Real Estate Information Archive

 

March 14, 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.

FEBRUARY 2016 WAS THE 19^TH STRAIGHT MONTH OF INCREASED LOCAL RESIDENTIAL real estate SALES

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

And one more time…I am happy to report that prices and sales are continuing their upward climb for the Pikes Peak Region in the Residential real estate Market.

In the Cumulative Year-To-Date Summary you will see that total sales numbers in Single Family/Patio Homes is up 31.0% over February 2015 while Condo/Townhome sales are up 8.1% over 2015. I believe these numbers would have even been higher if there had been more homes available for sale.

The Monthly Summary shows that total active listings continue their downward trend from the same month last year.  In fact, the total active listings for Single Family/Patio Homes are 1,762—again setting the record for the lowest number of active listings since PPAR began record-keeping.

New listings in February were up 10.9% over the same month least year in the Single Family/Patio Homes category. Condo/Townhomes for the same period were significantly down in total active listings and new listings saw an increase of 6.3%.

We are still experiencing low mortgage interest rates, which is apparently reflected in these numbers.  The stock market volatility and low oil prices have helped keep mortgage rates low and people are taking advantage of this before things change.  This has also caused some of my clients to purchase more investment properties to take advantage of the rental shortage and higher rental rates they can get to offset stock market losses.

There are fewer homes available in most neighborhoods and most price ranges, with the current average days on the market a low 59, and those in the low and mid-range tend to go quickly.  These are the homes that are receiving competing bids, some over asking price. Making a quick decision is now the rule in order to secure the home you want.

The spring buying season has not yet really begun but you wouldn’t know if from all the recent activity.  If you are considering selling to trade up or move to a new neighborhood, the sooner you start the better.  There will be more buyers competing for homes during the spring buying season, so starting your search now could not only save you money, buy could afford you a “head start” in the home buying search.  

According to Lawrence Yun, chief economist for NAR, buyers are anticipated to outnumber sellers this spring, creating an even greater shortfall of inventory that is driving up asking prices.  “Given that prices are rising, more people will be pushed on the borderline of conventional mortgage limits and may need a large down payment or a jumbo mortgage,” says Yun.  Jumbo mortgages have limits higher than conforming loan limits of $417,000 and up to $625,500 in some high-prices areas.

One silver lining in jumbo mortgages is that lender confidence in jumbo mortgages is leading to looser credit qualification says Bob Walters, chief economist for Quicken Loans.  Some lenders are accepting credit scores of 700, and sometimes lower, while accepting a down payment of less than the usual 20%. 

Most jumbo borrowers are locking in low fixed rates.  However, if you are planning to stay in your home for only five to ten years, it might be cheaper to go with a lower adjustable rate.  And, while the typical lock-in time for rates is 45 days, for some pre-approved borrowers who are still looking many lenders will lock longer for a slight premium says Walter.

However, as I’ve said in the past few editions, it’s more important than ever 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 this time.

Another factor to consider is that with homes selling so quickly you need to be have a good idea of where you might want to move because you more than likely won’t have the luxury of time on your side to search for a replacement home.

To discover the options available for you, give me a call sooner than later and let’s see what we can do to make this happen.  I can be reached at 598.3200 or by email at Harry@HarrySalzman.com. 

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

In comparing February 2016 to February 2015 in PPAR:                      

                        Single Family/Patio Homes:

• New Listings are 1,250, Up 10.9%
• Number of Sales are 870, Up 21.3%
• Average Sales Price is $270,377 Up 8.9%
• Median Sales Price is $240,000, Up 6.7%
• Total Active Listings are 1,762, Down 27.5%

                        Condo/Townhomes:

• New Listings are 152, Up 6.3%
• Number of Sales are 131, Up 31.0%
• Average Sales Price is $171,198, Up 18.8%
• Median Sales Price is $154,900, Up 12.2%
• Total Active Listings are 145, Down 46.7%

 

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

                                                Median Sales Price             Median Sales Price

                                                  February 2016                        February 2015

Black Forest                            $405,000                              $377,838

Briargate                                  $317,250                              $279,000          

Central                                      $179,900                              $154,000

East                                           $192,000                              $172,500

Fountain Valley:                       $222,000                              $197,950

Manitou Springs:                     $267,500                              $290,000

Marksheffel:                              $270,000                             $236,000

Northeast:                                $247,400                              $211,500

Northgate:                                $360,000                              $365,000        

Northwest:                               $319,500                              $310,500

Old Colorado City:                  $191,000                              $205,000

Powers:                                    $233,000                              $220,000

Southwest:                              $162,000                              $250,225

Tri-Lakes:                                 $450,000                              $427,000

West:                                        $262,450                              $201,500

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

 

SOUTHERN COLORADO ECONOMIC FORUM’S QUARTERLY UPDATES & ESTIMATES

College of Business and Administration, UCCS, Southern Colorado Economic Forum, February 2016

The Fourth Quarter 2015 Update on the El Paso County Economy, including housing trends, was published last week and you can click here to read the full 9-page report.  Much of the section on Housing mirrors the PPAR report and includes:

• The single family permit activity continues its upward trend
• Rental rates continue to climb steeply and vacancy rates fall
• Active listings were down 17.9% year over year, average days on the market are considerably down from last year and median price is up
• Foreclosures are down by 19.4% in 2015 from 2014

Other sections of the report include:

• The Big Picture
• Employment
• Commercial real estate and Airport
• Sales Tax and Car Registration

Salzman real estate Services is proud to have been a supporter of the Southern Colorado Economic Forum since its inception in 1996 and I will continue to provide you with access to this report quarterly as soon as it is made available to me.

 

AS WE ENTER DAYLIGHT SAVINGS TIME, SOMETHING TO REMEMBER…

U.S. NEWS & WORLD REPORT NAMES COLORADO SPRINGS ONE OF TOP BEST PLACES TO LIVE

The Gazette, 3.2.16

According to a report this month by U.S. News & World Report, Colorado Springs is the fifth-best place in the U. S. to live and Denver topped the rankings, adding to the appeal of Colorado living that those of us fortunate enough to live here already experience on a daily basis.

The magazine’s profile of our City said, “This Colorado city, which is filled with natural wonders of its own, has the additional allure of proximity to ski resorts like Aspen and Vail without the associated steep costs of living and high levels of traffic.”

To come up with it’s list, the magazine analyzed 100 cities in the U.S. to find the best places to live based on quality of life and the job market in each city, as well as the value of living there and people’s desire to live there.  Colorado Springs ranked fifth with an overall score of 7.4 out of 10.

 

THINKING OF BUYING A HOME?  WHAT ARE YOU WAITING FOR?

Keeping Current Matters, 3.10.16

With the spring buying season approaching, many of you may be wondering if you should wait before entering the housing market.  If the reasons I gave up in previous articles isn’t enough to convince you otherwise, here are four more reasons to consider.

1. Prices will continue to rise. 

 

Home prices are continuing to rise as indicated above and CoreLogic’s Home Price Index predicts that prices will continue to increase at a rate of 5.4% over the next year.

 A survey of over 100 economists, investment strategists and housing market analysts by The Home Price Expectation Survey reported that home values are projected to appreciate by more than 3.2% a year for the next 5 years.  The “bottom line” in home prices has come and gone and prices will continue to rise.  Waiting no longer makes financial sense.

 

2. Mortgage interest rates are projected to increase. 

 

While Freddie Mac’s Primary Mortgage Market Survey indicates that interest rates for a 30-year mortgage have remained below 4%, most experts predict that they will begin to rise over the next 12 months, possibly up almost three-quarters of a percentage point by this time next year.  An increase will impact your monthly payment and your housing expense will be more a year from now with higher mortgage rates on top of higher prices.

 

3. Either way you are paying a mortgage.

 

According to a paper from the Joint Center for Housing Studies at Harvard University:

 “Households must consume housing whether they own or rent.  Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down the principal while households that rent pay down the principal of a landlord plus a rate of return.  That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”

An aside here—according to John Paulson, a billionaire hedge fund manager, those looking for the best possible investment need to look toward home ownership.   In an article published in July 2014 he said:  “I still think, from an individual perspective, the best-deal investment you can make is to buy a primary residence that you’re the owner-occupier of.  Today, financing costs are extraordinarily low.  You can get a 30-year mortgage for somewhere around 4 percent.  And if you put down, let’s say, 10 percent and the house is up 5 percent, which is the latest data, then you would be up 50 percent on your investment.  And you’ve locked in the cost over the next 30 years.  And today the cost of owning is somewhat less than the cost of renting.  If you rent, the rent goes up every year.  But if you buy a 30-year mortgage, the cost is fixed.” 

Good advice in 2014 and just as good today!

 

4. It’s time to move on with your life. 

 

The “cost” of a home is determined by two major components:  the price of a home and the current mortgage rate.  It appears that both are on the rise.

But what if they weren’t?  Would you wait?  Look at the actual reason you are buying and decide whether it is worth waiting. 

Consider all the above factors and if it’s the right time, then do it sooner than later as it could lead to substantial savings over time.

Just a reminder-it’s more important than ever to have “all your ducks in a row” PRIOR to entering the current housing market.

Give me a call and I can help answer any questions you may have BEFORE you enter the housing market—either for the first time or to sell and trade up or purchase for investment reasons.  Together we can make your housing dreams a reality.

 

HOME EQUITY AT PRE-CRISIS THRESHOLD

The Wall Street Journal, 3.11.16

According to a report from the Federal Reserve last Thursday, U.S. households ended 2015 with their home equity at the highest level in a decade, a housing-recovery milestone that could help shield many Americans that were pinched by financial-market volatility early this year.

