonderful full circle thing for me and I never take it for granted.

 

So, without further ado…. here comes lots of statistics.

As always, if you have any questions or just want to chat about the possibilities available for you and your family, you can reach me at 719.593.1000 or email me at Harry@HarrySalzman.com.  I look forward to speaking with you soon.

 

OCTOBER 2024

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

Here are some highlights from the October 2024 PPAR report.  You might note that while homes are selling at close to asking price as in the past several months, the days on the market are a tad longer.  I expect both to change if interest rates go down more.

 

In El Paso County, the average days on the market for single family/patio homes was 40.  For condo/townhomes it was 57.  

 

Also in El Paso County, the sales price/list price for single family/patio homes was 98.0% and for condo/townhomes it was 98.9%.  

 

In Teller County, the average days on the market for single family/patio homes was 66 and the sales/list price was 98.0%.

 

Please click here to view the detailed 10-page report, including charts.  If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.

 

In comparing October 2024 to October 2023 for All Homes in PPAR:

                        

                        Single Family/Patio Homes:

·       New Listings were 1,408, Up 18.8%

·       Number of Sales were 998, Up 17.3%

·       Average Sales Price was $557,741, Up 0.1%

·       Median Sales Price was $475,000, Down 2.1%

·       Total Active Listings are 3,394, Up 35.5%

·       Months Supply is 3.4, Down 2.1%

 

 

Condo/Townhomes:

·       New Listings were 198, Up 7.0% 

·       Number of Sales were 159, Up 24.2%

·       Average Sales Price was $353,312, Down 5.3%

·       Median Sales Price was $335,000, Down 4.3%

·       Total Active Listings are 640, Up 69.3%

·       Months Supply is 4.0, Up 2.9%

 

 

OCTOBER 2024 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

Colorado Association of REALTORS^{® ,} Pikes Peak REALTORS Service Corp, or it’s PPMLS

Providing greater detail than the above report, this contains information on both El Paso and Teller counties for Residential real estate.  

 

The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year-to-Date one-year change:

 

• Sold Listings for All Properties were Up 21.4%

 

• Median Sales Price for All Properties was Down 2.4%

 

• Active Listings on All Properties were Up 30.1%

 

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical are of your choice from the 18-page Local Market Update.  It’s a good idea to check out your own area or one that you might be considering in order to get a good idea of the local pulse.  As an example, here is a detailed report on the Colorado Springs area:

 

COLORADO SPRINGS HOME PRICES CONTINUE TO RISE IN THIRD QUARTER 2024

The National Association of Realtors, 11.7.24

In the just released report from the National Association of Realtors (NAR), single-family, existing-home prices grew in 87% of measured metro areas.  This is down from 89% the previous quarter.

According to Lawrence Yun, chief economist for NAR:

“Home prices remain on solid ground as reflected by the vast number of markets experiencing gains.  A typical homeowner accumulated $147,000 in housing wealth in the last five years.  Even with the rapid price appreciation over the last few years, the likelihood of a market crash is minimal.  Distressed property sales and the number of people defaulting on mortgage payments are both at historic lows.”

Compared to one year ago, the national median single-family existing-home price climbed 3.1% to $418,700.  In the prior quarter, the year-over-year national median price increased 4.9%.

The median price of single-family homes in Colorado Springs rose 1.5% to $473,200 compared to one year ago per NAR.  This price reflects detached, single-family and patio homes but not townhomes or condominiums.  

The median price in the Springs ranked 49^th highest of the 226 cities surveyed.  

Housing affordability slightly improved in the third quarter as mortgage rates trended lower.  The monthly payment (nationally) on a typical existing single-family home with a 20% down payment was $2,137, down 5.5% from the second quarter ($2,262) and 2.4% - or $52 – from one year ago.  Families typically spent 25.2% of their income on mortgage payments, down from 26.9% in the prior quarter and 27.1% one year ago.

“Housing affordability has been a challenge, but the worst appears to be over, Yun said.  “Rising wages are outpacing home price increases.  Despite some short-term swings, mortgage rates are set to stabilize below last year’s levels.  More inventory is reaching the market and providing additional options for consumers.”

To see all 226 metro areas in alphabetical order, please click here.  To see them in ranking order, click here.  Or click here to see what income levels are required to purchase homes based on either a 5, 10 or 20 percent down-payment.

If you have any questions, please give me a call.

 

ERA SHIELDS STAT PACK

Data through October 2024, ERA Shields

Here is data from my company’s monthly “Stat Pack” that can better help you understand the local buying and selling reality.  I have reproduced the first page, and you can click here to get the report in its entirety.

 

ECONOMIC & WORKFORCE DEVELOPMENT REPORT

Data-Driven Economic Strategies, October 2024

As always, I like to share the useful data I receive from our “local economist”, Tatiana Bailey.  You will see in these charts what’s happening locally in terms of the economy as well as the most recent Workforce Progress Report. 