This report underscores the extent to which the housing crisis is fading from view, with the value of U.S. real estate climbing to $25 trillion, against $9.5 trillion in mortgages, which translates to home equity of over $15 trillion.  This report combines both households and nonprofits together, but the vast majority of this real estate is held by households. 

“It provides a cushion for these homeowners,” said Frank Nothaft, chief economist of CoreLogic.  “Even if they face some setbacks in the stock market and are looking to access some cash without selling at a loss, they could do so with a home equity loan.”

According to CoreLogic, today about 4.4 million homes still have negative equity.  By contrast, in 2009, over 12 million homes were underwater.

Good news indeed.

 

SOUTHERN COLORADO ECONOMIC FORUM LUNCHEON TO FOCUS ON SMALL BUSINESS

A first time event has been added to The Southern Colorado Economic Forum’s yearly agenda.  On April 12 at The Pinery on the Hill, a luncheon meeting will feature local and national economic forecasts and presentations on the role and economics of Small Business in the Colorado Springs area and the state. 

Hosted by the Forum, which is a part of the UCCS College of Business, and the Pikes Peak Small Business Development Center, the sponsors include Wells Fargo Bank and the Colorado Springs Business Journal. 

The keynote speaker will be Alison Felix, vice president and Denver branch executive of the Federal Reserve Bank, who will be joined by Forum director Tatiana Bailey, Aikta Marcoulier, director the small business center, and Kelly Manning, director of the Colorado Small Business Development Center Network and deputy director of the Colorado Office of Economic Development and International Trade.

To get more information and/or register please call 719.667.3803

 

 

 

 

 

 

 

                                                            

February 26, 2016

 

HARRY’S SPECIAL EDITION

                                          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.

 

THIS IS NEWS THAT JUST COULDN’T WAIT….

So I got this article yesterday and just couldn’t wait to share it with you.  Not only that…I couldn’t actually believe it when I read it.  I’m going to quote the article verbatim—the news is just too good for all of us living in the Colorado Springs area.

As you will see, 3 of the top 20 hottest markets in the country are in Colorado and Colorado Springs is the 18^th hottest housing market in the entire country! 

Now you can see why I just couldn’t wait to share this with you. 

A word to the wise...a hot market means things are moving fast and if you’re ready…NOW is the time.  I've been experiencing this frenzy myself over the last month with the majority of my clients.  So take a look at the article below and then just give me a call at 598.3200 or email me at Harry@HarrySalzman.com and let’s get the ball rolling.

 

The 20 HOTTEST HOUSING MARKETS THIS MONTH

Daily real estate News, 2.25.16

The spring housing market may be off to an early start this year, especially in a handful of cities.

Nationally, buyer demand is high, despite a stubbornly low inventory of homes for-sale. This month saw list prices move up 1 percent over January, reaching $230,000. That is an 8 percent increase over a year ago, according to realtor.com^®’s latest housing report.

“I would use the phrase ‘pent-up-demand’ liberally – we’re seeing it come through in the marketplace,” says Jonathan Smoke, realtor.com^®’s chief economist. “The people who didn’t buy last year were frustrated because they were outbid or couldn’t find a home that met their needs. So they more or less took the holidays off, and are back with way more intensity.”

Realtor.com^® pinpointed the hottest medium- to large-markets nationwide. Listings in these 20 places were viewed two to five times more often on realtor.com^® than the national average, and homes are sold 44 to 78 more days quickly.

Here are the Top 20 Performing Markets for February 2016:

​

                                                            

February 22, 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.

LOCAL MARKET UPDATE AND MONTHLY INDICATORS PROVIDE MIXED BAG DUE TO SHORTAGE OF AVAILABLE LISTINGS

Pikes Peak REALTORS^® Services Corp.,

As you will see in the recently published Monthly Indicators and Local Market Update for January 2016 for El Paso and Teller Counties, new listings were down significantly for properties in both the single-family/patio homes and condo/townhomes categories.  With that came a pending sales increase of 73.9% for single-family/patio homes and 71.9% for condo/townhomes. 

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

The shortage of homes for sale is affecting communities all over the U.S. and it’s somewhat of a “Catch 22” in that those that want to move 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 due to the low number of listings. 

In recent weeks, I’ve seen more activity on available homes than I’ve seen in a long while and homes are selling quickly—many with multiple offers.  I’ll talk more about that in a moment.

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 30.4%
• Median Sales Price for All Properties was up 1.2%
• Active Listings on All Properties was down 47.5%.

If you have any questions concerning the report, please contact me.

 

METRO HOME PRICES ACCELERATE IN FOURTH QUARTER 2015

National Association of REALTORS^®, 2.10.16

Fewer listings and a moderated sales pace had little impact on rising home prices during the final quarter of 2015, which picked up speed and showed continued growth in most of the U.S., according to the latest quarterly report by the NAR.

In 81% of measured markets, the median existing single-family home price increased, with 145 out of 179 metropolitan statistical areas (MSAs) showing gains based on closings in the fourth quarter compared with the fourth quarter 2014. 

For all of 2015, an average of 89% of MSAs saw increasing home prices, up from the average in 2014 (83%) and 2013 (88%).

Lawrence Yun, NAR chief economist, says faster price growth reawakened in the final months of 2015 despite the pace of sales slowing from earlier in the year.  “Even with slightly cooling demand, the unshakeable trend of inadequate supply in relation to the overall pool of prospective buyers inflicted upward pressure on home prices in several metro areas,” he said.  “As a result, homeownership continues to be out of reach for a number of qualified buyers in the top job producing, but costliest, parts of the country—especially on the West Coast and parts of the South.”

The national median existing single-family home price in the fourth quarter was $222,700—up 6.9% from the fourth quarter 2014.  In comparison, while Colorado Springs saw its’ median existing single-family home price rise 5.6% year-over-year, our median price was $237,600—6.7% higher than the U.S. average. 

Our median home prices may not be escalating as much as some other areas of the country, but we did not see the enormous price fluctuations that those areas experienced during the recession and had fewer foreclosures.  The fact that our median prices are higher than the measured U.S. metro areas as a whole is a good thing for our community.

To view all 179 measured areas, please click here.

 

HOMEOWNERSHIP DREAMS ARE BEING PUSHED OUT OF REACH BY INVENTORY SHORTAGES

HousingWire, 2.10.16

As I mentioned earlier, low inventory is causing problems that make it difficult for both buyers and sellers.  And according to the above mentioned report from NAR the problem is not going to subside anytime soon. 

“Without a significant ramp-up in new home construction and more homeowners listing their homes for sale, buyers are likely to see little relief in the form of slowing price growth in the months ahead,” according to Lawrence Yun. 

From a local perspective, I’ve seen a number of different scenarios in recent weeks.  With rental rates continuing to rise there has been an increased interest in investment properties as well as those who are wanting to buy for the first time.  Many properties at the lower end of the market are seeing multiple offers as soon as they are listed.  Oftentimes investors with ready cash and the offer of quick closing times are creating problems for first-time buyers and others who are in competition with them. 

A recent investment client of mine wanted a home that had 12 offers on the day we viewed the home—ours being one of the 12.  It took some very clever negotiation on the part of me and the buyer to deliver an offer that the seller and his broker considered to be the best.  

To restate what I mentioned earlier, it can be difficult for someone who wants to sell and trade up to time it so that he is not left with no place to live!  Listed homes are going quickly and it’s not always easy to find exactly what you might want before your present home sells.  I’ve not seen quite this much activity in a long time and without more homes on the market it’s going to get even worse.

This is where having a knowledgeable, experienced real estate broker on your side is especially important.  It’s our job to figure out exactly what can be done to help you sell and trade up with the least possible stress on your part.  We know how to negotiate offers that get serious attention and help provide you with the options you need in order to make informed decisions.

If you are in the market to sell and trade up or buy for the first time or for investment purposes, please give me a call sooner than later and let’s come up with a strategy that could work for you in today’s market.  Interest rates are holding at historical lows and that can help offset the increase in home prices if you don’t wait too long. 

Call me at 598-3200 or email me at Harry@HarrySalzman.com and let’s get the conversation started.

2016 housing market PREDICTIONS FROM TOP real estate AGENTS

RisMedia, 2.19.16

As a real estate Professional, I get asked quite often to predict where the market is going and it’s not always an easy answer.  If I had a crystal ball it might be easier, but since I don’t I would like to share with you what some of the top Real Estate Professionals across the U.S. are saying:

Is it a good time to buy or sell?

• With mortgage interest rates finally starting to rise a bit, 2016 may be the last time in the foreseeable future to take advantage of these historically low rates.  Now is the time for first time buyers to make their move.

 

• The volume of homes on the market has declined—this means there are often more buyers and not enough inventory of homes for sale.  If staged well, properly priced, and professionally marketed—it’s possible to get multiple offers and in some cases buyers overbidding the list price.

 

• Values are up.  There is demand in the market.  According to the NAR Foot Traffic Report, there are more buyers out in the market right now than at any other time in the past three years.  Buyer demand continues to outpace supply of homes for sale.

 

What should I do if I’m ready to sell?

• Don’t overprice your home—great choices still exist.

 

• Make it shine and stand out from the competition.  With inventory being low, in order to get top dollar quickly, a few updates or touches that make the home feel more higher-end will yield more in the long run.

 

• Declutter!  Also, hire a home stager and listen to what they have to say.  The return on investment is worth the cost.

 

What should I look for if I’m ready to buy?

• First, make sure you are qualified, get your credit in order if needed and find yourself a qualified Realtor with credentials to prove it.  Look for an existing home, one that you would want to come home to, raise a family in or just be proud to own. Make it a dream come true.

 

• Focus on your must-haves and don’t be too picky.

 

• Do it earlier in the year so that you have a larger choice of inventory when people list after the holidays.

 

Should I make any changes in my home before I sell?  What are buyers demanding?

• Buyers and sellers are starting to demand amenities that are energy-efficient, low emission and cost-effective like tank-less water heaters, solar panels, Nest^®-type thermostats, low-water toilets and the like.

 

• Quiet neighborhood.  Good schools and close proximity are a plus.  Updates in the kitchen, 2+ bathrooms.  A slice of “Americana”.

 

 

What’s happening in the real estate market this year? (this is why it’s so crucial to work with a real estate Professional who understands the local market)

• Most agree with economists that interest rates, housing prices and rents will continue to rise in 2016.

 

• Supply may get closer to demand in 2016 and with interest rates rising, it may slow buyer activity somewhat, but it will still be a strong market with prices and inventory beginning to stabilize.

 

• As more Baby Boomers are able to sell the family home, they will continue to seek new, usually active lifestyle communities as their children leave the nest.  Both urban and suburban lifestyle-based communities will become increasingly more popular with these empty nesters as they look beyond their child rearing years and into the future.

 

These are just some of the answers from top agents around the country.  To find more detailed answers about the Colorado Springs area, please call me and I will be pleased to share with you the information the I continue to compile on a daily basis, both out in the field and in my extensive on-going research. 

My job is to do the homework for you so that when you’re ready I will be able to provide you with the excellent customer service for which I’ve become known during my 43+ years in the local real estate arena.  Your goals become mine and I will always do my best to exceed your expectations.

 

 

 

 

 

 

 

 

 

February 8, 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.

BRONCOS WIN PREDICTED BY REALTOR.COM^®

Realtor^®Mag, 2.5.16

Unless you live in a vacuum, you probably know by now that the Denver Broncos won Super Bowl 50 yesterday and it’s a VERY happy day in Colorado as I write this.  Most certainly it’s a testament to how hard work and perseverance can get it done. 

But what you probably don’t know is that realtor.com^®’s chief economist, Jonathan Smoke predicted this win last week.  “Although there is no economically driven correlation between the outcome of the Super Bowl and the housing market, we have found a promising real estate predictor for the Super Bowl that’s more effective than a coin toss”, he said.

Realtor.com^® used January’s performance of the Dow Jones Industrial Average to predict the Super Bowl outcome.  “Out of the 49 games to date, this predictor has anticipated the outcome of the Super Bowl 82 percent of the time,” realtor.com^® states.

Accordingly, this year the stock market ended last month down 5.5%, which realtor.com^® says indicated that the Denver Broncos would win.  If the market had risen in January, the Carolina Panthers would have been the anticipated winners.

“History suggests a Denver win is also good for the overall housing market”, says realtor.com^®.

“Denver’s past wins in the Super Bowl—in 1998 and 1999—were also strong for housing.  In 1998, home prices rose 6% and existing-home sales increased 13%, according to data from the National Association of REALTORS^®.  And housing starts surged 9%, with single-family starts alone up 12%.  In 1999, the housing market also showed rises, with home prices up 7%; existing-home sales increasing 3%; and housing starts inching up 2%.”

Here is a copy of the chart that was used to make this prediction:

Two good things to point out here: The Broncos won AND the housing market should statistically be on track for another good year. 

Good news all around.

JANUARY 2016 WAS THE 18^TH STRAIGHT MONTH OF INCREASED LOCAL RESIDENTIAL real estate SALES

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

It’s beginning to sound like a broken record but in this case, that’s a good thing.  I am happy to report that prices and sales are continuing their upward climb for the Pikes Peak Region in the Residential real estate Market.

The Monthly Summary shows that total active listings continue their downward trend from the same month last year.  In fact, the total active listings for Single Family/Patio Homes are 1,923—the lowest number since PPAR began record keeping.

In the Cumulative Year-To-Date Summary you will see that total sales numbers in Single Family/Patio Homes is up 33.5% over the year 2015 while Condo/Townhome sales are up 8.1% over 2015. (These are the same as the month-over-month totals since it’s only for the month of January this time.)

While this is continuing to create a bit of frenzy for buyers due to fewer available choices, new listings in January were slightly up in the Single Family/Patio Homes category. Condo/Townhomes for the same period were significantly down in both total active listings and new listings. 

We are experiencing another reduction in mortgage interest rates, which is apparently reflected in these numbers.  The stock market volatility and low oil prices have helped keep mortgage rates low and people are taking advantage of this before things change. 

There are fewer homes available in most neighborhoods and most price ranges, and those in the low and mid-range tend to go quickly.  Making a quick decision is a must in order to secure the home you want.

With fewer homes available, we are finding multiple bids, some even over asking price, and at present the average days on the market is a low 60. 

Again, what this means is that it’s more important than ever 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” at this time.

For those of you who have been thinking about selling to trade up, the timing couldn’t be better.  While there won’t be as many choices available, your home will most likely sell in record time and you can still take advantage of the low interest rates on your next home. 

Another factor to consider is that there will be more buyers competing for homes during the Spring buying season, so starting your search now could not only save you money, but could afford you a “head start” in the home buying search. 

To discover the options available for you, give me a call sooner than later and let’s see what we can do to make this happen.  I can be reached at 598.3200 or by email at Harry@HarrySalzman.com. 

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

In comparing January 2016 to January 2015 in PPAR:                      

                        Single Family/Patio Homes:

• New Listings are 1,113, Up 2.9%
• Number of Sales are 849, Up 33.5%
• Average Sales Price is $263,678 Up 0.9%
• Median Sales Price is $237,000, Up 0.7%
• Total Active Listings are 1,923, Down 22.1%

                        Condo/Townhomes:

• New Listings are 132, Down 19.5%
• Number of Sales are 107, Up 8.1%
• Average Sales Price is $169,438 Down 4.1%
• Median Sales Price is $163,495, Up 15.1%
• Total Active Listings are 147, Down 50.5%

 

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

 

                                                Median Sales Price             Median Sales Price

                                                January 2016                          January 2015

 

Black Forest                            $468,000                              $399,950

Briargate                                  $341,500                              $320,375         

Central                                     $226,750                              $182,500

East                                          $186,000                              $186,400

Fountain Valley:                      $219,000                              $218,169

Manitou Springs:                    $284,000                              $171,000

Marksheffel:                             $258,750                             $246,000

Northeast:                                $223,000                              $213,000

Northgate:                                $419,202                              $368,000         

Northwest:                               $303,500                              $279,700

Old Colorado City:                  $216,500                              $225,000

Powers:                                    $229,000                              $235,250

Southwest:                              $252,000                              $234,000

Tri-Lakes:                                 $427,000                              $412,000

West:                                        $218,000                              $201,000

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

 

JANUARY HOUSING DATA INDICATES STRONG 2016 OUTLOOK

RisMedia, 2.23.16

Year-over-year trends point to this spring as being the busiest since 2006 in growth and sales of residential real estate. 

While the housing market nationally followed a typical January pattern of cooler demand, reduced inventory and slower market velocity than during the warmer months, 2016 is off to a strong start with robust year-over-year growth. 

January median home prices are expected to show a substantial increase of 8 percent year-over-year.  Homes are selling 4 percent faster this year when compared to last year. 

According to Jonathan Smoke, “Our initial readings on January affirm the positive growth we expect to see in the residential real estate market in 2016.  Our traffic, searches and listing views exhibited the January ‘pop’ we saw last year, which made for a strong spring.  In addition, a large number of prospective buyers have been telling us since the second half of 2015 that they plan to purchase in the spring and summer of 2016.”

In order for this to happen we need to see more inventory nationally, as well as here in Colorado
Springs.  The decline in the stock market has been very positive for the housing market and low interest rates—25 basis points (or more) lower than at the end of 2015—are contributing to this. 

So one more time—if you’re thinking of selling and trading up—THIS IS THE TIME.  You can expect to get good value for your present home and while interest rates are still historically low you will find that even with increased prices on your new home, the monthly payment may be less than you imagined. 

Call me today and let’s see how we can make this all work out in your favor.

 

THE “HAPPPIEST” STATES IN THE U.S.

Realtor^®Mag, 2.2.16

According to the latest Gallup-Healthways Well-Being Index, Hawaii was named the number one spot as the “Happiest” state in the country.  Colorado placed number four. The Index measures the well-being of states across five elements:  purpose, social, financial, community and physical.  Life evaluation—how Americans rate and perceive their lives—surged to a record high in the Index.

“Well-being in the U.S. exhibits regional patterns, with the northern plains and mountain west reporting higher levels of well-being, along with some western states and pockets in the northeast and Atlantic states”, according to the report. 

Here are the states that scored the highest in well-being, according to the Index:

1. Hawaii
2. Alaska
3. Montana
4. COLORADO
5. Wyoming
6. South Dakota
7. Minnesota
8. Utah
9. Arizona
10. California
11. Texas
12. Florida
13. Wisconsin
14. Iowa
15. North Dakota

 

WHY DO AMERICANS CONSIDER MOVING?

Keeping current matters, 1.15.16

Some Highlights

• In a recent Harris Poll, Americans listed “change in climate/weather” as their top reason for wanting to relocate
• 41% would move for a better job opportunity
• Being closer to loved ones filled out 3 of the top 6 reasons why Americans move

HOMEOWNERSHIP NUMBERS SHOW SLIGHT GAIN

The Wall Street Journal, 1.28.16, Realtor^®Mag, 2.2.16, Housingwire, 1.1.16

An improving economy and a slight easing in access to credit are attributed as reasons for the rise in home ownership during the past two quarters. 

While homeownership in the U.S. remains at near the 48-year low of 62.4% in the second quarter of 2015, there was a slight increase from 63.7% in the third quarter to 63.8 percent in the last.  This is still far below the peak of 69.1% at the end of 2004.