This information is especially invaluable to business owners; however, I know you all will all find it worthwhile reading.

Below is a reproduction of the first page of graphics. To access the full report, please click here.  And if you have any questions, give me a call.

 

 

UCCS ECONOMIC FORUM MONTHLY DASHBOARD   

UCCS College of Business/Economic Forum, Updated October 2024

Here is the monthly report from the UCCS College of Business Economic Forum.  It is created by professor Dr. Bill Craighead, who is the Forum Director.  He also publishes an on-line “Weekly Economic Snapshot” you might enjoy. 

I know several of you who like statistics and use this information in your daily business life, and I will share it with you when I receive it each month.  

I’ve reproduced the first page of the charts below.  To access the report in its entirety, please click here. 

 

October 23, 2024

 

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

 

THE QUESTIONS KEEP ON COMING…… My Answers Remain the Same. 

 

Is now a good time to buy or sell?

 

What’s going to happen with mortgage rates?

 

Should I wait until next year?

 

Well, I don’t have a crystal ball, but I can give answers based on my 51 plus years in the local Residential real estate arena coupled with my background in Investment Banking.

It’s always a good time to buy and sell depending on your individual situation.  As I’ve said time and again, there are always those who want or need to buy and those who want or need to sell.  That’s been true for my entire career and will likely hold true for years to come.

What also has held true, most especially in the Colorado Springs area is that home prices are not likely to go down and ARE likely to continue to rise.  Each month you don’t buy you are likely losing equity and thus losing greater wealth for you and your family.

As you will see later in this eNewsletter, more folks here and nationally are entering the market at a time that is normally slower than in the spring and summer months.

Why is that?  I’ve explained it below but suffice it to say that many folks have been waiting the last few years to either buy for the first time, sell and trade up or downsize.  Whatever the reason, more homes are entering the market at present and that’s a plus for buyers.

The pickings have been sparce during the last year or so when mortgage interest rates were rising.  Now that they are on their way down, although fluctuating, folks who have been sitting on the fence are ready to jump in.

Yes, interest rates are still somewhat high but as I’ve said before…shopping around for rates can result in some happy surprises.  Lenders are chomping at the bit to lend and are doing everything possible to work with buyers.

You can also find some sellers, as well as home builders, who are offering a “buy down”—essentially help with lowering the interest rate for a set period of time until you are able to refinance and lower the interest rate yourself.  (see my YouTube video link below)

Some of these options can sound confusing but that’s why you’ve got me.  I’ve been around for most every cycle imaginable and know the in’s and out’s of it all so you don’t have to.  I can work with your needs, wants and budget requirements to help you find something that is just the right fit for you and your family.

 

Perhaps you’ve waited until after election day to buy or sell?  Well, that day will soon be here.

 

Perhaps you want to wait until next year to buy or sell?  That day will soon be here as well.

 

It’s not too early to start implementing a plan for your 2025 buying or selling needs and the sooner we start talking, the sooner you will have that plan ready and you’ll be that much further ahead of those who wait.

 

I look forward to meeting with you sooner than later because as you’ll see as you read further down…Time is of the Essence…. or “the early bird gets the worm” as they say.  In this case, the early bird gets the opportunity to grow their personal assets first.  I like to see my clients get a jump on the rest as I know the excellent opportunities of which they can avail themselves.

 

Give me a call today at 719.593.1000 or email me at Harry@HarrySalzman.com and together let’s see how your Residential real estate dreams can become reality in the best time frame for you.

 

And, if you’ve got two minutes, check out my new and improved video podcast and discover how you can purchase a fabulous home at a “buy down” on the mortgage which essentially means a lower monthly payment for the first year or two.   Here’s a picture of a chart I featured in the video.  If you have any questions, just ask.

 

                                                                                            (*all financial numbers are approximate)

 

Click on the link below and you will be directed to my personal YouTube channel.

 

https://youtu.be/mADrPVkY1lE

 

While you’re at it you might want to subscribe to my channel, so you won’t miss future broadcasts.  It won’t cost you anything…well, it could cost you… if you miss some of my informative musings!)

 

MORE PEOPLE ARE LISTING THEIR HOMES RECENTLY…WHY?

Keeping Current Matters, 10.17.24

As I mentioned earlier, most “normal” or “traditional” housing cycles see around 40% of the buying and selling take place between April and June each year.  

Well, there’s been nothing quite “normal” in the Residential real estate market for some time now. This year we saw mortgage interest rates come down at the same time the number of homes on the market usually starts to decline.  So, what happened?  More homeowners decided to sell, so more homes came on the market.  This is true here in Colorado Springs as well as nationally.

The most recent data from Realtor.com reveals that in September the number of homes put up for sale increased by 11.6% nationally compared to this time last year.  Locally, we saw an increase in listings of 7.1% in single-family/patio homes and 34.4% for condo/townhomes.  

As the green circle in the graph below shows, the typical September decline nationally in homes coming to the market did not happen—the number actually went up.  See below:

 

 

Ralph McLaughlin, senior economist at Realtor.com explains why there was an unseasonable rise: “This sharp increase is largely due to the decline in mortgage rates in mid-August, enticing homeowners to sell.”

 

So, What Does This Mean If You’re Looking to Buy a Home?

It means more fresh options to choose from than you have had for a while—not the ones that have simply been sitting around unsold.

However, keep in mind that mortgage rates have been ticking up a bit slightly in recent weeks, which could limit the number of folks who feel comfortable with the idea of selling in the months ahead.  And in the recent market, it’s mortgage rates that are largely driving homeowner decisions.

 

Why Buy Now, Rather Than Wait?

As I mentioned earlier, whether you are looking for a starter home, an upgrade or hoping to downsize, you have more homes from which to choose right now.  And if you can find what you are looking for, remember that these new fresh options won’t be on the market forever.  

One month does not make a trend. So, what does that mean going forward?  Whether more homeowners continue to put their homes on the market will largely depend on what happens with the mortgage rates and the economic factors that impact them, like inflation, employment and the reactions by the Federal Reserve.  

 

With that in mind—if you are ready, willing and able, now might be the best moment while more homes are available.

Lawrence Yun, chief economist at the National Association of Realtors (NAR) explains:

“The rise in inventory—and, more technically, the accompanying months’ supply—implies home buyers are in a much-improved position to find the right home and at more affordable prices.”

 

Bottom Line?

Once again—if you are ready, willing and able—NOW is the time for us to get together and see how we can make all the above work for your individual situation.  Just give me a call and we can get the ball rolling.

 

AND IN THE SAME VEIN….an Infographic

Keeping Current Matters, 10.18.24

 

A Few Highlights:

• You may be torn between buying a home now or waiting.  But don’t forget to factor in the equity you’ll gain as prices rise as well as the greater choices you have now.

 

• Experts forecast prices will climb over the next 5 years—and based on those forecasts you could gain about $90k in equity in that time.

 

• You could wait, but you’ll miss out on a lot of equity if you do.  So why not start growing your wealth now in a home that fits your present and future life.

 

• Once again…. let’s talk and see if this is the right time for you.  Call me at 719.593.1000 today.

 

ERA SHIELDS QUARTERLY STAT PACK

Data through September 2024, ERA Shields

Here is data from my company’s quarterly “Stat Pack” that can better help you understand the local buying and selling reality.  I have reproduced the first page, and you can click here to get the report in its entirety.

 

 

FEATURED LISTING:  

It’s the one I featured in my YouTube video link above with the “buy down” offer.  

Be sure to check it out.  I don’t expect it to last long.

September 24, 2024

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

 

RATES, RATES, AND MORE  (LOWER) RATES…

As you’ve probably heard, the Federal Reserve finally lowered the short-term federal funds rate last week by ½ a percentage point.  Some say too little too late, but for those who have been waiting for a drop in the home mortgage lending rates, some relief will likely soon be coming.

While mortgage rates are not directly tied to the federal funds rate, the lowering of that rate usually is followed by a reduction in the home lending rates as well.  And, as you probably know, mortgage rates have been slowing going down in recent days,

This will certainly help those who have been waiting for rates to drop but for those who are nostalgic for the historic rates of several years ago…sorry…I doubt we will ever see rates that low again.  

The current conventional rates of around 5.875 for a 30-year fixed-rate mortgage (FHA/VA are around 5.375 for same terms) are quite normalized and should be dropping a bit more before year’s end.  Having been in this business for 51+ years, I’ve seen rates as high as 18% so today’s rates don’t look too bad.

But let’s talk more about rates for a moment, shall we?  High interest rates can keep some, and most especially first-time buyers, out of the market. However, it’s very good to remember a couple of very important things.

As you’ve probably seen from our local Residential real estate statistics that I publish the first eNewsletter of each month…our home values are continuing to appreciate which means that home equity is growing for most all local homeowners.  

What that means is if you are delaying a move due to the interest rates you are likely going to be paying more for your next home.  And your present home is probably worth more than you might think which could provide you with additional dollars to put down on the next home.  

Together those two facts can make it easier to understand exactly what a new home will cost you.  On top of that, if the rate drops, you can always refinance down the line, all the while earning equity on your new home which you’d likely pay more for later.

Make sense?

Essentially, it’s important to know what your wants, needs and budget requirements are before beginning the search and that will make everything much easier.  

Just give me a call today at 719.593.1000 or email me at Harry@HarrySalzman.com and together let’s see how your Residential real estate dreams can become reality.  

 

THEY DON’T CALL ME “MR. NEGOTIATOR” FOR NOTHING

With my background in Investment Banking and 51+ years working for clients in the local Residential real estate arena, my expertise in negotiation is legendary.  That is a big plus for my clients and one that has saved them a lot of time and money over the years.