Latest Census data shows home ownership to be highest among people over the age of 65, with home ownership among those under 35 remaining the lowest.  Americans aged 35 to 44 increased their homeownership from 58.8% to 59.3% in the latest quarter.

One of the reasons the homeownership rate could be rising is that some of the nine million owners who lost their homes to foreclosure, short sale or another distressed event could finally be returning to the market. 

According to what Matthew Pointon, U.S. property economist for Capital Economics, Ltd. told Bloomberg Business, “We expect it to rise very gradually over the next few years.”

Hopefully we can help find new ways for recent college grads to be able to afford homes, despite lack of credit and/or student loan debt pressures that are currently holding them back. 

 

HARRY’S JOKE OF THE DAY (maybe not so funny, but true nonetheless)

 

                                                            

January 25, 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 IS NUMBER SIX IN TOP TEN HOUSING MARKETS FOR 2016

Bloomberg New, 12.8.15

Rising home prices are not a problem in the “Bargain Belt”—parts of the South and Midwest where the job market gains have outpaced the rise in home prices, says Ralph McLaughlin, an economist for Trulia, an online residential real estate site for home buyers, sellers, renters and real estate professionals in the United States.

Here are the top ten, in reverse order, of McLaughlin’s take on the hottest housing markets for 2016 based on job growth, vacancies, good affordability, search data and presence of millenials:

     10.  Tacoma, WA

      9.   Las Vegas, NV

      8.   Riverside, CA

      7.   Columbia, SC

      6.   Colorado Springs, CO

      5.   San Antonio, TX

      4.   Baton Rouge, LA

      3.   Austin, TX

      2.   Charleston, SC

      1.   Grand Rapids, MI

Those of us who live here know this is a great place to live based on all of the above factors and so much more.  It’s always nice, though, to see that we are getting national exposure as a “hot” housing market.  Our continued median home price increases and low available listings are most definitely contributing to the “sellers” market we’ve been experiencing.  Hopefully, now that the holiday season is over and we prepare for the Spring selling period we will see more folks trading up or relocating to new neighborhoods and using their increased home equity to do so. 

 

LOCAL MARKET UPDATE AND MONTHLY INDICATORS CONTINUE TO SHINE

Pikes Peak REALTORS^® Services Corp.,

The recently published Monthly Indicators and Local Market Update for December 2015 for El Paso and Teller Counties gives you a complete report of what the local housing market is doing and breaks it down by neighborhood.

It provides 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 27.3%
• Median Sales Price for All Properties was up 7.4%
• Active Listings on All Properties was down 38.5%.

Again, you can see that while prices continue to rise, active listings are way down.  There’s not much I can do but warn you again that if you’ve even considered a new home, NOW is the time. 

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.

If you have any questions concerning the reports, please contact me.

 

VOLATILE STOCK MARKET HELPS KEEP MORTGAGE RATES LOW

While the month of January hasn’t been too good for the stock market, it has been good for folks who are still wanting to get in on the recent historically low mortgage interest rates.  Even though the Federal Reserve raised rates for the first time in many years in December, it hasn’t yet affected mortgage rates, most likely due to the volatility of the stock market and other economic indicators. 

This is great news for those who have been sitting on the fence or have considered purchasing residential real estate for investment purposes.  While home prices have been rising steadily, lower interest rates help make monthly payments more affordable for many.  And with rental rates continually on the rise, if you’ve been thinking of investment property, now is a good time. 

As I’ve said several times, being a landlord isn’t for everyone, but if you think it’s something you want to consider, please give me a call and let’s discuss the possibilities.

Also, if you are one of those “fence sitters”, NOW is the time to make your move.  Just give me a call at 598.3200 or email me at Harry@HarrySalzman.com and let’s see if we can make your real estate dreams a reality.

 

HOUSING EXPECTATIONS FOR 2016

National Association of Realtors^®, 1.12.16

The Infographic from NAR pictured below shows their Housing Expectations for 2016.  As you can see, everything is on an upward trend, including interest rates, so again—advanced notice to the “fence sitters”.

Lawrence Yun, NAR Chief Economist, points to pent-up buyer demand, sustained job growth and improving inventory conditions as reasons for his expected gain (from 2015) in new and existing-home sales.

However, despite his forecasted increase in sales, Yun cites rising mortgage rates, home prices still outpacing wages and shaky global economic conditions as headwinds that will likely hold back a stronger pace of sales.

 

NEW HOMES MAY ADD ROOM FOR HOUSEMATES

The Wall Street Journal, 1.23.16

Last week was the home industry’s largest home-building trade show and one of the new models featured an unexpected design concept:  roommates.

In a nod to rising housing costs across the U.S., many buyers are looking for a home that can be used for non-traditional living arrangements to help ease families’ financial burdens.  I have also found this to be something some of my buyers are considering when looking to sell and trade up or buy for the first time along with their parents.

With affordability concerns, some folks are starting to look for second stories or basements that can house aging parents or recent college grads with shaky employment prospects. 

U.S. home prices have increased by 25% since the beginning of the recovery in 2011, according to the S&P/Case Shilling Home Price Index, while median incomes have hardly increased. And apartment rents have jumped by 20% since 2010, according to data tracker Reis, Inc., making it harder for folks to save for a down payment.

If you are looking for a multi-generational living environment, there are certainly homes that can be used or transformed to suite your needs and wants.  Just give me a call and let’s see what might be available for those purposes.

 

NO HOUSING BUBBLE IN SIGHT

RealtorMag,, 11.21.15

While we are nearing the 10-year anniversary of the 2006-2007 housing bubble, housing experts say that there are many reasons why Americans shouldn’t be concerned about a housing crisis repeat anytime soon. 

They site these six reasons to back them up:

1. Fixed-rate loans have become more common.  With historically low interest rates, many Americans have refinanced to a fixed-rate mortgage, so when rates begin to rise—which is likely to happen this year—there will not be as much shock with short-term Adjustable Rate Mortgages compared to the 2006-2009 era.  During that period, many people had their ARMs reset and then could no longer afford their payments, thus sending defaults skyrocketing.

 

2. Old distress is being flushed out through bank repossessions.  While bank repossessions have recently reached the highest levels in more than two years, the reason behind this has been attributed to banks who are flushing out old distress rather than adding more.

 

3. Foreclosures have fallen drastically.  Despite the rise in bank repossessions, the number of loans in foreclosure is 2.1 percent, the lowest level since 2007, according to the Mortgage Bankers Association.

 

4. First-time buyer programs are bringing new buyers into the market.  New programs that assist first-time buyers with a down payment are growing.  The FHA moved last year to reduce its annual mortgage insurance premiums by up to $900 a year—a move that has been predicted to help jump-start home sales by up to 5.6 million, the most since 2006.  And according to NAR, this could lure 140,000 new buyers to the market.

 

5. The economy is strengthening.  Over the past five years, the U.S. has added jobs at a steady rate, now replacing many of the jobs that had been lost during the recession.  The quality of jobs is improving as the economy strengthens.

 

6. New-home construction remains dismal.  The supply of existing home for sale is lower now than it was in 2000.  New single-family starts remain 60 percent below the peak in 2006 and are about 25 percent below the average for the past 15 years.  An oversupply of the homes on the market isn’t likely anytime soon.

 

SHOULD I BUY NOW OR WAIT UNTIL NEXT YEAR?

KeepingCurrentMatters, 1.22.16

A very good question that can be answered by the inforgraphic below:

Some Highlights:

The “Cost of Waiting to Buy” is defined as the additional funds it would take to buy a home if prices and interest rates were to increase over a period of time.

Freddie Mac predicts interest rates to rise to 4.7% by next year.

CoreLogic predicts home prices to appreciate by 5.3% over the next 12 months.

 

If you are ready and able to buy or trade up to your “dream home”, now is the time to find out if it’s possible.  Just give me a call and we can see if your wants and needs can fit into your budget.

 

HARRY’S JOKES OF THE DAY

Low Maintenance:

I just listed a low maintenance house.  In the past 25 years, there has been no maintenance.

 

Competition:

A small real estate broker was dismayed when a brand new corporate chain much like his own opened up next door and erected a huge sign which read BEST AGENTS. He was horrified when another competitor opened up on his right, and announced its arrival with an even larger sign, reading LOWEST COMMISSIONS. The small real estate broker panicked, until he got an idea. He put the biggest sign of all over his own brokerage-it read... MAIN ENTRANCE.

 

January 11, 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 2015 WAS THE 17^TH STRAIGHT MONTH OF INCREASED LOCAL RESIDENTIAL real estate SALES

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

And the good news just keeps on coming for local Residential real estate Sales.  I am happy to report that prices and sales are continuing their upward climb for the Pikes Peak Region in the Residential real estate Market.

In the Cumulative Year-To-Date Summary you will see that total sales numbers in Single Family/Patio Homes is up 18.3% over the year 2014 while Condo/Townhome sales are up 29.6% over 2014. 

The number of home sales in 2015--13,250--was record-setting according to the Pikes Peak Association of REALORS^®, topping the annual best record of 13,124 homes sold ten years ago—in 2005.

The Monthly Summary shows that while total active listings continue their downward trend from the same month last year, new listings in December were up 14.2% in the Single Family/Patio Homes category and just down 2.0% for Condo/Townhomes for the same period.

These numbers continue to reflect strong consumer confidence and local job growth, along with the still historically low interest rates in effect for that period.  As you know, the Federal Reserve raised their rates at their December meeting but so far this has not greatly affected the housing market.  Future rate increases and time will tell how this plays out during 2016.

Increased new listings mean more choices for those looking to buy.  However, we have less inventory available than we’ve had in many years and this is feeding a buying frenzy of sorts for those currently in the market.  With fewer homes available in all price ranges, we are finding multiple bids, some even over asking price, and at present the average days on the market is a low 59. 