I just came across a quote attributed to President John F. Kennedy and I could totally relate so wanted to share it with you.  I’m fairly certain he wasn’t thinking of Residential real estate when he said it, but it’s applicable none the less:

 

“Let us never negotiate out of fear but let us never fear to negotiate.”

 

AND NOW MORE ON THE NEW CHANGES TO COMMISSIONS ON RESIDENTIAL real estate

The Wall Street Journal

I wanted to share this link to a podcast from The Wall Street Journal.  Simply scan the QR Code below for information on the settlement that was reached and find out how this has changed the way real estate agents collect commissions.  You can refer to my last several eNewsletters for additional information or simply give me a call and I’ll do my best to explain it further.

 

 

HOW GROWING INVENTORY BENEFITS TODAY’S BUYERS…an Infographic

Keeping Current Matters, 8.23.24

Some Thoughts:

• Our total active listings on single family/patio homes in El Paso County are up 37.2% year-over-year and new listings are up 14.1% year-over-year as of the end of August 2024.
• What that means to you is that when you buy you have more negotiation power (that’s where I come in!).  

 

SHOULD YOU SELL NOW?  LIFESTYLE FACTORS THAT COULD TIP THE SCALE

Keeping Current Matters, 9.3.24

If you are on the fence about whether to sell now or hold off, you’re not alone.  It’s a common dilemma, but a key point is that your lifestyle might be the biggest factor in your decision.  While financial aspects are important, at times the personal motivations for moving are reason enough to make the move now rather than wait.

An annual report from the National Association of Realtors (NAR) offers some insight into why homeowners might choose to sell.  All of the top reasons are related to life changes, as the graph below highlights:

 

 

The biggest motivators were the desire to be closer to friends or family, outgrowing their current house, or experiencing a significant life change like getting married or having a baby.  The need to downsize or relocate for work also made the list as you can see.

As Danielle Hale, chief economist at Realtor.com explains:

“A consideration today’s homeowners should review is what their home equity picture looks like.  With the typical home listing price up 40% from just five years ago, many home sellers are sitting on a healthy equity cushion.  This means they are likely to walk away from a home sale with proceeds that they can use to offset the amount of borrowing needed for their next purchase.”

If any of these factors are important to you at present, just give me a call and let’s discuss how I can help make your move an easier one, and one based on informed, confident facts that fit your individual situation.

After all, no two houses are exactly alike, and no two families are either.  That’s why I find it so important when we’re discussing what is likely your most expensive investment to make sure all the pieces of the puzzle fit perfectly for you and your family.

 

ERA SHIELDS STAT PACK

Data through August 2024, ERA Shields

Here is data from my company’s monthly “Stat Pack” that can better help you understand the local buying and selling reality.  I have reproduced the first page, and you can click here to get the report in its entirety.

 

September 10, 2024

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

 

LOTS OF INFORMATION HERE SO I’LL LET IT SPEAK FOR ITSELF…

The good news is that it looks like the Fed will lower rates a bit, which should start a downward trend for 2025.  I’ve included a lot of good info on 2025 predictions and more below, including a link to my podcast where I talk about some new lower rates that are currently available.

And, of course, as always, if you’ve even been thinking of making a move, it’s never too early for us to get together and see how together we can begin to get a better picture of how to take your wants, needs and budget requirements and use them for the best outcome for you and your family. 

Simply email me at Harry@HarrySalzman.com or call me at 719.593.1000 and let’s get started today. 

 

And, if you’ve got one minute and 53 seconds, check out some of the current mortgage interest rates that are looking oh, so good that I refer to on my new and improved video podcast. Simply click on the link below and you will be directed to my personal YouTube channel.

To watch, click here:

https://youtu.be/K1ZNOTtPhWs

 

While you’re at it you might want to subscribe to my channel, so you won’t miss future broadcasts.  It won’t cost you anything…well, it could cost you… if you miss some of my informative musings!

 

And now for statistics…

 

AUGUST 2024

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

Here are some highlights from the August 2024 PPAR report.  You might note that while homes are selling at close to asking price as in the past several months, the days on the market are a bit longer.  I expect both to change once the interest rates go down more.

 

In El Paso County, the average days on the market for single family/patio homes was 34.  For condo/townhomes it was 47.  

 

Also in El Paso County, the sales price/list price for single family/patio homes was 99.3% and for condo/townhomes it was 98.3%.  

 

In Teller County, the average days on the market for single family/patio homes was 61 and the sales/list price was 98.4%.

 

Please click here to view the detailed 10-page report, including charts.  If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.