What this means is that it’s more important than ever to know what you want, need and can afford prior to the hunt for a new home.  Making a quick decision can be necessary in today’s faster paced times in order to get the home you want.  With fewer listings and shorter days on the market for most homes, there’s no longer the luxury of “let me think about it for a couple of days”.

To discover the options available for you, give me a call sooner than later and let’s see what we can do to make this happen.  I can be reached at 598.3200 or by email at Harry@HarrySalzman.com. 

Here are some highlights from the December 2015 PPAR report.  Please click here to view the detailed 20-page report, including charts. If you have any questions, as always, just give me a call.

In comparing December 2015 to December 2014 in PPAR:                      

                        Single Family/Patio Homes:

• New Listings are 772, Up 14.2%
• Number of Sales are 1105 Up 26.6%
• Average Sales Price is $266,553, Up 4.3%
• Median Sales Price is $239,900 Up 6.6%
• Total Active Listings are 2,133, Down 17.9%

                        Condo/Townhomes:

• New Listings are 96, Down 2.0%
• Number of Sales are 158, Up 26.4%
• Average Sales Price is $164,540 Down 7.0%
• Median Sales Price is $159,430, Up 6.3%
• Total Active Listings are 187, Down 38.3%

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

                                                Median Sales Price             Median Sales Price

                                                December 2015                      December 2014

Black Forest                            $417,000                              $405,000

Briargate                                  $285,000                              $290,000          

Central                                      $172,000                              $184,000

East                                          $207,450                              $187,000

Fountain Valley:                      $215,000                              $201,249

Manitou Springs:                    $307,000                              $227,500

Marksheffel:                             $252,500                             $255,000

Northeast:                                $235,500                              $207,750

Northgate:                                $275,003                              $352,706         

Northwest:                               $310,250                              $305,000

Old Colorado City:                  $223,000                              $207,500

Powers:                                    $229,000                              $228,750

Southwest:                              $249,000                              $230,000

Tri-Lakes:                                $394,000                              $348,000

West:                                        $239,950                              $179,750

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

 

LOCAL FORECLOSURES AT 14-YEAR LOW IN 2015

The Gazette, 1.6.16

The robust housing market, along with an improving economy and job market conditions, helped foreclosures in Colorado Springs fall to a 14-year low in 2015.  Last year’s foreclosure total dropped 19.5% from 2014.

Other cities in Colorado have experienced an even greater decline in foreclosures.  However, those cities, such as Denver, have seen home prices rise very quickly which can translate to more equity that can help those who lose a job or experience financial problems. 

The fact that we have had a low foreclosure rate, coupled with a slower increase in property values, actually is a good factor because homes in Colorado Springs are still affordable and areas such as Denver are starting to price out some looking for homes there. 

In fact, I’m finding that some buyers in our area are actually commuting to jobs in Castle Rock or Denver due to our cost of living, housing, and public education, among other reasons.

 

RENTAL MARKET RATES RISING FAST

The Wall Street Journal, 1.7.16

Rental rates for apartments increased faster last year than in any time since 2007, causing concern about affordability for renters.

Rising 4.6% in 2015, average rental rates nationally had their biggest gain since before the recession according to a report by Reis, Inc., a real-estate researcher.  The average apartment rent now is nearly $1,180, up from $1,125 a year ago. 

And a report from Dallas-based apartment research firm Axiometrics, Inc. showed that rents increased 4.7% in the fourth quarter of 2015 compared with the same quarter a year earlier.  This is the strongest year-end performance since 2005.

Rents have risen steadily for six consecutive years due in part to tough lending standards for homebuyers and also because of a shortage of apartments available for middle-income renters.  Homeownership in the third quarter 2015 was 63.7%, close to a 30-year low.

Higher rents will make it difficult for young people to save for down payments and will force them to rent for longer periods of time.  According to the National Association of REALTORS^®, the percentage of first time buyers is at its lowest level in three decades. 

The demand for investment property homes is increasing, especially with the volatility of the stock market and the rising median home prices.  If this is something you are considering, it’s a good time to check out your options.  Investment property and being a landlord is not for everyone, but if it’s something you have thought about, why not give me a call and let’s discuss whether this might be a good idea for you.

 

DELAYS IN CLOSINGS HURT HOME SALES SLIDE NATIONALLY

The Wall Street Journal, 12,23.16

What is “normal” nationally does not always translate to “normal” in our market, but I wanted to let you know how the “new” mortgage lending rules which took effect in October are affecting sales not only nationally but right here in our own backyard.

Nationally, home sales plummeted in November, caused by a dwindling supply and the new mortgage rules.  The NAR blamed the bulk of this decline on closing delays caused by the new rules implemented by the Consumer Financial Protection Bureau in October. 

The new rules, prompted by the 2010 Dodd-Frank financial law, are meant to help consumers better understand the terms of their mortgages before they sign.  I have explained this in detail in prior editions of this e-Newsletter.  The biggest problem I’ve seen so far has been due to the additional days added to the time it takes for a home to close. 

Whether you are buying or selling, let this be fair warning that what was “normal” in the past is no longer so—and getting to the closing table is going to take longer than it used to.  Unless it’s an all cash deal, you can expect delays because of these new regulations. 

 

FIVE real estate TRENDS THAT WILL DOMINATE 2016

RealtorMag, 12.22.2015

While 2015 may have marked the best year for housing since 2007, a recent real estate forecast by realtor.com^® indicates that the market will be even better this year.  The job market is a significant driver behind this rosy picture because increased and better employment will add to consumers’ wallets and allow them to purchase a first home or sell and trade up.

Highlights from this survey:

1. ‘Normal’ is coming.  Expect a healthy growth in home sales and prices—a slower pace than in 2015.  According to Jonathan Smoke, realtor.com^®’s chief economist, “This slowdown is not an indication of a problem—it’s just a return to normalcy.  We’ve lived through 15 years of truly abnormal trends, and after working off the devastating effects of the housing bust, we’re finally seeing signs of more normal conditions.” 

 

2. Generational buying trends shape up.  2016 may finally be the year that young adults show more presence on the housing market.  Millenials represented nearly 2 billion sales in 2015—one-third of homebuyers.  They are expected to continue to be a major buying pool in 2016 with the majority of buyers between ages 25 and 34 expected to be first-time homebuyers this year. 

 

Two other generations will also play a big part this year--financially recovering GenXers and older baby boomers who are entering retirement.  “Since most of these people are already homeowners, they’ll play a double role, boosting the market as both buyers and sellers,” Smoke notes.  “GenXers are in their prime earning years and thus able to relocate to better neighborhoods for their families.  Older boomers are approaching (or already in) retirement and seeking to downsize and lock in a lower cost of living.”

 

3. New-home construction focuses more on affordability.  Recently builders have been faced with higher land costs and concerns about the demand of the entry-level market and have turned to constructing more higher-priced homes.  This caused new-home prices to rise significantly faster than existing-home prices.  In 2016, they will likely shift to more affordable products to cater to the entry-level market.  “We are already seeing a decline in new-home prices for new contracts signed last fall,” noted Smoke.  “In addition, credit access is improving enough to make the first-time buyer segment more attractive to builders.”

 

4. Higher mortgage rates.  Mortgage rates will likely be volatile in 2016.  The recent move by the Federal Reserve to guide interest rates higher should push mortgage rates higher this year than the historical lows they have been at in recent years.  The 30-year fixed rate mortgage will likely end 2016 about 60 basis points higher than today’s level.  “That level of increase is manageable, as consumers will have multiple tactics to mitigate some of that increase,” Smoke says.  “However, higher rates will drive monthly payments higher, and, along with that, debt-to-income ratios will also go higher.”  Markets with the highest home prices will see the effects from the higher rates the most.

 

5. Rents to go up even higher.  As previously discussed, rental rates are skyrocketing and are only likely to go up in 2016.  “Rents are accelerating at a more rapid pace than home prices, which are moderating,” says Smoke.  “Because of this, it is more affordable to buy in more than three-quarters of the U.S.  However, for the majority of renting households, buying is not a near-term option due to poor household credit scores, limited savings and lack of documentable stable income of the kinds necessary to qualify for a mortgage.”

 

I THOUGHT YOU MIGHT WANT TO KNOW…

Today I will be speaking before the Colorado Springs City Council.  I have been asked to address them about the “State of Housing” in our City and will be doing the same for the County Commissioners next Tuesday. 

I have gathered some very interesting material concerning what motivates folks to make a move, including cost of living, work/life balance and more.  One of the key points in this material is the fact that “access to affordable housing was the most import feature of a livable community”.  This was even more important than a potential job for those wanting to relocate. 

If you are interested, you can read several of the supporting materials below. You will no doubt find them as interesting as I did.  You can click on the titles listed to read the article

“Social Benefits of Homeownership”

“What Makes Us Happiest About The Places We Live”

“The World’s Smartest Cities”

Happy Reading…and again, I’d like to wish you a very Happy, Healthy and Prosperous 2016.

 

HARRY’S JOKE OF THE DAY

 

 

 

December 21, 2015

 

HARRY’S HOLIDAY GREETINGS

                                                                        

Thank you for allowing me to be a part of your 2015.  I hope you have found my Bi-Weekly Updates to be helpful and informative for all your Residential real estate needs.

Wishing you and yours a Healthy, Happy and Peaceful Holiday Season and year to come…

 

                                                

December 7, 2015

 

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.                     

 

LIKE A PHOENIX...COLORADO SPRINGS SURVIVES AND THRIVES

You’ve no doubt seen Colorado Springs in the news this past week for reasons that are beyond any rational comprehension.  Violence like that doesn’t really touch home until it really touches home.  “Black Friday” was indeed Black Friday, or as a nephew of the police officer killed said, it became “Blue Friday” for a number of reasons. 

For me personally, this past week has been both disturbing and enlightening at the same time. 

Disturbing, because of the senseless act of one individual who somehow felt the need to express his feelings in a totally abominable way.   And enlightening, because of the strength and resilience shown by not only our first responders, but by the entire community at large. 

I’m not here to politicize the situation—I’ll leave that to others who feel the necessity to do that—but I am here to say that, like the widow of our UCCS policeman who was killed in this unfortunate turn of events—I was overwhelmed not as much by sadness but by the abundance of kindness and community support shown in the wake of tragedy. 

Beginning with the Waldo Canyon fire and other disasters that enveloped our City in recent years, I’ve been acutely impressed by the way our community has responded to crisis when put to the test.  From the first responders and local and state elected officials to the proud citizens—I’ve seen an outpouring of compassion, assistance and fortitude that makes me proud to be a Coloradan, and most especially a resident of Colorado Springs.

I want to take a moment to remember the three Colorado Springs residents who gave their lives a little more than a week ago and to wish a speedy recovery to those still recuperating from their injuries. 

I’d also like to especially thank Governor John Hickenlooper and my good friends Mayor John Suthers and UCCS Chancellor Pamela Shockley-Zalabak for their unwavering strength, not only in this time of crisis but in all they do for our state and community in order to make it a great place to live and work.  They suffered along with all of us, yet were able to provide the leadership so very necessary when it was required.  They did us proud.

And so, while as a City we are still mourning, I’m feeling confident that the thing that will define Colorado Springs is not the tragedy that occurred, but the manner in which the entire community rose up to meet that tragedy.   

 

NOVEMBER 2015 IS THE 16^TH STRAIGHT MONTH OF INCREASED LOCAL RESIDENTIAL real estate SALES

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

And so it continues.  I am happy to report that things are continuing to look excellent for the Pikes Peak Region in the Residential real estate Market.

In the Cumulative Year-To-Date Summary you will see that total sales numbers in Single Family/Patio Homes is up 17.6% over the same period last year.  And Condo/Townhome sales are up 29.9% over the same period last year.

You will also see in the Monthly Summary that while total active listings still remain down from the same month last year, new listings in November were up 15.5% in the Single Family/Patio Homes category and up 0.8% for Condo/Townhomes for the same period.

These numbers continue to reflect strong consumer confidence and local job growth, along with the still historically low interest rates.  It looks like these rates will soon be on the rise and folks are taking notice and acting while there’s still time.

Increased new listings mean more choices for those looking to buy. However, I’ve seen quite a selling frenzy in the past week, along with multiple bids over listing price that make it difficult to compete. I presented an offer for over listing price that was passed over for one that was for listing price, but all cash and a very short closing time.

It’s more important than ever to know what you want, need and can afford prior to the hunt for a new home.  Making a quick decision can be necessary at times in order to get the home you want. 

If you’ve been thinking about using the current equity available in your present home for a down payment on a new home, don’t wait any longer if you want to take advantage of the still low interest rates.  “Wait and see” is no longer an option in most cases.

To discover the options available for you, give me a call sooner than later and let’s see what we can do to make this happen.  I can be reached at 598.3200 or by email at Harry@HarrySalzman.com. 

Here are some highlights from the November 2015 PPAR report.  Please click here to view the detailed 13-pages, including charts for November 2015. If you have any questions, as always, just give me a call.

In comparing November 2015 to November 2014 in PPAR:                      

                        Single Family/Patio Homes:

• New Listings are 904, Up 15.5%
• Number of Sales are 815, Up 4.2%
• Average Sales Price is $267,133, Up 8.8%
• Median Sales Price is $237,500, Up 9.6%
• Total Active Listings are 2,627, Down 16.2%

                        Condo/Townhomes:

• New Listings are 119, Up 0.8%%
• Number of Sales are 128, Up 4.9%
• Average Sales Price is $160,007 Up 2.5%
• Median Sales Price is $155,450, Up 14.1%
• Total Active Listings are 219, Down 36.7%

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

                                                Median Sales Price             Median Sales Price

                                                November 2015                      November 2014

Black Forest                            $344,000                              $408,688

Briargate                                  $314,136                              $279,500         

Central                                     $185,950                              $188,000

East                                          $205,500                              $180,000

Fountain Valley:                      $194,950                              $195,000

Manitou Springs:                    $266,750                              $350,000

Marksheffel:                             $260,000                             $222,500

Northeast:                                $237,500                             $225,000

Northgate:                                $389,000                             $364,658       

Northwest:                               $336,700                              $313,000

Old Colorado City:                  $237,500                             $194,850

Powers:                                    $229,550                             $214,950

Southwest:                               $251,000                             $260,750

Tri-Lakes:                                 $400,000                             $385,529

West:                                        $216,500                             $237,500

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

 

SOUTHERN COLORADO ECONOMIC FORUM’S QUARTERLY UPDATES & ESTIMATES

College of Business and Administration, UCCS, Southern Colorado Economic Forum, November 2015

The Third Quarter 2015 Update on the El Paso County Economy, including housing trends, was published last week and you can click here to read the full 10-page report.  Much of the section on Housing mirrors the PPAR report and includes:

• The single family permit activity continues its upward trend
• Rental rates continue to climb steeply and vacancy rates fall
• Active listings are down, average days on the market are down and median price is up
• Foreclosures are down by 23.0% year over year

Other sections of the report include:

• The Big Picture
• Employment
• Commercial real estate and Airport
• Sales Tax and Car Registration

Salzman real estate Services is proud to have been a supporter of the Southern Colorado Economic Forum since its inception in 1996 and I will continue to provide you with access to this report quarterly as soon as it is made available to me.

 

EL PASO JOB GROWTH IS STRONG & BUILDING PERMITS ARE UP

The Gazette, 12.2.15

According to data posted on the Colorado Department of Labor and Employment’s website, the second quarter 2015 saw continued job growth in El Paso County as employers in the area added jobs at the same rate as in the first quarter, which was the fastest growth rate since mid-2006. 

Along with that, and possibly in correlation to it, Colorado Springs homebuilders have had an increase of close to 5.5% in permits issued over last year at this time.  

All of this is great news for Colorado Springs.  New jobs are bringing lots of young talent to the city and new home permits are helping to keep home values at a more manageable price level.  A shortage of available homes was helping to drive up prices to a level that made it hard for some to afford new homes or purchase for the first-time.

An recent article in The Wall Street Journal indicated that while the housing market is on track to have its best year since 2007, the sales of existing homes is slowing as prices are rising.  This helps substantiate the fact that our current building surge is a very good sign indeed, while the new job creations will provide buyers for these homes. 

 

HOUSE HASN’T SOLD YET?  RECONSIDER THE LISTING PRICE

Keeping Current Matters, 11.15

The Residential real estate market is HOT.  As I mentioned earlier, bids are coming in faster than I can remember and oftentimes there are multiple bids and ones over the listing price.  What about your home?

In many instances, if your home hasn’t sold, it’s most likely the price.  If you haven’t received any offers, relook at the price.  Pricing your home even 10% above the market dramatically cuts the number of prospective buyers that will even look at your home.

This chart will give you an idea of how price affects the visibility of a listed home.

 

WAITING UNTIL AFTER THE HOLIDAYS TO SELL MIGHT NOT BE A GOOD IDEA

Keeping Current Matters, 11.15

Many homeowners wait until after the holidays to list their home and other take theirs off the market until the holidays are over.  Perhaps you might want to rethink this.  Here are six great reasons not to wait.

1. relocation buyers are out there.  Companies are not concerned about the holidays when it comes to a transfer and if buyers have kids they want to have them settled in a new school after the holiday recess.
2. Purchasers who are looking for a home during the holiday season are serious buyers who are ready to buy.
3. You can restrict the showing on your home to the times you want it shown.  You always remain in control.
4. There is less competition for you as a seller during the holiday season as there is less inventory available.
5. Homes show better when decorated for the holidays.
6. The supply of listings increases substantially after the holidays and new construction ramps up then, too.  This lessens the demand for your home.

If you’ve been waiting to list after the holidays I might add another advantage to listing now.  It most definitely looks like the Fed intends to raise interest rates at their meeting this month and an increase in mortgage interest rates will certainly hold back some potential buyers.

 

HARRY’S JOKE OF THE DAY

 

 

 

                                                            

November 23, 2015

 

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.

IT’S THE TIME OF YEAR TO GIVE SPECIAL THANKS…AND LET ME START WITH YOU

Thanksgiving has always been a favorite time of year for me, and not just for the great food, celebrations and advent of ski season.  It has been a time of reflection when I consider the abundant blessings in my life. 

This year has been even more special than usual, as it’s been filled with so many professional changes and rewards.  I sold my building of 38 years at 538 Garden of the Gods Rd last spring and am now associated with ERA Shields, a group of incredible real estate professionals that I am happy to now call my associates, as well as friends.  If you haven’t been to my new office, located at 5475 Tech Center Drive, Suite 300, I would love to have you stop in and say hello.

For my participation in local community service, I received the “Spirit of the Springs” award from ex-Mayor Steve Bach and recently received a “Reward of Excellence” from the Colorado Springs Regional Business Alliance.  It’s always been my belief that giving back to the community where I live and work is something I not only need to do, but also something I truly enjoy doing.

All of this has been made possible because of my association with my friends and clients and for that I am the most thankful.  The relationships I’ve made over my 43 years in the local real estate arena mean so much to me. 

That I am now working with the children and family members of past and current clients is so rewarding and I do not take that lightly.  It is my goal to continue earning the trust you all have placed in me by all the referrals and continued support in giving me the opportunity to serve all your Residential real estate needs.