 

In comparing August 2024 to August 2023 for All Homes in PPAR:

                        

                        Single Family/Patio Homes:

·       New Listings were 1,605, Up 14.1%

·       Number of Sales were 1,064, Down 0.3%

·       Average Sales Price was $558,409, Up 0.8%

·       Median Sales Price was $490,000, Up 2.1%

·       Total Active Listings are 3,320, Up 37.2%

·       Months Supply is 3.1, Down 132.3%

 

 

Condo/Townhomes:

·       New Listings were 249, Up 8.3% 

·       Number of Sales were 157, Down 16.9%

·       Average Sales Price was $364,968, Up 1.1%

·       Median Sales Price was $347,200, Down 0.1%

·       Total Active Listings are 597, Up 69.6%

·       Months Supply is 3.8, Down 4.1%

 

AUGUST 2024 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

Colorado Association of REALTORS^{® ,} Pikes Peak REALTORS Service Corp, or it’s PPMLS

Providing greater detail than the above report, this contains information on both El Paso and Teller counties for Residential real estate.  

The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year-to-Date one-year change:

 

• Sold Listings for All Properties were Down 2.1%

 

• Median Sales Price for All Properties was Up 3.7%

 

• Active Listings on All Properties were Up 33.1%

 

You cant click here o read the 16-page Monthly Indicators or click here to get specific information on the geographical are of your choice from the 18-page Local Market Update.  It’s a good idea to check out your own area or one that you might be considering in order to get a good idea of the local pulse.  As an example, here is a detailed report on the Colorado Springs area:

 

COLORADO SPRINGS RANKS #87 IN THE Q2 2024 FHFA HOUSE PRICE INDEX

Federal Housing Finance Agency, August 2024

The recently published FHFA House Price Index for second quarter 2024 lists Colorado Springs as #87 out of the top 100 in house price changes during that quarter. 

We are still in the top 100 and moved up two spots from Second Quarter 2023.  Our lack of available homes for sale has kept us from ranking considerably higher and I am hopeful that things will soon begin to turn around.

We are ranked just slightly below Denver which ranked number 81.  

Below are copies of the entire list as well as of the Colorado Springs changes.  Any questions?  You know where to reach me.

 

HOW THE FEDERAL RESERVE’S NEXT MOVE COULD IMPACT THE housing market

Keeping Current Matters, 9.4.24

With a lot of eyes on the Federal Reserve (the Fed) now that it’s September, the overwhelming expectation is that they will cut the Federal Funds Rate at their upcoming meeting due to recent signs of inflation cooling and the job market slowing down.

Mark Zandi, chief economist at Moody’s Analytics, said; “They’re ready to cut, just as long as we don’t get an inflation surprise between now and September, which we won’t.”

What does this mean for the housing market, and most especially to you as a potential home buyer or seller?

 

Why a Federal Funds Rate Cut Matters

 

The Federal Funds Rate is one of the key factors that influences mortgage rates—things like the economy, geopolitical uncertainty, and more also have an impact.

When the Fed cuts the Federal Funds Rate, it is a signal of what’s happening in the broader economy, and mortgage rates tend to respond.  A single rate cut may not lead to a dramatic drop in mortgage rates, but it could contribute to the gradual decline that’s already happening.

As Mike Fratantoni, chief economist at the Mortgage Bankers Association (MBA) points out, “Once the Fed kicks off a rate-cutting cycle, we do expect that mortgage rates will move somewhat lower.”

And any upcoming Federal Funds Rate cut likely won’t be a one-time event.  Lawrence Yun, chief economist of the National Association of Realtors (NAR) says, “Generally the rate-cutting cycle is not one-and-done.  Six to eight rounds of rate cuts all through 2025 look likely.”

 

The Projected Impact on Mortgage Rates

 

Here’s what experts in the industry project for mortgage rates through 2025.  One contributing factor to this ongoing gradual decline is the anticipated cuts from the Fed.  The graph below shows the latest forecasts from Fannie Mae, MBA, NAR and Wells Fargo.

 

 

So, with the recent improvements in inflation and a cooling job market, a Federal Funds Rate cut is likely to lead to a moderate decline in mortgage rates (shown in the dotted lines).  

 

Two big reasons why that’s good news for both buyers and sellers:

 

It Helps Alleviate the Lock-in Effect  

 

For current homeowners, lower mortgage rates could help ease the lock-in effect.  That’s when people feel stuck in their present home because today’s rates are higher than what they locked in when they bought that house.

If the fear of losing your low-rate mortgage and facing higher costs has kept you out of the market, a slight reduction in rates could make selling a bit more attractive again.  However, this isn’t expected to bring a flood of sellers to the market as many homeowners may still be cautious about giving up their existing mortgage rate.

 

It Should Boost Buyer Activity

 

For potential homebuyers, any drop in mortgage rates will provide a more inviting housing market.  Lower mortgage rates can reduce the overall cost of homeownership, making it more feasible for you, if you’ve been waiting to make a move.

 

What Should You Do?

 

While the probable upcoming Federal Funds Rate cut is not expected to drastically lower mortgage rates, it will likely contribute to the gradual decrease that’s already happening.

And while the anticipated rate cut represents a positive shift for the future of the housing market, it’s important to consider your options right now.  