Again this year let me start the holiday season by giving thanks to YOU.  May you and yours have a very Happy Thanksgiving.

 

COLORADO SPRINGS’ MEDIAN HOME PRICES CONTINUE UPWARD TREND

National Association of REALTORS^® 11.11.15

Home sales are up and supply is down and this has caused homes to steadily rise in most metro areas of the U.S.A.  According to recently published Median Sales Price of Existing Single-Family Home for Metropolitan Areas, Colorado Springs is right in the middle—a median price increase ranking of 5.0% vs. 5.5% nationally during the 3^rd quarter 2015. 

As most of you are aware, I publish these results each quarter as soon as they become available from the National Association of REALTORS^® (NAR) and there are 178 metropolitan statistical areas (MSAs) included in the survey, Colorado Springs among them.

While the last quarter’s local median sales price growth is a bit lower than nationally, I want to remind you that for the last two quarters we were considerably above the national average, and with a shortage of listings and our “selling season” winding down a bit, I was not surprised at this number.

This time last year I was concerned that Colorado Springs was not keeping up with the average of other surveyed metro areas, but that is no longer the case.  Our average median sales price for 3^rd quarter 2014 was $231,500 and as of the end of 3^rd quarter 2015 it is $243,100.  The national average median sales price was $229,000, up from $217,100, so while we were lower percentage-wise, our average median sales price is still 6.1% higher than the national number.

In general, the housing market had its best quarter in nearly a decade, according to Lawrence Yun, NAR chief economist.  “The demand for buying picked up speed in many metro areas during the summer as more households entered the market, encouraged by favorable mortgage rates and improving local economies,” he said.  “While price growth still teetered near or above unhealthy levels in some markets, the good news is that there was some moderation despite the stronger pace of sales.”  (Exactly why our slightly lower than average growth is GOOD news!)

Yun says sales had the potential to be even higher last quarter given the decline in mortgage rates and favorable economic conditions.  “Unfortunately, the lack of any meaningful gains in housing supply pushed prices in some areas above what some potential buyers—especially first-time buyers—are able to afford.”

NAR President Chris Polychron says the overall pool of potential buyers still outweighs what’s available for sale in several markets this fall.  REALTORS^® are still reporting that many homes are going under contract more quickly than what’s typical this time of year,” he said.  “While this is certainly beneficial to homeowners looking to sell, some are still reluctant to list out of concerns they’ll have limited time and choices during their own home search.”

With rising home prices, despite an increase in the national family median income, comes a slightly decreased affordability in the 3^rd quarter compared to the 3^rd quarter last year.  To purchase a single-family home at the national median price, a buyer making a 5% down payment would need an income of $50,324, a 10% down payment would require an income of $47,675 and $42,378 would be needed for a 20% down payment.

To view the entire list of 178 metro areas, please click here.

Bottom Line:  This is good, albeit mixed, news for local homeowners.  More than likely the equity in your present home has increased, giving you the ability to sell and trade up or relocate to another neighborhood.  And while the new home you might be considering has also increased in price, interest rates are still historically low.  As you will read later on, it’s looking like the possibility of the Fed raising rates at their December meeting is no longer “just talk”.  This possible rate increase, the fast pace of homes getting to closing and home affordability for some is making for “interesting” times in the residential real estate arena.

As I’ve mentioned in the past, there are many new regulations and requirements available, especially for first time buyers.  This is a good thing, and one that can really help young people start earning equity for themselves rather than for the person from whom they are renting.  Potential first-time buyers should be looking at these new options sooner than later with the advent of rising mortgage rates. 

And, if you’ve been sitting on the fence, I’d suggest you at least consider getting off and quickly check out your options.  Prices don’t appear to be going down and interest rates will be on the upswing in the near future. 

For those looking for investment purposes, the continual rising rental rates are providing a good reason to think about that at present.  I wouldn’t wait a lot longer, though, because there are not as many “bargains” as in the past and home prices are escalating also.

I am available by phone at 598.3200 or email at Harry@HarrySalzman.com and would be happy to sit down and help you determine how to best handle your needs, wants and budget to make purchasing residential real estate a reality for you.

 

LOCAL MARKET UPDATE AND MONTHLY INDICATORS CONTINUE TO SHINE

Pikes Peak REALTORS^® Services Corp.,

The recently published Monthly Indicators and Local Market Update for El Paso and Teller Counties gives you a complete report of what the local housing market is doing and breaks it down by neighborhood.

It provides greater detail than the monthly “PPAR Monthly Statistics” that I shared in the last eNewsletter.

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

• Sold Listings for All Properties was up 11.0%
• Median Sales Price for All Properties was up 4.5%
• Active Listings on All Properties was down 37.4%.

Again, you can see that while prices continue to rise, available listings are way down.  There’s not much I can do but warn you again that if you’ve even “considered” a new home, NOW is the time. 

Enough said.

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.

If you have any questions concerning the report, please contact me.

 

COLORADO SPRINGS RANKED AMONG TOP 10 CITIES IN WHICH TO OWN A HOME

The Gazette, 11.21.15,

A survey conducted this summer confirmed what most of us residents already know—Colorado Springs is one of the best places to own a home.

The home repair and renovations services website Porch.com and the national brokerage firm Redfin conducted the survey which was based on responses from close to 10,000 homeowners nationwide and results indicated that Colorado Springs finished eighth among 67 cities.

Ratings were based on weather, the economy, education, commutes, safety and taxes, among other quality-of-life factors.  Our city’s ranking was helped by the strong marks it received for climate, healthiness and safety.  Denver finished first in the survey, while Memphis, Tennessee ranked last.

Good new for Colorado in general—and another feather in our local hat.

 

HOME SALES OUTLOOK AND relocation TRENDS WEBINAR HAD POINTS WORTH SHARING

Last Thursday I attending a “Webinar” presentation conducted by Dr. Lawrence Yun, Chief Economist and Senior Vice President of Research at the NAR.  If you recognize his name, it’s because I quote Yun quite often in my eNewsletters and have high regard for his extensive knowledge of the residential real estate market and national economy in general.

Here are some things I found memorable and wanted to share from the hour long Webinar that was given to Worldwide ERC members, of which I am one.

• People under 35 years old have a historically low homeownership rate
• Difficulty Facing First-time Buyers
• Student loan debt is 41% and the typical amount is $25,000—even among successful first-time buyers
• There is no affordable inventory—for 51% of these people, the hardest task is finding the right property
• They face competition from vacation buyers and investors who are buying similar priced/sized homes and paying all cash
• Student Loan debt is approaching $1.4 Trillion
• H.O.M.E. SURVEY (Housing Opportunity and Market Experience) results:

 

• Desire to own remains strong and is strengthening
• 87% of Americans believe homeownership is part of their personal American Dream
• 91% of 18-24 year olds believe this to be true
• There are psychological reasons for this, but also financial ones
• Americans want to own a place to raise a family and own a place of their own, but also a nest egg for retirement
• Recent buyers bought a home not only to start a family but also because owning is cheaper than renting
• 83% of Americans believe buying is a good financial decision

 

• Homeownership rates will fall further but home sales will rise further

AND… WATCH FOR THIS FOLKS….YUN STATED…

• “Fed Rate Hike in December

then again in March

then again in August

then again in…..”

• Rents are rising at a 7-year high and Rental vacancies are at a 30-year low
• Why would we expect Home Sales to rise?

 

• Rising Mortgage Rates—Not Good for Sales
• Too fast rising rates—Not Good for Sales
• Housing Equity for Pent-up Sellers—GOOD for Sales
• Return Boomerang Buyers—GOOD for Sales
• Steadily increased supply—GOOD for Sales, and
• Job  Creation—SUPER GOOD for Sales

Click here to see Yun’s concluding charts -- the Economic Forecast and Housing Forecast for 2016.

Good information from a great economist.  And speaking of that, I thought I’d put a face to the name.  Here’s a photo of me with Dr. Yun taken at a PPAR reception several years ago.  A little grainy, but you get the idea!

THE CHANGING FACE OF THE AMERICAN HOMEOWNER

RisMedia’s housecall, 11.11.15

One last thing you will find interesting is this “Infographic” on the Changing Face of the American Homeowner. 

Julián Castro, Secretary of the U.S. Department of Housing and Urban Development, at a recent speech during the 2015 convention of the Mortgage Bankers Association, quoted President Lyndon Johnson.  He stated that “ President Johnson once said that owning a home is more than just a cherished dream:  It represents achievement, something to be proud of—a place where a person can live with joy and pride, pleasure and dignity.”

As the homeownership rate dipped to a 50-year low mark in the second quarter of this year, homeownership “magic” feels to some like a cruel trick Castro said.  However, he managed to put a positive spin on this in saying, “A few years ago, we faced the greatest housing test of our lifetimes, but we made it through.  Not only are we still standing, we’re prospering and the economy is growing stronger.”

I thought you would enjoy seeing the Inforgraphic from LawnStarter which depicts homeownership data based on race, ethnicity, income, age and geography.  Click here for a look.

Any questions? You know where to find me!

 

WHAT EVERY SELLER SHOULD KNOW ABOUT COMPS

Rismedia 10.19.15

When you get ready to list your home, comps—or the most recent comparable sales—give real estate professionals and appraisers the information they need to price a home a “fair market value”.  While this is “business as usual” for those folks, it’s not as easy for sellers to understand the various tangibles and intangibles that are considerations in making the “listing price” decision.

This is evident from the gap between what homeowners “believe” their home is worth and what an appraiser’s opinion might be.  According to a recent Quicken Loans Home Price Perception Index report, homeowner estimates averaged 2 percent higher than those of appraisers—which is “a considerable margin in markets with ballooning home values’, says Quicken Loans Chief Economist Bob Walters.