Jacob Channel, senior economist at LendingTree, sums it up well:  

“Timing the market is basically impossible.  If you’re always waiting for perfect market conditions, you’re going to be waiting forever.  Buy now only if it’s a good idea for you.”  

 

If you have any questions as to whether it’s a good time for YOU, please give me a call and we can look at your individual situation and help determine if it’s the right time for you.  

 

EARLY FORECASTS FOR THE 2025 housing market…an Infographic

Keeping Current Matters, 9.6.24

 

Some Highlights:

If you’ve been thinking about making a move in 2025 and have been wondering what to expect, here’s what expert forecasts say lies ahead.

 

• Mortgage rates will come down slightly.
• More homes will sell.
• And prices will rise more moderately.

 

It’s never too early to start thinking about how the 2025 market will affect you if you have been considering a move.

 

ECONOMIC & WORKFORCE DEVELOPMENT REPORT

Data-Driven Economic Strategies, August 2024

As always, I like to share the useful data I receive from our “local economist”, Tatiana Bailey.  You will see in these charts what’s happening locally in terms of the economy as well as the most recent Workforce Progress Report. 

This information is especially invaluable to business owners; however, I know you all will all find it worthwhile reading.

Below is a reproduction of the first page of graphics. To access the full report, please click here.  And if you have any questions, give me a call.

 

 

UCCS ECONOMIC FORUM  

Registration is open for the annual UCCS Economic Forum on September 26^th at the Ent Center for The Arts.

Get ready for a day filled with insightful economic trends, valuable connections, and plenty of opportunities to learn and grow.

Doors open at noon.

To register and for more information, click on the link below: 

https://click.com.uccs.edu/?qs=f946e6de056a12e9aacbad0867bbfaff4e1b8963ba7fc72fe47d1a0d24f1c946c09f9c016ace1cb1ed28c5d4f6b9fc53a1ebdde35ca2215d

I hope to see you there.

 

August 21, 2024

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

 

FIRST UP…A WORD FROM ME…

 

 

I’ve briefly explained some important news in my latest podcast, so if you’ve got 2 minutes and 28 seconds, you will get a brief idea of the new changes that affect all Residential real estate transactions nationwide effective last Saturday.  These are explained in greater detail in the article below.

 

Click on this link to watch my podcast:    https://youtu.be/4u15MWmxnaU

 

 

WHAT TO KNOW ABOUT RESIDENTIAL real estate COMMISSION CHANGES

The Wall Street Journal 8.15.24

As I mentioned above, change is in the air, and these are some of the biggest changes in decades to the way real estate agents get paid.  The National Association of Realtors (NAR) reached a landmark settlement earlier this year over commissions, and as of last Saturday, August 17, most of its 1.5 million members will be subject to the new rules.  

Here is a synopsis of some things home buyers and sellers need to know.

 

How did the system work up until last Saturday and how is it changing:

For the last 30 or more years the seller has typically paid the agents on both sides of a home sale transaction and decided how much both agents get paid.  Usually, sellers agreed to pay their agent a certain amount—often 5% or 6% of the sale price—and the seller’s agent split this with the buyer’s agent.  When a home was listed for sale, the listing says how much the buyer’s agent can expect to be paid.

Two main changes are now happening.  First, listings in local multiple-listing services (MLS) will no longer show whether a seller is offering to pay a buyer’s agent, or how much.  Second, buyers will be required to sign agreements specifying how much their agent will be paid.  Buyers will do this before they start looking at homes with agents.

This means that buyers should negotiate directly with their agents instead of letting the seller decide how much the buyer’s representative earns.

These changes are taking effect across most of the U.S., but not everywhere.  They ARE taking effect in Colorado.

 

Is this going to bring home prices down?

This does NOT mean that real estate agents’ commissions will go down.  That will be up to buyers and what fees they negotiate with their agents.

If commissions do fall, buyers could benefit by paying lower home prices or sellers could benefit by keeping more profit, depending on how competitive and fast-moving the market is.

 

Am I eligible to receive money as part of the NAR settlement?

If you sold a home in the U.S. in the past decade or so you might be one of some 50 million sellers who are eligible for a modest payout.

 

I’m planning to buy a home soon.  Do I need to use a real estate agent?

This depends on how much time you want to spend overseeing the home search and on your confidence as a skilled negotiator.  Almost 90% of buyers used an agent in the year ended in June 2023, according to NAR.  

However, like home sellers, home buyers can choose to skip the agent and go it alone or use an attorney instead.  

 

If I do want to use an agent, how much will that cost?

You and your agent will agree on compensation upfront.  Buyers’ agents today are usually paid a percentage of the sale price, often 2.5% or 3% but it differs from agent to agent.  

You can also sign a non-exclusive agreement, so you can work with other agents too.   However, most reputable agents such I will only work on an exclusive buyer relationship.

 

What if I want to just tour a home or go to an open house without committing to an agent?

The new rules require buyers to sign agreements with agents BEFORE touring homes.  The agreement can be limited to just one home.  But if you aren’t ready to commit, you can go to an open house without an agent.  Open houses are hosted by the seller’s agent.

You can also ask sellers’ agents to give you tours.  In that case, the seller’s agent isn’t working for you, unless you both agree otherwise.

 

Do I have to pay my agent myself?

No.  As a buyer, you will be responsible for coming to an agreement with your agent about how much the agent will get paid.  But you can always ask the seller to cover that cost so you don’t have to.

If the seller says no, you can sweeten your offer by raising the price. You can also walk away.

 

What if the seller is offering a different amount than what I have agreed to with my agent?

You have a couple of options to consider.  Let’s say you have agreed to pay your agent $10,000, but then you find a home to buy and the seller has offered to pay a buyer’s agent $20,000.  In that case, it is up to the seller what to do with the extra money.  You can ask the seller to give that extra money back to you, either by lowering the purchase price or by giving you a concession.

Or let’s say you have agreed to pay your agent $10,000 but the seller is offering $5,000.  You can still ask the seller to pay the full $10,000 when you make an offer to buy the home.  You could also go back to your agent and try to renegotiate the fee.

 

I’m planning to sell my home soon.  Should I offer to pay the buyer’s agent?

Sellers now have the flexibility to decide whether to offer a commission to a buyer’s agent.  It is unethical for your agent to tell you that you must pay a commission or that if you don’t, agents won’t bring buyers to see your home.

Here are a few options:

• You can tell buyers’ agents upfront what you are planning to pay them.  You can do this by offering to pay the buyer’s agent directly or by agreeing to pay both commissions to your agent to split with the buyer’s agent.
• You can offer a concession that buyers can use to compensate their agents or for other expenses, such as repairs and closing costs.
• You can offer nothing upfront.  When buyers submit offers, they might ask you to compensate their agents.

 

What happens if a buyer’s agent already agreed to get paid less?

Your contract with your agent should specify whether you want to hold on to any surplus, or have it go to the buyer or to your agent.

 

What happens if the buyer for my home doesn’t have an agent?

In the past, when a buyer didn’t have an agent, the seller’s representative often kept the commission offered to a buyer’s agent.  But you should negotiate upfront with your agent what would happen in that scenario.  Your agent may want additional compensation because it may be more work to close the deal.  You should also discuss whether your agent can agree to represent both sides, if it is allowed.

 

What do I do if I think my agent is breaking the rules?

If you believe your agent is breaking any of the rules explained above, you have a few options.  You can find another agent.  You can report the agent to your state’s real estate commission, to a local Realtor association or to an MLS which sets the rules for home listings.  You can also speak to plaintiff attorneys involved in the settlements or consumer advocates.

 

Below is a chart published in The Wall Street Journal that gives you the changes in a nutshell:

 

 

 

Yes, it’s a lot to take in, even for folks like me and I’ve been working in this industry for 51+ years and have a background in Investment Banking.  We’ve had numerous meetings with our local Pikes Peak Realtors Association (PPAR) and others over the summer and I’m more than happy to explain these changes to you in greater detail.  

Just give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and we can discuss any questions you might have in regard to these changes or anything else.

I hope to be speaking with you soon.

 

HOUSING SUPPLY, OR RATHER, LACK OF IT…IS MAKING THE HOME BUYING MARKET THE TOUGHEST SINCE THE ‘80s…

The Wall Street Journal, 8.12.24

Yes, mortgage rates are better now than they were in the 1980’s but greater supply back then led to better affordability.  

Last fall home buying affordability dropped to the lowest level since September 1985, and it fell near that level again in June.  

In 1985, millions of Americans were in their late 20’s and early 30’s, the prime first-time buying years.  They also found themselves priced out of the market.  However, because buyers in the mid-80’s had much more housing supply, homes became more affordable as mortgage rates fell in subsequent years.

First-time buyers today have it much harder.  While affordability is likely to improve by year end if borrowing rates ease and inventory continues to grow, it won’t get significantly better without more home building, economists say.

The chart below shows the housing affordability index:

 

 

The chart above is based on national statistics and as I’ve always said, “real estate is local”—meaning that the affordability of folks here is considerably better than nationally.  However, that said, we are still suffering from a low supply of existing homes for sale and that is keeping a number of folks from becoming homeowners.  

Recent local stats are looking better in terms of people listing homes for sale and I’m hopeful that as interest rates ease more we will see more of those who have been sitting on the fence making their moves (literally) and the supply of available homes for sale will grow.

 

ERA SHIELDS STAT PACK

Data through July 2024, ERA Shields

Here is data from my company’s monthly “Stat Pack” that can better help you understand the local buying and selling reality.  I have reproduced the first page, and you can click here to get the report in its entirety.

August 8, 2024

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

 

LOCAL HOME PRICES CONTINUE TO RISE BUT…FOR THE FIRST TIME IN AGES, MORTGAGE RATES ARE DOWN…

I’ve written and talked a lot about mortgage rates in recent months because of their impact on affordability.  If you’re one of the many who have waited to make a move you’ve probably been waiting for the rates to go down.  Well, you are now getting your wish.