“It may not seem significant…but it could make a huge difference in metro areas with higher average home values”, Walters explained.

However, this is not always the case, because in a market that is going up, there isn’t that much of a difference with seller opinions.  If the seller has the time, the market is moving in the direction they desire.  It is harder with sellers who are behind the market—the market moves, but they always think the market will be better tomorrow and it’s too early for them to sell now.

We all think our homes are worth “x” amount and oftentimes strongly disagree with the comps and appraised value.  In cases like this, it’s best to defer to your knowledgeable real estate professional who isn’t emotionally attached to your home and can give an objective opinion based on actual facts.

Some things taken into consideration when arriving at a listing price may include location, age, lot size, energy efficiency, square footage, number of bedrooms and bathrooms, and other “hidden gems” that give the property a “WOW’ factor that might increase the listing price. 

Sellers should bear in mind comparable data reflect the activities of both buyers and sellers, no matter which the market currently favors.  As Warren Buffet summed it up:

“Price is what you pay.  Value is what you get.”

 

HARRY’S JOKES OF THE DAY

                 

 

FEATURED LISTING

 

WOULDN’T YOU LIKE YOUR HOME TO BE THE ONE FEATURED HERE? 

 

Just give me a call and let’s see what we can do to help you Sell and Trade Up before the interest rates start their upward climb.

 

                                              

October 13, 2015

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 REGIONAL BUSINESS ALLIANCE PRESENTED ME WITH A COMMUNITY SUPPORT “AWARD FOR EXCELLENCE”

Most of you know that a word I often use is “WOW” and Saturday night was a VERY big “WOW” for me.

At the Annual Colorado Springs Business Alliance’s Business and Industry Awards Dinner at The Broadmoor, I was totally surprised and overwhelmed when CEO Dirk Draper called me onto the stage and presented me with this award.

Having lived in Colorado Springs since 1972, I have always made it a priority to volunteer my time in serving the City of Colorado Springs, civically and in the corporate and non-profit sector.  This is something I believe important for any successful citizen.  Colorado Springs is my home, the place where I earn a living and the place where I take great pleasure in helping folks to relocate.  As I tell everyone I meet all over the country—this is the place where “America the Beautiful” was written and there’s a reason for that. 

I do what I do because it is my sincere belief that the only way to show my appreciation is to give back.  I am only one of many in this community who do the same—and we all do it with the hope that we are building a better future for the town that has given us so much.

We do what we do for the sake of doing it, but I found out Saturday evening just how gratifying it is to also get public recognition for it. 

I want to take a moment to thank the RBA, but even more I’d like to thank all of you, because without your confidence in me as your REALTOR^® I would never have been in a position to accept this award.

Please excuse this bit of self-serving promotion, but of all the awards I’ve received over the years, this one is special due to its special significance to my life.

 Again…I thank you all.

 

AND SPEAKING OF “WOW”…

When is the last time YOU said “WOW” and really meant it?  Those of you who have been house hunting with me use it often and with good reason.  I do the homework to make certain that I can find the home that fits not only your needs and wants, but your budgetary concerns as well.

If you or anyone you know is in the Residential real estate market, why not find your own “WOW” by giving me a call at 598.3200 or email me at Harry@HarrySalzman.com and let’s discuss how we can make that happen.

 

RESIDENTIAL real estate SALES INCREASE FOR 15^TH STRAIGHT MONTH

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

I am thrilled to report that things are continuing to look excellent for the Pikes Peak Region in the Residential real estate Market.

In the Cumulative Year-To-Date Summary you will see that total sales numbers in Single Family/Patio Homes are up 18.8% over the same period last year.  And Condo/Townhome sales are up 32.4% over the same period last year.  This is especially significant because we are approaching the time of year that home sales tend to slow down due to the holiday season.

While total active listings still remain down from the same period last year, new listings in October were up slightly in the Single Family/Patio Homes category and up 24.1% in the Condo/Townhome category in year over year comparison.

These numbers continue to reflect strong consumer confidence and local job growth.  Many people are taking advantage of increased home equity in order to sell and trade up while getting still historically low interest rates.

Increased new listings mean more choices for those looking to buy, but with homes selling quickly it’s important to know what you want, need and can afford prior to the hunt for a new home.  Making a quick decision can be necessary at times in order to get the home you want. 

Here are some highlights from the October 2015 PPAR report.    You will see below that I have changed the comparison on the Monthly Sales Analysis to better help you see the year-over-year increase in Median Sales Prices.  This really illustrates how the Pikes Peak Region has done during the Housing Recovery.  Please click here to view the detailed 13-pages, including charts for October 2015. If you have any questions, as always, I’m just a phone call away at 598.3200.

In comparing October 2015 to October 2014 in PPAR:                      

                        Single Family/Patio Homes:

• New Listings are 1197, Up 0.8%
• Number of Sales are 1,107, Up 13.9%
• Average Sales Price is $263,584, Up 2.7%
• Median Sales Price is $234,900, Up 4.4%
• Total Active Listings are 2,936, Down 16.1%

                        Condo/Townhomes:

• New Listings are 180 Up 24.1%
• Number of Sales are 166, Up 23.9%
• Average Sales Price is $169,350, Up 4.8%
• Median Sales Price is $155,000, Up 5.4%
• Total Active Listings are 253, Down 34.5%

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

Comparing Year-Over-Year Median Sales Prices

                                                Median Sales Price             Median Sales Price

                                                October 2015                                    October 2014

Black Forest                             $423,500                              $393,500

Briargate                                   $292,750                              $272,750         

Central                                      $204,150                              $176,500

East                                           $187,500                              $175,250

Fountain Valley:                       $199,900                              $190,950

Manitou Springs:                     $295,000                              $275,250

Marksheffel:                              $264,500                             $258,000

Northeast:                                 $233,000                             $220,000

Northgate:                                $398,450                              $350,000         

Northwest:                                $334,950                              $307,250

Old Colorado City:                   $242,000                             $174,450

Powers:                                     $230,000                             $222,000

Southwest:                                $276,000                             $240,500

Tri-Lakes:                                  $430,609                             $349,625

West:                                         $272,500                             $242,500

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

 

ON VETERAN’S DAY…IT’S TIME FOR THANKS

I’ve always been so “Proud to be an American” as the song goes and with that I am aware of the many sacrifices that have been made in the past and continue to be made each and every day to ensure that we all can live in peace in the greatest country in the world. 

With Veteran’s Day this week I especially want to give a shout out to all who have served and those currently serving in our Armed Forces. 

Living in a city that has so much military presence and having worked with so many of these families in relocation, I am acutely aware of the hardships and personal sacrifices these folks make.  We all owe them a tremendous debt of gratitude, on Veterans Day and every day.

THANK YOU VETERANS -- ONE AND ALL.

 

FEDERAL RESERVE KEEPS SENDING MIXED MESSAGES

                           

I happened to see this illustration in The New York Times Sunday magazine a couple of weeks ago and thought it actually more “right on” than humorous and wanted to share it with you.

It’s been more than a year since I’ve been telling you that the historically low interest rates are going to rise and I’m still confident that is going to happen…I just no longer can begin to predict “when”.

Janet Yellen, Federal Reserve Chair, said this week that an interest rate hike in December would be a “live possibility” if the economy stays on track.  She has said that the U.S. economy is “performing well” at the moment, with solid growth in domestic spending.  However, she stressed that no decision has been made yet and a move in December will depend on how the economy performs up until that time. 

What is the bottom line here?  The thing I know about interest rates is that I don’t know when they will rise.  But what I DO know is that when the do, it will be the beginning of the end of historically low mortgage loans.  Will they go right back to 10 or 12 percent?  Absolutely not in the foreseeable future.  But even moving up a percentage point or two will make a difference in monthly payments and also affect some people’s ability to qualify for a mortgage. 

This is another “heads up” to those who have been sitting on the fence.  If you’ve even considered a move or buying for the first time, now is the time to consider all your options.  Just give me a call and let’s see if it’s a possibility at present.   

 

U.S. HOME SALES HEADED TO BEST YEAR SINCE 2007 BUT FIRST-TIME HOME BUYS ARE NEAR 1987 LEVEL

The Wall Street Journal, 10.23.15

September was a big month for home sales in the U.S. with existing-home sales climbing 4.7% to a seasonally adjusted 5.5 million--8.8% above a year ago at this time.  This puts the market on pace for its best year since before the recession.

Lawrence Yun, chief economist for the NAR, has said that better job growth, continued low mortgage rates and pent up demand are fueling this activity.  Home prices are rising much faster than income, though, and this is creating a problem for young buyers trying to save for a down payment. 

Prices have been driven up by an increase of college-educated professionals and a lack of new construction nationally.  The combination of rising prices and affordability constraints is beginning to weight on the market. 

Listings remain a problem and Yun said,  “Come spring of next year, based on the current trend, we find we could be facing really tight inventory once the spring buying season returns, unless home builders really ramp up production.”

In conjunction with this, first time home buys fell to 32% of all purchasers in 2015 from 33% last year, the third straight annual decline and the lowest percentage since 1987.  According to economists, the historically low share of younger buyers could pose long-term challenges.  Without these buyers, current owners have difficulty trading up or selling their homes when they retire. 

Most first time buyers have said their biggest challenge beside saving for a down payment was the money owed on student loans.  And with rental rates increasing steadily, it’s really tough for them to put money aside.  The new down payment and loan qualification regulations are helping some of these first timers but others will just have to wait. 

So…more mixed news…home sales are up, but along with them are higher prices and decreased affordability.  Again…the time to Buy is NOW.

 

HARRY’S JOKES OF THE DAY ( courtesy of the Internet and not such a joke when you think about it!)