The big news for mortgage rates is that mortgage rates are down a full percentage point from the recent high.  This is HUGE.  This chart makes note of it:

 

 

It’s possible you have seen this as well and are still wondering how low rates are going to go.  Well, let me assure you that the rates we saw during the pandemic are a thing of the past.  If you are holding out to see a 3% mortgage rate again, you’ll be waiting for something that experts agree won’t happen.

As Greg McBride, Chief Financial Analyst at Bankrate said:

” The hopes for lower interest rates need the reality check that ‘lower’ doesn’t mean we’re going back to 3% mortgage rates…the best we may be able to hope for over the next year is 5.5 to 6%.”

The big decrease in recent weeks is a gift for those who have been sitting on the fence.  This may just the right time for you to get moving…literally.  

As you will see in the statistics below, home appreciation in Colorado Springs is still on the rise and will continue to do so.  What that means is that as home values increase, you are going to pay more because the borrowed amount will be higher, even with lower interest rates.

And, with loan rates decreasing, it’s possible that more and more buyers will be entering the market, thus driving up prices even more and bringing back bidding wars.

So, if you have even thought about making a move, NOW is the TIME.  But you won’t know until you start the process.  

Just email me at Harry@HarrySalzman.com or call me at 719.593.1000 and together we can begin to get a better picture of how to best take your wants, needs and budget requirements and use them for the best outcome for you and your family. 

 

And, if you’ve got two minutes, look at my new and improved video podcast. Simply click on the link below and you will be directed to my personal YouTube channel.

 

To watch, click here:

https://youtu.be/ZHnXnF41mUM

 

While you’re at it you might want to subscribe to my channel, so you won’t miss future broadcasts.  It won’t cost you anything…well, it could cost you… if you miss some of my informative musings!

 

And now for statistics…

 

JULY 2024

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

Here are some highlights from the July 2024 PPAR report. 

 

In El Paso County, the average days on the market for single family/patio homes was 31.  For condo/townhomes it was 38.  

 

Also in El Paso County, the sales price/list price for single family/patio homes was 99.5% and for condo/townhomes it was 99.3%.  

 

In Teller County, the average days on the market for single family/patio homes was 48 and the sales/list price was 97.4%.

 

Please click here to view the detailed 10-page report, including charts.  If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.

 

In comparing July 2024 to July 2023 for All Homes in PPAR:

                        

                        Single Family/Patio Homes:

·       New Listings were 1,640, Up 12.0%

·       Number of Sales were 1,127, Up 0.7%

·       Average Sales Price was $571,152, Up 5.7%

·       Median Sales Price was $499,000, Up 5.7%

·       Total Active Listings are 3,273, Up 45.2%

·       Months Supply is 2.9, Up 63.2%

 

 

Condo/Townhomes:

·       New Listings were 246, Up 9.8% 

·       Number of Sales were 145, Down 9.4%

·       Average Sales Price was $381,437, Up 4.6%

·       Median Sales Price was $354,900, Up 3.6%

·       Total Active Listings are 596, Up 97.4%

·       Months Supply is 4.1, Down 10.4%

 

JULY 2024 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

Colorado Association of REALTORS^{® ,} Pikes Peak REALTORS Service Corp, or it’s PPMLS

Providing greater detail than the above report, this contains information on both El Paso and Teller counties for Residential real estate.  

The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year-to-Date one-year change:

 

• Sold Listings for All Properties were Up 3.0%

 

• Median Sales Price for All Properties was Up 5.4%

 

• Active Listings on All Properties were Up 35.5%

 

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical are of your choice from the 18-page Local Market Update.  It’s a good idea to check out your own area or one that you might be considering in order to get a good idea of the local pulse.  As an example, here is a detailed report on the Colorado Springs area:

 

ECONOMIC & WORKFORCE DEVELOPMENT REPORT

Data-Driven Economic Strategies, July 2024

As always, I like to share the useful data I receive from our “local economist”, Tatiana Bailey.  You will see in these charts what’s happening locally in terms of the economy as well as the most recent Workforce Progress Report. 

This information is especially invaluable to business owners; however, I know you all will all find it worthwhile reading.

Below is a reproduction of the first page of graphics. To access the full report, please click here.  And if you have any questions, give me a call.

 

 

UCCS ECONOMIC FORUM MONTHLY DASHBOARD   

Updated July 2024, UCCS College of Business/Economic Forum

Here is the monthly report from the UCCS College of Business Economic Forum.  It is created by professor Dr.Bill Craighead, who is the Forum Director.  He also publishes an on-line “Weekly Economic Snapshot” you might enjoy. 

I know several of you who like statistics and use this information in your daily business life, and I will share it with you when I receive it each month.  

I’ve reproduced the first page of the charts below.  To access the report in its entirety, please click here.